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FINANCE

Manchester leads on devolution – but where is the cash?

Champions of fiscal freedom would be hard pressed to see too much to cheer in chancellor George Osborne's Devo Manc proposals, writes editor Heather Jameson.

Congratulations to Manchester. Leading the way in the devolution stakes, it has secured the first deal from the Treasury to pull down powers to the combined authority level.

Sir Richard Leese and Sir Howard Bernstein have, between them, changed the face of local government – even if it is just baby steps for now.

Reading the coverage and the quotes, you could be forgiven for thinking that the most pressing part of the deal was an Oyster card for Mancunians. Fond as I am of an integrated transport payment system, it is just the tip of the iceberg.

But while there is devolution of powers over housing, planning, skills and growth there is the obvious omission – where is the fiscal devolution?

With £22bn public spending a year in Greater Manchester, there is a lot of scope for saving and shaping the local economy.

There is, however, still a long way to go. If Manchester cannot be trusted with devolved finances yet, imagine how the Government would feel about handing down fiscal freedom to Tower Hamlets. Flawed, not fraud, is hardly a ringing endorsement.

It makes CIPFA's manifesto all the more fascinating reading. Rob Whiteman is, quite literally, taking on the world – or at least international governments' accountancy procedures.

The global financial crash may have been blamed on the bankers, but political priorities and poor accounting exacerbated the crash and public service funding – particularly local government – has been hit.

Short-term planning, vote-chasing and fiscal gerrymandering all come under fire. Rob has also called for government departments to have chief financial officers, offering impartial advice which is published and openly available.

With the current spending plans put forward by the political parties, Rob suggests we are heading straight for another financial disaster before we have even sorted out the consequences of the last.

So, should the Government trust Manchester with devolved finances? I think so.

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