Devolution: English Cities

Lord Tyler Excerpts

Wednesday 17th July 2019 Grand Committee

[Lord Tyler (LD)]

My Lords, Parliament and the country owe a huge debt of gratitude to the noble Lord, Lord Heseltine, for his long-standing and single-minded pursuit of this subject, reflected in this great report and, indeed, by the speech he has just made to your Lordships.

I can claim an affliction that is similar to what might almost be described by the noble Lord’s party colleagues as his obsession. As long ago as 1968, I was a co-author of a political pamphlet called Power to the Provinces. We had a number of themes which are as relevant today as they were then, and I will touch on them briefly. In doing so, I hope that the noble Lord will accept that my colleagues and I are here not to dilute his message, but to enhance and empower it still further. We believed then, and believe now, very strongly in the principle that decisions in a mature democracy should be taken as close as possible to the people they will affect. That has become known as subsidiarity. Devolution implies a degree of decision-making that is more extensive and holistic than simple delegation or decentralisation, however desirable they may also be.

I would draw the important distinction between, on the one hand, the delegation of funds—which, by its very nature, is a short-term decision—and devolution of fund-raising powers on the other: once that responsibility has been given it is extremely unlikely to be removed again. Allocation of a central government funding stream, by contrast, can be at the mercy of individual Governments and Chancellors. I am not sure whether this report clearly distinguishes between these two quite separate objectives and exercises: one can lead to the other, but the evolution does not happen automatically. It also follows from our starting point of principle that devolution does not stop at one sub-national or sub-federal level. Taking power from Whitehall or Westminster to national parliaments in Holyrood, Cardiff Bay, Stormont and, indeed, to the metropolitan cities in England does not absolve them from distributing powers and resources to lower levels of governance.

As my noble friend Lord Purvis observed in a recent debate, a truly federal UK constitution would necessitate democratic accountability at all levels, and we believe that double devolution has been as systematically pursued as it should be. More local levels of governance have not received the same amount of attention; for example, I believe that town and parish councils can be very effective in hands-on representation and in management of local facilities. There has always been a good case for intra vires, enabling all authorities to exercise all powers not specifically excluded, rather than the other way round.

As a general principle, I am worried by the implication in the Heseltine report when it appears to share the criticism of mayors that,

“the powers and resources that our conurbations have are uneven and bespoke”.

Given the remarkable diversity of our country in every conceivable area of challenge and opportunity, that is exactly as it should be. When we extend the basic principles beyond the larger cities of England, this becomes even more essential.

It is surely axiomatic that more rural parts of the country cannot be shut out of the advantages of more democratic self-government. The noble Lord referred to the countryside in that context. I appreciate that this report does not purport to extend its remit beyond the major English cities, but the Minister must acknowledge that there are lessons here for more rural parts of England as well. I have no doubt that he has read The future of non-metropolitan England recently published by the LGA. I hope that he will accept that that is a very timely antidote to overconcentration on the major conurbations.

I acknowledge that my experience as a Devon county councillor and then as a Cornish MP reinforces my conviction that the urban case has been more effectively pursued than that for rurality, not least by the noble Lord, Lord Heseltine. The recent Lords Select Committee on the rural economy made a similar point, and if time permits I may return to the Cornish experience later.

A persistent concern has been the lack of demonstrably effective scrutiny and accountability. We were dismayed by the overcentralisation of power implicit in the Cities and Local Government Devolution Bill in 2015. We warned then of the possibility—even the likelihood—that we might be legislating for new one-party fiefdoms, with the mayor, the appointed deputy mayor, and a firm majority of the only body to which they would be answerable in the combined authority, all from the same political party. Without wider accountability, the risk of partisan patronage and petty corruption is increased. Democracy must not only be done but must be seen to be done.

The noble Lord, Lord Heseltine, expressed similar concerns in those debates. He said:

“We hear about accountability. What accountability is there in local government today? … In a vast number of councils in this country, the councillors never change from one party to another. A significant number of councils do not change allegiance either”.—[Official Report, 22/6/15; col. 1397.]


Fortunately, a few weeks ago, largely as a result of the local government revival of Liberal Democrats, that was put to the test.

We also argued in 1968, and have argued ever since, that the democratic deficit has been dangerously developed still further by the tendency of Whitehall towards top-down imposition of structures, with limited menus of permitted powers and boundaries. We Liberal Democrats, like the previous Liberal Party, have always argued for bottom-up initiatives, giving the people in identifiable areas a role in deciding how, when and in what form they are to benefit from increased subsidiarity. This has led to our concept of devolution on demand, with elected authorities bidding to take on responsibilities from a menu of options. For example, current bids might start with the current powers of the Welsh Assembly or Scottish Parliament.

That brings me back to the Cornish experience. The coalition Government, especially my Liberal Democrat ministerial colleagues, were determined to demonstrate that the city deals were not the only model for decentralisation or devolution. No longer a county council and with its newly formed unitary authority, Cornwall was judged to be ready for a degree of devolution. Although this was very modest—perhaps more delegation than full-blooded devolution—it has recognised a level of separate identity and historic self-determination. Democratic accountability has been preserved by a more traditional leader and cabinet structure, avoiding the “elective dictatorship” of an elected mayor. It has proved a popular and well-respected model, giving real leadership through the Brexit crisis. Other more rural English areas are queuing up to follow the Cornish lead, with a unitary authority being seen as the key to progress.

Inspired by Cornwall’s example, a number of upper-tier authorities—mainly rural and with no major cities—have come together to form Britain’s Leading Edge group. Their latest report both demonstrates the value of bottom-up initiatives and displays a healthy approach to non-metropolitan devolution aspiration.

In this debate, my Liberal Democrat colleagues will follow up a number of these more general points with some specific examples of the direction in which we hope the devolution process will go next. In the meantime, I repeat my personal thanks to the noble Lord, Lord Heseltine, for leading us in this direction and giving us this great debate.