No escape from Mammon? The Shard, near London Bridge. Photo: Cityscape Digital
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Leader: The London question

The capital’s economic dominance ensures that investing in it will produce a higher return than in other regions and makes it difficult to justify investing elsewhere. This logic merely tightens London’s stranglehold. 

The referendum on Scottish independence is not a vote about Scotland,” Danny Dorling writes in his essay on page 26. “It is a vote about London.” More than for any other comparable European country, the capital of the United Kingdom – Europe’s only true megacity – dominates national life. With just 13 per cent of the population, London produces 22 per cent of the UK’s wealth; through major projects such as Crossrail, it swallows a disproportionate share of its infrastructure funding. The Institute for Public Policy Research estimates that per-capita transport spending in London is 500 times as much as that in the north-east of England.

London’s economic dominance ensures that investing in the capital will produce a higher return than doing so in other regions. That makes it difficult to justify investing elsewhere. This logic merely tightens London’s stranglehold. Consequently, when the Yes Scotland campaign warns Scots of the dangers of voting No, it makes references to being ruled not by the English but by London. Indeed, in his New Statesman lecture in March, Alex Salmond likened London to a dark star, “inexorably sucking in resources, people and energy”.

On the question of the north-south divide, it is tempting to view the UK as a rich country in which only a few de­industrialised regions have fallen behind. However, it is London and its wealth that are the true outliers. New figures from Inequality Briefing showed that Britain has nine of the ten poorest areas in the whole of northern Europe. In parts of Wales and in Cornwall, the average income is less than £14,000 a year: once living costs are taken into account, this leaves residents poorer than many in the former communist states of eastern Europe.

Inner London, by contrast, is the single richest region in Europe. If our leaders and the deracinated plutocrats who gather in the capital seem unconcerned about the relative poverty of much of Britain, it is because they live within the walls of Versailles.

This is not only iniquitous; it is potentially disastrous for the rest of the country. It puts increasing pressure on housing stock in the south-east of England, driving up prices and leaving many of us ever more addicted to debt. It raises the cost of doing business in London, rendering the capital increasingly uncompetitive, while draining skills and expertise from other regions. It forces people to commute ever longer distances to work and leaves them captives of our train companies. Worst of all, it makes the national economy especially vulnerable to global financial shocks.

The leaders of both major parties are belatedly discussing devolving power from Westminster to the English regions and additional powers to the other nations of the UK. The main cities, meanwhile, are being encouraged to follow London’s example and set up combined authorities: resurrected versions of the old metropolitan counties, back from the dead to plot grand regional infrastructure plans.

However, all these plans are built on the assumption that the Treasury will retain ultimate control of the purse strings. New powers would be exercised only on sufferance from Westminster. It is unclear, too, whether political devolution will be enough to solve the problem of London’s dominance, without incentives to encourage private investors to invest in the regions. That might require some kind of regional banking system such as exists in Germany.

Professor Dorling proposes a different path: a return to the sort of government intervention that has been unfashionable for a generation. He favours more regulation of private rental markets; more publicly funded housebuilding; and changes to land use rules, such as the greenbelt. It would require having a plan for London. “The free market does not co-ordinate spatially and temporally. It reacts rather than instigates,” he writes.

If we are serious about reducing London’s stranglehold over the United Kingdom, trusting to the free market will never be enough. 

This article first appeared in the 27 August 2014 issue of the New Statesman, The new caliphate

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Labour is launching a stealthy Scottish comeback - thanks to Jeremy Corbyn and the Daily Mail

The Scottish Labour strategy is paying off - and hard evidence that it works may be more plentiful come 8 June 2017

When I suggested to a senior Scottish Labour figure earlier this year that the party was a car crash, he rejected my assertion.

“We’re past that,” he said gloomily. “Now we’re the burnt-out wreck in a field that no-one even notices anymore.”

And yet, just as the election campaign has seen Jeremy Corbyn transformed from an outdated jalopy into Chitty Chitty Bang Bang magically soaring in the polls, Scottish Labour is beginning to look roadworthy again.

