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Regional Studies

ISSN: 0034-3404 (Print) 1360-0591 (Online) Journal homepage: https://www.tandfonline.com/loi/cres20

Inclusive growth in English cities: mainstreamed or


sidelined?

Paul Sissons, Anne E. Green & Kevin Broughton

To cite this article: Paul Sissons, Anne E. Green & Kevin Broughton (2019) Inclusive
growth in English cities: mainstreamed or sidelined?, Regional Studies, 53:3, 435-446, DOI:
10.1080/00343404.2018.1515480

To link to this article: https://doi.org/10.1080/00343404.2018.1515480

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Published online: 22 Oct 2018.

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REGIONAL STUDIES
2019, VOL. 53, NO. 3, 435–446
https://doi.org/10.1080/00343404.2018.1515480

POLICY DEBATES

Inclusive growth in English cities: mainstreamed or sidelined?


Paul Sissonsa , Anne E. Greenb and Kevin Broughtonc

ABSTRACT
The concept of inclusive growth is increasingly presented as offering prospects for more equitable social outcomes.
However, inclusive growth is subject to a variety of interpretations and lacks definitional clarity. In England, via
devolution, cities are taking on new powers for policy domains that can influence inclusive growth outcomes. This
opens up opportunities for innovation to address central issues of low pay and poverty. This paper examines the extent
to which inclusive growth concerns form a central or peripheral aspect in this new devolution through the content
analysis of devolution agreements. It concludes that inclusive growth concerns appear to be largely sidelined.
KEYWORDS
devolution; inclusive growth; ‘good jobs’; cities; England

JEL I30, J48, O25, R58


HISTORY Received 7 December 2017; in revised form 7 August 2018

INTRODUCTION The possibility of an inclusive growth focus by cities has


current relevance in England (and the rest of the UK), with
There is increasing interest in the idea of inclusive growth the ongoing process of devolution of powers to cities open-
as potentially offering a model through which the gains ing up new opportunities. Since 2010, several cities have
from economic growth can be more equitably shared. negotiated a series of City Deals, Growth Deals and Devo-
Internationally, this interest is seen in the promotion of lution Deals with central government through which they
inclusive growth by organizations such as the Organisation have agreed the devolution of new powers and resources
for Economic Co-operation and Development (OECD) in policy domains such as transport, housing, business sup-
(2015, 2016). In the UK, the Royal Society for the Encour- port, skills and employment.
agement of Arts, Manufactures and Commerce (RSA) ran The benefits of devolution, and their distribution,
a high-profile commission on inclusive growth (RSA, depend on the way devolution is designed and the nature
2017). There has also been a proliferation of indicators and scale of devolution agreements (Tomaney, 2016).
aimed at capturing dimensions of inclusive growth in the The process of devolution to cities potentially opens up
UK and elsewhere (Beatty, Crisp, & Gore, 2016; new opportunities for them to take actions to improve
OECD, 2015; Rafferty, Hughes, & Lupton, 2017; the equity of outcomes. However, there is an important evi-
Shearer, Friedhoff, Shah, & Berube, 2017). dence gap around the extent to which English cities are
The concept of inclusive growth has also been taken able to use such opportunities to develop more inclusive
up at city and regional level. For example, in the UK, policies. Moreover, the concept of inclusive growth is not
a range of cities have established ‘fairness commissions’, clearly defined and is subject to different definitions.
bringing local stakeholders together to lobby for local The extent to which cities articulate notions of inclusive
approaches to address inequality, often including through growth or make the case for it is under-researched. This
encouraging the payment of Living Wages (Lyall, 2016). paper addresses these evidence gaps by assessing the extent
Across Europe and the United States there are also to which inclusive growth concerns appear to have been an
examples of cities developing approaches towards greater important consideration of devolution agreements with
inclusivity in labour markets (Green, Froy, Sissons, & English cities, and examining how cities frame their future
Kispeter, 2017). plans for economic (and social) progress. To make these

CONTACT
a
(Corresponding author) paul.sissons@coventry.ac.uk
Centre for Business in Society, Coventry University, Coventry, UK.
b
a.e.green.1@bham.ac.uk
City-REDI, University of Birmingham, Birmingham, UK.
c
aa3976@coventry.ac.uk
Centre for Business in Society, Coventry University, Coventry, UK.
Supplemental data for this article can be accessed at https://doi.org/10.1080/00343404.2018.1515480.

