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Local power, local plan? New report warns new devolution deals could fail without radical rethink of local economic planning

 

A new report from the Institute for Government offers a blunt warning: economic success won’t automatically follow new devolution deals. In fact, the think tank argues that unless local economic plans are drastically improved - and better integrated with infrastructure, housing and skills - the promise of devolution could fizzle into another layer of bureaucracy.

 

🔗 Read the full report here

 

📉 What’s the problem?

Local economic plans in England are currently:

  • Too fragmented across councils and agencies

  • Short-term and project-led, not strategic

  • Often written to chase funding pots, not to drive transformation

  • Not grounded in strong data or evidence

  • Lacking proper input from business and residents

The report pulls no punches - stating that many existing plans are “unrealistic”, “vague”, or “confused”, with “cut-and-paste” strategies that ignore what actually works for a place.

 

⚠️ For Sussex, which has different economic plans for each tier of local government, as well as additional blueprints for economic regions such as Greater Brighton and the Gatwick Economic Zone - this could be a warning. The risk is a Sussex mayor inherits a mess of legacy strategies and an urgent pressure to deliver without the joined-up tools to do so.

 

📌 What the report recommends

The IfG lays out a pragmatic, place-neutral roadmap:

  • Combined authorities must lead on building single, long-term local economic strategies — no more fragmented LEP-era wishlists

  • Plans must align spatial, infrastructure and skills policy — not exist in parallel

  • A shared evidence base must be developed and refreshed, with support from central government where necessary

  • The private sector must help shape the strategy, not be brought in late as signatories

  • Public engagement must be meaningful and ongoing — not a one-time tick box

🧭 What this means for Sussex

If a Sussex mayor and combined authority are confirmed in the coming months, they’ll need to:

  • Unite economic planning across East Sussex, West Sussex and Brighton & Hove

  • Sort through existing Local Plans, economic strategies, transport visions and spatial frameworks - and bin what no longer serves

  • Build capacity to do long-term strategic planning well

  • Fund a shared data and analysis function - something the IfG identifies as make-or-break

  • Listen early and widely - especially to business, young people and communities across the whole region

🎯 And what’s at stake?

As the IfG puts it: “Devolution can only succeed if the powers being transferred are put to good use.” That means giving a Sussex mayor something coherent to deliver.

This isn’t about rewriting every document, but more about focus. The report ends with a simple question every place should ask itself:

“What does your local economy need — and how will power, investment and coordination help you get there?”

 

 

These regular bite-sized emails are from the always possible team.

 

Thank you for joining us on this journey. We are together understanding the opportunities and risks facing growth, sustainability and identity in Sussex.

 

Sussex And The City is an independent and non-political project, clarifying the major reorganisation affecting Sussex and Brighton over the next two years.

 

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