Grimsby not happy about devolution

Devolution revolution – is it all it’s cracked up to be?

The Chancellor confirmed last week that a deal had been agreed for Greater Lincolnshire, with a collaborative agreement in place stretching from the Humber to the Wash.

It’s already been greeted with accusations of bribery and blackmail from Caistor and Market Rasen MP Sir Edward Leigh.

But the Government was keen to push its credentials this week, with the Department for Communities and Local Government (DCLG) more than obliging when the Grimsby Telegraph asked for a chat on the topic.

Getting hold of press officers, never mind a Secretary of State, can be a problem normally, but not so when it came to the big D-word.

And I didn’t even have to call the Communities Secretary – he called me, from his mobile and everything.

Secretary Greg Clark stressed that there were “no downsides” to this devolution deal with no erosion of the current set-up – only more powers on top of it all.

The man in charge of George Osborne’s “devolution revolution” said he had been so impressed with Lincolnshire’s offer that he decided to bump the announcement up the waiting list.

But even he recognised the deal had a “uniqueness”, with the industrial engine of the Humber combined with what is principally a rural county – a combination not everyone believes sits naturally.

‘Huge moment’

The likes of Grimsby MP Melanie Onn and Scunthorpe MP Nic Dakin had pushed for a Humber Estuary devolution deal instead, linking the South Bank with Hull and the East Riding, but North East and North Lincolnshire leaders turned their attention south.

What is interesting about this yellowbelly formation, uniting a population of one million people, is what a vast area it combines.

Stamford in south Lincolnshire is almost as close to London as it is Grimsby, but yet now the two will be tied economically after Westminster handed the county control over a number of functions, including transport, infrastructure investment, health care and even prison services.

“This is a huge moment for Lincolnshire,” said Mr Clark, an advocate for devolution for more than a decade.

“It is the first deal we have done with a predominately rural area. It has got the important local authorities along the South Bank of the Humber and that is what makes it unique – that large rural area combined with an important industrial area.

“It deserves huge congratulations on beating many other areas who had prepared bids, as it managed to get to the head of the queue.”

The bumper £450 million devolution investment – a cash pot of £15 million annually for the next 30 years – will come on the proviso that all ten councils agree to the terms which includes an elected metro mayor for the region. Think Boris Johnson but with less panache.

Advocates for the deal say it could boost the area’s economy by £8 billion, provide 29,000 jobs and see 100,000 homes built.

Will it be enough money?

But the deal was not without its critics.

Ms Onn said, when broken down, the money equated to £15 per person every year and questioned whether it was enough to deliver the growth promised.

Infrastructure projects cost a great deal of money.

The transformation of the A160 at South Killingholme into a dual carriage superhighway comes with a £90 million price tag, and even the Immingham bypass, costing nearly £8 million, would have wiped out half the county’s new devolution budget for the year.

But yet, if the heavy infrastructure spending does have to come out of the devolution fund, that same cash pot would have to still stretch to pay for healthcare improvements, the upkeep of courts and the upgrading of flood defences, however.

The question is, will it manage to finance it all?

Mr Clark argued that the pot of cash allowed the “super authority” to be more inventive with the money.

“It allows them (the Lincolnshire councils) to leverage other money from investors,” he explained as he cut in and out of phone signal while he rode a train to his next meeting.

“This is money that wouldn’t have been available to the area. Without the deal, it simply wouldn’t be there. It can be used intelligently to encourage more investment in the area.”

Lincolnshire acted ‘shrewdly’

When the deal was announced, Conservative Cleethorpes MP Martin Vickers said it had been imperative North East Lincolnshire got in on the act sooner rather than later as the devolution packages on offer were getting “less generous” by the month. …”

http://www.grimsbytelegraph.co.uk/Devolution-revolution-8211-s-cracked/story-28969214-detail/story.html

Durham defers devolution deal

A multi-billion pound devolution deal for the North East is on the ropes after ANOTHER council raised concerns over the proposal.

Durham County Council’s cabinet on Wednesday decided to defer making a decision, following Gateshead Council’s decision on Tuesday to reject it.

The two authorities had previously signed up to the programme, which could unlock £3.4bn in job creation and skills training cash.

Both authorities have said they support “genuine devolution for the North East” – but councillors have argued that they don’t believe what is being offered matches up to that.

Durham County Council leader Simon Henig told councillors that fair funding for the region needed to be in place to make the deal work, adding that more time was needed to get the deal right.

Gateshead leader Mick Henry blamed the politicians in Westminster for the lack of a breakthrough.

He said: “Government needs to think again about how to address the issues of the North East and how they are going to be seriously and properly fair to us.

“I think it’s a real shame that they seem to want devolution to take place but aren’t prepared to be open minded.”

On Thursday, the leaders of the seven councils which make up the North East Combined Authority will meet to discuss the proposals.

They will in effect have four options – turn down the deal, agree the deal, agree the deal with conditions attached, or delay the deal.

The North East Liberal Democrats have called for the decision to be deferred to allow for further negotiations.

A spokesman said: “We recognise many of the concerns expressed about the current deal, including the requirement for an elected mayor, and the lack of say afforded to the public on this decision.

