Metro mayors – what is their worth?

market_townBy Heather Cameron

As voters went to the polls once again on 4th May for the local elections, six combined authorities in England saw directly-elected metro mayors chosen for the first time, as part of the government’s devolution agenda.

The six areas – Cambridgeshire and Peterborough, Greater Manchester, Liverpool City Region, the Tees Valley, the West of England and the West Midlands – account for almost 20% of the population of England. This means a third of the English population, including London, now have a directly-elected metro mayor.

Advocates of the role believe metro mayors have the potential to transform both local democracy and local economies. However, not everyone is as supportive.

What are directly-elected metro mayors and what are their responsibilities?

Directly-elected metro mayors are chairs of their area’s combined authority, elected by the local population. Their role involves working in partnership with the combined authority to exercise the powers and functions devolved by central government, set out in the local area’s devolution deal. In contrast to existing city mayors, who are also directly elected, or local council leaders who make decisions for, and on behalf of, their local authorities, metro mayors have the power to make decisions for whole city regions.

The devolved powers predominantly focus on strategic matters, including housing and planning, skills, transport and economic development, with the exception of Greater Manchester, which also has powers and funding related to criminal justice and health and social care. Each devolution deal is very much tailored to the local area however, so the combined authorities will have varying powers and budgets.

The aim of metro mayors is to support local economic growth, while providing greater democratic accountability.

Concerns

While the government believes the role ensures clear accountability over devolved powers and funding, concerns have been voiced within local government itself about the accountability, effectiveness and necessity of the incoming combined authority mayors. And democratic support for the role has always been weak.

In terms of accountability, metro mayors will not be accountable to an elected assembly, as in London, but only to their cabinet made up of other council leaders. This, and their potentially wide-ranging powers have been highlighted as a concern in terms of back-room stich-up deals being created between mayors and individual authorities“.

Their introduction has also been described as “potentially worrying” as the local people were never given the opportunity to have a say on the new roles and that, instead, they are products of ‘deals done behind closed doors between councillors and representatives of central government.’

It appears rather ironic that this proposal of greater devolution may actually reflect an imposition from central government of its own policies and desires on local government.

Nevertheless, the new metro mayors do enable greater local control over local matters and have been argued to represent the best chance yet of ensuring devolution is sustainable over time. It is also likely they will get increasing powers over time, as in London.

But the question remains whether they will facilitate local economic growth and help to re-balance the English economy.

Final thoughts

Whether the new metro mayors will succeed in this aim or not, only time will tell. There has been little evidence of improved performance under elected mayors in England so far, although it has been suggested there is some evidence that their introduction has resulted in quicker and more transparent decision-making, that the mayor had a higher public profile, that the council was better at dealing with complex issues, and that there was improved relationships between partners.

Some of the successes of the London mayor have also been suggested to be an indication of the potential impact of the directly-elected mayor role.

As has recently been argued, their success, or otherwise, “should be judged on whether they improve prospects for the people who live in their city regions, stimulating growth and getting local public services working better”.


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London’s digital skills shortage: a priority for the new Mayor

By Steven McGinty

London’s tech industry has become one of the key drivers of growth in the capital. Within the first  nine months of 2015 the industry raised approximately £1.1 billion; a substantial increase on the £911 million raised throughout 2014. Over the next 10 years, Oxford Economics research expects the sector to grow at a rate of 5.1% per year and to generate an extra £12 billion of economic activity. It’s predicted that this will create an additional 46,000 digital jobs.

However, the growth in London’s tech industry is not guaranteed. Although current London Mayor Boris Johnson claims there are more professional developers in London than in San Francisco’s Silicon Valley, a recent CBI/KPMG London Business Survey indicates that there is still a shortage of skilled professionals.

Jess Tyrrell, Associate Director for the Centre for London and Director of the Connecting Tech City Programme, explains that “the skills shortage has grown from an ‘issue’ to a ‘crisis”. She warns that unless London can develop its talent pipeline, its digital potential may never be realised.

