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The House | Government Promises Devolution Reform But Mayors Say ‘Begging Bowl’ Culture Persists

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Government Promises Devolution Reform But Mayors Say 'Begging Bowl' Culture Persists

(Tracy Worrall)


9 min read

MHCLG and the Treasury are promising more powers to the devolved regions through a series of reforms. But for all the progress, regional mayors remain frustrated at a ‘begging bowl’ culture forced on them by an untrusting Whitehall. Benedict Cooper reports

At times, delivering this year’s Mais Lecture, Rachel Reeves sounded more like a fierce critic of government devolution policy than someone involved in delivering it.

The Chancellor spoke of the “stifling Whitehall orthodoxies” that have held back the regions; the “local ambition frustrated by central government control”. She attacked the “fiction that a strong economy could be built on the success of just a few places”, and called for a “genuine break with the past” as the only true solution to all of the above.

The language of the lecture must have given some relief to the mayors and officials running England’s devolved authorities. It reflected precisely their frustrations at the slow and limited nature of change.

The lack of power to raise revenues locally and to truly decide, not merely preside over, the prescribed allocation of central Treasury funds, has been at the core of discontent about the way devolution has been delivered since the start.

For now, the details of how it might be solved are with the Chancellor’s Treasury officials. To understand what’s at stake, why frustrations persist and what should be done, we’ve gone straight to the regional mayors and devolution experts.

If a single statistic can tell the story, it must surely be the Organisation for Economic Co-operation and Development’s (OECD) finding, released last year, as to how much autonomy the UK gives its regions compared to other nations.

Among the OECD countries in 2024, the average proportion of overall revenues generated by a central, national exchequer was 53.2 per cent, with the rest being raised, and spent, by regional or federal authorities. In the UK, that figure was 91.8 per cent; the highest by some distance.

The UK’s economy is as centralised as it gets. It makes the Chancellor’s plan to “liberate” the regions, by granting “control over long-term, self-sustaining capital”, extremely ambitious.

Alex Walker, senior researcher at think tank Re:State and former research assistant at the Bennett School of Public Policy, says that while the scale of the job is huge, the intention is right, and necessary to redressing a paradox of the system.

“It’s a very big development,” he says. “England is a big outlier in how fiscally centralised it is. At the moment, you’ve got this decentralisation of spending responsibilities, but not really much decentralisation of revenue raising power.”

Responsibility without power is surely a political leader’s nightmare. And, Walker says, it’s the cause of a democratic deficit at the core of English devolution.

Under the current model, he says, the money comes largely out of general taxation so the accountability is upwards to the Ministry of Housing, Communities & Local Government (MHCLG) and various Whitehall departments: “Once strategic authorities are more financially and fiscally independent from central government it should lead to the accountability being more towards their local electorate in terms of how they are spending that money that’s being raised and generated in the local area.”

There is the way money is raised, and there is the way it is distributed, or not, to the regional authorities.

England is a big outlier in how fiscally centralised it is

Akash Paun, devolution programme director at the Institute for Government, says: “Mayors often speak of the unhelpful ‘begging bowl culture’ created by the funding system they operate within, in which combined authority budgets are a hodgepodge of grants from across Whitehall.

“This is a system that has limited the ability of mayors and local partners to develop joined-up and long-term strategies for their regions, as they have to account separately to numerous different government departments for their use of public money.”

A proposed solution to this surely unsustainable situation is the integrated settlement, an instrument introduced into the English Devolution White Paper of December 2024 as a means to grant authorities access to a “consolidated budget across housing, regeneration, local growth, local transport, skills, retrofit, and employment support”.

The idea is sound. And few would argue with communities minister Miatta Fahnbulleh’s view, who tells The House it is based on the idea that “mayors know their areas better than Whitehall ever could”.

She adds: “That’s why we’re scrapping dozens of ring-fenced grants and giving seven city regions more control through integrated settlements – so they can spend on what their residents actually need.”