© 2018 Regional Studies Association


436 Paul Sissons et al.

arguments, the paper provides new content analysis of pub- market issues and the quantity and quality of work
lished devolution agreements negotiated by central govern- (Green et al., 2017).
ment with six large English cities in the period between Particular framings of inclusive growth have important
2012 and 2016. This is the time during which devolution implications for the way in which the concept is under-
to cities became established, so setting the context for stood. Turok (2010) distinguishes between the weighting
ongoing developments. The paper focuses particularly on that policy places on greater equality of opportunity versus
issues of employment: a central concern of inclusive growth greater equality of outcomes. He argues that inclusive
strategies. growth approaches have tended to focus more on greater
In assessing devolution agreements this paper contrib- equality of opportunity, which tends to be politically easier
utes to academic and policy debates on devolution, deal- to pursue than equality of outcomes because the latter is
making and inclusive growth, with a novel feature being likely to rely more heavily on redistribution through taxa-
the application of a ‘good jobs framework’ to assess the tion and social security systems.
nature of approaches to inclusive growth. The ‘good jobs Setting out a useful typology, Lupton and Hughes
framework’ (Osterman, 2008) is way of assessing employ- (2016) identify a ‘Growth Plus’ interpretation of inclusive
ment policy; distinguishing between efforts to create growth, which prioritizes growth but also recognizes the
more high-quality jobs and those seeking to improve the need to link individuals to newly created opportunities
existing stock of jobs, as well identifying the nature of the associated with this, largely through connectivity and
mechanisms used to meet these aims. The paper also con- labour market supply-side initiatives. This approach
tributes to the literature examining the potential for inclus- works with the established economic model rather than
ive growth concerns to significantly influence policy presenting a substantive departure from existing practices.
development and to challenge inequalities. The experience They contrast this with an ‘Inclusive Economy’ approach
of English cities described in the paper has wider inter- that seeks to challenge and change elements of growth gen-
national relevance for a number of reasons. First, given erating inequality, rather than mitigating their outcomes.
the increasing international interest in inclusive growth, The first approach works with the grain of existing neo-lib-
the research provides a novel way of analyzing inclusive eral framings, while the second represents a more radical
growth through content analysis and through the appli- shift towards a new economic model focused on the nature
cation of the good jobs framework. Second, with cities of growth and associated governance structures needed to
seen as important actors in inclusive growth (Lee, 2018), serve the ‘wider public interest’ (Cowling & Tomlinson,
the paper demonstrates the importance of the consider- 2011, p. 831).
ation of powers and power relationships between different The OECD (2015, p. 1) suggests inclusive growth can
levels of government and policy-making. Finally, English be supported by ‘win–win policies’ focused on macroeco-
cities provide a case of the challenges for developing inclus- nomic stability, employment and skills, enterprise and
ive growth approaches that are likely to have strong reson- innovation, finance, economic development, infrastructure,
ance for other liberal market economies and for countries competition and product market regulation, and public ser-
with relatively centralized governance systems. vices. However, there is a danger that this view prioritizes
The paper is structured as follows. The next section dis- technocratic fixes and policy tweaking, but ignores thornier
cusses the development of inclusive growth as a concept questions around the relationship between economic
and identifies some of the challenges in defining it. The growth, political power and economic inequality.
third section details the process of devolution to English In England, the term ‘inclusive growth’ has tended not
cities over the period 2012–16. The fourth section dis- to be much used by policy-makers, albeit language invoking
cusses the selection of cities and outlines the methods it is evident. Prime Minister Theresa May, for example, has
used to analyze city devolution and inclusive growth. The talked of the need ‘to make Britain a country that works not
fifth section presents the analysis of the extent to which for the privileged few, but for every one of us’ (13 July
inclusive growth concerns are apparent in city devolution. 2017).1 In one of the nations of the United Kingdom –
Section six concludes and considers implications for policy. Scotland – the concept of inclusive growth is more expli-
citly acknowledged. The Scottish government’s Economic
THE CONCEPT OF INCLUSIVE GROWTH Strategy (March 2015) specifies ‘promoting inclusive
growth’ as being one of the country’s four priorities
‘Inclusive growth’ is a term that is now quite frequently (p. 13). Scotland has also explicitly referenced and targeted
deployed; however, it is rather amorphous and subject to issues of ‘Fair Work’; this is significant given the
a range of different interpretations. As Ranieri and importance to issues of employment quantity and quality
Ramos (2013, p. 10) surmise, inclusive growth might be in most definitions of inclusive growth (Green et al., 2017).
best characterized as ‘an intuitively straightforward and
yet elusive concept’. For Lee (2018, p. 1), the concept is DEVOLUTION AND ECONOMIC
one that is ‘conceptually fuzzy and operationally proble- DEVELOPMENT IN ENGLAND
matic’, and which may function more through the adaption
of existing policies and practices than through the develop- Historically, England has been characterized by centralized
ment of new ones. Inclusive growth can include a range of policy-making and limited devolution of powers to subna-
policy domains, although primacy is often given to labour tional areas, although in the wider UK there has been

REGIONAL STUDIES
Inclusive growth in English cities: mainstreamed or sidelined? 437

