Autumn statement contains no new powers for councils or transport cash
Chancellor George Osborne鈥檚 plan to create a 鈥渘orthern powerhouse鈥� for the economy in the North of England have been slammed for having 鈥渘othing of substance鈥�.
Osborne had been expected to announce fresh details of his plan for a 鈥渘orthern powerhouse鈥� in today鈥檚 statement, such as fresh powers for councils in west and south Yorkshire, along the lines of those already granted to Greater Manchester (pictured).
Extra nitty-gritty was also anticipated on moves to boost east-west rail links across the north of England.
However beyond the announcement of an advanced materials research and innovation centre and a 拢78m theatre complex, both in Manchester, the statement contained no fresh moves on implementing Osborne鈥檚 鈥渘orthern powerhouse鈥� plan.
The statement says that the government is holding discussions with a number of city areas over further devolution.
Richard Threlfall, UK head of infrastructure, building and construction at KPMG, said: 鈥淐ity leaders across the country will be drowning their sorrows tonight after the Chancellor offered warm words but nothing of substance on devolution.
He said it was 鈥渄eeply disappointing鈥� that the government had 鈥渇ailed to bring forward any proposals for fiscal devolution to England鈥檚 major city regions, as many had hoped鈥�.
鈥淐ompared to other countries, the buying power in the hands of UK local government is almost pointlessly small.
鈥淲ithout a greater degree of control over local taxes all talk of devolution, investing in our city regions, and rebalancing the UK economy is just hot air.鈥�
Ed Cox, director of the thinktank IPPR North, welcomed the chancellor鈥檚 renewed commitment to the north of England, but expressed disapoointment that no further cities have followed Manchester鈥檚 lead by brokering their own devolution deals.
He said: 鈥淚t is right that they should take the necessary time to ensure their deals meets their local aspirations but they must not lose the devolutionary momentum generated by the Scottish referendum and we need to see plans for progress outside of the big cities too.鈥�
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