Amendment of the Law

Debate between Derek Twigg and George Howarth

Thursday 19th March 2015 Commons Chamber

[Mr George Howarth (Knowsley) (Lab)]

The hon. Member for North Dorset (Mr Walter) said that he was still waiting to hear what Labour’s proposals were, but if he had taken the trouble to attend the opening of the debate, he would have heard from my right hon. Friend the shadow Chancellor precisely what we intend to do.

The shadow Chancellor’s opening speech contained many quotes from Shakespeare. It is a little known fact that there is a strong connection between Shakespeare and Knowsley. The sixth Earl of Derby was a patron of William Shakespeare, and “A Midsummer Night’s Dream” was written for his wedding and performed before Elizabeth I in Knowsley hall, so I thought a quote from “A Midsummer Night’s Dream” might be appropriate. Earlier today the Chief Secretary to the Treasury sought to put some distance between the Liberal Democrats and their coalition partners, and I think the quote might sum that up:

“So we grew together,

Like to a double cherry, seeming parted,

But yet an union in partition,

Two lovely berries molded on one stem”.

That perfectly sums up how the Liberal Democrats cannot realistically distance themselves from everything that has gone on over the last five years.

My hon. Friend the Member for Halton (Derek Twigg) made a very good speech, including a passionate plea on local government finance and how that has affected his constituents during this Government’s time in office. He made some important points that bear repetition.

[Derek Twigg]

I am grateful to my right hon. Friend for his reference to my speech and the issue of local government finance. Does he agree that the scale and viciousness of the cuts to the most deprived authorities in England beggars belief? Merseyside has suffered particularly badly.

[Mr Howarth]

My hon. Friend is absolutely right. Knowsley has had the worst cuts in Government grant this year, and over the period of this Government the amount of Government grant per household in Knowsley will have been reduced by £1,500, yet it is one of the poorest, most deprived local authorities in the area.

The main point I want to make is to do with economic growth and the structural problems in our economy. The key point is that we have an unbalanced economy; economic growth is overly dependent on asset inflation and consumer demand. As a consequence, over recent decades the balance has shifted away from manufacturing and towards the service and retail sectors. This is well illustrated by the decline in manufacturing as a proportion of gross domestic product. In 1970, manufacturing accounted for about 30% of GDP, but in the intervening period it has declined to some 10%. For an area such as Knowsley, which has a strong manufacturing base, that is bad news.

There is of course a complex set of reasons for that, but two factors are specifically relevant, the first of which is housing policy and our national obsession with owner-occupation, which distorts any attempt to have a rational housing policy. In the north-west, between 1997 and 2013, average house prices increased from £51,000 to £109,000, yet in the same period wages increased from £309 a week to just £460 a week. In the same period, local authority waiting lists have grown by more than 90%. So, despite the various incentives for owner-occupiers, saving for a deposit and securing a mortgage is becoming an increasingly impossible goal.

I welcome the Chancellor’s introduction in the Budget statement of a new Help to Buy ISA, which will help people to save towards a deposit. Superficially, that is an attractive way to help them get a foot on the property ladder, but the real problem is that it will not help those on lower incomes. A first-time buyer currently needs an income of about £36,000 a year, which is way beyond what many of my constituents earn, so even with that scheme, they will not be able to get on the property ladder.

I am pleased that my party is committed to working towards a goal of building 200,000 homes a year over the next five years. Welcome though that is, it still will not make up the shortfall. Although the sale of council houses—the hon. Member for Angus (Mr Weir) referred to this; I may have misunderstood him—is a good thing from the point of view of the individual buyer, is it good public policy? The National Housing Federation has called for a review of that policy, which I support. We need to know how that policy will contribute to the building of more properties, which needs to happen if we are to bring prices down.

Local Government: Combined Authority Orders

Debate between Derek Twigg and George Howarth

Tuesday 18th March 2014 Commons Chamber

[Mr Howarth]

The hon. Gentleman makes a good point, but I do not agree with him. Even if he is right, is the fact that he did not agree with the specific route a reason to scupper the whole project? By saying, “If I can’t get the route I want, we won’t have a tram at all,” I think he has made the point I am trying to demonstrate. My criticism of how we have responded in the past is supported by and encapsulated in his intervention.

[Derek Twigg (Halton) (Lab)]

I thank my right hon. Friend for making some very important points. I know the history well. There is now a much greater will in the Merseyside authorities to work together and this is probably an opportune time to do this, because there is a realisation that we have to work more closely together on strategic transport and economic issues.

[Mr Howarth]

My hon. Friend is exactly right. That is the case I am trying make, although perhaps not as pithily as he has. I will try to develop the argument, but before I move on I want to say that I am particularly indebted to the chief executive of Knowsley borough council, Sheena Ramsey, and her staff for the briefing they have provided for this debate.

