For those interested in the regional growth agenda, the past few weeks have been exciting.
The Conservative Party conference kicked this off with chancellor George Osborne’s bold announcement that business rates will be fully devolved to local authorities by 2020. Announced in Manchester, the heart of the northern powerhouse, this was proof to sceptics that this government is serious about the devolution agenda and delivering growth across the whole country.
This was followed by the announcement of a string of devolution deals, with more expected to come soon. And just a couple of weeks later local authorities and the real estate industry gathered at MIPIM UK, where it was great to see so many local authorities focused on attracting investment and encouraging growth in their areas.
Those local authorities in attendance – and indeed the event itself – attracted their fair share of criticism, accused by campaigners of colluding with greedy developers and selling off public sector land for luxury housing.
What a shame those protesters were not inside the exhibition.
If they had been, they would have seen passionate leaders showcasing fantastic examples of how they have partnered with the construction industry to deliver some stunning regeneration projects. Also, they would have heard how many of them are seeking investment in order to deliver the housing that they need – be that affordable homes, private rented accommodation or more family homes for owner occupation.
The fact that so many areas have a clear vision for what they want to achieve is really encouraging. This was one of the recommendations for local government that we launched at MIPIM UK, alongside the ability to market this vision effectively to investors.
It is something that Birmingham council’s Waheed Nazir, for example, clearly understands. He explained to delegates at our investment breakfast with Pinsent Masons that Birmingham has started to understand the needs of institutional investors, compared with private equity, and is able to tailor its strategies to meet their needs. Looking at the weight of investment pouring in to Birmingham, this is a plan that others should take note of.
That a local area knows what development it needs and where the opportunities lie for investors always inevitably leads on to a conversation about devolution, and this was a topic that came up at almost every panel session that I attended at MIPIM UK.
Local authority appetite for increased powers is strong, and it was great to see this enthusiasm reflected by communities secretary Greg Clark at our Regional Magnetism event. Clark reaffirmed that overseas capital is looking beyond London and declared the Cities and Devolution Bill a tremendous boost to the momentum that has been generated already.
There is a long way to go, but what is clear is that waiting for a mayor to come and take the reins will be too little too late for most areas. Now is the time to get on and plan for growth, to collaborate and regenerate to rebalance the economy.
Melanie Leech is chief executive of the British Property Federation
