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Tory proposals to shake-up cities Tory proposals to shake-up cities
(10 minutes later)
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.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.
Lord Heseltine called for a "massive transfer of power" to local government.Lord Heseltine called for a "massive transfer of power" to local government.
He said control of the £11bn the government spends each year on regeneration should be handed from unelected "quangos" to elected leaders.He said control of the £11bn the government spends each year on regeneration should be handed from unelected "quangos" to elected leaders.
The ex-deputy PM was asked to draw up policy ideas on inner city regeneration by Tory leader David Cameron.The ex-deputy PM was asked to draw up policy ideas on inner city regeneration by Tory leader David Cameron.
His full Cities Taskforce report will be published later this year. His Cities Taskforce report was launched earlier in Bristol.
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 - and to have a competitive salary. In it he calls for directly elected leaders to have powers over transport, fire services and welfare, as well as direct oversight of the police - and to have a competitive salary.
Referendum rejectionsReferendum rejections
"The leader of the council should be directly elected and should expect to be remunerated to make a career from the opportunity," he said. "The leader of the council should be directly elected and should expect to be remunerated to make a career from the opportunity," said Lord Heseltine.
Mr Cameron said the government should trust local communities to run their own cities, and blamed the limited power of councils for low turnouts at local elections.Mr Cameron said the government should trust local communities to run their own cities, and blamed the limited power of councils for low turnouts at local elections.
Elected mayors were a key plank of Labour's plans to shake-up local democracy but take-up has been patchy.Elected mayors were a key plank of Labour's plans to shake-up local democracy but take-up has been patchy.
If you really want powerful local communities you have got to let them have power and let them make decisions Lord HeseltineIf you really want powerful local communities you have got to let them have power and let them make decisions Lord Heseltine
Twelve areas voted for mayors in referendums but 22 others - including Tony Blair's Sedgefield constituency - rejected them.Twelve areas voted for mayors in referendums but 22 others - including Tony Blair's Sedgefield constituency - rejected them.
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 mayoral election by holding US-style primaries.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 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.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 turnoutsLow 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.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.""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."
David Cameron is studying Lord Heseltine's proposalsDavid Cameron is studying Lord Heseltine's proposals
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".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".
He said over the years local government had been "hollowed out" - with power handed to "quangos" answerable to central government.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.He told the BBC it was now impossible to rebuild English cities and urban areas from local government in its current form.
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.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.
BondsBonds
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.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.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.
The Tories' report also called for councils to be given direct control of business rates paid by firms, in their first five years.The Tories' report also called for councils to be given direct control of business rates paid by firms, in their first five years.
Sally Low, of the British Chambers of Commerce, welcomed that proposal saying it could "act as a powerful incentive to local authorities to promote business start-ups and foster real enterprise in their areas, rather than merely treat business as a cash cow".Sally Low, of the British Chambers of Commerce, welcomed that proposal saying it could "act as a powerful incentive to local authorities to promote business start-ups and foster real enterprise in their areas, rather than merely treat business as a cash cow".
And Dermot Finch, of the Institute for Public Policy Research, said directly elected mayors would "help England's big cities unlock the powers they need to deliver regeneration, improve transport, and spark further economic growth".And Dermot Finch, of the Institute for Public Policy Research, said directly elected mayors would "help England's big cities unlock the powers they need to deliver regeneration, improve transport, and spark further economic growth".
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.