Leader calls for sustainable long-term council funding plan

Cllr Nick Kemp has written to Keir Starmer calling for more devolution and council funding reform.
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Councillor Nick Kemp

The leader of Newcastle City Council has called on Government to accelerate devolution and commit to long-term funding for local government in an open letter to the Prime Minister.

Cllr Nick Kemp has congratulated Sir Keir Starmer on his “commanding” election victory in the open letter sent to number 10 Downing Street today (Monday 29 July 2024) and said he had delivered “change, transparency and hope”.

The Byker councillor, who has served his ward for more than 20 years and as leader since March 2022, has also praised the strides the Prime Minister has made in his first weeks in Government. 

In the letter, Cllr Kemp has committed to working with Mayor Kim McGuinness and echoed her calls for greater powers for the combined authority, saying we must “go further and faster with devolution”.

And, as the Chancellor today announces difficult decisions around public sector spending, he called for a “more sustainable and long-term” plan for a local government funding and reform to a system that is “fundamentally broken”.

What the letter says

In the letter, Cllr Kemp said: “I have proudly served as a councillor in Newcastle for more than two decades and, from speaking with residents, I know they are finding life more challenging now than ever before. They called for change, transparency and hope. You have delivered it.

"Newcastle has suffered more than most following 14 years of austerity and we continue to experience some of the highest levels of deprivation in the country. Too many of our children are growing up in abject poverty and we need radical change.

"We are a proud city. We are a city with a rich industrial heritage and working class roots. We were once the ‘workshop of the world’ and those foundations of innovation and progress remain steadfast today.

"There is already global interest in Newcastle. We are home to two world-class universities, an international hub for life sciences and emerging technology, and not least a football club with lofty ambitions to be among the best. The North East has so much to offer. 

"I am proud to serve in the Cabinet of the new North East Combined Authority and to lead on development of our region’s industrial strategy. We are committed to supporting Mayor Kim McGuinness and her ambitions to work your new Government to deliver further devolution.

"The impact of North East devolution is clear to see. The new Crown Works studio in Sunderland will drive growth across the region, her plans to bring public transport back into public control will see investment in our key infrastructure and her commitment to deliver thousands of new homes will support the ambitions we have as a city.

"I support Mayor McGuinness’ call to go further and faster with devolution. We have fought and clawed for investment in our city and further powers for the region is what we need to deliver more meaningful outcomes for our residents.

"I also ask you today to consider a more sustainable and long-term approach to local government funding. Our crucial frontline services are at breaking point and councils, of all political colours, are facing an existential financial crisis across the country.

"Our prudent financial management means we do not face that same fate, but the system is fundamentally broken and it is hard working families, and those living in some of the most challenging of circumstances, who ultimately pay the price. 

"I know there is a long, hard road ahead of us as we try to repair the damage caused by 14 years of neglect. However, you have the support of this council in delivering the radical reform necessary to put a nation back on its feet."