devolution of selected policy areas to Scotland, Wales and & Wood, 2017). This raises questions about how mean-
Northern Ireland. The Conservative–Liberal coalition gov- ingful the experience of subnational devolution has been
ernment (2010–15) initiated a series of ‘deals’ with selected (Ayers, Sandford, et al., 2017; Ayers, Flinders, & Sand-
cities to devolve powers and resources in particular policy ford, 2017). Within this context it has been argued that
areas. The Conservative government (2015–17) sub- more radical and citizen-centric principles are needed to
sequently extended the coverage and scope of devolution replace a preoccupation with the failings of individual
agreements (National Audit Office (NAO), 2016). How- places (lack of competitiveness, skills deficits etc.) which
ever, the transfer of powers has been uneven between places are the current priorities of devolution (Etherington &
and in terms of policy domains under consideration Jones, 2016; MacKinnon, 2016).
(O’Brien & Pike, 2015). The policy narrative has focused Lee (2017), writing on the idea of a Northern Power-
on ‘rebalancing’ and has been bound up with the idea of house, a concept which has received considerable political
the need for a counterweight to the concentration of econ- attention as offering an alternative to London-centric
omic activity and growth in London and the Greater South growth, identifies a series of issues with the development
East. The context to devolution and a focus on spatial reba- and deployment of the devolution and rebalancing agenda,
lancing is that patterns of spatially uneven development are including the lack of an overarching strategy or an accoun-
deeply engrained in the UK’s economic geography (Gardi- table institution.
ner, Martin, Sunley, & Tyler, 2013; Martin, Pike, Tyler, & Devolution has also been accompanied by a reduction
Gardiner, 2016). in financing of economic development activities in com-
The process of devolution to cities started in earnest parison with the previous iteration of regional policy
with the agreement of a series of City Deals: agreements where delivery was executed through regional development
between central and local governments involving the devo- agencies (Hildreth & Bailey, 2013; MacKinnon, 2016).
lution of negotiated new powers and resources to individual While the adequacy of funding to address spatial inequal-
cities (Crowley, Balaram, & Lee, 2012). Initially these ities is a longstanding problem (Gardiner et al., 2013),
focused on the eight largest cities outside London. A extended fiscal austerity in the period since 2010 has
second set of deals were subsequently agreed with 17 smal- reduced local capacity to act and invest to support local
ler cities. The deals made provision for devolution focused economic development. This problem is exacerbated by
on transport, business support and skills. On the back of prioritization of spending on a new industrial strategy
this a series of local Growth Deals were agreed which which preferences a narrow range of sectors focusing on
were designed to address local barriers to growth. These economic competitiveness. These sectors are often under-
attracted funding from a new Local Growth Fund. represented in many disadvantaged areas (Fothergill,
The Cities and Local Government Devolution Act Gore, & Wells, 2017).
2016 established the framework for further devolution These issues highlight a disconnect between the promise
and a new wave of devolution agreements. Devolution to of devolution to empower cities to set their own priorities
English cities has also been tied to provisions for govern- and the reality of limits to both powers and resources
ance changes: specifically the establishment of directly being devolved. Both powers and resources are clearly funda-
elected mayors. mental in the extent to which more inclusive approaches to
There have been a number of criticisms of the approach development can be adopted. Here, historical studies of
to devolution adopted in England. These relate to the pro- power relations and governance are instructive. The litera-
cesses through which devolution has been developed and ture on statecraft identifies the preoccupation of central gov-
the asymmetrical power relations between central and ernment with the ‘high politics’ of policy associated with
local governments; the limited nature of powers which macroeconomic management and taxation, alongside the
have been devolved; the fuzziness of the devolution agenda ‘“peripheralization” of many matters of “low politics” to gov-
and lack of a strategic approach; and, critically, the limited ernmental agencies outside the centre’ (Bulpitt, 1986, p. 28).
financial resources attached to devolution agreements. This framework has been applied to local English devolu-
Each of these is discussed briefly in turn. tion, with the authors arguing that devolution does little to
Devolution in England has been bound up with a pro- redress the concentration of high politics within central gov-
cess of ‘deal-making’. First, this means that devolution has ernment, which by extension frames the dominant growth
progressed in a piecemeal and fragmented manner. Rather model and approach to economic development (Ayers, Flin-
than a transparent offer of devolution of particular powers, ders, et al., 2017).
there has been an ad hoc and opaque process of negotiation The scope for changes associated with devolution
in private with individual cities (Ayers, Sandford, & towards developing a greater emphasis on inclusive growth
Coombes, 2017). Second, agreement of deals is subject to can also be considered by drawing on Hall’s (1993) classic
content being acceptable and agreeable to central govern- framework of the policy paradigm shift. Hall identified the
ment, including individual ministers and HM Treasury following changes in policy instruments and hierarchies
(Tomaney, 2016). This places clear limits on the potential required to denote a policy paradigm shift:
terrain which devolution might cover.
More broadly, the nature of powers devolved has been . First-order changes – quantitative changes in rates/levels
constrained, and some powers have been centralized of instruments of policy (instrument settings) but instru-
while simultaneously others have been devolved (Bailey ments and goals remain the same.

REGIONAL STUDIES
438 Paul Sissons et al.

. Second-order changes – changes in policy instruments London). The cases were also selected for mostly being at
but not overall goals or the hierarchy of goals. the vanguard of devolution, being amongst the first wave
. Paradigm shift – radical shift in instrument settings; of City Deals and moving furthest and fastest with their
instruments and the hierarchy of policy goals. devolution agreements. The agreement of devolution
deals has been associated with changing governance struc-
We return to this framework subsequently in assessing the tures of ‘core’ cities and their hinterlands, particularly
relationship between devolution and inclusive growth. through the creation of mechanisms for cooperation across
neighbouring local authorities in a wider city-region area.
METHODS AND CASE STUDY CITIES The cases selected are: the West Midlands Combined
Authority (including Birmingham – total population of
The findings presented here are based on an analysis of the 2,834,000); Greater Manchester (2,756,000); Liverpool
content of the published documentation of devolution City Region (1,525,000); Leeds City Region (3,048,000);
agreements between central government and individual Sheffield City Region (1,375,000); and the Tees Valley
cities. All the agreements are publically available and pro- (670,000).2 All have a substantial economic history of
vide details about the nature of approaches, powers and engineering/manufacturing and have been engaged in a
resources agreed, and contextual information about how long-term process of economic restructuring.
the agreement aims to build on existing local strengths The devolution agreements reviewed are detailed in
and meet local needs. The documents do not provide Table 1 (the references are provided in Appendix A in
details about the negotiations themselves which are con- the supplemental data online). All case studies except the
ducted privately between representatives from individual Tees Valley were in the first wave of devolution through
cities and civil servants negotiating on behalf of central City Deals. All had also agreed multiple iterations of
government. Growth Deals. Most had, at the time of analysis, moved
The analysis of devolution is focused on agreements from iterations of City Deals and Growth Deals to secure
covering six large English cities/city-regions agreed one or more fuller devolution agreements with central gov-
between 2012 and 2016 (although it should be noted ernment (details of these are provided in the subsequent
that the devolution process has continued thereafter); section). One case, Leeds, had not reached the point of a
with the main devolution agreements signed between main devolution agreement with central government,
2014 and 2016. This was also a period of growing policy whilst Manchester had agreed multiple iterations.
interest in inclusive growth in the UK, with the establish- The documents were reviewed using a template to
ment of an All-Party Parliamentary Group on Inclusive detail information about how cities had framed their overall
Growth (2014); high-profile OECD work on advocating approaches to economy and society, the content of the
inclusive growth (2015); the focus on inclusive growth in devolution agreements and how this aligned to particular
the Scottish government’s Economic Strategy (2015); policy domains, and the approaches and activities targeting
and the launch of the Inclusive Growth Commission employment within the agreements.
(2016). The rationale for selection of the cases was primar- Content analysis was also used to assess the prevalence
ily based on their population size, representing the bulk of of particular key terms within the text of documents. The
devolution to urban populations in England (outside aim of this was to get a measure of the extent to which

