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

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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


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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

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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?

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  • 1. Why Does Governance Matter?

Governance affects economic performance UK has

  • 19th century government, 20th century boundaries to run

21st 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
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  • 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.
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  • 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
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  • 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
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  • 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
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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
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  • 5. What Others Doing? Greater Manchester Leads

Power Ask Yes Power Ask Yes

Fiscal Devolution 

  • Infrastructure

  Innovation, R&D

  • Transport

  Housing   Public land

  • Skills

  Business Support   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)
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  • 5. What Others Doing? Leeds, Sheffield, Liverpool

Place Powers Governance Leeds Asks some fiscal devolution. Housing/Transport/ Business Support C A extended powers ‘West Yorkshire Act’ Sheffield Asks some fiscal devolution. ‘Projects’ in themes Housing/Transport/Skills CA now. May consider

  • ther options – ‘specific

to Sheffield’

  • Leeds & Sheffield - ahead us in government's plans
  • Liverpool – starting discussions, letter to Chancellor
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Theme

Now Within 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 Want Now?
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Theme

Public Sector Transformation Planning Education and schools Policing Fire and Rescue services Recycling and Waste services

  • 6. What Liverpool City Region Might Want Future?

Starting of a ‘negotiation’

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  • 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?