George Osborne misses the point over his northern powerhouse

Comparisons with German and Dutch regions where productivity is already high do not stand up to scrutiny

The idea behind George Osborne's northern powerhouse is a simple one. Improving transport links between the big cities of the north will create economies of scale and greater dynamism. Britain, it is said, can learn lessons from the Rhine-Ruhr region of Germany and the Randstad region of the Netherlands, both of which have a number of cities clustered together. The chancellor has pledged Treasury support for a number of key infrastructure projects, including high-speed rail links.

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