The pre-condition for successful subnational working is strong and empowered local government. Therefore, devolution needs to be broadened and deepened. This means:
- Extending devolution across all of England
- Further strengthening MCAs so that they can lead social and economic recovery and renewal
- Subnational bodies should be the level at which the local meets the national through a pan-regional partnership.
There should be a systems approach to economic recovery and levelling up, with clarity about the role of each level in this process
- MCAs, councils and LEPs should drive recovery and building back better at city region level
- Subnational bodies should have a clear remit in a national plan for economic recovery, renewal and levelling up.
This should be supported by processes that hardwires this approach into Whitehall.
Some of the functions that could best be performed at this level to drive economic renewal and levelling up could include:
- A subnational partnership agreement on pan-regional industrial priorities
- A pan-regional equity investment fund
- Devolution of statutory functions and budget for transport and infrastructure
- Trade and international investment with devolution of Department for International Trade (DIT) functions
- Creation and consolidation of economic observatories.
Different pan-regional areas should be able to shape the exact model of partnership that is appropriate for their circumstances and geography. But where these partnerships receive Government funding, as well as member support, then they will need some common governance principles which are consistent across England. These should support local and national partnership and emphasise complementarity and additionality to the role of MCAs, councils and LEPs. This means a form of governance that:
- Is representative of local government and geographically complete
- Includes key figures from regional businesses, LEPs and universities
- Has an independent chair, agreed with all partners.