The Budget. Sunak’s strong message that operation “level up” is under way.

4 Mar

There were all sorts of striking announcements in Rishi Sunak’s Budget yesterday, from the £5 billion grant scheme to help hospitality businesses in England recover from the pandemic to the less welcome news that the Government will raise the rate of corporation tax to 25 per cent.

The Government will be told it spent too much/ too little; that it shouldn’t have gone for corporations, and so forth. But one thing you cannot accuse it of is forgetting its commitment to “level up” the country, which was a big theme in the Budget.

The Conservatives were elected on this promise – to spread “opportunity across the whole United Kingdom” and move away from being South/ London centric – and Sunak’s speech did not disappoint in this regard.

“If we are serious about wanting to level up, that starts with the institutions of economic power”, he said firmly, before announcing that there will be a new economic campus for the Treasury in Darlington. This means that 750 employees will move from the Capital to that area.

In another interesting development, Sunak announced eight freeport locations in England for East Midlands Airport, Felixstowe and Harwich, Humber, Liverpool City Region, Plymouth, Solent, Thames and Teesside.

While it quickly became obvious (on Twitter, at least) that some people don’t know what a freeport is, let alone have a view on whether they’re a good idea, many councils have been working hard to put in bids for these.

All five council areas in Tees Valley worked together in developing one for Teesside, and it has paid off. Its freeport will be the largest in the UK, spanning 4,5000 acres (2,550 football pitches).

The freeport is expected to increase investment to Teesside, Darlington and Hartlepool by over £1.4 billion and create around 18,000 skilled, good quality jobs within five years. The Government will also be hoping it can boost the chances of Ben Houchen, the Tees Valley Mayor, to get re-elected at the end of this year.

Speaking about his vision for Teesside, Sunak said: “Now, when I look to the future of Teesside I see old industrial sites being used to capture and store carbon. Vaccines being manufactured. Offshore wind turbines creating clean energy for the rest of the country. All located within a Freeport with the Treasury just down the road and the UK Infrastructure Bank only an hour away” (the bank will be in Leeds).

In another part of the Budget, Sunak singled out Andy Street, the Mayor of the West Midlands, where the Government is also increasing public investment.

It is putting £225 million into rail stations and the reopening of old railway lines. Government support will also go towards a major housing and commercial development scheme around the upcoming HS2 Solihull Interachange, along with other regeneration efforts.

Responding to these developments, Street said: “The Chancellor has done exactly what we asked for him, and set out clear and wide-ranging support to help West Midlands businesses and the self-employed through the end of the roadmap and into the recovery stage.”

So you can see that, while covering off lots of areas, yesterday’s Budget sent out a strong political message that the Government can hear people outside Westminster (now literally moving departments to other parts of the country).

The Budget may even have an appeal to Generation Rent throughout the UK, as through trying to correct regional disparities, the Government can also help shift demand for housing, which is overly focussed in the South East.

But overall, it was a show that now the Government’s got “Brexit done”, operation “level up” is well and truly under way.

Ben Houchen: The Budget. On Wednesday, Sunak must hear the voice of the North – and kickstart a new era of job creation.

26 Feb

Ben Houchen is the Mayor of the Tees Valley.

With spirits buoyed by the Prime Minister’s roadmap out of pandemic restrictions, and the light at the end of the Covid tunnel finally in sight, all eyes now turn to the Budget on March 3.

This could be one of the most influential Budgets, both for our nation and for the region I represent, in a generation. Crucial decisions need to be weighed and judged by the Chancellor to ensure that our comeback from Covid is powerful and that the light at the end of that tunnel proves to shine on a better future.

There is no doubt in my mind that the top priority for Rishi Sunak is jobs and rebuilding the economy – an economy battered by the necessary restrictions on lives and livelihoods. I know from talking to local businesses how many are fighting on the edge, and it’s to the Government’s credit that the furlough scheme and other financial support have kept so many businesses alive and people in employment.

