A message by Eastern Powerhouse Executive Director, Seven Lynch Dear members, friends, and supporters of the Eastern Powerhouse, Happy New Year! 2024 – An absolutely critical year for the UK and time for the Eastern Powerhouse to rise above politics and offer a common and unifying vision for the East of England. All our endeavours revolve around connectivity, insight, and advocacy, the three pillars at the heart of our strategy. James Palmer summarised the incredible programme of events, publications, briefings, and meetings that the Powerhouse delivered in 2023. It is a notable list, and I am grateful to our members and our team for their support, energy, and enthusiasm throughout the year. 2024 brings about political uncertainly due to a general election, but for the Eastern Powerhouse, we are laser-focused on the need for a regional agenda, and dedicated to representing and supporting the entire East of England, delivering another ambitious programme in 2024. I believe we hold a shared and unifying vision for the East of England, aiming to achieve inclusive and sustainable growth across the whole region. Despite being one of the largest and most productive economies in the UK, the region faces underlying challenges such as high levels of deprivation, poor transportation, low skills and incomes. However, the East is at the vanguard of new sectors like life sciences, advanced engineering, agri-tech, and renewable energy, presenting opportunities for sustained and enhancing development. The Eastern Powerhouse is the vehicle to implement this vision, competing with other regions, attracting government and private sector investments, and advocating for comprehensive investment across all communities in the East of England. As many of you will know my background is in international trade and relations and I was incredibly honoured to be awarded an MBE for services to the British Business Community in China in His Majesty the King's New Year Honours List. Therefore, I want to bring my international experience to the East, my personal focus for the coming year will be to further the powerhouse’s core mission; maximize the region's assets and unlock growth opportunities for investment. All of which will help to achieve local, national and global impact. The East of England comprises world leading multinational corporations as well as dynamic startups. The East has an enormous opportunity to attract inbound investment as well as support the Government export aspirations of a ‘Global Britain’. I hope in 2024 the Powerhouse can drive the agenda for the East of England to become a global brand for international trade and investment. The Eastern Powerhouse will continue to drive economic growth in the region, raise investment in skills, innovation, transport to enhance productivity across the East, and to champion the interests of our members in 2024. I encourage everyone in the East of England to get involved. In the next few weeks, we will be launching our ambitious plans for 2024, what events, reports, and activities we have coming up– please feel free to get in contact with me if you would like to get involved. All the best, Steven Lynch

James Palmer, Chair, Eastern Powerhouse Dear members, friends, and supporters of the Eastern Powerhouse, Looking back over the past year, I am pleased with the progress the Eastern Powerhouse has made. It’s been 21 months since we launched, and that time has been spent building the organisation and growing our influence. With any new membership group such as ours, there will always be the initial scepticism from some quarters and perhaps nervous glances from others. However, the Eastern Powerhouse has maintained a principled position, our aim is to deliver sustainable growth for the east of England. We do not get into political arguments, nor do we spend our time criticising government and local authorities. The Eastern Powerhouse presents solutions and offers advice to leaders, always asking for investment into our economy; not handouts. Perhaps our greatest success this year was the campaign we led to gain funding for Ely North and Haughley railway junctions. The bottleneck at Ely restricts train journeys for passengers from almost every part of the region and severely limits freight capacity. This is a problem that should have been solved many years ago and whilst funding for the upgrade was announced by Secretary of State for Transport Mark Harper less than a month after meeting us in Westminster, we will have to be vigilant and make sure the scheme survives a possible change of government. We have spent a considerable amount of time cultivating relationships with MPs across the region. It can be difficult for constituents to understand why an MP in Suffolk is publicly supporting a project in Cambridgeshire or vice versa but the Powerhouse aims to galvanise support from MPs to grow the economy for the benefit of the whole region and this makes us unique in the east. We have found that there are virtually no policies that are bespoke for our region and have begun lobbying to change that. Specific policies for the east in life sciences and energy could be