Rayner urged to press on with devo deal

The architects of Lancashire’s devolution proposal have written to deputy prime minister Angela Rayner urging her to seal the deal that was on the table before the general election.

Progress was halted when the election was called. Lancashire County Council, Blackpool Council and Blackburn with Darwen Council had been set to submit the county’s devolution proposal to the Conservative administration for approval.

The then levelling up, housing and communities secretary Michael Gove had then been expected to lay an order in parliament to establish the new combined county authority (CCA) before the summer recess, with the aim of it being established by the autumn.

However, Labour’s victory at the polls has sparked speculation that the current deal could be torn up by the new Westminster administration and renegotiated to include an elected mayor.

Lancashire Business View understands the three councils have written to Angela Rayner, who has pledged to transfer more powers out of Westminster and into the hands of local people. She is being asked to press on with the current deal and not to delay the county’s devolution journey.

Ms Rayner and the prime minister Sir Keir Starmer convened a mayoral roundtable at Number 10 last week.

The country’s 12 current metro mayors were called to the meeting to discuss a new “partnership approach” and how the government can scale up devolution to help to unlock economic growth and tackle regional inequality.

The prime minister also announced that the government will establish a Council of Nations and Regions bringing together the prime minister, the first ministers of Scotland and Wales, the first and deputy first minister of Northern Ireland, and the mayors of combined authorities.

New mayors established through this process would be eligible to sit on the Council of Nations and Regions.

The deputy prime minister has also pledged to introduce Local Growth Plans across the country. As part of this, mayors will be asked to identify local specialisms and contribute to work on a national industrial strategy.

The current deal that has been brokered for Lancashire does not involve a directly elected mayor.

Instead, Lancashire’s CCA aims to provide a single body for the whole of the county to champion its interests, deliver on local priorities and provide greater local accountability and decision-making powers.

The deal includes an initial £20m capital funding to support innovation led growth and net zero ambitions across Lancashire.

It has been proposed that further powers and funding would then be devolved to the CCA including for adult education.

A public consultation showed the majority of respondents supported the deal. Many of Lancashire’s largest and most strategic employers and organisations, including all five universities operating in the county, also showed their approval, through both the formal consultation and by letters of support.

However, a number of district councils in the county said they could not support the deal in its present form. They include South Ribble, whose new Labour MP is Paul Foster, its former leader.

In a statement issued following the calling of the election, Phillippa Williamson, leader the county council, Phil Riley, leader of Blackburn with Darwen Council and Blackpool Council leader Lynn Williams, issued a joint statement.

It said: “We remain committed to securing a devolution deal for Lancashire. We are convinced this is a good deal for Lancashire and one that builds the foundation for additional deals in the future. 

“The timing of a general election means we will not be able to finalise our deal as soon as we would have wished. However, we will continue to work together and be ready to conclude this with the new government when it is formed in July as we believe this remains a great opportunity for our county.”

Speaking this week Ms Rayner said: “With the prime minister, I had the pleasure of meeting the metro mayors in England. We discussed how to have proper, grown-up conversations around economic growth, and how to deliver that through better housing, skills, and jobs for local people.

“I want to work with more places to help them use these enhanced powers and role - because I want to drive growth in every part of the country. For any area considering it, now is the time to take the plunge and speak to us about how we can work with you to transform your regions.”

Reacting to the announcement from Ms Rayner, Tim Oliver, chair of the County Councils Network, urged the government to consider “using county geographies as the building blocks” for future deals.

He said it was the “right approach” to be flexible on governance arrangements. And he added: “Whilst there are benefits to mayors or directly-elected leaders, the reality is they are unsuitable for some county areas, as shown over the last few years.”

Frank McKenna, the group chair and chief executive of Downtown in Business, said: “Although the deal that was struck earlier this year was not rubber stamped by the Sunak government, I hope the new administration continues to progress with that agreement, recognising that this would be only a first step on a path that would give the second largest economy In the North West a much greater say and influence over its own future.”

A new board of county business leaders has also been created as part of the devolution process.

The board, representing the wider range of sectors and places across Lancashire, held its first meeting this week.

In their statement, following the calling of the election, the three council leaders said of the board: “One of their first tasks will be to help set Lancashire’s economic strategy, ensuring investment in infrastructure, skills and business support is targeted in a way that supports our wider ambitions.”