Devolving power over transport, housing and taxes from Westminster to the West of England would boost the economy and help Bath firms thrive, according to the results of a new survey.
Some 69% of the region’s business leaders backed the idea of giving responsibility for these services to local authorities. Fifty-three per cent also said that local government should have greater control over their budgets. 
Businesses said they wanted to have a role shaping the local devolution agenda – yet 69% had not been consulted by their council about their views.
The findings are published in a new report from the Centre for Cities think tank in association with Bristol-headquartered national law firm TLT.
Called Firm Views: the business take on devolution, it offers the first in-depth analysis of the views of business leaders from the West of England.
Nearly 300 business owners and senior managers from the region took part in the survey on the Government’s devolution agenda.
Leaders of the region’s four unitary authorities – Bath & North East Somerset, Bristol, North Somerset and South Gloucestershire – are currently bidding for Government deals to take on more devolved powers.
However, many in the business community fear that deep-rooted problems that have prevented these authorities working together effectively in the past are slowing progress – and leading the Government to focus its efforts, and funding, on the so-called North Powerhouse and other city-regions.
A pre-requisite of any devolved power and funding is that the authorities have a unified approach.
The research shows that 51% of businesses taking part in the survey welcomed the prospect of local government having more power over public services, while over half said that local politicians should have the ability to vary and retain local taxes to unlock investment in the local economy.
This is particularly significant in light of the Government’s recent announcement on the devolution of business rates to local areas. Just 10% of respondents said that local government should not be given any further devolved powers.
However, the research also suggests that local business leaders would like to have more opportunities to shape the local devolution agenda – with 69% of respondents saying that they had not been consulted by local government about their views on proposals for more devolved powers.
The report argues that, as local leaders in the West of England prepare to take on more powers over the next few years, it is vital that they channel the enthusiasm of the city’s business community by ensuring that local firms are at the heart of discussions about key economic priorities such as transport, infrastructure and local tax rates.
Centre for Cities chief executive Alexandra Jones said: “We often hear that the private sector is sceptical about the benefits that devolution would bring but this report shows that businesses leaders in Bristol and the West of England believe that it could offer them real opportunities in the years to come.
“Through our survey and consultations with local firms, it’s clear that that there is real appetite among the business community for local leaders to have greater control over the issues that matter most to the region’s economy, such as transport, housing and local taxes.
“That underlines how much is at stake for local leaders from Bristol and the West of England as they seek to agree deals with the Government to take on more devolved powers.
“Great progress has been made in the past year to form the combined authority for the region in a short space of time. But it’s crucial that local leaders continue to do all they can to secure a devolution deal, including agreeing to introduce a mayor for the region, so that local people and businesses in the region can enjoy the benefits of devolution in the years ahead.”
TLT managing partner David Pester added: “This research demonstrates that there is a desire within the local business community for devolution to work. But there’s also concern that if all parties are not involved in ongoing discussions, devolved powers may not have the intended economic impact.
“That only 8% of business leaders in the West felt they had had the opportunity to voice their opinion on devolution speaks volumes about how limited the negotiations have been to date. One of the main arguments for devolving powers to cities is to rebalance the national economy and encourage regional business growth. But, so far, businesses in the West have been largely in the dark on the issue.
“As a 1,000 strong UK law firm with our head office in Bristol and offices in other city regions potentially affected by devolution, it’s crucial that we understand what’s around the corner for our clients. More importantly, there needs to be proper channels for business to have its voice heard on matters that will directly impact the environment within which they operate.”
