Thinktank calls for minimum scrutiny standards for strategic authorities

Local politics and public services thinktank Localis issued the call – alongside a number of other recommendations –  in a report that also called for a more place-based approach, with policy frameworks for devolution in England more closely aligned to individual local economic contexts.

The report – sponsored by Local Partnerships – warned that failure to do so risks deepening regional imbalances and surrendering local economic control to Whitehall.

In the context of local government reorganisation (LGR), the report argued that responsibilities between strategic authorities and local authorities "must be finalised before the dust settles on the process", to establish which functions should be held at a regional and strategic level and which should remain closer to neighbourhoods.

On a national minimum standard for strategic authority scrutiny, the report said there should be a stronger baseline for scrutiny practices, including timely access to briefings for members, guaranteed officer attendance, and mandatory executive responses –  "beyond simple acknowledgement" – to committee recommendations.

It also said that scrutiny and governance capacity should both receive funding as part of the core devolution programme. This would cover transport provision, member training, and ensure capacity for governance officers, analysis and risk management.

Other recommendations included a call for the Government to continue exploring avenues for extended fiscal devolution and options for further reform, including greater devolution of revenue-raising powers, uniformity across fiscal reforms, and radical initiatives such as the distribution of income tax or VAT.

The report recommended that the current model of place leadership move away from incentives derived solely from agglomeration policies, which seek growth through density. Instead, local areas should focus on growth policies that emphasise network-building across cities and rural areas, with "stronger peripheral connectivity and collaboration across wider regional economies", it said.

Elsewhere, the report called for clarity on how responsibilities between strategic authorities and local authorities will look after Local Government Reorganisation (LGR).

This should include details on which functions are best held at a strategic scale and which should remain closer to communities and neighbourhoods, it added.

In addition, the report said that emerging strategic authorities should be organised "around the real geography of place", recognising that "not all have a single dominant urban core, and organise growth strategy around town networks, transport links and local economic relationships".

It also recommended that strategic authorities build institutional foundations at the outset, adopting a constitution that "defines corporate purpose and core values and priority outcomes", alongside early investment in organisational basics such as analysis and policy capacity, scrutiny safeguards, and financial and risk management.

Localis senior researcher Sandy Forsyth said: "‘Everything in its right place’ argues for stronger scrutiny and accountability processes for strategic authorities, including a minimum national standard for scrutiny, so that they might have the trust and confidence of their peers, communities and government in order to make a success of devolution.

"The report also offers a routemap for a new iteration of devolution that accounts for the inherent asymmetries of place to which strategic authorities, both old and new, must respond, providing a method to temper the present variability in policy that might otherwise leave its mark on the local government sector."

Adele Gritten, chief executive of Local Partnerships, said: "Devolution is entering a new phase, with combined authorities playing a vital role in driving growth in their regions. This report makes clear that a more place-based approach is needed, one that reflects local areas rather than relying on a single model for all regions.

"With the right foundations and support, combined authorities are well placed to turn ambition into real outcomes for their communities and economies."

Adam Carey