The West Midlands needs to exploit its proximity to London and ensure that it “eats from London’s table”, and the region also has a “big job of convincing government” that it can respond to the challenges ahead as part of the devolution process, said former government adviser and previous chief executive of Birmingham City Council, Sir Michael Lyons.
Lyons was the keynote speaker at CBRE’s Outlook 2016 seminar in Birmingham. The former chair of the BBC Trust, chair of the Lyons Housing Commission and strategic adviser to CBRE, was banging the drum for devolution, for which he said he had been an advocate for the past 30 years.
“The UK has centralised its governance too much. Now there appears to be a sea-change in Whitehall and the regions must seize the opportunity to become masters of their own destinies,” he said.
As part of a devolution deal, the treasury has promised £1bn of government investment to the West Midlands Combined Authority, comprising the seven metropolitan councils of Birmingham, Coventry, Dudley, Sandwell, Solihull, Walsall and Wolverhampton. Consultations are now under way for the combined authority’s proposed role and functions.
Lyons said the region had many advantages, including its proximity to London. “In earlier times this was sometimes perceived as a weakness. Now, we need to exploit our links and develop them further. The capital is an economic powerhouse, generating 20% of UK GDP and 60% of UK financial services GDP, there is no shame in eating from their table. We are better placed for this than anywhere else in the country,” he said.
Lyons also called for local authorities to use their covenants and their assets to accelerate investment in infrastructure, skills and pump priming investment. He said that due to severe cutbacks local authority teams have been depleted and added: “If you are going to do this job well you need really highly skilled people to do it. The wise West Midlands politicians will be looking outside for skills and advice to help them become effective investors. They have got to take the risk , they have got to be bolder, clear in terms of what their priorities are and they have also got to recognise that it is not the job to be left entirely for in-house skills.”
There has to be much more effective co-operation across the West Midlands regarding land release for housing and business, said Lyons. He criticised the government’s current housing strategy, saying: “The reason London will start to falter is simply the shortage for housing for key workers, as well as young graduates – the powerhouse of many businesses. Although the government has made big strides on housing supply, it simply has turned its back on improving the lot for those that want and need to rent and that’s the gap in the government’s housing strategy at the minute.”
There is a myth surrounding Boris Johnson’s personal contribution. In reality he is surrounded by effective institutions and local councils turning strategy into reality
Commenting on the proposed plans for a directly elected unitary mayor as part of the devolution process, Lyons warned that people should “not bank on a mayor being the solution”, as there is “very mixed evidence” to support this.
“There is an appetite amongst government and others for a single figurehead who can articulate the region’s vision, deliver on strategy and project confidence. But in truth, the evidence on whether it works is very mixed. It can be great – but only if you get a good one!”
He added: “There is a myth surrounding Boris Johnson’s personal contribution. In reality he is surrounded by effective institutions and local councils turning strategy into reality. Transport for London, for example, is thinking about how it will move commuters around the city 30 years from now. To do that they have had to make some hard decisions. With the best will in the world, an elected mayor with a four-year tenure and voters to placate can’t do that.”
Creating a “lean and competent machinery that enables the West Midlands to co-ordinate its efforts to strengthen the regional economy” must be the priority, he said.
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