Table 1. Devolution agreements covered by the analysis.


City Devolution agreements

Greater Manchester City Deal (July 2012), Growth Deals (July 2014, January 2015, November 2016), devolution
agreements (November 2014, July 2015, November 2015, March 2016)
Birmingham/West Greater Birmingham and Solihull – City Deal (July 2012), Growth Deals (July 2014, January 2015,
Midlands November 2016)
Black Country – City Deal (February 2014), Growth Deals (July 2014, January 2015, November 2016)
Coventry and Warwickshire – City Deal (December 2013), Growth Deals (July 2014, January 2015,
November 2016)
West Midlands Combined Authority Devolution Agreement (November 2015)
Liverpool Liverpool City Region – City Deal (July 2012), Growth Deals (July 2014, January 2015, November 2016),
devolution agreements (November 2015, March 2016)
Leeds Leeds City Region – City Deal (July 2012), Growth Deals (July 2014, Jan 2015)
Sheffield Sheffield City Region – City Deal (July 2012), Growth Deals (July 2014, January 2015, November 2016),
devolution agreements (February 2015, October 2015)
Tees Valley Tees Valley City Region – City Deal (June 2014), Growth Deals (July 2014, January 2015, November
2016), devolution agreement (October 2015)

REGIONAL STUDIES
Inclusive growth in English cities: mainstreamed or sidelined? 439

economic and/or social development aims were embedded (including unionization), community benefit agreements
in those agreements. Key terms were developed to capture (such as those typically associated with large develop-
growth and elements of economic development, and to ments), or financial (taxation) incentives; or whether they
measure references to some of the major social challenges rely more on programmatic approaches such as sector-
which might be tackled as part of an inclusive growth focused programmes and/or intermediary organizations.
agenda. The search terms used were: Using the framework is an important innovation as across
most definitions of inclusive growth elements of job quality
.
are of central importance.
Inclusion/ive (social/economic)
. Social The analysis presented draws explicitly on documents
. Fair (society, outcomes) relating to City Deals, Growth Deals and devolution agree-
.
ments. We find that inclusive growth concerns tend to be
Low pay
. Unemployment peripheral in these. It should be noted that this does not
. Justice (social) necessarily mean that inclusive growth issues are absent
.
from cities’ thinking more broadly or that they do not fea-
Well-being
. ‘Good jobs’ ture more strongly in other policy/strategy documents;
. Growth although it does demonstrate such concerns have played a
.
limited role in the central planks of devolution.
Competitive/ness
. Profit
. Enterprise ASSESSING INCLUSIVE GROWTH
. Innovation/ive/ate CONCERNS IN CITY DEVOLUTION
. Technology/ical
. Productivity/ive Policy domains in devolution agreements
We start by setting-out the broad policy domains that con-
The search terms were counted across all devolution agree- stitute the focus of the main devolution agreements in the
ments for each city. They were not counted where they six case study cities (Table 3).3 The devolution agreement
were used as a proper noun, referring to, for example, the documents for all case studies explicitly identify the broad
Regional Growth Fund or Local Enterprise Partnership. policy domains of transport, housing and planning, skills,
For nouns such as ‘inclusion’ and ‘justice’ and the adjective and business support. Most include some form of employ-
‘fair’, the words were counted when they were specifically ment support. Half the agreements also include innovation
referencing the concepts specified in parentheses. and public service reform. A minority of agreements expli-
The information from devolution documents on citly identify investment funds, trade and exporting, energy
approaches to employment in the cities was then placed and environmental, and health policy.
into a ‘good jobs framework’, an approach first developed The transport policy domain in most agreements is pri-
by Osterman (2008) when analyzing employment policy marily concerned with road and rail infrastructure pro-
and practice in the United States (Table 2). The framework grammes to support economic growth. Housing and
allows for an assessment of the predominant approach planning largely involves proposals to unlock sites for
taken to improve the quality of local labour markets new housing and commercial development, often through
through the range of policy tools which are available to land and/or housing investment fund mechanisms. Across
stimulate change. Two axes are identified. The first dis- the agreements the devolution of ‘skills’ is relatively generic
tinguishes between approaches seeking to create more and involves the devolution of the national 19 plus adult
high-quality jobs (i.e., ‘create more good jobs’) versus skills programme and greater influence over post-16 edu-
those seeking to improve the existing stock of jobs in the cation, training and apprenticeships. The agreements
local labour market (i.e., ‘make bad jobs better’). The emphasize skills that meet local employer needs for growth
second axis identifies whether policy-makers seek to use (i.e., they aim to be ‘demand led’). The process of devolving
standard-setting mechanisms, such as wage floors (mini- business support is also relatively standardized, based on
mum and living wages) and other institutional mechanisms localizing the current national programme, and seeking

Table 2. The good jobs framework.


