Devolution, LEPs and today's budget

There are voices questioning the direction of 'devolution' and the role of the Local Enterprise Partnerships:
Futures Forum: Devolution, LEPs and second thoughts >>> "We can’t recommend getting on a bus when we don’t know what the fare is and we don’t know where it’s going."
Futures Forum: "LEP devolution ‘deals’ around the country have been rushed through at such a speed that at the moment there is confusion and even contradicting messages even amongst LEP Board Members."

However, these are few and far between - with the mainstream media across the country happy to extol the virtues of both - now that the Chancellor has delivered:


OSBORNE ADDS FUEL TO MIDLANDS ENGINE

16th Mar 2016 Midlands



The government has reiterated its support for the Midlands Engine in today's Budget announcement, with a string of measures including new enterprise zones, more devolved powers and further funding unveiled.

Osborne adds fuel to Midlands Engine | Insider Media Ltd

This is the response across all regions:
UK Budget 2016: George Osborne must liberate business from red tape if he wants to bolster UK GDP and economic growth | City A.M.
7 reasons Osborne’s Budget was good for business | News | LondonlovesBusiness.com
Budget 2016: A roundup of North East aspirations and predictions | Bdaily
What you need to know about the Greater Lincolnshire devolution deal

However, despite all the 'good news' - and the pressure from central government
Osborne announces plans for devolution creating a Mayor of East Anglia - Haverhill Echo

... there are rumblings - coming from the Local Enterprise Partnerships. For example:
Cambridgeshire rejects ‘Eastern Powerhouse’ devolution deal with Norfolk and Suffolk - News - Wisbech Standard

Here is a critical overview from last week, anticipating today's budget:

Devolution: A state of the nation assessment

For all the focus on Europe, it could be devolution that is the critical constitutional change of our era. Ahead of next week’s Budget, Andrew Walker looks in depth at the prospects for radical change in local government.

The UK is incredibly centralised. Tax set locally is equivalent to 1.7% of GDP (PDF document), out of step with the rest of Western Europe and most comparable OECD countries. At the same time English local government is remarkably constrained in its freedom to make meaningful and strategic decisions in the interests of the people it serves.

This may all be about to change.

In its desire to achieve balanced economic growth the government is about to reform the relationship between the centre and the local, enacting radical change in the structure and function of local government. Councils are to become financially independent with the power to keep and vary business rates, as well as other local taxes, all in a bid to make local government a mechanism that drives growth...

Big challenges stand between here and a devolved local government future, however. Next week’s Budget is sure to provide us with an indication of how this will play out. Will it lead to meaningful change at the local level, and a different relationship between the citizen and the state? Or will it be another instance of central government using councils as a tool to implement their programme of financial reform?

What’s actually going on is simultaneously both a bottom-up and a top-down approach. The government knows what it likes and it knows what it doesn’t. As the negotiation process has extended beyond cities to counties and non-metropolitan areas there are some very clear ideas in Westminster about what these deals should entail. They must be business oriented, with a prominent role for Local Enterprise Partnerships, and there is an enthusiasm for mayors, which seems to be getting stronger with time.

Osborne’s statement on this last point was contradictory, but instructive: ‘I will not impose this model on anyone. But nor will I settle for less.’ It has become apparent is that certain powers will only be granted to areas with an elected mayor, while those without will have to settle for less, the ability to raise business rates to fund infrastructure being one such example.

LGiU long read – Devolution: A state of the nation assessment | LGIU: Local Government Information Unit

Here is Andrew Walker writing yesterday:

Yet the government knows what it likes and it knows what it doesn’t. As the negotiation process has extended beyond cities to counties and non-metropolitan areas there are some very clear ideas in Westminster about what these deals should entail. They must be business oriented, for example, with a prominent role for Local Enterprise Partnerships, and there is an enthusiasm for mayors, which seems to be getting stronger with time.

And now the Cities and Local Government Devolution Act has established a legal framework for devolution. Amendments, written in to the Act late in its passage through Parliament, give wide scope for the Secretary of State to make governance changes to local authorities, including to the constitution and members, as well as the structure, electoral and boundary arrangements.

There are concerns with the process as well. 

As the policy has been driven by individual deals, there is an inherent level of secrecy involved, which has troubled some. Engagement, accountability and scrutiny have all been raised as significant issues. Others worry about an under-the-radar local government restructure, as well as the lack of clarity about what is actually on offer, the divide and rule tactics and the rapid pace of change. The Mayoral model has also been a serious sticking point, particularly in county areas.

However there was also praise for the fact that the government has got the ball rolling. Pragmatic negotiators recognise that current deals could be a stepping-stone to further devolution in the future. 

The Budget will give clues as to how far English devolution marks a radical change for local government : Democratic Audit UK
Tomorrow’s budget critical for role of Local Enterprise Partnerships and democratic deficit | East Devon Watch
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