Business Secretary Jonathan Reynolds has admitted that areas in England could be 'at a disadvantage' if they do not have a mayor, warning that they risk missing out on opportunities such as trade missions.
Devolution a 'process, not an end in itself'
Appearing before the business, innovation, science and trade committee on Tuesday afternoon, Reynolds said his department wanted local authorities to 'come to us with an offer' and that devolution was a 'process, not an end in itself'. The MP for Stalybridge and Hyde faced questions on several issues, including the upcoming budget, trade deals with the EU, and how the government would deliver 'growth in every postcode'.
In July, shortly after becoming prime minister, Andy Burnham announced that English mayors would receive a share of income tax revenues for the first time, as part of a transfer of power out of Whitehall. Areas without a mayor, he said, would still be supported to establish strategic authorities.
Concerns over funding for non-mayoral areas
Sarah Edwards, Labour MP for Tamworth, said more clarity was needed on how funds would be directed to areas without a mayor, so that they 'don't get missed out'. Reynolds responded: "We've obviously been to India on a very successful trade mission with seven of the mayors… And the fact is that for areas that haven't got one of these mayors, you're going to be at a disadvantage, let's be honest. You're not on that plane."
Earlier this month, in a visit to India organised by the business secretary, the northern mayors promoted British trade and tourism. The government later claimed it could be worth £1 billion to the UK economy. Reynolds also claimed business 'tend to like the mayoral model for engagement' and there is a 'strong business demand' for it.
Budget devolution questions remain
When asked by Edwards how areas without a mayor would get adequate support, because 'otherwise all announcements have always been around the nexus of a mayoral authority', Reynolds said: "I hear that, I'm sensitive to that. But to quote what the godfather of Greater Manchester devolution always used to say – never go to the government with a begging bowl, go with an offer. And I say to those areas, come to us with an offer, tell us what you need and how you want the economy to be."
The UK's Department for Business and Trade (DBT) operates as a newly restructured department with an annual budget of approximately £17 billion and a workforce of around 8,500 people. Asked how much of that would be devolved by this time next year, Reynolds said he 'won't put a figure' on it.
"Devolution is a process, not an end in itself," he said. "Everyone has an interest in making sure this is a success."
However, Liam Byrne, chair of the committee, said: "If we've got a situation where we're not quite clear about the metrics judging the success of reindustrialisation, we're not quite clear about the metric for judging whether growth is being delivered in every postcode, and we haven't got the kind of fractions of your budget which may be devolved, we can just see a policy problem looming that we look forward to scrutinising in the months ahead."
