A general view over Tower Bridge and the River Thames from the reception of the Shangri-La Hotel at the Shard in London. Photograph: Getty Images.
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Of course there is a north-south divide – and of course it matters

The claim that the only divide that matters is between the rich and the poor ignores the unequal distribution of political power. 

Writing in the Guardian on Monday, Owen Jones attacked the idea that English politics is split along north-south lines as a "myth" and a "distraction". Given rates of poverty and inequality in the south of England are as high as they are in the north (higher, in some cases), "how much really divides the call centre worker in Hull [from] the supermarket shelf-stacker in Chelmsford?", Jones asked.

It’s a legitimate point, and one familiar to anyone involved in the debate over Scottish independence. One of the clichés of Scottish unionism - particularly Scottish Labour unionism - is that a worker on minimum wage in Dundee has more in common with another minimum wage worker in Manchester than he or she does with a top-rate tax-payer in Edinburgh.

The premise of this argument - that working people across Britain share a basic set of interests - is sound. But the conclusion Jones and others tend to reach for - that "soft" constitutional issues are irrelevant when set against "hard" political and economic ones - isn’t. There seems to me to be a fairly obvious relationship between the structure of the British state (sclerotic and heavily centralised) and the structure of the British economy (sclerotic and heavily centralised).

To begin with, a wealth of evidence confirms that London and the south east benefit disproportionately from the spending decisions of the UK government.

Last year, analysis by IPPR North showed that the coalition’s planned 2015/16 departmental cuts would reduce public expenditure by £57 per person in the north east of England compared to £43 per person in London and £39 per person in the south east. (It stands to reason that areas with high levels of public sector employment will suffer more from austerity than areas with lower levels of public sector employment.) IPPR North has also warned that UK transport expenditure is dangerously skewed in London’s favour. In 2011, it found that upward of 80 per cent of all planned transport spending was earmarked for projects in the capital and its surrounding areas. In addition, London gets an excessively large slice of UK arts and culture funding - 15 times more than other English regions, according to one recent estimate.

Westminster’s obsession with London reflects the broader trajectory of UK economic policy over the last 35 years. Since the 1980s, efforts by successive UK governments to control inflation and protect the value of the pound have squeezed British manufacturing, the bulk of which is (or was) located in northern England and Scotland, at the same time as boosting London-based financial services. In 1998, Eddie George, Mervyn King’s predecessor as Governor of the Bank of England, basically admitted as much when he said job losses in the north were a "price worth paying" for curbing inflation in the south.

The consequences of this financialised, London-led growth strategy are plain to see: with just 13 per cent of the UK’s population, London now accounts for almost a quarter (22.4 per cent) of the UK’s total economic output  - more than the north west (9.4 per cent), Yorkshire and Humber (6.7 per cent) and the north east (3 per cent) combined. Despite the financial crisis, there is no sign of this trend changing anytime soon. As the Guardian’s economics editor, Larry Elliot, has written: "In the three years from 2010 to 2012 - a period marked by weak growth and austerity - London accounted for 10 times as many private sector jobs as any other [British] city."

Jones acknowledges that the UK economy is imbalanced but then fails to connect the dots. Like Scotland, Wales and Northern Ireland (more so, in fact), the English regions are powerless to pursue any economic strategy that deviates from the turbo-charged, free-market model championed by Westminster. But by devolving power away from London, other parts of the UK could begin to tackle the disparities created by the uneven distribution of British growth.

More to the point, the disproportionate attention the south receives from British policy-makers is one of the driving forces behind the UK’s present constitutional crisis. I doubt there would be the same appetite for independence among low-income Scots if the UK economy still looked capable of providing decent, secure, properly paid jobs for Scottish workers.

Jones is, of course, right to say the real dividing line in British politics is between "those who have wealth and power, and those who do not". I think everyone’s pretty much agreed on that. But it’s hardly a coincidence that so much of Britain’s wealth and power is concentrated in one place. 

James Maxwell is a Scottish political journalist. He is based between Scotland and London.

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An unmatched font of knowledge

Edinburgh’s global reputation as a knowledge economy is rooted in the performance and international outlook of its four universities.

As sociologist-turned US Senator Daniel Patrick Moynihan recognised when asked how to create a world-class city, a strong academic offering is pivotal to any forward-looking, ambitious city. “Build a university,” he said, “and wait 200 years.” He recognised the long-term return such an investment can deliver; how a renowned academic institution can help attract the world. However, in today’s increasingly globalised higher education sector, world-class universities no longer rely on the world coming to come to them – their outlook is increasingly international.

Boasting four world-class universities, Edinburgh not only attracts and retains students from around the world, but also increasingly exports its own distinctively Scottish brand of academic excellence. In fact, 53.9% of the city’s working age population is educated to degree level.

In the most recent QS World University Rankings, the University of Edinburgh was named as the 21st best university in the world, reflecting its reputation for research and teaching. It’s a fact reflected in the latest UK Research Exercise Framework (REF), conducted in 2014, which judged 96% of its academic departments to be producing world-leading research.

