6. Institutions and Policies for “Levelling Up” and “Left Behind Places”

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Notes

1 Collier P (2018) The Future of Capitalism: Facing the New Anxieties. London: Allen Lane, at 152–153.

2 Sandbu M (2020) The Economics of Belonging: A Radical Plan to Win Back the Left Behind and Achieve Prosperity for All. Princeton: Princeton University Press.

3 There are also other major trends and developments that will have profound uneven implications for regions, cites and localities in the advanced economies, including demographic ageing, historically high levels of public debt, and imbalances and conflicts that characterize the global trading system. On the latter, see, for example, Pettis M (2013) The Great Rebalancing: Trade, Conflict and the Perilous Road Ahead for the World Economy. Princeton: Princeton University Press; and Rodrik D (2018) Straight Talk on Trade: Ideas for a Sane World Economy. Princeton: Princeton University Press.

4 UK in a Changing Europe (2021) Brexit and Beyond: Policy. UK in a Changing Europe. https://ukandeu.ac.uk/wp-content/uploads/2021/02/87864-Brexit-and-Beyond-Policy.pdf/.

5 Delwaide J (2011) The return of the state? European Review, 19: 69–91.

6 Gray M and Barford A (2018) The depths of the cuts: The uneven geography of local government austerity. Cambridge Journal of Regions, Economy and Society, 11: 541–563; Lobao L, Gray M, Cox K and Kitson M (2018). The shrinking state? Understanding the assault on the public sector. Cambridge Journal of Regions, Economy and Society, 11: 389–408.

7 In most countries, the drop in gross domestic product (GDP) in the second quarter of 2020 was dramatic. Compared with the same quarter in 2019, GDP fell by 20.4% in the UK, 12.4% in the Eurozone, 10.4% in the G7 and 10.5% in the Organisation for Economic Co-operation and Development (OECD); Economic Indicators, No. 02784, January 2021. London: House of Commons.

8 See https://www.mckinsey.com/~/media/McKinsey/Industries/Public%20Sector/Our%20Insights/The%2010%20trillion%20dollar%20rescue%20How%20governments%20can%20deliver%20impact/The-10-trillion-dollar-rescue-How-governments-can-deliver-impact-vF.pdf/.

9 Agnew J and Entrikin JN (2004) Introduction: The Marshall Plan as model and metaphor. In J Agnew and JN Entrikin (eds.), The. Marshall Plan Today: Model and Metaphor, pp. 1–22. London: Routledge.

10 Organisation for Economic Co-operation and Development (OECD) (2020) Building Back Better: A Sustainable, Resilient Recovery after COVID-19. Paris: OECD.

11 Climate Change Committee (2020) COVID-19 Can Be An Historic Turning Point in Tackling the Global Climate Crisis, 25 June. https://www.theccc.org.uk/2020/06/25/covid-19-can-be-an-historic-turning-point-in-tackling-the-global-climate-crisis/; Mazzucato M (2020) Covid-19 and the Green New Deal, 1 December. United Nations, Department of Economic and Social Affairs blog. https://www.un.org/development/desa/undesavoice/more-from-undesa/2020/12/50538.html/.

12 Tankersley J (2021) Biden to propose $6 trillion budget to make U.S. more competitive. The New York Times, 17 June. https://www.nytimes.com/2021/05/27/business/economy/biden-plan.html/.

13 Beatty C, Fothergill S and Powell R (2007) Twenty years on: Has the economy of the UK coalfields recovered? Environment and Planning A: Economy and Space, 39: 1654–1675.

14 Mellish T, Luzmore N and Shahbaz A (2020). Why were the UK and USA unprepared for the COVID-19 pandemic? The systemic weaknesses of neoliberalism: A comparison between the UK, USA, Germany, and South Korea. Journal of Global Faultlines, 7: 9–45.

15 For example, House of Commons Business, Energy and Industrial Strategy Committee (2021) Post-Pandemic Economic Growth: Levelling Up, 26 July (HC 566).

