Memorandum submitted by the West Midlands
Regional Forum of Leaders
INTRODUCTION
Following the publication of the Sub National
Review we have formed a Regional Forum of Leaders in the West
Midlands. This forum currently comprises the Local Authority Leaders
of 18 of the region's local authorities from all of the tiers
of Local Government. The forum has been meeting to discuss how
best to work together to address the social and economic challenges
that we face in the West Midlands. This response sets out the
views of this group of elected members.
RESPONSE
Publication of the Sub-National Review (SNR)
of economic development and regeneration in July 2007 heralded
a new era of collaboration between Regional Development Agencies
(RDA) and local government. In the West Midlands this builds on
a history of partnership working between Advantage West Midlands
(AWM) and Local Government, the close alignment between the West
Midlands Economic Strategy and Regional Spatial Strategy bears
testament to this and provides a very secure foundation upon which
to develop the Single Integrated Regional Strategy. The West Midlands
response to the SNR consultation document underlines the commitments
local government and AWM have made together to close the £10
bn output gap. Success for the region can only be achieved if
we work together in partnership and with Government and align
our resource base towards a shared agenda. Collective ownership
of both the challenges and the solutions will be essential if
we are to secure real progress towards closing the output gap.
Local government in the West Midlands is firmly
of the view that the right spatial level to deliver the majority
of public services with and for communities, people and business
is at the local level. Depending on the nature of communities
and the services to be provided, local may refer to district level,
but in respect to economic development and regeneration is most
likely to refer to the local strategic partnerships led by upper
tier authorities, or groups of local authorities. However we acknowledge
that Government has put in place a regional infrastructure to
support some elements of national policy development and delivery.
This is supported where it represents a devolution of policy making
and resource from Government but is absolutely opposed where there
is a "hoovering" up of powers and resource from local
government.
Where Government has regionalised policy and
funding streams, local government in the West Midlands has sought
to make it work effectively for local communities, people and
business. Thus local government in the West Midlands has put in
place arrangements to support local authorities in the West Midlands
as a whole for many years not least because of the leadership
role in respect to regional planning; which although now a statutory
duty of Assemblies via the Regional Spatial Strategy, remains
dependent on the expertise within local government for policy
development, implementation and democratic oversight.
We acknowledge that in certain circumstances the
regional level can be effective for coordinating resource, investment
and effort to implement economic development and regeneration.
In such circumstances we aim to ensure that regional level coordination
can aggregate and support the impacts of local authority actions;
ensure the greater effectiveness of the spending of Government
departments and agencies in the region; prioritise regeneration
activities; and respond to economic shocks such as the closure
of MG Rover or last summer's flooding.
In addition we have sought to engage strategically
through regional arrangements to inform and influence the development
of the Regional Economic Strategy, the design of Business Link,
in the activities of regional partnerships/boards (eg the Regional
Skills Partnership, Enterprise Board) and through sub regional
arrangements as the Regeneration Zones.
SNR is built on the premise that regions have
very tangible commonalities of geography, issues, problems and
solutions. We acknowledge that regions can offer an appropriate
spatial level for policy development and intervention in relation
to economic regeneration and development, but only where it is
complemented, as it is in the West Midlands with strong local
levels of intervention. As a region the West Midlands also has
strong links with neighbouring regions/countries though strategic
alliances such as the Memorandum of Understanding between the
Welsh Assembly Government and the West Midlands Regional Assembly
and work with the East Midlands and South East to secure enhanced
freight access to ports. Individual or groups of local authorities
also work cross boundary issues eg Staffordshire and Derbyshire
County Councils
In the West Midlands there has been a high level
of support from both local government and business bodies to the
SNR proposal of a Single Integrated Regional Strategy. While the
National Audit Office identified that the close alignment of the
Regional Economic and Regional Spatial Strategies is one of the
region's strengths it must make sense to ensure that the two are
entirely consistent in one strategy, creating the conditions for
economic growth across the region and locally.
The SNR provides for RDAs to delegate funding
to individual or groups of local authorities and others to achieve
economic outcomes in line with the regional strategy and local
priorities. We believe that the balance of the RDAs' single pot
must be in favour of local delivery via local authorities (or
groups of) to secure maximum impact and value for money. We have
had early and productive discussions about how this will be implemented
via a series of programmes set within a context of investment
planning -so that local and other appropriate resources can be
combined with those from AWM for greatest effect. We are concerned
that Government's own financial and accountability arrangements
as currently framed may inhibit the levels of delegation we believe
are possible and desirable, our Joint Strategy and Investment
Board would welcome further dialogue with Government to explore
the specific issues involved.
The strategic involvement of local government
in shaping and delivering the Single Integrated Regional Strategy
is vital. The Regional Forum of Leaders is working with AWM and
regional partners to develop a Joint Strategy and Investment Board,
this will be the body which will take responsibility for setting
the vision and direction of travel for the West Midlands, strategic
management of Single Integrated Regional Strategy including its
development sign-off and delivery, democratic overview, alignment
of regional partner delivery and investment strategies and external
liaison with other regions and Ministers.
The accountability of RDAs and AWM in particular
to local communities and partners has long been a concern to local
government in the West Midlands. We believe that SNR must facilitate
a new and different model to be developed which will put local
government very much in the driving seat. However we are also
firmly of the belief that local government should have a responsibility
to secure greater accountability for other Government agencies
and bodies which have a significant impact on the economic performance
of the region, such as Highways Agency and Environment Agency.
We require the flexibility to design appropriate accountability
arrangements that work for the West Midlands, which secure an
appropriate level of democratic oversight but which do not stifle
our collective ability as a region to be responsive and proactive
in times of economic down turn.
19 September 2008
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