Devolution Must Work for Every Community, Not Just Those with a Mayor

More power must be put into the hands of local people and communities. That is undeniable.

In rural areas like Newbury and West Berkshire, we have had to fight harder than we should for treasury funding, while residents remain too far removed from the very decision making that affects their daily lives. So, in principle, seeing the Prime Minister make devolution a key priority within the first two weeks of his premiership was a real positive. 

However, in the detail, the Government’s current proposal risks creating a model that pits communities against each other. 

The plan to give strategic mayoral authorities a share of income tax and business rates collected in their area will undoubtedly transfer a significant amount of power out of Whitehall. But rather than spreading to households across Newbury and West Berkshire, it looks set to boost only those with an elected mayor. 

As government figures show, that gap is widening as big urban regions hoover up extra revenue streams while rural areas are left short-changed: a two-tier system in which the Prime Minister’s repeated, early pledge to deliver growth in every postcode would fall short. 

We have already been hit hard by changes to local funding. Following the Local Government Finance Settlement, West Berkshire now keeps just 13p of every pound of business rates we raise locally, down from 30p. That is a serious drop that leaves us with less to spend on the services that matter most: primary care, transport links, education, and affordable housing in areas where the pressure is greatest.

As I said in my recent letter to the Prime Minister, I want devolution to work. It’s crucial that local leaders and residents in Newbury and West Berkshire are granted greater control to spend money on our local priorities, generate economic growth, but also restore a sense of public purpose and pride in our political system. As Liberal Democrats, we have championed this rebalancing of power for decades, it holds enormous potential. But the Government’s initial plan fails to complete the map.

Andy Burnham knows what it’s like to be constrained by Whitehall’s controls on how money is spent. As Mayor of Greater Manchester, he railed against exactly this kind of postcode lottery. So, with more details expected at the Autumn Budget later this year, I will welcome moves that genuinely give Newbury and West Berkshire the tools to improve local services and ease the cost-of-living. But I will continue to press the Government to ensure that their devolution programme benefits our rural market towns and villages just as much as the UK’s major cities.