Yorkshire mayors must be granted single funding settlement to improve regional growth, expert says

Last year, then Chancellor Jeremy Hunt announced that Greater Manchester and the West Midlands would be “trailblazer” pilots for a single funding settlement from central government.

This will give mayors Andy Burnham and Richard Parker more flexibility over spending and greater long-term certainty.

Currently, the combined authorities, like West Yorkshire and York and North Yorkshire, rely on a number of separate funding pots, which are often ring-fenced for certain projects.

Mr Franklin said that to achieve “inclusive growth … a first point of call is simply consolidating the mixture of different funds we’ve got”.

“Having more powers over how that money can be used will be really helpful [for mayors],” he explained.

“That approach needs to be increased in terms of speed across the country as well.

“What we want to see is a high proportion of the country having those single settlement deals, trying to roll out what is happening in Greater Manchester and the West Midlands in places like West Yorkshire.”

Both the new Prime Minister and Chancellor Rachel Reeves have made growth the government’s “number one priority”.

Ms Reeves, the Leeds West and Pudsey MP, has asked the Metro Mayors to come up with local growth plans, and says her planning reforms will turbo-charge the economy.

Mr Franklin said that improving healthcare access and early years provision across the country was just as important.

"If you can improve people’s life chances from an early age they will contribute more to the economy,” he said.

Commenting on the discussion about devolving tax raising, Mr Franklin warned that “we’re still at a very early stage of that politically in this country”.

“It might be that certain areas can raise tourism taxes,” he explained. “Those smaller steps might be an initial pathway towards that direction.”

Labour has promised to both widen and deepen devolution, and one of the first acts of the new government was for Sir Keir and Deputy Prime Minister Angela Rayner to meet all 11 of England’s metro mayors.

At that meeting, the government made clear it would consider single funding settlements for combined authorities that “can show exemplary management of public money”.

It said that the flexibilities “were not reserved for Greater Manchester and the West Midlands alone”.

Ms Rayner said: “We want to relight the fire of our regions to drive growth in every part of this country, and to do this properly we need people who know their areas best to have their say.

“That’s why it’s so important we work hand-in-hand with our mayors to harness the potential of our towns and cities, tackle regional inequalities and to make a difference to people’s lives.”

The government has also announced the creation of a Council of Nations and Regions, which will include the Prime Minister, leaders of the devolved governments and metro mayors.

West Yorkshire Mayor Tracy Brabin said: “I really do think there is a new dawn. I know you can say that quite flippantly, but it does feel like that.”