Standard setting Programmatic

Make bad jobs good Minimum wages Career ladders programmes


Living wages Labour market intermediaries
Unionization Sectoral programmes
Create more good jobs Community benefit agreements Extension services
Managed tax incentives Sectoral programmes
Consortia or partnerships under business or union auspices
Source: Osterman (2008).

REGIONAL STUDIES
440 Paul Sissons et al.

to align the national business growth service with local

services
Public
business support through local growth hubs. The focus is



on growth of start-ups, supporting growth sectors, increas-
ing exports and further promoting inward investment. The
Tees Valley Devolution Agreement is distinct in proposing
a (business support) programme as a response to unem-
environment
Energy and

ployment arising from industrial plant closures. Related


to employment support, Greater Manchester’s original


devolution agreement of November 2014 explicitly ident-
ifies ‘complex dependency’ as an area for action, involving
an expansion of their Working Well pilot to help tackle
long-term unemployment. However, such examples of
Health

locally developed initiatives are relatively rare across all


the devolution documents. Agreements identifying public


services are primarily about public service reform.
Trade and
exporting

How have cities framed devolution?



The way in which growth and economic development is


framed by cities and the extent to which this is linked to
aims of social improvements is important in considering
the nature of, and scope for, inclusive growth concerns.
Investment

From the policy domains and policy approaches adopted,


funds

it is clear that a growth narrative predominates across the


devolution arrangements. Within this overall framing, the


focus largely falls on ‘barriers to growth’. These barriers
are mainly ascribed to a combination of a need for physical
Innovation

development to address infrastructure issues around trans-


port and availability of business sites; improving skills supply

through a greater local influence over national programmes


for post-16 and 19+ adult skills provision and responding
to employer demand; and through business support to tackle
Employment

barriers to the growth of exports.


As well as these horizontal policies, particular economic

sectors are highlighted in devolution agreements as being


specific targets of policy. These tend to be high value-
Table 3. Coverage of the main devolution agreements across policy domains.

added sectors. The most prominent and strongly rep-


resented economic sector across all the devolution cases is
Business
support

advanced manufacturing (or ‘high value’ manufacturing).




This is followed by the energy sector (Leeds, Tees Valley,


Sheffield, Liverpool, Birmingham/West Midlands),
encapsulating ‘low-carbon’ energy generation and inno-
Skills

vations, carbon storage, and oil and gas refinement.






There is also some emphasis on life sciences and financial


and professional services (Birmingham/West Midlands
Housing and
planning

and Leeds in both cases).


There is some limited evidence of a secondary framing


around social concerns. Youth unemployment is one theme


where several devolution agreements develop some form of
intervention. The emphasis and aspirations are stronger in
Transport

some cities than others, being most notable in Leeds City


Region City Deal with the aspiration to be a ‘NEET





Note: aRefers to the City Deal.

free’ city.4 Critically there is little emphasis on how the


economic and social elements of devolution are, or could
Birmingham/West

be, linked together. Economic development approaches


and interventions tend to be treated discretely from those
Manchester

parts of the agreements which focus on tackling


Tees Valley
Midlands
Liverpool

Sheffield

unemployment.
Leedsa

There is some evidence of a gradual shift towards


greater emphasis on social development through the

REGIONAL STUDIES
Inclusive growth in English cities: mainstreamed or sidelined? 441

Figure 1. Referencing of selected economic and social terms in devolution agreement documents.
Note: The y-axis represents the number of counts of specific terms across the documents analyzed. The number of counts varies by
city and the individual graphs are scaled differently in order to facilitate comparison between cities.
Source: Authors’ analysis of devolution agreements (City Deals, Growth Deals and devolution agreements).

iterations of devolution agreements, as exemplified by content of the documents. The results are presented separ-
Greater Birmingham. The Greater Birmingham City ately for each of the case study cities. The words were
Deal was strongly focused on growth in advanced manufac- selected to capture both economic and social elements of
turing (and some other high-value growth sectors). The the devolution agreements and to help assess the balance
language is upbeat and boosterish. This upbeat message between these. The reported results are a subset of the
carries forward to the later devolution agreement (including terms listed in the fourth section. These are representative
the wider combined authority), with this agreement com- of the full search, with a limited number reported for ease of
ing at a ‘moment of great economic potential … [with presentation. The term ‘growth’ is referenced almost 200
the] opportunity to deliver significant additional economic times across the various devolution documents agreed
growth and job creation’ (HM Treasury, & West Midland with areas covered by the West Midlands Combined Auth-
Combined Authority (WMCA), 2015, p. 4). This time, ority. The term similarly dominates the word counts across
however, the document also acknowledges ‘the economic the other cities: referenced 97 times by Sheffield and 90
and social challenges the region faces’ (p. 4). There is times by Manchester. Drivers or facilitators of growth
further mention of ‘improving outcomes for individuals such as innovation and technology are present but less fre-
with multiple indicators of vulnerability (unemployment, quently referenced.
offending, substance misuse, poor mental health and By contrast there is much less emphasis on the social
homelessness)’ (p. 14), but little reference to the solutions side. There is some concern with unemployment, refer-
to these social challenges and how devolution might con- enced on average 11 times across cities. There are no
tribute to this. specific mentions in the documents analyzed of low pay
Figure 1 presents findings from an analysis of document or associated issues. This is surprising given the ongoing
texts to provide evidence of the balance between economic national debate about low pay, the link between low pay
and social concerns within devolution agreements (cover- and poverty, and the erosion in the value of real wages
ing City Deals, Growth Deals and devolution agreements). since the 2007/08 recession. Similarly the term ‘inclusion’
This is a simple but insightful way of summarizing the is only mentioned four times across the documents from