Far more contentious, and many mayors say deeply unhelpful, are the many qualifications and stipulations required to reach an integrated settlement in the first place. Namely, that only those authorities proven to have met eligibility criteria and thus elevated to the status of ‘established’ mayoral strategic authority (EMSA) may qualify for an integrated settlement.

At the moment, only seven combined authorities do: in Greater London, Greater Manchester, the North East, West and South Yorkshire, the West Midlands, and the Liverpool City Region.

Seven authorities out of 16. That leaves nine working to meet the criteria to reach the status to receive the funding they need.

Those criteria are extensive. And include a contentious detail that an authority must “have been in existence, with a directly elected mayor in place, for at least 18 months” before it can even submit a request to become an established authority, let alone actually receive the integrated funding.

It has left many mayors in a state of frustration, eager to get on with the work of investing in their regions.

Not least Labour’s Claire Ward, East Midlands Combined County Authority mayor, which has hit its 18 months, applied for established status and subsequent integrated settlement, but still finds itself in ongoing talks with MHCLG about getting to the next step.Ward says: “I want it to move much faster. I want to be in a position where I’m not being held back from the things that we can do in this region because I don’t have the flexibility over the integrated settlements or I don’t have the powers that are going to come with the established status.

Chancellor Rachel Reeves delivers the Mais lecture in March 2026
Chancellor Rachel Reeves delivers the Mais lecture in March 2026 (PA Images/Alamy)

“As mayor I feel it’s my duty to be challenging government to explain why I can’t have those powers, why I can’t have additional funding, why I don’t have that flexibility that would allow me to do far more in terms of being able to create that growth of an opportunity in the region.

“I do not want this region to be held back any longer than it needs to be.”

This is precisely the sentiment of Paul Bristow, the Conservative mayor for Cambridgeshire and Peterborough, a new mayor elected to a new role.

“We’re ready,” he says. “The authority had already done a lot of work, before I was elected last year.

“We’re following MHCLG’s guidance on when we can get established mayoral strategic authority status. The government has said it will only consider an integrated settlement for the next spending review, which is 2027.

“I want to progress that as quickly as possible, and perhaps get elements earlier, because the right time to get Cambridgeshire and Peterborough moving is now.”

The approach that’s been increasingly taken by government departments is them telling us how we should be spending the money

The sense of being held back, it seems, isn’t confined to those authorities awaiting the crucial established status.

The South Yorkshire mayoral combined authority was granted EMSA status and promised an integrated settlement as early as the white paper in 2024. Yet still its Labour Co-op mayor, Oliver Coppard, feels deprived of the powers he was promised. Coppard isn’t holding back in his criticism of a devolution system he says is “founded on a lack of trust”.

“We’ve found the process to be not in the spirit of devolution,” he says. “The principle is not being adhered to by the government. The government wants to hold onto the reins.

“And we’ve had concerns about various departments and what we are being asked to achieve with the money we’re being given. It’s the wrong way around. The approach that’s been increasingly taken by government departments is them telling us how we should be spending the money.”

Precisely what devolution was meant to undo.

There have undoubtedly been big steps forward, and real legislative action. There is grand talk of liberating the regions. But clearly, too, there is residual resistance, bureaucratic or otherwise, to releasing the reins.

“That attitude is still there in central government,” says Walker, “where the local state can’t be trusted to deliver people’s priorities. And when something goes wrong the instinct is to take it back to central government control.

“We’ve been hamstrung by a model where central government micromanages things across all of government.”

The Chancellor has identified the problems and recognised the frustrations of the regions: the begging bowl culture needs to end, and the gross imbalance in mayors’ powers and responsibility needs to be redressed.

And she has drawn broad rhetorical strokes for a solution which could truly transform the devolution process for the better.

There are risks. Vividly voicing the frustrations of regional leaders is fine, if you then fix the problems. Fail to find the right formula – or, worse, do a U-turn – and the tensions between Westminster and Whitehall on the one side, and the hamstrung devolved authorities on the other, could escalate.

