Northern ‘cashback’ could keep Manchester accountants busy

Published on January 20, 2014 by Crawfords Accounting

Manchester accountants could be kept busy by plans to ensure more government funding makes it to the North in order to support cities in their efforts to create jobs.

The Institute for Public Policy Research (ippr) has recommended a fairer division of funding for economic development, which it says is currently “skewed towards London and the south-east”.

“The North is currently compensated with welfare payments and grants,” the ippr report adds.

But this could change from 2015 onwards, as five ‘combined authorities’ are due to be created, including the cities of Manchester and Liverpool, and the wider regions of West Yorkshire, South Yorkshire and the North East.

Ed Cox, director of ippr North, says: “The Prime Minister used to talk about the public ‘sharing in the proceeds of growth’, and that’s the same logic he should apply to cities in the North of England.”

In particular, ippr are recommending that HM Treasury should offer a ‘cashback’ deal, allowing incentives to be claimed back by cities that successfully improve local employment levels.

Whatever happens, the changes coming in 2015 could have an impact on employment in Manchester and the other combined authority areas, and Manchester accountants will be on hand to help with any enquiries.

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