Austerity

Building up from the local

This article originally appeared in the Municipal Journal.

As local government gears up for the annual budgeting process, there is still no certainty the new government in Westminster will be prepared to grasp the nettle on local authority finance. However, there is a huge opportunity to use investment in local government to help deliver Labour’s mission for growth.

Revaluing and restoring a strong and accountable local state will be essential if we are to ‘fix the foundations of Britain’s economy’.

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Social care needs proper funding, not Big Society 2.0

This article originally appeared in The New Statesman.

The language of “community power” is too often used to paper over the cracks of ten years of local austerity, writes Associate Director for Policy, Tom Lloyd Goodwin.

“The Conservatives are the real party of public services.” This was one of the many bold claims from the dispatch box during this year’s autumn spending review. But in the wake of the now-published adult social care reform white paper, this promise rings increasingly hollow.

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Raising Council Tax won’t fix local government

This article originally appeared in Tribune.

A decade of austerity has decimated local authority funding and left many councils in crisis – but hiking regressive Council Tax isn’t a real solution. Ahead of the today’s budget statement, CLES’s Rachel Bentley and Victoria Bettany have written for Tribune explaining why.

This week’s Budget will be make or break for councils across the UK. It’s set to be a true test of whether the government really cares about the poorest in our society, or whether it’s content to continue passing off responsibility entirely to local authorities, whose capacity to help has been diminished by a decade of austerity.

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We need a generous state forever

For years we have been told that expansive government intervention is not a feasible or desirable solution to our major social, economic and environmental ills.

Yet, the unprecedented government intervention of the last three weeks has turned decades of orthodoxy on its head. The state, maligned for years by successive governments, is back. In this, it has re-assumed its fundamental purpose: to insure us against a life that is, as in Hobbes’ Leviathan, “solitary, poor, nasty, brutish, and short.”

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Things will not get better: We need radical action on adult care and children’s services

This article originally appeared in The Municipal Journal.
“Given the longevity and the often fruitless talk about these crises, the time has come to accept that we now have a massive state crisis, which is grounded in inaction.”
Talk of our local public services being in crisis is now sadly an embedded part of our local government conversation. Exacerbated by nearly 10 years of austerity, the fact that rising social need is and will not be met by adequate provision is now the condition of many services including adult care and children’s. Given the longevity and the often fruitless talk about these crises, the time has come to accept that we now have a massive state crisis, which is grounded in inaction.

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The Rich List reveals that we need wealth for all

The spectacle of this year’s Sunday Times Rich List has revealed, yet again, that Britain’s richest are getting richer still. Published yesterday, the list shows that Britain’s 1,000 richest individuals and families are sitting on record wealth of £771.3bn, up £47.8bn in a year. The UK’s billionaire count has climbed to 151, up six on last year. The threshold at which the super-rich make the list has risen £5m to £120m.[1]

In other news (from the same paper on the same day) we learn that an emergency food bank has been set up in the Whitehall offices of a government department, after cleaners and other support staff became the victims of a payroll blunder by one of Britain’s biggest outsourcing companies.[2] The human cost of this incident adds to the growing number of people in the UK who cannot afford basic needs such as food.[3]

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Rebuilding the local economy in Britain’s Seaside Towns

If ever there was an example that epitomises the misery imposed by market neo-liberalism, it’s the plight of Britain’s seaside towns.

Decades of agglomeration has led to the incubation of ‘superstar cities’ such as Manchester, leaving places like Blackpool and Rhyl deprived and depleted. As CLES reported on in 2017,  the last vestiges of their seaside heritage are now enveloped by a coil of ever-tightening social and economic decline.

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We need a new social contract. A local one

A lot has changed since the post-war founding of the welfare state, and the social contract that went with it is eroding. Austerity has undoubtedly changed things, and so has devolution. CLES CEO, Neil McInroy argues that to build social justice, we need a new social contract: and that this includes one that is local to place and community; one that balances the strengths of the private, public and social sectors; one in which we make sure businesses do their bit.

Devolution is an opportunity yet to be fully realised. Devolution to some areas of England has been broadly focused on local economic growth and managing austerity through public sector reform. But with more power to local areas and the advent of Metro Mayors there is potential to forge a new relationship between business, the local state, social sector and citizens—a new local social contract.

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  • RESEARCH

    Planning for social good 

    25th May 2017
    664.9kB     .pdf
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    • Metro mayors: three ways to reset local strategy

    Next week, on May 5th, newly elected metro mayors in six combined authorities begin their first day in office. This is an historic opportunity to reset policy and address longstanding economic and social issues, as Neil McInroy and Victoria Bettany outline below.

    To date, policy opinion and mayoral manifestos have offered a laudable, but often limited, set of tactical policy innovations, including cheaper transport for sections of the population, actions around a living wage, housing affordability and tackling youth unemployment. Given the scale of the challenge, these may not be enough to successfully reset strategic policy. Rather, three key things need to happen.

    1. Re-organise the economics of devolution

    Financial investment and return has dominated the economics of devolution, hence the focus on property development and land value appreciation in city centres and other hotspots. Indeed, this focus has been over-egged in devolution deals through economic agglomeration and ‘earnback’ on growth. If this trickle-down approach is retained, we can expect the deepening of geographic divides across the combined authorities, with little significant increase in new or decent jobs. Of course, a focus on financial return is a universal component to city success but it should only be a part of the mix, and not take undue precedence over other forms of economic development and social investment.

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    Whatever happened to economic development?

    Budget day for the Centre for Local Economic Strategies (CLES) used to be one of intrigue and relative excitement. In the 2000s, the Budget was supplemented by a specific annex focused on economic development and regeneration. Indeed, the Budget was where we saw exciting new renewal initiatives announced; reviews of sub-national economic development formulated; and new duties and funding initiated.

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    What should a modern industrial strategy look like?

    Does the modern industrial strategy published this week offer the radical departure our economy requires? While the Centre for Local Economic Strategies (Cles) welcomes the first industrial strategy to be published in more than a generation, we are concerned it will do little to fundamentally alter the fortunes of the people and places that have been ravaged by each wave of industrial restructuring since the late 1970s.

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