THE DEVO 3.0 REVIEW LAYING THE FOUNDATIONS FOR MORE AND BETTER DEVOLUTION - An Audit of Devolution Decision Makers' and Opinion Formers' Views for ...
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THE DEVO 3.0 REVIEW LAYING THE FOUNDATIONS FOR MORE AND BETTER DEVOLUTION An Audit of Devolution Decision Makers’ and Opinion Formers’ Views for the UK2070 Commission Review conducted by Steve Barwick and Jack Hutchison of February 2020 devoconnect.co.uk
CONTENTS EXECUTIVE SUMMARY 4 INTRODUCTION 8 METHODOLOGY AND SCOPE 9 PART I: THE CITY REGION METRO MAYORAL MODEL 11 Summary of Responses: 1. Is the Mayoral or combined authority system working? 11 2. What are the strengths and weaknesses of existing city region Metro 13 Mayoral or combined authority models? 3. Views on existing devolution: 18 • o city region Mayors and combined authorities have sufficient D powers and funding? • Is the Government right to be cautious and limit the scope of devolution? • Should the Government’s approach to English devolution be more systematic/comprehensive? • Is an elected Mayor a pre-requisite of a devolution deal? • Are proposals to ‘level-up’ Metro Mayor powers for all combined authorities a good idea? 4. What are the key actions city region Metro Mayors and combined 23 authorities should take to: • Reduce inequalities between and within regions? • Achieve productivity and growth in the wider region? • Increase democratic participation in decisions? 5. What does central Government need to do next? 30 2
CONTENTS PART II: FUTURE DIRECTIONS FOR DEVOLUTION 33 Summary of Responses: 1. What are the lessons from Devo 1.0: the devolution to Regional 33 Assemblies – later Leaders’ Boards – and RDAs in the 2000s? 2. What are the lessons that can be learned from devolution in Scotland, 35 Wales, and Northern Ireland? 3. Views on future devolution, whether: 37 • The next chapter of devolution should be accompanied by local government reform? • The Government should commit to real devolution for certain policy areas? • arliamentary Committees and Cabinet positions to reflect P trans-regional needs of the North, Midlands, South East, and South West should be introduced? • Devolution deals should be rolled out across the whole of England? 4. What is the future purpose of devolution in England? 42 5. What does better devolution look like? 45 EMERGING CONCLUSIONS: 47 TEN PRINCIPLES FOR DEVO 3.0 ACKNOWLEDGEMENTS 48 3
EXECUTIVE SUMMARY THE HARD EVIDENCE UNCOVERED BY THE UK 2070 COMMISSION SHOWS THAT WE REMAIN ONE OF THE MOST UNEQUAL AND DIVIDED NATIONS IN EUROPE. It therefore concluded that devolution and, in particular, devolving greater powers and decision making, could be the key to rebalancing the UK economy as well as civic and democratic renewal. Recent and increased political interest in Forty two individuals central to the future English devolution has been welcome but it of devolution - including Metro Mayors, key does not add up to a vision of a third wave local authority leaders, think tanks, advocacy of devolution. DevoConnect was therefore groups, quangos and business associations commissioned to undertake an audit of as well as Parlaimentarians who have been decision makers and opinion formers to particularly active on the issue - responded review the strengths and weaknesses to a questionnaire. This report is both a of the Metro Mayoral model of devolution qualitative and quantitative summary of and identify what in the long term more their responses. and better devolution looks like. 4
EXECUTIVE SUMMARY PART I: THE CITY REGION METRO MAYORAL MODEL - SUMMARY OF FINDINGS The overwhelming majority of those audited Opinions on whether it should be necessary considered that the Metro Mayoral model for an area to have an elected Mayor as a pre- was working well or very well. It was felt requisite of any devolution deal that includes that Metro Mayors are delivering three delegation of significant sums were divided: key benefits: 20 disagreed, 15 agreed. • joined up, longer term policy solutions In order to reduce inequalities between regions Metro Mayors should take action • better accountability and leadership to secure: transport and infrastructure • by doing politics at the level of a place, investment; education and skills investment; they are ensuring more engagement and the further devolution of powers. To reduce inequalities within regions Metro Conversely, four main weaknesses Mayors should deliver inclusive growth with were identified: a focus on: employment and skills; transport infrastructure; and health. • insufficient power and resources To achieve productivity and growth the top • that devolution has been a piecemeal, actions Metro Mayors should focus on are: somewhat inflexible, stop-start, top transport/connectivity, particularly intra- down policy made in Whitehall regionally; skills investment; closer working with the private sector; and the creation of • overlapping roles with other local industrial strategies. organisations are creating confusion To increase democratic participation in • it does not provide for sufficient scrutiny decisions the top actions Metro Mayors or engagement should take are: consulting the public directly The overwhelming majority disagreed that on decisions; increasing the visibility of existing devolution arrangements provided decisions and the impact they have; and the sufficient powers and funding to Metro devolution of further powers (increasing the Mayors. The overwhelming majority also importance of the decisions made.) disagreed that it is right for the Government The next Government should provide to be cautious in limiting the scope of Metro Mayors with a positive and devolution. determined, permissive and flexible, The overwhelming majority agreed that approach to devolution; more powers; the Government’s approach to English and more funding. devolution should be more systematic/ comprehensive and that the proposal to ‘level up’ Metro Mayor powers for all combined authorities is a good idea. 5
