

Devolution Advances to Stage Two: Somebody Looks at Receipts
LONDON - As ministers prepare to give English mayors greater control over funding and public services, IPPR North has argued that stronger scrutiny should accompany the expansion of mayoral powers. Planned changes include greater local revenue retention and potentially billions of pounds shifting away from Whitehall control.
Authority: Guardian report on mayoral powers and devolution scrutiny
Related: UK government satire at Prat.UK
Britain has discovered a dangerous new principle in public administration.
If politicians receive more money and power, somebody should occasionally check what they are doing.
This theory remains experimental.
England's regional mayors are due to gain greater financial authority as part of deeper devolution.
The logic is straightforward.
Local leaders know local problems better than somebody in Whitehall reading a briefing note entitled THE NORTH: BACKGROUND.
A mayor in Manchester presumably knows more about Manchester transport than an official in London whose principal northern experience involved changing trains at Crewe.
But with additional power comes the uncomfortable administrative concept known as scrutiny.
Scrutiny is government's equivalent of your spouse asking:
"What did you buy?"
"Nothing."
"Then why is there £480 missing?"
"Strategic infrastructure."
England's devolution system has grown rapidly.
Mayors increasingly oversee transport, housing, skills, investment and other functions.
Some will also gain more ability to retain locally generated revenues.
That creates political visibility.
If a mayor spends well, mayor takes credit.
If a mayor spends badly, central government remembers devolution exists and says:
"This is precisely why Dave should never have had a credit card."
Thinktanks therefore want stronger oversight arrangements so one disastrous decision does not damage public confidence in the entire devolution project.
That is sensible institutional design.
It is also wonderfully British.
We decentralise power, then immediately construct committees to monitor the decentralised power from somewhere else.
Soon every mayor will have a scrutiny board.
The scrutiny board will have an audit panel.
The audit panel will have an independent reviewer.
The independent reviewer will need a regional office.
Congratulations.
We have recreated Whitehall locally.
Tourist taxes may also feature in devolved finance.
This is an attractive political instrument because tourists do not vote in local elections.
Taxation becomes much easier when the taxpayer is currently taking photographs of a cathedral.
"Welcome to York."
"Thank you."
"That'll be £4."
"For what?"
"Being here."
Efficient.
Keeping a share of locally generated income tax or business rates could give regional leaders greater ability to finance projects.
Supporters argue this can create accountability because places gain more control over their own priorities.
Critics may worry about capacity, regional inequality and the risk of expensive mistakes.
Both concerns can coexist.
That is why institutions create oversight rather than resolving every political question with a slogan.
Still, the idea of "one bad decision" derailing confidence in mayors raises an awkward question.
If one bad decision is sufficient to end an entire political structure, Westminster should have been demolished centuries ago.
Central government survives mistakes with astonishing durability.
Computer system fails?
Government continues.
Cost overruns?
Government continues.
Minister accidentally spends £800 million on something nobody can locate?
Lessons will be learned.
Regional government deserves at least the same national tradition.
Mayors themselves will probably welcome scrutiny right up until scrutiny finds something.
All politicians support transparency in the abstract.
The trouble begins when transparency acquires a spreadsheet.
"Can we see the procurement documents?"
"We strongly believe in openness."
"Wonderful."
"Not that open."
The best devolution model will ultimately require enough freedom for mayors to make meaningful decisions and enough oversight to prevent the freedom becoming an expensive local sculpture titled Regeneration Opportunity.
That balance is difficult.
Too little autonomy and mayors are ceremonial complaint departments.
Too much without accountability and they become miniature prime ministers with tram budgets.
Britain therefore enters a bold new constitutional age.
Power moves out of Westminster.
Money moves into regions.
Responsibility moves closer to voters.
And somewhere, inevitably, a committee chair asks:
"Can you explain invoice 47B?"
Democracy has arrived. https://prat.uk/?p=49148
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