Further devolution
Many places already have devolution deals, some, such as the Greater Manchester deal, were first agreed almost ten years ago. Over time, existing deals have been extended and areas that have agreed deals have been first in the line for additional funding for key growth areas such as transport. In the 2023 spring budget, both Manchester and West Midlands were awarded ‘trailblazer’ deals.
This was to pave the way for greater devolution and local autonomy for those areas with local institutional capacity and commitment.
At the present time, a Level 3 deal is the most lucrative deal a new area can get, but new Level 4 deals are on the horizon which, based on the trailblazers, will see areas receive enhanced flexibility over -
- transport
- skills
- housing
- net zero
local growth budgets - a single pot approach. Authorities need to meet a ‘readiness’ test which means not every place will get a Level 4 deal. Level 4 deals were announced is the Chancellor’s Autumn Statement (November 2023). To have a chance of receiving greater benefits, places need to already have a deal in place. Nationally, devolution is supported by both political parties.
The deal currently on the table for Hull and East Yorkshire is the first rung on the devolution ladder. Our sights are firmly set on what comes next, a Level 4 deal. Having greater control over the key drivers for economic growth and associated Adult Education budget to ensure job opportunities benefit those most distanced from employment, along with additional funding, with a single or ‘consolidated’ pot approach is a real prize. Chasing separate Government funding pots and reporting on them is extremely resource intensive for both authorities.
Our priorities for further devolution, once our Mayoral Combined Authority is established, include -
- to deepen our work with DWP, particularly to focus on our ambitions for a work guarantee to help meet our inclusion ambitions
- we would wish to see more funding for bootcamps and careers support to support people entering the workforce and support for digital inclusion, with the ultimate ambition being a consolidated long term funding pot
- funding for our retrofit programme, we have delivered extensive improvements in Hull, but there is a great deal more to do
- support for our businesses, particularly focussing on our R&D strengths, including developing investment zones and further support for our medi-tech hub
- support from the affordable homes programme to ensure we have sufficient good homes in the places people want to live so they can access employment opportunities
- deeper, joint working on flood risk and climate adaptation and resilience
- more freedoms and flexibilities with spending and additional funding for transport as well as place-based funding through the consolidated pot to reduce the intensity of chasing funding
- further support for the expansion of our digital infrastructure to cover our full area
- more investment and support for our work on natural capital