With David Cameron committed to referendums on elected city mayors in 12 English cities should the Conservatives win the election, NLGN argues that a high level suite of powers needs to be devolved in order to incentivise city-regional mayors (characterised in the paper as ‘platinum level’ powers) and similarly a set of further powers (‘gold level’) needs to be granted for all other elected mayors. Both reforms would see mayors receiving additional powers to the ones they currently hold, trailblazing the decentralisation to local government in general.

There are currently 13 elected mayors in England and some have been credited with developing new forms of civic leadership and tackling long-term problems. However, presently only the Mayor of London has wider strategic power over areas such as transport and policing and overall England lacks well-known and influential civic mayors such as Mayor Bloomberg in New York or Pasqual Maragall in Barcelona.

The report argues that strong local leadership and vision is needed to take bold decisions and citizens need to be better engaged in choices about what can be realistically delivered, particularly with constraints on public spending likely in the coming years. It suggests that elected mayors are well placed to execute this function, and their high visibility and public profile can help capture the attention of the media and citizens.

Publishing today’s proposals, co-authors Nirmalee Wanduragala and Nick Hope argue that further incentives are needed to encourage strong civic leadership and to allow mayors to reach their full potential. Among the recommendations are:

Financial

City mayors should be able to balance their budget over a four-year period, allowing them greater financial flexibility to raise and lower Council Tax. They should also be granted the power to introduce a supplementary business rate of up to + or – 4p, with any extra funds raised to be spent on economic development within the city as deemed best by the mayor.

Public Services

Mayors representing a city-region should be given transport powers that mirror more closely those that the Mayor of London currently enjoys, in particular through chairing (or the nomination of chair) of the local transport body.

City-region mayors should also have the power to appoint a new post of City or Area Police Commissioner or have the right to appoint themselves to the role.

City-region mayors should have power to appointment the Chief Executive of the local Primary Care Trust and to nominate one person to sit as a non-executive member on the board of the PCT.

Democracy

City and city-region mayors should be able to appoint the chief executive of their local authority.

City-region mayors should be automatically granted a seat in the second chamber of the Houses of Parliament, to counter current under-representation of regional perspectives.

However, NLGN also argues that candidates for mayoral contests should be chosen using a US-style Primaries system to encourage people from outside of politics to stand and create a “unique mandate”. Primaries could be based on an “open” system where anyone, regardless of party affiliation, could stand as a candidate, but with the final decision left to party members or supporters. In London a primary was held to find the Conservative candidate for the mayoral elections, where Boris Johnson was selected. In Bedford the Conservative Party also selected their Mayoral candidate through an open primary.

The authors justify the radical plan for Open Primaries by arguing that “more people from a wider range of backgrounds should have the opportunity to shape the rules and take part in decision-making at all levels in our country. If we are ever to see a renaissance of civic involvement, we need everyone to have the chance to identify with somebody in a position of power. We need to open up politics the party selection process for mayoral candidates should be extended beyond party members.”

The report authors also point towards mayors providing more visible leadership, citing polling evidence that, after just 12 to 18 months mayors being elected, on average 57% of people could identify their mayor, compared to only 25% who could identify their leader in councils without a mayor. They also argue that having an elected mayor was instrumental in London’s successful bid to secure the 2012 Olympic bid.

Report authors Wanduragala and Hope conclude:

“Mayors, with their local mandate, are well placed to be granted wide-ranging delegated powers to help transform the way communities and citizens are served. They provide clear lines of accountability, demarcated responsibility, and effective leadership so that it is clear to everyone “where the buck stops”. Ministers can be confident that they will not to be held responsible by the electorate or the media for the particular actions of an administration in a locality.”

National rail services are currently managed by the Department for Transport through a series of franchise agreements, which generally last for between seven and ten years. Under the scheme, groups of sub-regional local authorities could be able to trigger a contract refresh or reconsideration if certain local targets or levels of satisfaction with trains’ services are not achieved. This would give a greater voice to local people in areas that suffer delays, poor services, overcrowding or unreasonable fares policies.

The recall would work by giving new powers to sub-regional authorities to demand that the Secretary of State reconsiders the terms of a franchise agreement where it can be shown that train services are not meeting satisfaction levels or responding to local needs. All franchise agreements would have additional clauses inserted allowing for councils to represent the needs of local commuters in this way.

On the Right Track: New models for integrated transport also proposes a range of new powers and initiatives to integrate transport. Measures include a regional ‘Oyster’ system for rail and bus services which would allow sub-regional authorities to offer cheaper and more convenient travel options throughout their region. Such a scheme would also provide a capital pot to allow authorities to invest in better public transport. According to the report, the scheme could raise a floating loan of almost £50m for the Leeds city-region and almost £45m for the Manchester city-region. The scheme could also allow users to register “land miles”, a reward for using public transport.

