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  

Photo: Getty Images/AFP
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Is Yvette Cooper surging?

The bookmakers and Westminster are in a flurry. Is Yvette Cooper going to win after all? I'm not convinced. 

Is Yvette Cooper surging? The bookmakers have cut her odds, making her the second favourite after Jeremy Corbyn, and Westminster – and Labour more generally – is abuzz with chatter that it will be her, not Corbyn, who becomes leader on September 12. Are they right? A couple of thoughts:

I wouldn’t trust the bookmakers’ odds as far as I could throw them

When Jeremy Corbyn first entered the race his odds were at 100 to 1. When he secured the endorsement of Unite, Britain’s trade union, his odds were tied with Liz Kendall, who nobody – not even her closest allies – now believes will win the Labour leadership. When I first tipped the Islington North MP for the top job, his odds were still at 3 to 1.

Remember bookmakers aren’t trying to predict the future, they’re trying to turn a profit. (As are experienced betters – when Cooper’s odds were long, it was good sense to chuck some money on there, just to secure a win-win scenario. I wouldn’t be surprised if Burnham’s odds improve a bit as some people hedge for a surprise win for the shadow health secretary, too.)

I still don’t think that there is a plausible path to victory for Yvette Cooper

There is a lively debate playing out – much of it in on The Staggers – about which one of Cooper or Burnham is best-placed to stop Corbyn. Team Cooper say that their data shows that their candidate is the one to stop Corbyn. Team Burnham, unsurprisingly, say the reverse. But Team Kendall, the mayoral campaigns, and the Corbyn team also believe that it is Burnham, not Cooper, who can stop Corbyn.

They think that the shadow health secretary is a “bad bank”: full of second preferences for Corbyn. One senior Blairite, who loathes Burnham with a passion, told me that “only Andy can stop Corbyn, it’s as simple as that”.

I haven’t seen a complete breakdown of every CLP nomination – but I have seen around 40, and they support that argument. Luke Akehurst, a cheerleader for Cooper, published figures that support the “bad bank” theory as well.   Both YouGov polls show a larger pool of Corbyn second preferences among Burnham’s votes than Cooper’s.

But it doesn’t matter, because Andy Burnham can’t make the final round anyway

The “bad bank” row, while souring relations between Burnhamettes and Cooperinos even further, is interesting but academic.  Either Jeremy Corbyn will win outright or he will face Cooper in the final round. If Liz Kendall is eliminated, her second preferences will go to Cooper by an overwhelming margin.

Yes, large numbers of Kendall-supporting MPs are throwing their weight behind Burnham. But Kendall’s supporters are overwhelmingly giving their second preferences to Cooper regardless. My estimate, from both looking at CLP nominations and speaking to party members, is that around 80 to 90 per cent of Kendall’s second preferences will go to Cooper. Burnham’s gaffes – his “when it’s time” remark about Labour having a woman leader, that he appears to have a clapometer instead of a moral compass – have discredited him in him the eyes of many. While Burnham has shrunk, Cooper has grown. And for others, who can’t distinguish between Burnham and Cooper, they’d prefer to have “a crap woman rather than another crap man” in the words of one.

This holds even for Kendall backers who believe that Burnham is a bad bank. A repeated refrain from her supporters is that they simply couldn’t bring themselves to give Burnham their 2nd preference over Cooper. One senior insider, who has been telling his friends that they have to opt for Burnham over Cooper, told me that “faced with my own paper, I can’t vote for that man”.

Interventions from past leaders fall on deaf ears

A lot has happened to change the Labour party in recent years, but one often neglected aspect is this: the Labour right has lost two elections on the bounce. Yes, Ed Miliband may have rejected most of New Labour’s legacy and approach, but he was still a protégé of Gordon Brown and included figures like Rachel Reeves, Ed Balls and Jim Murphy in his shadow cabinet.  Yvette Cooper and Andy Burnham were senior figures during both defeats. And the same MPs who are now warning that Corbyn will doom the Labour Party to defeat were, just months ago, saying that Miliband was destined for Downing Street and only five years ago were saying that Gordon Brown was going to stay there.

Labour members don’t trust the press

A sizeable number of Labour party activists believe that the media is against them and will always have it in for them. They are not listening to articles about Jeremy Corbyn’s past associations or reading analyses of why Labour lost. Those big, gamechanging moments in the last month? Didn’t change anything.

100,000 people didn’t join the Labour party on deadline day to vote against Jeremy Corbyn

On the last day of registration, so many people tried to register to vote in the Labour leadership election that they broke the website. They weren’t doing so on the off-chance that the day after, Yvette Cooper would deliver the speech of her life. Yes, some of those sign-ups were duplicates, and 3,000 of them have been “purged”.  That still leaves an overwhelmingly large number of sign-ups who are going to go for Corbyn.

It doesn’t look as if anyone is turning off Corbyn

Yes, Sky News’ self-selecting poll is not representative of anything other than enthusiasm. But, equally, if Yvette Cooper is really going to beat Jeremy Corbyn, surely, surely, she wouldn’t be in third place behind Liz Kendall according to Sky’s post-debate poll. Surely she wouldn’t have been the winner according to just 6.1 per cent of viewers against Corbyn’s 80.7 per cent. 

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