Labour proposes devolving business decisions
1 min read
Labour leader Ed Miliband has accepted the conclusions of a report that recommends giving control over full revenue from business rates to new city and county regions which come together in combined authorities.
He endorsed the key principle of the Adonis Review – 'Meding Our Fractured Economy' – to tackle regional imbalances in growth by creating strong city and county regions.
Under the proposals, local enterprise partnerships would be strengthened to give businesses a direct say over growth strategies and priorities, backed by a substantial single pot of funding to invest in economic development.
The Adonis Review makes a series of recommendations for using the power of government to nurture the growth of small businesses and support exporters.
The review makes further recommendations to address youth unemployment and persistent skills shortages, including expanding apprenticeships – with a threefold increase in those for school leavers in science, technology, engineering and maths.
It also suggests establishing at least 100 new university technical colleges and create a new "Teach Next" organisation for successful career switchers to teach maths and science.
Lord Adonis said: "My review has a simple goal: creating better jobs in your area. Britain's industrial revolution changed the world. Innovation in technology, production and manufacturing transformed the lives of millions, first in Birmingham, Manchester, Leeds, and other towns and cities, and then beyond our borders. Having once led the world, Britain is struggling to keep up."
He added that growth was unbalanced. "The link between growth and living standards has been broken, exports are weak, young people widely lack the opportunities they deserve and inequality is vast, both between people and between regions."
He said Whitehall needed to hand down budgets and powers for this purpose.
Katja Hall (pictured), CBI deputy director-general, said: "Lord Adonis' report identifies the right priorities for growth and job creation, and recognises that the benefits of the recovery must be shared across all regions of the UK.
"His report addresses many of the major challenges facing our economy, from skills shortages to strains on infrastructure.
"Size matters for local government, and more combined authorities would help create regional economic powerhouses to invest in research and development, support exporters and expand apprenticeships."