Labour could find itself overseeing yet another “exercise in local ambition frustrated by central government control”, and the great opportunity devolution offers the nation as much as the regions could be lost.

An MHCLG spokesperson said: “We have a proud record on devolution. We’ve already rolled out more integrated settlements and cut bureaucracy for mayors so they have more freedom to spend in ways that they think work best for their communities. We’re not stopping there, with our English Devolution Bill, fiscal devolution roadmap, and Right to Request process we’re going even further in moving power and money out of Whitehall and into the hands of those who know their areas best.” 

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Politics Home Article | Public Concern About Climate Change Rises After Summer Of Extreme Heat

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Public Concern About Climate Change Rises After Summer Of Extreme Heat

This summer has been the driest summer in England and Wales since records began in 1836. (Alamy)


4 min read

There is growing public concern about climate change after weeks of wildfires and drought in the UK, according to polling shared with PoliticsHome.

Around three-quarters of people (74 per cent) told an Ipsos poll they are concerned about climate change, up from 69 per cent before the summer. At the same time, the share of people who say they are unconcerned has fallen from 28 per cent to 24 per cent.

Over half (56 per cent) said recent high temperatures had affected everyday activities like work, exercise and sleep either a great deal or a fair amount.

Eighty-seven per cent said it is likely that the country will face similar summer heatwaves in the future, compared with just 3 per cent who said it is unlikely.

The online poll of 1,085 people was carried out against a backdrop of heatwaves, drought and wildfires across the UK.

July was the driest month in England and Wales since records began nearly two centuries ago, with the Environment Agency warning that the heat was affecting farmers, wildlife and water availability. Large parts of the country are subject to hosepipe bans, while a recent wildfire in Suffolk was described as the size of 210 football pitches.

Major wildfires have also impacted European countries like France, Greece and Spain.

Raquel de Luis, Head of Energy and Environment at Ipsos in the UK, told PoliticsHome: “The intense heat this summer and visible wildfires across Europe have served as a visible focus point around discussions on climate change, which may be driving a clear uptick in immediate concern and leaving nearly nine in ten convinced that these heatwaves are our new normal.”Public concern about climate change has increased since the start of the summer, according to Ipsos

When respondents were asked what measures they planned to install in the next two to three years to help cool their homes, portable air conditioning was the most selected option (29 per cent), followed by a fixed air conditioning unit (23 per cent) and blackout blinds or curtains (19 per cent).

Of those who told Ipsos they do not plan to make changes to their homes to cope with heat, the most common reason was affordability (39 per cent).

“The key challenge for Westminster will be delivering accessible, cost-effective infrastructure and adaptation support that enables households to build resilience against recurring summer heat without adding to their financial burdens,” said de Luis.

Paul McNamee, Director at the Labour Climate and Environment Forum, said the findings show that Labour MPs are right to keep making the case for the UK’s net zero targets at a time when parties on the right are calling for them to be relaxed.

“It has been really good to see Andy Burnham knock some money off energy bills to address people’s concerns [about cost of living],” he added.

“But we also need to keep on rolling out renewables and upgrade our grid to make sure it’s fit for purpose for a future of clean energy, and our main ask is [making] sure that the government makes the absolute most out of the electrification benefits that sit beneath it.”

However, he said there is more that can be done in the short term to boost community resilience in the face of extreme heat, like creating green spaces where people can cool down and better managing land to help avert wildfires. 

Managing Director of the Conservative Environment Network, John Flesher, said the government needs to do more on adaptation because the country isn’t “well enough prepared” to deal with the effects of extreme hot weather as things stand.

“We need to think a lot more about preparing for this,” he told PoliticsHome, pointing to water security and agriculture as areas of high importance. “It’s terrible what this [extreme heat] could mean for the cost of food, for farmers’ abilities to conduct their harvest as normal.”

