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New council economic unions to boost local skills and jobs

Published	12 January 2009

Merseyside, Leicestershire and the Pennines will be devolved more local autonomy to deliver home-grown economic resilience, jobs and skills plans, following the signing of three historic council partnership contracts by the Prime Minister and council leaders today.

The new council partnerships, known as Multi-Area Agreements (MAAs), will be signed at a 10 Downing Street event today, transferring greater responsibilities to 23 councils from central government in over 30 areas covering employment, skills, transport, regeneration, housing and planning.

The Liverpool city-region, Leicester and Leicestershire and Pennine Lancashire councils all asked to develop these bespoke agreements - with new powers to deliver strategic plans across council boundaries, creating bigger pots of money for tackling their own economic circumstances and preparing for the upturn when it comes.

Local economies stretch across the whole sub region with many people living and working in different places and commuting across council boundaries. This means that local government economic strategies must work across council boundaries too.

Despite the downturn these councils now expect to use these new partnerships to help them deliver jobs growth, skills training to reflect the local job markets; targeted help for people trying to get off benefits, better use of capital funds and plans to improve the overall well-being of the local community.

The new agreements will help Merseyside's aim to train over 100,000 people; Leicester's 'train to retain' plan will open up higher education to local adult learners and help keep graduates in the region; and the Pennine Lancashire plan will connect its rural communities to jobs by improving commuter routes with un-ringfenced and pooled funds.

A third round of MAAs is expected later in the year. This means that around half of all the biggest councils have now agreed or are working on Multi Area Agreements. And at the next Budget, at least two city-region pioneers will be selected for 'MAA plus' status, with further powers devolved, as in London.

Communities Secretary Hazel Blears said:

"London's example proves that a team effort by councils can bring the best out of a city-region's economy. Nearly all of us work and live across council boundaries so economic plans must cross them too.

"Today's new council partnerships will mean for the first time that councils are working together from the same blueprints with more devolved powers to deliver jobs, training, welfare support and economic resilience.

"I believe it is vital that we continue to give local government the powers they need to support their communities - they know their people and area best and they can create the right conditions to support and improve them."

Preparation for the new partnerships in Merseyside, Leicestershire and the Pennines brought councils, businesses and other local partners together for the first time to set out the strategic economic priorities for their areas.

• The Liverpool city-region MAA employment and skills strategy aims to help 9,000 more people off benefits by 2010 and lift JSA claimants entering employment by 4per cent (up to 40per cent). New 'fit for work' advisers will help those in danger of falling out of work because of poor health. A new Skills and Employment Board will direct skills training so that over a 100,000 local people get training that matches the local market - boosting qualification levels by 8-10per cent. There will also be additional support for 18 years olds including a universal offer to support self employment.
• The Leicester and Leicestershire MAA has developed a 'train to retain' plan that will allow them to increase skill retention and subsequently their long term economic clout. New arrangements with the Universities of Leicester, Loughborough and De Montfort will allow local adult learners to 'step on, step off' university classes without registering for full time degrees. New powers will allow councils to reduce financial burdens for those coming off welfare and entering work by giving people job grants to cover costs till the first month's pay check comes in.
• The Pennine Lancashire MAA will strengthen and connect their stretched rural economy. Their plan will use new powers to raise skills by 4per cent and help half a million people. They will create a 'graduate into industry' scheme at new Pennine Lancashire University campuses. To break down the economic barriers of rural areas they will develop better broadband networks and use new powers to redirect and pool funds to improve routes to Manchester, Leeds and local business areas. They will widen the M65 and develop new and improved rail services at Clitheroe-Manchester Raillink, Todmorden Curve and East Lancashire Railway.

Local Government Association Vice Chairman, Sir Jeremy Beecham said:

"MAAs have the potential to be a stepping stone to genuine devolution of powers and funding. They will allow councils, local partners and government agencies to work together to challenge the artificial limits of boundaries.

"The diversity of the issues tackled in these MAAs reflect the critical importance of local priorities. Some of the issues identified will bring real improvements for local people.

