Written evidence submitted by Mayor Dan Jarvis [POD 017] Noting the formal deadline of 4th May, this submission to the MHCLG Committee Inquiry into Progress on Devolution is made on behalf of Dan Jarvis MBE MP, Mayor of the Sheffield City Region (SCR). The Mayor welcomes the opportunity to respond to this inquiry and has provided responses that are the most pertinent to the SCR as well as providing additional comments that the Committee may find insightful. We are re-submitting our earlier submission below, the substance of which remains unchanged. However, in the intervening period significant progress has been made on devolution in the region, whilst the country and world face an unprecedented challenge from the Covid-19 pandemic. Accordingly, we would draw to the Committee’s attention that: Further to the narrative at Section 4 below, agreement was reached in January to progress devolution in the region. This agreement was predicated on the Secretary of State agreeing to progress discussions on the role and functions of a Committee of Leaders from across Yorkshire, based on the existing Yorkshire Leaders Board, subject to the Sheffield City Region Devolution Deal being advanced to a positive conclusion. Work is now underway to reach this positive conclusion, which has included the completion of a public consultation, the results of which have now been submitted to Government. Given the legislative parliamentary process it is hoped that this will be completed and the powers and resources in place by the summer recess. Covid-19 is the biggest challenge we face. The Mayor welcomes the commitment from the Prime Minister to work closely with metro mayors to lead the country out of the coronavirus pandemic. We must build on these constructive discussions to ensure Mayors have a strong mandate to transform our economy and society. Every death from this virus is a tragedy, but the latest data from the Office of National Statistics shows the disproportionate impact on the country’s most deprived communities, with the age-standardised mortality rate for all deaths 88% higher in these these places1. We know health and economic fortunes are intertwined, and Covid-19 risks exacerbating the existing divisions, further reinforcing the need to level up (discussed at section 3). South Yorkshire stands ready to not just close these divides but to play a leading role in transforming our region and nation: whether that’s delivering major transport infrastructure, creating a cleaner and greener environment, and unlocking prosperity and opportunity for all. 1 https://www.ons.gov.uk/peoplepopulationandcommunity/birthsdeathsandmarriages/deaths/bulletins/deaths involvingcovid19bylocalareasanddeprivation/deathsoccurringbetween1marchand17april We must seize the opportunity to build a better Britain – not just recovery, but renewal. The Mayor will be working with the Government, partners across South Yorkshire and fellow Mayors to deliver for our communities. It is needed now more than ever. May 2020 Key Messages Increased devolution has the potential to boost England’s cities and regions, bringing decision making closer to people, reducing spatial inequalities and improving productivity. With the recent election of the Mayor of the North of Tyne, Metro Mayors now represent 37% of the English population (over 20 million people) however they are still restricted by a heavily centralised approach to public spending and investment. Devolution has brought many successes for the Sheffield City Region. Since being elected and working with the Local Enterprise Partnership we have invested £82m in communities across the City Region. For the first time in our history, South Yorkshire has a transport strategy that aligns with a pan-northern transport strategy. And for the first time in a generation, we have seen a resurgence of advanced manufacturing and engineering. But there is so much more that can be achieved. We must unlock the potential of the Sheffield City Region and the North, creating opportunities for people, communities and business. The Mayor welcomed the Prime Minister’s recent speech in Manchester that set out an ambition to further empower elected Mayors but believes that now is the time for action. Not just words. The Mayor is deeply committed to implementing the proposal that South Yorkshire leaders and he agreed earlier this year to unlock devolution. This will only become a reality by continuing to work with colleagues across the North and with Government. Further funding and powers that go above and beyond existing deals are essential, to put the Power back into the Powerhouse, rebalancing the economy. These must be developed collaboratively with places, rather than imposed on them. A Devolution Framework would be a positive step towards articulating Government’s policy position on devolution. This should promote the benefits of devolution, but also recognise that a one-size-fits-all approach does not work and that all places, that wish to do so, should be able to benefit from it. Devolution is not an event. It’s a journey. And one that the Mayor is deeply committed in continuing to deliver real and tangible opportunities for people and communities across the region. 