Planning matters

The Secretary of State for Levelling Up, Housing and Communities and the four constituent councils of Derby, Derbyshire, Nottingham and Nottinghamshire have agreed the first of the Mayoral Combined County Authority deals for the East Midlands (EMMCCA). After years of attempted devolution deals in the area, it is a notable achievement for the new model that the constituent authorities came together in February following the publication of the Levelling Up and Regeneration Bill.

The devolution deal, is contingent on the LURB passing through in to law, and will become one of the first Mayoral County deals, a ‘level 3 devolution deal’ as proposed in the LURB’s framework. The deal covers an area that matches the D2N2 Local Enterprise Partnership – Derbyshire, Nottinghamshire and the two cities of Nottingham and Derby, this provides a significant scale for strategic decision making (2.2 million residents and a GVA of over £50.5 billion).

Amongst urban geographers and economists, there has been some debate about whether the new deal matches the economic geography of this area, the same has also been said for the D2N2 LEP, pointing to the difficulties of managing two distinct city economies of a similar size under a single East Midlands deal. However, the experience of the West Midlands and its three cities (albeit with a clearer hierarchy of city sizes) provides a successful model to pursue. Supporters of the deal point to the new funding already agreed and ensuring the region has a ‘seat at the table’ for further funding rounds and new powers that are unlocked through this devolved governance structure. These benefits it is suggested will ensure that the East Midlands keeps up with their Midlands Engine neighbours, with the accelerated investment and decision making in the West Midlands Combined Authority.

After a number of years of negotiations for differing devolution deals, it is useful to look into the details as to how this new model has been negotiated so that both the constituent authorities and the Government have signed up.

 

The deal agrees a long term (30 year) funding envelope of around £1bn investment, on a per capita basis, UK Onward analysis puts this at a similar level of per capita spending as the other devolution deals (around £17/18 per capita per annum). Interestingly it does not appear at this stage to vary between established ‘first wave’ devolution deals and the newer Mayoral Combined County Authority deals, whereas the powers that are devolved and the structure of the institutions does differ.

The directly elected East Midlands Mayor will be a new high profile figurehead responsible for the area. Significantly, their new powers will include the power to designate a Mayoral Development Area and then set up a Mayoral Development Corporation. This could see the next stage of the East Midlands Development Company given a significant boost. The Mayor will also have housing and land acquisition powers to support housing, regeneration, infrastructure and community development and wellbeing.

However the proposal is also careful to navigate the complex local governance tapestry, as such the EMMCCA is made up of the mayor, and eight elected members (two from each constituent council including each lead member). “Devolution of power and responsibilities will be to the two upper tier and two unitary authorities but the deal respects the importance of the continued role of the eight Derbyshire and seven Nottinghamshire district and borough councils. The deal principally devolves national powers ‘down’ rather than powers from across the constituent councils ‘up’. This means place making functions will be delivered through the existing local planning authority arrangements. This also includes the power of county members to ratify development corporations if any of the mayoral development area includes their area. Indeed the agreement makes clear:

“No local authority functions are being removed from any local authority in the area, excluding transport functions as agreed with the Constituent Councils.

Where existing functions or resources currently held by Constituent Councils are to be shared with the mayor and the MCCA, this must be agreed by the Constituent Council(s).”

As our previous research set out, the importance of effective structures and institutions will be key to effectively targeting investment priorities.

 

The devolution deal comes with new regeneration, housing and land funding (Over £17 million for new homes on brownfield land in 2024/25, and £18 million capital funding committed over this Spending Review period to support the delivery of housing priorities). Alongside the funding, The Government has also committed to “using the platform of this deal to … unlock transformative regeneration and housing opportunities”,

Previous Lichfields analysis of the need and opportunity for levelling up investments was set out in Routes to Growth. According to our ‘high level’ analysis, four of the 16 local authorities across the Combined Authority are in the highest of three priority groupings for both socio economic need and opportunity for investment. Although only designed to indicate a broad geography of need and opportunity, it is these areas which are both seen as a priority for ‘levelling up’ efforts, and might offer the opportunity to capitalise on new investment quickly due to higher commercial and residential vacancy levels and brownfield land opportunities. All these areas (Bolsover, Chesterfield, North East Derbyshire, Bassetlaw) are to the North of the EMMCCA and are neighbouring areas which also gives a strategic geography for where decision makers might choose to target some ‘levelling up’ investment.

 

 

Following the publication of the Levelling Up and Regeneration Bill, the incentive for more areas to come forward with plans for devolution deals is clear. Leaders of the East Midlands councils hope that the scale, funding and status of a new deal will ensure they are ‘at the top table’ for current and future rounds of devolved decision making and investment. As we reflected in February: areas will need to create new structures and political arrangements if they want to maximise the potential for devolved funding and powers to be agreed locally. Established and effective institutions will be better placed to make decisions and allocate funding more efficiently. The Government make the point that this is a first step:

“This agreement is the first step in a process of further devolution. As institutions mature, they can gain greater responsibility, and the East Midlands MCCA will be able to deepen their devolution arrangements over time on the same basis as existing Mayoral Combined Authorities (MCAs), subject to Government agreement.”

In practice, the EMMCCA deal, although long in the making could provide considerable positive outcomes for the region. Having a new Mayor and the first MCCA structure should help to win funding, drive investment and organise strategically to make the region more productive and competitive. As others have pointed out, it will be incumbent on the constituent authorities and all parties involved to strategically target resources effectively across the area, and build up their institutions to tackle the area’s strategically important priorities.

The extent to which the new Prime Minister continues to prioritise ’Levelling Up’ through funding, political capital and devolution will be a key part of how they are scrutinised over the next few months, however, assuming that this new type of deal is ratified, it will also be important to continue to devolve more decision making and funding. The new MCCA deal clearly provides the East Midlands leaders with the (long awaited) model of devolution and potential new institutions and structures they believe are needed to deliver change for their area, whether this momentum carries on to new deals for more areas - is a key question for the next Prime Minister.