LABOUR: HOW NOT TO PREPARE FOR BATTLE.

 

Suspensions and shouting matches outside TV studios was not an ideal way for Labour to prepare for next week’s local elections. They were already going to find gaining seats difficult due to the election cycle discussed below. The anti semitism issue is important for Labour to sort out but it is also part of the internal campaign against Jeremy Corbyn and his supporters.

With all this said, next week’s electrions will be no easy ride for the Conservatives.

 

TORIES IN TROUBLE.

It was always going to be a difficult election for the Conservatives. They are facing their first Town Hall elections as the sole governing party since 1997. They are not only distracted by the EU Referendum but are also very split on the issue unlike any other party. The run up to these elections has been less than smooth with the Budget unravelling, Iain Duncan Smith resigning and a growing row over forcing all schools to become academies.

The latter issue is particularly relevant to these local elections. There was a time when education was one of the main battlegrounds between the parties because Town Hall influence in the running of schools was strong. Now the government is hell bent on side lining councillors as it moves towards creating academies in all schools. Not surprisingly many Conservative councillors have reacted angrily to this implied criticism of their role in many high performing schools. The move is hardly likely to raise morale amongst Tories as they fight the local elections.

LABOUR AT ITS PEAK.

Labour has been gaining ground at every local election since the Coalition government came into office in 2010. The last time these seats were contested in 2012, Ed Miliband did particularly well.

Labour controls virtually all the urban councils across the North from the Wirral and Cheshire West and Chester to South and West Yorkshire. The three councils running down the Pennines (Pendle, Calderdale and Kirklees) divide these two areas and are under no one party control. However Labour has them in its sights.

Labour has all the councillors in Manchester(in the interests of democracy and scruitiny it would be handy if some Greens could be elected) and 80 of the 90 councillors in Liverpool. It has gained control of all the district councils in southern Lancashire from Burnley and Rossendale to West Lancashire.

All this means that further gains are going to be difficult for Labour, although they will hope not to fall back.

OTHER PARTIES.

The Coalition years proved devastating for the Lib Dems who are now reduced to defending their heartland in the South Lakes and trying to hold on to minority control in Stockport.

It will be Tim Farron’s first test as party leader. He was elected over Norman Lamb because it was felt he was better placed to rebuild the party through its activist base. Now comes the test. The Lib Dems 6% poll rating has hardly flickered since the General Election but Farron claims they have been making gains in the regular by elections that take place each week without much publicity. Free from governing with the Tories, now is the time the tide must turn for the Lib Dems.

UKIP has generally made slow progress in getting elected to northern councils in recent years, with the exception of Rotherham where the child abuse scandal has dealt a blow to Labour. They have often got substantial votes in wards but fell victim to the voting system. This year they have bigger fish to fry in the EU referendum and are not expected to make a big impression, particularly in the North West.

THE BATTLEFIELD.

Next Thursday a third of the seats on the metropolitan councils of Merseyside, Greater Manchester and West Yorkshire are up for election.

All the seats are up for election in Knowsley and in the unitary authority of Warrington due to new ward boundaries. A third of the councillors on the unitary councils of Blackburn with Darwen and Halton are up for election.

A few shire district councils have a third of their seats up for election. They are Burnley, Chorley, Craven, Harrogate, Hyndburn, South Lakeland, Rossendale and West Lancashire.

Few councils will change hands. The Conservatives will be keen to cling on to their slim majority on their only metropolitan council of Trafford and if they are to make gains, these are most likely in Rossendale and possibly West Lancashire.

Labour will battle for Trafford too but are also targeting Pendle, Calderdale and Kirklees whilst the Lib Dems would like to edge towards the 31 mark needed for control of Stockport. They are currently on 26.

MAYORAL CONTESTS.

Jo Anderson is expected to defeat the challenge of six other candidates to win a second term as elected mayor of Liverpool. The Lib Dems and Conservatives have good candidates in veteran Richard Kemp and charismatic businessman Tony Caldeira respectively but Anderson won in 2012 with nearly 60% of the vote. He doesn’t plan to stay long as he wants to contest the Liverpool City Region elected mayor post next year, but other Labour figures may want to be nominated for that role too.

