One of Labour’s initial moves upon taking office was to rebrand the Department for Levelling Up, Housing and Communities, dropping the slogan popularized during Boris Johnson’s era following the 2019 “red wall” election. Now, under the guidance of Deputy Prime Minister Angela Rayner, it’s known as the Ministry of Housing, Communities and Local Government. This new name signifies a shift in focus. While there’s still a goal to uplift post-industrial towns in the north and Midlands, the main mission of the new administration is to enhance living standards across the nation by ushering in an era of greater growth and productivity.
As economic uncertainties and somber forecasts loom, the hurdles to this approach have been noted extensively. Despite these efforts, regional disparities throughout the country remain stubbornly entrenched. A report released this week by the Centre for Cities think tank serves as a poignant reminder of the significant gaps that initially fueled discussions about leveling the playing field and revamping the economy.
According to the annual Cities Outlook study, a typical worker in London earns at least 68% more than their counterpart in Burnley. The top 10 cities with the highest wages are predominantly in the southeast, home to a significant number of companies in advanced industries like neurotechnology and artificial intelligence. Brighton, for instance, boasts four times as many “new economy” businesses per 10,000 residents compared to Sunderland.
The sustained period of polarization and upheaval in British politics, from the Brexit referendum in 2016 to the rise of Reform UK, has partially sprouted from these imbalances. Labour is committed to addressing such divides. However, with the current economic climate, any substantial growth is expected to be modest in the short term and potentially beyond.
In the northern regions, growth will likely concentrate in cities like Manchester and Leeds and may only gradually spread to surrounding areas. The Centre for Cities report highlights that certain places—often the larger ones—are better positioned to attract investment and emerging industries.
In this context, Labour must go beyond merely echoing themes of growth and innovation, essential as they are. A wider social vision, centered on collective wellbeing accessible to all communities, is necessary. This could involve ensuring public amenities like transport, leisure, cafes, parks, and arts are universally accessible and affordable. A well-funded “universal basic infrastructure” could drive economic growth but is also a valuable end in itself.
These aren’t unfamiliar concepts to Labour. In a 2022 address, Chancellor Rachel Reeves referenced researcher Karel Williams from Manchester University, who has extensively explored mostly low-wage sectors like care and retail that every community relies on. In his recent book, “When Nothing Works,” Williams and his co-authors propose “livability” as a key political objective, suggesting that “households on low and middling incomes should not suffer undue disadvantage in today’s society.” As the government aims for the noble yet challenging goal of a high-wage, high-growth economy, it should integrate this socially inclusive vision as well.
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