Tom Bradshaw, President of the National Farmers Union, recently told the BBC that the UK has taken its food supply for granted for far too long and called for more resilience planning.

“Those other countries around the world that we currently rely on to produce our food and vegetables, their climates are changing as well,” said Bradshaw.

“It does feel like there is going to be some shortages of [food] products.”

 

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Politics Home | Big Tech Firms Are “Winning In A Big Way” On Online Safety, Warns Jess Phillips

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Big Tech Firms Are 'Winning In A Big Way' On Online Safety, Warns Jess Phillips

The former safeguarding minister Jess Phillips has warned the big tech firms are winning in the battle over regulation (Alamy)


3 min read

Major tech companies are “winning in a big way” against efforts to make the internet safer for women and children, according to former safeguarding minister Jess Phillips.

Phillips, the Labour MP for Birmingham Yardley, said that during her time in government, parts of Whitehall, including No 10, were reluctant to take action for fear of retaliation by tech giants and the Donald Trump administration.

Speaking on the latest episode of PoliticsHome podcast The Rundown, which will be published on Friday (7 August), Phillips said: “We are too beholden currently in the world to basically five unelected people.”

The Labour MP resigned as a Home Office minister in May, accusing the Keir Starmer administration of not working hard enough to protect women and girls online. Phillips said Starmer was a “decent man” but his reluctance to “have an argument” meant that steps to tackle violence against women and girls (VAWG) were “stalled and delayed”.

In her resignation letter to the then-prime minister, Phillips said that “91 per cent of online child sex abuse is self-generated by children groomed, tricked and exploited into abuse”, and that Google and Apple, the two companies that control the operating systems on almost all smartphones, could quickly and easily install software that would stop them being used by children to take and receive naked pictures.

In June, Starmer gave tech firms a September deadline to make this change, warning that the government would give itself the powers to fine or take criminal action against those that did not comply.

Phillips wants new Prime Minister Andy Burnham to hold them to this, telling the podcast that, as things stand, “tech companies are winning in a big, big way”.

The former minister said there was a divide within Whitehall about how to tackle online safety when she was in government. She described the Home Office as being “hawkish as hell about tech companies”, while No 10 and the now-abolished Department of Science, Innovation and Technology (DSIT) were nervous about being too aggressive.

Phillips recalled “the sense that tech companies and the US would hold us to ransom on all sorts of different things”, adding: “I’ve had it directly said to my face, ‘well, look, they’ll just put trade levies on us if you try and do anything with tech companies’.”

She said Starmer “was always on my side in conversations”, but that she “just started to feel like I was going slowly mad” waiting for the machinery of government to make it happen.

“If you could hear some of the conversations I had to have with people. There are some people who genuinely just think that people taking dick pics is a human right,” Phillips said. 

“I had to say to somebody once: ‘You know, you won’t die. It’s not water or shelter’.”

Phillips expressed concern that the government’s Online Safety Act is “woeful for women” in its current form and “20 years behind” where it needs to be to tackle evolving online harms.

“As somebody who was seeking to put down lots of amendments to the Online Safety Act while it was passing through, I’ve never known aggressive lobbying like it,” said the Labour MP. “Every single law firm in the whole of London was basically on retainer to one of the big tech companies so that they couldn’t work for anyone else. That is just anti-democratic.”


The Rundown is presented by Alain Tolhurst, and is produced and edited by Ewan Cameron for Podot

  • Click here to listen to the latest episode of The Rundown, or search for ‘PoliticsHome’ wherever you get your podcasts.

 

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How Andy Burnham Could Pay For His Policy Pledges?

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How Could Andy Burnham Pay For His Policy Pledges?

Prime Minister Andy Burnham has outlined a range of areas he would like to see greater spending in. (Alamy)


4 min read

Andy Burnham has set out some major ambitions for government since entering office. Experts look at how he could pay for them.

