Devolution white paper risks growing nowhere

This article orignally appeared in the Local Government Chronicle.

The growth of England’s economy is at the heart of the government’s vision for devolution. But this is a missed opportunity for Labour to widen the remit of devolution: to see it as not only a chance to rebuild trust in democracy but take a more radical approach to economic change – change that rewires our economic system so that we are less focused on simply increasing the rate of GDP for UK plc and more on increasing the flow, circulation and ownership of wealth in our places.

Whilst more organized than the previous government’s approach, the essential subtext of English devolution remains intact: Westminster will hand over power and resources to mayors – as long as they enlist their regions in the battle to ‘relight the fire’ of GDP growth for UK plc.

I’ve long been a fan of devolution because I think it is better for democracy. Bringing powers and resources closer to where we live means that the decisions about fundamentals of life can be made by elected officials alongside citizens, in the interests of place. It also creates the space for people to challenge questions of economic distribution and to hold politicians to account.

It doesn’t necessarily make the decisions easier but it has the potential to make it a more meaningful process even when we disagree with the outcome.

I’m also a fan of smaller geographies. Whilst I can see the benefits of making strategic decisions across larger geographies – particularly when it comes to energy and transport, I also think that having worked in local government, smaller institutions have tremendous advantages which are seldom acknowledged. For example, the ability to move quickly in a crisis, the proximity to build relationships internally and with partners, and the scale to be visible and responsive at a neighbourhood level.

Freedom to diverge

Arguably creating spaces at the local level for meaningful dialogue given the challenges we face is more important than ever. We live in times when public dissatisfaction with politics at an all time high and we have unelected tech barons stirring up the far right.

Mayors are compelled to use their new powers and resources to drive economic growth through the traditional routes approved by Treasury

The white paper could have been a reset moment to reconnect with people across the regions of England. Many of these people are turning to parties like Reform because they feel shafted by an economic system which is driving low wages, high business rates, insecurity and failing public service, including in areas where there is economic growth. Devolution should have been about giving mayors, MPs and local leaders the freedom to diverge from this economic system so as to better serve the public interest of their place.

Instead mayors are compelled to use their new powers and resources to drive economic growth through the traditional routes approved by Treasury. Attracting private investment, further deregulation of key levers such as planning and greater so-called efficiency through larger units of government and the abolition of district councils. In effect, continuing to perpetuate the economic system that is driving people away from politics and of course, from the Labour party.

To its credit, the paper sets out with greater clarity than ever before a framework for devolution in England and makes sensible proposals to overcome some of the very real challenges of geography. It also recognizes the importance of linking future proposals on devolution up with the wider system of governance – particularly the integrated care systems in the NHS, which are required through their fourth objectives to prioritize economic and social development.

However, its reliance upon managerialism and traditional economic thinking means that it overlooks the importance of how people feel about a place and whether they benefit from the wealth that is created. It is this feeling and sense of identity and belonging that actively shapes and informs people’s engagement with politics. This includes how they might vote in a future election.

David Cameron’s government made the same mistake when it came to leaving the European Union. They tried to convince people to stay with arguments of economic efficiency and growth but in the end, people’s decisions were based on an emotional response to the EU.

Complex and expensive

Devolution is not simply about redrawing boundaries on a map. It is about identity and connecting political decision making to the emotional importance of place for the businesses, people and organisations that live and work there. That was clear when New Labour devolved power to Wales, Scotland and Northern Ireland. This new governance was meaningful to people because it gave them a greater sense of agency.

Unintended consequences may include larger contracts leading to higher levels of economic extraction

This is why the reliance of devolution to directly elected mayors and the abolition of districts is potentially so problematic. Whilst polling may suggest that directly elected mayors are more recognizable than MPs and other local leaders, this is no guarantee that people will vote for them. Indeed, turnout at mayoral combined authority elections remains pitiful: for example in Greater Manchester, with arguably one of the most recognizable and longest serving mayors in the country, it was only 32% – hardly a ringing endorsement of mayors.

Local government reorganization, including the abolition of districts, sounds straightforward in principle but in practice is a highly complex and expensive process as areas such as Cornwall, Cumbria and North Yorkshire can attest. And there is a tension between the government’s objective to oversee a new era of insourcing with the desire for efficiencies of scale in governance, particularly in areas such as adult and social care. Unintended consequences may include larger contracts leading to higher levels of economic extraction.

Devolution for England remains a work in progress. It was always going to be more challenging than in the devolved nations because it is not one country but a rich patchwork of different identities and economic landscapes. A chaos to be celebrated – not managed out of existence.

With this new white paper, we are at a crucial juncture in England’s devolution journey where we need to consider how new structures can help us address the economic and social challenges that are disconnecting people from politics. We need to explore how devolution can help us address economic inequality in ways which are not simply about relying on national growth but by increasing the flow, circulation and ownership of wealth. This must be done in tandem with strengthening democracy, which means creating places where people feel that they have agency and a sense of control over their own economic future. Otherwise, we’re just growing nowhere.