Northern Powerhouse “just a buzzword” say former supporters
THE Northern Powerhouse is a “smokescreen” and a “buzzword” intended to hide spending cuts to local authorities, according to a new report.
‘The Northern Powerhouse: Smoke and Mirrors?’ report was commissioned by the Liberal Democrats.
The study, which former deputy PM Nick Clegg helped write, accused the Government of an “obsession” with models of government and elected Mayors. It criticises Chancellor George Osborne for forcing elected Mayors as a condition of devolution deals.
The Northern Powerhouse, a term coined by George Osborne in 2014, is “a project that started with real hope and commitment is likely to dissipate behind a screen of smoke and mirrors,” it said.
It says there has been a 40% reduction in Central Government funding to local authorities since the 2010 City Deals were introduced.
Devolution agreements, including those with the North East, Manchester and Sheffield have a value of £30m a year over 30 years, but the report says that there is very little revenue funding associated with Devolution Deals and it suggests the increases in local authority powers were overrepresented.
The report conceded that £577m had been earmarked for transport projects in Leeds, Sheffield, Greater Manchester and Bristol, £300m in specific grants and £900m for Greater Manchester’s ‘earn back’ programme. It did say that some of these grants would be paid to local authorities anyway.
Nick Clegg, former deputy Prime Minister and proponent of the Northern Powerhouse who has now done a U-turn on the plans. “The northern powerhouse is failing to live up to the dream that we envisioned in the coalition.
“Instead, it is being used as an excuse to put in place piecemeal devolution and changes but with the rhetoric of great change. The recent announcement to ‘green light’ HS3 proves this. The link from Manchester to Leeds is ignoring areas like Liverpool and Sheffield, who are being left off the transport grid,” he said.
