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Labour’s devolved funding plan would “turbo-charge” Hull growth

Hull North MP Diana Johnson has said that Ed Miliband’s plans for devolved funding to regions would “turbo-charge” regeneration in Hull.

The Labour Leader today heralded the biggest devolution of power to England’s great towns and cities in a hundred years, as the next stage of One Nation Labour’s plan to tackle the cost of living crisis.

Ed Miliband set out the interim conclusions of Andrew Adonis’s Growth Review recommending the end of a century of centralisation by at least doubling the level of devolved funding - handing control of the equivalent of more than £20 billion to City and County Regions over the course of a parliament.

These measures will be included in Labour’s election manifesto as another key component of his One Nation plan to halt the race to the bottom - in wages, skills, prospects and productivity - which has left millions of families in the grip of the cost of living crisis.

Ed Miliband announced that the process of devolution has already begun with he and Shadow Chancellor Ed Balls writing to the leaders of every council, university and Local Enterprise Partnership asking them to draw up joint plans to boost growth and private sector jobs in their regions.

Regions meeting strict tests established by the Adonis Review, will be given new powers over transport and housing infrastructure funding, as well as for the Work Programme and skills. 

Labour has also announced that Labour would appoint Regional Ministers in Government to support Labour’s city-region growth agenda.
Diana Johnson MP said: “The current Coalition Government claims accept the arguments for ‘rebalancing the economy’ and say that they back Lord Heseltine’s plans for devolved funding that he set out in his No Stone Unturned report.

“However, the Coalition’s deeds haven’t matched their words. After obstruction from some within Whitehall, such as the Lib Dem Business Secretary, only £2bn of funding will be devolved from 2015.

“Labour’s plans to devolve power and more than £20bn of funding to City Regions will help to turbo-charge growth and regeneration that we’ve started in Hull, allowing business, councils and the Humber LEP to build on recent progress with Siemens, rail electrification and City of Culture.

“Boosting the economic growth contribution made by cities such as Hull isn’t just in the interests of the North, but will also improve overall growth and economic efficiency of the British economy as a whole.

“Where the current Government has a Minister for Portsmouth, but no Minister for the North, Labour will ensure that all regions have a powerful voice within government.”

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