Baroness Keeley
Main Page: Baroness Keeley (Labour - Life peer)Cities and Local Government Devolution Bill [Lords]
Baroness Keeley Excerpts
Greg Clark
I will give way to my hon. Friend and then to the hon. Lady, but after that I must make some progress.
Greg Clark
In view of the proposed violence of my hon. Friend’s enthusiasm, I am glad that he is sitting over there rather than closer to me. He was my friend and mentor in local government, and we did a lot together on the basis of our knowledge, as councillors, of our local area. I think that is very much reflected in what we are doing now. For all the discussions we will have, today, in Committee and on Report, this is, for all of us, a big opportunity to do what many of our predecessors sometimes hoped but failed to do: give capable leaders across the country the ability to make a difference to their communities. It is right that my hon. Friend pays tribute to the potential of local leaders.
Barbara Keeley
I hope the Secretary of State will not regret giving way, because I am going to intrude on the somewhat rosy view he is developing about Greater Manchester. There was a sense of shock there about the health devolution and the imposition of an elected mayor. Manchester is not a city; the unit we are talking about is 10 separate places. I represent Salford and I have been a councillor in Trafford, and I know that feelings run high about that imposition. The real concern is about health and the role of MPs once this health devolution goes ahead. The British Medical Association is very concerned that doctors were not consulted before that decision, and neither were MPs in Greater Manchester. We find ourselves too far outside the loop, and there are real concerns about the role of an MP in expressing their constituents’ concerns on health matters in the future. This is not at all clear.
Greg Clark
I am grateful for the hon. Lady’s intervention. All I would say is that the proposals on health devolution came from the Greater Manchester authorities—they were not proposed by the Government—and reflected their feeling that their local knowledge and experience could make a material difference in improving health outcomes for people in Manchester. This is important. Of course, the national health service will always continue to be accountable through the Health Secretary, the Prime Minister and Ministers to Members here, and I encourage all authorities and Members to take the opportunity to work together and not only scrutinise but influence these arrangements. I hope they will do that.
Jon Trickett
I will also try to make some progress before giving way again, because I have only got to the second paragraph of my speech so far.
When I first opened the Cities and Local Government Devolution Bill, I did so with a momentary tremor of excitement. I asked myself whether this Bill was going to give the great English cities, but equally the market towns, the villages, the country areas and shire districts, a real settlement and real power over their futures. I wondered whether this would be an ambitious Bill that would deliver for England, in all its complexity, the devolution a Labour Government enacted for Scotland, Wales, Northern Ireland and London. I wondered whether this would be a Bill that gave people up and down the land, from 16 years of age and upwards, the chance to have a real say in how they are governed.
I read the Bill carefully, and with all due respect I have to ask: may I offer the Secretary of State some private advice, just between the two of us? He should recall the old political truth that hubris is always followed by nemesis. We English, certainly in Yorkshire, have a different way of capturing the same idea: we say “pride comes before a fall.” In this Bill, the Government are displaying a breath-taking level of highhanded treatment of our council colleagues.
In a democracy, we who hold power at the centre should never forget that authority flows up from below, rather than being imposed from above. The sad truth is the Bill offers a pretence at devolution. I will give five reasons why.
Let me come straight to the first and most central point. The Secretary of State did not reveal the whole picture in his answer on metro mayors. The truth is that metro mayors in local areas are a precondition of devolution, and that is simply wrong. It is doubly wrong when that imposition is applied even to areas where the local population voted only recently in a referendum to reject the idea of being governed by a mayor. The people of the great cities of Sheffield, Leeds, Wakefield, Manchester, Bradford, Birmingham, Coventry, Newcastle-upon-Tyne and Nottingham voted against metro mayors, yet the leaders of those cities tell me that as a condition of devolution they are now being required to accept something their own electorate rejected. That is triply wrong when the Government continue to impose this single model of governance even though they do not have the legal powers to do so.
