London Daily

Focus on the big picture.
Wednesday, Sep 03, 2025

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
Google Avoids Break-Up in U.S. Antitrust Case as Stocks Rise
Couple celebrates 80th wedding anniversary at assisted living facility in Lancaster
Information Warfare in the Age of AI: How Language Models Become Targets and Tools
The White House on LinkedIn Has Changed Their Profile Picture to Donald Trump
"Insulted the Prophet Muhammad": Woman Burned Alive by Angry Mob in Niger State, Nigeria
Trump Responds to Death Rumors – Announces 'Missile City'
Court of Appeal Allows Asylum Seekers to Remain at Essex Hotel Amid Local Tax Boycott Threats
Germany in Turmoil: Ukrainian Teenage Girl Pushed to Death by Illegal Iraqi Migrant
United Krack down on human rights: Graham Linehan Arrested at Heathrow Over Three X Posts, Hospitalised, Released on Bail with Posting Ban
Asian and Middle Eastern Investors Avoid US Markets
Ray Dalio Warns of US Shift to Autocracy
Eurozone Inflation Rises to 2.1% in August
Russia and China Sign New Gas Pipeline Deal
China's Robotics Industry Fuels Export Surge
Suntory Chairman Resigns After Police Probe
Gold Price Hits New All-Time Record
Von der Leyen's Plane Hit by Suspected Russian GPS Interference in an Incident Believed to Be Caused by Russia or by Pro-Peace or by Anti-Corruption European Activists
UK Fintechs Explore Buying US Banks
Greece Suspends 5% of Schools as Birth Rate Drops
Apollo to Launch $5 Billion Sports Investment Vehicle
Bolsonaro Trial Nears Close Amid US-Brazil Tension
European Banks Push for Lower Cross-Border Barriers
Poland's Offshore Wind Sector Attracts Investors
Nvidia Reveals: Two Mystery Customers Account for About 40% of Revenue
Woody Allen: "I Would Be Happy to Direct Trump Again in a Film"
Pickles are the latest craze among Generation Z in the United States.
Deadline Day Delivers Record £125m Isak Move and Donnarumma to City
Nestlé Removes CEO Laurent Freixe Following Undisclosed Relationship with Subordinate
Giuliani Seriously Injured in Accident – Trump to Award Him the Presidential Medal of Freedom
EU is getting aggressive: Four AfD Candidates Die Unexpectedly Ahead of North Rhine-Westphalia Local Elections
Lula and Putin Hold Strategic BRICS Discussions Ahead of Trump–Putin Summit
WhatsApp is rolling out a feature that looks a lot like Telegram.
Investigations Reveal Rise in ‘Sex-for-Rent’ Listings Across Canada Exploiting Vulnerable Tenants
Chinese and Indian Leaders Pursue Amity Amid Global Shifts
European Union Plans for Ukraine Deployment
ECB Warns Against Inflation Complacency
Concerns Over North Cyprus Casino Development
Shipping Companies Look Beyond Chinese Finance
Rural Exodus Fueling European Wildfires
China Hosts Major Security Meeting
Chinese Police Successfully Recover Family's Savings from Livestream Purchases
Germany Marks a Decade Since Migrant Wave with Divisions, Success Stories, and Political Shifts
Liverpool Defeat Arsenal 1–0 with Szoboszlai Free-Kick to Stay Top of Premier League
Prince Harry and King Charles to Meet in First Reunion After 20 Months
Chinese Stock Market Rally Fueled by Domestic Investors
Israeli Airstrike in Yemen Kills Houthi Prime Minister
Ukrainian Nationalist Politician Andriy Parubiy Assassinated in Lviv
Corporate America Cuts Middle Management as Bosses Take On Triple the Workload
Parents Sue OpenAI After Teen’s Death, Alleging ChatGPT Encouraged Suicide
Amazon Faces Lawsuit Over 'Buy' Label on Digital Streaming Content
×