Deadlock on deal ‘costing economy billions’
Devolution warning as mayors meet Chancellor
DEVOLUTION ‘DEADLOCK’ is costing the economy billions, it is claimed today, as the Chancellor holds his first summit with Northern Powerhouse metromayors.
Philip Hammond will discuss how to raise productivity across the North when he holds talks with the metro-mayors of Greater Manchester, Liverpool and Tees Valley.
But the ongoing wrangle over Yorkshire’s devolution plans means this region will not be represented in the discussions with the Chancellor.
Manchester, Liverpool and the Tees Valley elected new metro-mayors in May after agreeing devolution deals with the Government to take more control over their own affairs.
The Local Government Association (LGA), which represents councils, today warns that the lack of progress on devolution to other areas, including Yorkshire, is damaging to the economy.
Coun Mark Hawthorne, chairman of the LGA’s people and places board, said: “Councils want to see their communities reap the benefits of having greater powers and funding to build more homes, secure the infrastructure essential to economic growth, improve our roads, equip people with the skills they need to succeed and increase access to fast and reliable digital connectivity for all.
“But there are concerns that devolution discussions have stalled and opportunities are being missed.”
The LGA called on the Government to take a more flexible approach to devolution deals to ensure more areas benefit.
Mr Hammond’s visit to the North today, including a stop in Leeds, comes as Yorkshire council leaders draw up a new devolution plan for the region.
Last week, 17 of 20 councils backed the principle of the One Yorkshire proposal to elect a single metro-mayor for the region.
Wakefield has not yet backed the idea and Rotherham and Sheffield remain committed to the Sheffield City Region deal they signed two years ago which has stalled in recent months.
Mr Hammond will face questions over the Government’s willingness to consider the One Yorkshire approach.
The visit will also be a chance for him to stress the Government’s commitment to the Northern Powerhouse idea after weeks of criticism following changes to its plans to upgrade rail connections in the North.
Mr Hammond said: “Boosting productivity in the North is at the very heart of the government’s ambition to build an economy that works for everyone.
“As we prepare to leave the European Union it is even more important that we support the Northern Powerhouse to reach its full potential.
“That’s why we are investing record amounts in infrastructure, and working with metromayors to encourage growth and create opportunities throughout the North.”
The TUC in Yorkshire will today hold a meeting to discuss the One Yorkshire plan.
There are concerns that opportunities are being missed. Coun Mark Hawthorne, chairman of the LGA’s people and places board.
LEEDS COULD be one of the first places in the country to agree a ‘housing deal’ with the Government to help build thousands of new homes.
Chancellor Philip Hammond will discuss the emerging agreement when he visits the city later today.
Mr Hammond is expected to visit a housing development in the city as part of a wider tour of the North which will include a meeting with metro-mayors from Manchester, Liverpool and Tees Valley.
The final housing deal could be announced later this year as part of Mr Hammond’s Autumn Budget.
Housing deals were a measure set out in the Conservatives’ General Election manifesto earlier this year.
The Treasury said housing deals “will look to increase the supply of housing in areas of high demand”.
Communities Secretary Sajid Javid, the Cabinet Minister responsible for housing, said: “I want to strike housing deals across the country to support councils’ ambitious and innovative plans for new homes, and to help boost supply where it’s most needed.
“We’re committed to considering all tools at our disposal, and by using our money more flexibly we can deliver more homes.
“We’re making good progress with a Leeds housing deal and hope to announce further details at Autumn Budget.
“As well as increasing housing, this will help grow local economies as part of our commitment to the Northern Powerhouse.”
The Conservative manifesto, launched in Halifax, promised to help councils which want to “build high-quality, sustainable and integrated communities”.
It continued: “We will enter into new Council Housing Deals with ambitious, pro-development, local authorities to help them build more social housing.”
The Conservatives promised to give councils access to “significant low-cost” funding to build extra homes.
Council homes built through ‘housing deals’ will automatically be offered for sale to private buyers after a 10 or 15-year period with the money raised used to build more properties.
Tenants living in homes built as part of the scheme will have an automatic right to buy the property when it becomes available.
The Government has come under growing pressure to take stronger action over housing amid growing evidence of a disconnect between wages and house prices.
During David Cameron’s time in Downing Street, the Government introduced schemes including ‘help to buy’ which gave financial help to housebuyers.
But the measures were criticised for focusing on tackling affordability rather than increasing housing supply.
Mr Javid signalled a significant change in tone last year with a speech calling on Conservative MPs and council leaders to stop opposing the building of new homes in their areas.
However, the Government has been accused of failing to match its rhetoric with actions.
Last year, Bradford Council’s plans for new housing were put on hold at the orders of then-housing minister Gavin Barwell following complaints about their potential impact on the green belt.
The Government later lifted the block but warned it would be watching the council closely.
Research published by housing charity Shelter earlier this year suggested the average price of a new home in Yorkshire, £189,950, was unaffordable to more than eight out of 10 families currently renting.