Devolution and Growth across Britain

Lilian Greenwood Excerpts

Wednesday 3rd June 2015 Commons Chamber

[Craig Whittaker (Calder Valley) (Con)]

I congratulate all new Members from both sides of the House on their excellent maiden speeches. I am obviously far too young to understand what my hon. Friend the Member for South Suffolk (James Cartlidge) was talking about when he mentioned something called “Lovejoy”. To get in my own plug, people in Calder Valley refer to me as the MP for the Happy Valley after the excellent show written by Sally Wainwright—filmed in the Calder Valley and called “Happy Valley”—series 3 of which will air later this year.

Thank you, Mr Speaker, for the opportunity to speak in this debate on devolution and growth across Britain. We all know and have experienced decisions made at grass-roots level, and devolution does make absolute sense. Who better to take decisions than those very professionals who make and deliver our services at first hand? In the recent referendum on Scotland, we saw at first hand the passion and interest that people have in their own regions and countries. It is only right in a civilised society that people have a real say in what is important to them and an opportunity to shape the long-term decision-making process in their area—local voices with local accountability.

In respect of the northern powerhouse and, more specifically, the Yorkshire powerhouse, people tell me all the time that they want more of a say in determining their own future. After all, why should Scotland have a say on its future when Yorkshire is denied the same opportunity? Our economy is similar to Scotland’s, our population is similar in size to Scotland’s and our county is as beautiful as Scotland, but, of course, Yorkshire is a better place to live than Scotland.

The fabulous Calder Valley not only contributes to the northern powerhouse, but plays a significant role in the northern powerhouse, as do many areas of Yorkshire. More than 19% of my constituents work in manufacturing and Calder Valley manufacturers punch above their weight with exports. The figures are outstanding. A further 22% of my constituents work in the financial services sector and contribute greatly to that massive national sector, which puts billions of pounds per annum into the tax coffers of the nation and pays for vital services like the NHS and education.

Devolution would allow great areas around the UK to make their own decisions and determine their own priorities, but there are also fears. We need to ensure that there is good governance around great swathes of power, and that centrally distributed funds are spent wisely and with accountability. There must be a system of governance that is open, honest and transparent, and models that are designed to be accountable. More specifically, it must be possible for people to be held to account. The elected mayoral system proposed by the Chancellor seems to be a step forward both in governance and accountability, but we have to be careful not to do things just as a knee-jerk reaction to public opinion of the day. Let us not forget that only a little over a decade ago, the people of the north-east rejected the notion of a regional assembly via the ballot box. Let us not make the same mistake and introduce a system by stealth under the guise of a quango.

[Lilian Greenwood (Nottingham South) (Lab)]

Will the Minister explain to my constituents—who, in a referendum just three years ago, rejected the idea of an elected mayor—why the Government feel it is right to impose that model on our area and many other cities?

[Craig Whittaker]

I do not believe for one minute that it is being imposed. As the hon. Lady knows, because her constituents rejected that model, they do not have the mayoral system.

People want the devolution of power, decision-making processes and money, but they do not want enlarged government and the further expense involved. Governance and accountability—yes; more government—no.

Then there is the question of the Union. While the intention of devolution is to give decision-making powers to local areas and countries, we must ensure that we do not unintentionally undermine the Union. We are better and stronger together as a Union, so I would like to see an overarching plan to ensure that we make the Union stronger, not weaker—a long-term devolution plan. Has the Secretary of State considered the endgame of a federalist United Kingdom, where the national Government cover certain areas and individual nations or regions cover other areas, where everyone knows and understands their areas of responsibility, and where people know exactly who is responsible for what and can hold those who are entrusted with responsibilities to account?

There are several models of federalism around the world, including in great nations such as Australia, where I grew up, Canada and the United States, to name just a few. Each has the same basic model, and some are even based on the traditional governance of Westminster. What is important is that there are clearly defined areas of responsibility. Those great nations often fall out in lumps because they cannot decide who has each area of responsibility. We have a great opportunity to start with a blank piece of paper and learn the lessons from those great ex-colonies around the world. When it comes to the EU, we balk at the word “federalism”, but we need to have a debate on the merits of federalism within the UK. Can the Secretary of State confirm that we have a long-term devolution plan and not just an ad hoc version that takes us down into the dark abyss of no return?

On the whole, though, the outlook for areas such as the northern powerhouse is great. Our Government have already started the process, with transport moneys, health responsibilities and school responsibilities. We have seen a commitment to expanding rail capacity with High Speed 2, and the great announcement on High Speed 3 to connect Hull to Liverpool via Manchester and Leeds. We have seen investment in renewable energy in the Humber, plans for electrification of the trans-Pennine rail routes and widening of the trans-Pennine motor routes, to name just a few projects.

All these developments contribute to making the huge cogs and gears of the massive northern powerhouse not just fire up but run in top gear. It is a powerhouse that has been held back by the shackles of decades of under-investment. The tools that we need are in the form of devolution. Do not give us the fish; give us the fishing rods to fish. Give us a plan—a proper plan—so that we can not only contribute to the UK economy but be an equal part of it.

