The newly published White Paper on Local Government promises greater flexibility and choice for cities to develop their relationship with neighbouring councils and the Regional Development Agencies.
The long-awaited White Paper, says little about finance, but invites bids from local authorities asking them to outline their case for greater freedom and local accountability.
However, it has come down firmly against imposing the mayoral model on all councils and opened the way for greater use of the cabinet-style executives which have proved their value in leading economic regeneration and development in major cities.
All eight Core Cities will be invited to submit their case for more strategic powers and include details of their governance arrangements. Other two-tier areas are being asked to put forward submissions for new unitary status. No overall guidance is expected on the size of new unitary authorities but the invitation is likely to be welcomed by Norwich, Exeter, Ipswich and Oxford which have already made bids for unitary status.
The Secretary of State for Communities and Local Government Ruth Kelly already signalled the shift in emphasis when she told a recent conference organised as part of the Lyons Review of the future of local governmen which is due to report shortly: “We must resist the false choice of city or region. What we need are strong cities in strategic regions.”
Ed Balls, the economic secretary of the Treasury is a leading advocate of what some call the ‘Manchester model’ with a strong city council playing a lead role in regional development and forging key partnerships with neighbouring local authorities, the North West RDA and the private sector companies.
In a speech to Manchester Chamber of Commerce, Mr Balls said: “I believe Manchester is a powerful example of how local authorities and regional agencies can work together with the private sector to drive economic development and social progress.
“The strategic leadership shown by RDAs has demonstrated how priorities set at a regional level can instill a culture of regional inclusion and decentralisation that have transformed the way decisions are made and resources care distributed tailored towards local challenges,” he said.
“I believe this approach is working here in the North West where your RDA is working with cities across this region to develop joint action plans through sub regional partnerships.
“Some feared that RDAs might weaken the role of local government in economic development yet Manchester shows how the opposite can be true.
“The same pattern of regional strategic leadership unlocking local economic dynamism is happening in Leeds, Newcastle and Birmingham too - all cities enhanced by regional initiatives.”
Mr Balls also praised the Northern Way partnership for bringing regions and local government leaders together to work on cross-boundary issues and he said its Growth Strategy report provided “an ambitious vision for the North of England “ combining a world-class economy with a superb quality of life.
“Strong vibrant cities are the future. Around the world successful economies have strong and vibrant urban centres with the powers they need to shape the future. We must strengthen the powers of local government in economic development and strengthen co-operation across local authority boundaries,” he stressed.
However he added: “We should not forget that in many parts of the country it has been the RDAs that have been instrumental in making co-operation start to happen. If we weaken the role of the RDAs the losers would be the cities and the smaller towns and cities who have benefited from the new regional policy.”
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