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It’s called the English Devolution Bill – but devolution it is not in our lopsided United Kingdom | Politics News

The United Kingdom is made up of four nations: Scotland, Wales, Northern Ireland and England, but they are not equal.

England alone accounts for more than 80% of the Union’s population, wealth and Members of Parliament.

Ensuring fairness between all the citizens in the UK is a permanent headache for any Westminster government.

Thanks to devolution brought in by the last Labour government, Scotland, Wales and Northern Ireland all have elected parliaments or assemblies of their own. England does not.

What is more, government spending per head of population is significantly and consistently higher outside England. In the years 2021/22 it was 18% more in Northern Ireland, 17% in Scotland and 13% in Wales.

This week [on Monday] the new Labour government is publishing the latest attempt to address the problem or, at least, to appease England’s sense of grievance. The English Devolution Bill was promised in July’s King’s Speech and now it is being published.

The word “devolution” implies that England will be getting some of what the other nations have got. That is not the case.

‘England not being offered devolution’

The government does not plan to enhance the collective identity of the English; instead, it wants to contain it by creating regional identities.

Devolution here means breaking down England by transferring some powers to some regional metro mayors and combined local councils.

In this bill “devolution” risks being a misnomer according to Colin Copus, emeritus professor of local politics at De Montfort University (DMU).

“England is not being offered devolution, rather decentralisation of tasks, functions, responsibilities and some budgets,” he explains in a paper for Leicester’s (DMU) Local Governance Research Centre.

“Devolution – the passing of primary legislative powers to another body – such as in Scotland and Wales – is not on offer to England. In the absence of an English parliament, England will remain at the back of the pack in the devolution stakes,” he says.

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28 Sept: King marks 25 years of Scottish devolution

The bill is more a reorganisation of local government and councils rather than a significant transfer of power from the centre.

There will be no additional funds nor will revenue-raising powers be devolved, at this stage. Local administrations in the areas included in the plan will however be able to choose how they spend resources from a “single pot” of money, rather than having to follow specific directives from Westminster.

It is estimated that about 60% of England will be covered by the new arrangements, with an aspiration of some 85% by the next election.

The government points out that areas which already enjoy devolved powers, such as London and Greater Manchester, enjoy greater economic growth than those outside the system.

There are already 12 areas with a “devolution deal” including London, Manchester, West Midlands, Tees Valley and the North East.

Plans are in the pipeline for metro mayors in Hull and East Yorkshire, with further provisional agreements possible, mostly without mayors, in Suffolk, Norfolk, Lancashire, Devon & Torbay, Cornwall and Buckinghamshire.

CARDIFF, UNITED KINGDOM - MAY 05: "nA general view of the Pierhead Building, Wales Millennium Centre (WMC) and the Senedd, home of the Welsh National Assembly at Cardiff Bay on May 5, 2018 in Cardiff, United Kingdom. (Photo by Matthew Horwood/Getty Images)
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General view of the Pierhead Building, Wales Millennium Centre and the Senedd, home of the Welsh National Assembly at Cardiff Bay

Council of Nations and Regions

The government proposes that the metro mayors and combined authorities will be part of a “Council of the Nations and Regions”.

The local government minister Jim McMahon has declared that it is “not acceptable” not to have a mayor. Those areas without one may miss out.

This includes some of the most struggling parts of the country, including Leicester, Portsmouth and Stoke-on-Trent.

According to the Institute for Fiscal Studies poorer areas are losing out already “with councils in the most deprived fifth of areas in England receiving a share of funding that is 10% below updated assessments of their share of needs, while the least deprived receive a share that is 13% higher”.

Launching the English Devolution proposals Deputy Prime Minister Angela Rayner promised: “For too long, Westminster government has tightly gripped control and held back opportunities and potential for towns, cities, and villages across the country”.

Professor Copus disagrees: “Let’s be clear, devolution for England is not about the centre’s conversion to powerful local government – rather it is about how local government can contribute to the centre’s priority of economic growth and development.”

The related planning reforms announced by Rayner last week do indeed suggest that decision-making will be streamlined, bypassing local objections and some council decision-making. This may be necessary to achieve the house-building targets nationally but it cannot be classed as “devolution”.