In the other place a crucial amendment was passed that decoupled the imposition of mayors in urban areas from devolution deals. I was disappointed that the Secretary of State did not in his speech have the grace to say that the Government will now accept this amendment, which was backed by peers of all parties, including many distinguished Conservative peers.
Furthermore, in a powerful article in today’s The Daily Telegraph—essential reading for the Labour party—the Conservative hon. Member for Altrincham and Sale West (Mr Brady), who is in his seat now, puts it well, and perhaps better than I could:
“Devolving power but telling people how to exercise it, jars: if the deal is as good as we are being told, why not put it to a vote?”
Barbara Keeley
Perhaps some cross-party consensus could break out here, because I feel sure that if we had had a vote in Greater Manchester, which has always rejected the idea of a metro mayor across the whole of Greater Manchester, it would not have gone through, because every constituent part, with the recent exception of Salford, has voted against that.
Jon Trickett
I agree, and my hon. Friend makes the point I am making.
I have received strong representations in recent weeks from those who advocate that where a devolution deal includes an elected mayor, it is only right that a local referendum of voters takes place and it decides in favour of it. What we have at the moment is mayors being imposed where the referendum voted against. In the vast majority of the devolution deals that have been done since 1997, referendums were held to endorse constitutional settlements—in Wales, Scotland, Northern Ireland and London. Why should there not be a referendum for the northern powerhouse? There is merit in such an argument, and we will make sure that we test it in Committee.
Where there are to be mayors, the House must carefully consider appropriate systems of accountability and scrutiny, as Members on both sides have said. In the other place, Labour supported amendments to improve the audit of mayors. In Committee here, there will be much more to discuss. In London, the Mayor is directly accountable to a directly elected Assembly. Should not that model apply elsewhere?
Barbara Keeley
It is noteworthy that national organisations, such as the British Medical Association and the Nuffield Trust, are very concerned about the health proposals, and the Minister should take that on board. They have expressed concerns about how health powers and resources will be devolved. The matter is not clear. This is an area where there are already variations in funding, in standards of care and in the way NHS funding is used. This is a question for the Minister. What will national pledges and targets mean in future when there are shared budgets? It was forced on Greater Manchester, which is why none of it is clear.
Jon Trickett
My hon. Friend makes an important point. That is why we need a comprehensive settlement to the constitutional and political problems facing our country. Clearly, there is a role for a central, active Government, but not for a bureaucratic top-down Government. Some decisions do need to be made nationally to ensure that there is no postcode lottery, especially in the health service and other areas. On the other hand, decisions should be made as close as possible by the people themselves.
Let me finish on the following point. Rather than remaking the shape of our democracy, the Bill is more about remaking the image of the Chancellor as he prepares to become the Tory party leader. In their present form, the deals that are being made will prove to be no more than a short-term fix. Most of them will not endure in the longer term. We will seek to amend the Bill, but would it not be preferable, even at this late stage, for the Secretary of State to agree to put aside the Bill for a period of time and join with us and others in the hard but necessary task of rebuilding our constitution and our political culture on a consensual basis from the bottom up? This Bill is a top-down imposition on local democracy.
Mr Graham Brady (Altrincham and Sale West) (Con)
I am grateful for the opportunity to make a brief contribution so early in this important debate. Let me begin by saying how warmly I welcome the principle that lies behind the Bill. The intention of bringing real power and decision making closer to the people we represent is one that I think almost all of us in this House share. From a Greater Manchester perspective, we must also acknowledge the great prize that lies ahead if we can achieve the proper integration of health and social care, but I emphasise the importance of getting the detail right in the implementation.
I would also like to thank the Secretary of State for the courteous and constructive engagement he has already offered to colleagues who are interested in the Bill, which gives me considerable confidence that we will be able to move forward in a way that delivers the objectives while overcoming the concerns that some of us have. He has also indicated that the Bill will be considered in Committee of the whole House, which is clearly the right thing to do.
I have four broad concerns. The first—the hon. Member for Hemsworth (Jon Trickett) spoke about this at some length—relates to the imposition of the model of governance, which I think is unfortunate. We need to ensure not only that the public generally buy into the principle of devolution and feel that they own the new arrangements, but that the new arrangements bring genuine accountability to governance.
