Direction of Government
Debate between Andy Burnham and Iain Duncan Smith(5 days, 10 hours ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Prime Minister
What I bring back to the House after 10 years away is a clear diagnosis of what has gone wrong. Let me lay it out clearly, particularly for the right hon. Gentleman, since he asked.
From the 1980s, this country took a series of wrong turns. Political power was centralised, economic power privatised and the country deindustrialised. Austerity followed, hollowing out councils and depriving them of the agency to act to reverse any of it, and then Brexit compounded the damage, ushering in a decade of low growth and stalled regeneration. [Interruption.] Change begins with honesty, and I am not hearing much of it this afternoon. Unless we are blunt about what went wrong, we will not turn things around. Far from “taking back control”, the combination of those policies took control out of the hands of communities up and down Britain.
For 40 years, too many places have been drifting. Too many British high streets tell the story of this decline. People yearn to see them restored to what they once were, as the Communities Secretary and I heard on our visit to Ilkeston in the summer, but they see no hope if we continue on the same path with a failed economic model, which does not trickle down much to places like theirs and instead allows wealth to be extracted and siphoned out. Britain’s water industry stands as a leaking monument to that approach—a country run in the private rather than public interest. That is now abundantly clear to voters of all parties, including the Conservative party.
The Government I lead will be relentless in giving people and places what they were promised 10 years ago: ownership and control. From that control over their destiny comes change and growth. I say this with confidence. [Interruption.] I do, and let me explain why. It is backed by a decade of personal experience of turning around one of the UK’s former industrial heartlands and turning it into the fastest growing city region in the country, bucking the low-growth trend. It has given me a clear theory of growth and I will apply it to all parts of the UK, learning from what has been achieved in Greater Manchester. For a long time the country did not have ambitions for its regions outside of London. It even talked of the “managed decline” of Liverpool. It took the devolution of power out of this place to allow our big city regions the ability to set new ambitions for themselves. Now, I want every single place across our regions and nations to be able to do the same, creating the conditions for good growth in every postcode.
In that spirit, I was glad to meet the Liberal Democrat leader of Cornwall council, with my hon. Friend the Member for Truro and Falmouth (Jayne Kirkham), on my recent visit. I know, like many rural economies across the UK, that Cornwall lacks a basic level of infrastructure, which in turn harms growth and holds back living standards and life chances, and I heard the cross-party call for a devolution deal. I understand concerns in this House about the potential emergence of a two-tier England—those with devolved power and those without—and I will not ignore them. So, I have asked No. 10 North to begin work with Cornwall council and its six MPs on a devolution deal with or without an elected mayor.
I today extend the same offer to all parts of England without devolved power. The First Secretary of State, my right hon. Friend the Member for Sheffield Heeley (Louise Haigh) will today write to every Member of this House setting out how they can engage No. 10 North in the service of the places they represent. I extended the same offer to the First Ministers of Scotland and Wales, and the First and Deputy First Ministers of Northern Ireland when I met them over the summer. As they rightly pointed out, their situations are different, but there is interest in what a local model of devolution could look like in each of the home nations, and we will discuss that with them at a special meeting of the National Economic Council next month.
This Government will oversee the biggest redistribution of power this country has seen. In July, we published a statement on the next stage of English devolution. It will include powers long requested by mayors, such as: post-16 technical education; employment support; and fiscal devolution, starting with the ability to set an overnight visitor levy to commence towards the end of the financial year 2027-28. The driving force behind it all will be No. 10 North. It will oversee the rewiring of the British state, the rebuilding of resilience in our communities and the reindustrialisation of our regions. The creation of No. 10 North was one of the first acts of this Administration and I believe that in time it will be seen as one of its most significant. It is a clear answer to the question with which this country has long wrestled: who, in government, drives growth? My theory of growth requires it to be driven with the full authority of the very centre of Government, in close partnership with HM Treasury.
No. 10 North has been set up with that full focus; the single front door on which regions can knock to get quicker, joined-up decisions from Whitehall, and through which power and resources will be passed to them. Resources will include human resources. This is because a state that has grown too large at the national level now needs to redirect civil service capacity regionally and locally, repairing the damage of austerity and making the service of place the state’s first priority. We can already see what is possible. I am glad No. 10 North was able to stand behind Mayor Richard Parker when he took urgent action in August to prevent the collapse of bus services across the west midlands, and I congratulate Mayor Steve Rotheram who this weekend, after four decades of deregulation, will see the first buses return to public control in the Liverpool city region. Taking back control of essential services such as transport is an enabler of a more productive economy, because it allows local areas to grab hold of the levers of power for themselves.
But driving growth demands we go further. It is taking far too long for businesses to get grid connections and they are being quoted prohibitively expensive sums of money if they try to bring those dates forward, as I heard on my visit to a farm near Truro. Household energy bills are the highest in Europe, and the cost of energy is impacting business and inward investment. Too many areas have seen water supplies disrupted this summer due to a lack of reservoir capacity. Our tourism industry is damaged by too many sewage spills. [Interruption.] “Why?” the Opposition say. It is a question they should ask themselves. This summer has shown us very clearly that water companies are failing to rise to the climate challenge. It cannot go on. Later in the year, our 10-year plan for Britain will set out plans for stronger public control over these essentials, making them work for people and places again.
Alongside that, we will empower all areas to expand the public housing stock, building on the first allocations from the social and affordable homes programme announced by the Communities Secretary last week. Bringing forward the biggest council home building programme since the post-war period is the Labour way to get the welfare bill down, as is reforming our education system, so that it balances academic and technical, and offers a path in life for all young people. Michael Gove calls this “bringing back stupid”, when in fact, for too many young people written off by his reforms, it is bringing back hope. Allowing mayors to shape technical pathways and provide work placements for young people, building back into colleges and schools from the needs of the regional economy, is the way to support more young people into work. So is prioritising more accessible, community-based mental health services, as we announced in the summer.
That will be a major part of our response to the forthcoming Milburn report, which will follow its publication in the autumn. For it to work, a more intentional approach to the reindustrialisation of Britain is required. We will support all parts of the country to take more public control over investment strategy, learning from the Greater Manchester model of a consolidated good growth fund drawn from their own funds, prudent loan borrowing and fragmented budgets held by Government bodies. We will back local industrial strategies—a policy of the Theresa May Government I am happy to revive—by identifying priority sectors and developing the triple-helix approach to economic development by entwining business, academia and Government behind the plan. This is the way we will build a pro-business culture and an innovation-led economy in all parts of the UK, finally capturing the long-term benefits of the invention that is in the DNA of our nation, backing our start-ups and scale-ups to stay in the UK where they were founded.
When I stood outside Downing Street six weeks ago, I said that Britain needs a circuit breaker after a decade of turbulence, negativity, point scoring and divisive politics. This is what I have outlined today: a clear, coherent and credible approach to growth that can unlock a feeling of positivity and possibility in every postcode in Britain. Our job here is to make it real by taking a place-first rather than a party-first approach. It starts with reasserting basic standards for Britain—that this is a country where no one sleeps rough and no community is blighted by an illegal waste tip—and, from there, working together to build a new sense of optimism around the country. We can make this next decade better than the last. We can lift the prospects of all our people and places. We can put more power into every postcode. We can let Britain believe again. We can bring back hope. I commend this statement to the House.