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