Tag: Manchester

GEORGE AND THE BATTLING GRANNIES

You’ve got to hand it to the toff from Tatton, he doesn’t lack political courage.

At one stroke George Osborne has knocked the walking stick out of the hands of pensioners and rewarded his millionaire friends with a massive tax cut.

And yet for all the controversy the income tax cut and the age related tax allowance freeze will create, the Chancellor gave a confident performance. The signal was given out that the government’s determination to bring down the deficit was on course and the Coalition was holding together.

The ludicrously leaked budget was all about Tories and Lib Dems showing how much influence they had on the decision making process. Both parties got prizes. The Tories cut the 50p rate, the Lib Dems are now close to their pledge that people earning less than £10,000 should not pay income tax.

Osborne must now pray for growth and that the newly enriched millionaires will not only “stay and pay” but will invest to help the recovery. We must remember the government has only just begun the cuts agenda. There is the prospect of a further £10bn cut in welfare benefits.

The Chancellor ran up the white flag on the 50p rate effectively saying that private sector accountants had outwitted Treasury officials who draft our tax laws. We’ll see how effective the government’s pledge is to clamp down on aggressive tax avoidance.

He must also hope there will not be a big backlash over the “granny tax”. There is an argument that the golden generation born into the welfare state after the war, enjoying full employment and retiring on good company pensions should share the burden with the young suffering from tuition fees, unemployment and the prospect of retiring at 70 on average salary pensions.

The problem for politicians is that the old vote and the young don’t. The scrapping of the age related allowance is going to hit soon-to-retire couples really hard.

Labour still isn’t trusted on the economy but Ed Miliband did well in the House of Commons when he invited Tory MPs to acknowledge they would personally benefit from the income tax cut.

 

BUDGET IN THE NORTH WEST

The Chancellor’s announcement of investment in the Preston-Blackpool, Manchester-Bradford and Manchester-Sheffield rail lines is welcome. The links between Manchester and South Yorkshire are particularly bad. The full commitment to the vital Northern Hub at Piccadilly Station is still awaited though.

Manchester has done well, getting £150m over five years from the Treasury in return for promised economic growth through tax increment financing. The city is also to be part of the government’s superfast broadband project.

Surprisingly Liverpool wasn’t  included, another blow after the city’s failure in its bid for the Green Investment Bank.

 

VIV BINGHAM OBE

The funeral was held yesterday of one of the finest Liberals the North West has produced.

Although he never made it to parliament, Viv Bingham served the party at every level from fighting hopeless seats to becoming Party President.

A principled man, he was sometimes a thorn in the side of his party leaders particularly on the issue of nuclear weapons. He was a confirmed unilateralist.

But overwhelmingly people responded to his friendship and warm hearted personality.

Over thirty years he fought a range of seats from Heywood and Royton and Hazel Grove to West Derbyshire and Stalybridge and Hyde.

The highlight of his career was his year as President of the Liberal Party 1981-82.

Viv brought all his diplomatic skills to bear in his party’s sometimes difficult relations with the newly formed Social Democratic Party.

The many tributes in recent days are eloquent testament to the passing of a true Liberal.

EUROFIGHT ON AND MANCHESTER “YES” TO MAYOR?

The aerospace industry is vital to the North West economy, so the chance to partly assemble 126 Eurofighter Typhoon jets for the Indian Air Force must be fought for.

On a visit to Westminster this week I gained evidence that much is going on behind the scenes even though preferred bidder status has been given to the French.

Ben Wallace, the MP for Wyre and Preston North, along with his colleague Mark Menzies (Fylde) met the Prime Minister on Monday. Eyebrows had been raised when news came through that the French had stolen a march on us, because David Cameron visited India with a big trade delegation soon after coming into office.

Now more details are emerging about the situation which could have implications for the workforce at Salmesbury, Warton and beyond. The strength of the French bid apparently lies in their tie up with the Reliance Group, India’s largest private sector conglomerate. With annual revenues of $58bn it is far larger than Tata, the Indian company which owns the Jaguar plant at Halewood.

However this deal is far from done and with David Cameron on the case, efforts will be made to expose the weaknesses of the French position. I’m told Reliance has no track record in aerospace and there is very little detail on price which could be significant as the French are desperate to get a foreign order for their Rafale jet. 700 of the Eurofighters have already been sold.

Ben Wallace emerged from his meeting with the PM confident there was all to play for. Apparently in similar negotiations for these aircraft the preferred bidder has been overtaken on six occasions.

Wallace is a Conservative MP in the tradition of former members like David Trippier (Rossendale) and Malcolm Thornton (Crosby). They are Tories that believe that to be successful in the North West; it helps to come from the liberal One Nation part of the party.

