Devolution South of the Border

[John Short]

Now that the Yes Campaign in Scotland has been enticed with Devo-Max, the devolution debate has come south of the border with this report published (and associated conference)  today.  See also http://www.parliament.uk/business/committees/committees-a-z/commons-select/communities-and-local-government-committee/inquiries/parliament-2010/cities/ for material on decentralisation.

See also http://niesr.ac.uk/publications below on devolution and borrowing powers.

[John Short]

And yet another report

A radical plan to give Greater Manchester greater control of its finances and an elected Mayor is being proposed by the independent think tank ResPublica. The new report, Devo Max - Devo Manc: Place-based public services, argues that Greater Manchester should be fully devolved with control over all public spending. In short, ResPublica recommends that Greater Manchester should have what Scotland wants.

The report includes a call to action and sets out a roadmap for such devolution to take place. It says that within 100 days of the next Parliament, a ministerial led group should agree the steps to devolution. As part of the new settlement Greater Manchester will commit to devolving further to localities taking savings and local initiatives as near to their consumers as possible.

Key recommendations from the report include:
Total Manchester public spending should be brought under the control of Greater Manchester Combined Authority, under a new governance structure that includes a local board and relevant Secretaries of State.

The Authority should be given legal powers to enact local joined up Government, eliminating duplication and encouraging multi-agency initiatives.

Begin by giving power over property taxes, move on to income taxes.

Powers to reinvest savings and proceeds locally, while a percentage of overheads remains with Whitehall.

Create a new democratic system with an elected Assembly led by the Mayor of Manchester.

- See more at: http://www.respublica.org.uk/item/Devo-Max-Devo-Manc-Place-based-public-services#sthash.0ZhO3o1f.dpuf

[FitzFord]

John,

To what extent are/have subnational governments been, allowed to decide and design the nature and structure their governance structures, relationships and systems. How much has this always been so, or how much is this stimulated by the Scotland proposal to decide by vote to establish itself as a separate country.

Fitz.

[John Short]

There is devolved power to Scotland, Northern Ireland and Wales but not England or its "regions".  The devolved entities are funded by a block grant (determined by the Barnett formula - see attachment or http://en.wikipedia.org/wiki/Barnett_formula) and have no tax raising powers (other than local government taxes/fees).  The level of devolved services varies between each of the countries and the proposal by the No group has been to offer Devo-Max as an alternative to independence thus increasing the devolved services but also introducing some taxation powers but still maintaining the block grant through the Barnett formula.  The now Lord Joel Barnett wants his formula scrapped as it has no relationship to need and as he says it was only introduced to buy him some breathing space when he was Sec. to the Treasury!  He was interviewed on BBC radio last night on the PM programme (Radio 4) at 10 pm and reiterated this.  I was at a conference in Birmingham almost 13 years ago where he was speaking after dinner and said the same then.  He was taken notice when he introduced it but ignored when he says get rid.  The difference in the per capita spend between the North east of England (relatively deprived and with a big rural area) and Scotland is outrageous but I would say that living in rural Northumberland (though neither Scottish nor English).  No matter which way Scotland goes, there will be big pressure for proper devolution to England and within England - watch this space!

[FitzFord]

John,

Thanks for your useful and clear summary of the current and proposed system. I did not respond immediately as I was hoping that I would be able to decipher a clear, plausible path to a system that was efficient and fair/balanced. I have to confess that I am at a loss up to now, as I cannot find a desirable, efficient system that could be readily derived from the current circumstances. I would invite other readers to make suggestions. The intellectual exercise may well help us all to think through paths to desirable outcomes from complex circumstances that would need careful processes to transform unsatisfactory systems to workable and efficient outcomes.

Fitz.