1914-2014 THE SAME MISTAKES?

History is my passion so my thoughts are constantly going back to what people were thinking and doing as the summer of 1914 started.

They certainly weren’t thinking that an a world war would be under way before the leaves fell. The conflict they were worried about was in Ulster where the loyalists were threatening rebellion over Irish independence. At home the suffragettes battle for the vote commanded the headlines.

Very few saw the danger presented by an interlocking series of treaties between the Great Powers. There hadn’t been a general war for a hundred years since Napoleon’s time.

Now let’s come forward to this summer. Once again there is tension in a part of Europe most people know little about. We are focused on the economic recovery, the rise of UKIP or just running our lives. We have had peace for 70 years, partly because of NATO, an interlocking treaty that guarantees mutual support for the Baltic States and Poland should they be attacked.

Where is our Gavrilo Princip, the obscure Serb who’s assassination of the heir to the Austro-Hungarian throne triggered the huge conflict? He may be found amongst the pro Russian militias currently destabilising East Ukraine. One of them bragged on TV the other day about not only taking East Ukraine but eventually taking Brussels.

A foolish and ludicrous piece of bravura of course but it made me wonder if we are fully aware of the potential danger we are in a hundred summers on from 1914.

Russia wouldn’t be reckless enough to invade East Ukraine would it? Well don’t be so sure. The Ukrainian army is showing signs of getting off its knees. If it inflicts serious casualties on the pro Russian militias, will Russia stand back?

Well Vladimir Putin has already annexed the Ukraine and lost his place at the table of the G8 world leaders.

Most significantly of all he is leading a country that is relying on military shows of strength to mask economic weakness at home. It is the classic formula for recklessness.

So suppose he seized East Ukraine. NATO would not react because Ukraine is not a member. What might well happen is a destabilisation of the Baltic States. Russian minorities in Latvia, Lithuania and Estonia could well start clamouring to be reunited with Mother Russia. What happens if those revolts are put down by force. Would Putin be deterred from intervening by the fact that they are members of NATO? Probably, but only if America, Britain and France made it clear we would be prepared to start World War 3. Would our politicians have the mandate from the people to make such a threat? Can you see St Peter’s Square in Manchester or St George’s Plateau in Liverpool full of people singing “We don’t want to fight them, but by jingo if we do?”

No, me neither. After all this is 2014 the age of the computer, social media and comfortable living. The army does our fighting. The days of mass mobilisation are over. But if Putin truly believes this, then we would be in great peril. The dangers of miscalculation that were present in that summer a hundred years ago are present this summer.

THE UNFINISHED MAP OF LOCAL GOVERNMENT

 

 

Forty years ago this week local government boundaries across the North were ripped up in a major reform of how we are governed locally. It was meant to herald a more efficient system of administration with functions being carried out at an appropriate level reflecting communities that people could identify with.

 

In fact the last forty years has seen continued tinkering with the system, the scrapping and then the reinventing of city regions and, in some areas, a refusal of people to come to terms with the 1974 settlement. There is still much to do.

 

In 1974 local government across the north consisted of a patchwork of county boroughs covering the main population centres with a series of small urban and rural councils around them with boundaries that did not reflect the urban expansion since the Second World War.

 

In 1969 very wise man called Lord Redcliffe-Maud proposed that most people should have one tier of local government. His idea was rejected but it remains the obvious solution to this day. Instead the Heath government decided to create metropolitan councils for West Yorkshire, Greater Manchester and Merseyside. They dealt with transport, police, fire and structural planning whilst metropolitan districts handled schools, housing, social services and collected the rates.

 

The old shire counties had chunks taken out of them. Yorkshire lost Saddleworth to Oldham and Todmorden to Lancashire. The Saddleworth White Rose Society still campaigns for the old historic boundary. Cheshire lost Wirral to Merseyside. Lancashire,who’s southern border had been the Mersey, lost communities from Stretford and Whiston and Ashton and Droylesden to the mets and in the North the Furness area to Cumbria. Perhaps most contentious was the incorporation of Southport into Merseyside. A Southport Party campaigning to return the resort to Lancashire has enjoyed poll success in Sefton Council elections.

 

 

 

Cities like Manchester were never happy with an upper tier authority over them and shed few tears when the metropolitan counties became collateral damage in a war between Margaret Thatcher and Ken Livingstone, leader of the Greater London Council in the mid 1980s.

 

There was turbulence in the shire counties too. In Lancashire, Blackpool and Blackburn became all purpose authorities in 1998. It was typical of the piecemeal nature of local government reform in recent decades. Why wasn’t Preston given unitary status? Why have 12 district councils in Lancashire and yet in 2009 reduce the number of councils in Cheshire to two?

 

There was a moment of hope that a real overall coherent vision would be given to all this when John Prescott proposed regional assemblies to democratise the work of the Regional Development Agencies. It would have required unitary local government throughout the North, reducing the number of politicians not increasing them as critics of Prescott mislead people into believing.

 

Prescott was replaced by the current Local Government Secretary Eric Pickles who vowed to oppose any more reorganisation. In fact under the current government we have seem the rise of Combined Authorities in Greater Manchester and soon in Merseyside and West Yorkshire. They are reinventions of the metropolitan councils of 1974 recognising that there is a need for strategic thinking in the mets.

 

In Greater Manchester the antagonisms of 1974-86 have been avoided. The jury is still out elsewhere particularly in the Liverpool City Region.

 

A plethora of initiatives have been launched by this government. Local Enterprise Partnerships, elected mayors, City Deals etc. It is a confusing mess which people don’t understand and have little democratic control over.

 

Forty years on from the reform of 1974 we await the government with the guts to override petty local politics and introduce root and branch reform of our constitution from the House of Lords to parish council.

