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Devolution strikes back – but do Cornwall and Yorkshire want more powers . . . or just more money?

 If prospectors struck oil off the Falmouth coast tomorrow, I don’t see how anyone could blame the Cornish for rolling out barbed wire along the banks of the Tamar.

In the last weeks of the referendum campaign, I’ve been annoying my colleagues even more than usual. “What about Cornwall?” I pipe up. “If I lived in Cornwall, I’d be pretty pissed off with the current constitutional set-up, too.”

One of the defining themes of the independence debate has been how badly served many people in Scotland feel by the concentration of power in Westminster. “We didn’t vote for this Tory government!” said a succession of men draped in the Saltire on the news. “Scotland’s Future in Scotland’s Hands”, went the title of Alex Salmond’s New Statesman lecture in March.

One obvious consequence of this anti-establishment fervour is that activists in the English regions have renewed their call for more powers. The devolution agenda – widely regarded to have stalled in November 2004 when voters rejected a north-east assembly – is back. And it’s not just in the big cities of the north, for which elected mayors are sporadically proposed. The rural regions also bridle at the thought of being governed by a “metropolitan elite”, which is the new way of saying “townies”. Think of the antipathy generated by the coalition’s proposed sell-off of the forests or the slow dredging of rivers on the Somerset Levels. Many English people feel that their particular concerns are going unheard.

A few figures to illustrate the problem: James Ball, who leads the Guardian’s data blog, analysed the number of news stories in national papers that mentioned Scotland between 8 and 15 September. The tally for this year was 2,157 – up from 1,077 in the same week in 2013. James, being a proud Yorkshireman, repeated the exercise for his home county, which has roughly the same size population as Scotland. The result? A measly 469, down from 503. If you live outside the capital, the media take you for granted unless you threaten to bugger off.

No wonder regionalist parties are sounding off. On 1 August, an outfit called Yorkshire First launched its “Yorkshire pledge”, dem­anding devolution of “powers to the least centralised authority capable of addressing those matters effectively”. It points out that Yorkshire has an economy twice the size of Wales’s but far less powers. Fun fact: if Yorkshire had seceded from Britain and competed in the 2012 Olympics, its seven golds, two silvers and three bronzes would have put it 12th in the medal table.

There is a problem, however: where do you define Yorkshire’s borders? Even the Yorkshire First website gets its whippets in a twist: it claims an area of 22 councils, including two from Lincolnshire. A similar problem afflicts the Wessex Regionalist Party (WRP), which originally used Thomas Hardy’s definition but has since decided to annex Oxfordshire and Gloucestershire, too. (Luckily, with a grand total of 62 votes in Witney, the only seat it contested in 2010, the WRP’s imperial ambitions are unlikely to become worrisome.) English devolution will always stumble because historically, unlike Germany, we don’t have clearly defined administrative boundaries.

But that is not an issue for Cornwall, which has a clearly defined geographic area. (“Lots of the Cornish think England should stop at the Tamar and ‘Kernow’ should be its own country,” a Cornish friend told me recently.) It also has specific troubles: it is the most deprived part of Britain after western Wales, according to Eurostat.

The poverty levels show that Cornwall is getting a bad deal from being part of the United Kingdom. If prospectors struck oil off the Falmouth coast tomorrow, I don’t see how anyone could blame the Cornish for rolling out barbed wire along the banks of the Tamar. As it stands, the region is heavily reliant on tourism, so there is no possibility of a successful independence movement – and therefore no chance of tweaking public spending to buy it off, as the Barnett formula did for Scotland, Wales and Northern Ireland. (That said, leaving Europe would have interesting consequences: Cornwall has received hundreds of millions in EU funding.)

What looks likely is further devolution - and here Cornwall has an advantage over more nebulous regions, because it already has a unitary authority, established in 2009, to which more responsibility could be given. The other option is a Cornish assembly, which the Liberal Democrats are squarely behind, for reasons that I’m sure have nothing to do with having three Cornish MPs with small majorities in seats where the Tories are in second place. (The three other parliamentary seats in Cornwall are held by Conservatives.) They judge, as Labour has done on the national scale, that when you don’t have any goodies to give away, you can always promise to give away power.

