As parliament returns after the local elections, the term “levelling up” has re-emerged.
Levelling up is political shorthand for rebalancing the economy and improving opportunities for people. While there is a wider debate to be had about social mobility, for example through education, I want to focus on practical changes which could unleash local economic development.
The economy of England has been geographically imbalanced for much of the past century. Economically, all roads have led to London and, in turn, London and its environs have become hugely successful, not just on a national or European level, but globally.
Some of this imbalance has been reduced in the past 10 to 15 years, as a handful of cities outside the South East have successfully taken new powers and resources to revive their prospects and attract international investment. However, this rebalancing has been patchy. It needs to spread further and be visible to more local businesses and communities. So what lessons can be learnt from the more successful areas?
Lessons for success
First, people need to be able to identify with their area. Current local authority boundaries don’t always reflect what people see as their area or community. Thus, new “city regions” (based on travel-to-work times) often better reflect where people identify with.
Second, the successful areas have brought all local agencies together and developed holistic plans which encompass spatial planning and transport; which link local labour needs to skills and training provision; and which understands the role of research and innovation in enterprising economies.
Third, successful areas have strong local civic leadership. Effective civic leadership cuts across silo thinking, focuses on outcomes and, in turn, attracts more investment. Sir Howard Bernstein in Manchester is one past example of a strong civic leader, Andy Street in the West Midlands is a current one. They are people who have a clear plan and the skills to make it happen.
What next?
How to proceed? The government has wisely asked MP Neil O’Brien to advise it on how to progress this agenda. He has good instincts and a sharp mind. He knows that getting this policy right is essential for the government’s future – and for the economic success of the whole country. So, what needs to change?
First be bold and embrace what works – metropolitan combined authorities. This means winding down local enterprise partnerships and extending this approach to every English city region and unitary area. Consult on how to deliver a similar deal in two-tier counties, but the key principle is that in return for more powers and resources there must be someone who is directly elected and so accountable to local people.
Second, be prepared to transfer from Whitehall all the relevant powers and existing grant funds for spatial planning, transport, skills and training. Overhaul how research and innovation is delivered locally, within a national R&D strategy.
Third, accountability must be through a directly elected mayor or equivalent. However, to strengthen oversight and scrutiny, overhaul existing regional statistics and focus on how each area is progressing in increasing its gross value added.
Finally, we need to invest in strengthening civic leadership. Mayors need training, coaching and mentoring to ensure they have the executive skills they need. Improving the quality of local civic leadership is just as important as investing in infrastructure, possibly more so.
Together these changes will create the means for local businesses and communities to unleash local growth, through a powerful, well-led local agency, accountable to the community it serves.
Mark Prisk is a former housing and construction minister and MP
