Devolution tax warning

Speaking at a meeting of the Chamber Council, John Watson OBE called on members to resist the powerful campaign for devolution through a "proper reasoned" opposition. He claimed that such a body would also create another tier of bureaucracy whose influence would be just one third of that exerted by Bradford Council.

"It would be a machine to spend more money, which would be recouped through taxes," he said. "The enterprise culture of people in Yorkshire could be threatened by such an assembly."

But Simon Lee, a lecturer in economics at Hull University, told the Chamber Council that a regional parliament could bring major economic benefits.

However, he refused to support the Government's White Paper on devolution claiming it had been "designed to fail".

Mr Lee said: "We in the North have been given a weak proposal by the Labour leadership in the hope that people will be deterred from supporting it.

"But a Yorkshire Parliament would be more immediate, more efficient and more effective because Whitehall doesn't understand Yorkshire. We are the same size as Scotland. They can govern themselves, why can't we?"

The Government's white paper, Your Region, Your Choice, aims to decentralise power by providing elected regional assemblies, in areas which have public support.

A referendum will be held to decide whether the region wants its own parliament. If so, the body would have 25 to 35 elected members and a cabinet of up to six people. Its responsibilities would be to develop strategies in areas such as economic development, employment, tourism, transport, housing and culture.

Funding would come through a government grant, though assemblies would probably be able to raise extra income through the council tax precepts. There will be no powers to alter business rates.

Running costs are estimated at £25 million a year although savings may be made by working with various other public bodies.