Innovation engine

Measured across the UK, annual Gross Value Added (GVA) by University of Edinburgh start-ups contributes more than £164m to the UK economy. In fact, of 262 companies to emerge from the university since the 1960s, 81% remain active today, employing more than 2,700 staff globally. That performance places the University of Edinburgh ahead of institutions such as MIT in terms of the number of start-ups it generates; an innovation hothouse that underlines why one in four graduates remain in Edinburgh and why blue chip brands such as Amazon, IBM and Microsoft all have R&D facilities in the city.

One such spin out making its mark is PureLiFi, founded by Professor Harald Haas to commercialise his groundbreaking research on data transmission using the visible light spectrum. With data transfer speeds 10,000 times faster than radio waves, LiFi not only enables bandwidths of 1 Gigabit/sec but is also far more secure.

Edinburgh’s universities play a pivotal role in the local economy. Through its core operations, knowledge transfer activities and world-class research the University generated £4.9bn in GVA and 44,500 jobs globally, when accounting for international alumni.

With £1.4bn earmarked for estate development over the next 10 years, the University of Edinburgh remains the city’s largest property developer. Its extensive programme of investment includes the soon-to-open Higgs Centre for Innovation. A partnership with the UK Astronomy Technology Centre, the new centre will open next year and will supply business incubation support for potential big data and space technology applications, enabling start-ups to realise the commercial potential of applied research in subjects such as particle physics.

It’s a story of innovation that is mirrored across Edinburgh’s academic landscape. Each university has carved its own areas of academic excellence and research expertise, such as the University of Edinburgh’s renowned School of Informatics, ranked among the world’s elite institutions for Computer Science. 

The future of energy

Research conducted into the economic impact of Heriot-Watt University demonstrated that it generates £278m in annual GVA for the Scottish economy and directly supports more than 6,000 jobs.

Set in 380-acres of picturesque parkland, Heriot-Watt University incorporates the Edinburgh Research Park, the first science park of its kind in the UK and now home to more than 40 companies.

Consistently ranked in the top 25% of UK universities, Heriot-Watt University enjoys an increasingly international reputation underpinned by a strong track record in research. 82% of the institution’s research is considered world-class (REF) – a fact reflected in a record breaking year for the university, attracting £40.6m in research funding in 2015. With an expanding campus in Dubai and last year’s opening of a £35m campus in Malaysia, Heriot-Watt is now among the UK’s top five universities in terms of international presence and numbers of international students.

"In 2015, Heriot-Watt University was ranked 34th overall in the QS ‘Top 50 under 50’ world rankings." 

Its established strengths in industry-related research will be further boosted with the imminent opening of the £20m Lyell Centre. It will become the Scottish headquarters of the British Geological Survey, and research will focus on global issues such as energy supply, environmental impact and climate change. As well as providing laboratory facilities, the new centre will feature a 50,000 litre climate change research aquarium, the UK Natural Environment Research Council Centre for Doctoral Training (CDT) in Oil and Gas, and the Shell Centre for Exploration Geoscience.

International appeal

An increasingly global outlook, supported by a bold international strategy, is helping to drive Edinburgh Napier University’s growth. The university now has more than 4,500 students studying its overseas programmes, through partnerships with institutions in Hong Kong, Singapore, China, Sri Lanka and India.

Edinburgh Napier has been present in Hong Kong for more than 20 years and its impact grows year-on-year. Already the UK’s largest higher education provider in the territory, more than 1,500 students graduated in 2015 alone.

In terms of world-leading research, Edinburgh Napier continues to make its mark, with the REF judging 54% of its research to be either world-class or internationally excellent in 2014. The assessment singled out particular strengths in Earth Systems and Environmental Sciences, where it was rated the top UK modern university for research impact. Taking into account research, knowledge exchange, as well as student and staff spending, Edinburgh Napier University generates in excess of £201.9m GVA and supports 2,897 jobs in the city economy.

On the south-east side of Edinburgh, Queen Margaret University is Scotland’s first university to have an on-campus Business Gateway, highlighting the emphasis placed on business creation and innovation.

QMU moved up 49 places overall in the 2014 REF, taking it to 80th place in The Times’ rankings for research excellence in the UK. The Framework scored 58% of Queen Margaret’s research as either world-leading or internationally excellent, especially in relation to Speech and Language Sciences, where the University is ranked 2nd in the UK.

In terms of its international appeal, one in five of Queen Margaret’s students now comes from outside the EU, and it is also expanding its overseas programme offer, which already sees courses delivered in Greece, India, Nepal, Saudi Arabia and Singapore.

With 820 years of collective academic excellence to export to the world, Edinburgh enjoys a truly privileged position in the evolving story of academic globalisation and the commercialisation of world-class research and innovation. If he were still around today, Senator Moynihan would no doubt agree – a world-class city indeed.

For further information www.investinedinburgh.com