Colleen Fletcher
Main Page: Colleen Fletcher (Labour - Coventry North East)Westminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
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A strategic economic plan is needed at a regional level, and I have never disputed that. The big fear is that the other functions of local authorities could be taken away. The police, the fire service and that sort of thing are dealt with at the regional level at the moment. I have no problem with strategic or economic planning—there has to be some sort of plan—but the role of local authorities should not be diminished in relationship to that, nor should they lose any powers.
We are told by the Government that substantial further devolution of power to combined authorities must be accompanied by the introduction of an elected metro mayor. It is not clear, however, which new powers would be available to those areas that choose to have an elected metro mayor and which would be available to those areas that choose to not have one. Does my hon. Friend agree that we need clarity from the Government on that?
I would, but we are all limited by time, and the hon. Gentleman, whom I know very well and share many interests with, will have time to make his own speech in a moment.
Coventry is a proud city in its own right. I have told the House before how some decades ago, when I was first selected as a candidate, my party chairman took me to one side and said—I had just been selected, Mr Brady, and you know what local parties can be like—“Now Geoffrey, you have to understand one thing.” I was fairly new to Coventry at the time. He said, “The most important point you have to understand as a Coventry MP is that there is only one good thing that comes out of Birmingham. Do you know what that is?” I had no idea. I suggested cars, machine tools, motorbikes and so on. He said, “No, no. It’s the Coventry road.” That was a silly, parochial approach, and we are no longer— thank God—bound by those sorts of considerations. I would certainly never dream of giving that advice to anybody who might succeed me in decades to come. However, Coventry is a proud city and I believe that Wolverhampton, which has gained city status more recently, feels as Coventry does in many ways.
I will, but I will make some progress first, if I may.
The point that I am trying to make, in a very unsubtle way, is that we have interests, as proud cities representing proud peoples, in a way that perhaps does not apply to Manchester. We also came late to the game and therefore need more time than Manchester. That does not mean we should not get on with it, and I must say that under the dynamic leadership that Councillor Lucas has brought to Coventry, we are running quickly to catch up and she is pushing the west midlands to get going.
However, one thing is clear: what is behind all this. I want to quote from an article in the Coventry Telegraph this week, following the publication of a remarkable document on the west midlands combined authority on 6 July, which makes a very strong case for going down the route of a combined authority for the west midlands. It is a strong case and we should not ignore it at all, and I am sure that Coventry is right in on the act and pushing to develop it. However, we want to say one or two things to the Government about what is lurking behind all this. Let me quote from the article, which deals with the issue of the metro mayor—the first big thing we have to deal with. The article states:
“The issue has left an unsightly rash on the face of the newborn WMCA, and the sooner it is treated, the better.”
The article goes on to say that Coventry and Birmingham rejected the idea very decisively as recently as a couple of years ago and makes the case that we are looking at the re-imposition of the same formula next year. It could be as early as that, and it just does not stack up. It is not what the people will go along with. We have to get the democratic agreement of all concerned. What Councillor Lucas and we are all saying is: could we just have time?
The Chancellor properly said—I realise we are time-constrained, Mr Brady—that for the moment he thinks it is the best way forward. He made that clear again in the Budget this week, emphasising that he believes that elected metro mayors are the best—if not the only—way forward. However, he is open to us putting our proposals to him, and he has very kindly agreed a meeting in principle with the Coventry Members, so that we can explain Coventry’s circumstances to him. We should take him up on that and put the case for a transitional set of arrangements to him.
We will accept the mayor in principle—I am sure we can do that—but let us have a transitional period in which look at how the thing would work and at balance sheets and financial responsibilities. How will the different units be brought together, in terms of their balance sheets? They are all separate accounting bodies, with immense responsibilities. I am no expert on local government finance or organisation, but I can imagine that the difficulties are enormous when a tier of government above is responsible for some of the funding. The importance of skills was rightly emphasised by my right hon. Friend the Member for Birmingham, Hodge Hill, and there is also transport and other areas where real money is coming to a new authority or a new power—a new channel for it.
