When George Osborne picked Manchester to make his big post-election “northern powerhouse” pitch, it came as little surprise. The city has been the poster child for devolution. But the focus on Manchester and other big cities has sparked fears in smaller towns that they will get left behind in this latest push to rebalance Britain’s badly divided economy.
The thinktank IPPR North is quick to sum up those concerns. “Now we need to see this agenda move beyond core cities. Smaller towns and cities are a crucial part of the northern powerhouse and can help drive the region’s growth, providing they share in the benefits of new powers and prosperity,” says Ed Cox, the thinktank’s director.
He is concerned that without more powers being devolved to regions, smaller places will fall behind as so-called core cities grow. That in turn would dent the whole UK economy, just as the new government says it is trying to boost national growth by undoing decades of damaging north-south division.
“I think there is still a concern that all the debate focuses on cities alone. Some of those smaller towns and cities do actually contribute quite significantly to regional economies and it is wrong to suggest that it all comes from cities … We need to get the whole urban hierarchy functioning properly if we are going to see prosperity throughout the north,” says Cox.
In the north-east, the regional chamber of commerce has also been keen to stress that the northern powerhouse must mean other areas get similar deals to Manchester. Again, if Osborne ensures his plan is well spread out, the whole economy will share the spoils, says Ross Smith, policy director at North East Chamber of Commerce. “We think we have got a huge amount of economic assets here that the UK is not making the most of. Policies and investment at the moment are not suited to what we have to offer ... devolution could be a way of unlocking that,” he says. “It’s not just important from a north-east perspective but for the whole country for this to work across the north.”
He too, wants the powerhouse plan to look beyond big cities. “Actually, a lot of our strong businesses and assets here are not necessarily located in Newcastle: you need to look wider than just the city,” he says.
“It’s for us in the north-east to make a strong case for that. We have got a really great story to tell about what the north-east – and all parts of the north-east – can offer to the country,” he says.
The regional chamber, which represents about 4,000 businesses, is encouraged that David Cameron made Stockton South MP James Wharton the minister responsible for the northern powerhouse. Now it is up to the region to make its needs and demands heard, Smith says.
“We need to shout loud enough to make sure politicians in London take notice of how we can benefit from greater powers,” he adds.
Andrew Carter, acting chief executive at the Centre for Cities thinktank, thinks concerns about smaller places being left behind are overdone. Smaller cities should ask themselves how they could complement the other places around them, he says. “Let’s avoid thinking this is a zero-sum game. Let’s avoid thinking the only way one place can do well is at the expense of another place down the road.”
Carter believes places like Preston and Burnley could learn from the successes of Reading and Milton Keynes, which have their own thriving economies, as well as close links to London.
“These are distinct urban areas but well connected,” he says. “So Reading is slightly different but it complements London and is well connected with it.
“It’s about understanding the nature of your place and how it fits in with others around it, rather than just thinking about your place.”
