Demanding Devolution A local Liberal Democrat vision Spring 2015 This booklet has been produced by the Liberal Democrat Group in the Local Government Association. Information and opinions offered in the booklet are personal to the authors and are not necessarily either Liberal Democrat Party policy or the views of the Liberal Democrat Group in the Local Government Association Demanding Devolution Contents 1. Foreword Rt Hon Nick Clegg MP Leader of the Liberal Democrats p3 2. Introduction Cllr Gerald Vernon-Jackson Leader, LGA Liberal Democrats p5 3. Houses, Jobs and Health - we have the answers Cllr Ruth Dombey Leader, Sutton Borough Council p8 4. Reconnecting Communities Cllr Jeremy Rowe Deputy Leader, Cornwall Council p11 5. Guaranteeing a good education Cllr Simon Galton Group Leader, Leicestershire County Council p14 6. Dismantle the centre - make real change happen Cllr Keith House Leader, Eastleigh Borough Council p17 7. Devolution that we can see Cllr Janet Battye Group Leader, Calderdale Metropolitan Borough Council p20 8. The opportunity is here and now Cllr Sue Derbyshire Leader, Stockport Metropolitan Borough Council p23 1 Demanding Devolution 9. Pulling together in conurbations Cllr Richard Kemp CBE Group Leader, Liverpool City Council p26 10. Two-tier devolution - let’s get on with it Cllr Chris White Group Leader, St Albans DC and councillor, Herts CC p30 2 Demanding Devolution Foreword Rt Hon Nick Clegg MP Leader of the Liberal Democrats Taking power away from the stuffy corridors of Whitehall and Westminster and giving it to the communities, villages, towns, cities, counties, regions and nations that make up the UK has rightly long been at the heart of Liberal Democrat - and indeed our predecessor parties’ policies and ideals. Unlike the Labour and Conservative parties our instincts fundamentally lie on the side of taking power away from the centre and dispersing it. We know that the heavy hand of the centre is in many ways illequipped compared to local government to deliver the best outcomes for local communities. In Government during this parliament we have sought to drive forward our agenda of devolution through measures such as the Wales Bill 2014, the Smith Commission, the Localism Act 2011 - which introduced the general power of competence, LEPs, TIFs, retention of Business Rates, the community right to buy and our programme of City Deals. This is a record of which we can and should be proud. But we also know we must do more; as our last five years in Government has strengthened, not undermined, our belief that where power lies in this country can and must be devolved further in order to help build a stronger economy in a fairer society enabling everybody to get on in life. So as a party it is right that we redouble our efforts to ensure that we are at the forefront of the debate about how we can go further and exactly how this should happen. And for that reason I whole-heartedly welcome the work of this pamphlet. Our local government leaders have shown what they can already do with the powers they have – often by stretching most impressively those powers to their current limits and ensuring that scarce resources are used to maximum impact. Learning about what those same leaders now want to do with more powers is deeply inspiring. 3 Demanding Devolution From Sutton to Stockport and from Cornwall to Calderdale it is Liberal Democrats setting the terms of the debate. We all agree that “no one size fits all” and that instead different areas have different priorities and ideas of what works for them. Our policy of “Devolution on Demand” rightly encourages this, and it is clear that Liberal Democrat local government leaders are set to take full advantage of it. I am confident that the argument for greatly increased and enhanced devolution, up to and certainly including meaningful fiscal devolution, is being won. The world may now be more globalised than ever, but at the same time there has never been greater demand for Government to be responsive to people’s needs and to deliver public services in a flexible manner at the local level. The next Government, of whatever political composition, will rightly be forced to confront head-on questions about how power can be made more answerable to local communities and I have every reason to believe that this will inevitably lead to increased debate and consideration of exactly the kinds of issues and ideas raised in these pages. This booklet puts the Liberal Democrats on the front foot to meet those challenges head on. I hope you enjoy reading it and - even more importantly – one day soon get to implement many of the ideas in your area. 4 Demanding Devolution Introduction Cllr Gerald Vernon-Jackson Leader, LGA Liberal Democrats Devolution is Liberal Democrat territory. Breaking up central bureaucracies and elites, passing power out and down, away from the centre and to the communities and individuals subject to their decisions is the reason many of us came into politics. The referendum in Scotland fanned the embers of disquiet and dissatisfaction with Westminster politics and led the wider public, not just Liberal Democrats, to ask themselves what powers they want the UK Government to hold over them. Since then we have welcomed the other two major parties move into our territory and the government has reached bespoke devolution agreements in Greater Manchester and South Yorkshire with others reported to be in the pipeline. The LGA Liberal Democrats want our councillors and council groups to have a strong voice as things progress in this area. We already have a sound party policy, ‘Devolution on Demand’, which proposes an act of parliament to enable local areas to come forward with their own demands for new powers. Quite rightly this policy is based on the principle that no one size fits all and that it should be for each local area to decide what structures and mix of powers they wish to take on. However our duty to this cause as Liberal Democrats should not stop at an act of parliament inviting proposals. We owe it to all those that have worked for this opportunity to seize it - to drive it and to shape it. The aim of this booklet is therefore to give local Lib Dems in different areas an opportunity to set out what would make a difference to their areas, what they would demand for their communities and also to bring out common themes to Liberal Democrat views on devolution. 