In the South Midlands, a significant concern is emerging: the region stands to lose out on millions of pounds in public funding due to an absence of a devolution deal. This situation raises alarms among business leaders who fear that the lack of agreement could jeopardize investor confidence.
The South Midlands Business Board was established 14 months ago with the objective of guiding six local authorities in the region on matters related to economic development and growth. However, Jason Longhurst, who chairs the board, has expressed serious concerns about the financial implications of not having a devolution arrangement in place. He estimates that the region could be missing out on between £80 million and £100 million annually as a result.
The Ministry of Housing, Communities and Local Government has stated its goal is for all regions in England to gain access to devolved powers through the establishment of Strategic Authorities. Discussions were previously held among councils from Northamptonshire, Bedford, Central Bedfordshire, Luton, and Milton Keynes regarding the formation of a South Midlands authority. However, these talks have highlighted a growing divide, particularly as both Luton and Milton Keynes councils have voiced their opposition to such a collaboration.
Rather than fostering unity among the six councils by creating a combined authority for the South Midlands, this initiative has instead led to fragmentation within the region. Longhurst has emphasized the need for a broader strategy that fully recognizes the area’s economic potential. He remarked, "We are currently engaging with government officials and regional partners to explore alternative pathways."
He underscored the importance of promoting the South Midlands, stating, "Northamptonshire and Bedfordshire are home to several vital businesses across a wide array of sectors, yet they are not receiving the recognition they deserve at this time."
The government favors the establishment of combined authorities, headed by an elected mayor, as a means of connecting counties and empowering them with control over essential issues such as housing and transportation at a regional level.
In a follow-up statement, the Ministry noted, "We will soon outline the next steps for areas that fall outside of the Devolution Priority Programme, and we strongly encourage all regions, including Northamptonshire, to participate in this initiative."
What do you think about the current state of affairs in the South Midlands? Could the lack of a devolution deal ultimately hinder the region's growth, or do you believe there might be other avenues for development? Share your thoughts!
