North

The ‘Powerhouse’ isn’t just about the North

Northern powerhouse

It is very easy for us folk ‘up North’ to get carried away with the notion that re-balancing the UK economy means closing the North-South divide, with Manchester in the vanguard of securing the type of devolution deal that will hopefully be rolled out across the region, parochial politicians permitting.

However, the idea of ‘powerhouses’ and big, influential Combined Authorities, is not simply exercising the minds of Manchester, Liverpool, Leeds, Newcastle et al. Everywhere located this side of the Watford gap are beating a track to Whitehall and shouting ‘Me too.’

No more so is this the case than the city that in modern times had managed to claim, and lose, the title of undisputed ‘second city’ – Birmingham.

Aesthetically, it is not the easiest on the eye, Brum. Indeed, you could go as far as to say that she is as ugly as she has ever been, as the city currently boasts a backdrop that could be happily used by Hollywood film makers for movies set in a war torn location of the Middle East.

However, there is good, and positive, reason for that. Birmingham is experiencing a long overdue facelift. A wholesale regeneration of the place is happening that will create a £2 billion plus ‘paradise’ project that cannot help but breathe new life into the economy, the night time economy in particular.

Additionally, the investment that has been confirmed by HSBC, the crucial role Birmingham will have in delivering HS2 and the fact that its city region takes in a population of 4 million people signals that this is a sleeping giant that has well and truly been awoken.

Of course, like all modern UK cities, it faces challenges, none more so than the crushing austerity programme imposed on the city council by central government, that has seen exciting initiatives such as an iconic new library and community facility turned into an albatross around civic leader’s necks.

At some point I hope the chancellor recognises that great cities can only continue to thrive and grow if they are allowed to maintain a level of service provision and activity that is relevant to the 21st rather than the 19th Century. But more of that post- Osborne budget statement.

Nevertheless, despite these challenges, Birmingham has so much else going for it that it is difficult to imagine that it is not approaching a period of huge renaissance.

I have spent the past eighteen months going down and up the M6 meeting a good number of Brummie businesses, entrepreneurs and decision makers to know that these guys and gals mean business.

Talk about energy – it is incredible. Commitment – in abundance. Determination – as Ed might say – hell yeah!

Coupled with this vibrant business community, a pragmatic public sector leadership that is keen to engage with the new up and coming business leaders of the future, whilst maintaining a strong relationship with its traditional commercial sector, makes Birmingham more than a little bit interesting.

All of this leads me to one conclusion. A city with so much attitude needs a business club to match. Downtown Birmingham in Business? We launch there in September, and I can’t wait.

Why devolution will be more important on May 8th

Downtow Manifesto

We are now less than a month away before the country goes to the polls for a General Election that is heading for a very predictable stalemate.

A hung parliament seems almost inevitable, with opinion poll after opinion poll showing the two major parties neck and neck for months now.

I have long believed that the eventual outcome will see us in virtually the same place we are at now, with the Conservatives as the largest party, and the Liberal Democrats doing better than expected. The surge of support for the SNP in Scotland has done for any slim chance Labour had of forming a majority administration. What happens once all the backroom deals and horse trading have taken place is anyone’s guess, but another period of multi-party co-operation is certain.

Also certain is that the north of England will firmly reject the Tories, as will Scotland and Wales, making the political divide across Britain greater than ever.

As democracies go, the UK is the most centralised of any comparable governance structure in Europe, but the Scottish devolution debate has led to a George Osborne led devolution strategy that, thus far, has only really hit his own backyard of Manchester.

An election result that puts David Cameron back in number 10, but that leaves his party without any significant representation either from the north at Westminster or in the Town Halls of Liverpool, Leeds, Newcastle or Sheffield will simply add to the weight of argument for an acceleration of decentralisation and genuine devolved powers to city regions, and potentially county regions such as Lancashire too.

The price for such a shift in governance structures should be elected leaders, or elected mayors (the title shouldn’t much matter), because, quite rightly, no government should concede the sort of powers that Manchester will benefit from without strengthening the democratic accountability of those who will take those powers. There is also an urgent need to slim down and streamline existing local government structures.

As we argue in Downtown’s ‘Manifesto’ we are currently trying to deliver a 21st Century economy with 19th Century structures, and this has to change.

The discussion and debate as to what that change should be will begin in earnest on 8th May. Downtown is looking forward to being part of that important conversation.

More Evidence That the North-South Divide is Growing

North South Divide

There was little surprise with the news this week that for every one job created in the North since 2004, twelve have been created in the South, according to a Centre for Cities report that is summarised here.

