Faced with cuts, Newcastle is fighting for fairness

The leader of Newcastle City Council calls for more honesty and openness in local government funding.

This piece is a response to Andrew Hankinson's blog post, "Nick Forbes: Newcastle’s king of cuts"

Last 20 November was the day when the government’s austerity programme turned from a theoretical national debate into a stark reality for the people of Newcastle. £90m of council cuts over three years, affecting every aspect of public life across the city. I described it as one of the darkest days for public services in Newcastle.

Residents have been shocked. Protesters fighting the closure of 10 of our libraries have accused me of being a Tory poodle, doing the work of David Cameron in a concerted attack on local services. The fact that some of the cuts affected our local cultural institutions pushed us into the national press. I received letters signed by a who’s who of the geordie cultural diaspora: Sting, Bryan Ferry and Robson Green to name a few. Writer Lee Hall is turning a legitimate and welcome campaign against cuts to arts and culture into an increasingly personal campaign against me. The local Liberal Democrats join with Eric Pickles in accusing me of deliberately exaggerating the cuts in order to pass the blame onto government and of megaphone diplomacy. I have been likened to militant firebrand Derek Hatton, who famously defied the Thatcher government by setting an illegal budget. Earlier this month, in a blog post for the New Statesman, Andrew Hankinson leapt on that particular bandwagon, accusing me and the council’s director of finance of making deliberate arithmetic errors to overstate the scale of the cuts for political reasons.

All this talk of politically motivated over-statement of cuts is a ruse to hide the real scandal. The figures are right. They are the inevitable consequence of decisions made in Whitehall and Westminster, not in Newcastle Civic Centre. Newcastle has been honest about the scale of the cuts facing not just our city but communities across the country. And the cuts have been deliberately and systematically loaded  against those communities least able to withstand them.

Unlike most councils, we set our budget for three years instead of the usual one or two. We did this for good reasons. The old method of annually 'salami slicing' budgets was no longer adequate. We needed to take a good hard look at what the council does, and plan over the longer-term. A three year budget gives us more scope to make radical changes. And more time to work with communities and partner organisations to find alternative solutions to avoid closure of the most valued facilities and services, and more time to minimise job losses by helping staff to retrain or redeploy.

But creating a three year budget has been a fearsome task, because it’s exposed the enormity of the challenge facing the whole of local government. We were among the first councils to look in detail at the consequences through to 2016. Since we published our budget, other cities have issued very similar proposals. Liverpool has to save £173m by next year; Leeds, £51m next year; Manchester, £80m by 2015 and Birmingham, £600m by 2017. Councils have cut £5bn and shed 230,000 jobs over two years with some of the deepest cuts yet to come. We are not the only council that is considering closing libraries and cutting funds to the arts. The Conservative-controlled Local Government Association has gone even further in spelling out the consequences of cuts to 2020, by which time local government will have no money left to fund any services beyond its core statutory functions.

And what of the argument that I was exaggerating the cuts back in November? Just before Christmas the government announced a further round of cuts, and our £90m cuts requirement became £100m. So it turns out we were actually under - rather than over - stating the scale of the challenge.

And the greatest scandal of all lies in the judgments made in central government about where these cuts should fall hardest, and how they are hidden in a fog of complex and opaque adjustments and misinformation. The government is making systematic decisions to move the deepest cuts to areas with the highest levels of social and economic need. The five councils with the highest levels of multiple deprivation, on the government’s own figures, are the same five councils facing the highest levels of cuts. During the four years of the Spending Review, £1bn will have been transferred from the North to the South and East, with some inner London boroughs also amongst the worst affected. Millions more have been transferred to shore up the inefficient system of local government in two-tier shire counties.

We need a new approach to restore trust to this broken system. I have led the call for an independent approach to determining the allocation of local government budgets, accountable jointly to local and national government.

In the meantime, I will get on with the job of supporting and improving our city. I will resist the calls for my colleagues to set an illegal budget, to defy the government in the way that Liverpool did in the 1980s. I will maintain constructive relations with ministers, for example with Greg Clark on the delivery of our Newcastle City Deal, and Patrick McLoughlin about the need for investment in transport infrastructure. But what I cannot do is join in a conspiracy to hide the consequences of unfair and unsustainable cuts. I will be honest about the implications for our great city, open to alternative proposals, work day-in, day-out to preserve the services that people have a right to rely on, and continue to fight for a fairer future. I hope the government, too, can bring a bit of honesty into its own decisions.

Nick Forbes is the leader of Newcastle City Council

Nick Forbes is the leader of Newcastle City Council

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Who is the EU's chief Brexit negotiator Michel Barnier?

The former French foreign minister has shown signs that he will play hardball in negotiations.

