The Devolution Process Craig Marshall

The Local Area Where are we with devolution in the South West?

Context – the changing landscape Centralism Big Government Localism LEPs Devolution Declining Growing

But it’s not that straightforward National body abolition is not just about “going local” Some things may require “national leadership” –Key Sectors –Innovation –Trade –Structural investment Skills Training?

So – what do we know? –Cornwall has secured it’s Cornwall Deal –Focus is on bus services and local investment, while health and social services will integrate –HOSW LEP (Somerset, Devon, Torbay and Plymouth + 10 District Councils) have submitted an initial outline proposal to Govt. for a devolution deal with Skills at the heart of it.

So – what else do we know? Devolution Governance –Local Authority Groupings –A lot of different interested parties –Requires a mayor –But is some scope for local variations

Do we know any more? Size and Coverage –Generally – more than one upper tier authority –Generally – linked to functional economic areas –Generally – city focused, but rural focus acceptable

What do we know about the money? FUNDING –Is at the heart of it: No core funding Access into funding pots –Manchester possibilities already announced: Transport NHS Housing Skills & Employability Recent announcement of transfer of Business rates to Local Authorities

Timeline August Pilots: Manchester, Sheffield, Cornwall September: Registration of Interest for other areas December: Response to registration of interest Establishment of second wave Urban/Rural comparisons Further Decentralisation Evaluation of less successful Extended powers for successful areas

Tensions & balances Locally more hands on … Economy still stuttering  Very diverse area  Anxiety that cannot afford to make mistakes with local economies Nationally more hands off … Devolution, Localism, LEPs,  Leave it to local structures i.e. businesses and Local Authorities to decide whether they want more powers and which ones

More tensions & balances National realities … Lot of political pressure  A good bit of the funding will be clawed back by HMT … … and some delegated powers may not sit well with very local delivery: Nuclear, Railways, NHS, Education? Local aspiration … Central Govt control is being reduced.  Devon & Cornwall cannot afford to be left out…

Further tensions & balances Functional economic areas … Big variations across the region  Cornwall has tighter economic goals, tourism, agriculture,  HOSW is far more diverse  Urban centres make the issue more complex  Productivity varies massively  Hard to prioritise Administrative boundaries … Local authority boundaries already exist and there are clear tensions between them  HOSW LEP was not created along local authority boundaries  Local Authorities have been greatly reduced in last Parliament

So why is it important to Training Providers? Manchester is aspiring to gain complete control over parts of the Skills budget This can include identifying what qualifications are to be funded Can include setting funding rates Cornwall already discussing using their Employment and Skills Board as a commissioning body HOSW is prioritising Skills

Business Fears Could be a “lose-lose” for businesses National taxes buy a lower standard of service. Skills and Innovation become a direct cost to businesses. Business Rates (from the private sector) are retained locally but used to prop-up welfare and social services with no reinvestment in support of the local economy. DCBC 6 th September

What outputs should we monitor? On the Economy On Whitehall policy On Spending Nationally On the Economy On council policy On infrastructure On Jobs On Productivity On Spending Locally

The Heart of the South West Perspective Ed Coley