The fact that this latest study covers the past decade also shows that neither the previous Labour government, with its push towards regionalism, nor the current coalition administration, have been able to reverse what is an unhealthy and unacceptable trend that has been part of the UK economic landscape for generations now.

The devolution programme that George Osborne has been driving through his ‘Northern Powerhouse’ initiative has not, of course, had a chance to prove whether it will be the key to finally solve this long-standing conundrum, but if the regions and cities across the north grasp the opportunities he is offering, then I have no doubt that more strategic planning and spending on transport, skills, training and economic development at a local level will contribute to a growth in city region jobs and wealth.

However, more radical proposals are necessary too, not least identifying new ways of supporting existing businesses, and as importantly encouraging start up’s.

The Northwest and Yorkshire is still way short of where it needs to be in terms of VAT registered businesses, and the ‘enterprise culture’ that successive governments have attempted to establish has not been delivered.

There are still too many public sector led ‘business support’ projects – I still shake my head in disbelief when I hear local government officers who wouldn’t know a balance sheet from the back end of a bus waxing lyrical about what business needs – and a range of financial incentives in place that actually favour larger companies who would have ample access to finance in the mainstream market anyway. The Regional Growth Fund is the most obvious culprit, but it is not on its own.

Our man in Manchester Michael Taylor has restated Downtown’s belief that we need a regional investment bank in his blog here and it would certainly be on the menu of change that is required if we are not to be talking about an even bigger North-South gap in 2025.

But a much bigger infrastructure spend than Osborne has announced, with house building and improving the regions motorway network at the centre of the plan; a drive within city regions to focus at least as much attention on growing our own talent as we do on inward investment; and a new range of genuine financial incentives for small companies who have ambitions to grow, with tax credits for those who take on more staff are just a few possibilities to be considered.

As we approach the General Election in May, Downtown will be agitating for change and suggesting as many new ideas as we can. Join the conversation and let me know what you think could begin to close the North-South economic gap.

End of year reflections…

Reflections Lan

The last twelve months has seen the economy slowly, if not surely, start to go in the right direction; business confidence returning; our mainstream national politicians continue to struggle to win back the trust and credibility of the voting public; Scotland remaining as part of the Union, but nationalists still pushing for separation; and on the back of that Scottish referendum a significant move towards devolution for England’s city regions.

Downtown celebrated its tenth anniversary and as ‘metro mayors’ and devolution has been an issue we have advocated for many a year, it was with some satisfaction that our decade in business coincided with this agenda being genuinely discussed and debated by political leaders from all parties.

Manchester has, once again, stolen a march on the rest of the North, with its ‘Devo Manc’ deal, but there is no reason why Lancashire can’t get its act together in the New Year and begin to map out a new governance structure for the county that will give us the new powers and additional resources that would surely be welcomed by even the most parochial of local politicians.

Despite a now tired campaign by some political leaders who still prefer to look backwards rather than to the future and are in their 99th year of calling for a split between the East of Lancashire and the rest of the county, the Manchester deal has woken most up to the fact that unity of purpose and scale is the only game in town.

West Lancashire’s flirtation with Liverpool, and the tiny fiefdoms Fylde and Chorley threatening possible UDI will surely be seen as what they are – a final hurrah from small time politicians who would be better suited to running a Parish Council.

One of few negatives in a year of many positives for Lancashire this year has been the sad and untimely reminder that at a senior political level we remain disconnected and poorly co-ordinated despite the fact that government is demanding strategic unity.

The work that Marketing Lancashire has undertaken under the leadership of Ruth Connor has demonstrated that entrepreneurial spirit, innovation and an ability to ignore the peripheral nonsense and just get on with it can lead to impressive results.

The business support initiative BOOST has been a real positive too, as has the growth not only in the traditional sectors of manufacturing, but also in the creative and digital arena, and the hospitality sector, where there has been significant investment in new build and refurbishment across the county.

I am optimistic that there will be more positives than negatives in the New Year, with a shake-up of the well run but poorly marketed Local Enterprise Partnership promised; the forging of closer links between the county’s previous warring politicians for the common good, and the private sector hopefully working more effectively together too as Downtown initiates a ‘network of networks’ for organisations to come together and offer businesses a more consistent voice.

Nonetheless, the public sector cuts agenda that has to be implemented will have a huge impact; there may be two General Elections not just one if the existing polls are to be believed; and Lancashire has yet to punch its weight sufficiently to be in George Osborne’s Devolution plan.

