1. Professor John Shutt July 2015
Economic Growth: Are we ready?
Sheffield Hallam University
Leeds Business School.
RTPI Yorkshire Seminar

2. The Northern Powerhouse:
Developing the Momentum and linking with the EU Urban and Regional Agenda

3. Developing the Northern Powerhouse

4. Introduction Introduction to LBS research
Regionalism, localism and the restructuring of
Local Government in the England
The Northern Powerhouse arises
and stalls -Which way Forward ?
Developing a stronger Agenda-
more bottom up less top down
Conclusions and Next Steps

5. Introduction Research on LEPS- Local Enterprise Partnerships
Research on Leadership and Local Governance
Research on Combined Authorities and City Regions

7. REGIONAL GVA in THE UK
Source REIU Leeds City Council

8. The Widening North South Divide
London increases 12.2 points to 171.9
North East increases 1.2 points to 74.3
All other regions decreased compared to UK average, particularly West and East Midlands.
Source ONS Dec

9. Principles of the Northern Powerhouse George Osbourne 2014
‘There is a hard truth we need to address.
The cities of the north are individually strong, but collectively not strong enough. The whole is less than the sum of its parts.
So the powerhouse of London dominates more and more.
And that’s not healthy for our economy. It’s not good for our country.
We need a Northern Powerhouse too.
Not one city, but a collection of northern cities - sufficiently close to each other that combined they can take on the world’.

10. Principles of the Northern Powerhouse George Osbourne 14th May 2015
Here’s the deal:
We will hand power from the centre to cities to give you greater control over your local transport, housing, skills and healthcare. And we’ll give the levers you need to grow your local economy and make sure local people keep the rewards.
But it’s right people have a single point of accountability: someone they elect, who takes the decisions and carries the can.
So with these new powers for cities must come new city-wide elected mayors who work with local councils.
I will not impose this model on anyone. But nor will I settle for less.
London has a mayor.
Greater Manchester has agreed to have a mayor as part of our Northern Powerhouse - and this new law will make that happen.
My door now is open to any other major city who‎ wants to take this bold step into the future.

11. English Local Government : Regime Change The Rise of Combined Authorities in England
Combined authorities are a legal structure that may be set up by local authorities in England, following a governance review.
Combined authorities may be set up by two or more local authorities. The combined authority must include all local authorities in its area: it cannot include, for instance, part of a county council area. They may take on transport and economic development and health and social care functions. They have a power of general competence.
Some people (e.g. Heseltine at LGA) refer back to Radcliffe- Maud Royal Commission report i.e.
58 Unitaries for England, as a possible ‘new’ model
Local government reorganisation by stealth or the backdoor consensus?

12. Combined Authorities : ENGLAND
Greater Manchester Combined Authority (GMCA)
The Greater Manchester Combined Authority was established under the Greater Manchester Combined Authority Order 2011 (SI 2011/908). The GMCA covers the ten metropolitan boroughs which formerly made up the metropolitan county of Greater Manchester: Manchester, Salford, Stockport, Tameside, Trafford, Wigan, Bolton, Bury, Rochdale, and Oldham. These authorities also constitute the Association of Greater Manchester Authorities (AGMA), which is distinct from the GMCA.
The frontrunner and lead model for England
Greater Manchester Mayoral Election May 2017

