Memorandum from Local Government Yorkshire and Humber (LGYH) (YH 08)

 

 

Executive Summary of Evidence

 

i. LGYH and YF have establish a national model of joint-working in the region to take forward the Sub National Review (SNR) in Yorkshire and the Humber and deliver the new, single Integrated Regional Strategy (IRS). We therefore look forward to building on our collaborative working in the future, as the IRS is developed and implemented.

 

ii. We welcome YF's stated "culture change" and commitment in its most recent Corporate Plan to work more closely with local authorities in the region to deliver jointly agreed priorities. This culture change will now need to be reinforced by corresponding structural and resourcing chance.

 

iii. Regional scrutiny carried out on the role of YF to date (by the Yorkshire & Humber Assembly) has highlighted the need for YF to develop a clear understanding of the region's diversity in terms of its communities, partners, population, geography and localities. The new regional arrangements provide an opportunity for YF to deliver against these recommendations, in partnership with local authorities as the democratic leaders of their communities and places.

 

iv. With regard to the IRS, which will replace YF's Regional Economic Strategy (RES) in due course, for this to have credibility and be deliverable it must be built from local priorities. YF now need to ensure that their commitment to working with local government reflects this objective. It is questionable how effective the preparation of the RES was in this regard and the new IRS must be rooted in the impacts on places/localities in the region and not impose top-down priorities, targets or ways of working on local authorities.

 

v. Further devolution of funding, influence and power, from the regional level to local authorities, still needs to take place in order to build the strong local government sector that is needed to deliver genuine improvements.

 

vi. YF also need to explicitly recognise the role of strong sub/City Regions as the key catalysts and powerhouses for sustainable economic growth, as promoted by Government, and making the most of the opportunities in the region presented by the Leeds City Region 'Economic Prosperity Board' pathfinder and other developing sub-regional structures. This will require support in building capacity and expertise at this City-region level.

 

vii. With respect to YF's role in promoting a low-carbon economy and addressing climate change, the 'Climate Change Plan' for Yorkshire and the Humber, launched on 13 March, now sets the agenda for this work (see www.yourclimate.org), and YF has a leading role on the Plan's priorities around the business sector, energy and future strategy development and monitoring. While the new regional/SNR arrangements with respect to climate change (and sustainability more widely) are embedded it will be important to ensure YF maintain the pace of delivery, working in full partnership with local authorities and city regions.

 

Introduction

 

1. LGYH and Yorkshire Forward have worked to forge a collaborative relationship over recent years, and have set out innovative new arrangements for strategic joint working at the regional level that Government has recognised as a model for the rest of the country.

 

2. As we move to the implementation phase of the arrangements there are significant challenges ahead in ensuring the principles we have agreed are delivered. These principles will ensure that future priorities and activities in the region are built from the local through city/sub region level, rather than a top-down approach which has previously been adopted with the development of regional strategies, including the Regional Economic Strategy (RES).

 

3. The region is extremely diverse in terms of its population, economy, geography, towns and cities; and for regional strategies to have real significance, it is paramount that they take full cognisance of this diversity. It is questionable how effective this has been in the previous regional strategies.

 

4. The focus of the RES has been directed to maximising Gross Value Added (GVA) and productivity in the region, as we move forward we need to ensure the quality of life and social justice issues are recognised as even more important for the future.

 

5. It is the belief of local government in Yorkshire and Humber that regional strategies cannot be successful if they are not directly connected with places and overall delivery in localities. This is of particular significance given the current economic difficulties and the differing effects the recession has had on the unique economies at a local and city/sub region level.

 

6. For the Integrated Regional Strategy (IRS) to have credibility and to be understood by partners, it has to be rooted in local and city/sub region priorities and "owned" by local government. Local authorities also need to see demonstrable "value added" at the regional tier and, therefore, devolution of greater influence from the regional to the local and city/sub region level is critical.

