Business leaders’ organisation says English mayors need powers, not just responsibilities
Downtown in Business (DIB) has welcomed the publication of Prosper UK’s latest report, Set Up For Success? The Case for Greater Devolution, describing it as “an important contribution to the debate about how Britain finally unlocks regional economic growth.”
The report, produced by former West Midlands mayor Andy Street’s Prosper team, argues that England’s metro mayors should retain a meaningful share of the tax revenues generated by their own economies, including a proportion of income tax alongside other locally generated taxes, giving city regions greater financial independence and long-term certainty.
The report’s central argument – that local leaders cannot be expected to transform their economies whilst remaining financially dependent on Whitehall – is one that Downtown in Business has championed for many years.
DIB group chair and chief executive Frank McKenna said:
“For too long, governments of every political colour have talked about devolution whilst continuing to control the purse strings from Westminster. You cannot expect metro mayors to deliver economic transformation if they are still required to go cap in hand to Whitehall every time they want to invest.”
McKenna added that the emergence of powerful metro mayors has been one of the most successful constitutional reforms of recent decades but warned that the next phase must focus on fiscal autonomy rather than simply devolving more responsibilities.
“The first generation of devolution created visible leadership and stronger local accountability. The second generation must be about financial independence. If mayors are genuinely responsible for growing their economies, they should also benefit directly from that success.”
Downtown in Business believes that giving combined authorities greater control over the taxes generated within their own economies would encourage longer-term thinking, support infrastructure investment and provide greater confidence for private sector investors.
However, McKenna warned that fiscal devolution must not simply become another bureaucratic exercise.
“Devolution is not an end in itself. The objective is growth. Success should be measured by whether we build more homes, improve transport, create better jobs, attract investment and raise productivity. Businesses care far more about outcomes than constitutional structures.”
DIB also believes that stronger fiscal powers should be accompanied by greater accountability and closer collaboration between public and private sectors.
“Business has to be in the room when these decisions are made. Growth is delivered through partnership, not by politicians or civil servants working in isolation. The most successful city regions are those where the public and private sectors share a common ambition and work together to deliver it.”
Downtown in Business has consistently campaigned for deeper devolution through its Northern Power Towns initiative and its wider policy work on regeneration, investment and place-based economic growth. The organisation argues that giving local leaders greater control over transport, skills, planning and taxation will be essential if the Government is serious about narrowing regional economic disparities.
McKenna concluded:
“The Burnham Government has rightly made devolution one of its defining priorities. Prosper UK’s report shows what the next step should look like. If ministers genuinely trust local leaders to make decisions, they should also trust them with the resources needed to deliver economic growth. Britain will not become more productive by concentrating power in Whitehall. It will become more productive by backing our cities, towns and regions to succeed.”
DIB will be exploring the ideas of Proper UK at an event in Leeds with Andy Street and the former leader of the Scottish Conservative Party Ruth Davidson in September.
The Burnham government’s devolution drive will be a focus of DIBs annual ‘Talkin’ About Regeneration’ conference in September. CLICK HERE for further details.
To read the Prosper UK report on regeneration CLICK HERE.
