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This article discusses the importance of cities in economic growth and highlights the need for a 'Southern Powerhouse' in Southern England. It explores the challenges faced by the region and the potential benefits of devolution, local leadership, and greater control over skills, transport, planning, and housing.
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Why not a ‘Southern Powerhouse'? John Denham Chair of the Advisory Board denhamj@southernpolicycentre.co.uk
The Importance of Cities in Economic Growth • Innovation and dynamism in the global economy comes from large metropolitan areas • High population density • Critical mass of skills • Good connectivity • Excellence in HE and innovation • Local leadership
Making the Best Use of Public Money • Local authority funding fell by 37% over the last four years. • NHS spending frozen. • More cuts to come. • Inefficiencies at the joins between different services.
What about Southern England? Source: IFS 2015
What about Southern England? (2) Number of clients receiving adult social services in Central Southern England, 2009/10 to 2013/14 Source: Southern Policy Centre Central Southern England: Bournemouth, Bracknell Forest, Dorset, Hampshire, Isle of Wight, Oxfordshire, Poole, Portsmouth, Reading, Slough, Southampton, Swindon, West Berkshire, West Sussex, Wiltshire, Windsor & Maidenhead, Wokingham
Towards a Southern Powerhouse • A large population with the critical mass of skills that attracts investment • Good connectivity, so that people can meet and work together • Excellence in Higher Education • Local leadership capable of pushing through the changes that are needed
How Devolution is Being Managed • Combined local authorities • Simplified decision-making and accountability • Elected mayors • Deals between the combined authority and the government.
What's on Offer? Greater Manchester • A consolidated, multi-year transport budget. • Responsibility for franchised bus services, railway stations and 'smart ticketing' • Skills and training: • -Power to restructure Further Education • -Control over Apprenticeship Grant for Employers • -Influence over the Work Programme • Devolved business support budgets
What's on Offer? Greater Manchester (2) • Statutory spatial strategy. • ‘Earnback‘- borrow against future additional increase in business rates base to fund key infrastructure and capital projects. • Housing Investment Fund of £300million over 10 years. • Integration of health and social care
What's on Offer? The Best of the Rest • Retention of 100% of business rate growth in Enterprise Areas for reinvestment. • Independent borrowing and investment funds to deliver LEP priorities • Greater control over the Homes and Communities Agency's investment plans. • Power to 'unblock' areas of public land for development • Control of central government finance streams to establish training and business support centres tailored to local needs.
The Challenge- Some Parts of our Region are Less Strong Economically
Skills – Greater Control over FE and Training Funds for FE (16-19) £ p.a. - based on 2014/15 funding allocations: Funds for FE (19+) £million p.a. - based on 2014/15 funding allocations: Apprenticeship Grant for Employers Scheme (16-24), estimated annual budget based on previous payments made (Feb 2012- Jan 2015) and the Greater Manchester Settlement:
Re-investment Through Business Rate Retention and ‘Earn Back' Deals Increase in business rate income, £, 2011/12-2015/16:
Let's be Ambitious • Transport : • -smart ticketing, more control over road and rail investment decisions • -improve road and rail access to ports and airports, reduce delays and bottlenecks on strategic corridors and improve cross-country routes. • - A chance to bid for specific projects (e.g. the Greater Bristol Metro). • Planning: • - Strategic planning powers • - Discretionary 'use it or lose it' powers • - Ensure Government plays its part in releasing publically-owned land for development • Housing: • - Greater control over HCA investment funds • - Changes to the Housing Revenue Account borrowing cap to maximise house building potential. • Business support. Greater control over support from the Business Growth Service, tailored services and export support. • Broadband strategy
But Let's be Realistic- This is a Journey
What would make most difference to your business? • Greater control over skills: • - shaping Further Education, Adult Skills Training and Apprenticeships • - being at the heart of school – business engagement • The power to harness the growth in your area to produce investment funds for infrastructure and business support. • Greater influence over strategic transport decisions and funds, both road and rail infrastructure. • More power over planning and spatial strategy, with further powers to encourage development. • Greater control over housing investment funds, with borrowing powers for future investment. • Greater control of business support funds and strategy – tailored the to the needs of local business