(10 years, 7 months ago)
Commons Chamber6. What recent assessment he has made of progress on the Government’s policy of decentralisation in England.
This Government have instituted the most radical devolution of power and financial autonomy to local councils for a generation. After ever-increasing centralisation under the previous Government, we believe that all regions, cities and towns can play a part in securing the economic recovery and in building a better and stronger economy for the future.
Does my right hon. Friend agree that giving local enterprise greater control over its own destiny has helped to rejuvenate the entrepreneurial spirit of local areas? Will he commend the ambition of Birmingham and Solihull LEP’s strategic economic plan, which aims to create 41,000 jobs for a Government investment of only £86 million next year?
I will indeed commend that ambition. It is appropriate that the enterprise partnership that brings together Birmingham and Solihull has the great good fortune to be led by Andy Street, the managing director of John Lewis and one of the country’s most admired business people. It is fantastic that he is devoting his time to helping the local economy to grow and providing that private sector leadership, which is in marked contrast to the regional development agencies that we had in the past, presided over by governors-general such as the right hon. Member for Newcastle upon Tyne East (Mr Brown).
(10 years, 8 months ago)
Commons ChamberI would say to all local enterprise partnerships that they should engage with their Members of Parliament. My view is that MPs have a pretty keen view as to what are the economic priorities of their areas and LEPs would do well to take into account what they have to say. I think it would be almost as unwise to ignore my hon. Friend’s comments as it would be not to take into account the views of his neighbour, the Prime Minister, my right hon. Friend the Member for Witney (Mr Cameron).
4. What discussions he has had with Greater Birmingham and Solihull local enterprise partnership on devolving powers and responsibilities to that partnership.
On 5 February I visited Birmingham and met the LEP to discuss in detail its ambitious plans for growth. Its proposals focus on important economic opportunities, including the 143-hectare site around the proposed HS2 interchange in Birmingham.
I am grateful to my right hon. Friend for that answer. Greater Birmingham and Solihull LEP was one of the first LEPs to attract a city deal under wave 1. However, wave 1 LEPs do not currently attract funding for an advanced manufacturing growth hub. The west midlands, as he has found out, is the advanced manufacturing capital of the United Kingdom, so will he consider the decision so that we can get on with creating more growth in the west midlands?
I will certainly do that. Having been in Coventry yesterday to sign the Coventry and Warwickshire city deal, which focuses precisely on advanced manufacturing, I know that there is great recognition that the whole of the west midlands has a big opportunity to come together to ensure that the order books that are filling up can be supported by companies in the supply chain. I will take my hon. Friend’s representations on board as we negotiate the growth deals during the weeks ahead.
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The right hon. Gentleman will know that the Government have consulted on precisely that. It is important that there is a strong connection between an authority’s business rate receipts—all authorities; not just cities—and its policy behaviour in respect of businesses. The direction in which we are headed is very clear, but the precise technical details will be made clear in days to come.
I welcome today’s announcement, particularly the repatriation of business rates. Real localism means people having their own money to spend how they decide locally. How many savings will be made by reversing Labour’s Whitehall centralisation, under which so much taxpayers’ money was lost in administration costs before it ever got to front-line users?
There is recognition that whatever the intentions behind the regional agencies, whether RDAs or regional arrangements more generally, they had become instruments—or, as it were, embassies—of Whitehall in the country. Our preferred approach is to devolve powers to cities so that they can revive their reputation of being able to determine their own future and stand proudly in the world as beacons of investment.