Devo is not a fig leaf for austerity. rejecting it will scupper social progress

By Mike Emmerich, Director

To paraphrase a certain politician, is no deal better than a bad deal?

That’s the question many in South Yorkshire will be scratching their heads over following the apparent demise of the Sheffield City Region’s push for devolution. For many, the decision by Barnsley and Doncaster to walk away represents a huge lost opportunity. But some may be feeling a certain sense of relief, coupled with a ‘told-you-so’ satisfaction.

I’m writing this having been drawn into a debate with academics Martin Jones and David Etherington concerning a recent blog post based on their report, Devolution and Disadvantage in the Sheffield City Region. The original paper is good and makes many valid points. But my concern was, and is, that in some circumstances analysis of a kind found in the subsequent blog can overcomplicate matters and play into the politics of the issue in a way I fear we might live to regret if followed to its logical conclusion.

Teething troubles for Combined Authorities must not be mistaken for failure

By Mike Emmerich, Director

Britain loves nothing more than to build up people and institutions in public life and then to participate in the spectacle of their destruction.

Not even three months since the election of a crop of new metro mayors for Combined Authorities across England, we’re already seeing the process start. The National Audit Office (NAO) report in early July said little more than that it is early days for Combined Authorities and much remains to be done to make a success of them. Yet some of the reporting of their findings seemed gleefully to anticipate their failure.

A weak and wobbly centre creates opportunity for enterprising cities

By Patrick White, Director

 

This week’s Queen’s Speech was notable for its absences. Many of the least popular election pledges – widely blamed for the Conservatives’ disaster at the polls – were summarily junked.

Denounced by Labour as “threadbare”, Theresa May’s programme for the next two years certainly seemed to come from a government with few new policy clothes. Coming the same week as the start of the fractious Brexit negotiations, it’s becoming clear that serious structural reform for local government will now be put firmly on the backburner. Any legislation that might attract even a murmur from backbench dissenters is unlikely to be contemplated.

Good Morning Minister. No change, all change

Civil Servants, just like nearly everyone else in the country, was expecting a Conservative government to be returned to power following last week’s General Election.  Few, if any, were expecting a change in Prime Minister.  Some may have been pondering the pros and cons of a reshuffle, but staff in most Departments were working on the basis that most, if not all, their Ministerial team would remain unchanged.

Spring Budget 2017 Review

By Ben Walters

This was the last spring budget (by current plans), and it was fairly muted in tone. That was expected: with all the uncertainty surrounding the UK economy, the Chancellor had no desire to add even more moving parts. But despite the lack of major announcements, there was something of interest for cities and LEPs.

We have also seen one of the fastest and most significant u-turns of a recent Budget. The reversal on self-employment NIC taxation after one week has been damaging to the Chancellor’s standing and will undermine the ability to reform self-employment and terms & conditions in the medium term. It creates a shortfall of £2 billion which will force the government to have to find these savings elsewhere. For Philip Hammond’s first budget as Chancellor this could have an effect in changing the balance of power in the Cabinet, and risks making the Government look weak and vulnerable to back bench pressure for policy change.

Industry Strategy - Two Cheers

BY Mike Emmerich

The much awaited Industrial Strategy Green Paper has arrived. The Metro Dynamics team have run the rule over it, looking at what’s in it and what it means. Two cheers rather than three is our view. It’s a start and not a bad one at all, but it’s what happens next that matters most.  And that needs local places as much as central government to be bold with their ideas and proposals.

It’s hard to argue that the Green Paper is, in essence, wrong. But it’s equally hard to argue that the Government or indeed places have yet to rise as fully as we need to the challenges facing post-Brexit Britain.  On the one hand this is fair enough, those implications are not yet clear.  But the nation is hungry for a new approach to business and growth. The Government has fed us a little, and yet as we digest the voluminous Green Paper sandwich it has offered, we’re left wondering: where’s the meat? The Green Paper is very necessary indeed. But is it sufficient?