EXECUTIVE EXECUTIVE SUMMARY SUMMARY PART II: FUTURE DIRECTIONS FOR DEVOLUTION - SUMMARY OF FINDINGS The lessons identified from ‘Devo 1.0’ (the A small majority agreed the Government devolution to the English regions in the should introduce Parliamentary Committees 2000s) are that: devolution needs to be and Cabinet positions which recognise and linked to a real sense of identity (‘not a point respond to the trans-regional arrangements on a compass’); one size never fits all; and of the North, Midlands, South East, etc.. devolution should be done properly not There were, however, some notable half-heartedly - it cannot, for example, be reservations. a temporary ‘creature of Government’ but The overwhelming majority agreed something long term, ‘owned’ by the people devolution deals should eventually cover the in that area. whole of England and the majority said that The main lesson learnt from devolution in five years was an appropriate timeframe for Scotland, Wales, and Northern Ireland is such devolution to be rolled out. that the genuine devolution of political and A large majority of respondents said the fiscal power has had a noticeable positive purpose of devolution in England was either impact on a national sense of identity and improved economic performance, including an enhanced sense of ownership of the rebalancing the economy, or better, more democratic institutions. democratic government, including better The majority agreed that the next chapter public services; or both. of devolution should be accompanied by A majority said better devolution was a reform of local government (but it should principle and a process not a blueprint not be a pre-condition or a reason for or an event; others put forward a specific further delay). proposal or outcome such as a federal UK, Almost all agreed the Government should fiscal devolution, or better life chances. The deliver real devolution for certain policy areas Government should provide clarity, certainty and not delegation or co-decision-making. and coherence regarding devolution and The priority policy areas for such devolution make devolution one of its top five priorities. were: transport; education and skills, housing; and health and social care. 6
EXECUTIVE SUMMARY EMERGING CONCLUSIONS: TEN PRINCIPLES FOR DEVO 3.0 The following consensus conclusions emerge as potential principles that should inform the next wave of devolution: 1. D evolution must be a top five priority 6. The Government should publicly for the Government which should acknowledge that devolution is a be clear about the purposes of process as well as a principle: something devolution: supporting a new that can, and will, only be delivered Treasury objective of rebalancing the in partnership with existing elected economy geographically; creating more Mayors and local government as well as democratic governance; and the better business and other stakeholders. delivery of public services. 7. The next wave of devolution in England 2. The Government needs to have a should not be conditional on local coherent and systematic approach to government reform but ultimately what devolution. The goal should be to agree is needed is triple devolution: to devolution deals across the whole of local government; to the sub-regional England in the next five years. (Mayoral) level; and to the sub-national level, i.e. the North, the Midlands, 3. The Government should commit to a London and the wider South East. national dialogue on the benefits of, and need for, devolution as well as a 8. The next wave of devolution must not programme of focused dialogue with be ‘half hearted’ nor ‘one size fits all’. sub regional partners. Devo 3.0 needs to signify the end of imposed blueprints and shift the 4. In the short term, there is a need for emphasis towards local and sub-regional a settlement with existing elected partners taking the lead in agreeing Mayors focused on the devolution of all deals. The Metro Mayoral model should adult skills funding and powers; NIC’s not be the only model permitted. recommendation on devolving transport and other infrastructure spending; and 9. A number of important issues need to some elements of fiscal devolution. be better understood and addressed: the diversity deficit, especially regards 5. In the medium term, the Government gender; and the arrangements for must set out a clear devolution scrutiny of devolved structures at the framework, or continuum, showing the sub-regional or city region level, as well range of current Government powers as Westminster and Whitehall levels. and funding suitable for devolving and which can be accessed as capacity 10. A Secretary of State should be and competence, as well as leadership appointed to lead the implementation and demand, becomes available at the of devolution. All Government devolved level. Departments - including HMT and relevant quangos - need to be genuinely committed to the principle, and support the process, of devolution and rebalancing the economy. 7
INTRODUCTION SUCCESSIVE GOVERNMENTS HAVE SPENT THE LAST 50 YEARS TRYING TO REBALANCE THE UK ECONOMY AND CREATE A FAIRER AND STRONGER NATION. However, the hard evidence uncovered by the UK 2070 Commission shows that we remain one of the most unequal and divided nations in Europe. 72% of the UK’s regions have productivity rates lower than the national average, with some places only 65% of the average and others at 172%. The 2070 Commission Second Report DevoConnect were therefore commissioned concluded that devolution and, in particular, by the UK2070 Commission to undertake devolving greater powers and decision an audit of decision makers’ and opinion making, could be the key to rebalancing formers’ views: specifically to review the the UK economy as well as delivering civic lessons of devolution to the regions in the and democratic renewal. It identified seven 2000s (Devo 1.0) and the current Metro national priorities for action including: Mayoral wave of devolution (Devo 2.0); and identify what, in the longer term, more and “accelerate devolution: devolve decisions better devolution looks like, particularly how about regional economies to all regions, it might help redress both spatial economic not just those with government-sanctioned inequality and the democratic deficit. deals; introduce Parliamentary Committees and Cabinet positions which recognise and The Devo 3.0 Review is designed to re- respond to the Powerhouses of the North, invigorate the debate on better devolution Midlands, South West and South East.” and provide a solid foundation and evidence base to consider increasing and Recent and increased political interest in strengthening devolved decision making and English devolution has been welcome but powers. Its conclusions will be of interest so far what has been said or promised does not only to the UK2070 Commission but to a not add up to a vision of what a third wave of wider audience, including all those who are devolution (‘Devo 3.0’) should look like; how considering future policy development on it could be a solution for all parts of England: devolution. and what is required over the long term to redress regional economic imbalance and systemic democratic centralisation. 8
