Devolution: Lancashire

Jim McMahon Excerpts

Wednesday 27th November 2024 Westminster Hall

[The Minister for Local Government and English Devolution (Jim McMahon)]

As a fellow Lancastrian—I am from Oldham—I start by congratulating my hon. Friend the Member for Lancaster and Wyre (Cat Smith) on securing this debate on this special day, Lancashire Day. If you go into Lancashire county hall, you will see Oldham’s crest emblazoned on the wall, pointing to our historic ties to the county of which we are very proud. This is a special day, and I am pleased to see the flag flying in New Palace Yard in recognition of that.

I welcome this debate. This is an important moment, as the English devolution White Paper is due to be published before Christmas. I hope my hon. Friend will forgive me, but I will wait for the White Paper to be published before discussing a number of aspects of that framework. However, I am certainly happy to talk about Lancashire, the agreement that has been reached and the next steps forward; that may address some of her points more directly.

This Government were elected on a platform to widen and deepen devolution across England. As part of our central mission to drive economic growth and improve living standards, we want to move power out of Westminster and back into the hands of those who know their areas better, giving those with skin in the game the tools to get the job done. In September, the Government agreed to the Lancashire devolution deal, which marked a significant step in delivering on that mission for the region. The agreement will help to reshape communities and unlock the economic growth potential of the region to benefit all residents by returning power from Westminster to local communities. Specifically, the devolution agreement means that a county combined authority will be established with Lancashire county council, Blackpool council and Blackburn with Darwen borough council as its constituent members.

Local leaders through that body will take responsibility for services delivered at a strategic level, giving them more control and influence over the levers of local growth. For example, local leaders will take control of the adult skills fund, allowing Lancashire to better shape local skills providers. The Lancashire local enterprise partnership will be integrated into the new body, ensuring a more strategic and co-ordinated approach to business support. The new body will take on the status of the local transport authority, meaning better integration for local transport in the area to make it easier for local people to get from A to B. There will be new land assembly and compulsory purchase powers, enabling housing and economic development to flourish in the future.

Yesterday, a statutory instrument was laid before Parliament to enable the combined county authority for Lancashire, and I look forward to debating that in more detail. The SI gives local leaders the powers I mentioned over transport, housing and economic development; powers over adult skills will follow. A locally run consultation demonstrated widespread support, including from the business community, for the area’s taking on these new powers.

Investment matters. That is why the devolution agreement also sees the release of £20 million of capital funding to support local growth priorities identified in the area. That could include projects such as the National Cyber Force headquarters, the innovative low-carbon data centre at Blackpool airport, the civil service hub in Blackpool, the Blackburn innovation quarter and the cosy homes project to deliver better quality, more efficient homes in the area.

I recognise that there have been live discussions on the role of district councils in the combined county authority, and it is my firm belief that district councils will continue to play a key role in the success of devolution in the area. We expect effective levels of collaboration to be demonstrated between upper-tier, unitary and district councils. In the end, it is the place and the people that matter, and we expect councils to work together in that endeavour.

The devolution agreement that we have reached with Lancashire, which is being implemented at the moment, to be the start, not the end of the devolution journey. Essentially, it is the first step. It is a down payment made in good faith to work toward a mayoral combined authority. The discussions that we have been having in that area are not only about realising the potential of Lancashire, which is important, but enabling the north of England to realise its full potential. The way to achieve that is by taking power, decision making and resources away from the centralised model that we have in this country and bringing it closer to people and the communities where they live. We believe that where mayors are in place—and they are working together now, as a unit through UK Mayors, and on the Great North project where they are organising—they are beginning to make a significant difference and showing collective leadership for the north of England in particular, and we want to see all of England benefit from that. We do not shy away from that ambition.

[Cat Smith]

Will the Minister pick up on the points raised by the hon. Member for Blackburn (Mr Hussain) and myself around Cumbria and Lancashire, which are very rural counties? Does he have any thoughts on the challenges of being a mayor in a disparate and spread-out area rather than a neat metropolitan area?

[Jim McMahon]

It is important to separate out the different roles and responsibilities. We do not see mayors as being super-councils. We see mayors as regional leaders that have a strategic responsibility. That is very different from councils that provide a public service delivery responsibility. We are seeing mayors begin to make a difference where they are in place. For instance, York and North Yorkshire is highly rural, with one of the biggest geographical combined authorities in the country. We have just agreed a mayoral combined authority for Greater Lincolnshire. There is a significant rural population there, too. Of course, Hull and East Riding will have a mayor next year as well.

These devolution deals are being rolled out across the country in both urban and rural areas. In the end, it is about political leadership, accountability and getting powers from here. If people feel as though somebody down the road is distant, people feel much more that this place is distant. We have got to break the centralised model of command and control that we see here. In many of the questions that have been raised are the issues that we wrestle with—how do we balance a functioning economic area with a public service foot- print with people’s locally and strongly held identity and sense of belonging in a way that balances all those out to get to a settlement that can be supported and accepted?

Those are all issues that we face in the English devolution White Paper and will continue to form part of the agreements that we have reached. On all of those tests, Lancashire is the ideal model. It is a modern county outside of our historic roots. It has units of local government that speak to that footprint. It has units of public service delivery that speak to that footprint. It has a police and crime commissioner that speaks to that footprint, and is a functioning economic area that speaks to that footprint, too. On that basis, I think that Lancashire is a very good candidate; and I think the people of Lancashire have a lot to gain from the mayoral model of devolution.

This is worth facing head-on. In the discussions that we had in Lancashire—to refer to the intervention by the hon. Member for Blackburn (Mr Hussain)—we recognise that we want to see district councils represented, but local government reorganisation is clearly part of the conversations that are taking place. We get representations fairly regularly from council leaders and Members of Parliament, and we recognise that those are live discussions. They are separate discussions that might come together at a point in time, and we need to allow both processes to run and to be worked through in more detail.

Finally, I again thank my hon. Friend the Member for Lancaster and Wyre for securing the debate. Although we have an overarching national ambition to see devolution across the country, it is fundamentally a local issue about how best to shift powers to communities and deliver real change on the ground. We look forward to that ambition being realised in Lancashire.

Question put and agreed to.