More than two-thirds of north-east firms say region needs mayor

A Scotland-wide survey of business sentiment has found more than two-thirds of north-east firms are in favour of a new metro mayor for the region.

Metro mayors are directly elected and lead combined authorities with powers and functions devolved from government, pooling council resources over a wider area.

There are now 11 combined authorities in England, with others awaiting parliamentary approval.

They are being introduced in areas where they are considered likely to improve transport, economic development, and regeneration.

Each one has a directly elected mayor. Greater London also has a directly elected mayor, Sadiq Khan, although it is not a combined authority.

Critics of the metro mayor set-up have pointed to poor voter turnouts for elections, which they say reflect what’s happening at Westminster, rather than any local issues.

There are currently no combined authorities in Scotland.

But the idea has been mooted by Our Scottish Future, the political campaigning body set up by former prime minister Gordon Brown, as a means of shifting more power out of Edinburgh.

Scottish Labour has also floated the idea of introducing metro mayors.

Survey reveals north-east support

And the idea has support in the north-east, according to the latest quarterly Understanding Business survey conducted by 56° North and the Diffley Partnership.

More than 500 firms across Scotland were asked for their views on a range of issues.

A majority of businesses in the north-east (68%) believed a new metro mayor for the region would improve its economic prospects.

Idea less popular elsewhere in Scotland

The idea is less popular in Edinburgh and the Lothians, or Glasgow and Strathclyde, where 41% and 46% of firms respectively believe a metro mayor would be beneficial.

Only 39% of businesses in the Highlands and Islands are in favour, the survey found.

According to communications firm 56° North, “the stats show appetite in the north-east for more control outside of the central belt and the belief that greater local power would be a positive thing”.

The subject of mayors in Scotland was among themes covered in the recent Urban Age report from partners including Aberdeen and Grampian Chamber of Commerce (AGCC).

It examined the key issues facing Aberdeen, Edinburgh and Glasgow and called for the devolution of “meaningful powers”.

Responding to the Understanding Business findings, AGCC chief executive Russell Borthwick said: “The UK Government has made clear that in England, the ‘levelling-up’ agenda will seek to devolve responsibility to local authorities and to metro mayors, although the government will not force local authorities to adopt metro mayors.

“It is not yet clear how this is to be resolved with the devolved administrations in Scotland, Wales and Northern Ireland.

“What is clear, however, is that we must see real leadership in Scotland’s cities in the same way that these metro mayors are influencing positive change south of the border.”

Mr Borthwick added: “Businesses will be watching this policy develop with interest after the election, particularly to see if Labour embraces mayors and pushes them as a key pillar for future economic growth in Scotland.”

We must see real leadership in Scotland’s cities in the same way that these metro mayors are influencing positive change south of the border.” Russell Borthwick

John Penman, managing partner, 56° North, said: “Metro mayors such as Andy Burnham in Greater Manchester have become household names as recognised city-regional leaders. Many people feel they’ve had more of an impact on local areas than councils.

Will rollout of devolution to English regions drive demand for greater autonomy north of the border?

“The Tory government was committed to further rolling out of this devolution and if Labour win on July 4, they too plan to increase power to English regions.

“Some in Scotland’s city regions may well feel they will need greater autonomy in terms of economic levers to be able to compete with their English counterparts.

“The metro mayor debate north of the border is going to be an interesting one to follow.”

The Understanding Business survey also found nearly half (44%) of businesses feel devolution has been good for Scotland.

When asked about giving Holyrood further powers to boost the economy, the highest support (40%) was for more powers to leverage investment and funding to support economic development.

What else is in the Understanding Business report?

Other findings include:

• About half of firms (49%) believe economic conditions are worse now than a year ago. Three in 10 (29%) believe economic conditions are about the same, while in excess of one in five (22%) think conditions have improved.
• About four in 10 (38%) believe economic conditions will be worse over the next 12 months than they are now, down from 45% that said the same in March. About one in three (36%) think conditions will be about the same  and one in four (26%) say they will be better.
• About two fifths (39%) of businesses are more concerned about inflation than they were three months ago, marking a notable drop in the trend by 13 percentage points from March 2024 (52%) and September 2023 (60%). Concerns over taxation increased as 49% of businesses report being more worried, up two percentage points from 46% in March.

• When asked if the Scottish Government is concerned with the needs of businesses in Scotland, around four in 10 firms (41%) agree, while 37% disagree. The results were similar in March, when 40% agreed and 39% disagreed.
• When asked about the UK Government, more than half (51%) believe it is unconcerned with the needs of businesses in Scotland, down three percentage points from March 2024.
• One-third (33%) believe the Scottish Government is taking action to address business concerns in Scotland, up by four percentage points from March.

• About one-fifth (21%) believe the UK Government is taking action to address business concerns in Scotland, about the same as in March, while more than half (53%) do not think UK Government is taking such action.
• Two in five respondents (40%) believe the Scottish Parliament should have more powers related to investment and funding to support economic development. A similar proportion (39%) deem additional authority over taxation a suitable devolved domain for more powers.
• Three in 10 (30%) believe the Scottish Parliament should have no additional powers in relation to business.