Transcript The_Devolution_Process

The Devolution Process
Craig Marshall
The Local
Area
Where are we
with devolution
in the South
West?
Context – the changing landscape
Centralism
Big Government
Growing
Declining
Localism
LEPs
Devolution
But it’s not that straightforward
• National body abolition is
not just about “going
local”
• Some things may require
“national leadership”
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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:
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Transport
NHS
Housing
Skills & Employability
Recent announcement of transfer of
Business rates to Local Authorities
Timeline
2015
2020
August Pilots: Manchester, Sheffield, Cornwall
September: Registration of Interest for other areas
December: Response to
registration of interest
2016
Establishment of second wave
Urban/Rural comparisons
Further Decentralisation
2017
Extended powers for successful areas
Evaluation of less successful
Tensions & balances
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
Locally more hands on …
Economy still stuttering
 Very diverse area
Anxiety that cannot afford to
make mistakes with local
economies
More tensions & balances
Local aspiration …
Central Govt control is being
reduced.
Devon & Cornwall cannot
afford to be left out…
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?
Further tensions & balances
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
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
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 6th September
What outputs should we monitor?
Nationally
• On the Economy
• On Whitehall policy
• On Spending
Locally
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On the Economy
On council policy
On infrastructure
On Jobs
On Productivity
On Spending
The Heart of the South West
Perspective
Ed Coley