Mayors to score wins in the budget after PM intervenes – but fears remain over councils facing bankruptcy
Mayors are set to be one of the big winners in the budget after Sir Keir Starmer personally intervened to ensure they have more freedom to spend cash and boost growth, Sky News understands.
England’s dozen metro mayors have been working together to push the prime minister, Rachel Reeves and Angela Rayner for more powers and cash after years of frustration at the way the Treasury allocates money for projects and salaries.
But there is deep concern that Ms Reeves, the chancellor, may only allocate money to some key areas but not others.
There is agreement among all the mayors who spoke to Sky News that the squeeze on local government budgets – which metro mayors work alongside – will cause further councils to go bankrupt and hamper their ability to regenerate their local regions.
In the budget on Wednesday mayors believe they will get:
- A so-called “single pot” of money allowing them much greater freedom to allocate funds where they deem most necessary;
- Greater flexibility to raise local taxes. In Liverpool City Region, metro mayor Steve Rotherham is pushing a “tourist tax” of £1 per night on the city’s hotels to fund local tourist projects. There are hopes among some mayors they will get more flexibility in the way they can spend locally raised taxes, known as precepts;
- Multi-year budget settlements to allow for longer-term planning.
- The mayors are pushing for more powers in a range of areas from transport, where they are hopeful of some success, to skills, where they see the Department for Education reluctant to release their grip.
Sky News understands that Sir Keir has repeatedly said in meetings that he believes metro mayors, who have planning powers and work with clusters of local authorities, must be put at the heart of the push for growth across England.
‘Massively frustrating’ Treasury
Mayor of Teesside Ben Houchen. Pic: PA
Liverpool City Mayor Mr Rotherham told Sky News that he has been told that mayors “can become the delivery arm of national government” across a whole range of projects, including retrofitting homes, improving transport and productivity and skills.
However, several mayors who spoke to Sky News sounded a warning that they need to break free from the Treasury’s way of deciding what should get funded if growth is as big a priority as the government says.
Liverpool City Mayor Steve Rotherham. Pic: PA
Mr Rotherham said the Treasury has been “massively frustrating to date” and “we are pushing to see changes.”
He called for urgent reform to the Treasury manual for evaluating the value for money of big projects – known as the Treasury Green Book.
He claimed that this way of measuring value is biased against more long-term projects, making true reform impossible.
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Sam Coates looks ahead to Westminster’s oddest budget tradition
Councils ‘on the brink of bankruptcy’
Meanwhile, Ben Houchen, the Conservative mayor of Teesside, said: “The Treasury is a very difficult department to deal with.
“The officials, I think, have a very narrow view – they know the cost of everything and the value of nothing.”
He warned the chancellor that if, as expected, she announces lots of big infrastructure and growth projects on Wednesday but also squeezes on the day-to-day running costs of government, then the initiatives unveiled next week may never happen.
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“If you allocate money for big projects like train stations or roads, or whatever it might be, big infrastructure – that’s one thing,” he said.
“But to deliver that, you’ve got to have the day-to-day spending to employ people, get through planning – all of that stuff in the background that takes money, revenue, day-to-day spending.
“So allocating a big cheque is one thing. That doesn’t necessarily mean that we’re going to see those projects come into fruition if the money isn’t there to develop those projects in the first place.”
Earlier this month Sir Keir Starmer met Tees Valley Mayor Mr Houchen (second right) and other regional leaders during the inaugural Council of the Nations and Regions in Edinburgh. Pic: PA
Mr Houchen said local councils in the Tees Valley were in a bad financial situation.
“You’ve got local councils, which is what most people interact with on a daily basis, in a very difficult situation.
“The quality and experience of the staff aren’t there. Money is extremely tight.
“Things like adult and children social services in Tees Valley for instance usually accounts for about 80% of a council’s entire budget, just on adult and children’s social services. So it’s in a very difficult state. I’m acutely aware, not just across the Tees Valley but across the country, there are lots of councils on the brink of bankruptcy.
“You’ve seen a couple of those already under the previous government. Without more revenue funding and funding for the types of departments like local government, that’s not going to change that outcome, and we could still see loads of capital spending, but we could still see governments going bust, services not improving and actually continuing to deteriorate.”
