Devolution to mayors could be a double-edged sword for Midlands Engine
TheBusinessDesk.com and EY have produced a Midlands Engine report, assessing the challenges and opportunities facing the region as it looks to maximise the positive impact of devolution. Read the full report here.
AMERICAN politician Henry Kissinger famously once said “Who do I call if I want to call Europe?”.
No matter that there is no evidence that he ever actually uttered the phrase, the point remained – who could America’s leaders speak to when they wanted to resolve an issue that affected Europe.
The UK’s cities and regions must also answer that question, for the calls that are wanting to be made in Westminster and Whitehall and by potential investors from around the world. It is particularly pressing in those areas which don’t overlap with the boundaries of the elected mayors who will be dotted across the North and Midlands from next May.
It is a question that Manchester has long had a clear answer to. Sir Howard Bernstein became Manchester City Council’s chief executive in 1998 and formed a partnership with Sir Richard Leese, who by that stage had been the political leader of the council for two years. Over the last two decades the duo have become the envy of just about every other regional city in the country, who have longed for the united front and success they have delivered.
“There is a go-to person in Manchester,” said EY’s chief economist Mark Gregory. “If business have a problem in Manchester they will go and see Howard.
“He generally will fix it and that really is appreciated. I would say, differentiate Manchester from the Northern Powerhouse, that there is definitely something there.”
The West Midlands will soon have their own “go-to person”, with the Labour politician Sion Simon and former John Lewis managing director and Conservative candidate Andy Street expected to be the frontrunners in next May’s election. But that adds more confusion rather than less when it comes to the Midlands Engine.
“If we take the West Midlands Combined Authority, it will be owned by the mayor,” said Nachural Group chief executive Ninder Johal. “Who will own Midlands Engine, who’s the person you go to? Otherwise it will just be a concept that no-one can actually grab at it.”
Paul Brown, EY’s government and public sector director in the Midlands, said: “The West Midlands Combined Authority is likely to take priority over the Midlands Engine going forward. It is possible that the broader Midlands Engine may serve as a distraction to devolution in the West Midlands. Ideally you manage both going forward.”
He added: “The West Midlands will have its own challenges with the introduction of a mayor as part of devolution, but it also has a pivotal role with the all-important challenge of the Midlands Engine. It is in the interest of the Combined Authority to make the whole Midlands region work.
“Eventually you might start seeing some additional devolution deals come along to the East Midlands, when perhaps the local authorities do find common ground to work together on.. But as it stands it is likely that there will more focus on the West Midlands because of the implementation of the devolution deal and introduction of a mayor whereas there will not be a mayor, as things stand, in the East Midlands. I think this could be the issue – you could possibly see some tension of one versus the other still.”
