Calls for devolution grow across the UK
A year-long study by the RSA City Growth Commission has called for the devolution of powers to UK cities, estimating that it could boost economic growth by £79bn by 2030.
The Scottish referendum has ignited the argument for localised powers and the RSA report has furthered fuelled the fire with its claim that “our centralised political economy is not ‘fit for purpose’.”
The ‘Unleashing Metro Growth’ report highlights 15 areas across the UK, labelled ‘metros’, that it believes would benefit from being handed more power, allowing greater freedom to make decisions on matters such as tax and investment.
“This is not about a transfer of economic power from North to South or West to East,” says the study, “it is about the rise of cities, the concentration of productivity, innovation and creativity that will drive our economic future.”
The report also highlights the need for the UK to be better connected, both digitally and physically. An improved broadband network and an underground of the north are just two of the suggestions put forward to boost economic growth.
The commission, chaired by economist Jim O’Neill, said “There needs to be a radical reshaping of the UK’s political economy, with our metros given sufficient decision making powers and financial flexibilities in order to become financially self-sustrainable.”
The findings of the report could set in motion a fundamental change in the way that decisions are made across the country. The RSA (Royal Society for the encouragement of Arts, Manufacturers and Commerce) hopes that the political parties will act on the report and have draft legislation in place by next year.
Commenting on the report, Chancellor George Osborne said: “I warmly welcome the overall report. It makes a strong contribution to delivering the northern powerhouse I am determined to build. The commission recognises that for cities to be successful, they need directly elected mayors, with real power.”
So while the debate over Scottish independence started the ball rolling, it now seems that the focus has moved on to devolved powers in England. If the findings of the report are accurate, then it is hard to argue against the benefits of giving more power to local governments.
What do you think about the recommendations made by the RSA? Do you agree that local governments should have more power? Let us know by leaving a comment below.
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