|Printable version||E-mail this to a friend|
Northern Powerhouse needs proper fiscal devolution to match Scotland and Wales – IPPR North on Spending Review
Director of IPPR North, Ed Cox, responded to yesterday’s Spending Review
On the Northern Powerhouse and infrastructure investment:
“The Chancellor’s further announcements about investment in Northern connectivity are welcome as are the multiple investments in business support, innovation, culture and the arts.
“Trans-Pennine and other Transport for the North improvements are long overdue but there is no additional capital commitment beyond the previously announced £13bn which will fall well short of forthcoming Transport for the North plans.
“It is also important to note that the £61bn new money committed to transport capital will only return transport investment to its levels in 2009/10.”
On local government finance and fiscal decentralisation:
“The devolution of business rates is welcome in principle but the devil will be in the detail. The local government rate support grant has been instrumental in supporting those more economically disadvantaged areas and so to phase it out in favour of business rates retention will give those areas great cause for concern. Some form of redistribution will still be necessary and many will fear these changes will simply continue the steady attrition of local government funding and services.
“In this context, protecting social care spending through giving councils the ability to raise a special precept to raise council tax by two per cent is some form of release valve. But councils will think twice before putting it to a public referendum. If ever there was a case for devolving the blame for cuts then this is it.
“In the case of the council tax precept and the proposed business rate precept, government is proposing they are ring-fenced for specific purposes, this again betrays any genuine commitment to proper fiscal devolution. If income tax devolution is good enough for Scotland and Wales then why not for the much bigger Northern Powerhouse?
“Greater local authority freedoms to benefit from the sale of assets will be an opportunity for some councils, but selling the family silver to fund rising revenue demands is not normally considered a prudent course of action.”
Danny Wright – firstname.lastname@example.org 07887 422789
Latest News from
Kings Fund - Adoption charity named overall winner of the 2017 GSK IMPACT Awards23/05/2017 16:35:00
A charity supporting children and families affected by adoption has been named overall winner of the 2017 GSK IMPACT Awards.
Demos’ response to digital prosperity and security pledges in the Conservative Party Manifesto23/05/2017 15:35:00
The Conservative manifesto contains a whole section on digital prosperity and security – an interesting proposal, with ideas ranging from the much-needed to the ominously vague. As ever, the key here will be how these thoughts are translated into regulation.
CSJ - Manifesto week: is this the social justice election?23/05/2017 14:35:00
A former medical acquaintance used to joke that the most sensitive nerve in the body is the pocket nerve. People feel policy in their wallet.
Demos’ response to Education, Apprenticeships, Extremism and Integration pledges in the Conservative Party Manifesto23/05/2017 13:35:00
A new strategy to bolster integration is encouraging when the risks of division in society are growing.
The King's Fund responds to Theresa May's announcement on social care costs23/05/2017 12:35:00
Commenting on yesterday’s announcement by Theresa May on social care costs, Chris Ham, Chief Executive of The King’s Fund, said: ‘We welcome the Prime Minister’s announcement that the Green Paper later this year will include a proposal for a cap on social care costs as a way of limiting the catastrophic costs individuals may incur.