
Do you agree with Lord Michael Heseltine’s view that ?big government does not work?? In his independent report, “No Stone Unturned in Pursuit of Growth“, released last Thursday, Heseltine suggested a radical long-term structural change to the way Britain does business, a comprehensive economic plan that makes a strong case for the devolution of the central government to local bodies.
The former deputy prime minister put forward 89 recommendations which aim to inject stability into the economy, create the conditions for growth and maximise the performance of the UK. At the heart of the proposals are measures to unleash the potential of local economies and leaders and enable every part of the UK economy to raise its game. ?We should not look at SMEs, or mid-sized business, or large business in isolation. They are closely interconnected,” says Lord Helestine in his findings. The major rebalance will move responsibilities concerning Britain’s economic development away from Whitehall and allow local governments to focus on the specific needs of their community. ?Our ability to create wealth has suffered. Each day more and more of the leading economies are enhancing their skills, adding to their strengths and grasping larger shares of the world?s wealth. We need to strain every sinew to get back up there with the world?s best.” Heseltine urged the government to build on what it is already doing, but ?shrink, simplify and improve on his recommendations. The recommendations to drive industry include :- A National Growth Council, chaired by the prime minister, containing secretaries of state and outside experts. A means of setting out a new growth strategies and approving plans from government departments;
- All Whitehall departments make a commitment to play their role in support of the national growth strategy, including how it will work with its key sectors;
- Local Enterprise Partnerships (LEPs) to develop their own tailored local economic plans. From 2015-16 they would compete for a share of a single national pot to support growth over a five year period. Under the current spending review this would account for ?49bn of central public spending on skills, local infrastructure, employment support, housing, business support services and innovation. This would be supplemented by the current approximate ?9bn of European common strategic framework funds; and
- Departmental non-executives to be given an enhanced role in departments while a cross-government management information system should be put in place in the same way local services need private sector input into decision making to ensure consistent growth, the government will receive similar reviews.?
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