Up in the air
Well, we’ve got a new government and whilst I have serious doubts about its prospects - and ours - let’s give it a chance. Fine words butter no parsnips, as they say north of the border, and now’s the time for action. New chancellor George Osborne’s emergency Budget will be upon us within 50 days and much of the detail of what will be included in this year’s £6bn cuts package will be included in that.
With no apologies for being parochial, what does it mean for Midlands plc? We all know there are going to be huge cuts in public expenditure and these are likely to have a huge impact on Birmingham where an inordinate number of people are employed by the state.
The fate of the regional development agencies - Advantage West Midlands and East Midlands Development Agency - is still uncertain. The Conservatives aren’t fans and the Liberals would rather they concentrate on business support (which is largely what they have been doing anyway for the last year). Will they be done for by Osborne’s Budget broadsword? I hope not. There is undoubtedly waste in the public sector but the RDAs, in this part of the world at least, have proved their worth not just in terms of business support but in helping to facilitate large-scale regeneration and renewal of our towns and cities. There ability to do the latter in future is in serious doubt but it would be a shame to throw the baby out with the bath water. Re-thought and re-focused RDAs is perhaps the best the agencies and their supporters can hope for.
Big public projects must also be in doubt - or at least subject to delay - because of the commitment to slash public expenditure. All parties have given support to huge infrastructural projects but can such support taken for granted given the level of cuts discussed?
The third area that is key to the Midlands is manufacturing and its future. What’s slightly concerning here is that the Midlands presence in the cabinet is virtually non-existent. Ken Clarke, who can speak out on what the Midlands needs, is leaving business behind to become the justice secretary and lord chancellor. Meriden MP Caroline Spelman is the new environment secretary but there’s little other Midlands involvement at the top level of government. It remains to be seen whether the new government will follow Labour’s lead and have regional ministers. If not, there must be a real fear that there are no Midlands industry champions on the front benches. Perhaps we will come to depend on lords Jones and Bhattacharyya to bat for our businesses over the coming months.
These are all subjects we will are sure to return to, but one final thought. Perhaps the Conservative-Liberal coalition in Birmingham City Council should be seen as a template for the new government? You will have your own thoughts on whether that is an enticing prospect or not.
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