The collapse of the Sheffield city region’s devolution deal has led to its own Brexit-style period of uncertainty, the panel at EG’s Sheffield Question Time heard this morning.
Martin McKervey, a member of the Local Enterprise Partnership board and partner at CMS Cameron McKenna Nabarro Olswang, said it was “quite frankly unacceptable” that Doncaster and Barnsley decided last week to vote against a devolution plan for the Sheffield city region, which they had previously agreed to three times.
The two walked away from the deal, which also included Sheffield and Rotherham, favouring a move toward a wider Yorkshire devolution plan.
McKervey said: “The devolution deal we negoatiated was the second best in the country – better than Manchester’s, better than Liverpool’s and bettered only by Tees Valley.
“We are almost in a Brexit situation. We are in a period of perceived uncertainty and I think our political leaders who walked away from the deal do need to be held to account.”
Despite Barnsley and Doncaster voting against the deal, Sheffield city region will vote for a mayor next May. The mayor will no longer be granted powers over strategic planning, which would have included access to £30m a year of government funds.
John Mothersole, chief executive of Sheffield City Council, criticised the hope for a Yorkshire-wide deal: “We’re taking a fairly simple approach: there is a deal on the table for Sheffield city region. There is not a deal for Yorkshire. So why don’t we take the deal we’ve agreed to that’s tangible – it’s got money and powers attached to it – and collaborate and see what the future builds?”
Still, he added, the deal’s collapse was not a step backward for the city: “We’re no worse off today than we were yesterday. Everything we’ve achieved to date we’ve achieved without a devolution deal.
“However, we could achieve so much more with one. Not doing it does not take us backwards, but it limits the pace at which we can go forwards.”
While Mothersole said the council will continue working toward a Sheffield city region deal, arguing that it will not “throw away” the positive reputation it has built with the government throughout the process, McKervey called on businesses to rally around devolution.
“We need to hold out to businesses in Barnsley and Doncaster and be relentless in having discussions with them so they can understand the merits of doing this deal.
“This deal is good for Sheffield and it’s good for the Sheffield city region. We need to find a way of moving forward.”
Better connectivity in the North of England, led by HS2, has the potential to create 850,000 jobs and close the region’s productivity gap with London.
Kevin McCabe, founder and chairman of Scarborough Group, told EG’s Sheffield Question Time that the city has the potential it needs to attract investment, but it is missing the infrastructure to harness it.
He said: “Sheffield’s got the ingredients: it’s got space, it’s got nice suburbs that accommodate for all standards of living. The city centre’s on an upward trend and is a far more interesting centre tan the competitors up the road in Leeds.
“There’s not much wrong with Sheffield, it’s just always improving infrastructure.”
Meanwhile, Martin McKervey, partner at CMS Cameron McKenna Nabarro Olswang, argued that HS2 is not enough to meet demands in the north, calling for more focus on building better connections with Leeds and Manchester.
He said: “We cannot look at our transport challenges in Sheffield in isolation. We have to look at them as part of the six core cities of the north.
“Our GVA in the north is 25% lower than it is in London. So whatever way we cut it, we’re not as productive and we’re not creating as much wealth or as much prosperity. Given the strengths of the north, including cities like Sheffield, we really have to do something about that.”
Building that connectivity, he said, could unlock 850,000 new jobs in the region.
The key to success, Nick Riley, architect and board director at Whittam Cox Architects, added, was in understanding and articulating Sheffield’s uniqueness rather than competing with Manchester and Leeds.
The city needs to publicise its quality of life as an “outdoor city” by the Peak District, for example, rather than try to replicate Manchester and its connections through its international airport.
Q&A: John Mothersole, chief executive of Sheffield City Council
What impact will devolution falling through have on Sheffield?
“The impact of not doing it is we don’t get access to £30m a year for the next 29 years. We don’t get control over the buses, and the reputation of South Yorkshire surely must be somewhat damaged because of that. The deal would have enabled us to invest at a faster rate to drive bigger and faster growth. Not doing the deal doesn’t mean no growth. It means it’s going to be harder to deliver growth at the rate that we want to see it. But we haven’t given up. We are not writing this deal off yet.
How do you give the North a voice in the Brexit negotiations?
The eight big cities in England, five of which are in the north, have written to Michel Barnier to say “You should grant us a voice with you direct” and he has agreed. We’re being noisy, but we’re not just making noise. We’re making solid proposals. Whether that is enough we will see, but we will carry on relentlessly with this.
How do you draw investors into Sheffield?
Sheffield has always done quality. Our brand to the business community will be built upon the fact that a McLaren and a Boeing and a Rolls Royce are here. They are iconic brands. They drive curiosity. They drive people saying: “Actually, if McLaren sees something in this place, I need to check it out.”
photos: © Pete Hill
To send feedback, e-mail karl.tomusk@egi.co.uk or tweet @ktomusk or @estatesgazette
