Scotland may not be mad for Manchesterism – Daily Business Magazine

The new PM’s devolution plans could dilute the demand for independence, writes TERRY MURDEN

We’ll be hearing a lot about Manchesterism, the phenomenon that will turn Britain into a series of city states, each led by a cash-enhanced mayoral office that is able to get things done. It won’t mean forcing everyone to wear bucket hats and parka jackets, but it will aim to bring power to the people. The North is where it’s at in Burnham’s Britain and is where influence and prosperity will be tilted.

Manchester’s head boy and Prime Minister in waiting, goes further by expecting growth “in every postcode” – which includes the devolved nations – though questions are already being asked about whether such an aspiration is more idealism than a pragmatic programme for government.

Andy Burnham has given himself ten years to prove that it can be achieved and it would be churlish to dispute what has been achieved in the northwest of England. Manchester has grown its economy, turned its universities into European leaders and, arguably, stolen second city status from Birmingham. It is a prosperous region with a progressive attitude that has won a host of admirers as well as investors and workers who want to be there.

Mr Burnham’s promise to repeat the trick in other parts of Britain will be overseen by his new No10 North office, telling the audience at his pre-Downing Street speech that it is part of the “biggest change in our lifetimes to the way the country is run”.  It may turn out to be a Department for the North and Regions with its own ministers.

His plan is bold and ambitious and embraces all corners of the kingdom. Indeed, it is in keeping with Anas Sarwar’s Scottish Labour manifesto, which demanded powers be devolved out of Holyrood and into towns and cities, with their own mayoral offices.

However, this promise of a devolution revolution is getting a frosty reception from the SNP. Its Westminster leader Dave Doogan was dismissive, saying the SNP has been calling for “meaningful devolution” for years and that there is “nothing of substance for Scotland in these proposals” that will fundamentally improve people’s lives.

He accused Mr Burnham of setting out Westminster’s “top-down, England-centric plans” without even involving the devolved governments of Scotland, Wales and Northern Ireland in the conversation. If Mr Burnham was serious about devolution then he should start by devolving the energy powers the Scottish Parliament has requested, he said.

As the SNP wants more powers, such a disapproving response may seem counter-intuitive. It wants more powers, but doesn’t like the look of them when they’re on offer. That’s because more devolution doesn’t help the SNP, it dilutes its ultimate goal. The SNP never really wanted devolution and has grudgingly tried to make it work while it awaits the bigger prize of independence.

In the meantime, while chalking up some successes, such as attracting foreign investment, it has not used its legislative powers to surge ahead. On many measures Scotland underperforms other parts of the UK.

There are obstacles and lessons here for Mr Burnham. First, that getting the SNP to go along with his plans may face some in-built resistance, if only for political reasons. Second, that more government does not necessarily translate into better government. Devolution has given Scotland an army of public officials, an apparatus that grows larger by the year, along with the cost of running it.

As Manchester has shown, success does not depend on the number of civil servants and government departments. It relies on the public and private sector, together with academia, working around shared goals, particularly a wealth agenda that helps provide better public services. It is a process that Holyrood has struggled to comprehend.

Who’ll be in Team Andy’s first Cabinet?

Andy Burnham told his Manchester gathering that nothing has been decided about his first Cabinet, but that doesn’t stop speculation around who will be in and out.

Louise Haigh, the former Transport Secretary and MP for Sheffield Heeley, is tipped for a top job. She’s been advising Mr Burnham on tax policies, including reform of capital gains.

The incoming PM could do worse than appoint his predecessor as Foreign Secretary, given Sir Keir has been able to perform the role he’s most suited to: a diplomat with a briefcase full of documents ready for signature. It’s not a ridiculous suggestion, After all, such a move was offered and accepted by David Cameron.

However, a new Cabinet role for Britain’s most famous son of a toolmaker appears to have been ruled out and Sir Keir will instead take a seat on the backbenches where he can sink quickly into anonymity.

His soon-to-be ex-next door neighbour, Rachel Reeves, was Britain’s first female chancellor but will also become the first in four decades to be demoted. Despite that dubious distinction she wasted no time declaring her support for Team Andy and is expected to remain in the Cabinet. Her weekend visit to Ukraine, meeting its minister of defence and British companies operating in the country, was an opportunity to remind Mr Burnham that she deserves to retain her place at the top table.

The defence portfolio is probably out of the question, given how she short-changed the military and prompted John Healey to resign. What about the Foreign Office? Yvette Cooper is tipped along with Ed Miliband, Shabana Mahmood and Wes Streeting for Ms Reeves’ job at the Treasury and the Foreign Office would offer the outgoing Chancellor an opportunity to rebuild her early promise while keeping well clear of domestic affairs that have been her undoing.

Apart from meeting Ukraine’s Defence Minister Mykhailo Fedorov at the weekend, there were handshakes with her counterparts at the Ukraine Recovery Conference in Gdansk where she held talks with Sergii Marchenko, Minister of Finance of Ukraine, Kristupas Vaitiek?nas the Minister of Finance for Lithuania and Andrzej Doma?ski, Minister of Finance and Economy of Poland. Maybe they’ll meet again when she will be wearing a new hat.

Terry Murden was Scotland Editor and Business Editor at The Sunday Times, Business Editor at The Scotsman, and Business and City Editor at Scotland on Sunday. He is now Editor of Daily Business

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