Broad political consensus is a relatively unusual event. So when it takes place – or at least appears to take place – the natural reaction is often a mixture of relief and suspicion. Steve Bromhead explains.

Whichever emotion dominates following this week's Local Growth Deals announcement, the seemingly inexorable march towards devolving spending responsibility for projects and related infrastructure investment is one such area of gathering political agreement. Indeed, it seems the only major area of disagreement is ‘how far?’ and ‘how fast?’ But behind the announcement, the picture is more complex and that’s where the grounds for possible suspicion lie.

Too often in the past, regional strategies have amounted to little more than a consolidated list of ‘pet’ schemes without a binding, overarching objective. 

Overall, the Prime Minister’s announcement is good news; not just allocating the entire £2bn Local Growth Deal funding for 2015/16 but also committing to a further £4 billion from future years’ allocation for high performing LEPs.

However, there are challenges that must be addressed if the devolution project is to deliver real benefit and not just be seen as another piece of political window dressing. 

Virtually all investment in regional infrastructure has an element of integration. Regeneration-led projects mean that transport, housing, education, utilities and health schemes are part of a wider integrated whole.

Unfortunately, capacity and capability shortages exist in local government across the whole of the UK, in some places more than others. It is vital that a joined-up approach to programme delivery rather than just a list of projects and schemes is developed and that the necessary skills and talent are brought on board by regional and local bodies early enough in the development process.

Local Growth Deal funding cannot be seen in isolation. Projects beginning in 2015/16 are expected to be matched by local contributions worth double those from Central Government. In order to unlock this, the private sector needs to be engaged from the very beginning and clear criteria set out to enable and facilitate private sector funding, ranging from a commercial approach to risk transfer and allocation, right through to reform of local planning processes. Failure to do this risks crowding out private sector funding with public funding. 

Local Growth Deal funding cannot be seen in isolation. Projects beginning in 2015/16 are expected to be matched by local contributions worth double those from Central Government.

While it’s encouraging that robust measures have been set to check the viability and acceptability of approved schemes in the first round of Local Growth Deals, rigorous assessments must be maintained. Too often in the past, regional strategies have amounted to little more than a consolidated list of ‘pet’ schemes without a binding, overarching objective. 

No matter which party wins the General Election, one thing appears certain; the current debate around empowered localism for investment will gather momentum. Whether devolved monies amount to £10bn, £30bn or more, the challenge now is for regional and local bodies to think strategically, focus on outcomes and then resource with the required capabilities to ensure good governance, and value for money delivery.

The prize for doing so could see a genuine renaissance in the delivery of regional infrastructure and the creation of regional economic powerhouses on a scale our Victorian forbears would have approved of.

Steve Bromhead is UK head of infrastructure at built asset consultancy EC Harris.