transformational, as could a regional spatial strategy and an independent economic review. Making the case for a regional strategy to a centralised government is not easy and there are many in London who are opposed to this idea. But all our research points to the success of regional policies in similar countries elsewhere in the world, and the economic case for a bespoke approach is strong. We will, therefore, continue to promote our region and push for the regional policies we know can work. In September the Eastern Powerhouse was delighted to appoint as our new Executive Director Steven Lynch, who came to us with a vast amount of experience after leading the British Chamber of Commerce in China for 12 years. Steven has added significantly to the team and is determined to help grow our international reach over the coming year. With new members joining regularly, including Anglian Water, Aviva, Anglian Components, and East Cambridgeshire District Council, the Eastern Powerhouse has moved from a start-up phase to one of delivery. Our members rightly challenge us to deliver on their behalf and it is a privilege to work on behalf of so many vibrant businesses and their leaders. 2024 promises to be an election year but the Eastern Powerhouse is politically colourblind and will work with whoever is elected to run the country. Our steadfast belief in the strength of the east and the potential of our region cannot be shaken, and we will continue to stand up for the people and businesses of this wonderful part of the world. I would like to wish to all of you a Happy Christmas and have a fantastic holiday. We look forward to hitting the ground running in 2024. We have very ambitious plans, and we will be celebrating more Powerhouse successes with you. All the best, James Palmer

Following our letter to Prime Minister Rishi Sunak earlier this year, on Monday 5th December, the Eastern Powerhouse met with Minister for Housing, Lee Rowley MP, and Minister for Levelling UP, Jacob Young MP. The purpose of the meeting was to discuss two projects. Firstly, the delivery of an independent economic review for the east. Whilst similar pieces of work have been funded and delivered through the Northern Powerhouse, Western Gateway and Midlands Engine, there has never been an economic review for the east. One was delivered by the Cambridgeshire and Peterborough Combined Authority but whilst that document gave a clear documentation of the economy in Cambridgeshire, it was hardly representative of the east as a whole. So, you would expect that given the department had been so keen to fund similar pieces of work for other parts of the country, they would want a high quality document for the east to breakdown the strengths of our economy? Well not exactly. Strangely the Eastern Powerhouse representatives were told that Cambridge didn’t need an Eastern Powerhouse because it had the Greater Cambridge Partnership, The Combined Authority and the OxCam Arc. This odd statement preferencing a city of 120 000 residents over a region of 7m people underlined the problems the east has had over many decades. More of which later. Our second ask was for a non-statutory spatial plan (NSSP). An NSSP would be a significant game changer for the region. It would allow business to plan ahead with the knowledge that government had a vision for the entire region. It would also act as a guide to local authorities as they delivered local and transport plans over the coming years. Finally, it would allow international investors the confidence that the east of England had an established plan for economic development. I know the department are keen on NSSP’s, part of my remit as Mayor of Cambridgeshire and Peterborough was to deliver one for the Combined Authority, so we should have been on fertile ground. NSSP’s are almost impossible to deliver through local government as self-interest of councils always derails a comprehensive solution. Therefore, the Eastern Powerhouse is perfectly placed to deliver a NSSP for the region. To give credit to Lee Rowley, as housing Minister he could see the benefits of what we were proposing, and the discussion went on to how granular the plan would be. A decision for the department of course but the Eastern Powerhouse has the capacity and experience to deliver what the government need. The meeting was short but left an important impression of the Levelling Up Department and there are questions that need to be answered. Why is the department prepared to invest time and money on setting up similar organisations to the Eastern Powerhouse in other parts of the country yet diametrically opposed to one in the east? Why is the department prepared to fund independent economic reviews in other parts of the country but has no intention to do so in the east and why did the department mention Cambridge and yet had no interest in the other parts of the region or other vital industries? The Eastern Powerhouse will continue advocating for our region, as we know fully well the potential that exists for future growth. A regional approach is truly needed, and we are here to support any initiative that can help drive this agenda forward.

