The dangers of ignoring this recession's bitter regional edge

The north of England and many of the other English regions are enduring a daily squeeze that is seld

As we all know, northerners are made of stern stuff and historically have seized any opportunities thrown their way. Nonetheless, with regards to recent economic trends north of The Wash, we all have ample cause to feel miserable.

Consider recent form: that the north-east and Yorkshire and Humber were the top regions in the country for increases in unemployment in the last quarter. Unemployment in the whole north now stands at 9.45 per cent (compared to a national average of 8.2 per cent) a rate the north has not had to endure since 1995. Manufacturing, a sector with more clout in the north of England than the rest of the UK, shrank by 0.6 per cent in from June to August. Worse, recent business surveys suggest that while the private sector in the north is recovering from a difficult business environment over the summer, the flow of new orders coming in to northern businesses looks precarious.

The north of England and many of the other English regions are, day in day out, enduring a daily squeeze that is seldom acknowledged. Whitehall's apparent ill-regard to northern concerns was exemplified by last week's public sector unemployment figures. Latest research shows that in one year, 121,000 public sector jobs have been lost up north while 32,000 have been gained down south. This sits uneasily with the government's apparent aim to make cuts as "fair" as possible. As the accountancy firm Begbies Traynor reported recently, companies in the north-east, north-west and Yorkshire are being hit hardest by public sector retrenchment, with many small and medium sized enterprises disproportionately squeezed. Likewise, large companies like Boots have noted the stark impact cuts are having on their sales and consumer confidence in the north. We expect the labour market numbers, issued this Thursday, to reaffirm this glum picture.

Were it needed, this is all yet further proof that this great recession has a bitter regional edge. Through recent events in Europe, we have seen how one country's economic situation and performance can drastically differ from others. So it is in the English regions. Without a greater focus on spatial rebalancing and the significant decentralisation of central government functions away from Whitehall, both employment and demographic patterns are unlikely to shift. This matters to everyone: recent research from the OECD confirms that it is in a country's "lagging" regions (which make up 56 per cent of UK output) that the economic future lies. We must get growth in these regions in order to achieve growth and prosperity nationally. Positive growth figures in the north-west and Yorkshire in recent days are to be welcomed, but overall, there is still much with which to be greatly concerned.

Though we talk of a "UK economy" it is, largely, a falsehood. We need a more a nuanced understanding in our discourse as to how this great calamity is affecting the ordinary lives of those outside the greater south-east. Many of the wider iniquities that exist are seldom discussed. We in the north want to get out of this hole ourselves. To that end, IPPR North's Northern Economic Futures Commission is currently considering a wide array of proposals to kick start northern growth and make the north one of UK PLC's great success stories. But so long as we approach England and Britain as one economic bloc, with one set of economic priorities, we can never succeed -- it's time for Whitehall to recognise that.

Lewis Goodall is Researcher at IPPR North

 

Getty Images.
Show Hide image

The problems with ending encryption to fight terrorism

Forcing tech firms to create a "backdoor" to access messages would be a gift to cyber-hackers.

The UK has endured its worst terrorist atrocity since 7 July 2005 and the threat level has been raised to "critical" for the first time in a decade. Though election campaigning has been suspended, the debate over potential new powers has already begun.

Today's Sun reports that the Conservatives will seek to force technology companies to hand over encrypted messages to the police and security services. The new Technical Capability Notices were proposed by Amber Rudd following the Westminster terrorist attack and a month-long consultation closed last week. A Tory minister told the Sun: "We will do this as soon as we can after the election, as long as we get back in. The level of threat clearly proves there is no more time to waste now. The social media companies have been laughing in our faces for too long."

Put that way, the plan sounds reasonable (orders would be approved by the home secretary and a senior judge). But there are irrefutable problems. Encryption means tech firms such as WhatsApp and Apple can't simply "hand over" suspect messages - they can't access them at all. The technology is designed precisely so that conversations are genuinely private (unless a suspect's device is obtained or hacked into). Were companies to create an encryption "backdoor", as the government proposes, they would also create new opportunities for criminals and cyberhackers (as in the case of the recent NHS attack).

Ian Levy, the technical director of the National Cyber Security, told the New Statesman's Will Dunn earlier this year: "Nobody in this organisation or our parent organisation will ever ask for a 'back door' in a large-scale encryption system, because it's dumb."

But there is a more profound problem: once created, a technology cannot be uninvented. Should large tech firms end encryption, terrorists will merely turn to other, lesser-known platforms. The only means of barring UK citizens from using the service would be a Chinese-style "great firewall", cutting Britain off from the rest of the internet. In 2015, before entering the cabinet, Brexit Secretary David Davis warned of ending encryption: "Such a move would have had devastating consequences for all financial transactions and online commerce, not to mention the security of all personal data. Its consequences for the City do not bear thinking about."

Labour's manifesto pledged to "provide our security agencies with the resources and the powers they need to protect our country and keep us all safe." But added: "We will also ensure that such powers do not weaken our individual rights or civil liberties". The Liberal Democrats have vowed to "oppose Conservative attempts to undermine encryption."

But with a large Conservative majority inevitable, according to polls, ministers will be confident of winning parliamentary support for the plan. Only a rebellion led by Davis-esque liberals is likely to stop them.

George Eaton is political editor of the New Statesman.

0800 7318496