Amendment of the Law

James Morris Excerpts

Monday 26th March 2012 Commons Chamber

[James Morris (Halesowen and Rowley Regis) (Con)]

I believe that this Budget will support the economy of the black country, part of which I represent, and, in particular, the skilled manufacturing and high-tech industries on which so many of my constituents depend for their jobs. I am especially pleased about the Chancellor’s proposals for an above-the-line tax credit for research and development, about which I wrote to him at the end of last year.

We want to create a high-skill economy. Research and development is a crucial area of activity in my constituency, and at local centres of excellence such as the nearby Aston and Wolverhampton science parks. It is a perverse system that ensures that only those who are already in profit can benefit from the relief for R and D. Switching to an above-the-line tax credit in the form of a payable tax credit for large companies, irrespective of their corporation tax position, is critical to the safeguarding of the R and D that we have locally, and to attracting inward investment in R and D.

There was also good news for the large number of my constituents who work in Birmingham. Many local businesses supporting thousands of local jobs will applaud the £10 million that is to be invested in turning Birmingham into a super-connected city with ultra-fast broadband connections and a high-speed wi-fi service. The announcement came the day after BT’s announcement that it would upgrade the exchange at Cradley Heath in my constituency to support fibre broadband, and I know how much that will benefit local technology firms in particular. I hope that, having announced that funding for super-connected cities, the Chancellor will consider extending the next phase of the scheme further to include city regions such as the black country, so that businesses and residents can gain the full economic and social benefits of ultra-fast internet connections.

The Chancellor’s announcement of £150 million of tax increment financing to help local authorities to promote development has the potential to make a massive difference to our local economies. Having been born in Nottingham, gone to university in Birmingham and run my own businesses, I understand the attraction of focusing on the regeneration of our major cities. However, I ask the Chancellor to ensure that the finance that he announced is available to all local authorities, as areas such as the southern black country desperately need access to such funds if they are to transform the local economy and create the jobs that our communities need.

One of the local authorities covering my constituency has, to an extent, pre-empted the Chancellor’s announcement. Two weeks ago, the leadership of Conservative-run Dudley council agreed to pursue Dudley’s very own council-led local enterprise zone, centred on the Waterfront and Harts Hill areas in Brierley Hill in the constituency of my hon. Friend the Member for Dudley South (Chris Kelly). The council hopes that the project will create up to 10,000 jobs—particularly high-tech and high-value jobs—and will attract a number of major companies.

It was initiatives of exactly that sort that the Chancellor had in mind when he made his announcement on Wednesday. I hope that he, and Ministers in the Departments for Business, Innovation and Skills and for Communities and Local Government, will do all they can to make it easier for local authorities to use mechanisms such as tax increment financing to stimulate growth and development in our towns.

As the BVCA said last week, the measures announced in the Budget

“should make for a more entrepreneurial economy and for a stronger society.”

Those thoughts will be echoed by the many businesses in Halesowen and Rowley Regis that will be assisted, and by the even greater number of people who will benefit from the new jobs that those businesses will help to create.

Living Standards

James Morris Excerpts

Monday 5th March 2012 Commons Chamber

[James Morris (Halesowen and Rowley Regis) (Con)]

It would be fair to say that the Government have had to make a number of very tough choices as a result of the economic and financial situation they inherited from the previous Government. As my hon. Friend the Member for Mid Norfolk (George Freeman) pointed out, this is not a question of the squeezed middle: we are all facing difficult times as a result of the difficult financial situation to which the Government have to face up—and they are facing up to it clearly. At the same time, they are making an effort to balance those tough decisions with decisions that are focused on fairness.

As other hon. Members have pointed out, the decision to provide the means for local authorities to freeze council tax is a measure that assists fairness and helps people on middle incomes who are struggling to keep control of one of the most important taxes they have to pay. Local authorities up and down the country—Conservative and Labour authorities—should accept the council tax freeze as an important component of their budgetary decisions.

As a result of other coalition Government decisions, we are able to live in a low interest rate environment, which is keeping mortgage rates low and allowing householders to continue to function and to continue to live in their homes without fear of repossession. That is a crucial achievement of the Government.

It is right, too, that the coalition Government have the ambition to take people on low incomes out of tax altogether. The Chancellor has taken significant steps in that direction in the recent Budget, and I urge the Front-Bench team to take further steps to take people out of tax altogether.

