Who needs time travel when you have enterprise?

The economy is back to where it was in 2006 - where do we go from here?

It’s strange to be waking up in summer 2012 to find ourselves in an economy that is no bigger than it was in 2006. So how can we travel "back to the future" and get the economy back on track? In the absence of a plutonium-powered car, the vehicle to get us back to economic growth is enterprise.

Centre for Cities’ new report, "Open for Business", shows how important enterprise is to a city economy. The research, sponsored by ICAEW, takes a detailed look at the make-up of city economies to establish what makes a city economically successful.

It finds there are two prongs to private sector economic growth in our cities – the ability to attract businesses from elsewhere (other UK cities and abroad) and the ability to "grow your own’. Our strongest cities are those that have been able to do both.

A detailed breakdown of the business bases of UK cities reinforces this point. The majority of the UK’s strongest cities are those that have a large proportion of branch businesses and high levels of enterprise:

Of course, being open to external business also means that in the short term some cities may be even more exposed to turbulence in the global economy. The Eurozone crisis may impact upon businesses headquartered in the Eurozone, potentially leading to consolidation of businesses and knock-on job losses. Cities like Coventry and Swindon, with a higher proportion of Eurozone-owned businesses, will need to focus on policies that can support domestic enterprise to help offset any potential fallout from troubles across the Channel.

Overall it is clear from the research that cities with a mix of home grown businesses and branches are best placed to weather any storms heading our way. But what does this mean for policy?

There has been no shortage of enterprise initiatives from previous Governments, ranging from Thatcher's Enterprise Allowance Scheme to New Labour's Local Enterprise Growth Initiative. The recently launched Start-up Loans are the latest addition to the list. But the impact that these schemes have had upon levels of enterprise is difficult to quantify based on existing evidence. So what can the government and cities do to hit the accelerate button on enterprise at a time of economic instability?

One thing that can make an important difference is for national government and cities to continue investing in the core themes that make a big difference to business. This means improving transport and skills and making the planning process more responsive to business needs.

Cities also need to respond to the specific challenges facing their local economies. Our work shows that open, entrepreneurial cities are best placed to grow, and cities should aim for this mix of home-grown business and receptive to new ideas and people.

Depending on the city’s specialisms and where it needs to improve, this could mean implementing policies from support for start-ups or existing companies to ensuring the city is working with UKTI and others to showcase where there are opportunities for external investment.

It will take time to get back to where our economy should be. But by getting enterprise policy right today, cities can help to steer the wider UK out of economic underperformance and into growth.

TechHub, a start-up shared space in Old Street, West London. Photograph: Getty Images

Alexandra Jones is the director of the Centre for Cities

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As children face a mental health crisis, should schools take the lead in fighting it?

There is a crisis affecting the mental health of England's young people. As Children’s Mental Health Week gets underway, the government must put schools at the heart of mental health services.

Three children in every classroom have a diagnosable mental health condition. Half of these are conduct (behavioural) disorders, while one third are emotional disorders such as stress, anxiety and depression, which often becomes outwardly apparent through self-harm. There was a staggering 52 per cent jump in hospital admissions for children and young people who had self-harmed between 2009 and 2015.

Schools and teachers have consistently reported the scale of the problem since 2009. Last year, over half of teachers reported that more of their pupils experience mental health problems than in the past. But teachers also consistently report how ill-equipped they feel to meet pupils’ mental health needs, and often cite a lack of training, expertise and support from NHS services.

Part of the reason for the increased pressure on schools is that there are now fewer ‘early intervention’ and low-level mental health services based in the community. Cuts to local authority budgets since 2010 have resulted in significant erosion of these services, despite strong evidence of their effectiveness in reducing escalation and crises further down the line. According to the parliamentary Health Select Committee, this has led specialist child and adolescent mental health services (CAMHS) to become inundated with more severe and complex cases that have been allowed to escalate through a lack of early treatment.

This matters.  Allowing the mental health of children and young people to deteriorate to this extent will prevent us from creating a healthy, happy, economically productive society.

So what part should schools play in government’s response?

During the last parliament, the government played down the role of schools in meeting pupils’ mental health and wider emotional needs. Michael Gove, during his tenure as education secretary, made a conscious decision to move away from the Every Child Matters framework, which obliged local authorities to work with schools and health services to improve the ‘physical and mental wellbeing’ of all children in their local area. He argued that schools policy needed to focus more heavily on academic outcomes and educational rigour, and references to children’s wellbeing were removed from the Ofsted framework. This created a false dichotomy between academic standards and pupils’ mental health - why can’t a school promote both?

But since Gove was replaced by Nicky Morgan, a new window of opportunity for meaningful reform has opened. Following her appointment in 2014, Morgan has called on schools to promote resilience and protect pupil’s mental health when problems first arise. The Department for Education has made tentative steps in this direction, publishing advice on counselling in schools and announcing a new pilot scheme to link schools with NHS services.

However, much more needs to be done.

The only way to break the pressures on both mental health services and schools is to reinvest in early intervention services of the kind that local authorities and the NHS have been forced to cut over the last few years. But this time around there should be one major difference – there is a compelling case that services should be based largely inside schools.

There are strong arguments for why schools are best placed to provide mental health services. Schools see young people more than any other service, giving them a unique ability to get to hard-to-reach children and young people and build meaningful relationships with them over time. Studies have shown that children and young people largely prefer to see a counsellor in school rather than in an outside environment, and attendance rates for school-based services such as those provided by the charity Place2Be are often better than those for CAMHS. Young people have reported that for low-level conditions such as stress and anxiety, a clinical NHS setting can sometimes be daunting and off-putting.

There are already examples of innovative schools which combine mental health and wellbeing provision with a strong academic curriculum. For example, School 21 in East London dedicates 2.5 hours per week to wellbeing, creating opportunities for pastoral staff to identify problems as early as possible.

There is a huge opportunity for Nicky Morgan – as well as Labour’s shadow mental health minister Luciana Berger – to call for schools to be placed at the heart of a reconstructed early intervention infrastructure.

This will, though, require a huge cultural shift. Politicians, policymakers, commissioners and school leaders must be brave enough to make the leap in to reimagining schools as providers of health as well as education services.

Craig Thorley is a research fellow at IPPR, where he leads work on mental health. Follow him @craigjthorley