Unlock power of devolution by investing in infrastructure says ICE

Infrastructure is key to rebalancing the economy and must be at the heart of the devolution agenda to boost local growth, environmental sustainability and quality of life, according to the Institution of Civil Engineers (ICE) latest State of the Nation report launched today.

State of the Nation: Devolution supports the government’s effort to rebalance the economy, arguing for a focus on infrastructure as the key driver and the creation of new combined authorities and transport bodies.

In a ten-point plan ICE called for bodies to be granted greater access to flexible financing streams to supplement central government funding - enabling investment in infrastructure that is “transformational”, and the skills needed to deliver it. ICE said an infrastructure strategy based on need should be established for every current and emerging economic area - including more rural areas without a multi-city make up - so money is directed towards the right projects.

ICE also recommended that all new devolution proposals clearly set out how they will improve environmental sustainability and quality of life, as well as drive growth, claiming a more integrated approach would lead to broader benefits and could help to garner more public support for devolution.

ICE vice president, Adrian Coy, said: “The benefits of effective infrastructure are well established - it can boost economic growth, create jobs, regenerate communities, connect people and places and drive environmental sustainability. It is right that infrastructure investment is the driving force behind government’s plans to rebalance the economy, and we hope to see ongoing commitment to the devolution agenda during the EU exit negotiations, so momentum is not lost.

“Looking forwards, combined authorities must now take the helm and deliver these benefits locally. This will be no mean feat, but with the right frameworks, investment and skills in place they can succeed.”

Coy said that ICE wanted to see the lifting of restrictions on combined authorities accessing additional financing streams, so they can invest in infrastructure - and skills - that can transform a region. “While combined authorities have the will and powers, their financial means are currently limited,” said Coy. 

“To ensure decisions on spending are strategic, overarching infrastructure strategies should be developed, based on need,” Coy continued. “Midlands Connect and Transport for the North have provided greater focus for transport services and we should build on this success, establishing strategies for all networks– recognising their interdependent nature – and all wider areas as they emerge. The National Needs Assessment ICE is leading, which will feed into the National Infrastructure Commission, offers a workable model,” Coy said.

Coy said that ICE wanted to see more rounded devolution proposals. “Rebalancing the economy should not only be thought of in financial terms,” he said. “Enriching people’s lives is not just about increasing their income but also the quality of their living environments. More integrated proposals, setting out how they will also achieve environmental and social goals, will deliver broader benefits to society,” he said.

ICE’s 10 recommendations

1. All future devolution proposals should demonstrate how they will improve quality of life and environmental sustainability in addition to driving economic growth

2. Authorities seeking a devolution deal should demonstrate a clear model for leadership and accountability; however models to achieve this should reflect each area’s unique identity

3. Restrictions stopping combined authorities from accessing flexible private finance streams must be lifted if they are to deliver and maintain transformative infrastructure 

4. Future devolution deals must include funding for digital infrastructure so smart technologies which improve services for the public and the environment can be developed 

5. Infrastructure strategies should be developed for emerging economic areas in England setting out needs, to provide a framework for decision-making

6. Similar approaches to identify strategic needs should be developed for London, Northern Ireland, Wales and Scotland

7. Infrastructure strategies must have resilience at their heart – considering the interdependent nature of each areas networks and mitigating the knock-on  failure which can occur during extreme weather, affecting local businesses and economies

8. Regional pipelines setting out confirmed infrastructure projects should be developed, enabling government, authorities, industry and academia to invest in the right training in the local area

9. Combined authorities should be given responsibility for the skills development of those aged 16-19 - in addition to those aged 19 plus - to create a more joined up approach

10. Government should provide pre-submission advice - to ensure high quality devolution proposals that deliver effective outcomes for the country

Click here to view the State of the Nation: Devolution report.