Devolution

Midnight in Edinburgh with Adam Smith

It was midnight and raining as I walked up a deserted Royal Mile in Edinburgh ahead of our event to discuss the Scottish Government’s proposed legislation for community wealth building. Out of the gloom, standing in front of a moody St Giles’ Cathedral was Adam Smith (well, his statue at any rate!).

Often credited as the father of modern economics and a proponent of self-interest characterised as “the invisible hand”, Smith was just as passionate about morality. 20th century economists, of course, made sure to keep the morality out of economics and we are all (quite literally) the poorer for it.
“we need to change our economic system so that it works in the interests of people”
Smith’s understanding of economics as a social rather than a mathematical science was a revelation to me when I was studying at The University of Glasgow. But Adam Smith was only the beginning of my enlightenment – I have since been lucky enough to learn from economists across the world who also believe we need to change our economic system so that it works in the interests of people, rather than the other way around.

Owning the workplace, securing the future

At the heart of the debate on community wealth building is a fundamental question about ownership and who or what holds the keys to wealth in our society.

In the midst of record inflation and a crisis where too few people earn enough to be able to feed their children and put a roof over their heads, tackling the unequal distribution of wealth ownership will be fundamental in helping to build a better economic model longer term.

Levelling up paper falls way short of what is needed

This article originally appeared in Infrastructure Intelligence.

As an organisation with a keen interest in and focus on improving the health and vitality of local economies, the Centre for Local Economic Strategies (CLES) has much to say about the government’s levelling up white paper. Crucially, we believe that the document falls far short of the six tests we set ahead of its release.

Firstly, on its purpose. Levelling up is, at long last, evolving from a catchy electoral slogan and we now have an emerging basket of indicators for success. But it’s not yet clear how these national ambitions will translate into local delivery which supports opportunities for everyone. There is nothing in the indicators about addressing wealth inequality or poverty, for example.

You can’t level up from Whitehall

This article originally appeared in the Municipal Journal.

The Levelling up White Paper was finally published last week.  But despite 332 pages of what was a rather chaotic document (part text book, part policy, part analysis), when it comes to levelling up, it’s clear that Westminster think they are in charge.

The centrepiece of the White Paper were the 12 eye catching ‘missions’, many of which have been branded unrealistic by commentators.  However, if they are to have any chance of meeting just a few of them, they will need local government on their side.  A cursory glance down the list of missions and indicators shows that against nearly every goal, local government has a role to play.

The mission for mayors is to reimagine our economic future

The government must commit to giving them the powers they need.

This article originally appeared in the New Statesman.

With the establishment of new metro mayors and new powers for existing ones, English devolution looks as if it will be one of the winners of the Levelling Up white paper. But this new generation of mayors will be working in a very different economic context to those appointed back in 2015. Their mission must be to rethink and reimagine our subregional economies in order to build a more equitable recovery.

Regional and sub-regional metro mayors (not to be confused with directly elected mayors that cover one local council area, introduced under the previous Labour government) were touted as a lynchpin of the so-called “devolution revolution” of the mid-2010s – itself designed to drive growth across larger economic geographies. The theory was that new subregional tiers of governance, headed by directly elected mayors, would help to galvanise public and private support for new investment. The indicators for success were improvements in productivity and a closing of the gap between London and the rest of the UK.

Open letter to Michael Gove

Sarah Longlands, Chief Executive of CLES, has today written to the Rt Hon Michael Gove MP, Secretary of State for Levelling Up, Housing and Communities, imploring him to level up the UK by bringing wealth home to communities and businesses.

As the Conservative Party Conference kicks off in Manchester, Sarah urges Mr Gove to consider three approaches to “making the most of the wealth and assets that already exist in the country’s cities, towns, villages and regions”.

Dear Mr Gove

From Coronavirus to Community Wealth – Building Back Better in Northern Ireland

Just over a year ago, our organisations – the Centre for Local Economic Strategies (CLES) and Development Trusts NI (DTNI) – jointly penned Time to build an inclusive local economy – A Charter for Change, setting out a community wealth building approach to local economic development in Northern Ireland.

A lot has changed since then. Theresa May no longer occupies Number 10; Leo Varadkar is no longer Taoiseach; Stormont is back; Brexit is happening – bringing with it disruptions to trade in Northern Ireland. And we have suffered, and continue to suffer, the enormous social and economic turmoil brought about by Covid-19.
“For all too long, the economy in NI has not been working well for people and place.”
Amidst all this change, some things, however, have remained constant. Northern Ireland’s economy – even prior to the onset of coronavirus – had still not recovered fully from the financial crisis. For all too long, the economy in NI has not been working well for people and place. Poverty and inequality remain stubbornly entrenched, and NI suffers from the highest rate of economic inactivity across the UK – an unenviable record it has held for over three decades.

Levelling up needs to get real – but so does our response to it

This article originally appeared in The Municipal Journal

Levelling up is the latest buzz phrase being bandied about to address the stark divisions and variations in economic performance across the country. Whilst it is welcome that the government seems to be concerned by this unacceptable state of affairs, we must view with some scepticism a new phrase landing upon a problem which has deep and longstanding roots.

We have indeed fallen far – research undertaken by CLES has shown that many of the regions and nations of the UK have spent time in recession through recent years. We need to get real about levelling up – the scale of the challenge facing us, and the structural factors that underpin the problem.

We need to remake democracy

This post originally appeared on the website of  Compass – an organisation that fights for a more equal, democratic and sustainable society.

In 1934 the political historian RH Tawney said that the UK is ‘the oldest and toughest plutocracy in the world’.  Our democracy has been unjust for a very long time – too ready to doff its hat to privilege and wealth.

We have had years of scandals as regards cash for questions, the power of lobbyists, and dubious parliamentary expense claims. The recent Brexit debate and paralysis has further revealed the deep problems. Brexit has seeped into the rotten cracks of our democracy and parliamentary processes and made them chasms.  Our democracy and ‘mother of all’ parliaments is in bad shape, it has now been fully exposed:  arcane, archaic and addled.  Unable to represent properly and inchoate.  It sets the tone for our wider democracy and it is increasingly discordant.

Back to the future? Thoughts on the first UK2070 Commission report

The UK2070 Commission has released its first report: fairer and stronger: rebalancing the UK economy. The first of three reports, it represents the latest in a long line of policy efforts which have sought to tackle the deep spatial inequality which has plagued the UK as far back as the Barlow Commission of 1940. Does this report – or the Commission as a whole – offer a genuine, much-needed step change?

The starting point for UK2070 should be an acknowledgement that we live in unprecedented times: profound social, economic and democratic crises continue to unfold with a terrifying backdrop of ongoing climate emergency. Spatial imbalances are framed by this, as such  we need a fundamental redress to the UK social contract – this is not a 1979, 1997 or 2010 moment, this is more like 1945.

#Northernfail – It’s not just about oversight: it’s a question of ownership.

With the recently coined ‘northernfail’ hashtag now trending on Twitter, social media is awash with real time reminders of the unacceptable levels of service being provided by the Northern Rail franchise.

Anyone who’s used the service recently, or has talked to colleagues or friends who have, will immediately see why it’s been branded as a fiasco. Serious delays and cancellations are now ubiquitous; disruption, upset and misery are the everyday reality for users of this service.

The impact of devolution upon frontline services

At the Labour Party Conference in Brighton last month, CLES and APSE launched their report looking into ‘The impact of devolution upon frontline services’. This report set out to look at why Frontline services have been absent in devolution rhetoric to date. A surprise given the ‘localise’ ethos is key to the devolution deals.

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.