Facts and stats
- Derby, Derbyshire, Nottingham, and Nottinghamshire are home to 2 million residents, which would make a future East Midlands Mayoral Combined Authority the one of the biggest in the country.
- The East Midlands has long been overlooked, in comparison to other Combined Authority areas like the West Midlands and Greater Manchester – public spending per person is lowest in the East Midlands at £12,113 – 10% below the UK average (see https://researchbriefings.files.parliament.uk/documents/SN04033/SN04033.pdf).
- In previous Mayoral / Combined Authority deals, the amount of gainshare capital (capital allocations set aside to be spent or borrowed against for the purpose of local investment) averaged at £30 million per year per deal.
- The true financial net benefit of devolution could be in the billions. As well as the ‘gainshare’ (extra funding - see above), there are significant economic benefits in working together and economies of scale. Other combined authorities have also been given financial allocations, like the West Midlands Combined Authority, for example, which has received £1 billion to expand and improve its transport network.
- The devolution deal is likely to be worth more than £13 per resident per year – perhaps significantly more. The cost of running the combined authority is likely to be around £1 per resident per year. In the first two years, more than half of this cost is expected to be funded by central government.
Based on the above, the cost for the East Midlands Mayoral Combined Authority would work out to approximately 45p per resident per year for the first two years, and approximately £1 per resident per year for future years with £13+ gained per resident per year.
- Estimated cost per resident per year: £1 (*less than 50p for the first two years.)
- Estimated gain per resident per year: £13+
