Select committee: Business, Innovation, Science and Trade Committee

Post-pandemic economic growth: Levelling up - local and regional structures and the delivery of economic growth

Closed Opened 24 Jul 2020 Closed 3 Dec 2021 14 recommendations 4 conclusions
Inquiry scope (the committee's words)
This sub-inquiry - Levelling up: local and regional structures and the delivery of economic growth - forms part of the Committee’s overall ‘super-inquiry’ into Post-Pandemic Economic Growth. Our ‘levelling up’ inquiry will look at how local and regional government structures (including the role of powerhouses, local enterprise partnerships and growth hubs, city and regional mayoralties, and councils) could be reformed or better equipped to deliver growth locally. Read the call for evidence for more information about this inquiry .

Where it stands

The inquiry is closed, opened 24 July 2020.

The committee has published 1 report, most recently Third Report - Post-pandemic economic growth: Levelling up on 22 July 2021.

The government's response

Published 3 December 2021. The deadline was 22 September 2021.

Summary written by Accountability Index from the government's response. It is not the government's own words.

The government's response welcomes the Committee's report as a contribution to the forthcoming Levelling Up White Paper, accepting some recommendations while stating it has answered others only "insofar as possible without prejudicing live policy development".

  • On Covid-19 analysis, it "recognise[s] the importance" of factoring this into levelling up planning and says it is undertaking "a programme of work" to understand structural shifts in the economy, to feed into the agenda.
  • On a coherent plan, it is "committed to publishing" the Levelling Up White Paper and says "Further detail on our plans will be included" there, without giving a date or a detailed road map.
  • On departmental contributions, it "agree[s] with the Committee's recommendation" and says the White Paper "will assist in setting out how the work of different Departments fits into a wider Levelling Up strategy".
  • On metrics and accountability, it points to Spending Review 2020 priority outcomes and Outcome Delivery Plans, and says "Updated priority outcomes and metrics will be published at the next Spending Review."

Read the government's response ↗ Report an error

Recommendations and conclusions 18 shown

Conclusion 1

Conclusion · Third Report - Post-pandemic economic growth: Levelling up · Addressed to Department for Business and Trade

Concluded (the committee's words)
The Prime Minister, from the first day of his premiership, identified levelling up as a major focus of Government policy. It was featured in the Conservative Party Manifesto in 2019 and was a central theme of the programme for government, set out in the Queen’s Speech in May 2021. While it is frequently referred to by the Prime Minister and the Cabinet as the central purpose and mission of this Government, it has yet to be defined beyond its aim of ‘improving everyday life and life chances’.

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Conclusion 2

Conclusion · Third Report - Post-pandemic economic growth: Levelling up · Addressed to Department for Business and Trade

Concluded (the committee's words)
Given the Government’s own focus on its levelling up agenda, the lack of clarity around its meaning and how it translates into specific policy initiatives and strategies is stark. As it currently stands, levelling up risks becoming an everything and nothing policy, not owned by any particular Minister or Department, and without any means in place of evaluating or assessing its impact or efficacy as policy in ‘improving everyday life and life chances’.

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Recommendation 3

Recommendation · Third Report - Post-pandemic economic growth: Levelling up · Addressed to Department for Business and Trade

Recommended (the committee's words)
There is no doubt that geographical inequality is a structural problem in the UK and attempting to address these inequalities should be at the heart of the UK’s plans for economic recovery post-pandemic. These plans should be focused on longer-term goals, rather than just the life span of political cycles, requiring a deeper level of consensus. Whilst we recognise that there are inequalities between regions in the UK, there are also inequalities within regions, with pockets of wealth and pockets of severe deprivation. The levelling up agenda must also seek to tackle inequality within regions, not least in cities that are seen to be well performing.

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Recommendation 4

Recommendation · Third Report - Post-pandemic economic growth: Levelling up · Addressed to Department for Business and Trade

Recommended (the committee's words)
The impact of Covid-19 has not been uniform, and the extent of these differences may not be known for some time. The Government should factor detailed analysis of the impact of Covid-19 into its planning for, and delivery of, the levelling up agenda.

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Recommendation 5

Recommendation · Third Report - Post-pandemic economic growth: Levelling up · Addressed to Department for Business and Trade

Recommended (the committee's words)
The current available documents on the policy instruments the Government aims to use to level up—the Conservative Party Manifesto, its submission to this inquiry and the 2021 Queen’s Speech—show a wide ranging and disjointed programme of random policies from an obesity strategy, an increase in police officers, to funding on A roads and the creation of Freeports. Although these policies are all very interesting and welcome, it is difficult to see how they all tie together under one over-arching strategy. The cohesion of the whole has not been well described to identify how these fit together. If the Government is serious about levelling up and for it to be a substantive strategy rather than merely a slogan, it must spell out a coherent ‘plan’ as a matter of urgency.

