Scots economy 'would be £33bn larger if it had matched Manchester'
Scottish Labour leader Michael Marra accused the SNP of centralising money and control
The economies of Scotland’s regions would be £33 billion larger if they had grown at the same rate as Greater Manchester, the new leader of Scottish Labour has said.
Michael Marra accused SNP ministers of centralising money and control, and insisted local devolution deals could be key to unlocking growth.
He pledged to make this case with First Minister John Swinney and Prime Minister Andy Burnham.
Mr Burnham, the former mayor of Greater Manchester, previously vowed to “extend devolution in Scotland, Wales and Northern Ireland by taking power deeper down".
READ MORE: Andy Burnham: Here is my pitch to Scotland
Scottish Labour said the economy of the Glasgow city region would be almost £7 billion larger if it had grown at the same rate as Greater Manchester between 2015 and 2023, while that of the Edinburgh and south Scotland city region would be £2 billion larger.
The economy of the Tay cities region would be £4.4 billion larger and that of the Highlands and islands region would be £2.6 billion larger. Meanwhile, the economy of Aberdeen and Aberdeenshire city region would be £10 billion larger, Labour said.
Holyrood faces a £4.7 billion spending gap by 2030, with warnings of tax rises or spending cuts to plug the hole.
Mr Marra said: “The Scottish Parliament faces a spending gap of £4.7 billion by 2030; we need a serious plan for economic growth in Scotland. Devolution deals could be the key to unlocking that growth.
“For too long Holyrood has centralised money and control, when we should be pushing it out to Scotland’s regional communities, giving them the power to pursue what is best for their local areas and turbo charging growth in the process.
“I will make the case for this directly to Bute House and Downing Street to deliver the best deal for the people of Scotland and redistribute power, wealth and opportunity in our country.”
Mr Swinney has pledged to overhaul local government in a move that could see Scotland’s current 32 council structure scrapped and replaced with a two-tier system of regional and more local bodies.
In initial proposals, the Scottish government suggested replacing the current structure with between six and 10 regional authorities, which could be given powers over larger planning decisions, education and economic development, and between 120 and 160 more local “community” authorities, which would control local planning decisions, licensing and the historic environment.
Councillors would continue to be elected under the current ward system and would sit on both the local and regional authorities, though the government suggested the increased time commitment may require a boost in pay.
Cosla, the council umbrella body, said it was vital reforms “are based on sound evidence and that meaningful engagement takes place”, adding: “Significant changes like this must be agreed between Scottish government and local government and not imposed from the top down.”
It continued: “While we all agree on the need for reform, this will not work if it is imposed on councils and the communities they serve so we are calling for ministers to commit that any changes will be implemented only through agreement with existing local authorities.”
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