Will devolution deliver? A Camargue conversation
Introduction. We have more regional leaders than ever before, and a changing map of economic governance. With new powers handed to mayors each year and further combined authorities on the horizon, how can we use this opportunity to promote regional growth and improvement across a range of sectors and services? At the time of writing, secondary legislation for a York and North Yorkshire mayoral devolution deal is being considered by parliament and it is expected that a new combined authority will come into effect early in 2024. Places across England are forging their own routes to devolution – and in North Yorkshire there’s been significant reform to get to this point, including local government reorganisation. An election is planned for 2 May 2024 to choose the first mayor for the region. They will oversee a combined authority with a ‘level three’, £560 million, 30-year deal – with initial powers set to include strategic priorities such as transport, housing, and adult education. Six months ahead of the election, Camargue hosted a roundtable discussion to draw on expertise from the worlds of regeneration, business, housing, transport, planning, policy and investment. Since our roundtable event, four further devolution deals have been agreed by government – for Hull and East Yorkshire, Lancashire, Greater Lincolnshire, and Cornwall – and the next generation of ‘level four’ devolution with more financial control was announced at the Autumn Statement. The direction of travel is clear. But is devolution delivering? What should it be delivering? This report summarises findings from our discussion and sets out the key themes that industry is tracking.
Camargue conversations: will devolution deliver?
In attendance Andrew McPhillips Chief Economist, Northern Powerhouse Partnership Liz Philpot Head of Delivery, York and North Yorkshire LEP Natasha Baber-Evans Chief Executive, Better Connect Chris Davidson Regional Director for Yorkshire and Central, Harworth Group
Sean Eames Head of External Affairs (North), Persimmon
Liz Wells Assistant Director, Deloitte
John Huddleston Senior Manager, Levelling Up and Investments, Aviva
Owen Wilson Head of Major Roads, Transport for the North
Charlie Lavemai-Goldsbrough Policy and Representation Executive, West and North Yorkshire Chamber of Commerce
November 2023 The Grand Hotel, York
Holly Bryden Account Director, Camargue Chaired by James Snowdon Account Director, Camargue
A new political map for York and North Yorkshire. Participants reflected on the fact that North Yorkshire’s devolution deal is unique – it covers a vast area including the City of York, historic towns, some of the UK’s most important coastline and an abundance of iconic visitor attractions. As a precursor to the devolution deal, last year eight councils became one – North Yorkshire Council. It is the largest unitary authority in the country and, along with the City of York, will be one of just two constituent members of the new York and North Yorkshire Combined Authority. The new combined authority will also incorporate the Local Enterprise Partnership and work closely with strategic partners including developers, government departments and higher education. The county’s rural composition and mix of communities was a key topic for discussion, and there was positivity that because the devolution arrangement is bespoke it can capitalise on the region’s existing industries, skill base and natural assets. In parallel, there was a strong view that the new combined authority will need to work hard to ensure it represents and supports all of its areas. Devolution should benefit the entire region, but it can’t necessarily do it everywhere in the same way at the same time.
Camargue conversations: will devolution deliver?
The process of transitioning from seven districts and one county council to a unitary authority in North Yorkshire has helped to promote a political culture that is acutely aware of the need to secure support at a grassroots level. There is a consensus on the need to reach every corner of North Yorkshire, and the speed at which reform has taken place is encouraging for the future move to a combined authority. There is a framework for growth and clarity of mission among constituent members and key partners. The very existence of a York and North Yorkshire Combined Authority is expected to help when it comes to funding. Many of our roundtable attendees felt that this would both reduce economic competition at a sub-regional level (i.e. between local authorities) but also mean that the region as a whole can compete more effectively. Examples of missed opportunities were cited, such as carbon capture – where it was felt that North Yorkshire has lost out to neighbouring Tees Valley. North Yorkshire is surrounded by more established combined authorities to its north and south, along with the Humber to its east (which, since our roundtable discussion, has received government backing for its own devolution deal as part of the autumn statement).
