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Election result delivers little cheer for progressive place making

The general election produced an unexpected majority result which brings to an end the Conservative and Liberal Democrat coalition. This represents a major shake-up in British politics; the Conservative’s coalition partners for the last five years, the Liberal Democrats, were devastated, whilst a dramatic shift in Scotland has seen the SNP become the third largest party. The Conservatives will now be able to implement their manifesto with fewer hurdles than in the last parliament. But what does this all mean for people and places?

The implementation of devolution is likely to gather pace, with landmark deals such as Devo Manc already announced. This control over budgets brings with it a welcome opportunity for local government to allocate funding with a clearer understanding of local circumstances and needs. However, there are serious shortcomings which need to be addressed. Firstly, there is a democratic deficit inherent in the proposed system, with the imposition of elected mayors and a lack of mechanisms to involve citizens. In addition, there is a real danger that devolution will fail to address social and economic inequality, as there is no new money being created. In fact, it could be argued that devolution will allow austerity to continue at pace, with a further £12bn in public sector spending cuts expected over the parliament. Central government will effectively be absolving itself of a role in deciding where and how deep these cuts will hit. The onus is on local government to strive for progressive form of economic development which values social considerations alongside economic growth.

Support for Business was a cornerstone of the Conservative manifesto, particularly with reference to smaller, local businesses. There have been measures announced to increase the competitiveness of British business, including a reduction in ‘red tape’ and changes to employment legislation that favour employers. However, there is a danger that Britain will develop a low-wage economy in the long-term. A widespread commitment to implementing a living wage is required to provide an economic benefit within the local community and ensure that the treasury do not continue to subside businesses who pay low wages.

“There is a need for efficiency in public services, but the current funding crisis is failing local communities”

There are also welcome commitments in terms of housing, with a target of 200,000 homes for first time buyers in the Conservative manifesto. However, this is tempered by the threat posed by the proposed extension of the Right to Buy initiative to housing associations. This is a controversial policy, with potential legal challenges from housing organisation who own the stock, and many predicting it will cause a rise in prices, as supply is further depleted. In addition, plans to develop on brownfield sites raise questions over the quality of housing; and there are no plans to help Britain’s renters, who are still faced with unscrupulous landlords, poor conditions and skyrocketing rents.

Public services will be faced with a second wave of austerity, with both the range and quality of these services being severely tested. There is a need for efficiency in public services, but the current funding crisis is failing local communities. There should be real–terms increases in funding, with services that are more reflective of user demands, based around more joined-up working with a focus on wider socio-economic and environmental benefits.

With regards to employment and skills there is a positive goal to improve standards and maintain spending in education. However, inequalities in terms of achievement will continue to grow if there is not a significant rethink on funding for the early years. These formative years are crucial to the life chances of children, and services such as Sure Start centres are vital to ensure support during this time. Job creation is also continuing at pace, as we push towards total employment for those want to work. This will be aided by improvements to apprenticeships, with greater duration and quality, as well as incentives to encourage businesses to take on apprentices.

Matthew Todd
Matthew is a researcher at the Centre for Local Economic Strategies.

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Fernando Centeno, CED
Fernando Centeno, CED
9 years ago

Thanks for this overview. As per “place-based” initiatives which is in fashion in some circles, I recommend a thoughtful & relevant take on “place-based” initiatives in “Place Matters: Metropolitics for the 21st Century”, by Peter Dreier, John Mollenkopf, & Todd Swantsrom.

Quote: “We recognize the power of place in shaping the lives and destinies of people, but our focus is not simply about the people who live in areas of concentrated poverty. We focus, instead, on the broader dynamics of geographic segregation by wealth, income, and race.”

Quote: “Poverty is the flip side of super-wealth. The solution is shared prosperity, and that never happens without strong rules that limit market forces. It requires government – and government run by people who believe in the power of laws and rules to change human behavior, institutions, and society.”

Lastly: “American workers today face declining job security and dwindling earnings as companies downside, move overseas, and shift more jobs to part-time workers. Place-based policies cannot address these major trends.”

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