Cities and Local Government Devolution Bill [Lords]

John Redwood Excerpts

Wednesday 14th October 2015 Commons Chamber

[The Secretary of State for Communities and Local Government (Greg Clark)]

I beg to move, That the Bill be now read a Second time.

I guess we have to get used to rival Opposition amendments these days, but I look forward to hearing the remarks of the hon. Member for Nottingham North (Mr Allen).

The Conservative party promised that if elected it would begin a bold new era of devolution. We made that promise because, as hon. Members on both sides of the House would recognise, over the course of the best part of a century, this country became one of the most centralised in the free world. Our cities, towns and counties became progressively more dominated by Westminster; local leaders had their undoubted dynamism and energy curbed and were made to conform to what Whitehall required; and our economy became unbalanced, its local strengths undermined by over a century of central direction from London.

People who know and love their communities have seen their good ideas frustrated, and the public’s enthusiasm for local democracy has unsurprisingly withered. The damage caused by over-centralisation is not only political; as Members know, seven of the eight largest cities outside London have for some time had a GDP per head below the national average. That stands in contrast to the experience of other European countries, where the major regional centres of their economies power the national economy ahead. If they can do it, we can do it, and we are determined so to do.

[John Redwood (Wokingham) (Con)]

Crucial to devolution is who controls the money. We are currently negotiating the new Scottish settlement, which must mean a new settlement for England, and I hope that England will have a strong and sensible voice in that. We will now have a new determination on business rates and councils, so will the Secretary of State explain how the money might work under the new regime?

[Greg Clark]

I will. The idea that business rates raised locally can be retained by local government, rather than being sent to the Treasury, is a major step forward that colleagues in local government agreed and for which many have campaigned over many years. Having made that commitment, it was right to announce it so that our colleagues in local government could help us with the important work of putting in place arrangements to protect authorities that do not collect enough in business rates at the moment to pay for their services. It is right that that be done collaboratively, and the Chancellor announced the arrangements in order to initiate that conversation.

--- Later in debate ---

[John Redwood]

Can the hon. Gentleman explain how we can have both a comprehensive solution and only do it bottom-up on the basis of the wishes of people?

[Jon Trickett]

It is easy: we will launch, hopefully with other parties, a constitutional convention that will try to reach out into every village, church hall, town hall, city hall and every part of the country to test the arguments about a new settlement for Britain, and I hope the right hon. Gentleman will join us and others in looking again at the political arrangements of the country.