“We believe a decision should be deferred to allow for further negotiations with Government and we encourage NECA to explore this with a view to establishing whether a better deal with wider support is possible.

“We call for urgent cross-party discussions on how the devolution deal process can be taken forward with greater consensus.”

http://www.chroniclelive.co.uk/news/north-east-news/north-east-devolution-deal-takes-11085019

Financial Times exposes devolution anxiety amongst Tories

George Osborne’s “devolution revolution” has become the latest Treasury policy to run into trouble in the face of Tory opposition, piling pressure on to the chancellor as the row over his Budget drags into a second week.
Launching the latest wave of devolution last week — which extended plans to counties and cities in the south of England — the chancellor said during his Budget speech that “the devolution revolution is taking hold”.

But just days later a Conservative-controlled council decided to reject the devolution deal that Mr Osborne claimed had been agreed.

Cambridgeshire County Council voted overwhelmingly on Wednesday not to accept the East Anglian plans proffered by the Treasury, making it the latest in a string of councils to knock back the chancellor.

Mr Osborne is understood to have postponed a planned visit to East Anglia to launch the devolution deal after the local doubts became clear. Cambridge’s city council had already demurred.

The chancellor is facing pressure from Tory MPs to revise his plans. They have urged him to send out a signal to local councils that he understands that the deal for Manchester — his flagship devolution project — does not suit all parts of the country.

Many councils and Westminster Tories are unhappy about the chancellor’s insistence that devolved areas must install elected mayors.

Another Tory-run county council, Hampshire, withdrew its support for a deal in the Solent area earlier this week, while Cumbria County Council turned down a devolution offer earlier this month.

Gateshead Council also rejected a devolution deal earlier this week, a decision which leaves a hole at the heart of the planned North-East Combined Authority and could see the wider area’s plans called off altogether.
That risk intensified on Wednesday when Durham council, whose leader Simon Henig is also chair of the Combined Authority, deferred a decision about whether it would participate in the deal.

The Sheffield city region is pressing ahead with plans for a mayor although three of the nine authorities declined to participate fully, meaning the mayor’s writ will not run there.

An aide to Mr Osborne said on Wednesday that it was up to local councils how they structured their devolution deals, but elected mayors “bring local accountability to a particular area, and is a successful model”.
“If they don’t want to go ahead with that structure, then they don’t have to,” she said.

Not all the devolution deals are in trouble: a deal with the West Midlands is expected to go ahead, while Manchester already has an interim mayor.
The councils still have time to revisit the offer from Westminster by renegotiating the deals’ terms. Steve Count, leader of Cambridgeshire County Council, said he would renegotiate and return to the council with “the best deal I can get”. The council has until the end of June to take up any further offer, he said.

One of the party’s most experienced figures, Lord Tebbit, said on Tuesday that “we do not need an elected mayor for East Anglia”. The plan would “only raise costs [and] introduce another layer of government”, he said.

Jonathan Carr-West, chief executive of the Local Government Information Unit, a think tank part-funded by local authorities, said that councils voting against the devolution deals they were meant to be part of “reveals a fragility in the process”.

The secrecy surrounding the deals and last-minute changes driven from central government “have left many councils feeling bounced into deals they are not convinced by”, he added.

Individual local authorities risked finding themselves isolated and financially exposed if they were left out of successful combined authorities, but if enough councils voted against deals “it risks derailing the whole devolution agenda which we desperately need to improve public services and grow local economies”, Mr Carr-West warned.”

http://www.ft.com/cms/s/0/3b859fec-f0f8-11e5-aff5-19b4e253664a.html

Who might be Mayor of Ply-Tor-Dev-Set?

We have Leaders of Plymouth, Torbay, Devon and Somerset all probably quite sure they should be MegaLeader. Add to those district council leaders such as Diviani, who have ideas above their station, and it becomes a heady mix!

Of course, an Independent could pop up, maybe someone already in good standing or a known campaigner with a broad appeal.

No, Owl will not be standing – sorry! Though, of corse, Owl could change its mind …

“Idiotic idea” of Mayor for East Anglia

“County councillors have sent a clear message to the Government that its current devolution deal was “not acceptable” – with a powerful new mayor for the region opposed by politicians on all sides.

There was an almost unanimous vote of approval at Shire Hall yesterday for a motion that said the devolution proposal for Cambridgeshire, Norfolk and Suffolk “is not acceptable to this council” in its current form.

Councillors stopped short of killing the deal dead altogether, with an amendment by Cllr John Hipkin ensuring Cambridgeshire remains at the negotiating table with Whitehall.

But the bulk of councillors who spoke on the issue in more than two hours of debate left their fellow councillors in no uncertain terms that they were against the deal.

There was a general consensus across the chamber that devolution should be welcomed in principle – but the subject of a directly elected mayor across all three counties and 23 councils gained no support.

And this looks like being the key issue in the devolution debate, with UKIP leader Cllr Paul Bullen telling councillors yesterday that council leader Cllr Steve Count had informed group leaders the mayor aspect of the deal was non-negotiable.

Labour, Lib Dem and UKIP councillors in particular all suggested a devolution deal covering Cambridgeshire and Peterborough made more sense – with Cambridge City Council willing to share its considerable lump of business rates if a deal can be agreed across this geography, Labour leader Cllr Ashley Walsh said.

