House of Commons - Office of the Deputy Prime Minister: Housing, Planning, Local Government and the Regions

Select Committee on Office of the Deputy Prime Minister: Housing, Planning, Local Government and the Regions Written Evidence

Memorandum by the West Midlands Constitutional Convention (WMCC) (DRA 46)

"LONDON—OR LOCAL?"

1. KEY POINTS

— The West Midlands Constitutional Convention welcomes the publication of the Draft regional Assemblies Bill and its early pre-legislative scrutiny by the Committee.

— There is a need for a clearer and more regionally sensitive approach to what are regionally strategic issues, which can be easily understood and believed by voters. We need a more balanced approach to moving the devolution agenda forward in England. At present it is dominated by the views of the (London) centre and what it is prepared to let go. A better balance has to be struck between the views of central government departments and voters in the regions.

— Devolution is about moving Government closer to people and the transfer of functions and resources from Westminster and Whitehall to the regions and the localities. It should not be about moving local government away from people.

— If Local Government needs to be reorganised so be it, but the issues involved are not directly connected to changes in the size or functions of local councils. Regional government is not about local government reform but about redefining the central-regional relationship in the context of communities which are at least as large in size as Scotland or Wales.

— Elected Regional Assemblies should have the flexibility to develop innovative solutions for their regions. However, developing solutions is only part of the regional challenge. It is equally about delivery and its close relationship to the making of strategy at a level which is effective.

— The general purposes of Elected Regional Assemblies focusing on the promotion of sustainable development and the related powers as set out in Clause 43 of the Bill are very welcome

— Elected Assemblies have a duty to prepare a scheme, which sets out a long-term vision for their region and the action it proposes to take to deliver regional priorities. However they will need the power to "knock heads together" if necessary.

— Elected Regional Assemblies need to be given a broad right of scrutiny across the whole of domestic government in the regions

— Central Government needs to do more to explain how its proposals will deliver real policy changes on a coordinated basis in a way which is understood by voters. Such arguments are certainly there to be made. In the field of transport for example the experience of Wales and Scotland has already demonstrated the added value brought to the management, promotion and funding of major infrastructure projects in the context of heavy rail. Meanwhile in the West Midlands region Birmingham New Street station—a key national railway hub—still awaits action to bring it into the 21st century.

— Greater flexibility is needed about the size of Elected Regional Assemblies so that they can reflect more accurately significant regional variations between English regions in population size and diversity, plus geography and urban/rural mix.

— The creation of an elected Regional Assembly should not result in an increase or a reduction in democratic representation. Rather the existing democratic density should be maintained but with some redistribution to reflect the transfer of powers from the national to regional level.

— Elected Regional Assemblies should be required to actively engage regional stakeholders in their work and to prepare and keep up to date in an open and transparent way a scheme for their involvement. Each Assembly should be allowed to decide how it meets this requirement building on experience, which has been developed in each region. Every effort needs to be made by Parliament. and Government to make it clearer that the establishment of Elected regional Assemblies will increase, not decrease opportunities for a wider range of regional stakeholders to be involved.

— Elected Regional Assemblies, assisted by the political parties, can promote equality of opportunity, increase participation of under represented groups in the government of a region and generate a greater sense of public ownership of regional policies and actions. It is important that voters believe that an Elected Assembly will offer a new approach to the politics and the Governance of their region.

— Voters must be offered a clear and simple approach about the functions of an Elected Regional Assembly. They must be able to see what its functions are relative to Central and Local Government. The proposed functions of an Elected Assembly should be supported, but they need to go further particularly in relation to the devolution of Learning and Skills, Transport and Cultural Services.

— All Government Departments should justify to the Committee why any of their functions, which they currently administer regionally or and sub regionally through executive agencies or Non Departmental Public Bodies should not be devolved to an Elected Regional Assembly.

— The proposed ERA funding powers are welcome. The funding of Elected Regional Assemblies should be based on general rather than ring-fenced grants; We welcome the proposals for scope to set a council tax precept and for powers to borrow to enable essential investment in the region's needs. There are additional central and quango budgets, which should be transferred to Elected Assemblies.

— There is a need to create simpler and more co-ordinated structures, which provide better value for money and do not duplicate between the assembly and the government office for the region

— Elected Regional Government should have a substantial role in allocating lottery funds.

2. THE WEST MIDLANDS REGIONAL CONTEXT/INTRODUCTION

This Memorandum sets out the comments of the West Midlands Constitutional Convention on the draft Regional Assemblies Bill that was published by the Government on the 22 July 2004.