Local government is complex in England. Some areas may already have three tiers, from parish and district councils upward.

Power-sharing has been frozen since 2022
Image:
Stormont, Northern Ireland

Local government not one of Starmer’s protected spending areas

The government plans to abolish dozens of councils by establishing unitary authorities. This should save the Treasury some £3bn. Local government is not one of Sir Keir Starmer’s protected spending areas.

Austerity also means that there is less money to go around anyway.

Overall allocations to local government in England, most of which is provided by the Treasury, has been cut by 19% in real terms since 2010.

Major councils. including Birmingham and Nottingham, have been forced into special measures after going bust. The central government has no plans to look again at the main “local” taxes, business rates and council tax.

While the English face cuts following Rachel Reeves budget in October, the SNP’s Budget for Scotland announced this month was a giveaway.

More money for health and social care, social security, roads, prisons, education and skills.

At PMQs, Starmer was taunted by an SNP MP, that in Scotland there is no two-child benefit cap or abolition of the winter fuel allowance. University tuition fees and means-tested social care are covered as well.

In-built bias against England

This is all because of the 50-year-old Barnett formula, established to determine how much the other nations should get from central government.

The flags outside the Scottish Parliament at Holyrood, Edinburgh, fly at half mast following the death of Alex Salmond. The former Scotland first minister and current Alba Party leader died aged 69 on Saturday October 12, 2024. Picture date: Sunday October 13, 2024.
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Flags outside the Scottish Parliament at Holyrood

It has an in-built bias against England and is slow to take account of population shifts. Scotland’s population is shrinking while England’s grows.

For obvious political reasons, the English Devolution Bill does not go anywhere near this discrepancy. The extra money could be seen as an insurance against a break-up of the UK. No Westminster government wants to reopen Barnett.

Labour is locked into an existential fight with the Scottish nationalists.

Besides, plans for an English parliament have proved unworkable in a UK parliament designed to serve the United Kingdom. David Cameron introduced “EVEL” – English votes for English Laws by MPs from English constituencies only – but Boris Johnson got rid of it.

An attempt by a previous Labour deputy prime minister to divide England up into regions also failed after a referendum in the North East rejected the late John Prescott’s plans for regional parliaments. The Brexit mastermind, Dominic Cummings, cut his political teeth campaigning against the idea.

The English Devolution white paper may clarify lines of command from the centre to parts of England. Devolution it is not. For better or worse it will not attempt to answer the England question in our lopsided United Kingdom.

UK pension scheme called ‘deeply irresponsible’ for investing in Bitcoin | Money News

A UK pension scheme has been branded “deeply irresponsible” after investing in Bitcoin.

The unnamed defined-benefit scheme became the first in the UK to make the plunge, using 3% of its assets to buy into the cryptocurrency last month.

Pension specialist Cartwright acted as an adviser to the scheme and said the allocation was a “strategic move that not only offers diversification but also taps into an asset class with a unique asymmetric risk-return profile”.

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It claimed its approach meant the scheme could benefit from a significant potential bonus while limiting the possible negative outcomes.

But some experts seem less enthusiastic about the decision, warning it bordered on “gambling with retirees’ futures”.

“This is a very strange decision. Pension funds should surely be investing for the long term rather than speculating over the short-term,” Colin Low, managing director at Kingsfleet, told Newspage.

“It is ironic that a pension fund, having one of the longest investment time horizons, should speculate its beneficiaries’ assets on something that has no intrinsic value.”

Daniel Wiltshire, actuary at Wiltshire Wealth, added: “This is deeply irresponsible. Pension trustees have an obligation to ensure scheme assets are managed prudently.

“This precludes taking punts on a basketcase asset class like crypto. For the sake of the members, I hope the regulator is paying attention.”

Why are people so concerned?

Bitcoin is the largest and oldest cryptocurrency, although other assets like ethereum, tether and dogecoin have also gained popularity over the years.

Some investors see cryptocurrency as a “digital alternative” to traditional money – but it is very volatile, with its price reliant on larger market conditions.

Pension scheme trustees tend to be against taking big risks with retirees’ funds.

Advice from the Financial Conduct Authority states “you should never invest money into crypto that you can’t afford to lose” and warns people to be prepared to lose all their money.

