Growing the economy outside London

This article is from Our Labour, Our Communities – a pamphlet of 10 essays by Labour PPCs, published by LabourList in partnership with Lisa Nandy MP.

All politicians believe (or claim to believe) in certain things, from regional devolution to a welfare policy that works. However when it comes to stepping up and making the big changes that may lead to less power in Westminster (or an unpopular decision) that conviction wavers.

Over the next ten years our leaders will decide what kind of a country and economy we will have for the next fifty years. How will we respond to climate change? How do we compete with and trade with emerging economies? Will we be a country that tackles inequality or lets it get worse? All of these questions must be answered by the next government. This is why Labour must win the election and build a party not content to make small differences fiddling at the edges and hoping for improvements but one prepared to make major changes to change the way our country works.

Nothing typifies the failure of politicians to act more than the failure to address the economy outside of London.

Our regions matter

The area I grew up in – and hope to represent in Parliament – is a wonderful place located between Leeds and Manchester. It’s made up of several smaller towns that all have different characters, and the small businesses in the area are just as diverse (indeed Calderdale council is one of the best in the country for small business start ups). These firms, which often deliver high end products, are the background of our local economy. From jewellery to washing machines, tech startups and established technology companies – and a healthy smattering of tourist enterprises – the area is booming. Indeed it has even been suggested by some that the Calder Valley become the UK’s second city.

However even as one of Calder Valley’s strongest supporters, I’d never argue that it’s somewhere that’s easy to travel to. Local train infrastructure hasn’t received the investment it needs, and that’s bad for business locally  – not least because it’s far too difficult for many local commuters. A small local project was recently completed, yet the trains never arrived as there was a need for the rolling stock in the South of England. Over 89% of commitments to spending on rail in the UK is currently committed to projects in London and the South East (Cox & Davis, Still on The Wrong Track 2013) whilst areas like mine fall behind.

And it’s not just on infrastructure where Calder Valley lags behind. Whilst the average family is £1,600 a year worse off under the coalition Yorkshire and Humber families are £2,000 per year worse off. This inequality is not just bad for the North, it also drives people to London in search of work, contributing to the capital’s housing bubble and subsequent ridiculous property prices.

Our country will only be able to punch it’s weight when our regions are successful. However the strength of London as a city has led to a lopsided economy. In comparative economies with successful regional bases, the second city is generally around half the size of the largest (for example, Frankfurt is around half the size of Berlin). Yet in the UK, London’s ten million strong population dwarfs all other cities, with none even a third of its size.

Regions outside London and the South East don’t have an advocate. While London has a Mayor and Scotland and Wales have a regional bodies who fight for investment, there is no person or body in the North that offers similar advocacy and strategic direction.

The more responsibility people in regions have for developing our own strategies the better for our economy. This government has taken us in the wrong direction with the closure of RDAs and Government Office Network. Councils need the power to run make decisions and regions need more control.

From training to industry and from education to transport, people who understand the local economy will be able to make the economy work for their area. By doing that, we can maximise the potential of the country as a whole as well as maximising the potential of communities like mine.

Josh Fenton-Glynn is the PPC for Calder Valley