Make devolution work better beyond the metro bubble, Localis study urges
Ministers must adapt devolution plans beyond a uniform Greater Manchester style metro-mayoral model to help those parts of England without strategic powers quickly catch up and deliver local growth opportunities, a new report from the independent think-tank Localis has advised.
In a report published today entitled “Everything in its right place: establishing strong organisations and practices for successful devolution”, developed in partnership and sponsored by Local Partnerships, Localis argues that policy frameworks for devolution in England should more closely match individual local economic contexts, with failure to do so risking the deepening of regional imbalances and surrendering local economic control to Whitehall.
However, in the context of local government reorganisation (LGR), which is leading to the creation of new unitary councils, the authors argue responsibilities between strategic authorities and local authorities must be finalised before the dust settles on the process – so as to fix which functions should be held regionally and strategically or remain closer to neighbourhoods.
The study also recommends the benefit of adopting a universal fiscal devolution roadmap for all emerging strategic authorities, not just the established mayoral strategic authorities, and signposts avenues for exploring further reform – including greater devolution of revenue-raising powers to levies such as income tax or VAT.
And in order to drive local public service reforms across regions, the paper recommends that strategic authorities should use their convening power to support whole-place, prevention-first delivery in the use of strategic scale to align councils, ICBs, transport bodies, and other local partners.
Among the key recommendations in the ‘Everything in its right place’ report, Localis calls for:
- Government to continue to explore avenues for extended fiscal devolution and options for further reform, including greater devolution of revenue-raising powers, uniformity across fiscal reforms, and radical initiatives such as the distribution of income tax or VAT.
- The current model of place leadership to move away from incentives solely derived from agglomeration policies and focus on growth policies that emphasise network-building across cities and rural networks, stronger peripheral connectivity and collaboration across wider regional economies.
- A clear institutional settlement after local government reorganisation: responsibilities between strategic authorities and local authorities after Local Government Reorganisation (LGR) has been completed must be finalised before the dust settles, setting out what functionalities are best held at strategic scale and which should remain closer to communities and neighbourhoods.
- Emerging strategic authorities to be organised around the real geography of place – recognising that not all have a single dominant urban core, and organise growth strategy around town networks, transport links and local economic relationships.
- Strategic authorities to build institutional foundations at outset, adopting a writing constitution that defines corporate purpose and core values and priority outcomes with early investment in strong organisational basics for analysis and policy capacity, scrutiny safeguards as well as financial and risk management.
Localis senior researcher, Sandy Forsyth, said: “The continued prioritisation of more mature, ‘established’ authorities, the traditional deal-first approach, and top-down control from Whitehall may stifle genuine regional autonomy and reaffirm existing asymmetries in regional development.
“However, at this crucial moment in time strategic authorities can, and should, be provided with the means to develop strong foundations that can respond to their own, unique place contexts.
“‘Everything in its right place’ argues for stronger scrutiny and accountability processes for strategic authorities, including a minimum national standard for scrutiny, so that they might have the trust and confidence of their peers, communities, and government in order to make a success of devolution.
“The report also offers a routemap for a new iteration of devolution that accounts for the inherent asymmetries of place to which strategic authorities both old and new must respond, providing a method to temper the present variability in policy that might otherwise leave its mark on the local government sector.”
Adele Gritten, chief executive, Local Partnerships, said: “Devolution is entering a new phase, with combined authorities playing a vital role in driving growth in their regions. This report makes clear that a more place-based approach is needed, one that reflects local areas rather than relying on a single model for all regions.
“With the right foundations and support, combined authorities are well placed to turn ambition into real outcomes for their communities and economies.
“Local Partnerships works across the public sector to help make that happen in practice – strengthening capability, navigating complexity, and ensuring devolved powers translate into delivery on the ground and positive outcomes for communities.”
read the report
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