As the issues which impact the population change, so must the policies that support regional governance. Increasingly volatile consumer and lifestyle trends require a more responsive policy implementation and delivery mechanism which is constantly being informed by public needs and opinions.

Recent trends have created an increasingly fragmented policy regime, with various organisations leading on different aspects of the region. Economic policy continues to be dominated by the Regional Development Agency (RDA), in the form of the Regional Economic Strategy (RES), and the North East Assembly in their capacity as monitors of the RDA. Within this economic agenda there are also policies and strategies governing areas such as land usage, housing and energy.

Regional policy makers must also integrate with national policies aimed at providing prosperity for the UK as a whole. These central government plans can often provide opportunities to local governments, including the availability of new funding sources.

The Northern Way Project was set up in 2004 and is a collaboration between the three northern regions; North East, North West and Yorkshire & Humber. The strategy is designed to address the £30bn output gap between the North and the English averages. The project focuses on delivering strategies in partnership, which would be difficult for individual regions to implement, including issues such as education & skills, employment, innovation, entrepreneurship, global trade and sustainable communities. Eight key areas have been established; Liverpool, Central Lancashire, Manchester, Sheffield, Leeds, Hull & Humber Ports, Tees Valley and Tyne & Wear.  

Certain policy areas are heavily influenced by non-governmental organisations. The environmental agenda in particular is heavily influenced by groups such Friends of the Earth and Greenpeace.

Fact File

• The Northern Way project aims to bridge the £30bn output gap, between the North and the national averages, within a 25 year time frame.
• The initiative is funded by £100bn of public sector expenditure.
• The RES aims to; create 18,500-22,000 new businesses (net), raise regional GVA from 80% to 90% of the national average and to increase employment by between 61,000 and 73,000, all by 2016.