Written evidence submitted by West Yorkshire Combined Authority [PDE 031]

1. Introduction

1.1              This evidence contained in this submission is on behalf of West Yorkshire Combined Authority (referred to herein as WYCA or the Combined Authority).

1.2              The Combined Authority and the Leeds City Region Enterprise Partnership (LEP), work in partnership with one another - and with local councils and business - to ensure everyone in our region benefits from a strong, successful economy and a modern accessible transport network.  WYCA also operates the Metro network of bus stations, travel centres and public transport information across West Yorkshire.

1.3              Although the Combined Authority and LEP are separate bodies, we have a shared vision for our region and a shared organisation that support us to deliver this.  The Leeds City Region (LCR) area is the current LEP boundaries and includes the five West Yorkshire districts of Bradford, Calderdale, Kirklees, the core city of Leeds, and Wakefield, plus Craven, Harrogate, Selby and York from North Yorkshire, as well as Barnsley from South Yorkshire.

1.4              The City Region contains over 125,000 local businesses has a GVA of circa £70bn p.a.  Our labour market is over 90% self-contained suggesting it is a significant functional economic market area.

1.5              We want our region to be recognised globally as a place with a strong, successful economy where everyone can build great businesses, careers and lives supported by world-class transport, housing and digital connectivity.

1.6  WYCA was established in 2014 and to date remains a non-Mayoral Combined Authority because a devolution deal has yet to be agreed with Government.  We however remain steadfast in our belief that only further devolution will give us the powers and money we need to make the right, long-term decisions that will tackle inequalities within our economy. We will continue to be pragmatic and flexible with Government, and be prepared to work with colleagues across Yorkshire to advance a deal that will bring more investment to the people and communities we serve.

1.7              Our progress towards securing devolution is outlined in the evidence submitted below. 

2. Evidence

Progress on securing devolution to date

2.1              It is understood that the inquiry will consider the success and scope of devolution deals implemented, including the impact on local economies and health economies and the progress of all bids submitted by the September 2015 deadline.

2.2              Our track record, including: agreeing a first wave Multi Area Agreement in 2008; becoming a pilot forerunner city region in 2010; agreeing a first wave City Deal in 2012, establishing West Yorkshire Combined Authority in April 2014; securing the biggest Growth Deal in the country - also in 2014; and securing a first stage (non-Mayoral) devolution deal in 2015, placed Leeds City Region at the time at the forefront of collaborative working. The independent RSA City Growth Commission (Unleashing Metro Growth, October 2014) concluded at that time that only London, Greater Manchester and Leeds City Region were ready to take on the risks and challenges associated with devolved status.

2.3              The following journey was then made by WYCA with Leeds City Region and wider Yorkshire partners in relation to the then Chancellor’s invitation to consider proposals by September 2015 for devolution in return for establishing a directly elected Mayor.

• 20th August 2015 – Submission of LCR expression of interest to HM Treasury
• 4th Sept 2015 – Formal submission of LCR proposal to Chancellor
• 9th February 2017 – Letter from West Yorkshire Leaders to the then Communities Secretary (Rt Hon Sajid Javid) seeking confirmation that Government would progress, or otherwise, the LCR deal proposal.
• 6th March 2017 – the then Secretary of State (SoS) responded to the Leaders recognising the effort which had been put into the LCR proposal but citing insufficient local support which would be needed to progress an LCR deal.  Options were requested by the SoS for other areas (which could be different to existing WYCA boundaries) and also for proposals which would satisfy the following devolution criteria: a single Mayor for the area and single CA, which has the possibility of achieving wider support from local stakeholders in Yorkshire.
• Following the Yorkshire & Northern Lincolnshire APPG on 27th February 2018 on a One Yorkshire approach to devolution and responding to the then SoS’s request at that meeting for a detailed and concrete proposal, Leaders of 18 local authorities in Yorkshire submitted a proposal to Government on 5th March 2018 for a Yorkshire wide deal.
• 9th July 2018 response to Leaders from Rt Hon James Brokenshire MP in his capacity as Communities Secretary proposing the Sheffield City Region (SCR) is delivered ahead of Government considering the One Yorkshire proposal.
• Following informal feedback on the proposal on 10th October 2018, a supplementary One Yorkshire submission was sent to Government comprising: independently prepared study evidencing Yorkshire as an economically coherent area with the potential for a devolution deal to add up to £30bn p.a. to the economy; detailed governance proposals based on a single Mayor and CA for the area; and a route map showing the steps to a One Yorkshire Mayor by as early as 2020.
• 28th November 2018 WY Leaders met with Jake Berry to discuss devolution in Yorkshire - it was recognised by all that in the event that a Yorkshire deal could be agreed this would likely take some time to implement which in turn may risk financial ‘cliff edges’ in LCR and more widely across the region.  It was therefore suggested that interim funding arrangements would be explored for all parts of Yorkshire.
• 12th February 2019 – the Secretary of State formally responds to One Yorkshire Leaders and Mayors making the following points:
• The Government considers that the submitted One Yorkshire proposals do not meet its criteria for devolution.
• An offer is instead made “…to begin discussions about a different, localist approach to devolution in Yorkshire.”
• It is re-stated that the completion of the SCR deal “is essential for talks to progress”.

