Devolution... but not where we expected

But we didn’t think they would win them quite this quickly! As we reveal in this week’s issue, cities minister Greg Clark is poised to announce in a speech at MIPIM UK next week that the government is going to award billions of pounds’ worth of spending powers to the regions.

Yeah right, I hear you say. But actually, this does not appear to be one of those headline-grabbing and ultimately rather notional initiatives, where in reality the amount of money available to spend turns out to be a fraction of the figure initially touted. Greater Manchester, which is expected to be the first city region to benefit, is eyeing a £1bn-plus windfall now the Treasury is allowing it to retain revenues gained from property development and investment and 100% of the uplift from business rates revenue - double the amount it used to be able to keep. That is a serious amount of firepower.

Indeed, the first big step in devolution to the English regions since the government set up the Cabinet Committee for Devolved Powers following the referendum could generate a veritable property bonanza for the regions - akin to what the 1980s Conservative government did for Docklands. Via the new metropolitan super-authorities, many of the UK’s biggest cities will be able to super-charge their spending.

Why the sudden altruism from the Tories? Well it may not be quite as selfless as it initially appears. While giving billions to what are largely Labour strongholds seems counter-intuitive at first glance, it is less so when you realise Clark is hoping the new metropolitan authorities will follow in London’s footsteps and appoint Conservative mayors. In giving these new economies to said mayors, the Tories would also build a stronger representation in the regions - at a crucial time in the run-up to next year’s general election.

The move also makes them look less London-centric, not just to potential voters but also to potential investors and occupiers. The thinking is that it will show global real estate investors and huge companies that want to base operations in Europe that London is not the only city worth looking at. By grouping various local council areas in and around these cities in new metropolitan authorities with powers over spending, planning and more, the government hopes these new regions will be able to more easily attract major corporations, which have historically had to go through the convoluted process of sizing up smaller, often neighbouring regions that are competing with each other for investment. That just confuses overseas investors, who want a single port of call and a smooth planning and investment process.

If the economic policy is rolled out to other cities, it could mark the resurrection of many of the regional powers lost with the demise of the RDAs - which should be cause for great celebration.

Talking of celebrations, this week marks the launch of the Property Awards 2015, which take place at the Grosvenor House hotel on 21 April. It is a big one for us: the awards will be celebrating their 20th year, so don’t hide your light (or your colleagues’) under a bushel. Turn to page 18 to find out more about the 19 categories open to entry and nomination. The deadline for entries is 9 January 2015. We look forward to hearing about your achievements!