logo
'We are not alone in our disappointment' for Glasgow

'We are not alone in our disappointment' for Glasgow

Here is a practical example of both national governments supporting a local partnership of business, academia and city council to encourage regional economic growth.
It would have been even more cheering if we had arrived home to find that Glasgow and its city region were benefitting from a similar approach in the comprehensive spending review. All it would have taken was a single sentence saying that the UK and Scottish governments would be working together to establish long-term flexible funding deals for Scottish cities to match those already sorted out for Greater Manchester and the West Midlands. No such sentence appeared.
Read more:
Instead, I found myself reading Chief Secretary of the Treasury, Darren Jones, arguing that in Scotland the decision to "empower the city regions rests firmly with the Scottish Government". If he really believes that, we are at risk of stepping back a decade in time.
Eleven years ago, it was the UK and Scottish governments that together announced the £1.3 billion Glasgow City Region Deal. That deal was the first of many in Scotland, each designed in collaboration with local stakeholders to demonstrate how joint working between both governments can initiate real empowerment on the ground.
The chamber, senior business leaders and leading academics have all invested time and energy to help create the structures and capabilities of the Glasgow City Region. We did so in the belief that there was good faith in their value being demonstrated by both the UK and Scottish governments. We were encouraged by decisions made by the last UK Government to allocate over £300 million in additional resources to help the city region grow.
Read more:
The most recent was the announcement of £160m for a 10-year investment zone supporting the growth of advanced manufacturing. The chamber was involved in the process for project selection and there were so many more exciting projects - and in many other industry sectors - that could have been funded had the money been available. We can see the region's growth potential and how it can be unlocked.
Over time, we have become a vigorous advocate for regional devolution deals. We believe that many of the projects our members want to see - particularly in skills, infrastructure, and innovation - are best delivered at the regional level. Projects like the Clyde Metro transport system, our three university-led innovation districts for emerging industries, our city centre renewal plan and investment help to grow our airport and our conference centre, all demonstrate the kind of ambition that regional empowerment can unlock.
We shouldn't really need to argue the importance of regional devolution deals with the UK Government. It sets out all the reasons in several papers, including its English Devolution White Paper: the UK's low productivity trap, the stagnation of living standards and the unusual economic underperformance of all the UK major cities outside London.
The chamber had therefore asked for a devolution deal with long-term funding and greater flexibility, but there is no such deal being proposed for Glasgow – or for any other region in Scotland.
Read more:
Instead, Glasgow is offered confirmation of the investment zone announced by the previous government, a share in a new UK-wide local growth fund, and support from the National Wealth Fund.
These are all welcome but the investment zone had already been announced and the local growth fund looks set to be small once funds have been allocated across the country. It is also unclear if those funds are expected to deliver on old commitments such as that for Greenock town centre.
The National Wealth Fund's commitment to a strategic partnership with Glasgow City Region could be more promising, but it is unclear whether there will be any new funds under the control of the regional partnership.
If it helps the region attract private finance for projects, it could still prove valuable. However, it appears from the outside to be more like working with a body such as the Scottish National Investment Bank than a genuine devolution deal.
Read more:
We are not alone in our disappointment. The London-based thinktank the Centre for Cities issued its own report describing Glasgow as the "missing piece in the big cities' jigsaw". Especially worrying is their assessment that the lack of a devolution deal "places Glasgow at risk of falling behind its comparators south of the border".
And yes, of course the Scottish Government has a poor track record on regional devolution. So much of the momentum building behind Glasgow City Region has come from UK Government funding programmes. One notable exception was the Clyde Mission - a Scottish Government initiative that promised much but ultimately fizzled out and ended up being passed to the city region with approaching £30m in funding.
Otherwise the Scottish Government has undoubtedly been slow to devolve.
As one example, the announcement in the programme for government of £2m towards a Glasgow City Region response to maritime industry skills shortages was welcome, but there is a much bigger prize. Passing apprenticeship funding from Skills Development Scotland direct to the regions instead of to the Scottish Funding Council would be much a better long-term aim.
Regional devolution has not been the Scottish Government's natural default, so all eyes have tended to fall on the UK Government.
If Darren Jones is signalling that momentum on regional devolution is to be stalled until the Scottish Parliamentary elections next May, then sadly, so too the growth potential of Scotland's largest city region may be stalled as well.
Stuart Patrick is chief executive of Glasgow Chamber of Commerce.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Reeves needs to take a leaf out of Gordon Brown's book
Reeves needs to take a leaf out of Gordon Brown's book

