The Government’s White Paper on Devolution in England is hotly anticipated to land before Christmas, with much speculation that it will include radical proposals for local government, reducing the number of councils, and introducing large unitary authorities to replace the current two-tier system of districts and counties.
In anticipation, this new research paper by Jack Newman (University of Bristol) and Charlotte Hoole (University of Birmingham) analyses the complex relationship between local governance and economic productivity in England. The East of England emerges as a key area of focus, falling within what the authors term the "devolution periphery."
It's an interesting read but if you don’t have the time to wade through, we have summarised the key themes below (and you can watch the complementary animation here):
Governance and economic challenges
The East of England, particularly its coastal areas such as Norfolk, Suffolk, and Essex, faces systemic economic and governance challenges:
Low Productive Capacity: The region suffers from weak productivity metrics compared to the national average, a trend exacerbated by limited infrastructure, skills deficits, and underinvestment in research and development (R&D). Essex, despite its proximity to London, demonstrates particularly low productivity levels.
Governance Weakness: The region also lags in governance capacity, which is measured through local public spending and staffing per capita. The lack of robust governance structures has hindered the East of England’s ability to leverage devolution opportunities and attract investment.
Challenges unique to the East of England
The East Coast faces a combination of socio-economic and environmental vulnerabilities:
Economic Isolation: Poor digital and physical infrastructure isolates communities, limiting access to economic opportunities and reinforcing cycles of decline.
Demographic Strain: An ageing population, coupled with an outflow of young, skilled workers, reduces the region's labour market competitiveness.
Climate Risks: Environmental threats, including coastal erosion and flooding, add to the economic precarity of coastal towns.
Devolution and development
Limited Progress on Devolution: The East of England has seen limited success with devolution compared to other regions like Greater Manchester. While devolution deals were negotiated for areas such as Norfolk and Suffolk, progress has been slow, and some agreements have been shelved.
Potential for Improvement: Upcoming deals provide opportunities for local growth, but these require significant central government support and investments to overcome historical governance and economic weaknesses.
The role of anchor institutions
Despite these challenges, parts of the East of England show potential for transformation:
Cambridge and Peterborough: These areas, part of the broader East of England region, are exceptions, showcasing strengths in high-tech industries and R&D-driven growth. However, their success underscores the uneven development within the region.
Lessons from international models
The paper draws comparisons with Germany, France, and Italy, highlighting how stronger local governance and deliberate fiscal equalisation have reduced regional inequalities. These models suggest that without targeted governance and fiscal reforms, areas like the East of England risk falling further behind.
Conclusion
The East of England is on England’s "devolution periphery". This reflects the dual challenges of low productive and governance capacities. To address these issues, the paper advocates:
Enhanced Governance Capacity: Strengthening local institutions through increased funding and staffing to effectively utilise devolved powers.
Targeted Investment: Focused investments in skills development, infrastructure, and R&D to stimulate economic growth.
Strategic Devolution Agreements: Supporting the region’s transition through well-structured devolution deals that address local needs.
The East of England illustrates the broader difficulties of tackling spatial inequality in a fragmented governance landscape, requiring comprehensive and sustained interventions to drive equitable regional development.