The comments are related to the main sections and paragraphs of the associated Draft Policy Statement. They take into account the findings of the Convention drawn from Research it has commissioned and other work it has undertaken over the past three years.

WMCC views on the draft Bill build on the evidence submitted to the Committee by Campaign for the English Regions (CFER)[63] [64]

Regional Context: The West Midlands Region has a population of some 5.3 millions. This is split almost 50/50 between the metropolitan urban core centred upon the regional capital Birmingham, (which includes the other metropolitan boroughs/cities of Walsall, Wolverhampton, Solihull, Sandwell, Dudley and Coventry); with the other 2.5 millions of population in the shire areas (including unitary sub-regions such as Telford and Stoke on Trent) of Shropshire, Staffordshire, Warwickshire, Worcestershire and Herefordshire.

The birthplace of global industry over 250 years ago, the region remains a major manufacturing centre; it is also a growing tourist destination and in Birmingham, has a regional capital fast climbing the ladder of European architectural, business and leisure destinations. It generally suffers from being less identifiable to outsiders than say the North West and the North East (and is thus less politically influential at Westminster), while its relative closeness to London geographically means that it tends to lose out to London for investment purposes.

Recent examples of this regional disadvantage are the decision to site to new National Stadium at Wembley despite an excellent and much more cost-effective bid led by Birmingham City Council. The consistent lack of rail investment for New Street Station can also be contrasted with major rail investment in refurbishing both Leeds and Manchester Piccadilly stations. Too often the West Midlands region appears to be "the meat in the North-South sandwich".

3. BACKGROUND

The West Midlands Constitutional Convention (2002) Ltd was formed to promote debate and action in favour of establishing democratic regional Government for the West Midlands Region. It was predated by an earlier group called Campaign For A West Midlands Assembly, begun in the late 90s by Labour and Liberal Democrat supporters.

The Convention is independent and its members, supporters and directors are drawn from across the West Midlands Region. Members of all the main political parties and a wide range of other interests in the region are involved. The Convention is affiliated to the Campaign for the English Regions (CFER). WMCC has been funded largely by the Barrow Cadbury charitable trust, thus guaranteeing its independence of any party or group.

The Convention has over the last three years worked to raise awareness within and beyond the region about its undemocratic and fragmented Government and to test public opinion and attitudes. It has published and is seeking views on its own proposals about establishing democratic Regional Government for the West Midlands Region[65]

It has worked with the existing voluntary Regional Assembly and was instrumental in establishing an independent West Midlands based academic experts group to produce authoritative research to inform debate about the regional agenda[66]

Further information about the Convention including its views on the Government of the West Midlands can be found on its web site at www.wmccweb.org

4. POLICY OVERVIEW

The future Governance of the West Midlands Region, must, as the Government states "be part of the overall agenda for constitutional reform and devolution intended to give the people of the regions a greater say in the way they are governed and in the delivery of policies and to ensure that functions are carried out at the appropriate level"[67]

WMCC has consistently supported the Government's aim of "strengthening Britain by allowing different parts of the UK to express their diversity while celebrating the ties that bind us together" . . . and giving more control over decisions that affect the regions to the people in the Regions.[68] [69]

An Elected West Midlands Regional Assembly would be able to make a real difference to the lives of people throughout the region on key strategic issues[70] There is a need for a clearer and more regionally sensitive approach to what are regionally strategic issues, which can be easily understood and accepted by voters.

What may be appropriate in the North East may not be appropriate in the North West or the West Midlands. Recent Focus Group research for the West Midlands indicates that voters, particularly women, include health and education issues as regionally strategic issues, but the Government does not.

Also since the Publication of the White Paper, Your Region, Your Choice the Government has added Regional Fire and rescue Services to the portfolio of responsibilities of an elected Regional Assembly despite arguing originally that it was "not the business of devolving responsibility for services" It may not be insignificant that Fire and Rescue services are the responsibility of ODPM. No other services as such have as yet been added to the responsibilities of Elected Regional Assemblies.

We need a less piecemeal approach to moving the devolution agenda forward in England. At present it is dominated by the views of the London centre and what it is prepared to let go. A better balance has to be struck between the views of central government departments and voters in the regions.

Recent research shows that there is a real reluctance within departments to embrace devolution let alone regional working for England[71]. This is a challenge that Whitehall did not have to face with devolution to Scotland or Wales.

5. THE ESTABLISHMENT OF ELECTED REGIONAL ASSEMBLIES

The Convention does not support the Government's view that the reorganisation of Local Government should be a prerequisite for establishing Elected Regional Government in England.

