Memorandum by The North East Assembly
(NEA) (RG 89)
INTRODUCTION
1. The North East Assembly (NEA) is one
of the English Regional Assemblies. The NEA was set up in 1999
and has 73 Members, representing a broad range of sectoral interest
and stakeholder groups, and providing a level of decision-making
and policy development for the region that other regional bodies
do not have.
2. This memorandum addresses the terms of
reference set out by the Committee, paying particular regard to
the actual and potential role of Regional Assemblies—focusing
specifically on the issues of improving accountability at the
regional and sub-regional level; contributing to effective arrangements
for the management of services; the potential impact of the emergence
of "city-regions"; and new forms of inter-regional co-operation—whilst
at the same time seeking to address the Inquiry's central question.
3. The NEA is continuing to develop its
role as a strategic focal point in the region. Through our breadth
of membership, we have a unique place in addressing regional priorities.
We have a key role in strengthening relationships between regional
organisations and with all sectors of the community. We value
the knowledge and experience of all regional stakeholders and
we are working towards giving a voice to all sectors of the community
and enhancing their capacity for engagement at regional level.
We work closely with a wide range of regional organisations and
stakeholders to develop a framework for representing the region's
views. This work makes us better able to identify and response
to the needs of the region.
BACKGROUND
4. In more recent years, successive governments
have created and re-created tiers of administration below national
government, but above the local authority level to meet the needs
of an ever more mobile society. Regionalisation of public administration
accelerated after 1997, the Government maintaining that:
" . . .there has been a growing recognition
that there are issues, such as planning and economic development,
for which some regional decision-making is necessary. This is
because:
— a "one size fits all" uniform
national solution will not address the specific needs and opportunities
of a region;
— local authorities and other local
organisations may not be best placed to take effective action
because, for example, key decisions fall outside their boundaries
and their own decisions may have consequences for neighbouring
areas; and
— there needs to be better joining-up
across and between linked policy areas, with better overall outcomes
both for the region and for England as a whole."[106]
5. More broadly, according to the Government,
"the best way to overcome regional disparities in productivity
and employment rates is to allow each nation, region and locality
the freedom, flexibility and funding to exploit their indigenous
sources of growth".[107]
Thus, "it is not possible to run a successful economic policy
without decentralisation and devolution to regional and local
levels".[108]
This analysis, which is supported by substantial Government research,
continues to provide the basis for the important tasks of regional
coordination, integration and representation.
DELIVERING REGIONAL
SUCCESS
6. In this context, the roles and functions
of Regional Assemblies have become involved in fields where individual
local authority actions are likely to have limited impact and
where a regional strategic view, or voice, is required. The roles
and functions and their statutory or other basis are set out in
Appendix 1. A study for the ODPM outlined the progress made by
Regional Assemblies and the distinctive role that they have developed
since their inception. These include:
— Achieving a degree of political
consensus in each region over the role and legitimacy of each
Assembly, while attaining a "critical mass" in terms
of staffing and organisational capacity and capability;
— Fostering strong regional partnerships
with local authorities and with a wide range of other stakeholders;
— Facilitating the integration
of land use and transport planning issues at the regional level,
through Regional Planning Guidance/Regional Spatial Strategy (RPG/RSS)
and the development of Integrated Regional Strategies.
— Developing and demonstrating
developed and demonstrated constructive and influential scrutiny
roles, primarily in relation to Regional Development Agencies
(RDAs).
7. In general, Regional Assemblies have
exerted an increasing influence in the field of regional policy-making
and co-ordination, developing skills in intra- and inter-regional
collaboration, seeking to increase awareness of their work within
their region, and to make the case for their region on the national
and European stages.[109]
Recent examples of a pro-active policy influencing role approach
taken by the NEA include:
— Successful lobbying of David
Miliband, Minister of Communities and Local Government, requesting
that criteria for determining transport allocations in Regional
Funding Applications (RFAs) be amended to reflect economic regeneration
and social deprivation issues.
— Raising the Department for Transport's
awareness of the implications for regional economic development
of the Highways Agency's use of Article 14 directions.[110]
— Successful lobbying for the
RDA's funding streams from central government departments to be
rationalised and placed in a "single pot".[111]
— Successful lobbying and support
for the recent changes to the planning system which made the Regional
Spatial Strategy (RSS) a statutory document.
