Category Archives: Devolution
After a climate-friendly Flybe decision, will government respond to Tory challenge on the scandalous North-South funding imbalance?
Due to WordPress malfunction I cannot upload images to this site. They are included in the email alert
The Financial Times casts doubt on the prime minister’s commitment to the regions in two articles today
As Jim Pickard reports, in Flybe collapse puts commitment to regions in doubt, some MPs are voicing concerned about the impact of the bankruptcy on their constituencies. He points out that Boris Johnson’s administration had repeatedly vowed to improve “regional connectivity” and sees the Flybe decision as a failure to uphold this commitment.
The economic case was put by Kelly Tolhurst, the aviation minister: “Unfortunately, in a competitive market, companies do fail, and it is not the role of government to prop them up”.
Snapshot FT reader’s comment: decision is climate friendly
Tory think-tank Onward has found “dramatic” differences in spending to the advantage of London in recent years
In another article, Pickard reports that – in his election manifesto last year – Mr Johnson promised to ramp up the Housing Infrastructure Fund from its current £5.5bn to £10bn to support the delivery of new homes in local authorities “across every English region”
Housing Infrastructure Fund graphic
He refers to a report called “The Challenge”, by the Tory think-tank Onward (May 2019) which has found “dramatic” differences in spending to the advantage of London in recent years.
It argued that government spending has for years been skewed towards the most prosperous parts of the country, in part because of the Treasury’s “Green Book” — which sets spending criteria.
The differences in spending included:
- capital spending on transport in London at £6,600 per head between 2008 and 2019, compared with the English average of £2,400,
- research funding for universities — was nearly twice the UK average in London, at £3,900 per head versus £2,300 per head from 2001 to 2017 and
- London received 47% of Arts Council England spending and central government funding of arts institutions over the same period.
Pickard’s conclusion that such evidence raises questions about the depth of the prime minister’s commitment to the regions is qualified by his FT colleague, Camilla Cavendish: “Boris Johnson’s ‘levelling up’ agenda depends on devolving power”
Andrew Pendleton (New Economics Foundation) reminds us that since Margaret Thatcher first stood on the steps of Number 10 in 1979, successive UK governments have chosen to withdraw all but the barest bones of support from Britain’s foundational industries, of which steel is one. He questions whether any owner of steel manufacturers in the UK could thrive in the hostile environment UK governments have created.
Failed by the current government’s blind faith in markets, Pendleton writes, the people of Scunthorpe and many other places have had no voice whatsoever in how the economy was run, until ‘the blunt instrument of the EU referendum’. The loss of this significant company will intensify the sense of loss that contributed to the Brexit vote
There are risks in selling to the Turkish Military Pension Fund or to the Chinese Jingye Group, about which very little is known, industrially, but the interest of foreign buyers suggests that British Steel is seen as a potentially viable asset.
Many tonnes of steel will be needed to build a cleaner economy – for wind turbines, electric vehicles and the rail lines made in Scunthorpe, critical to a decarbonised economy. As Pendleton points out, steel production is ‘problematic’ for climate change – but steel production in Scunthorpe can be ‘greened’ by investing to reduce its carbon emissions, eventually reaching zero as coal-free production (below) becomes the norm.
In Germany, Thyssenkrupp recently demonstrated running a steel blast furnace completely on hydrogen – opening up the prospect of zero-emissions steel production by using renewable hydrogen.
Hydrogen will become cheaper as current methods, which rely on creating hydrogen fuel from purified water, are superseded by less expensive technologies such as one being developed by Stanford researchers, who have been separating hydrogen and oxygen gas from seawater via electricity.
And millions of tonnes of carbon used in shipping will be saved by using steel close to where it is manufactured
Pendleton sees the current economic model, ‘now the default preference of our policy-makers’, as absurd; in Fife, steel fabrication firm BiFab is in mothballs (right) while energy giant EDF imports the casings for the turbines on its new offshore wind farm from Indonesia.
He points out that Indonesia and some of our European neighbours’ governments habitually intervene to ensure that ‘foundational industries’ have guaranteed supply chains and amply-filled order books.
British Steel owners Greybull, a private investment company which owns many other industries, are unlikely to be seriously affected, but the company’s workforce, its suppliers, Scunthorpe and the wider economy will. It will be a disaster, politically and economically. Andrew Pendleton ends:
“Nothing short of immediate nationalisation is needed; anything less will be a betrayal of a whole town and will send shockwaves through the UK’s industrial heartlands . . .
