How can UK cities deliver transformational change in the face of the 'polycrisis'?

The UK's economic, social and environmental fabric is under considerable stress. Inflation and stagnant productivity are just the tip of an iceberg that includes continued environmental decline and increasing poverty as the cost-of-living crisis continues. UK political and community leaders drastically need a new way forward .

Its excellent timing then to see the launch of the UK Urban Futures Commission “Unleashing the potential of UK Cities” study - a partnership by the The RSA (The royal society for arts, manufactures and commerce) , Core Cities UK and Lloyds Banking Group

The position the report takes is to view the city region as a “system of systems” given the complexity of an environmental, technological and socio-political attributes that influence it, and it influences. The report draws on excellent points raised by leaders from across UK Core Cities and commissioners of the study: Belfast City Council Birmingham City Council , Bristol City Council , Cardiff Council , Glasgow City Council , Leeds City Council , Liverpool City Council , Manchester City Council , Newcastle City Council

Cities as a force for regeneration: an opportunity, not a cost.

The report focuses on the role of cities to regenerate the UK. The report, which looks to shift policy making away from zero sum competitive bidding, and towards a more sustainable funding model that supports prosperity, green investment, and drives innovation, productivity, and health and wellbeing outcomes for residents.

Cities are complex: for Sheffield, as council leader Cllr Tom Hunt highlighted at today's launch event, there are significant deprivation, poverty and ill health – where there are major discrepancies across the city. City leaders know the opportunities and challenges, but are stymied by policy making at a national level which prevents progress and restricts innovation and regeneration. Many want to innovate with technology to achieve net zero.

Lead by commission co-chairs Marvin Rees OBE and Andy Haldane the report cites 3 major barriers that must be overcome:

1. Short-termism: cities can’t anchor to long-term strategies due to funding and shifting policies. The lack of long-term thinking is hampering delivery, and negatively effecting the way in which cities can tackle major issues including net zero.
2. Inadequate policy powers to make change: centralised government stymies delivery, difficult for leaders to be able to deliver, when funding is restricted, and decision making is complex and overly restricted. There is a drive for cities on the commission to transition their economies, but government support is a challenge in the current environment.
3. Access to funding and finance: public funding isn’t the only funding available and needed, private capital can makeup 85% of the total, but accessing it is difficult due to low capacity in councils to access it, but capital markets aren’t geared towards these investments.

What does the commission recommend?

The report makes 3 major recommendations made up of several key steps each. Some highlights/standouts are:

• Recommendation 1: Cities need a plan to replenish and grow their natural, social and economic assets, including business, political leaders, community leaders; Local prosperity plans – a single long-term plan to delivery prosperity to replenish social; and, increase citizen engagement through resident councils and juries to drive decisions through consensus.
• Recommendation 2: Cities need the powers and tools to execute the plan, including urban leadership schemes to build and retain the skills needed to deliver city transformation; co-fund the development of a Cities Investment Hub, to act as a specialist “spine” of expertise for all cities to access.
• Recommendation 3: Cities need to secure investment to finance the plan, including catalysing private investment in Local Prosperity Plans, establishing publicly capitalised investment funds, and host investment showcases for regenerative programmes.

What does this mean for city leaders?

There’s a lot here to digest, particularly given the richness of perspectives provided by the commissioners and the analysis provided by the commission’s partners. The overwhelming message that economic value is nested and enhanced by natural and social value is a great addition from this work. For me the major challenges are:

• Seeing citizens juries/panels to a institutionalized process that leads to real change. We need to shift the power of designing our cities and systems back to citizens, and support them to deliver change. Decarbonising transport is a good example of a wedge issue which is being used to create division politically. Cities on the panel were clear that they have the drive to achieve net zero goals, but are limited by politics that create distrust, and dicision. Inclusive tools like citizens juries can help to overcome these issues.
• Capacity in local authorities and city regions, both financial but also human capital continues to limit progress. Those delivering programmes are doing so on limited resource, but cities need support to strengthen the skills available to deliver innovation and productivity. A great example here is that of housing decarbonisation through retrofit - commissioners of the study highlighted at the launch event that authorities have had their capacities hollowed out, creating real barriers to delivery. Not only are engineering skills limited, but there is also increased need to draw on skills related to community engagement and participation. Authorities need support to do this work, at scale, if they're to meet their objectives.
• The commission draws on but didn’t recognize the types of technologies emerging, that can potentially shift capacity in cities and local authorities. It is perhaps the level below the level at which the commissions work operated, but I can see a real need for cities and city leaders to spend more time considering the role of technology to automate and support decision making at pace, as well as support data and intelligence for better decision making, particularly on environmental issues such as decarbonisation. There are clear opportunities here to delvier value when access to people skills (human capital) is limited.

Overall its exciting to see the commissions work put forward, at a time when central government appears to be unable to provide leadership on key issues including climate, inclusion, and the future of work/prosperity. Very much look forward to seeing how the core cities involved take the work forward.