It will take more than infrastructure spending to create a "northern global powerhouse". Photo: Oli Scarff, Getty
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Infrastructure spending isn’t enough, we need a radical shift of power away from London

City regions should be at the heart of future economic and social development, with powers and responsibilities devolved from Westminster.

There is an awakening interest in the regional economies and cities at present. After four years of austerity which have reinforced all of the inequalities that divide the south-east and the other English regions, it looks as though some spending on infra-structure may be heading north but it will take more than infrastructure spending alone to create a “northern global powerhouse”.

A major initiative to improve rail transport across the five key northern cities was announced last week in The One North Report, which, proposes a 125mph trans-pennine rail link and a faster link to Newcastle and Manchester airport. It is part of a 15 year plan for improving east-west transport links across the north. The cost of the rail improvements are around £15bn - roughly the same as Crossrail in London and George Osborne is likely to make this a “centrepiece” of his autumn statement which in turn forms part of the government’s proposals for a “northern global powerhouse”.

This may be cynical electioneering ahead of next year’s and it will take a much more comprehensive approach to regional economic planning to address the imbalances in in the English and the UK economies, let alone tackling the continued growth of inequality across society. Yes, we need economic development across the regions but we need strategies that can genuinely address inequality by moving power and economic investment away from Westminster and delivering economic development that meets aspirations for a fairer society that is concerned with equality and sustainability. For more on this see my essay in ‘Building Blocks for a New Economy’, out today.

It is interesting to look north to Scotland and the debate on Scottish Independence as a solution to the regional problems of England. In Scotland, the debate on Scottish Independence has brought forward a strong economic case for independence, arguing the importance of greater natural resources and strengths in education, innovation and ingenuity. They clearly, argue that a one-size fits all policy for economic development in the UK deprives Scotland of the economic levers that are necessary to set the economy on the right path to recovery. In England the patterns of centralised policy making continually reinforce the economic pull of the London and the South East and this deprives the regions of the necessary levers to deliver the economic and social aspirations of people in the regions. The case for different economic policies is a strong one but also is the argument for greater self-determination in social policy, developing economic policies that reflect the values of a fairer society in terms of education, health and equality.

In developing a new strategy for economic development we need to look to city regions as a main focus for economic development with powers and responsibilities devolved from Westminster that require them to place economic justice and sustainability at the heart of economic activity. This cannot be achieved without radical shift in power away from London and the creation of a new banking and investment infrastructure to support this shift.

Cities should be at the heart of future economic and social development. It is here that innovation and creativity thrive and where ideas will develop to create economic and social change.

Stuart Speeden is an independent equalities consultant. His essay on radical decentralisation is published by Compass today in Building blocks: for a new political economy and can be downloaded at http://bit.ly/1qVCH5X  

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A global marketplace: the internet represents exporting’s biggest opportunity

The advent of the internet age has made the whole world a single marketplace. Selling goods online through digital means offers British businesses huge opportunities for international growth. The UK was one of the earliest adopters of online retail platforms, and UK online sales revenues are growing at around 20 per cent each year, not just driving wider economic growth, but promoting the British brand to an enthusiastic audience.

Global e-commerce turnover grew at a similar rate in 2014-15 to over $2.2trln. The Asia-Pacific region, for example, is embracing e-marketplaces with 28 per cent growth in 2015 to over $1trln of sales. This demonstrates the massive opportunities for UK exporters to sell their goods more easily to the world’s largest consumer markets. My department, the Department for International Trade, is committed to being a leader in promoting these opportunities. We are supporting UK businesses in identifying these markets, and are providing access to services and support to exploit this dramatic growth in digital commerce.

With the UK leading innovation, it is one of the responsibilities of government to demonstrate just what can be done. My department is investing more in digital services to reach and support many more businesses, and last November we launched our new digital trade hub: www.great.gov.uk. Working with partners such as Lloyds Banking Group, the new site will make it easier for UK businesses to access overseas business opportunities and to take those first steps to exporting.

The ‘Selling Online Overseas Tool’ within the hub was launched in collaboration with 37 e-marketplaces including Amazon and Rakuten, who collectively represent over 2bn online consumers across the globe. The first government service of its kind, the tool allows UK exporters to apply to some of the world’s leading overseas e-marketplaces in order to sell their products to customers they otherwise would not have reached. Companies can also access thousands of pounds’ worth of discounts, including waived commission and special marketing packages, created exclusively for Department for International Trade clients and the e-exporting programme team plans to deliver additional online promotions with some of the world’s leading e-marketplaces across priority markets.

We are also working with over 50 private sector partners to promote our Exporting is GREAT campaign, and to support the development and launch of our digital trade platform. The government’s Exporting is GREAT campaign is targeting potential partners across the world as our export trade hub launches in key international markets to open direct export opportunities for UK businesses. Overseas buyers will now be able to access our new ‘Find a Supplier’ service on the website which will match them with exporters across the UK who have created profiles and will be able to meet their needs.

With Lloyds in particular we are pleased that our partnership last year helped over 6,000 UK businesses to start trading overseas, and are proud of our association with the International Trade Portal. Digital marketplaces have revolutionised retail in the UK, and are now connecting consumers across the world. UK businesses need to seize this opportunity to offer their products to potentially billions of buyers and we, along with partners like Lloyds, will do all we can to help them do just that.

Taken from the New Statesman roundtable supplement Going Digital, Going Global: How digital skills can help any business trade internationally

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