Labour promise to boost council coffers

In a letter today to local authority leaders, the Leeds Central MP promised to devolve existing public spending over the next five years to councils, combined authorities and local enterprise partnerships.

The £30bn, he says, would be for local projects to improve economic development.

He says: “Funding not for projects decided in Whitehall, but funding for local plans to get the right infrastructure in place to help people, goods and digital commerce move about.”

In the 2,700-word letter, Mr Benn says the Government’s spending plans for 2015-16 won’t be broken but “the money we have will be distributed more fairly”.

He promises to even out the “unfair and unjustifiable” way funding cuts have hit the most deprived authorities.

His letter compares the differing fortunes of Leeds, Newcastle, Sheffield and Wokingham in Berkshire using the Government’s measure of spending power per household.

“Spending power in Leeds will be lower than Wokingham’s in 2014-15, and will fall every year despite higher service pressures.

“Spending power for Sheffield and Newcastle will broadly match Wokingham’s in 2015-16 and then fall below it in future years despite greater need.

“Newcastle has 101 looked-after children per 10,000 people, whereas Wokingham has 24. Homelessness and supported housing costs are £145 per dwelling in Newcastle and £48 in Wokingham.

“Statutory concessionary travel costs are £85 per dwelling in Newcastle and £14 in Wokingham. How can anyone describe as fair a funding system that fails to recognise such large differences?”

Mr Benn says the solution is devolution which “England is crying out for”.

He tells council leaders: “If we are going to build a strong economy for the future we must play to the strengths of our great cities and counties, and all parts of England.

“Britain’s industrial revolution changed the world. Innovation in technology, production and manufacturing was the foundation on which many of our great cities were built – Leeds, Manchester and Birmingham among them. And as our economy has changed, we still have great companies, and successful new industries.”

Promising to devolve £30bn of existing spending over the next five years, Mr Benn says this is three times as much as the current government.

“And the form in which all this devolution will be received will be for local government to choose, whether it is to establish combined authorities, economic prosperity boards, or joint committees.

“Different places will decide on different arrangements, but all will have a single aim – to provide the best possible services to people.”

His letter concludes by invoking the spirit of the nation in 1945.

“Earlier this summer we commemorated the 70th anniversary of the D-Day landings which paved the way for the defeat of fascism. When victory was won, our nation was battered and exhausted by nearly six years of terrible conflict. And yet, in the years that followed, we emerged stronger and fairer than before.”

He adds: “The time for devolution in England has now come. I look forward to working with you to make it happen.”