
'We are not alone in our disappointment' for Glasgow
It would have been even more cheering if we had arrived home to find that Glasgow and its city region were benefitting from a similar approach in the comprehensive spending review. All it would have taken was a single sentence saying that the UK and Scottish governments would be working together to establish long-term flexible funding deals for Scottish cities to match those already sorted out for Greater Manchester and the West Midlands. No such sentence appeared.
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Instead, I found myself reading Chief Secretary of the Treasury, Darren Jones, arguing that in Scotland the decision to "empower the city regions rests firmly with the Scottish Government". If he really believes that, we are at risk of stepping back a decade in time.
Eleven years ago, it was the UK and Scottish governments that together announced the £1.3 billion Glasgow City Region Deal. That deal was the first of many in Scotland, each designed in collaboration with local stakeholders to demonstrate how joint working between both governments can initiate real empowerment on the ground.
The chamber, senior business leaders and leading academics have all invested time and energy to help create the structures and capabilities of the Glasgow City Region. We did so in the belief that there was good faith in their value being demonstrated by both the UK and Scottish governments. We were encouraged by decisions made by the last UK Government to allocate over £300 million in additional resources to help the city region grow.
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The most recent was the announcement of £160m for a 10-year investment zone supporting the growth of advanced manufacturing. The chamber was involved in the process for project selection and there were so many more exciting projects - and in many other industry sectors - that could have been funded had the money been available. We can see the region's growth potential and how it can be unlocked.
Over time, we have become a vigorous advocate for regional devolution deals. We believe that many of the projects our members want to see - particularly in skills, infrastructure, and innovation - are best delivered at the regional level. Projects like the Clyde Metro transport system, our three university-led innovation districts for emerging industries, our city centre renewal plan and investment help to grow our airport and our conference centre, all demonstrate the kind of ambition that regional empowerment can unlock.
We shouldn't really need to argue the importance of regional devolution deals with the UK Government. It sets out all the reasons in several papers, including its English Devolution White Paper: the UK's low productivity trap, the stagnation of living standards and the unusual economic underperformance of all the UK major cities outside London.
The chamber had therefore asked for a devolution deal with long-term funding and greater flexibility, but there is no such deal being proposed for Glasgow – or for any other region in Scotland.
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Instead, Glasgow is offered confirmation of the investment zone announced by the previous government, a share in a new UK-wide local growth fund, and support from the National Wealth Fund.
These are all welcome but the investment zone had already been announced and the local growth fund looks set to be small once funds have been allocated across the country. It is also unclear if those funds are expected to deliver on old commitments such as that for Greenock town centre.
The National Wealth Fund's commitment to a strategic partnership with Glasgow City Region could be more promising, but it is unclear whether there will be any new funds under the control of the regional partnership.
If it helps the region attract private finance for projects, it could still prove valuable. However, it appears from the outside to be more like working with a body such as the Scottish National Investment Bank than a genuine devolution deal.
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We are not alone in our disappointment. The London-based thinktank the Centre for Cities issued its own report describing Glasgow as the "missing piece in the big cities' jigsaw". Especially worrying is their assessment that the lack of a devolution deal "places Glasgow at risk of falling behind its comparators south of the border".
And yes, of course the Scottish Government has a poor track record on regional devolution. So much of the momentum building behind Glasgow City Region has come from UK Government funding programmes. One notable exception was the Clyde Mission - a Scottish Government initiative that promised much but ultimately fizzled out and ended up being passed to the city region with approaching £30m in funding.
Otherwise the Scottish Government has undoubtedly been slow to devolve.
As one example, the announcement in the programme for government of £2m towards a Glasgow City Region response to maritime industry skills shortages was welcome, but there is a much bigger prize. Passing apprenticeship funding from Skills Development Scotland direct to the regions instead of to the Scottish Funding Council would be much a better long-term aim.
Regional devolution has not been the Scottish Government's natural default, so all eyes have tended to fall on the UK Government.
If Darren Jones is signalling that momentum on regional devolution is to be stalled until the Scottish Parliamentary elections next May, then sadly, so too the growth potential of Scotland's largest city region may be stalled as well.
Stuart Patrick is chief executive of Glasgow Chamber of Commerce.
