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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Cabinet audit: what does the appointment of Andrea Leadsom as Environment Secretary mean for policy?

The political and policy-based implications of the new Secretary of State for Environment, Food and Rural Affairs.

A little over a week into Andrea Leadsom’s new role as Secretary of State for Environment, Food and Rural Affairs (Defra), and senior industry figures are already questioning her credentials. A growing list of campaigners have called for her resignation, and even the Cabinet Office implied that her department's responsibilities will be downgraded.

So far, so bad.

The appointment would appear to be something of a consolation prize, coming just days after Leadsom pulled out of the Conservative leadership race and allowed Theresa May to enter No 10 unopposed.

Yet while Leadsom may have been able to twist the truth on her CV in the City, no amount of tampering will improve the agriculture-related side to her record: one barely exists. In fact, recent statements made on the subject have only added to her reputation for vacuous opinion: “It would make so much more sense if those with the big fields do the sheep, and those with the hill farms do the butterflies,” she told an audience assembled for a referendum debate. No matter the livelihoods of thousands of the UK’s hilltop sheep farmers, then? No need for butterflies outside of national parks?

Normally such a lack of experience is unsurprising. The department has gained a reputation as something of a ministerial backwater; a useful place to send problematic colleagues for some sobering time-out.

But these are not normal times.

As Brexit negotiations unfold, Defra will be central to establishing new, domestic policies for UK food and farming; sectors worth around £108bn to the economy and responsible for employing one in eight of the population.

In this context, Leadsom’s appointment seems, at best, a misguided attempt to make the architects of Brexit either live up to their promises or be seen to fail in the attempt.

At worst, May might actually think she is a good fit for the job. Leadsom’s one, water-tight credential – her commitment to opposing restraints on industry – certainly has its upsides for a Prime Minister in need of an alternative to the EU’s Common Agricultural Policy (CAP); a policy responsible for around 40 per cent the entire EU budget.

Why not leave such a daunting task in the hands of someone with an instinct for “abolishing” subsidies  thus freeing up money to spend elsewhere?

As with most things to do with the EU, CAP has some major cons and some equally compelling pros. Take the fact that 80 per cent of CAP aid is paid out to the richest 25 per cent of farmers (most of whom are either landed gentry or vast, industrialised, mega-farmers). But then offset this against the provision of vital lifelines for some of the UK’s most conscientious, local and insecure of food producers.

The NFU told the New Statesman that there are many issues in need of urgent attention; from an improved Basic Payment Scheme, to guarantees for agri-environment funding, and a commitment to the 25-year TB eradication strategy. But that they also hope, above all, “that Mrs Leadsom will champion British food and farming. Our industry has a great story to tell”.

The construction of a new domestic agricultural policy is a once-in-a-generation opportunity for Britain to truly decide where its priorities for food and environment lie, as well as to which kind of farmers (as well as which countries) it wants to delegate their delivery.

In the context of so much uncertainty and such great opportunity, Leadsom has a tough job ahead of her. And no amount of “speaking as a mother” will change that.

India Bourke is the New Statesman's editorial assistant.