 

 

 

STAND ASIDE MARY PORTAS. WHAT SHOPKEEPERS REALLY NEED.

 

 

 

 

BUDGET PREVIEW: BUSINESS RATES

 

Not only is the North having to give much needed train carriages to the South but small shopkeepers in Leeds and Liverpool are subsidising retailers in London’s Bond Street.

 

The Chancellor should use next week’s Budget to announce wholesale reform of business rates. They are based on the rental value of properties. Since the last revaluation, rents in London’s West End have gone up 72%. In Greater Manchester they have gone down 47% but rateable values have stayed the same. Not only has this led to the decimation of businesses in many of our out of town shopping streets but it means that London’s businesses are paying far less than they should be.

 

To add insult to injury the government has postponed the review due next year until 2017. Ministers claim 800,000 of 1.1 million businesses will benefit. Well not many of those will be in the North. Greater Manchester Chamber of Commerce says their members are paying business rates set at the height of the market in 2008.

 

There are other factors driving demands for reform. Retailers are under pressure from internet firms who pay no business rates for their “shop fronts”. Furthermore a committee of MPs is questioning if the £2.3m allocated to the Mary Portas schemes has been spent. Sorry Mary but your high profile trips to our deserted High Streets aren’t the answer to this problem.

 

The House of Commons Business Select Committee wants the Chancellor to examine whether retailers taxes should be based on sales rather than rateable value.

 

BUDGET PREVIEW: OTHER MEASURES.

 

Next Wednesday won’t be an easy day for Ed Balls. On past Budget days he’s been able to taunt the Chancellor with gestures indicating the economy flat lining or falling living standards. This time most of the economic indicators are in George Osborne’s favour. This Budget is his last real chance to set the economic framework against which the General Election will be fought.

 

The British Chambers of Commerce say the size of the British economy will be back to 2008 levels by the summer and they even foresee interest rates of 0.75% by the end of next year. After five long years of 0.5% flat lining that would be a symbolic sign of real recovery.

 

So what will the Chancellor do with this improved economic outlook? An easing of the remorseless cuts in public spending looks unlikely. The recession’s legacy of a high deficit remains and the international picture offers many uncertainties.

 

He should take more steps to deal with youth unemployment, although in truth many measures have been tried.

 

There’s a bit of a campaign running to merge National Insurance and Income Tax on the basis that they amount to the same thing. But with 16% of people paying 40% Income Tax and National Insurance at around 12%, it would become obvious that a lot of people are paying more than half their income to the state.

 

And finally don’t forget that the £10.000 annual tax free allowance before paying income tax kicks in next month. The Lib Dems insist this was their policy forced on a reluctant Chancellor. Politically it will help to bind the Coalition together for the final 12 months of this parliament where the Finance Bill implementing this Budget will be part of a pretty thin Queen’s Speech.

 

 

 

 

 

 

ARE LEEDS AND LIVERPOOL AIRPORTS GROUNDED?

 

 

Is it healthy for the northern economy for Manchester Airport to be so far ahead of the others?

 

In Leeds there are fundamental questions over whether the airport is in the right place whilst Liverpool John Lennon is still reeling from the double whammy of losing KLM and some of its low cost business to Manchester.

 

Plans for HS2 have reignited the debate over the location of Leeds-Bradford airport. Leeds Council leader Keith Wakefield has launched a major debate on the future of the city region’s transport system. Nothing is ruled out apparently including a new airport in a more convenient location. A cheaper solution would be a rail link from the airport to the centre of the city. Not surprisingly that’s the solution suggested by Tony Hallwood, marketing director at Leeds-Bradford airport. However he wants support from the city region and wider to build the rail and road connections fit for the 21st century.

 

On Merseyside John Lennon Airport(JLA) has suffered a series of blows. Plans for a tram link into the city began to disintegrate exactly ten years ago. KLM pulled out severing the airports connection to the global hub of Amsterdam. Most serious of all Manchester has been poaching some of the budget airline business that used to give JLA its unique selling point.

 

The other thing about JLA is that the customer experience isn’t always great. I recently hosted Downtown’s programme on City Talk and asked my guests about the decline of JLA. One referred to having to stand in the rain waiting for connections, another said she lived and shopped in Liverpool but the one thing she looked to Manchester for was its airport. She put this down to the danger of the downward spiral of expectation. With services being cut there was an assumption that Manchester would have the destinations so JLA lost out even if in fact the flights were still there.

 

On the same programme Cllr Nick Small called on the airport to go for more full service operators particularly to the Middle East and Turkey and to reduce its dependency on the low cost airlines.

 

Ryanair expected 200,000 new passengers for Liverpool last year but only got half that. Civil Aviation Authority figures shows that JLA was one of only two major UK airports to lose passengers last year.

 

And yet 90% of people living on Merseyside say they would rather fly from Liverpool so it needs to get its act together. The goodwill is there. Talks are ongoing with Lufthansa to introduce services to German cities. Let’s hope they have a positive outcome.

 

THKLSSWCA !

 

No this is not the name of a Polish striker but the initials of The Halton, Knowsley, Liverpool, St Helens,Sefton and Wirral Combined Authority. That’s the proposed name for the new organisation that’s set to help with skills, transport and economic matters across the City Region from April.

 

The tortuous name is the result of sensitivity by some districts to the name Liverpool.

 

I can’t match Frank McKenna’s magnificent tirade on this subject in his special blog this week.

 

Dare I suggest Greater Liverpool Combined Authority? Leeds seems to have settled for the West Yorkshire Combined Authority.

 

What is more worrying is Frank’s information that there are questions over whether Joe Anderson should lead the new body. That’s silly but I hope he doesn’t follow Frank’s advice and walk away. “Merseyside” has suffered too long from these sort of quarrels that are largely absent in Manchester. We need common sense not walk outs.