AN ADVISER to the Government has urged ministers to move civil jobs to the North East to “re-balance” public spending.
Liberal Democrat peer John Shipley, a former leader of Newcastle City Council, yesterday urged ministers to think again about a report commissioned by the last Labour Government looking at relocating Whitehall jobs. Reporting to then Chancellor Gordon Brown, the region was promised its fair share of 20,000 jobs to be moved out of London and the South.
Speaking in the House of Lords, Lord Shipley said: “Could I draw attention to the fact that public spending per head is higher in Northern Ireland, London, Scotland and Wales than it is in any English region.
“And might one possibility be that the Government should look again at re-balancing public spending through re-looking at the Lyons Report and what it had to say about decentralising civil service jobs from Whitehall to the English regions?”
Communities and Local Government Minister Baroness Joan Hanham said Lord Shipley spoke with “authority” as a Government adviser on cities.
She said she wanted to look further at the peer’s comments and would write to him if necessary.
The Tory minister also said the Government was working with cities and their surrounding areas to draw up “bespoke” city deals to boost economic growth – although Labour accused the coalition of showering cash on Southern shire counties and neglecting Northern cities.
Lord Bryan Davies of Oldham, who speaks on Treasury issues for Labour, said: “It is all very well for the minister to say that we must get growth in the cities.
“But she’ll be all too well aware that the distribution of resources from central Government is to the disfavour particularly of our Northern cities in favour of Southern shire counties.
“Is she not greatly concerned that Northern cities are not only losing out on the devolution settlement which helps Wales and Scotland, but are in fact being disfavoured against the rest of England?”
Baroness Hanham said many Northern cities were involved in the cities programme, adding: “I know that consultation discussion is taking place with them on what is required for the future.”
The distribution of funding was done against the Government’s spending formula, she added.
She also said cities were engines of growth able to boost entire regions and the Government was working with local enterprise partnerships to that effect, while £2.4bn had been invested in the regional growth fund and low-tax enterprise zones set up across cities.
Her comments came after North East peer Joyce Quin, a former local MP, asked for reassurance that areas outside “city regions” would not be overlooked.
