Select Committee on Communities and Local Government Committee Fourth Report


2  The development and role of the regions

9. The idea of regional government in England is long standing. Following the temporary division of England into administrative regions during the First World War a theory of regionalism, in which counties would be replaced by regions based on geography and cultural identity, was expounded by Professor C B Fawcett as early as 1919.[7] During the Second World War regions were again created for administrative purposes, and subsequently provision was made for England to be governed on a regional basis in the event of a nuclear attack on London. This was, however, "a temporary plan to deal with a specific threat. The intention was to return to central government as soon as possible after such an attack".[8] Further interest in regionalism in the guise of city-regions rather than tightly defined administrative areas was apparent in the 1960s, at the time of the Radcliffe-Maud Commission on local government, but once again the development of a regional policy stalled. We have been told that throughout the last century the debate has been cyclical, and characterised on the one hand by "Whitehall retrenchment […] oblivious to the consequences on the ground" and on the other hand by a "resurgent […] localism" resentful of Whitehall's centralising tendencies.[9]

10. Regional or state governance structures are, or have become, well-established in other parts of the world, for example the United States of America, Australia, Canada, Germany, France, Spain and Italy. Within the United Kingdom, however, the delegation of powers to elected assemblies and parliaments in Scotland, Wales, Northern Ireland and London has not been matched by devolution to the remaining English regions. There is therefore a democratic deficit below Parliamentary level.

THE GOVERNMENT'S CASE

11. The current rationale for a regional approach was outlined for us in the Government's memorandum, which stated that:

"[…] a regional approach is necessary to create the optimal conditions in which policy decisions and the delivery of those policies can effect positive change to people and places…the underpinning rationale for a regional approach can be broken down broadly into:

The economic case - there are demonstrable differences in regions' economic performance, for different reasons, and a greater understanding of these and their underlying causes would allow regions, and therefore UK plc, to realise their economic potential.

The strategic case - regions bring a unique strategic perspective to policy development and spatial decision making; they bring together a range of expertise drawn from all levels and sectors within their region to better plan and integrate investment decisions. The regional level focuses on a strategic role rather than service delivery.

The pragmatic case - there are issues which cross local authority boundaries and taking a view across a wider area ensures that resources are being invested effectively".[10]

The nine administrative regions are indicated on the map below:

Source: Map redrawn from the Government Offices for the English Regions website - http://www.gos.gov.uk/

12. The Government Offices represent central government in each region and their purpose (which will be discussed in further detail later) is both to join up the work of individual departments within the regions and to use their local knowledge of the region concerned to influence the development and implementation of Government policy as it affects the area.[11] The regional Government Offices have been enhanced considerably since 1994 and since 2000 have included staff from ten Whitehall departments: DCLG itself, and its predecessors; the Department for Trade and Industry (DTI); the Department for Transport (DfT); the Department for Environment, Food and Rural Affairs (DEFRA); the Home Office; the Department for Education and Skills (DfES); the Department for Culture, Media and Sport (DCMS); the Department for Work and Pensions (DWP); the Department of Health (DoH) and the Cabinet Office.[12]

13. The development of regional governance in the current phase can be described as incremental. Following the establishment of the Government Offices (GOs) the Government perceived other institutions to be necessary in the regions "to exploit indigenous strengths and to address weaknesses".[13] Regional assemblies—which were at their inception intended by the Government to become elected bodies—were created in 1998-99 as "inclusive strategic bodies 'of the region' [bringing] together representatives from key sectors across the region […] in an ideal position to contribute to and ensure consistency across regional strategies".[14] The assemblies are closely involved, as consultees, in the work of the Regional Development Agencies, which were established in 1999 to develop and co-ordinate regional economic development and regeneration.[15] While the Government maintains that " the entirety of what the RDAs do is subject to the scrutiny of the Regional Assemblies", however, it remains the case that the assemblies are restricted in their ability to look beyond what the Regional Development Agencies do to the resources at their disposal and the organisation of their budgets. The distinction between the RDAs' 'regional' accountability and their 'democratic' accountability to Ministers is discussed later in this report (see paragraphs 82-90 below).[16]

14. Since 2004 the assemblies have also had responsibility for preparing a regional spatial strategy, and in 2006 they took over the work of the regional housing boards (themselves established in 2003 to prepare regional housing strategies).[17] We believe that the purpose of regional government should be to see the transfer of powers downwards from central government, not upwards from local authorities. Regional skills partnerships were created between 2003 and 2005.[18]

15. As in earlier times, and for pragmatic reasons, the regions have been given certain responsibilities for resilience, planning the response to "wide area high impact events" such as 'flu pandemics or problems with fuel supply.[19] In addition, as we shall discuss later in our report, there are significant numbers of Government agencies and quangos operational in the regions.

16. Although there was disagreement, many felt it was sensible to have arrangements in place which enable the development and co-ordination of economic and certain other strategies at a level which may both tailor national requirements to local needs, and take a perspective on matters of interest beyond the purely local area (such as the development of major roads and other strategic infrastructure). It is noticeable in our evidence that the clearest expressions of support for a regional stratum of governance came from non-governmental organisations in the environmental, social and transport sectors, suggesting perhaps that such cross-cutting (but frequently lower profile) issues have benefited particularly from the new institutions.[20]

The development of city regions. Example 1: The Leeds City-Region

The Leeds city-region covers Barnsley, Bradford, Calderdale, Craven, Harrogate, Kirklees, Leeds, Selby, Wakefield and York. These ten local authority districts 'cut across' three existing sub-regions. The city-region accounts for 20 % of the population, 21% of the business stock and 21% of the GVA of the three northern regions (Yorkshire and the Humber; the North East and the North West) which make up the Northern Way.

