Both Budget and industrial strategy disappointed: the government still needs to invest in Britain’s cities

Not good enough, chancellor. Image: Getty.

Britain’s cities hold the key to solving our productivity problem as the UK prepares for Brexit. Representing over a quarter of the UK economy, and containing nearly a third of its population and a quarter of its businesses, the 10 Core Cities have a vital role.

The recent Industrial Strategy and Autumn Budget both contained measures that can help us realise this potential – but the government did not go far enough. Despite hopes that the Budget would mark a break with austerity, it contained little that will help our member cities cope with the financial crisis they face. Most significantly of all, there was nothing in the budget on funding of social care, the issue which is threatening the financial position of councils across the country and their ability to carry on delivering high quality public services.

Despite the government’s promise of a review of social care funding by the end of this year, the review has been postponed. As the government delays, councils struggle to cope with rising demand and vulnerable people suffer from poorly funded services.

Extra funding for the NHS is undoubtedly needed, but providing money for the health service to deal with the winter crisis while not providing extra funding for social care – which could make a real difference to preventing people having to go into hospital – is the wrong choice.

Extra investment in housing was the centrepiece of the Budget, but the announcements failed to deliver on the promises of radicalism from Downing Street and Treasury. We do need to see 300,000 homes built a year, but we need to reach those levels quicker than the mid-2020s.

The lifting of the HRA borrowing cap is good news – but rather than trusting cities to get on with building the social homes they need, freedom is limited, tying councils up to negotiate with Whitehall rather than getting on and building. We believe that all core cities should be given the right to borrow against their housing income to build the new homes we desperately need.

A week after the budget came the Industrial Strategy. There was much in it that we welcomed, including a focus on place and infrastructure. But as we have told ministers in recent face-to-face meetings, a significant factor in our cities’ productivity is not due to poor connections, but is linked to deprivation.


The only way to get more people involved in our city economies is to invest in better, reformed public services – for example schools and housing – that will pay dividends later on and can help cities fire on all cylinders, delivering up to an extra £90bn for our economy every year.

International evidence shows that cities that have the most control over taxes raised in their area and the delivery of policy in a way that meets their local needs tend to be the most productive. The UK is still one of the most highly centralised countries in the world – and as a consequence the productivity of our cities is much worse than most international competitors.

There have been some positive moves on devolution from government, but there is much more to be done to deliver the decentralisation of power in the UK, giving cities the freedom to align services and investment at the level of place.

The Budget in particular was disappointing for cities. Their financial position isn’t significantly improved, the promised radicalism on house building failed to appear and we are still a long way from having the tools we need to deliver significant mprovements in productivity.

However, we are working hard to engage with government and recent meetings with both the secretaries of state for transport and communities have seen government signal its willingness to listen to our ideas and work in partnership with Core Cities UK to deliver a better, fairer and more productive Britain.

Cllr Jon Collins is Core Cities UK cabinet member for finance and leader of Nottingham City Council.

 
 
 
 

A warped mirror: on gentrification and deprivation on London’s Caledonian Road

The London Overground crosses Caledonian Road. Image: Claude Lynch.

Capital cities are, more often than not, a focal point for the stark divide between rich and poor – places where the most economically deprived meet the most economically empowered. In London, these divides can be more than stark: they can be close, even intimate, and there are districts where crossing the street can be like entering a different world. One such street is the Caledonian Road.

Known local as “the Cally”, Caledonian Road runs for about a mile and a half, from Kings Cross to the Nags Head junction in Holloway, and was built in 1826 to provide a new arterial route to the north from the West End. At first, developments on the road were sparse; among the first notable buildings were the Royal Caledonian Asylum, which gave the road its name, and H.M. Prison Pentonville.

For some time, the northern half of the road was seen as far removed from central London, which stymied development. It wasn’t until the latter half of the 19th century residential development really got going. By the time Caledonian Road station opened on the Piccadilly line in 1906, the area was flush with Victorian terraces.

These, though, mainly lay on the eastern side. To the west, the proximity of King’s Cross prompted the development of heavy industry, particularly the clay kilns that were helping to build Victorian London proper. The divide had begun:  the east side of the street, the area known as Barnsbury, was notably quieter and calmer than the west side. Ever since the 19th century, the ‘V’ formed by Caledonian Road and York Way has been known for a high incidence of gang violence and social problems.

As in many parts of London, the end of the Second World War brought a chance to start from scratch. Many of the slums to the west of the Cally had been bombed to smithereens, and those that remained still lacked gas and hot water.

But this was the era of municipal dreams: Islington council cleared the slums and constructed the Bemerton Estate. Instead of reflecting the industrial history of the area, the estate reflected Barnsbury back at itself, treating Caledonian Road as some sort of warped modernist mirror. The square gardens of Barnsbury were reimagined as the spaces between the highrises of Bemerton, and this time, they were actually square.

The estate was immediately popular, its open design prompting a renewed sense of community in the west. But it didn’t last.

Square gardens on one side, not-so-square on the other. Image: Google Maps/CityMetric

As far back as the 1950s, Islington had already become synonymous with gentrification. Forty years later, before moving to Downing Street, Tony Blair’s London residence was Barnsbury’s leafy Richmond Crescent. House prices in the area have gone through the roof and now Barnsbury is mainly home to a the professional elite.


At the same time, though, Caledonian Road’s warped mirror has given Bemerton the exact opposite: in spite of attempts to rejuvenate it, downward spiral of deprivation and antisocial behaviour have blighted the estate for some time The promise of inviting square gardens and communal living has been inhibited by crime and poverty; the gardens lie empty, while those in Barnsbury thrive.

The disparity of wealth across Caledonian Road is regrettable. That’s not just because it speaks to a wider segregation of London’s rich and poor – a phenomenon exemplified last year by the Grenfell Tower fire in Kensington & Chelsea, the richest borough in Britain. It’s also because, in the Bemerton Estate, planners had thought they saw an opportunity to offer more Londoners the idyll of square gardens and leafy streets, often reserved for the richest.

It might be too much to claim the estate as a failure; events such as the Cally Festival aim to bring together both sides of the road, while other council programmes such as Islington Reads help to foster a greater sense of neighbourhood.

Road should never divide us; rather, they should unite those who live on either side. The spirit of Caledonian Road should cross the gap – just like the railway bridge that bears its name.