The green economy is characterized by a range of economic activity that is directly contributing to a low carbon footprint and more sustainable use of resources. It is a response to the combined threats of a growing climate crisis and the concerns over the sovereignty of energy generation, distribution and consumption. But the green economy is about more than the energy transition from fossil fuels to low carbon. It encompasses a complex supply chain across numerous industries, including construction and manufacturing, to bring about net-zero carbon emissions and sustainable development. As a result a wave of new ‘green’ technologies has emerged that will help economies transition towards a more environmentally sustainable model of operation - including new sources of renewable energy, cleaner transport usage, organic waste recycling, decarbonisation solutions for homes and businesses - while generating new jobs and business growth. The UK was the first major economy to commit to a target for achieving net-zero greenhouse gas emissions and the East of England is a vital part of this ambition. The region is arguably unrivalled in the UK for its unique energy mix. The East has over 50 years of expertise in the oil and gas sector, specialisms that can help in the transition towards greener energy sources, including the world’s largest offshore windfarm. Renewables now make up a major part of the UK’s electricity generation (around 40%) and the East is a major contributor to this. However, 75% of our total energy use still comes from fossil fuels. This is below the 82% of energy from fossil fuels globally, but the UK clearly has a long way to go. We believe policies for a green economy must respond and be tailored to the unique regional context, targeted towards technologies where the East has or must have strengths. Key short-term priorities should include removing policy barriers to investment (e.g. planning restrictions). The Chancellor’s autumn statement announced reforms to the planning process for infrastructure and significant projects, with guaranteed faster timelines. This will help. As will making the full tax deductibility of capital investment permanent. The East is at the vanguard of the green economy particularly in relation to renewable energy, with specific strengths in the innovation of clean technologies such as offshore wind, biomass, solar and hydrogen. The region is a major green energy hub with a number of important assets across energy parks and research institutions. Yet despite this, green businesses represent a relatively small proportion of the wider economy. The Eastern Powerhouse would like to see a step change in the scale and speed of growth with a coordinated, regional approach to the development of the green economy. A regional net-zero institution ‘Green East’ connected to an Office for Net Zero Deployment, as recommended in Chris Skidmore's Net Zero review. The Eastern Powerhouse firmly believes the East can support the UK’s overall Net Zero Strategy, to reach net zero emissions by 2050, by fully embracing the green economy, acting as the ‘first mover’ region and gaining the competitive industry advantage. The Eastern Powerhouse’s wider ambition of a Silicon East can support the regions green economy by integrating the ground-breaking technological advancements, develop economies of scale and investing in skills of the future.

Silicon Valley’s global significance relies on the ability to attract top talent, foster innovation, and create new technologies that shape our world. The East of England has the same opportunity, but we need to all hold this same ambition. Since returning to the UK after 12 years abroad, I have never felt the urgency more than right now for a unifying vision of the UK, interconnected thinking on planning, and growth models than move away from political parties and elections, but look towards generational progress. If we genuinely want to level up the East of England by delivering a more inclusive, prosperous, and sustainable region, we need to unite around the vision of creating a ‘Silicon East’, connecting innovation clusters with interconnected industry policies. Pockets of the East are recognised globally as an exceptional opportunity for trade and investment. However, not all the issues facing the East can be addressed at the local authority level. They require solutions at the regional and national level. They also require a radical shift in mindset, to cooperate beyond administrative boundaries, and to take a lead from business in pursuing economic agendas. The East is home to 6.5 million people (close to Scotland and Northern Ireland combined). It is a net contributor to the Treasury and at an aggregate level, the East performs well on a number of indicators compared to other regions. The East contributes £153 billion to the UK’s national economy, it is the 4th largest - and 3rd most productive - economy in the UK. However, this performance masks underlying levels of deprivation, in terms of low skills, low incomes, and poor health, as well as a number of structural issues that are holding back the region’s potential for growth. For example, closing the productivity gap between the East and the Southeast would add £31bn to