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If councils fail, communities ‘fall over’
Richard Parker, the new Labour mayor of the West Midlands, also agreed funding was squeezed for councils.
“Birmingham has lost £1bn worth of funding over the last 10 years… that’s been taken out of some of the poorest and most vulnerable communities, and it’s made those communities even more vulnerable.
“And I can’t afford our councils to fail because if our councils fail, the communities they support fall over.
“So I understand the criticality of the situation.
“I’m hoping the government will start, as they’ve been saying, to make longer plans for funding for local government, so they get an opportunity to plan ahead and plan for the future rather than working to short-term budgetary cycles of a year.”
Sir Keir also met regional mayors, including West Midlands Mayor Richard Parker (left), in July. Pic: PA
Mr Parker made clear that getting more powers over skills – which some other mayors think unlikely at the moment – will be a key driver for growth.
Read more:
Analysis: Growing storm over rumoured budget tax rises
Analysis: Labour’s muddle with messaging
Are Starmer and Reeves on the same page with budget?
‘Too many people in low-paid jobs’
“I actually then need some revenue support, some more powers over particularly post-16 education,” he said.
“We’ve got around a quarter of the workforce in the West Midlands with low skills in those skills, which means that too many people in work are in low-paid jobs.
“And I’ve got twice as many young people out of work than the national average.
“So I’ve got to help these people get access to the skills they need to build careers here and get access to better-paid jobs and indeed the jobs that investors need to fill who are coming into this region.”
Education Secretary Bridget Phillipson, deputy leader of Reform UK Richard Tice, former governor of the Bank of England Mervyn King, and director of the Institute for Fiscal Studies Paul Johnson will be on the Sunday Morning with Trevor Phillips show on Sky News from 8.30am this morning.
Lucy Letby suggested she could give “tips” to a colleague on how to get away with murder, a public inquiry has heard.
The child serial killer exchanged WhatsApp messages in 2017 with union rep Hayley Griffiths about the US legal drama How To Get Away With Murder.
The discussion took place a year after the neonatal nurse was moved to clerical duties at the Countess of Chester Hospital following concerns she may have been deliberately harming babies.
In a message to Letby, Ms Griffiths wrote: “I’m currently watching a programme called how to get away with murder. I’m learning some good tips.”
Letby replied: “I could have given you some tips x”
Ms Griffiths said: “I need someone to practice on to see if I can get away with it.”
Letby wrote: “I can think of two people you could practice on and will help you cover it up x”
Ms Griffiths replied: “Deal. I will get thinking of a plan. Get the cruise booked as our getaway.”
The pair were working in the hospital’s risk and patient safety department a year before Letby was arrested on suspicion of multiple murders by Cheshire Police.
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How the police caught Lucy Letby
Ms Griffiths said she was aware of the concerns of foul play and the connection to Letby by September 2016.
Shahram Sharghy, representing some of the families of Letby’s victims, asked: “Given the severity of the allegations that were made, and would you agree they are possibly the most serious allegations that anybody could make against a healthcare professional, were you making light of those allegations when you were referring to potentially committing a crime?”
Ms Griffiths answered: “No.”
Mr Sharghy asked: “Can you even begin to imagine and put yourself in the position of the families of the babies who were harmed when they see those messages?”
Ms Griffiths said: “I know… I am so remorseful. As soon as I saw them myself I was upset and I can’t begin to imagine… I can only apologise and say I have learned. I can’t go back in time but I have reflected absolutely on it.”
Read more from the inquiry:
‘Cold’ Lucy Letby failed final year student nurse placement
‘Breathing tubes dislodged’ during Letby shifts
Nurses who worked with Letby ‘were thinking the unthinkable’
Earlier, Ms Griffiths told counsel to the inquiry Rachel Langdale KC: “It was nothing more than a conversation. However, I truly and deeply regret having started that conservation… this is completely unprofessional, poor judgement on my behalf and completely insensitive. And for that, I can only apologise from the bottom of my heart.”
Letby, 34, from Hereford, is currently serving 15 whole-life orders.
She was convicted at Manchester Crown Court of murdering seven infants and attempting to murder six others between June 2015 and June 2016.
The Thirlwall Inquiry into the events surrounding her crimes is expected to sit until early 2015. The findings are expected by late autumn that year.
