Pull together to prepare for Brexit and to benefit from devolution, MP tells Bath businesses

October 14, 2016
By

Bath’s business community must make sure its voice is heard loud and clear as the city prepares for the huge impact of Brexit and regional devolution, according to MP Ben Howlett.

He told a roundtable discussion staged by Bath Business News and hosted by Barclays that only by pulling together could businesses ensure the city was protected from any shockwaves caused from the UK’s withdrawal from the EU. 

At the same time Bath could benefit greatly from the £1bn West of England devolution deal, which is likely to get the go-ahead soon – but the business community has a role to play in explaining the advantages of transferring powers from Westminster, while also ending the long “animosity” towards Bristol.

On Brexit, Mr Howlett, pictured, said he was pressing hard for the UK to have continued full access to the European Single Market – but was “worried as hell” over any deal that affected the City of London’s standing as the world’s leading financial centre.

A staunch ‘remainer’ during the referendum campaign – and Tory MP for a city that voted to stay in the EU – he is now a member of Open Britain, a cross-party lobbying group which has emerged from the Remain campaign.

“Negotiations will be like a game of poker, with neither side wanting to declare their hand first,” he said.

“But I think in the end there will be some control over immigration and some access to the single market,” he said.

Businesses needed to work together with their elected representatives to ensure their voice was heard and to minimise the impact of any downside to Brexit.

Bath businesses also needed to get across the message that immigration is good for the economy.

“We need to be clearer on the benefits of immigration to a city like Bath,” he said, adding that 60% of the public liked the fact that international students came here.

“We have got to be better at explaining how important immigration is to the UK economy,” he said. Nine per cent of all University of Bath students and 3% of those at Bath Spa University came from the EU. Funds now received from the EU for research in areas such as science, technology, engineering and maths needed to be replaced by the UK government, he said.

Running parallel with Brexit was West of England devolution – with the £1bn, 30-year deal for investment in infrastructure, skills and housing first offered to the area’s four councils still on the table despite the results of the EU referendum and changes at the top of the government.

Bath & North East Somerset, Bristol City and South Gloucstershire councils have all approved the deal, although it was rejected by North Somerset, which will now not receive any funding.

Mr Howlett said the deal could pave the way for huge changes for Bath’s economy, including long-awaited road improvements in and around the city and better links outside the region to Birmingham and Southampton.

Unlocking housing land in South Bristol at the same time as improving transport links between there and Bath would benefit the city, he said.

“By 2025 we will have no more developable land in Bath,” he said. “The average price of a three-bedroom house in Bath is now £480,000 and we are the third most expensive city for housing.

“This will get worse when electrification of the rail line through Bath takes effect as we will be one-and-a-half hours from Canary Wharf and will then be in London’s commuter belt.

“We are a World Heritage city surrounded by an area of outstanding beauty. If we work collaboratively with the other authorities in the West of England and have better infrastructure then people will be able to live in South Bristol, where the new homes will be built, and work in Bath.”

But he said it was essential the new ‘metro mayor’ – who will lead the combined authority that will spend the devolution funds – must have business experience. It was also important that this new authority was not seen as a new version of the old Avon County Council and that it did not have its office in Bristol.

“I would suggest Keynsham, Thornbury or Emersons Green,” he said.

However, he added: “It’s frustrating that Bristol and Bath have a long-standing animosity. I work closely with MPs from Bristol to get things done on a regional basis and devolution will enable us to take a longer-term view on many of the issues that have been blocked in the past by local politicians.

“For example, the mayor won’t have to worry about losing votes if they approve a housing development or a new road.”

Taking part in the roundtable discussion, which was chaired by Barclays head of business and corporate banking David Goodall, were Louise Prynne, chief executive of Bath BID (Business Improvement District); John Cullum, chair of Bath Festivals; Edward Nash, senior partner of architects Nash Partnership; Steven Treharne, managing partner of law firm Mogers Drewett; Ian Taylor, owner of the Abbey Hotel; and Martin Crook, Barclays Corporate relationship director for Bath.

Edward Nash agreed that it was vital to get the devolution signed. “Bath can’t do these things by itself. This gives us the chance to be in a bigger room,” he said.

He said power was increasingly being centred on cities and, by working closer with Bristol, Bath could benefit greatly. But there were also opportunities of strengthening links with South Wales, the South Coast and towards the West Midlands.

John Cullum said the arts tended to get overlooked when politicians spoke about devolution and there was little funding for a sector that was key to the wider economy.

While there was no shortage of musicians who wanted to play in Bath, there was a need for better concert venues. There was an ambition to make Bath the Edinburgh Festival of England and Bath Festivals was working with other towns and cities to develop a higher profile.

“The problem we have is that local councillors are too parochial but at a regional level there huge gaps,” he said.

Louise Prynne said there needed to be a better communications strategy around the metro mayor as there was still quite a lot of ignorance about the role. “We need to get businesses to understand why this is important and then get them to explain the benefits to the wider community,” she said.

It was good that devolution was at last offering the opportunity to look 20 or 30 years ahead, said Martin Crook, rather than the short-term view that local politicians usually have.

Steven Treharne added that there was a risk that Bath could get left behind again if it failed to grasp this opportunity and take a longer-term view.

“Bath could end up as just a tourist destination, like Disneyland.” he warned.

“We don’t have a good record of getting things done.”

Pictured, from left: Back row: John Cullum, Bath Festivals; Edward Nash, Nash Partnership; Martin Crook, Barclays: Steven Treharne, Mogers Drewett; Ben Howlett, MP and Robert Buckland, Bath Business News. Front row, from left: Ian Taylor, Abbey Hotel; Louise Prynne, Bath BID, and David Goodall, Barclays

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