• The 18 One Yorkshire Leaders and Mayors were then invited to a meeting with the Secretary of State in Ripon on 1st March 2019 in order to discuss the following agenda items: devolution criteria; why One Yorkshire still has local support; interim arrangements; and next steps.
• As a result of that discussion, 18 One Yorkshire Leaders and Mayors issued a statement on 1st March 2019 which highlighted that they remained committed to the One Yorkshire approach to devolution.  In recognition of the further work that is required to make progress, and the time that this would require, this should include discussions on interim funding arrangements. There was therefore agreement with the Secretary of State that Chief Executives from One Yorkshire authorities would begin work immediately with senior officials from the Ministry of Housing Communities and Local Government and HM Treasury on these interim arrangements and the points raised in the One Yorkshire submission; and an agreement to meet with the Secretary of State again later in the year.
• On Friday 8 March 2019, the One Yorkshire Conference was held in Leeds bringing together leading national and regional figures including key note speeches by Cllr Judith Blake, Leader of Leeds City Council and the Northern Powerhouse Minister, Jake Berry MP, which both explored Yorkshire’s place in a post-Brexit economy and how devolution to the region can ensure it plays its full part in driving future prosperity for the North and the UK.
• On the 7 May 2019, the then Secretary of State responded to a 25th March 2019 letter from the Sheffield City Region (SCR) Mayor Dan Jarvis and the four South Yorkshire council Leaders and Mayor about how the SCR deal might be unlocked. In the reply, the Secretary of State proposed that he is “…prepared to implement the (SCR) deal with an understanding that after 2022, those Councils that do not see their future in the City Region should be free to join an alternative wider Yorkshire devolution group…”
• Following constructive talks including between West Yorkshire council Leaders and the then Exchequer Secretary to the Treasury, Robert Jenrick MP, on 17 July, One Yorkshire Leaders wrote to the new Prime Minister, Boris Johnson, on 24th July 2019, outlining new devolution proposals.  The proposals contained in the letter include a series of interim devolution deals to be agreed across Yorkshire to run in parallel with the existing SCR agreement. The letter proposes that negotiations would then continue with Government to have a One Yorkshire devolution agreement completed by 2022, the end of the current SCR Mayor’s term. At this point, any SCR authorities wishing to be part of the wider Yorkshire deal would be allowed to do so.

Governance and accountability

2.4              The Inquiry will also, it is understood, consider the impact of elected mayors and whether they are necessary to make devolution a success.

2.5              We appreciate the Government remains committed to directly elected Mayors in return for devolved powers and funding, and that this is underpinned by the legislation contained in the 2016 Cities and Local Government Devolution Act.

2.6              The devolution journey that we have travelled post 2015 as described above has however been protracted and resource intensive in relation to the funds and flexibility which appears to be currently on offer to devolved areas.  On this basis, we feel there are many workable alternative governance models, including our own, as a model of efficiency and effectiveness in the discharge of devolved funding and powers.  For example, WYCA which is the recipient of the largest Growth Deal in the country, makes (along with the LEP) difficult decisions on resource allocation and investment in transport and economic regeneration, including the £1bn West Yorkshire Transport Fund.  And the Devolved Youth Contract allowed us to help over 2,000 young people across the city region in steps towards employment, at a much faster rate and at lower cost that the equivalent national scheme.  The CA comprises a cross party membership, a strong business voice through LEP associate membership, and wider LCR perspective through York’s associate membership, with robust scrutiny arrangements, which together provides resilience, transparency and accountability without the requirement for a further elected official in the form of a directly elected Mayor.
 

Adequacy of funding levels

2.7              The inquiry seeks views on the adequacy of existing sources of income and the potential need for more sources of income for local authorities that acquire more powers.

2.8              Leeds City Region analysis of the spatial pattern of Government’s public spending decisions and Bank of England’s monetary policy shows that over the last four years, if public spending on economic affairs in Yorkshire had increased by the levels seen in the North West and West Midlands, this would amount to an extra £815 million per year.  There is a strong correlation between the effect of public spending and monetary choices on regions and their productivity. While the nature of any causal relationship is open to further study and discussion, it shows the importance of Government taking account of the spatial impacts of monetary policy in its spending decisions, and devolving these to the lowest possible level.

September 2019