Levelling Up devolution backed but leaders fear funding shortfall

Plans to devolve even more power from Whitehall received a thumbs up from regional leaders in Yorkshire, but they warned that not enough cash is being allocated to make such changes fully effective.

The comments followed the release of the Government’s Levelling Up White Paper, designed to combat economic disparities between different parts of the UK.

As part of the Levelling Up plan, nine areas will be invited to agree to new county deals to extend devolution and become Mayoral Combined Authorities (MCA). These include Hull & East Yorkshire and the deal could unlock a multi-million pound strategic investment in the region.

Henri Murison, director of the Northern Powerhouse Partnership, welcomed the move, commenting: “The good news is that, after a few years in the wilderness, it looks like devolution is back on the agenda.”

West Yorkshire Mayor Tracy Brabin said she was “pleased with some of it”, highlighting the commitment to expand mayoral powers, albeit through negotiations with “trailblazers” Andy Burnham and Andy Street.

She said: “The expansion of devolution to bring power to local people is the way forward. A deepening of the mayor’s powers is also good, and is what we were looking forward to.”

But Brabin was underenthused by the white paper’s ideas, especially in light of the Government’s Integrated Rail Plan which derailed the North’s connectivity ambitions.

“Half of these policies are Gordon Brown’s, the other half are Theresa May’s,” she said.

“Eight of those points reflect the industrial strategy, so it looks like a bit of a cut and paste job. But I’m not complaining because they’re going in the right direction.

“But for example, if there was a Labour government, then Labour have committed to HS2 in full, Northern Powerhouse Rail would stop in Bradford. That’s levelling up right there.”

The leaders of East Riding of Yorkshire Council and Hull City Council, Cllr Jonathan Owen and Cllr Daren Hale, were optimistic about more powers being held locally.

Cllr Owen said: “This could enable us to realise significant benefits for our residents, our businesses and our wider economy.

“Key themes and priorities have been identified to enable growth opportunities and benefits to a larger geographic area. We look forward to working alongside the Government and our neighbouring authority to support future investment opportunities in East Yorkshire.”

Cllr Hale added: “We have been pressing for local devolution for a number of years.

“Our proposal is not for a Mayoral deal, because our area is too small, but for a strong Combined Authority chaired by one of the council leaders on a rotating basis.

“Focusing on the key themes of connectivity, productivity, inclusivity and sustainability, we now look forward to progressing our discussions with government over the coming months.”

Murison said he supported the White Paper’s proposals for “Innovation Accelerators”, which will see local businesses and researchers backed by £100m of funding to drive growth and take inspiration from MIT in Boston and Stanford-Silicon Valley models.

He said these accelerators will play a crucial role in breathing new life into manufacturing, while growing the region’s existing strengths in health innovation.

Dan Jarvis

But he warned much of the impact of Levelling Up would be undermined through lack of funding, noting: “We remain concerned the north could be at risk of losing up to £300m a year in regional economic development funding post-Brexit.

“Worryingly, we seem to be moving backwards on education, with places such as Bradford, Blackpool, Oldham and Doncaster all at risk of losing out on funding if the budget for Opportunity Areas is not protected.”

Mayor of South Yorkshire, Dan Jarvis, also picked up on funding, commenting that while he was pleased to see moves to create London-style powers across England and to spread R&D and culture spending more evenly, the eight-year time frame to accomplish this was “incremental rather than revolutionary.”

He said: “There is no indication more substantial powers, like greater control over revenue, will be granted. Mayors and Local Authorities will still largely be left to fight each other for funding pots ultimately controlled by Whitehall.

“Above all, the paper is missing the means to achieve the goals it sets out. Its 12 ‘missions’ are great aspirations – but their lion-like ambition is matched with mouse-like resources.

“In practice, cuts to local government funding since 2018 easily outweigh funding in that period from the main levelling up funds – by an average of £50m, across 144 out of 157 local authority areas.

“Without the funding needed for real change, the Government’s promises of levelling up will remain hollow.”

Sir Roger Marsh

Sir Roger Marsh OBE, DL, Chair of the Leeds City Region LEP and of NP11 noted that the “many aspects of the paper are an endorsement and recognition of the success of the partnership we have developed in Leeds City Region.”

He added: “It’s positive that the Government recognises a continuing role for the private sector in local growth, the benefits of retaining the talent that exists on LEP Boards across the country and the need for a strong business voice to further shape the Levelling Up agenda.”

Martin Hathaway

Martin Hathaway, managing director of the Mid Yorkshire Chamber of Commerce, supported the White Paper’s content, saying he was “thrilled” to see Local Skills Improvement Plans (LSIPs) forming part of the strategy.

He said the White Paper must be turned into “real funding and local decision making” rather than just words.

“Giving local employer bodies and stakeholders a seat at the table to determine the skills training needed in their areas will enable us to better meet the local labour needs, and ensure appropriate, necessary training is available where it is most needed,” he said.

“The investment to bring local public transport standards closer to those in London is much needed, especially after the downgrading of HS2 and Northern Powerhouse Rail.

“The expansion of the High Streets Task Force’s remit is also a welcome step to help regenerate declining high streets, providing a welcome boost to jobs, footfall and the overall attractiveness of our Northern towns.”