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George Osborne told by town halls that his devolution plan will cost £60bn George Osborne told by town halls that his devolution plan will cost £60bn
(about 9 hours later)
Up to 30 regions of England are due to submit bids for devolved powers in a move that marks the start of the biggest shake-up of local government in a generation.Up to 30 regions of England are due to submit bids for devolved powers in a move that marks the start of the biggest shake-up of local government in a generation.
It could see town hall leaders up and down the country gain control over services including transport, housing, health and social care.It could see town hall leaders up and down the country gain control over services including transport, housing, health and social care.
George Osborne has been warned by local council leaders, however, that he must hand over control of £60bn of central Government spending as they rush to sign up for his devolution agenda. And the Chancellor’s bid to use devolution to build the Northern Powerhouse could yet be derailed by his insistence that city-regions have directly elected mayors.George Osborne has been warned by local council leaders, however, that he must hand over control of £60bn of central Government spending as they rush to sign up for his devolution agenda. And the Chancellor’s bid to use devolution to build the Northern Powerhouse could yet be derailed by his insistence that city-regions have directly elected mayors.
Some leaders in the North who have joined forces to submit devolution bids are waiting to see if the powers granted by Mr Osborne match their own ambitions.Some leaders in the North who have joined forces to submit devolution bids are waiting to see if the powers granted by Mr Osborne match their own ambitions.
Residents in Leeds, Bradford and Wakefield voted against mayors for their individual towns in 2012, but the council leaders now say they will give an elected mayor “serious consideration”.Residents in Leeds, Bradford and Wakefield voted against mayors for their individual towns in 2012, but the council leaders now say they will give an elected mayor “serious consideration”.
They plan to join forces with Calderdale and Kirklees in West Yorkshire and York, Harrogate, Craven and Selby in North Yorkshire to create the largest city-region outside London – with an economic output of more than £57bn.They plan to join forces with Calderdale and Kirklees in West Yorkshire and York, Harrogate, Craven and Selby in North Yorkshire to create the largest city-region outside London – with an economic output of more than £57bn.
The leaders of the West Yorkshire Combined Authority said: “Although people in Bradford, Leeds and Wakefield voted against mayors in 2012, the leaders agree the potential benefits are now so substantial they have a duty to residents to give it serious consideration.The leaders of the West Yorkshire Combined Authority said: “Although people in Bradford, Leeds and Wakefield voted against mayors in 2012, the leaders agree the potential benefits are now so substantial they have a duty to residents to give it serious consideration.
“However, they will not stand for the Government using devolution to impose a mayor while keeping the real power in Whitehall or simply devolve the task and responsibility for implementing austerity.” Peter Box CBE, the leader of Wakefield Council said: “We understand that residents expect that any devolution powers match our ambitions before we consider an elected mayor. There are potential benefits to having an elected mayor and we would be willing to give this serious consideration. This is dependent on what the Government is able to offer our region in terms of devolution.”“However, they will not stand for the Government using devolution to impose a mayor while keeping the real power in Whitehall or simply devolve the task and responsibility for implementing austerity.” Peter Box CBE, the leader of Wakefield Council said: “We understand that residents expect that any devolution powers match our ambitions before we consider an elected mayor. There are potential benefits to having an elected mayor and we would be willing to give this serious consideration. This is dependent on what the Government is able to offer our region in terms of devolution.”
Newcastle and six neighbouring councils in the North-east have submitted a devolution bid that includes proposals to make the region the UK’s regional lead for exports.Newcastle and six neighbouring councils in the North-east have submitted a devolution bid that includes proposals to make the region the UK’s regional lead for exports.
But they also want greater fiscal freedom to ensure businesses are not put at risk of a competitive disadvantage with neighbouring Scotland.But they also want greater fiscal freedom to ensure businesses are not put at risk of a competitive disadvantage with neighbouring Scotland.
The North East Combined Authority said it will approach negotiations about an elected mayor with “an open mind” and expects “the same” from the Government. Other devolution bids include a request by Derbyshire and Nottinghamshire for a 10-year transport settlement and fully devolved housing investment. Liverpool city wants to retain all income from business rates and the ability to franchise all local bus services.The North East Combined Authority said it will approach negotiations about an elected mayor with “an open mind” and expects “the same” from the Government. Other devolution bids include a request by Derbyshire and Nottinghamshire for a 10-year transport settlement and fully devolved housing investment. Liverpool city wants to retain all income from business rates and the ability to franchise all local bus services.
Gloucestershire wants control over healthcare budgets and Leicestershire is seeking to create enterprise zones.Gloucestershire wants control over healthcare budgets and Leicestershire is seeking to create enterprise zones.
The Local Government Association, which represents 370 councils, said that regions should be free to choose how they should be governed instead of being handed a one-size-fits-all solution.The Local Government Association, which represents 370 councils, said that regions should be free to choose how they should be governed instead of being handed a one-size-fits-all solution.
The body has now called on Mr Osborne to use his spending review in November to commit to devolving more than £60bn in funding to local councils over five years. It says the move could save the public sector £20bn and generate £80bn in economic growth while creating 700,000 jobs.The body has now called on Mr Osborne to use his spending review in November to commit to devolving more than £60bn in funding to local councils over five years. It says the move could save the public sector £20bn and generate £80bn in economic growth while creating 700,000 jobs.
LGA chairman Gary Parker said: “We urge the Government to match the ambitions shown by cities and county areas and ensure the benefits of devolution are extended to residents and businesses in all parts of the country. Devolution is not an end in itself. If public services are to survive, councils need fairer funding.” LGA chairman Gary Porter said: “We urge the Government to match the ambitions shown by cities and county areas and ensure the benefits of devolution are extended to residents and businesses in all parts of the country. Devolution is not an end in itself. If public services are to survive, councils need fairer funding.”
A Treasury spokesman said: “This one nation government is determined to devolve powers and funding so that no corner of the country is left behind. We welcome the fact that civic leaders from all over the country are enthusiastic about devolution.”A Treasury spokesman said: “This one nation government is determined to devolve powers and funding so that no corner of the country is left behind. We welcome the fact that civic leaders from all over the country are enthusiastic about devolution.”