North Yorkshire County Council has defended a £540 million devolution deal after a report found it to be the third lowest agreed across northern England.
A report by the think tank, IPPR North, analysed the deal in comparison with similar agreements struck in areas such as West Yorkshire and the Tees Valley.
The organisation looked at the proposed ‘gainshare’, which is the money provided by the government annually for the investment fund, and how it compared with other northern regions.
The report found that out of seven devolution agreements reached in the north of England, the North Yorkshire deal offered the third lowest investment funding per person.
The £540 million investment, which is spread out at £18 million per year over 30 years, came below the likes of South Yorkshire (£900m) and North of Tyne (£600m) in the analysis.
The analysis from IPPR North, which shows devolution investment funding per person.
The report comes after county council leaders agreed the long-awaited deal with ministers to devolve more powers, including an elected mayor, to North Yorkshire and York, in August.
Rosie Lockwood and Marcus Johns, of the IPPR, carried out the research into the deal which is set to go out for consultation this year.
Ms Lockwood said the fund would not “come close” to covering losses in local government cuts. However, she added that any funding was a step forward.
She said:
“Clearly this, or any investment fund alone, does not come close to the losses communities across the North have experienced because of austerity. And when shown alongside the north’s other initial devolution deals, as we have compared below, the fund comes fifth of the seven initial deals for size of investment fund per person.
“Nevertheless, the investment fund is a step in the right direction. It is better that decisions about how to spend this money are taken locally, in line with local priorities.”
Northern Powerhouse analysis
County council leaders defended the deal and pointed out that it was “only the beginning” of devolution in the county.
Cllr Carl Les, leader of the authority, said the agreement would give local officials “a seat at the table” to be able to negotiate further funding and powers from ministers.
Responding to the IPPR North report, he said:
“One of the key elements of the deal is an investment totalling £540 million over a 30-year period, as it provides flexibility to target money to specific schemes on a far more local level.
“While other devolution deals have secured larger figures of funding under their deals, this has to be placed in context, as this is simply just the start.
“Any devolution deal is about getting a seat at the table to build close working relationships with the government and evolve the initial agreement to ensure even greater benefits can be brought.
“As IPPR North acknowledges itself, this is not necessarily about where you begin, but where you’re going that counts – stating that a devolution deal is ‘just the beginning of a process that requires work, but has the potential to be transformative’.
“This means negotiating further deals in the future with the Government to bring even more decision-making powers and funding to York and North Yorkshire.”
Council officials also pointed to analysis by the Northern Powerhouse Partnership, a partnership group between civic leaders and businesses in the north of England.
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The research found that the £540 million investment would provide £23.31 per head of population per year across North Yorkshire and York — the second highest in the north.
It added that the only agreement which was higher was in North of Tyne, which amounted to £24.69 per person.
By comparison, the Liverpool City Region’s devolution deal provided £19.68 per head of population through the annual gainshare, while the figure is £10.88 in Greater Manchester.
Henri Murison, chief executive of the Northern Powerhouse Partnership, said:
“The £540 million which York and North Yorkshire has secured should go a long way towards transforming public services and driving up productivity in the region.
“Whether this means improving education and skills, providing better transport links, tackling climate change or ensuring better quality jobs and career opportunities, the funding under the investment fund is a vital resource for any devolution deal.
“Most importantly, the deal means the region gets a directly-elected mayor who will remain accountable to their voters.
“The very nature of devolution is about bespoke, local solutions which means that it’s normal to see some variation in what each authority has received in terms of funding.
“It’s also important to remember that the investment fund is just one element of any deal. Greater Manchester, for example, also has a housing investment fund.”
