DEVOLUTION TO LIVERPOOL CITY REGION What Does the Private Sector - PowerPoint PPT Presentation

DEVOLUTION TO LIVERPOOL CITY REGION What Does the Private Sector Think & Want? Professor Michael Parkinson CBE Adviser to Vice Chancellor Liverpool & Sefton Chamber Commerce, January 2015

7 Questions 1. Why does governance matter to economy? 2. How did we get to here? 3. What does Government want? 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 • 19 th century government, 20 th century boundaries to run 21 st 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 also 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 • PM, Chancellor, DPM, Minister Cities support agenda - Northern Powerhouse, HS3, Northern Futures Summit • Now devolution powers & elected metro mayors • But so far decentralisation not fiscal devolution.

3. What Does Government Want? • Mixed motives & messages, moving target • Willing decentralise key powers, resources • But places must make offer - Government decides • It wants changes governance – more leadership, accountability , capacity, delivery • Chancellor wants elected city regional Mayors • Alleged to deliver better leadership, visibility , accountability, economic performance • Probably condition of maximum devolution

4. Successful City Regions – What Barriers? Politics turf 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 devolution Negotiating 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 Leads Power Ask Yes Power Ask Yes    Fiscal Devolution - Infrastructure   Innovation, R&D - - Transport   Public land Housing - -   Business Support   Skills   Employability 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 Governance Leeds Asks some fiscal C A extended powers devolution. ‘West Yorkshire Act’ Housing/Transport/ Business Support Sheffield Asks some fiscal CA now. May consider devolution. other options – ‘specific ‘Projects’ in themes to Sheffield’ Housing/Transport/Skills • Leeds & Sheffield - ahead us in government's plans • Liverpool – starting discussions, letter to Chancellor

6. What Liverpool City Region Want Now? Within Theme Now 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 Might Want Future? Theme Public Sector Transformation Planning Education and schools Policing Fire and Rescue services Recycling and Waste services Starting of a ‘negotiation’

7. What Does Private Sector 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?