Policy Integration
8. Regional Assemblies have begun to acquire,
additional strategic responsibilities, which are most suitably
carried out at the regional level. Most notably, Assemblies have
gained important new responsibilities for integrating housing
and spatial planning activities. The Barker Review on Housing
recommended the merger of Regional Planning Boards (now incorporated
into Regional Assemblies) with Regional Housing Boards (RHB) on
the basis that "Within the current institutional framework
at the regional level no organisation has overall ownership of
the regional housing market".[112]
Barker noted that hitherto Regional Planning Bodies (RPB) have
determined the scale and allocation of regional housing provision
over a 15 year period in the Regional Spatial Strategy (RSS).
The RHBs have advised on the allocation of funding for social
and other sub-market housing for a 2-3 year period, private sector
renewal and how to tackle low demand in a Regional Housing Strategy
(RHS). The Regional Economic Strategies (RES) produced by RDAs
have had increasingly important implications for housing demand
and spatial planning to meet the needs of the regional economy.
Barker concluded that, "All these strategies should, of course,
take account of each other but they often use a different evidence
base and operate over different timescales".[113]
Following consultation, the Government accepted the case for merging
the functions of RPBs and RHBs arguing that the merger will help
regions to take a more strategic view of housing and infrastructure
needs.[114]
INCREASING ACCOUNTABILITY—THE
CASE FOR
FURTHER INTEGRATION
9. Whilst supportive of the government's
Regional Funding Allocation (RFA) proposals(see para.15), the
need for improved skill levels is a critical issue in the region,
and one on which significant resources are allocated through the
Learning and Skills Councils (LSC). Therefore, the NEA has argued
that these should also be included in the RFA process. Likewise,
it has also argued that if transport integration is to be tackled
effectively, then rail infrastructure and services should also
be included.
10. The NEA and the Regional Housing Board
agreed their approach to the merger in March 2005. This will involve
incremental changes; the Assembly member will chair meetings of
the Housing Board which will have delegated decision-making powers,
and the secretariat will become Assembly employees. There may
also be some changes to the Board membership, for example to include
an Economic and Social Partner (ESP) Member as suggested by David
Miliband. The NEA has made it clear to central government that
this merger is subject to the necessary resources being made available.
11. Regionalisation has continued, for instance,
the Department for Education and Skills (DFES) has strengthened
its presence in Government Offices. Government Offices (GOs) now
contain representation from 10 departments (compared to three
originally), and in 2003-04 were responsible for over £9
billion of Government expenditure. In addition, there has been
a consolidation of the extensive quango portfolio at the regional
level, which remains accountable to Ministers and, ultimately,
Parliament. Within North East England, there are around 25 quangos
(excluding the NHS)[115]
with a more or less explicitly regional mission, and with an expenditure
of over £2 billion. Generally, the range of quangos has seen
a shift to align more with regional boundaries and has experienced
a degree of administrative devolution since 1997. Thus, the bulk
of powers exercised at the regional level in England are in the
hands of central government and its agencies. While such quangos
might be investigated to see whether their functions could be
devolved to the local level, in general such agencies exercise
functions that are best exercised at the regional level, specifically
because this would help to ensure that their overall objectives
fit in with the region's strategic priorities. Thus, there is
a strong case for Regional Assemblies scrutiny powers to be extended
to cover regional quangos with the aim of achieving further integration
of regional strategies.
12. In a situation where sub-national government
and governance remains complex, fluid and uncertain, but important
decisions continue to be made at the regional level, Regional
Assemblies remain the only bodies that bring together such a wide
range of interests (from local government and MPs and MEPs, to
the education, private, community and voluntary, faith, trades'
unions sectors) and are therefore capable of taking a region-wide,
strategic view of broader development issues and providing a voice
for the region in its relations with central government. Indeed,
Regional Assemblies have developed the skills and capacities to
undertake this task through their specific involvement in a wide
range of partnerships.
