Cities and Local Government Devolution Bill [Lords]

Debate between Lord Beamish and Andrew Bridgen

Wednesday 14th October 2015 Commons Chamber

[Andrew Bridgen (North West Leicestershire) (Con)]

I welcome the Bill, which takes much needed and well overdue steps to move power closer to the people it affects. The UK is undoubtedly one of the most centralised developed democracies in the world, and evidence shows that that is holding it back. As Sharon White, second permanent secretary at Her Majesty’s Treasury, recently said:

“There’s pretty good cross-country data that shows that decentralisation tends on average to be more closely associated with both stronger growth and better public services”.

The Bill aims to give the people of England and Wales more accountability, increased growth, improved public services and a richer democracy. Its principles should be embraced by this House and by local authorities as a mechanism to set them free from the shackles of Whitehall and to allow them to grow, prosper and compete.

The welcome announcement by the Chancellor of the Exchequer at the Conservative party conference that councils should keep business rates in return for the abolition of the block grant only serves to hasten the importance of enacting legislation to devolve power. That measure will be a key factor in ensuring success.

The hon. Member for North Durham (Mr Jones) has mentioned his reservations. In Leicestershire, the combined block grant for county and district councils comes to £136 million per annum, whereas the business rates are currently £226 million per annum. The proposal is, therefore, a considerable win and will result in my county council becoming one of the better, rather than one of the lowest, funded councils in the country.

[Mr Kevan Jones]

The hon. Gentleman talks about freedom from central Government, but he has to recognise that the block grant for the rest of his council’s spending will be there. Moreover, has he asked Ministers what would happen if one or two large factories in his constituency closed and the local authorities lost a huge amount of business rates? Who would make up the difference? Would central Government step in, or would local taxpayers have to pick up the tab?

[Andrew Bridgen]

I work closely with my district council and we encourage business to locate and expand in my constituency. Its planning book currently has £14 million-worth of additional business rates waiting for planning permission.

[Mr Jones]

Not everywhere is like that.

[Andrew Bridgen]

I suggest that the hon. Gentleman be more business-facing and encourage businesses to come to his constituency.

On the Bill’s potential impact, my constituency of North West Leicestershire has achieved one of the highest growth rates outside London and the south-east due not only to our geographic location, but to my hard-working constituents. The Bill is essential because the jobs being created in my constituency far outnumber the number of unemployed people, and we work with other councils to address—in a way I do not believe central Government are able to grasp or respond to—our infrastructure needs and the training and skills that businesses in my constituency require to continue to prosper.

East midlands combined authority bids have been made by the counties of Derbyshire, Leicestershire, Nottinghamshire, Lincolnshire and Northamptonshire. I understand that Lincolnshire and Northamptonshire are seeking to join up with authorities outside the east midlands region. There is a rumour that the D2N2 bid—Derby, Derbyshire, Nottingham and Nottinghamshire—will be rejected because it does not have the critical mass, which rather puts in doubt the bid made by Leicester and Leicestershire in my county.