While this week’s Budget was delivered in a challenging set of financial circumstances with inflation still stubbornly high, the chancellor was in a buoyant mood, announcing the country would no longer enter a ‘technical recession’ and inflation could be cut to 2.9% by December.
Reflecting on some of the key announcements, local authorities have reason to share some of the chancellor’s zest too. His Budget set out a clear signal that the Government views councils as crucial in leading economic growth.
For The MJ’s readers, arguably the most vivid example of this was the announcement that the government is ‘minded to’ transfer Local Enterprise Partnership functions to local government. This is something that is long overdue – whilst we all have a great deal of respect for what LEPs have achieved, it should be local leaders who are given all of the levers to deliver bespoke solutions to local challenges.
If government does choose to close down LEPs, it is vital that these functions are transferred to upper-tier authorities, who have the expertise and track record in setting out ambitious economic visions for their areas and then, crucially, delivering these. As we saw during the pandemic with high-profile pots of funding distributed to upper-tier authorities, we are the ones who can effectively mix the strategic with the local.
Of course, successful economic growth initiatives will be a collaboration of all local partners, including business.
The chancellor also made substantive announcements on devolution, signalling its renaissance as a major growth lever once again.
Here, it is important to take a step back to 12 months ago to when the Levelling Up White Paper was freshly published. To enter negotiations with nine areas did not mean it was a given for deals to be struck, but to have six of these agreements concluded with government is testament to the pragmatism and flexibility of the counties at the negotiating table.
The Budget’s commitment to begin negotiations on a fresh wave of deals is important in signifying the trust between national and local government, and the County Councils Network will be holding the government’s feet to the fire on beginning these as soon as possible.
The announcement over trailblazer deeper devolution deals for the West Midlands and Greater Manchester provides a blueprint for how much further the agenda can go in England, and whilst the commitment to roll this out to all ‘level 3’ areas is important in achieving parity between cities and counties, we urge the Government to set out a firm timetable on this.
It may be slightly lost in the small print, but the language on these announcements recognises the different range of models in ‘level 3’ arrangements, such as ‘directly-elected leaders and ‘mayoral combined county authorities’ – ensuring that the traditional mayoral combined authority is no different to a county deal. CCN has been worked hard behind the scenes to achieve this, in recognition that not every county area will want to pursue the mayoral model.
Whilst many of these deals are for the future, the Budget also contained some announcements for the present. I know county colleagues will be pleased to receive £150m for roads funding, and this is a direct response to CCN’s advocacy on the impact of inflation on our budgets.
This, coupled with the leisure centre funding is a boost, but it doesn’t eradicate all the inflation-induced pressures councils face. I know many colleagues had to take extremely difficult decisions to balance our 2023/24 budgets in the wake of inflation blowing a hole in them, including using a substantial amount of reserves and levying maximum council tax rises.
This is why local government will be hoping that predictions that inflation could dip to 2.9% are well-founded come the end of the year We will certainly be straining every sinew to generate increased productivity in out areas as we seek to capitalise on the Government’s recognition that local leaders are a key driver of economic growth.
Cllr Tim Oliver is chair of the County Councils Network