POLICY DEVELOPMENT
AND INNOVATION
13. A study for the ODPM reported that many
Assemblies are increasing the degree of innovation with which
they carry out scrutiny exercises, which has developed primarily
as a partnership between the Regional Development Agency (RDA)
and the Assembly. The report also suggested that this has worked
best where the Assembly has built a strong relationship with the
RDA. The RDA takes the views of the Assembly very seriously, and
joint working is leading to real changes in RDA approaches. In
several English regions there is evidence that the involvement
of the Assembly has led to particular themes (such as sustainable
development, social inclusion, and community development) featuring
more prominently in RDA strategies and initiatives. The study
concluded that Assemblies are having a positive influence on RDAs,
helping ensure that RDAs have regard to particular policy issues
that they might not otherwise do so and that Assemblies are playing
an important role in considering the collective views of partners,
and articulating them in a constructive, evidence-based and persuasive
manner.[116]
For example, in carrying out its scrutiny exercise into Small
and Medium-Sized Enterprise Survival,[117]
the NEA's evidence gathering sessions included discussions with
regional entrepreneurs who had experienced business failure, which
gave an unparalleled direct insight into why businesses failed,
the stigma of failure and how business support services could
be rationalised to help ensure a greater survival rate. This influenced
the development of the business brokerage model of simplified
access to business support now being implemented by One NorthEast.[118]
FIT FOR
PURPOSE
14. Responding to recent guidance from David
Miliband, Minister of Communities and Local Government, the NEA
has recently reviewed its working practices with a view to streamlining
them and making them more efficient, while at the same time maximising
the involvement of stakeholders. The principal outcome of this
review was the decision to create a small Executive of 15 Members
(reducing its size by just under a half), comprising nine elected
local authority Members and six Members who are Economic and Social
Partners. The Assembly is focused on its core activities, such
as the statutory responsibilities of regional planning and scrutiny
of the RDA, integrating regional strategies and managing the housing
and transport boards to ensure integration and value for the region.
STRATEGIC APPROACH
TO REGIONAL
ENGAGEMENT IN
EUROPE
15. Regional Assemblies have also been instrumental
in bringing together key agencies to develop a strategic approach
to regional engagement with Europe. For example, the NEA provides
the secretariat for the Regional European Strategy Group (ESG).
Established in October 2004, ESG is made up of senior representatives
from regional organisations and MEPs, and provides strategic direction
for the region's engagement with Europe. In November 2005, after
12 months of development and consultation, ESG launched the North
East England in Europe: Framework for Action.[119]
This has enabled the region to focus on the most important issues,
and maximise benefit for the region from engagement with other
European countries. The Framework for Action was cited as an example
of good practice and described as a forward-looking strategy by
Alun Michael, Minister for Industry and the Regions.[120]
The NEA also works actively with the English Regions Network (ERN)
in influencing the EU policy agenda. One recent example was the
launch of a joint policy document with ERN and the RDA network
to demonstrate the contribution that English Regions had made
to achieving the Lisbon Agenda.[121]
STRATEGY INTEGRATION
16. The integration of regional strategies
is now a prime task of the Regional Assembly and is vital for
ensuring the effectiveness of current arrangements for managing
services at various levels and their inter-relationships. In July
2004 a revised Regional Sustainable Development Framework (RSDF),
the "Integrated Regional Framework (IRF): Achieving a
better quality of life" was published. The sustainability
objectives that were developed in North East England's first RSDF
remain central to the IRF. They have been reinforced by updating
the associated indicators and targets, thus enabling the region
to monitor progress towards achieving the objectives. It provides
the guiding principles for integrating sustainable development
within mainstream policy and decision making. It also commits
us to becoming a more sustainable region, and sets out how this
can be achieved by partners and stakeholders at all levels. The
IRF comprises 17 themes and a series of indicators to measure
progress. The 35-point Integrated Regional Matrix is a checklist
that businesses and other stakeholders can access to help achieve
the shared vision for the region.
17. In response to the consultation and
informed by the changing agenda and the need for greater integration
of the many regional strategies, the IRF now presents a shared
vision which will ensure that those strategies share a common
purpose in working towards, and achieving, a more sustainable
future for the North East. The IRF provides the framework to guide
the development of strategies, plans, programmes and policy decisions
throughout the region. It can help identify and exploit all opportunities
and mitigate any potential negative impacts to sustainable development.
The NEA played an active role in developing the IRF, which was
subsequently considered and strongly endorsed by its Members.
SustaiNE, the region's sustainable development round table, has
been delegated the responsibility for preparing, reviewing and
monitoring the IRF. Progress is reviewed through the preparation
of the IRF Annual Monitoring Report. The Assembly is represented
on the SustaiNE Board. The officer working group which supports
SustaiNE is chaired by an Assembly officer.
REGIONAL FUNDING
ALLOCATIONS
18. The Government's new proposals for establishing
Regional Funding Allocations (RFAs) covering housing, economic
development and transport present a new opportunity and challenge
for the regions. The desire to improve the integration of transport,
economic and spatial development strategies was signalled in the
2004 Spending Review and the government launched a consultation,
alongside the 2004 Pre-Budget Report, on how it proposed to implement
regional funding allocations and called on regions to submit their
advice to the Government by January 2006, among other things demonstrating
evidence of stakeholder engagement and levels of support for advice
as presented.
