Greater Manchester Chamber of Commerce devolution statement for business

Clive Memmott and Sir Richard Leese

Greater Manchester Chamber of Commerce released its statement on devolution on the day it hosted Sir Richard Leese, the leader of Manchester City Council, at an event at Chamber HQ, Elliot House, to discuss future devolution plans.

The event was introduced by Chamber Chief Executive, Clive Memmott, who also chaired a question and answer session with Chamber members.

Sir Richard laid out the five point case for devolution: “First is that cities are key drivers of the economy. Second, in this country outside of the capital, our cities under perform. Thirdly those countries that invest in their second tier cities – their second tier cities perform better. Fourthly where cities have greater freedoms and control over how they grow their economy, they perform better. Fifthly, in order to do that, they need to get their level of organisation right.”

Chamber Policy & Marketing Director, Chris Fletcher, said: “We have had numerous conversations with our members over the last few months and this has formed the basis for our devolution statement which we are releasing today.

"In our conversations about the future governance of our city region, whilst there is considerable positivity about the changes, there is also a real lack of detail regarding the practical implications for business.”

Chamber's Position Statement on Greater Manchester Devolution and Elected Mayor

Greater Manchester Chamber of Commerce and its members strongly support the principle of devolution from central government to those city regions capable of exercising more power over decisions and spending. For a number of years the UK has been one of the most centralised modern economies. There is no doubt that Greater Manchester is the front runner in terms of city regional development in the UK with long-standing experience, political commitment and established partnerships necessary to exercise devolved powers efficiently and effectively. We have all the advantages of being the 'first mover' but now need other regions to be equally successful in their ambitions for more devolved powers throughout the country. Nonetheless, breaking new ground in this way presents both risks as well as opportunities and much will depend on the detail of implementation.

Support for devolution in Greater Manchester remains a top priority in the Chamber's Campaign for Business 2015 and this reflects the views of a majority of our members who have consistently called for a new approach with more key decisions made locally. However, some of our members are naturally concerned about the way devolved powers will be exercised in practice.

Chamber support cannot be unconditional. The way in which devolution is implemented must include:

• All new powers, current and future, should be matched with appropriate accountabilities and transparent evidence as to their impact and effectiveness.
• The establishment of a formal process of continuing open two-way dialogue with Greater Manchester businesses.
• Ultimately it must be more efficient in both the delivery of services and in terms of the cost of administration.
• A new approach to governance and a commitment to devolve down further to local areas and communities, involving business, local people and organisations.

[The] Government has proposed that the accountability condition is met by a directly elected Mayor, which the Chamber agrees is essential, and in the interim an appointed Mayor. This process is still unclear in some respects and our members would like the GMCA to take the responsibility for leading a campaign to encourage engagement with the proposals and that this should herald a new approach to governance which should start as soon as possible.

We also want to see the principle of accountability extended to include involvement in the development of the role of the interim mayor which includes public and business representation. The person selected must have a demonstrable ‘licence to lead’.

The transfer of power from Whitehall to the city region is also the best opportunity yet for a step change to a stronger, more inclusive, open democratic model of governance and to galvanise public interest in and support for local democracy. Devolution must not stop at the door of the Town Hall. We would like to see a commitment to engaging businesses and local people directly in decisions that affect their immediate communities and thereby extend the principle and practice of devolution within the city region itself.

Greater Manchester Chamber of Commerce is the largest Chamber of Commerce in the UK with circa 4,500 members, mostly SMEs but also a significant proportion of corporate and mid-sized corporates and is the only business organisation that deals exclusively with Greater Manchester business. 

Our growing membership employs a third of the 1.1m employees in Greater Manchester and consequently is vital to the economic and social progress of Greater Manchester. Therefore, how Greater Manchester businesses will be connected to the new post-devolution arrangements for decision-making is a crucial question.

Whilst the LEP [Local Enterprise Partnership] is part of the new governance structure and can advise the political leadership, the LEP cannot possibly represent the full spectrum of business in Greater Manchester.

The Chamber, on the other hand has a significant number of members of all sizes and sectors throughout Greater Manchester that means it is a very representative voice of business throughout the city region.

We will continue to work closely with the LEP in maintaining on open and continuing dialogue with CA [Combined Authority] leaders.

This is essential if businesses are to feel they are valued and also to have the confidence to make the investment decisions necessary to promote the social and economic development we all want to achieve both in Greater Manchester and the wider Northern region.