THE YEAR OF THE ECONOMIC TURN

 

 

The year ends with the Chancellor smirking and Ed Balls going red in the face.

 

The Tory baiting of Ed Balls during the Autumn Statement debate brought parliament to a new low, but Balls had wound them up for years with his flat lining gestures. They are now redundant. 2013 saw the debate move from double and triple dip recessions to modest optimism about growth. It would be handy if the recovery could be based on manufacturing and exports rather than consumer and housing spending in 2014, but at the moment George Osborne is winning the plaudits. Labour ends the year relying heavily on their argument that the cost of living is the real issue.

 

This Christmas the Conservatives find themselves in a strange position. They lag behind Labour in the polls but in normal circumstances, they would expect to be able to surge past the opposition with the usual pre election sweeteners in the last full year of the parliament. However uncertainty over UKIP and how they will perform against Lib Dems has led to a pessimistic spirit this festive season.

 

When the tuition fees issue was at its height, there were forecasts that the Lib Dems would be sending their MPs elected in 2015 to Westminster in a taxi again. This year they showed signs that the darkest years that saw them virtually cleared out of Town Halls in the north may be over. They held the Eastleigh by election and leader Nick Clegg got support for policies at his party conference that would have seen grass roots revolts under previous Lib Dem leaders.

 

Ed Miliband is never likely to gain the adulation that Tony Blair enjoyed before he took office in 1997 but this year he has strengthened his position as party leader. By focusing on the cost of living he struck a rapport with voters and forced Ministers to take notice. There are many questions around his promise of an energy price freeze but it has made the political weather this autumn.

 

Miliband also won plaudits for his stance on military intervention in Syria. It led directly to the Americans having second thoughts. Whilst the war drags on and the poor refugees suffer, we are in a better place in the Middle East overall. Chemical weapons have been removed in Syria and the Iranians are coming in from the diplomatic cold.

 

In local politics we saw the Conservative regime of Geoff Driver defeated in Lancashire whilst two leading females departed in less than happy circumstances. Marie Rimmer lost her battle for the leadership of St Helens Council whilst Salford Chief Executive Barbara Spicer fell out with the Mayor of Salford. Happily Barbara has a new job heading up the Skills Funding Agency. Personnel changes are the least of the problems for Town Halls set against the continuing rounds of spending cuts.

 

 

The possibility of an energy gap has become more real this year as we wrestle with the problem of keeping prices down whilst dealing with global warming. The weather was rarely out of the headlines in 2013. A bitter winter was followed by a great summer. The Philippines typhoon was followed by a major battering for the coasts of the North West and Yorkshire. Fracking and nuclear power have risen up the agenda this year.

 

We are likely to be better connected after decisions taken in 2013. Final plans for the new Mersey Gateway Bridge were approved; the northern Rail Hub in Manchester got the green light; and consultations began on HS2.

 

The year saw the death of two of the twentieth century’s great figures; Nelson Mandela and Margaret Thatcher. Their politics were very different but they both made a difference and that’s all we can hope to do each in our own way.

 

Have a peaceful Christmas

 

 

 

 

CUT COUNCIL ELECTIONS IN CITIES TO SAVE MONEY

Where ever I go it’s a chapter of woe. In the last few days I’ve been to Winsford, Manchester and Liverpool to witness councils struggling to fix next month’s annual budget against a background of swingeing cuts.

 

The problem with this story is that I’ve been covering this sort of issue for forty years. Councils complaining that these are the worst cuts ever and forecasting doom and gloom for the services people need. This time I don’t think they are crying wolf. The scale of the cuts means that they are having to completely rethink the way they provide services.

 

With health authorities, the police and fire service also facing the same pressure; there is a willingness for them all to get out of their “silos” and talk together about providing us with a joined up service. This may be the only good thing to come from the government’s squeeze on the Town Halls. It was a point I put to Manchester Council leader Sir Richard Leese. He had been explaining to a conference in Manchester that “troubled families” often had thirteen different people contacting them in the past. Now management restructuring and greater cooperation with other agencies would mean one person would be put in charge of a case.

 

It begged the question why hadn’t it been done before? His reply was revealing. Until now public sector bodies had been reluctant to cooperate. The budget pressures facing them all had changed that.

 

So credit Local Government Secretary Eric Pickles with one point, but little else. The man is a disgrace. The relish with which he is stripping councils of millions of pounds and suggesting that savings on providing mineral water at meetings will solve the problem is fatuous. His attack on authorities like Manchester for holding £120m in reserves is frankly dishonest. He knows that this money cannot be spent on the revenue budget.

 

Things are so bad in Liverpool that Mayor Joe Anderson has called for divine inspiration. This week he hosted a summit with the Bishop of Liverpool to protest at government demands that the city reduce its spending by 52% over four years. Mayor Joe has been attacked for forecasting civil unrest if this goes on. The criticism is probably right because the last thing his city needs is rioting but there is a burning sense of injustice among civic leaders from Liverpool to Leeds that the local government financial settlement appears to favour southern councils at the expense of the north.

 

Be that as it may, new thinking is required. Cheshire West and Chester Council saw this crisis coming and on Wednesday night in Winsford they began a series of public consultation meetings (which I am chairing) on their budget plans. They include their “Altogether Better” programme which aims to reduce duplication between agencies operating in their patch.

 

Apart from the general cuts, Wirral Council has suffered historic internal management failures not helped by political instability. There is a proposal on the table to scrap the election of a third of councillors every year and go for an all out election every four years. Sources indicate it may not be approved which is a shame. It would end the confusing system that applies across the metropolitan areas of West Yorkshire, Greater Manchester and Merseyside. It would be better if Leeds, Bury, Wirral etc. had one big election every four years when the future control of the council would be at stake. It would also save money for other services which is what this crisis is all about.