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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To heal Britain’s cracks, it’s time for us northern graduates in London to return home

Isn’t it time for people like me, who’ve had privileges and experiences not open to everyone, to start heading back to our local communities, rather than reinforcing London’s suffocating dominance?

I’m from Warrington. The least cultured town in the UK. My town.

I moved to London almost exactly five years ago. Not because I particularly wanted to. Not because I wanted to depart the raucous northern town that I still call home. Because it was my only choice, really. I’d done my stint in the call centres and had some fun. But that couldn’t, surely, be my lot?

After university, I’d already started feeling a little weird and out of place back in Wazza. There were fewer and fewer people who didn’t look at me like I’d just fallen off a futuristic space flight that’d given me a different accent and lofty ideals.

Of course, that’s because most people like me had already skipped town without looking back and were all in the capital trying to strike beyond the ordinary.

The young, the cities, the metropolitan elite are still reeling after last week’s vote and wondering how people, half of our people, have got it so horribly wrong. We’re different, divided, done for.  

One thing I’ve clung onto while I’ve been in London is the fact that I’m from Warrington and proud. It might not be a cultured town, but it’s my town.

But I wasn’t proud of the outcome of the EU referendum that saw my town vote 54.3 per cent to 45.7 per cent to leave.

To be fair, even in my new “home” borough of Hackney, east London, the place with the third-largest Remain vote, one in five people voted for Brexit.

Yes, in one of London’s hottest and most international neighbourhoods, there are quite a lot of people who don’t feel like they’re being taken along to the discotheque.

Perversely, it was the poorest places in the UK that voted in largest numbers to leave the EU – that’s the same EU that provides big chunks of funding to try to save those local economies from ruin.

In many ways, of course, I understand the feelings of those people back in the place I still sometimes think of as home.

Compared to many suffering places in the UK, Warrington is a “boom town” and was one of the only places that grew during the last recession.

It’s a hub for telecoms and logistics companies, because, ironically, its good transport links make it an easy place to leave.

But there are many people who aren’t “living the dream” and, like anywhere else, they aren’t immune from the newspaper headlines that penetrate our brains with stories of strivers and scroungers.

Warrington is one of the whitest places in the UK, and I’m sure, to many locals, that means those immigrants are only a few towns away. There’s already a Polski sklep or two. And a few foreign taxi drivers. Those enterprising bastards.

We have never seriously addressed the economic imbalance in our economy. The gaping north-south divide. The post-industrial problem that politicians in Westminster have handily ignored, allowing the gap to be filled by those who find it quick and easy to blame immigrants.

When schemes like HS2, which is plotted to smash right through the place I grew up, are pushed against all of the evidence, instead of a much-needed, intercity Leeds to Liverpool investment to replace the two-carriage hourly service, it’s like positively sticking two fingers up to the north.

But I am also a big problem. People like me, who get educated and quickly head off to London when things aren’t going our way. We invested in ourselves, sometimes at state expense, and never really thought about putting that back into the places where we grew up.

There weren’t the right opportunities back home and that still stands. But, rather than doing something about that, people like me lazily joined the gravy train for London and now we’re surprised we feel more kinship with a 20-something from Norway than we do with someone who we used to knock on for when we should have been at school.

That’s not to suggest that our experiences in the capital – or mine at least – haven’t made us a thousand, million times better. 

I’ve met people who’ve lived lives I would never have known and I’m a profoundly better person for having the chance to meet people who aren’t just like me. But to take that view back home is increasingly like translating a message to someone from an entirely different world.

“You know, it’s only because you live in a country like this that a woman like you is allowed to even say things like that,” assured one of my dad’s friends down at the British Legion after we’d had a beer, and an argument or two.

Too right, pal. We live in what we all like to think is an open and tolerant and progressive society. And you’re now saying I shouldn’t use that right to call you out for your ignorance?

We’re both Warringtonians, English, British and European but I can increasingly find more agreement with a woman from Senegal who’s working in tech than I can with you.

It’s absolutely no secret that London has drained brains from the rest of the country, and even the rest of the world, to power its knowledge economy.

It’s a special place, but we have to see that there are many people clamouring for jobs they are far too qualified for, with no hope of saving for a home of their own, at the expense of the places they call home.

It’s been suggested in the past that London becomes its own city-state, now Londoners are petitioning to leave the UK.

But isn’t it time for people like me, who’ve had privileges and experiences not open to everyone, to start heading back to our local communities, rather than reinforcing London’s suffocating dominance?

We can expect local governments to do more with less, but when will we accept we need people power back in places like Warrington if we want to change the story to one of hope?

If this sounds like a patronising plan to parachute the north London intelligentsia into northern communities to ensure they don’t make the same mistake twice... Get fucked, as they say in Warrington.

It was Warrington that raised me. It’s time I gave something back.

Kirsty Styles is editor of the New Statesman's B2B tech site, NS Tech.