Wallace has been in the House since 2005 but faces a brutal internal party battle to maintain his political career. Boundary changes are likely to see him, Mark Menzies (Fylde) and Eric Ollerenshaw (Fleetwood and Lancaster) competing for just two seats.

During our time together at the Commons  we bumped into Wallace’s neighbour Jack Straw (Blackburn). Jack seems to be almost equally concerned aboutIranand Blackburn Rovers these days. He feels his successor as Foreign Secretary, William Hague, is underestimating the growing crisis surrounding Iran.

On the crisis at Ewood Park Jack had made an unusual move for an MP, in calling for manager Steve Keen to go. He seemed unimpressed when I remarked that Rovers had been doing a bit better recently.

Around the Commons corridors much of the talk is about elected mayors and Police Crime Commissioners. Ben Wallace told me he’s lining up an ex-soldier colleague of his to contest the position for the Lancashire Police Authority.

On the mayoral front I had an interesting chat with former Labour Minister and Wythenshawe MP Paul Goggins. There has been a general feeling that Manchester will vote “no” in the May referendum on whether to have a directly elected mayor with council leader Sir Richard Leese being against the idea.

However Goggins does not rule out a “yes” vote in Manchester pointing out that in neighbouring Salford last month every ward voted “yes” in a referendum triggered by a local businessman. So although the turnout was low, support was consistent across that city.

Following the “yes” vote, candidates have piled in to be the Labour nominees. The former Eccles MP Ian Stewart, has been joined by Salford council leader John Merry and former Labour National Executive Committee member Peter Wheeler.

A TALE OF TWO CITIES

In the week when we are celebrating the two hundredth anniversary of Charles Dickens, I’m writing about two cities; not London and Paris but Manchester and Liverpool.

If you want to know the real issues facing business in Manchester city centre ask Pat Karney.

He’s the councillor responsible for the heart of the metropolis and everyone beats a path to his office.

At a major gathering of city centre employers this week, Cllr Karney gave them an insight into the diverse range of problems that came across his desk in just one morning. In addition to the uproar over charging for Sunday parking, one shop keeper came to complain about human excrement outside the Hidden Gem church and representatives of the gay community objected to a club being turned into a budget hotel.

Despite these minor inconveniences, Manchester seems to be surviving the recession very well. Indeed council leader Sir Richard Leese suggested that the city centre could accommodate a thousand new residential units a year for the next decade. There is 96% occupancy of the existing provision. Leese claimed that Manchester employment had returned to pre recession levels.

Leese does not want the city to vote for an elected mayor, he prefers the Combined Authority model that has been in place for nearly a year now. All the local authorities in Greater Manchester are working together to drive an impressive range of projects.

There’s the enterprise zone at Manchester Airport where the infrastructure for a major retail, leisure and warehousing scheme will be in place by next year. In addition there’s MediaCity and the Sharp Project in east Manchester for budding media businesses. So successful has the latter been that Sharp 2 is planned. Nearby Manchester City football club is developing the Etihad Project.

At Manchester University a government backed plan is underway to capitalise on the discovery of graphine (very thin and very strong). Are we going to make some money for once out of a product developed in Britain?

Salford’s soon to be elected mayor will inherit a city still struggling with some big social problems but with a number of infrastructure schemes including the Chapel Street gateway and a plan to open up a riverside route from MediaCity up to Salford University.

Meanwhile Liverpool Council took the formal decision to go for an elected mayor. Liberal Democrat opposition to scrapping the planned referendum was half hearted and the debate did not match some that I have witnessed in the historic council chamber.
Council leader Joe Anderson had the wind in his sails having just signed off the £130m deal with the government that he insists was only possible because the city was going to have an elected mayor.

One felt the politicians already had their eye on who was going to stand. Joe Anderson will clearly be Labour’s candidate. He might face ex leader and Lib Dem peer Mike Storey. The suggestion was certainly not denied by a senior party source. If Storey can’t be lured from the best club in London, then Cllr Richard Kemp might consider standing.

The Liberals will field Cllr Steve Radford who gave his support to the new post on Tuesday night, and there is likely to be a Conservative candidate.

But the campaign will be enlivened by independents. There are two at the moment and they make an unlikely couple. There’s former broadcaster Liam Fogarty who has campaigned for the last 10 years for an elected mayor. A clever man of substance, he cares passionately about his city. It will be fascinating to see how he stands up to the robust style of bruiser Anderson.

Then there’s celebrity hairstylist Herbert Howe who has promised to take no salary and to be independent of all party factions.

Before you dismiss his chances remember that Robocop got elected in Middlesbrough. H’Angus the Monkey won in Hartlepool and an English Democrat became mayor of Doncaster.