METHODOLOGY AND SCOPE 79 DECISION MAKERS AND OPINION FORMERS WITH A WELL-KNOWN AND HIGH LEVEL INTEREST IN DEVOLUTION WERE INVITED TO CONTRIBUTE - BY EMAIL, ONLINE SURVEY OR THROUGH INTERVIEW - TO THE AUDIT. These included all Metro Mayors, local authority leaders, think tanks, advocacy groups, and business associations as well as MPs and Peers who have been particularly active on the issue, for example a chair of one of the regional APPGs. Requests to contribute via a questionnaire LA Leader/Mayor or spokesperson were sent out in the middle of October with a Cllr Judith Blake, Leader, Leeds City Council deadline for submissions of 13th November. Rebecca Cox, Principal Policy Advisor, In all 42 were returned. Of these 12 did not Local Government Association wish their comments to be quoted directly. Cllr Susan Hinchcliffe, Chair WYCA There was a high level of response from each and Leader, Bradford Council group of invitees - as identified above - with Cllr James Jamieson, Chairman, the exception of MPs, for whom the general Local Government Association election intervened. John O’Brien, Chief Executive, This report is a summary of what was said in London Councils response to the 27 questions. Where possible Marvin Rees, Mayor of Bristol we have sought to include a quantification Dick Sorabji, Corporate Director of Policy of the views expressed but largely this and Public Affairs, London Councils should be read as a qualitative survey of the Tom Warburton, Director of City Futures, opinions of a group of extremely experienced Newcastle City Council devolution experts drawn from across the political spectrum. Those who contributed Peer or MP to the Devo 3.0 Review were: Lord Foulkes, Co-Chair, Reform Decentralisation and Devolution APPG Metro Mayors Lord Michael Heseltine, former Andy Burnham, Greater Manchester Deputy Prime Minister Jamie Driscoll, North of Tyne Lord Jim O’Neill, Vice Chair, Northern Dan Jarvis, Sheffield City Region Powerhouse Partnership James Palmer, Cambridgeshire Lucy Powell MP, Manchester Central, and Peterborough Chair APPG for Greater Manchester Mayor of London’s Office Lord Wrigglesworth, former Deputy Mayor of Liverpool City Region’s Office Chairman Regional Growth Fund Mayor of West Midlands’ Office Advisory Board 9
METHODOLOGY AND SCOPE Think tank/advocacy/business group Academic/independent commentator Sir John Armitt, Chairman, National Sir Howard Bernstein, former Chief Infrastructure Commission Executive, Manchester City Council Phillip Blond, Director, ResPublica Duncan Bowie, Senior Research Associate, Richard Blyth, Head of Policy, RTPI Bartlett School of Planning, University Arianna Giovannini, Interim Director, College London IPPR North Des McNulty, Assistant Vice-Principal, Mark Goldstone, Head of Policy and University of Glasgow Representation, West and North Yorkshire Rt Hon Nick Raynsford, Former Minister and Chamber of Commerce Deputy Chairman, Crossrail Mike Hawking, Policy and Partnerships Jane Thomas, former Director, Campaign for Manager, Joseph Rowntree Foundation English Regions Jim Hubbard, Head of Regional Policy, CBI Mark Livesey, CEO, LEP Network Kathryn Mackridge, Policy Officer for Public Services, TUC Adam Marshall, Director-General, British Chambers of Commerce Sasha Morgan, Head of Secretariat for Social Mobility Commission Chris Murray, Director, Core Cities Henri Murison, Director, Northern Powerhouse Partnership Akash Paun, Senior Fellow, Institute for Government Edna Robinson, Chair, People’s Powerhouse/ Trafford Housing Trust Ben Rogers, Founding Director, Centre for London Jonathan Werran, Chief Executive, Localis 10
PART I: PART I: THE CITY REGION METRO MAYORAL MODEL SUMMARY OF RESPONSES 1 Is the Mayoral or combined authority system working? Question: How well does the Mayoral or combined authority system work in your area (if applicable)? 27 respondents answered this question The West Midlands Combined Authority and with 13 respondents saying ‘well’ - including Mayor system is performing very well, based ‘reasonably well’, ‘pretty well’ or ‘fairly well’ on progress against public commitments, the - and a further 11 saying ‘very well’ (88% of Annual Plan, national recognition given to respondees) . A number of respondents said good performance in specific functions, and it was important ‘not to over claim’ but said outcomes such as the recent performance Metro Mayors were now firmly established of the regional economy. Anonymous within the political firmament. Just three respondent on ‘added value’ respondees made a negative comment. 15 Greater Manchester and the West Midlands, said the question was not applicable to them. as well as London, were frequently cited You can’t imagine anyone wanting to get as examples of where the Mayor was rid of the Mayor role or taking significant ‘embedded’, had ambition and was powers back to central Government, which is delivering ‘signature’ projects that would not usually a good sign that reforms have been have happened without devolution. However, embedded and also make sense to voters all seven Metro Mayors who responded and people at various levels of Government. commented that, although it is early days, Akash Paun, Senior Fellow at the Institute collective working with a figurehead is for Government making a difference: Yes, we are looking at projects or opportunities that were previously beyond possibility. James Palmer, Mayor of Cambridgeshire and Peterborough 11
PART I: Very well considering the extent of powers Those who were negative referred to a which have actually been devolved. specific set of circumstances, for example Anonymous respondent the situation in North of Tyne which does not have the same boundaries as the North There is a growing sense that devolution East Combined Authority, which ‘limits the is a solution to the chaos of Westminster. development of transport’. South Yorkshire It’s green shoots here - dysfunctional was also cited for slow progress due to its there. Andy Burnham, Mayor of Greater local authorities being divided over their Manchester long-term devolution ambitions. WYCA works well - leaders come together What the South Yorkshire model has exposed and decide priorities and we stick with them. is that unless there is significant buy in from We need to keep working on relationships the start for an agreed geography you are but there are benefits for all constituent going to encounter problems. Much is made members. West Yorks growth deal means of the GM model but that was a plan we are unique amongst CAs without a Mayor 20 years in the making. Jane Thomas, but we do have some money! Transport former Director of the Campaign for work is very good. Three more new stations English Regions delivered and one more planned. The Combined Authority is part of us - part of the five local authorities - we are very collective, sometimes go bit slower but we do go together. We have all got things which wouldn’t have got without CA. Cllr Susan Hinchcliffe, Chair of the West Yorkshire Combined Authority (WYCA), 12