“This is a shotgun wedding and George Osborne hasn’t even had the decency to take us out to dinner beforehand,” Cllr Walsh added.

“You would have more chance of finding the Fenland tiger than someone who supports a regional mayor across East Anglia.”

Lib Dem councillor Lucy Nethsingha said the deal looked as if it had been “drawn up on the back of a cigar packet in the Treasury” and had “very little to offer Cambridgeshire”; Cllr John Williams said it was an “idiotic suggestion that you can have one person running the infrastructure for this area”, while Cllr David Jenkins said the council “should be selfish and look after the interests of Cambridgeshire” rather than partnering with Norfolk and Suffolk. …”

http://www.cambridge-news.co.uk/County-councillors-parties-voice-concern-8216/story-28972131-detail/story.html

Devolution continues to cause chaos

Chesterfield Borough Council has called a second meeting to consider its devolution options, in what the local authority says is “a bid to prevent tax payers’ money being wasted on an unnecessary legal challenge”.

The move comes after Derbyshire County Council earlier this month said it had taken legal advice from a QC about legal action over Chesterfield’s plans to join the Sheffield City Region as a full member.

Chesterfield also intended to become a non-constituent member only of a potential North Midlands devolution deal, of which Derbyshire is part.
According to Chesterfield, the county council had demanded that the borough council reconsider its decision, on the basis that the report which councillors originally considered should have included an equality impact assessment.

Chesterfield said its report followed a similar format as every other district and borough council in Derbyshire which took devolution deal decisions, and no other council – including the county – had published an EIA. It noted that Derbyshire had only issued a legal challenge against Chesterfield.

The second meeting will be held at 5 pm on 6 April.

Cllr John Burrows, leader of Chesterfield, said: “The only people who benefit from judicial reviews are the barristers presenting the cases. We could have opposed this legal challenge but that would have cost Derbyshire’s tax payers a lot of money and wasted a huge amount of time and effort.

“So we have decided to look afresh at our 3 March decision but this time taking into account the full Equality Impact Assessment that we have now developed and other developments that have happened since the original decision was taken, including the decisions taken by other councils across Derbyshire.”

Cllr Burrows added: “The council will then make a fresh decision on what delivers the best outcomes for both Chesterfield and Derbyshire’s residents and businesses. This will then go to public consultation before the Government makes a final decision.”

http://localgovernmentlawyer.co.uk/index.php?option=com_content&view=article&id=26418:chesterfield-calls-second-meeting-in-bid-to-see-off-legal-action-over-devolution-plans&catid=59&Itemid=27

LEP statistics – not good news

These were in notes for Editors but are too important to languish in notes:

Notes for Editors
39
Number of Local Enterprise Partnerships (LEPs) in England

£12bn
Local Growth Fund available to LEPs between 2015-16 and 2020-21

Up to 419,500
Jobs to be created by LEPs’ Growth Deals according to LEPs

£7.3 billion
Amount of the Local Growth Fund which has been allocated as of March 2016

£2 billion
Annual funding to LEPs from the Local Growth Fund from 2015-16 to 2020-21

£627.5 million
Largest Growth Deal awarded to a single LEP: Leeds City Region

45% to 80%
Range of private sector board membership in LEPs

87%
Percentage of LEPs for which we were unable to obtain information on senior staff remuneration from publicly available accounts.

68%
Estimated real-terms reduction in local authority net expenditure on economic development between 2010-11 and 2015-16

42%
Of LEPs say that they do not publish a register of interests

49%
Of LEPs agreed or strongly agreed that there are clear lines of accountability from the LEP to the local electorate

£85 million
Estimated underspend on Local Growth Fund projects for 2015-16

5%
Percentage of LEPs agreed or strongly agreed that resources available to LEPs are enough to meet the expectations placed on them by government

8
Median number of full-time equivalent staff employed by LEPs.

https://www.nao.org.uk/press-releases/local-enterprise-partnerships/

National Audit Office raises concerns about Local Enterprise Partnerships

Nice to see that the NAO agrees with Owl!

“The role and remit of Local Enterprise Partnerships has grown significantly and rapidly since 2010, but as things stand, the approach taken by the Department of Communities and Local Government to overseeing Growth Deals risks future value for money, according to the National Audit Office.

The government encouraged the establishment of LEPs as private sector-led strategic partnerships which would determine and influence local growth priorities. With the advent of the Local Growth Fund, the amount of central government funding received by LEPs is projected to rise to £12 billion between 2015-16 and 2020-21 via locally negotiated Growth Deals. The Department, however, has not set specific quantifiable objectives for what it hopes to achieve through Growth Deals, meaning that it will be difficult to assess how they have contributed to economic growth.

Today’s report found that LEPs themselves have serious reservations about their capacity to deliver and the increasing complexity of the local landscape. To oversee and deliver Growth Deal projects effectively, LEPs need access to staff with expertise in complex areas such as forecasting, economic modelling and monitoring and evaluation. Only 5% of LEPs considered that the resources available to them were sufficient to meet the expectations placed on them by government. In addition, 69% of LEPs reported that they did not have sufficient staff and 28% did not think that their staff were sufficiently skilled. The NAO found that LEPs rely on their local authority partners for staff and expertise, and that private sector contributions have not yet materialised to the extent expected.