Although Labour Members seldom mention it, we have seen a substantial increase in the state pension as a result of decisions taken by the coalition Government. The triple lock—as I say, not much mentioned by Labour —guarantees a substantial increase in the state pension, which is relieving pressure on pensioners across Britain. That is something to be applauded.

Let me deal with the broad subject of tax credits. I see the shadow Chancellor in his place and he was one of the key architects of the previous Government’s tax credit policy. I know that tax credits have a role to play in certain areas, but one of the downsides of the policy is that it tends to focus on poverty alleviation as being something to do with income transfer. Clearly, that is important, but the coalition Government are doing something else, which is also significant. In his recent review of poverty, the right hon. Member for Birkenhead (Mr Field), who is not in his place said that we need to tackle some of the underlying causes of poverty, which goes beyond income transfer. What the Government have done with the pupil premium, for example, is fundamental to getting under some of the issues that cause low aspiration and create generational poverty in Britain.

Under the previous Government, we saw a rise in absolute poverty, despite the complex tax credit system put in place by the shadow Chancellor. So I think the coalition—

[Mr Speaker]

Order.

Banking (Responsibility and Reform)

James Morris Excerpts

Tuesday 7th February 2012 Commons Chamber

[James Morris (Halesowen and Rowley Regis) (Con)]

Before I was elected to this House, I spent a 15-year career in small business in IT and software, during which I experienced the ups and downs that are typical of start-up businesses. I also experienced the ups and downs of dealing with banks, including the Royal Bank of Scotland.

Entrepreneurs such as me and my colleagues felt that there was a gap between the risks that we were taking as entrepreneurs and the attitude of the banks, with their demands for personal guarantees and other security, and their occasional unwillingness to negotiate credit terms. When I have talked to small businesses in my constituency over recent months, I have heard similar stories about the attitudes of the banks. I hear about foreclosures on viable businesses, sudden unannounced changes to credit terms, and people who have worked hard to build a business being forced to face impossible choices. I welcome the action that the Government have taken to unblock credit and, as the Financial Secretary described, to improve the appeals process when companies feel that they have been badly treated by their banks.

A big gap opened between the banking culture and the entrepreneur and the small business man, and that gap has grown into a chasm. As other hon. Members have mentioned, our banking culture grew up during the boom and the banking industry became disconnected from the needs of the real economy. It became a self-reinforcing culture in which bonuses and rewards simply got out of control. We then had a spectacular bust that took many viable small businesses down with the banking industry.

This debate is important because Britain’s future depends on our building a viable, dynamic, entrepreneurial culture. Jobs growth will come only from a viable culture of small and medium-sized enterprises. Britain’s future depends on our fostering a culture of entrepreneurship, in which people are prepared to take risks to create new businesses. We need a banking sector that is designed to support that vital endeavour. We also need the banking sector to play a central role in rebalancing the British economy. It must help to create the businesses and infrastructure that we need in places such as the black country, part of which I represent. That is why I welcome the Government’s introduction of the banking levy, which will help to funnel investment into areas such as the black country.

The banks also have a wider moral duty to rebuild the British economy after the follies of the boom years. It is therefore right that we take steps to control the bonus culture in British banks and seek to reform the banking sector. That is why I welcome the Government’s acceptance of the recommendations of the Independent Commission on Banking.

However, we must not allow ourselves the indulgence of engaging in anti-business rhetoric or appearing to be anti-business. It is perfectly viable for us to be against the bonus culture that built up but also very pro-business, and it is important that we are. We need to celebrate the success of entrepreneurs, wealth creators and small businesses. As I have said, they represent the future of the British economy and create the jobs and skills that we need for the future.

As I learned in my 15 years as an entrepreneur, business is about profits and cash. However, there is also a moral dimension to business and the capitalist system. One of the proudest moments of my entrepreneurial career was receiving a commendation from Investors in People for how my business managed people. My motivation as an entrepreneur was about both profits and people. In the capitalist system, it is vital that people who take risks are rewarded, but also that they recognise the moral dimension of the capitalist system. We need banks to play a role in building a culture of what we might call “responsible capitalism”, which can promote the entrepreneurial culture that Britain desperately needs to secure its future.