19. The proposals for Regional Funding Allocations
(RFA) contain two new innovations:[122]
— for the first time, there will
be regional transport funding allocations for three years up to
and including 2007-08, in line with the regional housing and regional
economic development allocations already published; and
— indicative longer term planning
assumptions for regional allocations, beyond the three years of
the current spending review, across the three funding streams.
The advantages of this approach are evident.
These clearer planning assumptions should provide a basis for
regions to advise the Government on regional priorities, on the
basis of realistic funding assumptions, in order to improve future
spending decisions and afford regions the opportunity of increased
influence through the Spending Review over expenditure. Assemblies
have an important role in contributing to the alignment of regional
strategies for transport, housing and economic development and
the production of a shared set of realistic priorities that are
affordable and deliverable that are based on genuine consensus.
20. The NEA holds 50% of the places on the
Interim Regional Transport Board (IRTB) which was established
to deal with transport priorities, and the Housing and Economic
Development priorities are dealt with by the Regional Housing
Board and ONE NorthEast respectively. The final RFA report will
also be considered by the NEA.
CITY REGIONS
21. There is clearly merit in developing
inter-regional growth strategies as means of tackling regional
disparities. Given the scale of the output gap[123]
between the Northern regions and the rest of the country and given
the shared nature of some problems and potentials, the case for
the Northern Way is strong. The Northern Way is likely to succeed
if it looks at the North as a whole in order to identify "pan
northern investments", which will add value to that which
is being undertaken in each of the individual regions. The Northern
Way will succeed if it complements the three Regional Economic
Strategies, as these define the key proposals to take forward
economic development in the three regions of the North. It is
also vital that it ensure that each action is taken at the appropriate
level—pan northern, regional, city-regional, or more local.
22. There clearly are policy issues that
are pan-regional in scope and require a coordinated approach that
operates across the three existing regions. Key issues raised
in the Northern Way that would require this approach are a Northern
Airports Strategy, critical transport infrastructure networks
and science policy. There is a strong case for policy analysis
and strategy formulation for these critical inter-regional policy
issues to take place at a pan northern scale, involving close
cooperation between agencies in the three regions, if the government's
target of closing the economic output gap between the northern
English regions and the rest of the UK within the next 25 years
is to be met.[124]
23. The NEA has been fully involved in the
preparation and implementation of the Northern Way. Each of the
three northern Assemblies has a Member on the Northern Way Steering
Group, and officers are involved on the Strategic Policy Group,
which advises the Steering Group. There are also a number of other
working groups and city region development groups that Assembly
officers attend, and joint research has been commissioned to inform
the Northern Way and the Regional Spatial Strategies. A Transport
Compact has also been established involving both Members and officers.
24. The economic contribution of city regions
is recognised in the Northern Way. The interest in city-regions
stems from a belief that cities "drive" economic competitiveness
and that cities generate economic benefits for their hinterlands.
The city-region concept is also an acknowledgement that individual
local authorities are too small to compete in the national and
international competition for investment. These general arguments
are widely accepted by policy-makers, although there are still
large gaps in our understanding of the economic processes underpinning
city-regions, both nationally and in North East England. Moreover,
there is little research into what might be the most effective
forms of city region governance in the English context.
25. The city region concept is beginning
to be embedded in thinking about economic development in North
East England, most notably through the mechanism of the Northern
Way. The larger part of our population lives in one of two city
regions: Tyne and Wear and the Tees Valley. There appears to be
little appetite for, nor a strong consensus about, major revisions
to governance arrangements (including redrawing local authority
boundaries) that might be associated with the economic case for
city regions. Whilst there is some distance to travel before a
consensus is achieved in relation to appropriate forms city region
governance in North East England, there is general agreement that
existing regional institutions have an important role to play
in helping shape city-region development plans, which are seen
as being supported by the Regional Economic Strategy and the Regional
Spatial Strategy. By contrast, within some city regions, there
is a debate about whether some economic development functions
need to be devolved upwards to the city region level from the
local level.
IMPACT OF
CITY REGIONS
ON PERIPHERAL
AREAS
26. While recognising the economic potential
of city-regions, it is important also not to adopt an approach
which overlooks the importance of intra-regional variations in
performance and potential.[125]
Similarly, in improving the economic performance of city-regions,
there is a need to ensure that the needs and potential of rural
areas are addressed.[126]
Regional Assemblies, with their wider geographical remit and stakeholder
engagement, have a key role to play in highlighting the positive
benefits that can be realised through increased urban-rural relationships
and interdependencies.
