If devolution leads, does investment follow?

LISTEN: Devolution to the regions must be backed up by long-term public and private investment. The UK is one of the most centralised states in Europe, but after a landslide victory in December that saw the Conservatives win many of the typically Labour areas of the North, talk of levelling up the UK began with gusto. And while the levelling up agenda may well have been overtaken in the Spring Budget by the current coronavirus crisis, there was good news for the regions in Rishi Sunak’s debut announcement, with a clear push to more devolution, more mayors and hopefully more investment across the whole of the UK to follow. To discuss the power of devolution when it comes to creating places, spaces and the opportunity for investment across the country, EG gathered a trio of experts – Iain Thomson, head of communications and investor relations at Harworth Group, Nick Markham, chair of LCR Property, and James Child, head of retail and logistics research at EG – to find out exactly what central and local government could and should be doing and where the private sector has an important role to play. (Listen to the full discussion below.) Conveners for regeneration For Harworth’s Thomson, the biggest wins for the regions when it comes to devolution and being able to deliver a levelled-up UK are funding and mayors. With mayors Andy Street and Andy Burnham (pictured above) both delivering for their regions, acting as conveners for regeneration, be it through major infrastructure projects like Street’s at Birmingham New Street or on a wider social issue like Burnham is doing with homelessness in Manchester, there is now a clear model for regional mayors. A model which, Thomson says, with the right mayor and right investment can work. “If we have a further roll-out of that mayoral model, there is a greater opportunity to convene the public and private sectors on the big issues,” says Thomson. LCR’s Markham agrees. “It needs someone with leadership,” he says. “Someone who looks after a big enough area to take a strategic view that benefits the whole area.” For Markham, the mayors offer a unique opportunity for the regions, as they are often individuals with personality who are keen to carve out a legacy, rather than purely professional politicians. “We need people who are going to bring energy and leadership, and the ability to pull lots of heads together, both at a local level and – and this is the beauty of the mayors – also have the ability to walk into Number 10 or the MHCLG and hold enough clout to get their proper attention.” [caption id="attachment_986661" align="aligncenter" width="847"] West Midlands mayor Andy Street[/caption] Big plans In the Budget earlier this month – and in housing secretary Robert Jenrick’s subsequent planning statement – the government set out some of its ambitions on devolution, announcing the introduction of a new mayor for West Yorkshire as part of a £1.8bn devolution agreement and the potential establishment of four new development corporations within the Oxford-Cambridge-Milton Keynes arc. So with clear central government will to allow the regions to govern, what can local authorities and regional mayors do to make sure that where devolution leads, investment follows? For Thomson, it is about investing in education, research and development. About local areas considering what employment they want to bring forward and investing in that. He cites Harworth’s Advanced Manufacturing Park in Rotherham, where Rolls-Royce, McLaren, Boeing and the UK Atomic Energy Authority are now based, as an example. It has more than 2,000 people working on the park, which Thomson says would not have come forward without public money. [caption id="attachment_1026830" align="aligncenter" width="847"] The McLaren premises at the Advanced Manufacturing Park[/caption] Long-term vision “It always needs public sector money first to show that long-term view,” agrees Markham. “If the private sector can see that and see that long-term money coming in and see the first bricks go down, then they are happy to come in afterwards.” He adds: “I see the role of the public sector very much as setting that vision, and often you need the mayor to do that, putting in that early money and showing an ambition of creating a place. Once the private sector can see that, it’s much easier for them to come in.” EG’s Child believes that local authorities and leaders need to focus on productivity to attract investment and to make sure that they are investing in the right projects for their towns and cities. “Austerity is supposed to be over,” he says. “Brexit is now underway. If we are truly to level up and unleash Britain’s potential, then we need to think about giving our local leaders the opportunity to really go forward and grow their own communities, destinations, etc. If we truly are out of the austerity madness, then let’s see some action.” And, says Markham, that action needs to come in the form of stable long-term investment, from both the private sector and central government, that can be applied by the local mayor or local authority. Investment and involvement are key, adds Harworth’s Thomson. “Not enough developers actively work with local enterprise partnerships constructively,” he says, “and if they don’t, then they have absolutely no right to criticise what eventually comes forward.” Click here to listen to the other sessions that EG recreated in the studio during the postponed MIPIM week. The panel Iain Thomson, head of communications and investor relations, Harworth Group Nick Markham, chair, LCR Property James Child, head of retail and logistics research, EG Chair: Samantha McClary, editor, EG In partnership with       xxx