Give cities more power over their destiny

The new City Deals are a step in the right direction

Throughout July and August all eyes will be on London. Whether it is the unveiling of the Shard or the opening ceremony of the Olympic Games, London is demanding the attention of the nation. It is therefore no surprise that last week’s announcement of new powers for England’s eight cities was met with little fanfare. Yet, these "City Deals" represent the most significant devolution of power from Whitehall in decades and are deserving of more attention. This is not just the summer of the capital; it is very much the summer of the cities.

England’s eight core cities and their surrounding areas are forecast to add £71bn to the economy over the next decade. But evidence suggests that they have the potential to achieve much more. That is why the City Deals, that include transport infrastructure funds, new investment for SMEs, and apprentice hubs to support NEETs, will play a crucial role in the nation’s future growth.

The first clear indication of a new relationship between central government and England’s cities was the creation of a Minister for Cities last year. Greg Clark was appointed to this role, with further support from Nick Clegg and ministers and officials in BIS, CLG and HMT. The Deals are the result of an almost year-long negotiation between Clark and his team in the Cabinet Office, Whitehall and the core cities.

Arguably of most significance are the new transport infrastructure funds. They have a combined value of over £5bn and should have significant impact on the ground. Transport has been the policy area that the Mayor of London has had most influence over; the congestion charge, tube upgrades, a bicycle hire scheme and even a cable car over the Thames, have been the result. Getting around the capital is now easier and the same could soon be true for England’s core city-regions.

Better connections will support economic growth. Leeds City Region, for example, hopes that its £1bn West Yorkshire "‘plus" Transport Fund will create a 2 per cent increase in the region’s economic output and 20,000 extra jobs. Strategic investment in new stations, roads and public transport networks could have a dramatic impact on the daily commute.

People’s daily lives and commutes do not reflect arbitrary council boundaries, so another positive to have emerged from the Deals has been councils which are increasingly willing to work together to make investments. Greater Manchester’s councils combined strategy for a new Metrolink is a demonstration of the benefits of this approach. Such collaborative governance arrangements will prevent the jam-spreading of funds that can harm local areas.

The next step for the core cities will be to ensure they deliver on the ground. There is more work for central government to do as well. Greg Clark has said that this is just round one of City Deals. 142 upper-tier councils don’t have a Deal. A devolution bill could package up some of the powers in the City Deals allowing all areas to invest for local growth.

Greg Clark, the minister in charge of City Deals. Photograph: Getty Images

Joe is a senior researcher at the New Local Government Network

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Gang of Four’s David Owen says Labour should “proudly and coherently” work with the SNP

The former Labour politician and SDP co-founder tells his old party to “face up to reality” and agree to ally with the SNP.

We don’t have an effective opposition. The question is how to make it effective. I think they should start to discuss with a view to deciding at a conference this summer on its policies. It’s just got to stop for a moment, have a pause on personalities. They’re going to have to return to personalities, they have to have a new leader. But at the moment, the issue should be: let’s get the policies right. I’m sure there are areas in which people want to see changes, but they’re obviously completely incoherent over Europe, so just let that incoherence lie.

If Labour party MPs can’t start to talk about why young people were attracted to Jeremy Corbyn, they won't find the solution. Corbyn – you can trash him like the right-wing press do every day, but they've always done that with every form of Labour leader we've ever had. I’m not defending Corbyn, I don’t think he is the right person to be leader of the Labour party and become Prime Minister.

They've got to widen their base, and they've got to widen it in an election. That doesn't stop the party having more values. The Labour party instinctively, like the country, needs to move a bit more to the left. I'm not afraid of talking more about socialism and social values. I think that would be matching the mood of the country.

Clement Attlee and the Labour party came in in 1945, and shocked everybody, including all the pundits and newspapers – they responded to a mood in the country that wanted a difference. I believe there is a mood in the country that wants a difference. They don’t want recycled Blairism.

You’ve just got to face up to reality. The fundamental thing is, where we slipped up in [the last] election, is that we were not able to answer the question – when they were ravaged and savaged about the SNP – Ed Miliband should've lost his cool. All he said during the attack about working with the SNP was that it ain't going to happen. Well, it obviously was going to happen.

What they needed to say is proudly and completely coherently: if the electorate send a Parliament back which has the SNP in substantial numbers, it is perfectly legitimate for the Labour party to work with them. Health policy – a pretty good step would be to take what’s happening in Scotland and more or less mirror it.

That is the nature of the beast, which is democracy. Even without changing the system of voting, we now have multi-parties, whether we like it or not. We were told the route through was not to create a Social Democratic Party alongside the Liberals, you had to merge with them and that there was no room for more than three political parties in Britain. Well, it’s absolute nonsense. We now have seven, you could argue. We have to live with that reality. You have to be ready to talk to them. You won’t agree with them on separation but you can agree on many other areas, or you certainly should be trying.

I think it’s asking a hell of a lot to be leader of a party, asking to be Prime Minister, when you've never performed yourself in government, you've never held a serious job anywhere else. It's a very, very big thing. He didn't want to be leader of the party, he didn't expect to be leader of the party, he stood on the basis that he was the person they all turned to on the left, and he did it, and he surprised us all. The fact that he won should be a serious message to us. The reason he won is because everybody was totally sick and fed up with the other people. We've got to face up to the fact that this has happened now twice. Is the Labour party going to go on churning out a sort of mollified form of Blairism?

David Owen is an independent social democratic peer and co-founder of the SDP.

As told to Anoosh Chakelian.

Lord Owen was Foreign Secretary 1977-79, a founder-member of the SDP and is now a crossbench peer.

This article first appeared in the 30 March 2017 issue of the New Statesman, Wanted: an opposition