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[Graham Evans (Weaver Vale) (Con)]

It is an absolute pleasure to follow the hon. Member for the great constituency of Batley and Spen (Jo Cox). I spent many a happy night out there in something called the Frontier club. I do not know if it is still going—and that misspent youth is perhaps a conversation for somewhere else. In the Evans household Friday night is fish and chips night, or, as my kids call it, chippy tea night.

I am absolutely delighted to speak in support of the Gracious Speech and the measures to promote growth in my constituency, in particular those in the Cities and Local Government Devolution Bill. Growing up on a council estate, the value of a job is not lost on me. A job is not just nine to five, a cheque at the end of the month or a statistic on a press release. A job is so much more than that: a job provides a sense of identity and worth, fostering self-confidence and nurturing God-given talents. The moral case put forward by the Government in striving for full employment is every bit as strong as the economic case and every bit as important.

Apart from a short spell of stacking shelves in my local Co-op, prior to joining this House I spent my entire adult employment life in manufacturing and industry. We have seen a real renaissance in the past five years, stimulated and encouraged by the Government’s vision for a northern powerhouse, for rebalancing our economy and for putting the north—specifically in my case, Weaver Vale in the heart of Cheshire—back at the heart of Britain’s economic engine room. Analysis by the Treasury has shown that realising the ambition to rebalance the UK economy would be worth an additional £44 billion in real terms to the northern economy—or £1,600 per person. The northern powerhouse will be underpinned by a fast and efficient transport system operating hand-in-hand with the roll-out of superfast broadband and matched with investment from the private sector.

The northern hub rail plan is key to a fast, efficient and effective transport system. The northern hub will improve dramatically connectivity between northern cities such as Manchester, Leeds, Liverpool and Sheffield. It will make life considerably easier for huge numbers of commuters across the region, improving the rail network and easing road congestion—the hon. Member for Batley and Spen will know all about the M62 and getting over the Pennines. Such improvements do not just make our cities more attractive places to do business and encourage external investment; they help to improve the quality of life for many of our constituents.

[Lilian Greenwood]

I am listening with interest to the hon. Gentleman’s comments about investment in transport in the north. Is he not concerned that, as my hon. Friend the Member for Batley and Spen (Jo Cox) said, rail fares in the north of England have been hiked, in some cases by as much as 162%, and that electrification of the TransPennine Express is delayed into the 2020s?

[Graham Evans]

I am very concerned about the cost and the amount of time it takes my constituents in Weaver Vale to get into Manchester and Liverpool. For example, it can take as long to commute to Manchester on the line from Chester as it did when the Victorians built it 150 years ago. We have to invest in those lines and in the rolling stock and the stations.

Last year, work began on the Mersey gateway project. For those who do not know what it is, it is a project that will deliver a magnificent new six-lane bridge over the Mersey estuary, linking Runcorn and Widnes. It also connects the M56 with the deep-water port in the great port of Liverpool and will generate an estimated £62 million in added value to the area by 2030, as well as providing much needed relief from the congestion on the ageing Silver Jubilee bridge, making life a bit easier for the constituents of Weaver Vale and Halton. The fact that the project is now under way is a testament to this Government’s commitment to Runcorn, Cheshire and Weaver Vale and to the north-west region as a whole.

Further to that, owing to the £10 million upgrade announced by my right hon. Friend the Chancellor last year, the Halton curve is now going to be reinstated. The scheme has a clear, positive business case and would reinstate and re-signal a section of railway between Frodsham and Runcorn, allowing trains to travel from Frodsham, Helsby and Halton to Liverpool and John Lennon airport, as well as into Chester and onwards to north Wales, as my right hon. Friend the Member for Clwyd West (Mr Jones) mentioned earlier. To link those projects we need the modern, high-speed line that High Speed 2 will deliver. The benefits of HS2 go far beyond the new line itself. I know I have said this over many years, but it is vital to remember that it will also free up capacity on existing commuter lines, bringing about an improved service for millions of commuters. It will also free up capacity for rail freight, which will help to facilitate the rebalancing of our economy away from the City of London and financial services, towards more northern manufacturing bases, now flourishing under this Government.

As for attracting private sector funding, the regional growth fund has seen phenomenal success in attracting investment into SMEs and job-creating initiatives. For every £1 invested in the regional growth fund, the private sector has matched it with a further £5.50, with investments in manufacturing topping over £1.1 billion. Over the next two years, the fund is being expanded further still, potentially unlocking a further £1.5 billion of private sector investment in job-creating projects. That is why unemployment in Weaver Vale has been reduced by 60% in the last five years. On top of that, enterprise zones, such as Sci-Tech Daresbury in my constituency, have been central to the success of this Government’s economic reforms and led the way in reshaping and rebalancing the economy. Sci-Tech Daresbury works with great universities such as Liverpool, Manchester and Lancaster. Alongside SMEs, IBM will be signing a new contract to work with the Science and Technology Facilities Council, which can only mean good news for future jobs, growth and wealth creation.

Finally, let me say that, collectively, the enterprise zones, capital investment in the Mersey gateway, the northern hub and High Speed 2, as well as the reinstatement of the Halton curve, are all key to encouraging growth throughout Cheshire and the north-west. This is a debate about how we see Britain’s future. Britain was once described as the workshop of the world, and I think it can be again. Weaver Vale is that workshop—a great place to live, work, invest and grow a business.