It’s still only three weeks since Labour was swept to power. In that time the new government has set a rapid pace of change, with a series of announcements, sending signals as much to Whitehall as to the wider public about the reforming intent of ministers. Two central ideas that have been repeated over the last month are the government’s five missions and the devolution of power. But how do they interconnect? The answer is that mission-driven government requires a different way of governing, working in partnership across sectors and tiers of administration to deliver long term goals. Devolution is the process by which this becomes a reality for Britain’s towns and cities.
That is why devolution must be at the heart of national renewal. The government has made a strong start: meeting with the mayors to discuss Local Growth Plans on Day 5, devolution legislation in the King’s Speech, inviting non-devolved areas to come up with their own plans, and pledging to devolve employment support. But these early steps must be underpinned by long term system change to shift resources, capacity and powers to Britain’s regions and localities.
A new report published by The Future Governance Forum and Metro Dynamics, Impactful Devolution: A new framework for inclusive local growth and national renewal, argues for a new approach to devolution built on partnership.
Mission-driven devolution should be an overall priority for Whitehall, rather than the preserve of any one department, and it should engage the whole system of government in delivery. Not only setting grand challenges for society on growth, clean energy, better health, safer streets, and breaking down barriers to opportunity, but also building sustainable partnerships to deliver these, between different levels of government, and between public and private sectors. Central to this should be a mission council bringing together councils, metro mayors, business and civil society to advise Government on mission delivery outside SW1.
The potential of people in every part of the country needs to be unlocked, not only to improve people’s lives but to strengthen our economy. We need an inclusive economy approach to growth, that focuses not just on GVA but on the social and economic determinants of inequality.
National renewal requires channelling much greater private sector investment into our towns and cities. Long term industrial strategy and net zero plans, alongside macro economic stability are critical conditions for this. But so too will be a pipeline of credible and investable projects that can attract investment into infrastructure, housing, innovation and cluster development opportunities across the country.
Some of the foundations are now in place, with local authority based Mayoral Combined Authorities (MCAs) covering functional economic areas in a substantial part of the country, in addition to the GLA and Mayor for London. In total, 48 per cent of the English population are currently covered by devolution arrangements, which is due to increase to 65 per cent if the new deals are implemented as planned for 2025. But these foundations need to be strengthened and extended.
Our report sets out a clear framework for empowering mayors and local leaders to drive sustainable and inclusive growth in Britain’s towns and cities. The report has been developed through extensive engagement by The Future Governance Forum with stakeholders in local government, combined authorities, think tanks and among national policymakers and practitioners. This has helped to establish a set of recommendations for how Labour should approach devolution in government:
- Hit the ground running, with a clear signal of intent across Whitehall – partnering national, regional and local around missions, building on devolved institutions and partnerships that already exist.
- Develop statutory Local Growth Plans that incorporate industrial strategy, spatial strategy, housing delivery plans, deeper devolution of employment and skills, and public service reform and prevention plans.
- Bake in collaboration between public and private sector, with local anchors and local people, and between every level of government.
- Unlock private investment in cities and regions through creating greater long-term certainty for investors, with an investable pipeline of industrial, infrastructure, net zero and housing projects and pan-regional coordination.
- Agree outcomes frameworks with places that connect local priorities with national missions, so that there is transparency and accountability across the system
- Strengthen MCA and local authority funding – with a Single Local Growth Fund, expanded single settlement, and a multi-year local government settlement.
- Devolve by default and expand devolution beyond current MCAs to functional economic areas. Support the next era of London’s devolution, and align devolved nation city deals with missions.
- Act purposively in the first 100 day to strengthen capacity for mission delivery, to mobilise government and agencies to provide capacity support, and project expertise to mayors and councils, and develop plans for pooled budgets and public service reform in the spending review
By embracing these proposals, Government can kick start growth and deliver on its devolution commitments in its first term, while laying the groundwork for a more lasting shift in power over a second term.