Autumn Statement

James Morris Excerpts

Tuesday 29th November 2011 Commons Chamber

[Mr Osborne]

I said that the borrowing forecast had deteriorated, and—unlike the Labour party—I set up an independent body to ensure that those figures are independently verified and not fiddled, as they were by the shadow Chancellor when he was in office. I can confirm that borrowing would be £100 billion higher if we had pursued the spending policies set out by the Labour party.

[James Morris (Halesowen and Rowley Regis) (Con)]

May I welcome the Chancellor’s statement today, especially in its support for small business? I recently visited a company in my constituency, Somers Forge, which is growing and providing young people with training and support. Does he agree that that is precisely the sort of business that will benefit from some of the measures that he has announced today?

[Mr Osborne]

Absolutely. We are doing a huge amount to support small businesses through our rate policy, the national loan guarantee scheme that we have announced and the support that we have given to companies that innovate and want to bring those innovations to market. We are doing all those things to help the small businesses of this country so that they can create jobs and grow.

The Economy

James Morris Excerpts

Wednesday 22nd June 2011 Commons Chamber

[James Morris (Halesowen and Rowley Regis) (Con)]

I shall focus my remarks on the challenges faced by the black country economy and the west midlands to illustrate some of the challenges that the Government face over the next period.

As the Chancellor pointed out, one of the most extraordinary statistics in the west midlands economy is that even in the boom years we saw a 6% decline in private sector jobs in the west midlands, compared with 3.4% growth in private sector jobs nationally. Worse still, after 13 years of Labour, not only was unemployment higher in the west midlands, but productivity was down, the skills gap was widening, the rate of innovation in the west midlands was poor compared with other regions, the rate of new business formation was weak, and the imbalance between the west midlands region and the rest of the country was growing. There was a lack of support for manufacturing businesses and a considerable decline in private sector jobs.

When the coalition Government took over one year ago, that was the picture that we faced in relation to the dynamics of the west midlands economy. It would have been madness to continue to pursue the policies that had comprehensively failed the west midlands region. Recently, I held a manufacturing summit in Cradley Heath with the Sandwell chamber of commerce. Companies such as Westley Plastics reported that they were enjoying strong growth in their order book and seeing considerable growth in export opportunities. Whatever the Opposition say, it is manufacturing that is leading the recovery in the west midlands and in the entire country.

In the west midlands and the black country we still have a vibrant manufacturing and industrial base. Companies in my constituency such as Somers Forge and Thompson Friction Welding are innovative, dynamic and capable of creating the high-quality jobs that we desperately need in the west midlands, but we must do more.

[Owen Smith]

May I point the hon. Gentleman to unemployment figures for the west midlands? We have heard a lot about those 520,000 net private sector jobs. As the hon. Gentleman no doubt knows, the west midlands has not seen any of those jobs. In fact, the last figures showed that minus 6,000 jobs, public and private, had been created in the west midlands.

[James Morris]

As I said, one year in, following the policies being implemented by the coalition Government, we are beginning to see clear signs that private sector jobs are coming back into the west midlands after 13 years in which, despite quarter after quarter of economic growth, we saw substantial declines in private—

[Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)]

rose—

[James Morris]

I will not give way. I will make progress.

The Government faced a considerable challenge when they came to power. With the growth plan that they have begun to implement, in addition to the important steps that they are taking on deficit reduction, we are moving in the right direction. In the west midlands and the broader black country economy, skills is the No. 1 issue that we need to tackle. It is holding business back. We are investing considerably more in high-quality apprenticeships, involving the voluntary sector and other parts of the economy in making sure that we build a proper skill base in the black country and the wider west midlands economy. We are beginning to build better relationships between small and medium-sized enterprises and institutions of further education, such as Halesowen college and Sandwell college. We are beginning the job that the previous Government did not address, and making sure that we match appropriate supply of skills with demand in the local economy.

As “The Plan for Growth” recognises, we also need a more local approach to stimulating economic development. That is why I have been a strong advocate for the black country local enterprise zone. I have been working with its representatives to define the best way to drive economic growth in the black country, and on how to maximise the potential of the Chancellor’s Budget announcement on enterprise zones to stimulate new investment and new jobs and ensure that the local enterprise partnership is able to drive economic development.

[Mr Love]

There is a lot of evidence from the 1980s about employment zones, and it shows that the cost of the jobs created was very high compared with alternative models, and that all that employment zones did was shift employment around the borders of the LEP. What leads the hon. Gentleman to believe we will be more successful this time?