“It is not too late for the government to step in and take the company over, which would have the immediate effect of keeping people in work and the economy of a town afloat. This is absolutely government’s proper role. But it shouldn’t stop there. After nationalisation should come a three-pronged approach:
- focus on industrial strategy for British Steel in order to secure its supply chains
- fill up its order book with a proactive procurement policy.
- and create a worker owned company who could then benefit from an ownership dividend
“Given the UK’s need to invest and build green infrastructure, such as railways, steel is of national strategic importance”.
Read Andrew Pendleton’s article here.
A call for building strong productive local and regional communities and new trade systems that fulfil human lives without wasting resources and energy
Today the Financial Times (paywall) reports that the number of foreign investment projects has dropped by 14% to 1,782 in the financial year ending March 2019, since the 2016 Brexit referendum. This is the lowest level in six years, according to a report published on Wednesday by the UK’s Department for International Trade.
As multinational profits continue to fly out of the country and taxes are evaded, we return to the valuable 2017 report by Victor Anderson and Rupert Read entitled ‘Brexit and Trade Moving from Globalisation to Self-reliance’, published and launched by Green MEP Molly Scott Cato.
“This report puts on to the political agenda an option for Brexit which goes with the grain of widespread worries about globalisation, and argues for greater local, regional, and national self-sufficiency, reducing international trade and boosting import substitution”.
Colin Hines comments: It details the need for an environmentally sustainable future involving constraints to trade and the rebuilding of local economies. On page 14, the report calls for ‘Progressive Protectionism’:
“Reducing dependence on international trade implies reducing both imports and exports. It is very different from the traditional protectionism of seeking to limit imports whilst expanding exports. It should therefore meet with less hostility from other countries, as it has a very different aim from simply improving the UK’s balance of payments. It could be described as ‘progressive protectionism’, or ‘green protectionism’“.
The report’s recommendations are summarised under three headings: the environment, globalisation and localisation (below):
- Change trade agreements to allow governments to promote greater national, regional, and local resilience.
- Shift taxes, subsidies, and public expenditure on infrastructure, away from unfairly favouring large and global companies, and redirect them to help build up local economies.
- Link banking directly to local and regional economies rather than to the international financial system.
- Boost the number of places for skills training in sectors where UK production can substitute for imports.
- bring in short-term government subsidies to invest in and develop economic sectors where UK production can be expected to substitute for imports as part of the new strategy. These would not necessarily be ‘infant industries’: they might be old sectors being revived and renewed.
- Introduce or increase tariffs on imports of goods and services, especially those where domestic production is a viable and environmentally sustainable option.
- Democratise English sub-regional devolution arrangements and reform local government finance, so as to provide for effective decentralisation of power.
The globalisation of recent decades has been very one-sided. There have been enormous benefits for large business corporations, financial institutions, and the super-rich. As smaller companies have found it difficult to compete, the multinationals have used a worldwide network of tax havens to escape from taxation and regulation.
‘Brexit and Trade’ sets put a new option for Britain. Instead of removing protective regulations against environmental threats it advocates establishing high Green standards and practical localisation measures. It would address the very real social, economic and environmental problems of globalisation, serving present and future generations well.
The rational case against metro mayors ably set out by Richard Hatcher, George Morran and Steve Beauchampé, has been shattered for the writer by the media-feeding chaotic, emotion-led, vicious, counterproductive squabbling in the Labour & Conservative ranks.
Still, evidently, a tribal people, we appear to need the ‘high-profile leadership’ extolled by Andrew Carter, chief executive of the Centre for Cities , largest funders Gatsby Charitable Foundation (Lord Sainsbury) and Catapult network, established by Innovate UK, a government agency. (see report cover right)
As yet, the announcements made by the West Midlands metro mayor Andy Street, respected even by most opponents of the post, with a business record seen as a guarantee of efficiency, are provoking little dissension.
Dan Jarvis, who is expected to win the Sheffield election becoming Britain’s seventh metro mayor, intends to continue to sit in the House of Commons to work for a better devolution deal and speak for the whole county. (map, regions in 2017)
His desire to stay in parliament while serving as a mayor is thought, by the author of FT View, to reflect a recognition that the real authority and power of these positions is limited:
- The six mayors have no say on how taxes are raised and spent.
- Outside Greater Manchester, the mayors have little control over health policy.
- Major spending decisions on transport policy are still taken by central government.
Days after taking office in Greater Manchester, Andy Burnham’s announcement of a new fund to tackle the region’s homelessness problem was backed by ‘a chunk’ of his own mayoral salary.
Andrew Carter points out that England’s mayors are highly constrained in their control over local tax revenue and how it is spent, compared with their counterparts in other countries.
