Devolution and Growth across Britain

Debate between John Hayes and Chi Onwurah

Wednesday 3rd June 2015 Commons Chamber

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

It is a pleasure to follow the hon. Member for South West Wiltshire (Dr Murrison), and, indeed, so many excellent maiden speeches from Members on both sides of the House. From listening to them, I am confident that the 2015 intake of MPs will add much to the experience, wit and verve of this Chamber.

I am proud to say that the north-east overwhelmingly returned Labour MPs in the general election. Unfortunately, the rest of the country did not see fit to follow suit. [Hon. Members: “London!”] Apart from London, yes. As a consequence, rather than the English devolution Bill that Labour had promised, we are now debating measures to crack down on trade unions and human rights, and the abolition of the Human Rights Act, which will hardly build up the north-east’s economic competitiveness. It is not enough simply to repeat the talk about the northern powerhouse when the Tory party actively dismantled the northern powerhouse we had in the 1980s. The Prime Minister may try to rebrand the Tory party as that of the working people, but we remember it as the party of putting people out of work.

I congratulate the Secretary of State for Communities and Local Government, who is not in his place, on his elevation. I hope that he will prove to be a Secretary of State who works with councils, rather than against them. As I am an optimist, I urge Ministers to consider a fair and long-term funding settlement in the north. During the last Parliament, we lost disproportionately: £650 million was effectively transferred from the north of England to the south, and the cut in spending in Newcastle was £266 per person, compared with £130 per person on average nationally. Ministers must not hamper devolution by crippling councils with further unsustainable reductions in spending power. It is not only that money was moved south; despite the rhetoric, power and budgets were brought back to Whitehall in the past five years. Now that the Government clearly have no mandate in the north-east, we demand the powers we need to build the kind of economy that matches our aspiration and our values.

[The Minister for Security (Mr John Hayes)]

I am most grateful to the hon. Lady for giving way to me, in the absence of my right hon. Friend the Secretary of State for Communities and Local Government. In the spirit that she normally adopts in our affairs, I know that she will want to welcome the Government’s work on city deals, including in the north of England—the now Secretary of State championed them—and, indeed, the innovative work in Manchester. Surely that is something to welcome.

[Chi Onwurah]

I normally enjoy the right hon. Gentleman’s interventions, but I must say, in a spirit of as much graciousness as I can summon, that he is entirely on the wrong track. Such matters as have been devolved have not really made a difference. Particularly when it comes to Newcastle and north-east, which I shall talk about, there have been words, but not substance. We want substance, and we want real powers.

For example, why are decisions about the regional growth fund taken in SW1, not in the north-east? Why should we depend on civil servants in London to put the north-east’s £500 million of European funding to work properly? Why can we not take control of that ourselves? Why is the Work programme run out of the Department for Work and Pensions, when local programmes like Newcastle Futures are much more successful in getting youngsters and the long-term unemployed into work? Why can we not have our own housing investment fund to deliver on the plans that have been set out by our combined authority? Why can the north-east not run its own buses, as London does? Why can we not have an integrated transport system? Why does the Minister for Security, who used to have a skills brief, think that London knows better than the north-east what kind of skills we need to build an economy that matches our values and aspirations?

Scotland is to be given more powers as part of the referendum settlement. It will compete with the north-east for every investment, every tourism trip, every pound of foreign investment and every new job. However, while Scotland will blow its own trumpet, we have to rely on Whitehall to blow ours. Less than 10% of inward investment inquiries from firms that are interested in locating in Newcastle come from UK Trade & Investment. That is just not good enough.

The Cities and Local Government Devolution Bill, which will receive its Second Reading in the House of Lords on Monday, is supposed to devolve powers to large cities that choose to have mayors, as my hon. Friend the Member for Newcastle upon Tyne North (Catherine McKinnell) said. Newcastle was one of the nine out of 10 cities that chose to reject an elected mayor. Is it the Government’s intention to free the north-east at the cost of a top-down reorganisation of local government? I believe that we need to improve the accountability and transparency of combined authorities like the North East Combined Authority, but I hope that Ministers will work with our local authorities to come up with something that we can agree on, rather than impose something.

In conclusion, the north-east has so much to contribute to the economy. It has consistently had a balance of payments surplus and, I should add, is the only region in the country to have one. We are home to many emerging innovative, green and digital industries; we have world-class universities; and we have a passion for making and building things. We have a passion to build the economy of the future. Yet our region was neglected by the previous Government and is being neglected by this Government. Now is the time for the north to take control of our destiny with the powers that we need to build our economy in a way that reflects our values. That must not come with strings attached or with more centrally imposed vicious cuts to local services. That is what we need and that is what I will fight for in this Parliament.