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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PMQs review: David Cameron's call for Jeremy Corbyn to resign will only help him

 "For heaven's sake man, go!" The PM's appeal was sincere but the Labour leader can turn it to his advantage. 

It is traditionally the leader of the opposition who calls for the prime minister to resign. At today's PMQs, in another extraordinary moment, we witnessed the reverse. "For heaven's sake man, go!" David Cameron cried at Jeremy Corbyn, echoing Oliver Cromwell's address to the rump parliament ("in the name of God, go!") and Leo Amery's appeal to Neville Chamberlain in the 1940 Norway debate.

While it was in his "party's interests" for Corbyn to "sit there", Cameron said, it wasn't "in the national interest". Some will regard this as a cunning ruse to strengthen the Labour leader's position. But to my ear, Cameron sounded entirely sincere as he spoke. With just two months left as prime minister, he has little interest in seeking political advantage. But as he continues to defy appeals from his own side to resign, the addition of a Tory PM to the cause will only aid Corbyn's standing among members. 

After rumours that Labour MPs would boycott the session, leaving a sea of empty benches behind Corbyn, they instead treated their leader with contemptuous silence. Corbyn was inevitably jeered by Tory MPs when he observed that Cameron only had "two months left" to leave a "a One Nation legacy" (demanding "the scrapping of the bedroom tax, the banning of zero-hours contracts, and the cancelling of cuts to Universal Credit"). Cameron conceded that "we need do more to tackle poverty" before deriding Corbyn's EU referendum campaigning. "I know the Hon. Gentleman says he put his back into it. All I can say is I'd hate to see it when he's not trying." 

The other notable moment came when Theresa May supporter Alan Duncan contrasted Angela Merkel with "Silvio Borisconi" (a Hansard first). Cameron replied: "Neither of the people he's talking about are candidates in this election, it's an election I will stay out of ... I was given lots of advice, one of them was not to go to a party with Silvio Berlusconi and I'm glad I took it." Given the recent fate of those who personally mocked Johnson during the referendum campaign, Duncan's jibe may not do May's cause much more help now. 

George Eaton is political editor of the New Statesman.