13. The Changing Local Government Regime
The Northern combined authorities are so far:
• The Sheffield City Region Combined Authority (SCRCA) (formally the ‘Barnsley, Doncaster, Rotherham and Sheffield Combined Authority’), covering the former metropolitan county of South Yorkshire.
• The West Yorkshire Combined Authority, (WYCA) covering Leeds, Bradford, Calderdale, Kirklees and Wakefield i.e. the former West Yorkshire Metropolitan County. York City Council is an associate member
• The Liverpool City Region Combined Authority,(LCRCA) (formally the ‘Halton, Knowsley, Liverpool, St Helens, Sefton and Wirral Combined Authority’), covering the former metropolitan county of Merseyside plus Halton (Widnes and Runcorn);
• The North-East Combined Authority(NECA) (formally the ‘Durham, Gateshead, Newcastle-upon-Tyne, North Tyneside, Northumberland, South Tyneside and Sunderland Combined Authority’), covering the same area as the North-East Local Enterprise Partnership (LEP).
Now Combined Authorities are being considered by DCLG across England from Cornwall to Cambridge and the West Midlands. The Rise of the West Midlands Engine and Powerhouse and the extension to the Counties e.g. Cornwall and Derbyshire/Nottinghamshire.
Most of the criteria for change is locally led and agreed collaborations across local authorities

14. Greg Clark LGA Speech June 2015 Harrogate
‘The glories of this nation don’t just reside in our cities, but also in our counties, towns and villages. These urban, suburban and rural communities provide the stuff not only of our heritage, but of our future prosperity too.
That is why the Growth Deals went beyond the geographical focus of the original City Deals to embrace other areas too’.

15. Greg Clark LGA Harrogate June 2015
‘Now, with the next stage of decentralisation, I want to go much further.
I want every place in this country to consider how they can assert their strengths and make their mark.
We must be a nation of muscular communities – north and south, east and west, town and country’.

16. Growth Deal Awards by LEP £m
LEP Areas
2014
2015
TOTAL
North Eastern
289.3
40.6
329.9
Tees Valley
90.3
13.9
104.2
Cumbria
26.8
20.9
47.7
Lancashire
233.9
17.2
251.1
Liverpool City Region
232.3
31.6
263.9
Greater Manchester
476.7
56.6
533.3
Cheshire and Warrington
142.7
15.1
157.8
York North
101.1
12.1
113.2
Leeds City Region
572.9
54.6
627.5
Humber
103.7
9.9
113.6
Sheffield City Region
295.2
30.7
325.9

17. From City Deals To Devolution Deals 2011-2015
Within BIS, DCLG and the Treasury a deal-making culture is growing which needs close monitoring and much transparency.
Successive waves of CITY Deals are now mingling with the LEP Growth Deals and the Devolution Deals
The deal-making approach is in the political DNA of Greg Clark, now DCLG Minister

18. GMCA :The Greater Manchester City Deal
Create a revolving Infrastructure Fund by allowing Greater Manchester to ‘earn back’ a portion of additional tax revenue from GVA increases resulting from local investment in infrastructure
Establish a Greater Manchester Investment Framework to align core economic development funds
Create a City Apprenticeship and Skills Hub to place apprentices with SMEs, as well as piloting a skills tax incentive and locally determined outcome payments to providers
Strengthen Greater Manchester’s Business Growth Hub, which integrates trade, investment and businesses advice Develop Manchester’s role as a beacon for high value inward investment
Establish a Low Carbon Hub, with a plan to reduce emissions by 48% by 2020
Establish a housing investment fund to use local and national investment to develop new housing
Work with DfT on a broad package of transport proposals encompassing devolution of the Northern Rail franchise, bus improvement measures and devolution of local transport majors funding

19. Summary of the Greater Manchester Devolution Agreement
A new, directly elected Mayor of Greater Manchester will receive the following powers
Responsibility for a devolved and consolidated transport budget, with a multi-year settlement to be agreed at the next Spending Review.
Responsibility for franchised bus services (subject to consultation by Greater Manchester), for integrating smart ticketing across all local modes of transport, and urgently exploring the opportunities for devolving rail stations across the Greater Manchester area.
Powers over strategic planning, including the power to create a statutory spatial framework for Greater Manchester. This will need to be approved by a unanimous vote of the Mayor’s Cabinet.
Control of a new £300 million Housing Investment Fund.
Control of a reformed earn back deal, within the current envelope of £30 million a year for 30 years.
Take on the role currently covered by the Police and Crime Commissioner

20. The Greater Manchester Combined Authority (GMCA) will receive the following powers:
Responsibility for devolved business support budgets, including the Growth Accelerator, Manufacturing Advice Service and UK Trade and Investment (UKTI) Export Advice.
Control of the Apprenticeship Grant for Employers in Greater Manchester and power to reshape and re-structure the Further Education (FE) provision within Greater Manchester.
Control of an expanded Working Well pilot, with central government funding linked to good performance up to a fixed DEL limit in return for risk sharing.
Opportunity to be a joint commissioner with Department for Work and Pensions (DWP) for the next phase of the Work Programme.
GMCA and Greater Manchester Clinical Commissioning Groups will be invited to develop a business plan for the integration of health and social care across Greater Manchester, based on control of existing health and social care budgets. Further powers may be agreed over time and included in future legislation.

21. Economic Transformation and Devolution
The Manchester agreement extends powers to Health and social services not just Planning, Regeneration, and Housing and Economic development.
Health and Social services devolution and integration is now a big part of the agenda.
The devolution agreements with Leeds and Sheffield rest on adoption of the Mayoral model at CA level. This has been resisted prior to the General Election. Much confusion exists with existing City Mayor models and referenda's which have failed ( Liverpool and Bristol are the only City Mayors).
Governance arrangements are critical because of the funds being devolved and Sheffield and Leeds Devolution Deals are unlikely to be concluded until this is resolved.
The search for new public and private funding models is part of the debate along with retention of Business rates., but not fiscal devolution.

22. WYCA The Leeds City Region Devolution Deal
‘We are confident that by securing a comprehensive devolution deal, we can do better than Whitehall, growing our economy and addressing the issues of productivity facing the UK economy. The Chancellor has now made clear that greater levels of devolution in England are directly linked to a change in governance.
We were clear in the last Parliament that in the light of people having strongly rejected elected mayors in recent referenda in Bradford, Kirklees and Wakefield, we did not believe this was the model for West Yorkshire and York.
However, the Chancellor has now made his position clear and we need to consult the local people, businesses and stakeholders of West Yorkshire and York on the governance options that could unlock extra powers and resources from Whitehall. We will be asking government to let us have details of what extra powers and resources could be made available to us in return for a change of governance’.
Cllr Peter Box May 2015

23. Sheffield City Region agrees devolution deal with Government‏
Sheffield City Region has agreed on a Devolution Deal with Government, which will give local authority and business leaders greater say over how they grow the local economy.
 James Newman, Chairman of Sheffield City Region Local Enterprise Partnership, said:
 "The Devolution Deal transfers a number of powers and policy levers from Government to our City Region. These powers will enable the Sheffield City Region to make a greater contribution to the UK economy and act as a core part of the Northern Powerhouse.

24. The Combined Authority “CA” was established on 1st April 2014 and the first meeting of the CA took place on 22nd April 2014.
The announcement was welcomed by Sheffield business leaders, including Sir Stephen Houghton, chairman of the Sheffield City Region Combined Authority, who said the region was "at the head of the pack as one of only three areas with a devolution deal, alongside Leeds and Manchester".
"However, a deal is not inevitable and any deal for significant changes in governance in Sheffield City Region will only be made if a significant devolution deal is on offer," he added.

25. The Developing Agenda
The Northern Powerhouse is about more than transport investment.
Government has committed itself to invest in science and technology,transport,digital and innovation, culture and tourism across the region.
Alongside devolving power this gives the north a powerful new voice.
DCLG 5th July 2015

26. The Developing Agenda The new approach focuses on Economic Growth
On developing economic potential
On infrastructure networks not just for transport but for digital and energy
The geography is multi- scalar and variegated and the spatial focus often unclear TTWA,City Region, Combined Authority,LEP areas,
Call for a new Council of the North
Call for a Great North Plan and Northern Summit. IPPR/RTPI