16 HM Government (2021) Building Back Better: Our Plan for Growth, London: HM Government.

17 New Economics Foundation (2008) Green New Deal. London: New Economics Foundation.

18 See Chapters 2–4; see also Bristow G and Healey A (eds.) (2018) Economic Crisis and the Resilience of Regions: A European Study. Cheltenham: Edward Elgar; Martin RL, Bailey D, Evenhuis E, Gardener B, Pike A, Sunley P and Tyler P (2019) The Economic Performance of Britain’s Cities: Patterns, Processes and Policy Implications (Economic and Social Research Council (ESRC) Structural Transformation, Adaptability and City Economic Evolutions Research Project). www.cityevolutions.org.uk; Martin RL and Gardiner B (2021) The policy challenges of levelling up. In C Berry, J Froud and T Barker (eds.), The Political Economy of Industrial Strategy in the UK, pp. 215–234. Newcastle upon Tyne: Agenda.

19 For example, Coyle D and Sensier M (2020) The imperial treasury; Appraisal methodology and regional economic performance in the UK. Regional Studies, 44: 283–295.

20 See https://www.theguardian.com/politics/2009/oct/06/michael-white-conservative-conference-diary/.

21 Martin RL, Gardiner B and Tyler P (2011) Does spatial agglomeration increase national growth? Evidence from the European Union. Journal of Economic Geography, 11: 979–1006.

22 Mazzucato M and Dibb G (2019) Missions: A Beginner’s Guide (Policy Brief, December). Institute for Innovation and Public Purpose (IIPP). https://www.ucl.ac.uk/bartlett/public-purpose/sites/public-purpose/files/iipp_policy_brief_09_missions_a_beginners_guide.pdf/.

23 Mazzucato and Dibb (2019), see Reference 22.

24 Mazzucato and Dibb (2019), see Reference 22.

25 Centre for Cities (2021) So You Want to Level Up? London: Centre for Cities; Onward (2020) Measuring Up for Levelling Up. London: Onward.

26 Centre for Cities (2021), see Reference 25; Local Trust (2019) Left Behind? Understanding Communities on the Edge. London: Local Trust.

27 Organisation for Economic Co-operation and Development (OECD) (2019) Making Decentralisation Work: A Handbook for Policymakers. Paris: OECD.

28 Tomaney J and Pike A (2021) Levelling up? Political Quarterly, 91: 43–48.

29 Beer A, McKenzie F, Blažek J, Sotarauta M and Ayres S (2020) Every Place Matters: Towards Effective Place-Based Policy (RSA Policy Impact Book Series). London: Routledge.

30 Jennings W and Stoker G (2019) The divergent dynamics of cities and towns: Geographical polarisation and Brexit. Political Quarterly, 90(S2): 155–166.

31 Iammarino S, Rodríguez-Pose A and Storper M (2018) Regional inequality in Europe: Evidence, theory and policy implications. Journal of Economic Geography, 19: 273–298.

32 Bartik TJ (2020) Using place-based jobs policies to help distressed communities. Journal of Economic Perspectives, 34: 99–127.

33 Rodrik D and Sabel C (2019) Building a Good Jobs Economy (Working Paper). Harvard. https://drodrik.scholar.harvard.edu/publications/building-good-jobs-economy/.

34 Foray D, Eichler M and Keller M (2020) Smart Specialisation Strategies—Insights gained from a unique European policy experiment on innovation and industrial policy design. Review of Evolutionary Political Economy, 2: 83–103.

35 Froy F and Giguère S (2010) Putting in Place Jobs that Last: A Guide to Rebuilding Quality Employment at Local Level (Local Economic and Employment Development (LEED) Working Papers). Paris: Organisation for Economic Co-operation and Development (OECD).

36 Barca F (2009) An Agenda for a Reformed Cohesion Policy (Independent report prepared at the request of Danuta Hubner, Commissioner for Regional Policy); Beer et al. (2020), see Reference 29.

37 Plumb N, McNabola A and Alakeson V (2021). Backing Our Neighbourhoods: Making Levelling Up Work by Putting Communities in the Lead. London: Power to Change; Tyler P (2019) Regenerating Left Behind Places: Lessons from the Past. Cambridge: Department of Land Economy, University of Cambridge. https://www.landecon.cam.ac.uk/system/files/documents/left-behind-tyler-august-2019.pdf/.

38 Morgan K and Sabel C (2019) The experimentalist polity. In Radical Visions of Future Government, pp. 75–81. London, National Endowment for Science, Technology and the Arts (NESTA).

39 OECD (2019) Asymmetric Decentralisation: Policy Implications in Colombia. Paris: OECD.

40 Tomaney J, Pike A, Torissi G, Tselios V and Rodríguez-Pose A (2011) Decentralisation Outcomes: A Review of Evidence and Analysis of International Data (Report for the Department of Communities and Local Government: London).

