ARO letter to Chirs Wormald (DG for Local Givernment and Regeneration at CLG) is now attached. The letter outlines our stance on SNR evidence and proposes further dialogue with ARO and its members.
comments in red from Jon
The Association of Regional Observatories ran a workshop in early June 2008, to consider the evidential implications of implementing the Review of Sub-national Economic Development and Regeneration. The workshop was attended by 70 delegates from a range of national, regional and local agencies, and focused on the demands of developing an evidence base to underpin a single integrated regional strategy, alongside the proposal to introduce a duty to undertake a local economic assessment, which would inform that single evidence base.
The workshop explored a number of issues around the need for a single evidence base to encompass a broader range of information, for it to be seen as independent and credible, and to ensure that the capacity exists to deliver it. Additionally, delegates explored the ways in which a local economic assessment could or should feed into that evidence base, and associated questions of content and capacity.
Outlined below are the key principles identified by attendees, along with a fuller explanation of the principle and the role that ARO and its members suggest they may be able to play to implement the suggestions made.
Key principles
- Policy decisions should be underpinned by a robust evidential base.
2. A clear vision for the future of an area (locality, city-region, sub-region or region) should be based on an understanding of the direction of travel, trends and projections.
3. The evidence base underlying the single integrated regional strategy should include a breadth of content whilst retaining a clear, accessible focus.
4. The regional and local evidence base should be accompanied by a narrative and context for the area in question.
5. Robust data at appropriate spatial levels should be made available.
6. Greater use should be made of qualitative data in developing the single evidence base.
7. Monitoring and evaluation of programmes and policies should receive increased priority.
8. Expertise and capacity to deliver on SNR should be understood, retained and developed.
9. The importance of joint approaches, collaborative work and consensus must be underlined and supported.
1. Policy decisions should be underpinned by a robust evidential base.
The Association of Regional Observatories and its members retain a commitment to the need for policy decisions to be based on robust and defensible evidence. This need for evidence-based policy-making is one that regional observatories have striven to fulfil during the years since their inception, and in that time observatories have demonstrated the value of a dedicated, independent resource existing to meet research needs at regional level. ARO and its members argue that to meet this continued need, and the new challenges resulting from the implementation of the Sub-national Review, recognition should be given to the valuable role that observatories have played thus far, and the contribution that they can continue to make.
2. A clear vision for the future of an area (locality, city-region, sub-region or region) should be based on an understanding of the direction of travel, trends and projections.
A number of regions have already undertaken significant research work examining future scenarios, identifying trends and making projections about possible future developments. This kind of work is valuable as it enables policy-makers (and the public) to more fully envisage the implications of a variety of policy options. Policy-makers are thereby able to substantiate policy suggestions by referring to a desired end-point. Futures work also allows the exploration of options based on a number of factors, encouraging a more nuanced understanding of the complex ways in which drivers interact. ARO argues that this work should continue to be valued and adequately resourced in order to ensure its continuation, and that it is important that all partners believe that such work is carried out free from organisational or political constraints.
In addition, ARO suggests that the Association and its members may have a role in assisting others to identify the most appropriate or successful model or approach to futures work, and argues that it would be of benefit to resource this role in order to spread best practice and realise economies of scale.
3. The evidence base underlying the single integrated regional strategy should include a breadth of content whilst retaining a clear, accessible focus.
The evidence base to underpin the single integrated regional strategy will be based on the foundations previously laid in the development of research and analytical thinking for the Regional Economic and Regional Spatial Strategies. Much of the challenge of producing an evidence base for a regional strategy lies in fully integrating the existing materials, to ensure that a coherent and comprehensive picture is produced. Additionally, the evidence base will need to include information on a number of new or developing areas, also ensuring that this is fully integrated; an example of this would be the increasing importance of the impact of climate change, and enabling an understanding of climate change’s impacts to be demonstrated throughout the evidence base. The list below provides a guide to the key areas which ARO suggests should be central to the evidence base in every English region:
<!--[if !supportLists]-->1. Demography- population structure, change and projections<!--[endif]-->
<!--[if !supportLists]-->2. Housing- nature of stock, affordability, projections, past/current delivery<!--[endif]-->
<!--[if !supportLists]-->3. Economy- drivers of productivity, industrial structure, economic forecasts<!--[endif]-->
<!--[if !supportLists]-->4. Labour Market- participation, demand for and supply of skills<!--[endif]-->
<!--[if !supportLists]-->5. Economic inclusion- deprivation, equalities, barriers to participation<!--[endif]-->
<!--[if !supportLists]-->6. Transport- congestion, freight, public transport use, connectivity<!--[endif]-->
<!--[if !supportLists]-->7. Infrastructure- construction, property, employment land<!--[endif]-->
<!--[if !supportLists]-->8. Environment- emissions, waste, energy, biodiversity, climate change, water use, minerals<!--[endif]-->
<!--[if !supportLists]-->9. Social and quality of life issues- education, health, culture, impact of globalisation<!--[endif]-->
The focus of the evidence base should remain on underpinning the single integrated regional strategy; however, the proposals outlined in SNR, of greater collaboration between regional and local levels, will also need to be reflected in the development of the evidence base. Clear consideration should be given to the ways in which the new data which may be locally gathered (such as the local economic assessment duty) can be integrated into the evidence base. The regional evidence base will need to result from a shared approach by regional, sub-regional and local partners, and will need to be robust, independent, credible and able with withstand the scrutiny of an Examination in Public.