the national economy each year. Decades of underinvestment mean that transport infrastructure has become one of the biggest barriers to growth. Getting around the East is slow, unreliable, and inefficient. Productivity levels are held back by limited rail connections, and a struggling bus network. The East of England needs a modern, integrated transport system that forges closer links between villages, towns, and cities, connecting to the rest of the country – and beyond. Unlocking this investment has the potential to support the Government's overall UK levelling up agenda, which will enable the creation of hundreds of thousands of well-paid, skilled jobs across the region, especially in deprived parts of the country. Closing the productivity gap and rebalancing the regional economy cannot happen without addressing the divide in skills and education. This will require comprehensive, targeted investment in future generations, as well as the working age population. Lifelong learning – to reskill and upskill – will be increasingly required in the emerging economy. A good foundation for skills training – whether this is via a vocational, technical, or academic route – is key to unlocking growth. The East is at the vanguard of new sectors and industries, including life sciences, advanced engineering and manufacturing, agritech, renewable and low carbon energy. With a massive offshore windfarm economy and some of the largest solar farms in the UK, we are already taking advantage of the natural resources here to create a sustainable future. Investment in the green economy is not only an opportunity for local businesses it will enable the whole economy to be more resilient to external ‘energy shocks’ and keep UK businesses competitive in a global market. ‘A Silicon East’ must be more than a nice-sounding phrase. Interconnected policy; forward-thinking/supportive government with a regional vision, combined with proximity to top global universities, a culture of innovation, and a highly skilled workforce is the reason the Silicon Valley became the centre of the global economy. Just like the region in Northern California, the East of England has the same opportunity. We must strive for polycentric growth, allowing the entire region to thrive economically and sustainably, by connecting our coastal towns, rural villages, and world-class cities. I believe the Eastern Powerhouse working with partners can be the vehicle to deliver this vision, and to compete with other regions like London, the North and the Midlands, to get the attention of government and make the case for the right level of investment across all communities in the East of England. I believe the exceptional strength of the East is understanding that business is local, but our reach can be global.

Eastern Powerhouse Chair, James Palmer, and 11 Eastern Region MPs wrote to Secretary of State for Energy Security and Net Zero, Claire Coutinho MP, asking Government for an Energy Policy for the East. The full text can be found below. The Rt Hon Claire Coutinho MP Secretary of State Department for Energy Security and Net Zero By email 29 November 2023 Dear Secretary of State, RE: An Energy Policy for the East In recent years, government investment into the energy sector in the East of England has been significant. As the only region in the United Kingdom with oil, gas, nuclear, wind, and solar power, and one that produces around 30% of the United Kingdom’s energy, the importance of the energy sector in our region cannot be underestimated. The Eastern Powerhouse welcomes the investment and dedication to the energy industry in the east, particularly the £700m commitment to Sizewell C. However, we feel that without a specific energy policy for the east, there is a risk that government may not gain the best possible value from their massive financial support. A well-drafted energy policy for the east would not only have the benefit of mapping current and future energy provision, but also it would be an opportunity to include the education sector, particularly in areas of deprivation along the east coast. There are significant growth opportunities that could be harnessed successfully through a bespoke energy policy. A stronger wind industry and an improved electrical grid would not only bolster the east’s economic prosperity, but it would also truly enhance the country’s energy security, most particularly future hydrogen production and provision of hydrogen to our major industrial centres. We would also like there to be full consideration in the policy to piping carbon from the near continent to empty oil and gas wells off the east coast. The Netherlands is only 125 miles from the Norfolk coast and carbon is currently taken by boat from Rotterdam to the arctic circle. We are confident that the UK can offer a better solution. A dedicated energy policy could explore such possibilities. A detailed energy policy for the east would also create an inclusive industry that has a solid plan to really boost economic growth, create more green energy, secure our future energy needs as well as future energy production, and create education pathways into the industry that would allow local people a clear access to secure jobs. The East of England was where