Tag: CBI

HAMMOND’S CHALLENGING DEBUT.

Turbulent times require grey politicians and we have two at the top of government. Theresa May has turned off the daily flow of government initiatives to keep the press happy. A good thing too, the constant announcements from the Blair, Brown and Cameron regimes rarely amounted to much and were initiated in the vain hope of distracting hacks from the real stories.

Her next door neighbour and Chancellor, Philip Hammond makes John Major look exciting. But that’s not a problem for me. There is so much uncertainty in the world that we need a cautious person in charge of the money and that approach is likely to inform next week’s Autumn Statement.

Business in the North will want clear indications around the new Chancellor’s approach to the uncertainties of Brexit. Leavers are crowing at the moment because the economy hasn’t apparently suffered from initial Brexit damage. Let’s wait and see. If Hammond is wise he’ll be preparing the British economy for slower growth and higher inflation as the folly of us leaving the EU becomes more and more apparent. He will be hampered in shaping our economic future by the total disarray that is being revealed within government about what future relationship we actually want with the EU.

On taking office Hammond moved away from his predecessor’s deficit reduction targets. Price Waterhouse Cooper predict a gap of £67bn this year, a huge figure but will it matter to the Chancellor? We seem to be in a time when politicians prefer to forget the legacy they are leaving to future generations. That certainly seems to be the case with the incoming Trump administration in America where he breezily talks about a trillion dollar infrastructure programme.

While the Donald deals with his crumbling bridges, Hammond has a number of areas crying out for cash should he wish to spend it. Adult social care is at the top of the list, followed by the NHS and then councils.

Anyone with eyes to see can observe the plight of Town Halls. Libraries and bus services are being closed in a desperate attempt to support the growing needs of the elderly.

Then there is the housing shortage which is so badly affecting the young. I say young but in many cases married couples in their early thirties are still not able to afford a home of their own. The levels of stamp duty are being identified as a problem that the Chancellor might wish to address.

Then there is the Northern Powerhouse and Transport for the North. The latter is becoming an increasingly important organisation headed up by the former CBI boss John Cridland. He gave an impressive presentation to the North West Business Leadership Team recently about his vision for improved connectivity involving east-west rail and road links and simplified ticketing. The government revealed new route plans for HS2 this week. That project is seventeen years away. Next week the Chancellor needs to support some shorter term wins along the lines of the Cridland plan. It will also be interesting if Philip Hammond mentions the Northern Powerhouse. It was frequently mentioned in Osborne budgets. Despite denials there remains an impression that the May government has cooled on the idea or pivoted to the Midlands Engine.

Wednesday will be an important one for Philip Hammond and could define his whole Chancellorship.

IVAN THE TERRIBLE HITS BACK.

IVAN LEWIS SHOWS WINNING MENTALITY.

The bust up within the Greater Manchester Labour Party over who should be their candidate for elected mayor shows no sign of abating.

Last week Manchester Council leader Sir Richard Leese opined that Bury South MP Ivan Lewis’ twenty years in parliament didn’t qualify him for a job requiring experience of local government. A clearly offended Ivan is now pointing out that he was a councillor in Bury and chair of the Social Services Committee.

Observers remain surprised that Sir Richard Leese chose the occasion of his decision not to stand for the post to indulge in this red on red attack. There are now suggestions that despite his obvious qualification for the Labour nomination, he would not have beaten the current interim mayor Tony Lloyd(former Stretford MP) or Ivan The Terrible (Bury South MP) in the vote. There is apparently a strong desire amongst Labour chiefs in the nine other councils not to let Manchester boss the show.

NORTHERN POWERHOUSE.

So has the Northern Powerhouse (NP) got momentum after all? I wrote critically about the project a couple of weeks ago, so I thought it would be a good idea to go along to a big conference on the subject in Manchester. It was aimed at the business community who need to be convinced that NP is going to mean opportunities for new contracts and growth.

The conference didn’t get off to a great start. The Treasury Minister Lord Jim O’Neill had issued a prepared speech to the press but treated the audience to a defensive ramble about the government’s continued commitment to the NP. He attacked critics who said the North South divide was still widening by stressing it was a long term project. However he did acknowledge a lack of joined up thinking in government evidenced by the “pause” in the electrification of the Leeds-Manchester rail line. The project is now back on track.

