Miliband in business rates pledge

THE Treasury’s grip over Yorkshire would be loosened by a future Labour Government with the region given total control over tax worth around £2 billion a year, Ed Miliband will say tomorrow.
Labour Leader Ed MilibandLabour Leader Ed Miliband
Labour Leader Ed Miliband

All money raised from business rates by councils would be retained locally and spent by combined authorities such as those covering South and West Yorkshire and York.

Over the weekend, the Labour leader promised £30bn of Government spending over five years would be devolved to a local level covering housing, skills, transport and business support.

Hide Ad
Hide Ad

The business rates idea to be announced tomorrow takes the devolution idea further by cutting out the Government altogether.

Labour Leader Ed MilibandLabour Leader Ed Miliband
Labour Leader Ed Miliband

Labour would pay for the move by reducing the amount of cash given to regions in Government grants.

But the party will argue that the value of the change will come from the ability of local leaders to take key decisions over where money should be spent to grow the economy.

It would also mean regions earn a direct benefit from measures they take to grow the local economy rather than having to negotiate deals with the Treasury.

Hide Ad
Hide Ad

Speaking at a gathering of political and business leaders in Leeds, Mr Miliband will say: “I know the next Labour Government cannot solve every problem by pulling levers in Whitehall.

Ed MilibandEd Miliband
Ed Miliband

“We can only do it by working with, harnessing the energy, the ideas and the dynamism of great businesses, cities, county regions – and you.

“So that you can help build and share in a more successful and prosperous Britain.”

Mr Miliband will be speaking at the publication of a review by former Transport Secretary Lord Andrew Adonis on how to encourage economic growth and spread the benefits more evenly across the country.

Hide Ad
Hide Ad

It will make a series of recommendations including a further expansion of the number of apprenticeships for school leavers in science, technology, engineering and maths.

Lord Adonis will also suggest at least 100 university technical colleges, such as the one in Sheffield, should be established and the appointment of “directors of enterprise and employment” in schools.

He will call for the launching of a “Teach Next” organisation to help people switch careers to teaching maths and science subjects.

And there will be suggestions on help for business including reforms of UK Trade & Investment and making a quarter of Government contracts available to small and medium-sized firms.

Hide Ad
Hide Ad

Lord Adonis will accuse the Coalition of failing to deliver on the recommendations of its own report, by former Deputy Prime Minister Lord Heseltine, that recommended a radical devolution of spending from Whitehall.

He will say: “England’s business leaders and local governments need empowering to invest in infrastructure, skills and economic development.

“While big numbers dominate discussions about economic growth, the real story exists in the company, or the cluster, or the school, or the city.

“My overriding aim is to promote a smarter, not a more expensive, state. We need to build on the best of Britain and be optimistic that the best is yet to come.”

Last week, Chancellor George Osborne offered to devolve powers and money similar to that enjoyed in London by Boris Johnson to parts of the North that choose to have elected mayors.