Neil McInroy Chief Executive Centre for Local Economic Strategies Devolution and social sector role 10 th March 2015

What i CLES? Independent charity Economic development but with social fairness and within limits of environment Publishers: Established 1985 Planners, geographers, local government, environmental scientists, economists Hybrid; research, consultancy, members Leading UK member org for research into Economic development About CLES

Drivers of Devolution Prof Michael Parkinson: ‘19 th Century government, 20 th century boundaries to run 21 st century economy’ Economic growth (in England Large cities) to decentralise decisions, may de-concentrate investment? Public sector reform Austerity/cuts Scotland A sense democracy needs renewing Politically important to do something for ‘the north’

What has happened? Merely acceleration of growth deals and city deals? GTR Manchester ‘devo manc’ - Housing, Skills, Employability, Infrastructure, Transport, Business Support, some Planning and now democratic oversight over Health Budgets. Is this exception or the new rule of thumb? Sheffield has some housing, transport and skills Liverpool want skills, employability, housing and public land No fiscal devolution Much hyperbole and spin?

The type of devolution we are getting? Asymmetrical, Haphazard and chaotic. Different speeds with winners and losers? Not concerned with national inefficiencies or fairness City states. Do we want that? No national constitutional settlement. We need one! Very little/no new money. Repatriation of some of Whitehall’s. They can reduce the purse? Is it mostly about managing cuts or is a new English social contract being built? Or both?

Devolution is just a means to an end, It ain’t the end. We are in the foothills Little on democratic renewal, role of civil society, social sector role Focus on economic growth not fairness, inequality or poverty Is this about social justice, dealing with inequality? No welfare or employment policy –The social inputs to a ‘good economy’

Co-production? ? Questions for devolution agenda What kind of England do WE want and what type of government do we want to get there? Is this Devolution merely following a treasury/neo classical model and nationally inequalities will be just exacerbated locally? How do we maintain national fairness (especially if some fiscal decentralisation occurs)? How do we involve citizens, business, Social sector- recipients or players?

We are in a transition phase Public services and Welfare provision is struggling all over the world Increasing demand and how to pay and deliver it Devolution is part of this. But its avoiding the big questions A new social contract is being built around us New relationship between state, public services and citizens

Low down in devolution agenda There will be commissioning at city regional level But limited new opportunities given further cuts planned Maybe more preventative upstream work Need to fight for new local ‘democratic deal’, Seats at tables and part of creating a new local social contract The challenge for social sector

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