And, while a 3% allocation doesn’t sound like a lot, it’s enough to make an impact on the pension fund’s performance.

This means that if Bitcoin continues to skyrocket, it could boost the scheme in a big way, but equally if it sinks, it could have a significant negative impact.

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As a defined pension scheme, it does mean the risk is being taken by the employer should there not be enough assets to meet future pension payments, rather than being borne by members.

Laith Khalaf, head of investment analysis at AJ Bell, says plenty of people have bought crypto personally, but it’s harder to make the case for investing in it to diversify a pension portfolio.

“While the price of Bitcoin is currently riding high, in the past we’ve seen strong performance quickly giving way to dramatic price falls. That in itself is a big hindrance to Bitcoin being adopted by consumers and businesses as a means of exchange,” he says.

“If you think Bitcoin is the future of currency despite its volatility, ask yourself if you’d be willing to be paid by your employer or billed by your mortgage provider in the cryptocurrency.

“It’s possible Bitcoin will thrive and prove its doubters wrong, but it’s also possible it will ultimately become worthless.”

Just last week, it hit a record high above $£99,000 – but less than two years before that it dropped below $17,000 following the collapse of crypto exchange FTX.

Some experts believe the potential pay-off means an investment in Bitcoin is a risk worth taking.

Chris Barry, a director of Thomas Legal, says that anything less than a 5% allocation is “sensible”, and UK pension funds need to catch up to their US equivalents who have been investing in crypto for years.

“Bitcoin is the top performing asset class over the past 10 years on average, even beating the NASDAQ. The direction of travel following Trump winning the US election is very bullish indeed,” he adds.

David Belle, founder and trader at Fink Money, has a similar view, saying a pension scheme portfolio is about numbers trying to deliver a return.

“A portfolio is just numbers made up of different betas, assets which either outperform or underperform a benchmark. Crypto is a fine asset class if it fits risk appetite.”

Sir Keir Starmer should have called out ‘racism’ of rioters earlier, says Thangam Debbonaire | Politics News

Sir Keir Starmer should have labelled the recent riots in England “racist” earlier than he did, Thangam Debbonaire has said.

The former Bristol Central MP said she was “distraught” to see the riots unfold across the UK at the start of this month.

Ms Debbonaire, who was shadow culture secretary in Sir Keir’s shadow cabinet before the election was called, said as a “mixed race woman” she wanted people to “name these riots as race riots”.

Speaking on Beth Rigby’s Electoral Dysfunction podcast, Ms Debbonaire said: “It felt like a different time had come back, and I wanted people to name these riots as race riots. They weren’t anti-immigration riots. They were racist riots by racists.”

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Far-right violence broke out in towns and cities across the UK in the wake of a stabbing attack that left three girls dead in Southport on Monday 29 July.

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False rumours were circulated online claiming the suspect was an asylum seeker who arrived in the UK by boat.

As the riots gained pace, Sir Keir labelled them “far right” while denouncing the “gang of thugs” who were taking part in the disorder.

In a TV address he said: “People in this country have a right to be safe, and yet we’ve seen Muslim communities targeted, attacks on mosques… Other minority communities singled out, Nazi salutes in the street, attacks on the police, wanton violence alongside racist rhetoric, so no, I won’t shy away from calling it what it is: far-right thuggery.”

Ms Debbonaire, who lost her seat to the Green Party after representing it in parliament since 2015, said while she understood why politicians had chosen to brand those involved as “thugs”, she did not agree with the label because it let people “off the hook”.

“One of the things that was troubling was the the label,” she said.

“I understand why it was chosen to call them mindless thugs, but I don’t think it’s helpful because it wasn’t mindless. People make choices.

“For me, I’m afraid to say – and I say this with respect to my colleagues who are using that language, I get where they are – but it lets them off the hook.”

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How a week of unrest unfolded

Put to her that this was the language used by the prime minister, Ms Debbonaire replied: “And I disagree with it. I understand why he used it.

“I think taking a law and order approach was right. I think he’s absolutely right. But I think two things can be true at the same time: take a law and order approach, but also name racism as racism because otherwise we’re treating a whole bundle of people who are not racist, but who do want to discuss migration in the same boat.”