gas production first began in the North Sea, billions of pounds of investment and gas production followed. Vast numbers of export of both energy related machinery and skills made the area strong in the 1970s and 80s. The east continues to be one of the strongest economies in the country, however links between the energy sector and the burgeoning Cambridge economy are weak and could be stronger. This ambition could and should be part of a dedicated energy policy for the east. The Eastern Powerhouse is an independent, non-political organisation that works to promote sustainable growth in the East of England. We want to work with government to form a complete energy policy for our region, one that would offer a solid return on considerable public sector investment. I hope you will agree to meet us and plan a way forward. Yours Sincerely, James Palmer Chair, Eastern Powerhouse Co-signed by: John Baron MP Jo Churchill MP Jonathan Djanogly MP George Freeman MP Matt Hancock MP Tom Hunt MP Jerome Mayhew MP Andrew Selous MP Chloe Smith MP Giles Watling MP James Wild MP

In 2010, the coalition government created a network of Local Enterprise Partnerships (LEPs), delivering on one of the Conservative’s election promises to abolish the Regional Development Agencies. LEPs were designed as a less bureaucratic and more collaborative partnership between local authorities and businesses. The aim was to drive economic strategy, job creation, and infrastructure development, tailored to the needs of local economic geographies. However, their footprints were considerably smaller than regions. Outside of the main urban centres, they were largely organised along county boundaries. Some operated across boundaries, such as the New Anglia LEP, which covered Norfolk and Suffolk. One key aspiration for the LEPs was to decentralise decision-making and empower local communities to shape their economic destinies. The idea was to bring together both public and private sectors, with their deep understanding of their localities, to better identify the opportunities and challenges and steer investment and development in a more targeted and effective manner. This included simplifying access by business to growth funding. In terms of perceived performance, LEPs faced a mixed reception. Supporters praised their potential for fostering collaboration and driving localised economic strategies. Each was designed as a partnership to facilitate engagement between local authorities, businesses, colleges, universities, and other stakeholders, promoting a more cohesive approach to local development. Proponents argued that this localised decision-making process could lead to more nuanced and effective solutions than a regionalised, one-size-fits-all approach. However, critics raised concerns about the inconsistency of LEP performance across different regions. In the East, some partnerships thrived, such as the New Anglia LEP. In contrast, others faced challenges related to funding, accountability, and a perceived lack of transparency, such as the Cambridgeshire LEP, which was folded into the Combined Authority. Almost all failed to articulate a more expansive vision for the Eastern Region. Additionally, questions were raised about the representation and inclusivity of LEPs. Ensuring that all sectors of society, including marginalised communities, had a voice in the economic planning process remained a challenge. Upper Tier Authorities, whilst technically the hosts of the LEPS, resented the transfer of their economic development functions into the LEP and long argued they could do the role better. Other critics argued that without broader representation, the outcomes of LEP initiatives might not address the diverse needs of the entire community. This year, the government signalled the demise of the LEPs, with most of their functions being transferred to the upper-tier councils, namely the county councils in East Anglia. The trick will be to build on the successes of LEPs in bringing the voice of companies and business leaders into the economic development decision-making process. In my experience, as a former county council leader, business leaders get very frustrated with the cumbersome decision-making processes of local government. So, there is a real danger that business leaders will disengage. Equally, District Councils play a significant part in economic development with their planning powers, and again, upper-tier authorities (Counties) are in danger of deciding the economic strategy for their footprints without other key actors being involved. But perhaps the greatest failing of the LEPs and, indeed, local government is the lack of a shared vision for infrastructure investment across the East. This has meant that other regional entities like the Midlands Engine and Northern Powerhouse have been listened to and supported by Government. Remember that the East of England is bigger than Scotland; yet where is the engagement with Westminster? Hence, the Eastern Powerhouse. A partnership born of necessity which over the past 18 months, has grown its membership and brought together business leaders, local authorities, universities and colleges to articulate a pan-regional approach to engage with our local MPs and work with government.

