Will the spending round crush urban growth?

Alexandra Jones welcomes funding for skills, but worries that grants to pay for councils and growth have been wiped out.

Everyone knew there would be very little money to spare in Wednesday’s spending round and Thursday’s "growth statement". The economy’s poor performance has put paid to any attempts to move away from "austerity" government, so departmental cuts of up to 10 per cent came as no surprise. Yet the big question for me was whether the Review – which, it’s worth remembering, doesn’t even get put into practice until 2015 – would start to signal an alternation in the balance of power, away from most decisions being taken centrally about how money is spent and towards more local decision- about how best to deliver jobs, growth and better public services for much less money. So did it happen?

The honest, if unexciting, answer is that it’s a mixed picture – the rhetoric is going in the right direction but Government still lacks a "place" focus in its approach to national policy, and many of the the decisions about devolution were fairly timid, with too much emphasis on central government control rather than local autonomy.

Take Heseltine’s Single Local Growth Fund. Heseltine suggested it could be as much as £49bn over four years; it ended up being £2bn a year for five years. While it’s good news that a direction of travel has been established, creating some degree of certainty for local enterprise partnerships (LEPs) wishing to make investment decisions, £2bn is hardly a ringing endorsement for devolution to local areas. Digging beneath the detail, much of the money is not new – about £700m has already been allocated to local areas for transport or the New Homes Bonus – and when you divide it between 39 LEPs, it's not a great deal of money, roughly the same as the nine Regional Development Agencies had in the mid 2000s. 

It is good to see skills money in there, however, and now it’s been created it will be difficult to put the localism genie back in the bottle – provided local areas deliver. The challenge for Whitehall as it finalises guidance about how the money will be allocated is to ensure that, even if the amounts are smaller than I had hoped, there is devolution of decision-making and that access to the funds do not involve local areas jumping through a lot of Whitehall-devised hoops.

It’s also unclear whether the welcome announcements on affordable housing, super-fast broadband and transport will respond to the needs of different places. The £3bn of capital investment to build 165,000 affordable homes, along with the £250m announced for more super-fast broadband are welcome and will make a difference in cities across the country, as will the vast number of inter- and intra-city transport schemes that were announced. My concern is that as we move from policy announcements to prioritisation and implementation, the significance of the differences between places will be missed by Whitehall departments. 

Finally, it was not a surprise that local government has again been hit hard by cuts, receiving a 10 per cent cut that Stephanie Flanders of the BBC suggested would amount to a 35 per cent cut in real terms for local government since 2010 (although the Chancellor argued that other measures meant that the "true" cut for local government would be 2 per cent in 2015/16). Combined with cuts in welfare, which will affect some city economies significantly, it will be very tough for many cities to manage their budgets giving rising demands for their services. 

To help them manage cuts more effectively, more action is needed on innovative measures that increase local autonomy. It was good to see confirmation of Manchester's Earn Back deal, involving Manchester keeping a proportion of the benefits generated by increasing local economic growth. It was also good to see additional money for Troubled Families, but I would have liked to see more steps taken down the road of "Community Budgets", allowing local areas to pool budgets across silos in order to deliver more effective, efficient local services in a way already demonstrated in pilot areas such as Manchester and Essex. 

So where does this leave us? I’m an optimist, so I still hope that as the detail emerges over the next few weeks and months this will show that government is putting "place" at the heart of its policy-making. In the meantime, in the two years before these announcements kick in, there’s still more to do to give greater freedom to cities with the capacity to deliver and provide greater support to those cities struggling with capacity, decline or both.

Alexandra Jones is the director of the Centre for Cities

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Richmond is a victory for hope - now let's bring change across the country

The regressives are building their armies. 

Last night a regressive alliance was toppled. Despite being backed by both Ukip and the Conservative Party, Zac Goldsmith was rejected by the voters of Richmond Park.

Make no mistake, this result will rock the Conservative party – and in particularly dent their plans for a hard and painful Brexit. They may shrug off this vote in public, but their majority is thin and their management of the post-referendum process is becoming more chaotic by the day. This is a real moment, and those of us opposing their post-truth plans must seize it.

I’m really proud of the role that the Green party played in this election. Our local parties decided to show leadership by not standing this time and urging supporters to vote instead for the candidate that stood the best chance of winning for those of us that oppose Brexit. Greens’ votes could very well be "what made the difference" in this election (we received just over 3,500 votes in 2015 and Sarah Olney’s majority is 1,872) - though we’ll never know exactly where they went. Just as importantly though, I believe that the brave decision by the local Green party fundamentally changed the tone of the election.

When I went to Richmond last weekend, I met scores of people motivated to campaign for a "progressive alliance" because they recognised that something bigger than just one by election is at stake. We made a decision to demonstrate you can do politics differently, and I think we can fairly say that was vindicated. 

There are some already attacking me for helping get one more Liberal Democrat into Parliament. Let me be very clear: the Lib Dems' role in the Coalition was appalling – propping up a Conservative government hell bent on attacking our public services and overseeing a hike in child poverty. But Labour’s record of their last time in office isn't immune from criticism either – not just because of the illegal war in Iraq but also their introduction of tuition fees, privatisation of our health service and slavish worship of the City of London. They, like the Liberal Democrats, stood at the last election on an austerity manifesto. There is a reason that we remain different parties, but that doesn’t mean we shouldn't also seize opportunities like this to unite behind what we have in common. Olney is no perfect candidate but she has pledged to fight a hard Brexit, campaign against airport expansion and push for a fair voting system – surely progressives can agree that her win takes us forward rather than backwards?

Ultimately, last night was not just defeat of a regressive alliance but a victory for hope - a victory that's sorely needed on the back of of the division, loss and insecurity that seems to have marked much of the rest of this year. The truth is that getting to this point hasn’t been an easy process – and some people, including local Green party members have had criticisms which, as a democrat, I certainly take seriously. The old politics dies hard, and a new politics is not easy to forge in the short time we have. But standing still is not an option, nor is repeating the same mistakes of the past. The regressives are building their armies and we either make our alternative work or risk the left being out of power for a generation. 

With our NHS under sustained attack, our climate change laws threatened and the increasing risk of us becoming a tax haven floating on the edge of the Atlantic, the urgent need to think differently about how we win has never been greater. 

An anti-establishment wave is washing over Britain. History teaches us that can go one of two ways. For the many people who are utterly sick of politics as usual, perhaps the idea of politicians occasionally putting aside their differences for the good of the country is likely to appeal, and might help us rebuild trust among those who feel abandoned. So it's vital that we use this moment not just to talk among ourselves about how to work together but also as another spark to start doing things differently, in every community in Britain. That means listening to people, especially those who voted for Britain to leave the EU, hearing what they’re saying and working with them to affect change. Giving people real power, not just the illusion of it.

It means looking at ways to redistribute power and money in this country like never before, and knowing that a by-election in a leafy London suburb changes nothing for the vast majority of our country.

Today let us celebrate that the government's majority is smaller, and that people have voted for a candidate who used her victory speech to say that she would "stand up for an open, tolerant, united Britain".  But tomorrow let’s get started on something far bigger - because the new politics is not just about moments it's about movements, and it will only work if nobody is left behind.

 

Caroline Lucas is the MP for Brighton Pavilion.