Local authorities are stronger together than apart

With the local elections coming up, its worth remembering that co-operation is key to development.

Cities across the country have responded to the wanted ad issued in the Localism Act. Politics outside Westminster suddenly looks very interesting. The impending referendums on elected mayors have grabbed the imagination and the headlines, but there is a quiet revolution in local governance that has been less commented upon.

Developments in the Leeds City Region remind us that championing localities is about collaboration as well as leadership. Leeds and its neighbour’s intention to follow Greater Manchester in establishing a combined authority shows that collaboration across functional economic areas is a growing phenomenon. The future story of local government will be as much about newly combined authorities as newly elected mayors.

Local champions can drive local economic growth. The areas in and around cities such as Leeds or Manchester, have vibrant economies – and what they often need most is internal and international connectivity. This description would equally apply to areas like Tyne and Wear or the Birmingham conurbation. If England’s cities and shires are going to fulfill their potential then creative approaches to investment are required. Mayors alone will not be able to provide this.

A good example of local investment to support business is provided by Northamptonshire County Council. The council made a £10 million secured loan to protect the future of the British Grandprix at Silverstone Circuits. It also made a £1.5 million contribution to a new high-tech business park to develop automotive innovations. The new technology park is expected to create 2,400 jobs and the loan could help protect 22,000 jobs in Silverstone and across the rest of the country.

Analysis in NLGN’s latest report – Grow Your Own: Skills and infrastructure for local economic growth – found that this investment can be scaled if councils are willing to pool their capital funding and borrowing capacity. The ten Greater Manchester authorities recently agreed a £1.5 billion revolving investment fund for major transport infrastructure. A single economic strategy gave the councils the confidence to allocate their own money and borrow substantial amounts to invest in a wide ranging programme of which extensions to the Metrolink are a centre piece. Joint borrowing helped to mitigate the risks that the councils faced in underwriting new investment.

The Leeds City Region wants to develop its own model for investment and is working with government in order to achieve this through the City Deal process. Leeds hopes that Whitehall will match fund £200 million worth of pooled investment cash. The money would be spent on new infrastructure to connect the sub-region’s economy. One way to encourage others to take up this approach would be to extend city deals beyond the core cities through a series of LEP deals.

Policy innovation is particularly important given the £4.9 billion spending gap inherited by local government and Local Enterprise Partnerships following the abolition of the Regional Development Agencies. The ability to pool investment is also the reason that combined authorities could have more clout than mayors in single authorities.

City mayors are often presented as business-friendly "one-stop-shops", providing clear points of contact for prospective investors. This potential will be limited unless they operate through the kind of collaborative local governance that is envisaged for the Leeds city-region.

In Birmingham there is much excitement over the potential of a mayoral race between Siôn Simon, Gisela Stuart and Liam Byrne. But their capacity to drive change will be undermined unless the city and its surrounding area cooperate. Currently the Greater Birmingham and Solihull LEP is struggling to agree on shared economic priorities with the neighbouring Black Country LEP. This makes no sense to a major multinational company making a major capital investment, such as Jaguar Land Rover looking to build a new automotive factory.

The government ducked the opportunity to support metro-mayors. Admittedly, the local politics of such a role could have proved one step too far for local cooperation. However, if mayors make narrow investment decisions based on authority boundaries they will exacerbate existing problems.

Elected mayors can be important figureheads for communities. They can also champion major investment projects, such as Crossrail, and help to attract future business investment. But local growth is equally dependent on local government. Combined authorities investing smartly – in everything from skills to infrastructure – may hold the keys to unlocking local economies.

A woman walks past Manchester City Town Hall. Photograph: Getty

Joe is a senior researcher at the New Local Government Network

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Metro mayors can help Labour return to government

Labour champions in the new city regions can help their party at the national level too.

2017 will mark the inaugural elections of directly-elected metro mayors across England. In all cases, these mayor and cabinet combined authorities are situated in Labour heartlands, and as such Labour should look confidently at winning the whole slate.

Beyond the good press winning again will generate, these offices provide an avenue for Labour to showcase good governance, and imperatively, provide vocal opposition to the constraints of local government by Tory cuts.

The introduction of the Mayor of London in 2000 has provided a blueprint for how the media can provide a platform for media-friendly leadership. It has also demonstrated the ease that the office allows for attribution of successes to that individual and party – or misappropriated in context of Boris Bikes and to a lesser extent the London Olympics.

While without the same extent of the powers of the sui generis mayor of the capital, the prospect of additional metro-mayors provide an opportunity for replicating these successes while providing experience for Labour big-hitters to develop themselves in government. This opportunity hasn’t gone unnoticed, and after Sadiq Khan’s victory in London has shown that the role can grow beyond the limitations – perceived or otherwise - of the Corbyn shadow cabinet while strengthening team Labour’s credibility by actually being in power.

Shadow Health Secretary and former leadership candidate Andy Burnham’s announcement last week for Greater Manchester was the first big hitter to make his intention known. The rising star of Luciana Berger, another member of Labour’s health team, is known to be considering a run in the Liverpool City Region. Could we also see them joined by the juggernaut of Liam Byrne in the West Midlands, or next-generation Catherine McKinnell in the North East?

If we can get a pantheon of champions elected across these city regions, to what extent can this have an influence on national elections? These new metro areas represent around 11.5 million people, rising to over 20 million if you include Sadiq’s Greater London. While no doubt that is an impressive audience that our Labour pantheon are able to demonstrate leadership to, there are limitations. 80 of the 94 existing Westminster seats who are covered under the jurisdiction of the new metro-mayors are already Labour seats. While imperative to solidify our current base for any potential further electoral decline, in order to maximise the impact that this team can have on Labour’s resurgence there needs to be visibility beyond residents.

The impact of business is one example where such influence can be extended. Andy Burnham for example has outlined his case to make Greater Manchester the creative capital of the UK. According to the ONS about 150,000 people commute into Greater Manchester, which is two constituency’s worth of people that can be directly influenced by the Mayor of Greater Manchester.

Despite these calculations and similar ones that can be made in other city-regions, the real opportunity with selecting the right Labour candidates is the media impact these champion mayors can make on the national debate. This projects the influence from the relatively-safe Labour regions across the country. This is particularly important to press the blame of any tightening of belts in local fiscal policy on the national Tory government’s cuts. We need individuals who have characteristics of cabinet-level experience, inspiring leadership, high profile campaigning experience and tough talking opposition credentials to support the national party leadership put the Tory’s on the narrative back foot.

That is not to say there are not fine local council leaders and technocrats who’s experience and governance experience at vital to Labour producing local successes. But the media don’t really care who number two is, and these individuals are best serving the national agenda for the party if they support A-listers who can shine a bright spotlight on our successes and Tory mismanagement.

If Jeremy Corbyn and the party are able to topple the Conservatives come next election, then all the better that we have a diverse team playing their part both on the front bench and in the pantheon of metro-mayors. If despite our best efforts Jeremy’s leadership falls short, then we will have experienced leaders in waiting who have been able to afford some distance from the front-bench, untainted and able to take the party’s plan B forward.