CONCLUSION
27. In seeking an answer to the question
of whether there is a future for regional government there is
a danger of seeing the problem a choice between tiers. In reality—and
in common with most other mature democracies—the UK is now
operates a system of multi-level governance, in which local, regional,
national and supra-national authorities and institutions all play
a role. The implementation of spatial planning and sustainable
development policies at different levels will lead to factors
arising which continue to have an impact beyond their immediate
geographical boundaries. Therefore, governance will remain important
at the regional level.
106 Department of Transport Local Government and
the Regions (2002) Your Region, Your Choice: Revitalising the
English Regions. Cm 5511. (London: The Stationary Office),
para 1.12. Back
107
HM Treasury, Office of the Deputy Prime Minister, Department
of Trade and Industry (2004) Devolving decision making 2: Meeting
the regional economic challenge: Increasing regional and local
flexibility. March, para 1.8. Back
108
Ibid. para 3.3. Back
109
Office of the Deputy Prime Minister (2005) Evaluation of the
Role and Impact of Regional Chambers: feasibility study, July. Back
110
The Highways Agency is responsible for implementing the Government's
trunk road development control policy on behalf of the Secretary
of State. Acting on behalf of the Secretary of State, Article
14 of the (General Development Procedure Order) 1995 allows empowers
the Highways Agency to direct that either that a local planning
authority shall not grant planning permission for a particular
proposed development, or that it may do so only subject to any
conditions which he (the Secretary of State) may stipulate. (Source:
www.highways.gov.uk/aboutus/1109.aspx). Back
111
For further details on the Single Pot for RDAs, see for example
http://www.hm-treasury.gov.uk/spending review/spend sr04/press/spend
sr04 press 21.cfm Back
112
Barker K (2004). Review of Housing Supply-Delivering Stability,
Securing our future housing needs. March, HMSO, London, para 2.16. Back
113
Ibid. Back
114
HM Treasury/ODPM (2005), The Government's Response to Kate Barker's
Review of Housing Supply, December, HMSO, London. Back
115
For detail on the extent of the quango state in the North East
see Tomaney J and Humphrey L (2001) Powers and functions of regional
government, report for the NEA. Back
116
Office of the Deputy Prime Minister (2006) Interim Report: Evaluation
of the Role and Impact of Regional Assemblies, July, pp 24-26. Back
117
NEA (2003). Strengthening Regional Accountability in the North
East: Scrutiny and Policy Developments Second Report, September. Back
118
NEA (2005). The First Report of the Scrutiny and Policy Development
Committee, November. Back
119
European Strategy Group (2005). North East England in Europe:
Framework for Action, November, NEA. Back
120
Alun Michael MP made reference to the Framework whilst speaking
at the Conference on Regional and Rural Development Programmes
(2007-13): Delivering the Lisbon and Gothenburg Agendas held at
Baltic, Gateshead Quays on 7 November 2005. Back
121
ERN (2005). English Regions: Delivering Jobs and Growth, November,
English Regions, Network. Back
122
HM Treasury, Department for Trade and Industry, Department for
Transport, Office of the Deputy Prime Minister (2005) Regional
Funding Allocations: Guidance on Preparing Advice, July. Back
123
The output gap measured in GVA per head (residency basis) (2004)
between the UK and the North East has been calculated as £3,400
(£16,800 and £13,400 respectively). Source: http://www.statistics.gov.uk/pdfdir/rgva1205.pdf
p 1. According to Northern Way, if the output gap was closed was
the same as the UK average, regional economic output would increase
by £8.8 billion (2002). Across the North as a whole it would
increase by £29 billion (2002). Source: Northern Way
(2004) Northern Way: First Growth Strategy Report, September,
Northern Way, p 7, table 1. Back
124
ODPM (2004) Making it Happen: The Northern Way: Main Report,
2 February http://www.odpm.gov.uk/index.asp?id=1139956. Back
125
On this point see Deegan J (2005) City-regions and "non-core"
cities, Town and Country Planning, October, p 315. Back
126
See Midgely J & Ward N (2005) "City regions and rural
areas", in Hardy S et al (Eds) (2005) Sustainable
Regions: Making Regions Work. Conference Proceedings of the
Regional Studies Association, November. Seaford: Regional Studies
Association. Back
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