PART I: 2 The strengths and weaknesses of existing city region Metro Mayoral or Combined Authority Models Please state the strengths of the existing city region Metro Mayoral or combined authority models Respondents referenced three main resources are available, working together strengths of the existing models: with the business community. Dr Adam Marshall, Director General of the British • Delivering joined up, long term Chamber of Commerce solutions The current bus consultation in Greater • Acting as spokesperson and providing Manchester demonstrates that significant clear accountability change, such as to introduce London style • Doing politics at the level of a place bus networks, is already possible. Henri ensuring more engagement Murison, Director, NPP Delivering joined up, long term solutions Acting as spokesperson and providing (21 respondents, 50%) clear accountability (17 respondents, 41%) Where the model allows the integration of a number of aspects of Government spending An elected Mayor’s key strength - in the at a place level it is particularly beneficial. view of the majority of respondents - is their Richard Blyth, Head of Policy at the RTPI accountability combined with their ‘soft’ powers - such as convening - which provides Key strength is that it helps those city for a more coherent regional voice. For Jamie regions to coordinate a more ambitious and Driscoll, Mayor of the North of Tyne, this is more comprehensive infrastructure policy ‘long overdue’ pointing out that in his area which can be linked to skills and housing ‘there is now regional leadership for the and therefore deliver broader economic first time in years’. Conversely, Cllr Susan development. Sir John Armitt, Chair of the Hinchcliffe, Chair of the West Yorkshire National Infrastructure Commission (NIC) Combined Authority, pointed out that a weakness of the West Yorkshire Combined We think the major strength of the model Authority is that there is no direct mandate is to give a path by which leaders can from the public. implement much longer-term plans for their region reflecting local priorities linked to As Chair of the Combined Authority, and local accountability. Sasha Morgan, Head of also as a member of the LEP, the Mayor Secretariat for Social Mobility Commission provides strong leadership and a single point of democratic accountability to integrate The ability to convene across the public and and streamline decision-making on local private sector; to bring together a medium programmes and investments. Dan Jarvis, to long term strategy; and to prioritise what Mayor of Sheffield City Region 13
PART I: Metro Mayors are a more accountable It starts from a better place - ie it is representative for making significant predicated on place which is a better decisions concerning the area, rather than an foundation than Westminster’s starting point unknown civil servant in Whitehall. Kathryn which is based on primacy of party. And in Mackridge, Policy Officer at the TUC the current Westminster impasse it is hard for a party to deliver radical agenda. Andy Jonathan Werran, Chief Executive of Burnham, Mayor of Greater Manchester Localis, said Mayor’s greatest strength is ‘their convening power - their ability Bringing local leaders together in this way to secure business and civic backing for means more decisions are being made change.’ This was a view echoed by an much closer to the people they affect rather anonymous contributor: than being done nationally in Westminster. This means the decisions can better reflect ‘Businesses in areas with devolution deals the needs and priorities of local places and have cited a range of positives that have communities. Dan Jarvis, Mayor of Sheffied come from a deal. They include the raised City Region international profile that having a Metro Mayor brings, clarity over the strategic Businesses in areas with devolution deals direction, increased collaboration with have cited a range of positives. They included neighbours across the region and the the raised international profle, claity over country, as well as a greater focus on strategic direction, increased collaboration inclusive growth, and momentum on key as well as a greater focus inclusive growth. local policy decisions.’ Anonymous respondent Another anonymous respondent said: The TUC were very positive saying that ‘there ‘the Mayor of London is one of a handful of are some examples where good governance politicians who can command the front page structures have been established to ensure tomorrow.’ access and representation of key partners and decision makers. For example, the TUC A Mayor, distinct from local authority Midlands has a co-opted observer seat on leaders, does strengthen accountability and the West Midlands Combined Authority.’ leadership and gives central Government confidence in quality of leadership and Some comparisons were made between the makes them more willing to devolve. Ben London Mayoral model - twenty years old Rogers, Founding Director of the Centre in 2020 - and the Metro Mayor model. Two for London chief differences were noted. First, that in London there is no statutory requirement Doing politics at the level of a place for joint decision making by the Mayor with ensuring more engagement the Leaders of the London Boroughs. In the (17 respondents, 41%) Metro Mayor model, the Mayor is the Chair of There was a clear view that the focus on meetings of the constituent local authority ‘place’ creates better politics, including Leaders, with whom joint decisions are that it affords greater participation and mostly made. Second, the London model consultation. In effect, this amounts to a provides through the Assembly a clear different way of doing politics as Mayors can scrutiny function, whereas in the Metro draw on local knowledge which is better than Mayoral model how decisions, and decision relying on multiple Whitehall departments. making, is scrutinised is less clear. 14
PART I: It was acknowledged that there were Given the potential of the Metro Mayor model tensions between the Mayor for London and - by which the Mayor and all constituent local the Boroughs, although others pointed out authorities can agree and then get behind that the ‘connection with the Boroughs has a plan - one respondent suggested that, for been better over past 10 years and that there the five key strategies for which the Mayor are now partnership boards and a bi-annual of London is responsible, formal agreement Congress of Leaders’. with London Borough leaders should be considered. In many senses, the GM model is far superior to London which lacks the engagement of the local authorities - in other respects it isn’t as good. I see the GM model as more effective in terms of streamlined governance and local authority buy-in to metro strategy but it lacks some of the powers of London. Bus regulation and franchising is the obvious area where London has had massive advantages, as well as infinitely greater Government funding support, for decades now. Andy Burnham, Mayor of Greater Manchester Please state the weaknesses of the existing city region Metro Mayoral or combined authority models Respondents reported four main There were also comments from a weaknesses: Conservative and Labour Mayor respectively such as ‘trying to pedal with the brakes • Insufficient resources and powers on’ and ‘holed below the water line.’ One • A piecemeal, inflexible, stop-start, top Mayoral office spelt out why it currently feels down policy made in London like ‘devolution with strings attached’: • Overlapping roles with other The Combined Authority’s policy toolkit organisations creating confusion is incomplete, meaning we occasionally have to compromise fidelity or clarity, or • Does not provide for sufficient make circuitous arguments for investment scrutiny, engagement or diversity - for example in the areas of wellbeing and environmental action. The lack of sustainable funding is a significant barrier Insufficient resources and powers - this relates to capital, revenue and admin. (19 respondents, 45%) It makes it complicated to plan long term One anonymous contributor typified investment strategies and pipeline with many responses when stating: ‘there is a full confidence in their delivery. Similarly, lack of resources and an ongoing reliance reporting lines between sub-regional and on centralised decision making from national government are complex. The Westminster.’ relationship with Departments is positive but still suffers from a client/master deficit. 15
PART I: The Mayor of London’s Office condemned The models are generally imposed top- the inability to levy taxes to meet the down by Government and don't necessarily needs of the city: ‘Other cities around the recognise the different geographies, world have way more freedom.’ Henri histories, relationships and priorities of Murison, Director, NPP, answered the different areas. What has been devolved is question succinctly: ‘The lack of significant actually relatively small in comparison to the meaningful fiscal devolution’. Andy challenge of rebalancing and local growth, Burnham, Mayor of Greater Manchester, and is functional, not fiscal. Budgeting is still pointed to a fundamental problem with short term and only done across a limited current arrangements: set of areas, with the possible exception of Greater Manchester, and even there, does not A Mayor inevitably creates expectations as include a full-enough set of responsibilities a focal point for complaining but has not and spending ability for skills. got the powers and funding, for example on transport, so you have accountability There was criticism too of the Government’s without genuine responsibility. inconsistent approach, for example, the apparent insistence on deals only for One respondent referred to this as the ‘functioning economic areas’ and then ‘devolution deception’ - the mismatch agreeing the North of Tyne deal, which whereby a Mayor is held accountable for excludes Gateshead and South Tyneside an issue but does not have the powers or travel to work area (TTWA). funding to properly address - improve or reform - the issue. Sir John Armitt, Chair of Lord Heseltine suggested there may be the NIC, put it this way: a role for the Boundary Commission to recommend readjustments in Metro Mayoral Not sure I would want to put myself up for boundaries so that local economics can be that role without the fiscal freedom/financial better reflected. wherewithal to ensure I could deliver. Politically Mayors are in a difficult position. Overlapping roles with other organisations creating confusion A piecemeal, inflexible, stop-start, (10 respondents, 24%) top down policy made in Whitehall (13 respondents, 31%) There was a clear view that the role of a Metro Mayor and how they work with the Combined A number of contributors pointed out that Authority or other organisations is not the fact that the Government was only understood and is often confusing. interested in one specific model meant large parts of the country - especially rural The British Chambers of Commerce pointed and coastal communities - are without out that business communities had reported devolution. In some areas, after delay, deals different levels of engagement from Mayors were offered but local party politics often on both strategy development and delivery, took over causing further delay and on at with some reporting a more positive least one occasion, ‘by the time the local experience than others. Dr Adam Marshall, partners were positive again the Government Director-General of the British Chambers had lost interest.’ of Commerce 16
PART I: There were some comments on ‘internal My sense is that the scrutiny mechanisms at squabbling about where investment takes the devolved level are relatively weak and place’ which can lead to ‘the need to if people are making case for significant spread the jam.’ Nick Raynsford, Deputy further powers/autonomy to be transferred Chairman of Crossrail, referenced what to combined authorities then more attention he saw as the inevitable tensions between to scrutiny of those powers and how that local authorities and Metro Mayors given money is spent will be needed. Akash Paun, the Mayor has both strategic and delivery the Institute for Government powers. One respondent pointed out: ‘If Mayors should really worry about making the constituent parts of the Combined mistakes - the fact that others will pick up the Authority are not working well together the pieces is really the only credible argument Mayor can be ineffective.’ Another simply against devolution. So far Whitehall has said ‘parochialism is endemic’. Others produced unreasonable solutions so a third were disappointed that party politics still party should come up with an answer for dominated Mayoral politics and emphasised accountability. Anonymous contributor on the importance of the Mayor’s personality. getting the failure regime correct Some called for clarity of Combined Others suggested the National Audit Authority functions which should be Office (NAO) could have a bigger role in the assessed within the context of ‘constrained’ future and could audit decision making local authorities. In this respect, the model including value for money and that greater was criticised for paying insufficient attention scrutiny by way of a city or sub regional to the importance of ‘double devolution’ - the Select Committee of MPs - eg for Greater need to empower local authorities as well as Manchester or the West Midlands - was Metro Mayors. The issue of Local Enterprise ‘an interesting idea’. Partnerships (LEPs) was also raised: Some businesses found that the Metro Mayor The balancing act with multiple LEPs is had brought about additional bureaucracy a weakness and should be resolved by and complexity. The British Chamber of a rationalisation of LEPs in combined Commerce pointed out that the failure by authorities and co-terminosity. Jonathan some Mayors to engage business as an Werran, Chief Executive of Localis equal partner - both in their strategizing and delivery - was a notable weakness. Others Does not provide for sufficient commented on the lack of gender diversity. scrutiny, engagement or diversity A lack of opportunity for genuine public (5 respondents, 12%). engagement, other than at the ballot box. The Joseph Rowntree Foundation (JRF) were The lack of diversity within local government one of a number of organisations to point out leadership has led to a gender imbalance in that Metro Mayors, unlike the London Mayor, Mayoral Cabinets - though attempts have currently lack formal mechanisms for scrutiny been made to address this artificially by of their decisions. creating ‘deputy’ cabinet members. Mike Hawking, JRF 17