27. The Northern Powerhouse Budget MARCH 2015
Publishing the interim report of Transport for the North, building on the HS3 concept to develop a network of high quality rail connections across the north £13bn Transport
Electrification of the Hull to Selby line
£20m to Health North: Centres in Newcastle, Liverpool, Manchester and Leeds-Sheffield
£11m in Tech Hubs: Manchester, Leeds and Sheffield
Funding to develop a financial technology incubator in Leeds
£14m for Advanced Wellbeing Research Centre in Sheffield
£1m to the Centre for Process Innovation for the North East’s chemical sector
Funding towards the refurbishment of Muni Theatre in Pendle
Welcoming talks to reinstate the ferry from Norway to Newcastle, with funding to market the North East for tourism
Devolution deal with West Yorkshire Combined Authority: powers over skills, business support, transport, employment and housing
Pilot scheme to enable Greater Manchester and Cheshire East to retain 100% of additional business rates growth
Extending Enterprise Zones: Humber, Manchester, Mersey Waters, Tees Valley; amending the Leeds Zone; and developing Zone in Blackpool

28. Budget Announcement July 2015
Agreement reached with Manchester for devolvement of fire services & establishing  land commission plus control over children's services and employment services
Government also in negotiations with Sheffield, Liverpool and Leeds City Regions. “Greater Manchester deal open to any big city that accepts a directly elected Metro Mayor” Richard Moss BBC: “I know North East Combined Authority objected to wording on mayor in draft budget statement. Response - no longer in statement”
£30m of funding for Transport for the North to develop projects including travel cards for region.
Counties, smaller cities and towns are to have more enterprise deals and freedoms to set Sunday trading hours

29. NP Engagement with Europe 2020
Needs driving Forwards by the European
Secretariats with NP
Juncker Plan for Infrastructure and Growth
Cohesion Policy Opportunities for Mega City Region coordination
European Territorial Agenda
Exploit European Urban Agenda and Smaller Towns and Cities in NP e.g. Wakefield, Preston

30. Conclusions: Move The NP Concept Forward
What is required? Put substance into the BRAND and the SCRIPT?
Resources and Capacity Building NP Secretariat. New structures and CA coordination
Debate on programme, themes, geographies, timescales, financial resources and bids
Longer term planning, not just one off deals
Public participation and consultation
Debate with the European Commission as well as central government departments
Clarification of stakeholder lead roles and not just private sector- universities and third sector

31. References
The Economist June 6th 2015 Plans for a Northern Powerhouse could transform English politics
Centre for Cities 2015 A snapshot of the Cities and Local government devolution Bill 2015 and Northern Powerhouse factsheet 2015
Transport for the North 2015 March the Northern Powerhouse: One Agenda, One Economy, One North
The EU urban Agenda Brussels June 2015 European Commission
Leeds LEP May 2015 The Northern Powerhouse needs the Leeds City region at its heart. Roger Marsh Chair of Leeds LEP
G. Haughton et al 2015 forthcoming Mythic Manchester: Devo Manc, The Northern Powerhouse and rebalancing the English economy.
Manchester University.
Manchester City Council devolution and Greater Manchester Mayor: implications for Manchester . Chief executive’s report 26th November 2014 Manchester City Council
Shutt J, Bentley G and Pugalis L Leadership and systems of Governance the constraints on the scope for leadership of place based development in sub – national territories. Forthcoming
IPPR 24 June 2015 Do we need a Great North Plan? Call for evidence IPPR North and RTPI
ONS Regional Gross Value Added, Statistical Bulletin, December 2014

32. References
House of Commons Devolution to Local government in England 24th June HOC Library Briefing Paper House of Commons Local Growth Deals Standard Note SN/EP/ th March 2015 The Radcliffe-Maud report Royal Commission on Local government in England Cmnd 4040 George Osbourne MP Budget Speech March 2015 Greg Clark MP Speech to Local government Association ,Harrogate, June 2015