To help cut congestion and tackle climate change, the report also urges local authorities to offer financial incentives for local residents to reduce their car usage. One suggestion is for councils to offer forms of car insurance that reward drivers who only use their car sparingly, for example to do the weekly shopping. The scheme could benefit drivers who use public transport to go to work or take their children to school rather than using a car.

Author of the report, Nigel Keohane argues that the new transport Secretary of State should make integrated transport a priority:

“Transport affects all aspects of our lives: whether getting to work, travelling to school or college, accessing hospitals or visiting family and friends. At a strategic level, mobility is an enabler for economic growth, social inclusion and will determine the health of our environment.

“However, transport still remains too disjointed – in terms of how we buy tickets, receive information, make connections and exercise our choice of travel. Without new approaches, congestion is likely to stall economic recovery, we will struggle to meet our climate change aspirations and passengers will be left frustrated and unconvinced by what public transport has to offer.”

NLGN is today (Wed) publishing new proposals to accelerate sub-regional economic collaboration across England to help areas weather the economic storm and emerge strong from the downturn.

In a major report to be launched at the LGA conference, NLGN warns that if central government fails to incentivise deeper sub-regional working by putting greater powers “on the table” important opportunities for economic development will be missed. In particular concern is voiced that the city-region forerunners announced at The Budget and the Economic Prosperity Boards (EPBs) currently being legislated for in Parliament will not be granted the powers they need.

Author Nick Hope sets out eight proposals for reform:

1. Accelerated Development Zone (ADZ) status should be made widely available to sub-regions at the earliest opportunity to ensure large infrastructure schemes do not become unviable

2. Sub-regional partnerships should be granted additional latitude for Supplementary Business Rates or Business Rate discounts within their functional economic area to match economic activity
3. Sub-regional partnerships should be able to receive longer-term funding commitments from Government, in turn leveraging benefits from this greater financial certainty
4. A new three year statutory financial balance for local authorities in sub-regional partnerships should be offered in order to expand the policy choices available to them
5. A single capital pot for economic development and regeneration would allow spend to vary between themes and projects in a more responsive way and support a more integrated approach
6. All skills and worklessness commissioning powers should be available to sub-regions at the earliest possible opportunity to help improve educational attainment and tackle unemployment
7. Multi-Area Agreements and sub-regional partnerships should have their cooperative efforts rewarded with a new ability to appeal to the Secretary of State against NDPB and Executive Agency decisions it feels may hamper their strategy
8. The concept of ‘Total Place’ should be extended to incentivise multi-area agreements and sub regions to pool efforts and create new efficiencies across a wider area – the notion of ‘Total MAAs’

In addition to incentivising collaboration with new powers, the report argues that there should be greater support for sub-regional working with:

• The creation of a new ‘sub-regional catalyst fund’, where central government ‘match funds’ the cost of the additional spending and resources needed to establish and strengthen sub-regional partnerships. This money would be paid back by the sub-regional partnership over an agreed period from the efficiency savings that sub-regional collaboration brings.

• Improvements to the interface with Whitehall should be improved, particularly in the current climate, by strengthening the MAA Team to reflect the growing number of sub-regions that are emerging, looking to develop, and wishing to expand their role.
• A more flexible, simpler and inclusive approach from government under the MAA umbrella, so that they cover a far wider variety of partnership arrangements, harnessing the economic potential of a wider spectrum of sub-regions.

Nick Hope urged the Government to be bolder in its approach to sub-regions, arguing:

‘“If Whitehall fails to match the ambition of sub-regions with greater ambition itself very few areas will go down this more formal statutory route.

There is a real opportunity for robust governance arrangements at the sub-regional tier, which provide the leadership and drive for important strategic economic decision-making and interventions to take place, but these collaborative partnerships need new tools and flexibilities if they are to be effective.

Both local and central government need to prioritise economic needs over institutional self-interest or they will fail future generations. It will take more than “business as usual” to deliver the infrastructure and inward investment needed for prosperity.”

Written in conjunction with our MAA Forum, the essay collection brings together some of the leading thinkers from across the country on the sub-regional agenda. The collection argues that collaboration between councils is continuing to go from strength-to strength but, as the policy frontiers are pushed, the debate about the future direction for the sub-regional agenda – or, perhaps more accurately, sub-regional agendas – is heating up.