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Recommendation 6

Recommendation · Third Report - Post-pandemic economic growth: Levelling up · Addressed to Department for Business and Trade

Recommended (the committee's words)
We recommend that the promised Levelling Up White Paper sets out a coherent plan for levelling up. This must set out, in detail, a road map and timeline for the delivery of the wide range of policies proposed. Fundamentally, it must set out what problems and issues these policies are designed to address in terms of the levelling up agenda, both, as individual policy initiatives in their own right and collectively in how they fit together as part of the wider strategy to deliver the Government’s ambitious desire and commitment to level up.

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Recommendation 7

Recommendation · Third Report - Post-pandemic economic growth: Levelling up · Addressed to Department for Business and Trade

Recommended (the committee's words)
Despite its large-scale ambition and promised additional funding, it is unclear whether the levels of funding available to local areas (via levelling up) will equal, never mind exceed, historic levels of UK and EU funding to local government. Given the state of public finances following Covid-19, the Government should be realistic and clear about the scale of its levelling up ambitions.

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Conclusion 8

Conclusion · Third Report - Post-pandemic economic growth: Levelling up · Addressed to Department for Business and Trade

Concluded (the committee's words)
Nor is it clear how levelling up is different to past regional policy and how it will therefore succeed in areas where previous regional policy has failed. Ministers offered no adequate response to this.

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Recommendation 9

Recommendation · Third Report - Post-pandemic economic growth: Levelling up · Addressed to Department for Business and Trade

Recommended (the committee's words)
The funding available to achieve levelling up is disparate and lacking any overall coherent strategic purpose or focus. Individual departments should be clear on what their contribution to levelling up will be in line with a clear strategy and agenda.

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Recommendation 10

Recommendation · Third Report - Post-pandemic economic growth: Levelling up · Addressed to Department for Business and Trade

Recommended (the committee's words)
Funding for levelling up should be explicitly and directly linked to the identified issues that the Government are seeking to address, with clear metrics on what that money is seeking to deliver. There is an inequality in the capacity of local areas to bid for government funds. Whitehall should have mechanisms or procedures in place to ensure that it is not the most well-resourced authorities who are successful in securing funding. The Government needs to ensure that those without this capacity do not lose out, including ensuring appropriate funding is available for future rounds.

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Conclusion 11

Conclusion · Third Report - Post-pandemic economic growth: Levelling up · Addressed to Department for Business and Trade

Concluded (the committee's words)
Regional and local devolution is incoherent and inconsistent across England. In some areas, this can result in duplicative and ineffective outputs. In other areas, this results in communities which feel left behind, without the support or capacity provided by other tiers of local or regional government.

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Recommendation 12

Recommendation · Third Report - Post-pandemic economic growth: Levelling up · Addressed to Department for Business and Trade

Recommended (the committee's words)
The Levelling Up White Paper (incorporating the Devolution White Paper) needs to be bold and progressive. It should clarify which tiers of devolved and local government in England are responsible for delivering which levelling up objectives and then ensure those tiers are adequately resourced to deliver on those objectives, as well as providing fair distribution of those resources across the whole of England.

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Recommendation 13

Recommendation · Third Report - Post-pandemic economic growth: Levelling up · Addressed to Department for Business and Trade

Recommended (the committee's words)
We noted that some regional and local authorities performed better than others, which in some cases was due to the size, institutional capacity or leadership provided within those tiers of government. We recommend that Ministers consider how to 34 Post-pandemic economic growth: Levelling up report on the effectiveness of different local and regional authorities in contributing to levelling up. Businesses and investors require clarity on who is leading the local levelling up agenda in each economic area in England.

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Recommendation 14

Recommendation · Third Report - Post-pandemic economic growth: Levelling up · Addressed to Department for Business and Trade

Recommended (the committee's words)
As we highlighted in our recent report on industrial policy, the local industrial and economic insights and intelligence that came from creating Local Industrial Strategies should not be lost. We recommend that the Government provide support and funding through its new regional Cities and Local Growth Unit teams to update and adapt the published and remaining ‘oven ready’ Local Industrial Strategies to incorporate the post pandemic circumstances and Government’s Plan for Growth. These local strategies can provide the ‘bottom up’ mechanism, for evidence to flow from the regions to the centre, informing the Government’s over-arching strategy on levelling up.

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Recommendation 15

Recommendation · Third Report - Post-pandemic economic growth: Levelling up · Addressed to Department for Business and Trade

Recommended (the committee's words)
We also recommend that the Cities and Local Growth Unit work with the Office for National Statistics to agree a uniform set of local economic metrics to determine progress in achieving them.

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Recommendation 16

Recommendation · Third Report - Post-pandemic economic growth: Levelling up · Addressed to Department for Business and Trade

Recommended (the committee's words)
There should be a clear direction from No10 on which Department will be responsible for delivering which outcomes and how. We recommend that the Government establish a Cabinet Committee to oversee the co-ordination and delivery of the levelling up agenda across Whitehall, co-ordinating funding allocations and delivery with the devolved administrations in Scotland, Wales and Northern Ireland. The Cabinet Committee should engage with local and regional leaders to support the delivery of the agenda.

