Lancashire snubbed for Investment Zone status amid warning that the county is missing out because of devolution delay

Lancashire has lost out on all three of its bids to be declared a government “Investment Zone”.
County Cllrs Aidy Riggott, cabinet member for economic development and growth, and Azhar Ali, Labour opposition group leaderCounty Cllrs Aidy Riggott, cabinet member for economic development and growth, and Azhar Ali, Labour opposition group leader
County Cllrs Aidy Riggott, cabinet member for economic development and growth, and Azhar Ali, Labour opposition group leader

None of the trio of submissions made by Lancashire County Council, Blackpool Council and Blackburn with Darwen Council made the final cut for further discussions with the Treasury.

The eight locations now in line for the special status - as announced in this week's budget - include Lancashire’s neighbours in Greater Manchester, West Yorkshire and the Liverpool City Region. They, like all of the places selected, are governed by combined authorities with an elected mayor.

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Lancashire County Council’s Labour opposition group leader, Azhar Ali, says that fact demonstrates that there is a “desperate need” for Lancashire to secure a devolution deal so that it does not miss out on money being funnelled to other parts of the country which already have one.

Lancashire County Council, along with its fellow top-tier authorities in Blackpool and Blackburn with Darwen, failed to persuade the government of the case for a local Investment ZoneLancashire County Council, along with its fellow top-tier authorities in Blackpool and Blackburn with Darwen, failed to persuade the government of the case for a local Investment Zone
Lancashire County Council, along with its fellow top-tier authorities in Blackpool and Blackburn with Darwen, failed to persuade the government of the case for a local Investment Zone

Those areas that are ultimately declared investment zones will benefit from £80m of government support over five years - split between cash and tax incentives. The concept is designed to promote clusters of economic growth, in places in need of levelling up, across five key sectors - digital and tech, green industries, life sciences, advanced manufacturing and creative industries.

The county council’s pitch had proposed creating three “enterprise corridors” - one running north-south from Heysham, down through Preston and into West Lancashire; another stretching from Salmlesbury eastwards into Burnley, Hyndburn and Pendle; and a final cluster for the Fylde coast.

Meanwhile, Blackpool Council’s pitch involved focusing on the centre of the town - incorporating development sites that are either currently under way or due to begin - and an area centred around, but broader than, the existing Blackpool Enterprise Zone in an attempt to extend the benefits already available in that location.

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For its submission, Blackburn with Darwen Council had proposed building on the investment secured as part of the Blackburn Growth Axis and Darwen Town Deal.

County Hall’s cabinet member for economic development and growth, Aidy Riggott, said that the authority’s “initial Investment Zone proposal to government was strong and demonstrated the county's commitment to working in partnership to deliver our joint ambitions and to drive forward economic growth at pace”.

He added: "The collaborative insight that was gained through the work for our expression of interest is already informing the delivery of our emerging pan-Lancashire Growth Plan – Lancashire 2050.

"We will now assess the government's revised scope and criteria for Investment Zones to identify opportunities for Lancashire that support our economic strategy and low carbon ambitions as well as enhancing our rich natural environment."

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The Treasury and the Department for Levelling Up, Housing and Communities have said that the list of areas being considered as Investment Zones will be “kept under review with a view to adding other places to it where they have clear potential” to meet the criteria.

Inclusion on that list was determined by government assessment of the strengths of the specialist sectors already operating in a local area, in acknowledgement of the fact that growth clusters cannot be created "from scratch". The presence of a research-intensive "knowledge anchor" - like a university - and the strength of local leadership were also considerations.

However, County Coun Ali said that it was obvious that Lancashire was being left behind simply as a result of not yet having devolved powers.

“We need a deal on a par with Greater Mancheter and Merseyside - not a third-rate one. So it’s about time the political leadership of Lancashire County Council wrote to the government asking for an elected mayor and a combined authority - and local government reorganisation, if that’s what it takes for us to be in the fast lane for a devolution deal.

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“We’re missing out on billions of pounds and thousands of well-paid jobs because of turkeys not wanting to vote for Christmas,” County Coun Ali said.

Local government reorganisation - the process of simplifying the council map and reducing the overall number of local authorities in the county to as few as three - have dogged attempts at securing Lancashire devolution in the eight years since they began.

That prospect has been a source of often vehement local disagreement, as has the possibility of creating an extra layer of governance in the form of a combined authority for the county - and whether that body should be led by an elected mayor. All three sticking points have been intermittent government requirements for entering into devolution discussions with local areas down the years, but in 2021, the then Prime Minister, Boris Johnston, announced that bespoke “county deals” would be put on the table - in an offer seemingly designed to enable devolution in areas like Lancashire which were reluctant about some of the trappings that come with it.

Last year, all 15 Lancashire councils agreed the basis on which to pursue that tailored option and, in November, launched the “Lancashire 2050“ framework - a vision of how to make the county a better place to live, work and prosper - at a prestigious event in Parliament which was seen as an attempt also to hasten progress down the path to devolution.

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In the government’s Levelling Up White paper, published in February 2022, Lancashire was not amongst the nine areas listed as being next in line for devolution talks.

Blackpool Council did not respond to a request for comment about its failed investment zone proposal.

White it, too, missed out on investment zone status, it was announced on budget day that Blackburn with Darwen Council would receive a second £20m tranche of levelling up funding to develop a “skills and education campus of national significance”.

The authority was handed the same amount in January for improvements to junction 5 of the M65 and transport links in the surrounding area.