4

Chapter summary

Elected assemblies will improve the quality of life for people in their regions, particularly by improving regional economic performance.
Assemblies will be given the lead role in developing strategies to achieve this. They will drive the implementation of their strategies, monitor progress and revise strategies when appropriate.
Assemblies will be given a range of powers to help them to deliver these strategies. These will include executive functions such as responsibility for resources and influence to promote results that will benefit the region.
Specific responsibilities include economic development and regeneration, spatial development, housing, transport, skills, and culture.
Regional Development Agencies will be accountable to their elected assembly, which will appoint the Chair and Board members.

4.1 This chapter explains what elected regional assemblies will do and how they can improve the quality of life for people in the regions they serve.

4.2 Elected assemblies will have responsibility for issues such as investment in regeneration, improving housing and public transport, and developing tourism. Their powers and functions will largely be drawn from central government bodies such as the Government Offices and a number of other public bodies which are already operating in the regions. Functions are generally not being taken from local government, which will continue to focus on local service delivery and community leadership.

4.3 Where voters choose to have an elected assembly this will mean that, for the first time, decisions affecting the region will be taken by a body that is directly accountable to the regional electorate rather than to Ministers and the UK Parliament.

4.4 These powers and functions are also designed to introduce a more effective and efficient tier of regional governance. The Government will address this by:

4.5 This package of assembly functions reflects the way in which these functions are currently organised. However, the Government is keen to further decentralise responsibility for policy and delivery where this will improve regional outcomes. As a consequence, it is likely that there will be ongoing developments in regional governance and organisational changes in the way some functions are delivered. The Government will therefore build into policy development the new opportunities offered by the creation of elected regional assemblies. There are likely to be further proposals for the decentralisation of responsibilities to assemblies as time goes on.

4.6 Chapters 2 and 3 set out the Government’s view that a regional tier of governance can improve decision-making on a range of issues, including important aspects of economic development and related issues such as spatial planning, housing and transport. Decisions made at the regional level are better able to address issues which relate to the circumstances of an individual region. In this way they can improve the quality of life for people in their region and for the nation as a whole.

4.7 An elected assembly will set out its key objectives in a small number of high-level targets, which it will agree with central government. For example, an assembly will be expected to agree a target for improving its region’s economic performance. Assemblies will be expected to monitor their performance against these targets, and produce an annual report for the regional electorate on their progress. (Details of the Government’s proposals on finance and targets are set out in chapter 5.)

4.8 An assembly will spell out its proposals for meeting its targets, and its detailed plans in its areas of responsibility, through its regional strategies. Together they will explain how an assembly will go about improving the quality of life in the region – for example, by improving the economy, investing in housing, and giving people the opportunity to make the most of their leisure time through cultural and sporting activities (see Box 4.1). The Government believes that an elected regional assembly will be in a position to produce more effective regional strategies, and thereby improve regional decision-making and deliver better results.

Box 4.1: Regional strategies for an elected assembly

An elected assembly will be responsible for regional strategies dealing with the following issues:

sustainable development – which will set out how their approach in the region works within the context of the Government’s commitment to pursue policies that encompass economic, social, and environmental objectives and achieve stable and sustainable growth, and how regional activities will contribute to the achievement of sustainable development in the UK and support action at local level;
economic development – which will address issues such as attracting inward investment, improving productivity and the conditions for enterprise, and ensuring that all parts of the region benefit from economic growth;
skills and employment – which will set out how an assembly and its partners will improve the skills of the workforce and ensure that everybody has access to job opportunities;
spatial planning – which will address the broad location of major development proposals, integrate demands for land use across the region, outline specific regional or sub-regional policies, and provide a basis for hard strategic choices;
transport – which will spell out plans to address congestion, improve public transport and road links, and ensure that the transport system supports sustainable economic growth;
waste – which will set targets and indicators for regional waste management capacity and disposal, including for the recycling and recovery of waste, in order to promote sustainable waste management, waste minimisation and alternatives to landfill;
housing – which will deal with all aspects of the housing market and social housing in the region, covering privately-owned housing as well as social housing provided by local authorities and registered social landlords;
health improvement – setting out a long-term public health strategy, which assemblies will agree with the relevant Regional Directors of Public Health;
culture (including tourism) – which will explain how an assembly plans to improve access to cultural and sporting facilities, and develop the tourist industry; and
biodiversity – which will provide a strategic framework for the work undertaken by regional and local biodiversity partnerships in conserving biological diversity and the sustainable use of biological resources. These strategies will replace the strategies currently being produced for each region, of which details are given in annex D.