The new Prime Minister was keen to hit the ground running when he succeeded Keir Starmer in No 10 last month, promising quick action to help people cope with cost-of-living pressures. He announced that he would take VAT off electricity bills, cap bus fares at £2, and reduce business rates for pubs and restaurants.

When it comes to longer-term policy, Burnham has promised to end rough sleeping and reform adult social care. His vision for the latter, bringing it more in line with NHS provision, is estimated to cost billions of pounds of additional spending every year. The new PM is also under pressure to increase defence spending in response to global security threats.

At the same time, the PM has pledged to stick to the government’s fiscal rules and 2024 manifesto pledges not to raise income tax, national insurance and VAT. 

This has raised questions about how Burnham will fund his plans for government.

Many details will not be confirmed until Wednesday, 28 October, when Chancellor John Healey delivers the first Budget of the Burnham Labour government. Healey, who resigned as defence secretary during the final weeks of the Starmer government over defence spending, has said that the Autumn Budget will be “built on fiscal discipline”.

What are Burnham’s options?

Carsten Jung, leader of the economy team at the Institute for Public Policy Research think tank (IPPR), argued that Burnham and Healey have inherited a better economic picture than Starmer and former chancellor Rachel Reeves faced.

“Rachel Reeves, for all of her strategic mistakes, really fixed the public finances,” said Jung. 

“What she inherited from Jeremy Hunt [her Tory chancellor predecessor] was unsustainable. It was based on cuts to departmental spending which weren’t sustainable. So she went to the painful exercise of increasing taxes to fix that.

“What Andy Burnham inherits is a much better funded state, and he also has headroom against the fiscal rules he inherited, which makes it less dire.”

However, he said that borrowing money to fund government spending could be riskier for Burnham than it was for Starmer due to “jittery” markets and a more precarious global picture. The Bank of England recently warned that it may be forced to raise interest rates later this year if the US war with Iran escalates, which in turn would make borrowing more expensive. 

Jung said that one option available to the government is to increase tax on wealth to bring it closer to tax on earnings, highlighting capital gains tax. 

As things stand, people are charged either 18 per cent or 24 per cent on profit they make when selling, gifting or disposing of an asset that has increased in value, such as a second home. Burnham could increase Treasury revenues by aligning capital gains tax rates with income tax bands of 20, 40 and 45 per cent.

Elsewhere, examples of pro-growth policies according to Jung include the Treasury investing more in “leading industries” in the UK as well as “boosting entrepreneurship” while closing tax loopholes. 

Isabel Stockton, researcher at the Institute for Fiscal Studies (IFS), said Burnham’s ambitions can be split into two categories: those that are less fiscally challenging, such as the cost-of-living measures he announced in his first few days in office, and policies with greater economic implications, like defence spending and adult social care.

Stockton agreed with Jung that borrowing more money would be “difficult” and “risky” for Burnham as it could push the new government close to breaching its fiscal rules, leaving him with two broad options: raising tax and cutting spending elsewhere.

Burnham has already said that the country must get “really serious” about reducing welfare spending to fund priorities like greater defence spending.

Stockton also suggested that the Labour government explore using the National Wealth Fund as a way of boosting spending power –  it was launched under Starmer in 2024 to “mobilise billions of pounds of investment” in UK “clean energy and growth industries”. 

By the end of the current parliament, the NWF should be on track to have capitalised with almost £30bn – with government funds directed to “resources to finance economic activity that supports additional private investment”, opening up investment options for the government. 

However, NWF is still funded by taxation and borrowing, and is run by the Treasury – meaning the challenges around scrutiny on tax and spend remain. 

Stockton told PoliticsHome the limitations Starmer’s government faced on taxation, spending, and spending cuts continue to exist, and remain challenging for Burnham’s government. 

“With any new government, it can make different choices, but it is going to be facing essentially the same constraints, especially given that he [Burnham] says he’s committed to the existing fiscal rules,” said Stockton.

“He says he’s committed to the Labour manifesto on tax, so that rules out quite a few things already. That means that the decisions are going to be difficult.”

 

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