In addition, there is a risk that projects being pursued will not necessarily optimise value for money. Pressure on LEPs to spend their Local Growth Fund allocation in year creates a risk that LEPs will not fund those projects that are most suited to long term economic development. Some LEPs reported that they have pursued some projects over others that, in their consideration, would represent better value for money. LEPs have also found it challenging to develop a long-term pipeline of projects that can easily take the place of those that are postponed.

The Department has acted to promote standards of governance and transparency in LEPs, and all 39 LEPs had frameworks in place to ensure regularity, propriety and value for money by March 2015. The Department, however, had not tested the implementation of such assurance frameworks at the time that Growth Deals were finalised. The NAO found that there are considerable gaps in LEPs’ compliance with the Department’s requirements in this regard, and that the availability and transparency of financial information varied across LEPs.

LEPs’ role has expanded rapidly and significantly but they are not as transparent to the public as we would expect, especially given they are now responsible for significant amounts of taxpayers’ money. While the Department has adopted a ‘light touch’ approach to overseeing Growth Deals, it is important that this doesn’t become ‘no touch’. The Department needs to do more to assure itself that the mechanisms it is relying on ensure value for money are, in fact, effective.”

Amyas Morse, head of the National Audit Office, 23 March 2016″

https://www.nao.org.uk/press-releases/local-enterprise-partnerships/

Devolution and “more jobs” – smoke and mirrors

“The following statement by the Core Cities Group is fairly typical of the statements of intent by advocates of devolution:

“Grow the whole of the UK economy, contributing to the elimination of the deficit, for example by generating the potential £222 billion and 1.16 million extra jobs across the eight English Core Cities alone by 2030, which independent forecasts demonstrate is possible with more devolution. That’s the equivalent of adding Denmark to our economy.”

There is neither realism about the growth outcomes of devolution nor much concern about generating particular benefits for local economic stakeholders, such as residents, local workers, and business owners. NEF’s work on local economies has shown that if cities are to ‘meet their full economic potential’13 in terms of benefiting local economic stakeholders, this will involve:

Supporting people to be financially strong individuals in terms of income-to-cost-of- living ratios and being able to have savings.

Developing a strong local business sector with supply chains connecting small enterprise to big business.

Making more efficient use of distribution of resources, with positive local circulation of money, low levels of wasted resources in local supply and production systems, a high level of staff retention in jobs, and falling levels of inequality and poverty.

In the documents, these sorts of economic outcome for local people are only rarely discussed. For example, reducing poverty is mentioned four times in a total of 1,129 arguments and cost of living is not mentioned at all.

This is a gap in the debate. ‘More jobs’ is the overwhelming focus,14 rather than ‘better jobs and wages’.”

Click to access 1888588d95f1712903_e3m6ii50b.pdf

“Political interference” in Cambridgeshire devolution deal

“Councillor Paul Bullen told Lord Porter his attempts to postpone Tuesday’s vote at Shire Hall over whether Cambridgeshire should sign up to devolution involving Norfolk and Suffolk was “not within your remit”.

Lord Porter contacted councillors in Newcastle and Lincolnshire yesterday by email to ask if they could contact members in Cambridgeshire “from your respective groups” to see if they could get the debate put off until after Easter.

Lord Porter said: “I will endeavour to get Greg Clark to meet with all of them as soon as the Easter break is over to try to make sure that any questions they have can be answered before they make their decision”.

But Cllr Bullen is furious that Lord Porter has intervened and earlier today told him: “As far as I’m concerned it is not within your remit as chairman of the LGA to attempt to alter, in any way, shape or form, decisions already made by democratically elected councillors.

“All members are entitled to table motions and your deliberate attempt to sway the way any debate will go is political meddling of the worst kind.

“Clearly, and in my personal opinion, this is a politically motivated e-mail which is neither warranted nor wanted by the majority of members at Cambridgeshire County Council.

“Indeed, I doubt that you have even read the devolution deal on offer for, had you done so, you would have realised what a terrible deal it is for Cambridgeshire.”

He accused the Lincolnshire peer of an “obvious attempt to interfere in the democratic process at Cambridgeshire County Council”.

Cllr Bullen told Lord Porter: “I believe that you have acted ‘ultra vires’ by sending this e-mail in the first place and I will be making a formal complaint regarding your conduct.”

In his email Lord Porter said: “I think we all agree that the devo deals announced are a step in the right direction and that we all agree that the leading groups pulling the deals together need to make every effort to keep all of their council members on board.

“I’m sure we all agree that if members decide for good reason that the deal is not worth pursuing then this is a position we should support.

“In the case of the Cambs deal I’m not sure that anyone is yet in the position to make a decision either way and this brings me to the point of this email.”

Lord Porter added: “I think a decision to reject the offer, so soon after it has been made and in the absence of any real chance for all of the relevant information to have been shared, risks bringing the whole agenda into disrepute.”

Thirty four devolution proposals are being considered across England.

