LGA sets out alternative proposals to Cities Devolution Bill

21 May 2015 12:59 PM

Devolution must reach all corners of England in order for communities to share in the Government's ambition to address the nation's economic and social challenges, according to a report by local government leaders.

The Local Government Association (LGA) white paper on devolution includes a warning to the new government that the principle of cuts without reform could stifle growth and development and challenge the sustainability of vital local services.

Today's publication builds upon the evidence of three independent commissions that all conclude devolution must reach non-metropolitan England, responsible for 56 per cent of national output, and sets out a roadmap to achieve this.

The paper also brings together views from across the LGA's 372 member councils and acknowledges the Cities Devolution Bill, expected in next week's Queen's Speech, but argues that devolving only limited powers to metropolitan regions does not go far enough.

In response, the white paper and its fully-costed supporting documents argue that if radical reform is pursued, up to £20.6 billion in potential public sector savings could be identified, as well as more than £80 billion in economic growth, 700,000 new jobs and many other benefits from devolution, including:

• Supporting the elderly to live independently and addressing a £1.9 billion adult social care funding-gap that is rising by £400 million a year with the ageing population.
• Building 500,000 more homes by incentivising and reforming house building programmes and catering for some of the 1.7 million households currently waiting for an affordable home.
• Providing every child with a place at a good local-school, halving the number of jobless young people and investing in training and education to close the gap on a skills shortfall set to cost up to 25 per cent of growth, by 2022.
• Increasing employment by replacing the £620 million Work Programme with two devolved schemes dealing with the long-term unemployed and the 2.5 million disadvantaged claimants separately.

Cllr David Sparks, Chair of the LGA, said:

"Local councils recognise the need for change and are proposing a new partnership with government to strengthen our country from the ground up and establish an equitable settlement for England.

"The evidence is overwhelming and devolution within England is the most effective way to create jobs, build homes, strengthen healthy communities and protect the vulnerable in all parts of the country.

"Now is the time for bold solutions to help revive local democracy, strengthen our nation and deliver better and more efficient services over the course of this next parliament and for the parliaments to come.

"If we are to rebalance our economy ultimately all places, from our great cities to the powerful engines of our economy in non-metropolitan areas, need greater freedom from Whitehall."

Recent public opinion polling found that in every part of the country, eight out of 10 people of those surveyed supported giving more decision-making powers on issues such as tax, education and policing to local areas.

Modelling by Ernst & Young shows that devolving more decisions over public services to local areas would save between £9.4 billion and £20.6 billion while Key Cities estimates devolution could save £12 billion over the next parliament.

While the Government's Cities Devolution Bill offers cities with an elected mayor new powers the LGA is calling for an English Devolution Bill and a fair Spending Review settlement that enables local fiscal retention while allowing people to choose an appropriate system of governance.

Cllr Sparks continued: "Local government's offer to the new government is simple, give local communities the freedom and powers to play their full role in economic and social prosperity.

"This would improve the outcomes for local people, families and communities, maximise the value for money of public spending and strengthen democratic accountability for public services.

"We are certain that by working together, we can provide the foundations on which the country's success can be built."

Notes to editors

The full white paper is available to download here: 
English Devolution: local solutions for a successful nation (PDF)