1. Introduction 1.1. The SCR is not a traditional monocentric city region. It is comprised of the core city of Sheffield and the surrounding towns of Barnsley, Rotherham and Doncaster; the largest metropolitan authority in the country. Together these four constituent councils of the MCA, have a population of 1.4 million people, with 47,000 businesses providing 634,000 jobs. When combined with the non-constituent members of Bassetlaw, Bolsover, Chesterfield, Derbyshire Dales, and North East Derbyshire, this increases to 1.9 million people, 68,000 businesses, and 862,000 jobs (see figure 1 below) 2. 1.2. As one of nine MCAs in England, the authority (in terms of population) is broadly equivalent in size to the Liverpool City Region MCA. It is the 10th largest Local Enterprise Partnership (LEP) area by population, with the 16th largest economy. 1.3. The nine local authorities that make up the SCR have a history of collaboration at a scale that reflects the natural economic geography of the region. This collaboration was formalised through the establishment of the Sheffield City Region Local Enterprise Partnership (LEP) in October 2010 and the Combined Authority (CA) in April 2014. In May 2018 the residents of South Yorkshire elected the Authority’s first metro Mayor of the Mayoral Combined Authority (MCA). 1.4. Three Growth Deals unlocked over £360 million in income from the Local Growth Fund (LGF) for the Partnership, which also became the commissioning body for £170 million of European Structural Investment Funds (ESIF). Figure 1: The constituent and non-constituent councils comprising the SCR MCA 2 Barnsley Metropolitan Borough Council; Doncaster Metropolitan Borough Council; Rotherham Metropolitan Borough Council; Sheffield City Council; Bassetlaw District Council; Bolsover District Council; Chesterfield Borough Council; North East Derbyshire District Council and Derbyshire Dales Districts Council. 1.5. The SCR Devolution Deal was signed in 2015 to unlock powers and funding to deliver the region’s Strategic Economic Plan. This proposed the transfer of powers and funding from the Secretary of State over skills, including apprenticeships, transport, in particular a devolved and consolidated transport budget, business and employment support, and some land and housing powers including a Mayoral Development Corporation and a non-statutory spatial framework. 2. The Mayor, the MCA and LEP are delivering significant benefits 2.1. Since 2012, using our local levers and the tools given by Government, the SCR has been generating significant benefits including: creating 15,150 jobs and 2,200 apprenticeships, assisting 6,000 learners, and leveraging £319m of investment and supporting 24,000 companies. This is only the beginning. The SCR is now two thirds of the way through the delivery of its multi-year Growth Deal, which is forecast to create more than 68,000 jobs, support 14,000 learners and lever £1.5bn of investment. 2.2. Key achievements made by the MCA, LEP and its local authorities include: £363.7 million Local Growth Fund (LGF) allocation on projects across the SCR. £363.7 million £500 £500 million of private sector investment including with Boeing and milli McLaren Automotive has been brought into the SCR by our Trade and Investment Team. on 44,000 jobs created in the City Region’s economy since 2014, with MCA and LEP activity creating 15,150 jobs. 44,000 jobs 24,6 24,600 businesses in SCR have received financial support through the SCR Growth Hub which have created 2,100 jobs. 00 businesses 8,384 people in SCR have received training through our skills development projects, including SCR Skills Bank and Skills Made Easy. 8,384 people 2.3. In addition to unlocking these opportunities for local businesses the MCA and LEP have done this in a way that has delivered value for money. In 2018/19 alone, the SCR Business Investment Fund programme created and safeguarded over 2,000 jobs from a £23m fund. This equates to a cost per job of £11,292, over £20,000 less (cost per job) than National Audit Office (2014)3 estimates for the former national programme. This proves economic growth and better value for money can be achieved when programmes are commissioned, managed and delivered at a local level. 2.4. Whilst the funding programmes that the SCR MCA and LEP have in place, have and are delivering significant benefits, they are now nearing full commitment. In the absence of any certainty on the UK Shared Prosperity Fund, the successor to the Local Growth and European Structural Investment Funds, there is a need to secure 3 NAO (2014) Progress Report on the Regional Growth Fund additional resources to continue to unlock growth and opportunities in the region.