4.9 A vital part of this strategic work will be to develop a more coherent, or ‘joined-up’, approach. There are strong linkages between many of the issues currently considered at the regional level. These linkages are often two-way. For example, a region’s needs in respect of housing and transport infrastructure depend partly on its strategy for economic development, but its economic strategy also needs to take account of priorities arising from its housing, transport, and spatial strategies.

4.10 Whilst there is already a requirement for some regional strategies to take account of strategies on related issues, and some good practice in the regions on which to build, there is often scope for further integration and rationalisation of the separate strategies. There is also considerable scope to consider further the different priorities in different aspects of regional development, and to make choices about the balance between them. As the single body with an overall lead on these areas, an elected regional assembly will be ideally positioned to pull together different strands of activity, to establish an effective balance between competing priorities, and to find innovative ways forward. Assemblies will also have the flexibility to deploy resources in the most effective way to deliver their strategies.

4.11 Elected assemblies will therefore be under a duty to ensure that separate regional strategies are consistent with one another. Assemblies will also be encouraged to produce an ‘overarching’ strategy to set out their vision for the region and their key priorities on the range of issues for which they have responsibility.

4.12 The overarching regional strategy will be an important tool for considering the relationships between different issues and establishing a coherent plan of action in which the decisions on issues such as economic development, housing, planning, and transport are consistent and mutually reinforcing. The overarching strategy will act as the sustainable development framework for the region, replacing the voluntary frameworks currently produced by a partnership including the Government Office, Regional Development Agency, and regional chamber. It will also be the vehicle for looking at other ‘cross-cutting’ issues such as health improvement, crime reduction, and social inclusion. Assemblies will be under a duty to promote the health of the population of their region.

4.13 The Government places particular importance on the regional vision being a shared goal. This means involving the people in the region in drawing up both the overarching regional strategy and the assembly’s proposals on specific issues. The Government specifically expects elected assemblies to work in partnership with business, trade unions, the voluntary and community sectors, local authorities and other key partners in the public sector to steer the formulation of the overarching strategy and its implementation. The strategy should also be subject to widespread discussion in the region at large. Individual strategies will continue to be subject to consultation as they are now. The Government will issue guidance to assemblies on how best to engage its key partners and ensure that its arrangements for consultation and participation are streamlined and effective. Proposals on the wider issue of engaging stakeholders in the work of elected assemblies are set out in chapter 7.

4.14 As well as making sure that their own strategies are consistent, assemblies will be in a good position to ensure that regional strategies and those developed at local level are compatible. This will require effective two-way communication and co-operation between elected assemblies and the different bodies working at local level within the region, including local authorities, local strategic partnerships, and other local service deliverers.

4.15 The process of developing strategies is not an end in itself. The role of an elected assembly will be to improve the quality of life for the people in its region. This means ensuring that its strategies are implemented. The Government is proposing to give assemblies a range of functions, or levers, to help it deliver its strategies. These fall into two categories.

4.16 Firstly, elected assemblies will have a set of executive functions, such as responsibility for resources. These are most appropriate where the assembly assumes complete responsibility for a given issue (as it will, for example, on regional economic development). Examples include:

4.17 In addition, elected assemblies will have a significant influencing role. The proposals are designed to give assemblies influence on issues that have a regional dimension, but where it is important that this is balanced with national and local needs. Its influencing role will include:

4.18 This range of functions will mean that elected assemblies – working with their key partners in other government organisations, business, and voluntary and community groups – will be in a position to drive the implementation of their strategies. A breakdown of the main responsibilities currently envisaged for elected regional assemblies on specific functions is set out below. Annex F provides details of the existing arrangements for each functional area.

4.19 Improving the economic performance of its region will be at the heart of an elected assembly’s objectives. This is reflected in the range and importance of its functions in this area.

4.20 As set out in chapter 2, the Regional Development Agencies have responsibility for developing strategies for the economic development and regeneration of the English regions. The Government has enhanced the agencies’ role by giving them extra resources and greater flexibility in allocating these within their regions.

4.21 These proposals will not diminish the role of the Regional Development Agencies. Indeed, they further strengthen the capacity of regions with elected assemblies to improve their sustainable economic performance, by ensuring that their economic development strategy is integrated with their strategies on related issues such as skills, planning, housing, and transport.

4.22 The Regional Development Agencies will become directly accountable to the relevant elected assembly. In practical terms this will mean that:

4.23 Central government will retain powers to ensure that elected assemblies and their Regional Development Agencies continue to address national priorities. For example, the assembly will consult the Government on the draft regional economic strategy and on individual Board appointments. The Government will also be able to require changes to the strategy, if it considers that the strategy is inconsistent with national policies or is likely to have a detrimental effect on areas outside the region.