Lord Porter said last week: “To build desperately-needed homes, create jobs, provide the dignified care for our elderly and boost economic growth, all councils need greater freedom from central government to take decisions over vital services in their area.

“These new deals and extensions to existing deals must signal a return to the early momentum in which similar deals were announced last year. This will clearly require different approaches for different areas, including how they are governed.”

Ironically the chief executive of the LGA is Mark Lloyd – until recently chief executive of Cambridgeshire County Council.

Devolution: more concerns

” … The All-Party Political Group on Reform, Decentralisation and Devolution concluded that a significant shift of power from national to local level is essential as part of a coherent and ambitious approach to devolution. This would need to include much greater fiscal autonomy for local areas to overcome decades of centralisation.
Today’s Devolution and the Union paper warns that greater localism can only succeed if members of the public believe their local areas – not Whitehall – are leading it.

As a result, the reports concludes that there should be no limits put on what might be devolved in England, but agreement on what functions remain at a UK level within a “reserved powers” model, similar to the approach adopted with the Scottish Parliament. …”

http://www.publicfinance.co.uk/news/2016/03/kerslake-calls-radical-and-far-reaching-devolution

…‘‘The devolution of power to local areas in England must not be seen as an end in itself but a process aimed at tailoring local business environments to make them better places for business growth,’’ saidTerry Scuoler, chief executive of EEF.
‘‘Ultimately, local decision makers and businesses will need a sustained dialogue on how they can make their local areas places in which businesses can prosper.’’
‘‘To date, however, business has felt disengaged from the process of devolution. For it to succeed in England, business must be fully signed up as partners in the negotiation and delivery of devolution deals.’’
‘‘This must include a key role for LEPs and a focus on areas where tangible outcomes can be delivered in the near term, especially in transport infrastructure,’’

SME Insider, October 2015

East Devon Alliance evidence to National Audit Office on devolution

“Local Enterprise Partnerships accountability and value for money
Comments by East Devon Alliance submitted 18 March 2016

1. Lack of regional logic to LEP grouping

1.1. The key problems limiting growth in the South West are inadequate communications: road; rail; air; broadband and mobile telecoms, through the narrow peninsular. These are limited by a topography that becomes progressively more challenging the further west you go. Yet, instead of treating the peninsular as a single entity, it is split. Cornwall, which is already a unitary authority, has gone it alone and already been given limited devolved powers covering: bus services and local investment; and integrated health and social services. Devon and Somerset LEP have just submitted a bid which is much more ambitious.

1.2. What is the value and regional logic underpinning these LEP groupings?

2. Constitutional Issues and lack of engagement

2.1. “Heart of the South West” (HOTSW) (Devon and Somerset including Plymouth and Torbay unitary authorities) LEP lodged a bespoke articles of association (constitution) and became incorporated at Companies House on 6 Feb 2014; adding clauses, for example, that removed the asset lock, fundamental to Community Interest Companies (CIC), in certain circumstances.

2.2. It is a private CIC company run by a board of 21 Directors who are self-selecting. Six of these are elected councillors from six of the 17 local and unitary authorities across the two counties. There are only four women and no ethnic minorities on the board. No minutes of meeting have been available in the public domain until the last few days. First information began to filter out in Sept 2015 with publication of a statement of intent. Even politically savvy individuals are essentially still in the dark. Little publicity has been given to the submitted bid so far.

2.3. County Councillors, not part of the controlling group, claim that the first they knew of what was going on was around October 2015 when final proposals were debated. They certainly knew nothing at the time the LEP held its first meeting in July 2012. One Independent Councillor tabled an amendment at the October 2015 meeting to allow for public consultation. This seems to have been accepted but no consultation had taken place before the bid was lodged with Central Government. Local district councillors were similarly kept in the dark. In East Devon District Council it seems that the leader, who is a LEP Director, was given fully delegated authority to negotiate. He may have reported to cabinet but not to members. Local authority whipping, with highly constrained debate in some councils, ensured that all councils signed up to the deal. There has been no engagement with the public. The residents of the two counties are not even considered stakeholders in the company.

2.4. How accountable and transparent has this exercise been? What negative effect has it had on democracy?

3. Governance and transparency

3.1. In a 2011 survey, 47% of people felt that UK local government was affected by corruption. We, in East Devon, are particularly sensitised to this possibility following a Daily Telegraph sting operation in 2013 when a local councillor, one time Chair of the local business forum, claimed he could help to secure planning permission, but that he didn’t come cheap. He eventually resigned.

3.2. It seems inescapable that Directors of LEPs will, and should, have close connections to the businesses in their region; and the HOTSW constitution contains the usual requirements to declare interests and conflicts of interest. There appears, however, to be no scrutiny or public audit mechanism to oversee this, and according to the 17 November minutes “Feedback from business indicates that they are not very concerned about governance”.

3.3. To date we have found no details of contracts or service level agreements made. We have been unable to discover how much is being spent on salaries, pensions, admin, etc. Yet HOTSW has been given £65.2M in the second round of the growth deal. HOTSW has a PO Box number but no address

3.4. Is an adequate system of checks and balances in place to scrutinise, account for and control LEP expenditure?

4. Representation

4.1. The business enterprises, other than utilities and health, represented on the Board are Defence (2), Universities (2), Developers (2 or 3 depending how you classify a planning lawyer).