[James Morris]

There is huge potential to stimulate growth in the black country. Especially now when public spending is limited, we need to find creative ways to stimulate economic growth in the various areas of the black country, and we might do so by starting with one enterprise zone, which then develops into more of them so that we seed the black country economy and drive real economic growth. That is what we need to achieve, and I believe that the LEPs have a better chance than many other possible methods of tackling some of the deep-seated economic problems we face in the west midlands.

As many Members have pointed out, bank lending is still an issue; getting credit to the right places in order to stimulate the economy is still a problem, and it may hold back the recovery. There are organisations in the broader black country, such as the Black Country Reinvestment Society, that are developing innovative models to get microfinance to small and medium-sized enterprises, but we need to do more to fill the credit gap. I welcome the Chancellor’s Project Merlin announcement, particularly its emphasis on encouraging the banks to invest in the regional economy, because they have a moral obligation to do so. As the Chancellor recognises, the banks have a critical role to play in developing the regional economy, but if there continue to be problems with the availability of credit we might need to consider measures such as counter-cyclical regulation, encouraging the banks not to hoard capital but to get it to the small and medium-sized enterprises in areas such as the black country.

The key decisions that the Government have taken over the past year to tackle the deficit, to restore confidence in Britain’s financial institutions and to build a platform for growth have been crucial in getting the country back on an even keel, but we need to build on what the Government have achieved so far. We must continue to drive innovation. That is particularly important in areas such as the black country. We must address how we can sustain innovation and build on the capabilities that are in place in advanced manufacturing. We also need to continue to support and develop our manufacturing base in the west midlands, so that technologies and vital jobs do not get shipped abroad. Labour market productivity in the black country is increasingly globally competitive, and we need to ensure that businesses continue to invest in domestic manufacturing. The Government must also identify emerging technologies that we can capitalise on and where we have the skills to exploit and commercialise them.

However, the most important signal this Government have sent to the world is that the country is open for business, and in particular that the black country is open for business.

Amendment of the Law

James Morris Excerpts

Monday 28th March 2011 Commons Chamber

[Mr Pickles]

My right hon. Friend, as always in these matters, is absolutely correct. There is sometimes a fallacy, which the Opposition assume, that a pound cut in grant means a pound cut in services, but there are clearly better ways of doing such things.

Last June’s emergency Budget started a rescue mission. It preserved the UK’s triple A rating and helped to keep interest rates stable. This Budget shows that we are moving from rescue to far-reaching reform. It is a Budget for a strong and stable economy, marking our progress towards eliminating the structural deficit. It is a Budget for growth, rebalancing the economy away from over-reliance on the public sector towards long-term, sustainable growth based on export and investments. This is a Budget for fairness, lightening the burden on some 23 million taxpayers by lifting the personal income tax allowance.

In the past, there may have been an impression that the people in Whitehall who were responsible for the economy sat in the Treasury or in the Department for Business. Today, every part of Government has a role to play in helping to keep business thriving. I am proud of my Department’s reputation as one of the most deregulating Departments in Whitehall. The Communities Department is central to economic activity, and were it not for the cost of sign writers and stationery, I would rename it the Department for Communities, Growth and Local Government. Over the course of the past 10 months, we have cut the red tape on councils; called time on the Audit Commission’s clipboard inspectors; unravelled Labour’s home information packs; scuppered Labour’s ports tax; scrapped the Whitehall density targets for housing, which encouraged garden grabbing and a glut of flats; and binned the planning rules that encouraged councils to hike up parking charges in town centres. Today, we are going further still to create the conditions for growth.

[James Morris (Halesowen and Rowley Regis) (Con)]

The Secretary of State talked about rebalancing the economy. One of the most shocking statistics that the Chancellor quoted in his address was that in the west midlands, during a time of growth, we saw a 3% decline in private sector jobs growth. In areas such as the black country, it is absolutely essential that we deregulate and find as many opportunities as possible to drive entrepreneurship, small business and economic growth.

[Mr Pickles]

My hon. Friend makes a very reasonable point. Part of the problem is that we are now having to rebalance the economy.

Last week’s Budget was driven by an absolute certainty held by Conservative Members—that Governments can print money but only businesses can make money. We do not succeed as an economy by giving bean counters the whip hand over wealth creators. Governments need to listen to entrepreneurs about how to unlock growth.

