Chamber’s recent future economy event in Hull brought together local leaders and politicians to discuss how the Humber can grow and evolve its economy through the decarbonisation and sustainability agenda in years to come.
A keynote speaker at Chamber’s recent Future Economy seminar in Hull was the Ambassador of Germany to the United Kingdom, Miguel Berger who was at the conference to engage in conversation about the economic future of the Humber.
As far as levelling up goes, big cities have reaped the rewards while more rural areas, such as the Humber region, have been left behind.
One sector in which Hull could thrive in moving forward is energy, with Siemens Gamesa − a world leader in offshore wind − setting up a base there in 2016. Another Siemens facility − Siemens Mobility − is being built in Goole to manufacture trains.
There have since been plans announced for expansion work at the Gamesa site, and Berger used his time in the region to visit the powerplant and the new development in Goole. He commented extensively about the thriving energy sector and what he believes the UK can learn from Germany when it comes to levelling up.
Levelling Up in the UK vs Levelling Up in Germany
While the levelling up agenda has been the source of great frustration in the UK ever since Boris Johnson first mentioned the policy in the build-up to the 2019 General Election, the implementation of a levelling up agenda in Germany occurred much more seamlessly. Explaining what the UK could learn from German levelling up, Berger said,
“Levelling up is a very important topic. Whenever I have the opportunity to visit the UK, this topic comes up frequently and there is some comparison between the British system and the system with the federal states in Germany, but there are also plenty of key differences.”
“What we are doing in Germany is not going in the direction of funding. What we have is a system whereby the tax income is distributed fairly according to percentages, which are negotiated. This means that municipalities and the federal states have a better idea of what money is coming in on a longer-term basis so they can make more commitment to certain things.”
“Then, when it comes to decision-making, we have a rule in our constitution that says that we should try to achieve more or less the same level of development across the country. This means that the richest states have to give part of their taxes to the poorer states and the idea is that this balances the standard of living across the country.”
Improving Business Connections
A major hiccup for international business connections in the UK has been Brexit, with the red tape that has been in place since the country left the EU causing many European businesses to go elsewhere. Speaking about the impact of Brexit and how he is looking to improve business connections in the UK, Berger said,
“This is a very important part of our work at the Embassy and it’s also why I try to get out of London as often as possible. British politics takes place at Westminster and it keeps us busy, but nevertheless, I try to travel as much as possible to Northern Ireland, Scotland, Wales, and other parts of England.”
“Overall, we have around 2500 German companies in the United Kingdom. The number has dropped slightly after Brexit, and it’s mainly had a bigger impact on small and medium companies because they are struggling with the additional paperwork and additional costs that are part of the post-Brexit situation.”
“It is challenging for all of us, and we have seen an overall reduction of our trade at around 10−15 per cent but it has stabilised now. The biggest German investment we have seen in recent years is from NeuConnect − a £2.4bn energy connection between Kent and Northern Germany that should be operational by 2028.”
A Focus on Energy
Energy was a big focus during the Hull event – Berger expressed his high hopes for the sector, particularly in how it could link the UK with Germany in the coming years. He said,
“I think energy transformation is and should be a key topic for the future. We have signed an energy partnership with the British Government and what we want to do is look at the topic of energy security, which has been a point of interest since Russia’s invasion of Ukraine.”
“This means we have to cooperate in Europe on energy transformation and look at things like offshore developments. The UK is already leading in that and there is a vast possibility to expand that further. I can assure you that there is a lot of interest not only in Germany but with the rest of Europe to expand the cooperation around energy transformation.”
“We are very interested in the import of green hydrogen. If we want to achieve net zero in Germany by 2050, we need to import large amounts of hydrogen. We need to build up a connection between the United Kingdom and Germany for hydrogen.”
“What we would like to see is a feasibility study for a pipeline from the United Kingdom to Germany and I see that as one potential solution for the export of hydrogen to Germany.”
Chamber’s Roundtable Event:
To watch the full video of Berger’s speech at the Future Economy Seminar, please click below and subscribe to our YouTube channel.
Chamber hosted a Chatham House Rule roundtable dinner with key stakeholders including the German Ambassador, Miguel Berger, Shadow Minister for Environmental Quality and Resilience, Emma Hardy MP, Chief Executive of Hull and Humber Chamber of Commerce, Dr Ian Kelly, and Liberal Democrat Leader of Hull Council, Councillor Mike Ross. They shared insightful dialogue regarding the future for sustainability and decarbonisation. Exclusive outputs from this roundtable will be made available to Curia’s Industrial Strategy Research Group subscribers.
Curia’s Industrial Strategy Research Group
Alongside the Health, Care Life Sciences Research Group and Foreign Policy and Defence Research Group, Curia’s Industrial Strategy Research Group offers privileged access to events, such as this one, with previous and upcoming events for subscribers including a gala dinner with Shadow Chancellor Rachel Reeves MP, a reception with Chancellor Jeremy Hunt MP, and a jazz evening with Shadow Secretary of State for Culture, Media and Sport, Thangam Debbonaire MP, and Shadow Minister for Science, Research and Innovation, and Chi Onwurah MP. To find out more please email team@curiauk.com and visit our website here.