While the Government delays, cities are taking radical steps to cut carbon

Cities are where the biggest experiments can take place; look to them to see the future of the UK.

Our cities are the R&D facility for the country. From 4G rollout to community energy, they let us experiment with what’s possible. This is useful, because we’ve just agreed to change everything. The recent Energy Bill accepts how inevitable a low carbon future is for the UK. It also guarantees the money to deliver it on time – all we have to do now is actually do it.

Of course, some don’t seem to realise this. Some ministers hang desperately onto a gas over renewables strategy, like a hipster to a mini disc player, convinced its time will come again. No evidence will dissuade them back into reality. This wouldn’t be a problem, but the indecision and delay they introduce makes it harder to ensure that the UK will get the maximum benefit from a low carbon future – to own the patents, build the factories and get exporting to the others following behind. Luckily, we don’t need to wait for national government to get its story straight, because our cities are set to leap ahead.

A city has traditionally been something that demands a lot from a country and gives back money and jobs. London has around the same working population as Scotland, Wales and Northern Ireland put together, and so it soaks up more electricity than any of those nations. Without freight coming in from the rest of the world, it would run out of food in four days. Sure, cities pay for this stuff, but it’s the rest of the country that has put up with its infrastructure: the power stations, water reservoirs, and industrial waste facilities all put into the countryside to serve the cities. However, this is changing.

The density of the population and the buildings make for a unique testing ground for the new kind of infrastructure we’re developing - the low carbon, resource efficient approaches to heating and power generation, transport and waste management. They all work best if done where the demand is greatest, and that means at the city scale.

This is what Green Alliance’s new report argues – cities are morphing themselves and what they do ahead of the rest of the country and they are well placed to get the economic reward for doing so. The recent city deals process, initiated by the Cabinet Office transfers new powers, control over funding and approaches to financing to the cities. The first eight cities have thought about what this means to reverse employment trends and attract inward investment which is why most have used their deals to grow their low carbon economy.

Newcastle is going for £0.5bn of investment in offshore energy, bringing eight thousand jobs. Liverpool plans to accelerate £100m in wind and offshore energy, bringing three thousand jobs to the area. Manchester is using its ambitious emissions reduction targets to attract an additional £1.4bn into the UK’s economy and Birmingham has secured a £3m injection to its housing retrofit programme.

Many of these projects, which are central to how our country will work in the future, are already real in the cities. London will have 1,300 different electric vehicle charging points by next year and, in the capital, a Prius seems a more common sight that an Escort. Islington is rolling out council-owned Combined Heat and Power to 700 homes, a power station set up not miles away, but amongst the people that will benefit, protecting them from soaring bills. Meanwhile, Birmingham council is doing the same, trying to reduce the energy it imports every year at a cost of £1.5bn and replace it with energy they make themselves. In the centre of the city, on Broad Street, Birmingham’s CHP serves the ICC, the town hall, the new library and local hotels and theatres. Nottingham too, aims to double its district heating network in five years.

This is where the future is happening. It proves that green infrastructure is the model that keeps costs down for the public and profits up for businesses. All we need now is for Westminster government to realise this. As it plans a big push on renewing our national infrastructure, it should learn from and work with our cities, who are demonstrating that a modern, sustainable approach, employing ideas that reduce energy, reuse waste and simplify our public transport, will bring the biggest rewards.

Photograph: Getty Images

Alastair Harper is Head of Politics for Green Alliance UK

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Why relations between Theresa May and Philip Hammond became tense so quickly

The political imperative of controlling immigration is clashing with the economic imperative of maintaining growth. 

There is no relationship in government more important than that between the prime minister and the chancellor. When Theresa May entered No.10, she chose Philip Hammond, a dependable technocrat and long-standing ally who she had known since Oxford University. 

But relations between the pair have proved far tenser than anticipated. On Wednesday, Hammond suggested that students could be excluded from the net migration target. "We are having conversations within government about the most appropriate way to record and address net migration," he told the Treasury select committee. The Chancellor, in common with many others, has long regarded the inclusion of students as an obstacle to growth. 

The following day Hammond was publicly rebuked by No.10. "Our position on who is included in the figures has not changed, and we are categorically not reviewing whether or not students are included," a spokesman said (as I reported in advance, May believes that the public would see this move as "a fix"). 

This is not the only clash in May's first 100 days. Hammond was aggrieved by the Prime Minister's criticisms of loose monetary policy (which forced No.10 to state that it "respects the independence of the Bank of England") and is resisting tougher controls on foreign takeovers. The Chancellor has also struck a more sceptical tone on the UK's economic prospects. "It is clear to me that the British people did not vote on June 23 to become poorer," he declared in his conference speech, a signal that national prosperity must come before control of immigration. 

May and Hammond's relationship was never going to match the remarkable bond between David Cameron and George Osborne. But should relations worsen it risks becoming closer to that beween Gordon Brown and Alistair Darling. Like Hammond, Darling entered the Treasury as a calm technocrat and an ally of the PM. But the extraordinary circumstances of the financial crisis transformed him into a far more assertive figure.

In times of turmoil, there is an inevitable clash between political and economic priorities. As prime minister, Brown resisted talk of cuts for fear of the electoral consequences. But as chancellor, Darling was more concerned with the bottom line (backing a rise in VAT). By analogy, May is focused on the political imperative of controlling immigration, while Hammond is focused on the economic imperative of maintaining growth. If their relationship is to endure far tougher times they will soon need to find a middle way. 

George Eaton is political editor of the New Statesman.