FRUSTRATED business leaders have snubbed local councils and taken a significant step towards increasing the region's chances of attracting new investment.
It follows a meeting between senior business figures from both banks of the Humber and ministers in London yesterday, to discuss the formation of a Local Economic Partnership (LEP) spanning the estuary.
The Mail understands a partnership could now be approved by ministers as early as May.
It came just 24 hours after Hull was notably absent from an initial list of proposed new Enterprise Zones, announced by Chancellor George Osborne in his Budget speech.
The new zones – which offer tax breaks and relaxed planning restrictions in a bid to help attract new investment – are only being approved in areas where LEPs have already been agreed.
But councils around the Humber have been at loggerheads over the structure of a local partnership for six months.
The stalemate has led to fears the area could miss out on new business investment being encouraged under the new zones.
Ten zones were announced on Wednesday and another 11 will be unveiled later this summer after a competitive bidding process.
And following yesterday's meeting, hopes are high that Hull could be successful in securing an Enterprise Zone this summer.
A pan-Humber LEP would be spearheaded by the Hull And Humber Chamber Of Commerce.
And the chamber's intervention has already been welcomed by Government ministers, who praised their commitment to growth in the region.
In a statement, Decentralisation Minister Greg Clark said it was a very positive step forward.
"I was very impressed by the level of energy and commitment shown by businesses from north and south of the Humber to work together to ensure that the area benefits from a local enterprise partnership," he said.
"It was also remarkable that MPs from different political parties from across the area shared their determination."
The move is likely to cause conflict with council leaders in Hull and the East Riding, who have been pressing for a North Bank-only link-up with Scarborough instead.
But speaking after the meeting, Richard Kendall, head of policy and communications at the Chamber, said the step had been needed.
"It was a very encouraging meeting and the minister left with a clear appreciation of what businesses want to see," he said.
"The business community will now take the lead in urgently developing proposals for a pan-Humber LEP to support economic growth.
"This will be one component of a possible solution that would meet the needs of businesses and local authorities. We have discussed it with the minister and will be seeking to discuss it with council leaders in the coming days.
"We have a small window to catch up before the deadline for Enterprise Zones closes, and the minister has assured us that it can be done.
"We are determined to resolve this situation quickly and once and for all to ensure we do not miss out in the opportunity afforded by LEPs and Enterprise Zones and that we make the most our potential for growth."
The business-led delegation also included Carolyn Burgess, chairman of Language Is Everything; Andrew Horncastle, chairman of the Horncastle Group; Steve Martin of the Clugston Group, and chamber president Howard O'Neil.
Mr Kendall explained why businesses had taken it upon themselves to head to London to try and resolve the issue.
He said: "We are six months behind everywhere else on this and businesses in this area were becoming very frustrated.
"The Government announced something concrete that we are missing out on as a result of not having a LEP in place, which made it all the more important that we got the matter sorted.
"Given the frustration there has been, I think those who were at the meeting were very pleased with the outcome.
"We are glad to be making progress – the end is just in sight."
Hull West and Hessle MP Alan Johnson described the meeting as "productive".
"I am sure the Ministers understand the need for a Humber-wide LEP," he said.
"There now needs to be further discussion between the four local authorities to discuss the Chamber's revised proposal so that we can get Government approval and then move to establish an Enterprise Zone.
"If we don't move quickly, a huge opportunity will be lost."
The concept of a Humber-wide LEP has been championed by many businesses on both sides of the Humber.
Dr Malcolm Joslin, of BP at Saltend, said: "BP's natural economic area is the Humber. We use the Humber for a lot of our trade and imports and exports but also, when you look at our skills base, that is Humber-based as well."
To illustrate his point, Dr Joslin pointed to Catch in Stallingborough – a purpose-built training facility to help local workers develop the skills needed in the chemical and allied industries.
He added: "We were one of the partners involved in setting that up because we realised that we needed to tackle the skills issue at a Humber-wide level.
"For these reasons, we certainly recognise the benefits of having a pan-Humber collaboration."
Thomas Martin, joint managing director at Arco, said: "I don't really care about political boundaries. Any company coming into the region would look at the Humber.
"I am proud to be associated with a team that is looking at developing a Humber-wide LEP."
Hull North MP Diana Johnson said: "The proposal for a business-led solution to deal with economic growth in the regions appears sensible.
"The business leaders have made it clear that they want a pan-Humber LEP that will bring the economy together on the north and south banks of the estuary.
"We have had the wonderful announcement from Siemens on the future of renewable energy in our area, but because of the way in which the local councils in East Riding and Hull are behaving, the business community has been left without an LEP."
East Riding Council leader Stephen Parnaby and Hull City Council leader Carl Minns were not available for comment.
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