Sub-National Review of Economic Development and Regeneration (SNR)

What is it?

On 16 July 2007 the Government announced the initial outcomes from the Sub-National Review of Economic Development and Regeneration. Not unexpectedly, the SNR has a number of implications for the way in which organisations work together at a regional and a sub-regional level.

This was followed, in March 2008, by the publication ‘Prosperous Places’, Government’s proposals for taking forward the Sub-National Review. The deadline for consultation responses was 20 June 2008, and there were extensive discussions within the region on future governance models and ways of working.

Responses from the region were submitted to Government as part of this consultation exercise.

Government's response to the consultation was published on 25 November 2008. It is available from www.communities.gov.uk.

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What are the key recommendations in Prosperous Places?

There are a range of proposals in Prosperous Places on issues such as how economic development could be delivered at a local level, and how RDA delegation of funding may work. The proposals that are of direct relevance to the business of the Assembly however are:

Regional Assemblies: Regional Assemblies will not continue ‘in their current form’ after 2010. However, there is clearly an expectation that local authorities will work collectively at a regional level in some way, and that wider partners will continue to be involved in shaping policy. Many of the regional discussions have focused on the way in which this can best be achieved in the region.

Single Integrated Regional Strategies: SNR proposes bringing together the regional strategies, in particular the Regional Spatial Strategy and Regional Economic Strategy to form a Single Integrated Regional Strategy (SIRS) in each region. Regional Development Agencies (RDAs) will be responsible for preparing these integrated strategies on behalf of the region. In this region, agreement has been reached between Local Authorities and the Regional Development Agency that they will share joint responsibility for preparation of the SIRS.

Accountability: Local authorities in each region will be responsible for agreeing the integrated strategies and scrutinising RDAs. This accountability mechanism will need to work alongside the new regional ministers and proposals for regional committees.

Responses from the Region

Given the clear focus and steer given by SNR, Local Government Leaders and the Yorkshire Forward Board have had a key leadership role in shaping future arrangements. At a recent joint meeting they approved a position statement setting out proposals for the development and delivery of the Single Integrated Regional Strategy (SIRS).

Their response sets out proposals for the co-ownership of the SIRS process, with the establishment of a new Strategic Leaders’ Board that will work closely alongside representatives of Yorkshire Forwards Board.

The response (which can be downloaded below) also sets out plans for a number of thematic regional Boards to deal with Spatial Planning, Regeneration and Housing, Work and Skills and Transport. There is also the suggestion that there will be an additional Independent Board to ensure that the principles of sustainable development and economic opportunity for all are fully ingrained in the development and delivery of the SIRS.

Membership of the Boards is to be determined, but they will include representation from the functional sub regions, expert observers, key agencies and stakeholders. Their primary role will be to input into the development of the SIRS and ensure effective delivery by monitoring and reviewing the SIRS.

How will Partners be involved?

The regional response from the RDA and Local Government emphasises the important role that partners will play, particularly in the development of the SIRS. However, the way in which Partners are engaged, and the role that they will be expected to perform will change.

Partners currently engaged in the Assembly’s work responded to the Government’s consultation and expressed concern that they would play a much weaker role in new arrangements, particularly when it came to decision making. They also expressed their commitment to continue meeting as a group to add value to the new regional arrangements.

There are ongoing discussions between partners, local government and Yorkshire Forward about the precise role that they will play in new arrangements – for instance how they will relate to the development of the SIRS and how they may work within the new Board structures.

How and when will this be implemented?

All of these changes will be phased over the next two years with an anticipated completion date of 2010. However, Government has made it clear that where regions wish to move to new structures earlier than this they will be allowed to do so.

How will this work alongside national scrutiny proposals?

Plans for national scrutiny of regional agencies, through Parliamentary Select Committees, are beginning to clarify. Parliament’s Modernisation Select Committee published its report on 10 July 08, proposing that Regional Select Committees be established on a temporary basis until the end of this Parliament when there needs to be a review of their effectiveness. The full report is available online at: http://www.publications.parliament.uk/pa/cm200708/cmselect/cmmodern/282/282.pdf

The Committee suggests that these Select Committees reflect the political balance of the House rather than the region, and would meet six times a year. This would be supplemented with a Grand Committee in the region to be held twice a year. This will potentially be an important accountability mechanism in relation to a strengthened RDA and other agencies operating in the region (e.g. the Highways Agency, the new Homes and Communities Agency etc)

These proposals are only a recommendation from the Select Committee at the moment, and we await Government’s response.

Transitional Arrangements

Until the new arrangements are in place, the Assembly, working with regional and local partners, has an important role to play in ensuring continued delivery during the transition period. Key areas of work will be:

• Delivering ongoing partnership working and effective governance arrangements that allow the region to do business in the coming year (including the forthcoming Regional Funding Allocations exercise).
• Maintaining momentum on key policy work including climate change, energy, flooding, transport and sustainable development;
• Undertaking a partial review of RSS to take account of the Housing Green Paper, to continue to grow the regional evidence base, and to secure the regions strategy making and alignment capacity;
• Brokering the effective allocation of Single Regional Housing Pot; and
• Undertaking scrutiny of the Regional Economic Strategy until new arrangements are developed, including helping to shape those new arrangements.

Next Steps?

SNR makes it clear that we are moving into a different phase of regional working. Assemblies will no longer exist in their current form, RDAs will take on a newly expanded role, and different mechanisms for scrutiny and accountability will emerge which involve local and national politicians.

However, there is widespread confidence that the new arrangements will build from what we now have, maintaining partnership and accountability as key components and harnessing existing member and officer capacity to make regional working even better in the future.

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