From the perspective of New Zealand local authorities, Greater Manchester Combined Authority (GMCA) has won the localism lottery.
In the space of three years, the council has been given control over a number of key functions, including infrastructure, housing, skills development, carbon emission controls, transport, investment, as well as policing and health. Not only that, but the city will share in any economic uplift that this produces.
What makes this development remarkable is that it flies in the face of the UK’s traditional governance model, where central government has controlled almost every major decision that affected local authorities over the past 200 years.
That was certainly my impression as I stepped off the train in Piccadilly Station on Sunday afternoon. The only problem is that it was wrong.
The Greater Manchester deal was the result of hard work that began as far back as the 1980s. Indeed, the deal as discussed above was largely in place when Chancellor George Osborne launched the devolution agenda in 2014. It is now being extended to more cities.
Several factors were key to Manchester’s success. The first is that it invested in high level independent analysis, which produced evidence-based research to back the city’s case for devolution. The data was then shared with central government as a common resource.
The second was timing. The global financial crisis saw the UK shift into austerity mode and growth in health and welfare spending slowed relative to demand. GMCA’s pitch was effectively that if Whitehall did not want to try localism as a means of improving performance in these areas, central government was welcome to table its own strategy. In the end an absence of alternatives worked as a tailwind for devolution.
A third factor was also important, but it came about after the argument had been accepted. That factor was Osborne, whose position as head of the UK Treasury allowed him to champion these reforms in a remarkable manner.
There are clear lessons for New Zealand here. If local authorities seek greater decision making power, as Manchester did, then they should follow the city’s lead. This will require leadership, an evidence-based argument, and a shared set of goals. Oh, and one more thing: patience.
Jason Krupp is currently travelling overseas to undertake research on his upcoming localism project.
Doing it for themselves
30 October, 2015