Green paper - Industry Strategy

By Ben Walters

On the 23rd January, the government released a green paper on its new Industrial Strategy, as a public consultation. This is the first major strategy since the new government, and further clarifies the changing economic approach that will be taken over the coming years. It continues an increase in interventionist policies (such as the 2016 Autumn Statement), as well as a focus on regional inequality and productivity. While the main influences of these policies (Theresa May, Greg Clark and Phillip Hammond for the Autumn Statement) of the strategy were not ‘Leavers’, they are all seen as governments response to the referendum, and how to adapt the economy to best meet the challenges and opportunities this presents. 

Inclusive growth: the new challenge

By Ben Lucas

At the Core Cities Summit last week, city leaders were understandably frustrated by the suggestion that inclusive growth is on the agenda because of the EU referendum.They didn’t need Brexit to tell them that the economy is not delivering for their residents. But, as chief market strategist for Britain and Europe at JP Morgan Asset Management, Stephanie Flanders, said to those leaders, Brexit has created a unique opportunity to change our economic model

Prime minister Theresa May has said her number one priority is to develop an ‘economy that works for everyone’. In her speech on becoming prime minister she asked to be judged on the extent to which she succeeds in this.

Metro Dynamics supports the newly launched West Midlands Land Commission

Metro Dynamics are acting as strategic advisor and secretariat to the West Midlands Land Commission (WMLC). The role of the West Midlands Land Commission is to take a fresh look at matters affecting the West Midlands' land supply.

The commission will provide independent advice and recommendations to the authority as it seeks to secure an improved and balanced supply of land to meet its goals for economic growth, new jobs and housing.

Dark Fibre Cities – the upside of Brexit

By Caroline Haynes

There aren’t a lot of jokes about regulators. Here’s one. A regulator marches into a compliance manager’s office and slams down a stack of 3,331 complaints. He yells that the (banking/pharma/telecoms) company has until next Friday to respond. “And if we don’t?” “You’ll have 3,332 complaints” the regulator responds sheepishly and slinks out.

Last week, yet another UK regulator followed the script of that joke. Following an extensive investigation, Ofcom, the communications regulator, has decided to leave BT’s quasi monopoly over the UK’s broadband infrastructure essentially unchanged. This is not just bad news for the country. It is really bad news for UK cities.

City leaders need to channel spirit of Chamberlain

By Ben Lucas

This is a moment of great risk and opportunity for British cities.  Post EU referendum, post Cameron and Osborne, the stakes have never been higher.  Cities have patiently and persuasively made the case for rebalancing growth and power, and for devolution to combined authorities with Metro Mayors.  They now face some big challenges, as we set out in Adieu: the impact of Brexit on British Cities - on EU funding, trade, investment, universities and the progress of their devolution deals.

The Search for Inclusive Growth

By Mike Emmerich 

 

To the ambition of growth, long the goal of local policy makers, have been added a variety of qualifying adjectives over the years. Sustainable growth, having once been a fad has now entered the lexicon as an established term of art referring to a growth imperative that is environmentally responsible yet also in some sense socially responsible, building communities that people want to live in. Today, our concern is with socially inclusive growth.

A call for greater fiscal autonomy for our cities

Core Cities today released its report 'A call for greater fiscal autonomy for our cities', authored by Metro Dynamics.  Read the new report here and Core Cities' response here.

Cities need a wide range of fiscal freedoms to deliver economic growth. Business rate localisation is a welcome step, but is not without risk, and should be introduced as part of a programme of wider fiscal reform -  new report from Core Cities UK and Metro Dynamics.

Has our infrastructure become too expensive?

By Sarah Whitney

It has been widely reported that Sir Jeremy Heywood is running his slide rule over HS2 reflecting concerns within Government that the budget for the project could be exceeded.  The cost of HS2 has gradually risen over time, from £32.6 billion in January 2012 to £55 billion in November 2015, up from the previous estimate of £50 billion set two years earlier.

This increase is a particular issue, because the vast majority of the cost of building HS2 will fall on the taxpayer, with perhaps a proportion of those costs recouped on completion by the letting of a contract to operate the line. Therefore, it should be no surprise that a project of this magnitude should be subject to periodic review by one of our most senior mandarins.