Devolution key to levelling up left-behind Britain

A new Centre for Policy Studies report has established the full extent to which wealth, talent, trade and investment are concentrated in London and the South East.

A Rising Tide, Levelling up left-behind Britain, published by the think tank, offers a detailed blueprint to spread prosperity more widely, including greater devolution of powers, funding and responsibility through a new Devolution Framework offering a base level of devolution around the country, a levelling up of mayoral powers and clarity on the devolution offer for other areas.

Furthermore, the CPS argues for further fiscal devolution, including return of decision-making for local authorities on council tax and examination of suitability of local income, corporation or tourist taxes, as well as localised transport and trade and investment policy-making, moving government departments and officials out of London, and the re-examination of the role of LEPs given their mixed record to date.

The gap between London and the rest of the country has widened to the point where no other region of the country, apart from the South East, is generating as much wealth per capita today as London was 20 years ago. London now attracts roughly three times more transport investment per head than the rest of the country; boasts the most successful education system and attracts the best talent; exports £100 billion more than any other region bar the South East; and attracts more than three times as much Foreign Direct Investment.

To correct this, the report argues that the government should commit itself to a serious programme of devolution, predicated on the view that local leaders are best placed to know what is needed in their local area and reflecting the fact that healthy competition between areas will lead to better outcomes.

Robert Colvile, director of the Centre for Policy Studies, said: “The best way to level up Britain's regions is not to punish the south for its prosperity, but to give every part of Britain the freedom, and the tools, to compete for talent, investment and infrastructure. It's no coincidence that we are simultaneously one of the most centralised countries in Europe and one of the most geographically unequal.”

The report’s main author, Nick King, was Chief of Staff and lead policy adviser to the Chancellor Sajid Javid whilst he was Business Secretary and Communities Secretary.

He said: “In terms of economic performance our United Kingdom is not as united as we might like, with significant disparities between London and the South East and the rest of the country. The only way to close the gap and to bring about economic growth around the country is by giving the private sector every reason to invest and operate in those parts of our country that need investment most.

“Whether through devolution, infrastructure investment, a revamped approach to skills and education or the introduction of new business-friendly ‘Opportunity Zones’, this report sets out a plan for how the government can level up the economy and boost growth around the country.”