4.2. How effectively can this LEP represent and promote the interests of the small businesses typically found in a rural area (tourism, agriculture, distribution, small builders etc)?

5. Is the proposal soundly based and good value for money?

5.1. The bid to Central Government made by “Heart of the South West” is to build 179,000 more new homes in the next 15 years; boost productivity and create 163,000 new jobs, adding around £20 billions to the local economy through better jobs and higher skills; improve roads and railways, reducing travel time; and reshape the health and care system to meet social, economic and financial pressures. This represents a planned annual growth of 3%+ which by their own admission even Bristol, Birmingham and Nottingham collectively have not achieved in the last 15 years. These three cities have a similar population to the rural one of Devon and Somerset. Regrettably, in Devon and Somerset, we start from an un-competitively low base with productivity only 80% of national levels. Hinkley Point C, located in the north east corner of Somerset and well connected to the Midlands, is claimed to be one of the Golden Opportunities to make this transformation. The gain in jobs across the whole UK from this project is estimated at 25,000, well short of the 163,000 quoted above. Hinkley Point C is years behind schedule and slipping.

5.2. Overall the proposal is lightweight, lacking detailed evidence, risk analyses, targets, critical success factors etc.

5.3. Many of the 17 Local Authorities in the two counties have just gone through a painstaking analysis of housing and economic growth assessment. They have conducted formal Strategic Housing Market Assessments which have been scrutinised in public by a Planning Inspector. These appear to have been replaced by assumptions lacking a realistic economic assessment.

5.4. What is the value for money of this duplication of effort concerning growth assumptions? Is the bid of 3%+ annual growth over 15 years based on realistic and sound economic assumptions, given that all the other LEPs across the country are making similar assessments and projections for long term UK growth are much lower? How is success to be monitored?

5.5. As a matter of curiosity we have examined another bid from D2N2 Local Enterprise Partnership (promoting economic growth in Derby, Derbyshire, Nottingham and Nottinghamshire). There appear to be some marked similarities to the HOTSW bid.

5.6. To what extent is effort being duplicated across the country by LEPs all essentially doing the same thing? Is this good use of scarce public funds?”

Austerity so we can subsidise Hinkley C – thanks, George

It is totally right that south-west Tory MPs should have grave reservations about cutting payment to severely disabled people.

But not one of the has spoken out about how devolution, our Local Enterprise Partnership and Hinkley C nuclear plant and the decision to bail out EDF with LEP money will affect ALL of us negatively in the south west, with disabled people then getting a double whammy.

Hinkley C £22 bn ” poison pill” for UK

“The Hinkley nuclear power deal contains a “poison pill” which could leave taxpayers with a £22bn bill if a future UK government closed the plant before 2060, according to an official document seen by the Guardian. .

… This is a dreadful agreement for the nation,” said Prof Catherine Mitchell, an energy policy expert at the University of Exeter. “The government is already paying a high price, index-linked for an incredibly long 35 years. This should be more than sufficient for a professional, business contract.

“The £22bn ‘poison pill’ effectively reduces the risk to zero for EDF and its backers, which is great for them. But from an outside perspective, it smacks of desperation.”

“There could be so many reasons over 35 years that you would want to close the plant,” she said, including rising costs, changes to the UK’s energy system or loss of public confidence. …

…Former Conservative energy secretary Lord Howell has criticised the Hinkley dealas “one of the worst deals ever” for British consumers and industry and has protested against “endless government guarantees for risk-free returns to the investors”.

Tom Burke at thinktank E3G, a former special adviser to three Conservative environment secretaries, said: “Why would a Conservative government want to buy 35 years of electricity ahead of time? They are supposed to believe in the market. But they have tied themselves in knots and now it is too embarrassing to untie it.”

The UK government argues that new nuclear power is essential to provide large amounts of reliable, low-carbon energy.

But Mitchell said: “Energy economics are changing rapidly and so the momentum is towards decentralised, smart and flexible energy systems. It is moving away from large, inflexible power plants like Hinkley. If it ever gets funded, it will be a white elephant before it is even finished and this government, with this £22bn ‘poison pill’, will have tied the next generation into paying for it, for no reason that I can understand. If it is simply political saving face, it really is pitiful.”

http://www.theguardian.com/uk-news/2016/mar/18/hinkley-point-c-nuclear-deal-22bn-poison-pill-taxpayer

French government to bail out EDF – south-west to do the same via its Local Enterprise Partnership

Not real money from French government – just taking more shares instead of dividend. Real money from the south-west to prop up the company so it can charge us three times the going price for electricity for 60 years – assuming the already out-of-date nuclear reactor ever gets built.

Still, those members of our LEP board with nuclear or allied industries (several of them) will be mighty relieved. Though a Brexit could throw thousands of spanners into the works.

http://www.theguardian.com/uk-news/2016/mar/17/french-government-edf-united-front-hinkley-point-money-nuclear-plant-union

Daily Telegraph works out that devolution is undemocratic and unaccountable

“Voters don’t want them, but the march of the mayors is now unstoppable
George Osborne is forcing local devolution upon English cities and regions that have already declined it

“In Bertolt Brecht’s poem The Solution, he imagines the fury of a Soviet commissar when a vote goes the wrong way. “Would it not be easier,” he muses, “to dissolve the people, and elect another?”

