Posted by

East Devon Watch

Posted on

27 Sep 2016

Posted under

Devolution, Economy, Local Enterprise Partnership

Who wants to go to the LEP annual conference – tickets here

DATE AND TIME
Mon 3 October 2016
13:30 – 18:00

LOCATION
Sandy Park
Sandy Park Way
Exeter

“Heart of the South West LEP’s Annual Conference”

We would like to invite you to register for the HotSW LEP’s Annual Conference, which this year will be held in the afternoon of Monday 3rd October at Sandy Park, near Exeter (EX2 7NN).

The Conference is an opportunity to meet with the wider LEP partnership and to network with other stakeholders. It is a free event that is aimed at the private, public and third sectors, and that will include an update on present economic issues for our area – including Brexit and Devolution – and a look at what is planned for the future. This year the focus will be around Productivity and particularly in relation to the ‘people’ and supply chain elements.

We are expecting that demand will be high and recommend that you reserve your place early. To this end the registration link above is to reserve your place at the Conference. Once registered and nearer the date, you will be sent a link to book your preferred seminar sessions and optional attendance at the AGM.

The following is a guide for the afternoon:

1.30pm to 1.45pm – Arrival at Sandy Park – Registration and refreshments

2pm – Conference starts, followed by seminar sessions

5.00pm – Conference closes

5.00pm – 5.15pm – Refreshment break, registration for those attending just for the AGM

5.15pm – 5.45pm – HotSW LEP’s AGM

5.45pm – Finish

Please note that the refreshments that will be provided will be tea / coffee with biscuits etc.”

https://www.eventbrite.co.uk/e/heart-of-the-south-west-leps-annual-conference-registration-26536396075?aff=eiosprexshrefabk&ref=eiosprexshrefabk

Posted by

East Devon Watch

Posted on

22 Sep 2016

Posted under

Economy, Lobbying, Small and Medium businesses, Transparency

Comments

1 Comment

Theresa May disbands the “David Cameron Business Forum”

aka his “Business Advisory Group”.

““Theresa May has disbanded the group of business leaders assembled by her predecessor to advise on City and financial matters. The prime minster has not created an alternative team after telling the dozen or so business leaders their advice was no longer required.

Her decision to break up the so-called business advisory group – which included the Legal & General chief executive Nigel Wilson and Virgin Money chief executive Jayne-Anne Gadhia – was seen as a signal of a clean break from Cameron’s way of dealing with the City and big business. …

… The move was welcomed by small business leaders, who will be hoping for a bigger voice and influence as the Brexit negotiations take place. May’s first event at No 10 was a meeting with small businesses.

Mike Cherry, national chairman at the Federation of Small Businesses, said: “This is the right moment for No 10 to review its business engagement structures and to broaden them – and we look forward to making sure that small businesses are part of that.”

The CBI, which represents big employers, said: “The CBI regularly meets with the government – the prime minister, chancellor and secretaries of state – for bilateral meetings on a wide range of issues affecting businesses and the economy.”

Cameron’s business advisory group was described as a “small group of business leaders from sectors of strategic importance to the UK that provides regular, high-level advice to the prime minister”. Members were often picked to travel with ministers on foreign visits and were

It was reshuffled after the 2015 election and also included Carolyn McCall, chief executive of easyJet and Xavier Rolet, chief executive of the London Stock Exchange. During the referendum campaign, its members’ views on Brexit were closely scrutinised. A letter backing the Remain campaign was not signed by some of the advisers including Alison Brittain, chief executive of Costa Coffee owner Whitbread, and Jeff Fairburn, head of housebuilder Persimmon.”

http://www.theguardian.com/business/2016/sep/22/theresa-may-tells-big-business-advisers-no-more-advice-please

Posted by

East Devon Watch

Posted on

3 Sep 2016

Posted under

Coastal communities, Economy

Promises, promises …

“Labour leader Jeremy Corbyn will today promise to pump billions into towns in the south east of England if he wins power.

Mr Corbyn, who is fighting a leadership challenge from Owen Smith, is to pledge a £30 billion investment bank for the area, more emphasis on renewable energy for seaside towns and better broadband.

The embattled leader will announce the plans at a re-election campaign rally in Ramsgate in Kent today.

Mr Corbyn is expected to say he wants to bring back pride and prosperity in “so-called left-behind Britain”.

He will say: “For Ramsgate, like other coastal towns, that commitment to invest means opening up the opportunities that are there.” …

http://www.standard.co.uk/news/politics/jeremy-corbyn-pledges-30-billion-for-leftbehind-towns-in-southeast-england-a3335801.html

Posted by

East Devon Watch

Posted on

31 Aug 2016

Posted under

Economy

More South West pensioners return to work to make ends meet than anywhere else in England

With low levels of crime, good healthcare and an attractive climate the south coast and south west of England have long been parts of the country where thousands of Britons would love to retire.

But while many people aspire to live out their days in counties such as Dorset, West Sussex and Devon, figures show that fewer than half think they will be able to afford to do so comfortably on their current pensions. …

… The two regions [south and south west] have the highest proportion of pensioners who go back to work full or part time after their careers come to an end, with 34 per cent doing so in the south west and 32 per cent in the south east – more than in any other part of the country.

That contrasts to Yorkshire and Humberside, where only 25 per cent of pensioners carry on working after retirement. …”

http://www.telegraph.co.uk/news/2016/08/31/why-a-comfortable-retirement-by-the-sea-may-be-a-pipe-dream-for/

Posted by

East Devon Watch

Posted on

23 Aug 2016

Posted under

Economy

New Business Rates system will cause severe problems

The Business rates reforms “will remove ability to appeal” against bills

“The new three-stage business rates appeal system will all but remove the ability to appeal against rating bills, property firm Colliers International has claimed.