FT View describes this extra layer of government as yet merely creating cheerleaders, adding:
“Voices alone will not be enough to shift economic and political power to the regions. England’s mayors need more control. If the government is serious about devolution, the mayors need the powers to match that ambition”.
Could well-endowed, unsuborned metro mayors out-perform successive corporate-bound national governments?
The presenter of this BBC radio programme, Adrian Goldberg, grew up on the Druids Heath council estate in Birmingham, the home of the ‘municipalism’ pioneered by Joseph Chamberlain when he was Mayor of Birmingham – summarised by Walsall MP John McShane in the Commons in 1930:
“A young person today lives in a municipal house, and he washes himself … in municipal water. He rides on a municipal tram or omnibus, and I have no doubt that before long he will be riding in a municipal aeroplane. He walks on a municipal road; he is educated in a municipal school. He reads in a municipal library and he has his sport on a municipal recreation ground. When he is ill he is doctored and nursed in a municipal hospital and when he dies he is buried in a municipal cemetery.”
Adrian is described as being an ideal candidate to judge the changing nature of the local council, because when he and his family moved there the local authority:
- built properties and
- collected the rent.
- Adrian took a council-subsidised bus service to
- the secondary school run by his local education authority.
- On the way home he’d drop into his council-run library to pick up some books
- or take a swim in the council run pool.
He comments, “Today the situation is much more complex”
Adrian considered the effect of austerity on the role of councils today. Birmingham council has almost halved its staff since 2008, from around 24,000 to 12,500. Last year another £28m was cut from Birmingham’s adult care budget of £230m. 2017/18 – the seventh year of cuts – is predicted to be the toughest year yet with expected reductions of £113m to the council’s overall budget, on top of £650m already cut since 2010.
Local government grants and powers have been greatly reduced in several areas, including education and housing. Read more about the following cases here.
- The fate of the formerly successful council-run Baverstock Secondary School in Druids Heath
- The group of residents who set up the Friends of Walkers Heath Park in November 2011
- The volunteers who are helping to run the library
- Druids Heath’s handsome and historic Bells Farm community centre (below), with its food bank and other services, also kept going by local volunteers.
The link also leads to news of high-rise tower blocks in the area; dilapidation, damp and fire hazards go unremedied, the splendid concierge system was abandoned and full time neighbourhood office advice centres, closed in 2006, were replaced by a private call service which was expensive, often not answering, with staff unable to supply the information needed.
In Birmingham there was a move under John Clancy’s leadership to take back ‘in-house’ the services currently undertaken by profit-making private companies, deciding not to renew one Capita contract and considering the future of refuse collection in the city. This, because the ‘market place’ economy which has developed, privatising refuse collection, road maintenance and ‘back office’ functions in Birmingham, has proved to be more expensive and often less efficient. This hope is fading as Richard Hatcher reports on the new regime: Birmingham Council Children’s Services contracted out, Children’s Centres closed.
The health and safety of council tenants is evidently not a government priority
Inside Housing reports the housing minister’s description of sprinkler systems for high rise blocks as “additional rather than essential” and refusing a council’s request for funding promised after the Grenfell Tower tragedy.
Strangely, the conservative Prime Minister expresses admiration for Joseph Chamberlain
Mayor of Birmingham in 1873, city MP in 1876, Joseph Chamberlain directed the construction of good housing for the poorest, libraries, municipal swimming pools and schools. Unlike Ms May and colleagues, he was not in favour of a market economy, arguing for tariffs on goods from countries outside the British Empire. He was also an ‘economic interventionist’ (see Lewis Goodall, Newsnight), described as a “gas and water socialist”. He took profit-making private enterprises into public hands, declaring that “profit was irrelevant”.
Ms May’s government continues to implement a series of cuts affecting the lives of the country’s poorest and most disabled with might and main.
Ironically the contemporary politician sharing Chamberlain’s principles is the opposition leader, Jeremy Corbyn, whose policies she echoes but does not implement.
Twenty years ago, at the Mebyon Kernow National Conference on 4th October 1997, Dick Cole was elected the Leader of the Party for Cornwall. Two decades on, Cllr Cole continues to be a prominent public figure who is still at the helm of MK and serving his local parish of St Enoder on the unitary authority. First elected to Restormel Borough Council in 1999, he was re-elected in 2003 and 2007.
During this time, he balanced his civic duties with his work as an archaeologist (Cornwall County Council). When Cornwall Council was created in 2009, Dick stood down from his employment, so that he would be able to stand for the new authority. He was subsequently elected in 2009, 2013 and 2017.