In Salford Labour’s Paul Dennett will take over from the retiring Ian Stewart.

 

ENTERPRISE PARTNERSHIPS NEED SUPPORT

Since the late seventies there have been forty different schemes to boost economic activity in the North to help close the gap with the booming South East. Local Enterprise Partnerships (LEPs) are the latest initiative and their performance has come under the eagle eye of the National Audit Office (NAO).

Their findings matter because by 2021 £12bn of our money will be channelled through LEPs under the Local Growth Fund. However the NAO has just published a report saying many of them lack capacity, expertise, transparency and that they spend money on short term projects because of Whitehall funding conditions.

There are LEPs all across the North with Leeds awarded the largest Growth Deal so far, £627m. Greater Manchester tops the national table for money given to transport projects. Liverpool City Region has been well staffed from the outset having taken on the staff of the Mersey Partnership. Warrington and Cheshire LEP is boosted by Warrington’s ability to take advantage of its excellent connectivity. With regard to Lancashire, Downtown recently hosted a top level conference at Brockholes where the ambition of the county to be part of the Northern Powerhouse was clear.

For all that there are major challenges facing our LEPs. For instance what exactly is their role in the Northern Powerhouse world of City Regions and elected mayors? The government wants LEPs centrally involved in the devolution deals they have recently signed. But LEPs have told the NAO they are uncertain of their role particularly when their boundaries are not aligned with city regions. The relationship between the business led LEPs and city region mayors, to be elected next year, remain unclear.

The idea behind LEPs was that senior business leaders would play prominent roles, but getting these busy people involved has proved difficult. The impression is sometimes given that the business representation on LEPs lacks heft and drive. The NAO calls for business to make a greater effort to be involved after years of complaints that such bodies were dominated by politicians.

Although LEPs are business led, they rely heavily on local councils for expertise. 69% of LEPs told the NAO they did not have enough staff of their own and 28% said they were not skilled enough. However local councils are under enormous pressure to empty bins and care for the elderly. There has been a 68% cut in Town Hall spending on economic development, the core function of LEPs.

LEPs have been around for a few years now, so how are they doing? Are they providing value for money? The NAO is critical about Whitehall’s methods for answering that question. LEPs have admitted that pressure to spend money in a single financial year has sometimes led them to invest in “spade ready” schemes rather than ones that would be of longer term benefit.

LEPs also need to raise their profile with the public with greater media coverage and seek ways to be more democratically accountable. The danger of not putting down roots in the community was seen when the Coalition government was able to sweep away the Regional Development Agencies with little public reaction.

 

A CONFUSING POTENTIAL SWANSONG

 

PICK AND MIX

You’ll look for an ideological thread in the Chancellor’s budget in vain. On the one hand he regards it as acceptable to cut disabled benefits whilst cutting Corporation Tax again. On the other hand the sugar tax is an intervention in the free market that met with the immediate approval of Jeremy Corbyn.

Then there was the missed opportunity to increase petrol duty at a time when the slump in world oil prices meant motorists would hardly have noticed. He didn’t do it apparently so as to appease Tory backbenchers who he wants to vote for him for leader. But earlier in his speech he referred to the Office of Budget Responsibility’s warning that leaving the EU would lead to “disruptive uncertainty.” The OBR are right, Osborne was right to refer to the biggest issue that could disrupt his Budget strategy, but it didn’t go down well with many of those Tory backbenchers.

NORTHERN POWERHOUSE.

It was a complex, somewhat incoherent Budget which nonetheless had some good things in it for small business and the Northern Powerhouse. I thought the Leeds-Manchester rail line had been given the go-head a few times already but, anyway, it was in the Budget along with creating a 4 lane M62 over the Pennines. News that a case will be developed for a Manchester-Sheffield road tunnel is good news too. Greater Manchester once again gets more powers, this time over justice issues. But ominously whilst elected mayoral deals were announced for some rural areas, there was silence on Leeds, Greater Yorkshire and Cumbria. Knowsley is to get the northern Shakespeare Theatre which is brilliant and a reward for the lobbying work of local MP George Howarth. Perhaps he could play Lear in the first production!