In his foreword, new Housing Minister Hon John Healey said the essays provided some “sharp perspectives on the debate about further devolution to sub-regions”. In these economic circumstances, he argues that “we need active government and we need flexible government, willing to prioritise economic needs over any dogmatic commitment to old ideas or institutional self-interest”. He defends Regional Development agencies and argues that “We will extend the scope for sub-regions, but we must do so both with local authorities as the base and within a wider regional policy”.

In contrast the Shadow Local Government Minister, Bob Neill MP, adopts a far more critical stance on RDAs but states that a Conservative Government will “give local authorities the power to come together to establish new enterprise partnerships that truly reflect natural economic divisions, and to take over from their RDAs the responsibility for economic development within those areas”. Importantly he suggests that the Conservatives are “certainly open to encouraging building on existing partnership arrangements where appropriate”.

Professor Alan Harding and James Harding, from the Institute of Political and Economic Governance, argue that the repercussions of the Multi-Area Agreement (MAA) experience could be profound, representing “an early step on the road to what might ultimately be a radically different approach to the way central-local government relationships have operated in the past.

Simon Murphy and David Howl, from the Birmingham, Coventry and Black Country City-Region partnership, make the case for Accelerated Development Zones (ADZs). Neil Darwin, from the Regional Cities East partnership, makes a compelling case for a more flexible and inclusive approach to MAAs and sub-regionalism from central government. He warns central government against an exclusive focus on the traditional larger city-region model and calls for greater recognition of diversity and more control for smaller cities in England.

James Flanagan provides reflections from Leeds City Region, one of only two forerunner city-region pilots in the country. John Jory, Chief Executive at Mid Sussex District Council, argues that a business led partnership of public and private organisations working in collaboration that the shared aims and objectives of the sub-region can be delivered. Kieran Curran, form Lancashire County Council, provides an insightful comparison with the United States and the approach the Obama administration is adopting of allowing new ideas to be tested, whilst maintaining partnership between the federal states and Washington.

Nick Hope, editor of the essay collection and NLGN researcher said:

“This essay collection illustrates that there is no shortage of ideas about where the sub-regional agenda should go next. But collaboration across policy strands and administrative boundaries requires a change of mindset and new ways of working in both central and local government.

The key question, whichever political party is in Government, is whether they recognise the wealth of untapped economic potential out there and are willing to provide the leadership in central government to unlock the powers that local authorities need to harness it”.

The report assesses the ‘spatial awareness’ of Whitehall departments and proposes sweeping reforms to the way it operates sub-nationally. Its recommendations include introducing a new “duty to devolve” on central government, reform of Public Service Agreements and departmental Capability Reviews, merging the Audit Commission and National Audit Office into a new single auditor and converting regional Government Offices explicitly into ‘Offices of the Regional Ministers’.

Authored by NLGN Director Chris Leslie and Nick Hope, the report argues that Whitehall departments need to adapt to the challenges of delivering modern public services and should develop a more strategic, less interventionist role. The report also encourages reform of the civil service recruitment process including the establishment of a new National Public Service Fast Stream scheme for graduates and insisting that senior civil servants have some experience of working within local government.

The report maintains that while local authorities are expected to comply with a number of formal duties, central Government should mirror this process by introducing a new “duty to devolve” on Whitehall departments. This duty could become a ‘devolutionary test’ in the parliamentary and legislative process.

It also suggests enhancing the role of Regional Ministers by appointing full time Ministers of State for each region, supported by the adaptation of Government Offices into explicitly ‘Offices of the Regional Ministers’.

In the report, Chris Leslie says:

“We believe that these reforms would build on progress already made and deliver a step-change in the quality of local service delivery. They would strengthen Whitehall’s “spatial awareness”, raise the consciousness of its own limitations, encourage a more cross-cutting approach to policy and increase its understanding of variation between and within regions and localities. Such reforms would better ensure that decision-making is

properly integrated throughout sub-national structures and take place at the most appropriate spatial level. Crucially, they would help transform the way communities and citizens are served.”

The UK facing a major challenge to improve its skills base. In 2006, a Treasury study led by Lord Leitch found that not only does the UK face a greater skills shortage than most EU countries, but that disparities between local areas within the UK are significantly larger than the European average. As part of reforms to skills policy in the UK, the Government will devolve funding and responsibility for 16-19 year olds to local authorities.

Whilst the report welcomes this devolutionary drive and recognises that it represents an important step forwards, it argues that skills provision is still too complex and involves too many sub-national agencies. As part of streamlining this process, both 14-19 FE College commissioning and 16-19 capital funding should be devolved to local authorities.

The report also argues:

It is unreasonable and ineffective to give local authorities new statutory duties to ensure participation up to 19 and to ensure quality of provision and yet to give someone else the funding and powers that will be vital in delivering these statutory duties.

