‘Give us more power and we’ll boost economy by £2bn,’ West council leaders tell Government

September 11, 2015
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An extra £2bn a year could be generated for the West of England’s economy if the Government handed back control over areas such as skills, transport and housing to the region, according to the leaders of its four local authorities.

They have submitted a proposal to the Treasury calling for devolution of powers in a number of areas from Whitehall, with a view to getting the green light from Chancellor George Osborne in his Autumn Statement on November 25.

The package of measures is focused on increasing economic productivity to grow the region’s economy by at least 5% more than it would without the deal.

The local authorities say this would create a fairer region where people have better access to employment, more homes available and better transport options. They have stressed to ministers that the West boasts the strongest economy outside of the South East and is the only city-region to be a net contributor to the Treasury through business rates.

However, they fear growth is being stifled by deep-rooted transport problems and a lack of skilled workers.

The West of England has lagged behind other regions, especially in the North West, in persuading the Government to hand back powers. This has been blamed on slow progress in getting the four authorities to work together in critical areas such as housing and transport.

While Government ministers – particularly George Osborne – has championed the Northern Powerhouse, the idea of a West of England equivalent has failed to gain any traction outside of the region.

But the four authority leaders say the latest bid is closely linked to existing, successful joint working in the region and would open up opportunities for more cross-border projects.

They said it would mean an “even more collaborative approach” to issues such as where new homes are built and how public transport improvements are delivered along with greater local control over post-16 training and skills – a move likely to be welcomed by business leaders.

The submission proposes a ‘Payment by Results’ approach to the £1bn for infrastructure. This means the region is seeking the freedom to borrow money to invest up-front, with the Government committing to repaying it once the economic success of the investment has been demonstrated.

Leader of Bath & North East Somerset Council, Cllr Tim Warren, pictured above, said: “We’ve put together an ambitious proposal which has at its heart the need to deliver new homes, create more jobs, and improve our area’s transport infrastructure.

“The West of England is a key contributor to the UK economy and we want a deal that recognises that.

“We already have ambitious plans for our area, but devolving more powers and funding to the region in this way will have a huge benefit to the residents of Bath & North East Somerset.  Creating new jobs and more affordable houses are essential to our growth and prosperity, and our economic strategy seeks to address this by supporting higher wage industries to grow and locate here.

“By working collaboratively with our West of England partners we can deliver greater investment for our whole region whilst at the same time maintaining the distinct identity of each of our areas.  We will be able to deliver more jobs, better infrastructure, and work together on transport initiatives that will make it easier for residents, businesses and visitors to get around our area.”

Chair of the West of England Local Enterprise Partnership (LEP) Colin Skellett added: “This is a major step forwards and builds on the excellent joint working between the four unitary authorities and business.  We have clearly demonstrated our ability to manage devolved funding and responsibilities through our City Deal.  This further proposition will enable our strong regional economy to grow even faster to the benefit of UK PLC and everyone who lives and works here.”

Following its submission the West of England will work closely with the Government on the detail of the proposals.

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