Select Committee on Communities and Local Government Committee Minutes of Evidence


Examination of Witnesses (Questions 600-619)

MR CHRIS LESLIE

16 OCTOBER 2006

  Q600 Chair: Can we begin the session and welcome Mr Leslie, on behalf of the New Local Government Network, and your fascinating pamphlet. Can I start by probing your apparent scepticism about the value of city-regions? Do you believe that better performing city-regions would help the economic development of under-performing regions or not?

  Mr Leslie: I should thank the Committee first of all for inviting me and conducting this inquiry. I need to preface my comments on city-regions to make a distinction because I think city-regions, like cities, exist. Whether you see them as travel-to-work areas or amalgamations of authorities, they are a fact of geography and of demography. Our scepticism as set out in the pamphlet produced over the summer was much more directed at the concept of political institutions forming around the notion of city-regions. I am, in a way, very pro city-regions, working in collaboration, in federations, the idea that various local authorities within what might be described as a city-region can come together to work successfully. I am more sceptical about the concept of fitting everywhere an additional layer above local authority level just in what might be known as the city-regions. I hope that helps clarify.

  Q601  Chair: To a certain extent, although part of the idea expressed in the publication appears to suggest that the city-region model might weaken RDAs and therefore presumably disadvantage those parts of a region that were not within the city-region.

  Mr Leslie: The basic premise of the argument is that all corners of England deserve and need powers in order to generate economic growth, prosperity, decent-quality public services, and we are at a point in the development of the British constitution where we now have Scottish and Welsh devolution; London governance, because London is a particular case; and yet, in the rest of England we have this debate going on about what form of devolution we are heading towards. Whereas I think there are strong arguments around certain of the core city conurbations—Greater Manchester, Birmingham—where people naturally see a concentric so-called urban area, the city-region institutional model does not necessarily fit as readily on other parts of the country: the North East, West Yorkshire, South Yorkshire in particular. We know quite a lot about the question of the comparison, how a lot of people in London, for instance, will see themselves as Londoners rather than Islingtonites or Camdenites or Lambethites, whereas in West Yorkshire, for example, people will not see themselves as a Leeds City-Regioner; they will see themselves as from Bradford or from Wakefield or from Leeds itself. This question of identity does matter. We are in a constitution with a great history that goes back a long way. You cannot fit a neat administrative model of a particular institutional design everywhere across the whole of the country. It was for that reason that we wanted to voice a note of caution about having one model of governance that would apply to all areas in that way.

  Q602  Mr Betts: Is the reality not that even outside London the cities are the powerhouse for economic growth? Is it not more realistic to build governmental structures on the basis of an economic footprint which actually relates to the way that people live their lives, when you might look at regional boundaries and say that, very largely, they are a government convenience? Sheffield has precious little in common with Whitby, and one end of the South West is certainly an awfully long way from the other end of the South West, and people really do not relate to those sorts of ways of administering government at all.

  Mr Leslie: No, and I think some of the argument about the Government Offices for the regions design has perhaps put some of the rationale behind the "no" vote in the North East back in 2004, why in the South East there is a disjoint between what the public feel is the relevant salience of governance to the way that the Government will administer issues on a Government Office region basis. The problem with city-region institutions is that, whereas there may well in reality be city-regions, where you draw the boundary is of course less clear-cut. To simply draw a boundary around a Greater Sheffield or a Greater Leeds would invariably mean somebody being on the other side of that boundary, and a lot of debate and discussion about structures, institutions, who is in, who is out. Those are the sorts of discussions that I think can be quite a distraction from some of the more important work about what actual policies you are going to pursue in order to boost economic prosperity and improve public services. If we get into a whole argument about regions versus city-regions, I think that is quite a distraction and I worry slightly that if we end up drawing boundaries for new institutions around part of England but not including all of England, in some respects, we are going to just perpetuate another disagreement about who is in, who is out, why one area has certain powers, why another area does not.

