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

Arsène Wenger. Credit: Getty
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My biggest regret of the Wenger era? How we, the fans, treated him at the end

Arsenal’s greatest coach deserved better treatment from the Club’s supporters. 

I have no coherent memories of Arsenal before Arsène Wenger, who will leave the Club at the end of the season. I am aware of the Club having a new manager, but my continuous memories of my team are of Wenger at the helm.

They were good years to remember: three league titles, seven FA Cups, the most of any single manager in English football. He leaves the Club as the most successful manager in its history.

I think one of the reasons why in recent years he has taken a pasting from Arsenal fans is that the world before him now seems unimaginable, and not just for those of us who can't really remember it. As he himself once said, it is hard to go back to sausages when you are used to caviar, and while the last few years cannot be seen as below par as far as the great sweep of Arsenal’s history goes, they were below par by the standards he himself had set. Not quite sausages, but not caviar either.

There was the period of financial restraint from 2005 onwards, in which the struggle to repay the cost of a new stadium meant missing out on top player. A team that combined promising young talent with the simply bang-average went nine years without a trophy. Those years had plenty of excitement: a 2-1 victory over Manchester United with late, late goals from Robin van Persie and Thierry Henry, a delicious 5-2 thumping of Tottenham Hotspur, and races for the Champions League that went to the last day. It was a time that seemed to hold the promise a second great age of Wenger once the debt was cleared. But instead of a return to the league triumphs of the past, Wenger’s second spree of trophy-winning was confined to the FA Cup. The club went from always being challenging for the league, to always finishing in the Champions League places, to struggling to finish in the top six. Again, nothing to be sniffed at, but short of his earlier triumphs.

If, as feels likely, Arsenal’s dire away form means the hunt for a Uefa Cup victory ends at Atletico Madrid, many will feel that Wenger missed a trick in not stepping down after his FA Cup triumph over Chelsea last year, in one of the most thrilling FA Cup Finals in years. (I particularly enjoyed this one as I watched it with my best man, a Chelsea fan.) 

No one could claim that this season was a good one, but the saddest thing for me was not the turgid performances away from home nor the limp exit from the FA Cup, nor even finishing below Tottenham again. It was hearing Arsenal fans, in the world-class stadium that Wenger built for us, booing and criticising him.

And I think, that, when we look back on Wenger’s transformation both of Arsenal and of English football in general, more than whether he should have called it a day a little earlier, we will wonder how Arsenal fans could have forgotten the achievements of a man who did so much for us.

Stephen Bush is special correspondent at the New Statesman and the PSA's Journalist of the Year. His daily briefing, Morning Call, provides a quick and essential guide to domestic and global politics.