REGIONAL STUDIES
442 Paul Sissons et al.

the six cities. In short, inclusionary concerns and issues of jobs. Hence, the entire emphasis of devolution as it relates
major social importance in recent years around pay and to employment quality appears orientated towards ‘pro-
poverty are largely ignored in devolution. grammatic’ approaches to ‘creating more good jobs’. The
This is a basic analysis of the balance between economic primary focus revolves around investment in physical sites
and social concerns based on key words. However, it is combined with some emphasis on skills supply. In Greater
instructive in how large the gaps are between economic, Birmingham the approach is geared around the develop-
particularly growth, and social concerns. The analysis pro- ment of existing strengths in advanced manufacturing
vides ample evidence of the dominant growth narrative and development of green jobs. In Liverpool there is an
within the discourse of devolution. It suggests that rather emphasis on science and developing the Knowledge Quar-
than challenging the existing economic development ter. Sheffield has a greater focus on local skills supply tied to
model and the inequalities it (re)produces, devolution has particular subsectors (glass production and high-speed rail)
focused primarily on barriers to growth and the pursuit of as well as an economic development focus on advanced
growth, rather than taking inclusion and broader social manufacturing and nuclear research. Tees Valley identifies
welfare as a point of departure. oil and gas as well as wider advanced manufacturing and
logistics. Leeds City Region is perhaps less sectorally
Devolution and ‘good jobs’ focused, although it does have an emphasis on biotechnol-
The nature of devolution agreements can also be assessed ogy and low-carbon jobs. Greater Manchester identifies a
through the extent to which they focus on the quality of range of sectors including advanced manufacturing,
employment, a critical element in an inclusive growth business services, biotech and pharmaceuticals. In all the
agenda. Here Osterman’s framework is used as a way of cities the approaches taken can be viewed as programmatic
assigning measures in devolution agreements according to in that none seeks to provide any systemic change linked to
the extent to which they target new growth of high quality some form of minimum thresholds. Yet, all six case study
jobs or the extent to which they seek to improve the stock of city-regions have large low-wage labour markets that
existing jobs, and whether they take a standard setting or remain outwith the devolution conversation as captured
programmatic approach. Table 4 reports this analysis, in the documents analyzed.
demonstrating a complete dominance of approaches In part the emphasis on programmatic interventions
seeking to grow good jobs rather than improve existing reflects how individual cities are constrained in their ability

Table 4. Applying the good jobs framework to devolution agreements.

Standard
setting Programmatic
Make bad jobs
good
Create more Investments in sites, skills equipment for advanced manufacturing and other high-value
good jobs activities (Birmingham and West Midlands)
Green Deal Accelerator to improve energy efficiency and generate green jobs
(Birmingham)
Harnessing science and knowledge assets – including at Daresbury and Liverpool
Knowledge Quarter (Liverpool)
Investment in skills infrastructure – including in further education, the British Glass
Academy, National College for High Speed Rail at Doncaster, Skills Bank, improving links
with business (Sheffield)
Centre for Procurement based around Advanced Manufacturing and Nuclear Research
Centres (Sheffield)
Jobs growth target linked to economic improvement and some targeted activities in
biotech and low carbon (Leeds City)
Focus on industrial/commercial sites for high-value growth sectors (advanced
manufacturing, low carbon, oil and gas, digital and logistics), e.g., Materials Processing
Institute, Teeside Advanced Manufacturing Park, Redcar and Cleveland Oil and Gas
Academy (Tees Valley)
Job creation in life sciences sector, science and technology, and low carbon. ‘Airport City
EZ’ focusing on advanced manufacturing/engineering/aerospace, business services,
healthcare, industrial biotechnology, pharmaceuticals (Greater Manchester)
Source: Authors’ analysis of devolution agreements.

REGIONAL STUDIES
Inclusive growth in English cities: mainstreamed or sidelined? 443

