English Devolution

Debate between Jim McMahon and Alice Macdonald

Monday 16th December 2024 Commons Chamber

[Jim McMahon]

Only this week are we seeing a genuine redistribution of money in the local government system so that it goes to the areas that need it the most. For far too long, the funding formula did not recognise deprivation or that some tax bases are weaker at a local level than others. The £600 million recovery grant is intended to get to those areas. On value for money for public services, and getting them down to a neighbourhood level, as I said, there is a two-tier premium that is paid by local taxpayers to the tune of around £2 billion, which could be better used for local public services, and by central Government through the floor protections that we give to district councils, and that frankly could be used in better ways in areas of high deprivation and need.

[Alice Macdonald (Norwich North) (Lab/Co-op)]

I hope that Norfolk will be part of the devolution priority programme so that we can unlock the powers and funding that we need on areas from transport to housing. May I ask the Minister specifically about the role of key cities? Norwich is a key national and regional economic power, but it needs devolution to fully unlock its potential. It is vital that we have a key role and voice in the process of devolution and reorganisation. Can he assure us that that will be the case, and set out the process for cities in particular to do that?

[Jim McMahon]

Obviously, we inherited the plans for Norfolk and Suffolk from the previous Government. I will be clear that we could not progress with that deal because it would have seen directly elected council leaders assume the role of a mayor, but without the framework in place to support that, which we did not support. We have been working constructively with both counties to look at a mayoral combined authority over a bigger footprint, and we hope they will come forward as part of the programme. That is a matter for them. They may decide now is not the right time, but there is huge potential.

On devolution in Norwich and also Ipswich, it is important that reorganisation is strongly anchored in terms of place and the economy. Of course, in this case, Norwich would be central to that.