Joint council effort to save Berkshire’s economy is not a return to the old county council
Local councils in Berkshire are to join forces to stop economic decline in the county.
But West Berkshire Council has stressed this does not mean the reforming of the old county council.
It wants “a stronger, collective voice” in lobbying Government and other agencies.
Although it does say forming a Berkshire Property Board to “advantageously position Berkshire in readiness for potential devolution proposals to benefit from additional responsibilities and funding opportunities”.
The board will include the six Berkshire authorities of Reading, Wokingham, West Berkshire, Windsor and Maidenhead, Slough and Bracknell Forest.
The focus will be the local economy, including, health and inequalities, education and skills, affordable housing, sector development, strategic infrastructure, and net zero.
Each authority has to cough up around 30k each to fund it.
“This gives us strength in numbers…we do share historic connections so this will be to the advantage of the 900,000 Berkshire residents,” said Louise Sturgess (Lib Dem, Newbury Central), executive portfolio holder for economy and regeneration.
“This is working to a shared vision and having a stronger collective voice.”
It will be a decision-making body, but decisions will be formally approved by each authority’s internal decision-making processes.
Berkshire leaders have recognised that although the Berkshire economy is comparatively strong it faces several threats and has been experiencing declining productivity for several years.
Initial discussions explored the option of a devolution deal with Government and how Berkshire might benefit from the financial and decision-making powers a deal might bring.
But early in the process it was recognised that Berkshire’s chance of securing a significant devolution deal was limited.
A report to West Berkshire’s full council says Berkshire is disadvantaged by both the Government’s levelling up agenda and because of priority being given to local authority areas with a directly elected mayor.
The latter being something that Berkshire leaders did not wish to pursue.
It was acknowledged that by working together Berkshire authorities can benefit from greater scale, and with that, more influence and greater ability to develop solutions through collaboration.
The report claims that to date Berkshire is an economic success story – no other region in the UK has played a bigger role in driving the UK economy in recent decades.
"As the UK’s Silicon Valley, nowhere has the potential to add more value to UK plc,” it says. “We have three diverse sub-regional economies and strengths in growth sectors of the future, innovative and international businesses, a highly skilled workforce, and are well connected to London and other highly productive markets.
“Since 2008, our economy has experienced a financial crisis, the Covid-19 pandemic, and the impacts of the war in Ukraine and the Israel-Hamas war.
“We are facing economic headwinds linked to changing trading relationships with Europe, labour market shortages and high inflation.
“Furthermore, as a region, we are disadvantaged when competing for Government’s levelling up investment programme.
“We therefore cannot be complacent – our economy is mature, but growth is slower than in the past, and we are moving into a period of further economic uncertainty.”
Despite Berkshire's overall economic success, communities in West Berkshire face significant challenges.
Wage growth lags behind inflation, leading to financial constraints, and deteriorating health outcomes are evident; West Berkshire’s health index value for “economic and working conditions” has fallen from 119.2 in 2015 to 116.0 in 2021.
Housing affordability remains a major issue, with median house prices 10.5 times higher than median earnings, impacting the recruitment and retention of skilled individuals.
“These complex challenges underscore the need for a comprehensive approach to address issues related to wages, living costs, health outcomes, economic inactivity, and housing constraints in West Berkshire,” says the report.
“The Berkshire economy is mature, but the strains of growth are showing. Many of the companies headquartered in Berkshire face re-investment decisions post Covid-19 and Brexit.
“It is clear that some of them are not as committed to a future in the UK as the six unitary councils would want.
“There are many opportunities with growing industries such as the film industry in and around Reading University and Bray, but the need to act to secure Berkshire’s long-term future is clearly evident.”
The other authorities in Berkshire are expected to rubber stamp the board, which will sit from April.