George Osborne offered one vision of devolution – but One Yorkshire wants another

Yorkshire: site of the battle for devolution’s soul. Image: Getty.

All eyes are now on Yorkshire. As the government’s devolution programme runs out of steam, England’s largest county has become the battleground for competing visions of what a devolved England might look like.

On one hand is a vision of devolution based on the big cities like Sheffield and Leeds; on the other, is the ‘One Yorkshire’ vision, where power is devolved to the larger regional scale to create a more inclusive form of development that addresses the needs and aspirations of communities beyond the big cities.

What is at stake in this debate?

Shortly after the 2015 General Election, building on his earlier launch of the Northern Powerhouse, the thenn Chancellor of the Exchequer, George Osborne, proclaimed his ambition to roll-out devolution across England by creating “metro mayors” for England’s biggest cities. Speaking in Manchester, Osborne was clear that the refusal to introduce a metro mayor would preclude the devolution of power from Westminster.

The location for the speech was significant. For Osborne, Manchester presented a successful model of economic development; he had already secured the agreement of council leaders there to introduce a metro mayor, an arrangement dubbed “Devo Manc”.

In his speech, Osborne asserted that his was “a vision based on the solid economic theory”, arguing that, “There is a powerful correlation between city size and the productivity of its inhabitants.” Metro mayors, governing an entire metropolitan region, were crucial to unlocking economic growth, he claimed.

Osborne was echoing the idea that Britain’s cities have been held back by land-use planning restrictions. and because too much policy attention has been wasted on places that will never have the dynamism of big cities. Allowing market forces freer rein would accelerate their growth based on tech clusters and the attraction of knowledge workers, principally by facilitating the increased supply of housing.

Metro mayors, in other words, would be dealmakers focused on attracting property investors. These views gained strong backing from thinktanks such as the (London-based) Centre for Cities, and initiatives such as the City Growth Commission, led by Osborne’s ally, Lord Jim O’Neill.

The theory is not without merit – but its limits are now apparent and, since Osborne left the stage, fresh ideas have emerged to challenge the Whitehall orthodoxy.

The rethinking begins with the 2016 Brexit referendum result, which has been widely interpreted as pitching north against south and big cities against towns. Andrés Rodríguez-Pose of the LSE suggests we should understand Brexit as an instance of “revenge of the places that don’t matter”: the struggling mill towns, declining coastal resorts and former coalfields that have been largely untouched by the growth in big cities.


In England, the neglect of these places has led to the accumulation of social, economic and political problems for the whole of society. Expecting people in these places to move to big cities is unrealistic and unreasonable – not just because it is unaffordable but because it requires them to abandon the strong community networks they rely upon.

Moreover, multiplying towers of glass and steel and cranes on the skyline offer a narrow vison of development. They contribute to short-term improvements in indicators such as GDP and benefit property owners, but also generate increased inequality within and between places, excluding those who cannot get on the housing ladder because they are trapped in low paid jobs.

Labour MP Rachel Reeves has called for a stronger focus on the ‘Everyday Economy’, those sectors that impact of the lives of people away from the tech hubs and luxury flats. Meanwhile, the Joseph Rowntree Foundation has shown how reliable and affordable local bus services are crucial to the economic development of disadvantaged places; and improving bus services requires institutional and regulatory changes best achieved at the regional scale. As the Centre for Towns has shown, tackling problems of ageing and ill-health are among the pressing problems in disadvantaged places. Rebuilding material and civic infrastructure – the ‘foundational economy’ – in local communities is a key political task.

New research suggests that large cities are not always the most dynamic engines of growth, and that some smaller and medium-sized cities and rural areas have outperformed them. The OECD cautions against focusing only on “core cities”, identifying “agglomeration costs” such as problems of housing affordability, infrastructure shortages and rising pollution and congestion. It advocates the benefits of well-connected regions of rural communities and networks of smaller, networked cities. Even highly disadvantaged communities contain assets and networks that could become the focus of development.