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Recommendation 17

Recommendation · Third Report - Post-pandemic economic growth: Levelling up · Addressed to Department for Business and Trade

Recommended (the committee's words)
We recommend that the Government should set out what it envisages a ‘levelled up UK’ would look like and agree a set of metrics by which progress towards this vision can be measured. We recommend that the assessments should be based on measurable outcomes linked to short, medium and long-term milestones and goals. We look forward to seeing the work, which has been undertaken by Neil O’Brien MP and the Levelling Up Task Force in this regard, and expect it to be a core element of the promised White Paper.

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Recommendation 18

Recommendation · Third Report - Post-pandemic economic growth: Levelling up · Addressed to Department for Business and Trade

Recommended (the committee's words)
The Government needs to set metrics on levelling up for each Department. Performance against these metrics should be published annually and monitored by the National Audit Office.

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Reports

1 report

Oral evidence sessions

4 sessions

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Date Session and witnesses Source
18 May 2021
Levelling up; Industrial decarbonisation
Aaron Goater · Committee on Climate Change, Kate O'Neill · Ministry of Housing, Communities and Local Government, Luke Hall · Housing, Communities and Local Government, Mercedes Maroto-Valer · Heriot-Watt University, Nick Molho · Aldersgate Group, Paul Scully · Department for Business, Energy and Industrial Strategy
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24 Nov 2020
Post pandemic economic growth: Levellying up; Post-pandemic economic growth: Levelling up
Andrew Carter · Centre for Cities, Henri Murison · Northern Powerhouse Partnership, Katherine Bennett · Western Gateway, Marvin Rees · Bristol City Council, Mr Duncan Simpson · Taxpayers' Alliance, Rachael Greenwood · Midlands Engine, Rokhsana Fiaz · Newham Council, Sir Peter Soulsby · Leicester City Council, The Lord Kerslake · UK 2020 Commission
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22 Oct 2020
Post-pandemic economic growth: Levelling up
Jamie Driscoll · North of Tyne Combined Authority, Rt Hon Andy Burnham · Greater Manchester Combined Authority, Steve Rotheram · Liverpool City Region Combined Authority, Tim Bowles · West of England Combined Authority
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1 Oct 2020
Post-pandemic economic recovery: Levelling up; Oral evidence
Chris Fletcher · Greater Manchester Chamber of Commerce, Councillor Sue Baxtor · National Association of Local Councils, Councillor Susan Hinchcliffe · Local Government Association, Louise Bennett OBE DL · Coventry and Warwickshire Chamber of Commerce, Mark Bretton · THE LEP Network, Sandy Needham DL · West and North Yorkshire Chamber of Commerce, Stuart Elford · Devon Chamber of Commerce
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Who gave evidence

26 witnesses

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WitnessOrganisationSessions
Aaron Goater · Industry Lead Committee on Climate Change 1
Andrew Carter · Chief Executive Centre for Cities 1
Chris Fletcher · Campaigns Director Greater Manchester Chamber of Commerce 1
Councillor Sue Baxtor · Chairman National Association of Local Councils 1
Councillor Susan Hinchcliffe · Vice Chair of the City Regions Board Local Government Association 1
Henri Murison · Director Northern Powerhouse Partnership 1
Jamie Driscoll · Mayor North of Tyne Combined Authority 1
Kate O'Neill · Director of Policy, Cities and Local Growth Unit Ministry of Housing, Communities and Local Government 1
Katherine Bennett · Chair Western Gateway 1
Louise Bennett OBE DL · Chief Executive Officer Coventry and Warwickshire Chamber of Commerce 1
Luke Hall · Minister for Regional Growth and Local Government Housing, Communities and Local Government 1
Mark Bretton · Chair THE LEP Network 1
Marvin Rees · Mayor Bristol City Council 1
Mercedes Maroto-Valer · Director, Research Centre for Carbon Solutions Heriot-Watt University 1
Mr Duncan Simpson · Research Director Taxpayers' Alliance 1
Nick Molho · Executive Director Aldersgate Group 1
Paul Scully · Minister for Small Business, Consumers and Labour Markets Department for Business, Energy and Industrial Strategy 1
Rachael Greenwood · Director Midlands Engine 1
Rokhsana Fiaz · Mayor Newham Council 1
Rt Hon Andy Burnham · Mayor Greater Manchester Combined Authority 1
Sandy Needham DL · Chief Executive Officer West and North Yorkshire Chamber of Commerce 1
Sir Peter Soulsby · Mayor Leicester City Council 1
Steve Rotheram · Mayor Liverpool City Region Combined Authority 1
Stuart Elford · Chief Executive Officer Devon Chamber of Commerce 1
The Lord Kerslake · Chair UK 2020 Commission 1
Tim Bowles · Mayor West of England Combined Authority 1