Cost of GLA highlighted

Taxpayers misled over devolution costs, claim Conservatives

Taxpayers misled over devolution costs, claim Conservatives

The Conservatives have accused the Labour government of misleading the public over the true costs of devolution to the taxpayer.

Figures compiled by the Conservatives show the real costs of assemblies in London, Scotland and Wales could be as much as ten times higher than Labour had promised, their local government spokesman claimed.

Aside from the much quoted explosion in costs of the Scottish Parliament, the Conservatives highlight that the Greater London Authority was to cost around £20 million a year, according to the then-DETR, but was now costing £60 million and that the Welsh Assembly and Office were supposed to cost £92 million a year to run, but in 2002-03 cost £177 million.

Shadow Local Government Minister Bernard Jenkins attacked Labour’s plans for regional assemblies, saying they would cost £360 million a year to run if introduced nationwide. On top of that, re-organising local government in all 34 counties would cost between £1 billion and £3.5 billion he claimed.

The Conservatives’ document also detailed how the cost of running the Government Offices for the Regions was £124 million – nearly a 50 per cent increase on the £86 million spent in 1997-98.

Mr Jenkins said: “Regional government is fat government. The Labour Party has tried to deceive [the public].”

On the regional assemblies vote, he said: “I can’t believe that people will really vote for an extra £35 million a year for extra politicians rather than for … extra police on the street.”

Two of the autumn referendums on regional assemblies have been postponed pending a report from the Electoral Commission, with the North East poll to go ahead as scheduled.

Mr Jenkins pledged that if the Conservatives won the next election, they would look at “slimming down” the GLA. He questioned the future of the Welsh Assembly and whether it would continue to be supported by the public, but said that any decision on its future would have to go to a referendum.

He added that in Scotland, however, the devolved assembly was “here to stay”.

Mr Jenkins said Labour’s policies would actually “steal” power away from the regions, as it meant Westminster parties choosing “stooge candidates” to run regional assemblies. In contrast, the Conservatives would give the regions a greater voice by strengthening local government.

He said the cost of introducing regional assemblies across the whole of Britain would be £360 million, based on the per person cost of the GLA of £8.41, and that people in the regions would end up paying.

“Ultimately, taxpayers will foot the bill for the regional assembly, via the levying of its regional council tax – like in London.”

Mr Jenkins also cited research by Cambridge University academic Michael Chisholm, who found that imposing unitary local government would cost £110 per person in transition costs, although there would be savings in unitary councils.

The estimated costs of reorganising local government for all 34 counties in England would be £1 billion if they were replaced with unitary counties, rising to £3.5 billion if they were replaced by five unitaries per county.

48 MPs have currently signed an Early Day Motion tabled by Mr Jenkins which calls on the Government to provide “a factual, not fictional, projected cost of regional assemblies to electors in regions facing a referendum.”