The idea that economic development can be left solely to market forces is the root of many of our problems, but still grips many of our political leaders. Part of the argument for One Yorkshire concerns the strength of its identity. Sir Richard Leese, the leader of Manchester City Council, has dismissed the idea of One Yorkshire as based on “nostalgia, not economic reality,” while Lord O’Neill has rejected it as “chest-beating slogans”. But Yorkshire identity cannot be denied, nor can it be trumped by appeals to an economic model that does not deliver for enough people. The Sheffield Citizens’ Assembly showed a clear preference for a Yorkshire scale of government. 

Yorkshire identity is not just a potentially powerful international brand but represents civic capital and the basis for a shared collective project. Bavarian identity, expressed among other ways through its powerful state parliament, does not appear to have prevented Munich from becoming one of the world’s most prosperous and liveable cities. Indeed, the Nobel Laureate George Akerlof, states that a sense of identity, as much as price signals, shapes our economic decision-making. It can underpin a sense of common purpose and influences behaviour in ways that conventional economists overlook.

Luxury flats and high-end offices in city centres are insufficient to raise living standards in the regions. Leeds City Council’s decision to develop an inclusive growth strategy is a recognition of this. One Yorkshire is also a response to the weaknesses of developer-led, city-centric policies.

This is not to deny that cities are important, but rather to suggest the regional scale is able to address links between dynamic places and their hinterlands, smaller cities, towns and coastal and rural areas. The appeal of One Yorkshire lies in its promise a more holistic, integrated and inclusive economic and social vision for the region. It remains to be seen which vision of devolution will triumph, but the choices are clear.

John Tomaney is Professor of Urban and Regional Planning at University College London.

 
 
 
 

A new wave of remote workers could bring lasting change to pricey rental markets

There’s a wide world of speculation about the long-lasting changes to real estate caused by the coronavirus. (Valery Hache/AFP via Getty Images)

When the coronavirus spread around the world this spring, government-issued stay-at-home orders essentially forced a global social experiment on remote work.

Perhaps not surprisingly, people who are able to work from home generally like doing so. A recent survey from iOmetrics and Global Workplace Analytics on the work-from-home experience found that 68% of the 2,865 responses said they were “very successful working from home”, 76% want to continue working from home at least one day a week, and 16% don’t want to return to the office at all.

It’s not just employees who’ve gained this appreciation for remote work – several companies are acknowledging benefits from it as well. On 11 June, the workplace chat company Slack joined the growing number of companies that will allow employees to work from home even after the pandemic. “Most employees will have the option to work remotely on a permanent basis if they choose,” Slack said in a public statement, “and we will begin to increasingly hire employees who are permanently remote.”

This type of declaration has been echoing through workspaces since Twitter made its announcement on 12 May, particularly in the tech sector. Since then, companies including Coinbase, Square, Shopify, and Upwork have taken the same steps.


Remote work is much more accessible to white and higher-wage workers in tech, finance, and business services sectors, according to the Economic Policy Institute, and the concentration of these jobs in some major cities has contributed to ballooning housing costs in those markets. Much of the workforce that can work remotely is also more able to afford moving than those on lower incomes working in the hospitality or retail sectors. If they choose not to report back to HQ in San Francisco or New York City, for example, that could potentially have an effect on the white-hot rental and real estate markets in those and other cities.

Data from Zumper, an online apartment rental platform, suggests that some of the priciest rental markets in the US have already started to soften. In June, rent prices for San Francisco’s one- and two-bedroom apartments dropped more than 9% compared to one year before, according to the company’s monthly rent report. The figures were similar in nearby Silicon Valley hotspots of San Jose, Mountain View, Palo Alto.

Six of the 10 highest-rent cities in the US posted year-over-year declines, including New York City, Los Angeles, and Seattle. At the same time, rents increased in some cheaper cities that aren’t far from expensive ones: “In our top markets, while Boston and San Francisco rents were on the decline, Providence and Sacramento prices were both up around 5% last month,” Zumper reports.