5 Demanding Devolution The first few articles in this book set out some of our group leaders’ ambitions for their area. We have Ruth Dombey, Council Leader in Sutton, explaining how local government has the answers to some of the most important issues facing the residents of her borough – health, housing and getting a job. Then there is Jeremy Rowe, Deputy Leader of Cornwall explaining how they want to reconnect communities in Cornwall by using powers to invest in transport and renewable energy whilst also using stamp duty raised in the sale of second homes to build affordable homes. Simon Galton argues that establishing a strong oversight role for local authorities in education would allow Leicestershire to tackle some of the local issues that pupils and parents have with their schools. Keith House sets out what a truly independent local government should look like, showing how his own borough of Eastleigh could save millions of pounds and improve outcomes by joining up services and taking responsibility for its own finances. These first few articles show the extent of ambition within our council groups to deliver whole swathes of public service at a more local, joined up level and to take responsibility for their own finances. Labour always worry about the ‘postcode lottery’ of decentralising public services whilst the Conservatives always assume that releasing local finances from the grip of a central treasury will mean marauding ‘leftie’ councils taxing everything that moves or a council going bust. These articles show that local Lib Dems believe these assumptions to be unfounded – that proper independence means you have local solutions that address the specific local problems, ensuring services are delivered and outcomes improved much more efficiently and of course, more cheaply. The latter half of the booklet looks at democracy and the governance structures that Liberal Democrats would like to see. If new powers are to be devolved down then they need to be to bodies that are sufficiently democratic and accountable to the people. In these articles our leaders describe how they see this being achieved in their local areas. 6 Demanding Devolution Sue Derbyshire, Leader of Stockport, talks about what has been achieved through the recent Greater Manchester devolution agreement and of course the introduction of a mayor that made most of the headlines. She urges proponents of devolution to worry less about the governance structures and more about what can be achieved for local residents, pointing out that ambitious devolution may actually lead to popular demand for the sort of democratic reform Liberal Democrats care about once people understand that local politicians really can make a difference to people’s lives. Janet Battye, the Group Leader of Calderdale calls for devolution demands to be from the bottom up, making clear her view that any plans should take the people with them and be directly accountable to them. This means getting things done and being seen to be doing so. Richard Kemp then gives us his view on the importance of the conurbation level using his own patch, Merseyside, as a prime example. He argues that where a conurbation level strategic body is set up there must be some level of proportional representation whilst Chris White debunks the theory that devolution to rural areas requires local government reorganisation. These latter two articles touch on what I think is another important aspect of lib dem devolution – fairness. This means ensuring that, whilst there will always be front-runners, no-one is left behind in the process of devolution. For Richard Kemp this means that financial freedoms must come with a mechanism to redistribute from areas well placed to benefit to those less so. For Chris White it means ensuring that, whilst all the attention is currently on city regions and metropolitan areas, counties and rural areas should not be excluded from the process. This collection of articles shows that devolution will mean different things in different areas – one size does not fit all and any projects that seek to carve up the country into neat little sections with the same powers are doomed to fail. That is the sentiment driving our ‘devolution on demand’ policy. However, whilst we may not all agree on how devolution should be realised, I think Lib Dems can agree on what we want devolution to look like ambitious, democratic and fair. That is the local Liberal Democrat vision of devolution and that is what we should be fighting for on the doorstep, in the council chamber and in Westminster. 7 Demanding Devolution Houses, Jobs & Health – we have the answers Cllr Ruth Dombey Leader, Sutton Borough Council People living in Sutton have high expectations about how they should be involved in local decision making. For nearly three decades the Lib Dems have been encouraging them to set up residents groups, tenants associations and friends of parks and heritage buildings so they can represent their local residents and have a strong say in what is going on. All these groups have a formal place on our Local (neighbourhood) Committees so they can help us shape their local area. Now we’ve gone further. A successful £1.4 million bid for funds to redesign one of our district centres was handed over to residents who formed a Delivery Group to design and oversee the development. The Council was on hand for technical advice and support. We’re piloting Community Commissioning and recently passed the first stage of a £3.6 million project to develop the natural wildlife and habitats and promote the heritage of one of our local parks. Local residents helped us design and shape the bid - so much so that one of the criteria to consult with local residents was removed by the funders because it was clear that the bid was coming from the residents themselves. But we could be doing so much more and it is frustrating to see how slowly the machinery of central government grinds along before it admits that the long term problems in health, housing and welfare are all areas where local government can make a substantial positive impact. There are people navigating their way through the complexity of London’s jobs market and enduring a confusing array of central employment and skills programmes, when we know that local schemes which bring together councils, businesses and voluntary sector and training providers consistently outperform national schemes. 