Umunna accuses cabinet of betraying Heseltine’s legacy

LABOUR’S shadow business secretary has accused Prime Minister David Cameron and Chancellor George Osborne of a ‘betrayal’ of the legacy of Lord Heseltine who intervened into cities like Liverpool and Salford to help spur regeneration efforts.

Speaking ahead of today’s award of the Freedom of the City of Liverpool to Lord Heseltine for his efforts in transforming the city, Chuka Umunna said: “The biggest roadblocks to reform and the adoption of an active government strategy are the Prime Minister and the Chancellor because, for ideological reasons, they simply do not buy into the idea of government activism.”

He said that this “runs counter” to the approach taken by Lord Heseltine in using Urban Development Corporations to change the fortunes of areas such as Albert Dock.

He also said that the government’s approach to “step aside and let the market decide” where growth should occur was not only failing, but also ran counter to international orthodoxy where governments actively promote key sectors to foster private sector growth, as well as adopting broader procurement terms which take account of the impact on the country’s employment prospects alongside pure value-for-money considerations.

Mr Umunna also said that “vertical” sectoral policies to promote areas of excellence such as aerospace, biotech, the creative industries and the pharmaceuticals sector should not be ruled out. He denied, however, that this would simply lead to a return of a 1970s-style industrial policy where the government propped up failing industries.

“I don’t think that we should be picking winners, but I certainly think that the government can look at certain sectors to support them.”

Mr Umunna also said the government needs a “stronger” Department for Business, arguing that while former Labour business minister Lord Mandelson had the support of both No.10 and No.11 during his time in office, current Business Minister Vince Cable’s department was in danger of becoming “a backwater” without the support of senior Cabinet colleagues.

Mr Umunna also spoke at a Global Entrepreneurship Congress fringe event hosted by Downtown Liverpool in Business yesterday alongside city council leader Cllr Joe Anderson.

He said the GEC event “says something about a city that is really going places” following in the wake of previous conferences at Beijing and Dubai.

He said the GEC would not only bring in spending from around 5,000 visitors during the course of Global Entrepreneurship Week, it would also help to promote its image among delegates travelling to attend events.

Frank McKenna, Chairman of Downtown Liverpool in Business said: “We were delighted to welcome Chuka Umunna to speak with Liverpool’s business community this morning, right at the start of the GEC, about the implications an elected mayor will have on the city, and how the enterprise agenda can be progressed.

“With the recent announcement of new enterprise zones, the decision to take forwards an elected Mayor for Liverpool, and last week’s announcement about the £5.5bn Peel Waters plans going forwards, it is a hugely exciting and significant time for Liverpool.”