 

7. Integration of activities occurs in places, and the key places in the region are the three city regions of Leeds, Sheffield, Hull and Humber Ports, and the sub-region of York and North Yorkshire. Each of these sub-regions have a key role to play in the development of the IRS and will provide the "building blocks" of the strategy, with regional activities and priorities limited to those issues which cannot be undertaken at a city/sub region level; or, as previously stated, where regional activities can add real and measurable value, such as climate change and major transport schemes which transverse city region boundaries. In addition, there needs to be full flexibility in our approach which takes account of the economic connections of Manchester and Leeds and the complexity of the Sheffield City Region which crosses regional boundaries.

 

8. The Government has acknowledged the key role city regions have to play in economic growth through the Economic Prosperity Board pilots of Leeds and Manchester and real devolution will occur from central government through to local government partnerships. We fully support this approach and seek further devolution of both powers and funding which will achieve improved delivery, greater integration, improved outcomes from places and communities across the region and increased democratic accountability. Additionally, such devolution will support the Government's drive for increased efficiencies and improved delivery in public sector services.

 

9. These issues pose cultural, structural and resourcing issues for Yorkshire Forward (YF). It has commenced a process of culture change to recognise the need for local government to be at the core of any strategic response to issues in the region - be it the local economy, transport, housing and regeneration, worklessness, or other "social/community" priorities. For this to be successful the pace of change will have to be swift to ensure YF responds effectively to the new arrangements in the region, the development of the IRS, the pathfinder status of Leeds City Region and aspirations of the other city regions.

 

10. Structural and resourcing changes will need to be implemented concurrent with the cultural change to ensure improved delivery and efficiencies are achieved. This will be a considerable challenge given the current economic climate and focus of activities. It is paramount that increased flexibility and devolution of funding and decision-making is achieved to ensure local government can respond effectively to the diverse needs of their communities and businesses in order to minimise the effects of the recession.

 

11. Such devolution supports the place-shaping role of local government, as advocated by central government, in leading their places, communities and partners; whether it be at a district, city/sub region or regional level.

 

12. LGYH has welcomed the refocusing of Yorkshire Forward's activities in their latest Corporate Strategy, which indicates their priorities on responding to the current economic downturn and its recognition of the need for a corporate culture change to work in genuine partnership with local government. This change must acknowledge fully the need for the IRS to be "built from the local", ensuring local government is able to steer strategic investment across the region, reflecting the broad definition of "sustainable economic growth" characterised by local councils' community strategies. The real test in the coming year will, therefore, be the extent to which Yorkshire Forward can deliver on its promise of culture change and we look forward to working with them on this.

 

13. It is important to highlight the particular need for Yorkshire Forward to work proactively with the four city/sub-regions and for their significant resources to be directed to build city/sub regional capacity. They must redeploy resources to the city/sub regions to support a sustainable and successful region, with environmental enhancements and social justice given equal weight to the previous, much narrower focus on economic productivity and "gross-value added".

 

14. With the changing city region landscape and increased devolution, which the Government has indicated its commitment to through the pathfinder status of Manchester and Leeds city regions, there are significant implications for the long term role of Yorkshire Forward.

Annex A - Previous Regional Scrutiny by the Yorkshire & Humber Assembly

 

Background

 

1. Regional scrutiny was carried out by the Yorkshire and Humber Assembly (YHA) since 2002. As of 1^st April 2009, the YHA has closed for business and with it their regional scrutiny function has ceased. However it is important to highlight to this Inquiry the lessons that have been learnt by regional scrutiny on the work of Yorkshire Forward (YF) to date.

 

2. Local Government Yorkshire and Humber (LGYH) are currently investigating possible mechanisms of providing YF accountability through local authority scrutiny functions, emphasising the important role that local scrutiny has to play.

 

The Regional Scrutiny Function of the YHA

 

3. The Regional Development Act (1998) made provision for Regional Chambers (as was the YHA) to carry out the function of regional scrutiny, which was concentrated on Yorkshire Forward functions and the delivery of the Regional Economic Strategy (RES). Over the last 8 years, whilst the process has evolved, the objectives of regional scrutiny have broadly remained the same, namely:

 

· To examine YF's responsibility in delivering its components of the RES (scrutinising the delivery of outcomes)

· To act as a critical friend to YF in terms of the way in which it translates the objectives of the RES into specific policies (scrutinising the policy development process)

 

4. The process by which the YHA carried out this role involved the establishment of a Regional Scrutiny Board, made up of Assembly Members. The Board consisted of elected councillors and wider partners, which reported back to the full Assembly at the end of each review.