The European Commission’s chief Brexit negotiator today set an October 2018 deadline for the terms of Britain’s divorce from the European Union to be agreed. Michel Barnier gave his first press conference since being appointed to head up what will be tough talks between the EU and UK.

Speaking in Brussels, he warned that UK-EU relations had entered “uncharted waters”. He used the conference to effectively shorten the time period for negotiations under Article 50 of the Lisbon Treaty, the legal process to take Britain out of the EU. The article sets out a two year period for a country to leave the bloc.

But Barnier, 65, warned that the period of actual negotiations would be shorter than two years and there would be less than 18 months to agree Brexit.  If the terms were set in October 2018, there would be five months for the European Parliament, European Council and UK Parliament to approve the deal before a March 2019 Brexit.

But who is the urbane Frenchman who was handpicked by Commission President Jean-Claude Juncker to steer the talks?

A centre-right career politician, Barnier is a member of the pan-EU European People’s Party, like Juncker and German Chancellor Angela Merkel.

A committed European and architect of closer eurozone banking integration, Barnier rose to prominence after being elected aged just 27 to the French National Assembly.  He is notorious in Brussels for his repeated references to the 1992 Winter Olympics he organised in Albertville with triple Olympic ski champion Jean-Claude Killy.

He first joined the French cabinet in 1993 as minister of the environment. In 1995, Jacques Chirac made him Secretary of State for European Affairs, teeing up a long and close relationship with Brussels.

Barnier has twice served as France’s European Commissioner, under the administrations of Romano Prodi and José Manuel BarrosoMost recently he was serving as an unpaid special advisor on European Defence Policy to Juncker until the former prime minister of Luxembourg made him Brexit boss.“I wanted an experienced politician for this difficult job,” Juncker said at the time of Barnier, who has supported moves towards an EU army.

 

Barnier and the Brits

Barnier’s appointment was controversial. Under Barroso, he was Internal Market commissioner. Responsible for financial services legislation at the height of the crisis, he clashed with the City of London.

During this period he was memorably described as a man who, in a hall of mirrors, would stop and check his reflection in every one.

Although his battles with London’s bankers were often exaggerated, the choice of Barnier was described as an “act of war” by some British journalists and was greeted with undisguised glee by Brussels europhiles.

Barnier moved to calm those fears today. At the press conference, he said, “I was 20 years old, a very long time ago, when I voted for the first time and it was in the French referendum on the accession of the UK to the EU.

“That time I campaigned for a yes vote. And I still think today that I made right choice.”

But Barnier, seen by some as aloof and arrogant, also showed a mischievous side.  It was reported during Theresa May’s first visit to Brussels as prime minister that he was demanding that all the Brexit talks be conducted in French.

While Barnier does speak English, he is far more comfortable talking in his native French. But the story, since denied, was seen as a snub to the notoriously monolingual Brits.

The long lens photo of a British Brexit strategy note that warned the EU team was “very French” may also have been on his mind as he took the podium in Brussels today.

Barnier asked, “In French or in English?” to laughter from the press.

He switched between English and French in his opening remarks but only answered questions in French, using translation to ensure he understood the questions.

Since his appointment Barnier has posted a series of tweets which could be seen as poking fun at Brexit. On a tour of Croatia to discuss the negotiations, he posed outside Zagreb’s Museum of Broken Relationships asking, “Guess where we are today?”

 

 

He also tweeted a picture of himself drinking prosecco after Boris Johnson sparked ridicule by telling an Italian economics minister his country would have to offer the UK tariff-free trade to sell the drink in Britain.

But Barnier can also be tough. He forced through laws to regulate every financial sector, 40 pieces of legislation in four years, when he was internal market commissioner, in the face of sustained opposition from industry and some governments.

He warned today, "Being a member of the EU comes with rights and benefits. Third countries [the UK] can never have the same rights and benefits since they are not subject to same obligations.”

On the possibility of Britain curbing free movement of EU citizens and keeping access to the single market, he was unequivocal.

“The single market and four freedoms are indivisible. Cherry-picking is not an option,” he said.

He stressed that his priority in the Brexit negotiations would be the interests of the remaining 27 member states of the European Union, not Britain.

“Unity is the strength of the EU and President Juncker and I are determined to preserve the unity and interest of the EU-27 in the Brexit negotiations.”

In a thinly veiled swipe at the British, again greeted with laughter in the press room, he told reporters, “It is much better to show solidarity than stand alone. I repeat, it is much better to show solidarity than stand alone”.

Referring to the iconic British poster that urged Brits to "Keep Calm and Carry On” during World War Two, he today told reporters, “We are ready. Keep calm and negotiate.”

But Barnier’s calm in the face of the unprecedented challenge to the EU posed by Brexit masks a cold determination to defend the European project at any cost.

James Crisp is the news editor at EurActiv, an online EU news service.