Manchester Town Hall: Labour has come up with a New Deal for England, involving devolving powers. Photo: Getty
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Labour’s New Deal for England will end a century of centralisation

The shadow communities secretary and head of Labour's policy review explain why Labour will adopt a radically different approach to delivering public services, moving away from top-down central control.

Politics is at a turning point. Too many decisions are top-down and state-driven, and too much is about structures rather than individuals. Our current way of doing things is based on centralisation and a culture built on expectation of, rather than obligation to, others, both of which have left us, for example, with insufficient and unaffordable childcare, too many young people out of work, and a care system for older people that is creaking under the strain. 

We know there are lots of people with ideas and determination to change things, but feel powerless to act. Communities with huge energy and potential. And those at the frontline know better than anyone back in Whitehall how, through local reform and innovation, that they could deliver better services.

So how should a future Labour government respond? Labour is clear that we cannot simply spend more money to deal with the growing pressure on services, but we also know that the Tory approach of cutting back services and leaving communities to sink or swim is failing.  And so, at a time when there is less money around, a Labour government will have to adopt a radically different approach to delivering public services. Instead of the old model of top-down central control, we will have devolve power to communities and users to deliver the public services they want. 

Today, the Local Government Innovation Taskforce has published its conclusions on how a Labour government could achieve this. Their proposals for reform are based on three principles: pushing power down; collaboration so that services are joined up around the needs of people and place; and prevention to stop costly problems before they arise. 

The central recommendation, which we strongly endorse, is that a Labour government should agree a New English Deal with councils to devolve powers and resources down to communities. In return, local government will enter into new public service contracts with their communities to deliver five outcomes:

·         the care needed to live independently;

·         opportunities for young people to get a decent job;

·         community safety and reductions in crime;

·         help for excluded families;

·         early-years support for every child in the community.

To do this a Labour is committed to the principle of multi-year funding settlements for local services to give councils the flexibility to redesign services around the needs of local people and the ability to keep savings gained through reforms locally. And that's not all. Further areas for devolution proposed by the Taskforce that could also form part of the deal include:

·         Greater powers locally to bring together health and social care around the ‘whole person’ through a collective commissioning plan and a pooled budget based on ‘year of care funding’ for people with long term conditions.

·         Local control over the vocational skills budget for 19 to 24 year olds so that areas can decide what further education colleges should provide. 

·         A new local service for under 21 year olds to help young people get the skills and help they need to get a decent job. This would bringing together Jobcentre Plus and local authority support for young people under one roof.

·         Stronger powers for local authorities to appoint local police commissioners, set priorities for neighbourhood policing and improve value for money and performance; and       

·         Powers to broker childcare support for parents and join-up early years services in Sure Start Centres, matched by stronger local accountability of all schools through the appointment of Directors of Schools Standards. 

Hand in hand with this radical new approach will be a commitment to local accountability and scrutiny, with councils setting up strong councillor-led Local Public Accounts Committees. As Whitehall’s budget and local budgets are increasingly pooled to provide local services, it is at the local level that scrutiny of that expenditure and its effectiveness should take place. A single body with the power to assess all public services in an area will not only drive better value for taxpayers but create much stronger and more visible accountability for decisions.

This is one important part of Labour's New Deal for England, but our centralised state is also holding back growth. It is madness that plans for transport investment, for example, have to make the long, slow journey all the way to Whitehall to get the go ahead instead of being decided, and implemented, locally. That is why last week Andrew Adonis’ report on devolving power over economic development and infrastructure to councils and to groups of councils that come together, working closely with local business leaders, is also so significant.

A Labour government will transfer £30bn of spending from Whitehall to the Town Hall over the lifetime of the next Parliament and allow groups of councils that form combined authorities to retain 100% of business rates income. This is an offer not just to our great cities, which were once the silicon valleys of the industrial revolution and are now home to new industries, but also to our counties. After all, where is the centre of global innovation in motorsport engineering?  Oxfordshire. Where can you find the home of Europe's foremost biotechnology cluster? Greater Cambridge.

What this is all about is letting go so that the talent and vision you can find in every community can flourish. Last weekend, we saw what this could achieve as Leeds, Harrogate and Sheffield - along with the glory of the Yorkshire Dales - played host to the Tour de France. That's what you get when you devolve power. Just imagine what more could be done if we set free all this local creativity, energy and passion.

As Michael Bloomberg, the former mayor of New York, said: "We're the level of government closest to the majority of the world's people. While nations talk, but too often drag their heels, cities act."

That's the case for the New Deal for England that Labour will be offering next May.

You can read the full report here.

Hilary Benn is Labour MP for Leeds Central and shadow communities secretary; Jon Cruddas is Labour MP for Dagenham and Rainham and he heads Labour's policy review

Photo: Getty
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Ken Livingstone says publicly what many are saying privately: tomorrow belongs to John McDonnell

The Shadow Chancellor has emerged as a frontrunner should another Labour leadership election happen. 

