By Richard Johnstone | 17 November 2014
The next government needs to better coordinate economic development initiatives if it hopes to close the current North-South divide, a committee of MPs and peers has said.
The All Party Urban Development Group said the next government should formally make local authorities responsible for a range of policies, including rebalancing the economy, improving infrastructure, creating jobs and increasing the availability of housing.
This should build upon the growth initiatives launched by the coalition government since 2010, the group said, such as the creation of local enterprise partnerships, the Regional Growth Fund and local growth deals.
The report, published with British Property Federation and Nathaniel Lichfield & Partners town planners, said that improved coordination of these schemes could also increase the effectiveness of public spending. A shared evaluation mechanism for all government growth initiatives was also needed and its framework rigorously applied, the group stated.
In particular, the group said that the use of Tax Increment Financing to boost growth through improving infrastructure needed to be extended. Many more currently unviable schemes could be taken forward if the government allowed TIF to be used more widely, the report stated. Currently, only £150m of developments under TIF can be ringfenced from revaluation of business rates.
Paul Uppal, group chair and the MP for Wolverhampton South West, said that the current government had aimed to boost the economy through pro-growth policies.
‘Governments can always learn, and as we look beyond 2015 this report gives a vital insight into what has succeeded and how we can build and improve upon the growth initiatives this government has put in place,’ he said.
Liz Peace, BPF chief executive, observed that, in challenging circumstances, the government has sought to kick start economic growth through a plethora of initiatives.
An appraisal of these schemes was mixed as many policies were designed to show results over a number of years.
‘But one consistent aspect of business feedback is that if government really wants to stimulate economic growth, create jobs, improve infrastructure and build more houses, it has to allow local leaders to make more local decisions,’ she added.
‘Allowing for more flexibility and freedom within the current structures will allow local places to tailor them to their needs and unlock more development.’