It is hoped that the presence of a single, unified voice will help advocate for investment in the future. In some cases, being a combined authority should streamline the process for funding applications to central government. The idea of further fiscal decentralisation is gaining traction in policy circles, with the Greater Manchester and West Midlands combined authorities paving the way towards more radical economic and constitutional reform. Looking to these ‘trailblazers’ as an example, it’s apparent that the initial funding and powers – while important in their own right – also need to be properly leveraged and used to create a stronger case for more in the future.
Strategic leadership. Metro mayors are the faces of devolution, and the group had a wide-ranging discussion on their ability to shape strategy and make spending decisions. The last few years have shown how mayors’ soft power is equally important – they champion their regions and have the ability to challenge the consensus. The group agreed that a figurehead with a long-term plan and a clear mandate should bring benefits. Having a ‘seat at the table’ among other combined authorities is also positive, and will build a stronger cross-regional group of directly elected politicians who can collectively lobby and shape future government policy. The chance to work alongside the likes of Andy Burnham, Andy Street and Ben Houchen is a powerful opportunity when compared with their relative popularity to counterparts in Westminster. The new mayor will need to shape their own vision – but their priorities need to be clearly defined at an early stage. North Yorkshire’s communities will benefit from understanding the focus of the new mayor, so that they can know what to expect and how to hold them to account. There are clear examples of how to make a success of the mayorship. Andy Burnham was cited as someone whose personal profile has helped when lobbying for more powers. Ben Houchen was noted as a leader who has used his clout to secure funding over some of the Tees Valley’s bigger neighbours. Conversely, North Yorkshire and the Humber have arguably missed out on some opportunities over the past decade because of a lack of regional leadership. Despite immense potential in these places – particularly around green industries – there has at times been a lack of unity.
Camargue conversations: will devolution deliver?
A rural powerhouse.. Participants were hopeful that the new combined authority would help create a better framework to support industry. The new mayor will spearhead this – but good, evidence-based growth should guide their decisions and it is important that investment is relevant to the region and builds on existing strengths. Some emphasised the need to retain the area’s local knowledge, agility and personality. The subcounty approach (with Yorkshire split north, south, east and west) was seen as positive, encouraging a healthy competition. There is a need for cross-region collaboration, but North Yorkshire also needs a licence to forge its own path and hone its own specialisms across key industries. In the past, under a competitive funding framework, there has been a temptation for some areas to position themselves as a ‘jackof-all-trades’. Devolution offers a chance to specialise and focus on USPs.
Camargue conversations: will devolution deliver?
So what are the key sectors where North Yorkshire is, or can become, a leader? • The University of York’s focus on biotechnology, and its work with BioYorkshire, is top of the list. Many participants said this was key to unlocking growth, investment and new opportunities. It will be a focus for the new combined authority and is a sector which strategic partners should try to ‘incubate’. • Related to this is the area’s strong and growing agritech industry. This is a sector that will build on North Yorkshire’s economic heritage and should enable a more integrated and futureproofed approach to farming, land management and the environment. • Manufacturing, particularly food and drink production, is another key industry for North Yorkshire. Again, this is complementary to the region’s geography and its anchor employers of the past such as the confectionary industry in York.
• A similar opportunity is apparent in the heritage and tourism industry, where AI and digitalisation could be transformational for visitor experience. Tourism brings over £3.2bn annually to the regional economy, and York and North Yorkshire Local Visitor Economy Partnership will create a more co-ordinated and strategic approach to promoting the sector, encouraging visitors to stay for longer and showcasing the county’s exceptionally strong arts and cultural offer. Making a success of these areas requires strong human capital and social infrastructure. The region has many strengths in this sense. North Yorkshire compares favourably to its neighbours in terms of talent and, while retention can be a challenge, the region’s quality of life is appealing to businesses and communities.
Camargue conversations: will devolution deliver?