I want to make a few points about the proposals as they stand. How can I put this? The glass is half full, and I want to explain why it is not entirely full. It is important that the combined authority will have responsibility for strategic decision making on economic development, transport, housing and employment and skills. It is time that we as a city region had that focus, which we have not always had, or even been able to have, in the past. My briefing states that the combined authority will

“be focussed entirely on strategic governance to facilitate economic growth.”

As the Minister said, that is an important new departure and one that should be welcomed. Those are the potential themes and powers, and I hope that the governance system will work.

That is why I am in favour of the order and why, in the unlikely event of a Division, I would vote for it. On the Halton, Knowsley, Liverpool, St Helens, Sefton and Wirral Combined Authority Order 2014, paragraph 8.11 of the explanatory memorandum states:

“All of the statutory consultees, the Local Enterprise Partnership and the neighbouring local authorities all support the establishment of the Combined Authority.”

That is fine; it is even a breakthrough in terms of our history. Paragraph 8.12 goes on to say:

“However, the statutory consultees asked for the name to be changed from that which was proposed in the consultation (The Greater Merseyside Combined Authority). Their responses were in support of a name that included the word ‘Liverpool’, rather than ‘Merseyside’. The six constituent authorities and the Local Enterprise Partnership stated their preference for ‘Liverpool City Region Combined Authority’. Having taken account of all of the comments made”—

this is ludicrous—

“the Government has decided the name in the Order, to which the statutory consultees have now all consented, of ‘the Halton, Knowsley, Liverpool, St Helens, Sefton and Wirral Combined Authority’—

a name that really rolls off the tongue. It will be instantly forgettable for anybody who hears it.

I do have a serious point to make. The Secretary of State champions the cause of localism—I have no reason to disbelieve him—as, indeed, does my party these days. For central Government, localism means being prepared to let go a little and to say, “Well, if that’s what local authorities want to do, that’s their decision, and if they get it wrong, they’ll be punished by the electorate.” That is the essence of what localism is all about. I am sure that the Minister will not confirm this, but my information is that the person who decided that the combined authority could not be called the Liverpool city region was none other than the Secretary of State. Why on earth did he want to interfere with the naming of the new combined authority and, having decided to interfere, why did he come up with a name such as the Halton, Knowsley, Liverpool, St Helens, Sefton and Wirral combined authority?

We could argue that the name is a very accurate description of the areas concerned, but I honestly believe that this is a lesson for us all, and certainly for those in government or who aspire to be in government. If we are serious about localism, we should let local authorities make the wise decisions of which they are capable, and not tell them what to call a new combined authority. It seems to me to be an utter waste and, frankly, a misapplication of the time available to the Secretary of State, who should be getting on with more important things than interfering with this name.

A slight problem that has been a source of some controversy in my part of the world in recent weeks is that, because there is a directly elected mayor in Liverpool—Joe Anderson—the governance system is potentially asymmetric. The fact that one person is directly elected as the mayor of the city of Liverpool while the other local authorities all have leaders might make the system asymmetric. There has been a bit of a spat in the local media about who will chair the combined authority, and whether the elected mayor should do so. I do not want to interfere in that discussion. I have nothing but praise to heap on the shoulders of Joe Anderson, the elected mayor of Liverpool, who is doing a good job, but the fact is that he has not been directly elected as the mayor of Knowsley, Halton, St Helens, Wirral or Sefton, which may create a bit of asymmetry in the system.

Ultimately, my solution would be to have an elected mayor for the city region in the long term. That would mean that there was a direct relationship, on such issues as transport, between the person elected by the whole city region, and the powers available to them and their accountability to a wider electorate. We cannot allow a mayor elected for one local authority to acquire by accretion—I am not saying that that is Joe Anderson’s intention, because I know that it is not—powers in areas of which they were not elected to be mayor, which is a potential problem.

[Derek Twigg]

That point is very important. Most people would recognise the need for and be sympathetic to having the kind of transport and economic strategy that could be developed by the combined authority in a city region, but they clearly do not want the individual local authorities that they elect to lose powers to a wider body. There is certainly no support for that in my constituency.

[Mr Howarth]

Frankly, there would be no support for that in Knowsley, St Helens or Wirral. The public do not want the powers that their local authority has to be passed on to some other body. That is not what is proposed. They would also not want those powers to be passed on to a mayor who has been elected by one area, but not by the wider city region. I repeat that I mean no criticism of the individual concerned, who is doing a good job. It is just that there are two systems operating within the one city region.

I think that we will eventually reach the answer that I have put forward. In fact, as the Minister of State, Cabinet Office, the right hon. Member for Tunbridge Wells will confirm, we could have gone down that route on this occasion, but that was not the decision that the local authorities made. At one memorable meeting, I predicted that that would be the case, based on past form. However, those problems can be confronted in the fullness of time and are not barriers to going ahead with the order.

I am happy to support the order and to wish the new, inelegantly titled city region all the best for the future. I hope that it will do the job that it is billed to do, because we desperately need that in our city region.