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  

Photo: Getty
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How the row over Jackie Walker triggered a full-blown war in Momentum

Jon Lansman, the organisation's founder, is coming under attack. 

The battle for control within Momentum, which has been brewing for some time, has begun in earnest.

In a sign of the growing unrest within the organisation – established as the continuation of Jeremy Corbyn’s first successful leadership bid, and instrumental in delivering in his re-election -  a critical pamphlet by the Alliance for Workers’ Liberty (AWL), a Trotskyite grouping, has made its way into the pages of the Times, with the “unelected” chiefs of Momentum slated for turning the organisation into a “bland blur”.

The issue of contention: between those who see Momentum as an organisation to engage new members of the Labour party, who have been motivated by Jeremy Corbyn but are not yet Corbynites.

One trade unionist from that tendency described what they see the problem as like this: “you have people who have joined to vote for Jeremy, they’re going to meetings, but they’re voting for the Progress candidates in selections, they’re voting for Eddie Izzard [who stood as an independent but Corbynsceptic candidate] in the NEC”.  

On the other are those who see a fightback by Labour’s right and centre as inevitable, and who are trying to actively create a party within a party for what they see as an inevitable purge. One activist of that opinion wryly described Momentum as “Noah’s Ark”.

For both sides, Momentum, now financially stable thanks to its membership, which now stands at over 20,000, is a great prize. And in the firing line for those who want to turn Momentum into a parallel line is Jon Lansman, the organisation’s founder.

Lansman, who came into politics as an aide to Tony Benn, is a figure of suspicion on parts of the broad left due to his decades-long commitment to the Labour party. His major opposition within Momentum and on its ruling executive comes from the AWL.

The removal of Jackie Walker as a vice-chair of Momentum after she said that Holocaust Memorial Day belittled victims of other genocides has boosted the AWL, although the AWL's Jill Mountford, who sits on Momentum's ruling executive, voted to remove Walker as vice-chair. (Walker remains on the NEC, as she has been elected by members). But despite that, the AWL, who have been critical of the process whereby Walker lost her post, have felt the benefit across the country.

Why? Because that battle has triggered a series of serious splits, not only in Momentum’s executive but its grassroots. A raft of local groups have thrown out the local leadership, mostly veterans of Corbyn’s campaign for the leadership, for what the friend of one defeated representative described as “people who believe the Canary [a pro-Corbyn politics website that is regularly accused of indulging and promoting conspiracy theories]”.

In a further series of reverses for the Lansmanite caucus, the North West, a Momentum stronghold since the organisation was founded just under a year ago, is slipping away from old allies of Lansman and towards the “new” left. As one insider put it, the transition is from longstanding members towards people who had been kicked out in the late 1980s and early 1990s by Neil Kinnock. The constituency party of Wallasey in particular is giving senior figures in Momentum headaches just as it is their opponents on the right of the party, with one lamenting that they have “lost control” of the group.

It now means that planned changes to Momentum’s structure, which the leadership had hoped to be rubberstamped by members, now face a fraught path to passage.

Adding to the organisation’s difficulties is the expected capture of James Schneider by the leader’s office. Schneider, who appears widely on television and radio as the public face of Momentum and is well-liked by journalists, has an offer on the table to join Jeremy Corbyn’s team at Westminster as a junior to Seumas Milne.

The move, while a coup for Corbyn, is one that Momentum – and some of Corbyn’s allies in the trade union movement – are keen to resist. Taking a job in the leader’s office would reduce still further the numbers of TV-friendly loyalists who can go on the airwaves and defend the leadership. There is frustration among the leader’s office that as well as Diane Abbott and John McDonnell, who are both considered to be both polished media performers and loyalists, TV bookers turn to Ken Livingstone, who is retired and unreliable, and Paul Mason, about whom opinions are divided within Momentum. Some regard Mason as a box office performer who needs a bigger role, others as a liability.

But all are agreed that Schneider’s expected departure will weaken the media presence of Corbyn loyalists and also damage Momentum. Schneider has spent much of his time not wrangling journalists but mediating in local branches and is regarded as instrumental in the places “where Momentum is working well” in the words of one trade unionist. (Cornwall is regarded as a particular example of what the organisation should be aiming towards)

It comes at a time when Momentum’s leadership is keen to focus both on its external campaigns but the struggle for control in the Labour party. Although Corbyn has never been stronger within the party, no Corbynite candidate has yet prevailed in a by-election, with the lack of available candidates at a council level regarded as part of the problem. Councilors face mandatory reselection as a matter of course, and the hope is that a bumper crop of pro-Corbyn local politicians will go on to form the bulk of the talent pool for vacant seats in future by-elections and in marginal seats at the general election.

But at present, a draining internal battle is sapping Momentum of much of its vitality. But Lansman retains two trump cards. The first is that as well as being the founder of the organisation, he is its de facto owner: the data from Jeremy Corbyn’s leadership campaigns, without which much of the organisation could not properly run, is owned by a limited company of which he is sole director. But “rolling it up and starting again” is very much the nuclear option, that would further delay the left’s hopes of consolidating its power base in the party.

The second trump card, however, is the tribalism of many of the key players at a local level, who will resist infiltration by groups to Labour’s left just as fiercely as many on the right. As one veteran of both Corbyn’s campaigns reflected: “If those who have spent 20 years attacking our party think they have waiting allies in the left of Labour, they are woefully mistaken”. 

Stephen Bush is special correspondent at the New Statesman. His daily briefing, Morning Call, provides a quick and essential guide to British politics.