The regeneration agenda. There were calls among some for a more strategic approach to planning and regeneration – and an expectation that the combined authority will help deliver this. The new combined authority, working alongside City of York and a streamlined North Yorkshire Council, should – in theory – make strategic planning simpler. There is a hope that this will help overcome blockers to development and promote an approach that focuses squarely on tackling the housing crisis, promoting sustainable growth in rural area, and meeting the needs of the region’s future industries. Collaboration is a word that kept cropping up – in terms of work between development partners, and also with local government and communities. Many at the table hoped that the combined authority would work with new and more representative groups, including young people and those who are harder to reach. This is especially important within a rural context and in a county with such a dispersed population. There was also a discussion on the need for a more radical restructure of local government. At least one participant expressed a view that the planning system is lopsided and favours objectors. It is therefore important the combined authority acts as an enabler, and focuses on promoting positive and sustainable regeneration, rather than becoming simply another layer of government that can block or delay proposals with a strong economic and social case.
Connecting the county: transport and power. North Yorkshire has a pioneering railway heritage and the group reflected on the role the area has played in transforming UK transport and the impact this has had on the regional economy. Today, York remains ones of the best-connected cities in the country, but participants highlighted that the transport infrastructure and connections to nearby towns and villages is patchy and, in some cases, poor. Several key transport upgrade projects were mentioned as being long overdue. Among other important road improvement projects, the A64 from Leeds through York and to Scarborough is the priority for many. Funding decisions on this project and others have suffered from delays in recent years. Making the strategic and value-for-money case for projects like this is likely to become a key job for the mayor once elected. While devolution should help better promote regional transport improvements, there is a more structural problem at play. Participants agreed that we need a much longer-term approach to funding which does not take a narrow view of return on investment. HM Treasury has reformed its Green Book analysis, but there were concerns around the table that there is still not enough weight given to the strategic case for projects. HS2’s phase two cancellation was the backdrop to this part of our conversation and, for many, the lack of clarity around Network North is causing further frustration. The development industry needs certainty and there is concern that yet another round of competitive funding bids could cause more delay and ultimately put the brakes on wider regeneration projects.
Camargue conversations: will devolution deliver?
Buses are incredibly important to rural communities – but for many are too expensive. This can have a big impact on young people, causing them to avoid travelling at peak hours and acting as a barrier to the labour market. The recently launched integrated system in Greater Manchester was cited as an example of how mayoral intervention can help address market weaknesses. Another key focus of the discussion was on energy, and how this will be a key determining factor in where growth industries choose to cluster. North Yorkshire has ambitious plans to become a carbon negative economy and is putting a big focus on creating the infrastructure needed to support this. But, as with transport, there is a risk that grid connections and other enabling works are not delivered quickly enough, and that a key opportunity is lost. This is a concern not just for North Yorkshire, but for the UK as a whole as part of the international race to secure and unlock investment in the green industries of the future. Connectivity in all forms – including for transport, power and digital inclusivity – are key for North Yorkshire’s future. These are the things that will unlock new regeneration opportunities, create viable places for new housing development, connect industries, and tackle social exclusion.
A county for communities. Participants agreed that successful devolution in York and North Yorkshire means delivering for the people who live and work in the region – improving employment opportunities, boosting delivery of housing, enhancing connectivity and driving economic growth. While there is a shared identity across the region, it is home to diverse, unique groups of people with specific characteristics, ambitions and needs. The new combined authority needs to understand this and engage widely – including by explaining what devolution is and how it can improve quality of life, and by giving people a voice to inform decision-making. The group felt it was important that the abolition of district councils, which was undertaken to pave the way for the devolution deal, doesn’t lead to communities in certain parts of the region feeling removed from power. Especially as many people will live and work a considerable distance from decision-making in York, and Northallerton’s county hall (the home of North Yorkshire Council).
Camargue conversations: will devolution deliver?
Delegating powers to communities on local issues such as parks management, is one way to prevent this and the concept of ‘double devolution’ to town and parish councils is being promoted. Perhaps even more importantly, the combined authority must work collaboratively with community organisations and groups across the region, as well as the private sector, including developers and third sector organisations such as those representing young people. It was felt by the group that community need must be recognised in considering how funding is allocated or decisions are made. Coastal communities, in areas like Scarborough for example, would benefit from increased investment into tourism, and the delivery of affordable housing, while more rural areas such as Richmondshire could be best supported through initiatives that aim to grow sectors such as agritech.
