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Successful cities, sustainable communities

Date of speech	7 November 2007
Location	The Albert Hall Conference Centre, Nottingham
Event summary	Core Cities Summit

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Draft text of the speech - may differ from the delivered version.

Thank you for that introduction. 
 
I spent my student days here in Nottingham and it's always a pleasure to come back.

Nottingham was the last of the core cities to be granted city status, 110 years ago, at the end of the nineteenth century that had seen our great regional cities rise to world prominence as powerhouses of industry and commerce, art and culture, science and innovation.

It's no accident that the nineteenth century left us the saying "What Manchester does today, the world does tomorrow". No accident that it gave us some of the most inspiring municipal architecture we still use and enjoy - town halls, galleries, libraries. And no accident that we still remember the drive and determination of Victorian local leaders, Joseph Chamberlains of every stripe, brimming with civic confidence and local pride, inspired by an "abiding faith in municipal institutions, an abiding sense of the value and importance of local self-government."

Today, I'm delighted to be with the leaders who are rediscovering that sense of vision as we look to complete the renaissance of our great cities and equip them once again to be world leaders.

Because if the nineteenth century meant triumph for our great cities, the twentieth meant decline.

The traditional industries which had generated their wealth struggled in a changed world. Here in Nottingham, the textile sector all but collapsed after World War Two, leaving unemployment, disused buildings, and a lack of purpose and direction in its wake.

By the eighties and early nineties things had got still worse.

In the past ten years, thanks to a Government proud to champion cities, and the dedication of local leaders, things have turned around dramatically.

We've seen not just physical transformation, but new impetus and pride.

Where once wrecking balls were tearing the heart of our great towns and cities, today cranes are building them up again.

Between 1997 and 2003, English cities accounted for 65 per cent of new jobs, and for 42 per cent of national population growth. Today nearly two thirds of jobs are found in our cities.

And cities have once again been discovering that what makes them distinctive can be what makes them strong.

Some have drawn on their rich architectural and cultural heritage - look at Liverpool, showcasing the magnificent "Three Graces" on Pier Head and celebrating its music and literature.

Some have used public art to symbolise their new confidence- look at the iconic Angel of the North, helping attract new residents and new investment to Newcastle and Gateshead.

And some have decided to develop the industries that can give them an edge in a competitive global market. Nottingham is one of six science cities, and has particular strength in pharmaceuticals and biotechnology. Since 2005 it has stimulated over £40m of investment into the infrastructure needed to support a burgeoning science base.

I believe the transformation we have seen is one of the lasting success stories of the past ten years. We can be proud of it: we should celebrate it.

But for all the progress, there remain major challenges. The State of the Cities report highlighted some of these.

The places blighted by deprivation for decades, still held back today and now struggling with new challenges like guns and gangs.

The neighbourhoods, sometimes just next door to brand new development, where people don't have the skills or aspiration to make the most of the new opportunities.

And the unrelenting pace of global economic change which means that if our cities are continue to thrive they cannot settle for doing things the way they have always been done - but must constantly look to innovate and prepare for the challenges to come twenty, thirty years ahead.

If we are to face up to these challenges I do not believe that Whitehall should provide all the answers. In fact I don't think it can.

Leaders like you, with the space to listen to local people and deliver what they need, with the powers and flexibility to attract investment, and with the vision to plan for their city's future, must play a vital role.

That's why Gordon Brown has ushered in a new era of unprecedented devolution.

Last month, alongside a fair and affordable settlement for local government we announced the new indicators for judging local government's performance, cut down to 198 from around 1200, and new discretion for local authorities to direct funding, with £5bn of grants mainstreamed over the next three years.

We have published a draft Transport Bill, designed to enable local authorities to work together to achieve "joined-up" bus services that truly meet people's needs.

We are paving the way for Business Rate Supplements, which will allow councils to raise revenue for investing in the area's economic future.

And together with the Local Government Association we are preparing a landmark Concordat to provide clarity about the respective roles of central and local government.

The Core Cities group have of course played a vital role in shaping this whole agenda. Government is making rapid progress in putting a new framework in place.

But important though it is, the framework is not an end in itself.

As Government steps back, the challenge for local leaders to step forward: to show the imagination and the will to make the most of new freedoms. 

And that's exactly where Core cities can lead the way.

For twelve years you have been vital partners to Government. Not just as a voice in the debate, but making a practical impact in our streets and estates.

More and more you are not waiting for Whitehall's permission, but getting on the job of meeting local people's aspirations. I welcome that. And you're showing how local government is the answer to meeting national priorities and global challenges.

Take, for example, Climate Change. It was Nottingham that gave birth to the declaration whereby local authorities commit to doing their bit, inspiring other core cities such as Newcastle not just to cut its own emissions but to reach out to local people with things like the enviro-schools programme.

So it's only appropriate that my department and the Department for the Environment are signing an agreement with you, here at this conference, about how we can work together further on this important agenda.

Or take the tricky task of regenerating areas that have suffered deprivation for years. A project has started in East And South East Leeds to build 5000 new homes, create 2000 new jobs, and bring over £1bn of private investment to one of the city's most poorest areas. What is truly groundbreaking is the way it relies not on Whitehall subsidy, but on making the most of the council's assets and making the private sector a partner in regeneration.

