How will the government's "city deals" work?

A tale of eight cities.

The Government’s announcement about "City Deals" has thrown open debate about the balance of power between central, regional and local government. Nick Clegg and Greg Clark have signalled that these "ground breaking deals represent a dramatic power shift, freeing cities from Whitehall control". 

The Coalition has set out a challenge for eight of England’s cities – if they can deliver more effective and accountable local government, then central government will transfer more powers and provide incentives for cities to apply their own solutions. Cities are keen to be in control of their own growth agendas and these deals represent the government’s biggest commitment yet to fulfilling its localism policy.

The proposals put forward by the eight cities show interesting differences in definition and priority. Alongside the areas you’d expect cities to focus on, such as housing and regeneration of specific districts, several cities propose focusing on areas such as physical and virtual connectivity, with powers on transport and superfast broadband. Birmingham has identified life sciences as a potential and exciting growth opportunity. 

The role of the private sector also varies from city to city. For example, Birmingham’s Local Education Partnership (LEP) looks set to play a significant role. In Liverpool, the city has looked at the transition from Council leader to mayor and how this can effectively engage the private sector. There are a number of major corporate players involved in the development of Liverpool’s future and, if successful, this could become a model for other locations. 

Each city has defined the geographical boundary between the city and surrounding region differently.  Manchester, Leeds and Bristol have taken the most regional strategies, with Greater Manchester in particular having the benefit of building on a number of years of collaborative working with different agencies and groups within the area.  Bristol’s deal also establishes "enterprise areas" outside the city boundaries and areas such as Bath, where full retention of business rate growth will apply. 

There is also considerable variation in how the low carbon agenda is incorporated. Six cities refer to it, with Manchester, Liverpool, Birmingham and Newcastle placing it prominently in their proposals.

These variations will help trial different models for devolving authority to regional, city and local authorities and it will be interesting to see how they progress. 

Despite the variations in approach, there are two factors which will shape the practical and commercial success of these schemes. For the City Deals policy to be transformative, the detailed powers transferred must be embedded in a robust governance framework, underpinned by access to sustainable finance for investment in projects.  These two key pillars are critical determinants of success or failure. 

As well as providing governance, the city authority should be a catalyst for change and provide for an effective working relationship between local and national government, business and communities. It needs to allow the clear space to be created where trust can be nurtured and the alignment of objectives achieved.

Delivery should be at arms' length from policy, so cities will need robust region-wide economic and financial assessment frameworks to appraise and prioritise projects.

Considering both governance and financing frameworks, Manchester's deal is particularly distinctive. Founded on the long-established governance framework of AGMA (Association of Greater Manchester Authorities) its 'earn-back model' aligns investment resources and economic development returns for reinvestment in strategic priorities. The model allows retention of additional business rates over and above that allowed by the forthcoming reform of local government finance, benefiting the city region to the tune of £30m per year. Not that substantial in isolation, but bigger ambitions underpin this and, used effectively as enabling finance, this could unlock substantially more private investment.

The "earn-back model" could offer a genuinely sustainable source of finance through which Greater Manchester is rewarded for good investment decisions made locally. Being region wide and non-sector specific, it is broader in scope and potential than those funding elements more narrowly defined and tied to specific spatial (enterprise zones) or economic policy areas such as skills or apprenticeships, and to that end it marks a more substantive devolution of powers and resource.

UK cities are at the beginning of the journey towards devolution and there is potential for significant change.  Could cities take a share of local collected corporation tax or secure powers to vary national policy in other areas of the public sector? This is an exciting opportunity, but to capitalise on it cities need to think, plan and govern differently and, for the long term, sustainability and flexibility needs to be built in at the outset.

Philip Woolley is a partner in Grant Thornton’s Government & Infrastructure Advisory team.

The city deals will

Philip Woolley is a partner in Grant Thornton’s Government & Infrastructure Advisory team.

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19 things wrong with Daniel Hannan’s tweet about the women’s march

The crackpot and these women.

Since Daniel Hannan, a formerly obscure MEP, has emerged as the anointed intellectual of the Brexit elite, The Staggers is charting his ascendancy...

State of this:

I mean honestly, where do you even begin? Even by Daniel’s rarefied standards of idiocy, this is a stonker. How is it stupid? Let me count the ways.