Devolution is about moving Government closer to people and the transfer of functions and resources from the Westminster and Whitehall to the regions and the local. It should not be about moving local Government away from people.

If local Government needs to be reorganised so be it, but the changes involved are not a necessary objective condition for the introduction of ERAs. While some shift in local responsibilities between regional bodies and local councils may be necessary (eg on major strategic issues such as spatial planning), ERAs are not about local government but about redefining the relationship between over-centralised London government and English regions—like the West Midlands—which are larger than some member states of the EU.

The transfer of Central Government functions and Powers to the region and locality should however have direct implications for the scale and organisation of Central Government.

The Convention welcomes the Government commitment to referendums being held in other regions in the future[72] However it hopes the Committee will strengthen the Governments resolve to follow through on the commitment and is not overly influenced by views from the centre or of established local and regional institutions with a vested interest in their own survival.

The views of the public need to be tested. Focus Group research in the West Midlands at the time of the Soundings carried out by ODPM about the establishment of Elected Regional Assemblies early in 2003 indicated support for a Referendum in the West Midlands and muted interest from the existing appointed Regional Chamber. Again a better balance is needed.

WMCC remains committed to a referendum sometime in 2006-07 on the establishment of a directly Elected West Midlands Regional Assembly. Opinion polling has consistently shown public support in the West Midlands for shifting powers from London to an elected region wide body in the region.

6. PURPOSES AND POWERS OF ELECTED REGIONAL ASSEMBLIES

We welcome the Governments view that Elected Assemblies should have the flexibility to develop innovative solutions for their regions. However developing solutions is only part of the regional challenge. It is also about delivery and its close relationship to the making of Strategy. To deal with them separately only means that Strategies and Plans are at best only partially delivered and that delivery is ill informed and lacks strategic direction and coordination.

The key issue for the West Midlands is delivery. The West Midlands has probably the longest history of regional working in England if not the UK[73] The region has a long history of producing plans and strategies without the powers, resources and democratic legitimacy to deliver them. This reflects the identity of a compact region defined by a metropolitan core surrounded by five shire county areas, with strong links to the regional centre, Birmingham, going back at least to the advent of the railways.

In terms of delivering better public services to the 5.3 million people of the West Midlands region, the Draft Bill provides a starting Point. However it does not go far enough. It probably goes as far as ODPM has been allowed by the conservatism in Whitehall.

The General Purposes of Elected Regional Assemblies focusing on the promotion of sustainable development and the related powers as set out in Clause 43 of the Bill are very welcome[74]

However there will be some very significant limitations in the draft Bill on what assemblies would be able to actually do in pursuit of their aims. 75 Assemblies would not normally be able to knock heads together and enforce co-operation of other bodies or people even if that is what is needed. The Committee needs to look at this limitation and to compare the proposals for elected Regional Assemblies in England to the devolved authorities in Scotland and particularly Wales.

[75]From a West Midlands perspective, Elected Regional Assemblies need to be given a broad right of scrutiny across the whole of domestic government in the regions. The existing voluntary Regional Chambers/Assemblies have neither the capacity nor the democratic legitimacy to deliver the level of scrutiny that is badly needed. It has been estimated that some £14 billion of public monies (excluding defence expenditure and social security transfers) is spent by Government in the West Midlands region annually. Only some £6 billion of that is partially locally accountable via local councils; the remaining £8 billions is spent by quangos or other bodies not directly answerable to local people[76] A West Midlands ERA should have the power to at least monitor such expenditure and preferably be given a substantial degree of control over it.

Making scrutiny of services like the NHS more region-specific would bring scrutiny out of the domain of the national Press and allow such scrutiny a more constructive role in British politics as a whole. It would do much to foster the development of the local and regional media and have a major impact on the democratic malaise in the whole country[77] The focus of public service accountability has to shift from London to the Regions. ERAs can provide a tier of democratic accountability large enough to be strategic but close enough to localities to be more sensitive and effective to need.

We accept that Elected Regional Assemblies do not need to have Primary or Secondary legislative powers; currently existing legislation provides ample room for manoeuvre. What is critical is who holds the necessary powers.

7. STRATEGIC REGIONAL CO -ORDINATION

The proposal that Elected Assemblies have a duty to prepare a scheme which sets out a long term vision for their region and the action it proposes to take to deliver regional priorities is in part welcome[78] However it places no onus on key other delivers to comply with what the assembly proposes or any sanctions to enforce it's policies.

For example it is suggested that an assembly could set out in it's scheme how it plans to integrate cross-cutting issues such as public health and equality into specific policy areas[79] However apart from Spatial Planning it has no direct powers over what are likely to be key policy fields of Housing, Education, Health and Transport. The Committee needs to probe Government about exactly how this is intended to deliver real policy changes on a coordinated basis.

