Regional devolution can help rebuild trust in government through growth

It has been another bad period for trust in government. Relations between Whitehall and ministers are at a low ebb, No10 seems engulfed in unending crises, and voters still cannot see the change they voted for.

Meanwhile, the International Monetary Fund has predicted that Britain will be the most vulnerable G7 country exposed to economic shocks caused by the Iran war.

Yet, there is a part of the system providing hope and stability and that is regional devolution and local government.

The visibility of, and trust in, mayors is relatively high compared with that for MPs and most ministers. Unlike the divisive nature of national politics, mayors work in partnership with local council leaders, businesses, universities and community groups.

The regional and local government system feels more able to withstand political change, with local politicians living in the communities they represent and pursuing pragmatic polices that benefit their place with widespread support.

Most importantly, they are demonstrating they can get things done – that government can work for people. One of the most visible signs of this is that bus services are getting cheaper and better as mayors use their powers on bus franchising.

Greater Manchester led the way with the Bee Network and now South Yorkshire has launched its bus and tram People’s Network, with other mayors also making plans for taking over and improving bus services.

This is on top of the light rail and tram networks several British cities and regions already benefit from, with the Tyne Metro extension in the North East and mass rapid transit plans for Leeds and Bradford.

But the critical test is growth. This is what Britain desperately needs and is an even greater priority now that we face renewed economic risk. Government capital funding is coming through the regional and local system, including the City Densification Fund, the Northern Powerhouse Rail commitment, innovation zones, the £49bn of social housing investment and National Housing Bank.

Mayors, working with their local councils, businesses and investors, need to rapidly turn these into projects on the ground, such as fast-tracked affordable housing, with local jobs, training opportunities and the wider supply chain benefits this should bring.

Getting on the front foot on growth is an urgent necessity for regional and local leaders, due to the gathering storm clouds looming over local economies. We need focused and committed local leadership, working with local businesses with early warning of challenges on supplies, energy costs and other external factors that can affect business and trading viability.

During and after the financial crash of 2007-08, many cities formed emergency Economic Leadership Councils to co-ordinate their economic resilience. Mayoral combined authorities should use their Business Boards to perform this role now. Areas without devolution will need to create their own rapid response structures.

As Mike Emmerich wrote in The MJ, mayors also face an important challenge in how they respond to the chancellor’s fiscal devolution roadmap.

There are a great many things for them to consider: what might be on offer, the value of resources spent on this rather than on delivery, the balance of risk they are willing to take with greater fiscal skin in the game, and the extent to which new fiscal levers might be bespoke, or in a framework or package.

But the nub of this is that mayors will want to seize the opportunity and link this with how it will enable them to accelerate growth and reform. Growth, through new investment levers and the gainshare potential to keep more of the proceeds of growth. Reform, through reducing economic inactivity and supporting young people out of work or training, enabled by a radical extension of integrated settlements, including on welfare to work and skills.

Mayors can rebuild trust in democratic politics by demonstrating they can grow and reform local economies, building more homes, regenerating our towns and cities, supporting existing businesses, nurturing innovation, getting more people into good work and giving young people hope and jobs.

In these uncertain times that could make all the difference.