  Q603  Mr Hands: A follow-up question. You are sceptical about the need, if I heard you correctly, to have an additional layer of government. Is that informed by an experience with the North East referendum two years ago? Secondly, what if there is not an additional tier of government, and the city-region government effectively replaces one of the existing tiers of government?

  Mr Leslie: In the pamphlet we argue that really, as far as the public are concerned, the clearest identity, relationship within a constitution, will either rest with the national Parliament at Westminster or with local government. Any institutions that have ever tried to be established in between those two primary poles, even to a certain extent past-national at the European end, have always slightly struggled to gain popular salience and recognition. I do not think it is impossible to have strong, good governance in between those. I think the Greater London Assembly model of the mayor in London does work because of the nature of London; it relates to the actual place, but in a lot of areas we would struggle to see anything stronger than the local authority lead really garnering much public support. I would not say in one part of the country it would not be possible to have strong regional government or city regional government. It may well be possible for Greater Manchester or for the North East. All I am saying is that we should not assume we can impose a uniform model or a layer everywhere across all of England.

  Q604  Lyn Brown: Can I ask you a really straight question: is it that you simply do not like the idea of city-regions governed by elected mayors?

  Mr Leslie: No. I believe—and this relates to Mr Hands' question—if you have strong local authorities, if you know what the institution is, what it does, what its purpose is, then you can decide what sort of leadership you want for that institution. So a strong local authority can have an elected mayor and be successful, if it works and people are happy with that. So too, I do not see why in a Greater London city-region you cannot have a mayoral arrangement on top of that. What I think we have done, for some reason, is had a discussion about governance that puts the leadership question before deciding what sort of institution we need, what reason we need institutions for, what the purpose of them will be, if you see what I mean. You need to draw a conclusion about why you need a governance institution before you then decide what sort of leadership it should have. I am not against elected mayors per se. I just think we have to be careful about the way we design our constitution, so that it has as much public support and relevance as possible.

  Q605  Lyn Brown: You suggest that outside London there is a natural identity with large cities which would make it difficult to create city-regions. First of all, I would take issue with what you said about being a Londoner: I never call myself a Londoner; I am always an East Londoner; I am a West Hammer. There are also issues outside of London. I just wonder whether or not the model you have created is OK for Yorkshire perhaps but not for the West Midlands.

  Mr Leslie: I am fairly relaxed. We put a chapter in the report about variable geometry, that rather clunky term think-tankers use to basically explain that there is a case to be made for having a different governance arrangement in some parts of the country to others. I can imagine a Greater Manchester, for instance, that would say "Yes, we do have a common interest." It should arguably have a city-region institution above the local authorities. I can only question, though I suspect most of those local authorities might be a little wary of that layer, because people in local government are quite naturally and rightly jealous of the powers that they have because they are the primary local democratic institution in that area. It is possible that we could end up with the Manchester leaders coming together so frequently that they want to form an assembly, that they want to have a single mayor, but I am slightly sceptical that that will happen voluntarily.

  Q606  Lyn Brown: You mean turkeys do not vote for Christmas. But do you not think that in a situation where perhaps something like that was imposed upon Manchester, with a Greater Manchester happening, that over time people would begin to identify themselves with Manchester as the tier of government became more powerful and more prevalent?

  Mr Leslie: Sometimes having these institutions put in place by legislation, the public, who are not as interested in the detail as we are, will accept but my feeling about constitutional development is that it is far better to do these things by persuasion and through evolution rather than having the centre always impose a model which will potentially have elements that need unpicking years afterwards. I would not want to intrude on the London experience, but I think if you look at the design of the Greater London Assembly, whatever people feel about it, the fact that there has been a very charismatic, strong leader in London has actually taken the media and the public view away from some of the constitutional discussions going on between the borough councils and the GLA, where I think there is a lot of question about how settled those arrangements are.