to influence policy in important areas of standard setting of the national context in framing prospects for inclusive
linked to broader job quality concerns. Core policy areas growth in cities.
such as national minimum wages are not in their influence There are, however, other factors that may also offer a
and are set nationally. Notwithstanding this, the complete partial explanation for the lack of emphasis on policies
absence of (softer) standard setting measures and any pro- seeking to engender inclusive growth. There may be a grav-
grammatic focus on the large bulk of low-paid employment itation towards the status quo in economic development
in these areas is clearly problematic when trying to relate policy from negotiators on the cities’ side as well. This
policy and practice under devolution with a focus on inclus- could stem from risk aversion, or lack of capacity and exper-
ive growth. There are some programmatic approaches tise to devise alternative approaches. Given the complex
relating to employment entry (tackling unemployment), nature of defining inclusive growth, potential policy
but increasingly the UK’s poverty problem is associated trade-offs, and the entrenchment of the historical focus
with in-work poverty and poor-quality work rather than on growth per se as the primary target, formulating
high rates of joblessness (Lee, Green, & Sissons, 2017). informed and nuanced policy for inclusive growth is clearly
Devolution up to this point does not provide a direction more challenging than defaulting to existing approaches.
for beginning to address this issue. There may also be a lag between, on the one hand, the
The sectors targeted are of particular interest, being increases in the profile of inclusive growth, both in the
heavily concentrated in relatively narrow higher value- UK and internationally, given the ‘high-level’ insights of
added activities. This type of narrow sectoral targeting organizations driving this debate, and, on the other, the
has been criticized for missing much productive capacity permeation of inclusive growth concerns into local and
and concentrating the potential gains from growth on a city-level policies and practices.
narrow section of the population (Fothergill et al., 2017;
Mayhew & Keep, 2014; Sissons & Jones, 2016). Any CONCLUSIONS AND POLICY
focus that the devolution agreements have on job-quality IMPLICATIONS
improvement links solely to the creation of new jobs;
there is no emphasis across the agreements of any engage- Inclusive growth is a concept that is increasingly presented
ment of policy with the bulk of the (low-paid) labour mar- as a means of more fully linking economic and social pro-
ket. This reading of the devolution agreements finds them gress. There is a growing interest in the parameters of
to be narrowly preoccupied with growth generation in inclusive growth internationally. Yet, the concept itself is
specific sectors which are, for the most part, relatively fuzzy. This paper has addressed inclusive growth in subna-
small in employment terms. This narrow sectoral focus, tional policy-making through novel analysis of the content
combined with the emphasis on the creation of new jobs, of new devolution agreements in England.
neglects a large proportion of the labour market, and one The UK has historically had a highly centralized
which is critical for inclusive growth concerns – individuals approach to policy-making. Since 2010 there has been a
who are in employment but in jobs that are insecure, poorly process of incremental devolution of new powers primarily
paid and offer few opportunities for development. The use to urban areas. This includes powers in policy domains that
of Osterman’s framework therefore suggests that the are relevant to more inclusive growth outcomes. Devolu-
approach to employment taken in devolution agreements tion therefore potentially opens up opportunities for cities
is distinctly unbalanced. to modify national policy to prioritize inclusion and social
development. This paper has assessed whether inclusive
Explaining the marginality of inclusive growth growth concerns have informed policy and practice in
concerns devolution in selected English cities. This is a societally
The analysis has demonstrated the limited nature of inclus- important question.
ive growth concerns in devolution agreements, but what The devolution process has been fragmented and has
explains this? In a sense, the marginalization of inclusive moved at differential speeds across the case-study cities.
growth reflects the inherent imbalance in the particular Manchester moved quickly from City Deals to several iter-
approach to devolution adopted in England. The deal- ations of devolution agreements; while progress towards
making method is fundamentally asymmetrical in terms further devolution elsewhere was slower. Notwithstanding
of power relations, with boundaries and resources con- the differential pace, there is considerable commonality
trolled by central government (Etherington & Jones, around the policy domains which cities have targeted and
2016; Tomaney, 2016). Furthermore, in the context of the nature of changes which cities are targeting. The framing
an extended period of fiscal austerity, devolution has really of the agreements across the cities also has obvious common-
been the only means through which cities can seek to secure alities around the focus on growth and addressing barriers to
some additional (limited) financial resources. Within this growth, and in the targeting of particular priority sectors.
context, it is unsurprising that the content of devolution Conceptual framings of inclusive growth have high-
agreements largely mirrors the priorities of the Conserva- lighted the distinction between greater equality of opportu-
tive central government and reproduces the orientation of nity and greater equality of outcomes (Turok, 2010). There
national policy. This appears an important constraint on is little evidence within devolution settlements of signifi-
locally determined policies, practices and investment for cant consideration of these. Where there is some focus
more inclusive outcomes, and highlights the central role on opportunities these tend to be around labour market

REGIONAL STUDIES
444 Paul Sissons et al.