London Mayoral election

With so much at stake, it’s not surprising that the tech industry has become an issue in London’s mayoral election. One of the front runners, Conservative MP Zac Goldsmith, has promised that he’ll appoint a chief digital officer (CDO) to manage the city’s data and introduce a £1m “Mayor’s Tech Challenge” to encourage innovation. He has also voiced concerns at losing young tech professionals because of the cost of housing.

Labour MP Sadiq Khan (reported by YouGov to be currently leading the race) recently met with leaders of the industry body Tech UK. The organisation noted that Mr Khan was particularly interested in tackling the skills shortage and looking at how young Londoners could be better represented in the tech industry.

The Mayoral Manifesto for the Digital Economy

At the end of last year, the London Assembly Economy Committee published a manifesto identifying the main three challenges that the Mayor should seek to address. These were:

  • poor broadband connectivity for London businesses
  • a lack of gender and socio-economic diversity in the digital labour market
  • the significant shortage of skilled workers

The first challenge is self-evident. For a digital economy to be successful, it must be built on fast, reliable, access to broadband. Perhaps more interesting is the relationship between improving diversity and the skills shortage. Most notably, there is a strong argument that encouraging non-traditional groups – i.e. those who are not white, male and middle class – will help reduce the skills shortage.

Martha Lane Fox, co-founder of the lastminute.com (and an advisor to the UK government on rolling out broadband and digital services) is in favour of increasing diversity and believes that unemployed women should be trained to help address this skills crisis. In an article for the Financial Times, she states that:

Any company – or, more boldy, country – that dramatically improves its tech diversity will have enormous competitive advantage.

The Committee’s manifesto also makes a number of recommendations for the new Mayor. For example, it suggests that tech apprenticeships should be designed to give disadvantaged Londoners the best possible training, and that the Mayor could endorse the industry-led TechTalent Charter, which aims to increase gender diversity in the tech industry.

London’s Digital Future: The Mayoral Tech Manifesto 2016

In January, Tech UK, the Centre for London, and the Tech London advocates released their manifesto for the future London Mayor. Ben Rogers, Director of the Centre for London, states that:

The responsibility of the next Mayor is to ensure that London gets the best of the digital revolution.

Like the London Assembly’s report, the Tech Manifesto focuses on the current skills shortage, noting that 93% of tech firms believe the skills gap is having a direct negative impact on their business.

The manifesto argues that London must do more to mend its fractured talent pipeline. One suggestion put forward is to establish a Digital Apprenticeship Task Force within the first 100 days of the new Mayor’s term of office. Its purpose would be to improve the quality and quantity of higher and degree-level apprenticeships. The next Mayor, say the authors of the manifesto, should work with the tech sector to ensure that the apprenticeships are fit-for-purpose, and should be particularly focused on areas where demand for skills is greatest.

With the EU referendum on the horizon, it’s also interesting to note the emphasis on tech companies having the freedom to recruit talent from across the globe. The manifesto recommends that the next Mayor should be an advocate for providing clear routes for migrant workers under the Tier 2 skilled worker visa, and oppose any restrictions. It also suggests that the Mayor should work with London universities to investigate the possibility of a trial of the Post-Study Work Visa for occupations where there is a clear skills shortage.

Final thoughts

The shortage of tech skills is a global problem. However, it’s a challenge that London must address if its digital economy is to avoid a slowdown. A key priority for the next Mayor of London should be to develop the tech industry’s talent pipeline. In practical terms, this is likely to involve protecting the industry’s access to skilled migrant workers, to ensure London’s growth in the short term, alongside investing in London’s diverse population and encouraging the best and the brightest to seek out exciting tech careers.


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Further reading: if you liked this blog post, you might also want to read our other articles on the digital sector.

Top down ‘devolution’ or a bold new era for local government? An update on the Cities and Local Government Devolution Bill

By Steven McGinty

On Wednesday 21st October, the Cities and Local Government Devolution Bill reached the Committee Stage for consideration by the House of Commons. The Bill, which was initially introduced in the House of Lords, provides statutory authority for the devolution of powers to local areas. The Local Government Association (LGA) has described it as an ‘enabling Bill’ – as very few of the policy areas covered in devolution agreements are mentioned.