I asked Ian Saltern, an environmental project manager who moonlights on the cross-party campaign for a Cornish assembly, what such a body could offer. “Dydh da!” began his chirpy email back (Cornish for “Good day!”). Over the phone, he told me that the region needed more control over its housing, police, health, education and heritage policies. “The metropolitan mindset probably misses some of the unique problems that we have,” he said. “So much power has accrued to London and the south-east . . . and, you know, we don’t have a motorway – not that we’d necessarily want one, but that’s how far we are from London. During the floods, the news kept on about the ‘main train line’ between Cornwall and London. Actually, it was the only train line. And all the authorities coped really well. We think they could do that all the time, not just under emergency conditions.”

Over the next few years, Saltern’s theory is likely to be put to the test: after what we’ve seen in Scotland, the demands for devolution from the English regions will be hard to ignore. But they might well find that more powers are no substitute for something more concrete: more Treasury cash. 

Helen Lewis is deputy editor of the New Statesman. She regularly appears on BBC Radio 4’s Week in Westminster and the News Quiz, and BBC1’s Sunday Politics. 

This article first appeared in the 17 September 2014 issue of the New Statesman, Scotland: What Next?

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The UK is suffering from an extreme case of generational inequality

Millennials across the developed world are struggling. But the UK stands out. 

 

“Don’t it always seem to go, that you don’t know what you’ve got till it’s gone”

Joni Mitchell’s lyrics may refer to her first trip to Hawaii, but they could just as easily apply to UK trends in generational living standards that the Resolution Foundation’s Intergenerational Commission has uncovered. That’s particularly so in light of new analysis comparing these trends internationally.

While there are huge living standards differences between high-income countries, there is also much shared ground, with the financial crisis and demographic patterns putting pressure on younger generations’ living standards everywhere. But the UK stands out. With the partial exception of Spain, no other country in living memory has experienced as large a “boom and bust” in generation-on-generation progress across both incomes and home ownership rates.

On incomes, the millennials (born 1980-2000) who have reached their early 30s are just 6 per cent better off than generation X (born 1966-80) when they were the same age. This is very small progress indeed when compared with the progress older generations are enjoying – baby boomers (born 1946-65) in their late 60s are 29 per cent better off than the silent generation (born 1926-1945).

These sorts of slowdowns have occurred in most countries, but not to the same extent. In the US, millennials in their early 30s are doing 5 per cent worse than their predecessors, but this compares to relatively modest 11 per cent gains for generation X relative to the baby boomers. In fact, in the US – despite higher levels of income – the absence of generational progress is what stands out. Typical incomes in the US for those aged 45-49 are no higher for those born in the late 1960s than they were for those born in the early 1920s.

Back to the UK. The “had it then lost it” story is also clear when we look at housing. Our previous research has shown that young people in the UK face much higher housing costs (relative to incomes) than older generations did when they were making their way in the world. In a large part this is driven by the rise and fall of home ownership.UK home ownership rates surged by 29 percentage points between the greatest generation (born 1911-1926) and the baby boomers, but this generation-on-generation progress has been all but wiped out for millennials. Their home ownership rate in their late 20s, at 33 per cent, is 27 percentage points lower than the rate for the baby boomers at the same age (60 per cent).

This fall between generations is much smaller in other countries in which housing is a key areas of concern such as Australia (a 12 percentage points fall from boomers to millennials) and the US (a 6 percentage point fall). As with incomes, the UK shows the strongest boom and bust – large generation-on-generation gains for today’s older cohorts followed by stagnation or declines for younger ones.

Let’s be clear though, the UK is a relatively good place to grow up. Ours is one of the most advanced economies in the world, with high employment rates for all age groups. In other advanced economies, young people have suffered immensely as a result of the financial crisis. For example, in Greece millennials in their early 30s are a shocking 31 per cent worse off than generation X were at the same age. In Spain today the youth (15-30) unemployment rate is still above 30 per cent, over three times higher than it is in the UK.

But, if everything is relative – before the parking lot came the paradise – then the UK’s situation isn’t one to brush away. Small income gains are, obviously, better than big income falls. But what matters for a young person in the UK today probably isn’t how well they’re doing relative to a young person in Italy but how this compares with their expectations, which have been shaped by the outcomes of their parents and grandparents. It’s no surprise that the UK is one of the most pessimistic countries about the prospects for today’s young.

The good news, though, is that it doesn’t have to be like this. In other parts of the world and at other times, large generation-on-generation progress has happened. Building more homes, having strong collective bargaining and delivering active labour market policies that incentivise work are things we know make a difference. As politicians attempt to tackle the UK’s intergenerational challenges, they should remember to look overseas for lessons.