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North Wales Chronicle
20 minutes ago
- North Wales Chronicle
Housebuilders' £100m offer after probe ‘definitely looks dodgy', Parliament told
Critics at Westminster suggested the developers made the offer to halt the investigation by the Competition and Markets Authority (CMA) 'into potentially illegal collusion … that could have inflated house prices'. They argued the Government should insist on the watchdog completing its probe. Assurances were also sought that the housebuilders at the centre of the inquiry would not be involved in building the affordable homes funded by the payout, which would see the firms 'simply get their money back'. The CMA announced last week that Barratt Redrow, Bellway, Berkeley Group, Bloor Homes, Persimmon, Taylor Wimpey and Vistry had offered the payment as part of a package of commitments to address concerns following the investigation, which was launched last year. The settlement, which is set to go into affordable housing programmes across the UK, would be the largest ever secured by the CMA through commitments from firms under investigation. The CMA will now consult on the commitments until July 24 and, if accepted, it will mean the regulator does not need to rule on whether the companies broke competition law. As well as the payment, the housebuilders have agreed legally binding commitments not to share commercially sensitive information with rivals, such as the prices that houses were sold for, except in 'limited circumstances', the CMA said. They also agreed to work with the Home Builders Federation and Homes for Scotland to develop industry-wide guidance on information sharing. The firms have said the offer of voluntary commitments does not mean they admit any wrongdoing. Speaking in the House of Lords, housing minister Baroness Taylor of Stevenage said: 'The £100 million additional funding proposed for affordable housing will mean more families can benefit from a safe and secure home.' But Liberal Democrat Baroness Thornhill, a vice president of the Local Government Association, said: 'There could be an alternative version to this – major housebuilders pay £100 million to halt the CMA's investigation into potential illegal collusion through the sharing of competitively sensitive information that could have inflated house prices. 'While this settlement might appear a pragmatic, cost-effective solution, would it not be more useful to have some evidence-led answers about whether the business models of the major developers are a significant factor in the slow delivery of housing? 'Therefore, should not the Government insist that the CMA actually completes its investigation, rather than allowing a financial settlement that obscures the fact and definitely looks dodgy?' Responding, Lady Taylor said: 'The CMA is continuing its work on this, and on July 9 it announced that it is consulting on its intention to accept commitments offered by the housebuilders in relation to the investigation. 'That consultation closes on July 25, and I have already set out some of the commitments that the seven companies have made. 'The £100 million payment, the largest secured through commitments from companies under investigation, will be split between affordable housing programmes across all our four nations. 'I hope that will make a significant contribution to delivering the affordable housing we all want to see.' Tory former housing minister Lord Young of Cookham said: 'If the Competition and Markets Authority confirms this £100 million payment for anti-competitive activity, can the minister give an assurance that none of the affordable homes to be built with that money will be built by the volume housebuilders responsible for this activity? Otherwise, they'll simply get their money back.' Lady Taylor said: 'I am sure that the Competition and Markets Authority, as part of its consultation, will be looking at the best way of distributing that money, so it is not just recycled to the people who caused the problem in the first place.' Liberal Democrat Lord Rennard said: 'The one-off payment of £100 million towards affordable housing is only about 3% of the operating profit of the five biggest housebuilders this year. Is this a relatively small penalty for them to pay for anti-competitive practices over many years?' Lady Taylor said: 'This is the biggest settlement ever achieved by the CMA.' She added: 'We have to consider what is appropriate in these circumstances. I am sure the CMA has done that.' A CMA spokesperson said: 'Our year-long study of the housing market found that the complex and unpredictable planning system, together with the limitations of speculative private development, was responsible for the persistent under-delivery of new homes in the UK. 'It was also clear that concerns about sharing of confidential information, while important, were not the main driver of the undersupply of housing. 'The £100 million payment we have secured for affordable housing would provide immediate benefits across the UK, without a lengthy further investigation. 'It is in line with fines levied in similar cases that have taken many years to conclude and comes alongside a set of commitments which fully addresses our competition concerns.' Bellway, which has agreed to pay £13.5 million, said: 'Bellway's offer of commitments does not constitute an admission of any wrongdoing, and the CMA has made no determination as to the existence of any infringement of competition law. 'Bellway welcomes the CMA's consultation on the voluntary commitments and will continue to work constructively with the CMA throughout the process.' Berkeley declined to comment.

