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Why not a ‘Southern Powerhouse'? John Denham Chair of the Advisory Board

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Presentation on theme: "Why not a ‘Southern Powerhouse'? John Denham Chair of the Advisory Board"— Presentation transcript:

1 WWW.SOUTHERNPOLICYCENTRE.CO.UK

2 Why not a ‘Southern Powerhouse'? John Denham Chair of the Advisory Board denhamj@southernpolicycentre.co.uk

3 Isn’t This Just About the North?

4 The Importance of Cities in Economic Growth Innovation and dynamism in the global economy comes from large metropolitan areas High population density Critical mass of skills Good connectivity Excellence in HE and innovation Local leadership

5 Bringing Local Leadership to Local Challenges

6 Making the Best Use of Public Money Local authority funding fell by 37% over the last four years. NHS spending frozen. More cuts to come. Inefficiencies at the joins between different services.

7 What about Southern England? Source: IFS 2015

8 What about Southern England? (2) Source: Southern Policy Centre Central Southern England: Bournemouth, Bracknell Forest, Dorset, Hampshire, Isle of Wight, Oxfordshire, Poole, Portsmouth, Reading, Slough, Southampton, Swindon, West Berkshire, West Sussex, Wiltshire, Windsor & Maidenhead, Wokingham Number of clients receiving adult social services in Central Southern England, 2009/10 to 2013/14

9 Towards a Southern Powerhouse A large population with the critical mass of skills that attracts investment Good connectivity, so that people can meet and work together Excellence in Higher Education Local leadership capable of pushing through the changes that are needed

10 How Devolution is Being Managed Combined local authorities Simplified decision-making and accountability Elected mayors Deals between the combined authority and the government.

11 What's on Offer? Greater Manchester A consolidated, multi-year transport budget. Responsibility for franchised bus services, railway stations and 'smart ticketing' Skills and training: -Power to restructure Further Education -Control over Apprenticeship Grant for Employers -Influence over the Work Programme Devolved business support budgets

12 What's on Offer? Greater Manchester (2) Statutory spatial strategy. ‘Earnback‘- borrow against future additional increase in business rates base to fund key infrastructure and capital projects. Housing Investment Fund of £300million over 10 years. Integration of health and social care

13 What's on Offer? The Best of the Rest Retention of 100% of business rate growth in Enterprise Areas for reinvestment. Independent borrowing and investment funds to deliver LEP priorities Greater control over the Homes and Communities Agency's investment plans. Power to 'unblock' areas of public land for development Control of central government finance streams to establish training and business support centres tailored to local needs.

14 The Emerging Local Picture ?

15 The Challenge- Travel to Work Areas

16 The Challenge- Housing Market Areas

17 The Challenge- LEPs

18 The Challenge- Local Authorities

19 The Challenge- University Participation Rates

20 The Challenge- Hospital Catchment Areas

21 The Challenge- Some Parts of our Region are Less Strong Economically

22 Let's Be Ambitious

23 Skills – Greater Control over FE and Training Funds for FE (16-19) £ p.a. - based on 2014/15 funding allocations: Funds for FE (19+) £million p.a. - based on 2014/15 funding allocations: Adult Skills Budget 16-18 Apprenticeships Community Learning European Social Fund South East225.185.534.476.4 Central Southern England£707,300,000 Apprenticeship Grant for Employers Scheme (16-24), estimated annual budget based on previous payments made (Feb 2012- Jan 2015) and the Greater Manchester Settlement: Central Southern England£11,520,154

24 Cumulative increase Central Southern England £382,559,970 Re-investment Through Business Rate Retention and ‘Earn Back' Deals Increase in business rate income, £, 2011/12-2015/16:

25 Let's be Ambitious Transport : -smart ticketing, more control over road and rail investment decisions -improve road and rail access to ports and airports, reduce delays and bottlenecks on strategic corridors and improve cross-country routes. - A chance to bid for specific projects (e.g. the Greater Bristol Metro). Planning: - Strategic planning powers - Discretionary 'use it or lose it' powers - Ensure Government plays its part in releasing publically-owned land for development Housing: - Greater control over HCA investment funds - Changes to the Housing Revenue Account borrowing cap to maximise house building potential. Business support. Greater control over support from the Business Growth Service, tailored services and export support. Broadband strategy

26 But Let's be Realistic- This is a Journey

27 What would make most difference to your business? Greater control over skills: - shaping Further Education, Adult Skills Training and Apprenticeships - being at the heart of school – business engagement The power to harness the growth in your area to produce investment funds for infrastructure and business support. Greater influence over strategic transport decisions and funds, both road and rail infrastructure. More power over planning and spatial strategy, with further powers to encourage development. Greater control over housing investment funds, with borrowing powers for future investment. Greater control of business support funds and strategy – tailored the to the needs of local business

28 WWW.SOUTHERNPOLICYCENTRE.CO.UK


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