Cities

Baroness Wilcox Excerpts

Thursday 19th January 2012 Lords Chamber

[The Parliamentary Under-Secretary of State, Department for Business, Innovation and Skills (Baroness Wilcox)]

My Lords, I am delighted to congratulate my noble friend Lord Storey on securing this debate. He started us off with a wonderful picture of his Liverpool—its past, its present and what I know will be its great future. As I read up on his biog, I see that he served that city for many years as lord mayor and as a councillor for 37 years. It was a hugely successful capital of culture, as we have heard from Cardiff, a city that also bid for that role. So who better to speak for Liverpool than the noble Lord?

I hope to answer as many questions as I can. If I am not able to do so, I hope the noble Lord will understand if I have to write. Many people have spoken and, as I go through, I will mention as much as I can. I always have a sharp intake of breath when the noble Baroness, Lady Sharp, stands up to speak because she is so well informed and I learn so much from her. I can never answer all her questions so I know for sure that I will miss out some of hers, but I thank her very much.

England’s cities have always been centres of drive, creativity and initiative. One has to think only of Chamberlain’s pioneering leadership in Birmingham or Brunel’s vision in transforming the landscape of Bristol. As we have heard so often today, England’s cities showcase some of our best talent and innovative thinking. We have made a very good start with centres of expertise such as the new MediaCityUK in Greater Manchester, which will promote the growth of the media sector, and Sheffield’s centre for advanced manufacturing, where such world-leading firms as Boeing and Rolls-Royce are carrying out cutting edge research. I am sure that it is an ambition shared on all sides of the House that we should work together to give our major cities the best possible opportunities to thrive and gain international significance as economic powerhouses in their own right and their own unique way.

My noble friend Lord Shipley spoke of comparisons with the cities of Germany and France. It is always very useful to look at the cities of Europe in particular to see what we can learn from them. The noble Lord spoke of the core cities amendment, which is now part of the Localism Act, and its creation of a historic opportunity.

The Government’s policy towards cities builds on several initiatives already under way to promote local economic growth. Local enterprise partnerships enable civic and private sector leaders to work together to boost local economies, and I acknowledge the excellent work of my colleague in another place, the Minister for Business and Enterprise, Mark Prisk, in driving this agenda forward. Some £765 million has been invested in urban areas through the regional growth fund. Enterprise zones have been created in 24 cities and their wider LEPs, which will generate jobs by reducing barriers to enterprise and providing new fiscal incentives. I am sure we all recognise that the promotion of local economic growth is a fundamental priority at this difficult time.

With 58 per cent of England’s population living in cities—74 per cent if you include the wider commuting area—and 61 per cent of jobs based in cities, or 80 per cent including the wider commuting area, our cities are crucial to driving local growth and have tremendous economic potential. All our cities have their individual strengths, which have enabled them to build strong and proud international reputations over the years. The Minister for Cities and my colleague in another place, the right honourable Greg Clark, has shown his appreciation of local concerns and priorities in the way that he has pursued the cities agenda.

My noble friend Lady Randerson spoke of rebalancing our declining cities and asked what we are doing for them. The Government believe that all cities can improve their local environment for growth. The Government’s approach focuses on three key themes: shifting power to local communities and businesses; promoting efficient and dynamic markets; and focused investment through the regional growth fund and enterprise zones. The Government’s approach to cities will allow local leaders to identify their own priorities and grant them the powers to drive local economic growth in the way that they think best. As my noble friend Lord Storey said, this will be based on unlocking investment and funding, devolving power—yes, certainly that—and good city government.

On business rates, I agree with my noble friends Lady Eaton and Lord Shipley that the Government’s plans to localise business rate revenue create a strong incentive for growth. We are committed to making this incentive as strong as possible, while ensuring fiscal sustainability.

We can expect to see a fundamental shift in the relationship between national government and the cities, starting with a genuine transfer of power. The provisions set out in the Localism Act provide a concrete example of the Government’s commitment to transferring power to the local level.

