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Shift power to East Midlands, say council leaders | Shift power to East Midlands, say council leaders |
(about 4 hours later) | |
Council leaders in the East Midlands are demanding "far reaching, radical reforms" to devolve powers from Whitehall to the local level. | Council leaders in the East Midlands are demanding "far reaching, radical reforms" to devolve powers from Whitehall to the local level. |
In a cross-party report, they call for a fundamental transfer of powers. | In a cross-party report, they call for a fundamental transfer of powers. |
It's their contribution to a growing national debate about English devolution following the outcome of the Scottish independence referendum. | |
East Midlands Councils (EMC) - the umbrella organisation that lobbies for the region's local government - claims its proposals would save money for the taxpayer and deliver services more efficiently and effectively. | |
But its call for more local tax raising will be controversial for some. | But its call for more local tax raising will be controversial for some. |
"Now is the time for a genuine devolution settlement for councils that includes fiscal responsibility for greater tax raising and spending powers," says the EMC's report: "A Prospectus for Devolution". | "Now is the time for a genuine devolution settlement for councils that includes fiscal responsibility for greater tax raising and spending powers," says the EMC's report: "A Prospectus for Devolution". |
Jon Collins, chairman of EMC and Labour leader of Nottingham City Council said: "This isn't about power for power's sake. | |
"It's about ensuring that those closest to the people have the necessary freedom, flexibility and accountability to plan and deliver local services." | "It's about ensuring that those closest to the people have the necessary freedom, flexibility and accountability to plan and deliver local services." |
The report doesn't go into too much detail about where local taxes could be raised. But it presses for HM Revenue and Customs (HMRC) to allocate a share of local income taxes for councils to spend against local, and not national priorities. | The report doesn't go into too much detail about where local taxes could be raised. But it presses for HM Revenue and Customs (HMRC) to allocate a share of local income taxes for councils to spend against local, and not national priorities. |
And that could be big money. According to the House of Commons, income tax receipts from the East Midlands alone were last year worth £8.5bn to the Treasury. | And that could be big money. According to the House of Commons, income tax receipts from the East Midlands alone were last year worth £8.5bn to the Treasury. |
"It's not about extra money. It's about how we better spend the money that's already committed," Jon Collins told me. | "It's not about extra money. It's about how we better spend the money that's already committed," Jon Collins told me. |
"We are the best place to decide where the local priorities are for particular infrastructure projects. | "We are the best place to decide where the local priorities are for particular infrastructure projects. |
"It's public money collected locally but we end up with ministers at national level second-guessing the decisions that should be taken closer to home. | "It's public money collected locally but we end up with ministers at national level second-guessing the decisions that should be taken closer to home. |
"All that process does is cause delay, bureaucracy and increase the costs." | "All that process does is cause delay, bureaucracy and increase the costs." |
The report also wants the devolution of the government's Work Programme and the integration of Jobcentre Plus with council services, and all funding "brought into a single pot for local growth, infrastructure, employment and skills." | The report also wants the devolution of the government's Work Programme and the integration of Jobcentre Plus with council services, and all funding "brought into a single pot for local growth, infrastructure, employment and skills." |
It also suggests devolving the benefits system to local councils. | It also suggests devolving the benefits system to local councils. |
"By giving councils responsibility for unemployment, housing and earning-related benefits, local government would have significant incentives and opportunities to put in place local-focused arrangements that help people into work," says EMC. | "By giving councils responsibility for unemployment, housing and earning-related benefits, local government would have significant incentives and opportunities to put in place local-focused arrangements that help people into work," says EMC. |
Its report comes hard on the heels of recommendations from the RSA City Growth Commission. | Its report comes hard on the heels of recommendations from the RSA City Growth Commission. |
It suggested England's main 15 cities would get a significant £79bn economic boost per year once powers are devolved. | It suggested England's main 15 cities would get a significant £79bn economic boost per year once powers are devolved. |
Mr Collins estimates those greater economic freedoms could create an additional one million jobs and inject more than £200bn into the economy over the next 15 years. | Mr Collins estimates those greater economic freedoms could create an additional one million jobs and inject more than £200bn into the economy over the next 15 years. |
"That's the equivalent of adding Denmark to UK plc," he said. | "That's the equivalent of adding Denmark to UK plc," he said. |
The East Midlands Councils' Report is timely. On Wednesday, there is a special TV debate in the East Midlands about which powers should be devolved from central government. | |
More Power for the East Midlands: An East Midlands Today Special is on BBC One from 22:35 GMT, hosted by Anne Davies and myself. You'll be able to join the debate on a special BBC live page and on Twitter using #eastmidswhatnext. | More Power for the East Midlands: An East Midlands Today Special is on BBC One from 22:35 GMT, hosted by Anne Davies and myself. You'll be able to join the debate on a special BBC live page and on Twitter using #eastmidswhatnext. |
We'll hear from key local decision makers, business leaders and community representatives. | We'll hear from key local decision makers, business leaders and community representatives. |
There'll be follow-up programmes on local radio stations on Thursday from 11:00 GMT. |
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