4.24 An elected assembly will provide funding to the Regional Development Agency from its block grant. It will be up to each assembly to decide the precise arrangements it puts in place for both funding and targets; the Government believes that Regional Development Agencies are most effective where they have the maximum flexibility in allocating their resources.

4.25 The Small Business Service (SBS) is a national executive agency that promotes the interests of small business and provides a range of business support services under the ‘Business Link’ brand. Local services are provided through Business Link operators who deliver services in 45 areas throughout England. The SBS has a team of staff in each region who are co-located with the Regional Development Agencies and who work closely with them.

4.26 Business support will play an important part in helping an elected assembly to deliver economic improvements. The Government is therefore proposing that regional assemblies and Regional Development Agencies will be consulted by the SBS in the preparation of its three-year strategy and its annual business plan to help ensure that the services organised by the SBS meet the needs of all English regions. The SBS will be required to have regard to an assembly’s economic strategy. Where and when a Business Link contract is re-tendered the SBS will consult the assemblies on the criteria to be used and the bids received. Assemblies will also play a role in monitoring the performance of Business Link contractors in their regions. In addition, assemblies will work closely with the SBS on other relevant activities to support small and medium-sized enterprises, for example the SMART programme to support investments in new technology.

4.27 The Government will ensure that elected assemblies continue to be involved in the development of business support as policy develops (including being consulted on bids to the Higher Education Innovation Fund, which funds work by higher education to support business). Training and skills

4.28 Developing the skills of the workforce plays a vital role in economic development. So improving the skills base and equipping people to take up the opportunities being created in a region will be an important component of delivering an elected assembly’s objectives.

4.29 Elected assemblies will assume responsibility for drawing up and organising Frameworks for Regional Employment and Skills Action (FRESAs), which will set out the key priorities of the region in respect of skills development and improving employment opportunities. The proposals will also ensure that elected regional assemblies will play an important role in other aspects of the skills agenda. Specifically this will mean that:

4.30 Some regions receive significant support through a range of European programmes that address economic development, skills improvement and rural issues.

4.31 The general approach to EU structural funds in England – regional delivery within a clear national framework – will continue. However, the assembly will take over the role currently performed by Government Offices on structural funds (including the European Regional Development Fund, the European Social Fund and rural programmes) for any structural fund expenditure for future programming periods. This would mean that the assembly will chair the programme monitoring committee, play a key role in drawing up the single programme documents, and lead in negotiations on these programme documents with the European Commission. Planning

4.32 An effective planning system is vital to our quality of life. England is one of the most crowded countries in the world. Only 8 per cent of the land surface is urbanised, but over 90 per cent of our population lives in urban areas. We need good planning to deliver sustainable solutions to development, and a better living and working environment for everyone. Effective planning can promote economic prosperity by delivering land for development in the right place and at the right time. It can encourage urban regeneration by ensuring that new development is channelled towards existing town centres rather than adding to urban sprawl. It can also lead to conservation of greenfield land and re-use of urban brownfield sites.

4.33 Chapter 2 sets out the new approach to regional planning proposed in the Green Paper Planning: Delivering a Fundamental Change. Regional planning policy provides a context within which local authority development plans, local transport plans, and other relevant plans and strategies can be prepared. An elected assembly can help to improve the approach to regional planning by bringing together responsibility for many of these regional priorities and taking a balanced view.

4.35 Housing has a major influence on everyone’s quality of life. The Government has put substantial additional resources into housing. The most effective use is made of these resources when they are used to support a coherent plan of action embracing related issues like transport, regeneration, health and crime. It is therefore important to ensure that strong links are made at regional level between housing and other relevant strategies.

4.36 An elected regional assembly will take a strategic lead on housing issues, thereby assuming the role currently undertaken by the Government Office and the strategic and resource allocation roles of the local office of the Housing Corporation. Specifically, an elected regional assembly will:

• prepare and publish a regional housing strategy. Together with the regional spatial strategy, this will consider issues like the location of new housing, the need for new social housing, tackling areas of low demand, and investment in existing stock; and • allocate support for housing capital investment between councils (to improve their own housing stock, to support new build by housing associations, and to renew private stock) and housing associations (largely for new build social housing).

4.37 Good transport is essential for sustainable economic success, a better environment, and an enhanced quality of life. Improving public transport is also vital in reducing social exclusion. The Government wants villages, towns and cities to be places where business thrives and people have access to the services they need. To achieve this, transport needs to be integrated with policy on economic development, planning, and housing.

4.38 Elected regional assemblies will be responsible for a regional transport strategy. They will also be given some important tools to help them to deliver this strategy, including:

4.39 Cultural activities, including tourism and sport, all make an important contribution to the quality of life of people in the regions. Tourism and cultural businesses themselves are also major components of economic development with direct links to other functional areas such as regeneration, spatial planning and transport.

