If Boris really wants to level up he should give mayors more power

AS the dust settles on last week’s elections, one trend in particular stands out: England’s metro mayors have come of age. Almost all of the existing mayors were re-elected, often with very high turnout. But metro mayors aren’t just about politics — they’re a crucial ingredient in local economic success.

Londoners are used to having a mayor to represent the most globalised city in the world. Other metro mayors are still recent innovations — mostly created as part of the “Northern Powerhouse” English devolution agenda.

These mayors have a range of powers, all including planning and transport, and some taking in economic development, skills and social care to varying degrees. But compared to other mayors around the world even the Mayor of London has very limited real powers — our mayors fall short on the range of budgets they control and in particular their control of their own revenues. Too often they have to come to central government with a begging bowl to get anything done. It also seems strange for example that unlike in Manchester the Mayor of London has no formal role in health or social care.

This is where the opportunity lies. Radical devolution of power and resources to elected mayors has the potential to help solve two of the UK’s most long standing problems: one of the highest levels of regional inequality of any developed country, and one of the most centralised models of government. The combination of the two isn’t a coincidence. Nor is the fact that both have fostered a deep sense of dissatisfaction and distrust of Westminster politics. The government’s levelling up agenda is a direct response to all of this, and with focus and hard cash there are areas where central government can make a difference. The net zero challenge is a good example — central government has the resources, and a lot of the investment needed is naturally spread around the country. Expect to hear a lot more about investment in Scotland and the North of England to kick start new technologies like carbon capture and the hydrogen economy. Symbolism also matters — Rishi Sunak’s decision to locate Treasury officials in Darlington has resonated across the North East, helping Tees Valley Mayor Ben Houchen’s claims to be a champion for his area. But real levelling up can’t be delivered from Westminster. Genuine local power has three advantages that the UK is lacking.

First, local buy in. The evidence shows that economic development plans which are designed and owned by local politicians and businesses have more chance of success. Crucially they’re also much longer lasting — outliving a change of mayor or party control. Successful economic development takes decades, but one of the UK’s worst repeated mistakes is that priorities and policies change each time a new minister arrives in the Treasury or the business department.

Second, coordination. This matters especially when trying to attract international investment — far too often our politicians can’t offer a one-stop shop that can bring together planning, infrastructure, universities, skills and all the factors that can swing the decision on where to locate an office or factory. Private sector investors and pension funds are queuing up to finance new projects. Most of the time there’s no need for central government to get involved.

And third, the incredible cumulative power of policy experimentation and innovation. There’s a reason why most new ideas originate in countries like the US where cities and states are free to innovate. Trying one thing at a time and then ripping it up when a new national government takes over couldn’t be a worse framework for finding out what works.

With a White Paper on levelling up now due in the autumn, the rumours are that a reluctance to give up power to politicians from other parties — not least here in London — is holding back some radical ideas. Let’s hope that bold reform wins out over such short-sighted concerns. The government will be judged in large part on whether it can deliver on levelling up, and devolving power is the single policy most likely to work.

Of all politicians, let’s hope this agenda appeals to Boris Johnson, our most famous former Mayor. Having taken back control from Brussels, now we can give more of it away to local areas, including here in London.

⬤ Rupert Harrison is a former chair of the council of economic advisors and portfolio manager at BlackRock

It would solve two of the UK’s major problems: regional inequality and an over-centralised government