It's time to put some political economy into how we're building and placemaking in Britain. There has never been a better moment, because demand for new housing, water, transport and power has never been greater.
But the status quo solution is slow and often just means the state subsidising private developments and letting the uplift (the added value of a place) going into private hands. The UK government simply shrugs at this stuff, because, they argue, at least something is happening and the economy as a whole benefits. The government does the hard yards of building rail, road etc but the house builders or private corporations like Universal Studios, get to pocket the benefits.
We need a return to Municipalism (and glad to hear the
@WorksInProgMag gang tentatively reconciling themselves with this thought on their latest podcast). It's where a whole project can own the land and bring together housing, commercial land, and the hard infrastructure. It doesn't mean excluding the private sector - in fact the exact opposite - it means helping them to speed up delivery by clearing the obstacles of planning, finance and risk.
But it does mean that the citizens or a place, rather than distant shareholders, end up being ultimate beneficiaries because the city owns the land and leases out the infrastructure once it is built. As I argue in this substack piece for Arguably (£), this is
@AndyBurnhamGM's 'Manchesterism' in action.
Municipalism is an old Victorian idea which was behind the prosperity of London, Birmingham, Manchester, and Glasgow. You can see traces of it still around today, before post-1945 nationalisation stripped cities of their revenue generating assets like utilities and transport and handed ownership to Westminster. The City of London, Milton Keynes, Bournville, and yes, Manchester itself, retain ghost remnants of a Municipal past.
Singapore is a great example of Municipalism - it owns 90% of its land, and generates rents from it, which keep taxes low, and that revenue goes not into the pockets private landlords, but new infrastructure and services. That keeps dynamism high. It's a great combo of the public sector forcing private capital off of rentier-ism and into sectors where it must take more risk to get a return (as it should).
With Forest City, a project to build Britain's first new city in over 50 years we aim to get back to a place-based, municipal solution. None of the proposed New Towns have any sense of political economy. Often it's just about letting developers hit the target numbers. That's not all bad. But it also isn't good enough. In a world of free moving global capital, who owns and controls the future, is the most important question we face.
open.substack.com/pub/arguab…