8 Demanding Devolution Boroughs like Sutton are running locally led programmes which are getting over 30% of their clients back into work - where the Work Programme struggles to get above single figures. Local government can help get people back into the jobs market and off welfare, encourage growth and investment in jobs and greater powers to achieve this can only benefit government and the UK as a whole. Investment in infrastructure is also a vital part in promoting economic growth in local areas – whether this is transport improvements featuring at the core of many devolution proposals or tackling the desperate need across many parts of the country for affordable housing. Government housing interventions have yet to sufficiently stimulate the necessary house building. In Sutton we have taken advantage of recent reforms to the housing finance system which allow greater borrowing by councils to fund the building of social housing. We’re also setting up our own Development Company which will be able to acquire sites, enter into joint ventures with developers, deliver private for rent or sale, social housing etc, all with a view to delivering the type of housing to meet local need at prices people can afford. But we could do much more and that is why Sutton is calling on government to devolve more funding and powers to local authorities. Removing the Treasury cap on borrowing will allow councils to borrow prudently against their assets. Devolving property taxation (including business rates) to local government - to both set the appropriate level and retain the receipts - will allow us greater freedoms and flexibilities to stimulate economic growth and fund our own housing and employment schemes. Handing over large chunks of the welfare budget will allow us to help some people off welfare and better support the people most in need. But the biggest prize is the integration of health and social care. The Better Care Fund has made a start but the funding is still dominated by the problems in A&E instead of addressing the need to prevent people needing hospital care as well as getting them out of hospital as quickly as possible. 9 Demanding Devolution We urgently need wide ranging investment in social care if we are to solve the problem. Throwing more billions at the NHS will not fix the problems in our hospitals. The answer is to strengthen the successful partnership working between local councils and the CCGs and allow the Health and Wellbeing Boards to reshape the local health system. There is no clear single vision for what ‘devolution’ to local areas should look like - nor should there be. All over the country local councils are coming together to share services, set up subregional partnerships and work more collaboratively. It looks different in different places - and rightly so. We know that many people remain resolutely disengaged from politics and removed from the political process. Local government has an important role to play in tackling this challenge. Give us the chance and watch us fly. 10 Demanding Devolution Reconnecting communities – lasting solutions for Cornwall Cllr Jeremy Rowe Deputy Leader, Cornwall Council Living in and representing the beautiful area of North Cornwall, I am undeniably biased in my view that Cornwall is the very best place in the country to live. However, despite its many strengths, Cornwall presents some very real challenges for those living here. Our recent residents’ survey gave us a very clear message of the things that matter most to local people affordable housing, wage levels, job prospects, public transport and road repairs. With house prices in Cornwall, fuelled by competing uses such as demand for holiday and second homes, now amongst the highest in the UK and salary levels amongst the lowest, home ownership is beyond the reach of many in Cornwall. Despite recent growth in Cornwall’s economy we are still beset by low earnings and low Gross Value Added on one side and high house prices, high levels of fuel poverty, the highest water bills in the UK and high transport costs on the other. Connectivity is critical to Cornwall, both within our predominantly rural county where 70% of people live outside of main settlements and with the rest of the UK - road, rail, air, sea and digital links are the arteries of our economy. Our population is amongst the fastest growing areas in the UK with increasing pressure on care and support services from a growing ageing population. In some neighbourhoods over a quarter of the working age population are claiming out of work benefits. These areas suffer from high levels of worklessness, low educational achievement and lower life expectancy which the council and its partners are determined to address. Improving skill levels and training opportunities is vital. Although we have seen improvements, over a fifth of the economically active population have no qualifications. 11 Demanding Devolution But we have some great opportunities too. Our natural resources and geology give us an amazing chance to lead on the development and deployment of renewable technology including wind, wave and geothermal power. We are leading the way in delivering superfast broadband, and have been awarded millions of pounds of European funding over the next six years. It is these issues that form the focus of our call for devolution of powers and freedoms from central government that would enable us to take control of our own affairs. We understand Cornwall, how it works, our challenges and opportunities. We are facing unprecedented financial challenges, with the need to save £196m over the next four years. This means we need to do things in a different way if we want to provide high quality services to the people of Cornwall. We want to create a sustainable Cornwall, which is prosperous, resilient and resourceful with strong communities where the most vulnerable are protected. Cornwall has a proud history of standing up and fighting for what it believes in and we are determined to take advantage of this moment and shape our own history. Our ‘Case for Cornwall’ focuses on the following areas: Public transport and connectivity – powers to decentralise bus regulation and retaining a share of fuel duty to maintain Cornwall’s roads Housing – devolution of Homes and Communities Agency powers and land holdings, managing the challenges caused by high density of second homes and retaining a proportion of stamp duty to invest in affordable housing Health and social care – greater integration of health and social care commissioning and provision 12 Demanding Devolution Energy - Government investment in geothermal technology, greater control over grid investment and local discretion and influence over energy policy Public sector efficiency – devolved delivery of funding and investment streams, powers to pool and reinvest capital receipts from the public sector estate, development of an earnback model and greater alignment of public sector budgets Cornwall provides the opportunity to develop a devolution deal which will provide a model for other areas. Our geography, peripherality, shared organisational boundaries and sense of place and identity underline why devolution works for Cornwall. We want to work with the government to develop a governance model incorporating Cornwall Council and Cornish partners which will strengthen local accountability, and ensure democratic decision making. We want to achieve greater transparency to reconnect communities with public services and most importantly, have the ability to drive the improvements to infrastructure, jobs and housing which Cornwall both needs and deserves. 13 Demanding Devolution Guaranteeing a good education Cllr Simon Galton Group Leader, Leicestershire County Council When the coalition put through the Academies Act it was billed as a decentralisation. Turning community schools into academies would take powers from the local authority and give them to the schools themselves, and theoretically the local communities. In practice, there was also a large measure of centralisation. Decisions on schools that used to be made by a council were first given to ministers in Whitehall and later, when the workload proved too onerous, delegated to regional school commissioners that had been appointed by central government - bureaucrats far removed from the communities that they are supposed to serve. In Leicestershire the problems of school oversight have led to cross-party support in the county for a number of powers for local authorities in education that would free up teachers to teach whilst providing a local democratic guarantee of standards and access to education. Guaranteeing school places A specific problem in Leicestershire is that schools have followed an unconventional age range pattern where children left primary schools after year 5, studied at a high school up to year 9 and then study for GCSEs and A Levels at an upper school. This system was out of step with the rest of the country, and there was also evidence that the unusual transitions were negatively affecting standards. There was a need for change here but without proper oversight of this process academies have been able to take a unilateral approach to their new structures which has forced other schools connected with it to follow suit regardless of their suitability. It is clear that such a period of transformation would benefit from the local authority, as a third party accountable to the whole of the local community, 14 Demanding Devolution taking on a mediating role whilst more control over the schools capital budget would allow it ensure a fair outcome for all pupils in the area. Getting pupils to school Changes to school age ranges caused changes to their catchment areas and this sparked off a problem with the council’s Home to School Transport Policy. The policy was to provide students with free transport to their catchment school. This policy worked well when the Council set the catchment areas, but now it was possible for schools to set catchment areas that covered the entire county, which would make the current policy unaffordable. For fear that an alternative might trigger a judicial review from an academy the county adjusted the policy to cover only child’s nearest school, leaving many parents feeling aggrieved. It is clear that the local authority should have full discretion over the school transport policy and have the final say on catchment areas for the purposes of free transport. If it also had more control over transport policy in general it would be in an even better position to ensure young people could get to the school or college of their choosing. Driving school standards When the Academy Act was passed, Leicestershire moved swiftly to wind up a number of school support services including, controversially, its highly regarded School Improvement Service. This was largely done on the basis that all schools in the county would soon become academies and the council no longer had a role in the standard of education they provided. Our members strongly opposed this council decision at the time and continue to feel that the local authority should have a role in the improvement of all schools in the local area. However it is clear that such a role will require both the power and the funding necessary to perform it. Individual schools and the chains have the first responsibility but the local authority should be given the ability to hold all schools to account on their performance. The Lib Dems in Leicestershire feel that if given the right powers and oversight over school improvement, catchment areas and age range changes 15 Demanding Devolution then we’d finally be able to address these problems. At our September Council meeting, we put forward a motion calling for local government to be given such powers and responsibilities. To our surprise, the Tories not only supported our motion, but the Cabinet lead member for Education even agreed to second it. The experience over the last four years had led to a cross party view that Councils are better placed than Whitehall to understand the specific logistical challenges faced by local schools, and to understand the needs of the communities they served. If the government is serious about putting power back in the hands of communities, part of this must mean devolving these powers back to Local Authorities, who are far more accessible (and more democratically accountable) to local communities than remote offices of Whitehall ministers or appointed schools commissioners. Thankfully the Liberal Democrats have recognised this and policies devolving these powers are set to appear in our manifesto. Now it is up to us as a party to get ourselves elected and ensure they’re enacted! 