A City Charter for London

1. A City Charter for London Mark Kleinman LSE London Seminar March 2nd 2009

2. 1. The Governance Question

3. GOVERNMENT OR GOVERNANCE? • Govern: rule with authority. Governance: the act, manner, function of governing • Be strategic…The core strategy focus on steering, not rowing – making policy and setting direction rather than producing services (Osborne 1999)

4. Steering? • I asked, 'How do you steer it'? Somebody said, 'Shut up and go down'. I asked again. And he said, 'Shut up and go down'. Jim Shea Jr, U.S. ‘skeleton bob’ Olympian

5. The shift to governance is at all levels of the state… • National states have lost some exclusivity and sovereignty • Growth of supra-national bodies, e.g. European Union, NAFTA, WTO • Loss of legitimacy/authority of politicians and some institutions • But the death of the nation-state much exaggerated. In fact, more nations today than 20 years ago.

6. …including the management of cities • reducedauthority of the state, both national and local • participation of actors, both private and public • networks as well as hierarchies and markets • response to fragmentation - recognition of inter-dependence • importance of urbanleadership- both institutional and personal

7. London has had four systems of government in the last 40 years • 1889-1965: London County Council – 4.5 millions. Fabianism in action • 1965-1986: Greater London Council – 8 million. The metropolitan region • 1986-2000: GLC abolition: an experiment in ‘network governance’ • 2000- The Greater London Authority – strategic governance; London’s first Mayor

8. The Greater London Authority • From 1986-2000. London governed by the boroughs (32 +1), central government and ad hoc bodies. • 2000: directly elected mayor and separately elected assembly of 25 members, each for a term of four years. • The GLA represents a new form of governance in Britain, with clear separation of powers between the mayor and assembly. • The mayor is responsible for strategies for transport, planning, the environment, economic development and culture.

9. The Mayor sets the budget for the GLA and the four functional bodies that make up the GLA ‘family’. He appoints most of the members of these bodies.

10. 2007 GLA Act: additional powers • Investment in new affordable housing: London housing strategy, chairs London HCA board … • Planning: can ‘call in’ • Health inequalities and climate change responsibilities devolved • London Waste & recycling Board – but not Mayoral Waste authority • Chairs LSEB, can chair or appoint chair of MPA • City Hall staff appointed by CX not Assembly

11. 2008 Mayoral election • Increased turnout (45%) and a‘Million vote mandate’ • Turnout increase highest in outer London • Conservative strategy to target outer boroughs: “Ken Livingstone has neglected London's suburbs"

12. The Blue Doughnut

13. Mayor is part of a system of ‘network governance’ • GLA ‘family’ spends around £12 billion annually. . Boroughs spend around £13 billion p.a. Total public sector expenditure in excess of £45 billion. ‘Core’ GLA employs around 600 staff. • The mayor has limited fiscal powers. Most of the money comes via Whitehall • Boroughs retain many powers. They are primarily responsible for service delivery. Mayor devises strategies, but needs boroughs and other agencies to implement • “However charismatic and forceful the Mayor is, London is really governed by a crowd of jostling political bodies, from borough councils to the City of London Corporation to the Olympic Delivery Authority, as competitive and labyrinthine as the City itself.” (Andy Beckett, The Guardian 9/12/08)

14. 2. What and Where is London?

15. The governance structure is always ‘wrong’ • Economic and political scales of cities are different.   • The urban economy functions over a large area such as a labour market or travel-to-work area • Hence the economic definition of the city is dynamic. • But city political boundaries are usually historically defined.

16. There are no clear rules for optimal city governance • Political identity is always more local than economic reality. • In most cities, there are arguments for changing the governance structure. • But the mismatch between economic reality and political identity means that this is difficult to achieve. • The question is not “what is the optimal structure?” but “what are the costs and benefits of change? ”

17. Is metropolitan government an economic necessity? • Consolidation argument: efficiencies of scale for larger units; provision of ‘local public goods’; prevention of urban sprawl • ‘Territorial Competition’: Functional Urban Regions require city-regional form of governance. Significant spillovers from growth promotion policies. • Requires leadership: dominant authority; ‘club’ of authorities; or partnership arrangements • More government units implies weaker leadership, higher transactions costs and less effective policies

18. The evidence is mixed • Carr and Feiock(1999): no evidence that consolidation in 9 US cases had impacts on economic growth. • Swanstrom (2001): little evidence that fragmentation harms economic growth • Cheshire: success stories in Strathclyde, Rennes, Nantes, Frankfurt associated with regional/local development policies. (But London performed better after GLC abolition!) • ‘Public choice’ school: multiple governments better reflect citizen preferences

19. A range of solutions are possible • Do nothing/create special districts • Annexation and consolidation • Federal two-tier structure • Voluntary co-operation (Goldsmith 2002)

20. Solutions can be inter-municipal or supra-municipal • UK was ‘supra-municipal’ – creation of GLC (1965) and six metro authorities (1974) – but then abolished in 1986 • In most European countries, inter-municipality more common: Greater Rotterdam abolished in 1985 and Met Corporation of Barcelona in 1987. Communautes Urbaines in France – indirect elections. (Lefevre 1998)

21. In the 1990s, return of the ‘Big Cities’ • Metropolitan government more in fashion in last 10 years – experiments in Italy, Spain, Germany, UK, Netherlands • Limited success – e.g. reform attempts in Rotterdam and Amsterdam rejected in referenda • London almost only European example of new (revived) metro government

22. Challenges for metropolitan governance • There are a range of choices about structure, but network governance and a ‘messy’ system are inevitable. • For the largest cities, even a metropolitan tier does not capture the whole of the economic city or FUR – the 100-mile city. • Economic logic and the competitiveness agenda suggests larger units are more effective. But citizens often identify with something much smaller.

23. London/Greater South-East Represents the administrative city Travel to work Represents the physical city Cambridge Milton Keynes Represents the travel-to-work area as an indication of the city-region Thames Gateway (opportunity) London Swindon Heathrow Airport Bournemouth Crawley/ Gatwick Southampton Brighton 23 10

24. The London city region: Advanced Producer Services information flows connect towns & cities at a global ‘mega-city-region’ scale. The mega-city region “is the fundamental urban reality of the early 21st century” (Sir Peter Hall) 24

25. 3. The London City Charter

26. “Working towards a City Charter for London” MoU June 2008 • Signed by Mayor and Chairman of London Councils • Principles: • Decisions as close to people as possible • Each tier of govt has unique contribution • Transparency, diversity, improvement, accountability • Actions: • Congress of Mayor + borough leaders, at least twice yearly • Delivery Board • Produce full city charter

27. What’s driving this? • Politics • Network Structure • Maturity of the London Governance System:

28. Other relevant examples… • New York City Charter: but it’s a statutory document, 340 pages • Toronto: e.g. Canada- Ontario-Toronto MoU on Immigration and Settlement • MAAs in other UK cities, and the Olympic 5-borough MAA in London

29. What will be in the City Charter? • Under discussion, but could cover: • Principles (building on the MoU) • Arrangements for Congress and a Charter Board • Protocols for key priorities of the Congress • Set the stage for next phase of devolution

30. What are the risks? • Economic risks: economic recession, tighter public sector budgets • Political risks: borough elections in 2010; general election in 2009 or 2010 • Bureaucratic risks: danger of ‘just another document’

31. What are the benefits? • Clearer, simpler, more transparent • Avoid duplication and things ‘falling in the gaps’ • Elected London leadership, not quangos • Acknowledges reality of both directly elected Mayor and network governance