Britain's manufacturers are today calling on the next Government
to make rolling out Devolution Deals across the whole of England
a key local growth priority in order to bring the benefits of
devolution to areas currently left behind.
This should involve a more structured process which pulls
together existing local authority and devolution legislation into
one powerful devolution act, and include the introduction of US
style ‘bond referendums' to raise funds for regional
infrastructure projects which are struggling to get national
funding.
The call was made by Make UK in a new report, “For
or against? The case for further devolution,”which shows
that manufacturers have felt the transformational effect of
devolution deals, and have benefitted greatly from existing
devolution funding. However, companies felt that longer-term
devolution plans would deliver more effective and lasting results
for local business and growth.
Nearly 30% of manufacturers said that the area of skills should
be further devolved to local decision makers to make sure the
right training and skills were being prioritised while businesses
also want to see a greater emphasis on local infrastructure
development to help their businesses perform better. Almost a
quarter (21%) of companies thought that longer-term devolution
plans would deliver better results. Fiscal devolution remains
lower on the agenda for manufacturers, but there is an increased
desire to have the ability to fund locally important projects
without the need for central government funding.
One recommendation from this report is for devolved areas in the
UK to have the ability to hold referendums to raise money for
specific projects. These “Bond Referendums” are commonplace
across individual states in the US, where local ballots take
place to allow voters to prioritise spending on a specific local
priority without the federal treasury having to donate resources.
These could be used to fund capital equipment for local FE
colleges and make training more relevant and up-to-date. There is
also a wealth of local support for an extension of Manchester's
successful tram network, but funding is proving difficult. A
local bond would allow funds to be raised for investment without
recourse to Westminster.
Faye Skelton, Head of Policy Make UK said:
“Devolution has been an obvious success story for manufacturers
and should now be extended to bring the existing benefits to
those areas of England which risk being left behind. This must
start with a more streamlined and structured process which brings
together the powers of Local Authorities and Devolution Deals
into one Devolution Act.
“As part of this, Government should introduce US style ‘bond
referendums' which would hand powers to Mayoral Regions to raise
funds locally for regional infrastructure projects without
having to go cap in hand to Westminster."
There is, however, still some awareness work of devolution and
its benefits to be done as some 46% of manufacturers were unsure
if their companies were located in an area with a devolution
deal.
Read the full report here: For or Against? The Case
for Further Devolution | Make UK