1. “Our female head of government” implies the existence of “their female head of government”. Which is odd, because the tweet is clearly aimed at Hillary Clinton, who isn’t anybody’s head of government.

Way to kick someone when they’re down, Dan. What next? “So pleased that my daughter received a wide selection of Christmas presents, unlike those of certain families”?

2. I dunno, I’m no expert, but it’s just possible that there are reasons why so few women make it to the top of politics which don’t have anything to do with how marvellous Britain is.

3. Hillary Clinton was not “the last guy’s wife”. You can tell this, because she was not married to Barack Obama, whose wife is called Michelle. (Honestly, Daniel, I’m surprised you haven’t spotted the memes.)

4. She wasn’t married to the guy before him, come to that. Her husband stopped being president 16 years ago, since when she’s been elected to the Senate twice and served four years as Secretary of State.

5. I’m sure Hillary would love to have been able to run for president without reference to her husband – for the first few years of her marriage, indeed, she continued to call herself Hillary Rodham. But in 1980 Republican Frank White defeated Bill Clinton’s campaign to be re-elected as govenor of Arkansas, in part by mercilessly attacking the fact his wife still used her maiden name.

In the three decades since, Hillary has moved from Hillary Rodham, to Hillary Rodham Clinton, to Hillary Clinton. You can see this as a cynical response to conservative pressure, if you so wish – but let’s not pretend there was no pressure to subsume her political identity into that of her husband, eh? And let’s not forget that it came from your side of the fence, eh, Dan?

6. Also, let’s not forget that the woman you’re subtweeting is a hugely intelligent former senator and secretary of state, who Barack Obama described as the most qualified person ever to run for president. I’m sure you wouldn’t want to be so patronising as to imply that the only qualification she had was her husband, now, would you?

7. I’d love to know what qualifications Dan thinks are sufficient to become US president, and whether he believes a real estate mogul with an inherited fortune and a reality TV show has them.

8. Hillary Clinton got nearly 3m more votes than Donald Trump, by the way.

9. More votes than any white man who has ever run for president, in fact.

10. Certainly a lot more votes than Theresa May, who has never faced a general election as prime minister and became leader of the government by default after the only other candidate left in the race dropped out. Under the rules of British politics this is as legitimate a way of becoming PM as any, of course, I’m just not sure how winning a Tory leadership contest by default means she “ran in her own right” in a way that Hillary Clinton did not.

11. Incidentally, here’s a video of Daniel Hannan demanding Gordon Brown call an early election in 2009 on the grounds that “parliament has lost the moral mandate to carry on”.

So perhaps expecting him to understand how the British constitution works is expecting too much.

12. Why the hell is Hannan sniping at Hillary Clinton, who is not US president, when the man who is the new US president has, in three days, come out against press freedom, basic mathematics and objective reality? Sorry, I’m not moving past that.

13. Notice the way the tweet says that our “head of government” got there on merit. That’s because our “head of state” got the job because her great, great, great, great, great, great, great, great grandmother happened to be a protestant in 1701 and her uncle wanted to marry a divorcee – all of which makes it a bit difficult to say that our head of government “ran in her own right”.  But hey, whatever makes you happy.

14. Is Daniel calling the US a banana republic? I mean, it’s a position I have some sympathy with in this particular week, but it’s an odd fit with the way he gets all hot and bothered whenever someone starts talking about the English-speaking peoples.

15. Incidentally, he stole this tweet from his 14-year-old daughter:

16. Who talks, oddly, like a 45-year-old man.

17. And didn’t even credit her! It’s exactly this sort of thing which stops women making it to the top rank of politics, Daniel.

18. He tweeted that at 6.40am the day after the march. Like, he spent the whole of Saturday trying to come up with a zinger, and then eventually woke up early on the Sunday unable to resist stealing a line from his teenage daughter. One of the great orators of our age, ladies and gentlemen.

19. He thinks he can tweet this stuff without people pointing and laughing at him.

Jonn Elledge edits the New Statesman's sister site CityMetric, and writes for the NS about subjects including politics, history and Daniel Hannan. He is on Twitter, almost continously, as @JonnElledge.