“It would be John.” Ken Livingstone, one of Jeremy Corbyn’s most vocal allies in the media, has said publicly what many are saying privately: if something does happen to Corbyn, or should he choose to step down, place your bets on John McDonnell. Livingstone, speaking to Russia Today, said that if Corbyn were "pushed under a bus", John McDonnell, the shadow chancellor, would be the preferred candidate to replace him.

Even among the Labour leader’s allies, speculation is rife as to if the Islington North MP will lead the party into the 2020 election. Corbyn would be 71 in 2020 – the oldest candidate for Prime Minister since Clement Attlee lost the 1955 election aged 72.

While Corbyn is said to be enjoying the role at present, he still resents the intrusion of much of the press and dislikes many of the duties of the party leader. McDonnell, however, has impressed even some critics with his increasingly polished TV performances and has wowed a few sceptical donors. One big donor, who was thinking of pulling their money, confided that a one-on-one chat with the shadow chancellor had left them feeling much happier than a similar chat with Ed Miliband.

The issue of the succession is widely discussed on the left. For many, having waited decades to achieve a position of power, pinning their hopes on the health of one man would be unforgivably foolish. One historically-minded trade union official points out that Hugh Gaitskell, at 56, and John Smith, at 55, were 10 and 11 years younger than Corbyn when they died. In 1994, the right was ready and had two natural successors in the shape of Tony Blair and Gordon Brown in place. In 1963, the right was unprepared and lost the leadership to Harold Wilson, from the party's centre. "If something happens, or he just decides to call it a day, [we have to make sure] it will be '94 not '63," they observed.

While McDonnell is just two years younger than Corbyn, his closest ally in politics and a close personal friend, he is seen by some as considerably more vigorous. His increasingly frequent outings on television have seen him emerge as one of the most adept media performers from the Labour left, and he has won internal plaudits for his recent tussles with George Osborne over the tax bill.

The left’s hopes of securing a non-Corbyn candidate on the ballot have been boosted in recent weeks. The parliamentary Labour party’s successful attempt to boot Steve Rotheram off the party’s ruling NEC, while superficially a victory for the party’s Corbynsceptics, revealed that the numbers are still there for a candidate of the left to make the ballot. 30 MPs voted to keep Rotheram in place, with many MPs from the left of the party, including McDonnell, Corbyn, Diane Abbott and John Trickett, abstaining.

The ballot threshold has risen due to a little-noticed rule change, agreed over the summer, to give members of the European Parliament equal rights with members of the Westminster Parliament. However, Labour’s MEPs are more leftwing, on the whole, than the party in Westminster . In addition, party members vote on the order that Labour MEPs appear on the party list, increasing (or decreasing) their chances of being re-elected, making them more likely to be susceptible to an organised campaign to secure a place for a leftwinger on the ballot.

That makes it – in the views of many key players – incredibly likely that the necessary 51 nominations to secure a place on the ballot are well within reach for the left, particularly if by-election selections in Ogmore, where the sitting MP, is standing down to run for the Welsh Assembly, and Sheffield Brightside, where Harry Harpham has died, return candidates from the party’s left.

McDonnell’s rivals on the left of the party are believed to have fallen short for one reason or another. Clive Lewis, who many party activists believe could provide Corbynism without the historical baggage of the man himself, is unlikely to be able to secure the nominations necessary to make the ballot.

Any left candidate’s route to the ballot paper runs through the 2015 intake, who are on the whole more leftwing than their predecessors. But Lewis has alienated many of his potential allies, with his antics in the 2015 intake’s WhatsApp group a sore point for many. “He has brought too much politics into it,” complained one MP who is also on the left of the party. (The group is usually used for blowing off steam and arranging social events.)

Lisa Nandy, who is from the soft left rather than the left of the party, is widely believed to be in the running also, despite her ruling out any leadership ambitions in a recent interview with the New Statesman.However, she would represent a break from the Corbynite approach, albeit a more leftwing one than Dan Jarvis or Hilary Benn.

Local party chairs in no doubt that the shadow chancellor is profiling should another leadership election arise. One constituency chair noted to the New Statesman that: “you could tell who was going for it [last time], because they were desperate to speak [at events]”. Tom Watson, Caroline Flint, Chuka Umunna, Yvette Cooper, Andy Burnham and Liz Kendall all visited local parties across the country in preparation for their election bids in 2015.

Now, speaking to local party activists, four names are mentioned more than any other: Dan Jarvis, currently on the backbenches, but in whom the hopes – and the donations – of many who are disillusioned by the current leadership are invested, Gloria De Piero, who is touring the country as part of the party’s voter registration drive, her close ally Jon Ashworth, and John McDonnell.

Another close ally of Corbyn and McDonnell, who worked closely on the leadership election, is in no doubt that the shadow chancellor is gearing up for a run should the need arise.  “You remember when that nice Mr Watson went touring the country? Well, pay attention to John’s movements.”

As for his chances of success, McDonnell may well be even more popular among members than Corbyn himself. He is regularly at or near the top of LabourList's shadow cabinet rankings, and is frequently praised by members. Should he be able to secure the nominations to get on the ballot, an even bigger victory than that secured by Corbyn in September is not out of the question.

Stephen Bush is editor of the Staggers, the New Statesman’s political blog. He usually writes about politics.