What the Levelling Up White Paper means for devolution and the future of local government in England.
The systems reform chapter is at the centre for the Levelling Up White Paper. It sets out both the institutional barriers that have hindered past attempts to tackle regional inequality, and reforms to those institutions.
It is probably the most significant part of the White Paper, and it marks the end of the beginning of devolution in England. In it, the Government has admitted that the weakening of local government has contributed to deteriorating economic performance. The status of the mayors as permanent parts of the constitution in England has been confirmed. And for the first time, a roadmap for devolution across England has been produced, which even if voluntary and with flexibilities, sets out the future of local government in England.
The Systems Reforms chapter identifies five problems with previous initiatives in this area:
It then goes on to argue that a “whole system” approach that combines stronger, autonomous institutions with a clear mission is the best practice for reform –the Bank of England and the National Infrastructure Commission are cited as examples.
This means in the view of the White Paper, levelling up needs:
While the discourse around the White Paper has focused on the policy section, levels of funding, and the Roman Empire, these institutional reforms are extremely important. Unlike previous attempts to achieve what is now known as levelling up (including the former Industrial Strategy, ‘regional policy’ etc.), for the first time, policy initiatives are being combined with permanent changes to the constitution of England.
All places will now be free through county deals to pursue devolution if they wish, but the framework established by the Government will guide the choices they make. These reforms will therefore reshape the state in England as Centre for Cities has called for in the past. Ensuring that devolution matches economic geography, improving accountability by offering mayors everywhere, levelling up all mayors to London-style powers, and improving local government’s ability to deliver local services as a prerequisite to local prosperity have all been a focus of our work and recommendations.
New local leaders will be elected under these deals and tasked by their voters with delivering levelling up for their area. Crucially, the new mayors and governors will outlast this Government and the funding streams in the White Paper. Just as the mayors of Greater Manchester and Tees Valley have changed their local and national politics, these new institutions will now change politics across large parts of England.
In other words, the Levelling Up White Paper is the end of the beginning of devolution in England. The White Paper county deals will normalise mayors by introducing them outside the big cities as a key part of the programme to rebuild English local government. While mayors have up until now been seen as something of an aberration in the structures of English local government, despite being elected by more than 40 per cent of England’s population, as more and more county deals are agreed it will increasingly be the archaic and exhausted pre-existing structures that will seem out of place. District councils now find themselves at last chance saloon and of declining relevance to Government and the public.
There are two big challenges now remaining for devolution. First, Government and the mayors should begin to discuss what a stable, permanent settlement for devolution might look like. The conversation will never truly be settled, but all parties will eventually need to share an understanding of where the mayors’ responsibilities should broadly begin and end, both to protect local government and to help hold it accountable.
The second devolution challenge is a new sustainable funding and financial settlement for local government. Putting the new mayors on a permanent and autonomous footing in terms of funding will require an end to the practice of bidding for countless pots.
Government has pledged to reduce this, and to follow through they will need to remove ringfences on what local government can and cannot spend money on, and agree to longer term settlements – happily, neither of these will cost central government any additional money. But giving the mayors strong incentives to pursue economic growth for their area will require Government to eventually grasp the thorns of tax devolution.
Devolution remains unfinished. But as the new systems created by the Levelling Up White Paper come into being, a new chapter of devolution will begin.
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