  Q607  Anne Main: I do not want a long answer because I am conscious that we have a lot of topics to cover. I struggle a little bit when you say it will work in some areas and not in others. I am beginning to get a picture of a mosaic of what you like in some places and what you do not like in others. My concern is where these boundaries start to overlap, where you would get a city-region that would be quite large intruding into perhaps the county structure as we have it now or the regional area structure as we have it now. Can you not see that, unless you make your mind up to have a model that works in a fairly strong fashion, you will end up with a rag-tag of structures?

  Mr Leslie: I think going down a route which is always about new institutional layers is probably the wrong route. We live in an era of partnerships and networks and teams working together.

  Q608  Anne Main: That is my answer then. That is enough. Thank you.

  Mr Leslie: That would be better, to get that right.

  Q609  Martin Horwood: Representing a large town midway between two cities, in Cheltenham and halfway between Bristol and Birmingham, a lot of what you say about identity and the need for a variable geometry seems very sensible, very good critique, but I am less clear about what you are actually suggesting in place of what we have now or the city-region model. Are you suggesting anything at regional level other than city-regions?

  Mr Leslie: Yes. I think the regional development agencies, the regional assemblies, the Government Office arrangements that we have had for the last decade, some going back even further than that, have gradually developed to a point where the Comprehensive Spending Review in future needs to grasp issues and move that next step forward. We have an accountability deficit with RDAs and with others. The regional assemblies, representing local authorities, are supposed to fill that gap, but I think there is still more work to be done. The reason why I like and prefer a whole-England approach that makes sure all corners of the country have at least a say in the shaping of big, strategic policy decisions—

  Q610  Martin Horwood: You are actually quite fond of the current regional structure?

  Mr Leslie: I believe that the current regional arrangements need a lot of improvement but they are about inclusivity, about making sure that nobody is left behind, making sure that if they break into smaller sub-regions, city-regions, they can all relate to one another. What you do not get with the existing regional framework is this idea of castles being built around particular areas and those outside being left behind or having different opportunities. I like the inclusive approach and I think we need to build on the regions we already have.

  Q611  Mr Olner: The Committee went to Lille to have a look at their regional government and the way they expand their regional process. In France the commune is still really the gene that causes it all. I just wondered: if you are going to give this freedom to regions to see what is best for them, to see what is best where they form their regional boundaries, what incentives are you thinking of giving to local authorities, whether it be at city level, shire level or whatever, to come together to form a city-region or a regional area?

  Mr Leslie: I think local government has to be the key component here in driving forward basically most aspects of local public service delivery and economic development. I think we need to excite and engage the leadership of those local authorities to recognise that their destiny lies in pooling together, working jointly and fighting for their own patch, whether it is a sub-region or a region, much more strongly than currently takes place. I think government could do a lot more by transforming the way decisions are taken, pushing those out to regions, to local government, a lot more, because if the carrot is there for local authority leaders to grab by working together jointly with each other, they will be more likely to do that. A lot longer answer about the current sort of quasi-dependency culture we have with local authorities in in relation to Ministers, where the grant regime and other things mean that local authorities are still too supplicant sometimes to Ministers and to Whitehall. I think that needs bouncing radically but that is another part of your inquiry elsewhere. There is a lot government can do to really motivate and excite local leaders to take an interest in the strategic policy opportunities.

  Q612  Lyn Brown: I enjoyed your thesis around local government being really important and possibly having additional powers. To tease that out a bit more, what would you think of? Probation service? Health service? Do you think that would help to strengthen local government and make it more relevant to people and, if so, given the situation that we have in London, should it go to the big capital city, or would it be better spent locally, in boroughs, for instance?

  Mr Leslie: Again, London is a very special place but typically I believe the default assumption should be for local leadership over local public services. Certainly national government has a right to set minimum standards of quality and expectation, but we should be much more relaxed about local variation above those minimum standards and have stronger local leadership for most of these things. There are lots of issues on skills, on transport, policing and health, where we could have a lot more of a democratic impetus to spur on better delivery, which is, I believe, one of the biggest pieces of unfinished constitutional business.

