Leeds

Leeds’ ambition deserves Westminster backing

Leeds

The strategic economic plan recently produced by Leeds is evidence that innovative, entrepreneurial and deliverable policies can emerge from regional agencies – but equally demonstrates the frustration that Northern city leader’s face when trying to implement positive change.

An executive summary of the Leeds city region document can be read here and it is clearly an ambitious, realistic strategy that articulates the huge opportunities and potential of Leeds and its surrounding areas. It is a plan strengthened because of the broad support it has from an increasingly cohesive, co-ordinated public sector and a private sector that is keen to see economic growth accelerated.

In recent weeks there has been much talk about the growing North-South divide. To address that unhealthy chasm then, government should welcome and back ideas such as getting on with HS2, investing in major infrastructure improvements, building more housing and making Leeds an IT and digital centre of excellence. But more than this, Westminster needs to give the city region the tools to get on with the job.

Funding for transport projects, allowing Leeds to retain the receipts from the disposal of HCA assets across the city region, allowing the newly established Combined Authority to recover VAT and returning revenue funding to the Local Growth Fund are all reasonable asks that the government should agree.

Without these relatively minor changes at central government level, without a degree of decentralisation of finance, decision making powers and responsibilities, and without a recognition that Leeds knows what is best for Leeds, then this impressive plan will only be partially delivered – and that economic imbalance between North and South will get worse rather than better.

Lancashire United

Lancashrie Rose

Last night over a thousand business leaders packed in to the Winter Gardens for the annual Red Rose Awards to celebrate the success of a diverse and impressive number of companies who have enjoyed a successful twelve months.

The event, hosted by the excellent publication Lancashire Business View, was no doubt a fabulous evening, and one I was really sorry to miss due to commitments today.

As they sat celebrating the wonderful business stories from across the county guests can be forgiven for not giving too much thought to the discussion and debate that I referred to in my blog here last week, whereby cities and city regions are increasingly seen as the future of economic growth in the UK.

So, how should Lancashire respond to the notion of cities exclusively taking the mantle of economic growth hubs, and indeed the idea presented by Evan Davies in his excellent BBC programme ‘Mind the Gap’ that to compete with London a Northern ‘super city’ ought to be created, consisting of Manchester, Liverpool and Leeds.

There is much merit in these three giants working more collaboratively, as I pointed out last week, but it then leaves the question as to how places like Lancashire, Cheshire and Cumbria will be supported.

If national policy continues to drive city hubs as the solution to relative economic decline in the North, then counties can only suffer – unless they create a fresh operating environment themselves.

There has been near irrational resistance from the various components that make up the Red Rose County to accept a hub city or an attack brand that can lead the marketing and business development agenda for Lancashire.

The Local Enterprise Partnership has performed remarkably well in bringing the disparate parts of the area together, but the underlying tensions between Blackburn, Preston and Blackpool still exist.

As the surrounding boroughs of Manchester, Liverpool and Leeds buy in to the inevitability of city hubs being the only way to drive city region wealth, albeit some more enthusiastically than others, Lancashire continues to insist on equal distribution of resource across its vast expanse, therefore diluting the offer that a united Lancashire would offer.

Both the private and public sectors need to address this problem before it’s too late. Ninety nine councils, hundreds of councillors and several Chamber of Commerce organisations representing one county cannot be right. A combined approach to our collective challenge will help enormously, and we’ll be approaching you soon to ask if you’re up for helping Lancashire overcome that challenge.

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.

What is going on at Elland Road?

Elland Road

From Peter Ridsdale through to Ken Bates Leeds United Football Club have endured what can most kindly be described as a rollercoaster ride in recent times. But even by its own incredible standards, this week must go down as one of the most bizarre in the clubs history.

The manager was apparently sacked on Transfer Deadline day, with the club captain going onto the Sky Sports channel to tell viewers of his own personal distress at the news. The following day, with the help of a hat-trick from the skipper, Leeds comprehensively beat Yorkshire rivals Huddersfield by five goals to one. Post match it was announced that Manager Brian McDermott had been re-instated, or perhaps never really, officially, sacked in the first place.

To put the icing on this very messy cake, a winding up petition was issued by one of the clubs sponsors on Wednesday, claiming none payment of fees.

If you are a Leeds fan all of this must be humiliating and extremely concerning. But football supporters across the country should be equally horrified and equally concerned, because it could be your club next.

The number of people who have used the phrase ‘well, it’s only…’ when talking of the decline at the hands of incompetent owners of ‘smaller’ teams like Portsmouth and Wimbledon now need to wake up and smell the coffee.

Blackburn Rovers, West Ham and Coventry City are among a growing list of great clubs who have been grossly mismanaged as the wealth and excitement of the Premier League has disguised some of the more financially questionable activity in and around the game.

It is not only ‘small’ clubs’ who can fall victim to gross mismanagement. Bigger clubs can be hit just as hard, if not harder.  Ask Liverpool, who escaped the clutches of two Yankee cowboys by the skin of their teeth. And Leeds – they don’t come much bigger than Leeds.

In the halcyon days of the 60’s and 70’s under Don Revie they conquered all before them in England, and were a whisker away from becoming the champions of Europe too.

As recently as 1992 Leeds were League champions and they won the League Cup in 1996. They were Champions League semi finalists just over a decade ago.

The attendances at Elland Road average around 30,000 even in the Championship and they are genuinely a big club – but it hasn’t stopped them from becoming a laughing stock at the hands of a series of owners who are clearly not ‘fit and proper’ people to run a football club.

It is time that the ownership of our football clubs became an issue. It is time for the Football Association to actually do something worthwhile. And it is time for our politicians to intervene.

I get that football is a business now. But it is not beyond the wit of the powers that be to come up with a set of official rules and regulations that would prevent the further abuse of football ownership in this country. Maybe it is something Greg Dyke should tackle as part of his commission on English football?

Meanwhile poor old Leeds, once the scourge of English football, and hated by supporters up and down the land, await for the next instalment of what is turning out to be a never ending nightmare for a once mighty club. And the rest of us replace that hatred of Leeds with a far more insulting emotion –pity!