Local Government: Combined Authority Orders

Julian Sturdy Excerpts

Tuesday 18th March 2014 Commons Chamber

[Julian Sturdy (York Outer) (Con)]

I join colleagues on both sides of the House in welcoming the Secretary of State’s creation of combined authorities. Far from stepping back and passively surrendering to the unyielding rise of London, with its increasingly dominant role in our economy during the past 30 years—which I know the Secretary of State would never do—the Government are rightly taking the necessary and vital steps to tackle the north-south divide head on.

The reality is that all major conurbations that have worked towards the combined authority status have, in their day, been global leaders in their respective field—steel production in Sheffield, shipbuilding in Newcastle and Liverpool, cotton spinning in Manchester, which was the world’s first industrialised city, and woollen textiles in Leeds, which in 1770 handled one sixth of the country’s entire export trade.

Alas, an illustrious history alone is not enough to sustain jobs in today’s fast-paced and frenetic global economy. We are, as has rightly been pointed out many times, in a global race, not just with our established rivals, such as New York, Paris and Tokyo, but with the new emerging business centres of the east, such as Dhaka in Bangladesh, Hyderabad in India and Guangzhou in China, a city of some 14 million people of which many in this country will not have heard. Providing our major northern cities with the tools they need to compete, not just against London but against everyone else in the international marketplace, is therefore essential to the future economic prosperity of the north and the rest of the country at large. Combined authorities show every sign of being successful in future, provided that the well-being of local residents and the long-term interests of the business community remain at the centre of their decision making.

While I am clearly in favour of combined authorities in principle, and although it undoubtedly makes sense for Leeds, Bradford and the surrounding west riding authorities to join together, I am not yet convinced that York’s destiny lies with the West Yorkshire combined authority. For those Members who are not aware, York is not, and has never been, part of the west riding. Although its economy is undoubtedly intertwined with that of Leeds and the surrounding region, its connections with the rest of North Yorkshire run deeper still, as I know the Secretary of State, being a fellow Yorkshireman, is well aware.

It is with North Yorkshire that York shares its police force and its fire and rescue services. Indeed, as has been touched on already, York has no boundaries with West Yorkshire whatsoever, encircled as it is by the North Yorkshire districts of Selby, Harrogate, Hambleton, Ryedale and East Riding. How, then, is York placed to benefit meaningfully from its membership of the West Yorkshire combined authority when it lies at the heart of North Yorkshire, and in more ways than one?

[Julian Smith]

My hon. Friend is making some powerful points. In his summary of all the fantastic elements of York and North Yorkshire, will he pay tribute to the work of Barry Dodd and the local enterprise partnership, which has been leading the way in ensuring that we get inward investment and new businesses set up in both York and North Yorkshire?

[Julian Sturdy]

I thank my hon. Friend for that timely intervention. He is absolutely right. The York, North Yorkshire and East Riding enterprise partnership has taken amazing strides forward, ably led by Barry Dodd, and it is doing great work. It is really important for the LEP that York plays a key role within it, and rightly so.

As York does not share contiguous boundaries with the rest of the West Yorkshire combined authority, it is now to be a non-constituent member without voting rights. The residents of York will presumably have to contribute funds to the combined authority—there is still some uncertainly over that—but they will not possess a vote on important matters. What safeguards will be put in place to stop those taxes being used to improve transport priorities in West Yorkshire, rather than in York?

Ultimately, it seems to me that we need not only a West Yorkshire combined authority, but a North and East Yorkshire combined authority, to act as an essential counterbalance and to support the rural hinterland that York sits at the centre of—geographically, culturally and economically. In essence, York is the heartbeat of that rural hinterland of North Yorkshire, and removing it could have far-reaching economic consequences.

[Julian Smith]

Is not that why it is so surprising to hear the shadow Minister’s complete lack of understanding of the economic ties that bring together the highly rural areas I represent and the outskirts of York that my hon. Friend represents?

--- Later in debate ---

[Julian Sturdy]

My hon. Friend is absolutely right. There is a real danger that if York is removed, the North and East Yorkshire conurbations will lack a centre. I fear that it would be very difficult for a combined authority to come forward in those circumstances. Removing York would essentially leave North and East Yorkshire alone.

[John Healey]

Will the hon. Gentleman give way?

[Julian Sturdy]

I am more than happy to give way to another Yorkshire MP.

[John Healey]

The beauty of the Minister’s solution is that it will not take York out of the heart of North Yorkshire. As the hon. Member for York Outer (Julian Sturdy) has argued, York’s economy is intertwined with West Yorkshire’s. This is a variable geometry that allows it to be part of a combined authority for some of the strategic economic decisions that it can play a part in and benefit from while still maintaining its leading role within the wider North Yorkshire area for other purposes and services.

[Julian Sturdy]

I thank the right hon. Gentleman for his intervention. He might not be aware that York plays a key role in both LEPs, because it sits within not only the York, North Yorkshire and East Riding LEP but the Leeds LEP. It is absolutely vital that the city of York plays a leading role in both LEPs. Worryingly, over the past 12 months York took a decision to leave the North Yorkshire LEP and put all its eggs into the Leeds LEP basket. Thankfully, after some strong persuasion, that situation has been reversed. However, it showed the real danger that York could, in essence, walk away from its hinterland area for completely the wrong reasons, and we have to guard against that.

York, as a leading centre of innovation and wealth creation in the north, has so much to offer, but such opportunities must not be squandered by jumping on the first bus that comes along, which is what I fear is happening. In my view, that bus is also travelling in the wrong direction. York must not rush headlong into a decision. It must consider all its options, in consultation with local businesses and local residents, as the shadow Minister said, and then come to a transparent decision—I underline the word “transparent”—that reflects the views of the majority, not just the few.