The “Red Wall” communities in my area overwhelmingly backed Boris Johnson in the last election, and it’s essential that the faith they put in him is returned. The Prime Minister promised a new kind of government, free of Brussels blinkers and Whitehall hand-wringing, which would address ordinary people’s concerns.

The best way to prevent low incomes and low opportunities from blighting the lives and hopes of adults and children, especially in the UK’s left-behind communities, is to do all we can to create new, good quality, well-paid jobs, on an unprecedented scale.

However, for a jobs agenda to be effective, it needs to be directed with strategy and precision. This can’t be an illusory statistical employment growth driven by foreign workers on contracts in the south. At the last election, the country was promised better policymaking for towns, villages and rural areas, and a transformative levelling up programme which would see growth, prosperity, and potential finally realised in communities across the nation.

This is the moment for a step-change in that levelling up agenda, to drive a jobs revolution in areas like Teesside, Darlington, and Hartlepool. Only by marrying the levelling up agenda to the jobs agenda will we ensure that new growth is serious, sustained, and benefits everyone.

There are two key ways in which the Chancellor can kick-start the recovery, levelling up, and the creation of good quality, well-paid jobs in my area. I and my team have done the groundwork, and the question is: will the Government grasp these golden opportunities?

The first, and most essential, step needed is for the Chancellor to give the green light to my plans for the Teesside Freeport. With thousands of acres of developable land, the largest deep-water port on the east coast, a nation-leading focus on delivering net zero technology and clean growth, and a pathway to pioneering innovations to support the whole UK freeport ecosystem, I passionately believe that a Teesside Freeport can be a jobs dynamo, a roaring engine of economic growth, and a flag-bearing project for Global Britain.

There are huge opportunities for job creation here. The wide package of tax reliefs, simplified customs procedures and streamlined planning processes freeports will benefit from can bring in the investment needed to unlock Teesside’s latent economic power.

Sunak was an early supporter of freeports himself, so I know that he understands the enormous potential we have here. The Teesside Freeport could create more than 18,000 skilled, good-quality, well paid jobs over the next five years and boost the local economy by £3.2billion. It would also increase inward investment into Teesside, Darlington and Hartlepool by over £1.4 billion.

Now the Chancellor needs to have the courage to overrule any official arguing to delay pressing ahead with this game-changing jobs catalyst. As soon as Sunak gives us the green light, I’ll be driving this forward, unleashing the potential of Teesside, Darlington and Hartlepool.

The second action I’m looking for from the Chancellor is another where I know he understands the opportunity, but where again he needs to cut down the unimaginative Sir Humphreys within his department.

The Government’s plan to relocate 22,000 senior Whitehall civil servants out of London by 2030 will see 800 civil servants moved from Sunak’s own department to a new northern economic campus, dubbed “Treasury North”.

The vast majority of people don’t live in metropolitan cities, they live in our towns, our villages, in the countryside and on the coast. By moving out of London these civil servants will be able to develop a greater understanding of the issues and opportunities people are confronted with on a daily basis and, ultimately, develop better policy that is anchored in real knowledge gained by living in the communities it will impact the most.

For decades, talented local people in my area, graduates of fantastic northern universities and people who should have played an important part in our communities, have been sucked away by over-centralised bureaucracy. Now this self-perpetuating cycle can be broken. More than 100 local business leaders, both Teesside and Durham Universities, and political leaders from across the political spectrum have backed my proposal to bring Treasury North to Teesside.

It would be tragic if the prospect of opportunity and in-tune government was dissolved into a cluster of London civil servants being flown to Manchester, Leeds, or Newcastle. Such an outcome would fail to deliver better policymaking for towns like Hartlepool or Darlington, villages like Stillington or Skinningrove, or rural areas far and wide, and it would fail to deliver the promised levelling up agenda.

