So where does Brexit leave the Devolution Revolution?
Expect a period of protracted uncertainty, negotiations and deals as we strive for stability and strong leadership. As hinted in my DevoIntelligence piece, “With or without George” I think English devolution will be part of the solution for our cities and regions outside London regardless of George Osborne or Brexit.
The political force behind the Northern Powerhouse, George Osborne, has committed to remain as Chancellor until a new leader/Prime Minister is selected. But watch how the politics, positioning and re-positioning by Boris, Gove and Osborne evolve as the Tory leadership campaign kicks in. Given it will be messy I wouldn’t completely rule out a future without George. He’s gambled and invested far too much in his career to retire to the backbenches. Remember too, that Boris is a fan of the devo-mayoral model. So there is room for optimism on the devolution revolution front.
But with both the Conservative and Labour parties in free fall it is difficult to see a way forward as both grapple with resignations, control and leadership in Brexit’s wake. Devolution remains a great opportunity for Labour heartlands and areas of economic and social deprivation. In May next year Labour Mayors could have powers to deliver real hope and independence. Labour must reclaim the devolution revolution agenda now and focus on winning. They must not miss the devolution boat because of Captain Corbyn or to be distracted by internal mutiny.
The devo deals and the selection of Mayoral candidates will begin to gather pace in the months ahead despite the prevailing political uncertainty. We need a new breed of Mayor possessing vision and ambition.Civic Leaders who can capture the public’s imagination and who can deliver growth, investment, jobs, skills and increased connectivity across the Northern Powerhouse and Midlands Engine. The devolution revolution may move more slowly and be overshadowed by Brexit but if grasped it could also provide solutions and political stability as well as deliver control and new powers.
To add to the political mayhem there is now a real prospect of an early General Election if Boris wins. We also cannot rule out a second Scottish referendum. An independent Scotland inside Europe and the break up of the UK could be a reality. Look at what might happen in Northern Ireland too? The people have spoken and they demanded Brexit. This so called new dawn marks a new era of voter engagement and empowerment, I expect that the people will also find greater devolved power and local control appealing in the run up to May 2017. Indeed, the “take back control" mantra will dominate the terms of the political debate from here on in. In this context the devolution revolution would appear to be unstoppable.
Headlines
EU Referendum: Local Government reacts
LEAVE: 51.9% REMAIN: 48.1%
On Thursday the UK went to the polls and voted to leave the European Union. 17,410,742 people voted to Leave and 16,141,241 to Remain. The turnout was 72.2%. There was considerable regional variation with London, Scotland and Northern Ireland supporting Remain while most of England and Wales voted Leave. The MJ’s Heather Jameson urges the Government not to get distracted by Brexit and allow devolution to be “derailed” , whilst LGC’s Nick Golding says that strong leadership in local government will help the UK overcome “Brexit chaos”.
Local Government Minister urges councils to “keep up the momentum” with devolution
Minister for Local Government, Marcus Jones has written a piece for the MJ in which he urges all councils to “keep up the momentum” with transforming and improving local services, saying that all reforms are underpinned the Government’s “most fundamental reform: devolution”. He says there is still much to be done to “reset” the balance of power between central and local government, “an environment where for too long Whitehall had strangled the life out of local decision-making and taken control away way from local people”.
Sajid Javid: From the Northern Powerhouse to global trade
Secretary of State for Business, Innovation and Skills, Sajid Javid delivered a speech at the International Festival of Business (IFB) in Liverpool this week. He said that by “devolving real power” the Government is “giving the north a powerful new voice”, and dismissed claims that the Northern Powerhouse is “some short-term marketing campaign”.
What else is happening?
LIVERPOOL
Liverpool City Region LEP chair to stand down
Chair of the Liverpool City Region LEP, Robert Hough has announced that he will be standing down from the role this week. He has been chairman of the LEP since its formation in 2012. Speaking to the Liverpool ECHO he said his decision was in part due to the creation of the Liverpool City Region Combined Authority and devolution to the region.
LONDON
Mayor to push for London at table in Brexit negotiations
Mayor of London, Sadiq Khan has responded to the result of the EU Referendum, after London bucked the national trend and voted to remain in the EU. In his response he says that despite being outside the EU “there is no doubt that London will continue to be the successful city it is today”, but will “push” to ensure that London is represented at any EU-UK Government Brexit negations. Meanwhile, a petition calling for London to become an independent city state has received 175,175 signatures. Sadiq Khan’s office has responded saying the Mayor will be demanding more autonomy for London and wants “the devolution of fiscal responsibility including tax raising powers, as well as more control over business and skills, housing and planning, transport, health and policing and criminal justice.”
SHEFFIELD
Lack of a devolution template a double-edged sword, says SCR chair
Chair of the Sheffield City Region Combined Authority, Cllr Sir Stephen Houghton has given an interview to Public Sector Executive this week about how the region’s devolution deal is progressing. He reveals that details of how a new mayoral combined authority will work, and how the mayor’s powers will operate will be formalised over the summer, with a formal consultation on the scheme taking place from 27 June. However, he adds that the lack of a template for devolution deals has been a “double-edged sword”.
NORTH EAST
Re-drafted North East deal details to be made public in July
It was revealed at the North East Combined Authority’s (NECA) AGM last week that the detail of the redrafted North East devolution deal will be made public on 4 July. The draft will include the governance arrangements and set out Gateshead Council’s relationship to the deal after it voted against proposals in March. If the scheme is approved by NECA on July 4 it will then undergo an eight-week public consultation commencing on July 8. Following public approval an order to establish the NECA will be laid before Parliament in the autumn with a view to the order being made by the end of 2016 or early 2017. The AGM also saw the end of Councillor Simon Henig’s tenure as Chair of NECA – he was replaced by Councillor Paul Watson, leader of Sunderland City Council.
IPPR begins series on North East part in Northern Powerhouse
The Institute for Public Policy Research (IPPR) North has published a report, At the crossroads: Regional trade in the North East which explores the region’s economy and trading links. The report is the first in a series examining the North East and its “critical” relationship with other northern regions as part of the Northern Powerhouse. IPPR highlight that the North East does a greater proportion of its trade with the EU than with other English regions, and is particularly dependent on the export of road vehicles. For these reasons, IPPR recommend that the North East Local Enterprise Partnership (LEP) provide “targeted support” to help the North East’s businesses to trade with other English regions. IPPR also recommend that the LEP “press ahead” with its smart specialisation programme to address the region’s “dependence” on a narrow range of goods exports.
WEST MIDLANDS
WMCA Chief – 100% business rates devolution is “not far enough”
Chief Executive of the West Midlands Combined Authority (WMCA), Martin Reeves has goven an interview to the MJ this week in which he says that the Government’s plan to give councils 100% retention of business rates “did not go far enough”. According to Martin Rees only “proper” fiscal devolution will deliver the “long-term public service reform and long-term economic uplift” the Government hopes will result from its devolution agenda.