Masterplan for Hull's economic growth backed by Government

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Monday, March 18, 2013
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HDMAngusYoung

Plans to boost Hull were given further backing today when the Government announced it was accepting most of Lord Heseltine’s recommendations for economic growth.

Hull and the Humber has been chosen as one of two pilot areas by the former deputy prime minister to put ideas from his recent No Stone Unturned report into action.

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    Lord Heseltine during his recent visit to Hull

Now, ministers have given the go-ahead to most of the report’s recommendations.

They include devolving more powers and funding from Whitehall to local areas.

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Chancellor George Osborne said: “We asked Lord Heseltine to do what he does best: challenge received wisdom and give us bold ideas on how to bring government and industry together.

“He did just that, and that is why we are backing his ideas today.”

City council leader Steve Brady said: “Because we are a pilot area, Hull is going to be a very forefront of this.

“We are more than ready to play our part.”

However, Ed Balls, Labour’s Shadow Chancellor, said Lord Heseltine's plan underlined the "short-sighted decision" to abolish regional development agencies like Hull Forward and Yorkshire Forward in 2010.

He said: "Local areas should have the powers and resources they need to get growth going and create jobs, but this devolution must not be used as a cover for even deeper cuts.

"And it is crucial that accountability, proper transparency and good governance are in place if Government is to devolve this public money."

Mr Balls said government ministers had to act to "kickstart the flatlining economy."

“Our economy has now flatlined for nearly three years, but the Government still does not have a growth plan that can meet the scale of the challenge.”

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8 Comments

  • Profile image for mutton8

    by mutton8

    Monday, March 18 2013, 5:27PM

    “Vanityunfair makes some good points about who should control local funding, but I don't think trying to raise more cash by Council Tax is a good idea. It is one of the worst taxes ever devised. It is unfair and inefficient. But the worst aspect is the horrifying amounts that are never collected. As a result of the Council's inability to collect the tax budget black holes have to be filled by increasing the burden on those that do pay it.”

  • Profile image for localad

    by localad

    Monday, March 18 2013, 4:03PM

    “So long as any plans and schemes don't involve the Manor Group, because if it does sod all will get done anyway.”

  • Profile image for Worker111

    by Worker111

    Monday, March 18 2013, 3:43PM

    “by VicMay "Brilliant news, great work from the Hull Labour Group."

    Yes Vic, brillaint work, getting a Tory in to try and sort their mess out”

  • Profile image for gassetta

    by gassetta

    Monday, March 18 2013, 3:21PM

    “It wont cost a lot to redevelop Hull, just leave the tidal barrier up and it will make a nice lake.”

  • Profile image for vanityunfair

    by vanityunfair

    Monday, March 18 2013, 3:03PM

    “Very few people are going to like this.
    The problem is that we don't pay enough Council Tax. (Told you.)
    Over 80% of local government funding comes from central government sources. This gives councillors the opportunity to claim that they have very little control over local policies and allows ministers to exercise control over local councils both as a means of projecting their power and punishing those who do not follow the government's policies closely enough.
    A further effect is that councillors are seen to exercise little control over local matters and, as a result, fewer people are encouraged to vote for them: hence the abysmal turn-out for local elections. It is seen as a waste of effort because the outcome is not seen to be worth the effort, little as it is.
    The cure is to increase local taxation by an extra four times and simultaneously reduce central taxation on consumer goods by a similar amount. The result is to make local councils more immediately responsible for local matters as they will have to argue the need for income to their electors and show their good husbandry every year in the accounts. Voters should then be more prepared to vote for candidates because the importance of their role is more obvious and more personally relevant.
    There will still be a need for central government funding on projects of national importance. Ideally, this will be debated and decided on a national and not partisan basis. Well, we can but hope.
    I can see that recasting the various rebates and allowances will be a source of complaint. There will be those who gain and those who lose over the present arrangement. The losers will complain and the winners will keep quiet.
    It goes without saying that business rates should be paid to to the local council. This gives the council even more incentive to encourage local firms. More businesses means fewer unemployed people means less spent on benefits means lower taxes. Well, we can but hope.
    Will central government be prepared to lessen its stranglehold over local government? That's very unlikely as they have spent so long, whatever party, arrogating unto themselves so much power and the civil servants who currently administer the process, however few, will not be in favour either.
    Will the local electorate really take up the challenge of exercising proper control over local councils? It will take a lot of education to overcome the accumulated lethargy but I am optimistic that when people realise that they can influence how their taxes are used they will be more willing to vote and write. Well, we can but hope. This is Yorkshire after all.”

  • Profile image for farfutavision

    by farfutavision

    Monday, March 18 2013, 2:54PM

    “Hull is in desperate need of help. At the moment it looks and feels like a sinking ship. I had to go into the city centre the other day and it is in a dreadful state. Help cannot come quick enough.”

  • Profile image for VicMay

    by VicMay

    Monday, March 18 2013, 2:37PM

    “Brilliant news, great work from the Hull Labour Group. Lets hope more firms move to Hull and create the jobs we so desperately need.”

  • Profile image for PatrickNewman

    by PatrickNewman

    Monday, March 18 2013, 1:56PM

    “Dont hold your breath the Kamikaze Chancellor has not accepted all the recommendations and the dosh available is a fraction of the national figure of £58bn. The LEP have yet to prove themselves and in Humberside I dont thing the CE is in place yet. Measures for growth should have been in place over two years ago but the coalition has spent most of the time dismantling what Labour had put in place.”

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