James Palmer, Chair, Eastern Powerhouse So, another statement from the Chancellor comes and goes and still the East is virtually invisible in government policy. Whilst the Chancellor lavished praise on constituencies across the country, his sole mention of the east was for housing development in Cambridge. Hardly reflective of the importance the east of England as a contributor to the UK economy as a whole. The Eastern Powerhouse supports initiatives to help grow business and support the self employed but it really is time that government recognised the east for the economy powerhouse it is. While initiatives to help life science start ups grow and national funds for science, technology and energy may find their way to the east eventually, there are to be no further investment zones for the east – a quite staggering omission, given the geographic spread and population of the region. So, while the east contributes 8.5% of gross domestic product, is a net contributor to the treasury and has a larger population than Scotland, we still seem to be invisible to the treasury. The Eastern Powerhouse will make sure the chancellor is informed of our disappointment.

Like most of England, business growth and productivity in the Eastern Powerhouse is being held back by skills challenges. To some observers, this may be surprising, as the East of England performs pretty well as a region in terms of educational achievement and has a relatively well-educated population, with 40% of residents of working age educated to Level 4 (first year degree level) or above, just under the England average of 43.5%. But this overall picture conceals considerable variation in results across the region, with areas like Cambridgeshire and Hertfordshire performing well above average at GCSE and A level, while areas like Suffolk and Norfolk are below average. As far as school and college education is concerned, there’s a clear challenge in getting all parts of the East performing as well as the best, made more difficult by the diverse geography and weak transport infrastructure across the region. But as the recent “State of the Region” report highlights, there is also a big challenge in reskilling and upskilling the region’s existing workforce. Two facts stand out. The East has one of the highest levels of hard to fill job vacancies as a result of skills shortages and skill gaps, with key sectors such as Health & Social Care, Construction, and Accommodation & Food Services suffering in particular. Meanwhile, the average number of training days per employee is one of the lowest in the country and disappointingly the figures show a steady downwards trend. There is a pressing need to raise the game in making sure employees in the East are keeping up to date with training needs in a rapidly changing world where high-level technical skills – notably digital skills – are now so vital for economic success. So what can be done to tackle this challenge? The Eastern Powerhouse believes that the key is much greater coordination between employers and training providers to tackle the mismatch between skills supply and demand, and to better align courses, apprenticeships and other forms of training with the specific needs of sectors and geographies. We need better information on labour market trends and better identification of the emerging skills needs of growth industries. This will require the establishment of a labour market observatory to collate and disseminate data on current and future needs. We need much better mechanisms for giving employers, providers and individual job seekers access to relevant information to inform investment in training and education, and much stronger Careers information and guidance for all those of working age in the region. And we need better forums where employers and providers, including further education colleges, universities and independent training providers can develop joint strategies for matching skills demand and supply. While this needs to be done at sub-regional level, there is also a clear need for an overarching regional dimension to better harness and deploy resources from Cambridge to Great Yarmouth, and from Norwich to Ipswich. We have described this as a “polycentric” strategy, where the work within geographical clusters is developed within a wider regional framework. The good news is that the Eastern Powerhouse has begun to forge the partnerships and strategies needed to bring about a step change in the delivery of education and skills throughout the region. We have excellent colleges and universities. We have ambitious and forward-thinking companies of all sizes. We need to bring all these ingredients together to build a regional skills system that can underpin growth and raise productivity.