It said the ‘check, challenge, appeal’ system launched for consultation last month would prevent valuation tribunals from amending the rateable value of a business unless it is “outside the bounds of reasonable professional judgement”.

John Webber, Colliers’ head of rating, said this meant there was in effect a 20% margin of error allowed in estimates that could not be challenged, which “is going to pile tens of millions of pounds on to business rates bill.
“At a time when many firms, particularly in London and the south east, can expect their bills to skyrocket, this adds insult to injury.”
‘
He said the new regulations would also have a significant impact on material change in circumstance appeals, which usually concerned reductions of less than 10% and so would effectively disappear in the new system by being within “bounds of professional judgment”.

Mr Webber said: “This clear infringement of a ratepayer’s right to appeal their rateable value must not be allowed to form part of the government’s business rates’ appeals’ whitewash. These proposed regulations are very draconian.”

He urged businesses to respond to the consultation by protesting against the proposal.”

http://localgovernmentlawyer.co.uk/index.php?option=com_content&view=article&id=28118%3Abusiness-rates-reforms-qwill-remove-ability-to-appealq-against-bills&catid=58&Itemid=26

Posted by

East Devon Watch

Posted on

17 Aug 2016

Posted under

Economy, EDDC, Rural communities

Business Rate reform: a big problem for rural councils

“Funding for public services will become “highly variable” in many county areas under government plans to make councils financially self-sufficient by the end of the decade, government has been warned.

In an analysis of the plan to fully devolve business rate revenue, undertaken for the County Councils Network, Pixel Finance Management found the growth in net business rates in these areas was below average.

In many counties, particularly in rural areas, small businesses often claim reliefs. As a result, a growth in business premises often does not translate into a growth in business rate income received by the local authority in county areas.

The government plans to devolve business rates to authorities by 2019-20. A funding baseline is likely to be set for town halls using local business rates as well as either a top up or tariff payment to reflect a new assessment of local need. Authorities will then retain all local growth, up from the 50% share currently allotted to the sector, and will be financially self-sufficient, with other locally raised revenue, mainly council tax, used to provide services.

However, the review highlighted the volatility of business rate income, which fell in three large counties between 2010 and 2016, despite the fact they all make large contributions to the national economy. Surrey contributed £37bn in gross value added to the UK economy in 2014, but its business rate income fell by almost 15% between 2010 and 2016. Meanwhile, Hertfordshire contributed £32bn, but its business rate fell by 11% in the same periods, and Kent contributed £31bn but its business rate income fell by 5%.

In addition, rateable values per head in London average £3,700 compared to £851 in county areas, while revenues within a county can also vary widely. In one county, the research showed growth in rateable values was as high as 20%, with four other districts witnessing reductions of over the same period.

CCN vice chair and finance spokesman David Borrow said he welcomed the localisation, but warned that a well-intentioned policy could end up being unfair, with areas outside the major conurbations being left behind other parts of the country.

If the new system is not properly designed, it could leave already-underfunded services for the vulnerable and elderly in county areas worse off, at a time of growing demand, particularly for adult social care. …

… Currently, retained rates are split 80-20 to districts in two tier areas, and CCN said it was working closely with the District Councils Network on a submission for a retention system in two-tier areas. The group also said that the design of the new regime needed to include safety nets for when revenue falls, and allow for frequent resets of the localisation system to ensure urban areas such as London do not receive disproportionate funding allocations.

CCN, which represents 27 councils, also called for increased fiscal freedoms, including the ability to increase business rates – even for areas that do not have an elected mayor, which would not be allowed under current plans.”

http://www.publicfinance.co.uk/news/2016/08/counties-warn-funding-uncertainty-business-rates-localisation

Posted by

East Devon Watch

Posted on

12 Aug 2016

Posted under

Devolution, Economy, Local Enterprise Partnership

Ministers for “Local Growth” announced

“Business and energy secretary Greg Clark has named local growth ministers for all of England in order to reflect the role of local places in the development of the government’s industrial strategy.

All ministers in the Department for Business, Energy and Industrial Strategy have been tasked with building relationships with a number of local enterprise partnerships in England, as well as with the devolved nations.
The department’s ministers – Nick Hurd, Baroness Neville-Rolfe, Jo Johnson, Margot James and Jesse Norman – will be the first point of contact for respective LEPs in England within the department.”

http://www.publicfinance.co.uk/news/2016/08/team-local-growth-ministers-announced

Ours is Jesse Norman:

“Norman was a director of Barclays before leaving the City of London in 1997 to research and teach at University College, London. Prior to that he ran an educational charity in Eastern Europe in the Communist era. Despite his rebellious past Norman was identified by Bruce Anderson, formerly political editor of The Spectator, in January 2013 as a potential future Tory leader.”

https://en.m.wikipedia.org/wiki/Jesse_Norman

and from the Conservative Party website:

“Jesse Norman was elected as MP for Hereford and South Herefordshire in 2010 and 2015. He has been married to Kate since 1992, has three children and lives in Hereford City.

Jesse was selected as a parliamentary candidate in December 2006. Whilst a candidate, he campaigned very actively on key local issues, fighting against the loss of public services and for a stronger voice for Herefordshire in Whitehall and Westminster. His campaigns have been featured in the Hereford Times, Hereford Journal and Ross Gazette.

Among other things, he acts as county-wide co-ordinator of the Herefordshire Save Our Post Offices campaign, and set up Schools First as a resource to help all those fighting school closures. In 2009 he ran a countywide campaign to support local shops, and published the Directory of Small Shops of Herefordshire. He is a trustee of the Kindle community centre in South Wye in Hereford City, where he has helped to set up a new youth theatre; and of the Friends of St Mary’s Church in Ross-on-Wye.

