Recently CLES have been working with Localis and RegenWM on localism in the West Midlands. We have had some stirring debate about local government, power and the regions. When I discuss economic governance with CLES members and local government, the abiding message, is that we need flexibility. In this, I believe we need to be very wary of placing too much of a focus on new forms and institutions, and avoid assumptions that there is an easy made spatial fix.
The recent report and commentary by Paul Carter, Leader,Kent County Council,is a welcome addition to this debate. Though the idea contained within an LGC article that there should be formal sub regions is problematic. In economic terms we need flexibility which allows local authority areas to work together and do different things at various geographic scales. We need collaboration which is labile, majors on effectiveness not just raw efficiency and is capable of economic and environmental change and dealing swiftly with this change. We need arrangements which major on local function (thepurpose) not form (institutions). For this to happen, we cannot get so hung up about fixed institutions at specific scales.
Take the tortuous opposition party political policy proposals on RDA’s. Firstly the Conservatives and the Liberal Democrats said they would scrap the RDAs, then when they start thinking about function - which should have been their starting point in the first place - they now see the need for some regional function and rush to suggest a new form. John Thurso, the Liberal Democrat spokesperson has now said they would introduce ‘Regional Enterprise Boards’, whilst Caroline Spelman, the Shadow Local Government Secretary now says that the RDAS will ‘therefore evolve into ‘local enterprise partnerships’.
From a starting position of getting rid of the form, they now have jumped into another form without really appreciating that we need flexibility and variation depending on location and functional need. In short, as Paul Carter rightly states ‘building blocks’ of groupings are required. However, these need to be linked to specific function.
In economic terms, the need for flexible institutions and a greater focus on purpose is vital for 3 key reasons.
We have polycentric sub regions and counties.
We do not have fixed geographies or single coherent entities. Our Urban Mets of Dudley and Bury and our towns of Bury St Edmunds, Tonbridge or Burnley have strong economic identities forged through centuries and need nurturing not squashing under overly clunky singular sub regional economic visions. Our counties, sub regions and cities are not ordered neatly. They do not always have a central county town or a comparatively even growth and economic identity based around the CBD (see previous blog).
Societal and environmental trends are moving us to localisation.
Societal trends, environmental concerns and cultural moods are telling us that we should we thinking about localising, reducing economic footprints andmaking economic decisions which are closer to people and communities, not just aggregating them up. As its stands we are in danger of hollowing out our appreciation of district shopping areas and local economic activity - delocalising our economy.
Economic themes have a variable spatial fit.
The correct scale for delivering on skills is not the same for transport, or for the benefit system. The best and most efficient scale at which to deliver onpolicy and services is not the same scale for all topic areas or the same by geographical location.
We therefore need forms, which are more able to be temporal, differentiated and nuanced by place. Assumed blanket solutions such as sub regions or Statutory City Regions will not be the way we need to progress in all locations, and I suspect many urban local authorities who are part of emergent cityregions have significant doubts.
To progress to a greater flexibility, we need to build on the existing power shift toward local government, allowing local government to drive county,regional and sub regional agendas, moving power over economic decisions away from Whitehall. This required variable and flexible geometry cannotcome with fixed institutional strings attached. A flexible form must follow function and power must be transferred to collaborating local authorities in this.
So can we now please start having more of a debate which at its core majors on flexibility and appreciates that form must follow function – creatinginstitutions if need be, but as an end point of a process which local government gets the power to shape.
Neil McInroy is chief executive of the Centre for Local Economic Strategies
From Neil McInroy
Neil McInroy is chief executive of the Centre for Local Economic Strategies . He has recently returned from a series of visits around the world to see how economies can be boosted by action from local authorities.








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