devolution

Pursuit of elusive ‘devolution’ deal is leading to a new layer of bureaucracy: an unelected, one-party ‘Heart of the South West’ combined authority

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speaking at Cabinet 8.11.17This week’s DCC Cabinet meeting approved a Conservative proposal to set up a formal Joint Committee with Somerset (report at item 7 of the agenda). Objections were raised to aspects of the proposal by the leaders of the Liberal Democrat and Labour groups, and I spoke on behalf of the Non-Aligned Group (which comprises the three Independents and one Green councillor). You can watch the debate, and read my speech below:

I think we know what is going with devolution. We have a government which is ripping the heart out of local government spending, pushing services to the border of viability; this is causing enormous difficulties for this council but also driving down local incomes and so weakening our regional economy. But at the same time it is holding out the carrot of giving us limited extra powers and returning a modest bit of the lost funding, if we jump through its ‘devolution’ hoops. The government barely seems to know what it’s doing over ‘devolution’ and the hoops keep changing, but we still have to guess what they are and do our best to jump.

And so we end up with the papers in front of us today. We are asked to endorse a ‘vision’ of higher productivity and economic growth and create an extra layer of bureaucracy to support it. The problem is that the vision bears little relation to reality. The ambition is to double the regional economy in 18 years, i.e. to increase its size by 100% – this requires a compound growth rate of 3.94%. In the real world, the actual growth rate in the SW over the last 18 years has been 30% and the annual rate 1.47%. Nationally, the UK economy has never grown by more than 3% p.a. in any of the last 18 years, and is currently veering downwards below 1.5%.

So we are asked to believe that we can increase local productivity growth from below the national average to well above it, and thereby buck not only regional but also national growth trends. How are we going to that? By waving the wand of the Hinkley nuclear white elephant and hoping that it somehow spreads some stardust over Devon? I can tell you that so far the LEP has produced almost nothing which offers help to the economy in the rural, small-town, coastal Devon which most of us represent.

 

Let’s take a reality check – if I come to the budget meeting and tell you, ‘the economy will grow by 4%, business rate receipts will shoot up, so spend, spend, spend’, you are going to look on me as a madman, and rightly so. So why should Devon County Council buy this phoney prospectus? And why should we embark on radical constitutional change to support it?

I know this is only a proposal for a Joint Committee, with limited financial implications. But it is clearly presented as enabling us to ‘move relatively quickly to establish a Combined Authority’ if that is deemed necessary. We already have 3 tiers of local government. This is the beginning of creating a fourth tier, without a mandate, without elections, and without balanced political representation.

95% of the people of Devon don’t even know they’re living in something called the ‘Heart of the South West’. It says everything about the lack of democracy in this so-called devolution that we are using this PR-speak rather than the county names which people understand. I know the Government prefers cross-boundary devolution projects, but Cornwall got a stand-alone deal, and we are much bigger in both population and area. 

Apart from Hinkley there is no strong reason for us to tie ourselves to Somerset rather than Cornwall or Dorset. Our local government is being distorted to support an anachronistic nuclear project – for the benefit of companies owned by the French and Chinese states – instead of developing renewable energy for which we have a good basis in the SW.

I have this Cabinet down as a group of a level-headed people. But here we have fantasy economics, making claims which are about as credible as the figures on Boris’s battlebus, and constitutional change which means that Devon people and their councillors are asked to start handing over democratic control to a one-party quango in conjunction with unelected business people.

Since the Government is always changing its mind about devolution, there is no reason why we shouldn’t change our minds too. I ask you to

 

  1. go back to the Government with a realistic agenda for Devon, that addresses the needs of all areas of the county and all sectors of our economy and society
  2. back off from this unnecessary proposal for a joint committee.

 

 

When will the Heart of the South West Local Economic Partnership (LEP) offer something to small town, rural and coastal Devon?

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This was the question I asked Chris Garcia, of the Heart of the South West LEP, when he appeared before the Corporate Infrastructure and Regulatory Services Scrutiny Committee (CIRS) at Devon County Council yesterday. Mr Garcia said that Government funding was geared mainly to urban areas, but the LEP has a ‘rural growth commission’ which will publish a report shortly. I shall look out for it.

Mr Garcia didn’t reply, however, to my criticism that the LEP is itself skewed by the ‘white elephant’ new nuclear power station at Hinkley C in Somerset. This project, rashly endorsed by Theresa May who had a chance to halt it, will cause British consumers pay over the odds for electricity for decades to come, based on an unproved type of nuclear station which is not supported even by many who believe nuclear energy is necessary for national energy needs, and in the control of French and Chinese state companies! As renewables get cheaper and electric storage becomes viable, this is a project we don’t need. True, it will bring some jobs to Somerset, but not to most of Devon.

Mr Garcia came with a powerpoint and brandishing the LEP’s latest glossy annual report. I asked that in future, we had proper written reports circulated in advance which members could scrutinise.

Mr Garcia didn’t mention the word ‘devolution’. HoTSW is leaving all that to Devon and Somerset county councils, who apparently now planning to establish a Joint Committee. What that will involve is something else county councillors will need to scrutinise carefully.