Jesse is a published author of many books and pamphlets, and has written widely in the national press. His book Compassionate Conservatism has been called the “handbook to Cameronism” by the Sunday Times, while the follow-up Compassionate Economics was described as “the most intelligent political tract of 2009, and the best analysis of the credit crunch” in the Daily Telegraph online.”

https://www.conservatives.com/OurTeam/Members-of-Parliament/Norman-Jesse

“Handbook to Cameronism” … to be found in any remaindered book shop. Hhhmmm. Well, on the bright side, it isn’t Hugo Swire.

Posted by

East Devon Watch

Posted on

12 Aug 2016

Posted under

Accountability, Devolution, Economy, Local Enterprise Partnership, Scrutiny, Transparency

“Beyond metro mayors and ‘secret deals’: rethinking devolution in England”

The number of people who realise the devolution emperor had no clothes is growing.

“Beyond metro mayors and ‘secret deals’: rethinking devolution in England

As the guard changes in Westminster and new government seeks to differentiate itself from its predecessor, it is timely to review the state of the devolution debate, argues John Tomaney. Policymakers need to learn from the US experience and reconsider the fixation on mayors. Just as importantly, the problem with ‘secret deals’ must be addressed if devolution is going to have any real democratic credentials.

The Cameron/Osborne approach to devolution had a number of distinctive features. Chief among these was its fixation with the directly elected metro-mayor as the answer to urban governance problem. In the government’s diagnosis this model of governance addresses weaknesses in fragmented systems, improves democratic accountability and bring city- regions together round common economic development strategies. The government claimed:

The experience of London and other major international cities suggests that a directly elected mayor can cut through difficulties [of urban governance]. The government has therefore been clear that devolution of significant powers will rest on cities agreeing to rationalise governance and put in place a mayor to inspire confidence

But there is limited evidence to support these claims about the impact of directly elected mayors on local economic growth and the improvement of local services. Many of the assertions made in the English debate rest on more or less persuasive anecdotes drawn principally from the US experience and the limited experience in London.

The Limits of Metro-Mayors

Strong US mayors, with access to locally tax raised taxes, are seen as leading the renaissance of US cities. For instance, the economic resurgence of New York City is often attributed to the pro-business policies of ‘strong mayors’ such as Michael Bloomberg.

Rather less attention, however, is devoted to counterfactuals. We might look at the case of Detroit, where ‘strong mayors’ have presided over a vicious circle of economic decline and municipal bankruptcy. A high degree of local self-finance, far from ensuring resilience, was arguably a causal factor in the precipitous decline of Detroit. The mayoral system is in crisis there.

In 2013, the sixty-fifth mayor of Detroit, Kwame Kilpatrick, was sentenced to twenty-eight years in prison after being convicted of a variety of corruption charges. The city of Detroit filed for bankruptcy in 2013 and the State of Michigan appointed an emergency manager to assume control of the council.

Strong mayors can lead to hubris and overreach and be the antithesis of models of policy-making based on deliberation and increased accountability and scrutiny. Mayors have managed both the rapid recent growth of New York City and the catastrophic decline of Detroit. Isolating the influence of mayors among the many other factors at work in these cases is very difficult.

One thing that can be said with certainty is that the mayors have not presided over an era of a democratic renewal. On the contrary, the US mayoral system has been associated with declining levels of electoral participation in the big cities.

At the time that Robert F Wagner Jnr was elected as mayor of New York City in 1953, voter turnout was over 90 per cent. By the time Bill de Blasio was elected 109th mayor in 2013, voter turnout was less than 30 per cent. Similar rates of decline in voter turnout can be seen in cities such as Philadelphia, Los Angeles and Chicago. These declines in voter turnouts have occurred, moreover, in cities that are endowed with much more extensive local media than is the case in northern English cities.

A key feature of the US mayoral model concerns how it facilitates close relationships between local political and business elites in ways which typically lack transparency and scrutiny and which underpin models of economic development that favour urban property interests. It is this aspect of the US model that seems to have had a particular influence in UK policy debates. For instance, at the 2015 Conservative party conference in Manchester, George Osborne proposed that where elected mayors had been created, they would have the power to add a (capped) infrastructure levy on business rates.

There is considerable uncertainty about how both the devolution of business rates and the infrastructure levy would work in practice, but the government is clear that a levy can only be raised if a majority of ‘business members’ of the boards of Local Enterprise Partnerships agree.

In effect, resources will only be allowed to be spent on infrastructure projects that are approved by a handful of ‘business leaders’. It might fairly be asked why the interests of a small number of appointed businesspeople should trump the mandate of an elected mayor. It might even be argued that this development represents a partial return of the franchise property qualification which was abolished by the Representation of the People Act in 1918.

The problem with secret deals

The new devolution arrangements are not the product of wide public debate in the areas to be affected by them, but instead are the outcomes of ‘secret deals’ (‘City Deals’, ‘Devolution Deals’, etc.) between political and business elites at the national and local levels, exemplified in the case of Manchester.

In essence, these deals are assembled locally from a menu of policies approved by HM Treasury. It stretches the imagination to see this approach as leading to meaningful democratic renewal. On the contrary, the model of devolution currently on offer is one designed to advance a narrowly defined set of business interests with very little democratic scrutiny. Arguably, it is this approach to politics that was rejected in the Brexit referendum.

Underpinning the new policy is a theory of economic development that fosters interurban competition and economic concentration, tolerates and indeed even celebrates high levels of socio-economic inequality, is comfortable with some groups and places being losers and locks-in enduring austerity, most especially in the places that have borne the brunt of public expenditure cuts to date. Innovation and entrepreneurialism in economic development is tolerated only within a highly restricted range of parameters. It is a form of devolution in which ‘business’ exercises a direct and indirect veto over the preferences of citizens. The emerging settlement is akin to the model of ‘post-democracy’, as elaborated by Colin Crouch, whereby formal mechanisms of accountability exist, but their practical role is increasingly limited and embodies the interest of a small elite.

