Calling for a full review to explore best practice in existing devolved areas, British manufacturers are hoping the push could inform the development of Labour’s promised new mayoral authorities.
Of those companies currently operating within a Mayoral Combined Authority area, 62 per cent were favourable to more mayors - but when it came to delivery results, just 10 per cent felt their business needs had been met, with a much more significant 71 per cent saying it felt just the same as before.
This is in stark contrast to the devolution survey Make UK carried out last year, when 60 per cent of companies said they had directly benefited from devolution funds.
Issues cited include too many competing priorities (39 per cent) and not enough powers and funding from the central Government (36 per cent) as key contributors to the unfavourable response, according to Make UK’s latest research.
Some 66 per cent of manufacturers said they are happy with transport connections, 62 per cent were found to be either very satisfied or somewhat satisfied with digital connectivity, and just under half (47 per cent) were satisfied with skills provision.
Exactly half of manufacturers also felt that local Government had a 'good understanding' of industry in the region, and the majority manufacturers (86 per cent) knew how to communicate proactively with their local Government body. Companies also saw the benefits of having a strong mayor working for a region, particularly in attracting inward investment to their area, and felt that mayors were better able to influence infrastructure policy and development.
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Innovation was also seen as positively fostered locally, with Make UK a long-time advocate for the development of designed 'AI Innovation Clusters' which can be used to promote growth and adoption within manufacturing dense regions.
Half of manufacturers now feel that giving their regional mayor full tax raising powers would be a good thing for their businesses, with 39 per cent of businesses wishing to see greater access to grant funding.
Of course, views were found to differ hugely between companies within a devolved authority and those who have never had access to a mayor. For example, only 24 per cent of manufacturers in any area felt future devolution settlements should focus on delivering exporting guidance, but 93 per cent of those surveyed from Mayoral Combined Authorities wanted to see export guidance included in any future deal.
In a statement, Kate Fairhurst, Interim Head of Policy at Make UK said: “Devolution has been an obvious success story in some areas for manufacturers but clearly there is still a lot of work to be done to realise its full potential. The English Devolution White Paper will result in many new mayoral authorities being introduced across England. Now is an opportune time to take stock and ensure devolution is really working for business. It is essential that a full root and branch review is undertaken at speed to ensure best practice going forward as additional devolution is delivered by Government across the UK.
“Specialist business panels should also be introduced so regional authorities can draw on their industrial expertise. This should be alongside an analysis of the cost benefits of fully devolving tax collecting powers to new authorities. Aligning central government grant funding to specific regional needs is also a must if devolved areas are to truly succeed in delivering growth.
“But it is clear there is still much work to be done in raising awareness on the benefits of devolution and the work already being achieved by local mayors on the ground.”
The English Devolution White Paper, published at the end of 2024, can be accessed and read in full here.
