Devolution and Growth across Britain

Bridget Phillipson Excerpts

Wednesday 3rd June 2015 Commons Chamber

[Mr Umunna]

I agree with my hon. Friend, who, of course, does not have an interest in being the Lord Mayor of London, but may be looking for another post in the short term.

[Bridget Phillipson (Houghton and Sunderland South) (Lab)]

The Government insist that areas such as the north-east can have further devolution only if they have a mayor. Does it strike my hon. Friend as a strange anomaly that so-called devolution should insist on one way of doing things and deny local people a say on whether they want a mayor in the first place?

[Mr Umunna]

I completely agree. I will come specifically to that point in a moment.

We have talked about some of the examples of where the approach works. Chicago’s Mayor Rahm Emanuel has turned the city into a hotbed of innovation that attracts the best graduates. A good European example is Eindhoven in the Netherlands. It has rebooted its innovation and, as a city comprising only 4% of the population, now generates 37% of Dutch patents.

My hon. Friend the Member for Swansea West (Geraint Davies) mentioned the example from Wales. Many of our colleagues in local government are doing pioneering, innovative stuff across the UK. In Oldham, Labour has introduced enterprise hubs in every secondary school; in Plymouth, it is working with housing associations to build 1,000 homes; in Leeds, it is setting up an apprenticeship brokering service for small and medium-sized businesses; and in Lambeth, where I am, it is using council buildings to provide a home for small businesses. We need to promote such ways of working if we are to address the ongoing structural imbalances in our economy. We may have achieved 2.8% growth last year, but our economy is still seriously imbalanced. We need look only at the Office for National Statistics regional gross value added figures to see the uneven distribution of growth. The Queen’s Speech talked about the Government’s desire to build a northern powerhouse, which was mentioned by my hon. Friend the Member for Hackney North and Stoke Newington (Ms Abbott). In truth, we should seek to make every single region a powerhouse, not just have the northern powerhouse.