Localism, devolution and structures Rupert Waters & Helen Lawton Smith Presentation at CIMR workshop Innovation and the UK’s Industrial Strategy: How did we get here and where are we going? Friday 23 March 2018 Focus on skills for innovation

Agenda Understanding the geography of local economic development How policy changes as structures change While these are inter-linked, one gets ahead of the other at different times Consequence – different geographies are appearing in relation to how the industrial strategy operates in practice e.g. Combined authorities were set up in the 2009 Act, Leps 2010 after the abolition of the RDAs, changed role for the private sector after the introduction of the LEPs, whereby objective of equal weight of public and private sectors – in the Heseltine review – no stone unturned Leps in charge Industrial strategy – about place – section on place in White paper but also complication of sector – pushing key sectors and top performers, but spatially about rebalancing – closing the gap – no special money to Oxfordshire – except for housing deal – 21 march 2018 - £125m, WE and manchester also get the money The green paper had much more on politics and institutions of places but the while paper is much clearer on city deals, growth deals and devolution deals – local growth funding

Industrial Strategy “Simply put, there is considerable potential for cities, towns and areas whose performance has been lagging to close the gap – to catch up. Green Paper, January 2017 “Since 2010, City, Growth and Devolution Deals have shifted power and funding to local areas to enable them to take strategic decisions about local priorities ... more powers to create the right conditions for prosperity. White Paper, November 2017 Since then city deals – at the same time – has meant that some leps have been on the wane – but ones with cities at their heart have done OK as cities have become in greater prominence – and with increased emphasis of Mayors as main point of contact – council leaders not acceptable to sec of state. Devolution deals – extra money and extras powers. Leps less prominence in budget Coventry WMCA – includes coventry LEP but not Warwickshire – West of England LEP combined authority is not the same as the LEP so different geographies are appearing

Localism “We’re making progress on our plans to deliver the Cambridge-Milton Keynes-Oxford Corridor. We’re devolving powers and budgets to elected mayors across the Northern Powerhouse and Midlands Engine. We’re in negotiations for city deals with Stirling and Clackmannanshire, Tay Cities, Borderlands, North Wales, Mid Wales, and Belfast. And today we invite proposals from cities across England for the £840 million fund I announced at the Budget to deliver on their local transport priorities”. Philip Hammond, Spring Statement, 13 March 2018 NIC – National Investment Commission - Adonis O2C Arc, same level of priority as Northern Powerhouse and Midlands engine. But Cambrdige LEP - no oversight and money not well spent

LEPs and the localism landscape LEPs are part of a diverse array of bodies in local government, in which relations and responsibilities can at times be complex and lacking in clarity. LEPs sit alongside various other local bodies whose constitution and powers have also changed since LEPs were created. Public Accounts Committee (para 20, 2018) Governance and departmental oversight of the Greater Cambridge Greater Peterborough Local Enterprise Partnership

Combined Authorities as FEAs “Combined authority boundaries may not cross those of district or unitary authorities. However, they can cross county council boundaries. This allows combined authority boundaries to reflect ‘functional economic areas’, meaning that they are not bound by traditional local government geographies. ”. House of Commons Briefing Paper, Combined Authorities, 4 July 2017

West Midlands Combined Authority WMCA is based on the functioning economic geography of three LEP areas: Greater Birmingham & Solihull; Black Country and Coventry & Warwickshire. The seven metropolitan authorities of Birmingham, Coventry, Dudley, Sandwell, Solihull, Walsall and Wolverhampton have established a West Midlands Combined Authority, working alongside the Local Enterprise Partnerships of the Black Country, Greater Birmingham & Solihull and Coventry & Warwickshire and other Local Authorities. Nuneaton & Bedworth Borough Council is a non-constituent member, whilst Warwickshire County Council, North Warwickshire Borough Council, Rugby Borough Council, and Stratford-on-Avon District Council act as observers, with a view to joining as members in the future.

Combined Authorities % of England 27.6: Population 26.2: Employee jobs 22.3: GVA Map shows that the highlighted areas have ¼ jobs, 1/5th of GVA are generated by these areas but the amount of money that they get from the government is out of all proportion to these numbers.

Size of Combined Authorities Sources: MYPE, ONS, 2017; Regional Accounts, 2017 & 2018, BRES, ONS, 2017

Combined Authorities’ Funding Massive amount of money gone into Manchester – city deals, - and local growth funding but WM high on other counts Also complication of devotion deals – difficult to quantify as it opens up other sources of funding. Also issue of whether regions can keep local business rates.

Closing remarks Governance determines support Inconsistency of functional economic areas between LEPs and Combined Authorities Rebalancing remains predominant spatial policy agenda