This week, the Eastern Powerhouse released the first State of the Region report for the East of England. The report details what is happening in our region and offers an insight into what could be done to grow the economy. It is important to note that the East is the fourth largest and highest performing regional economy in the UK, with a gross domestic product of £193bn per year, 8.5% of the UK’s GDP. There are, however, worrying signs that the East has slipped relative to other regions and nations – with negative wage growth, falling vacancies, widening skill gaps, decreasing levels of Foreign Direct Investment, and an increasing trade deficit. The East is still dealing with the aftershock of unprecedented events including the Covid-19 pandemic and the war in Ukraine while adjusting to the post-Brexit settlement and new trade agreements, which have made the cost of doing business in the East more challenging. This is evidenced by fewer new enterprises and rising business closures. There are real risks that rather than being “Levelled Up” the East is falling behind. Government spend per capita in the East is the second lowest in the United Kingdom. Yet, the report shows that the region has a unique combination of assets and knowledge-intensive industries, in life science, green energy, agritec and advanced manufacturing, which with the right level of investment will bring significant returns for the country as a whole. Whoever goes on to control parliament in the next election must bring forward regional policies that take advantage of the resources the East has to offer. In fact, it is time for a coherent regional strategy to connect important clusters of economic activity in our cities and towns and along our transport corridors. This will supercharge the East and distribute the benefits of growth more evenly across the region. The East needs a regional spatial strategy, to align transport and housing plans over a 20-to-30-year period. Disconnected local plans have led to housing hot spots and the lack of high-quality public transport has exacerbated the problem. To maximise the potential of the Cambridge economy, we should be looking at a wider Silicon East. We must have an inclusive plan that takes advantage of the warehousing, manufacturing and distribution opportunities in Ipswich and Peterborough and maximises the science and technology brilliance in Norwich, Stevenage, and Cambridge. Our energy sector should be central to this plan and the east should lead the world in renewable energy innovation. Rail routes must be improved, and housing delivered at existing and potential new railway stations. Rail travel between our major centres is too slow and hampers economy growth. Government commitment to upgrade Ely North and Haughley junctions is a start but not nearly enough. People in the east deserve the same investment into public transport as those in London, the current level of funding is unacceptable. Upgrades to the A47, A12 and A120 have been much discussed but never delivered. The current plan for the A47 is woefully short of expectation and need. This is a road that links the energy sector on the coast to the centre of the country, in any other region it would be a motorway, here it is not even a dual carriageway. In fact, there are just two sections of motorway in the east and none at all in Suffolk or Norfolk. We have the UKs largest port and the infrastructure that serves it is totally inadequate. The Eastern Powerhouse is working on regional policies for energy and life science. We understand the needs of our business members and the opportunities that simply having a regional specific policy can offer. The State of the Region report offers both hope and a stark warning. Government has – in the East – a powerful economy with room to grow and become stronger. The winner of the next election should take heed of what the report says and deliver a plan for this incredible part of the country. By James Palmer, Chair, Eastern Powerhouse

This report provides analysis of the economy in the East of England and its performance in relation to other regions and nations in the UK. It is the Eastern Powerhouse’s first annual economic monitor for the region and provides a baseline for future assessment. It highlights the considerable challenges which the regional economy is facing - with negative wage growth, falling vacancies, fewer new enterprises and rising business closures, decreasing levels of Foreign Direct Investment, as well as an increasing trade deficit.

Steven Lynch, Executive Director, Eastern Powerhouse "The Kings Speech is an opportunity for fresh thinking on critical issues. The Eastern Powerhouse calls for growth barriers to be removed so we can unleash the East's full potential. Eastern Powerhouse members from the smallest to the largest are continuously telling us that the right tweaks in policy and regulation would have an enormous and positive impact on their ability to grow. We believe there is a real opportunity right now for an ambitious agenda which will transform our approach so we can enhance the East’s economy, invest in skills for the future, improve Infrastructure and connectivity which will ultimately drive growth and raise productivity in the East and help drive the entire UK" Our 3 key asks for the King’s speech are: The UK needs regional policies to address widening productivity gaps. The East of England is the third most productive region but its full potential cannot be realised without a coherent strategy and policies for the region. A unified vision is required to create a Silicon East, we need to understand and decide how best to arrange and develop our assets and resources. Government should enable a regional strategy for the East that tackles the inequalities of the region by focusing on connectivity, education and economic growth. Infrastructure is the bedrock of economic success: We must improve transport connectivity within the region, this will close the income gap between coastal towns and global research cities. We must focus on and address energy and water deficits and all the other development and planning constraints on growth. This will dramatically promote the region as a place to work, study and live. Tackle the skills shortage: We want to see skills and educational attainment higher on this country's agenda; for the East to thrive we need to make sure our local industries are equipped with a higher-skilled workforce. We want to see skills focusing on the future of work, allowing the entire East of England to grow and attract businesses to capitalise on world-class assets and talent.