Cities and Local Government Devolution Bill [Lords]

Debate between Jon Trickett and Scott Mann

Wednesday 14th October 2015 Commons Chamber

[Jon Trickett]

That emphasises my point. As much as the Bill may offer a form of devolution, the truth is that whenever financial decisions are made by the Treasury, true devolution will not be achieved. That is what should be in the Bill, and that is why the point I am making is so important.

My third reason for why the Bill is not satisfactory refers to something that is happening at No.11. It was announced at conference that business rates are to change, which must be a good thing, but, as always, the devil is in the detail. No clear announcement was made about how the redistribution between richer and poorer councils would take place. Some £26 billion is collected in business rates, £2 billion of which goes to Westminster council. We need more information in the Bill about how such a scheme will work. Let me say to Members, many of whom represent suburban areas in London, seaside towns, rural communities, shire districts, market towns and all the wonderful places that make up England, that they should be seeking answers to these questions. The Bill is silent on all these matters.

Fourthly, the Bill threatens to do a great disservice to the very backbone of England and English democracy. It is a puzzle to me why a Tory Secretary of State should ignore this. The market towns, the county villages, the shire counties, the county towns, the suburbs and some of the smaller freestanding cities are the backbone of England—the great cities are wonderful, but they are not the backbone—and they have been offered a second-class form of devolution. Why should that be? I was once privileged to lead the great city of Leeds, which is one of the most powerful economic and cultural engines in the north, and even in England. Indeed, the renaissance of English cities, mostly under Labour control, has been one of the great successes of the past 20 years—I have always thought that this should be added to the checklist of the enduring achievements of Labour in government—but this Bill risks neglecting all the areas that are not in those great urban centres. The potential for growth and enterprise lies elsewhere in England, which is a rich, diverse country that we all love. The Bill is almost silent on the matter. The Chancellor’s ambassadors who were running around the country did not bother to call in to the market towns and the shire towns of the country; they went to the big cities.

The bottom line for me is that the same powers should be on offer to both urban and rural areas of England. For example, whatever powers are available to metro mayors to raise business rates—by the way, it will not be possible to raise business rates unless an area has a metro mayor—should also be available to the smaller towns and the rest of England, too.

[Scott Mann (North Cornwall) (Con)]

The hon. Gentleman should be aware of the recent Cornwall deal, which deals with the very heart of the rural communities; it is not all about the big cities. The Prime Minister himself delivered that deal to the very rural area of Cornwall.

[Jon Trickett]

As everybody in local government knows, the truth is that the Treasury deals with the big cities. The big cities are where the glamour is and where the general direction of this Bill is. Other areas have been left to the lesser actors within the Government. It may be that, in some areas, the best way to promote connectivity and economic growth and to establish devolved institutions that reflect the identities and culture of the locality is to have a combined authority. Let me take Yorkshire and Humber as an example. My own view—I am not going to impose anything because we do not believe in imposition—is that Yorkshire has the strongest identity and is the most obvious economic unit. It is a great shame that the Government’s consultation process did not allow ordinary citizens of the county to be engaged in a debate about the county’s own future.

As with other proposals in the Bill, the only people excluded from having a view are the electorate themselves. That brings me to the final weakness in the Government’s proposals, which is their complete failure to consult the public, businesses and the wider civic society. What happened to the big society? Leaders of councils from all parties have basically had to enter negotiations with the Treasury, and we all know that it is the Treasury and not the Secretary of State for Communities and Local Government that is conducting these negotiations. The leaders have all entered into the negotiations with a gun held to their head. They either do devolution Whitehall’s way or it will not happen at all.

Council leaders have had to do the best they can for their areas, but it is noticeable that they and others are beginning to become more vocal in their concerns about this whole top-down process. For example, the great newspapers of the north-west, including the Manchester Evening News, The Bolton News, the Wigan Evening Post and the Oldham Evening Chronicle, have taken an unprecedented united stance in campaigning for a fair devolution deal. They are asking not only for the necessary funds to make devolution a reality, but for no more closed-door decision making. A basic flaw of the Bill is that there is no list of the powers that central Government seek to devolve. That is because, in reality, the whole agenda is being driven by Downing Street.

Let me briefly return to my opening remarks about hubris. It sounds like we all believe in devolution, but Labour are determined to make it happen. We will seek to work with those of other parties and those of no party who share the same objective. The past few weeks—I have spoken to leaders about what has happened over the past few weeks—have seen the demeaning process of the Chancellor’s emissaries dashing round the country meeting leaders in private, attempting to strong arm local councillors into so-called devolution deals for which there is as yet no statutory basis. I am sorry to say this but the Secretary of State, as charming as he is, has been little more than a passive observer. He was not even in the room. I fully understand why councillors will engage in these negotiations, and indeed some progress has been made—it is right that I should acknowledge that. However, we are not convinced that the Bill incorporates all the necessary safeguards to be supported in its present form, and that it is sufficiently bold or radical in resolving the English problems.