The National Audit Office has done us all a favour by highlighting some of the big cracks in the Chancellor’s ‘‘kick and run” devolution strategy. Their latest report, English devolution deals is highly critical of Obsorne’s informal approach and concludes that it’s unclear what the government is trying to achieve. “Some of the opportunities and obstacles are becoming clearer, but we still don’t have a clear view of the landscape or, crucially, an idea of the destination”, said Amyas Morse, head of the NAO.
The NAO also point out that the 10 devolution deals may not achieve the benefits intended and that there are real concerns over the governance arrangements and lack of accountability. Whilst there is support for a “devolution revolution”, the jury is out as to whether the government’s piecemeal devo-strategy will strengthen local democracy and stimulate local growth.
Devolution and metro mayors by themselves don’t guarantee prosperity and without adequate resources and a fairer system of equalisation we could end up with a war of all against all, with poorer places slipping further behind. The Treasury are betting on a blend of asymmetrical devolution and agglomeration policies creating winners and losers, with private replacing public. But this may not be acceptable to voters, especially when it comes to the consequences of greater fiscal devolution. Public service may be put at risk and places beyond the city region boundaries could be left further behind.
There’s a case for a fairer tax and spend settlement within and between regions, but advocates of uber localism should be careful what they wish for. The Smith Institute’s research showed that on retention of stamp duty, for example, three London boroughs (Kensington & Chelsea, Westminster, Camden) take more in stamp duty receipts than the North East, North West, Yorkshire and Humber, East Midlands and West Midlands combined! There are similar disparities with other local taxes, like Business Rates.
That’s not to say devolution and greater fiscal autonomy can’t work. It’s the way it’s done and who it’s for. Rather than backroom deals and bidding wars, it’s time for an honest and fair devo settlement. And one based on lifting all the boats and Whitehall and Town halls working together.
What else is happening?
GREATER MANCHESTER
Devo-health: a catalyst or distraction?
The Health Foundation has cast doubt on Manchester’s health and social care devolution deal in a report, Catalyst or distraction? Which concludes that the powers being transferred to local authorities are “relatively modest”. The think tank warns that the “fad” for devolving health services could prove a distraction from improving the quality of NHS services, and recommends that local leaders “proceed with caution”.
JRF launches new partnership to promote “inclusive growth”
The Inclusive Growth Analysis Unit (IGAU) has been established by the Joseph Rowntree Foundation (JRF) and the University of Manchester (UoM) to promote “inclusive growth” as powers and functions are devolved to the region. The IGAU is seeking to “make poverty reduction central to processes of economic growth and devolution” and will provide research and analysis to influence the new mayor, city and business leaders.
SHEFFIELD
BIS Sheffield office closure: MPs demand answers
The Chairs of the House of Commons’ Business, Innovation and Skills and Public Accounts Committees have written to the Permanent Secretary at the Department for Business, Innovation and Skills, Martin Donnelly asking to see Government documents recommending the closure of the Department’s office in Sheffield. In the letter the MPs say the Department’s lack of clarity on the reorganisation has been “wholly unsatisfactory”.
EAST ANGLIA
Norfolk MP urges government to pause East Anglia deal
Following the publication of the NAO report this week, the Conservative MP for Norfolk North, Sir Henry Bellingham has urged the Government to pause devolution plans for East Anglia. His intervention comes as Norfolk County Council Leader, George Nobbs criticises the Government’s handling of devolution negotiations saying that its “institutional arrogance” is in danger of “killing” the East Anglia deal.
Councillor pushes to exclude Norfolk and Suffolk from deal
Meanwhile the Leader of Cambridgeshire County Council, Steve Count has written to the Secretary of State for Communities and Local Government, Greg Clark urging him to consider a devolution deal for Cambridgeshire and Peterborough without Norfolk and Suffolk. His request to meet with Greg Clark follows Cambridgeshire County Council’s vote to reject the East Anglia deal in its current form in March.
OXFORDSHIRE
Oxfordshire Councils commission devolution review
Seven District Councils in Oxfordshire have commissioned PwC to review options for a devolution deal for the region. However, Oxfordshire County Council faces being broken up if current devolution proposals are followed and has expressed reservations about the project. The review is due to be completed in June.
TEES VALLEY
New MD appointed to Tees Valley Combined Authority
Tees Valley Combined Authority has appointed Assistant Chief Executive of Newcastle City Council, Andrew Lewis as its new Managing Director. His previous roles have included senior HM Treasury economist and Director of the Northern Way, a steering group tasked with addressing the North’s economic output between 2004 and 2011.
Read more on Headline News online here.