From city-regions to combined county authorities: Is devolution set up to tackle urban-rural productivity divergence?

Policymaking at the city-region level in England was initially designed to shift the focus from sector-based to place-based development, but this has often coincided with agglomeration effects that benefit already prosperous urban regions like London and the Southeast. As new strategic authorities – many with a more rural character – become established, it is important to reflect upon the distinct sectoral and socioeconomic differences between rural and urban areas and what this means in the jigsaw of devolution and the key national agenda of growth. For instance, rural authorities differ markedly in their economic composition: rural areas tend to have a higher proportion of employment in agriculture, tourism, and small-scale services, while urban areas are dominated by sectors such as finance, technology, and large-scale manufacturing. The arrival of more rural authorities underscores the need for regional policy that integrates both sectoral and regional strategies, using robust data to tailor interventions to local strengths. This paper considers whether devolution in its current form is set up to support such an approach. As devolution progresses, coordination among regions with devolved powers, supported by central government frameworks, will be crucial to ensure that both rural and urban areas can benefit from, and contribute to, national economic growth.