POWERHOUSE NEEDS LOCAL LEADERSHIP

 

George Osborne was in New York this week apparently. However, his ghost haunted the UK Northern Powerhouse (NP) conference with some suggesting that without him as Chancellor the NP project was doomed.

Well the formidable Lord Kerslake had the answer to that as he challenged business and local politicians to step forward to head up the project. The problem is that there is nothing tangible to head up. Transport for The North is the only statutory body covering the North of England. Progress on skills, growth, culture and productivity all depend on business and councils getting together on an ad hoc basis. We need a Council of the North to decide priorities and focus media attention. The NP also needs to get some achievements under its belt. Richard Leese, the leader of Manchester Council, rejected a suggestion of a big public relations drive to get people talking about the NP. By your deeds will ye know them, is a good maxim.

That said the conference has become the annual event where you have a real sense of the northern family getting together with business getting done in the exhibition hall. Although women were scarce on the speaker panels, two stood out. Judith Blake, the leader of Leeds, insisted that if we are to improve the skills base improvement needs to start in the primary school. The government have only given devolved powers after 16 so far. She also said that NP sometimes had too great an emphasis on transport. Housing and health mattered too.

Fiesty Kate Willard from Stobart also had skills in her sights, calling for the abolition of the Skills Funding Agency. She should be the next chair of the Liverpool Local Enterprise Partnership.

The conference saw the last appearance of Sir Howard Bernstein as Chief Executive of Manchester Council although when I used the word “farewell” to him, he assured me he would still be around. Watch this space. His political colleague all these years Sir Richard Leese was encouraged by the publication of the Northern Economic Review as a sign of NP progress but claimed work on the northern hub and trans Pennine rail links “were stuck”.

There were expressions of frustration throughout the two days at the long timescales for infrastructure projects. It is likely to be 2025 before new trans Pennine links will be fully operational. In the meantime however we won’t have to put up with the pacers, Arriva had good news on new rolling stock.

A number of people I spoke to expressed anxiety that NP was still too Manchester focused. Furness Enterprises told me that Barrow’s submarine contracts would be adding more GVA to the north’s economy than some cities. One Leeds businessman has begun a campaign to take a whole new look at the trans Pennine bottleneck. Lance Christie wants the M65 extended from Colne to East Leeds improving links to Leeds Bradford airport and opening a new gateway to the North West from the North East.

The effects of Brexit on the NP was on everyone’s minds with Ged Fitzgerald, the Chief Executive of Liverpool reflecting the current uncertainty. He said the vote was already having an adverse impact on the city’s universities. On the other hand, the port was now facing the right way for global trade as it had in the days of empire before the EU interlude.

Andrew Percy, the new NP Minister, convinced the conference that Theresa May was behind the Northern Powerhouse and claimed the concept was being recognised from Canada to China.

Spades in the ground might to be some way off, but as delegates left at least they could see the Ordsall Curve bridge which had been put in place while the conference was on to link Victoria and Piccadilly stations.

Follow me @JimHancockUK

 

 

 

A TERRIBLE YEAR FOR THE CENTRE LEFT

 

THE CENTRE FALLS APART.

Let us hope 2016 represents the darkest hour for the centre left in Britain, Europe and the world. It is not just the defeats suffered by people like Hillary Clinton and Italian Prime Minister Matteo Renzi and the victories of Donald Trump and re-election of Jeremy Corbyn. It is the inability of the centre left to have any convincing answers to the problems of globalisation, terrorism and immigration. Because of this, Leave won in Britain, Putin was strengthened in Russia and President Obama became impotent in the Middle East.

2016 has seen a weakening of belief in organisations that have become part of the post 1945 architecture particularly the European Union, NATO and free trade. Comparisons have been made with the 1930s. They are exaggerated because we do not, yet, have large overtly fascist parties backed by tacit or overt military support that prevailed in that troubled decade. What we do have is a growing populist movement headed by politicians from right field offering to sweep away the old parties with their jaded remedies. The populist right offers simple solutions to complex issues to voters disillusioned by politicians who have failed to deliver for all. The other valid comparison with the thirties is even more worrying. These populist politicians have people to blame, usually immigrants. This has led to increases in racial abuse and worse.

The demand for instant solutions is made worse by social media with its opportunities for “echo chamber” fervour and vile abuse. There is a weakening support for democracy. The warning signs of how quickly things can disintegrate came with the razor wire fences erected in the Balkans against immigrants and refugees.

