London Daily

Focus on the big picture.
Saturday, Jun 13, 2026

UK left with 'branch line economy' after years of neglect in left-behind parts of country

UK left with 'branch line economy' after years of neglect in left-behind parts of country

In a speech to the business organisation's annual conference - days after northern rail plans were scaled back - CBI director-general Tony Danker argues that the government must play its part in trying to "make places better".

The UK "feels like a branch line economy" in many areas after years of neglect in left-behind parts of the country, according to the head of the CBI.

Tony Danker argues that the successful delivery of the government's "levelling up" agenda will be determined by whether it delivers economic growth in every part of the UK.

Mr Danker will make the remarks days after the government was accused of going back on promises of regional rail investment as HS2 was scaled back and a new Manchester-Leeds line abandoned.

CBI director-general Tony Danker argues Britain must become 'an economy of many hubs'


The CBI director-general will say in a speech to kick off the business organisation's annual conference that it "wholeheartedly" backs the "levelling up agenda".

He added: "Simply saying the market will fix this is not good enough.

"I don't know a country in the world - including, and indeed especially, the United States - where governments aren't active in economic geography."

Mr Danker argued that while it is businesses rather than government that create jobs and wealth, governments must also play their part to try to "make places better".

He said: "What the UK needs to level up is economic growth in every place.

"Growth that in turn provides better paid jobs, skilled work, firm-level success and creates the kind of virtuous circle that helps a place to prosper.

"The truth is that the UK suffered from de-industrialisation.

"Since the 1980s, we let old industries die - offering little more than benign neglect for what got left behind - it was an economic policy that was ambivalent about levelling down.

"Too relaxed about a brain drain as young people leave home to chase better paid jobs."

Mr Danker highlighted the disparities in wages between north and south and the location of multinational corporations in the South East while left-behind areas were left with shuttered high streets and "loss of pride in place".

"The truth is that in too many sectors, the UK now feels like a branch line economy," he added.

Mr Danker characterised this as a situation where head offices were too often based in London with "the branch managers and the back-office based everywhere else".

"Instead of a branch-line economy - what we want is an economy of many hubs," he said.

"That means using all parts of the country to their full potential."

Mr Danker said the country had spent the last decades living with the consequences of the neglect that he described but that nascent industries such as biotech, space and cybersecurity as well as the "new industrial revolution" created by net zero gave a "shot at redemption".

The speech comes in the context of widespread criticism of the government's rail plan for the Midlands and the North, announced last week.

Lord Jim O'Neill, vice chairman of the Northern Powerhouse Partnership, told Sky News that ministers had managed to disappoint "virtually everybody" with the plan.

Newsletter

Related Articles

0:00
0:00
Close
Barclays Moves to Acquire GoHenry in Bid to Expand Youth-Focused Fintech Services
UK Lupus Patients Show Remission in NHS Genetic Therapy Trial
London Clean Air Zones Linked to Fewer Emergency Hospital Admissions for Respiratory Illness
UK World Cup Scheduling Research Suggests Energy Bill Savings From Off-Peak Usage
UK Economic Anxiety Rises Among Young People Over Long-Term Job Prospects
NHS Expands Meningitis B Vaccination Programme for School Leavers and New Students
London Ultra-Low Emission Zone Linked to Drop in Emergency Respiratory Hospital Admissions
Derbyshire Police Officer Investigated Over Alleged Use of AI-Generated Evidence in Case Files
UK Parents Back Proposed Under-16 Social Media Ban as Online Safety Concerns Grow
Four Palestine Action Activists Jailed Over Sabotage Attack on Israeli-Linked Arms Facility
Barclays to Acquire GoHenry in Push to Expand Digital Banking for Children and Teenagers
UK Government Reaffirms Defence Spending Commitment Amid Cabinet Pressure and Political Disputes
Belfast Unrest Prompts Security Review as Paramilitary Activity Comes Under Renewed Scrutiny
SpaceX IPO Pushes Elon Musk to Become World’s First Trillionaire After Record Valuation Surge
United States and Iran Near Landmark Peace Framework as Negotiations Reach Final Stages
UK Competition Watchdog Investigates Ryanair Family Seating Charges
Imperial College Study Links London Emissions Charges to Lower Hospital Admissions
Scottish First Minister Launches US Trade Initiative Ahead of World Cup Match in Boston
Fifteen Million Workers Gain Expanded Sick Pay Rights Under UK Reforms
British Retail Investors Secure Record Participation in SpaceX Share Offering
Keir Starmer and Micheál Martin Coordinate Response to Northern Ireland Violence
NHS Prepares for Major Disruption as Resident Doctors Announce Four-Day Strike
Bank of England Expected to Hold Rates as Energy Costs Complicate Inflation Outlook
Britain Moves to Ban Under-16s From High-Risk Social Media Platforms and AI Chatbots
UK Economy Contracts as Middle East Conflict Weighs on Growth
Defence Secretary John Healey Resigns Over Military Spending Dispute With Treasury
Prime Minister Keir Starmer Faces Leadership Crisis After Senior Cabinet Resignations
NHS Trust Secures Funding for AI Tool to Detect Heart Failure Earlier
Government Unveils £4.5 Billion Investment Plan for Walking and Cycling Infrastructure
Nationwide Reports UK House Prices Falling as Borrowing Costs Remain Elevated
Centre for Social Justice Says Two Million Britons Are Using Illegal Loan Sharks
UK Carmakers Warn EU Local Content Rules Could Damage British Manufacturing
UK Government Imposes Emergency Ban on Seven Potent Synthetic Opioids
Royal Navy Completes Major North Atlantic Anti-Submarine Exercise Off Norway
NHS Figures Show Nearly 3,000 Patients a Day Receiving Care in Hospital Corridors
CBI Cuts UK Growth Forecast as Middle East Tensions Drive Inflation Risks Higher
Dan Jarvis Appointed UK Defence Secretary Following Major Government Reshuffle
University College London Study Links Physical Punishment to Higher Risk of Bullying
East Midlands Railway Unveils First Refurbished Train in £60 Million Modernization Programme
RNLI Issues National Water Safety Appeal Ahead of Expected Heatwave
Climate Change Raises Subsidence Risks for Millions of Homes Across Southeast England
Manchester Advances Plans for Underground Piccadilly Station With £1 Million Funding Commitment
Anti-Immigration Violence Continues in Belfast Amid Heightened Security Concerns
UK Law Locks Great British Railways Into Public Ownership
Office for National Statistics Adopts Supermarket Checkout Data for Inflation Measurement
Applied Atomics Launches With $500 Million Space Infrastructure Order Book
BYD Plans Nationwide Rollout of Ultra-Fast EV Charging Network
UK House Prices Unexpectedly Fall in May
CBI Warns UK Growth Is Becoming Increasingly Dependent on Public Spending
Makerfield By-Election Fuels Speculation Over Labour’s Future Leadership
×