Manifesto analysis: unlocking regional growth

Unlocking regional growth and addressing regional inequalities do features to some extent in the Labour and Conservative manifestos, but it is clear that the two parties have a different approach. This includes their outlooks on the future of devolution in England, next steps for local growth funding, or the government’s role in working in partnership with business to build upon the UK’s Industrial Strategy.

Unlocking regional growth: the CBI’s priorities

Before delving into the manifestos, it is important to consider what business wants. Before the launch of party manifestos, the CBI launched our own, “Programme for prosperity: The business vision for the next government”. We used it as an opportunity to set out what’s needed to unlock regional growth and ensure the Industrial Strategy drives economic activity.

On Industrial Strategy, the CBI called for the new government to recommit to the Industrial Strategy, to inspire enterprise and drive economic activity. This includes establishing cross party support and a focus on delivery across all regions and nations. As well as this the new government should ensure Local Industrial Strategies are in place across England, by March 2020 where possible, and no later than the end of 2020. Finally, the new government must guarantee that the UK sees no loss of regional funding as we depart the EU, integrating Local Growth Funds, Towns Funds and the Shared Prosperity Fund.

On devolution, the CBI’s manifesto set out the importance of evidence-based devolution in unlocking regional growth. Business would like to see a clear framework for devolution and an Independent Advisory Board to assess new deals. The new government should adopt a target for over 60% of England’s population to be covered by a devolution deal; streamline local government; and ensure all parts of the country have a ministerial champion in place to prioritise regional growth at the most senior levels of government.

Finally, regional connectivity is key. The CBI called for the new government to back the delivery of crucial infrastructure projects such as HS2 and Northern Powerhouse Rail in full.

So, how did the manifestos stack up against the CBI’s priorities for the new government?

The Labour Manifesto

Within the Labour Manifesto we saw a welcome commitment to Northern Powerhouse Rail, and full HS2 delivery, including up to Scotland. Key to building capacity on our rail network and connecting our major cities and economic hubs across the country.

However, there was little mention of English devolution or role of elected mayors. Questions have also emerged over their proposals for regional offices of government and the Local Transformation Fund. These recommendations do, rightly, address the centralised nature of UK policy making and could help empower every region by ensuring they have the resource available to prioritise investment decisions. However, how these regional offices and investment funds interact with elected mayors raises the prospect of added complexity, which could be difficult for businesses to navigate.

Finally, the recognition of a robust Industrial Strategy is welcome, but beyond aligning this to a national trade strategy – key to delivering high-quality exports and jobs, the manifesto was light on detail. It is key that we establish cross-party support on this important initiative, injecting momentum into the discussion, and continue to push for a place-based approach to the strategy. This includes having all Local Industrial Strategies in place as soon as possible.

The Conservative Manifesto

The Conservative Manifesto, despite including a range of positive commitments for business, raised concerns with some notable omissions.

Starting with the positives, business was pleased to see the commitment to publishing a white paper on the future of devolution in England. We encourage the next government to set out clear criteria within the framework as to what’s on the table for new deals, establish ministerial champions for each region, and ensure that more than 60% of the English population is covered by a devolution deal by 2025.

Building on this, business was pleased to see continued support for key regional growth bodies such as the Northern Powerhouse, Midlands Engine and Western Gateway in driving foreign investment.

Commitments to investing in regional infrastructure were also welcome, including Northern Powerhouse Rail and the Midlands Rail Hub. However, the manifesto lacked a full commitment to backing and building HS2. HS2 being built in full is critical to delivering the much-needed capacity and connectivity across our regional cities and economic hubs.

However, it was disappointing that the manifesto doesn’t acknowledge the work undertaken between government and business in building on the foundations of the UK’s Industrial Strategy. Since its launch two years ago, business and government have worked together to start tackling some of societies Grand Challenges, including the future of mobility and clean growth. As well as this local areas have developed their own Local Industrial Strategies, setting a clear strategic plan to drive productivity growth and close inequalities locally. With only seven of these local strategies published, business would like to see the majority published by March 2020 as originally set out with the remainder following before the end of 2020 to ensure every area has the chance to build upon its strengths.

Next steps

Regardless of the outcome, the CBI will be working hard with the new government to unlock regional growth and address regional inequalities. This includes developing a series of recommendations to inform the next steps for English devolution, identifying priorities to reinvigorate the debate around Industrial Strategy, engaging with elected Mayors and helping shape the next stage of local growth funding. For more information on how to get involved please contact Jim Hubbard.