Or take anti-social behaviour. The last time I was here was back in February when I was proud to launch the new "Respect for Nottingham" strategy, tackling crime and grime, and building on the very successful strategy that reduced begging in the city centre by over 80 per cent in about three years.

These are three examples in very different policy areas, but they all have in common the strong, accountable leadership that - as your report with the Smith Institute makes clear - is vital to the ongoing success of our cities.

Now it's not for me to prescribe what local government should do in response to the very distinctive challenges each area faces. But I do believe that some are already demonstrating the kind of leadership that could have a huge impact everywhere.

Leadership means involving people. You can spend all the money you like on regenerating a neighbourhood, but if you don't get local people's buy-in then you'll never make a lasting change. Thinking close to home for me, for example, the Lowry Centre in Salford is an icon of the transformation that has taken place in the past ten years. But I think it's all the more powerful because of all the outreach work with schools and community groups that has gone into making sure people can feel proud of it, can say "this is ours".

Similarly, Sheffield has being great work for twelve years to give local people a say in how regeneration money is spent. Local panels have made sure funding was focussed on hot topics such as improving the local environment, making people feel safer on their estates, and giving young people something better to do than hang about on a street corner.

Leadership also means thinking very long-term about skills. It's one thing having brand spanking new buildings and institutions: it's another making sure people who live down the road have the skills and aspirations to take up the new high-skilled jobs in them, and not just the cleaning and catering. That's why what Newcastle are doing with their science city is so impressive. Together with investing in facilities and support for high-tech industries, they are boosting science in schools, in further education, and in wider public debate.

Leadership means thinking about housing. You won't keep your graduates for long if they can't find the homes that are right for them as their needs change. A successful city needs a mix, homes for families as well as for young professionals. What Bristol are doing - making this an essential part of a wider focus on sustainable communities - is very welcome.

And I'm also impressed by Newcastle's plans for the West End: making sure that regeneration projects reach out to housing around the periphery of the city, as well as its very centre.

Leadership means thinking about the unique image and identity of your city. That might sound abstract, but it can make a practical difference. Look at how far Nottingham has come. Local transport is good. The city has led the way on climate change. There's good progress in the fight against gun crime. But one of the challenges now is to communicate a new sense of local pride to potential partners and investors.

And crucially, leadership means working together across Local Authorities. Here again some core cities are already showing what can be done. Ten authorities across Greater Manchester, for example, have already been working together on some priorities for twenty years. Their successes in include the Manchester: Knowledge Capital campaign, positioning the city to make the most of the opportunities of the new economy.

As the Local Government White Paper made clear, the Government believes that this kind of joint working - a mature approach to governance that recognises shared interests - is the key to tackling some of the trickiest challenges, from transport to economic development, that transcend local authority boundaries.

New Multi-Area Agreements offer a way of consolidating, strengthening and furthering those partnerships.

And I'm very pleased to be able to announce today the 13 areas that have come forward to work with Government on developing their own Multi-Area Agreements. They come from a wide geographic spread - from the South-West to the North-East - and a range of different places.

They are looking address different challenges each focused on driving economic prosperity:

• In Greater Manchester, ensuring that local people are able to reap the benefits of the significant investment in the area by getting the skills and employment systems to work together;
• In Tees Valley, ensuring that the transport network keeps pace with new business opportunities across the sub-region;
• And in South Yorkshire, ensuring that the quantity and the quality of the housing stock meets the needs of a growing and prosperous city - joining together funding streams to deliver better overall outcomes.

And we in Government have to rise to the challenge - we need to respond to the priorities that are emerging in these and other places; to remove barriers to delivery; to ensure that our policies support rather than frustrate your efforts to deliver on this agenda.

Central Government will not call the tune or force the pace on negotiations. It is up to local authorities, working together, to come to an agreement about what will bring the biggest benefits to the people they serve. I believe that this is a test of your ingenuity and your will, of the qualities that can inspire the confidence of your communities you serve and Whitehall alike, and of your ability to achieve the improvements that could pave the way for further devolution in years to come. 

One final thought on leadership. In the past, the relationship between Whitehall and town halls was too one-way. All too often, Whitehall told town halls what to do: all too often, town halls waited to be told what to do. We've achieved a far more balanced and constructive debate in recent years, but I do believe we could go further still.

I would welcome a debate where central and local government are more like partners, where you are asking the questions as well as answering them. So, for example, with Multi-Area Agreements, what one thing could we do differently that would make progress easier for each of you?

It's challenging - we won't always agree. It can be difficult - it means you taking responsibility for delivering too. But that is just the kind of leadership we need to see if our great cities are to thrive in the twenty-first century.

There are significant challenges ahead, but I have never been more confident of your ability to take them on. Where once you were shrinking, you are ready to grow. Where once your freedoms were being curtailed and diluted, they are being re-established and strengthened. The more you show you can use them to deliver, the stronger the case to empower you further. That's why I believe that the best is yet to come, and that with your commitment and hard work we could leave a civic legacy for the next generation every bit as rich and as enduring as the one the Victorians gave us.