Bart Smallman
Chamber’s Features WriterWhilst abandoning the name ‘Levelling Up’, Keir Starmer has committed himself to improving regional inequality in the UK. With among the worst regional inequality in the developed world, Keir Starmer will have a hard task ahead of him in trying to create a more equitable economy whilst encouraging decarbonisation. Here’s what he’s promised and how he can go further.
A More Balanced Economy
Labour’s manifesto sets out how they propose to plan economically for ten-year periods. This of course will be reliant on future election results, but Labour will want to hold onto power for a long time. Regardless of how this can be achieved electorally, we must hold the Government accountable for the future of the UK.
The previous Government committed to an agenda of levelling up the UK. Currently, London and the South of the UK are by far the most prosperous regions. This is largely because of the financialisaton of our economy.
One of the UK’s most successful industries is in financial services. While it is good that the nation boasts a leading financial sector, the entire economy has been financialised to an extent. The economy has been focused too much on this industry. The majority of this industry operates in London, meaning that other areas in the UK such as the Midlands and the North have not been able to reap the industry’s rewards. Labour needs to encourage businesses from this sector to level up across the country.
Cities like Manchester, Leeds and Birmingham already have smaller financial sectors. Upscaling these through funding and business incentives can help the UK’s levelling up mission.
The Climate Crisis
The UK needs to promote other industries across the nation which can be successful themselves. One benefit to the Government’s plans for GB Energy will be that it can create a new sustainable energy industry. This industry will create new jobs in the South, Midlands and the North, improving the economies of each. This policy also has ramifications for the climate crisis.
The climate crisis is not going away, and the new Government need to begin work immediately to combat it. A sustainable transition to Net Zero by 2030 will not be an easy task. Labour’s hope will be that they can tackle rising energy prices and Net Zero with GB Energy. GB Energy will be the party’s state-owned energy company.
While Labour have already taken a step in the right direction by lifting the ban on onshore wind farms, this crisis must be resolved with great urgency. The effects of climate change will impact everyone. Any country that ignores how dangerous climate change is should be dismissed as ignorant. Labour cannot let the UK fall into this category.
Another way in which Labour can work towards levelling up will be through the intensification of devolution. The party’s manifesto has promised to give devolved bodies more power. This change would allow region-specific governance. This regionally tailored approach places the necessary powers into the hands of those with the region’s best interests at heart. In the long term this would lead to greater economic prosperity in each region of the UK.
Final Thought
These changes can also have significant knock-on effects. Currently, London is the hub for work in professional services and the financial sector. This leads to large numbers of people looking to work and live in the capital. This demand for London’s real estate is one of the reasons behind its extortionate cost of living. By spreading this burden of industry across the country, prices could be far more balanced everywhere. This would help to stabilise the economy and make housing more affordable.
This article was written by Chamber UK’s features writer, Bart Smallman.
For more analysis from Chamber UK on Labour’s manifesto, please click here.