Sub-National Review update - March 2009

Local Government Yorkshire and Humber (LGYH) is at the forefront of turning the Government's review of economic development and regeneration into a reality for the region, making sure that national policies and new legislation is grounded in what local councils and communities really need.

But what, exactly, is the Government trying to achieve, and what does it really mean for people living and working in Yorkshire and the Humber? This article aims to make some sense of the sub-national agenda and explain what this might mean for the region's future.

The Sub-National Review of Economic Development and Regeneration

The Review of Sub-National Economic Development and Regeneration - SNR - was first announced by Government in the 2006 Budget. Its aim was to take stock of the various measures that Government had put in place since 1997 to improve economic development across the regions and tackle pockets of deprivation.

The SNR was seen as an integral part of the Government's announcements around promoting greater devolution and ensuring regions and local areas play a greater role in tackling the challenges they face. It also supported the focus on strong cities and city-regions as key drivers for economic and social prosperity. Nevertheless, there were some concerns amongst councils that the focus on regional governance could actually serve to undermine the roles and responsibilities of local authorities as the democratic leaders of their communities.

The outcome of the SNR was published in July 2007, recommending that Local Authorities be given new powers and incentives to drive local prosperity, economic growth and regeneration, tackle social deprivation and address inequality. It called for regional governance to be simplified, and recommended that existing strategies at the regional level such as Yorkshire Forward's Regional Economic Strategy and the Yorkshire and Humber Assembly's Regional Spatial Strategy and Regional Framework - be integrated and re-assessed.

Implementing the SNR

Following publication of the SNR, the Department for Communities & Local Government (CLG) and Department for Business, Enterprise & Regulatory Reform (BERR) carried out a consultation exercise on how to take the recommendations forward. In November last year CLG and BERR published their joint response, which committed Government to:

• creating a new duty on local authorities to carry out economic assessments of their areas, in line with Government guidance;
• creating new statutory (but voluntary) sub-regional authorities for economic development purposes and also allowing for the creation of multi-area agreements for authorities to work together towards shared economic objectives;
• giving the Regional Development Agencies (RDAs) e.g. Yorkshire Forward joint responsibility, with a Board of Local Authority Leaders, for the production, implementation and monitoring of a new single Integrated Regional Strategy (IRS); and
• bring to an end the Regional Assemblies, including the Yorkshire and Humber Assembly, in their current form and instead provide Local Authority Leaders and the RDAs collaborative responsibility for regional spatial planning matters.

What this means for Yorkshire & the Humber

In anticipation of the new regional arrangements and the need for local government and the Regional Development Agencies (RDAs) to work jointly on the new single Integrated Regional Strategy (IRS), LGYH and Yorkshire Forward submitted a combined response to government consultation, explaining how we proposed to work together to make the Government's proposals work for Yorkshire and the Humber.

The LGYH and Yorkshire Forward model breaks the region down into four City-regions or Functional Sub Regions (FSRs), namely: the Leeds City Region; Sheffield City Region; Hull and the Humber Ports; and York and North Yorkshire. Each FSR will develop their own, sub-regional arrangements to promote greater economic prosperity by enhancing links between local authorities in these areas.

The Yorkshire & Humber model has been identified as good practise. Regional governance structures will be responsible by the end of this year for taking forward the IRS for Yorkshire and Humber:

• A LGYH Leaders' Board, consisting of 8 council Leaders (2 from each FSR), working alongside Yorkshire Forward's Board, as a Joint Regional Board (JRB) to lead on the IRS and regional spatial planning decisions.
• Four Thematic Boards, to provide expert strategic advice to the JRB on the issues of Planning, Regeneration and Housing, Work and Skills, and Transport. Two of these Boards are to be chaired by LGYH representatives and two by Yorkshire Forward.
• A separate Independent Board to provide challenge on the subject of sustainability and ensure that this is reflected across all Thematic Boards.
• LGYH-led networks of council Leaders and Chief Executives to ensure that wider health, community safety and cultural issues can be built into the single IRS.

In the meantime, before the new legislation is in place, Yorkshire Forward and LGYH have agreed interim arrangements to make sure that regional planning decisions can continue to be made following the decision to dissolve the Yorkshire & Humber Assembly from 1 April 2009.

The Yorkshire & Humber model ensures that the four Functional Sub-Regions, all 22 local authorities, police authorities, fire and rescue authorities, National Parks and, through them, the numerous voluntary, neighbourhood and community partners can work together to ensure that the new single IRS and subsequent delivery plans are built, genuinely, from local-level and FSR priorities.

Through LGYH's efforts our regional strategies will now be connected directly to delivering better outcomes for communities across the region. Council Leaders and Chief Executives, through LGYH, are taking a key, strategic decision-making role at the regional level for the first time, and helping to ensure our plans and priorities for Yorkshire & Humber are the right ones to improve prosperity and well-being across the region.

Where to go for more information

The links below provide further information on the Government's policies surrounding the SNR and IRS, as well as the organisations working together to make the new arrangements work for Yorkshire and the Humber.

- www.communities.gov.uk

- www.lgyh.gov.uk

- www.yorkshire-forward.com