The Centre for Cities once again attended all three party conferences this year. We ran two fringe events at each conference: our Cities Question Time (sponsored by DLA Piper) and another on transport (sponsored by Virgin Trains). Speakers included several Ministers and frontbench spokespeople - Hazel Blears, Ruth Kelly, Alistair Burt and Simon Hughes – plus five of the eight core city leaders (Richard Leese, Helen Holland, John Shipley, Warren Bradley and Mike Whitby).

This short report brings together the key points from these events, plus some general observations on the state of the urban agenda in each of the three main political parties.

Liberal Democrats

The Lib Dems launched “The Power to be Different”- a new policy paper on local and regional governance in England, calling for greater devolution of power, local flexibility, and changes to the local government finance system. They remain opposed to a formal city-regional tier, and the imposition of elected mayors.

Cities Question Time

Speakers: Simon Hughes MP (President of Lib Dems), John Shipley (Newcastle leader), Warren Bradley (Liverpool leader), Neil Sherlock (CentreForum), Sunand Prasad (RIBA) and Gareth Phillips (DLA Piper).

Key points:

• Government needs to follow the Sub-National Review with some clear moves to devolve power and de-clutter.
• Cities need a clear power of general competence, the power to raise financial resources, and to improve planning at local level. Stronger local control over expenditure is urgently required.
• Affordable housing is a big issue in Northern cities, not just the Greater South East. More social rented housingis needed, as is a bigger role for housing co-ops.
• Newcastle is moving ahead with plans for a City Development Company with Gateshead. John Shipley is keen on supplementary business rates.
• Warren Bradley called for more action to tackle worklessness and low skills. Liverpool Capital of Culture is back on track, with a tighter board now at the helm.

Connecting Cities: what next for transport?

Speakers: John Leech MP (Shadow Transport Minister), Paul Coen (Local Government Association), Jonathan Bray (PTEG) and Tony Collins (Virgin Trains).

Key points:

• The rail network is under-funded (“too little, too late” – John Leech). The Rail White Paper understates the future growth of rail use. Need to maximise the benefit of inter-city rail, lengthen franchises, and promote investment.
• LibDem Future Transport Fund proposal: £12bn, raised from lorry road charging and domestic flight levies, for investment in the rail system.
• City-regions need additional powers (e.g. through Strategic Transport Authorities) to deliver better local transport across functioning economic areas.
• A national road-user charging scheme is needed.
• Transport governance is “chaotic” – Paul Coen.

Labour

Housing featured prominently on the conference fringe in Bournemouth, with Yvette Cooper doing the rounds more than most. John Healey and Angela Eagle both said they were considering supplementary business rates very carefully – we should expect an announcement on that by year-end. The LGA Labour Group launched a report on local leadership, “Labour, leadership and locality”.

Cities Question Time

Speakers: Hazel Blears MP (Communities Secretary), Sir Richard Leese (Manchester leader), Helen Holland (Bristol leader), Tristram Hunt (academic), Kate Creer (DLA Piper) and Oliver Hartwich (Policy Exchange).

Key points:

• Hazel Blears: Government now wants to get on with devolution (“I am a localist, to my bones”). Tackling worklessness will be a key priority, with more co-ordinated action across Whitehall. Ministers want to see a better decision-making process for planning. The case for local ‘recycling’ of benefit savings needs to be made to the Treasury.
• Transport: better east-west transport links are needed not just in London, but also in the North (e.g. Liverpool-Manchester-Leeds).
• Housing: delivery of the Government’s housing targets will depend on the right local financial tools and incentives.
• Climate change: cities need flexibility to innovate and build more sustainably.
• Consultation procedures need to be made more straightforward.

Connecting Cities

Speakers: Ruth Kelly MP (Transport Secretary), David Frost (British Chambers of Commerce); Stephen Joseph (Campaign for Better Transport); Nicky Gavron (Deputy Mayor of London); and Geoff Inskip (Centro-PTA).

• Ruth Kelly: DfT to implement Eddington Study – formal response to Eddington/Stern coming soon. Public sector investment will be focused on rail infrastructure; greater capacity in London; and releasing capacity in cities through demand management. Strong governance is needed to improve urban transport (e.g. strategic authorities like “Transport for Birmingham”). Investment won’t be limited to the South East; regional cities also a key priority.
• Investment critical. Small, low-cost schemes will not be enough to address demand. Need to tackle Crossrail, the Tube PPP, Manchester rail hub.
• Clear support for new strategic transport authorities outside London. But some concern about RDAs’ new planning powers.
• London mayoral model has led to greater leadership on transport – and better integration of policies, strategies and modes. The capital has seen a 5% shift away from the car in the last decade, and 40% increase in bus use.
• Supplementary Business Rates: Nicky Gavron said that only larger businesses would pay in London. David Frost (BCC) was adamant that business should get a vote on every SBR scheme.
• New technologies (e.g. Oyster card) help to increase use of public transport.

Conservative

Michael Heseltine restated his support for elected ‘whole city’ mayors - plus tax incentives for economic growth, Crossrail, and the devolution of quango budgets to local councils. David Cameron repeated his support for elected mayors in his closing speech. And Boris Johnson was confirmed as Tory mayoral candidate for London. We will be hosting the launch of Lord Heseltine’s Urban Task Force report later this year.

Cities Question Time

Speakers: Alistair Burt MP (Shadow Local Government Minister), David Frost (British Chambers of Commerce), Jesse Norman (Policy Exchange) and Howard Bassford (DLA Piper).

Key points:

• Mayors: Heseltine proposed “whole city” mayors, with 4-year terms, combining the roles of city chief executive and leader. Cameron in favour, but many local Conservative leaders are opposed – including Birmingham’s Mike Whitby.
• Supplementary Business Rates would help to reconnect business and local councils. Heseltine proposed that councils retain the SBR revenues from start-ups and new development.
• Regional agencies: Strong words from Eric Pickles during conference, on the need to get rid of regional strategies. Official party policy is a bit more balanced, probably allowing RDAs to continue in the North where there is clear support and need.
• Housing: more homes are needed, but more local engagement needed. Shadow Housing Minister, Grant Shapps, set out the benefits of housing growth and the need to communicate them more clearly to existing residents.

Connecting Cities

Speakers: Steve Norris, Sir Simon Milton (chair, Local Government Association), Mike Whitby (Birmingham leader) and Chris Gibb (Virgin Trains).

Key points:

• Rail: North-South and East-West rail connectivity must be improved – both through investment in the existing network and, possibly, high-speed rail. 7-day network needed, not just 5 days a week. DfT has understated the big increase in demand for rail travel. Price of rail travel is seen by some as comparatively high.
• Support for Crossrail, but concern about need for transport investment elsewhere.
• Funding of major projects is still too complex – Birmingham New Street Station, for example.
• Local transport: decisions need to be taken at sub-regional level, with different governance models in different places. Disagreement on need for elected mayors.
• Greater investment in public transport is required before further moves toward road-user charging locally or nationally.

Looking ahead

The Centre for Cities will spin out from ippr at the end of October, and move into new offices on London’s South Bank. Next year, we are planning to run a consolidated “Urban Hub” programme at all three party conferences, with a range of partners including the Core Cities Group. With Labour in Manchester and the Conservatives in Birmingham, cities are bound to feature heavily on the 2008 conference agenda.

With thanks to our 2007 Party Conference Sponsors