Ed Miliband speaks at the Scottish Labour conference on March 21, 2014 in Perth. Photograph: Getty Images.
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Miliband shows his hand on English devolution

Labour leader promises to end a "century of centralisation" by giving city regions major new powers and funding.

Ever since Ed Miliband declared his support for localism in his Hugo Young memorial lecture, Labour figures have been looking for concrete evidence of his commitment to devolving power from Whitehall. It was one of the motivations behind the recent letter to the Guardian from left-wing think-tanks which called for "devolution of state institutions, by giving away power and resources to our nations, regions, cities, localities and, where possible, directly to the people."

In a major speech on the economy tomorrow in Birmingham, Miliband will go a significant way to meeting their demands. Announcing the interim conclusions of Andrew Adonis’s growth review, he will vow to end a "century of centralisation" by at least doubling the level of devolved funding to city and county regions to £20bn over the next parliament (a figure that Labour sources emphasise is the "bare minimum"). As one shadow cabinet member recently put it to me, to see the party's commitment to devolution, "follow the money". Alongside this, regions will be offered new powers over transport and housing infrastructure, the Work Programme, and apprenticeships and skills, a move described by the party as "the biggest devolution of power to England’s great towns and cities in a hundred years".

Miliband and Ed Balls are to write to the leaders of all local authorities, universities and Local Enterprise Partnerships asking them "to draw up joint plans to boost growth and private sector jobs in their regions." Those regions that bring forward plans in the first nine months of the next parliament, and that meet the tests set by the Adonis review, will receive a "devolution deal" in the first spending review period of a Labour government.

The aim of the policy is to bridge the huge productivity gap between London and the regions (thus rebalancing the economy), and to create the kind of high-skilled, well-paid jobs lacking in so many areas. As Miliband will say tomorrow: "Britain is the country of the industrial revolution and Birmingham was one of the great cities of that revolution. But the country of the industrial revolution has ignored the lessons of its own history for far too long: the country that once built its prosperity on the great towns and cities, like Birmingham, Bristol, Liverpool, Manchester, Glasgow and Cardiff, has become a country which builds its prosperity far too much in one city: London.

"We need a prosperous London, but we also need to build prosperity outside it. Today, every region outside London is below the national average when it comes to productivity, while London is 40% above it."

Given the fiscal constraints a Labour government would face, Miliband is clear that it is the private sector, not the state, that will be the primary source of new jobs. After addressing prices (with announcements on energy and housing) and wages (by promising to strengthen the minimum wage and spread use of the living wage),  Miliband's focus on employment is the next strand of his plan to tackle the "cost-of-living crisis" (see my blog from this morning on why he's sticking with this line).

In his speech, he will contrast his commitment to devolution with the inaction of the coalition. Referencing Michael Heseltine's government-commissioned growth review No Stone Unturned (which was similarly launched in Birmingham), he will say: "This government had an opportunity to make a difference. Michael Heseltine’s review called for a massive devolution of funding from Whitehall to the cities. But David Cameron and George Osborne allocated just £2 billion for a Local Growth Fund in their Spending Review for 2015-16.  The best report this government has produced has been the one that they have most ignored.

“We can and must do a lot better than that. It is why nine months ago, I asked Andrew Adonis to recommend the way forward for Labour. We have heard his interim conclusions today and his message is clear: devolving power from Whitehall to our towns and cities is essential to generate the new jobs we need."

It would be fascinating to know what Heseltine, who shared a platform with Adonis at an event on London last week (the two are long-standing mutual admirers), makes of Labour's decision to go far further than the Tories in embracing his conclusions. Perhaps he'll be kind enough to tell us...

One other figure closely involved in the speech was Chuka Umunna (another Heseltine fan), who made the case for regional economic devolution in a piece for Centre for Cities in February, and who, along with Jon Cruddas, Liz Kendall and Hilary Benn, is the most fervent advocate of localism in the shadow cabinet. His "Agenda 2030" is crucial to Miliband's ambition to build "a different kind of economy".

Having so clearly recognised the merits of devolution, Miliband will now be pushed to go further, for instance by devolving housing benefit (allowing councils to invest any savings in housebuilding) and lifting the cap on council borrowing to allow local authorities to borrow to build. But those who have previously doubted his commitment to giving power away, will welcome tomorrow's speech as a significant downpayment.

George Eaton is political editor of the New Statesman.

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Tom Watson rouses Labour's conference as he comes out fighting

The party's deputy leader exhilarated delegates with his paean to the Blair and Brown years. 

Tom Watson is down but not out. After Jeremy Corbyn's second landslide victory, and weeks of threats against his position, Labour's deputy leader could have played it safe. Instead, he came out fighting. 

With Corbyn seated directly behind him, he declared: "I don't know why we've been focusing on what was wrong with the Blair and Brown governments for the last six years. But trashing our record is not the way to enhance our brand. We won't win elections like that! And we need to win elections!" As Watson won a standing ovation from the hall and the platform, the Labour leader remained motionless. When a heckler interjected, Watson riposted: "Jeremy, I don't think she got the unity memo." Labour delegates, many of whom hail from the pre-Corbyn era, lapped it up.

Though he warned against another challenge to the leader ("we can't afford to keep doing this"), he offered a starkly different account of the party's past and its future. He reaffirmed Labour's commitment to Nato ("a socialist construct"), with Corbyn left isolated as the platform applauded. The only reference to the leader came when Watson recalled his recent PMQs victory over grammar schools. There were dissenting voices (Watson was heckled as he praised Sadiq Khan for winning an election: "Just like Jeremy Corbyn!"). But one would never have guessed that this was the party which had just re-elected Corbyn. 

There was much more to Watson's speech than this: a fine comic riff on "Saturday's result" (Ed Balls on Strictly), a spirited attack on Theresa May's "ducking and diving; humming and hahing" and a cerebral account of the automation revolution. But it was his paean to Labour history that roused the conference as no other speaker has. 

The party's deputy channelled the spirit of both Hugh Gaitskell ("fight, and fight, and fight again to save the party we love") and his mentor Gordon Brown (emulating his trademark rollcall of New Labour achivements). With his voice cracking, Watson recalled when "from the sunny uplands of increasing prosperity social democratic government started to feel normal to the people of Britain". For Labour, a party that has never been further from power in recent decades, that truly was another age. But for a brief moment, Watson's tubthumper allowed Corbyn's vanquished opponents to relive it. 

George Eaton is political editor of the New Statesman.