For almost 100 years as a country, we’ve been trying to ‘level up’. From the Special Areas Act in 1934 through to the development of Enterprise Zones in 1981 and Regional Development Agencies in 1999, the government has tried to ensure an even wealth distribution across the country.
Yet the North-South divide persists, and in many ways has grown since the austerity years following the financial crash of 2008. Furthermore, with the recent deterioration in the economy caused by Liz Truss’ mini-Budget, there is an even greater need for the four key objectives spelled out in the White Paper – boosting productivity, spreading opportunities, restoring local pride, and empowering local communities.
As someone who has been involved with businesses for almost all my working life, either running companies or working inside professional bodies, I appreciate that this is one of the most challenging times in modern history with a toxic cocktail of rising prices, Covid hangover, increasing automation, post-Brexit uncertainty and climate change.
For businesses to thrive, they need some degree of certainty, which unfortunately the government has been unable to provide. Indeed, while I believe the Levelling Up White Paper to be an incredibly important document, unless there is proper political will and investment to support its objectives, it will remain just that – a document gathering dust on a shelf in Whitehall.
For me, there are four key areas that any Levelling Up agenda needs to focus on, all of which will make a real difference to our members plus the millions of SMEs in the UK.
Firstly, our taxation system needs to be made much more progressive – both at a national level and indeed at a local authority level. We also need to deal with issues around tax avoidance – particularly those huge international corporations who don’t pay their share of the tax burden.
Secondly, there needs to be a simplified way for local authorities to access funding. At present councils have to bid for a huge range of different grants through ever more complicated bidding processes. Yet, they are best placed to understand the needs of their local economies and with the right funding regime, deliver tailored solutions.
At the Institute of Accountants and Bookkeepers, we are passionate about helping the next generation of finance professionals succeed. Yet skills provision in this country is extremely patchy. So, our third point is that there needs to be better access to both training and funding for our young people.
Finally, I believe that access to affordable housing is also a key part of the Levelling Up agenda. With the recent rises in energy bills, rents and mortgage rates, an increasing proportion of people’s incomes will go into property. We have to find ways of either building more homes or making better use of the existing stock.
My hope is that Rishi Sunak’s new administration will focus their attention on delivering on the objectives set out in the White Paper. This requires proper stakeholder engagement, proper understanding of the issues facing us and proper funding.
Key Points:
• With the North-South divide alive and the economy in turmoil, the need for levelling up is greater than ever before.
• Proper political will and investment are needed to deliver on the Levelling Up White Paper’s objectives.
• The Levelling Up agenda boils down to four key points: taxation, access to funding, access to training, and affordable housing.
This article originally appeared in The Leaders Council’s special report on ‘The Levelling Up agenda’, published on November 30, 2022. Read the full special report here.
Photo by Serena Repice Lentini on Unsplash