If left as it is this approach could leave an Assembly exposed to criticism for not delivering action it proposes simply because it has no real power to deliver what is necessary. Equally others may escape or seek to avoid criticism by blaming the Elected Regional Assembly.

Voter support for an ERA will depend on voters believing that It will make a real difference to their lives, have a clear purpose in relation to Central and Local Government and involve a real and significant transfer of power and resources from Westminster and Whitehall to the Region. An ERA has not just to be a partner with central and Local Government, it has, as far as Regionally significant issues, to be the lead partner and central to a new "hub" based approach to regional Governance (Fig 1).

Fig 1

PROPOSED NEW MODEL OF REGIONAL WORKING IN THE WEST MIDLANDS REGION

Stakeholder Organisations		The Public
(Business, Trade Unions, Voluntary, Community, Faith and other Interests)
	Directly Elected West Midlands Regional Assembly
Local Government		Central Government

8. DEMOCRATIC ACCOUNTABILITY

The Draft Bill proposes Elected Regional Assemblies with between 25 and 35 members, largely (but mistakenly in our view) following the Greater London assembly model. WMCC believes that this approach does not sufficiently reflect significant regional variations in regional populations and geography and that a more flexible approach, which reflects such variations, is needed. Unlike London the West Midlands Region is not a city-region, but an urban, rural mix.

Numerically the population of the West Midlands is double and its area one-and-a-half times the area of the North East. (Table 1)

Table 1

COMPARISON OF THE AREAS AND POPULATIONS OF THE NORTH EAST AND WEST MIDLANDS REGIONS

	Area	Population
	(Square Kilometres)
West Midlands	13,004	5,335,600
North East	8,592	2,581,300
Source: Your Region, Your Choice—Cmnd.5511, and May 2002

If with the smallest population of the English Regions an elected Regional Assembly for the North East has 25 members it can be argued that pro rata an Assembly for the West Midlands should have between one-and-a-half and double the members as the North east, that is between 37 and 50 members.

The creation of an elected West Midlands Regional Assembly of 50 members has to be seen in the context of the Region's existing democratically accountable representatives comprising several thousand local Councillors, 59 Members of Parliament and seven Members of the European Parliament. It also has to take into account the hundreds of anonymous, paid Ministerial appointees who run the region's plethora of Non-Departmental Public Bodies and Executive Agencies[80]

The creation of an elected Regional Assembly should not result in an increase or a reduction in democratic representation. Rather the existing democratic density should be maintained but with some redistribution to reflect the transfer of powers from the national to regional level.

9. STAKEHOLDER INVOLVEMENT

Elected Regional Assemblies should be required "to actively engage regional stakeholders in their work and to prepare and keep up to date in an open and transparent way a scheme for their involvement". The Government is right to propose that each Assembly be allowed to decide how it meets this requirement, building on experience which has been developed in each region over recent years.

Every effort needs to be made by Parliament and Government to make it clearer that the establishment of Elected Regional Assemblies will increase, not decrease opportunities for a wider range of regional stakeholders to be involved.

10. EQUALITY AND DIVERSITY

An important argument for the establishment of Elected Regional Assemblies is the contribution they can make to promote equality of opportunity, increasing the participation of under-represented groups in the government of the region and a greater sense of public ownership of regional policies and actions than currently exists.

There does need to be a requirement on Elected Assemblies to produce and keep up to date a scheme indicating how it intends to meet these requirements.

Also relevant in promoting equality will be the size of the Elected Regional Assembly and the way political parties recruit and select candidates. It is important that voters believe that an Assembly will offer a new approach to the politics and the Governance of their region. In this respect the election of individuals new to politics with little or no political baggage will be an important test of the difference an Assembly can make. A larger Assembly will make possible a greater mix of experienced politicians and newcomers.

11. FUNCTIONS OF AN ELECTED REGIONAL ASSEMBLY

Voters must be offered a clear and simple approach about the functions of an Elected Regional Assembly. They must be able to see what are it's functions relative to Central and Local Government and they must believe that an Assembly can make a difference in it's own right.

WMCC welcomes the proposals for:

— The broad general purposes and powers to promote economic, social development, and improvement and protection of the environment, and of biodiversity, and the general duties to promote equal opportunities, and public health.

— The Assembly framework powers (and the Regional Spatial Strategy), to provide clear regional direction within which other policies and budgets will fit.

