DEVOLUTION TO LIVERPOOL CITY REGION What Does the Private Sector Think & Want? Professor Michael Parkinson CBE LEP Consultation

7 Questions 1.Why does governance matter to economy? 2.How did we get to here? 3.What is Government’s devolution offer to city regions? 4.Successful city regions - what barriers, what works? 5.What have other city regions done? 6.What has Liverpool City Region asked for? 7.What do you think - and want?

1. Why Does Governance Matter? Governance affects economic performance UK has: 19 th century government, 20 th century boundaries to run 21 st century economy UK, following Europe, needs: Decentralise decisions, deconcentrate investment Economic not administrative boundaries Territorial governance at scale Powerful city regions: responsibilities, powers, resources Successful urban & national economy

2. How Did We Get to Here? Moment maximum opportunity – but risk LCR Moving from most centralised state Europe Localism, rebalancing economy, LEPs, elected City Mayors, City Deals, Combined Authorities, RGF, Local Growth Deals Many want more devo – CLG Select Committee, RSA, Second Tier Cities, Heseltine, Adonis, Centre Cities, IPPR North Scotland – & UKIP - let Genie out of bottle Chancellor, DPM, Minister Cities now support - Northern Powerhouse, HS3, Northern Futures Summit Now devolution powers & elected metro mayors But so far decentralisation not fiscal devolution

3. What Government Offer? Mixed motives & messages, moving target Willing decentralise key powers, resources But places must offer Government decides who It wants changes governance – more leadership, accountability, capacity, delivery, Chancellor wants elected city region Mayors Alleged to deliver better leadership, visibility, accountability, economic performance Probably a condition maximum devolution

4. Successful City Regions – What Barriers? Politics of turf is the most difficult Lack of vision Institutional fragmentation Historic tensions Personal rivalries Place rivalries Party rivalries Economic rivalries Complacency Overlapping strategies

4. Successful City Regions – What Works? It’s the politics stupid! Leadership style Political maturity – big not bully Trust – smaller not exploited Time Common projects Right machinery National encouragement & incentives

5. What Others Doing? Options being considered Combined Authority only – gets least devolution Elected Authority ‘Leader of Leaders’ model ( model in Gt. Mcr.) Metro-Mayor – gets most devolution Negotiating with Government What they want & what can be devolved Which model obtains what powers When can it happen, what needed make happen What checks & balances

5. What Others Doing? Greater Manchester Leads PowerAskYesPowerAskYes Fiscal Devolution  - Infrastructure  Innovation, R&D -- Transport  Housing  Public land - - Skills  Business Support  Employability  Health -  Governance: CA some powers now Appointed Mayor ( model) more powers Elected Mayor only after legislation, ‘Devo-Manc’ 2017 Mayor gets extra housing, transport, planning, police Lots checks & balances (CA can veto Mayor)

5. What Others Doing? Leeds, Sheffield, Liverpool PlacePowersGovernance LeedsAsks some fiscal devolution. Housing/Transport/ Business Support C A extended powers ‘West Yorkshire Act’ SheffieldAsks some fiscal devolution. ‘Projects’ in themes Housing/Transport/Skills CA now. May consider other options – ‘specific to Sheffield’ Leeds & Sheffield - ahead us in government's plans Liverpool – starting discussions, letter to Chancellor

Theme Now Within 5yrs Skills  Employability Support  Housing  Transfer of ownership of public land  Business Support  Innovation, Research and Development  Infrastructure  Transport  Fiscal Devolution  6. What Liverpool City Region Want Now?

Theme Public Sector Transformation Planning Education and schools Policing Fire and Rescue services Recycling and Waste services 6. What Liverpool City Region Might Want Future? Start of a ‘negotiation’

7. What Do You Think &Want? Which key sectors & drivers LCR economy? What control sectors you want devolved? What model governance you want? What trade offs willing make get them? $64,000 question - what view elected Mayor city region?