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Describing the impact the riots had on her personally, Ms Debbonaire said that although she was in India at the time she still felt “scared”.

“I was so relieved to be in India and amongst brown people, and I was texting a lot of friends and the pain and fear of just seeing a group of angry white men very obviously targeting brown people because they are brown,” she said.

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“It is visceral… It’s also visceral how it makes you feel when white allies of yours you feel haven’t quite got it yet.”

She added: “I can’t get up in the morning and cry because there are racists, but seeing that was scary.

“And yes, I wanted him [Sir Keir] to say earlier, I really did.

“I wanted my prime minister to recognise what it was doing to us brown people who are patriots and who believe in law and order and believe in this country.”

To date, more than 1,000 arrests have been made in connection with the unrest, according to The National Police Chiefs’ Council. A total of 372 adults have been charged.

Grimethorpe: Bomb squad called and more than 100 homes evacuated after ‘suspicious items’ found | UK News

More than 100 homes were evacuated as an army bomb disposal team was deployed to the area after “a number of suspicious items” were found at a property.

South Yorkshire Police said earlier on Wednesday that a 100m cordon had been put in place around a property in Grimethorpe, Barnsley, after police executed a warrant on Brierley Road and “a number of suspicious items” were found.

Residents of 130 homes were evacuated. On Wednesday evening the cordon was reduced to 60m and those outside it could return to their homes.

The cordon has now been reduced further to cover only three homes.

Local residents who were originally evacuated are being advised that they can now go back safely to their homes. All roads in the area have now been reopened but a police presence will remain in the area overnight.

A 57-year-old woman and a 58-year-old man have been arrested on suspicion of offences under the Firearms Act and remain in custody.

A large number of emergency services personnel and vehicles were still in the village on Wednesday, including a Royal Logistics Corps bomb disposal truck, which had a robot vehicle positioned next to it.

People said the police activity was focused on a nearby disused church building and adjoining house, which has been in the process of being renovated for a number of years.

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Chelsey Woollard, who lives just outside the cordon, said: “Never in Grimethorpe. Even from being a young child.

“It was a beautiful village and this has come as a shock – not just to me but the whole village as well.”

Ms Woollard said she is a carer for her father and panicked as she tried to work out how to get to his home on the other side of the cordon.

“It was a big shocker,” she said. “There was a lot of ambulances, fire brigade, up and down the road all day.”

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Barnsley Council has opened a rest centre at St Luke’s Church for households with nowhere else to go, as its leader, Sir Steve Houghton, said: “I urge local people to follow the advice from the police and keep them and their families safe.”

Assistant Chief Constable David Hartley said: “Our heartfelt thanks go to the local residents of Grimethorpe for their continuing cooperation and patience as we carry out our work.

“We know this has caused disruption to people’s daily lives and appreciate your understanding that public safety must come first. We will continue to update you as we have more information to share.”

Homes evacuated after bomb squad called in to investigate ‘suspicious item’ in Cumbria | UK News

Homes have been evacuated as a bomb disposal squad investigates a “suspicious item” found in a house in north-west England.

Cumbria Police declared a “major incident” after they discovered the item on Wednesday afternoon following concerns for the welfare of an individual in Steel Street, Ulverston.

A 46-year-old man was arrested and is being held in custody.

A number of residents were told to leave their homes, a 100 metre cordon was put in place and an Explosive Ordnance Disposal team was called to assess a “potential electrical issue”.

Chief Superintendent Mick Bird said: “A major incident has been declared to coordinate the activity of numerous agencies in providing a comprehensive response to support residents who have been evacuated from their homes this evening.

“An Explosive Ordnance Disposal team is ongoing with their assessment, which may last a number of hours.

“The priority of this response is to ensure the safety of all residents. As soon as it is deemed safe to do so, residents will be allowed to return to their homes.

“I would like to thank once again those impacted by this evacuation for their continued patience.”

Westmorland & Furness Council has opened a reception centre at Ulverston Leisure Centre for those who have been evacuated and require accommodation.

Search called off for crew members missing after British cargo ship sank off coast of Germany | UK News

A search for four people missing after two ships crashed off the coast of Germany has been called off.

British-flagged cargo ship Verity sunk after it hit another boat – the Polesie – at around 5am on Tuesday, about 14 miles southwest of the island of Heligoland, in the North Sea.