In a country as centralised as the UK, the case for devolution is strong in principle. But as the Cameron/Osborne era is put to rest, this might be an appropriate moment to the reconsider the narrow model that has been offer to date.

Note: This blog draws from the journal article ‘ Limits of Devolution: Localism, Economics and Post-democracy’, published by Political Quarterly.

http://www.democraticaudit.com/?p=23993

Posted by

East Devon Watch

Posted on

10 Aug 2016

Posted under

Economy, EDDC, Seaton/ Colyford / Colyton, Stuart Hughes

That’s what friends are for …

The “council Chief” has not seen fit to intervene in the closure of any other banks in East Devon but no doubt chats with his high-profile Vice-Chairman Helen Parr (Colyton) at EDDC he has felt he must do what he can to help.

Other towns look forward to a similar intervention by the two of them on their behalf should their remaining banks be threatened with closure.

DCC Councillor Claire Wright recently wrote to Lloyds Chairman begging him not to close the branch in Ottery:

http://www.claire-wright.org/index.php/post/lloyds_bank_chief_executive_urged_to_retain_otterys_branch_in_face_of_cuts

Councillor Hughes (also a DCC councillor with highways responsibility) does not appear to have offered his support there.

“Council chief joins fight to save Colyton bank

East Devon District Council chairman Stuart Hughes has thrown his weight behind Colyton’s fight to save its Lloyds Bank branch from  closure.

Members of St Andrew’s Parish Church recently wrote to the company’s chairman, Lord Norman Blackwell, appealing to him to reverse his decision to pull out of the town.

In their letter, the rector, the Reverend Hilary Dawson and her two church wardens, Christine Sansom and David Fouracre, said: “It would appear in the world of big business, small is not beautiful. However, to a community like ours, such a facility is crucial.

“We have a predominately elderly population living in a rural location. Many are without private transport, and public transport is infrequent and impractical for those with mobility problems. Many of the elderly are not computer literate, so online banking is not an option for them.

“A large proportion of the Colyton population have banked with Lloyds for many years, primarily because we have a fully functioning bank within the community. Your planned closure of this branch reflects the continued marginalisation of a hitherto thriving rural community.”

Now, in a show of support, Cllr Hughes has echoed parishioners’ concerns in a further letter to Lord Blackwell. He wrote: “Small branches like the one in Colyton are vital for rural communities and I am asking that the Lloyds Banking Group gives serious reconsideration to closing it. Such facilities are absolutely key to the life of our communities and we need to keep them open.”

Colyton district councillor Helen Parr added: “Not only will the loss of Lloyds Bank be a blow to personal customers, it will also hit businesses and many organisations and societies. The loss of our only bank would be a serious threat to the economic prosperity of the town.”

http://www.midweekherald.co.uk/news/council_chief_joins_fight_to_save_colyton_bank_1_4651305

Posted by

East Devon Watch

Posted on

26 Jul 2016

Posted under

Coastal communities, Economy, Inequality, Regeneration, Tourism

MD of Butlins warns of seaside degeneration and youth unemployment

“In her first speech as prime minister, Theresa May set out her goals to tackle the social injustices faced by many, including the working-class young. One to add to the list is that of young people who come from our coastal and seaside towns.

The UK’s coastline is 7,700 miles (12,400km) long and contributes hugely to our cultural wellbeing. Some 250 million visits are made to the coast each year but it is an inconvenient fact that if you come from our seaside towns you are more likely to be poorly educated, unemployed, unemployable, lacking in ambition, claiming benefits and living in multiple-occupation housing.

This is largely down to the long-term decline of fishing, agriculture and tourism — the industries that traditionally supported coastal communities. Tourism could arrest that decline if government helped to create the environment to allow businesses to do so. Although tourism is the UK’s sixth largest export earner and employs nearly 10 per cent of the working population, it could do better.

A recent survey found that more than half of the British public have not visited the seaside in the past three years, 30 per cent have not visited as an adult and 65 per cent believe the seaside is run down and in need of investment.

This is why the British Hospitality Association has come up with a plan to revive these communities. The first step is to appoint a seaside tsar, someone to co-ordinate government and local authority spending. This person, who needs to be strong enough to make a real difference, would oversee the creation of coastal enterprise zones to bring in investment and encourage businesses to move to the coast.

The second initiative is to create a tax environment that encourages people to visit and coastal businesses to invest in themselves. The obvious incentive for visitors is a reduction in tourism VAT — on accommodation and visitor attractions. UK visitors are taxed harder than almost everyone else in Europe for simply going on holiday. Our tourism VAT rate is a punitive 20 per cent while the average in Europe is half that.

If Mrs May is serious about rebalancing the economy, tourism is one industry that can deliver export growth by creating a seaside that is worth going back to.”

Dermot King is managing director of Butlins and chairman of the Cut Tourism VAT Campaign

http://www.thetimes.co.uk/edition/comment/our-seaside-towns-need-a-serious-economic-boost-8n9550crk

Posted by

East Devon Watch

Posted on

25 Jul 2016

Posted under

Accountability, Devolution, Economy, Local Enterprise Partnership, Post-Brexit Adjustments, Transparency

South-West MPs much more worried about devolution deal than councillors or LEP

“Devon and Somerset councils are reaching a critical stage in their bid for devolved powers, as they decide whether or not to accept a new combined authority model.