4. The regional and local evidence base should be accompanied by a narrative and context for the area in question.
The members of ARO propose that, when data and research is provided to support policy-makers, it should be accompanied by a narrative and context which is appropriate to the end-user, making a potentially wide-ranging and disparate evidence accessible and usable by its intended audience. For a policy audience, data must be interpreted, analysed and presented in such a way as to ensure that it can be understood, and it is utilised in agreeing priorities for action, as well as being integrated into thinking and development of policy. ARO’s members recognise the importance of this role and suggest that regional observatories are able to demonstrate considerable expertise in this area; an example being the ‘State of the Region’ reports undertaken by many regional observatories. These provide key data on the region, but also analyse potential future trends and highlight issues for further exploration by policy-makers.
There is a need for public sector professionals to be able to synthesise data (qualitative and quantitative) from a wide range of sources, interpret, and draw conclusions that are relevant to policy. This is a skill which more individuals may need to gain.
5. Robust data at appropriate spatial levels should be made available.
The Allsopp Review of Statistics for Economic Policymaking (2004) brought about a number of positive changes to improve the provision of statistical data at regional level. However, regional and local data-users continue to experience a number of issues regarding data accessibility and quality, across a variety of topics.
In some cases, data exists (in central or local government) that could be critical to gaining a more comprehensive understanding of the region or locality. In these instances, ARO and its members would like to see efforts being made to resolve any remaining issues of access. The recent Statistics and Registration Services Act (2007) may provide some additional tools to assist with this resolution.
In other cases, data may not exist, or may not be usable at the spatial levels required. In these cases, the Association and its members would like to see a commitment to further investment in these areas. ARO recognises that the Office for National Statistics has already made investments in a number of areas, and supports the principle that ONS must be adequately resourced to enable it to fulfil the demands of its users.
6. Greater use should be made of locally generated, and qualitative, data in developing the single evidence base.
Sitting alongside the commitment to a need for robust data, and for an understanding of projections and trends, is the need for an increased use, and understanding, of data generated locally by quantitative or qualitative means. This might include data from local administrative sources, survey data, or attitudinal data from focus groups or similar. In order to address the broader issues encompassed by a single integrated regional strategy, ‘softer’ data will need to be employed. ARO and its members propose that central government must recognise the value which such information can add, and accept that this data will form a legitimate part of the single evidence base.
7. Monitoring and evaluation of programmes and policies should receive increased priority.
In common with the challenges associated with integrating existing evidence for the Regional Economic and Regional Spatial Strategies, a challenge exists to integrate the differing approaches to monitoring and evaluation previously undertaken as part of those strategies. ARO proposes that existing best practice in this area be explored and used to inform any guidance that may be issued on approaches to monitoring the single integrated regional strategy. Additionally, the Association and its members suggest that the importance of monitoring and evaluation of policies and programmes be reiterated, ensuring that these key processes are planned and budgeted for at the earliest stages of development and that are far as possible they are, and are perceived to be, regarded as independent.
8. Expertise and capacity to deliver on SNR should be understood, retained and developed.
Questions have been raised as to whether the analytical capacity to deliver SNR exists, at regional, sub-regional and local levels. In some areas, sufficient capacity exists while in others, further development, recruitment or redirection of resources will be necessary. In order to support this process, a fuller understanding of current capacity must be gained, and ARO suggests that work be undertaken with appropriate national, regional and local partners in order to facilitate this, and to gain an independent perspective on the availability of capacity, and how existing capacity across a range of organisations in a region might best be deployed.
ARO suggests that, in places where the expertise is spread through a number of organisations and agencies, consideration should be given to how best to support the sharing of such capacity, in order to facilitate successful partnership working, and also to achieve economies of scale. In addition, regional agencies such as the Regional Development Agencies and regional observatories will need to ensure that investment is made to secure appropriate expertise to develop the regional strategy and its evidence base; this will include investment to ensure that the interrelated nature of the new strategy and evidence base is embedded within the approaches taken. The expertise required may encompass new objectives such as the ability to synthesise the broad range of information and research needed, to interpret it for the audience and to communicate it successfully to the policy-makers and the public at large.
ARO argues that appropriate resource must be directed to ensuring that this aim is achieved. Particular importance should be placed on the need to retain current expertise, which may be at risk as a result of current uncertainties, and ARO suggests that assurances of continuity should be given to those currently providing such expertise.
