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: •19th century government, 20th century boundaries to run 21st 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 (10 + 1 model in Gt. Mcr.)•Metro-Mayor – gets most devolutionNegotiating 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 LeadsPower Ask Yes Power Ask Yes

Fiscal Devolution - Infrastructure Innovation, R&D - - Transport Housing Public land -  -Skills Business Support Employability Health -

Governance:• CA some powers now• Appointed Mayor (10 + 1 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

Place Powers GovernanceLeeds Asks some fiscal

devolution. Housing/Transport/Business Support

C A extended powers ‘West Yorkshire Act’

Sheffield Asks some fiscal devolution. ‘Projects’ in themesHousing/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 NowWithin 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?