Category: Local Government

Hampshire businesses have had their say in what they want to see from local government and from any devolution deal done with central government:

Hampshire businesses want to see a single, simple to engage with local authority, with a more ‘can-do’ approach to business.

There is overwhelming support for the devolution of more powers and resources from central government and for a more strategic and integrated approach to economic development, infrastructure, housing, transport and planning. These are two of the headline conclusions of a survey of business attitudes towards local government and devolution undertaken by the Southern Policy Centre for Hampshire County Council. There was no clear consensus on the most appropriate geography for single local government structures. Businesses tended to identify distinct economies and characters of the north and south of Hampshire (including the cities and the Isle of Wight), although there was some support for a ‘single county’ approach. Business also wanted to see better links between the cities and their hinterlands. While there was little support for the current two-tier structure, businesses recognised that large authorities would still need localised democratic decision-makng structures. The interest of small businesses needed to be protected in any change to large authorities. Businesses generally enjoyed a positive relationship with local authorities although concern was expressed that some councils were losing key business facing officer expertise as a result of spending cuts.  The biggest frustration was the inconsistent policy approaches of different local authorities, while there was a perception that within local authorities economic development and planning were often badly coordinated. The majority of businesses support elected mayors, though they stressed the need for strategic leaders rather than personality-based candidates. The report was based on nearly 50 one-to-one interviews with business leaders and six focus groups covering different sectors of the economy and different parts of Hampshire. The report sets out a number of guiding principles that should be taken into account in any future decision-making:

• Business would welcome single-tier authorities, but there was no clear consensus over their size and geography. Any proposals should set out how they relate to recognized economic areas. The key choice would appear to be between a binary structure, based on the southern urban area and the north and more rural parts of the county, and a single ‘county, cities and Isle of Wight’ structure
• The need for a strategic approach on development and infrastructure favours larger authorities. Any proposals for larger authorities should set out how local democratic decision-making can be retained on appropriate issues
• Businesses were concerned about the loss of capacity and expertise amongst officer teams in some smaller local authorities. Any proposals for reform should show how sufficient capacity and expertise would be retained and strengthened, and care should be taken not to seek cost savings at the expense of the quality of business engagement with local government
• Any proposals for larger authorities should show how the interests of small businesses in local decision-making and as suppliers would be protected
• The retention of business rates can potentially strengthen the relationship between local government and business, but business rates themselves were widely seen as unfair. Local government must plan now to ensure it is far more accountable to its business rate payers once this change is implemented
• Devolution presents a genuine opportunity to grasp the nettle and become significantly better at planning and delivering transformational infrastructure projects. Any proposals for change must show how a new local authority structure will be able to exercise powers that are now (or in the future may become) available in an efficient, effective and democratic way
• Any proposals for change must be sensitive to the wider uncertainties affecting business, including potential changes to business rates and the UK’s exit from the EU. Any reorganisation of local government and/or devolution deal needs to be executed as quickly, cleanly and clearly as possible, across an economic geography that ‘makes sense’
• A majority of businesses would support an elected mayor, and there do not seem to be substantial business objections to the creation of such a post