National

UDI for the North gets ever closer

UDI

As the Scots get ready to go to the polls to decide if they want total independence from the UK, or simply accept a generous additional devolution package that is on offer, the North of England continues to lobby Westminster in the hope that we can get some extra crumbs from the table that doesn’t include multi billion pound infrastructure schemes that, though much needed and long overdue, are at least a decade away from completion.

Local government cuts may have been necessary five years ago, but it is fair to say that those cuts were not imposed in an equitable fashion across the country, and cities like Manchester, Liverpool and Leeds; and indeed counties like Lancashire, have been tasked with taking more than their fair share of the pain since 2010.

Had the austerity programme been evenly distributed across the country then Manchester would be £1million a week better off. Similar statistics are also true in other northern regions.

But it is not only cash but power and responsibility that the north has been starved of. The Scottish parliament has enjoyed a huge amount of autonomy since 1999, whilst even the Welsh Assembly, representing a population that is fewer than Greater Manchester and many other English city regions, have more say over their nations affairs than we do here.

Downtown has long argued that structural reform of local government is vital. However, with that reform must include genuine decentralisation of real additional powers, not least the ability to raise and spend local taxes, greater planning and regeneration autonomy and the opportunity to spend education, training and employment budgets in a more locally relevant fashion.

These ‘asks’ have been made in a rather hopeful, half hearted way in the past; but the Scottish situation means that English devolution is right back on the agenda and this time political and business leaders mean business.

Already the mainstream political parties are talking far more seriously about how a new English devolution settlement can be progressed post the next election. The job now is to turn talk in to action, and once and for all give big northern cities the chance to shape their own destiny.

Three is the magic number

LLM

A report headed by esteemed economist Jim O Neil caused a stir last week with the suggestion that the great cities of Manchester and Liverpool should merge.

The City Growth Commission, an independent inquiry aimed at trying to boost urban growth in our major cities, suggests that ‘Manpool’ would enable the two Northwest giants to economically compete on the global stage more effectively by coming together, and help to begin to address the growing North –South divide which I wrote about here.

The argument goes that by creating a Northern super city we will see a genuine competitor to London, a capital city whose population and economic activity positively dwarves all other UK core cities.

As much as aggregating the might of Manchester and Liverpool would undoubtedly establish an economic juggernaut for the region, the practicalities of bringing the two traditional rivals together in a formal administrative sense would be challenging if not impossible. You only have to look at the deranged lobbying that took place over the name of the proposed Liverpool city region Combined Authority to see how difficult parochial local politicians find it to give up ‘power’ for the greater good.

Nonetheless, there is every prospect, indeed already existing evidence, that on issues of strategic economic importance significant co-operation takes place between Manchester and Liverpool. The two major transport infrastructure projects HS2 and the ‘Northern Hub’ are the most obvious, though not exclusive, examples.

Even on the international stage there is sharing of platforms and resource. The chief executive of Manchester city council and the mayor of Liverpool will share a stage in MIPIM next week. And Manchester is a key partner in the forthcoming International Festival of Business to be hosted in Liverpool.

So though a formal coming together of the two cities is as likely as Luis Suarez signing for Manchester United, the agenda for even greater collaboration should be explored and progressed.

However, why stop at Manchester and Liverpool? In both those transport infrastructure projects mentioned Leeds is a key partner too. And the attractiveness of a great northern economic hub, with three major conurbations working together rather than two, is a powerful and surely more compelling option.

By coming together to form a triumvirate of the north, Manchester, Liverpool and Leeds could accelerate the work that they do together already, and extend it. Motorway connectivity is a major issue that can only be genuinely addressed by all three cities working in partnership and finding and funding a solution.

What of aviation? Is the wider region capable of sustaining three airports without greater dialogue between Leeds Bradford, John Lennon and Manchester Airport Group?

Beyond transport, there are many cultural and social projects where greater collaboration and a pooling of resource could bring benefit to the entire region.

Another area where the three cities are already at one is in their call for devolved powers, budgets and responsibilities. Ultimately this is the key that will truly unlock the potential of our great cities and begin to close the unhealthy gap that exists between London and the rest of us.

An Unhealthy Imbalance

Outlook for Cities

Another report, another confirmation of the economic chasm that exists between London and the rest of the country.

The Centre for Cities report ‘Cities Outlook 2014’ highlighted the growing gap between North and South, in particular planet London and the rest of us.

London accounted for a huge 80% of private sector jobs created between 2010-2012, while Britain’s nine next largest cities combined created only 10% of private sector work.

In actual terms 216,700 jobs were created in London in the two year period, compared to the next best figure which is Manchester’s 13,200.

Cities like Liverpool can partially celebrate the news that more private sector jobs have been created than in previous years, but then we have to accept the low base from which the city was starting from; and the yet to be fully felt impact of massive public sector cuts across Merseyside, and indeed the North of England generally.

Successive governments have tried, and quite clearly failed, to address what has been an unhealthy imbalance in the UK economy for far too many years, and it is now surely time for our politicians to accept that only radical, structural reform that allows genuine decentralisation of power to our great city regions and counties is not just desirable, but absolutely essential.