41 St. Denny E (2016) What Does It Mean for Public Policy to be ‘Made in Wales’? LSE BPP blog, 19 October. https://blogs.lse.ac.uk/politicsandpolicy/what-does-it-mean-for-public-policy-to-be-made-in-wales/; Trench A (ed.) (2007) Devolution and Power in the United Kingdom. Manchester: Manchester University Press.

42 Paun A (2018) Saving the Union from Brexit Will Require Bold Thinking about the Constitution, 13 September, IfG blog. https://www.instituteforgovernment.org.uk/blog/saving-union-brexit-will-require-bold-thinking-about-constitution/.

43 Pike A, Kempton L, Marlow D, O’Brien P and Tomaney J (2016) Decentralisation: Issues, Principles and Practice. Newcastle upon Tyne: Centre of Urban and Regional Development Studies (CURDS), Newcastle University.

44 Fothergill S and Gore T (2021) Plan for the North: How to Deliver the Levelling Up that’s Really Needed. Sheffield: Centre for Regional Economic and Social Research, Sheffield Hallam University.

45 UK2070 Commission (2021) Make No Little Plans: Acting at Scale for a Fairer and Stronger Future. London: UK2070 Commission.

46 MacKinnon D (2020) Governing uneven development: The Northern Powerhouse as a “state spatial strategy”. Territory, Politics, Governance, 9(5), 613–635.

47 Wills J (2016) Locating Localism: Statecraft, Citizenship and Democracy. Bristol: Policy Press.

48 Fothergill and Gore (2021), see Reference 44.

49 OECD (2019), see Reference 27.

50 Pike A, O’Brien P, Strickland T, Thrower G and Tomaney J (2019) Financialising City Statecraft and Infrastructure. Cheltenham: Elgar.

51 Martin RL, Pike A, Tyler P and Gardiner B (2016) Spatially rebalancing the UK economy: Towards a new policy model? Regional Studies, 50, pp. 342–357.

52 Pike et al. (2019), see Reference 50.

53 See https://www.brookings.edu/blog/up-front/2021/08/04/what-are-build-america-bonds-or-direct-pay-municipal-bonds/.

54 See https://www.localis.org.uk/wp-content/uploads/2015/09/loc_municipal_bonds_web.pdf/. The PWLB was in fact abolished in 2020 and its functions transferred to HM Treasury, where they are administered through the UK Debt Management Office.

55 HM Treasury and Communities and Local Government (2010) Total Place: A Whole-Area Approach to Public Services. London: HM Treasury and Communities and Local Government.

56 National Audit Office (NAO) (2013) Case Study on Integration: Measuring the Costs and Benefits of Whole-Place Community Budgets. London: NAO.

57 Heseltine M (2012) No Stone Unturned in Pursuit of Growth. London: Department for Business, Innovation and Skills.

58 International Monetary Fund (IMF) (2018) Assessing Fiscal Space: An Update and Stocktaking, 15 June. Washington, DC: IMF.

59 Rodríguez-Pose A and Wilkie C (2018) Strategies of gain and strategies of waste: What determines the success of development intervention? Progress in Planning, 133. https://www.sciencedirect.com/science/article/abs/pii/S0305900618300047/.

60 McKay R (2001) Regional taxing and spending: The search for balance. Regional Studies, 35: 563–575.

61 Klagge B, Martin R and Sunley P (2017) The spatial structure of the financial system and the funding of regional business: A comparison of Britain and Germany. In R Martin and J Pollard (eds.), Handbook on the Geographies of Money and Finance, pp. 125–155. Cheltenham: Edward Elgar.

62 Gardiner B and Martin RL (2019) There could be a case for more localised capital markets. Public Finance, 14 June. https://www.publicfinance.co.uk/opinion/2019/06/there-could-be-case-more-localised-capital-markets/.

63 Michie R and Wishlade F (2014) Business Development Banks and Funds in Europe: Selected Examples. Glasgow: European Policies Research Centre, University of Strathclyde.

64 Mazzucato M and Macfarlane L (2019) A Mission-Oriented Framework for the Scottish National Investment Bank. London: UCL Institute for Innovation and Public Purpose.

65 Bamberger L and Katz B (2019) How Financial Innovation Can Enable Inclusive Opportunity Zones. https://drexel.edu/nowak-lab/publications/reports/voices-from-the-field/.