All 17 councils involved in the joint devolution bid are required to vote on the proposals, before leaders can progress with negotiations over the summer. It is hoped this could see a deal announced in time for the Autumn statement – but there are concerns among MPs that the current bid lacks clarity.

South West Devon MP Gary Streeter, said he and fellow MPs “greatly recognise and applaud” the work that Devon and Somerset councils have put in so far. But at the moment they have “more questions than answers”. “I think over the next two to three months, when we sit down with the new secretary of state and council leaders, we’re looking for those questions to be answered,” he said. “This is not the fault of the councils, it’s the fault of Government [that] it is still slightly vague and up in the air. “We’re not hostile, we’re just cautious at this stage, and want these questions to be answered. “We want more information about what the benefits will be to our constituents.”

To date, the Conservative Government has awarded 12 devolution deals to cities and regions across the UK. These have passed down greater control over a range of local services, including public health, transport and education.

Devon and Somerset councils collaborated with local national parks, CCGs and the Heart of the South West (HotSW) LEP to submit a joint bid in February. And following their most recent meeting with former local government secretary Greg Clark, they seem optimistic they will secure a deal. However, any progress rests on the individual district, unitary and county councils supporting the creation of a new combined authority (CA) for the region.

The proposal has already been voted through by a number of local authorities – including Exeter, Plymouth and Somerset – with Devon County Council due to vote on Thursday.

Somerset County Council leader John Osman believes the CA model present a far more suitable option than the alternative of a directly elected mayor. And he wants to clarify that it “will not take any powers or responsibilities” from the existing councils. “There is no appetite for a directly elected mayor in the Devon and Somerset area, so the Government have asked for an alternative,” he said.

“What [the combined authority] means is a board with one representative from every one of the 17 councils, the NHS and national parks, who will decide on the new powers and new responsibilities given. “It wont be a new bureaucracy or anything like that, [and] it wont be a massive committee of everybody. It will be 23 people around the room, one from each authority.”

If the proposals are accepted, Devon and Somerset will become the first region to receive devolved powers through a non-mayoral CA model. However, any progress rests on the individual district, unitary and county councils supporting the creation of a new combined authority (CA) for the region.

The proposal has already been voted through by a number of local authorities – including Exeter, Plymouth and Somerset – with Devon County Council due to vote on Thursday.

Somerset County Council leader John Osman believes the CA model present a far more suitable option than the alternative of a directly elected mayor. And he wants to clarify that it “will not take any powers or responsibilities” from the existing councils. “There is no appetite for a directly elected mayor in the Devon and Somerset area, so the Government have asked for an alternative,” he said. “What [the combined authority] means is a board with one representative from every one of the 17 councils, the NHS and national parks, who will decide on the new powers and new responsibilities given. “It wont be a new bureaucracy or anything like that, [and] it wont be a massive committee of everybody. It will be 23 people around the room, one from each authority.”

If the proposals are accepted, Devon and Somerset will become the first region to receive devolved powers through a non-mayoral CA model.

Leaders are hoping that all councils will be on side with the proposals by the end of July, to enable them to start further negotiations with Whitehall over the summer. Their next aim is to have a draft deal from the Government for local authorities to vote on by the end of October. They believe this could lead to an official deal being announced in November’s Autumn Statement.

Councillor Osman admits that the recent cabinet reshuffle – which saw Greg Clark replaced by Sajid Javid – has created some uncertainty. But he says it remains his ambition “to get a deal done and dusted by November time”. “We are now getting into contact with the new secretary of state and the chancellor to say we are still on track and working with civil servants,” he said. “We need to hear back from them to ensure they are still carrying on with the previous administrations line. “I can’t think why he wouldn’t to be honest, it was a conservative policy. But we’ve made contact and we’ve just got it wait for a response.”

The HotSW bid asks for a range of powers, including greater control over road and rail investment, more influence over house building and land use, and better integration of health and social care. Similar responsibilities have been devolved to other areas, including Cornwall, but only authorities with mayors have gained significant control over health budgets and business rates. The additional funding allocated to fund devolution also varies from deal to deal, starting from £15 million a year in Lincolnshire, to £36 million in the West Midlands.

At a Plymouth City Council meeting earlier this month, Labour councillor Tudor Evans called for a “serious conversation” about money. He argued the South West deal must not “set up the combined authority… for a fall”. He told the council chamber: “We’ve known for along time things like adult social care… health services… public health [are] inadequately funded. “We must use this… to unlock the bad funding formulae that have consigned us to not doing the best we can for too many years.”

Coun. Osman states that “the devil is in the detail” when it comes to finances. But he is confident that as councils take on new responsibilities from Government “funding will hopefully follow”. “If not, there is an inkling that we will be able to get some other sources of funding well,” he said. “Not council tax rises or anything like that, but money from central government or business rate rises.”

An area of underlying tension throughout the development of the bid has been geography, with Government keen for bids to focus on LEP boundaries. However, there are those who argue an authority which straddles multiple cities and counties will lack the sense of unity and identity enjoyed by somewhere like Cornwall. Other large multi-authority bids have come close to unravelling, with the East Anglia deal eventually being split into two after Cambridgeshire County Council rejected plans.

Gary Streeter points out that while the tendency in Somerset is “to look Eastwards toward Bristol and London”, in Devon the natural instinct is to look West toward Cornwall. “Most of us feel that… the region should be Devon and Cornwall, but we seem to have gone past that point,” he said. “Some people feel more strongly about it than others, particularly I think the Somerset MPs…. but is not necessarily a deal breaker. “There seems to be broad support for establishing Devon and Somerset. And there is support for a combined authority, provided we know how its going to work and its not simply adding another tier of government.”

