Business West is running a new Spotlight On Series, which will delve into key issues of concern for our region. This is our first piece; a Spotlight on Devolution. A Spotlight on International Trade will follow soon.

Business West recently polled 261 businesses across the South West about their views on the devolution of powers from central to regional government. Our survey results reveal a nearly even split in the business community's opinion on the impact of devolution in England, with a slim majority of 51.3% believing that transfer of powers from central to regional governments would be beneficial. Conversely, 48.7% do not see devolution as beneficial.  

Why are the results so close (and rather reminiscent of Brexit)? We are not certain. However, we think there is an information gap; a lack of clarity on what English devolution is and what it means for business and our region. At Business West, we believe that greater devolution is a way to drive social mobility and improve regional productivity and prosperity, which in turn boosts the UK economy. 

The next government, whatever form it takes, will face challenges in delivering the economic growth needed to tackle the challenges we face. Greater devolution can provide a pathway for delivering that economic growth.  

The South West is overlooked when it comes to ‘levelling up’, yet it is fundamental to the UK’s prosperity. Greater devolution in areas such as housing, jobs and infrastructure, alongside appropriate resourcing, and a collaborative and constructive devolved culture, will help make our region a better place to live, learn and work.

So, what exactly is English Devolution?

While most of us are no doubt familiar with Scottish, Welsh and Northern Irish devolution, the concept of English devolution is perhaps less well known. 

English devolution represents a shift in governance, bridging the gap between national government and local councils, rooted in the belief that local decision-making can significantly impact economic and social outcomes. In short; those that live and work in a region know the challenges and opportunities best.  

It’s about putting more power in local decision makers’ hands. This process enables a more localised approach to governance, providing regions with greater control over issues such as transportation, housing, and skills training, which are critical to local economic development and a healthy business environment.

What do businesses need to know about devolution?

Our Managing Director, Phil Smith, says

“Local authorities have very little money to invest in the infrastructure and services that we need to drive regional productivity. We therefore urgently need greater private sector investment. Clear regional leadership gives private sector confidence in partnerships that can help achieve shared objectives.” 

“In order for us to really make the most of devolution, we need greater unity across local authorities and a regional strategic plan. Our region is geographically, demographically, and politically diverse, and this has resulted in a lack of a cohesive vision, ambition and leadership on the direction of transformation and change.”  

“We need a strategic plan that includes the ambitious, and joined-up, delivery of new homes, jobs and infrastructure across local authority boundaries.” 

Professor Nick Pearce, Director, Institute for Policy Research, University of Bath, said:

“Devolution in England has gathered pace in the last decade and whoever wins the forthcoming general election will build on the new Mayoral Combined Authorities and seek to devolve further powers and responsibilities to them. That is important for businesses because devolution enables better integration of public policy at the local and regional levels, opens up more space for innovation and experimentation, and enables elected leaders to respond more effectively to local needs.” 

“Our region needs to make significant steps towards Net Zero, build more homes, and invest more in infrastructure and skills in the next Parliament. Done well, devolution can help it more effectively meet all those challenges. Our region should be as ambitious as any other part of England in seeking more of the power and control that devolution offers.” 

We hope a new government brings a greater commitment to English devolution.

Business West, in partnership with the University of Bristol, the University of Bath, and the University of the West of England, have founded the Futures West Foundation for sustainable and inclusive economic growth. This foundation will help make the case for devolution of powers and responsibilities, with the aim of promoting sustainable and inclusive economic growth to help our region flourish. 

Further reading:  

• Local Government Association: Devolution Explained
• Institute of Government: English Devolution