George Osborne must have had similar thoughts four years ago when he asked 10 cities, in a referendum, if they’d like a directly-elected mayor. Nine said “no”. It was the wrong answer – as they are now finding out.

In his Budget this week, the Chancellor told us more about his plan to correct the misguided souls of Birmingham, Coventry, Manchester and Sheffield. Local authority chieftains are being offered more powers (and, doubtless, accompanying pay rises) on the condition that they accept a mayor.

The Chancellor has promised that he, personally, will “not impose this model on anyone” because his new municipal friends will do the imposing. But he has said he will not “settle for less” than the mayors which the voters so ungratefully rejected. More local democracy is coming, whether the public want it or not.

It’s hard not to admire his audacity. Soon, all nine of the cities which rejected the offer of a mayor in referendum will have one anyway. Groups of councils are given extra powers – over areas like housing and policing – in return for accepting Osborne’s mayor.

When a deal is struck, it allows him to say that “Greater Manchester has agreed to have a mayor” – when the people of Manchester have had no say in the matter whatsoever. He is referring to local politicians. In this way, the Chancellor has been able to force regional devolution upon an England that really doesn’t want it – and bring fundamental change in our democracy with no real debate.

As ever, with George Osborne, there is a political agenda. The Tories are weak in the north of England and he wants to reverse this by positioning himself as the creator of a “Northern Powerhouse” and striking alliances with Labour mayors. Then come the cuts: his Budget earmarks 2019 as a year of fiscal terror with more austerity than any year so far.

Devolution means that local authorities will help him swing the axe; the more they control, the more cuts they’ll make. But they don’t protest. We’re seeing the emergence of Osborne’s Law: that no local government ever refuses the offer of more power.

The Chancellor has a great love of US politics, and is beginning to apply it to Britain. We are seeing US-style city mayors even in places like Lincolnshire and the West of England, which aren’t cities.

We’re also seeing US-style pork barrel politics, a practice whereby the Chancellor rewards his allies by granting public money to their pet projects.

The appendix of his Budget book yesterday listed the gifts from the new Court of King George. For Birmingham (whose council has agreed to a mayor) a £14 million “innovation centre”. To Bristol, similarly compliant, a new junction on the M4 and £620,000 for a “Brunel Project”. It all underlines the unwritten rule of this Government: if you’re good to Georgie, Georgie’s good to you.

As Nigel Lawson once observed, the worst mistakes in politics are made when there is a cross-party consensus: it means the ideas are not being properly probed, and sloppy thinking can become sloppy policy. So it is with mayors. It was a Labour idea, later adopted by the Tories and also endorsed by the Liberal Democrats – so instead of debates, we have had an orgy of mutual congratulation. Aside from a few caustic remarks from the Communities Select Committee, no one has pointed out the flaws in this radical remake of English local government.

Which is odd, because the flaws are perfectly evident to the voters who tried to stop all this when given the chance. Since 2001, there have been 50 mayoral referendums, of which just 15 agreed to mayors. Many have come to regret it. The characters who scrape through are seldom adverts for the project. Mayors have ended up embroiled in scandals ranging from electoral fraud (Tower Hamlets) to the theft of ladies’ underwear (Scunthorpe). The Tories fantasise about populating the provinces with little Boris Johnsons. But the experience of local government tends to be less than encouraging. No matter how beautiful the political theory, decent mayors are hard to find in practice.

There are, of course, examples of brilliant local government leadership – chiefly in Manchester, upon which Mr Osborne’s plan is based. But there’s a limit to how far the Manchester template can be replicated. The Chancellor’s latest idea this week was a Mayor for East Anglia, a wildly and gloriously disparate region.

Businesses in Cambridge have tried to point out the flaw: they compete on a global, not a regional, stage. They don’t need or want a new regional bureaucracy. But the Chancellor wants it, and other parties want it, so it’s happening.

Then comes the problem of accountability: every councillor in Manchester City Council is a Labour one; every councillor in Mid Sussex Council is Tory. There are other huge political imbalances in town halls across the country, because every party struggles to keep a genuinely national presence.

Then there’s the decline of the local press, which also raises questions about scrutiny: there is now just one dedicated education correspondent left in Scotland, for example. There’s all too much to write about: the rise of educational inequality has been one of Scotland’s worst national scandals.

Not so long ago, Scots and the Welsh were being told what England is being told now: that UK government is broken, power needs to be devolved, local is always better.

Almost two decades later, you can search in vain for any public service that is better than in England. NHS Wales has been a disaster. New politicians tend to hoard the powers which have been passed down to them. So when Tony Blair was granting voters the choice of schools and hospitals they used, politicians in Edinburgh and Wales kept the power for themselves. This is the paradox: Scottish parents and patients have less power, because of devolution.