"The challenge now is to turn the commitments in these MAAs into action. Other areas will be encouraged by the potential benefits for local people that these agreements set out to achieve."

Today's event is the culmination of a week of government activity, which has seen the Prime Minister focused on the regional aspects of the downturn, action to help individuals and businesses in the face of current economic difficulties and long-term reforms for boosting skills and employment.

When the country last faced serious economic difficulty in the 80s and 90s councils didn't have the powers, skills or financial resources to respond. London alone stood out as the country's single economic powerhouse.

Over the last decade we have invested in regenerating our towns and cities, creating a regional renaissance of jobs and prosperity. And because local leaders know their areas best, the Government's devolution agenda has given more money, power and controls to councils up and down the country.

Hazel Blears will shortly begin a series of regional delivery workshops to see at ground level what difference devolved powers are making to local economies, and to look at where we can devolve more to support councils deliver greater prosperity.

Notes to editors

1. Liverpool City Region Multi Area Agreement includes: Liverpool City Council, Knowsley Borough Council, St Helens Borough Council, Wirral Borough Council, Sefton Borough Council, Halton Borough Council.

2. Leicester and Leicestershire's Multi Area Agreement includes: Leicester City Council, Leicestershire County Council, Blaby District Council, Charnwood Borough Council, Harborough District Council, Hinckley and Bosworth Borough Council, Melton Borough Council, North West Leicestershire District Council, Oadby and Wigston Borough Council.

3. Pennine Lancashire's Multi Area Agreement includes: Blackburn with Darwen Borough Council, Burnley Borough Council, Hyndburn Borough Council, Lancashire County Council, Pendle Borough Council, Ribble Valley Borough Council, Rossendale Borough Council.

4. The first tranche of Multi Area Agreements were signed in July 2008 by Tees Valley; Greater Manchester; South Yorkshire; Leeds City Region; Partnership for Urban South Hampshire (PUSH); Bournemouth, Dorset and Poole; and Tyne and Wear.

5. The third tranche will be:

West of England

• Bath and North East Somerset, Bristol City, North Somerset, South Gloucestershire
• Employment and skills, economic growth and competitiveness, transport, housing

Olympic Legacy

• Greenwich, Hackney, Newham, Tower Hamlets, Waltham Forest
• Employment and skills, housing, public realm

North Kent

• Dartford, Gravesham, Kent County, Medway, Swale
• Employment and skills, housing, transport

Birmingham

• Birmingham, Coventry, Dudley, Sandwell, Solihull, Telford and Wrekin, Walsall, Wolverhampton
• Employment and skills

Hull

• East Riding of Yorkshire, Kingston upon Hull, North East Lincolnshire, North Lincolnshire
• Skills and workless for young people aged 14-25 years

Fylde Coast

• Blackpool, Fylde, Wyre
• Identity of place, economic and business development, employment and skills, housing, transport and planning

Milton Keynes South Midlands

• Aylesbury Vale, Bedford Borough (from April 2009), Buckinghamshire County, Central Bedford (from April 2009), Corby, Daventry, East Northamptonshire, Kettering, Luton, Milton Keynes, Northampton, Northamptonshire County, South Northampton, Wellingborough
• Economic development, transport

6. The Chancellor announced in the Pre-Budget Report that the Government intends to announce new 'MAA plus' agreements with at least two forerunner city-regions at Budget 2009. This will deliver even stronger integration of planning, housing, transport, regeneration, employment and skills responsibilities. New statutory arrangements for co-operation between local authorities will underpin this with key support from RDAs. The following areas will potentially be devolved:

• Increased statutory responsibility for strategic transport issues.
• A joint city-region/HCA board to direct housing and regeneration priorities.
• Formal powers for Employment and Skills Boards to influence provision.
• Integrated city-region planning with the Single Regional Strategy
• Addition financial flexibility over capital funding.

Videos

Economic strength from council partnerships

John Healey MP introducing the new Multi Area Agreements.

Multi-Area Agreements

The Prime Minister and Hazel Blears at the signing of the Multi Area Agreements at Downing Street today.

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