The Northern Powerhouse must Not become the Northern Poorhouse
As Liberal Democrats we a strong believers in devolution. The genuine relocation of decision making, together with the resources required to implement those decisions, to the geographic area where the benefits will be experienced is good for democracy, the economy and social cohesion. So we gave a cautious welcome to the creation in 2017 of a Tees Valley "city region" with an elected mayor.
From the start there have been big issues with the devolution package handed out by the Conservative government; not enough money (small sums provided while cutting back heavily on Local government funding), not enough devolution, in short not enough power. There have also been questions about scrutiny (there are enough issues with Labour being a one party state across much of the Tees Valley already) and whether a mayoralty is the right model for our area. But overall the LibDem position is that some devolution is better than none and that (as Scotland has proved) once power starts to be delegated then in the long run more powers will flow.
The referendum result brings with it many worries for the North East and Teesside:
An analysis by the Joseph Rowntree Foundation indicates we could lose billions in EU funding across Teesside over the coming years. Brexiteers promised that these funds would be made available from the £350m they pretended were sent to the EU every week. They also said they would spend this money on the NHS and then, after winning the referendum, finally admitted the figures were untrue. In any event, the economy only has to fall by 0.6% for government finance to be lowered by more than the savings on EU payments and early indications are much worse than that.
As a major centre of UK manufacturing, investment in the North East for local employers such as Nissan, Hitachi and Nifco is threatened by economic uncertainty and the possibility we will not get full access to the single market. While the fall in the pound will help exports the possibility of recession will threaten jobs and prosperity
George Osbourne, the architect of the Northern Powerhouse, has been ousted from the cabinet. Philip Hammond, his replacement, has been reported as criticising his predecessor for both his lack of action on the deficit and the "almost gross inequality of incomes" across Britain. These are two opposing forces and only time will tell if Hammond will give the North the resources it needs for real growth. At the same time local MP, James Wharton, the former Minister for the Northern Powerhouse has been transferred to another government department. I have argued with Wharton over virtually every area of economic and social policy, but I did believe having a Teesside MP as Minister for the Northern Powerhouse would be a good thing. His replacement, with Yorkshire MP Andrew Percy, has raised concerns about whether the new government under Theresa May is as committed to the Powerhouse as David Cameron's.
If the referendum has demonstrated anything it is that a large part of society is disaffected with the Westminster elite. Nowhere is this more true than in Teesside. The Liberal Democrats did not coin the phrase the "Northern Powerhouse" but we will not allow the referendum result and new Prime Minister without a mandate, Theresa May, to turn it into a Northern Poorhouse. We need to hold the government to account on the transfer of powers, on funding and on business investment and jobs. Above all we need to use the power of the ballot box to try and save the UK from Brexit and ensure prosperity for our region. #wearethe48