Yet its technical nature has not deterred debate. Whitehall, local government, and a host of other interested parties have all sought to shape the Bill, and the devolution agenda.

So, what are the main elements of the Bill?  

The Bill makes a number of proposals, including that:

  • Ministers will have to make a statement demonstrating that all new domestic legislation is compatible with the principles of devolution;
  • Elected mayors can be introduced for combined authority areas, and can be given the functions of Police and Crime Commissioners (although this is not mandatory);
  • Powers can be transferred from public body functions to combined authorities;
  • There should be requirements for combined authorities to be scrutinised and audited;
  • Powers should exist to transfer public functions to certain local authorities, and to fast track changes to their government structures.

Which devolution deals have already been agreed?

The Government has received 38 bids, including four from Scotland and Wales. The first devolution deal was the Greater Manchester Agreement on the 3rd November 2014. Since then, a number of other deals have been agreed, including the Sheffield City Region Agreement on Devolution (12th December 2014), the Cornwall Devolution Deal (16 July 2015), and Tees Valley Devolution Agreement (23 October 2015).

However, a number of agreements are still under discussion. For instance, the Liverpool City Region bid is seeking power over a large range of areas, including the creation of a Land Commission and a development corporation, EU structural funds, and retention of business rates. They are also considering introducing an elected mayor.

Elected mayors

The Bill currently before the House of Commons states that elected mayors should not be a condition of further devolution. Nevertheless, the government have linked a full transfer of powers to a directly-elected mayor. In May 2015, the Chancellor, George Osborne, argued that:

It’s right people have a single point of accountability: someone they elect, who takes the decisions and carries the can. “

However, in the same speech, the Chancellor also suggested that he would “not impose this model on anyone”.

Some, though, would argue that the Chancellor’s approach is closer to the first statement. For instance, a group of North East MPs have challenged Ministers to “just be honest” and admit that they forced the North East Combined Authority to accept an elected mayor. Interestingly, Durham County Council, a member of the North East Combined Authority, is set to allow residents to vote on the new deal. Yet, even if the public voted against the deal, the Cities and Local Government Devolution Bill provides that the Communities Secretary has the power to eject a combined authority member, and continue with the deal.

Similarly, it’s been reported that the Department for Communities and Local Government (DCLG) has explicitly told Suffolk and Norfolk that they would need a directly-elected mayor if they want major powers to be devolved.

The LGA has recently suggested that the government should look to identify alternatives to directly-elected mayors.

Health and social care devolution

During the debates, concerns have been raised over whether devolving health services would mean that health services would no longer be subject to national standards. In the House of Lords, Baroness Williams attempted to clear this up, explaining that services would still be part of the NHS and the social care system and national standards would apply.

However, this led to Lord Warner questioning how ‘devolved’ health services would really be. Chris Ham, Chief Executive of the Kings Fund, also stated that:

The unanswered question is how much freedom public sector leaders will have to depart from national policies in taking greater control of NHS resources.”

He suggested that this issue would need to be worked on.

 Will the Bill bring devolution to English regions?

The great advantage of the Bill is that it provides flexibility for local areas to negotiate their own devolution deal. But, as we have seen from already signed agreements, combined authorities may have to agree to terms that are at odds with the local electorate. For example, in 2012 the electorate of Manchester voted against directly-elected mayors. Yet, a couple years later, they became the first combined authority to sign an agreement with the Chancellor.

Some, however, will say that genuine devolution will only be achieved through devolved finances. This has already started to happen with the Chancellor announcing that local authorities will be able to retain business rates.

Overall, though, the devolution journey has just begun. Each local council will make their own arrangements, and will be answerable to their own electorate. Ultimately, it will be for them to decide through the ballot box whether genuine devolution has been delivered.


The Bill will return for further consideration in the House of Commons on 17 November 2015.

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