Cities need to channel their ‘inner entrepreneur’ to thrive

The new Urban Sciences building at Science Central in Newcastle

Whatever the future of austerity, if cities are to thrive they need to make the most of their local assets, says Andrew Carter, chief executive of the Centre for Cities

There has been much speculation in recent weeks that the government is set to ease its austerity policies, with the chancellor Philip Hammond interpreting the shock general elections result as sign that people are ‘weary’ after the ‘hard slog’ of the last seven years.

However, it remains to be seen whether any relaxation of austerity would apply to local government funding – meaning that places across the country will need to look for new ways of generating the money needed to fund the crucial public services they provide.

Yet as a new Centre for Cities report – How city partnerships make the most of public assets – shows, places have already responded to austerity by taking innovative approaches to using their public assets, from buildings and land, to former coal mines and disused fibre optic ducting networks, to kick-start local economic growth.

In particular, the report sets out the ways in which cities have worked with other public, and private, sector partners in order to achieve the most from these assets. It highlights five key lessons for local leaders on how they can make better use of the land and buildings they own.

First, every city needs to know its assets. The best way to make the most of the opportunities available for increasing economic growth is by getting to grips with all the land and property available, not just that owned by the local authority but across all parts of the public sector.

Second, cities need a clear sense of how those assets can support a long-term vision for the future of the local economy, and what it will take to unlock them.

Third, places should take a commercial mindset. This means understanding the asset development and management market, what the pitfalls are and how they can negotiate them.

Fourth, projects must be well managed with appropriate expertise. Asset development can’t be done on the cheap. Ensuring appropriate resources are committed at the outset will help this to happen.

Finally, ensure projects are supporting strong strategic partnerships. There are bound to be challenges along the way, so any project needs flexibility and a working relationship that goes beyond contracts, to help overcome the toughest hurdles.

One example highlighted in the report is a joint initiative in Newcastle led by the local council in partnership with Newcastle University to refashion a large site they owned on the edge of the city centre – which had previously been both a brewery and a colliery – as the city’s new Science Central urban quarter.

The initiative, which local leaders hope will attract more innovative business to locate in the city centre, had originally been championed by One North East, the regional development agency. But following its abolition in 2010, and the collapse in Newcastle’s commercial development market following the financial crash, Science Central became a strategic way to boost business growth of all kinds in the city centre, particularly where the market was not willing to take the risk.

As a result, Newcastle was able to deliver a project which has now led to significant investment from Legal and General, as well as a commitment to host two National Innovation Centres at the site.

Austerity may have provided the imperative and context for local leaders across the country to adopt this kind of innovative approach to their assets. But the benefits that many places are seeing in terms of economic growth means that local leaders will carry on regardless of the funding context.

If cities are willing to take a few risks and channel their inner entrepreneur – working with the kinds of organisations and people that have the commercial expertise to support this – then a lot can be achieved to increase tax revenue and boost economic development– regardless of whether we are about to see the end of austerity or not.