THRIVING LOCAL ECONOMIES Gordon Mitchell for the LGA

Closer to People and Places – A New Vision for Local Government Thriving Local Economies

Context Devolution Is it really achievable? Economic growth and the role of cities/regions Govt ready? governance issues?? White paper HMT study on economic growth and regeneration

Thriving Local Economies What powers should Local Authorities have? At what levels should these powers be available or enabled? How might development in this direction be phased?

It spans very different worlds Tyne and Wear ManchesterNorwichRushcliffePUSHYeovilCornwall International competitiveness Growth Inward investment RegenerationJobs Social enterprise Preserving communities Keeping the high st

So frameworks need to allow different places to be shaped for the needs of local people – there is no one answer or model The framework will need to be enabling, and tools and levers a menu which add value in different circumstances

No local authority is an island But each council should be able to develop a vision which fits

The urban contribution – not enough After decades of decline, obvious recovery But…..performance is poor by comparison to other european cities –Bristol and Leeds did best at 34 th and 43 rd –Rated on location for business, only Manchester made it into the top 30 63% of Englands jobs are in urban areas

ECONOMIC DEVELOPMENT Strategic planning Transport Infrastructure Housing Policy Adult Skills Rail and air policy and infrastructure Innovation RDA Gov. Office Regl Assembly LSC Regl. Hous Board DfT SRA Railtrack DTi PTE Local Govt RES RSS UDP RIS LTP RHS RSS HIP CS ….. ABC NUTS

What does the landscape look like now? Setting the context: –strategic planning (Reg Ass) –Transport (DfT,GO,SRA) –Housing(GO/RegHB) –Skills(DfeS/LSC) –Economic development –and innovation(RDA/DTi) With funds controlled by RDA,GO, whitehall

How much funding is subject to local democratic oversight? An estimate would suggest that only 8-9% of funding related to the major levers of economic development, below national level, are subject to governance by elected bodies Birmingham City Region Manchester City Region Est. LA spend £77.5M£72.5M RDA/LSC/GO£675M£600M % LA oversight 9%8%

Impact of current pattern UK cities perform poorly in intn’l comparisons Effort is fragmented Planning and strategy lacks coherence Delivery stifled: –Slow pace –Public funding complexity –Weak ability to deliver major infrastructure – especially transport Little influence for local government

What we need Focus for strategy and delivery which can bring coherence, pace and impact…….appropriate for people and their places

Probably two layers need strengthened Local authorities Sub-regional economic partnerships

Local Authorities-becoming an expected player ‘Duty’ to cooperate added to ‘power to promote’ Develop understanding and capacity to use power New power to protect land for economic purposes Approval to CT levy hypothicated for funding prudential borrowing – for capital projects

Sub-regional partnerships-fully powered Strategic planning HousingTransportSkills Economic development Plus – ability to deliver major infrastructure projects…funding and decision-taking

Moving towards Proposals for much more extensive alignment in LAAs – a ‘virtual’ single pot Proposals and case for powers – with governance DCLG/LGA to dev programme of support to partnership and LAs Work on power to secure land

Moving White paper should say: –want economic development driven locally –Strengthened role for all Las –Want stronger planning and delivery at level of sub- regional partnerships –Want movement but recognise different places will be ready to go at different paces –Want different packages(asymetrical geometry) –Expect a roadmap for the development and the development of devolved powers Probably expect to work faster with the willing and ready

Discussion Points What blockages to achieving economic development objectives do you see? What powers do you want for your local authority? Do you agree with focussing change at the 2 levels? Do you agree that a progressive differential approach is appropriate?