England’s regions – including Tory shires – have joined forces to demand an end to austerity and a radical constitutional settlement that will give them the money and power to run their own affairs.
The leaders of 119 English councils – of which 65 are controlled by Labour, 40 by the Conservatives and 10 by the Liberal Democrats – say in a letter to the Observer that the English people will not accept Scottish devolution unless it is matched by an equal redistribution of power south of the border.
They also call on George Osborne to give them the ability and cash to run their own affairs, so that they are no longer at the mercy of financial decisions and diktats by a distant Whitehall.
The letter states: “Earlier this week, the Smith commission [on Scottish devolution] set out a better deal for Scotland, granting more control over funding and recognising the importance of devolving power down beyond Holyrood. It’s England’s turn now.”
The intervention is evidence of widespread discontent over the way power in England remains centralised in Westminster – something highlighted by the Scottish referendum and subsequent moves to devolve power north of the border.
Demonstrating that unease is not confined to Labour-run authorities, or to the north of England, the letter is signed by the leaders of several big Tory-run councils in the south, including Buckinghamshire, Surrey and Oxfordshire county council, which covers David Cameron’s constituency of Witney.
Last week, there were signs that pressure was building for a new deal in Conservative, as well as Labour and Lib Dem circles, when mayor of London Boris Johnson signed a letter calling for more powers to be devolved.
The huge list of signatories to the letter – which also calls for an end to savage financial cuts imposed by the centre – demonstrate growing all-party frustration at a system that leaves local communities at the mercy of a central government with little or no understanding of each area’s particular needs. The letter states: “There is compelling evidence that taking decisions closer to the people affected achieves better results and saves money.
“It is vital that the autumn statement sets out a new settlement for England, which puts powers beyond Westminster, and shares out tax and spending across the UK on a fair basis.
“The people we represent, who look north of the border with envy at the greater control Scots are to get … will expect nothing less.”
The council leaders express vehement opposition to further cuts in their budgets saying they are already at breaking point. Many local authorities have already suffered cuts of up to 40% in their budgets since 2010 and fear that, as the government struggles to bring down the deficit as a result of lower-than-expected tax receipts, they may be in line for more. They warn that NHS costs will rise if councils cannot fulfil their obligations to the elderly.
“Funding for services provided by councils has borne the brunt of austerity, while demand continues to rise,” the leaders say. “When the chancellor delivers his autumn statement this Wednesday, ‘more of the same’ cannot be an option.
“After a 40% reduction in funding during this parliament, our efficiency savings are coming to an end. Further reductions without radical reform will have a detrimental impact on people’s quality of life and will lead to vital services being scaled back or lost.
“Services such as libraries, leisure centres and road maintenance continue to buckle under the strain of cuts and the ever-rising cost of caring for our growing elderly population. Failure to address this will not only jeopardise other services, but will pass costs on to the NHS which will have to pick up the pieces if we cannot protect adult social care or provide the services that keep people healthy.”
Both Labour and the Tories have said they will devolve more power and financial control to the regions, although there is deep scepticism in the regions about how far this will go.
Last week there were signs that Labour is being riven by internal disagreements on how much power and financial control should be devolved.
On Wednesday, Osborne will pledge £2bn more to the NHS and also make much of his plans to establish a “northern powerhouse” by confirming plans for at least £15bn of long-term investment in new roads and rail systems in the north. Some Labour MPs are angry that the devolution strategy championed in the party’s own policy review is now being taken up by Osborne, before Labour itself has agreed that it will feature in the party’s own manifesto.
The chancellor, who will have to revise his borrowing figures upwards, is expected to deliver a highly politicised autumn statement in which he will stress that, while the economy is enjoying a return to growth, there are dangers on the horizon.
He is expected to say that “our economy is in a much better place than four years ago”, adding “we must not throw this away and go back to square one … we need to see off those at home who would risk everything with more reckless borrowing and spending.”
Chris Leslie MP, Labour’s shadow chief secretary to the Treasury, said the reason why the chancellor was struggling to control borrowing was that too many people were in low-paid jobs and suffering from falls in living standards.
“Rising living standards, more good jobs and stronger growth are also vital if we’re to have a balanced plan to get the deficit down,” he said. “And no fair plan can include keeping a £3bn-a-year tax cut for people earning over £150,000.”
Correction, 30 November: This article originally said George Osborne would pledge £1.5bn for the NHS on Wednesday. That should have been £2bn. This has been changed.