 

5. It is also important to note that an independent review of the regional scrutiny function itself has been carried out by the Centre for Public Scrutiny (CfPS). This report evaluates the progress that regional scrutiny has made in the Yorkshire and Humber region and provides some key recommendations for the future. The CfPS report is still in its final clearance stages and a full copy will be forwarded to the Committee as soon as it is ready

 

 

Regional Scrutiny findings

 

7. Each YHA scrutiny review generated a number of specific recommendations for YF; and the action plans prepared by YF in response were monitored for a year following the review. The information below provides and snapshot of each review's findings, with full details available at www.yhassembly.gov.uk/Our%20Work/Scrutiny:

 

· New business start ups (Autumn 2002) - At the time of the review YF were the only region in the UK to show a consistent year on year improvement in entrepreneurial activity. Following the review Yorkshire Forward, Business Links and local learning and skills councils came together to develop 'Better deal for Business' to achieve radical improvement in business support services.

 

· The impact of the RES on social inclusion (Spring 2003) - In response to the review YF along with YHA and GOYH agreed a joint vision on social inclusions in the region.

 

· Public sector funding (January 2004) - The review highlighted the need for better alignment of public sector funds. YF addressed much of the recommendations through the introduction of the investment planning process.

 

· The role of cities in the region's economy (June 2004) - As a result of the review representatives of cities and regional bodies worked together to develop an agreed action plan and the findings of the review were addressed as part of the city region developments in Sheffield, Hull and Humber Ports, and Leeds.

 

· Market towns (August 2004) - the review resulted in YF increasing their focus on existing rural partnerships to develop activity and increased the alignment with market towns and their hinterlands.

 

· Clusters Policy (January 2005) - In response to the review YF established a 'Skills for Key Clusters' initiative and provided investment of £9m for businesses that buy and sell from each other.

 

· Regional marketing and inward investment (June 2005) - This review resulted in YF undertaking a full review of their inward investment operation and the implementation of a more commercial approach to overseas investment.

 

· Skills Policy (March 2006) - A new Regional Skills Partnership Board was established in April 2006 in line with the recommendations in this Review and influenced the 'Train to Gain' programme launch across the region.

 

· Northern Way (June 2006) - The review resulted in YF activity to identify their work and priorities to partners and increase their knowledge and understanding of cross-regional working. It also resulted in increased awareness of the economic benefits that the Northern Way could add to the region's transport infrastructure.

 

· Innovation (February 2007) - As a result of this review, YF and partners developed the Regional Innovation Strategy and implementation plan which aimed to stimulate a culture of innovation to underpin sustainable economic growth and increase the levels of innovation business investment (a 10 year RES target).

 

· Employment (June 2007) - One element of the review looked at ways in which the skills and experience of older workers could be utilised in training and mentoring new recruits. As a result YF committed 2 projects within the West Yorkshire Skills Programme specifically to undertake training with older workers to establish them as trainers in sectors where there was a need for additional training capacity and issues of an ageing workforce. This included a construction project operating in Leeds and a Skills Transfer project in the Advanced Engineering sector operating across West Yorkshire.

 

· Rural economy (February 2008) - The review highlighted the need to ensure that the delivery of Information and Diagnostic and Brokerage services takes account of the needs of existing rural businesses, and provide tailored and specialist support as required. As a result, YF ensured that the service would continue outreach work in rural communities to engage with pre-start potential businesses.

 

· Meeting the climate change challenge (July 2008) - In response to the review YF agreed that they would develop the Integrated Regional Strategy based on the principles of sustainable economic development and would prioritise climate change within strategy development.

 

· Investment planning (February 2009) - The review identified that a formal evaluation be undertaken of the activities funded through sub-regional investment planning to assess the impact that activities have had on the sub-regions. YF responded by agreeing to look at developing a monitoring and evaluation process for Geographic Programmes and looking at how it communicates with public sector bodies.

