‘Give mayors more power to tackle economic challenges in their regions’

Last week I attended the Creative Industries taskforce in London. It was assembled by government to develop a plan to turbocharge growth in the creative industries, one of the priority sectors in the Industrial Strategy.

Whilst I was representing the mayors, I was also there to champion investment in the creative sector outside of London and South East.

My argument is that we need creative industries in the regions to grow much faster. Only that way will we ever close the economic disparity gap and grow the creative industries across the whole country.

Sadly, inequity of funding and investment isn’t only a problem of one sector. And if growth is the exam question, relying on only one region of the country to power economic growth isn’t the right answer. We need a change of approach.

We need a course correction

So the report published this week by JP Spencer and Labour Together could not be more timely. It perfectly demonstrates how government spending has been skewed to some parts of the country, laying out what needs to be done to change it.

And the numbers are pretty eyewatering.

The report shows that England outside of the Greater South East has missed out on over £100bn of investment in economic growth over recent years, and without action that trend will only continue.

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£100bn of investment that would’ve increased wages, diversified opportunities and increased the quality of life for those living outside of London and the South East, particularly in the North.

How can it be right that spending on economic development like transport or science and technology was £1,025 per person here in Yorkshire and the Humber, compared with £1,589 per person in the Greater South East? That’s 50% more to grow the economy in one part of the country than the other.

We need a course correction, and I want to work with this government to make it happen.

The status quo isn’t working for West Yorskhire

As mayors, we want our economies to be able to stand on their own two feet. The recommendations in the report give us a roadmap to do that – reform to the planning system, rebalance public spending to link it to local growth plans, while bolstering powers to mayoral authorities with fiscal devolution.

But we have to get a move on.

The status quo isn’t working for West Yorkshire, but I’m not sure it’s working for the rest of the country either. You only have to look at house prices compared to average incomes in the South East to see that this economic model has run out of road.

That is why I was pleased to welcome Keir Starmer to Huddersfield just a couple of weeks ago. To hear the Prime Minister announce further backing for the Transpennine Route Upgrade, meaning more trains and new stations on the line connecting Manchester to York through Leeds and Huddersfield, was heartening.

It’s also good news that government supports the next steps for West Yorkshire Mass Transit, delivering on my promise for spades in the ground by 2028.

The Prime Minister understands that by backing our ambitions here in West Yorkshire and the wider North, the whole country benefits.

But to deliver this, we must collaborate.

The Spending Review will be a key moment for our country

Working with our five councils in West Yorkshire, I published a draft Local Growth Plan setting out how we will use our powers to fulfil the potential of all the people and business of our area.

Closing the £11bn output gap in our region with the UK average will mean 18,000 additional businesses and 40,000 more jobs. By focusing on our strengths like manufacturing, health and life sciences and culture we can build a prosperous West Yorkshire with good jobs for all.

And from next April, West Yorkshire will get an ‘integrated settlement’. This means more local control over funding decisions on areas like transport, skills and housing so we can deliver better outcomes with less bureaucracy set by Whitehall.

Earlier this week, we saw London Mayor Sadiq Khan get new powers under a pilot scheme to call-in licensing applications in a move to support London’s night-time economy. Fiscal devolution and a single settlement that is available to all Mayors will go a long way, but we also cannot afford to shy away from also giving mayors the tools to tackle the bespoke economic challenges in their regions.

For example, I know that with control of local rail services I will be able to integrate our transport network and join up the cities and towns across West Yorkshire, opening up economic opportunities for the people who live here

And with better transport key to growth it was a pleasure, alongside Oliver Coppard, Mayor of South Yorkshire, and David Skaith, Mayor of York and North Yorkshire, to sign the White Rose Agreement at Selby Abbey last month. A document that outlines our joint commitment to good growth, promoting Yorkshire, better transport, and keeping communities safe, with Lord Blunkett reviewing our plans to improve rail connectivity across the whole of Yorkshire.

And while our ambitions are big, to deliver mass transit, take control of our buses, create good jobs, support net zero and more, they will need the backing of central government. The Spending Review in June will be a key moment for our country, setting our spending plans for the remainder of the parliament.

These plans must address the historic underinvestment in our region – ending the huge gap in spending per person on growing the economy – for the good of West Yorkshire and the whole country.

It’s time to be brave and do things differently. The size of the prize demands it.

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