The most important thing is the need for properly organised transitional arrangements. We are giving that a lot of thought—sadly, I do not have the time to get into that today—and we will put those proposals to the Chancellor. We should say, “We don’t want to go down the 1970s route again. Give us time. We are going in your direction and we are catching up fast. Just bear with us.” We can put that to him when we meet.
It is a pleasure to serve under your chairmanship, Mr Brady. I congratulate the hon. Member for Coventry South (Mr Cunningham) on securing this debate. Members have raised a number of important points about the future of local government and our plans for devolving functions and powers to those who seek them.
In his speech to the Local Government Association annual conference last week, the Secretary of State for Communities and Local Government clearly said that
“local government has the ability to transform the prospects not just of our cities, towns, counties and districts, but of our whole country; that powers annexed by central government over decades should be returned to local government; and that the time for that change is now.”
We have made it clear that that is the case. The Cities and Local Government Devolution Bill will, once enacted, establish the primary legislative framework to allow unprecedented devolution across the country and reverse 150 years of centralisation. Over the years, powers and functions have become more centralised. I am sure we can agree that that is not sustainable and that we must re-engage with our towns, cities, councils, districts and urban and rural areas. We began that process in 2010 through our decentralisation programme. We supported the development of local enterprise partnerships, concluded city deals with 27 cities and took £12 billion out of Whitehall and put it in the hands of local people through growth deals, thereby giving local areas more control to drive their own growth.
The devolution deal agreed with Greater Manchester will also give local people greater control over their economy and powers over transport, housing, planning and policing. Greater Manchester has agreed to a directly elected mayor, who will be responsible for exercising key functions such as housing investment and strategic planning. The directly elected mayor will also exercise police and crime commissioner responsibilities for the Greater Manchester area and chair the combined authority.
The hon. Member for Solihull (Julian Knight) said that, if substantial resources and money are devolved to combined authorities, one person, an elected metro mayor, should be accountable. What is the tipping point? A combined authority will be forced to introduce an elected metro mayor after taking on what additional powers?
The important point that a number of right hon. and hon. Members have missed is that it is for local authorities and areas that seek devolution to make proposals. The amount of democratic accountability that the Chancellor seeks will be determined by an area’s ambition, and the deal going through at the moment is an example.
Concerns have been expressed about what is seen as the imposition of metro mayors, to which the hon. Lady alludes. In 2012, a number of cities, including Coventry, voted against introducing a directly elected mayor. I wish to make it clear that, to be successful, decentralisation must be about not only devolving powers and budgets but having the necessary leadership in each place, which brings me back to my point. We need governance and accountability so that powers can be exercised properly and effectively, for the benefit of all.
Mayoral governance is an internationally proven model of governance for cities. Hence, as the Chancellor has made clear, we will devolve major powers only to cities that choose to have an elected metro mayor, but the Chancellor has also made it clear that we will not impose a metro mayor on anyone. Our Bill therefore provides for metro mayors, while also making provision for devolution and governance changes in circumstances where a metro mayor is not seen as an appropriate governance arrangement. The Bill allows for local governance to be simplified, but only with the consent of affected councils and the approval of both Houses.
The crucial point is that all the Bill’s provisions are to be used in the context of deals between the Government and places; nothing is being imposed. I reiterate that where there is a request for the ambitious devolution of a suite of powers to a combined authority, there must be a metro mayor, but no city will be forced to take on those powers or to have a metro mayor, just as no county will be forced to make any governance changes.
In that context, I congratulate the seven metropolitan councils of the west midlands on the launch of their statement of intent to establish a combined authority, which is the first stage in a process of consultation and engagement with other councils in the area. We welcome that development, and we are determined to hand as much power as possible to places with a clear, strongly led plan. With their proposal, the seven west midlands councils are showing what can be achieved by working together to bring greater opportunity to their area. We look forward to working with them as they develop their proposals.
In yesterday’s Budget—this answers a point raised by several hon. Members—the Chancellor strongly welcomed the statement of intent for devolution in the west midlands, which he sees as a proposal for a strong and coherent west midlands combined authority. He has shown great ambition for the midlands, and he sees the “midlands engine” as an integral part of the Government’s long-term economic plan.