Businesses in the North of England should contribute 1 per cent of their profits towards a fund aimed at creating better health and opportunity in their communities, a think-tank has claimed.
IPPR North said the cash would create a “Northern Powerhouse Community Fund” to support voluntary and community activity across the North such as schemes to cut homelessness or create opportunities for young people.
It’s one of a number of ideas in a new IPPR Report looking at the role businesses can play in the Northern Powerhouse project.
Decisions about where the funding should be spent would be made by an advisory committee of northern people, chosen at random.
The 'invisible' homeless sculptures at Manchester Piccadilly
Researchers at the charity argue that the Northern Powerhouse agenda has overlooked the contribution businesses could make to the health and well-being of people and urges firms to take a greater civic role.
A number of recommendations include ending austerity in local government and allowing councils to levy a two per cent business rates premium for “social infrastructure”.
It also includes inviting combined authorities to propose their own taxes on business to fund activities that are additional to their statutory duties and committing to a comprehensive redesign of the current system of business rates.
Report author and research fellow at IPPR North Jack Hunter said: “The North of England has been fundamentally shaped by its industries and its businesses, and this legacy continues today.
"While there are far too many examples of exploitative firms, many northern businesses provide significant value to their area, above and beyond their role as employers and taxpayers.
“We need business to step up. Low pay, declining living standards and climate change mean that business as usual is no longer an option.
"We need tougher regulations to police the worst excesses of the private sector, but we also need to encourage firms to play a more civic role to ensure a fairer, more prosperous North.
“A Northern Powerhouse community fund would help to ensure that the proceeds of investments made to business through the Northern Powerhouse agenda, are shared with everyone across the region.”