Telegraph

timean hour ago

  • Telegraph

Reeves needs to take a leaf out of Gordon Brown's book

In 2002, Gordon Brown introduced the small breweries' relief (SBR), slashing taxation for UK 'micro-breweries'. The then-chancellor's instincts were broadly statist. Britain's tax burden grew from 31pc to 34pc of GDP from 1997 to 2010 – the decade he spent running the Treasury followed by three more as prime minister. But Brown also had commercial acumen, understanding the need not just to talk about economic growth but create an enabling environment to make it happen. His SBR tax-break, which saw breweries producing up to 5,000 hectolitres (around 880,000 pints) annually paying half the standard duty rate, was a case in point. SBR was transformative, sparking the formation of thousands of independent breweries – creating not only thousands of jobs, but hundreds of millions of pounds in tax revenue from production, distribution and sales activities that wouldn't otherwise have existed. Britain's declining beer industry was revolutionised, as small, often family-run breweries emerged to compete with large national and global producers. There was a brewing resurgence not just in cities, but in towns and rural areas too, as 'craft breweries' became rooted in countless UK communities. The financial relief offered by SBR encouraged investment, innovation and a dramatic rise in beer styles – more and better products at lower prices. But, above all, Brown's anti-statist, tax-cutting move generated more jobs, higher exports and far more tax revenues too. Rachel Reeves had a picture of Gordon Brown on her wall as a student. Yet today's Chancellor should remember that her political hero and mentor, for all the big-state proclivities she shares, was pragmatic and courageous enough to sometimes shrug off the comfort blanket of Left-wing ideology and do what worked. Brown cut the basic rate of income tax from 23pc in 2000 to 20pc in 2007, stimulating economic activity. He reduced the main rate of corporation tax from 33pc to 28pc and the small business rate from 24pc to 19pc. Most famously, in his first Budget in 1997, he slashed the long-term rate of capital gains tax (CGT) from 40pc to 10pc for those building businesses, super-charging innovation and entrepreneurship. Yes, Brown made some disastrous calls – not least selling-off much of the UK's gold stock for a song and the abolition of pensions funds' dividend tax credits, costing hundreds of billions of pounds in compounded returns foregone, seriously weakening UK retirement funds. But despite his political tribalism and robotic delivery at the Commons dispatch box, he was capable of intellectual agility, demonstrating policymaking nous which, from time to time, really hit the spot. Since becoming Chancellor last July, Reeves has shown no such agility. She has hiked tax rates relentlessly, with her October Budget comprising a huge £40bn annual tax increase plus £30bn of extra yearly state borrowing. Having imbibed the soft-Left nostrums of mediocre academic economics, she is convinced that state spending, financed by taxation and borrowing, is the only route to growth. In the real world, her crude, naive Keynesianism, implemented at a time of already serious fiscal peril, has caused the decidedly lacklustre economy she inherited from the Tories to stagnate even more, while driving us to the edge of a fiscal crisis. Hammered by Reeves, consumers have pulled in their horns and business investment has stalled. No surprise, then, that on Friday the Office for National Statistics confirmed that GDP fell by 0.1pc in May, having already contracted 0.3pc the month before.