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Cargo ships collide

Seven people were aboard Verity at the time. One person died and two were rescued and taken to hospital, where they remain.

Shortly afterward the collision a signal from the Verity was lost.

Rescue ships and aircraft involved in the search were unable to find the four missing crew members on Tuesday.

Divers sent down to the wreck of the Verity to check for any signs of life were unable to find anything.

FILE - The freighter "Verity" is seen off Kiel in Germany, Oct. 5, 2014
Pic:AP
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The British-flagged freighter Verity pictured in 2014. Pic: AP

Officials said the water temperature at the time of the collision was about 12C (54F), which experience has shown people can survive for about 20 hours.

Germany’s Central Command for Maritime Emergencies said the entire sea area where the missing sailors might be was searched again during the night without results, and rescuers then stopped the search.

The Isle of Man Ship Registry said on Friday it was “saddened to confirm that the German Maritime Rescue Coordination Centre have called off their search and rescue operations and despite the best efforts of all involved, four crew members remain unaccounted for”.

“The Ship Registry’s thoughts are with the seafarers that sailed on board the Verity, their families, friends and loved ones,” it said.

It thanked all of those involved in the search and rescue efforts over the past days.

“The team will continue to work with the relevant authorities in the ongoing investigations being conducted by the UK’s Marine Accident Investigation Branch (MAIB),” it added.

Bahamas-flagged freighter Polesie is pictured following its collision with British-flagged vessel Verity
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The Bahamas-flagged freighter Polesie following Tuesday’s collision

Verity was headed from Bremen for the UK port of Immingham when the vessels collided.

The larger cargo ship involved in the collision – the Bahamas-flagged Polesie, which had 22 people on board – stayed afloat and was able to reach the German port of Cuxhaven.

The cause of the collision is still unknown.

Johnny Mercer called ‘twit’ for comparing 25-year-old MP to The Inbetweeners | Politics News

Veterans Minister Johnny Mercer has been criticised after comparing a new 25-year-old MP to The Inbetweeners.

Mr Mercer referenced the show – which Channel 4 describes as “an adolescent comedy about lads behaving sadly” – in an interview with Sky News after Labour’s Keir Mather won the seat of Selby and Ainsty from the Tories.

But he has faced a backlash, with Labour leader Sir Keir Starmer overheard calling the minister a “silly sod” who would “soon be history”.

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Mother of new Labour MP defends his age

Shadow Attorney General Emily Thornberry also described Mr Mercer as a “twit”, telling Sky News the remark was “ridiculous” and if voters wanted to give him a chance, “what’s the matter with this guy?”.

She added: “You should have people representing this country from all backgrounds, all walks of life and, frankly, every generation.

“There is great intergenerational injustice in this country. Youngsters are having a really hard time and they need to have a good strong voice.”

Mr Mather will become the youngest MP in the Commons – nicknamed “the baby of the House” – when he enters parliament after the summer recess.

His historic win in North Yorkshire saw Labour overturn a majority of 20,137 – the largest majority ever reversed at a by-election.

Before being elected, he worked as a senior public affairs adviser for the Confederation of British Industry and before that, he was a parliamentary researcher for shadow health secretary Wes Streeting.

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Asked by Sky News’ deputy political editor Sam Coates this morning whether he welcomed “an injection of youth into parliament”, Mr Mercer replied: “I think it’s always good to get new people in politics, but I think we mustn’t become a repeat of The Inbetweeners.”

The Inbetweeners was a Channel 4 comedy about four socially awkward teenage boys during their time in sixth form.

Asked what he meant by the comparison, Mr Mercer said: “You’ve got to have people who have actually done stuff. This guy has been at Oxford University more than he’s been in a job.

“You put a chip in him there and he just relays Labour lines, and the problem is people have kind of had enough of that.”

Sitting beside him in the Sky News election studio, Labour’s Baroness Chapman accused Mr Mercer of being “disrespectful” to the people of Selby and Ainsty, adding: “There is such a thing as being gracious in defeat, Johnny.”

Mr Mather’s mother, Jill Tambarros, also defended her son after his significant victory, telling Sky News he had “seen something of life” and had numerous jobs.