Coun. Osman believes a break-up of the Devon and Somerset alliance is “unlikely”, adding that ministers are “pleased” that the 23 authorities have remained united. He said council leaders and staff will work hard over coming months to make the most of an opportunity to “shape the agenda for the South West”.

Mr Streeter is more reserved, suggesting that the new secretary of state may want to take a fresh look at the devolution agenda. He states that a November timetable “is a possibility” but “a lot of water has got to flow under that bridge yet”, and MPs will get a vote on the final deal. “Over the next two or three months… the detail [of the deal] is likely to change and emerge, so I think people shouldn’t get too hung up on the detail,” he added. “My own feeling is that with the new secretary of state coming in… some of the slight vagueness of the current proposal will be addressed.”

At a glance: What is a combined authority?

The 17 Devon and Somerset councils making a joint bid for devolution have been asked to support a new combined authority in order to progress to a deal.

Councillors stress this is not an attempt to merge authorities, or to take powers from lower tier councils– but there is potential for this to change.

Ministers first legislated for the creation of combined authorities in 2009, to allow councils to pool resources for the delivery of local services.

Their powers were enhanced by the passage of the recent Cities and Local Government Devolution Act, and the model has subsequently been taken up in a number of areas bidding for devolution.

In areas like Great Manchester and the Liverpool City Region, they have opted to establish CAs under the control of an elected mayor. However, the Heart of the South West (HotSW) region could be one of the first areas to secure a devolution package with a non-mayoral CA.

As proposals currently stand, the Devon and Somerset CA would be made up of one member from each council, national park, Clinical Commissioning Group (CCG) and the Local Enterprise Partnership (LEP) involved with the bid. Council leaders claim it will not be a physical entity or a “new bureaucracy,” but will simply be a way to coordinate the distribution of new funds and powers throughout the region.

The aim is to improve oversight without resorting to a directly elected mayor system, which many see as unsuitable for a region as large and diverse as Devon and Somerset. However, reports state that it is possible to change to a mayoral CA at a later date, and for powers to be transferred from lower tier councils “subject to agreement”.

http://www.plymouthherald.co.uk/devon-and-somerset-on-cusp-of-devolution-deal-but-mps-want-more-clarity/story-29549453-detail/story.html

Posted by

East Devon Watch

Posted on

25 Jul 2016

Posted under

Economy

“Planning applications for new shops fell 9% in past year”

“There were 6,700 applications for new retail developments in 2015, down from 7,360, according to commercial law firm EMW. They are down by nearly a half from the pre-recession peak of 11,900 in 2008.

The fall shows the continuing pressures on shopkeepers as consumers desert the high street in favour of online shopping with e-commerce companies. EMW said that despite traditional retailers increasingly focusing on and expanding their online services, many are often failing to compete effectively with online-only retailers, such as Asos and Boohoo.

It said the recent failures of traditional retailers BHS, Austin Reed, and convenience store chain My Local were partly caused by the continued success of online-only brands.”

http://www.theguardian.com/business/2016/jul/25/planning-applications-new-shops-fell-nine-per-cent-past-year?CMP=Share_iOSApp_Other

Posted by

East Devon Watch

Posted on

21 Jul 2016

Posted under

Accountability, Austerity cuts, Economy

National Audit Office: “Government has ‘no coherent framework’ for implementing policy”

“The government lacks a “coherent, enduring framework” for planning and managing policy implementation, according to the National Audit Office.

In two reports published today, the NAO assessed the means by which the government plans and manages its business through Single Department Plans, and the execution of the 2015 Spending Review.

Almost £2tn was allocated to departments in last year’s Spending Review and another £2tn was budgeted for welfare and benefits payments over five years. This involved complex cooperation between the centre of government and departments to set overall strategy.

Despite improvements in this area, auditors found that the government was lacking an overall management framework. Adopting such a system would allow the government to plan into the medium term, set achievable goals, know whether it is on track, adjusting its approach where necessary, and provide Parliament with clear accountability.

The NAO refuted the government’s claims that it already operates such an arrangement in the form of processes and guidelines. The auditors said this did not add up to a framework, and said the outcome of this lack of structure could be seen in projects that were not value for money and blighted by an absence of long-term, joined-up thinking.

Making the change to a more effective system would not be easy, however, due to the scale of government and the significant challenges facing the country, which have been compounded by the recent vote to leave the EU.

Some progress had been made following previous NAO and Public Accounts Committee probes, but improvements had not been as significant as expected. Although the government is working with departments more effectively, it is not making the most of in-house expertise. Also, the report noted that a heightened focus on the spending period up to 2020 had drawn attention away from longer-term funding decisions and their impact.

NAO head Amyas Morse said: “Time and again, we find that problems in the delivery of public services can be traced back to the way government goes about planning and managing business in pursuit of an administration’s policy objectives.” …

http://www.publicfinance.co.uk/news/2016/07/government-has-no-coherent-framework-implementing-policy

Posted by

East Devon Watch

Posted on

19 Jul 2016

Posted under

Economy, Inequality

Working families largest group of “new poor” not the unemployed or pensioners

“Improving the income of the working poor is the key to reducing inequality, according to the Institute of Fiscal Studies.

Its study Living Standards, Poverty and Inequality in the UK: 2016, funded by the Joseph Rowntree Foundation, was published today at an event in central London. It highlights some significant changes to the nature of poverty in the UK.

Pensioners’ incomes have risen to the extent that they are now the least likely major demographic group to be in income poverty, after housing costs. Another crucial development is that more people are in work than ever before.

Also, the proportion of children living in a household where no-one works has fallen from nearly one in four in 1994-95 to less than one in six in 2014-15.

Subsequently, the report found the “new poor” tend to be located in houses where there is someone in work. Only one-third of children below the government’s absolute poverty line now live in a workless household. The remainder (two-thirds) of those classed as poor are poor despite the fact that at least one of their parents is in work.