In the most recent local election from earlier this year, he polled a vote share of 83%. His majority was the largest achieved by any candidate in Cornwall, and this was his fifth consecutive local election contest in which he polled over 75% of the vote.
Mebyon Kernow – the Party for Cornwall – is a modern and progressive left-of-centre political party, campaigning for a better deal for Cornwall and a fairer, more equitable world. It exists to fight for ALL the people of Cornwall, with a political programme that puts Cornwall first and offers an alternative to the London-centred parties.
Speaking on behalf of MK’s ruling National Executive, Deputy Leader Cllr Loveday Jenkin has paid tribute to Dick’s work as Party Leader. She said: “Dick’s long-standing commitment to Cornwall and its people is extraordinary. He has been at the heart of so many campaigns and it is truly remarkable that he has found so much energy to battle for Cornish communities over such a significant period of time.
“It is inspiring how hard he has worked as the leader of Mebyon Kernow and as a proactive local councillor. We are extremely proud of the work that he has done pushing for meaningful devolution to Cornwall, fair funding for Cornwall and its public services, as well as his interventions on a host of planning, housing and other matters. It is disappointing that so much of MK’s pro-Cornwall agenda has not found favour with the other political parties in Cornwall and Westminster, but we are determined to continue to campaign with Dick to secure a better deal for one and all in Cornwall.”
Earlier this year, Dick was listed as No. 3 on the “Cornish List” of the top 50 people who “lead the way in campaigning on Cornish issues” and “flying the black and white flag for Cornwall.”
The list was prepared by the Cornwall Live website, for the Cornish Guardian, Cornishman and West Briton newspapers. He has been at the forefront of numerous campaigns for a better deal for Cornwall, its communities, economy and environment. Read about six of his many achievements here.
Cole addressing MK conference
“Over the past few months, the UK Prime Minister made numerous assertions that there would be no snap General Election. She also repeatedly stated that the next General Election would take place in 2020, as specified by the Fixed-Term Parliaments Act. As a consequence, Mebyon Kernow has not been making preparations for parliamentary elections and, in 2017, we have focused our efforts on the elections to the unitary authority and town and parish councils across Cornwall. Our members consider that the Prime Minister and other Westminster politicians have shamefully misled voters on this matter and are extremely angry at the disrespectful way in which the General Election was announced during local elections. General Election campaigning undoubtedly over-shadowed and subverted the elections to Cornwall Council, where the focus was shifted away from important local issues and onto Westminster party politics, to the obvious benefit of the Conservative Party.”
Dick commented on Facebook that it had been hard to generate coverage in the mainstream media for MK. It announced that the party would not be contesting seats at the 2017 General Election. As a consequence, he then had to spend much of the day dealing with the media – a live interview with Radio Cornwall at 7.00, and recorded interviews with both ITV and BBC Spotlight. It seemed strange that there was almost zero coverage of MK’s local election campaign on television and yet when they announced they were we not going to stand they got full coverage.
He has been personally responsible for more than forty successful grant applications, large and small. In all, over £570,000 has been secured for St Enoder Parish Council and other community groups.
These projects have included the construction of new community buildings, improvements to existing village halls, as well as the purchase and installation of new play equipment and skate parks.
Hopefully one day there will be proportional representation in England, giving Mebyon Kernow and the Green Party the chances that the SNP have in Scotland and Plaid Cymru in Wales.
2014 meeting with Natalie Bennett, then Green Party leader and Emily McIver of East Devon Green Party
Is that news to anyone?
This site and others have been focussing on this appalling phenomenon corrupting governance for years, so much so that corruption of politicians and supporting media is no longer shocking: it is the norm.
As such, frequent news of revolving doors and rewards for failure has been under-reported on this site of late – despite many significant leads from regular readers – because these items just repeat our view of the state of the nation.
However the ever-eloquent George Monbiot is more persistent
He explains: “Dark money is the term used in the US for the undisclosed funding of organisations involved in political advocacy. Few people would see a tobacco company as a credible source on public health, or a coal company as a neutral commentator on climate change. To advance their political interests, such companies must pay others to speak on their behalf”.
Though corporate America was horrified by some of Donald Trump’s positions, especially on trade, once he had secured the nomination, big money began to recognise an unprecedented opportunity.
Monbiot continues: “Trump was prepared not only to promote the cause of corporations in government, but to turn government into a kind of corporation, staffed and run by executives and lobbyists. His incoherence was not a liability but an opening: his agenda could be shaped. And the dark money network that some American corporations had already developed was perfectly positioned to shape it”.