On Wednesday, the Chancellor has the chance to set a defining roadmap for our economic recovery from Covid. As a northern MP himself, I believe that he will hear the voice of the North and kickstart a new era of job creation. The tools are in his hands. The nation is waiting for Sunak to equip us to get to work and create the jobs of tomorrow.

Damian Green: Why a forced choice between a Brexity North and a Globalist South would be a false one – and damage our Party

16 Nov

Damian Green is Chair of the One Nation Caucus, a former First Secretary of State and is MP for Ashford.

2020 has brought many words to the forefront of our conversations: pandemic, lockdown, mask. Suddenly “reset” has become the latest addition to the thesaurus of 2020, as politicians and commentators ponder the future of the Government in the post-Dominic Cummings era. Is Boris Johnson about to head out in a new direction, or would any deviation from the path of 2019 be a politically unwise heresy?

We should start with the Prime Minister’s own favourite self-description. He always refers to himself as a One Nation Conservative. So I take it as a given that he wants to run a One Nation Government: one which seeks to unite, heal and provide opportunity for all. The interesting question is what does this mean for the coming decade, as the country seeks to recover from Covid-19 and make the best of Brexit.

The first change will need to be a simple change of tone. Crossing the road to pick a fight may be a rational strategy in the period of a campaign, especially one which you are not confident of winning, but it is a rotten way to run a government. There are absolutely battles that need to be fought and won, but any administration can only fight on so many fronts at once. If too many people are potential enemies to be denigrated and then crushed, then you rapidly run out of friends. Every government needs loyal friends.

This is a relatively easy reset. The deeper question is whether there also needs to be a significant change of substance. What will a One Nation Government concentrate on, and would that produce a more contented country, and therefore a platform for re-election in 2024?

The short answer is that the Government should re-read the manifesto on which it was elected, and concentrate its efforts on the big promises in it. Brexit has happened – so it should now move on very rapidly to making a reality of levelling up.

Every One Nation Conservative applauds the concept of giving particular help to parts of the country that have been left behind, but also thinks that there are national policies that allow us to do this without creating a competition between North and South.

Much better training and education, both for young people and older workers whose job skills have become obsolete, would benefit everyone, but would have particular effect in towns and cities where jobs have been harder to find.

In health policy, one lesson we have learned from Covid is that it is the co-morbidities that come from poverty and disadvantage that make people more likely to die. So meeting the manifesto commitment to increase healthy life expectancy by five years by 2035 can only be done through reducing health inequality. This in itself would be a One Nation priority, but its practical benefits would be most obvious in the Blue Wall seats.

I observe that there is a rearguard action from climate sceptics against this week’s environmental announcements from the Prime Minister. This takes the form of claiming that no one in the North cares about the environment, as they really want jobs and prosperity.

There are two answers to this. The first is that these policies contain vital measures to make sure that the jobs of the future come to this country rather than others. You can, as I do, want more power generated from wind, and want the people making wind turbines to do so in areas of the UK with traditional manufacturing skills. The second is that to assume that no one in the North cares about the future of the planet is patronising nonsense.

This attack on green policies that were also in the manifesto is a symptom of a wider misconception which is already beginning to spread: that the Conservative Party has to choose between the gritty Brexity immigration-sceptic North and the soft, affluent globalist South.

This is a counsel of despair, as it suggests that there is no way Conservatives can win a stable majority in the long term. More importantly it ignores the capacity of this Government to produce a raft of policies which unite large parts of the country. Strict immigration control (and indeed Brexit) are as popular in my Kent constituency as they are in Stoke, Wigan, or Darlington.

Crucially, though, so are policies which help people into jobs, which preserve a decent welfare system in a time of trouble, and which create the economic conditions that encourage the creation of new businesses. It is not northern or southern (or English, Welsh, Scottish or Irish) to want people to stand on their own and take their own decisions, while being entitled to help from society when they need it. This Conservative version of the welfare state is at the heart of modern One Nation thinking, and our longest period out of power was when Tony Blair and New Labour stole it.