PART I: 3 Views on existing devolution The existing devolution arrangements provide sufficient powers and funding to city region Mayors and combined authorities 60% 50% 40% 30% 20% 10% 0% Strongly Agree Slightly Neither Slightly Disagree Strongly agree agree agree or disagree agree or disagree disagree All respondents answered this question and At present the approach has been piecemeal the majority, 38 respondents (90%), either and ad hoc with no clear strategy or disagreed slightly, disagreed or strongly roadmap for how devolution will emerge. It disagreed with this statement, with all of is not clear whether those with deals are on the Metro Mayors stating they wanted more a path to further devolution or indeed what powers and funding. the strategy is for rolling it out to those areas without devolution deals. Henri Murison, Although, the question was formulated as an Director, NPP. agree-disagree question, some respondents took the opportunity to expand on their Elements of power have been devolved initial response. The primary theme of nearly across a lot of the important areas but it’s all negative responses was criticism of the quite partial in all of those areas and the extent of existing devolved powers, with power is still subject to constraints imposed one respondent as previously noted going from the centre. That makes it harder for as far as to describe them as the ‘devolution any single devolved body to join up and be deception’. strategic as they are being held to account in different ways by separate Government Andy Burnham, Mayor of Greater departments. Akash Paun, Senior Fellow at Manchester was typical of those who the Institute for Government disagreed: ‘If you’re going to go for devolution, you need to really go for it. Only two respondents agreed. Lord ‘Dipping your toe’ does not work’. James Wrigglesworth thought that the powers Palmer, Mayor of Cambridgeshire and were sufficient ‘for the time being.’ Mayor of Peterborough, put this more strongly: Bristol, Marvin Rees, who neither agreed ‘The deals are weak, which means we have nor disagreed, suggested that the powers to go to Whitehall every time. That’s not devolved should depend on the effective devolution, that’s devolution as long as you working of the Combined Authority with its do what Mummy says.’ ‘constituent authorities’, highlighting the sometimes unresolved tensions between CAs 18 and LAs.
PART I: It is right for the Government to be cautious in limiting the scope of devolution? 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Strongly Agree Slightly Neither Slightly Disagree Strongly agree agree agree or disagree agree or disagree disagree All respondents answered this question Henri Murison, Director, NPP, took a more with 35 respondents (83%) disagreeing with nuanced view: this statement. Six agreed with one neither The government was right to initially be agreeing nor disagreeing. cautious in devolving power and funding as One anonymous response, typified many transparency and accountability in public who disagreed with the statement, stating: spending decisions are of course incredibly important. However, where new structures I do not see why the Government should have shown that they have the capability be cautious… the problem is that there and capacity to deliver devolution then the has always been a cautious ‘half baked’ government must be bolder in devolving approach. further powers and funding where it makes Another anonymous contributor was more sense to do so. critical: Of those who didn’t disagree with the Fear of a broken fingernail has been statement, nearly all cited a lack of clear used too long to stop progress towards objectives or purpose on the part of the devolution. Government in the area of devolution. For example Duncan Bowie, Senior Research Associate, Bartlett School of Planning, UCL, stated ‘The Government is unclear as to its objectives in relation to devolution.’ 19
PART I: The Government's approach to English devolution should be more systematic/comprehensive 70% 60% 50% 40% 30% 20% 10% 0% Strongly Agree Slightly Neither Slightly Disagree Strongly agree agree agree or disagree agree or disagree disagree The majority of respondents agreed Others pointed out the question of the form or strongly agreed, with 38 out of 42 of devolution for each area should not be respondents - 90% - agreeing. Two neither answered by the Government: agreed nor disagreed, one disagreed, and Requirements may be different in different one chose not to answer. places, i.e. counties may need fewer powers Many respondents who agreed with than cities. Dr Adam Marshall, Director- the statement suggested that central General of the British Chambers of Government needed to be clearer on what it Commerce thought the purposes of devolution were: Lord O’Neill neither agreed nor disagreed, The Government’s approach in recent years stating that ‘systematic’ devolution was has been ad hoc and conducted without an “against the spirit of devolution [which] overarching framework to work within or can only happen where local authorities a national goal to aim towards. Mayor of want the extra accountability to go with the London’s Office responsibility. There was a general sense even within those who agreed that, as Arianna Giovannini, Interim Director of IPPR North, noted, a ‘one size fits all approach’ was not a good idea, and a large number used that exact phrasing or similar language. 20
PART I: It should be necessary for an area to have an elected mayor as a pre-requisite of any devolution deal that includes delegation of significant sums 30% 25% 20% 15% 10% 5% 0% Strongly Agree Slightly Neither Slightly Disagree Strongly agree agree agree or disagree agree or disagree disagree All respondents apart from one answered There was a different response from the this question. Overall, more respondents Metro Mayors themselves. Four of the disagreed than agreed, with overall seven Mayors who responded agreed to 20 respondents disagreeing (49%), one extent or another, including Mayor of 15 respondents (37%) agreeing and 6 Cambridgeshire and Peterborough James respondents (15%) neither agreeing nor Palmer, who stated that his reasons for disagreeing. doing so centred on accountability: ‘You need somebody who is answerable and Sir John Armitt, Chair of the NIC, echoed that’s tremendously important’. many other respondents by qualifying his support for the Mayoral model with a clear Andy Burnham neither agreed suggestion that devolution proposals should nor disagreed, but rather “strongly respond and adapt to places and not the recommended” the Mayoral model for other other way around. He stated: areas, adding, ‘If someone is accountable then that helps with delivery .. but Other models of accountability may work. devolution by definition cannot and should What is important is getting the right option not be imposed. And certainly, less valid/ for the right area. appropriate in rural/dispersed areas.’ Ben Rogers, Founding Director of the Jamie Driscoll Mayor of the North of Tyne Centre for London echoed this, slightly indicated that he strongly agreed for city disagreeing with the statement and saying: regions but neither agreed nor disagreed for ‘I don’t think the case for a Mayor is so more rural areas. compelling that if an area doesn’t want a Mayor that it should get in the way of devolution’. Henri Murison, Director, NPP, neither agreeing nor disagreeing said: ‘the focus should be less about a specific structure and more about powers and responsibilities’. 21
