Thread by @BDavisBriz

With the publication of the #LevellingUpWhitePaper, today, I'm looking forward to what should be a timely discussion on how Govts could work with the Private Sector to deliver on the #LevellingUp agenda #IfGlevellingup

https://twitter.com/instituteforgov/status/1488807439533322247

First speaker @SCCI_Sara says there is an "extreme appetite" from businesses to work with the Government. Notes that in #Stafordshire in particular, there is a sense of relief that spatial strategy & local economies are "on the agenda at last" #IfGLevellingUp

.@greatermcr's John Wrathmell agrees. Says that the #CombinedAuthority has been concerned about #LevellingUp the region "before the government invented the phrase" & says that wanting to increase opportunity for all should be a "clear goal" of any Govt #IfGLevellingUp

Wrathmell then lists some of the activities that the MCA has done in #LevellingUp agenda. Also notes the importance of the #MetroMayor "figurehead" in terms of helping DIT bring FDI into the region #IfGLevellingUp

Wrathmell is also positive in the role of private business in delivering on #LevellingUp - particularly in the spheres of R&D and Innovation #IfGLevellingUp

Next speaker @stephenmuers discusses the role of #SocialCapital in #LevellingUp. Observes that there is a shift amongst investors moving away from "extractive business models" to investments that offer "social as well as financial returns" #IfGLevellingUp

In particular, Muers notes the role of social capital in supporting Microbusinesses, many of whom are Women-owned or BAME-owned, which may not have access to mainstream financial schemes #IfGLevellingUp

Muers also notes the importance of social & cultural infrastructure in delivering on #LevellingUp. Says while Govt's grant-funding model is "well meaning", it is not always sustainable. Says social capital can help make community assets viable businesses #IfGLevellingUp

Final speaker @kevinhollinrake says Govt has not given enough thought to the role of private business in #LevellingUp. Says big infrastructure (eg railways) often require public money, but being well-connected doesnt necessarily make a place attractive to business #IfGLevellingUp

Hollinrake says that the current concentration of Angle Investors and Venture Capitalists is still in London & the South East. Says Govt needs to incentivise them to invest more in low-productivity regions #IfGLevellingUp

Williams agrees. Welcomes the announcement of a Procurement Act - suggests that it can open up opportunity to SMEs and regionally-based businesses. However, says this needs to be accompanied by capacity building to help those businesses actually engage with bids #IfGLevellingUp

Williams also says that Govt needs to work more closely with #LocalGov to ensure that any proposed investments or developments are appropriate and helpful to regional economies #IfGLevellingUp

Muers says that Govt needs to focus on "outcomes rather than deliverables". Gives the example of outcomes-based commissioning in #SocialCare as "money that was going to be spent anyway, but spending it better". #IfGLevellingUp

Wrathmell agrees - while there is an argument for increasing funding regionally, it is also important that this money is spent well #IfGLevellingUp

Wrathmell criticises the "competitive pots" model of regional funding. Says this takes up a lot of capacity and makes project delivery unsustainable. Hopes there will be a "shift away" from this in the White Paper #IfGLevellingUp

When asked what this could mean for #Devolution, Hollinrake says he believes that "the appetite lost under May is back under Gove". #IfGLevellingUp

However, Hollinrake believes that devolution of funding needs to be matched with devolution of accountability. there needs to be an elected figure, such as a #MetroMayor who is willing to "stake their reputation" on projects for their area & be held accountable #IfGLevellingUp

Williams says that Govt also needs to be mindful of how current policies may undermine authority of local leaders. Gives example of #Freeports - a central policy that may potentially "reallocate, rather than grow, local economic activity" #IfGLevellingUp

On education, Williams welcomes the commitment in the White Paper is the commitment to lower rates of illiteracy, expressing her shock that it is something we as a society are still having to tackle in the current age #IfGLevellingUp

Muers also welcomes the focus of educational attainment beyond the school room. Says social investors have a key role to play in supporting VCSE groups in helping offer support to their communities #IfGLevellingUp