The government seem to have taken on board criticism that NP is too focused on infrastructure. Sir Michael Wilshaw, the Chief Inspector of Schools recently warned that NP could be undermined because of poor secondary education in northern schools. Lord O’Neill said this, and the related issue of poor skills, would be addressed in phase two of NP.

John Prescott is a regular at these conferences and never fails to challenge the new orthodoxy that cities alone hold the key to northern regeneration. There he was waving a fading copy of his Northern Way document which, ten years ago, mapped out a vision for strategic thinking across the North. It was scrapped by the Coalition government in 2010 but Prescott pointed out that the recent appointment of ex CBI boss John Cridland as chair of Transport for the North showed the continuing need for strategic thinking beyond the boundaries of smaller Local Enterprise Partnerships and councils.

Prescott retains the belief that local councils will always compete with each other in their own narrow interest. Chief Executives from Leeds Newcastle, Liverpool and Manchester came together for a conference session where they insisted that they were going to set aside parochialism in the interests on NP. We’ll see if that works when a global company is weighing up the merits of locating in rival northern cities in the future.

There were good conference sessions on issues like transport and finance and the large attendance showed that business is taking NP seriously. It is, for sure, the only game in town if we are to get the North competitive with London. Let us hope the government stay focused when all the headlines are about our very future in Europe.

CBI CONFUSED ON DEVOLUTION

A CONSTITUTIONAL CONVENTION IS ANSWER FOR BUSINESS

The Confederation of British Industry has a confused position on devolution. This week its Director General, John Cridland,described the plethora of regeneration schemes like City Deals and Growth Funds as “a tower of Babel” that business had to try and cope with. He also complained about the multiple tiers of government, particularly with local councils in the shires, and accused politicians of doing devolution by deadline with back door deals. He told an audience in Manchester we needed to take things gradually and allow all voices to be heard.

So I asked Mr Cridland whether he would support a Constitutional Convention so that the CBI, along with everyone else, could have their say in shaping a coherent solution to a range of issues from the governance of the North and business support to the future shape of local government and the Local Enterprise Partnerships; he refused to commit himself. This was because we are in a General Election campaign and it is Labour Party policy to have a Convention. However in other answers he made it clear he favoured the sort of piecemeal approach to devolution which is likely to lead to the continuation of the confused picture of Combined Authorities, two tier councils, elected mayors and centralised government support schemes that we have now.

Despite this muddled thinking Cridland did make an important speech outlining how business sees devolution. Its central purpose had to be getting the regions to perform better. The CBI chief reckoned they could contribute £56bn towards the deficit of £90bn.

For the UK as a whole he regarded it as essential that we retain common business taxation and financial rules as well as a common energy and labour market.

For English regions he had three criteria for growth friendly devolution. They were evidence that it would boost growth, better local leadership and the minimisation of bureaucracy and complexity.

The CBI is dead against tax varying powers in City Regions. He reminded his Manchester audience of the years before uniform business rates when companies had to lobby each local council and rates varied wildly.

He however did support local tax retention schemes like Manchester’s buy back arrangements.

He praised the devolution deal that Greater Manchester had negotiated but posed the vital question about what happens to the rest of the North? Well Mr Cridland that’s the sort of issue that could be addressed in a comprehensive Constitutional Convention which the CBI needs to support.

CONSTITUENCY FOCUS: ROSSENDALE AND DARWEN.

Could we see the Straw dynasty survive in the new parliament? Jack Straw is standing down in Blackburn and there had been speculation that his son, Will, would succeed him.

But, unlike America where you can be President providing you are called Clinton or Bush, here we don’t care for dynastic politics. So Will is trying his hand in the much more marginal nearby seat of Rossendale and Darwen. Part of the constituency has Blackburn as its local council but it includes the south Lancashire communities of Rawtenstall and Bacup as well.

It has swung between Labour and the Tories over the years. Currently Jake Berry holds the seat with a majority of under five thousand having ousted Labour’s Janet Anderson in 201