The Confederation of British Industry (CBI) is calling on the Government to publish a framework to devolve powers and reignite the regions.
The business lobby group this will help address the productivity puzzle and will help close the gap on regional inequalities, with the CBI believing it will ‘ignite a new era of economic prosperity’.
The CBI has outlined three key steps are needed to kickstart English devolution:
- Step One: Develop and publish a clear framework for devolution so that local leaders understand what powers government are willing to consider devolving
- Step Two: Optimise Westminster and Whitehall for devolution including buy-in and support from Treasury who hold the purse strings
- Step Three: Deliver new deals to cover 60% of the English population and streamline local government by championing unitary authorities
Businesses in areas with devolution deals have cited a range of positives. They include the raised international profile that having a Metro Mayor brings, clarity over the strategic direction, increased collaboration with neighbours across the region and the country, as well as a greater focus on inclusive growth.
Commenting on the reports launch, CBI Regional Director for the South West, Deborah Fraser said:
“Now is time to work with business to set out plans to devolve powers and unlock regional growth. Within five years, 60% of the population should be covered by a devolution deal. This change will turbo charge our economy and will ignite a new era of economic prosperity in the South West.
“Business is keen to unlock growth but wants to avoid future deals being influenced by politics. A clear framework where deals are assessed by an impartial independent board is sorely needed.
“I believe it is time the Prime Minister harnesses devolution and runs with it. If he does the CBI will support him every step of the way. Everyone knows that productivity is a key driver of wage growth and living standards, so addressing it must be a priority, from Whitehall to townhalls.
“We encourage government to work with the business community to reduce local government complexity and kicking the politics out of decisions on devolution.”
The CBI added: "The most productive part of the country is almost three times more productive than the least in 2017, and intra-regional variations in productivity are equally stark. There’s now an urgent need to get local decision-making, funding and delivery working effectively in all parts of the country."