Whatever, the glass is most certainly half full. In 2015 Downtown will continue to discuss and debate these issues and more besides I’m sure. We will ruffle a few feathers, no doubt fall out with one or two people – but we will remain a force for good.

We are passionate about this county. We are passionate about the North of England. It is why we do what we do, making this the best business club in the region, the most relevant, the best connected and never afraid to speak our mind.

Have a fantastic Christmas, a prosperous New Year, and don’t do anything I wouldn’t do!

End of year reflections…

Reflections Liv

The last twelve months has seen the economy slowly, if not surely, start to go in the right direction; business confidence returning; our mainstream national politicians continue to struggle to win back the trust and credibility of the voting public; Scotland remaining as part of the Union, but nationalists still pushing for separation; and on the back of that Scottish referendum a significant move towards devolution for England’s city regions.

Downtown celebrated its tenth anniversary and as ‘metro mayors’ and devolution has been an issue we have advocated for many a year, it was with some satisfaction that our decade in business coincided with this agenda being genuinely discussed and debated by political leaders from all parties.

Manchester has, once again, stolen a march on the rest of the North, with its ‘Devo Manc’ deal, but there is no reason why Liverpool can’t get its act together in the New Year and begin to map out a new governance structure for the city region that will give us the new powers and additional resources that would surely be welcomed by even the most parochial of local politicians….or will they?

The one negative in a year of many positives for Liverpool this year has been the sad and untimely reminder that at a senior political level we remain disconnected and poorly co-ordinated despite the fact that all six local authorities are Labour controlled.

From the debacle over what to call the newly formed Combined Authority through to the decision to have not one but two campaigns operating to try and secure high speed rail to the city, our civic leaders have demonstrated a unique ability to shoot themselves – and our city region in the process – not so much in the foot but through the head.

On the back of much heralded events such as the Global Enterprise Congress and the International Festival for Business, not forgetting the ‘Giants’, Liverpool is in a fantastic place to continue the momentum it has developed since hosting the European Capital of Culture in 2008.

A wonderful retail, leisure and hospitality offer, a regenerated city centre, a BID company that is starting to make a lot of sense, an Arena that will soon be complimented by a conference centre and the most spectacular of waterfronts are the ingredients that help make a great city.

Through its Linking Liverpool campaign Mersey Travel have proved that we really are ‘better together’, and the Local Enterprise Partnership have been doing some good, ‘joined up’ things under the radar too. But such projects are the exception rather than the rule, and for the private sector it is all getting a little tiresome. News that the Marketing function that has been managed at a city region level is to possibly be broken up again simply adds to the frustration.

In 2015 I would plead with the political leaders of all six councils to demonstrate some maturity and Leadership and take advantage of the wonderful landscape that has been created during the past ten years. It is, quite literally, all to play for with a more buoyant, confident business community, Westminster politicians wanting to devolve more powers to the city region, and Liverpool able to boast being the best visited city in the UK outside of London and Edinburgh, and preparing to host IFB 16.

But, as we have learned to our cost over many years now, there is every possibility that Liverpool will look the gift horse in the mouth, and miss a once in a lifetime opportunity to secure its place as a central player in the new Northern Powerhouse that is being established, instead simply be an envious observer.

At the Liverpool city level I am optimistic that there will be more positives than negatives in the New Year, with another visit scheduled for MIPIM, the Liverpool in London project continuing to grow, and the city, ironically given our more local difficulties, forging closer links with Manchester for the common good.

Nonetheless, the cuts agenda that has to be implemented will have a huge impact; the thorny issue of business support is still to be sorted; and I have an increasing fear that the once private sector led, independent Liverpool Vision will find itself being consumed into and by the council, thus losing the energy, innovation and entrepreneurial spirit that has made it such a successful organisation since the mid 1990’s. It may not get everything right, but Vision is still seen by business leaders as THE business- friendly arm of the burgeoning public sector, and to diminish its ability to engage in similar fashion in the future would be a big mistake.

I have heard it said that Visions move into shared space with the council will result in local government staff leaning a different culture that will enhance performance. I am not convinced that the reality won’t be Vision staff having the life sucked out of them. I hope I am wrong.

Whatever, the glass is most certainly half full. In 2015 Downtown will continue to discuss and debate these issues and more besides I’m sure. We will ruffle a few feathers, no doubt fall out with one or two people – but we will remain a force for good.

We are passionate about this city. We are passionate about the North of England.  It is why we do what we do, making this the best business club in the city, the most relevant, the best connected and never afraid to speak our mind.

Have a fantastic Christmas, a prosperous New Year, and don’t do anything I wouldn’t do!