Economic Leadership for Cities

Baroness Williams of Trafford Excerpts

Thursday 11th December 2014 Lords Chamber

[Baroness Williams of Trafford (Con)]

My Lords, I thank my noble friend Lord Shipley, who brought forward the debate today, for his work on devolving new powers to our cities and regions. My noble friend was involved in the city deal negotiations and—together with my noble friend Lord Heseltine, who is not here today—he played a key role in helping to secure a number of agreements. I would like to place on record my thanks to him for his crucial role in these discussions. He is a key figure on this agenda, and has been for many years, and it is fitting that he was leading today’s debate.

It is also fitting that the noble Lord, Lord Adonis, is here today. I pay tribute to the work that he has done over the years in getting us to where we are today. He has been very much part of the cross-party approach that has in fact led to this, as has my noble friend Lord Heseltine. This cross-party approach—which has not been talked about much today, but is actually very much seen here today, with all the noble Lords who are from cities and from local government—has enabled some of the big shifts in devolution that culminated in the announcement by the Chancellor in November of devolution to Greater Manchester. I do not think that, without the other parties, this could have happened and I must place that on record.

I must also declare not just an interest in this matter but a very great enthusiasm because, like my noble friend Lord Goddard, I was at the start of what has become the first devolution deal for Greater Manchester, and it is a great pleasure to talk about it today. I pay tribute to all noble Lords who have made their maiden speeches. I am delighted that so many—my noble friend Lord Goddard, the noble Lord, Lord Scriven, and the noble Baroness, Lady Janke—have chosen to make them in this debate. All are from a local government background, which is great.

My noble friend Lord Shipley’s comments were very helpful and very constructive, as were those of many noble Lords. He talked first about not disempowering London. I think this is a crucial point. In the conversations that we were having in local government 10 or 15 years ago, we did have a bit of a tendency to whinge about how much London got and how we were so badly done to. I think the narrative has moved on in a far more mature way, to be not about how much London has got and how much it has grown—because, actually, that bodes well for all of us in this country—but how cities outside London can punch above their weight in terms of progressing growth and unlocking their growth potential. I think that was a very good point to make at this stage.

Many noble Lords, including my noble friend Lord Shipley, have talked about not creating city-states and about the link with the rural areas and the inner cities. As the noble Lord, Lord Adonis, said, we should all collaborate to create a better economic outlook for our country. My noble friend also talked about how this is not just about posting out cheques from Whitehall —if any noble Lord has studied the devolution deal for Manchester, that is very clear. It is based primarily on a proposition to government about growth, based on making better use of the funding that would be coming down to Greater Manchester anyway. It is about not just using it more efficiently but getting to the point where city regions like Greater Manchester are not recipients of public funds but actually become net contributors to the Treasury.

This is very much about accountability. Several noble Lords have asked, “Do we want a mayor? Do we have to have a mayor?” What I think the Government expect is a very clear accountability and leadership role. Certainly, in Greater Manchester, the advent of a mayor in 2017 is not going to create another layer of government. It was very clear that that was what Greater Manchester did not want, and in fact the Government did not want to create another layer of bureaucracy but to enhance what was already there, to create clear leadership.

My noble friend Lord Shipley also talked about underperforming cities. The figures are stark when one compares the different regions of this country with the south-east. The north-west is the second most productive region outside the south-east, but its productivity lags behind by some £30 billion, and that figure is not shrinking, so something does need to be done. This is a radical proposition, but it will be done by increment. We hope it will help to enable areas outside the south-east to punch above their weight and to unlock their potential to do so and to shrink that gap.

My noble friend also asked about the government commitment to devolution to cities. I do not think there needs to be any greater demonstration of this Government’s commitment to devolution to cities, certainly in starting with Greater Manchester. I do not think that, by this time next year, every single city in the country will have a devolution deal; there needs to be a step-by-step process where this agenda is advanced. My noble friend also talked about the pace quickening. I would like to see a sort of point of no return, whereby—a hopefully successful—devolution to Greater Manchester paves the way for other cities and, indeed, rural areas to follow.

My noble friend also talked about responsibilities—I think we have covered this—and also about functional economic geography. Certain things have to be done at scale and across local authority boundaries. In fact, that already happens, as it did with the regional development agencies with things like transport. It is very difficult to deal with transport in a single local authority area, because it transcends authorities and authority boundaries. He also talked about Newcastle’s success and introduced what for me is a new term, “the boomerang Geordies”. I may be one of them, because I left Geordieland 30 years ago; I may return after my retirement—I do not know.

My noble friend Lord Lyell talked about his walk through Liverpool in November 1967 and about the renewal that it has enjoyed. He talked in particular about the port and the waterfront. I declare an interest, which is outlined in the register, in that I was executive director of Atlantic Gateway. There is no doubt that the recent developments of the superport in Liverpool, which is being developed in response to the expansion of the Panama Canal, will provide a fantastic post-Panamax terminal that will be able to receive those massive vessels that will cross the world. It will enable round-the-world shipping again and a huge potential in logistics and distribution and, going back to some of the papers that have been produced in the last few months, it will very much enable those east-west links to be taken forward.