On how long-term #LevellingUp will be, Hollinrake agrees Parliament has a reputation of "only looking to the next election cycle". However says that #LevellingUp is the "right thing to do economically & politically" so hopes it will be here "for some time to come" #IfGLevellingUp

Hollinrake says that Govts of all colours "want to level up", even if they did not call it that. However, says politicians need to have "the courage of their convictions" and look beyond the "hefty price tags" #IfGLevellingUp

In particular, Hollinrake says Govt needs to increase the availability of SME finance. Says this needs to come either from social finance, or the rollout of regional mutual banks. Observes 🇬🇧 is the only G7 country not to have RMBs #IfGLevellingUp

Holinrake says RMBs could be a "win-win" for #LevellingUp as they support regional economies, provide a surplus for reinvestment, promote trust in small businesses, and help promote financial inclusion for minority-owned businesses #IfGLevellingUp

On the longevity of #LevellingUp, Wrathmell calls for the Govt to continue working with Combined Authorities. Says that "no matter what the priority in Westminster, Levelling Up will always be a priority for GMMCA" #IfGLevellingUp

Wrathmell says that MCAs can provide the continuity of expertise & partnership even as policy shifts. Notes the work that went in to #LocalIndustrialStrategies still underpins a lot of activities even though Govt has scrapped the #NationalIndustrialStrategy policy #IfGLevellingUp

Williams welcomes the idea of RMBs, but notes that many businesses are currently "financially beleaguered" following #Coronavirus and the cost of living crisis. #IfGLevellingUp

Williams says that there needs to be a "restoration of trust" between businesses and financial institutions to encouraging businesses to begin borrowing again to promote investment in their local economies #IfGLevellingUp

Muers also says that Govt needs to work more closely with social investors to help promote the opportunities for "sustainable scalable models of finance" that would come from successfully #LevellingUp the regions #IfGLevellingUp

In particular, Muers welcomes the progress Dormant Assets Bill, and the fact that many LGPS schemes exploring ways of investing in their regions for the benefit of local people & increasing value of their customers' pension pots #IfGLevellingUp

When asked if new institutions will be needed to deliver #LevellingUp, Wrathmell & Williams argue against providing "additional tiers". Wrathmell says the MCA role is to bring all layers of #LocalGov up to working at a regional level #IfGLevellingUp

Wrathmell says that more work should be done to improve channels of communication between central government and regional powers, rather than building new institutions #IfGLevellingUp

Hollinrake agrees. Says Mayor @BenHouchen calls himself "a one-man Regional Development Agency" and believes that that should be the role of all current and new MCAs and County Deals, with a single point of contact between Westminster & the region #IfGLevellingup

On the challenges of changing spending/funding patterns to ensure existing money is better spent, Hollinrake recognises concerns. Believes the best way to do this will be to increase incentives from private enterprise to invest (eg match funding, enterprise zones) #IfGLevellingUp

Hollinrake says that the #LevellingUpWhitePaper is a "once in our lifetime" opportunity to get regional development right. Calls on the Treasury to be brave in its decisions for reallocating funding & encouraging private investment #IfGLevellingUp

On whether more conditionality should be attached to public money given to private businesses, Williams agrees there should be more of a focus on outcomes #IfGLevellingUp

However, Williams says that Central Govt & Local Govt needs a "social value budget" as well as a financial to ensure that commissioners are "buying the outcomes they want" #IfGLevellingUp

Muers says that this can be a "virtuous circle" if done right, as outcomes-based commissioning eventually encourages the growth of businesses "that have social benefit at their heart", which in turn delivers better social outcome for all #IfGLevellingUp

Panellists were asked 1 thing they'd want from the White Paper:
Hollinrake: Regional Mutual Banks
Wrathmell: Joining up of funding pots & flexible funding streams
Muers: Learn from CV-19 guarantee schemes to back social lenders
Williams: Clear national metrics
#IfGLevellingUp

Intereting debate on the role of the private sector in the #LevellingUp agenda. Thanks @kevinhollinrake @stephenmuers @SCCI_Sara & John Wrathmell for your insights, to @gemmatetlow for chairing & @ifgevents for hosting! #IfGLevellingUp

@threadreaderapp unroll please