King’s Speech: Devolution is answer to economic equality

An English Devolution Bill will be introduced by Labour to enable “greater devolution of decision making,” one of dozens of new bills coming forward in the next parliamentary session.

The Government said in its accompanying notes to the devolution bill that although “almost half of England’s population” live in a devolved area, “the inconsistent, deal-based and patchwork approach has left too many levers for growth in the hands of central government”.

Ministers now recognise the link between “geographic inequality” and the centralised economy in England. The bill will aim to transfer power out of Westminster into local communities to close that gap.

The English Devolution Bill will:

• Put a “more ambitious standardised devolution framework” into law to give “greater powers” to local leaders “over strategic planning, local transport networks, skills and employment support”
• Introduce “new powers and duties for local leaders to produce Local Growth Plans”
• Make devolution the default setting. No more need for negotiated agreements where areas meet governance conditions. Additional powers can be requested, and government will either extend devolved powers or “publicly explain their reasons for not doing so”
• Simplify the process for creating new combined authorities, “to ensure that every part of England can rapidly benefit from devolution,” going wider and deeper where mayors want to advance the ambition and capacity of devolution
• Empower local communities with “a strong new ‘right to buy’ for valued community assets, such as empty shops, pubs and community spaces”

Other highlights of the King’s Speech

Planning

• “Modernising planning committees” and “increasing capacity” inside local planning authorities
• “Using development to fund nature recovery,” over the summer the government will work with nature delivery stakeholders to find the best route forward that can deliver “positive environmental outcomes”
• Reform compulsory purchase compensation rules to make payouts to landowners “fair but not excessive” where “social and physical infrastructure and affordable housing are being delivered”
• “Streamline delivery” of “critical infrastructure” to upgrade the national grid and boost renewable energy, with improved National Policy Statements updated every five years

Transport

• Rishi Sunak’s decision to cancel the second phase of HS2 from Crewe to Manchester will not be reversed. Instead, Labour is “repurposing the…bill to provide powers to construct and operate rail projects which improve east to west connectivity across the North of England,” opening the way for Northern Powerhouse Rail from Liverpool to Leeds
• Powers will be brought in to deliver “key infrastructure” in the North including new stations at Manchester Piccadilly and Manchester Airport
• “Early step” towards reform of railways, where a public sector operator would eventually be the default position not a last resort
• First railway operator contracts will be brought back into public ownership “as soon as possible”
• Bus reform to deliver new powers to local leaders to franchise local bus services and lift restrictions on creation of publicly owned bus operators

Energy

• Great British Energy, a new clean energy company, will “develop, own and operate assets”, funded by £8.3bn of new money in this Parliament
• GBE will take stakes in “projects and supply chains” that accelerate related technologies
• Crown Estate will be allowed to borrow money. As owner of the seabed this means the Crown Estate will be able to invest more in offshore windfarms

Education

• Remove the exemption from VAT on private school fees, funding 6,500 new teachers
• Establish Skills England with a new partnership with employers and reform the apprenticeship levy

Housing

• Give “greater rights and protections to people renting their homes” including ending no fault evictions. Draft legislation will be published on leasehold and commonhold reform
• Consult on how to “restrict the sale of new leasehold flats” to encourage homeownership
• Regulate ground rents and end unaffordable ground rent increases

EVENT | Place North Question Time, 5 November