Will self-driving cars Make the Suburbs Great Again?

The delights of living in a suburb – coming to a self-driver like you in just a few years. Image: Wikimedia Commons.

The future of urban life is the commuter belt. Or so says one economist, who believes technology and transport improvements will help us live better lives on the fringes of cities than we do in the middle of them.

“A city is a technical solution to a problem from the Industrial Revolution,” said Karen Harris, managing director of Bain & Company's Macro Trends Group, at the Slush startup conference in Helsinki last week. “We needed to have lots of bodies clustered to run our cities… it was a genius solution.”

We no longer need to live all clumped together, thanks to improvements in communications and transport (such as self-driving cars – let’s ignore the current realities of Southern) mean. “Why do we assume that urbanisation will continue in a straight line?” she asked.

At the core of this idea is spatial economics – what Harris describes as “the cost of distance”. Look at the cost of sending information. It used to require a stamp to send a note. Now, regardless of how far the message travels, we do it for almost free (if you accept the assumption of internet access as a utility).

But soon the cost of moving goods and people will also fall, helped by faster trains, driverless cars and trucks, and drones, she predicted – you won't mind a longer commute so much if it's fully automated.

A profoundly un-sexy self-driving car from Google. Image: Marc van der Chijs / Flickr.

Of course, we've heard variations on this argument before. The rise of the internet meant we could all run small businesses from a beautiful valley in Wales – shame the broadband speeds are astonishingly bad – and video conferencing meant we never needed to travel for a meeting again, instead Skyping in from our over-sized kitchens or massive, manicured gardens. Yet the past few years have seen more younger people crowd into cities than ever before, and in the UK the rate of urbanisation has continued its steady climb. And we all still have to attend meetings.

But the shift is starting to happen in some countries, Harris reports. “In the US, for example, where the census has great data, we've seen 2 per cent of the population move away from city centres to the outer edge of the commuting belt,” she said. “In France, that's 3 per cent. Wherever there’s lots of land, in advanced economies, we’re seeing people taking advantage of the falling cost of distance.”

The view from your office window? Image: Wikimedia Commons.

Those are relatively small shifts, and Harris admitted that it's “harder in some places than others”. Consider London. If you're moving from zone three to the edge of Oyster coverage, it likely has more to do with the insane home prices in the capital than the falling “cost of distance”. If you can't afford to live in the centre, you have no choice but to reside further out and suffer a commute, regardless of technology innovations that may make it slightly less painful.

That's why such cities are increasingly the province of the young, as they don't mind living “piled in a flat”, Harris said, as well as the rich and empty nesters. But what about everyone else? Are we doomed to live as zombie commuters, returning to dull suburban enclaves each night?


Harris' argument is that life on the fringes of a metropolis can be better, pointing to “new village” developments on the outskirts of American cities that have a variety of retail and entertainment options, as well as local work opportunities – and a cheaper cost of living than the middle of a city. “People who right now commute long distances, crowd into perhaps suburbs, can live in places that are more pleasant,” she argued.

So no zombie commuters? “The Walking Dead is actually filmed in a 'new village', a developer-built community,” she said. “But it has the elements that we all crave.

“I'm not saying leave cities and live in a cave with a cow.” She notes the wealthy people live in walkable high streets, with a variety of amenities, saying the rest of us should be offered the “ability to express that desire”.

A more sexy self-driving car from Mercedes-Benz. Image: Mercedes-Benz / Vimeo.

Some of the technology that will enable this is already here, but others will take years if not decades to arrive. Driverless cars face engineering and regulatory hurdles, but could make travelling further distances to get to a train station or to the office more palatable. And once the necessary infrastructure is in place to give us urban-feeling lives in suburban locations, the number of people moving out will tick above those 2 per cent and 3 per cent figures, Harris predicted.

However, she noted social change is faster than technological change. “A movement away from cities could happen much more quickly than we think and we expect,” Harris predicted.

We may get to the suburbs faster than driverless cars can take us there.

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As EU funding is lost, “levelling up” needs investment, not just rhetoric

Oh, well. Image: Getty.

Regional inequality was the foundation of Boris Johnson’s election victory and has since become one of the main focuses of his government. However, the enthusiasm of ministers championing the “levelling up” agenda rings hollow when compared with their inertia in preparing a UK replacement for European structural funding. 

Local government, already bearing the brunt of severe funding cuts, relies on European funding to support projects that boost growth in struggling local economies and help people build skills and find secure work. Now that the UK has withdrawn its EU membership, councils’ concerns over how EU funds will be replaced from 2021 are becoming more pronounced.

Johnson’s government has committed to create a domestic structural funding programme, the UK Shared Prosperity Fund (UKSPF), to replace the European Structural and Investment Fund (ESIF). However, other than pledging that UKSPF will “reduce inequalities between communities”, it has offered few details on how funds will be allocated. A public consultation on UKSPF promised by May’s government in 2018 has yet to materialise.

The government’s continued silence on UKSPF is generating a growing sense of unease among councils, especially after the failure of successive governments to prioritise investment in regional development. Indeed, inequalities within the UK have been allowed to grow so much that the UK’s poorest region by EU standards (West Wales & the Valleys) has a GDP of 68 per cent of the average EU GDP, while the UK’s richest region (Inner London) has a GDP of 614 per cent of the EU average – an intra-national disparity that is unique in Europe. If the UK had remained a member of the EU, its number of ‘less developed’ regions in need of most structural funding support would have increased from two to five in 2021-27: South Yorkshire, Tees Valley & Durham and Lincolnshire joining Cornwall & Isles of Scilly and West Wales & the Valley. Ministers have not given guarantees that any region, whether ‘less developed’ or otherwise, will obtain the same amount of funding under UKSPF to which they would have been entitled under ESIF.


The government is reportedly contemplating changing the Treasury’s fiscal rules so public spending favours programmes that reduce regional inequalities as well as provide value for money, but this alone will not rebalance the economy. A shared prosperity fund like UKSPF has the potential to be the master key that unlocks inclusive growth throughout the country, particularly if it involves less bureaucracy than ESIF and aligns funding more effectively with the priorities of local people. 

In NLGN’s Community Commissioning report, we recommended that this funding should be devolved to communities directly to decide local priorities for the investment. By enabling community ownership of design and administration, the UK government would create an innovative domestic structural funding scheme that promotes inclusion in its process as well as its outcomes.

NLGN’s latest report, Cultivating Local Inclusive Growth: In Practice, highlights the range of policy levers and resources that councils can use to promote inclusive growth in their area. It demonstrates that, through collaboration with communities and cross-sector partners, councils are already doing sterling work to enhance economic and social inclusion. Their efforts could be further enhanced with a fund that learns lessons from ESIF’s successes and flaws: a UKSPF that is easier to access, designed and delivered by local communities, properly funded, and specifically targeted at promoting social and economic inclusion in regions that need it most. “Getting Brexit done” was meant to free up the government’s time to focus once more on pressing domestic priorities. “Getting inclusive growth done” should be at the top of any new to-do list.

Charlotte Morgan is senior researcher at the New Local Government Network.