Economic Growth & Poverty – LEPs take note!

There is no guarantee that economic growth will reduce poverty – that’s the conclusion of some excellent work by the Joseph Rowntree Foundation on cities, growth and poverty. I was so pleased to see this report published recently because it reflected the exact point I had been trying to make about the Strategic Economic Plan currently being developed by our Local Enterprise Partnership in the West of England.

My initial views on the West of England LEPs plan for economic growth are set out here in a comment piece for Bristol 24-7 and in an earlier blog here – they’re quite critical about the lack of any attention to inequality of opportunity and the lack of an overall inclusive vision for the city region. The main point being that the plan seeks to focus on GDP/GVA and jobs growth, through key sectors and key locations. None of which does anything directly to address the fact that key areas of the Bristol city region suffer from multiple deprivation and poverty. My contention here is that you can’t have  a plan for economic growth that ignores poverty, the plan needs to be based on that very issue and grow from there. Instead of which what we have is a plan that neatly seeks to sweep whole geographical areas and difficult issues under the carpet and pretend they don’t exist.

The answer of course according to the LEP is to create jobs and grow GDP because that solves all our problems and makes Bristol a more prosperous place. However, as the JRF report points out, productivity and output growth have little short term impact on poverty, and jobs growth will only have a positive impact on those in poverty if the sectors, type and location of jobs are targeted and focused in a way that makes them accessible to those that most need them. I see little evidence in the Strategic Economic Plan for the West of England that suggests this is either their focus or their intention.

To my knowledge, the same areas of Bristol have been in the bottom 10% of the most deprived wards in the country for some considerable time now, they include Ashley, Filwood, Hartcliffe, Lawrence Hill, Southmead and Whitchurch Park. These are all areas where we know there are problems, where unemployment is high, food and fuel poverty are real issues, educational attainment is low and there is a generally a more low skilled workforce. These are also areas that have been the focus of significant levels of regeneration funding and resource over many decades, but yet the problems persist despite these interventions, possibly because we can only ever touch the surface with short term funding or maybe because the interventions were the wrong interventions and not enough has been invested over a long enough period of time?

To my mind the Strategic Economic Plan currently being developed by the business led, unelected, unaccountable quango that is our Local Enterprise Partnership should be where these issues are addressed; where the focus of our attention is on jobs, skills, housing and infrastructure improvements to bring opportunities to the areas that really need them. The reality is that what we have in the West of England is a plan that will merely reinforce the status quo. It will provide jobs in sectors and locations less accessible to those that really need them and will invest funding and opportunities in areas where development is already happening. Why do we need to support and invest more resource in the Science Park, Avonmouth/Severnside, Bath Riverside when these areas are already being developed? Why are they more worthy of infrastructure, funding and support than South Bristol? One has to seriously question the logic that says we will support what is already happening rather than use new resource to make real change where it is most needed. Add to that the fact that the plan is somewhat reluctant to talk about housing which is surely a major cost of living issue for many. Some serious work is needed in this plan to address issues of housing supply and affordability, but once again the plan is found lacking in this respect – perhaps another issue that is just too difficult to deal with?

The danger of the LEPs current approach is we fall into the trap of tackling growth separately to poverty, rather than using growth as an opportunity to address issues of poverty. By doing this we miss the opportunity to really make a difference and we also miss the opportunity to get the most out of growth and realise the true potential of the Bristol city region. With a focus on poverty reduction the economic plan could boost economic growth, productivity, income and spending power as well as reduce the welfare burden. By not addressing poverty we reinforce existing divides and consign whole areas of our city to ongoing poverty and all because we don’t have the vision or ambition to really do something about it.

So what can we change and what needs to happen? It is probably too late to really influence the LEP plan, because let’s face it, they don’t really want to know and will maintain their inherent bias and focus on extracting money from government, to the government’s agenda rather than a local agenda based on need. The answer – an alternative plan? or a groundswell of activity to boost jobs and growth where it is needed? Or just maybe, enough of a challenge to our politicians to make them listen, to be brave enough not to just go along with the LEP and its plan, to change it? One can live in hope!