— Assembly control of the Regional Development Agency (RDA), and the increased scope for RDAs developing through delegation of Business Links; the proposals of the Rural Strategy 2004; the role in tourism, and the expanded budgets.

— The Assembly to take over the regional role in EU structural funds;

— The Regional Cultural Consortium to be accountable to the assembly.

— The clear strategic role in housing, linked to the Regional Spatial Strategy, including allocation of funding to housing providers.

WMCC believes the onus should be on all Government Departments to justify to the Committee why any of their functions, which they currently administer regionally or and sub-regionally through executive agencies or Non-Departmental Public Bodies, should not be devolved in the region or locally and made the responsibility of an Elected Regional Assembly.

As a minimum the following functions based on those proposed by CFER[81] need to be added to those proposed for elected Regional Assemblies.

Learning and skills:

— To determine regional skills strategies and control the adult learning budget;

— To allocate skills funding to more local delivery organisations; and

— To run the Connexions Service.

Transport:

— To have transport planning powers, including public transport, roads and parking;

— The power to establish a regional transport authority which would work with sub-regional transport executives;

— To have a major role in rail services and investment;

— To have responsibility for major roads including motorways;

— To allocate transport budgets, including rural transport, and have charging, taxation and borrowing powers to enable improved investment in transport;

— To have Transport powers which support its duty to protect the environment, to shift to more environmentally and socially friendly (and often economical) forms of transport;

— To have the power to establish a Regional Transport Executive, or to work with existing PTEs, according to local circumstances; and

— To have stronger regulatory powers in relation to public transport, including the introduction of a region-wide, more equitable concessionary fares policy, and to take control over major roads.

Cultural services:

— To transfer to Regional Assemblies budgets for arts and sports.

— To provide for Regional Assemblies to have a role in regional heritage and conservation.

12. FUNDING OF ELECTED REGIONAL ASSEMBLIES

We welcome the proposal that assembly funding should be based on general rather than ring-fenced grants, the proposals for scope to set a council tax precept, and for powers to borrow to enable essential investment in the region's needs.

We believe there are additional central and quango budgets, which should be transferred to the Assembly. We also emphasise that creating simpler and more co-ordinated structures, and not duplicating between the Assembly and the government office for the region, would save money on regional administration.

We strongly urge that regional government should have a substantial role in allocating lottery funds, and if this is not included in the Bill, it should be a strong recommendation to the lottery review.

13. CONCLUSIONS—LONDON OR LOCAL?

WMCC welcomes—subject to the caveats and proposed improvements above—much in the Draft Bill. It is a sensible starting point in the organic development of the process of English devolution. The Government is to be congratulated on coming this far in proposing to shift our over-centralised system of Government away from, what The Scotsman newspaper has called, the metrovincialism of London and the Westminster village. If properly developed, the Government's devolution plans have the capacity to create a new, more meaningful form of localism with productive regional partnerships providing better local services in tandem with both local and national government.

With its 5.3 million people at the diverse heart of England, the West Midlands Region stands ready to do more for itself, its economy and its people. In an increasingly complex society London Government needs to concentrate on what it is best suited to do—arguably managing the economy, defending the nation in the wider world and responding to global social, scientific and political change. It should set the national framework but increasingly work in partnership with strategic Elected Regional Assemblies to ensure service delivery in transport, health, planning and other major strategic services. London micromanagement of public services does not work; Scotland and Wales offer alternative and increasingly successful models of diversity within a national UK framework.

The West Midlands Constitutional Convention believes the people of the West Midlands should be given the opportunity to play their part in a new central-regional partnership. The Draft Bill is a positive beginning but can be strengthened further to meet both the needs of regions and the nation.

Submitted on behalf of WMCC by

Councillor Philip Davis, Chair, and

Mr George Morran, Director

63 CFER Submission to ODPM Select Committee Enquiry into the Draft Regional Assemblies Bill: August 2004 Back

64 Regions that Work: A Contribution to the debate on the Powers of English Regional Government: March 2004 Back

65 Our Region, Our Choice, WMCC, October 2003. Back

66 The West Midlands Governance Action Research Group was established in 2001. Back

67 Elected Regional Asseblies: Policy Statement-Para 8. Back

68 Preface by the Prime Minster to Draft Regional Assemblies Bill Policy Statement. Back

69 Foreword by the Deputy Prime Minister to Draft Regional Assemblies Bill Policy Statement. Back

70 Elected Regional Assemblies: Policy Statement Para 9. Back

71 Sarah Ayres and Graham Pearce, Aston Business School: Central Government Responses to Governance Change in the English Regions: Economic and Social Research Council's Devolution and Constitutional Change Programme: 2003. Back