SMALL BUSINESS BONANZA.

600,000 small businesses will pay zero rates from next year when the payment threshold is lifted £15000. This is even higher than campaigners were hoping for but there was more good news in George Osborne’s red box. The annual rise in business rates will in future be pegged to the consumer price index rather than the higher retail price index. There are also likely to be more frequent reviews. Due to government delays, businesses are still paying tax based on property values dating back to the financial crisis.

The elected mayors of Greater Manchester and the Liverpool City Region are to be given full powers over spending business rates but there is a downside for them and all local government. Town Halls will soon depend on business rates for their income rather than central grant. If Chancellor’s keep reducing the rates, council services will suffer further.

They will anyway because the Chancellor is looking for another £3.5bn of public spending cuts in 2019 as part of his desperate attempt to leap from a deficit of £20bn in 2019 to a surplus of £10bn in election year.

By then, the theory goes, George Osborne will be Prime Minister. There are just the little problems of Brexit, Boris and the good old British economy in the way.

 

A DREADFUL WEEK IN BRITISH POLITICS

 

CABINET SPLITS ON EU.

What an appalling start to the New Year it has been for British politics.

David Cameron’s decision to allow Cabinet members to split on the E.U Referendum is a flat contradiction of what he told the BBC’s Andrew Marr a year ago. The Prime Minister is a brazen pragmatist. What he said yesterday does not matter. He can busk it with his effortless Etonian charm. Now we must wait and see how many Cabinet Ministers take the opportunity to rubbish the deal Cameron gets from his negotiations. If Home Secretary Theresa May, and careerist Boris Johnson join the perennial anti EU Iain Duncan Smith and Chris Grayling then the Prime Minister has a serious problem and so do those of us who want to stay in. Cameron will deserve it if the campaign becomes acrimonious and the Tory Party is split for a generation.

LABOUR BETRAYAL.

That is what happened to Labour soon after Harold Wilson allowed his Cabinet to split on the 1975 referendum. Within six years Cabinet members who had campaigned to stay in formed the Social Democrat Party whilst the Labour Party descended into faction fighting. It vowed never to return to those days when it won power sixteen long years later but this week we have seen in the longest reshuffle in history that Labour is going to be unfit for office until 2025 or 2030. What a betrayal of working class people! From the Blair-Brown feud to the current shambles, both left and right in the party have let ordinary people down big time.

THE YEAR AHEAD.

Apart from the EU Referendum which is likely in June, what else have we to look forward to this year?

THE AMERICAN DYNASTIES TO CONTINUE.

Kennedy, Bush, Clinton; it is amazing that in a country of 320 million people that it is quite possible that between 1989 and 2024 either a Clinton or a Bush will have been President of the United States apart from Barack Obama.

It looks almost certain that Hilary Clinton will win in November because the Republicans have narrowed their support base at a time when America is becoming more multicultural. It is possible the Republicans will choose Donald Trump but even if it is Florida senator Marco Rubio, they are still likely to be handicapped by their reluctance to accept the USA as it is.

CARRY ON CORBYN.

Labour are likely to be heavily beaten in the Scottish government elections but if they can win the London Mayor race and hold their very strong position in local government in the North, there will be no immediate pressure on Jeremy Corbyn.

Locally interest will focus on Liverpool where Joe Anderson is due to stand again for mayor of the city. As he has recently taken over as chair of the Liverpool City Region which is due to elect a mayor for the wider area next year, he may stand down. It is difficult to see how elected mayors in Liverpool and Salford will sit happily under mayors for the larger combined authorities.

Meanwhile Leeds, Lancashire, Cheshire and Cumbria will be looking to conclude devolution deals.