A negative consequence of this change is that poor households are therefore more sensitive to labour market fluctuations than those of the past. It also means that initiatives designed to allay child poverty will be less effective if the focus remains on getting people into work.

For the poorest fifth of households today, income from employment makes up half of total income. Twenty years ago, this figure was under one-third, indicating a greater reliance on benefits and tax credits.

In the report, the IFS stated that if new prime minister Theresa May took the decision to continue the ‘life chances’ strategy started under David Cameron, it should be aimed at raising the economic prospects of working households. …”

http://www.publicfinance.co.uk/news/2016/07/poverty-now-resides-within-working-households-says-ifs

Posted by

East Devon Watch

Posted on

17 Jul 2016

Posted under

Accountability, Cornwall, DCC, Devolution, Economy, Education (local), Post-Brexit Adjustments, Rural communities, Small and Medium businesses, Transparency

Comments

1 Comment

Brexit: where now for Devon and Cornwall businesses?

Devon and Cornwall Business Council:

… “1) DEVOLUTION. This process may be very welcome to the business community (or it may not). There has been inadequate consultation for us to know what the implications might be. Either way it will create a period of uncertainty. We cannot afford to risk this whilst so many critical matters are up in the air. I propose that we ask for, at least, a 12 month moratorium whilst clarity is restored. Then we need a proper period of consultation knowing what we then know. Devolution has the potential to provide significant opportunities for devolved administrations to determine their own future when it comes to skills, transport, investment and development, but this agenda needs to be developed collaboratively with the private sector standing shoulder to shoulder with Government.

2) EUROPEAN MARKETS. More than 50% of South West trade is with near Europe. There have been some bold statements that 90% of trading opportunities will be outside the EU in the next 10-15 years. Many, however, of our investors are based in Europe – IMERYS, EDF Energy, Sibelco, Princes Yachts, Plymouth Gin, Barden Corporation to name but a few. Decisions are made in European capitals which affect a large number of our jobs and future growth prospects. We need to ensure that the existing investments are maintained and that we will feature in future investment decisions – access to the Single Market is vital. UK Trade and Industry (UKTI) department officials are already fully stretched (inadequate funding currently, with an increasing workload), we need to establish our own business trade ambassadors to ensure direct contacts are maintained and developed. From this base we can then begin to start creating a forward order book for whatever new trade agreements might emerge. This will also allow a programme to be developed to enable access into new global markets.

3) INFRASTRUCTURE. The South West has for too long been the Cinderella of the UK in terms of infrastructure investment. We have clearly supported plans for future spending on road, rail, air, marine and broadband projects. We must now directly lobby for these, acting as a single voice and ensuring that our South West MPs are lobbied to also speak with one voice. What, however, will make this happen is a demonstration that investment in infrastructure will result in direct business investment. We need to clearly demonstrate what we will contribute in return.

4) PLAY TO OUR STRENGTHS. Some of our most successful business sectors should be the subject of focussed programmes for ambitious expansion – food and drink, tourism and e-health are good examples of where the South West has specialist skills. Add to these; marine / maritime technology, aerospace / space, advanced engineering, digital and creative economy. Designed and co-ordinated tasks forces could achieve spectacular results in these areas of the economy.

5) GOVERNANCE/REGULATION. The system of regulation has been often complained about as a barrier to business growth – red tape, EU regulations or Gold plating from Whitehall? Staffing levels at regulators have been cut making the problems more acute. The establishment of voluntary codes and working partnerships led by trade bodies and self-regulated by them (with rewards for best practise) could greatly improve the current confrontational systems which have become entrenched – particularly in areas such as planning and environmental health.

6) PRODUCTIVITY. We have routinely lagged behind the average UK productivity levels (between 15-20% lower than UK average for Devon and Cornwall1). There are many drivers of productivity; investment, innovation, skills, enterprise and competition. This problem can be partly addressed by self-help. Simple work based systems can achieve significant improvements to outputs (and profits). These include Lean Production techniques. Training for all staff on digital skills and improvements to work/life balance (flexible working hours) which can reduce lost time off through stress / illness.

7) YOUNG BUSINESS. The Business Community has a collective responsibility to re-engage with the next generation to ensure we have attracted the huge talents of our young people. Business support can start by involvement as a Governor at Primary School all the way through to being a voluntary mentor for new start businesses. There are also great opportunities for assisting with work experience. The SW is blessed with some exceptional people with invaluable skills and experience. This should be high on the business agenda.

8) INNOVATION/SKILLS. We are proud of our Universities and Further Education Colleges. They deliver with national and international standards. The ground breaking research they produce is helping to change things around the world. We complain about a lack of relevant skills; however, do we fully engage with these institutions? Do we share with them our future business plans so that skill sets can be anticipated? Do we share with them our challenges in order to co-develop innovative solutions? Do we respond to their outreach work which can tackle production/system deficiencies? The answer is we could all do better. New partnerships should be formed as a priority. In part focusing on achieving young people with relevant skills (matched to growth sectors) through apprenticeships which, have the potential to greatly reduce our reliability on skilled labour from outside the UK, EU or otherwise.

9) URBAN/RURAL. For too long we have allowed ourselves to get sucked into Whitehall speak on the growth of Cities. Seen from the Whitehall bubble this is the best place to concentrate investment decisions. What we are missing by not forging strong urban/rural partnerships represents one of the greatest untapped opportunities for the growth of our economy – natural energy, local food production, health and well-being, water quality, flood/climate change management are all on our doorstep. DCBC will spearhead a rolling programme of partnership opportunities.

