A new report from The Future Governance Forum think tank in partnership with Metro Dynamics sets out the challenges the new government has to overcome in order to deliver on its manifesto commitments, while managing the financial and structural legacy they inherited.
‘Impactful Devolution: A new framework for inclusive local growth and national renewal’ includes recommendations necessary to deliver Labour’s growth mission and calls on the government to:
- Give mayoral combined authorities stronger funding and investment powers to drive local growth
- Take an active state approach to national and local growth
- Establish a Mission Council with metro mayors, councils, businesses and civil society advising Government on mission delivery outside SW1
- Align City Deals in the devolved nations with its new mission-driven approach
- Hand Job Centres to local councils
- Consolidate disparate funding streams into a single pot for every Combined Authority
- End the ‘begging bowl culture’ of competitive bidding
- Stop the hand-to-mouth one year financial settlements for local government
- Support the next era of economic devolution in London.
The report believes by embracing the proposals set out, Labour can get the economy growing and deliver on its devolution commitments in its first term, while laying the groundwork for a more last shift of power over a second.
Ben Lucas, Founding Director of Metro Dynamics and report lead author, said: “Devolution is at the heart of national renewal. The government has made a strong start: meeting with the mayors to discuss Local Growth Plans; devolution in the King’s Speech; inviting non devolution areas to come up with their own plans; and pledging to devolve Employment Support. These early steps must be underpinned by long term system change to shift resources, capacity and powers to Britain’s regions and localities.
“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 foundations of devolution need to be strengthened, with greater capacity for mission delivery, and for developing the housing and infrastructure projects that can unlock substantial private investment. We also recommend broadening the remit of devolution to extend to public service reform, with the development of local prevention plans linked to Total Place 2.0 funding. The funding base for Combined Authorities and Councils needs to be strengthened with single department style funding for each Mayoral area, and multi-year funding settlements for all Councils.”
Nathan Yeowell, Director of The Future Governance Forum, said: “Closing the gap between London and the rest of the UK is critical. As we argue in the report, this can only be achieved through a robust partnership across sectors and across tiers of government, and a rewired local government funding system. Both central and local government are facing significant constraints. Unless, as promised, Labour frees up local authorities and devolves key powers to them then there is a very real danger that any drive for growth will come to a halt before it starts.”
“The introduction of the English Devolution Bill in last week’s King’s Speech is a promising start. The challenge will be to maintain this momentum through its first term, while laying the groundwork for a more lasting shift of power in a second.”
