It may not have fired the public imagination, but the prospect of devolution was a tantalising one for business and political leaders. So what now, after the deal was killed off by ministers? ADAM BARKER reports
Norfolk and Suffolk’s multi-million-pound devolution plans fell through last week after the Labour government pulled the plug on lucrative deals for both counties.
The deals would have put more power into the hands of local leaders, with both county councils each getting their own directly-elected leader with greater control to build homes, infrastructure and create jobs.
Norfolk’s £600m county deal included an investment fund of £20m a year for 30 years, whereas Suffolk’s £480m deal was worth £16m a year.
But the new Labour government has scrapped both deals, with the party not in favour of plans for directly-elected county council leaders, preferring a mayoral model with a leader separate from the council.
The collapse of the deals means hundreds of millions of pounds of future investment in the region has been lost, casting doubt on major projects.
Norfolk's county deal was agreed in principle in December 2022.
Kay Mason Billig, leader of Norfolk County Council, said schemes now at risk include the redevelopment of Norwich's Anglia Square, the new UEA dentistry school, Hethel Engineering Hub, Scottow Enterprise Park, Attleborough railway station redevelopment and the Nar Ouse Regeneration Area.
"All of this has effectively been put in the bin and we've now got to go back to square one to see what crumbs we can salvage," she said.
"We were looking at £600m over 30 years. We could have used that money to invest in infrastructure, bringing new industry and jobs, and more prosperity for people in Norfolk.
"On top of that there was the adult skills budget which was £12m a year. We were due to take that over from September 2025. That is now in jeopardy as well, we don't know what is going to happen as it was part of our devolution deal.
"The adult skills budget was always devised centrally, so we never knew who those providers were and we had no say in the training that was being offered for higher education.
"Under the deal, we got to see who the providers were and it meant we could tailor the skills, courses and training offered to our residents for the skills they need.
"We would have a much higher-skilled workforce and it would stop a lot of younger people from leaving the county to get training because it is not available locally and then never coming back."
However, Mike Stonard, leader of Norwich City Council, which plans to buy Anglia Square, said Mrs Mason Billig's claim that the revamp of the shopping centre is now under threat is not true.
"Our plans to buy Anglia Square are completely independent of the devolution deal," he said.
“Any suggestions that proposals to redevelop the site are now all of a sudden at risk are completely inaccurate and misleading.
“We are continuing with our plans to look at buying the site so we can shape the future of Anglia Square in the interests of all our local communities and businesses.”
The government has left the door open for a new package to be negotiated, but this could be a cross-county deal jointly involving Norfolk and Suffolk.
Matthew Hicks, leader of Suffolk County Council, said the collapse of Suffolk's deal is "hugely disappointing".
"Under the deal we had received a £480m investment fund, which was money to be invested in Suffolk that we've now lost," he said.
"Areas we could have used it would have been around local business support, the regeneration of brownfield sites, delivering infrastructure and investing in housing and transport infrastructure.
"Now we don't have the money or the confidence of where future money for these sorts of projects might come from."
“This is very disappointing news for West Norfolk and Norfolk more widely," he said.
“We have also been working hard on developing a pipeline of transformational projects for the borough which was planned to be delivered through securing the devolution funding in future years and we are reviewing the impact that this decision will have on delivery."
BUSINESSES WERE 'POISED TO CAPITALISE'
The region's business community has expressed its disappointment with the decision.
Nova Fairbank, chief executive at Norfolk Chambers of Commerce, said businesses were "poised to capitalise on the certainty of investment that devolution would bring to our region".
“Devolution would have clearly stated that the government understood the capability of Norfolk to successfully deliver economic growth, housing, jobs and skills, and would have provided certainty and stability for Norfolk businesses to commit on their own investment decisions," she said.
"In short, Norfolk would absolutely have been open for business.
"Devolution for Norfolk had strong backing from residents and businesses alike.
"Now we are all left with huge frustration and complete uncertainty.
"We would strongly urge the government to reconsider and award Norfolk the devolution funding that it deserves.”
BACK OF THE QUEUE
Candy Richards, the Federation of Small Businesses' (FSB) development manager for East Anglia, said the region is now at risk of "falling behind" other areas in the UK.
“With the plans on hold, businesses will be looking for reassurance that our region will not now go to the back of the queue," she said.
"For the future prosperity of our region, central and local government must work together at pace to develop a new blueprint for devolution that is even bolder, cutting bureaucracy and delivering greater benefits for our communities and businesses.”
A Ministry of Housing, Communities and Local Government spokesman said: “This government strongly believes that mayors should have a unique role, while council leaders must continue to focus on the delivery of the essential services.
“We want to see those two functions kept separate as this benefits the community and its people, which is why we will not be proceeding with the Single Local Authority mayoral deals proposed in Norfolk and Suffolk."
Steve Morphew, leader of Norfolk County Council's Labour group, said: "Nobody should be mourning what was always a second rate deal that would have consigned us to being a second rate county always playing catch-up."
It is not the first time that a devolution deal in the east has fallen through.
A previous Norfolk/Suffolk deal collapsed in 2016 after a string of Norfolk councils withdrew from the process and West Norfolk Council voted against it.
Mrs Mason Billig said she has not given up hope that a new deal can be negotiated.
"We are now going to have to wait at least two years to put anything else together to move forward again," she said.
"I've not given up. I'm not the sort of person to give up and say that's the end of it - because it isn't.
"The minister has now written to me to say he will have a meeting with me, which is a positive step.
"What I will do is see what we can salvage from this."
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereLast Updated:
Report this comment Cancel