With less than 100 days to go until the general election, and with most polls putting little between the two main parties, the next few months will undoubtedly be witness to highly emotive and passionately fought election campaigns. Indisputably a key election issue, and potential vote winner, will revolve around the uneven geographical distribution of growth within the UK and in particular the ever-present north / south divide. Indeed, this is already a subject on the agenda of politicians and the electorate, as seen in George Osborne’s 2014 speech, ‘We need a northern powerhouse’, when the Chancellor stressed the need to address this growing polarisation.
Last week Iceni Engagement attended a Centre for Cities event which coincided with the launch of the think-tank’s, annual Cities Outlook report. The panel which consisted of: Greg Clark MP (Minister for Universities, Science and Cities); George Ferguson (Mayor of Bristol); and, Kersten England (Chief Executive at City of York Council), discussed the findings of this report.
Over the past ten years the UK has witnessed some substantial changes (whether good or bad is up for debate), under two governments comprising red, blue and yellow. Such change does not translate to bridging the gap between the differing performances of cities in the north and south. The event highlighted some stark facts – although interestingly, little was made of how much the statistics have been skewed by London:
- The populations of cities in the south are expanding at twice the rate of their northern counterparts;
- Northern cities have increased their number of businesses by only 14 per cent, compared to an increase of almost 27 per cent in southern cities; and,
- For every 12 new jobs created in southern cities, only one was generated everywhere else.
Somewhat unsurprisingly, Mr Clark was quick to play down these statistics and play up the Coalition’s constructive impacts. He emphasised that pre 2010 job creation figures were severely unbalanced, suggesting that since the Conservatives and Liberal Democrats came to power, 72% of jobs have been created outside of London. The performance of Local Enterprise Partnerships (LEP’s) were also highlighted by Mr Clark as benefiting economic growth and job creation in the north, with Greater Manchester used as an example of an LEP that has performed particularly well.
Kersten England gave an interesting and comprehensive insight into how a mid-sized, northern city has performed over the past decade. York was in a state of fragility during the years 2008 and 2009, due mostly to its heavy dependence on public sector employment. Ms England believes that through positioning York as a city of many dimensions, with functional economic geographies and good intercity partnerships (particularly with Peterborough), York has become an effective northern city. It was heavily emphasised, however, that greater autonomy, inclusive of fiscal devolution and an increased control of business rates, will ensure York becomes a city that can really demonstrate its capabilities.
Mayor of Bristol, George Ferguson aligned himself with Ms England’s arguments and did not reign in his obvious frustration with the current status quo. Mr Ferguson believes a lot of time is wasted with multiple government departments exercising power over local authorities, he stressed that if the power was devolved, quicker decisions would be made and faster solutions found. Ferguson was keen to emphasise the importance of investing in homes, referring to it as a ‘no-brainer’ in generating and maintaining a stable economy.
The event’s overall message can be summarised as follows: in order for cities to continue their successes (as in the south east) or rise up as considerable punching partners (as with the northern cities), freedom and flexibility needs to become part and parcel of the city.
Devolution was a key issue of 2014, and the extent of the electorate’s participation in debate and discussion surrounding this issue should not simply be disregarded by any of the political parties, particularly in light of the Cities Outlook report. The report does not just reconfirm the existence of a severe north / south divide, it suggests the past ten years has been both witness to, and an active participant of, it’s widening. Decentralisation is very much here to stay on the agenda, the public will call for answers and solutions. Perhaps the next government, be that of whatever form and colour(s), should turn again to the largely well received 2012 report ‘No Stone Unturned’ by Conservative peer, Lord Heseltine, which championed localism and advocated the empowerment of local economies.
