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

Photo: Getty Images
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Autumn Statement 2015: George Osborne abandons his target

How will George Osborne close the deficit after his U-Turns? Answer: he won't, of course. 

“Good governments U-Turn, and U-Turn frequently.” That’s Andrew Adonis’ maxim, and George Osborne borrowed heavily from him today, delivering two big U-Turns, on tax credits and on police funding. There will be no cuts to tax credits or to the police.

The Office for Budget Responsibility estimates that, in total, the government gave away £6.2 billion next year, more than half of which is the reverse to tax credits.

Osborne claims that he will still deliver his planned £12bn reduction in welfare. But, as I’ve written before, without cutting tax credits, it’s difficult to see how you can get £12bn out of the welfare bill. Here’s the OBR’s chart of welfare spending:

The government has already promised to protect child benefit and pension spending – in fact, it actually increased pensioner spending today. So all that’s left is tax credits. If the government is not going to cut them, where’s the £12bn come from?

A bit of clever accounting today got Osborne out of his hole. The Universal Credit, once it comes in in full, will replace tax credits anyway, allowing him to describe his U-Turn as a delay, not a full retreat. But the reality – as the Treasury has admitted privately for some time – is that the Universal Credit will never be wholly implemented. The pilot schemes – one of which, in Hammersmith, I have visited myself – are little more than Potemkin set-ups. Iain Duncan Smith’s Universal Credit will never be rolled out in full. The savings from switching from tax credits to Universal Credit will never materialise.

The £12bn is smaller, too, than it was this time last week. Instead of cutting £12bn from the welfare budget by 2017-8, the government will instead cut £12bn by the end of the parliament – a much smaller task.

That’s not to say that the cuts to departmental spending and welfare will be painless – far from it. Employment Support Allowance – what used to be called incapacity benefit and severe disablement benefit – will be cut down to the level of Jobseekers’ Allowance, while the government will erect further hurdles to claimants. Cuts to departmental spending will mean a further reduction in the numbers of public sector workers.  But it will be some way short of the reductions in welfare spending required to hit Osborne’s deficit reduction timetable.

So, where’s the money coming from? The answer is nowhere. What we'll instead get is five more years of the same: increasing household debt, austerity largely concentrated on the poorest, and yet more borrowing. As the last five years proved, the Conservatives don’t need to close the deficit to be re-elected. In fact, it may be that having the need to “finish the job” as a stick to beat Labour with actually helped the Tories in May. They have neither an economic imperative nor a political one to close the deficit. 

Stephen Bush is editor of the Staggers, the New Statesman’s political blog.