The Role of Regional Ministers
I was one of nine Regional Ministers appointed by the Prime Minister last July.
The job shows the importance that he – and all of us in Government – attach to regions like the North West.
That’s not just about improving performance but also accountability.
Just as individual regions are different so each of us has approached the job of Regional Minister in different ways.
But we have three things in common.
First, we are our region’s ambassadors in Whitehall.
We speak up for all the good things that our regions have to offer.
In the North West that includes:
- Our world class universities - we have the biggest concentration of students outside the South East
- Our long record on innovation - from Rutherford’s work on the atom to the invention of the world’s first programmable computer
- And the cultural flair exemplified by Liverpool being European Capital of Culture 2008.
Second, we represent central Government in our region.
We ensure that people in the region get their chance to have their say when central Government is making decisions.
We take their views back to Whitehall and make sure that they are heard.
Third, we challenge and support regional partners to work together and to share priorities and information.
Only then can we make the most of our resources and improve the quality of life and life chances of everyone in the regions.
Improving Economic Performance and Tackling Deprivation
Regions are the fundamental drivers of the UK economy.
Their performance differs markedly.
Most people are familiar with the headline figures for the relative performance of regions, particularly the extent to which London and the South East outperforms the rest of the England.
Less well appreciated are the differences within regions, and even within sub-regions.
For example, the Manchester city region is the key driver of the North West economy.
It accounts for 40% of the regions output.
The southern part of the Manchester city region is the fastest growing part of England outside London and the South East.
It is helped by the presence of major universities, world class companies such as Astra Zeneca and the airport.
The northern part of the same city region – with no similar assets - is one of the slowest growing parts of England.
Nearly half of the increase in jobs in the region in recent years has been in the Manchester city region.
Despite this, the core of the city region - Salford and Manchester - remains one of the most deprived parts of England.
Male life expectancy in Manchester is the lowest in England, and female life expectancy is the second lowest. Death rates from heart disease and strokes are the highest in England.
This marked contrast in performance between adjacent areas is not unique to the North West.
We see the same pattern across the country in all our major cities. For example, deprivation in Hackney and Tower Hamlets is worse than that in Manchester and Salford despite the global success of the City of London.
These are not easy problems to solve. But solve them we must.
We need to improve the economic performance of all our regions so that we are creating more jobs and – crucially – to make sure that these new jobs are available and accessible to the most disadvantaged people in our communities.
That will require a radical change in the way in which we approach regional economic development.
SNR
That is the challenge being addressed by the Sub National Review (of Economic Development and Regeneration).
The SNR was published last July and we are about to launch a consultation document about how best to implement it.
The SNR is not prescriptive. It allows regions to develop arrangements that work for them.
The key elements are:
- A single regional strategy to bring together policies on jobs, housing, transport and the environment together in one place. This will be the responsibility of the RDAs.
- A much greater role for city regions in particular and sub-regions in general. There will be greater collaboration between local authorities since economic activity does not respect administrative boundaries.
- Greater delegation of funding and programmes from Regional Development Agencies to groups of local authorities to allow them to address the issues that matter to them.
- A greater role for local authorities in promoting economic development because they are best placed to decide what’s stopping areas from fulfilling their potential.
- Enhanced accountability through Regional Ministers and possibly a Regional Select Committee. We are working through the detail of how best to do this.
Challenges and Opportunities
The SNR poses significant challenges for everyone involved in economic development.
RDAs will need to work with a much wider range of partners than in the past. They will need to engage with business, local authorities, the voluntary sector and environmental groups to establish a single vision for the region with clear targets, a clear investment plan, and a common evidence base.
Sub regions must know where they want to go – and provide the evidence to support that vision - rather than simply bidding for limited RDA resources.
But I believe that we will only make a difference to people in our communities if we are able to prioritise.
Local authorities need to work with business, and to use their existing powers and funding to deal with areas of persistent deprivation.
Concluding Comments
The SNR is about transformation, not business as usual.
It is about taking tough choices. About establishing – and sticking to – priorities.
Above all, it is about increasing economic growth and using that growth to tackle long standing pockets of deprivation.
I know that I can rely on your support in taking it forward.
