Devolution in England

Debate between Andrew Gwynne and Clive Betts

Monday 2nd March 2015 Commons Chamber

[Mr Betts]

Absolutely. The essence of our recommendations is that there should be a framework—a pathway—by which all areas of the country could achieve devolved powers. Some will probably go more quickly than others, but there is no reason for there to be a barrier to all areas joining in. That is very much in the spirit of the work of the Local Government Finance Commission, which has just been published by the Local Government Association and the Chartered Institute of Public Finance and Accountancy. It has slightly different arrangements, although the essence is that, while some authorities will go quicker than others, they will all get there eventually.

[Andrew Gwynne (Denton and Reddish) (Lab)]

I am a firm believer in the decentralisation of power, but does my hon. Friend recognise that decentralisation is not an end in itself and that we need to have accountability alongside it? Does he share my concerns that, under the Greater Manchester proposals, nobody in Greater Manchester other than the council leaders has been asked about what model of decentralisation they would like to see?

[Mr Betts]

We looked at that issue and it is clear that there have to be proper governance arrangements if local authorities are to have not just large amounts of extra spending to control, but greater tax-raising powers, as we also recommend. We looked specifically at the combined authorities, which is the issue my hon. Friend refers to, and we have said that different government arrangements might be suitable in different areas. A directly elected mayor might be appropriate in some areas and a strengthened Public Accounts Committee could scrutinise the work of the executive of the combined authorities. In other areas an indirectly elected mayor might be appropriate, as is the case in Bologna and other places in the world. There are different models available, but no single one is necessarily the right one for every area. We should not say that devolution cannot happen until an area has a particular model of governance in place, but it is clearly right that they should get a proper model in place.

Local Government Finance Bill

Debate between Andrew Gwynne and Clive Betts

Tuesday 31st January 2012 Commons Chamber

[Mr Betts]

I could not have put it better myself; that is precisely right—there will be a perverse incentive. If a council gets the older people who are entitled to claim to do so in greater numbers, other council services will be cut, council tax might increase at some point or, if no more money is spent on the scheme, the benefits of people who are not pensioners will be affected. That is precisely the point.

The problem is not with the Government’s attempt to rebadge the scheme or to localise it, but with the 10% reduction at the beginning, all in one go, and the way in which the Government have framed the restrictions on the extent to which local authorities can implement the reduction. Local authorities can always find extra money to increase the cost of the scheme, but is the Minister really suggesting that it will be possible for any local authority in the current circumstances to find extra resources at a time when services all round are being cut for reasons we all know about?

The 10% restriction or cut in the available Government funding comes in from day one in 2013. Pensioners are going to be protected, and no one in the Opposition is going to argue about protecting pensioners because we want to increase the number of pensioners taking up their entitlements, but that obviously means that the 10% reduction will fall on other people who claim the reduction. That is self-evident. I asked the Minister about this yesterday, because the Local Government Association has kindly put forward the information that about half those claiming the benefit are pensioners, which means that half are not pensioners. So if pensioners are protected, that means a reduction of about 20% for other claimants, does it not?

[Andrew Gwynne]

My hon. Friend makes an excellent point. Is it not worrying that if one section of society is to be prioritised, another, very needy, section is to be penalised, and does not that place councils in the very tough position of deciding who are the deserving poor and who are not?

[Mr Betts]

Absolutely. We are told that vulnerable people—perhaps people on very low incomes with children—are going to be protected, or have to be protected, by councils under the scheme, but are they going to be or not? Are the Government going to insist on that? We are not quite sure. We are told that local authorities have to take account of the tapers under universal credit, but what does that mean? Are they obliged to respect completely the 65% taper element within universal credit or not? If so, will that mean that a smaller and smaller number of people will have the totality of the cuts in benefits imposed on them? That is the reality. Will the Government explain what they think is going to happen?