16 Demanding Devolution Dismantle the Centre – Make Real Change Happen Cllr Keith House Leader, Eastleigh Borough Council Let’s start at the beginning. What are we trying to achieve with devolution? It’s about local decisions for local communities reflecting local priorities. These are not the same in Cornwall as Camden or Carlisle. So it’s not about decentralisation, which has been the standard UK government approach to local administration. Devolution requires local independence, local finance and local accountability. It means that any decision that can be taken at a local level should be. And the centre should not have the power to intervene, undermine and control. What does this mean for local government? Let’s take the three themes of independence, finance and accountability. Independence. This is the fundamental. For decades the centre has told localities that it, and its professional agencies, know best. They don’t. Local communities are perfectly capable of rational and sensible decisions given the freedom to do so. They will typically be cheaper and more joined up. So a whole swathe of the centre can be dismantled and powers returned to the people. Most health, education, welfare, justice, housing, environment and home office functions, let alone culture and sport, can be delivered locally. Why is welfare administered and controlled nationally? Or probation, if we want to properly join up with local community safety? Why have one person, the Secretary of State for Health, theoretically responsible for every health decision affecting every English citizen, separate from locally assessed social care, housing and public health need? It is no wonder we have relatively poor health outcomes, and educational results that underperform many other leading world economies. And all for 17 Demanding Devolution Ministers’ fear about a front page of the Daily Mail when a crime is committed, when a hospital is in crisis, or when a school fails its community. Finance. Independence needs financial reform. Local government and local communities should not be cap-in-hand to central government departments and the Treasury. Local taxes should be retained locally. That applies to property taxes, like council tax and business rates, but also to those taxes that local communities consider work for them and charges too. It is no business of central government to prescribe what and how local taxes and charges are made. Independent devolved government will take the decisions it needs to tax and borrow and spend prudentially knowing the responsibility for that tax burden, and the freedoms achieved to encourage jobs and investment, will be locally owned. Independent finance for local government removes the dead hand of the central state. Most local communities have the ability to raise sufficient income for their needs, reducing central taxation and reducing the role of UK government to dealing with exceptional issues of deprivation, temporary support for structural economic change or disaster relief. Accountability. Planning of local places has been undermined by a central planning regime, with a government inspector who overturns decisions made by local people. No other major democracy centralises decisions in this way. The ability to direct investment and to take responsibility locally is undermined. It is all too easy to blame someone else. A statutory duty to meet housing need within genuine housing market areas, based on a transparent local assessment would put responsibility back where it belongs. Removing quangos that instruct and decide based on a national template serves localities poorly. And removing the local quango state, ‘qaulgos’, or 18 Demanding Devolution unaccountable governing bodies in health and education would repatriate real local decision making. Community safety, with its remit for a huge area tied down in the powers of just one elected official (Police and Crime Commissioner), could be much better achieved through locally elected authorities. Much of this is not new. Much was in place at the end of the 19th Century and early years of the last century. Much can be learned from local community decision-making in western Europe and the United States. But accountability too needs to be reframed in electoral reform that defeats ‘winner take all’ first-past-the-post elections. And it needs confidence and a ‘yes we can’ attitude from local politicians too, prepared to accept responsibility and solve problems. In Eastleigh we like to think we have this attitude and that we problem solve for our community. But with proper local independence we could save millions of pounds of public money, improve skills, achieve better health outcomes and give better protection to our environment. Liberal Democrats should not be afraid to dismantle the centre, taking the risk and trusting local people. Let us be bold. 19 Demanding Devolution Devolution that we can see Cllr Janet Battye Group Leader, Calderdale Metropolitan Borough Council In Calderdale, “devolution” may mean two things – first from national government down to more local government, but also, secondly, from “big” (unitary) councils down to local town and parish councils, community groups and neighbourhoods. At the moment, we seem to be dependent upon decisions being taken in faraway places like Leeds and London, regardless of local views. Calderdale sits on the edge of “West Yorkshire” adjacent to Greater Manchester (Rochdale), Lancashire, Bradford and Kirklees. At least the new “Combined Authority” is called “West Yorkshire” with which many local people can identify, rather than “Leeds City Region” but it is another faceless large organisation with limited direct local involvement. People in Calderdale are interested in getting things done. That means an ability to take more decisions locally about spending on large infrastructure such as electrification of the railway line (and purchase of new rolling stock), superfast Broadband across the whole area (including the whole of the large rural, moorland areas), sufficient funding for flood resilience and protection works, and funding for social housing. At the moment, these are worked through either regional organisations (such as the Combined Authority) or regional offices of national government. In both cases, it feels as though we have limited powers of influence. There are detailed plans prepared but funding and implementation seem complicated and time-consuming. Similarly, for social and affordable housing, Calderdale Council did a stock transfer to what started off as a local Housing Association that has developed and expanded since 2000, became regional, and is now at the point of becoming more entrepreneurial and commercial. The challenge is to retain the local “preferred provider” relationship for the benefit of local