The living standards challenge facing the Metro Mayor

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There was an event in Bristol recently to discuss a newly published report by the Resolution Foundation – “A Western Union: living standards and devolution in the West of England“. This report discusses the living standards challenge facing the soon to be elected West of England Metro Mayor. It’s a report that sets out the statistics demonstrating the gaps between pay and productivity, wages and house prices/rents and geographically between areas of South Bristol and Bath compared to the rest of the city region. It also highlights how low earners and single parents have faired the worst since the recession. It sets out very clearly what we already know, and have know for some time, that the West of England is a relatively prosperous city region. We faired pretty well during the recession and our recovery since has been rapid, but we face particular challenges some borne out of that success and some more entrenched in the very nature of our city region.

Ask anyone what the issues are for the West of England and housing will likely be pretty close to the top of their list (alongside transport). The challenge here is huge compared to other city regions, house prices are at least 10 times higher than the typical salary, there’s a lower proportion of people living in social rented accommodation and an increasing number reliant on private renting. Rents in the West of England are now 38% higher than in other city regions, making up 41% of the typical gross monthly salary, that’s an insane amount.

The other major challenge identified in the West of England is the distribution of economic success. On average household incomes are higher in our city region than they are in most others, as are employment rates, but these average figures hide a number of significant divides and inequalities demonstrating that not everyone has shared in this relative success. The rise in productivity is not being translated into increasing pay and it is the lower paid workers who have faired less well in recent years. The post-crisis pay squeeze has been felt most by low to middle earners in the West of England.

Anyway, back to the event itself. There was a panel including Conor D’Arcy from the Resolution Foundation; the Mayor of Bristol, Marvin Rees; Jaya Chakrabarti of Nameless Media; and John Savage from the Chamber of Commerce. After an initial introduction to the report from Conor, the other participants then set out what they thought were the key challenges facing the new metro mayor and what the role entailed. There was relative agreement about the role itself, with some concerns expressed about the central imposition of this new metro mayor on our area, but also general acceptance that is was going to happen therefore we had to make the most of it.

The participants each covered a range of issues with Marvin setting out how he thought we should be talking about behaviours rather than structures and that the role was about collaboration, emotional intelligence and complementary sovereignty. The difficult task would be to find shared priorities given the diversity of the patch. Jaya talked about the need for civic leadership and how this could work at a city region level before going on to raise concerns about in-work poverty and how this is a key issue across our area. John reminded us about the inequalities across our divided city region and how these included the same areas as those of 10/20 years ago, leaving the same people behind decade after decade. He outlined how he thought the role of the metro mayor was an enabling one, which would undoubtedly be hindered by the leadership of some of the constituent authorities.

The discussion that followed was varied and initially picked up on the housing crisis and the problems young people were experiencing across the city region, with the need to build more affordable homes emphasised as well as the need to control rents and improve the security of private sector tenancies. There was also a debate about sovereignty, centralisation and power distribution, with most agreeing that the relationship between government and local councils was more like a parent/child relationship, with the government in control. The need for a structural and cultural rebalancing of sovereignty was stressed, with the point made that devolution seemed to be about devolution of austerity rather than power and that for city regions to succeed in addressing inequalities there needed to be more resource as well as responsibility passed down by government. It was suggested that cities also needed to be proactive, setting out how they want to solve their own problems, then they are likely to receive more support from government to enable those solutions.

One of the concerns raised was regarding the different levels of governance and areas covered and how these would work together. Clearly with North Somerset not included as part of the West of England Combined Authority or as part of the metro mayor area, this presents some challenges, given they are part of the Local Enterprise Partnership area. Other anomalies were also identified, with Bath and North East Somerset included in a different Health Partnership Area and a different Housing Market Area. Working across the area is complex and developing shared agendas a real challenge.

The Resolution Foundation report makes three main recommendations on priority areas for the new metro mayor:

  • Become Britain’s first full employment city – further progress could be made on boosting employment rates in deprived parts of the West of England and for single parents to edge close to that goal of full employment.
  • Boost pay for low and middle earners – the Metro Mayor should act as convenor to encourage productivity-raising responses to the National Living Wage as well as promoting uptake of the voluntary Living Wage.
  • Build more affordable homes – affordable housing should be front and centre of the combined efforts from local leaders, with a key role for the Metro Mayor to drive through the process of implementing the Joint Spatial Plan to deliver new homes.

These priorities, along with developing shared agendas and collaborating across the city region and with Whitehall and Westminster are what this new role is all about. Despite the perceived lack of powers and resource there is a glimmer of an opportunity that needs to be taken. The candidates are currently being announced and the election for the first Metro Mayor takes place in May this year. Given there are no other local elections this year it will certainly be interesting to see if this election will manage to grab the attention of the voters and what the turnout will be.

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