Cities and Local Government Devolution Bill [Lords]

James Berry Excerpts

Wednesday 14th October 2015 Commons Chamber

[James Berry (Kingston and Surbiton) (Con)]

I support the Bill, as a Member representing a city that has benefited greatly from devolution. The project of devolving powers to a city led by a directly elected mayor has been successful in London, and it is time that it was rolled out across the country, albeit with the flexibility to ensure that it is appropriate for the areas in question. This Government were elected with a promise to

“devolve powers and budgets to boost local growth in England.”

I am pleased to support them in keeping that promise tonight by voting for the Second Reading of a Bill that will provide a framework for further devolution and promote democratic accountability.

The United Kingdom stands out as one of the most centralised countries in the developed world. In Canada the level of taxes controlled at local or regional level is about 10 times higher than it is here, and in Germany it is nearly six times higher. Our position is not only that of an outlier, but also strange, given strong evidence and data that demonstrate that decentralisation is closely associated with both stronger growth and better public services.

English cities have nowhere near the level of local financial control that is experienced by international cities, and their competitiveness is suffering as a result. In the United Kingdom, only London consistently outperforms the national economy. Given the right levels of autonomy and control, cities and regions across the country could outperform it, and could make far bigger contributions to our national prosperity.

Like my hon. Friend the Member for Bromley and Chislehurst (Robert Neill), I am a great supporter of further devolution of powers in London—including powers relating to health—but there is a provision that is not included in the Bill, and that is the devolution of control over local business rates that I was particularly delighted to hear about in the Chancellor’s speech. The current system, whereby business rates are set nationally, collected locally, remitted to the Treasury and then returned, less some, to councils, is terribly inefficient.

Kingston Conservatives and the leader of our council, Kevin Davis, have been pushing for that change since we took control of the council last May, and I have had discussions with my right hon. Friend’s Department since being elected in the same month. As a borough that is seeking to attract business, including the headquarters of Lidl UK and a major new hotel, we could benefit greatly from the devolution of business rates: we could collect and retain more, and use it to benefit local people. I very much hope that Kingston will be included in the first wave of the roll-out of the new measures.

I am delighted to support these further devolution measures, and I look forward to joining the Government in the Lobby.