LGIU at the UK Labour Party Conference: Devolution promised but councils want details

At the Labour Party Conference this week, LGIU partnered with The Fabian Society and Norse Group for a fringe discussion that sought to address the issue on everyone’s mind – The Future of Local Government and Communities.

It was standing room only to hear speakers Cllr Arooj Shah, Leader of Oldham Council, Luke Raikes, Research Director and Deputy General Secretary at the Fabian Society, Jonathan Carr-West, Chief Executive of LGIU, Justin Galiford, CEO of Norse Group, Cllr Sara Hyde, Islington Council and of course Jim McMahon OBE MP Minister of State for Local Government and English Devolution.

While the mood music coming from the government since it took office has been encouraging for the sector, it was clear that delegates were keen to start hearing some specifics from the Department.

The Minister was very clear that a complete reset of the central/local relationship was necessary. He was equally clear in recognising the importance of councils to the Government’s plans and the systemic financial challenges that are currently holding them back. Resetting the central-local relationship, and tackling the immediate and long-term financial pressures faced by the sector, are two priorities we have long advocated for throughout our research into financial resilience.

Devolution was a big part of the discussion and seen as part of the re-wiring of the state that will help the government achieve its policy aims. The Minister talked about formal devolution creating a new layer of government at the Combined Authority/Mayoral level and told the meeting that mayors were necessary for an area to be part of the Council of Nations and Regions.

However, there was also some discussion of ‘devolution by default’ for councils that meet the right conditions – but details of what those conditions would be are still in development. For the sector, those details are hugely important. The LGIU has been very clear that for devolution to work, it must be about more than mayors.

(l-r) Jim McMahon OBE MP, Cllr Abdul Jabbar MBE, Cllr Arooj Shah, Jonathan Carr-West

Devolution is seen by many as key to addressing the financial crisis that local government is facing and transforming public services. But this won’t happen overnight, so of course there were questions asked by delegates about funding. Jim McMahon has already confirmed a return to multi-year settlements, but not this year. And again the details – there is as yet no assurance of an emergency financial response to plug the gaps, the Department is still negotiating with the treasury.

LGIU Chief Executive Jonathan Carr-West commented: “It’s encouraging to have a minister of state who is genuinely enthusiastic about local government and what it can achieve. But there’s no magic wand to wave. Addressing the immediate existential pressures on councils while also laying the foundations for long-term transformation will be a challenging  balancing act.”