Queen’s Speech: Councils welcome devolution plans

LOCAL authorities in the West Midlands have welcomed the announcement in the Queen’s Speech outlining plans to devolve more powers to the regions.

Several authorities including Birmingham and the Black Country, together with Solihull and Coventry are working on options for a possible new combined authority capable of challenging the so-called Northern Powerhouse.

Speaking on behalf of the various councils, Darren Cooper, leader of Sandwell Borough Council, said: “The West Midlands is delighted to see the inclusion of a Cities Devolution and Local Government Bill in the Queen’s Speech.  
 
“This is good news for the region.  It comes just a week after Coventry and Solihull announced their intention to join Birmingham, Dudley, Sandwell, Walsall and Wolverhampton councils in a proposed combined authority for the West Midlands that would be the largest and most economically powerful authority outside of London.  
 
“The Queen’s Speech demonstrates that the government is prioritising devolution to cities, coming fast on the heels of major announcements about the Northern Powerhouse, the forthcoming Productivity Plan and the appointment of new ministers to drive this agenda.”
 
He said the announcement represented a “once in a generation” opportunity for Whitehall to devolve more power to the West Midlands, giving the region a greater say in the key decisions that will drive economic growth in relation to transport, housing, regeneration and jobs.
 
“There is a real sense of urgency in the region and politicians are grasping the nettle to transform how our councils work together and to present a credible, ambitious and compelling business case to government,” added Cllr Cooper.  
 
“We have a clear work plan that includes consulting and working with a range of individuals, residents, businesses and organisations with the aim of developing a prospectus, to be published in the summer.  

“This will be the basis for our negotiations with government for a major devolution deal.”
 
Kevin Rogers (left), vice president of the Black Country Chamber of Commerce, said the Speech contained few surprises but SMEs would welcome the intention by the government to reduce the amount of red tape they faced.

However, he said efforts should be directed towards central agencies such as HMRC as well as local bodies such as Trading Standards.

“Increasing the number of apprenticeships will always be welcome but unless there is a focus on improving quality and a better fit with the needs of small businesses, increasing numbers will have little positive effect on the skills shortage,” he said.

“The failure of the trailblazer programme suggests that more thought needs to be applied to the issue of skills development and the Black Country Chamber of Commerce is eager to work with any agencies to ensure we end up with programmes that are fit for purpose.”

He said the chamber hoped the pledge not to increase income tax and VAT for the next five years was not at the cost of business rates and corporation tax.

“Businesses are prepared to pay more local taxes if they can see clearer benefits and if in return, they can have more of a say in local activity. We remind the government that the key to increasing wealth is through sustainable business growth which in turn leads to a greater fiscal contribution from business,” he added.

Louise Bennett (left), chief executive of the Coventry and Warwickshire Chamber of Commerce, said the picture around devolving powers to the regions remained unclear.

She said while the new government wanted regions to have greater control in the way they are run, the new legislation was framed around major cities and elected mayors. She said there still might be an opportunity for areas that choose not to have an elected mayor to still enjoy the benefits of devolution.

The chamber has also echoed the comments of its Black Country counterpart in welcoming the commitment to cut red tape and increase the number of apprentices.

“As this chamber has already come out and said, we do welcome the opportunity for Coventry and Warwickshire to work with Birmingham and the wider West Midlands in terms of drawing down greater investment for this area,” she said.

“The Northern Powerhouse has gathered momentum recently and it’s vital that our region isn’t left behind when it comes to the benefits that devolution can bring.”

Johnathan Dudley (left), regional managing partner of national audit, tax and advisory firm Crowe Clark Whitehill, said it was interesting that cities like Birmingham, that rejected the City Devolution Bill at the referendum, were now thinking again.

“The promise of extra devolved cash if they do, and the hardening of English regions to devolved powers if such powers are being ceded to Scotland, could make it a lot more popular this time around,” he said.

“Greater Manchester has been a big success where the likes of West Midlands were not. This has unified metropolitan areas where they were previously institutionally divided. In an environment where LEPs are being strongly encouraged to collaborate with each other, city regions that don’t comply will get left behind. The force of economics and commercial pressure will take on local political fiefdoms in a battle where those that reform will take the winnings for themselves, leaving parochial authorities behind.”

The move to increase apprenticeships was welcomed by the EEF. It said three million more young people would now start apprenticeships over the next five years.

It also gave its backing to a consultation on funding apprenticeships through a new visa levy on businesses that use foreign labour.
 
Tim Thomas, Head of Employment Policy at EEF, said: “This ambitious target of creating three million apprenticeships over the next Parliament will be a challenge not only for Government, but employers too, who will play a key role.
 
“We know that manufacturers are ready to step up to the plate. However, the Government must put as much emphasis on quality as it does on quantity. It should look to pioneering sectors such as manufacturing, which has a proven track record in offering world-class apprenticeships and where employers are significantly investing in their future workforces.
 
“However, even the most proactive of employers will, at times, need to recruit specialist workers from outside the UK and Europe. Any future apprenticeship levy imposed on these employers, simply because they have recruited a worker from outside the EU, will be seen as punitive and risks alienating the same employers who already train UK apprentices. ”