Less than a week prior to Scotland deciding whether to go it alone or maintain its union with the rest of Britain, the eight English Core City leaders, including Bristol’s Mayor George Ferguson, have urged Westminster at a GVA-hosted Summit in London to grant more regional powers so that they too can start benefiting from the devolved policy Scotland already sees.
The Summit heard that with the prospect of devolution looming for Scotland and Wales irrespective of the outcome of the Scottish referendum, decentralisation within England is now one of the biggest single economic issues facing Government.
GVA, one of the UK’s leading commercial property advisers with an office in Bristol, launched new research at the Core Cities Summit at Vintners Hall in central London. The report, entitled ‘Evolving Cities’, highlights how the case for greater regional control is a compelling one given that the eight English Core Cities, including Bristol, and their regions account for 27% of the English economic output.
What’s more, the UK has the most centralised state among the OECD nations and arguably in the whole of the developed world. In 2011 only 2.5% of the UK taxation was set at the local level, against 5.8% in France, 10.9% in Germany and 15.9% in Sweden. Tax levels in the UK’s regional cities are at circa 5%, compared to 50% in New York, 70% in Tokyo and 25% on average across the OECD countries.
The research highlights how the English Core Cities, whose ranks have recently swelled to include Glasgow as the ninth and newest member, were once global drivers of trade, commerce and industry, sharing investment opportunities and wealth creation with London more equally. With the decline of many regional industries and manufacturing in general post-war, the commerciality of these cities has declined too, and the economy has become imbalanced towards London and the South East.
David Mace, Regional Senior Director at GVA in Bristol says, “The Core Cities project collectively represents the first chance in a generation for regional cities to work together to actively shape their own future; the powers they currently have are only a starting point. This will not be a quick fix. Rather it will take time and require the Core Cities to continue working together with a range of partners, from international governments and sovereign wealth funds to more local players such as universities and business leaders.
“Schemes such as an improved rail network or hub airport require planning, funding and support at a macro level but in the long run, it is up to the Core Cities themselves to shape and fund what works best for them. Central to this agenda is the devolution of even more powers to create greater fiscal, economic and political autonomy, and to seal strong and sustainable growth for decades to come.”
Writing in GVA’s Evolving Cities report, Mayor Ferguson, who is the lead portfolio holder for the Core Cities on low carbon and energy says, “I am seeking to put cities back in charge of keeping their own lights on.
“There has been a great deal of debate recently about energy supply in this country – whether it’s about the type of energy generation, the commercial model governing its supply, or what we are doing to protect those in society most vulnerable to the rising cost of energy and fuel.
“Most of these policies are governed far from the communities they most affect. At a local level, the Core Cities want increased and more competitive local energy supplies, lower energy usage and carbon emissions, reduced fuel poverty, stronger business infrastructure and huge savings to the public purse.”
He continues, “Bristol is setting up its own energy company. It now has the UK’s first council-owned wind farm which together with the adjacent Avonmouth wind turbines will reduce the city’s carbon footprint by thousands of tonnes per year. We’re not alone, our Core City partners are also doing fantastic things with energy, and it’s great to be able to work with them not just to share our experiences, but to work operationally together, creating greater efficiency and increased power of voice for change.
“We are asking for fair access to energy markets and influence over how revenues from energy production are invested, and in return we will work with communities to help them save energy as well as generate their own power, taking control of their bills and their energy requirements.”
The Core Cities Summit comprised a morning debate in which city and business leaders set out where their growth priorities are, and what they need from central government to catalyse and drive business expansion and job creation.