In San Francisco, some property owners have begun offering a month or more of free rent to attract new tenants, KQED reports, and an April survey from the San Francisco Apartment Association showed 16% of rental housing providers had residents break a lease or unexpectedly give a 30-day notice to vacate.

It’s still too early to say how much of this movement can be attributed to remote work, layoffs or pay cuts, but some who see this time as an opportunity to move are taking it.

Jay Streets, who owns a two-unit house in San Francisco, says he recently had tenants give notice and move to Kentucky this spring.

“He worked for Google, she worked for another tech company,” Streets says. “When Covid happened, they were on vacation in Palm Springs and they didn’t come back.”

The couple kept the lease on their $4,500 two-bedroom apartment until Google announced its employees would be working from home for the rest of the year, at which point they officially moved out. “They couldn’t justify paying rent on an apartment they didn’t need,” Streets says.

When he re-listed the apartment in May for the same price, the requests poured in. “Overwhelmingly, everyone that came to look at it were all in the situation where they were now working from home,” he says. “They were all in one-bedrooms and they all wanted an extra bedroom because they were all working from home.”

In early June, Yessika Patapoff and her husband moved from San Francisco’s Lower Haight neighbourhood to Tiburon, a charming town north of the city. Patapoff is an attorney who’s been unemployed since before Covid-19 hit, and her husband is working from home. She says her husband’s employer has been flexible about working from home, but it is not currently a permanent situation. While they’re paying a similar price for housing, they now have more space, and no plans to move back.

“My husband and I were already growing tired of the city before Covid,” Patapoff says.

Similar stories emerged in the UK, where real estate markets almost completely stopped for 50 days during lockdown, causing a rush of demand when it reopened. “Enquiry activity has been extraordinary,” Damian Gray, head of Knight Frank’s Oxford office told World Property Journal. “I've never been contacted by so many people that want to live outside London."

Several estate agencies in London have reported a rush for properties since the market opened back up, particularly for more spacious properties with outdoor space. However, Mansion Global noted this is likely due to pent up demand from 50 days of almost complete real estate shutdown, so it’s hard to tell whether that trend will continue.

There’s a wide world of speculation about the long-lasting changes to real estate caused by the coronavirus, but many industry experts say there will indeed be change.

In May, The New York Times reported that three of New York City’s largest commercial tenants — Barclays, JP Morgan Chase and Morgan Stanley — have hinted that many of their employees likely won’t be returning to the office at the level they were pre-Covid.

Until workers are able to safely return to offices, it’s impossible to tell exactly how much office space will stay vacant post-pandemic. On one hand, businesses could require more space to account for physical distancing; on the other hand, they could embrace remote working permanently, or find some middle ground that brings fewer people into the office on a daily basis.

“It’s tough to say anything to the office market because most people are not back working in their office yet,” says Robert Knakal, chairman of JLL Capital Markets. “There will be changes in the office market and there will likely be changes in the residential market as well in terms of how buildings are maintained, constructed, [and] designed.”

Those who do return to the office may find a reversal of recent design trends that favoured open, airy layouts with desks clustered tightly together. “The space per employee likely to go up would counterbalance the folks who are no longer coming into the office,” Knakal says.

There has been some discussion of using newly vacant office space for residential needs, and while that’s appealing to housing advocates in cities that sorely need more housing, Bill Rudin, CEO of Rudin Management Company, recently told Spectrum News that the conversion process may be too difficult to be practical.

"I don’t know the amount of buildings out there that could be adapted," he said. "It’s very complicated and expensive.

While there’s been tumult in San Francisco’s rental scene, housing developers appear to still be moving forward with their plans, says Dan Sider, director of executive programs at the SF Planning Department.

“Despite the doom and gloom that we all read about daily, our office continues to see interest from the development community – particularly larger, more established developers – in both moving ahead with existing applications and in submitting new applications for large projects,” he says.

How demand for those projects might change and what it might do to improve affordable housing is still unknown, though “demand will recover,” Sider predicts.

Johanna Flashman is a freelance writer based in Oakland, California.