The hon. Member for Worsley and Eccles South (Barbara Keeley) mentioned some of the concerns about the devolution of healthcare. We already have a worrying straw in the wind in Greater Manchester, with the initial reorganisation of hospital services coming before all of this. It has been handled in a deeply regrettable fashion and raised considerable concerns. Certainly, I am deeply concerned about the apparent lack of accountability in the process. Given that some of these issues are already arising, it is timely that we are now looking at them as we legislate and trying to ensure that accountability is in place.
Barbara Keeley
It is good that a consensus is being built across Greater Manchester. The hon. Gentleman is right to raise that issue, and I know that Wythenshawe hospital is very concerned about being left out of the equation in that regard, so how these decisions will be made and consulted on in future is very worrying. But there are other concerns as well. Salford was a leader in the integration of health and social care, and my fear is that that will now be set back by having to work across Greater Manchester.
Mr Brady
I agree with the hon. Lady. It would be regrettable if, in seeking to devolve power, we ended up taking some decisions further away from people and making it harder for their voices to be heard.
My second concern is about the distribution of powers. I hear my right hon. Friend the Secretary of State’s assurance that this can only be about bringing powers from central Government, but I do not think that is really clear in the Bill, so I would welcome much more clarity as we proceed in Committee. Clauses 8 and 9 make provision for the exercise of statutory functions in relation to an area to be transferred to a combined authority. Clause 5 makes it possible by order for any function of a mayoral combined authority to be a function exercisable only by the mayor. Therefore, I do not think that it is as clear in the Bill that power can move only in one direction as many of us would want to see. We might return to that at a later stage.
My third concern, which was raised with me by my local authority, relates to the possibility that this deal amounts to a one-way commitment. It relates to those local authorities that have made a commitment to the combined authority. The Greater Manchester agreement will place obligations on the local authorities, and certain expectations are being placed on the Government, but there is no mechanism by which the local authorities can hold this Government, or indeed any future Government, to account to ensure that they meet their obligations as part of the deal. I invite my right hon. Friend the Secretary of State to consider whether we might find a way to tighten the provisions and make it clearer that the Government’s obligations will be observed.
My fourth and final concern—in a way, this could provide a solution to all the other concerns—is about what happens if the arrangements do not work. What happens if a local authority reaches the point at which it regards the agreement as a mistake and thinks that the powers have been vested in the wrong place? It is the question of final resort. What are the terms under which a local authority could choose to walk away from a deal? What happens if it says, “This clearly isn’t what we bought into”— possibly a microcosm of a bigger debate that we might have by the end of 2017? It is about a local authority being able to leave a combined authority without penalty.
A deal that transfers spending from central Government to the local level is very welcome, but the mechanism set out in the Bill for allowing local authorities to leave a combined authority is very messy. Rather than the local authority simply deciding to opt out, the combined authority must decide to dissolve itself and then reform with the other authorities that wish to remain. The mechanism makes no provision for ensuring that a local authority can leave on fair terms and without penalty.
Andrew Gwynne (Denton and Reddish) (Lab)
I will start by breaking the habit of a lifetime and agreeing with some of the contribution made by the hon. Member for Bury North (Mr Nuttall). I also urge the Secretary of State not to get too carried away with identity, and I will let him into a secret: I am a proud Mancunian by birth, and also a proud Dentonian. I suppose I am a Greater Mancunian, because I was born two months after the local government reorganisation. Many of my constituents will have allegiances to their old historical counties. Someone who lives in Denton and Audenshaw in my constituency is Lancastrian, but someone who lives in Dukinfield is from Cheshire and proud of it. Someone who lives in Reddish, Heaton Chapel or Heaton Norris in the Stockport part of my constituency has dual identity, because they started off in Lancashire in the 20th century, and were transferred to Cheshire when the area became part of Stockport county borough. People identify with their old historical communities as much as they do with the reality of local government administration on the ground.