I do not want to be terribly unpleasant about the regional development agencies, but perhaps I should on just this one occasion. They were fantastic at passing public grants from one part of the public sector to another, but very poor at creating private sector jobs and sustainable growth. After a decade of regional development agencies—my hon. Friend the Member for Halesowen and Rowley Regis (James Morris) gave figures for the midlands—the public sector still accounts for more than a quarter of jobs in the north-east, compared with less than a fifth in the south-east of England, and the number of private sector jobs grew half as fast in the north-east as the national average between 2003 and 2008.

Banking

James Morris Excerpts

Wednesday 9th February 2011 Commons Chamber

[Mr Osborne]

The transparency arrangements are the ones that I have set out, and the arrangements for managing RBS are the ones put in place by the Government of whom he was a Whip.

[James Morris (Halesowen and Rowley Regis) (Con)]

Many hard-working families and people in my constituency will welcome today’s announcements. Does the Chancellor agree that the banks have a moral responsibility to invest in areas such as the west midlands and the black country, where we need the private sector jobs growth that is vital for the future?

[Mr Osborne]

I absolutely agree with my hon. Friend. There is a preponderance of small and medium-sized manufacturing businesses in the west midlands and the black country, as I know from my various visits there. These are precisely the sort of firms that we need to help and assist, and this agreement means that more lending will be available to them. As I say, there is also a commitment to a regional business support fund that will provide equity investment to help those small and medium-sized firms to become bigger firms, which is what the British economy needs so that we do not, as we did in the past 10 years, depend on one sector, in one corner of the country, for our economic growth.

Equitable Life (Payments) Bill

James Morris Excerpts

Wednesday 10th November 2010 Commons Chamber

[Jonathan Evans]

I am very pleased to have the opportunity to participate in this debate, but may I begin by declaring an interest? I am the chairman of a life insurance company, but I have no connection whatever with Equitable Life, financial or otherwise.

The hon. Member for Leeds North East (Mr Hamilton), alongside many Conservative and Liberal Democrat Members prior to the election, fought hard to put forward the cause of Equitable Life policyholders, and I am pleased and proud of the position that my colleagues and the Minister adopted. Many of us, in the lead-up to the election campaign, signed a pledge to seek to put into operation a number of factors. The first was the recognition of all the individual provisions that the parliamentary ombudsman put forward. The hon. Gentleman will know that the previous Government only partially accepted the ombudsman’s report, and I am very pleased and proud of the fact that the Minister fully accepted all its points. I rather wish that EMAG had been a little more generous in its praise of him for having done so.

Secondly, the compensation that has been put forward will come as a disappointment to some, but the ombudsman made it clear that we had to take account of pressures on the public purse at the time. When we heard Sir John Chadwick’s proposals, there was virtual unanimity among those newly elected Government Members that £400 million was completely and utterly inadequate. I thought that the Government might put the figure up to about £1 billion and hope for the best, but we ended up with £1.5 billion.

[James Morris (Halesowen and Rowley Regis) (Con)]

Does my hon. Friend agree that we would not be in this situation, or have to have this conversation, if it had not been for the delay imposed by the previous Government?

[Jonathan Evans]

That is true, and the record of the outgoing Labour Government in that regard is inglorious, but I do not want to be partisan. In essence, Equitable Life policyholders do not want us endlessly to bash the Opposition; they want to know which way we can go forward. So I shall turn my remarks to the specific points made by the hon. Member for Leeds North East. He made a good moral case for not excluding people who ought properly to be included in the category to whom compensation could be paid, but, as I suggested in my intervention on him, some factors cause me some concern.

--- Later in debate ---

[Bob Blackman]

If the Labour Government had acted when they should have done, £1.5 billion would have represented 100% compensation for everyone that had been so badly wronged. However, the dragging of feet over the past 10 years means that we are in the parlous state in which, ever day, people who should be due their compensation are dying and every day that we delay means that, sadly, more people will not receive their compensation.

[James Morris]

Many Members have talked about the moral imperative behind sorting out the situation, but does my hon. Friend agree that moral intervention requires practical Government action, which is what we are seeing today?

[Bob Blackman]

Indeed. That is the clear duty of the coalition Government, and that is why I wholeheartedly praise the Treasury team for demonstrating such action.

