The reason for investing in the North is pretty simple: people live there. We have three options: do something productive with he area, do nothing and continue to pay for its decline, or move all the people to London and let house prices rise accordingly. What you said about first mover advantage rings true here. We can either pick the most developed city and devote resources elusively that area, or we can accept a proportionally smaller economy spread out across the whole country.
I also fail to see how London is subsidising these areas. It seems to me that they'd be much better off if they were able to run themselves. This is a classic case of purposeful under-investment. You see it in business as well. If someone wants to kill off a given project, they'll deprive it of funding to he point it can't operate properly then use the lack of profit generated as an excuse to axe it. The issue we have is that we can't just axe the North.
There is also the issue of measuring productivity. You say investments in London are more productive because they generate more profit, but consider that an equal investment in the North might have a much greater effect on the quality of life for the people living there. Should we measure investments by how much money they return or how much they improve people's lives? I am reminded of industrial strategy in the Soviet Union. They invested only in the most "productive" (highest ROI under capitalism) things such as heavy industry and very little in consumer technologies that make people happier. The result was rapid industrialisation which probably had the best effect in the long run. The question is how long term are we thinking? At some point, you've gotta start paying to make people happy instead of just investing in the most profitable area.
Good luck with the "but people live there, thier lives can be improved who cares about a poor ROI" argument.
I mean that kind of genuinely, I see your point, but good luck trying that argument on the treasury.
It's a fact that they're subsidised. They have regional mayors, do you think a devolved solution for each northern city is really reasonable or desirable? If we think it's desirable and will stop them being subsidised then why hasn't it worked for Scotland, Wales or NI? All of which take more than they put it.
Luckily you don't need to convince the treasury, just the electorate. And they are desperate for it. As you said, Bojo's levelling up scheme was like electoral crack. Perhaps some day we will achieve the level of democracy where the government enacts policies which are universally popular. Maybe it will happen soon if Reform UK actually follows through on proportional representation. Though it's a sorry state that those racist cretins are our best shot. Though I don't know if PR alone would be enough, we'd have to do something about the media as well and they're pretty buddy-buddy with Farage.
I also fail to see how London is subsidising these areas. It seems to me that they'd be much better off if they were able to run themselves. This is a classic case of purposeful under-investment. You see it in business as well. If someone wants to kill off a given project, they'll deprive it of funding to he point it can't operate properly then use the lack of profit generated as an excuse to axe it. The issue we have is that we can't just axe the North.
There is also the issue of measuring productivity. You say investments in London are more productive because they generate more profit, but consider that an equal investment in the North might have a much greater effect on the quality of life for the people living there. Should we measure investments by how much money they return or how much they improve people's lives? I am reminded of industrial strategy in the Soviet Union. They invested only in the most "productive" (highest ROI under capitalism) things such as heavy industry and very little in consumer technologies that make people happier. The result was rapid industrialisation which probably had the best effect in the long run. The question is how long term are we thinking? At some point, you've gotta start paying to make people happy instead of just investing in the most profitable area.