I disagree with the hon. Member for Bury North in that when the Government of the late Baroness Thatcher abolished the old Greater Manchester Council—along with other metropolitan county councils and the Greater London Council across the river from here—she did not do so to create a patchwork of unitary government. The then Government recognised that it was impossible to create unitary government in the metropolitan counties because some functions had to be carried out at county-wide level. We ended up with a hotch-potch of joint boards: the Greater Manchester passenger transport authority, Greater Manchester waste disposal authority, Greater Manchester fire authority, and Greater Manchester police authority. There were still functions at county level.
The difference was that in many respects those bodies were less accountable than the old Greater Manchester Council which, for all its faults, at least had directly elected representation. The problem with joint boards—we see this today with Transport for Greater Manchester—is that although they include councillor representatives, the district councils do not hold those councillors or that joint body to account. In some respects, having some level of direct accountability at city region level makes sense.
My concern is about the accountability of the individual. I accept that the mayor will be accountable to the electorate every four years in local elections, but the difference between the London model and that proposed in Greater Manchester is that a small Assembly at London level holds the Mayor of London to account. It has a call-in procedure and can question the Mayor, but I do not see where that function lies in the Greater Manchester model. I was pleased to hear the Secretary of State say that he expects the call-in procedure and key procedures on cabinet decisions at local government level to apply to the mayoral model for metro mayors, and I look forward to him fleshing that out.
Part of the problem with a combined authority—certainly the Greater Manchester model—is that each of the 10 council leaders in Greater Manchester will have an executive portfolio. They are the Executive, and there is nobody to hold them to account. There is no clear process to call in cabinet decisions that affect one or more metropolitan districts in Greater Manchester.
Barbara Keeley
My hon. Friend is making excellent points, as did the hon. Member for Bury North (Mr Nuttall), with whom I found myself in agreement for the first time in my 10-year parliamentary career. The key point is the lack of accountability, which will not be improved in the ways we are looking for. Transport for Greater Manchester has been doing a major infrastructure project, and my constituents are at the end of their tether about the lack of accountability. They and I do not know who to go to, and it has been a disaster. My hon. Friend’s point about joint bodies is right.
Andrew Gwynne
I am glad my hon. Friend mentions Transport for Greater Manchester. One of the functions that will be passed to the mayor is transport and the regulation of the bus network. I very much welcome and look forward to that. I have to say, however, that I hope it is done in a better way than some of TfGM’s current franchising arrangements. We have a deregulated bus system, but one area over which TfGM has responsibility for setting a network is school buses. Just this term, we have the bizarre situation whereby TfGM has awarded the school bus contract for Fairfield school—where, incidentally, my daughter studies—to Stagecoach for the mornings and Belle Vue buses for the evenings, and neither will accept the other’s tickets. TfGM has set that contract and I think it is absolutely barmy. Quite frankly, if it cannot get it right with a school bus service I really worry about its capacity to set the whole network in Greater Manchester. I therefore hope we get better accountability and decision making.
On devolution of health, my one concern is this: who is ultimately accountable for the NHS in Greater Manchester? It is not clear from the memorandum of understanding signed between the Association of Greater Manchester Authorities and the Government. The mayor seems not to be part of that memorandum at this stage and I hope very much that that is reviewed. If I were an NHS provider in Greater Manchester, to whom do I look to make the decisions? Is it NHS England, the combined authority, the mayor, or am I looking in all directions? That lack of clarity really needs to be sorted out, so we have clear levels of responsibility.
William Wragg (Hazel Grove) (Con)
I am grateful for the opportunity to speak on the Bill, and like several before me, I do so to highlight specific reservations that if left unaddressed could lead to significant problems on the road ahead. I wish to speak candidly about these proposals and urge improvement while there is still time. I also speak on this matter with a degree of direct experience of local government within Greater Manchester, having served as a councillor on Stockport borough council prior to being elected to this place.