Conservatism needs to be more than libertarianism, and more than small-statism. There are different traditions that come together in the Conservative Party, but what unites them is a respect for our country, out history and our institutions. We will never be “woke” because too much of what passes for progressive politics is transient and illiberal.

But if fighting a culture war from the right involves trashing our institutions, like Whitehall, the judiciary or the BBC, it is dangerously unconservative. A wise Conservative Government will always reform, but very rarely offer revolution. Above all, it should respect the rule of law.

A reset Government will double down on the many excellent promises it made the country last December, knowing that after the worst of Covid has passed it has three years to demonstrate to Conservative voters old and new some visible improvements in public services and communities. The One Nation Caucus is producing a series of policy papers to provide new ideas to help the Government on this course. Let’s hope the new word for 2021 is “recovery”.

Peter Gibson: Set the high street free

2 Jul

Peter Gibson is the MP for Darlington

Nobody can doubt the scale of the challenge facing our high streets and town centres as we look to rebuild our economy following this pandemic.

As many towns bid against one another looking for funds from the ambitious Future High Street Fund, my patch of Darlington included, it is necessary to acknowledge that fundamentally what our town centres lack is people.

The bustling high street of yesteryear, stacked with BHS and Woolworths, will never exist again. We have generations of decisions to thank for that: out-of-town shopping, pedestrianisation making access and collection ever more difficult, and local authority car parking charges, to name just a few. Buttressed by shifts in lifestyles and technology, these changes have led us to a world in which every conceivable item can be purchased online.

Our town centres are firmly rooted in the idea of the marketplace, around which local economies have grown. Yet you no longer need to buy your bread from the baker or your meat from the butcher. Now the supermarket will deliver it. You don’t even need to drive into town because the inner ring-road circumnavigates it.

Planning in more recent times has either been the guardian or, more often, the be-devilment of the beating heart of our town centre. Our current restrictions are not fit for purpose and are damaging the very essence of our communities.

The classification of property into use-classes – tablets of stone that allow town halls up and down the land to tell us what we can and cannot do within our property – are the embodiment of this red tape, blocking the renewal of our high streets. They prevent vacant commercial property from being reclassified as residential property. Our enterprises need flexibility and adaptability in order to innovate and grow. As Conservatives, we should do all we can to unlock that innovation and growth.

At a time where we are seeing more and more vacant commercial properties in town centres, and with speculation rife that in a post-COVID world many more will be working remotely, this means red tape has been getting in the way of an enormous opportunity to build homes.

This is not only bad for city-dwellers, who lose out from housing shortages and get priced out of the market by a lack of supply, but also a missed opportunity for the economy, which could benefit from a low-cost way of mobilising private capital to improve macro-productivity.

Even before this pandemic truly struck our economy, we knew that swathes of our retail landscape were surplus to requirements. In March, figures showed a vacancy rate of 12.2%. And though the Government has provided unprecedented levels of support to our high street businesses – no business rates this year, the furlough scheme, and small business cash grants, to name just a few measures – we know that vacancy rates, sadly, will rise significantly over the next few months as these schemes are unwound and some businesses never return.

Many towns’ arterial roads that were filled with houses that have become shops and offices now see vacant spaces opening up, leaving gaps and sapping the spirit of the town centre. We need to enable those properties to more easily revert to residential use, and as the need for commercial and retail space in the centre contracts we need to ensure that a diverse range of people move in. Not just students, not just starter homes, but homes suitable for our elderly who can easily walk into town, homes suitable for our disabled people enabling them to access services directly, and homes suitable for growing families with children.

While businesses will always rise and fall, our national ‘animal spirit’ will always endure. This is why the planning reforms announced by the Prime Minister this week are so welcome. By removing the red tape around the use of property and brownfield land, we are giving high streets and town centres a chance to be reborn – as a place to live, take your kids, meet your friends, or whatever local people – rather than planners – want.