Region’s rich rewards if power heads North – Henri Murison

My plea to all those who step 
forward is to remember the campaign 
for greater devolution was hard-won. Now that we have some of the tools to build a better future for our region, we must not squander them whist we battle for more.

The intricate process of decentralising power away from Whitehall began 
under then-Chancellor George Osborne and Lord Jim O’Neill in the Treasury. Starting in Greater Manchester, it spread as far as Sheffield City Region but then stopped in its tracks in Yorkshire – until now.

In those areas able to secure devolution deals, Labour civic leaders and the Government put aside their partisan differences to commit to invest in long-term priorities, driving up productivity rather than paying for the costs of economic failure.

Improving social mobility or investing in better rail services isn’t partisan, it’s a no-brainer.

Whilst Westminster has often focused on gladiatorial contests between the hard right and hard left, leading cities and regions requires a more mature approach – one able to reconcile opposing political traditions in the pursuit of the greater good.

One able to take up the modernising force in British politics, which has been relinquished somewhat from Westminster.

Local leaders need strong principles, good judgment and boundless energy.

Judith Blake, soon to be better known as Baroness Blake sitting in the House of Lords, has been a great political leader here in the North, as have a number of our metro mayors.

There are tough times ahead and we need leaders such as them to make the case for further investment across the Northern Powerhouse.

However, while we are clear that more funding is needed in areas such as education and large-scale transport infrastructure, our ultimate goal is to reach a point where we are not reliant on Whitehall hand-outs.

As we work for the North’s productivity to draw in line with the rest of the country, and as we start to gain more 
real power over local decisions, we 
must take control over more of the 
taxes.

This would not mean increasing tax overall, simply restructuring how it is raised so that we can align investment decisions with future returns.

Taxes should raise funds to unlock growth, later capturing the resulting uplift generated as a result.

Taxes used to fund local services 
and investment must be overseen 
locally, alongside replacing the 
outdated Barnett Formula with a fairer rebalancing mechanism across the 
UK.

A levelling up formula that works for the whole United Kingdom cannot benefit just Scotland at the expense of areas such as the North East, disadvantaged by their lack of a nationality.

Our current funding and powers are nowhere near enough to recover economically.

Nor will they be enough to deliver the sorely-needed transport upgrades to boost connectivity, such as a new rail line from Leeds to Manchester, through Bradford.

Once again, we find ourselves in a situation where our future depends on politicians in Westminster.

This forces us to start thinking creatively about ways to generate money, such as a road user charging system to replace fuel duty, once the electric car makes it irrelevant.

Megaphone diplomacy cannot and will not secure a recovery.

Real leadership isn’t about just lobbying for more money – it is about making the case for why an investment will pay dividends for local communities (and the taxes they raise) later down the line.

The North is on the up. My message 
to the Chancellor is this: help us 
invest, give us more powers over 
local decisions – and reap the reward 
in coming decades. Be both from Yorkshire, and for the Northern Powerhouse.

Henri Murison is director of the Northern Powerhouse Partnership.

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