Speaking as a former councillor, I firmly believe in strong and accountable local government, and believe that many services and powers can best be decided on, provided to and voted on geographically close to the people they affect. Too often, Westminster is seen as too remote or out of touch to do an effective job in that regard. To this end, I believe that appropriate powers should be devolved to local people where they are clearly of benefit to, and demanded by, local people. I am sure that this is what the authors of the Bill intended at its inception, as well as to deliver on a manifesto commitment to “devolve powers and budgets” in order to deliver local growth. In its current form, however, I feel that in places it falls short of this aim and in other respects goes too far. It also raises important constitutional questions about which I am currently uneasy.
The Bill would enable the creation of elected mayors for combined local authorities to exercise budgets and powers relating to transport, housing, local business, skills, health and in some cases policing and planning. These powers will be both drawn up from constituent local authorities and drawn down from central Government, and in the case of Greater Manchester, would result in a command of a portfolio in excess of £6 billion a year. This makes the new Mayor, and others to follow, the most powerful politicians in England outside Westminster and Greater London. It is right, therefore, that such a post should be chosen by, and answerable to, the people.
The Bill proposes a system for electing this new Mayor in 2017—you can’t say fairer than that. However, colleagues from outside Greater Manchester—and, I dare say, a few people who live in Greater Manchester—may be surprised to learn that although the Bill is only having its Second Reading today, this new Mayor of Greater Manchester is already in place and has been in office for four and a half months. At the end of May, the interim Mayor was appointed by a handful of councillors—the leaders of the 10 metropolitan boroughs of Greater Manchester. The successful candidate was Tony Lloyd, the Labour police and crime commissioner for the county. His opponent was Labour’s Lord Smith of Leigh, himself the leader of Wigan council. Neither candidate published any manifestos, did any campaigning; made any public appearances or answered any questions from voters or journalists. The decision was taken at a meeting held in private without any public involvement. The only hustings were behind closed doors at four events where colleagues of the two men—fellow Greater Manchester politicians—could ask questions, and even those had to be pre-submitted in writing.
It appears, sadly, that the democratic revolution that the Bill is meant to create does not at this stage involve much democracy. Happily, however, that point was not totally lost on the interim Mayor himself. As quoted by The Daily Telegraph in May, he said:
“There is no sense that what we're delivering for the people of Greater Manchester is owned by them and believed by them to be in their interests, and we’ve got to change that.”
How we are to “change that”, however, is not clear. Unlike in London, there will not be an elected assembly holding the interim Mayor or his elected successor to account. Unlike in London, there will be no statutory public question times, where anyone can turn up and ask the Mayor a question. Unlike in London, almost nobody in Greater Manchester even has the faintest idea of what is happening.
Important questions are still to be answered. How powerful will the new mayors be in relation to their boroughs or in relation to Members of Parliament? Will the Secretary of State be able to confer more powers on mayors at a later date? Will this require further legislation? Will those in this House or local councils, or even voters, get the opportunity to support or resist these future transfers? What are the safeguards against metropolitan district powers being transferred to the elected mayor? Is there any provision for these councils to have a mechanism whereby they can withdraw powers without penalty? Can we include strengthened safeguards for metropolitan districts to have the power of veto?
Barbara Keeley
I am very interested in the hon. Gentleman’s speech. If he is against the imposition by his Government of an elected Mayor on Greater Manchester, would he have preferred, in common with some other hon. Members, to have a referendum Greater Manchester-wide on this issue?
William Wragg
The hon. Lady anticipates a future paragraph in my speech; if she will wait with bated breath, she will have her answer.
The questions I mentioned are just the tip of the iceberg of what needs to be addressed and revised in order to make these measures acceptable. So far, the matter of devolution to Greater Manchester and the creation of a directly elected Mayor has been very much distant from the general public. Elected by nobody, scrutinised by nobody, known by nobody, and paid a fortune, controlling an even larger budget, the new interim Mayor carries a distinct air of illegitimacy. Of course, those are just my concerns, speaking as an MP with a conservative approach to constitutional affairs.
As I said at the outset, I am in favour of the devolution of appropriate powers when they benefit, and are demanded by, local people.