Leader Live
21 minutes ago
- Leader Live
Housebuilders' £100m offer after probe ‘definitely looks dodgy', Parliament told
Critics at Westminster suggested the developers made the offer to halt the investigation by the Competition and Markets Authority (CMA) 'into potentially illegal collusion … that could have inflated house prices'. They argued the Government should insist on the watchdog completing its probe. Assurances were also sought that the housebuilders at the centre of the inquiry would not be involved in building the affordable homes funded by the payout, which would see the firms 'simply get their money back'. The CMA announced last week that Barratt Redrow, Bellway, Berkeley Group, Bloor Homes, Persimmon, Taylor Wimpey and Vistry had offered the payment as part of a package of commitments to address concerns following the investigation, which was launched last year. The settlement, which is set to go into affordable housing programmes across the UK, would be the largest ever secured by the CMA through commitments from firms under investigation. The CMA will now consult on the commitments until July 24 and, if accepted, it will mean the regulator does not need to rule on whether the companies broke competition law. As well as the payment, the housebuilders have agreed legally binding commitments not to share commercially sensitive information with rivals, such as the prices that houses were sold for, except in 'limited circumstances', the CMA said. They also agreed to work with the Home Builders Federation and Homes for Scotland to develop industry-wide guidance on information sharing. The firms have said the offer of voluntary commitments does not mean they admit any wrongdoing. Speaking in the House of Lords, housing minister Baroness Taylor of Stevenage said: 'The £100 million additional funding proposed for affordable housing will mean more families can benefit from a safe and secure home.' But Liberal Democrat Baroness Thornhill, a vice president of the Local Government Association, said: 'There could be an alternative version to this – major housebuilders pay £100 million to halt the CMA's investigation into potential illegal collusion through the sharing of competitively sensitive information that could have inflated house prices. 'While this settlement might appear a pragmatic, cost-effective solution, would it not be more useful to have some evidence-led answers about whether the business models of the major developers are a significant factor in the slow delivery of housing? 'Therefore, should not the Government insist that the CMA actually completes its investigation, rather than allowing a financial settlement that obscures the fact and definitely looks dodgy?' Responding, Lady Taylor said: 'The CMA is continuing its work on this, and on July 9 it announced that it is consulting on its intention to accept commitments offered by the housebuilders in relation to the investigation. 'That consultation closes on July 25, and I have already set out some of the commitments that the seven companies have made. 'The £100 million payment, the largest secured through commitments from companies under investigation, will be split between affordable housing programmes across all our four nations. 'I hope that will make a significant contribution to delivering the affordable housing we all want to see.' Tory former housing minister Lord Young of Cookham said: 'If the Competition and Markets Authority confirms this £100 million payment for anti-competitive activity, can the minister give an assurance that none of the affordable homes to be built with that money will be built by the volume housebuilders responsible for this activity? Otherwise, they'll simply get their money back.' Lady Taylor said: 'I am sure that the Competition and Markets Authority, as part of its consultation, will be looking at the best way of distributing that money, so it is not just recycled to the people who caused the problem in the first place.' Liberal Democrat Lord Rennard said: 'The one-off payment of £100 million towards affordable housing is only about 3% of the operating profit of the five biggest housebuilders this year. Is this a relatively small penalty for them to pay for anti-competitive practices over many years?' Lady Taylor said: 'This is the biggest settlement ever achieved by the CMA.' She added: 'We have to consider what is appropriate in these circumstances. I am sure the CMA has done that.' A CMA spokesperson said: 'Our year-long study of the housing market found that the complex and unpredictable planning system, together with the limitations of speculative private development, was responsible for the persistent under-delivery of new homes in the UK. 'It was also clear that concerns about sharing of confidential information, while important, were not the main driver of the undersupply of housing. 'The £100 million payment we have secured for affordable housing would provide immediate benefits across the UK, without a lengthy further investigation. 'It is in line with fines levied in similar cases that have taken many years to conclude and comes alongside a set of commitments which fully addresses our competition concerns.' Bellway, which has agreed to pay £13.5 million, said: 'Bellway's offer of commitments does not constitute an admission of any wrongdoing, and the CMA has made no determination as to the existence of any infringement of competition law. 'Bellway welcomes the CMA's consultation on the voluntary commitments and will continue to work constructively with the CMA throughout the process.' Berkeley declined to comment.


