An extra £2bn a year could be generated for the West of England’s economy if the Government handed back control over areas such as skills, transport and housing to the region, according to the leaders of its four local authorities.
They have submitted a proposal to the Treasury calling for devolution of powers in a number of areas from Whitehall, with a view to getting the green light from Chancellor George Osborne in his Autumn Statement.
The package of measures is focused on increasing economic productivity to grow the region’s economy by at least 5% more than it would without the deal. 
The local authorities say this would create a fairer region where people have better access to employment, more homes available and better transport options. They have stressed to ministers that the West boasts the strongest economy outside of the South East and is the only city-region to be a net contributor to the Treasury through business rates.
However, they fear growth is being stifled by deep-rooted transport problems and a lack of skilled workers.
The West of England has lagged behind other regions, especially in the North West, in persuading the Government to hand back powers. This has been blamed on slow progress in getting the four authorities to work together in critical areas such as housing and transport.
While Government ministers – particularly George Osborne – has championed the Northern Powerhouse, the idea of a West of England equivalent has failed to gain any traction outside of the region.
But the four authority leaders say the latest bid is closely linked to existing, successful joint working in the region and would open up opportunities for more cross-border projects.
They said it would mean an “even more collaborative approach” to issues such as where new homes are built and how public transport improvements are delivered along with greater local control over post-16 training and skills – a move likely to be welcomed by business leaders.
The submission proposes a ‘Payment by Results’ approach to the £1bn for infrastructure. This means the region is seeking the freedom to borrow money to invest up-front, with the Government committing to repaying it once the economic success of the investment has been demonstrated.
Mayor of Bristol George Ferguson, pictured, said: “I am delighted with the progress we have made over the last few months which has enabled us to come up with a unique devolution offer tailored to suit the special qualities of the city region and the particular challenges we face.
“I strongly believe in investing in success and we’ve an excellent record in this region with so much to offer the UK economy. By putting more investment and power in local hands we’ll be able to drastically improve the speed and efficiency with which we improve our transport system, reduce congestion, create affordable new homes and help some of society’s most disadvantaged people into training and work.
“The West of England is already the UK’s most economically productive region, but this deal will help to secure and improve our position rather than risk falling behind some of our Northern counterparts. We’re calling on the Government to recognise the obvious advantages of backing a winner by giving us the freedom we need to be even more successful and make a real difference to local lives and UK PLC.”
North Somerset Council leader Cllr Nigel Ashton added: “The devolution deal builds on the strong partnership working we have in the West of England and in making this submission to government we are signalling our ambition for growth. Alongside this we are also seeking to secure powers so that we can make sure that growth takes place in appropriate places and is supported by improvements to our transport network and provision of essential infrastructure.”
Referring to the proposition on skills, Cllr Ashton added: “The proposals also give us a real opportunity to work with businesses, government and our training and education providers, making sure we develop skilled people locally to sustain growth in our area.”
South Gloucestershire Council leader Cllr Matthew Riddle said: “We are pleased to be able to make the case to Government that South Gloucestershire and the West of England have the track record, vision and the capability to take on the devolved powers that will enable us to grow this region for all our futures.
“People are at the heart of these proposals, and people in every part of the region will be best served when the Government devolve to us not only the powers we are setting out, but also the mechanisms to fund the plans that will deliver housing, education and transport infrastructure for a sustainable future.”
Chair of the West of England Local Enterprise Partnership (LEP) Colin Skellett added: “This is a major step forwards and builds on the excellent joint working between the four unitary authorities and business. We have clearly demonstrated our ability to manage devolved funding and responsibilities through our City Deal. This further proposition will enable our strong regional economy to grow even faster to the benefit of UK PLC and everyone who lives and works here.”
Following its submission the West of England will work closely with the Government on the detail of the proposals.
