Leeds ‘needs investment not rhetoric’, as council leader issues stinging rebuke of Chancellor George Osborne and stalled devolution

“WHAT we know is that we can use the hard shoulder on the M62,” said Cllr Keith Wakefield, exasperated by last week’s underwhelming Autumn Statement and frustrated by the scale of cuts he is being forced to implement.

The Leeds City Council leader must present a budget with savings of £76m – and even then the council’s reserves are forecast to shrink by a further £10m to just £16m by the end of 2015-16.

Only yesterday – around the same time the council was preparing to discuss its plans to cut another 475 jobs on top of the 2,000 jobs lost since 2010 – Chancellor George Osborne was giving a TV interview which presented an alternative reality.

Mr Osborne rejected the idea that large-scale public sector job losses would be required to balance the books of local authorities, saying “it depends on the decisions we are prepared to take on pay”.

The Chancellor added: “If we go on taking what I think are realistic decisions on public sector pay then we can still afford to have people in sufficient numbers in the public sector to do the job we ask of them.”

Cllr Wakefield’s ire was not just targeted at the Chancellor, but the whole system of centralised government in Whitehall that is seemingly resisting speedy devolution to the regions.

“The reality of the position is that it is not councils which should be facing bankruptcy, it is the existing Whitehall funding system which is clearly bankrupt,” he said.

“It is exceptionally disappointing that the Whitehall pay bill has actually risen by 6% since 2010 whereas the local government pay bill has dropped by 12% in that time. That is inherently unfair.”

This complaint is not just the result of the traditional tensions between local and national government, but of a growing annoyance at the Government’s approach to the north, and particularly Yorkshire.

“This has to come against the background of what was a very disappointing announcement for the city region given that we are supposed to be a part of the northern powerhouse,” he said.

“If the Chancellor is serious about Yorkshire being a key part of the northern powerhouse, there’s a lot more we should be looking at to boost the economy.

“Leeds City Council is developing its own infrastructure, like John Lewis, the Arena, Kirkstall Forge and South Bank, which will create 20,000 jobs in the next few years.

“We are doing our part. What we really need is the government to get behind us if they are serious about boosting the northern economy.”

“Good luck to Manchester but a key part of this cross-Pennine economic powerhouse is Yorkshire. We have a £56bn GVA – we have huge potential to rebalance the national economy and to become a net contributor to the Treasury.

“Look at what the Leeds City Region has got and it’s very little apart from rhetoric.”

Despite the criticisms, council leaders remain optimistic of a devolution settlement being agreed soon.

“We are still in discussions with the Government,” said Cllr Wakefield. “We put in a very ambitious bid, we have got some very good projects and schemes that are able to boost the economy. We want to see how the Government responds.

“That is the key to delivering change in the relationship between Leeds and Whitehall.

“We are hoping for an early announcement and we will keep lobbying on behalf of the people of Yorkshire.”