PART I: The proposal to 'level up' Metro Mayor powers for combined authorities is a good idea 40% 35% 30% 25% 20% 15% 10% 5% 0% Strongly Agree Slightly Neither Slightly Disagree Strongly agree agree agree or disagree agree or disagree disagree All but two respondents answered this Phillip Blond, Director of Respublica, said: question, with a clear majority agreeing. ‘we wouldn’t want Manchester to become a 28 of those who responded (70%) agreed ceiling on devolved powers.’ Lucy Powell, and just 4 respondents (10%) disagreed. MP for Manchester Central, who neither 8 respondents (20%) neither agreed nor agreed nor disagreed with the statement, disagreed. echoed this: ‘we would rather not have Manchester’s devolution settlement seen as This response is consistent with previous a ceiling; Manchester instead should be the answers where there were clear majorities forerunner.’ for the view that the Government had not devolved sufficient powers and funding and Out of the Metro Mayors who participated, had been too cautious in limiting the scope of four of those with less powers than Greater devolution. However, it should be noted that Manchester or London agreed, indicating an no respondent expressed the view that the eagerness to move beyond the powers as powers already devolved to Manchester were currently devolved. Jamie Driscoll, Mayor sufficient. This was emphasised by Andy of the North of Tyne, took a more nuanced Burnham, Mayor of Greater Manchester, position, stating that he would strongly disagreeing with the statement agree with the statement ‘if it were true’ but complained that this was ‘not what the Levelling up is a problematic concept as Government has offered in practice.’ it implies levelling up to areas that have reached their optimum devolution and there Echoing the suggestion of Andy Burnham, is plenty more that Greater Manchester Jamie Driscoll, Mayor of the North of Tyne and London want. What is required is a also said his alternative vision would be ‘a devolution framework/continuum and then devolution framework that takes us all the different areas can move up towards full way beyond the powers London currently devolution as and when is appropriate has, and where the powers and budgets can for them. be drawn down when the regions choose and are demonstrably capable of 22 managing them.’
PART I: 4 Key actions city region Metro Mayors and combined authorities should take to: Reduce inequalities between regions? All respondents but one answered this • Education and skills investment question. Opinion was divided between (9 respondents, 28%). those who thought that reducing inequalities Education and skills investment came a between regions should be a priority for close second, often linked directly with Mayors and those who thought it incidental to the suggestion of transport investment. their work to reduce inequality within a region. Mark Goldstone of the West and North However nine respondents thought such Yorkshire Chamber of Commerce, action was outside the scope of a Metro said that Metro Mayors and combined Mayor’s remit. authorities should ‘ensure that transport and infrastructure strategies take account Henri Murison, Director, NPP, said of adjoining regions so that people are ‘the primary way to narrow the north- able to access education and employment south economic divide is to eliminate the opportunities between regions.’ productibvity gap….One primary cause [of which] is poor transport between and within • Further devolution of powers regions. Education and skills would be the (8 respondents, 25%). next area of priority.’ In total three strands Many of the respondents were keen to emerged among the 32 respondents; 76%, suggest that further devolution of powers felt there was a role for Mayors to reduce could reduce inequality between regions. inequalities: Mike Hawking, Joseph Rowntree • Transport and infrastructure Foundation, for example, suggested investment (17 respondents, 53%). asking ‘for further devolution of powers and funding.’ One respondent suggested The most popular answer was investment ‘fiscal devolution for London leading to in transport and infrastructure because less reliance on national funding could physical infrastructure crosses regional have knock on effects; creating incentives boundaries. Jim Hubbard, Head of to invest across the whole of England.’ Regional Policy at the CBI suggested that, after education and skills, ‘transport An anonymous Mayor made the case links that widen access to labour’ were for ‘significant, single-pot devolution of the most important investment Metro funding to CAs to invest in the delivery of Mayors could make, though this was their local industrial strategies.’ framed as a proposal to unlock regional growth rather than reduce inequality. Dan Jarvis, Mayor of Sheffield City Region suggested that Metro Mayors could employ ‘joint working, as through Transport for the North, on major transport infrastructure programmes.’ 23
PART I: Of those who thought reducing inequalities Mayor of Bristol Marvin Rees added, ‘is between regions was beyond a Metro it the responsibility of Bristol to reduce Mayor’s remit there was a split between inequality in Grimsby? What I can do, is those, the clear majority, who said they to advocate for devolved leadership to shouldn’t take action on this and the minority Grimsby.’ Duncan Bowie, Senior Research who said Metro Mayors couldn’t take action. Associate, Bartlett School of Planning, Des McNulty, Assistant Vice-Principal of UCL, simply stated ‘clearly they can’t as any the University of Glasgow suggested this powers are limited to their own area.’ should not be part of the Mayoral role, asking However, Andy Burnham, Lucy Powell, ‘why would a Metro Mayor do that? I presume and Edna Robinson - senior figures within Metro Mayors would be seeking to get the the politics of Greater Manchester and the best for their particular region.’ Northern Powerhouse - thought that this work integral to the role of the Metro Mayor. Reduce inequalities within regions? All but three respondents answered this Three key areas were cited where Mayors question with many mentioning inclusive could take action to help reduce regional growth or the importance of balanced inequalities within regions: growth within a region. Mike Hawking, • Employment and Skills Joseph Rowntree Foundation, for example, (26 respondents,66%), couched his suggestion of transport investment around the need to: ayor of Sheffield City Region, Dan M Jarvis, said that he would like ‘the ensure that policy making in their regions ability to fully influence the education is conscious of the differing needs of system in its entirety, with a defined places within their region and ensure that role in primary, secondary and investment isn’t just concentrated in the tertiary education.’ Sasha Morgan, regional centre. Head of Secretariat for Social A number of those who cited inclusive Mobility Commission was also keen growth in their response also noted the to emphasise education powers, complexity of the problem of inequality and suggesting that combined authorities the need for an integrated approach across needed to see, ‘better integration multiple fronts. Des McNulty, Assistant between education and skills planning… Vice-Principal of the University of Glasgow Particularly thinking about how Metro suggested that Mayors and Combined Mayors work with the academies, Authorities ‘need policies that tackle place Regional Schools Commissioners, and disadvantage but also types of disadvantage the FE college sector.’ like health, ethnic minority, etc., it’s a very complex process.’ 24
PART I: • Transport and infrastructure Other contributions included one that (11 respondents, 28%) suggested much inequality could be reduced by ‘ensuring better coordination of activity Mike Hawking, Joseph Rowntree between Health/DWP/Education/Police and Foundation specifically suggested that Councils.’ Another said that the 33 Fairness ‘intra-regional transport should be a Commissions ‘up and down the country’ particular focus for addressing intra- should be looked at for what they are doing regional inequalities… and Mayors to try ‘to iron out inequalities’. should utilise powers around the delivery of bus services.’ • Health (7 respondents, 18%) A number of respondents stated health as a key area in tackling inequalities for example Phillip Blond, Director of Respublica said: ‘None of the factors that influence health are all controlled by the NHS and yet Local Authorities don’t have control over health outcomes. Local Authorities should be the institutions for health of the 21st century, not the NHS.’ Marvin Rees, Mayor of Bristol, suggested investing in health should be a foundation of tackling inequality within a region, stating that one of the most important public policy priorities should be ‘investing in mental health and public health to get early interventions for people to build a foundation’. Jonathan Werran, Chief Executive of Localis, suggested more specific proposals, putting forward the idea of a ‘Public Health Premium, modelled on the Pupil Premium’ in order to prioritise local areas with poor public health outcomes. 25
PART I: Achieve productivity and growth in the wider region? All but five respondents answered this • Invest in transport/connectivity, question. There was a split between the particularly intra-regionally majority who suggested specific priority (19 respondents, 51%) policy areas and a minority who emphasised Transport came an equal second to the frameworks within which these policies investing in education and skills with should be delivered. Lucy Powell, MP for 19 respondents mentioning it, often in Manchester Central, for example, was keen relation to other areas of policy. to ensure that her answers were understood within an inclusive growth framework, adding Sir John Armitt, Chair of the NIC, for that: ‘Cities need to benefit the towns. Towns example, noted that: ‘linking transport, should not be competing with cities for things housing, skills, and employment is such as foreign direct investment.’ essential.’ An anonymous respondent spoke from personal experience in Another anonymous respondent said that advocating for improved transport city regions and combined authorities needed infrastructure: ‘I believe inter-regional to: ‘understand the economic interactions connectivity is critical to productivity. and flows within the wider region based National connections are good but inter- on evidence, seeing these as two-way, and regionally they are very poor.’ agreeing a package of investment between cities, city regions, and nearby places’ • Achieve closer working with the private sector (7 respondents, 19%) To achieve productivity and growth in the wider region Metro Mayoral areas and A broader category which could be Combined Authorities need to be able to: termed ‘closer working with the private sector’ was suggested. This covers • Invest in education and skills attracting inward investment into an (19 respondents, 51%) area, and working together toward Investment in education and skills was closely-aligned goals. Dr Adam Marshall, often seen as an investment in people Director-General of the British over physical infrastructure, a distinction Chambers of Commerce suggested made by a small number of respondents. that local areas needed to: ‘develop the strongest possible partnership with the Lord Wrigglesworth, for example, stated business community; businesses want that: ‘Regional economic development to be treated as equals and not just as often focuses too much on physical rather stakeholders, working together on the than human assets… the focus should be development and execution of growth people and changing culture in deprived strategy’. areas to instil ambition’. Similarly, Des McNulty, Assistant Vice- Principal of the University of Glasgow, said, ‘Skills and talent development should represent the key sticky capital of the area rather than new buildings and new infrastructure’ 26
PART I: • Develop Local Industrial Strategies (5 respondents, 14%) Whilst Local Industrial Strategies were sometimes mentioned alongside further private investment they are considered as key to productivity and investment. Kathryn Mackridge, Policy Officer at the TUC noted that the creation of ‘high-quality employment standards’ was crucial to this objective and should form the core of ‘any skills strategy/local industrial strategy.’ Others called this approach a ‘growth strategy [which] puts growth into hard and soft economic metrics.’ Jane Thomas, former Director of the Campaign for English Regions, said: Go back and revisit the Productivity Reports of the Treasury in the noughties. Nothing has changed in terms of identifying the problems ie productivity issues, pull and push factors with labour markets, investment in transport and infrastructure, skills, etc. 27
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