UK manufacturers are today calling on the Government to use its
English Devolution White Paper to deliver meaningful devolution across the country, giving priority to industrial energy, skills and training, transport, housing and infrastructure with local targeted funding based on business needs. Manufacturers organisation
Make UK says that a full review is urgently required to explore best practice is existing devolved areas to inform the development of Labour’s promised new mayoral authorities to give business the tools they need to succeed. For now, there remains a central business scepticism of on-the-ground effectiveness of mayors.
Of those companies currently operating within a Mayoral Combined Authority area, 62% were favourable to more mayors. But when it came to delivery results, just 10% felt their business needs had been met, with a much more significant 71% saying it felt just the same as before. This is in stark contrast to the devolution survey Make UK carried out last year when 60% of companies said they had directly benefitted from devolution funds.
Issues cited include too many competing priorities (39%) and not enough powers and funding from central Government (36%) as key contributors to the unfavourable response, according to Make UK’s latest research. Business satisfaction across the board with local decision making looks healthier. Some 66% of manufacturers are happy with transport connections, 62% either very satisfied or somewhat satisfied with digital connectivity and just under half (47%) were satisfied with skills provision.
Half of manufacturers also felt that local government had a good understanding of industry in the region and the majority manufacturers (86%) knew how to communicate proactively with their local government body. Companies also saw the benefits of having a strong mayor working for a region, particularly in attracting inward investment to their area and felt that mayors were better able to influence infrastructure policy and development, both transport and digital.
AI Innovation ClustersInnovation too was seen as positively fostered locally and Make UK has long advocated for the development of designed “AI Innovation Clusters” which can be used to promote growth and adoption within manufacturing dense regions. Half of manufacturers now feel that giving their regional mayor full tax-raising powers would be a good thing for their businesses with 39% of businesses wishing to see greater access to grant funding.
Unsurprisingly views differ hugely between companies within a devolved authority and those who have never had access to a mayor. For example, only 24% of manufacturers in any area felt future devolution settlements should focus on delivering exporting guidance. But 93% of those surveyed from Mayoral Combined Authorities wanted to see export guidance included in any future deal, with locally focused priorities key again here.
Kate Fairhurst, interim head of policy at Make UK said: “Devolution has been an obvious success story in some areas for manufacturers but clearly there is still a lot of work to be done to realise its full potential. The English Devolution White Paper will result in many new mayoral authorities being introduced across England. Now is an opportune time to take stock and ensure devolution is really working for business. It is essential that a full root and branch review is undertaken at speed to ensure best practice going forward as additional devolution is delivered by government across the UK.
“Specialist business panels should also be introduced so regional authorities can draw on their industrial expertise. This should be alongside an analysis of the cost benefits of fully devolving tax collecting powers to new authorities. Aligning central government grant funding to specific regional needs is also a must if devolved areas are to truly succeed in delivering growth. But it is clear there is still much work to be done in raising awareness on the benefits of devolution and the work already being achieved by local mayors on the ground.”