My noble friend also talked about private sector employment. He mentioned Halewood and the Range Rover Evoque; if he has been there recently, he will have seen them all lined up, waiting to be shipped off. I understand that you now have to wait six months for a Range Rover Evoque, such is the demand for them. However, it also has such great potential to revitalise that area of Liverpool and indeed the whole Liverpool city region.

My noble friend also talked about the Liverpool waterfront, which is the most wonderful asset—Liverpool is so lucky. As somebody—I think it was Noel Gallagher —once said, “Manchester’s got everything apart from a beach”, and it is true. Manchester has plenty of assets, but Liverpool has that beautiful waterfront. He also talked about governance. Here I pay tribute to Mayor Joe Anderson, who has shown such strong leadership in Liverpool, and to how Liverpool and Manchester work so brilliantly together to take forward that whole agenda for growth in the north-west.

The noble Lord, Lord McKenzie, talked about not allowing the Treasury to stymie progress. The proposition between local government or groups of local governments and the Treasury has to be crystal clear so that there is no room for manoeuvring as regards what was promised and what was promised to be delivered. As far as I know from Greater Manchester, which was the first deal to be done, the expectations and the expectations of the outcomes are very clear. The noble Lord also talked about how local authority cuts hit the poorest most. In fact, as I said in answer to a question the other day, the bottom 10%—in terms of the most deprived local authorities—receive on average 50% more money, so I must disagree with him on that. He also asked whether any area will be allowed devolution. There is a challenge to groups of local authorities to put forward propositions to government, and I think that the Government do not rule anything out as regards what they want to see put before them. As far as I know, there is no bar to propositions going to government.

I come to my noble friend Lord Goddard. I would say that we were “partners in crime”, but I do not mean that. We served on the Association of Greater Manchester Authorities for some time, both as deputy leaders, and we led the journey to become a combined authority that took place in 2011—I had gone by then, but he was still there. In his very amusing maiden speech he also talked about going to the wrong Benches. I nearly did that, but realised my mistake when I did not recognise any of the faces on the Labour Benches. He talked about the collaboration we enjoyed. That collaboration, which was mentioned by the noble Lord, Lord Adonis, and other noble Lords, has been absolutely essential to our getting where we are today. We would not be here if we did not collaborate.

Another noble Lord made a very good point, which I want to bring out. I think it was the noble Lord, Lord Graham of Edmonton—

[Lord Graham of Edmonton]

Yes, it was.

[Baroness Williams of Trafford]

It was, and there he is. He talked about a common purpose, and having sometimes to swallow the fact that you do not get everything that you want. That has been key to how we have worked together. If there was ever a handy tip I could give local authorities that wanted to achieve devolutionary status, it would be that: collaborate, co-operate, allow for the fact that you might have to compromise slightly, but you will get there in the end.

My noble friend Lady Eaton talked about skills and about local areas being best placed to respond to local need. That is crucial in devolution deals, and it is interesting that skills were mentioned in the first devolution deal we got. If local authorities do not engage both with employer need and therefore with those learning institutions, those skills will just not be there and we will have to import them from elsewhere, whether that is from home or abroad.

I am very conscious that I am running out of time and that I am not even half way through what I wanted to say. The noble Lord, Lord McFall, I think, made a point about the Glasgow and Clyde Valley city deal, which I think is one of the largest ever under the city deals—we wish it well.

I pay tribute to my noble friend Lord Scriven’s maiden speech. It was uncontroversial, coming from a controversial man, as he promised us he is, and a young man—you sometimes feel very young when you come here. He mentioned the Sheffield city deal, which we wish well.

I will just try to pick up on some more points. My noble friend Lord True talked about avoiding faddish political structures in bringing forward devolution. I totally agree with that; to come back to a point I made earlier, Greater Manchester was very much against doing that—I realise that I am now completely out of time. I thank noble Lords who have taken part in this debate—

[A noble Lord]

Two more minutes.

[Baroness Williams of Trafford]

Oh, I have two more minutes.

I totally agree with that, and in fact, Greater Manchester was very clear that it did not want a layering-on of structure, so it has decided to go to the model of having an 11th leader until 2017, when it will elect a mayor, but it will still keep that core of 10 local authority leaders. The noble Lord also asked about the imposition of local structures. That is not true in the sense that, as I have said, it is a proposition to government; whether it is agreed or not will be the result of a dialogue between local authorities. Therefore nothing will be imposed upon anyone unless they want it.

The noble Baroness, Lady Armstrong, talked about being born in Sunderland. I was brought up in Hetton-le-Hole, so we have more in common than she thinks. You could not vote Tory there if you wanted to, because—well, they did not want to. The noble Baroness also talked about the size of the state and asked a crucial question about where we want it to lie. I think that trust has to be given by central government to local government. It is no small wonder that central government have taken what is probably the best and most worked-up proposition forward first. Hopefully, that will lead incrementally to such trust being built up between central and local government. The coalition are a Government who want to decentralise, not to create more state intervention—the noble Baroness clearly does not agree with me there. She talked about the back of a fag packet. This is not the back of a fag packet; it has taken years.

But I realise that my time really is up now. I thank all noble Lords, and I will write to anyone whom I have not answered fully.

[The Deputy Speaker (Baroness Fookes) (Con)]

My Lords, the time allowed for this debate has now elapsed, and I must put the Question that the Motion be agreed.