And it’s all down to two apparently contradictory forces – Corbyn and The Daily Mail.

Kezia Dugdale’s decision to hire Alan Roden, then the Scottish Daily Mail’s political editor, as her spin doctor in chief last summer was said to have lost her some party members. It may win her some new members of parliament just nine months later.

Roden’s undoubted nose for a story and nous in driving the news agenda, learned in his years at the Mail, has seen Nicola Sturgeon repeatedly forced to defend her government record on health and education in recent weeks, even though her Holyrood administration is not up for election next month.

On ITV’s leaders debate she confessed that, despite 10 years in power, the Scottish education system is in need of some attention. And a few days later she was taken to task during a BBC debate involving the Scottish leaders by a nurse who told her she had to visit a food bank to get by. The subsequent SNP attempt to smear that nurse was a pathetic mis-step by the party that suggested their media operation had gone awry.

It’s not the Tories putting Sturgeon on the defence. They, like the SNP, are happy to contend the general election on constitutional issues in the hope of corralling the unionist vote or even just the votes of those that don’t yet want a second independence referendum. It is Labour who are spotting the opportunities and maximising them.

However, that would not be enough alone. For although folk like Dugdale as a person – as evidenced in Lord Ashcroft’s latest polling - she lacks the policy chops to build on that. Witness her dopey proposal ahead of the last Holyrood election to raise income tax.

Dugdale may be a self-confessed Blairite but what’s powering Scottish Labour just now is Jeremy Corbyn’s more left-wing policy platform.

For as Brexit has dropped down the agenda at this election, and bread and butter stuff like health and education has moved centre stage, Scots are seeing that for all the SNP’s left wing rhetoric, after 10 years in power in Holyrood, there’s not a lot of progressive policy to show for it.

Corbyn’s manifesto, even though huge chunks of it won’t apply in Scotland, is progressive. The evidence is anecdotal at the moment, but it seems some Scots voters find it more attractive than the timid managerialism of the SNP. This is particularly the case with another independence referendum looking very unlikely before the 2020s, on either the nationalists' or the Conservatives' timetable.

Evidence that the Scottish Labour strategy has worked may be more plentiful come 8 June 2017. The polls, albeit with small sample sizes so best approached with caution, have Ian Murray streets ahead in the battle to defend Edinburgh South. There’s a lot of optimism in East Lothian where Labour won the council earlier in May and MSP Iain Gray increased his majority at the Scottish election last year. Labour have chosen their local candidate well in local teacher Martin Whitfield, and if the unionist vote swings behind him he could overhaul sitting MP George Kerevan’s 7,000 majority. (As we learned in 2015, apparently safe majorities mean nothing in the face of larger electoral forces). In East Renfrewshire, Labour's Blair McDougall, the man who led Better Together in 2014, can out-unionist the Tory candidate.

But, while in April, it was suggested that these three seats would be the sole focus of the Scottish Labour campaign, that attitude has changed after the local elections. Labour lost Glasgow but did not implode. In chunks of their former west of Scotland heartlands there was signs of life.

Mhairi Black’s a media darling, but her reputation as a local MP rather than a local celebrity is not great. Labour would love to unseat her, in what would be a huge upset, or perhaps more realistically go after Gavin Newlands in the neighbouring Paisley seat.

They are also sniffing Glasgow East. With Natalie McGarry’s stint as MP ending in tears – a police investigation, voting in her wedding dress and fainting in the chamber sums up her two years in Westminster – Labour ought to be in with a chance in the deprived neighbourhoods of Glasgow’s east end.

Labour in Scotland doesn’t feel like such a wreck anymore. Alan Roden’s Daily Mail-honed media nous has grabbed attention. Corbyn’s progressive policies have put fuel in the tank.

After polling day, the party will be able to fit all its Scottish MPs comfortably in a small hatchback, compared to the double decker bus necessary just a few years back.

But this general election could give the party the necessary shove to get on to the long road back.

James Millar is a political journalist and founder of the Political Yeti's Politics Podcast. He is co-author of The Gender Agenda, which will be published July 21 by Jessica Kingsley Publishing.

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