No, devolution alone won't fix poverty in the North East
Blog: Blog - Adam Smith Institute
Poverty in the North EastThe North East, as everyone knows, was once a powerhouse of coal mining, shipbuilding, and manufacturing which fuelled the nation's growth and prosperity. However, the decline of traditional heavy industries, coupled with shifts in global trade patterns and technological advancements, decimated the region's economic foundation.The repercussions of this industrial decline have been felt far beyond the factory walls, affecting the social fabric of the North East. Unemployment soared, and the ripple effects of job losses exacerbated into poverty and deprivation. Now 54.6% of all homes in the North East are classed as deprived in one or more of the four dimensions used to measure deprivation in the UK. And the problem with deprivation is that it casts a long shadow. The poverty that the North East grapples with is intergenerational, and very difficult to combat.The problem with poverty:This is not complicated. Poverty is bad. Beyond the loss of potentially productive workers due to poor health and education, poverty had wide ranging social and psychological impacts. Not only does mental health suffer under poverty – which then circles back to reduced productivity, but social cohesion is harder to achieve. But the issue in the North East isn't in getting people to understand the problems with poverty – it's in understanding that poverty in the North East is repetitive. It is intergenerational.What is intergenerational poverty?Intergenerational poverty occurs when poverty persists from one generation to the next. Children born into deprived circumstances face barriers to accessing essential needs (such as stable housing) and opportunities (such as quality education) which constrains their prospects. In the North East Child Poverty Commission's most recent report, 35% of babies, children, and young people live in poverty, and 11% in very deep poverty. This helps perpetuate a cycle of poverty and marginalisation.Material poverty serves as a formidable barrier to upwards mobility. With factors such as a lack of stable housing, an inability to meet fundamental needs and one in ten households in the North East being classed as "food insecure", harming a child's growth and future wellbeing.Educational poverty, characterised by limited educational resources, feeds into lower academic achievement which limits future economic opportunities. Cultural poverty is a socially sensitive topic, as those referencing it could fall into the trap of blaming the poor for their conditions, but it is a crucial factor. When people face barriers to opportunities for a long time they might start to believe that they can't improve their lives. This feeling of hopelessness feeds into the younger generation by making their dreams feel unattainable and curbing their opportunities.These are just a few of the many limitations that are passed onto the next generation. The cascading effects of intergenerational poverty only serves to exacerbate inequality over time. A new approach to fighting poverty:If, as I think everyone should, you read the NECPC's report 'No Time to Wait', you begin to understand the scale of the problem facing those trying to fight poverty.The report itself makes for harrowing reading. Reading the words and experiences of those who deal with poverty every second of every day is eye-opening, and the plethora of statistics on the topic is heartbreaking.Now, if you were part of a charity or organisation actively working to combat poverty on a daily basis, witnessing the potential of bright children being limited by circumstances beyond their control would likely be disheartening. Additionally, observing the limited impact of government policies in addressing these challenges would likely lead to high levels of frustration and disappointment.Which makes the solution proposed by these organisations understandable.Devolution, from the point of view of those calling for it, will finally allow these charities and organisations the power to make a real difference and help save the futures of hundreds of thousands of children.The dangers of devolution:The hope of the organisations calling for devolution is that giving more power to councils and regional bodies will result in the regional policy they want. However, expanding devolution by granting councils increased powers and authority could lead to a proliferation of politicians. While many politicians undoubtedly work with commendable intentions, their actions may become influenced not solely by the pursuit of fostering growth. Additional objectives such as securing re-election and upholding a consistently favourable public image may become the main focus of their work.More bureaucracy and politicians will not lead to the dramatic fall in poverty that these charities and companies desire. Instead, it will gum up the system, hindering the fight against poverty and further constrain the North East.This is all without mentioning the elephant in the room that in 2004, 77.93% of the North East voted against devolution and a regional assembly.Alternative solutions:There are alternative solutions to fighting poverty, rather than devolution.Local authorities and mayoral offices have an opportunity to collaborate. If the combined authorities of the North East pooled their funding to help finance a cross-sector initiative they could help fight poverty. By engaging charities, schools and even businesses a comprehensive plan to take on poverty from multiple angles can be drawn up. Then, the pooled funding from various local authorities and mayoral offices can be used to properly finance a cross sector comprehensive poverty action plan.Schools play a crucial role in addressing poverty. By collaborating with local authorities to provide the necessary resources and engaging with the business community, schools can facilitate work-based learning opportunities and mentorship programs that prepare students for the demands of the local economy.The involvement of charities can significantly enhance the reach and impact of any efforts to fight poverty. Charities in the North East have spent decades fighting poverty, generating a deep understanding of the specific needs of vulnerable people and can provide targeted support and services. By collaborating with local authorities and businesses, charities can access additional resources and expertise to amplify their impact.The involvement of businesses is essential for sustainable poverty alleviation and economic growth. Businesses can contribute by creating job opportunities, providing training and skills development programs, and investing in local community initiatives.Ultimately, a cross-sector initiative to tackle poverty in the North East of England can lead to tangible benefits for the region's economy, bolstering the region's competitiveness and attractiveness for investment. Summary:Concerns over poverty, its ever-worsening condition and fears that more could become trapped in poverty are sound concerns that should be seeing wider attention and action. But the answer is not more devolution. The answer lies with a comprehensive plan, designed by experts in a cross-sector initiative to allow the North East to grow and flourish, without staying forever supported by the state, or becoming oversaturated with politicians.