people when they may see greater needs and more opportunities elsewhere. A Community Land Trust is being established in part of Calderdale and this 20 Demanding Devolution promises well for the future, especially if the positive experience of asset transfer of land and buildings can be capitalised on. The problem is that public funding, even for social housing initiatives, is difficult to get access to when it is administered through national government. Local people need to see things getting done – decisions taken on investment plans, and work done to put the developments in place. The Todmorden/Burnley curve has been rebuilt but trains can’t yet run on it because there is no rolling stock available (and apparently signalling has only been installed in one direction). Design work is moving ahead slowly on electrification, a new station in Elland, a third platform at Halifax and lifts to give access to the far platform at Hebden Bridge. Decisions and progress needs to be open, transparent and visible to local people. Whatever the regional body overseeing larger projects, there needs to be a direct cross-party democratic relationship with local people, and this needs to be more than symbolic. Modern technology can help with this as used by most public bodies nowadays. Local Councils’ Scrutiny Panels and Committees need to be part of the checks and balances, along with local people being able to intervene and challenge through measures like petitions and questions. At the most local level, “localism” has encouraged more attention to be given to potential power of communities, not only in asset transfer, but also Community Rights of Challenge and bidding to run services. We need to learn from the experience of this to encourage and support more community action. In Calderdale, we’ve had ward forums for several years, more community consultation and now a new petition scheme. Three areas are working on Neighbourhood Plans. But these opportunities aren’t being taken up by all communities. Less than half the area has Town and Parish Councils, although there are a number of 21 Demanding Devolution formally constituted community groups. There needs to be more support and investment in these. It needs to be made much easier to establish new groups, and more encouragement for them to set up or takeover important local services, such as libraries and children’s centres so that, rather than becoming part of larger groupings, they become more local and able to take on more power, responsibility and funding. It is on these foundations that the case for devolution must be based. A truly bottom up process where the demand for new powers is made, not by politicians in London or Leeds, but by the communities in Calderdale and other areas on the basis that it will make a tangible and visible change to the things they care about such as transport, housing, libraries or protecting their homes from flooding. Further, demand for new powers must not only come from our communities and also be accountable to them - through a properly democratic body with checks, balances and the ability for local people to see the decision being made and hold those responsible to account for its effects. 22 Demanding Devolution The opportunity is here and now Cllr Sue Derbyshire Leader, Stockport Metropolitan Borough Council Stockport as part of Greater Manchester (GM) is in the forefront of devolution within England, we were the first Combined Authority (CA) and the first to reach a devolution agreement with Central Government. The coverage of the deal has of course been dominated by the issue of a GM Mayor, which was a requirement from the Treasury for substantial devolution of power. This is I assume because they are a bit simple in Westminster/Whitehall and need a single point of contact. However the model outlined in the Devolution Agreement is very far from reflecting the arrangements in London or the Executive Mayor models in some councils. The Mayor will be the eleventh person on the Combined Authority; all strategic decisions will need to be made by two thirds majority (8). While the Strategic Planning Framework, which we had started before the Devolution Agreement, needs sign up from all 10 Councils. Accountability, at least in the first years is through existing councillors within their own areas and we are looking at how to give this greater transparency but it needs to be recognised that we will be delivering our outcomes locally through the councils; this agreement takes powers from Westminster not the local authorities. This demonstrates the way GM has worked in the 30 years since the Metropolitan County Councils were abolished and the then council leaders in GM decided there was value in working together and formed AGMA (Association of Greater Manchester Councils) out of which came the combined authority. What we have is 30 years of experience of, as 10 independent councils, seeing where we can agree, how we can overcome disagreements and when to recognise that for the best interests of our area and residents, working 23 Demanding Devolution together is a gain not a loss. This did not come easily or overnight and what works here may not work everywhere. Despite the popular image of Greater Manchester as a totally Labour area, it was not so long ago that Labour only led 5 out of the 10 authorities; there has always been the need to work across the political boundaries. What I do know is this challenges us to put our actions where our rhetoric has always been about working for the best interests of our communities. So has it paid off? GM is the most economically successful region outside of South East, with a local economy larger than Wales or Northern Ireland. The Devolution Agreement gives potentially significant powers to the GMCA: Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ £900 million investment over 30 years via the Earnback model. Franchised bus services. Increased powers to shape local rail and road policy (inc. motorways). Commissioning powers for skills spending to train local residents in the skills they need to access jobs in GM. Increased powers over business support budgets. £300 million housing investment fund - more than ten times the amount we have now. Power to create statutory spacial plan for GM. Early years pilot to better prepare young children for school. Scaling up of existing projects to tackle complex dependency, aiming to help 50,000 people find work. Further work on integrated health and