1. The Journey of the UK Nations Dr Jonathan Huish CPFA
Devolution & Reform
The Journey of the UK Nations
Dr Jonathan Huish CPFA

2. UK & Centralisation – the Twentieth Century to the Present Day
UK has traditionally has highreally centralisation since 1945
All spend controlled by Central Government
Only a small percentage of taxation is raised locally
1980s - Thatcherism developed privatisation
New Labour developed new public management
Coalition Government attempted Big Society as a new model of delivery

3. Public Sector Reform - Now
Many challenges – austerity, demographic needs, and global economic competition
Increasing interdependency of economy, health and our environment
Requires innovation and integration across agencies that is sustainable over the long term
Attempted incentives to join up in the Work Programme have led to "post-marketism" devolution

4. Localism & The Desire for Local Choice
The drive for localism aims to reconnect Government with local people
Localism is gaining in democratic legitimacy – eg the Referendum in Scotland for Independence
In England, there are calls to rebalance the regions in terms of policy and funding – City Deals
In Wales, the call for more Power for the Assembly
Austerity has helped win over HMT

5. An Emerging Framework of Localism & Devolution?
George Osborne announced the Greater Manchester Deal & Northern Powerhouse
2015 post election - Cities & Local Government Bill with locality based bids across area & organisations
This requires a revised governance framework
Government establishes a strategic framework, allowing a local response to allocate resource to achieve the ambitions
Assymmetry – the tailoring of structures and processes to varying local need producing a range of models

6. Devolution – An Opportunity
“Devolution offers the opportunity to bring public services together across organisational boundaries, and in a way which better meets the needs of local areas.
It offers the chance to direct public funds in a bespoke way which suits local circumstances.
The devolution of funds needs to be as flexible as possible in order to allow local prioritisation.
The biggest prize must be greater local fiscal flexibility. Devolution of fiscal powers must surely follow.
We need to go further – and return to local government the powers to set tax levels in a responsible way which responds to the needs and wishes of their community”
Alan Hay, Deputy CE, Leeds City Council

7. The Manchester Deal Greater Manchester Combined Authority
Initial approval Nov 2014, extensions in 2015
Consolidated transport budget; responsibility for franchised bus services; integrated smart ticketing
Strategic Planning Powers
Control of a new £300m Housing Investment Fund
The Mayor takes on the role of Police & Crime Commissioner
Responsibility for devolved business support budgets
Integration plan for health & social care across GMCA and Manchester CCGs
Pilot scheme in Greater Manchester & Cheshire East for 100% retention of any additional business rate growth
The development of a new Community Infrastructure Levy and Land Programme

8. Other Deals Cornwall & Isles of Scilly (July 2015)
Liverpool City Region (Nov 2015)
North East Combined Authority (Oct 2015)
Sheffield City Region (Dec 2014 & Oct 2015)
Tees Valley (Oct 2015)
West Midland Combined Authority (Nov 2015)

9. Devolution in Wales & The Welsh Assembly
The national referendum of 1997 gave a narrow majority for Devolution
National Assembly established in 1999 – majority of powers of the Secretary of State for Wales, with a number of powers reserved for Westminster
2006 Government of Wales Act - creates an executive separate to legislature, and gave legislative competence in 20 Fields & Measures

10. Public Sector Reform in Wales
Local Government reorganisation in 1995 saw the creation of 22 Unitary Authorities.
2003 saw the establishment of 22 Local Health Boards , which in 2009 were subsumed into 7 geographically based Health Trusts
In common framework for the delivery of public services was established, known as the Regional Collaborative Footprint

11. The Silk Commission, 2011
Reviewed the case for increasing powers of the Assembly, and for devolution of fiscal powers
Wales Act (2014) – increased fiscal power and provision for referendum of devolution of income tax
Part II, Mar 2014 – 61 recommendations, including more members and a ‘reserved powers’ model
Majority of recommendations built into St David’s Day Agreement (2015), but deferred to next Government
Wiliams Commission (2014) – reduce to Councils through merger
2015 – Leighton Andrews suggests 8-9 Councils

12. The Scottish Parliament
The Scottish Referendum (1997) asked 2 questions – should there be a Scottish Parliament, and should it have tax varying powers – a resounding yes to both
The Scotland Act 1998 established a devolved Scottish Parliament and Executive using the ‘reserved powers’ model
September 2014 Independence Referendum – a No vote, but increased powers agreed by parties
Smith Commission 2015 – recommends more fiscal devolution and powers
2015 elections – SNP calls for more devolved powers

13. Northern Ireland Home Rule & The Troubles
Home Rule came into effect in Northern Ireland in 1921 establishing The Parliament of Northern Ireland
Onset of ‘The Troubles’
The Northern Ireland Constitution Act (1973) established the Northern Ireland Assembly, and a power sharing Executive was formed in Jan collapsed in May 1974
Ceasefires led to the Good Friday Agreement in 1998 and the creation of a new Northern Ireland Assembly
Assembly suspended in 2002 with breakdown of Peace process
St Andrews Agreement – a routemap to restore devolution, Assembly restored with new Power Sharing Executive

14. Comparisons……
Different models of governance emerging between the 4 nations of the UK and within England
Divergence of models of improvement – service regulation, economic regulation, inspection, peer support, "atomisation", marketisation
For English regions functional management not yet matched by policy and fiscal devolution
Health & social integration is markedly different
Reorganizing local government has been an aim outside England, but combined authorities may achieve this.