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Levelling Up White Paper: Will it actually deliver local government reform?

856 days since it was first announced, two secretaries of state, a general election and a change of name later, we finally have the publication of the Levelling Up White Paper.

It came with some big promises for local government reform with the accompanying press release promising the “biggest shift of power from Whitehall to local leaders in modern times”. Looking at the detail there is much to be welcomed if devolution is your thing.

At the heart of the proposals is the promise of more mayors and a commitment that by 2030 any part of England which wants a devolution deal will have one. This is a positive step and gives a much needed boost to an agenda that has slowed considerably since the first flurry of deals in the Cameron/Osborne era.

Regional economic policy timeline
Regional economic policy timeline 

Successful places, be that towns or cities, are created locally. They require strong political leadership, an evidence-based approach to economic strategy and the ability to lever in private sector investment towards delivering a shared vision. In the short time since the first metro mayors were elected in 2017 they have, by and large, shown they can deliver just that, bringing greater levels of investment, a higher profile and more coherence to areas outside of the capital than was previously the case. So it makes sense that ministers want to see more areas go down this route and expand the powers available to current mayors.

The first nine areas invited to begin negotiations on new county and devolution deals will be Cornwall, Derbyshire & Derby, Devon Plymouth & Torbay, Durham, Hull & East Yorkshire, Leicestershire, Norfolk, Nottinghamshire & Nottingham, and Suffolk.

The White Paper also announces negotiations for a new Mayoral Combined Authority deal for York and North Yorkshire and an expanded Mayoral Combined Authority deal for the North East. There will as well be negotiations for ‘trailblazer’ devolution deals with the West Midlands and Greater Manchester to extend their powers - with these deals acting as blueprints for other Mayoral Combined Authorities to follow.

It is also good to see the desire to integrate LEPs more closely into combined authority structures, rather than another reorganisation of them. Where this has already been done it proved effective at encouraging a greater partnership between public and private sectors.

How quickly will this happen?

It’s noticeable that the press briefings in recent months that the Government would force mayors and structures onto areas – particularly counties – have not come to pass and the previous model of local consent is being retained. Given the current situation in Westminster it is hardly surprising that ministers have concluded that right now might not be the best time for them to pick a fight with their own district and county councillors.

This does make it harder to predict how quickly new deals and mayors can be put into place. Like all negotiations the length of time depends on the complexities of the issues – in this case geographical and political – and the willingness for both sides to compromise.

Having chosen to go down the path of negotiations we hope that the government ensures that any devolution talks don’t become an excuse for local authorities to delay important decisions like the development and adoption of new local plans.

Deals should be easier and quicker to do once the government has published the “devolution framework” mentioned in the White Paper. This will essentially be a menu of options for local areas to build their own deals from.

Based off current devolution deals we can expect this to include as a minimum: a 30 year investment fund and the offer of powers over economic development, transport, strategic planning, skills and employment. In areas where the boundaries align with existing structures it could also mean taking on services like police and fire.

Using the most recent process with the West Yorkshire Mayoralty as a guide - where the deal was agreed in March 2020, legislation passed in January 2021 and the first election in May - it generally has taken around a year between a deal being agreed and the new mayor taking office.

This could be shortened if the government decides to hold a special set of elections, as it did for the first set of police and crime commissioners in November 2012. However, given this resulted in disastrously low turnout levels it seems an experiment unlikely to be repeated.

If a few deals can be agreed quickly in the next couple of months then we could see a small number of new mayors elected in May 2023, with greater numbers to follow from May 2024 onwards.

Some devil in the detail?

In most Government documents the seemingly innocuous parts can often conceal some of the more potentially interesting bits. And this could well be the case for what the white paper calls new “accountability frameworks” for mayors.

These we are told will mean defined targets for combined authorities, “new forums for local media, local councillors and local residents to review their performance of authorities with devolved functions” and allow “the public to make a clear judgement on the performance of Mayors”.

While this is understandable - as the mayoral model is maturing it is only right that the systems and scrutiny functions around it develop as well – some of this is also about control. After repeatedly clashing with some northern mayors during the pandemic, it is easy to see this as a way to put mayors on a slightly tighter leash in future, keeping them busy worrying about local scrutiny, rather than attacking government policy. 

How much influence the current mayors retain will also be interesting to watch. At the moment part of their success has come as a result of their scarcity. As the relatively new kids on the block they often have direct access to secretaries of state and are able to command national media profiles. Once everywhere has a mayor their novelty factor will disappear and perhaps as a result their influence also. As just one of many will they find ministers less willing to answer the phone and the TV cameras focused on other things? Time will tell.

Are these changes welcome?

Overall the proposed reforms have so far been met with a cautious optimism in local government circles, particularly – and understandably - by those areas in line for extra cash from central Government. And we would largely share their optimism and welcome the comments to simplify and standardise the current patchwork of differing English devolution settlements.

Unlike other parts of the white paper which are heavy on ambitions but lighter on delivery and funding, the devolution proposals are a positive evolution of the mayoral experiment. They come with new money attached for those areas that can agree devolution deals and the evidence from the current mayors shows they should deliver real benefits as well.

Please contact Rich Durber if you wish to discuss the Levelling Up White Paper.

3 February 2022

 

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