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Tory proposal for US-style mayors Tory proposal for US-style mayors
(about 6 hours later)
English cities should have elected mayors with power over transport, fire services, welfare and direct oversight of the police, a Tory taskforce says. English cities need powerful elected leaders with the ability to raise cash on the open market by issuing bonds, the Tories say in a new report.
Headed by former environment secretary Lord Heseltine, the Cities Taskforce sets out plans to transform cities and could shape party policy. Lord Heseltine called for a "massive transfer of power" to local government.
He said having mayors, accountable to councillors and voters, would ensure clear leadership and accountability. He said control of the £11bn the government spends each year on regeneration should be handed from unelected "quangos" to elected leaders.
The group is one of several suggesting proposals to Tory leader David Cameron. Lord Heseltine was asked to draw up policy ideas on inner city regeneration by Tory leader David Cameron.
Lord Heseltine said no-one was in charge when it came to regeneration funds. His full Cities Taskforce report will be published later this year.
He said because there were more than 50 different funding streams for regeneration, no-one was in charge, leading to inertia and inactivity. But in his interim findings he calls for directly elected leaders to have powers over transport, fire services and welfare, as well as direct oversight of the police.
His recommendations include transferring power from "quangocrats to democrats". Referendum rejections
'Radical proposals' Elected mayors were a key plank of Labour's plans to shake-up local democracy but take-up has been patchy.
The funding and powers of what he calls "government puppets", such as regional development agencies, learning and skills councils and regional assemblies, should be transferred to local city government. If you really want powerful local communities you have got to let them have power and let them make decisions Lord Heseltine
Taskforce chairman Lord Heseltine said: "These radical proposals build on the hard experience of the 1980s and 90s and meet many of the criticisms made of present government policy by their own advisors. Twelve areas voted for mayors in referendums but 22 others - including Tony Blair's Sedgefield constituency - rejected them.
"I hope they will commend themselves to a future Conservative government. I believe they could herald a broad renaissance on English city governance." The Conservatives - who initially opposed the idea of a Greater London Assembly - now plan to give all Londoners a say in choosing their candidate for next year's London mayoral election by holding US-style primaries.
The party has been trying to find a high-profile contender to take on Labour incumbent Ken Livingstone and recently failed to persuade former BBC Director General Greg Dyke to become its candidate.
Low turnouts
Asked whether there was an appetite for more powerful local leaders, Lord Heseltine told BBC Radio 4's Today programme: "One of the reasons why people don't want to stand in the present circumstances is local government doesn't have the power.
"It's totally suffocated by ring-fenced grants and by the central government machine. If you really want powerful local communities you have got to let them have power and let them make decisions."
He said he would not recommend a referendum on the issue, as turnouts were often very low and the issues misleading, he said an opposition party could put forward to the people "as a mandate in a general election".
Fund-raising powers
But he said over the years local government had been "hollowed out" - with power handed to "quangos" answerable to central government.
He told the BBC it was now impossible to rebuild English cities and urban areas from local government in its current form.
Because there were more than 50 different funding streams for regeneration, no-one was in overall charge, he added.
The funding and powers of what he calls "government puppets", such as regional development agencies, learning and skills councils and regional assemblies, should be transferred to local city governments, he argued.
Bonds
He also wants city governments to have the power to issue bonds and raise money on the open market, which he said should not count within public expenditure.
Ken Livingstone wanted to issue bonds to fund improvements to London underground but was overruled by Chancellor Gordon Brown who favoured a public private partnership deal.
Lord Heseltine said his proposals could herald a "broad renaissance" in local government in England.
He first suggested creating US-style mayors in the late 1980s, following his resignation from Margaret Thatcher's government.He first suggested creating US-style mayors in the late 1980s, following his resignation from Margaret Thatcher's government.
BBC political correspondent Sean Curran said that it was, however, Labour, that unpicked the traditional structure of local government which for more than 100 years had relied on a system of councils and committees.
Labour ministers introduced directly-elected mayors and town hall cabinets.
Lord Heseltine now wants to go much further and is calling for powerful city government and US-style mayors.
The plans are not official Conservative policy but local government and businesses will now be consulted over the recommendations.The plans are not official Conservative policy but local government and businesses will now be consulted over the recommendations.