England's new wave of mayoral strategic authorities (MSAs) now hold more powers than ever before – across areas such as transport, skills and housing. But the devolution of power is not in itself a guarantee of economic success. The real promise lies in the effective use of these powers.
A recent Institute for Government report provides a five-step roadmap for crafting effective local economic strategies. If mayors can follow these steps, they will give themselves the best opportunity to use new powers over transport, skills, housing and more to improve their economies and the lives of their citizens.
Not all places however are starting from the same place. London, Greater Manchester and the West Midlands have well defined regional strategies and relatively mature institutions. Elsewhere, new MSAs are new institutions still finding their feet, operating across new geographies, or still yet to be established. Whatever the starting point, all strategic authorities can learn from success stories both at home and abroad.
A critical first step is grounding the strategy in a robust evidence base that is tailored to the local context. The Manchester Independent Economic Review, a multi-year review of the regional economy in the late 2000s, formed the basis of the Greater Manchester Strategy.
Even where such a big piece of work is not necessary or possible, places can draw on local expertise in universities. The detailed analysis of local clusters and inward investment trends in Surrey conducted by the University of Surrey's Centre for Britain in Europe is a good recent example.
The second step – creating a shared long-term vision – is about asking ‘where do we want to be in 10 or 20 years?' – and then ensuring buy-in for the answers among local stakeholders. Leeds offers a compelling example.
Through its ‘Team Leeds' model, the city council brought together public, private, academic and voluntary sectors under a shared vision. The power of this approach is the message that this is a collective agenda, not just a council-led one.
The elephant in the room is local capacity. Many areas still lack the people, data, or tools to deliver complex economic strategies. The Government's commitment to devolution must be matched with support to build that capacity on the ground.
But vision alone is not enough. The third and often hardest step is translating that vision into a deliverable plan. That means being honest about trade-offs – what will be prioritised, and what won't. MSAs operate through consensus between the mayor and constituent council leaders. In that context, tough decisions about geographic and sectoral prioritisation can be hard.
But if everything is a priority, nothing is. A credible strategy must identify sectors and places with the highest growth potential to guide investment choices, even if that means some areas receive more targeted support than others. These trade-offs of course should be informed by high-quality evidence but strong, strategic leadership plays a crucial role.
Past successes in UK cities often stems from mayors using their position to convene stakeholders and speak for their region. Andy Burnham has strengthened the distinct identity for Greater Manchester through years of strong leadership in the 2000s, and Oliver Coppard has used international trips to highlight the strengths and potential of South Yorkshire.
The fourth step – communicating the strategy – is often overlooked. Different audiences need different messages. Residents need to see how the strategy will improve their lives, and the success of some policies and programmes will rely on resident participation and behaviour change. Businesses want clarity on where and how to invest.
And central government wants to know that plans align with national priorities and are delivery ready. Two-way communication with residents can also offer useful feedback loops and bring to the surface local insights about what is working and not working. Places need a single, coherent strategy, but they can communicate it in different ways.
Finally, the fifth step is delivering on the plan and refreshing it regularly. Too often, strategies are published and then shelved. MSAs must treat them as living strategies and track delivery, adjust based on new evidence, and report progress transparently.
The elephant in the room is local capacity. Many areas still lack the people, data, or tools to deliver complex economic strategies. The Government's commitment to devolution must be matched with support to build that capacity on the ground.
For local places, drawing on external expertise – for example from universities in the local area which are invested in the growth potential of the region – will help to strengthen the evidence base and develop strategies faster.
The Government has now committed to providing mayors more powers to improve their local economies and citizens' lives. It is now essential that mayors develop strategies capable of delivering on this promise.
Rebecca McKee is a senior researcher on the public finances team at the Institute for Government