66 Bamberger and Katz (2019), see Refence 64.

67 Institute for Fiscal Studies (IFS) (2020) Levelling Up: Where and How? London: IFS.

68 In Austria, the Österreicche Raumordnungskonferenz (Spatial Planning and Development Conference) coordinates national strategies and the territorial development interests of different spatial levels (states, cities and municipalities). In Germany, the Geminschaftsaufgabe Verbesserung der Regionalen Wirtschaftsstuktur (Joint Task Improvement of Regional Structures) brings together the federal government and state (regional) governments to set out an annual framework plan, with a calibrated voting system to ensure consensus across levels of government.

69 This phrase was used by Lord Heseltine in the 1980s to draw attention to the fact that UK government spending on defence and public purchasing, which greatly exceeds that on regional policy, tends to favour the more prosperous areas of the country, thereby effectively countering the impact of the regional aid intended to support economically lagging regions.

70 IFS (2020), see Reference 67.

71 Atkinson RD, Muro M and Whiton J (2019) The Case for Growth Centers: How to Spread Tech Innovation across America. Washington, DC: Brookings Institution.

72 Forth T and Jones R (2021) The Missing £4bn: Making R&D Work for the Whole UK. London: National Endowment for Science, Technology and the Arts (NESTA); UK2070 Commission (2021), see Reference 45.

73 Marshall JN, Bradley D, Hodgson C, Alderman N and Richardson R (2005) Relocation, relocation, relocation: Assessing the case for public sector dispersal. Regional Studies, 39: 767–787.

74 Nickson S, Mullens-Burgess E and Thomas A (2020) Moving Out: Making a Success of Civil Service Relocation. London: Institute for Government.

75 Rycroft P (2020) The civil service survived Dominic Cummings. Now comes the hard bit. Prospect, 18(November).

76 The recent establishment of a Levelling Up Unit in the Cabinet Office is a potentially useful step in this direction. As this book was being submitted for publication, a new Secretary of State for Housing, Communities and Local Government was appointed, who is also to be in charge of the government’s “levelling up” agenda for the UK, although precisely what his remit and powers will be are unknown.

77 Department for Environment, Food and Rural Affairs (DEFRA) (2017) Rural Proofing. London: DEFRA.

78 Smith C (2021) Government Investment Programmes: The “Green Book”, 17 March. House of Lords Library Blog. https://lordslibrary.parliament.uk/government-investment-programmes-the-green-book/.

79 Hope N and Leslie C (2009) Challenging Perspectives: Improving Whitehall’s Spatial Awareness. London: New Local Government Network.

80 Harding A and Holden J (2015) Using Evidence: Greater Manchester Case Study. London: What Works Centre for Local Economic Growth.

81 de Propris L and Bailey D (2020) Industry 4.0 and Regional Transformations. London: Routledge; New Economics Foundation (2021) Powering the Just Transition. London: New Economics Foundation; Rodrik D and Sabel C (2019) Building a Good Jobs Economy (Working Paper). Harvard. https://drodrik.scholar.harvard.edu/publications/building-good-jobs-economy/.

82 Foundational Economy Collective (2020) The Foundational Approach. https://foundationaleconomy.com/introduction/; Kaufman M (2018) Four Lessons from Our Policy Evaluation Experiments, 15 June. What Works Centre for Local Economic Growth blog. https://whatworksgrowth.org/blog/four-lessons-from-our-policy-evaluation-experiments/.

83 Katz B and Wagner J (2014) The Rise of Innovation Districts: A New Geography of Innovation in America (Metropolitan Policy Program). Washington, DC: Brookings Institution.

84 CLES (2021) Community Wealth Building: A History. Manchester: CLES.

85 Raworth K (2017) Doughnut Economics: Seven Ways to Think Like a 21st Century Economist. London: Cornerstone.

86 Foundational Economy Collective (2020), see Reference 82.

87 Lee N (2019) Inclusive growth in cities: A sympathetic critique. Regional Studies, 53: 424–434.

88 Chrysopoulou A (2020) The vision of a well-being economy. Stanford Social Innovation Review, 16(December).

89 De Ruyter A, Martin RL and Tyler P (2021). Geographies of discontent: Sources, manifestations and consequences. Cambridge Journal of Regions, Economy and Society, 14(3), 381–393; Evenhuis E, Lee N, Martin RL and Tyler P (2021) Rethinking the political economy of place: Challenges of productivity and inclusion. Cambridge Journal of Regions, Economy and Society, 14: 3–24.