Poorly funded Local Enterprise Partnership’s, a scattering of city mayors and combined authorities are the existing vehicles that are in place to give the regions a better chance of competing with the London beast. As the figures show, they simply aren’t working.

The problem is that whichever colour the government, Westminster finds it incredibly difficult to give up the patronage it has held over the rest of the country for centuries.

‘How can we trust those Northerners to elect politicians who will do the right thing’; or ‘We know best’ is the long held view in the corridors of Westminster power. Crumbs off the table for the odd city deal here; the much trumpeted but ineffective Regional Growth Fund; and other poorly funded one-off initiatives are apparently all we deserve.

It is time we in the north started to demand more. Private/ public sector partnerships have thrived in Manchester, Liverpool, Leeds and Lancashire for many years now, but to maximise the potential of this collaboration we need a genuine transfer of powers AND resource.

The models of governance can be debated and discussed within the regions, and one size may not fit all, but we can’t go on like this.

For me the starting point is adopting an economic strategy that recognises the dangers and absurdity of more than 80% of the nation’s wealth being created in one city; a meaningful redistribution and decentralisation of funding for major city regions and counties, including an increase in borrowing limits and control over council tax and business rates; plus the establishment of regional investment banks.

Pay peanuts and you get…?

miller-john-the-houses-of-parliament-palace-of-westminster-unesco-world-heritage-site-london-england

12 July 2013 at 11:00

‘You get what you pay for’ is an ancient adage that most of us in business will recognise to be true. It is true of business clubs; it is true of events; and it is true of MP’s.

Without wishing to generalise too much, I would suggest that the current bunch of Parliamentarians that represent us are of a significantly poorer calibre than in previous parliaments. One only has to look at the respective front benches to recognise that all the mainstream parties are short of talent. Indeed how many ministers and shadow ministers can you name?

Those who do have a bit of quality and the ‘X’ factor are in huge demand from within their own political organisations and from the outside world, so if you want Chuka Umunna or Boris Johnson to appear at something for you in 2015 I’d advise you book them now. Come to think of it, Boris isn’t even an MP nowadays, though internationally he is the UK’s most recognisable politician.

Of course this dearth of talent is not simply about what MP’s are paid. It is about the increased pressures on family life and the abject failure of the House of Commons to modernise its procedures. It is about ‘cabals’ and cliques in party associations and constituency parties who stitch selections up for their mates. It is about 24/7 media scrutiny of all that you do as a public figure.

But ultimately salary does matter. Why would a captain of industry, a young entrepreneur or a creative talent give everything up to put themselves forward for a seat in a dragons den where there place is re-advertised every four years however good their individual performance, if the annual remuneration is less than a Premiership footballer earns in a week?

The job of an MP is a tough one, a time consuming one and one that is high on pressure. If we want to attract good people to this important role then we will have to be more generous and mature when it comes to paying them. The recommended 75K has hit the headlines this week. Buried was the radical change to expenses and pension rights that actually leaves MP’s no better off.

We can continue to compare our MP’s to care workers and beat them up every time a salary increase is recommended by an independent body. In that case we have to accept that we will continue to get the MP’s we deserve. In other words, get what we pay for…

A revolution worth supporting

revolution

I hope that those of you who managed to join Downtown’s Northern Revolution Conference at Media City yesterday enjoyed the occasion and left the event feeling inspired and fired up.

The idea of the conference was not to have a moan fest about ‘that London’ but explore how we can grow the economy of the North by helping ourselves.

We heard from a range of business leaders and decision makers on how positive things were across our great cities of Manchester, Leeds and Liverpool, and how the enterprise agenda was being fuelled by entrepreneurs such as Lawrence Jones, Shazan Qureshi and Matt Riley, and by entrepreneurial companies too, not least Bruntwood and Peel.

The move of the BBC to Salford was a focus for one of our keynote sessions, and clearly this has impacted positively on the media’s relationship with the North of England. On transport we were told that HS2 is not simply about cutting journey times, but capacity, and it was agreed by all that connectivity across the region was as much a priority as the £40 Billion project.

London was largely seen as a force for good by speakers and delegates alike, with a recognition that without our capital city UK Plc would be in deep(er) trouble.

Nonetheless, the overriding message from the conference was that the progress that we have seen over the past decade in the region could be accelerated if we could take control of our own destiny, rather than be fed southerners solutions for the challenges in the North.

Interestingly, and encouragingly, nobody whinged for more money. What was argued for was for more control over existing resource. We know what we need to spend our limited resource on better than Westminster mandarins and politicians.

The private and public sectors in the North have now established a track record of partnership working that has delivered transformational change, and with devolved power, responsibility and cash we could do so much more.

On skills, education, business support, economic development, planning and most specifically transport, a narrative around devolution emerged throughout the conference that was compelling.

Our job now, with your help, is to get this message across as forcibly across to the powers that be as we can. The Revolution has started – why not come and join us?