You're evil if you're not a socialist after reading legendary trilogy
You're evil if you're not a socialist after reading legendary trilogy

The Herald Scotland

time2 hours ago

  • The Herald Scotland

You're evil if you're not a socialist after reading legendary trilogy

By the third volume it was being accused of Stalinism, though the author never became an official Communist 'as they won't let me in'. He never lived to see the full horrors of Stalinism nor the morphing of socialism into a movement obsessed with lavatories. In his day, wrongs to be righted were clearer, more elemental. The ruling peeps, the economic elite, were transparently bad. All the brainy bods were on the Left, marrying morality to intellect, seeking to tip the balance towards equality, to equilibrium, and not – as now – past it to perpetual disharmony. Today, with a ruling elite more left-wing than the workers, no one knows what socialism means beyond something to do with minority rights and yonder environment. Among the proletariat in the schemes it's about as popular as Viz magazine's Leo Tolstoy action figures. As economic theory, i.e. more then mere cultural complaint, it prevails only among boomers, like the present writer, too embarrassed to revisit the certainties of their youth and still insistent, when drunk, that it could work if it weren't for human nature, bad people, lazy people, greedy people. Ye ken: real life. But here we're talking fiction, as set out in three beautifully lyrical volumes. We're talking about a pivotal work of 20th century Scottish literature, one whose first volume has not unnaturally been dropped as a set text in the school curriculum. Former First Minister Nicola Sturgeon described it as 'one of the first books that had me utterly captivated by the lyricism of language and the power of place'. Its heroine, Chris Guthrie 'spoke to, and helped me make sense of, the girl I was'. That was back in the day when she knew what a girl was. On 13 February 1901, a boy was born into a farming family at Hillhead of Seggat, Auchterless, Aberdeenshire. From the age of seven, that boy, James Leslie Mitchell – Grassic Gibbon's real name – was raised in Arbuthnott, in the former county of Kincardineshire. Educated at the parish school and at Mackie Academy in Stonehaven, he departed the latter precipitately after arguing with a teacher. h Novel approach Outside school, he upset the Mearns folk with opinions deemed inappropriate to their way of life. He'd stick his head in a book than into the soil. In 1917, aged 16, he ran away to Aberdeen, became a cub reporter on a local paper, and tried to make the city a soviet in solidarity with the Russian Revolution. Moving to Glasgow, he got a job on Farmers Weekly, where presumably he kept his doubts about agricultural work hidden, while the city's slums and Red Clydeside movement only intensified his zeal. This got him sacked – for fiddling expenses to make donations to the British Socialist Party. Attempted suicide followed, so his family took him back in, hoping rural life might steady him. It did not. In 1919, more for food and lodgings than patriotic duty, he joined the Royal Army Service Corps, serving in Iran, India and Egypt before enlisting as a clerk in the Royal Air Force in 1923, leading to more time in the Middle East. In 1925, Mitchell returned to Arbuthnott to marry local girl Rebecca (Ray or Rhea) Middleton. The couple moved to cheap lodgings in London, where the going was tough until they moved to Welwyn Garden City, Hertfordshire, several million miles from the Mearns. Here, James began writing full time, producing 4,000-odd words a day, including journalism and travel literature. His first book, Hanno: or the Future of Exploration, was published in 1928. Drawing heavily on diffusionism – aye – it investigated the origin of cultural traits, contending that the North-East was full of Picts. READ MORE Rab McNeil: Get your Boots on, we're going shopping for unicorn hair gel Rab McNeil: No wonder the whole Scottish nation loves Nicola (no, not that one) Scottish Icons: William McGonagall - The poet who right bad verses wrote still floats some folk's vessel or boat Scottish Icons: There is a lot of tripe talked about haggis – so here's the truth Going ape In 1932, he used the pseudonym Lewis Grassic Gibbon, from his maternal grandmother's name Lilias Grassick Gibbon, for the first time, when Sunset Song was published. It was the first, and best, in A Scots Quair, which made Gibbon's name. Written in earthy dialect, Sunset Song begins the story of Chris Guthrie, described by Paul Foot in never popular magazine Socialist Review as 'more remarkable than any female character in Jane Austen, George Eliot or even the Brontes'. Her common sense, good nature and level head steer her through life's enervating tragedies, with a narrative matching her progress to the Mearns farming year. The First World War ruins everything, a way of life, the actual lives of young men, even the soil-securing trees (cut down for the war effort). On top of that, the economy had already been moving from rural agriculture to urban manufacturing, from past to future. Not that the old way of life was perfect, in a community riddled with lust, feuds and gossip. Grassic Gibbon was, to put it mildly, ambivalent about agricultural and rural life. Chris shares that ambivalence, drawn towards education and away from the drudgery and narrow horizons of a farming community. She has first to escape the clutches of her father, an ill-tempered, bullying, pious, hypocritical fellow. Men, eh? She marries one, Ewan Tavendale, but the War sees him off too: shot as a deserter. Sunset Song has a political message, but one shot through with humour: ' … Ellison said he was a Bolshevik, one of those awful creatures, coarse tinks, that made such a spleiter in Russia. They'd shot their King-creature, the Tsar they called him, and they bedded all over the place, folk said, a man would go home and find his wife commandeered any bit night and Lenin and Trotsky lying with her.' Grey outlook A Scots Quair moves from village to town to city. Often seen as Sunset Song's poorer companions, Cloud Howe and Grey Granite contrast the Christian socialism of Robert Colquhoun (Chris's second husband) with the hardline Communism of her son. Chris, a grounded quine, focuses more on the eternal verities, where only the land endures, however much subject to change. 'Change … whose right hand was Death and whose left hand Life might be stayed by none of the dreams of men …' Life's trancience ever haunts her: "Their play was done and they were gone …' Life was cruelly transient for Lewis Grassic Gibbon. On 7 February 1935, he died in Welwyn Garden City after an operation for a perforated gastric ulcer. He was 33-years-old. His ashes were buried in the Mearns.