UK
Newcastle: Three men arrested in connection with deadly house explosion and on suspicion of cannabis production
Three men have been arrested in connection with a deadly house explosion in Newcastle.
Seven-year-old Archie York and Jason Laws, who was in his 30s, were killed following the blast in Violet Close, in the Benwell and Elswick area of the city in October.
Police said at the time that six others were taken to hospital “with varying injuries” after the blast and subsequent fire.
Three men – two in their 30s and one in his 50s – have been arrested on suspicion of two counts of manslaughter, and the production of a Class B drug, namely cannabis, Northumbria Police said.
They all remain in police custody.
Detective Chief Inspector Katie Smith said: “This has been a truly tragic incident which resulted in the loss of two lives.
“As a result of our ongoing enquiries, three men have today been arrested in connection with the explosion.
“Our investigation will remain ongoing as we seek to provide answers to what has happened.
“We would continue to ask people to avoid speculation surrounding this incident both online and in the community.”
Read more UK news:
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From October: Deadly blast destroys Newcastle house
The blast tore through a row of six properties divided into two flats each.
Drone footage showed how six flats in the middle of the building appeared to have been completely destroyed by the explosion and fire, while piles of debris could be seen in the street outside.
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Superintendent Darren Adams, from Northumbria Police, said on the day of the fire: “As a result of the incident in the early hours of this morning, a seven-year-old boy has sadly passed away.
“Despite the efforts of the emergency services, he tragically died at the scene.
“This is a truly devastating outcome.”
Prince William has given an update on the Princess of Wales’s health, describing her as “amazing”.
Ahead of tonight’s Earthshot Prize awards in Cape Town, he was asked how his wife Kate was doing and replied: “She’s doing really well thanks. Hopefully she’s watching tonight and cheering me on.
“She’s been amazing this whole year and I know she’ll be really keen to see tonight be a success.”
Kate revealed in March she was having preventative chemotherapy following the discovery of pre-cancerous cells.
In September, she announced she had completed her treatment and said her focus now is on “staying cancer free”.
Throughout the year, Prince William hasn’t discussed his wife’s diagnosis, despite still continuing with his own public duties.
William and Kate at a community engagement last month. Pic: Andrew Parsons/Kensington Palace
William answered questions after taking part in rehearsals for tonight’s Earthshot Awards, the environmental prize he launched in 2021 to try to inject some optimism into the climate crisis debate.
Since he’s been in Cape Town he’s been spotted wearing a bracelet with the word ‘papa’ on it, given to him by his daughter Princess Charlotte.
He explained: “This is a relic from a Taylor Swift concert that my daughter decided that she wanted to create a bracelet for, and she gave it to me when I came away so I’ve promised her that I’d wear it and try not to lose it while I was out here.”
He also shared how he’s trying to make sure his three children feel involved in his environmental work, including doing things around the house.
The Prince of Wales in Cape Town today. Pic: PA
The prince said: “Every family tries to do what they can to help with the environment and we go through the basics of recycling and making sure we minimise water use, turning lights off when you leave the house. We’re sensible with what we do around the environment. I think every family has those conversations.
“The Earthshot is trying to be more global than that – we’re trying to do big-scale ambition and business. I’ve brought the children along on that journey and I hope they’re proud of what we are trying to do here which is to galvanise that energy and enthusiasm to make real impact.”
Read more:
William’s ‘milestone’ moment in South Africa
Kate hugs teen with rare form of cancer
Keep up with all the latest news from the UK and around the world by following Sky News
Asked about the tough political climate for the environment right now, Prince William didn’t make any comment about the US election result and Donald Trump’s climate credentials, but said: “Everyone wants some hope and some optimism and Earthshot comes with urgent optimism.
“And as you’ll see tonight the amount of youth from Africa who will be in here – they’ll be letting you know and letting everyone know that it matters to them.
“Without them, the future is looking pretty bleak so these are the game changers, the innovators, the inventors who are going to make the world a better place for us in future.”
The annual Earthshot Prize awards five entrepreneurs, innovators, startups or conservationists with £1m each to help scale their ideas to tackle some of the world’s most pressing environmental issues.
This is the fourth year the awards have been held.
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