There has been no greater issue than the tax treatment of the compensation that is due, and I congratulate once again the Treasury on that measure, because it will add to the compensation. Many people sitting at home will have been calculating their compensation less the amount of tax that they regularly pay. Now they know that they will receive a far bigger tax-free income, and that is something else of which we can be proud.

I would have much preferred more money to be provided. Would not we all? But would not we all rather be in a position whereby the Treasury was not almost bankrupt and we had not been left with a massive deficit? The all-party group will continue to ensure that, in this process, the Treasury will be able to communicate with all parliamentarians, and EMAG will be able to lobby to ensure that, when individuals begin to receive their payments, which will be the acid test, they feel satisfied that the wrong that has been done to them has been compensated. That is something of which we would all be proud. We can take great pride in the fact that the process is happening quickly, with purpose and transparency, and that the pledge that we all signed is being honoured. Some people may say, “It is not being honoured in full,” but it is, and clearly the economic circumstances of the day dictate what we can do.

As I said in an earlier intervention, we should revisit the position in five years’ time when the economy will have recovered and we will be in a much stronger position because of the coalition Government’s decisions. There may be a case then for reconsidering whether the people who took out policies but will not retire for five, 10, 15, even 25 years should receive a top-up. That is a reasonable proposal, and it is sensible for the coalition Government to consider it.

I commend the Bill to the House. I support it 101%, and the Treasury team are to be congratulated not only on what they have done, but on the clear answers that they have given to the points that have been made as we have considered the Bill in detail.

Comprehensive Spending Review

James Morris Excerpts

Wednesday 20th October 2010 Commons Chamber

[Mr Osborne]

Let me explain a couple of things to the right hon. Gentleman. First, as a member of the Cabinet, he fought the general election on protecting part of the health service, not the whole of it, if I remember correctly. He talked about two years of real increases in school funding, but we are going with four. I think he also made a promise on police numbers, but the then Home Secretary ditched the promise in the middle of the general election. The Ministry of Justice has to make a contribution. The right hon. Gentleman says, “Not on this scale”, but over the next four years, the actual reduction in non-protected Departments would have been greater under his Government than under ours because of the decisions we have taken on welfare. The Institute for Fiscal Studies calculated a figure of minus 20%; it is minus 19% in our figures. The Ministry of Justice is, of course, part of one of those non-protected areas.

[James Morris (Halesowen and Rowley Regis) (Con)]

I welcome the Chancellor’s statement, and I know that many hard-working people in my constituency will support the welfare reforms he has announced. Does my right hon. Friend agree that the welfare reform proposals made today are vital because the decisions were ducked by the previous Government?

[Mr Osborne]

My hon. Friend is absolutely right. These decisions are absolutely vital to provide economic stability and to make sure that Britain does not go back to the brink of bankruptcy. What I would say to my hon. Friend and his constituents, many of whom work extremely hard and for long hours to pay their taxes, is that it is not acceptable for those taxes to go into the debt interest that we pay to foreign creditors when we really want the money spent here at home. That is what this is all about—trying to reduce our debt bills and bring some economic stability by reforming a welfare state that, frankly, grew out of control. We have taken the decisions today. If people have alternatives, they can put them on the table.

Oral Answers to Questions

James Morris Excerpts

Tuesday 12th October 2010 Commons Chamber

[Danny Alexander]

I fear that the hon. Gentleman will have to wait until a week tomorrow for the spending review announcement to hear details of that sort, but I can tell him that the purpose of the regional growth fund is precisely to ensure that areas hit hardest by public spending cuts or areas most dependent on the public sector have an opportunity to put forward proposals for measures that would support their economic growth. The regional growth fund has been established to meet those proposals.

[James Morris (Halesowen and Rowley Regis) (Con)]

This builds on what the Chief Secretary has just said. Does he agree that what we need with the regional growth fund is a much more focused regional policy, rather than the waste that came from the previous Government and their one-size-fits-all regional policy?

[Danny Alexander]

I would agree with that, although I am not going to go over the litany of spending by regional development agencies. Having a regional growth fund that is able to respond to bids from communities, along with a much more devolved set of arrangements, through local enterprise partnerships, which require local authorities and local businesses to work together on what is best for their areas, is a much more dynamic approach, and it is likely better to meet the needs of those areas.