Whatever Scotland decides, English counties want greater devolution
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Version 0 of 1. Today, England's 37 county councils and large unitary authorities join the eight biggest regional cities in calling for a radical programme of devolution to bring government closer to the people. The message, from across the political spectrum, is clear: with Scotland going its own way, regardless of tomorrow's referendum outcome, England cannot remain a centralised state with Whitehall calling the shots. Pragmatic ministers recognise that town halls must be given more powers to co-ordinate economic growth, job creation and training measures while joining up health, social care and welfare programmes. The problem is that reactionaries, such as the communities and local government secretary, Eric Pickles, appear set against even modest reform – with Pickles arguing last week – against all evidence to the contrary – that Whitehall has already relinquished powers in many areas. Such obduracy is as depressing as it is predictable. With Scotland heading for full self-government, the counties argue that the next administration running what might be a rump UK will have to think big, with what they call a "radical devolution settlement for counties and city-regions". Across scores of local authorities, a cross-party campaign for constitutional change to answer the "English question" – how can a centralised state credibly run a diverse country of 54 million people from the centre? – is gaining momentum. In today's report, Our Plan for Government 2015-20, outlining a sweeping programme of reform over the next parliament, the 37 counties raise a simple question: "Scotland now – England next?" Behind their call for widespread public sector reform embracing local fundraising and economic powers – fiscal devolution in the jargon – the counties and unitaries, with a population of 23 million covering 86% of the English land mass, develop the theme of "single-place budgets". Under these, they argue that large councils could integrate health and social care, tailor employment and skills boards to suit local circumstances while assuming responsibility for Jobcentre Plus, and use strong economic powers to promote business growth. All this, they say, should be wrapped up in a new constitutional settlement for counties and city-regions – the new breed of combined authorities, for instance, in areas such as Greater Manchester – to rebalance the relationship with Westminster. That, they say, must be linked to a structural and cultural shift in Whitehall departments to "support, rather than impede, devolution in England". It all chimes with the work of the RSA's City Growth Commission, chaired by the economist Jim O'Neill, and the campaigning of the Core Cities Group of the eight largest English cities (now, interestingly, including Glasgow). O'Neill argues that all UK cities are being held back from being globally competitive because public finances are heavily centralised. He says money, and powers over some local taxes, should be handed back to local control. Last weekend the English devolution campaign gained further momentum when the deputy prime minister, Nick Clegg, endorsed a report from the Institute for Public Policy Research North thinktank calling for much the same thing, with councils – and groups of authorities, where appropriate – getting some tax-raising and greater spending powers, including full control of council tax and business rates. England, says Clegg, has become the forgotten part of the devolution puzzle. We can be sure that these calls for English devolution will get louder in the runup to a general election. Clegg (and senior Liberal Democrats) will demand more power for English regions to "stand on their own feet". Ed Miliband will promise more power for big councils and city-regions – but will, assuredly, not pledge the fiscal freedom necessary to put them on par with significantly stronger cities in mainland Europe. My guess is that, through the next parliament, England will remain a dysfunctional, centralised state – unless an unstoppable momentum builds up in the north for some form of greater devolution from a distant London. But that will take a political earthquake. Peter Hetherington writes about communities and regeneration |