Glasgow Times
21 minutes ago
- Glasgow Times
Housebuilders' £100m offer after probe ‘definitely looks dodgy', Parliament told
Critics at Westminster suggested the developers made the offer to halt the investigation by the Competition and Markets Authority (CMA) 'into potentially illegal collusion … that could have inflated house prices'. They argued the Government should insist on the watchdog completing its probe. Assurances were also sought that the housebuilders at the centre of the inquiry would not be involved in building the affordable homes funded by the payout, which would see the firms 'simply get their money back'. The CMA announced last week that Barratt Redrow, Bellway, Berkeley Group, Bloor Homes, Persimmon, Taylor Wimpey and Vistry had offered the payment as part of a package of commitments to address concerns following the investigation, which was launched last year. The settlement, which is set to go into affordable housing programmes across the UK, would be the largest ever secured by the CMA through commitments from firms under investigation. The CMA will now consult on the commitments until July 24 and, if accepted, it will mean the regulator does not need to rule on whether the companies broke competition law. As well as the payment, the housebuilders have agreed legally binding commitments not to share commercially sensitive information with rivals, such as the prices that houses were sold for, except in 'limited circumstances', the CMA said. They also agreed to work with the Home Builders Federation and Homes for Scotland to develop industry-wide guidance on information sharing. The firms have said the offer of voluntary commitments does not mean they admit any wrongdoing. Speaking in the House of Lords, housing minister Baroness Taylor of Stevenage said: 'The £100 million additional funding proposed for affordable housing will mean more families can benefit from a safe and secure home.' But Liberal Democrat Baroness Thornhill, a vice president of the Local Government Association, said: 'There could be an alternative version to this – major housebuilders pay £100 million to halt the CMA's investigation into potential illegal collusion through the sharing of competitively sensitive information that could have inflated house prices. 'While this settlement might appear a pragmatic, cost-effective solution, would it not be more useful to have some evidence-led answers about whether the business models of the major developers are a significant factor in the slow delivery of housing? 'Therefore, should not the Government insist that the CMA actually completes its investigation, rather than allowing a financial settlement that obscures the fact and definitely looks dodgy?' Responding, Lady Taylor said: 'The CMA is continuing its work on this, and on July 9 it announced that it is consulting on its intention to accept commitments offered by the housebuilders in relation to the investigation. 'That consultation closes on July 25, and I have already set out some of the commitments that the seven companies have made. 'The £100 million payment, the largest secured through commitments from companies under investigation, will be split between affordable housing programmes across all our four nations. 'I hope that will make a significant contribution to delivering the affordable housing we all want to see.' Tory former housing minister Lord Young of Cookham said: 'If the Competition and Markets Authority confirms this £100 million payment for anti-competitive activity, can the minister give an assurance that none of the affordable homes to be built with that money will be built by the volume housebuilders responsible for this activity? Otherwise, they'll simply get their money back.' Lady Taylor said: 'I am sure that the Competition and Markets Authority, as part of its consultation, will be looking at the best way of distributing that money, so it is not just recycled to the people who caused the problem in the first place.' Liberal Democrat Lord Rennard said: 'The one-off payment of £100 million towards affordable housing is only about 3% of the operating profit of the five biggest housebuilders this year. Is this a relatively small penalty for them to pay for anti-competitive practices over many years?' Lady Taylor said: 'This is the biggest settlement ever achieved by the CMA.' She added: 'We have to consider what is appropriate in these circumstances. I am sure the CMA has done that.' A CMA spokesperson said: 'Our year-long study of the housing market found that the complex and unpredictable planning system, together with the limitations of speculative private development, was responsible for the persistent under-delivery of new homes in the UK. 'It was also clear that concerns about sharing of confidential information, while important, were not the main driver of the undersupply of housing. 'The £100 million payment we have secured for affordable housing would provide immediate benefits across the UK, without a lengthy further investigation. 'It is in line with fines levied in similar cases that have taken many years to conclude and comes alongside a set of commitments which fully addresses our competition concerns.' Bellway, which has agreed to pay £13.5 million, said: 'Bellway's offer of commitments does not constitute an admission of any wrongdoing, and the CMA has made no determination as to the existence of any infringement of competition law. 'Bellway welcomes the CMA's consultation on the voluntary commitments and will continue to work constructively with the CMA throughout the process.' Berkeley declined to comment.