Just over a month ago, Jon Cruddas articulated his view of how we should do politics differently and both articulated and grieved Labour’s failure to take the initiative on devolution. Cruddas rightly said that at “the heart of Labour’s policy review was the devolution of power and resources to our English cities, counties and communities. But our leadership couldn’t let go of its desire to control from the centre. Labour was too arrogant to listen and too timid to act.” On the day that Jon’s article was published in the Guardian, Compass and Co-operative activists met in Sheffield and came to the same conclusion.

Sheffield’s Radical Hope conference, organised by Compass and Sheffield Co-operative Party, spent time reflecting on the recently signed Sheffield City Region deal. Many participants felt that the lack of ambition from Labour on this agenda whilst in opposition had given Osborne not one but many open goals. This is a real shame because most of the best thinking on devolution has come from the Left and from our city and council leaders. They understand what the devolution dividend could mean for the poorest and most disadvantaged – and what opportunities are being squandered as a result.

More important is how the devolution deal will play out post-Comprehensive Spending Review and in particular the implications of councils’ ability to retain business rate revenue. The rationale for this was to incentivise councils to promote economic growth, but the reality is that for places like Sheffield City Region, which by any measure does not generate a large amount of business rate income, additional money raised will be swallowed whole by the cost of services such as social care. As the system of redistribution is phased out, we will see a further exacerbation of winners and losers, a deeper North-South divide and a Northern Workhouse instead of Powerhouse.

The latest findings from IPPR North were a depressing reminder of just how persistent some of the economic problems are in the North. Labour should stand on its principles and the evidence of its policy review to articulate the case for giving the North real power and instruments to address systemic issues. At the same time, the left must challenge Osborne’s narrow vision of growth and in particular the idea that competitive economic growth is automatically good for all citizens. All the evidence points to the contrary and the consequent need for both local and national government to intervene. It is sustainable local economies that put well-being first and foremost that give communities a future and provide the possibility of a ‘good life’ for their citizens.

The current devolution deals on offer from the government create  an opportunity to talk about devolution even if we don’t like the terms of the debate. What we now need to do is put some bones on John Tricket’s idea of a Constitutional Convention as soon as possible, with a principled approach of what its purpose is and what it’s trying to address. We should develop an ambitious vision of where we think devolution should go and what it should do, and throw in this House of Lords reform, a properly functioning voting system and maybe a Bill of Rights. Cruddas rightly said that we face political irrelevance unless we can transform ourselves – our ‘aim is to bring the Labour party together to become once again the party of the whole country and the party of the future’. This would be a good starting point.