20 April 2009

Statutory city regions: Conurbations vie to become city-regions

English sub-regions bidding to become ‘statutory city-regions’ are hopeful they will receive an indication of the powers and budgets that would be devolved to them in next week’s Budget.
The Government, which invited sub-regions to bid to become one of two pilot statutory city regions in December, has yet to commit to devolving specific powers or budgets.
Lord Smith of Leigh, chair of the Association of Greater Manchester Authorities, has urged Whitehall ‘to give us some teeth’.
The AGMA executive board has told ministers that the city-region needs influence over Highways Agency and Network Rail investment, and control of the conurbation’s share of the £1.5bn annual funding for bus subsidies.
The HA’s recent development of M60 hard-shoulder operation did not provide for segregated commuter bus use, as the city-region would have wished as part of its drive to improve connectivity for businesses so they can grow.
Fourteen sub-regions initially expressed an interest in becoming statutory city-regions, viewed by the Government as potential economic entities which can influence national macroeconomic performance.
The ‘Birmingham, Coventry and Black Country,’ Teesside and Leeds city-regions are among those which have submitted bids. Others, including south Hampshire, have decided against, given the lack of definite ministerial commitment to devolution.
Lord Smith told Surveyor this week: ‘We await the Budget statement with great interest. Greater Manchester already has a high level of collaboration between the 10 local authorities and would wish to ensure that there is significant devolution if we are to take further steps.’
AGMA has agreed to consider whether changes need to be made to transport governance, potentially entailing the transfer of highways powers from the districts to the city-region.
Baron Frankal, the director of economic strategy at Greater Manchester’s commission for the new economy, said that while the metropolitan authorities had overhauled governance to provide new strategic direction, ‘there are things we can’t affect, no matter how well we work together’.
He said that ministers had already supported the principle of devolution in the sub-national economic review. ‘What remains is for us to work out over the next few months exactly what will be devolved, and how.’
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