social care budgets. Many of these would have seemed impossible to even contemplate a few years ago, but is not the end of our ambition. Approximately £22 Billion is spent by the public sector in GM and we see no reason why the CA should not have at least some influence over all of that. We as Councillors know our area 24 Demanding Devolution and our residents far better than any government department. I believe we can do far better with the resources that are available, and in this time of austerity, which is not getting any better for the foreseeable future; this is the only way to protect what we see as the essential outcomes we are trying to achieve. Given the challenges facing the public sector and the damage that will be caused to residents if we fail, it is clear we must take any opportunity to improve our chances of success. Ask residents in your area what are their problems and how they think they could be solved and you may get many answers but I am prepared to bet no one suggests that what is needed are more politicians. If devolution works, if residents see that local politicians can make a difference, that is when we might see a rejuvenation of local democracy and popular demand for the sort of democratic reforms that we as Liberal Democrats would like to see. However the opportunity we have in the here and now is one I never really expected after over 30 years in local government, we need to grasp it now if offered. 25 Demanding Devolution Pulling together in conurbations Cllr Richard Kemp CBE Group Leader, Liverpool City Council 110,000 people work in Liverpool City Centre. Of those just 55,000 live in the administrative area that we know as Liverpool City Council. If you are one of the 1,650,000 people who live in the Liverpool City Region it doesn’t matter whether you live inside Liverpool, St Helens, Sefton, Halton, Wirral or Knowsley; Liverpool is where you come for your big shop, to go to the theatre, to go to a museum, to take part in big cultural events etc. If you read this at or before the Liverpool Spring Conference 2015 think about the fact that a major facility like the Arena and Conference Centre is only viable in the city but it needs support from far wider afield. It works because as well as a conference venue there are shops, museums, hotels and restaurants in addition to the facility itself. Perhaps you live in Bootle, you may live in either Sefton or Liverpool councils. Say you live in Dovecot, You may live in Liverpool or Knowsley. Perhaps you live in Halewood but, is that Liverpool Halewood or Knowsley Halewood? The fact is that to most people the administrative boundaries under which we operate are meaningless. They live where they want to live and work and enjoy themselves where it is the most convenient for them. The UK is almost unique in not recognising this. In the rest of the World almost every conurbation has a big strategic council and smaller delivery councils. From Istanbul to Mexico City from Paris to New Delhi this is a standard pattern. Indeed for a few years it was a pattern in the UK. From councils like Strathclyde and Lothian in Scotland to the six metropolitan counties of England there was an acceptance that conurbations hung together and should work and plan together. All this was abolished by the Tories because of their hatred of the Greater London Council. 26 Demanding Devolution Clearly conurbations (and similar groupings of county areas) should be given greater discretion over a whole range of issues. The Liverpool City Region has a population about the same size as Northern Ireland and a GDP which is greater. They have a Parliament and we do not. What possible argument can there be that what is right for Ulster is not right for Liverpool? What should the conurbations do? Ÿ Transport Ÿ Land use planning Ÿ Economic Development Ÿ Inward Investment Ÿ All post 16 provision - university, education and training Ÿ Police & Fire Ÿ Waste Disposal Ÿ Primary Health Care Planning Ÿ Benefits for people in working age These are things which are strategic and which enable planning and delivery to be done effectively. Liverpool would not go abroad to attract inward investment. It would be done by one body working on behalf of the whole area. Roads do not stop at a council’s boundary. Transport systems transport people across a wide area, training needs to be directed at a range of opportunities. Primary healthcare needs to be both generic and specialised. These things can be done by bringing together services at a high enough levels to benefit from bulk and contiguity. What should they NOT do. Anything else! There is no rationale for taking service delivery options from the Unitary Councils to the Strategic Councils. Although there are clearly cost benefits to be had by bringing big functions together, there are financial disbenefits to be caused by creating bigger and bigger levels of delivery. How should the City or County Regions be governed? Democratically! The combined authorities are a useful start in bringing together the councils into a legally recognised partnership but they have no mandate. No-one has 27 Demanding Devolution asked the People of the Liverpool City Region their opinion on the long term future of their area and the big forward looking plans that are needed for it. Such plans can only come from legitimate political debate culminating in an election. I believe that new City and County Regions should be governed by new Assemblies on the basis of one member per 50,000 electors. These assemblies would be either: Elected by the single transferable vote mechanism across the area; or Based on the proportions achieved by the Parties across the region in the immediately preceding Unitary and/or upper tier elections. The leadership of the region should be provided on the Leader/Cabinet system. The region will replace any Combined authorities, Fire, Waste Disposal and Transport Authorities and will eliminate the posts of Police Commissioners. In most parts of the country the mayoral system has not delivered the goods in terms of enhanced performance or better services. In Liverpool there is strong evidence that the opposite is the case. Lastly let us shoot the elephant in the room. Everything I have said in this article is meaningless unless there is an enhanced level of fiscal devolution. He who pays the piper calls the tune. We will continue to dance to the tune of Whitehall mandarins unless we control much more of our own income and expenditure. We