From Make UK
Britain's manufacturers are today calling on the Government to
use its English Devolution White Paper to deliver meaningful
devolution across the country, giving priority to Industrial
Energy, skills and training, transport, housing and
infrastructure with local targeted funding based on business
needs.
A full review is urgently required to explore best practice is
existing devolved areas to inform the development of Labour's
promised new mayoral authorities to give business the tools they
need to succeed.
For now, there remains a central business scepticism of
on-the-ground effectiveness of mayors. Of those companies
currently operating within a Mayoral Combined Authority area, 62%
were favourable to more mayors. But when it came to delivery
results, just 10% felt their business needs had been met, with a
much more significant 71% saying it felt just the same as before.
This is in stark contrast to the devolution survey Make UK
carried out last year when 60% of companies said they had
directly benefited from devolution funds.
Issues cited include too many competing priorities (39%) and not
enough powers and funding from central Government (36%) as key
contributors to the unfavourable response, according to Make UK's
latest research. Business satisfaction across the board with
local decision making looks healthier. Some 66% of manufacturers
are happy with transport connections, 62% either very satisfied
or somewhat satisfied with digital connectivity and just under
half (47%) were satisfied with skills provision.
Half of manufacturers also felt that local government had a good
understanding of industry in the region and the majority
manufacturers (86%) knew how to communicate proactively with
their local government body. Companies also saw the benefits of
having a strong mayor working for a region, particularly in
attracting inward investment to their area and felt that mayors
were better able to influence infrastructure policy and
development, both transport and digital.
Innovation too was seen as positively fostered locally and Make
UK has long advocated for the development of designed “AI
Innovation Clusters” which can be used to promote growth and
adoption within manufacturing dense regions.
Half of manufacturers now feel that giving their regional mayor
full tax raising powers would be a good thing for their
businesses with 39% of businesses wishing to see greater access
to grant funding.
Unsurprisingly views differ hugely between companies within a
devolved authority and those who have never had access to a
mayor. For example, only 24% of manufacturers in any area felt
future devolution settlements should focus on delivering
exporting guidance. But 93% of those surveyed from Mayoral
Combined Authorities wanted to see export guidance included in
any future deal, with locally focused priorities key again here.
, Interim Head of Policy
Make UK said:
“Devolution has been an obvious success story in some areas for
manufacturers but clearly there is still a lot of work to be done
to realise its full potential. The English Devolution White Paper
will result in many new mayoral authorities being introduced
across England. Now is an opportune time to take stock and ensure
devolution is really working for business. It is essential that a
full root and branch review is undertaken at speed to ensure best
practice going forward as additional devolution is delivered by
Government across the UK.
“Specialist business panels should also be introduced so regional
authorities can draw on their industrial expertise. This should
be alongside an analysis of the cost benefits of fully devolving
tax collecting powers to new authorities. Aligning central
government grant funding to specific regional needs is also a
must if devolved areas are to truly succeed in delivering growth.
“But it is clear there is still much work to be done in raising
awareness on the benefits of devolution and the work already
being achieved by local mayors on the ground.”
Read the full report here: https://drive.google.com/drive/folders/1AWHPiE69_VjSwOjIlB-dj5rHlPzBm1Yl?usp=sharing