Work on the city-region began with a Leeds City Region Economic Summit in November 2004. At the summit a commitment to partnership working was made by the leaders and chief executives of authorities within the city-region and Yorkshire Forward (the Regional Development Agency). The current partnership, which works on the basis of a concordat, includes the ten local authorities within the city-region and North Yorkshire County Council, which has a strategic role in economic development and transport planning. A City Region Development Programme is being submitted to the Comprehensive Spending Review 2007.

In December 2005 a meeting of the city-region leaders was held in Huddersfield to discuss how collaborative arrangements in the partnership could be improved. Barriers to effective joint working were identified in the complexity of current governance arrangements, in particular relating to the lack of co-ordination between agencies tasked with delivering different aspects of economic development. It was agreed that greater alignment should be sought between the strategies of Yorkshire Forward, the West Yorkshire Passenger Transport Executive and the Learning and Skills Council.

Political leadership was also identified as an issue. The city-region leaders agreed to bi-monthly meetings to provide political leadership on economic competitiveness. A greater formalisation of the voluntary partnership would be sought, with consideration being given to creation of a city-region wide Local Strategic Partnership. A commitment was made to ensure engagement with stakeholders was a priority.

The city-region leaders are seeking new arrangements from Government to manage the transport system at the city-region level.

Source: Ev 185

STAKEHOLDER PERCEPTIONS OF POLICY

17. Many witnesses had concerns about a lack of coherence in the Government's regional policy. Nottinghamshire County Council told us:

"The whole regional map of responsibilities is extremely complex, in part because it has developed on an ad hoc basis. This has been described by many as regionalism by stealth […] The ensuing complexity discourages engagement, accountability and joined-up decision making".[21]

Hull County Council similarly told us that regionalisation had resulted from "ad hoc solutions to specific policy or departmental needs", while Stoke on Trent City Council also referred to "the growth by stealth" of powerful institutions which have no direct accountability.[22] The Association of Greater Manchester Authorities argued that there was a lack of coherence in the regional structures, while the North West Regional Assembly described the current situation as "one of considerable complexity and no small amount of uncertainty".[23] This uncertainty was identified by the Centre for Urban and Regional Development Studies (CURDS) as arising from the simple fact that the entire structure was created in little over a decade and had been in "a permanent state of flux".[24]

18. There are certainly indications that this level of uncertainty and perceived incoherence has damaged confidence in the system. The lack of clear and direct accountability—which some even suggested was further dwindling—was repeatedly raised as a major problem.[25] Durham County Council told us that the confidence of stakeholders was fragile.[26] Localise West Midlands stated that "It is hard to imagine a structure more designed to create duplication, waste, fighting between regional, national and local organisations, lack of effective co-ordination, lack of accountability and thus irresponsibility".[27] The extent of Government commitment to genuine devolution was also questioned: the Campaign for the English Regions stated that a Minister had told them 'We are not in the business of devolving responsibility for services', while Jane Thomas, former director of the Campaign for Yorkshire, believed that regional plans would continue to be over-ridden by national demands, such as the diversion of expenditure to the 2012 Olympics.[28] A few witnesses raised concerns that regional government was costly.[29]

19. In the next section of our report we shall describe the evidence we received relating to the three main 'pillars' of the current regional governance structure (the Government Offices, the Regional Assemblies and the Regional Development Agencies), and examine the key concerns raised about accountability, public acceptability and relations between the regions and central government.


7   Ev 110, HC 977-II; http://archive.thenorthernecho.co.uk/2004/5/24/51357.html Back

8   Ev 13, HC 977-II Back

9   Ev 110, HC 977-II Back

10   Ev 78, HC 977-II  Back

11   Ev 84, HC 977-II Back

12   Q30; Ev 49 Back

13   Ev 77, HC 977-II Back

14   Ev 76, HC 977-II Back

15   Ev 116, HC 977-II. Excludes the London Development Agency, which was established as part of the wider arrangements for the governance of London under the Greater London Authority (GLA) Act 1999. Back

16   Ev 138, HC 352-II, Session 2006-07 (hereafter HC 352-II); South West Regional Assembly/SWRDA Scrutiny Protocol and Programme 2006-09 Back

17   Ev 81-82, HC 977-II Back

18   Ev 88, HC 977-II Back

19   Ev 83, HC 977-II Back

20   See for example QQ265, 406; Ev 240, HC 977-II Back

21   Ev 102, HC 977-II Back

22   Ev 128; Ev 10, HC 977-II Back

23   Ev 60; 236, HC 977-II Back

24   Ev 149, HC 977-II Back

25   See for example Ev 61 and Ev 127, HC 977-II; Q289 Back

26   Ev 135, HC 977-II Back

27   Ev 160, HC 977-II Back

28   Ev 132, HC 977-II Back

29   Ev 1, HC 977-II; Q268 Back


 
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Prepared 14 March 2007