He looks into the historical background:
“Soon after the Second World War, some of America’s richest people began setting up a network of thinktanks to promote their interests. These purport to offer dispassionate opinions on public affairs. But they are more like corporate lobbyists, working on behalf of those who founded and fund them.
“These are the organisations now running much of the Trump administration”.
He then relates the story of MP Liam Fox
In 1997, Liam Fox founded an organisation called The Atlantic Bridge. Its patron was Margaret Thatcher. On its advisory council sat the future cabinet ministers Michael Gove, George Osborne, William Hague and Chris Grayling. Fox, who became a leading campaigner for Brexit, described the mission of The Atlantic Bridge as “to bring people together who have common interests”. It would defend these interests from “European integrationists who would like to pull Britain away from its relationship with the United States”. The Atlantic Bridge (link no longer informative) was later registered as a charity – only after it collapsed did the full story of who had funded it emerge.
Read the tedious and depressing details in the Guardian or on this site here.
How did Fox achieve this position, after the scandal that brought him down six years ago? Monbiot explains: “The man who ran the UK branch of The Atlantic Bridge was his friend Adam Werrity, who . . . carried a business card naming him as Fox’s adviser but was never employed by the Ministry of Defence, joined the secretary of state on numerous ministerial visits overseas, and made frequent visits to Fox’s office”.
The Charity Commission investigated The Atlantic Bridge and determined that its work didn’t look very charitable. It had to pay back the tax from which it had been exempted (Hintze picked up the bill) and the trustees shut the organisation down. Monbiot continues; “As the story about Adam Werrity’s unauthorised involvement in the business of government began to grow, Fox made a number of misleading statements. He was left with no choice but to resign”.
As the Financial Times reported, the election of Donald Trump transformed the fortunes of Liam Fox: he is back on the front bench, with a crucial and sensitive portfolio – Secretary of State for International Trade – an indispensable member of Theresa May’s front bench team: “The shadow diplomatic mission he developed through The Atlantic Bridge plugs him straight into the Trump administration”.
Taking back control from Europe means closer integration with the US
Monbiot adds that European laws protecting the public interest were portrayed by Conservative Eurosceptics as intolerable intrusions on corporate freedom and the transatlantic ‘special relationship’ is a relationship between political and corporate power. He ends with the following warning, sent by President Franklin Roosevelt in 1938 to the US Congress:
“The liberty of a democracy is not safe if the people tolerate the growth of private power to a point where it becomes stronger than their democratic state itself. That, in its essence, is fascism”.
Monbiot adds “It is a warning we would do well to remember”.
The upturn noted in the city of Birmingham’s governance is being achieved despite serious funding cuts. It is reported that most of the extra cash set aside to help councils to cope with funding changes – ‘transitional grants’ – are going to Conservative areas.
This move appears to add an eighth strategy designed to ‘rig’ the electoral system to the seven listed by Jeremy Corbyn in his Fabian Society address – all designed to enable the party, with its narrow majority and drastically falling membership, to hold on to power, by weakening opposition inside and outside parliament.
The Birmingham Post records a visit by most of the city’s MPs to enlighten Local Government Secretary Greg Clark (Department for Communities and Local Government) about the effect the cuts would have on Birmingham.
Most of the extra cash set aside to help councils cope with funding changes is going to Conservative areas.
Labour MP Steve McCabe (Selly Oak) said: “It’s an outrage that while Birmingham is coping with the biggest cuts in our history the Government has decided to give millions of extra funding to wealthy areas like Buckinghamshire.”
Local Government Secretary Greg Clark told MPs the “transitional grant” would be targeted at councils which suffer the “sharpest reductions” in the revenue support grant received from central government, but figures published by the Department for Communities and Local Government show that none of this grant is going to the major towns and cities of the West Midlands, even though they face major cuts to their grant.
Cash from the transitional grant is going to outer London boroughs such as Conservative led Bromley, which receives £4.2 million in transitional funding over two years; Conservative-led Kingston-upon-Thames receives £2.6 million. Havering, where Conservatives are the largest group, receives £2.8 million; Outer-London Sutton, gets £2.6 million; Conservative-led Buckinghamshire receives £9.2 million and Oxfordshire County Council, which covers the Prime Minister’s Witney constituency, will receive an extra £9 million over the next two years.
But Birmingham, Dudley, Walsall, Sandwell, Coventry and Wolverhampton get nothing.
However, the Labour Party membership doubled since the May and has continued to increase. It is seizing the opportunity ‘to breathe life into all sections of the party and draw on the collective wisdom of all’ as Jeremy Corbyn told the Fabian Society audience. His advice:
“Let’s work together to create and deliver a fairer Britain”.