Reversing it will help reduce regional economic inequality, say the former minister and policy adviser
FIFTY YEARS ago the world economy reeled from a quadrupling of oil prices and the collapse of the Bretton Woods system of fixed exchange rates. The United Kingdom’s response to the turmoil of the 1970s stood out from those of other developed countries in two ways. The embrace of free markets, high interest rates and a soaring exchange rate by Margaret Thatcher’s Conservative government meant that large parts of the UK outside London deindustrialised at the fastest rate in western Europe.
With Whitehall lacking the confidence to release money and powers to the English regions, we instead saw a succession of short-lived regional initiatives, each uprooted before it had time to bed in: development corporations in the 1990s; Regional Development Agencies in the 2000s; Local Economic Partnerships in the 2010s. All the policymakers we spoke to lamented this policy churn and lack of consistency.
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