Cities and Local Government Devolution Bill [Lords]

Lord Brady of Altrincham Excerpts

Wednesday 14th October 2015 Commons Chamber

[Mr Graham Brady (Altrincham and Sale West) (Con)]

I am grateful for the opportunity to make a brief contribution so early in this important debate. Let me begin by saying how warmly I welcome the principle that lies behind the Bill. The intention of bringing real power and decision making closer to the people we represent is one that I think almost all of us in this House share. From a Greater Manchester perspective, we must also acknowledge the great prize that lies ahead if we can achieve the proper integration of health and social care, but I emphasise the importance of getting the detail right in the implementation.

I would also like to thank the Secretary of State for the courteous and constructive engagement he has already offered to colleagues who are interested in the Bill, which gives me considerable confidence that we will be able to move forward in a way that delivers the objectives while overcoming the concerns that some of us have. He has also indicated that the Bill will be considered in Committee of the whole House, which is clearly the right thing to do.

I have four broad concerns. The first—the hon. Member for Hemsworth (Jon Trickett) spoke about this at some length—relates to the imposition of the model of governance, which I think is unfortunate. We need to ensure not only that the public generally buy into the principle of devolution and feel that they own the new arrangements, but that the new arrangements bring genuine accountability to governance.

The hon. Member for Worsley and Eccles South (Barbara Keeley) mentioned some of the concerns about the devolution of healthcare. We already have a worrying straw in the wind in Greater Manchester, with the initial reorganisation of hospital services coming before all of this. It has been handled in a deeply regrettable fashion and raised considerable concerns. Certainly, I am deeply concerned about the apparent lack of accountability in the process. Given that some of these issues are already arising, it is timely that we are now looking at them as we legislate and trying to ensure that accountability is in place.

[Barbara Keeley]

It is good that a consensus is being built across Greater Manchester. The hon. Gentleman is right to raise that issue, and I know that Wythenshawe hospital is very concerned about being left out of the equation in that regard, so how these decisions will be made and consulted on in future is very worrying. But there are other concerns as well. Salford was a leader in the integration of health and social care, and my fear is that that will now be set back by having to work across Greater Manchester.

[Mr Brady]

I agree with the hon. Lady. It would be regrettable if, in seeking to devolve power, we ended up taking some decisions further away from people and making it harder for their voices to be heard.

My second concern is about the distribution of powers. I hear my right hon. Friend the Secretary of State’s assurance that this can only be about bringing powers from central Government, but I do not think that is really clear in the Bill, so I would welcome much more clarity as we proceed in Committee. Clauses 8 and 9 make provision for the exercise of statutory functions in relation to an area to be transferred to a combined authority. Clause 5 makes it possible by order for any function of a mayoral combined authority to be a function exercisable only by the mayor. Therefore, I do not think that it is as clear in the Bill that power can move only in one direction as many of us would want to see. We might return to that at a later stage.

My third concern, which was raised with me by my local authority, relates to the possibility that this deal amounts to a one-way commitment. It relates to those local authorities that have made a commitment to the combined authority. The Greater Manchester agreement will place obligations on the local authorities, and certain expectations are being placed on the Government, but there is no mechanism by which the local authorities can hold this Government, or indeed any future Government, to account to ensure that they meet their obligations as part of the deal. I invite my right hon. Friend the Secretary of State to consider whether we might find a way to tighten the provisions and make it clearer that the Government’s obligations will be observed.

My fourth and final concern—in a way, this could provide a solution to all the other concerns—is about what happens if the arrangements do not work. What happens if a local authority reaches the point at which it regards the agreement as a mistake and thinks that the powers have been vested in the wrong place? It is the question of final resort. What are the terms under which a local authority could choose to walk away from a deal? What happens if it says, “This clearly isn’t what we bought into”— possibly a microcosm of a bigger debate that we might have by the end of 2017? It is about a local authority being able to leave a combined authority without penalty.

A deal that transfers spending from central Government to the local level is very welcome, but the mechanism set out in the Bill for allowing local authorities to leave a combined authority is very messy. Rather than the local authority simply deciding to opt out, the combined authority must decide to dissolve itself and then reform with the other authorities that wish to remain. The mechanism makes no provision for ensuring that a local authority can leave on fair terms and without penalty.

[Andrew Gwynne]

The hon. Gentleman makes an important point about how one might unpick the constitutional arrangements of a combined authority. One example is the pooling and sharing of business rates. For instance, if Trafford decided to leave the combined authority, it would be very difficult to unpick that. Another example is the health devolution arrangements.

[Mr Brady]

I am grateful to the hon. Gentleman. These matters will need to be made clearer during the passage of the Bill.

In conclusion, as I said at the beginning of my remarks, I think that the principle behind the Bill—the Government’s evident desire to transfer spending and decision making closer to the people—has very wide support, and I think that few Members of the House would differ from it. I will certainly vote enthusiastically for that principle today, although I anticipate having interesting debates and discussions in Committee. I am grateful to the Secretary of State for the assistance and engagement that he has already offered in that regard.