Our own EU Referendum showed how foolish David Cameron was to put a highly complex issue to a binary vote. His departure is one of the best things to happen this year. As the Brexit crisis drags on he will be increasingly be seen as one of the worst Prime Ministers in our history.

The centre left needs to assert the value of international and domestic cooperation, express enthusiasm for the European ideal, point out that we are in a global world whilst developing policies on immigration, a tough approach to tax havens and bank control.

SHADOW OVER THE NORTHERN POWERHOUSE.

The year has seen major figures at the heart of this important project leave, or prepare to leave, the stage. The Chancellor George Osborne paid the price for calling the EU Referendum, although he has formed the Northern Powerhouse Partnership think tank. That’s not to be confused with the Northern Powerhouse Partnership set up by Andrew Percy, the Minister in charge of devolution to the North.

There was a period of uncertainty about the government’s commitment to the Northern Powerhouse which saw the sad loss of Lord Jim O’Neill of Gatley who’d been a strong advocate of more power for the cities. We are also now in the final months of Sir Howard Bernstein as Chief Executive of Manchester Council who has helped shape the major devolution deal in his city and in wider areas.

With government uncertainty and local tensions a complex patchwork of devolution has developed during 2016 across the North. Greater Manchester has most powers with the Liverpool City Region resolving some of its internal difficulties to gain a reasonable devolution package for the incoming city region mayor.. Leeds has not resolved its issues with surrounding districts. HS2 was confirmed but despite the growing importance of the organisation Transport For the North, the Secretary of State, Chris Grayling, is saying he’s waiting to hear about the plans we have for improving East West connections over the Pennines. They’ve been around for years!

People need to see practical benefits from all this and want a say in what has been a behind closed doors exercise. The centrifugal forces of London are always there.

Despite everything I hope you have as merry a Christmas as possible.

Follow me at www.jimhancock.co.uk

NORTHERN POWERHOUSE “MAY” BE DOOMED

 

The Northern Powerhouse had the perfect backer. George Osborne was Chancellor, the second most powerful person in the government. It was his project and he could make reluctant civil servants (they always are when it comes to devolution) do his bidding. Finally he represented a northern constituency.

The new Prime Minister has set up an economy and industrial strategy committee. It held its first meeting this week and the term Northern Powerhouse (NP) wasn’t mentioned apparently. This may be because Theresa May’s antipathy to Osborne is so great that she is indulging in a strategy that has been so debilitating for northern devolution down the years. I refer to the chop change with every passing minister, leave alone government. There is never the long term commitment to one plan to allow business to invest with any degree of certainty. There was a perfectly satisfactory structure of Regional Development Agencies in place but the Tories, with shameful silence form the Lib Dems, tore it all down.

All may not be lost however. It appears Mrs May wants to help all towns and cities in the North. There is a valid criticism that the NP was very city focused. The voting pattern in the EU referendum showed cities like Manchester and Liverpool backing Remain whereas suburban and rural communities voted Leave. They wrongly felt the EU was doing nothing for them but they may have concluded that about the NP as well.

Perhaps the economy and industrial strategy committee will recognise that the Northern Powerhouse needs to address the needs of all the people in the North East, Yorkshire and the North West and restore the organisations designed to achieve some urgent tasks.

They include improving people’s chances of owning a home (this week’s figures were shocking for the North),northern productivity, getting on with transport projects like HS3 east west rail connections and most of all raising our skills. A massive biomedical research centre, the Francis Crick Institute is opening this month…..in St Pancras London. We need the skills base to make it possible for such investments to be made north of the Trent. We have a huge advantage over London in terms of house prices, the quality of life and commuting costs. If only the NP could deliver the skill base.

The NP needs champions at the highest level. Andrew Percy doesn’t do it for me. He is the MP for Brigg and Goole so is (just) one of us but the new Northern Powerhouse Minister is even more unknown than his predecessor James Wharton. We must hope that Lord O’Neill of Gatley stays in the government working on the NP. He was angered about the Hinckley nuclear power station “pause”. Although nothing to do with the north, it seems George Osborne’s “golden age” of cooperation with the Chinese is over. The idea had been for substantial Chinese investment to help finance not just the Hinckley project but the NP too. If that commitment is lessened, Mr Percy will need to deal with the already existing criticism that the NP is all talk and no financial heft.