Devolution (East Anglia)
Debate between Clive Lewis and Lord Jackson of Peterborough(8 years, 6 months ago)
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Clive Lewis (Norwich South) (Lab)
It is an honour to serve under your chairmanship, Mr Crausby, and a privilege to speak after my fellow Norfolk MP, the hon. Member for North West Norfolk (Sir Henry Bellingham).
When the devolution initiative was first proposed, I had an open mind. Like Councillor George Nobbs, leader of Norfolk County Council, and Councillor Alan Waters, leader of Norwich City Council, I wanted it to work. Lord Heseltine’s devolution report, which was published a little while ago, was quite clear that previous devolution attempts had failed because they were top down. He said that it would be different this time because local areas would write their own deal. That was what was promised, and it was on that basis that many councillors approached the initiative with a good conscience, thinking they could work with it, whatever their political party.
Unfortunately, nothing could be further from the truth. Councillor George Nobbs was a staunch supporter of the initial efforts. He wrote a letter to Lord Heseltine in which he said:
“Like you I have been an enthusiastic believer of devolving power from central to local government all of my adult life. However I feel that I should share with you, not just my views, but those of some of my fellow councillors, and ask for your help…You will know that there is widespread opposition to the concept of an elected Mayor, disquiet about the perceived rush to meet government deadlines and concern about a consultation to be held in July and August of all months. The financial incentives that are dangled in front of us, only to be threatened with withdrawal if there is any dissent, are in any case considered inadequate by many.”
We have to accept that if we are to have real devolution, we need real financial power for our local authorities and communities, which is not on offer in the deal. The past 35 years have seen centralisation by Whitehall and Westminster. In 1979, local authorities raised 75% of their own funding; they now raise less than 20%. The deal on the table goes nowhere near the level of fiscal independence required—a fact that so many councillors can now see. The meagre amount local authorities can raise from business rates was undermined in the most recent Budget when the Chancellor took money from them.
For cities in our region—economic powerhouses such as Norwich, Cambridge and Ipswich—there is little to no incentive for devolution.
Clive Lewis
Of course! I am sorry. How could I forget Peterborough?
Where is the control for local authorities over their own housing revenue accounts? Where is their control over the right to buy or the right to stay? Those would be the most effective ways to allow local authorities to build more of the affordable homes that are so desperately needed by so many people and that are acting as a bottleneck to economic progress.
Ultimately, if we want real devolution, we have to devolve control from central Government, which is increasing, to local government, and give local government the financial ability to do something with it. It is about empowering local authorities and local communities. As things stand, that is simply not happening.