Let me respond here to my noble friend Lady Randerson on the green investment bank. It was a good try, I thought. As I am sure she will be aware, a clear process has been set out for bidding for the green investment bank location. Cardiff will be able to apply to host it. I am sure other noble Lords will be keen for their local cities to apply, too. However, I commend her for taking the opportunity today to have a go for Cardiff. Someone should open a bottle for her when she gets home tonight.

As my noble friend Lady Sharp noted, evidence suggests that successful decentralisation will be a route towards local economic growth. We share her concern to see a radical change in the power held at local level. My right honourable friend the Minister for Cities and the Deputy Prime Minister launched the document, Unlocking Growth in Cities, on 8 December. The Deputy Prime Minister spoke on this occasion to encourage cities to be as ambitious as possible in engaging with this agenda. City region leaders will negotiate bespoke deals with the Government, which will give them the capability to do the things they want to do in their own way.

As has been referred to by many noble Lords, we are starting with the eight core cities—the largest cities outside London—and their surrounding areas as represented by the local enterprise partnerships because they have great economic potential which has yet to be fully realised. I say in response to the question asked by the noble Lord, Lord Storey, that deals will be made available to further cities in due course. I can say no more than “in due course” at this stage.

I reassure my noble friend Lady Eaton that our work with Leeds city region includes Bradford and, of course, other towns and cities in that region. I say to the noble Baroness, Lady Randerson, that Cardiff’s policy is a devolved matter. As she well knows, it is for the Welsh Assembly to take forward policies to boost growth in Welsh cities, including Cardiff. I strongly support that. I agree that it is important for this Government to ensure that they engage with the devolved Administrations. I know that my right honourable friend in another place, the Secretary of State for Business, met his Welsh counterpart in December to discuss these very issues.

As a result of the deals, cities will have greater freedoms to invest in growth, the power to drive critical infrastructure development and new tools to help people in their area get the skills and jobs that they need. My noble friend Lady Eaton talked about skills and transport in cities. I reassure her that all our discussions with cities include new measures in relation to skills and transport.

After all, a deal is a two-way process. In return for granting cities new powers and freedoms, we expect them to demonstrate strong, visible and accountable leadership and effective decision-making structures. City leaders will need to work across their economic footprint with representatives of the local enterprise partnerships to attract skilled workers, build infrastructure and boost innovation in order to create vibrant urban environments that people want to work and live in. The Government are committed to working closely with cities in the months and years ahead to help them achieve these goals.

The noble Baroness, Lady Sharp, referred to apprenticeships. We share the interest in increasing apprenticeships. As she will have seen, the Government have put city apprenticeship hubs on the menu of options for cities to consider, as set out in the Unlocking Growth in Cities document that we brought out on 8 December.

The noble Lord, Lord Liddle, talked about austerity and the RDAs. I note his concern. The coalition is working to get the entire UK economy back on track. These measures show that the Government are committed to rebalancing the economy and ensuring that all cities and, indeed, the whole country, can fulfil their potential. The noble Lord also asked about the missing bits of the menu. The menu is illustrative, as the Deputy Prime Minister made clear. We are ready to match the ambition of the “asks” that cities put to us, but it is up to them to decide what their priorities are. This is what this is all about—making sure that the cities themselves will be able to do deals which allow them to run themselves as they see fit to help them become more successful.

The noble Lord, Lord Liddle, also asked about mayors, LEPs and metro mayors. The Government have set out their position on elected mayors. They offer an opportunity for stronger localised governance, but it is for local areas to decide on the governance structure that best suits them. That is something I am sure the Opposition will gradually get used to—the amount of times that this coalition Government will devolve power down to the people who we feel are best suited to deal with local issues.

Success in all this will mean empowered local leaders able to drive real change by looking outwards to the private sector rather than upwards to the Government. Success will mean new partnerships between civic leaders, businesses and local communities, creating further opportunities for investment and growth, and enabling cities to shape their own economic destinies. Success will mean more jobs, better services and an improved quality of life for local people.

In the words of my colleague in another place, the right honourable Greg Clark, in the document Unlocking Growth in Cities, we,

“look forward to helping our cities forge a bright future even greater than their proud histories, matching their proud heritage with a busy and prosperous future”.