Participants also agreed that a key priority for the new mayor should be diversity and inclusion. Part of this is around attracting people from a range of backgrounds to live and work in the region, and encouraging students to put down roots to help retain talent. There is also a need to improve opportunities for people from disadvantaged backgrounds. Adult education is an area where the county has been agile, and this could be an early priority for the combined authority. However, sustained investment in third sector programmes can be a challenge within the current financial environment. Some participants said longer-term funding arrangements are key for organisations that play a role in tackling issues such as long-term unemployment and structural inequalities relating to transport, social care and skills.
Will devolution deliver?? It was apparent from our discussion that industry is ready for devolution in York and North Yorkshire. Camargue’s assessment is that the combined authority’s success will ride on five key points: 1. Leadership and visibility. Can the new mayor make a mark on UK politics in the way that some other regional leaders have? Achieving a deal is an important and symbolic first step, but devolution has worked differently across the country, and to varying degrees of success. Forging a strong identity for the new combined authority will be especially important in its early days, during which the available funding will be lower than some of its neighbours. Will the region punch above its weight, strengthen North Yorkshire’s profile on a national level, and create a positive working relationship with central government?
Camargue conversations: will devolution deliver?
2. Speed and impact. How quickly will people see tangible benefits? The scale of change at North Yorkshire Council could be an advantage; the county has a mindset of reform and improvement. The establishment of the combined authority will create a period of flux and requires institutional agility to make a success of it. There is a need to deliver quickly for communities, but there must also be a process of prioritisation – it will be better to do a few things very well, than to spread resources too thinly and dilute the focus.
3. Enabling and facilitating. How will the combined authority unite industry, create a framework for growth, and promote positive regeneration?
5. The unforeseen. The new combined authority is securing new powers and funding, but what about things outside of its control?
This will be critical for attracting inward investment, supporting growth industries like agritech and biotech, as well as strategic transport projects and energy resilience. The combined authority should aim to better define the role of its industry partners – ensuring a collaborative approach within York and North Yorkshire, promoting the region among its competitors, but also finding ways to avoid bidding against neighbours where this can be avoided.
Like all regions, the new mayor will be working within a constrained economic environment and potentially one of political change. The timing of the general election will be key and the partners with which the new mayor needs to work – both in Westminster and across other regions – will define what can be achieved. From the outset, the new combined authority will need to focus jointly on delivery, as well as building new working relationships and institutional resilience.
4. Equity and representation. Is it possible to reflect and respect differences across the whole region?
Geography shapes our politics, and politics has an impact on the way we think about places. To be successful in York and North Yorkshire, the combined authority will need to build on the county’s core strengths, respect local characteristics, and find a way to speak with a unified voice.
With a sparse population across a huge region, North Yorkshire comprises York alongside many smaller towns, villages and coastal communities, each with their own priorities. Many outsiders will be watching double devolution with interest to see if the model can act as a mechanism for strong local representation. York and North Yorkshire councils have a close understanding of the issues and challenges for their communities – the combined authority will need to harness that.
Businesses and local government are working together in anticipation. They recognise that devolution presents huge opportunity. It will come with challenges – some of which are unique to York and North Yorkshire – but it is something which everyone is invested in and wants to see succeed.
About us. Camargue is an award-winning, employee-owned communications agency. For over 30 years, we have advised clients across the built environment – managing corporate reputations, navigating businesses through growth, re-structure and change, and supporting development projects to success. From high profile media engagement to thought leadership and creative campaigning, we deliver integrated communications programmes that add value and influence change. We are working on many of the largest development and infrastructure proposals across the North of England. From offices in York, Birmingham, Cheltenham and London, we support clients UK-wide and combine powerful local understanding with the capability and heft of a national agency. For more information please contact:
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