Why the failure to elect regional mayors is bad for business.

The coalition's regional policies have been quietly disastrous.

Amidst the headlines reporting the Coalition’s trouncing in the local elections, a significant policy aspect has gone less commented upon: the almost total failure of the introduction of directly elected mayors. On Thursday nine out of ten councils voted against the plan to install mayors in major cities, with just Bristol agreeing to the idea.

For David Cameron, who talked about constituting a “cabinet of mayors”, it is a personal failure, reminiscent of John Prescott’s ill-fated (and much-mocked by the Tories) experiment with regional government. But this is also a failure for the business community.

The introduction of powerful mayors was supposed to be a stimulus for economic development outside London. The mandate from a popular mayor, it was argued, would be able to aggregate powers and responsibilities in the same way that the London mayor has since 2000. When Livingstone was first elected in the capital, the role was little more than a figurehead. However assiduous lobbying by him and his successor Boris Johnson means the role, contrary to popular opinion, now controls multi-billion-pound budgets and huge responsibilities for transport, policing, housing, skills training and planning.

The idea of similarly powerful figures for major cities like Birmingham, Manchester and Leeds is one that had the potential to be a significant boost for economic growth in those areas. The force of a personal mandate batting solely for those areas raised the prospect of smarter leadership able to respond more directly to the problems of the regional economies.

And let’s be honest, any and all help is required, because it is undeniably bleak out there. The three per cent fall in construction output recorded in the first quarter of this year will have come largely from continuing declines in the regional economies. The Olympics, Crossrail, Thameslink and construction of new office towers like the Shard in the City have been keeping the London construction economy reasonably buoyant throughout the recession, notwithstanding a few wobbles. But other than a few bright spots, construction has largely shut down outside the south east, with house prices still falling. (Prices in the North-east are still 13 per cent lower than they were before the credit crunch four years ago, in Northern Ireland they are still a staggering 40 per cent lower than they were).

The Coalition’s policies designed to rebalance the economy between London and the rest have been, so far, quietly disastrous. Scrapping the Regional Development Agencies that had supported job creation schemes across the country for a decade, and a raft of other regeneration funds, took £7bn out of the regional economies. The much touted Regional Growth Fund that replaced this money is worth just £2bn, and as of September last year hadn’t actually handed out any money. If you add to this the limited impact of the (unfunded) Local Economic Partnerships supposed to replace the RDAs, and the fact that direct government construction spend is hugely weighted toward London and the South East, and its not hard to see why the regions are struggling.

The setting up of directly elected mayors was supposed to be one positive move to turn this depressing picture around. It now looks like that spark of light has been extinguished. Expectations for this afternoon’s Coalition re-launch are very limited.

Joey Gardiner is assistant editor at Building magazine.

Photograph: Getty Images

Joey Gardiner is assistant editor at Building magazine

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Theresa May’s stage-managed election campaign keeps the public at bay

Jeremy Corbyn’s approach may be chaotic, but at least it’s more authentic.

The worst part about running an election campaign for a politician? Having to meet the general public. Those ordinary folk can be a tricky lot, with their lack of regard for being on-message, and their pesky real-life concerns.

But it looks like Theresa May has decided to avoid this inconvenience altogether during this snap general election campaign, as it turns out her visit to Leeds last night was so stage-managed that she barely had to face the public.

Accusations have been whizzing around online that at a campaign event at the Shine building in Leeds, the Prime Minister spoke to a room full of guests invited by the party, rather than local people or people who work in the building’s office space.

The Telegraph’s Chris Hope tweeted a picture of the room in which May was addressing her audience yesterday evening a little before 7pm. He pointed out that, being in Leeds, she was in “Labour territory”:

But a few locals who spied this picture online claimed that the audience did not look like who you’d expect to see congregated at Shine – a grade II-listed Victorian school that has been renovated into a community project housing office space and meeting rooms.

“Ask why she didn’t meet any of the people at the business who work in that beautiful building. Everyone there was an invite-only Tory,” tweeted Rik Kendell, a Leeds-based developer and designer who says he works in the Shine building. “She didn’t arrive until we’d all left for the day. Everyone in the building past 6pm was invite-only . . . They seemed to seek out the most clinical corner for their PR photos. Such a beautiful building to work in.”

Other tweeters also found the snapshot jarring:

Shine’s founders have pointed out that they didn’t host or invite Theresa May – rather the party hired out the space for a private event: “All visitors pay for meeting space in Shine and we do not seek out, bid for, or otherwise host any political parties,” wrote managing director Dawn O'Keefe. The guestlist was not down to Shine, but to the Tory party.

The audience consisted of journalists and around 150 Tory activists, according to the Guardian. This was instead of employees from the 16 offices housed in the building. I have asked the Conservative Party for clarification of who was in the audience and whether it was invite-only and am awaiting its response.

Jeremy Corbyn accused May of “hiding from the public”, and local Labour MP Richard Burgon commented that, “like a medieval monarch, she simply briefly relocated her travelling court of admirers to town and then moved on without so much as a nod to the people she considers to be her lowly subjects”.

But it doesn’t look like the Tories’ painstaking stage-management is a fool-proof plan. Having uniform audiences of the party faithful on the campaign trail seems to be confusing the Prime Minister somewhat. During a visit to a (rather sparsely populated) factory in Clay Cross, Derbyshire, yesterday, she appeared to forget where exactly on the campaign trail she was:

The management of Corbyn’s campaign has also resulted in gaffes – but for opposite reasons. A slightly more chaotic approach has led to him facing the wrong way, with his back to the cameras.

Corbyn’s blunder is born out of his instinct to address the crowd rather than the cameras – May’s problem is the other way round. Both, however, seem far more comfortable talking to the party faithful, even if they are venturing out of safe seat territory.

Anoosh Chakelian is senior writer at the New Statesman.

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