Why John Swinney needs to pander to Donald Trump just like Keir Starmer
Why John Swinney needs to pander to Donald Trump just like Keir Starmer

Scotsman

time2 hours ago

  • Scotsman

Why John Swinney needs to pander to Donald Trump just like Keir Starmer

Sign up to our daily newsletter – Regular news stories and round-ups from around Scotland direct to your inbox Sign up Thank you for signing up! Did you know with a Digital Subscription to The Scotsman, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... How political leaders should deal with Donald Trump will be the subject of much head-scratching in the corridors of power worldwide. But it basically comes down to this: fake smiles and bonhomie, accompanied by bucket-loads of overly lavish praise. At least in public. Too much in private and he'll probably think you're weak. Better to operate on his level and try to cut some kind of deal. He might even see you as a kindred spirit. Perish the thought. Advertisement Hide Ad Advertisement Hide Ad The US President's many character flaws are well known, and his refusal to accept the result of the 2020 US election, his incitement of the angry mob that attacked the US Capitol, and his refusal to rule out taking Greenland from Nato ally Denmark by force demonstrate an alarming attitude towards democracy. READ MORE: Why UK needs to pander to Trump but should not necessarily believe him There is much at stake for Scotland's businesses in his dealings with politicians like John Swinney (Picture: Joe Raedle) | Getty Images Trump's attitude changing over Ukraine? Furthermore, his imposition of swingeing new tariffs on most countries could also be viewed as economic warfare against the democratic world at a time when it is trying to help Ukraine defend itself against Russian despot Vladimir Putin's actual warfare. However Trump's attitude towards that conflict is hopefully changing to one more supportive of Kyiv, and the most important role of other Western leaders is to encourage him to do more to help defeat Putin and less to damage their economies. Advertisement Hide Ad Advertisement Hide Ad After Trump treated Ukrainian President Volodymyr Zelensky disgracefully in the White House, John Swinney suggested his UK state visit should be cancelled. He may have had right on his side, but it was a diplomatic mistake. Keir Starmer is obviously no Trump fan but he has been doing everything he can to placate Trump for the simple reason that it is in the national interest. Swinney needs to swallow his pride and do much the same in the interests of Scottish businesses struggling to cope with Trump's tariffs. Given his mother was Scottish and he likes to call this country 'home', we might be able to get special treatment.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store