9. The importance of joint approaches, collaborative work and consensus must be underlined and supported.
The members of ARO have utilised a number of different models for engaging with regional, sub-regional and local partners and stakeholders, and these should be explored and supported in order to fulfil the aims of SNR of a more collaborative approach to sub-national evidence-gathering and policy-making. The SNR, and the consultation on its implementation, reiterate the importance of ensuring a joint approach to achieving a robust, shared evidence base which is independently credible. Regional observatories have unique experience in the role of drawing together a range of partners to inform evidence development, and this experience should be seen as a resource for central government, providing advice and expertise on the appropriate methods of ensuring that a single regional evidence base is jointly owned, understood and accepted.
Local Economic Assessments
The key principles for the proposed statutory duty to undertake a local economic assessment was also discussed by the group of professionals represented at the workshop. A number of issues were raised, and should receive further consideration.
1. The understanding of an economic assessment should include a broad definition of ‘economic’.
2. Local economic assessments should include a commonly agreed core (consistent at regional or national level), whilst retaining local flexibility.
3. Communication is vital, both during the process and in sharing the results.
4. Good use should be made of existing expertise and capacity, with support provided for additional capacity where necessary.
1. The understanding of an economic assessment should include a broad definition of ‘economic’.
The changes to regional level strategy indicates the importance of integrating other factors which have an impact on an economy into any analysis of that economy; the integration of the Regional Economic and Spatial Strategies suggests that there is an advantage to taking a more rounded approach. Accordingly, it is suggested that the assessment of a local economy should be based on a broad definition of economics, to ensure that the assessment is of value to local policy-makers, and to encourage the flow of information both up to, and down from, regional level. Many of the topics suggested for inclusion in the evidence base for a single integrated regional economic strategy could usefully be mentioned, with an appropriate economic focus, in the local economic assessment. One key area is the need for a local economic assessment to include a good understanding of the skills profile of the area, including a focus on supply and demand issues (relating to the development of the local economy) and aspirations of the inhabitants (which will require cultural and socio-economic analysis).
2. Local economic assessments should include a commonly agreed core (consistent at regional or national level), whilst retaining local flexibility.
In addition to being of value at local level, a local economic assessment would form part of the evidence to support a request for funding to be delegated to local level, and as such, the need exists for such evidence to be comparable at regional level in order to aid decision-making. Economies of scale, and a consistent approach, could be achieved by a common core of material being provided regionally, with local flexibility retained to allow the assessment to focus on specifically local issues. ARO also suggests that this approach could open up the possibility of local partners undertaking analysis based on a local version of an economic, spatial or integrated model in use at regional level, further encouraging a flow of information between geographical levels.
This provision of a regionally consistent core would also encourage the input of the assessment into the single evidence base, enabling local issues to be raised at regional level. However, the issue of conflicting timescales remains; the consultation document proposes the introduction of a local economic assessment subsequent to the development of a single integrated regional strategy. ARO therefore suggests that early guidance on the proposed duty be released, to facilitate dialogue between regional and local partners to ensure a collaborative approach from the earliest opportunity. This may include support for local partners in the undertaking of an ‘informal’ local economic assessment, prior to the introduction of the statutory duty, in order for such material to feed successfully into the single evidence base.
ARO and its members feel that regional observatories have a vital role to play, in facilitating communication between regional and local levels, and in the provision of a common core of material. Regional observatories would also be able to contribute in coordinating the input of local economic assessments into a single regional evidence base, utilising existing and developing networks.
3. Communication will be vital, both during the process and in sharing the results.
In taking a more collaborative approach to the interplay of regional and local data, early ownership of this shared approach can be encouraged by the use of good communication. This should be a priority at an early stage in the process, to ensure that buy-in to the process itself is achieved, as well as buy-in to the results.
Communication of the results will also be imperative in ensuring that the assessment is utilised, both by local and regional agencies, and by the public at large. Documentation should be tailored to reach each agreed audience, and regular updates of material should be considered to ensure continuing usefulness. In order to have the greatest impact, results of a local economic assessment should be interpreted to translate the evidence into intelligence, providing a narrative and policy implications for the conclusions.
Regional observatories are in a position to provide leadership and guidance in the communication of these materials, based on the experience and expertise that many have gained in fulfilling their aim of communicating regional data and evidence to a wide audience. Production of written materials, workshops, seminars and the use of online resources are all methods of communication in which ARO members should be seen as a resource and source of expertise.
4. Good use should be made of existing expertise and capacity, with support provided for additional capacity where necessary.
In production of a local economic assessment, it is important that the expertise and experience already within local authorities should be retained and utilised. Some local authorities have previously undertaken similar assessments, and additionally have expertise in economic development, and it is important that the proposed structure of any assessment enables this expertise to be put to use. However, in some areas, additional capacity to undertake the assessment, and associated interpretation, analysis and communication, will be needed, and ARO proposes that consideration be given to how best to support that capacity-building. The need to build the capacity of local councillors should also be considered, in the provision of supporting materials, and the timeliness of evidence provision.
Consideration should also be given to the possibility that, if local authorities contract private sector consultants to undertake local economic assessments, capacity within the private sector to meet that demand may be limited. This may have implications for the timescales and cost of the assessment.
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