10) FUNDNG. The expectation that Government cash will still arrive as before is fool’s gold. Austerity will get worse before it gets better. Business will become even more important in the funding of growth opportunities. This could include matched funding with Devolved Authorities and perhaps taking advantage of cheap Government borrowing. We must set out our investment priorities more clearly and take these to our key stakeholders in the public sector for early discussions in order that improved delivery be achieved.”

http://www.dcbc.co.uk/news/brexit-where-next-business-community-10-point-recovery-plan#

Posted by

East Devon Watch

Posted on

14 Jul 2016

Posted under

Accountability, Economy, EDDC

“Councils’ commercial ambitions outstrip expertise”

“Four in 10 council bosses want to increase commercial revenue but just 4% say they have significant commercial expertise, a poll by CIPFA and Civica has found.

The survey of 45 local authority chief executives and chief finance officers found authorities were developing commercial plans to raise revenue by, for example, developing trading arms for shared services and through more effective use of property.

However, concerns were also highlighted about a lack of understanding of what the market needs (36% of respondents said this was a factor) and concerns about the risks involved (56%). “…

http://www.publicfinance.co.uk/news/2016/07/councils-commercial-ambitions-outstrip-expertise

Posted by

East Devon Watch

Posted on

4 Jul 2016

Posted under

Accountability, Developers/ Development, Devolution, Economy, Local Enterprise Partnership, Post-Brexit Adjustments

Osborne has a 5 point plan …

“Chancellor George Osborne has come up with one [plan] and his also has five points [see Johnson, Boris], key among them a proposal to cut corporation tax to below 15% – the lowest of any major economy – to encourage businesses to invest in post-Brexit Britain. The others, as revealed in an interview with the Financial Times, are:

Ensuring support for bank lending.

A push for more investment in China.

A focus on delivering the Northern Powerhouse.

Maintaining Britain’s fiscal credibility.

No word from the chancellor on the brightness of the future, though he does urge everyone to stop “moping around”.

Source: Guardian Live blog

If that’s the plan, where does it place devolution outside the “Northern Powerhouse”?

And did he mean investment IN China or FROM China?

Whatever, our LEP members – all hit hard by Brexit implications in their individual sectors (nuclear, arms dealing, housing development and universities) – must surely be taking time out from their LEP duties to spend more time with their own businesses, now in dire need of their expertise.

Posted by

East Devon Watch

Posted on

1 Jul 2016

Posted under

Accountability, Democracy, Economy, EU Referendum, Post-Brexit Adjustments

Parliament: new inquiry into implications of leaving the EU announced today

“In the light of the outcome of the referendum on EU membership, the Foreign Affairs Committee is launching a rolling inquiry into the Government’s handling of the process of departing the EU and the ongoing implications of the decision for the UK’s role in the world. This will build on the findings of the Committee’s report, published in April 2016, outlining both the short- and long-term implications of the vote for the UK’s global role.

Inquiry: Implications of leaving the EU for the UK’s role in the world
Foreign Affairs Committee

Terms of reference

The Committee welcomes written submissions which address in particular:

The type of relationship that the UK, its Crown Dependencies and its Overseas Territories should seek to pursue with the EU in future
The implications of the decision for the UK’s strategic orientation, global posture, alliances and international trade.

The Government’s management of negotiations to determine the terms of the UK’s exit from the EU, including their political direction and the structures and resources to be put in place to orchestrate the transition.

The work of the FCO in the transition process, both in negotiations with the EU and in managing the UK’s broader global role including trade agreements

Because of the rapidly changing situation and the rolling nature of this inquiry, no deadline is being set for written submissions. However, submissions received by 30 September will inform the Committee’s work in October.”

http://www.parliament.uk/business/committees/committees-a-z/commons-select/foreign-affairs-committee/news-parliament-2015/eu-results-launch-16-17/

Posted by

East Devon Watch

Posted on

30 Jun 2016

Posted under

Affordable and Social Housing, Austerity cuts, Economy, Post-Brexit Adjustments

The law of unintended consequences strikes yet again

“The fallout from last week’s vote to leave the European Union is rattling business and finance, far and wide. One aftershock is being felt at the European Investment Bank.

The EIB is owned by the 28 member states of the EU. The UK, alongside Germany, France and Italy, is among its largest shareholders, with about 16%.

The bank provides finance to a wide range of projects around Europe, with a particular focus on areas like infrastructure, social housing, renewable energy and education. It invested £5.6bn (6.7bn euros) in the UK last year and has ploughed £42bn (50bn euros) into the country over the last decade.
But after the Leave vote, there may already be a freeze descending on some new investment.

The good news is that the EIB says that its recent deals in the UK should proceed as planned. Those include funding to an automotive parts business in County Durham, to Swansea University, to housing associations in Northern Ireland and to an off-shore windfarm in Scotland.

But the EIB told Newsnight that the uncertainty created by the vote to leave the EU means that some UK projects, which previously would have stood a good chance, are now less likely to be approved.

There are reasons why the EIB might be cautious. It is unclear whether the UK could or would remain a shareholder after it leaves the EU. That might depend on the form of its relationship with the remaining 27 members. The situation is unprecedented and the EIB’s statue doesn’t contain any guidance or provisions for a shareholder leaving the EU.

Where does the money go? EIB lending to UK 2011-2015:

Energy – 28%
Transport – 25%
Water, sewerage, solid waste, urban development – 25%
Industry, services, agriculture – 7%
Education, health – 11%
Small and medium-scale projects – 4%

Source: EIB”

http://www.bbc.co.uk/news/uk-politics-eu-referendum-36668129

Share this:

Share this:

Share this:

Share this:

Share this:

Share this:

Share this:

Share this:

Share this:

Share this:

Share this:

Share this:

Share this:

Share this:

Share this:

Share this:

Share this:

Share this:

Share this:

Share this: