In the new report, which was commissioned by Downing Street, Lord Heseltine said ‘the message I keep hearing is that the UK does not have a strategy for growth and wealth creation.’ He wants funds earmarked for supporting industry to be distributed through local government rather than through Westminster-based quangos and central bodies. The main recommendation of the report is to move £49bn from central government out to the regions to be doled out to local businesses by local leaders.
In the wide-ranging 228-page report, called No Stone Unturned, Heseltine (who is chairman of MT’s parent company, Haymarket) made 89 individual recommendations. He called for local councils to be duty-bound to promote private sector development, which makes sense – we all know private employment is the only way to recovery when the public sector is shedding jobs. But controversially, he also called for pay caps on senior Civil Service roles to be lifted in order that the best private sector talent can be attracted. His rationale is that ‘it takes too long for decisions to be made’ by government ministers and civil servants, so the assumption is that a bit of private sector experience will be better and finding ‘efficiencies’.
Heseltine said: ‘I reject the premise that regulation in itself hinders growth. Good, well-designed regulation can stop the abuse of market power and improve the way markets work to the benefit of business, employees and consumers.’ Not quite on message for the ‘cut-all-red-tape’ government spiel these days. Nonetheless, he added: ‘If you want to talk about bureaucracy, you should start looking at the bureaucracy that exists. If you want to build a house or build a road or build a school, there are immense checks and form filling and regulations, much of which could disappear under my proposals.’