At least, before all of this, the Scots and the Welsh had a proper debate and a referendum. England has been denied a debate, and the results of its referendums have been ignored. The march of the mayors is, now, unstoppable. England’s only option is to hope that they work.”

http://www.telegraph.co.uk/news/politics/georgeosborne/12197321/Voters-dont-want-them-but-the-march-of-the-mayors-is-now-unstoppable.html

Thoughts on Hinkley C and Brexit

If Britain decides to leave the EU will French workers at Hinkley C have to go through immigration procedures to be allowed to work there? Will they need visas every time they cross the Channel? Will they be economic migrants?

Will Brexit push up costs in the supply chain?

With all the LEP spin about how great the project will be (for them personally in some cases) is anyone considering these problems?

Cambridgeshire And Pererborough County Councils smaller parties align to stop devolution

“An alliance of smaller parties on Cambridgeshire County Council looks set to throw another spanner in the works of George Osborne’s devolution plan for East Anglia.

The chancellor used today’s Budget speech to confirm the widely speculated ‘Eastern Powerhouse’, with a directly elected mayor overseeing almost £1 billion of investment across Cambridgeshire, Norfolk and Suffolk.

But the News can reveal that county councillors are set to become the third major player in the county to reject the Government’s devolution offer.

No party has overall control at Shire Hall, with Tory council leader Cllr Steve Count having only agreed to continue further discussions with Whitehall, after consultation with other group leaders.

And the leaders of Labour, the Lib Dems and UKIP have all announced they are set to reject the plans, and have demanded a special meeting of full council to discuss the proposals early in April.

And Labour leader Cllr Ashley Walsh said independent group leader Cllr John Hipkin was also minded to reject the ‘Eastern powerhouse’ deal – potentially giving an overall majority of councillors voting against the proposals.

It is also thought a similar alliance of opposition is being coordinated by the smaller parties on Peterborough City Council, while there were reports this morning of a ‘town hall backlash’ cross Norfolk and Suffolk over the plans, which would come with a directly elected mayor.

“‘George Osborne has managed to unite virtually everybody against these ridiculous devolution proposals,” said Cllr Walsh.

“The business community from the Cambridgeshire and Peterborough local enterprise partnership to the chambers of commerce do not support the plans. The public are rightly sceptical of an expensive mayor with yet another layer of local government.

“The biggest problem in Cambridgeshire is how to deal with our county’s massive inequality. Cambridge needs to be allowed to grow to make the city affordable once again but the success of the south of the county needs to be shared equally with the impoverished north of the county.

“But the devolution proposals give us no guarantee that any of the small budget would be directed to making the county equal by giving it the housing, skills and infrastructure investment it actually needs. For the financial and democratic cost of a barmy system of a mayor and combined authority, the scraps currently being offered are just not worth it.

“These are shoddy proposals drawn up on the back of a fag packet. They have been rushed through in the space of about a month simply because George Osborne wanted something nice to announce in his sixth austerity budget.

“The government should go back to the drawing board and spend an appropriate amount of time building up support for a sensible and costed devolution package that will actually support the economic development of Greater Cambridge and East Anglia more generally. So far, they have totally failed.”

Lib Dem leader Cllr Nethsingha was similarly outspoken, telling the News: “The Liberal Democrat group on the council has made its opposition to the proposals for a new layer of government with an elected mayor very clear. We do not believe that these proposals have anything to offer Cambridgeshire.

“The amount of money being offered for infrastructure is tiny in comparison with that available through the City Deal.

“The governance proposals are disastrous and would lead to the people of Cambridgeshire having no control over the transport and planning decisions in their local area.

“We have seen from the public interest there has been in many of the City Deal proposals that the public want to be involved in decision making. This mayoral proposal would shut people out, and we cannot support that.”

UKIP group leader Cllr Paul Bullen agreed it was right that Cllr Count had agreed to bring these discussions in front of councillors.

But he added: “On the face of it at the moment myself and my group are not supportive of the devolution deal, because we don’t think it does anything for Cambridgeshire.

“But more importantly, from a UKIP point of view, we believe it’s more centralisation it actually puts not just one but two further layers of bureaucracy in.

“You’d have all the associated costs of running this cabinet, and then you’d have a directly elected mayor above that.

It’s not localism – it’s centralisation as far as I’m concerned.”

On the county council currently there are 30 Conservative councillors and a total of 38 from other parties – 14 Lib Dems, 12 from UKIP, eight Labour and four independents.

Cambridge City Council and the business-led Greater Cambridge Greater Peterborough local enterprise partnership have also rejected the deal.”

http://www.cambridge-news.co.uk/George-Osborne-announces-East-Anglia-devolution/story-28934753-detail/story.html

Success! LEP produces retrospective minutes AND an agenda!

Here is the agenda for what they discussed yesterday:

Click to access LEP%20Board%20Agenda%2C%2015%20March%202016_0.pdf

Not surprisingly it began with:
“Presentation Nuclear / Hinkley Update – David Hall and Paul Taylor”

First devolution judicial review

Derbyshire going to court to stop Chesterfield joining Sheffield devolution deal:

http://localgovernmentlawyer.co.uk/index.php?option=com_content&view=article&id=26280:derbyshire-to-consider-legal-action-if-borough-joins-neighbouring-city-region&catid=59&Itemid=27