should therefore resolve to review methods of local taxation to allow them to include the tax take for a) all National None Domestic Rates and b) a proportion, to be established, of VAT. City and County Regions will also be allowed to levy local taxes to raise up to 5% of their budget with appropriate local measures to allow for local costs and spending pressures. We would need to establish a ‘Local Funding Commission’ to consider in greater detail these options and to establish a fair funding mechanism to 28 Demanding Devolution ensure that poorer areas will not lose out. It is clear that the conurbation level would help to smooth a significant amount of the inequality within its boundaries but we will still need a mechanism that prevents those areas with less of an ability to grow their economy and their taxbase to be left behind. There are good examples in other countries of how this could be achieved without removing each area’s incentive to invest in their area. When our country was truly great it was because all parts of the UK contributed. The ship builders of the Clyde; the wool millers of Yorkshire, the cotton weavers of Lancashire, the manufacturing giants of the Midlands were every bit as important as London and the South East. To be great we must all be great – our power will come by harnessing the strengths and opportunities of all parts of the country and not be a trickle down from one part. 29 Demanding Devolution Two-tier devolution – let’s get on with it Cllr Chris White Group Leader, St Albans DC and councillor, Herts CC I have teased people in the past with a simple example set of questions. There is a place in England with the following characteristics: Ÿ It has a population of around 1.1 million, slightly less than Estonia but bigger than Malta and Luxembourg combined Ÿ It has a University Ÿ It has a number of science based world class industries Ÿ It has an Anglican Cathedral Ÿ It has access to two international airports Ÿ It has its own local authority. Question: Should it have the devolved powers needed to run its own affairs? Liberal Democrat audiences always say yes. When asked to guess where it is they suggest Birmingham (actually slightly smaller in population terms) or Manchester (half the size). In fact it is Hertfordshire (of course). The Government has begun to recognise the importance of cities in terms of growth and therefore in terms of devolution. Cities are where many people work and which are efficient and compact. So invest in them – especially if the decisions about where and how to invest are taken locally – and we all benefit. There is nothing wrong with this agenda. But the idea is incomplete. The LGA set up an Independent Commission on Economic Growth and the Future of Public Services in Non-Metropolitan England which concluded, perhaps surprisingly, that non-metropolitan areas (the shires, smaller cities, rural and suburban areas) produce the majority of England’s growth. Hertfordshire, Buckinghamshire and Surrey, for instance, have Gross Value Added per fulltime employee at levels similar to Greater London – no other parts of England, including major conurbations, are in this category. 30 Demanding Devolution The report also – very significantly – warns that skills shortages are a problem and that transport infrastructure is stretched. In other words, some of these nonmetropolitan areas may well be prosperous but are not going to remain that way without public sector intervention to revamp the human and physical infrastructure. So Hertfordshire, and many areas like it, needs devolved decision-making just as much as any city or city region. But the thrust of past and present governments has tended to ignore this and shape the structures for devolution around the needs and geography of former metropolitan counties. Despite being in opposition in Hertfordshire, and despite being exasperated by the centralising tendency of the current Conservative administration, I find the case for my own county council to pick up devolved functions over skills, education and transport overwhelming. Moreover, it requires no new structures, nor meetings in figuratively smoke-filled rooms nor indeed a directly elected mayor. There is a council already up and running. There would need to be reform, however. The current council is controlled by the Conservatives but less than 50% of the electorate voted for them. The current centralisation tendency would be impossible if the seats reflected how people had voted. More importantly, we know from Rotherham, Newham and too many other places, the dangers of an ineffective opposition. People generally don’t vote for a one-party state. It’s just that our electoral system in many areas effectively ignores people who vote the wrong way. So STV needs to be introduced to local government elections as soon as possible. The second issue is the districts. People often breezily say that devolution of substantial powers requires local government to be tidied up and made more efficient, by which they mean (these days) the creation of unitary counties. 31 Demanding Devolution In cash terms, unitary counties would be much cheaper. In fact it would be even cheaper to have a single county covering all of England. But that is madness. Some of the supposedly efficient unitary authorities set up over the last decade have become hopelessly remote. Nor are they finding it easy to attract candidates for election: would you really want to stand for election if the council offices were fifty miles away? Local government reorganisation is not a necessary or even desirable condition for devolution to the top tier. But improved joint working is. A county council with a massively increased budget and powers is likely to appear overbearing to the next tier down, especially given the joint interest in some of the powers likely to be devolved. Some formalisation – even the creation of a district council senate to approve decisions made by the county council in relation to its new powers – could be an interesting and productive option. But let’s get on with it. 32 Demanding Devolution Want to kick-start the debate in your area? Go to the LGA devolution page for the latest thinking and resources to help you make the case in your community local.gov.uk/devolution Published March 2015 by the Local Government Association Liberal Democrat Group, 6th Floor, Local Government House, Smith Square, London, SW1P 3HZ
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