If the Government wants to create a unified, integrated and locally responsive 14-19 education and skills phase then responsibilities should fall to local authorities, rather than some responsibilities falling to local authorities and others being given to new regional skills agencies.

The Government should go further and 19+ skills should also be devolved to local authorities so that the skills system is better joined-up.

The current education and skills system and the model that officials have planned is too crowded and complex and needs to be simplified and streamlined. It seems inconsistent with the broader ambitions stated by Ministers to de-clutter and decentralise the skills system.

Author of the report, Nick Hope, argues:

“Power and funding should be devolved to local authorities to create a more unified, integrated and locally responsive education and skills system that better serve employers and learners. But, the reasons that power should be devolved from the regional tier go far beyond this. At the regional level RDAs already show leadership in careful partnerships with councils. Additional regional bodies would lack the legitimacy and accountability provided by the democratic mandate of local government. This democratic mandate gives local government the authority to take difficult decisions and to take a strong leadership role”.

“A more co-ordinated and joined-up approach, with clear leadership and direction, will facilitate more effective and efficient structures. In addition to better integrating the different elements of the education and skills system, local authorities will be able to adopt a wider strategic approach to policy and delivery. Place-shaping requires local government to take a holistic view”.

“Rather than operating at fixed, artificial and imposed boundaries, local authorities can work together in partnership. This bottom-up approach allows local authorities to be more responsive and adaptable to the geography at which the skills shortages exist and where solutions can be found. The organic formation of collaborative arrangements between local authorities, such as through MAAs, will allow them to integrate their education and skills strategy far better with their economic strategy at the most appropriate spatial level”.

Author Matthew Clifton suggests a new methodology for assessing an area’s economic strengths and weaknesses, which in turn should point leaders and chief executives towards priorities for improvement. The ‘competitive advantage’ of one area can differ markedly from another, so councils need to devise their own distinct strategies for economic success.

Building on real case studies from across the country, Trading Places analyses the fundamental building blocks for new growth and regeneration to occur, focusing in particular on knowledge-based service companies. The report makes over 20 recommendations for both national and local government, including:

• The introduction of tax relief on the cost of moving associated with employment;
  
• Devolution of responsibility for transport;
  
• Devolution of responsibility for both pre and post 19 skills;
  
• A share of income tax as a local government grant;
  
• 4p top rate for Supplementary Business Rates

This report offers a strong rationale for the empowerment of local leadership, and to set out local approaches to achieving the Government’s own target of ensuring that each region performs to its full potential. It finds that, while regional variation should be accounted for, and while baselines aren’t always comparable, there are certain key factors that encourage economic development, particularly the knowledge economy and mobile labour markets. Steps should be taken to stimulate their growth.

The report, which is supported by BT and Yorkshire Forward, argues that if the aspirations of the Treasury and CLG for regional economic convergence are to be realised, they need to be converted into tangible, tailored policies relevant from neighbourhood to neighbourhood. The framework set out in Trading Places will help Leaders and senior officers across our local authorities develop strategies to galvanise and lead economic development.

In the report, The Age of Regions? Rethinking governance in England, NLGN welcomes the positive changes and recommendations in the Sub National Review. Chris Leslie, Director of the NGLN argues that:

“The changes at Whitehall and Parliamentary level are important. But equal and balancing changes are now needed to galvanise local authority leaders into stronger ownership of the regional stage. So as the debate on the Sub National Review continues over the coming months we will be pressing further for:

• the new Commons Regional Committees to co-opt Local Authority Leaders onto their membership – such a hybrid could create the fusion between national and local elected representatives which would revolutionise the way regional decision-making is overseen;
• flexibility for council leaders to determine their own regional forum;
• a statement from each Regional Minister setting out their ambitions and approach to the new role over the next three years; and
• a decision on the budgets that will be devolved to any new sub-regional, city-region or ‘Multi Area Agreement’ groupings, and the explicit criteria required to unlock this devolution.”

Redesigning Regionalism: Leadership and accountability in England’s regions intends to help to move forward the debate about the future of regional economic policy, Regional Assemblies, Government Offices and the role of local government and national representatives in regional governance.

However the process remains controversial, with some local authorities concerned about the organisational impact on services while guidance from central Government on how to effectively implement shared services remains sparse.

The Politics of Shared Services puts forward a new agenda for harnessing the opportunity for shared services. It looks at the political, economic and social impact of merging services and offers recommendations on how stakeholders in local and central Government and the private sector can work together more effectively to deliver high-quality, efficient services.

In an environment of tough efficiency requirements for local authorities, the report offers greater clarity around the goals and challenges of shared services that will allow the agenda to develop faster and more effectively.