entry, particularly youth employment/unemployment. The factors that shape the way of devolution has been
approaches here are piecemeal and only weakly integrated approached in England. The partners in ‘deal-making’ in
with the core focus of growth within the agreements. devolution come from very different positions of power,
There is no real emphasis across the devolution agreements with central government dictating the terms under which
of policy or practice seeking to influence equity around out- agreements can be negotiated (Ayers, Flinders, et al.,
comes. Other authors have identified a distinction between 2017; Etherington & Jones, 2016; Tomaney, 2016).
a ‘Growth Plus’ approach that prioritizes growth but also Under these conditions, approaches taken to economic
seeks to widen the pool of opportunities locally, and an development in devolution agreements have tended to mir-
‘inclusive economy’ approach that seeks to shape economic ror the priorities and practices of national government,
and social development towards more inclusive outcomes where little emphasis has been placed on inclusive growth.
rather than mitigate inequalities post hoc (Lupton & The precise nature of boundary drawing and negotiability
Hughes, 2016). The present analysis provides some, in devolution agreements is an important area for further
although relatively weak, evidence of a ‘Growth Plus’ research.
approach which is focused primarily on supply-side inter- Reflecting on Hall’s (1993) seminal work on policy
ventions; but scant evidence that wider ‘inclusive economy’ paradigms, the present analysis uncovers only minor policy
thinking has permeated the devolution agenda. changes associated with devolution and the nature of econ-
Osterman’s good jobs framework allows for an analysis of omic development policy. The overall goals of policy, the
the potential reach of a local employment and economic hierarchy of policy goals (which are critical to signifying a
development approach, including influencing the demand shift towards inclusive growth) and the dominant framing
side of the labour market. The analysis presented here within the national growth model remain largely unaltered.
suggests that the approaches to employment and job quality There have been modest changes in the levels of policy
in devolution agreements are quite unbalanced, with a dom- instruments as local areas take on greater responsibility
inance of approaches seeking to grow good jobs but much less for policy development in some areas, but this is combined
engagement with approaches to improve existing jobs. with significant constraints on resources. In addition, the
Extending this to look at types of jobs it is clear that the nature of policy instruments has retained a large degree
experience of city devolution is premised almost entirely on of consistency with established national approaches.
seeking to generate the growth of employment in predomi- This analysis does not imply that cities are not doing
nantly high-value sectors. This primary focus on a relatively anything around inclusive growth. Many cities have in
small number of high-value sectors can also be seen in the recent years held ‘fairness commissions’ and developed
wider national approach to industrial strategy (HM Govern- local approaches aimed at greater equity (e.g., through
ment, 2017). There is a striking lack of engagement with low- local living wage campaigns). Cities have also focused on
pay sectors that constitute a large proportion of employment issues such as weak employment prospects and household
across the case study cities. Given the concerns around low poverty, for example, through the use of European Social
pay, in-work poverty and wider job quality in the UK, it is per- Fund monies (Green, Sissons, Ray, & Hughes, 2016).
haps surprising that these issues are almost entirely absent There is also some evidence that inclusive growth concerns
from devolution priorities. Of course, cities do lack many of may play a stronger role in other local documents, such as
the powerful standard setting powers which can improve strategic economic plans produced by local enterprise part-
the quality of work (such as statutory minimum wages), but nerships (Crisp & Lupton, 2017). However, this paper
there are a range of potential programmatic approaches that demonstrates that inclusive growth concerns do not appear
can be developed to improve work quality which are also to have been a priority of the early stages of devolution.
absent from devolution agreements. This is significant as devolution is presented as an opportu-
Authors have stressed the durability of the UK growth nity for cities to frame their own development, set their
model and policy-makers’ attachment to its fundamentals own priorities and influence the alignment of resources.
even during periods of crisis (Cowling & Tomlinson, As this analysis has shown, however, in practice the priori-
2011; Hodson & Mabbett, 2009). We observe this dura- ties and approaches that have been agreed have largely
bility through devolution, which has done little to challenge reproduced national policy orientations, with little empha-
existing inequalities. Analysis from the UK and elsewhere sis on inclusive growth.
suggests that growth is not necessarily strongly linked There are a number of research gaps identified by the
with better outcomes for low-paid workers, and that con- evidence we present. The nature of the negotiations
text matters (Lee & Sissons, 2016; Mishel, Bernstein, & between cities and central government and the process of
Shierhol, 2009). Yet, inclusive growth concerns appear to boundary drawing and negotiability is not well understood
be largely sidelined in the devolution processes as a narra- (for an exception see Ayers, Sandford, et al., 2017). As trust
tive of growth (and assumption of trickle-down) prevails. and working relationships are established between local and
For inclusive growth to move beyond aspiration, political national actors, it may be the case that cities are able to
will and action are needed to address longstanding social focus more on social development and inclusive growth
problems; these are conspicuous by their absence in early and to mainstream these aims; this is an important area
iterations of devolution to English cities. for ongoing research. Similarly, as policy influencers, such
The limited nature of inclusive growth concerns in as think tanks, charities and societies, in the UK and inter-
devolution agreements in part reflects in-built design nationally, increasingly promote the concept of inclusive

REGIONAL STUDIES
Inclusive growth in English cities: mainstreamed or sidelined? 445

growth this may also encourage a greater permeation of Ayers, S., Sandford, M., & Coombes, T. (2017a). Policy-making
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1. Although there is some tentative evidence that inclus- Geography, 13(6), 889–928. doi:10.1093/jeg/lbt003
Green, A., Froy, F., Sissons, P., & Kispeter, E. (2017). How do cities
ive growth is starting to enter the lexicon, it was mentioned lead an inclusive growth agenda? International experiences. York:
(once) by the Chancellor of the Exchequer, Philip Ham- Joseph Rowntree Foundation.
mond, in his Spring Budget Speech (2017) (https://www. Green, A. E., Sissons, P., Ray, K., & Hughes, C. (2016) Improving
gov.uk/government/speeches/spring-budget-2017-philip- progression for low-paid jobs at city-region level. York: Joseph
hammonds-speech). Rowntree Foundation.
2. See https://www.ons.gov.uk/peoplepopulationandco Hall, P. A. (1993). Policy paradigms, social learning, and the state:
mmunity/populationandmigration/populationestimates/ar The case of economic policymaking in Britain. Comparative
Politics, 25(3), 275–296. doi:10.2307/422246
ticles/populationdynamicsofukcityregionssincemid2011 Hildreth, P., & Bailey, D. (2013). The economics behind the move to
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the iterations of City Deals and Growth Deals. For HM Government. (2017). Industrial strategy: Building a Britain fit for
Leeds, which does not have a devolution agreement, the the future. London: HM Government.
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Anne E. Green htpp://orcid.org/0000-0003-1583-4967 2009.02034.x
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