Devolution revolution 'needed to boost manufacturing'

Central government must “get the devolution revolution back on track” to help boost business, a manufacturers’ association has said.

The “vast majority” of manufacturers in England are based outside areas covered by Devolution Deals – agreements between the government and local authorities on the devolution of powers – said the EEF. The body called for more deals to help businesses thrive in a new report, Fostering More Industrious Places – Getting the Devolution Revolution Back on Track.

Agreed Devolution Deals have focused on manufacturers’ priorities, such as better road and rail links, and removing other barriers to economic growth, the EEF said.

“Devolution Deals are landing in the right place, with manufacturers getting what they wanted to see from the process – more investment in transport and a stronger voice for their region,” said Chris Richards, the EEF's head of business environment policy. However, with no new deals signed in the past year, he said “progress on rolling out deals has stalled, risking the majority of manufacturers missing out on the benefits”.

The slowdown means businesses based outside areas covered by deals risk being left behind, the EEF said. It also criticised a “long-winded and cumbersome” approach to creating bespoke deals for local areas, and instead called for more deals based around common “core elements” to promote manufacturing.

The government must publish a new framework including the core elements and a guide for local areas to secure Devolution Deals, the EEF said.

“Devolution Deals are a good framework, and the government should double down and finish the job in getting deals rolled out to all areas,” said Richards. “They can achieve this by publishing what is on offer for local areas rather than continuing the game of ‘negotiation hide-and-seek’.”

Associations of local authorities and businesses known as Local Enterprise Partnerships should be put in charge of delivering tailored deals to match local challenges and growth opportunities, the EEF added.

“Across government, we are making huge strides towards rebalancing the economy and empowering local government through devolution, ensuring all parts of the UK succeed," a spokesman for the Department for Communities and Local Government told Professional Engineering. Work is ongoing for three new deals, the spokesman added, in the North of Tyne, Sheffield and the West Midlands.