Whatever happened to the “Medici model”? Two years ago, Michael Gove enthusiastically outlined his desire to embed the cultural and economic dynamism of renaissance Florence in England’s neglected post-industrial regions. Sadly for the secretary of state for levelling up, it became clear that Rishi Sunak’s Treasury had no intention of releasing the kind of sums that could truly address inequalities in a disastrously unbalanced economy.
What has unfolded instead has been an unsatisfactory cosmetic affair, in which councils hollowed out by cuts have fought for limited Westminster largesse. This week, Mr Gove’s department unveiled the third tranche of cash from the levelling up fund – around £1bn for more than 50 projects across Britain. There is no doubt that money such as that allocated to improve the Penistone railway line between Sheffield and Huddersfield is welcome. But salutary context is provided by comparing the £12bn or so dedicated to levelling up with the close to €2tn spent by Germany on improving living standards in its east between 1990 and 2014.
It also turns out that a flawed and sometimes nakedly political decision-making process has undermined even the modest level of ambition. Last week, the National Audit Office reported that work has not even begun on many supposedly “shovel-ready” schemes agreed in the aftermath of the 2019 “red wall” election. Some are now deemed unrealistic, given the impact of inflation on costs.
The public is justifiably underwhelmed. When it comes to the touchstone issue of rejuvenating dilapidated town centres, a More in Common survey this month found that less than a quarter of respondents believed real progress has been made. Meanwhile, a landmark study will on Wednesday highlight the grimmest of all indicators of entrenched regional inequality: according to research by the Centre for Ageing Better, older people in the north of England continue to die younger after spending more years in poor health and longer periods out of work.
Strikingly, however, More in Common also says that almost 40% of Britons believe that reducing geographic disparities should remain a top priority for any government. The idea of levelling up has been criticised as too vague and all-encompassing. But beyond the golden triangle of London and the south-east, it struck a popular chord and spoke to the lived experience of civic decline that contributed to the Brexit vote in 2016.
Sir Keir Starmer has recognised this by pledging to introduce a “take back control” bill if Labour wins power, echoing the leave campaign slogan in the referendum. Promises to devolve greater powers to local authorities and communities are right and necessary. But after four years in which Tory administrations have half-heartedly papered over cracks resulting from years of austerity, there must be more to any Labour version of levelling up. To areas that suffered disproportionately from cuts to council funding, sufficient resources must be restored to allow public services to be rebuilt. An industrial strategy aimed at the regions needs to be backed by concerted fiscal firepower at a national level.
Having flirted with an idea that implied leaving its laissez-faire intellectual comfort zone, the Conservative party is reverting to small-state, tax-cutting type ahead of the next election. That gives Labour an enormous political opportunity. It should not be afraid to occupy its own natural terrain.