  Q613  Alison Seabeck: You talked about the current inclusive approach of RDAs. Are you absolutely convinced that they are inclusive? There is experience that RDAs do tend to focus on those towns and cities that will deliver the targets they seek to achieve and that will not necessarily mean all the significant towns and cities in their region. Is that an experience you recognise?

  Mr Leslie: There are plenty of failings in the existing system. I do not deny that, but I think that route, having the opportunity for every Cheltenham or Bradford or Plymouth or wherever to take part in the discussion about spatial strategies, economic strategies, development and so forth, rather than feel that they are excluded from those opportunities, is a better foundation for policy rather than going down a fragmented route.

  Q614  Alison Seabeck: So you would say the city-region option is potentially weakening the role of RDAs and therefore being less inclusive?

  Mr Leslie: As I said at the beginning, I am not against city-region working on a voluntary basis, grass roots evolving. What I query is the concept of formal legislative statutory institutions as the alternative and the only model to devolution as an alternative to regionalism.

  Q615  Alison Seabeck: What about the role of the RDAs therefore in reducing inequalities between regions? Are they not actually competing with each other and therefore how do they ensure that there is a much more level playing field and that some of the inequalities that currently exist are ironed out?

  Mr Leslie: There is a lesser spotted PSA2, Public Service Agreement 2, which many people often overlook, which is one of the tougher public service agreements that the Government has set out, and it gives a lot of that challenge to the regional development agencies, which is to narrow the rate of growth between the fastest and less fast areas of the country. That is a big job and it requires serious effort. I would be very worried if that target were to be reduced or diminished. That really is needed much more. It does mean different parts of the country shouting for their own corners. I do not think that is a bad thing. Having a bit more energy and enthusiasm to persuade inward investment to come in, whatever it takes, is a good thing. That is another reason why a regional approach still has a lot of legs to it.

  Q616  Alison Seabeck: Your pamphlet says that it is vital we ensure RDAs are given the freedoms that encourage new and innovative ways of working and confidence in the people they serve, and this means looking at how best to give clarity to who is responsible for their work. What does it mean? What is your evidence that the general public are exercised about this particular issue, or is it just elected authorities and elected members that are exercised about this?

  Mr Leslie: I would not claim that there is massive public excitement about regionalism. A lot of it is the hard-wiring bits of governance and management within the public service between national government and local government. But it is a vital bit of the picture, for economy of scale reasons, inter-city working, the specialist investment that you need. All of these reasons drive a regional approach which you cannot do without.

  Q617  Alison Seabeck: RDAs are seen as not accountable, something you touched on earlier, and the inter-relationship between regional assemblies and RDAs. In producing your pamphlet, what evidence did you get that RDAs are not being scrutinised or are not responding to scrutiny issues raised by regional assemblies? Certainly, we had evidence from the South West that they really felt that some of the things they were putting into the RDA were not being listened to. Is that something that came out when you were doing your research for the pamphlet? If so, how do you address it?

  Mr Leslie: There is quite good scrutiny that goes on via the regional assemblies of the RDAs but I think it needs a lot more.

  Q618  Alison Seabeck: It varies from region to region.

  Mr Leslie: It does vary from region to region.

  Q619  Alison Seabeck: Where would you say there is best practice? I am sorry to interrupt you.

  Mr Leslie: I know Yorkshire best. I think there is a relatively good dialogue that goes on there between the regional assembly and the RDA. The point I would like to make though is that I believe accountability has a certain number of prerequisites. First of all, I think you need the disinfectant of sunlight to come on through the media or through other forms of communication so that people know outside what is going on. People do not truly feel as though the public can access some of this sometimes quite esoteric regional debate. One of the ways around this—this is why we talked about local government, national Parliament as the two primary poles—local leaders should take a stronger role in the scrutiny process, but national Parliament should take a much stronger role too.

  Alison Seabeck: I think we are coming to that later.


 
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