Core Cities demand greater devolved powers to avoid "decade of jobless growth"

The Core Cities group has called for greater devolved powers and a new partnership with government to counteract the “real risk of a decade of jobless growth”.

In its report Beyond Recession, the group – made up of Birmingham, Bristol, Leeds, Liverpool, Manchester, Newcastle, Nottingham and Sheffield – suggested this new partnership would have four components:

• A strengthened capacity of the Core City Regions to accelerate innovation. Core City Regions should be given greater flexibility in skills programmes and initiatives to reduce unemployment – “the rigid guidelines governing the delivery of national programmes hinder efforts”. The group pointed to the greater freedoms already enjoyed by London and expected to be handed to Leeds and Greater Manchester
• Devolved responsibility for all adult skills provision to Core City or City Region, Employment and Skills Boards and co-commissioning of all employment support programmes
• Establishment of ten-year agreements on the essential infrastructure and housing investment programmes needed to accelerate the sustainable development of the Core City Regions. This would also ensure that the regions have the lower per capita carbon footprints than comparable urban regions elsewhere in Europe by, say, 2020
• Establishment of a new financial settlement with new financial flexibilities between the Core City Regions and Government. A task force should be set up to review alternative financial mechanisms to overcome public sector spending constraints. These mechanisms might include local bonds, enhanced use of asset-based delivery vehicles and single capital allocations. Total Capital pilots should be introduced in each of the Core City Regions.

The report acknowledged that there would be severe limits on public expenditure across the UK over the next five years. However, it added: “The new partnership between the Core Cities and Government must feature how best to address the Core City investment requirements in the context of these limits. Otherwise, the growth potential from the Core City Regions will not be realised.”

The group argued that government investments in the Core Cities and City Regions should move towards a Total Place/Total Capital approach, with the introduction of single-pot, streamlined investment planning and appraisal approaches. The Core Cities should also be responsible for setting strategic investment priorities and helping define regional roles.

In addition, city regions should be allowed “the autonomy to establish governance mechanisms appropriate to their local circumstances and to consider how best to engage effectively with the wide range of public, private and third sector partners”.