 

Common themes across the Scrutiny Reviews

 

8. A desktop analysis of the first 10 scrutiny reviews was conducted in 2006. The analysis identified areas of common ground in terms of findings and recommendations, highlighting what improvements were needed to improve the delivery of the RES.

 

9. The report emphasised the need for YF to fully engage with its partners to encourage ownership, gain support and ensure collaborative working to achieve regional objectives. The analysis also highlighted that many of the reviews identified a need for YF to clarify its role and responsibilities and further understand the diversity of the region and different needs of sub-regions, local communities and particular sectors.

 

10. Some of the common themes identified for YF were as follows:

 

· Need to establish clear and robust qualitative and quantitative indicators to help in providing further understanding and inform the decision making process

· Need to further develop communication mechanisms to provide understanding and clarity to stakeholders

· Need for greater monitoring and evaluation

· Need to use conclusions from scrutiny reviews to inform and shape future activity

· Need further clarification and explanation on some of the working arrangements to tackle shared agendas (national, regional, sub-regional and local)

· Need for improved partnership working to ensure alignment of strategies, improved working relationships and communication

· Need for greater consideration and appraisal of sustainability in scrutiny reviews, actions plans, strategy, policy and decision making

 

Meeting the Climate Change Challenge in the Region

 

11. The Committee has called in particular for evidence on the issue of YF's role in promoting a low-carbon economy and addressing climate change issues in the region. Of direct relevance to this is the 2008 'Meeting the Climate Change Challenge' YHA scrutiny review, which examined the following 3 themes:

 

· climate change targets and regional performance

· balancing climate change action and economic growth

· adapting to climate change

 

12. The review presented its findings in September 2008 and concluded that YF had exceeded the remit that it has been given by the Government on responding to the threats that climate change pose to the region's economy and were praised by respondents on its intentions to develop innovative projects that will reduce greenhouse gas emissions in the region.

 

13. Although the review recognised that YF was only one of many organisations addressing these issues it did nevertheless recommend a number of improvements.

 

14. The review identified that the data on the carbon savings made from the projects across the region was insufficiently gathered and communicated. It also identified that that there was a need for YF to identify the remedial activities that are needed to ensure the greenhouse gas emissions reduction target in the RES is met. It was explained that although the RES target for this is ambitious, the Board were concerned that emerging UK policy and legislation will stretch carbon emissions reduction targets even further and so failure to meet this target is not an option.

 

15. There was a keen interest amongst respondents in YF investing more in newer and bigger environmental and renewable technologies to reduce use of fossil fuel. There was also a desire to see YF investment to de-couple economic growth from carbon emissions, ensuring that economic growth is not obtained to the detriment of the environment.

 

16. Yorkshire Forward has responded to this review by agreeing to an action plan which includes:

 

· Developing the Integrated Regional Strategy based on the principles of sustainable economic growth, prioritising climate change within strategy development and aims to reduce greenhouse gas emissions from economic growth through a range of activities.

· Delivering a low carbon economy marketing strategy in a way that ensures effective communication on climate change aims and interventions

· Monitoring progress against identified output targets which reflect policy priorities, including wider and complimentary indicators on sustainable economic growth.

· Taking a regional lead on implementing the National Waste Strategy.

· Publishing and promoting a document raising awareness of YF's approach to sustainable construction.

· Developing and implement the recommendations of research on regional carbon currency as appropriate.

 

17. The full scrutiny report can be accessed at www.yhassembly.gov.uk/Our%20Work/Scrutiny/Past%20Reviews/Climate%20Change%20Scrutiny.

 

18. Finally, it is worth noting that Yorkshire Forward has been an active partner in developing the 'Climate Change Plan' for Yorkshire and the Humber, launched on 13 March 2009 (see www.yourclimate.org). By leading specifically on key priorities in the plan around the business sector, energy and future strategy development and monitoring, Yorkshire Forward will continue to have a critical role in the successful implementation of the Plan, through their active membership of the Regional Climate Change Partnership. While new regional/SNR arrangements with respect to climate change (and sustainability more widely) are embedded it will be important to ensure the pace of delivery is maintained.

 

 

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