No tracking. No cookies
Subscriptions
Subscriptions
Support our mission to provide fearless stories about and outside the media system
Packed with exclusive investigations, analysis, and features
The Labour Mayor of the North East has criticised the Government for holding power “too tightly in Westminster” as she claims that calls for powers to introduce a tourism levy have been blocked.
The Government’s landmark English devolution bill has its first proper debate a week today (September 2) when Parliament returns from recess.
The bill promises to give every area in England a devolution deal by 2030 – handing more powers to local and mayoral authorities. But while welcoming the bill, Labour’s elected North East Mayor, Kim McGuinness, suggests Rachel Reeves’ Treasury is blocking moves to give them powers to introduce a small tourism levy, as is common in many European countries.
Tourism hotspots including Cornwall and Bath have recently written to the Treasury urging ministers to let them implement a fee for visitors to bolster local services.
In a foreword to a new report from the progressive think tank Compass, McGuinness writes: “There is a long way to go until we truly devolve power…Progress has been slow because as a nation our leaders haven’t trusted local people.”
The Labour mayor, who was elected in May 2024, adds: “I want to charge a visitor levy, a small fee to stay in hotels. It’s a charge that’s so mainstream across the rest of the world you barely notice it. Yet, despite widespread support amongst mayors, we’re struggling to get this off the ground. Power, once again, is being held too tightly in Westminster.”
ENJOYING THIS ARTICLE? HELP US TO PRODUCE MORE
Receive the monthly Byline Times newspaper and help to support fearless, independent journalism that breaks stories, shapes the agenda and holds power to account.
We’re not funded by a billionaire oligarch or an offshore hedge-fund. We rely on our readers to fund our journalism. If you like what we do, please subscribe.
She is calling for Keir Starmer’s Government to go much further than its current devolution plans, giving mayoral authorities powers to control taxes in their areas.
“Devolution cannot just be a tick box. It’s not completed once a mayor is in place. We’ll never see the true success of our regions without fiscal devolution. I’m not calling for it all at once, but small steps, including a visitor levy, would be a positive move to demonstrate the Government’s commitment to a real dilution of power,” McGuinness says.
She writes: “Mayors are using the powers we already have to deliver, but for us to make the difference that local people need, those in Westminster must go further. Ultimately, they must trust local people to know what’s best for them.”
The English Devolution and Community Empowerment Bill was introduced to the House of Commons in July, part of a manifesto pledge from Labour to move power outside of Westminster.
As Compass notes: “The bill brought the most wide-scale reform to local Government in England since the establishment of directly elected mayors in combined authorities outside of London in the Cities and Local Government Devolution Act 2016.”
The bill establishes ‘Strategic Authorities’ – larger, single-tier councils across England, serving populations of approximately 500,000 people.
It will grant mayors enhanced powers to accelerate housing delivery, and enables mayors to borrow for major projects and infrastructure. It will also provide the new strategic authorities more oversight of transport (including e-bike regulation), adult education, housing planning, local healthcare, and the development of local growth strategies.
A new Local Audit Office will help scrutinise council expenditure amid a collapse in local Government financial scrutiny since the coalition-era abolition of the Audit Commission.
First Past the Post to Be Scrapped for English Mayoral Elections in Bid to Reverse Conservative ‘Gerrymandering’
The move reverses changes made by the last Conservative Government, which was accused of seeking to “stitch up” elections in its own favour
The bill’s two most significant provisions, in Compass’ view, are the restoration of the supplementary vote system for mayoral elections and the introduction of a ‘community right to buy’, giving communities first refusal to purchase local institutions and assets when they are up for sale – including pubs, sports centres, community centres, and parks.
However, authors including Dr Jess Garland of the Electoral Reform Society note in the report that council elections will still take place under Westminster’s First Past the Post system, which often means local councils are unfairly dominated by one party.
The former Secretary of State for Communities and Local Government under Gordon Brown, (now) Professor John Denham, also joins the calls for Keir Starmer to go much further on devolution.
He writes of the current constitutional set-up: “Parliament might debate whether it was a good idea to force the privatisation of municipal bus companies, for example, but few questioned the right of the centre to do so.
“We are so used to this model of Westminster and Whitehall control that we often forget how odd it appears to observers in nearly every other European nation…
“The Government’s current vision will still leave England’s localities with far less control over the resources they raise and spend than in almost every other European nation.”
Where Is the Political Leadership Against This Violent Far-Right Movement Terrorising Britain?
The silence of senior mainstream politicians and media organisations against the rise of a new well-organised far-right movement on Britain’s streets is a disgrace, argues Adam Bienkov
He is also calling for stronger local scrutiny of mayors, backing the creation of “powerful, independent, Local Public Accounts Committees” mirroring that of Parliament’s.
“These would have a mix of senior councillors and independent members and be supported by expert advisors from the new Audit Service. Government ministers are working on the idea, but apparently it will need to wait for another Bill later in the Parliament.”
Dr Jess Garland of the ERS points to research showing that councils with weak electoral accountability – defined as those with 10% or more uncontested seats or having been under same party control for more than ten years with at least two-thirds councils seats in the same party – “have roughly [a] 50% higher corruption risk and correspondingly 1-4% in lost savings on procurement contracts.”
Sarah Longlands, Chief Executive of the Centre for Local Economic Strategies argues that the Government “doesn’t seem open to the idea” of fiscal devolution. “It barely got a mention in last year’s Devolution White Paper. Not even fairly low-key tax raising initiatives such as tourism taxes or green tax breaks made it in. Not for the first time, the Treasury remains unwilling to “let it go””.
Powers over tax – as is the case in Scotland – has long been called for by England’s regional leaders including Greater Manchester mayor Andy Burnham.
The report also calls for the current Mayors Council, which brings together England’s metro-mayors with national Government, to become a statutory body, with the “right and duty to co-design all policies that are national in intent, but implemented locally.”
Don’t miss a story
However, the authors argue: “None of this can work without financial power transferred to local level.”
Some campaigners are also concerned that ministers have taken a step backwards when it comes to community empowerment.
The Labour Government’s recent decision to end the Community Ownership Fund has caused concern among pro-localism groups. It was a program that has, in the words of pro-devolution think tank Locality, “supported hundreds of communities across the country in taking ownership of vital local assets, particularly in more disadvantaged areas of the country.”
Tony Armstrong, CEO of Locality told Byline Times: “The inclusion of the Right to Buy for communities in the English Devolution Bill deserves to be celebrated. This is a significant step forward for community power – something we’ve been campaigning on for many years.
“However, communities need resources to make the most of their rights. In recent years, the Community Ownership Fund has been vital in helping to save hundreds of community hubs, pubs, and clubs. With the fund now ended, there is no dedicated support available from Government for communities looking to take on valued assets.
“For every neighbourhood to be able to reap the rewards of the Right to Buy – especially in more disadvantaged areas – it must be backed with proper resources.”
The Ministry of Housing, Communities and Local Government has been contacted for comment.
The new Compass report, ‘From Whitehall to Townhall: What the English Devolution Bill Needs’ is now online here.
holding farage to account #reformUNCOVERED
While most the rest of the media seems to happy to give the handful of Reform MPs undue prominence, Byline Times is committed to tracking the activities of Nigel Farage’s party when actually in power
Contribute to our #ReformUncovered crowdfunderGot a story? Get in touch in confidence on josiah@bylinetimes.com
Subscribers Get More from JOSIAH
Josiah Mortimer also writes the On the Ground column, exclusive to the print edition of Byline Times.
So for more from him…
