03 Feb 2022

What does it mean to be a good leader?

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What does it mean to be a good leader, writes Henrietta Brealey?

There 's no avoiding it. Every paper and social media feed is full of comments and perspectives on leadership and what accountability looks like - and with what 's happening in Parliament right now it 's no surprise.

While the main focus of the media coverage is whether the Prime Minister should stay or go now, my concerns are increasingly on the collective leadership (and focus) of the Government.

While Boris Johnson digs his heels in, behind the scenes the clock is ticking down on hard deadlines for a number of important government decisions and policies.

The cost of living is rapidly increasing, employment costs are rising as a jobs surge and the “great reshuffle ” prompts rising wages and the energy crisis is heaping significant pressure on households and energy intensive businesses alike.

Already, at Q4 2021, 33 per cent of businesses participating in our Quarterly Business Report highlighted inflation as a primary concern. These pressures will increase from April as the 1.25 per cent National Insurance increase comes into effect and, for hospitality, the VAT rate on food and non-alcoholic drinks, accommodation and attractions is scheduled to rise back to 20 per cent.

Johnson and Sunak are clearly determined to press ahead with their NI rise (against lobbying from business organisations, including our own and the British Chambers of Commerce). So what will the Government do to ease these rising pressures?

The Levelling Up White Paper was published this week. “Levelling up ” first emerged as a pledge in the 2019 Conservative Party manifesto. In theory “levelling up ” should be driving much government spend and priorities - particularly direction of travel on replacing EU funds. A lot hinged on the release of the White Paper, including clarity on the future of Local Enterprise Partnerships.

The term “levelling up ” has been liberally applied to a number of policies and funds. The latest round of funds - awards for 20 towns and cities primarily from existing funds - included some things to welcome, such as £28million in funding for brownfield regeneration for the West Midlands Combined Authority, but was highly specific, centrally controlled and limited in scope.

With European Structural and Investment Funds having ended for the UK in 2020 (although funding for approved projects can be drawn down until 2023), that real understanding on how funding investment in local economic development and reducing inequality will work is critically important.

The Chamber hosted a round table discussion with HM Treasury Officials and local businesses just last week and while the broad themes of levelling up were welcomed, the main call was for detail. Local areas need to understand in granular detail how “levelling up ” related funding will be determined on a consistent, longer-term basis. The white paper and action that follows must go beyond rhetoric, ambitious statements and repackaging existing funding to rise to the scale of the challenge ahead and make a meaningful difference.

With European Structural and Investment Funds having ended for the UK in 2020 (although funding for approved projects can be drawn down until 2023), that real understanding on how funding to invest in economic development and reduce inequality will work is critically important. To be successful, the Levelling Up White paper must meaningfully address this at the very least.

COVID emergency funding for public transport will end on March 31. This funding has been critical to keeping local services running at a time when passenger numbers have been hard hit by COVID.

In November last year, bus passenger numbers were still a quarter down on pre-pandemic levels. National Express, working with Transport for West Midlands, has managed well on not just keeping most services going but also being able to reduce most fares this year to lure bus passengers back.

But the mid-term reality is lower passenger numbers, which means lower revenue from fares and - as services lose money - cuts being made and the quality of our public transport network diminished in the middle of a cost of living crisis and a government drive to hit net zero carbon emissions. That is, unless the government take a decision to extend funding.

This is just a taste of some of the areas that need to be addressed over the coming weeks. Decision-making paralysis is not the same as standing still - it 's going backwards.

Government Ministers cannot hide behind the scenes and wait for the leadership storm to pass and better “PR moments ” to make these decisions or push out attention grabbing headlines if they 're not backed by substance. They, and MPs of all parties, need to work hard to move the agenda forwards.

Closer to home, we are taking a good long look in the mirror at what being a good leader means to the Greater Birmingham business community.

During March the Greater Birmingham Chambers of Commerce 's Growth Through People campaign will return for a fifth year.

It focuses on leadership and people management skills and how investing in them can boost business productivity. It 's all free - eight workshops, one conference and tons of content on everything from developing your employer brand to supporting mental health and wellbeing in the workforce - thanks to our sponsor and partner Aston University and Birmingham City Council.

It usually attracts 300-400 delegates across the campaign, mostly current or aspiring leaders and managers looking to hone their skills.

If recent headlines that have got you thinking about your own leadership style or trying to keep up with good practice on leading and managing teams through these ever-evolving times is on your mind, feel free to stop by. After all, something tells me that the national and the local debates about what makes a “good leader ” in 2022 are far from over!

Find out more about the GBCC Growth Through People campaign here

Henrietta Brealey is chief executive of Greater Birmingham Chambers of Commerce

This column first appeared in the Birmingham Post