4.40 An elected assembly will fund, sponsor, and lead the regional cultural consortium. The cultural consortium will draw up a regional cultural strategy – encompassing tourism, arts and sport – for agreement with, and publication by, the assembly.

4.41 The Government recently completed a review of the Arts Council, which established a new system for funding the arts in England. This system is guided by the following principles:

This structure will deliver funding for the arts in a less bureaucratic way and cut administration costs by around 25 per cent. It will enhance regional input to arts policy in all regions: the new regional offices of the Arts Council (regional arts councils) will be responsible for spending a significantly greater proportion of funding than the 40 per cent under the previous system.

4.42 These new arrangements will take time to bed down but should have done so before any region is in a position to establish an elected assembly. When an elected regional assembly is established, our guiding principle will be that accountability and funding for the arts and sports which are regional in character will be devolved to the assembly, in a way which protects strategic national priorities. In putting this into practice, the Government will take account of the experience of the new regional framework and any reviews of it.

4.43 In deciding the best arrangements to apply this principle to sport, the Government will take account of the current review of sport in England by the Performance and Innovation Unit and of the quinquennial review of Sport England.

4.44 The assembly will have a range of additional functions to help it implement its strategy:

4.45 There are many economic, social, and environmental factors which impact upon public health and health inequalities. The priorities for public health and measures needed to tackle health inequalities vary from region to region.

4.46 The role of elected regional assemblies on public health will reflect that of the GLA in London. An assembly will:

4.47 Regional assembly responsibilities in the fields of housing, transport, and economic development have significant links with public health. It is important to ensure that all of these functions, including public health, are tackled in a joined-up manner to address problems and help drive improvements in public health outcomes and the narrowing of inequalities – particularly by raising the profile of wider issues of concern to the region which impact on health but are not always obvious at a local level, such as high levels of unemployment or deprivation in the region, and transport-related issues.

4.48 These responsibilities will give assemblies a positive and proactive role in supporting the promotion of public health and equity across their regions. This role would closely link, and be consistent, with the activities of the Regional Directors of Public Health who will be working closely with the Government Offices and other regional partners.

4.49 The Government’s aim is to sustain and enhance the distinctive environment, economy, and social fabric of the English countryside for the benefit of everyone. In order to ensure this aim is met, all major policies are assessed for their rural impact. It will be important to ensure that elected regional assemblies ‘rural proof’ their activities to fully take the rural dimension into account.

4.51 The Government’s aim is to protect and improve the environment, and to integrate the environment with other policies across all levels of governance within the UK and in international fora. Effective protection of the environment requires activity on many wide-ranging fronts – for example, from acting to limit global environmental threats (such as climate change) to safeguarding individuals from the effects of poor air quality or toxic chemicals.

4.52 An elected assembly will: • make appointments to the Environment Agency’s regional committee; • prepare and implement a regional strategy for biodiversity in conjunction with other relevant regional strategies; • prepare and oversee the implementation of the waste element of the regional spatial strategy; • be consulted by the Environment Agency, Countryside Agency, English Nature and other relevant public bodies on their strategies, and consult them in turn.

4.53 DEFRA has undertaken a major consultation on flood defence arrangements. That consultation canvasses opinions on a regional role in flood defence responsibilities, taking into account the proposed establishment of elected regional assemblies. The findings of this consultation exercise will be considered as part of the Government’s ongoing process of decentralising relevant responsibilities to elected assemblies.

4.54 A number of elected assembly responsibilities will have a bearing on other issues for which they have no executive role. Decisions on planning, transport, and health promotion, for example, can significantly affect crime reduction and drug misuse. It will be important for elected regional assemblies to have a full understanding of the work of the local crime and disorder reduction partnerships (of which there are over 350 in England, led by the police and local authorities). Similarly, assembly responsibilities for health promotion will have an important connection with the work of the 149 drug action teams in England.

4.55 The Government remains committed to delivering the reduction both of crime and disorder, and of substance misuse, through the local partnerships and teams established for this purpose. However, it will be important to ensure proper coherence between this local activity and relevant regional strategies on issues like planning and transport. The Government will, therefore, make it a requirement for the local partnerships and teams to consult elected regional assemblies as they draw up their strategies and plans. There will also need to be good links between the regional assemblies and Government Offices to ensure that their different responsibilities are delivered in ways which maximise the benefits that both can bring to cross-cutting social issues such as crime reduction, drugs, and community cohesion. Civil contingency planning

4.56 It would be appropriate for elected assemblies to take on the main co-ordination role in regional contingency planning, working closely with the Government Offices. This will be reflected in the work being undertaken in the Emergency Planning Review Implementation Project to define an enhanced role for the Government Offices in the regions without an elected assembly.