Cities and Local Government Devolution Bill [Lords]

Lord Evans of Rainow Excerpts

Wednesday 14th October 2015 Commons Chamber

[Graham Evans (Weaver Vale) (Con)]

Does the hon. Gentleman disagree with his erstwhile colleague, the Mayor of Greater Manchester, who last week said that through business rates, Greater Manchester is now in a position to invest in local infrastructure? Is it better to have people, including the hon. Gentleman’s former colleague, who know what is best for Greater Manchester, rather than people in Whitehall?

[Mr Jones]

It might be, but let us take an example from the north-east such as Redcar. What will be the growth in such areas from business rates? There will be none, which is why we must have some redistribution.

When Lord Adonis—I am glad the Conservatives have got him now—came forward with this nonsense about 100% business rates, I criticised it and I continue to do so now. The hon. Member for Hazel Grove asked a good question: where are the people in this process? In the north-east they are being completely ignored, and the Conservative party, led by Jeremy Middleton and Graham Robb—two former Tory candidates who have put themselves forward as business people—thinks that councils are being obstructive because they are asking basic questions such as, “Why aren’t people being asked what they think?”, “How will the mayor be accountable?” and “Where does that leave local councils in the delivery of services?” People have said that it is a luddite approach to ask such questions, but the same people have been completely silent in the north-east over the past five years about the direction of this Government, who have deliberately taken money from the north-east in policing, fire, health and local authorities, and moved it to wealthier areas in the south of England.

I challenge those people to stand up for the north-east and to start criticising their own Government. The Chancellor’s plan is very well worked out, but it will not help to devolve real power to people. The real power will still be retained by the Chancellor. The only thing actually to be devolved to local politicians, which they will find very difficult, is the blame for very tough decisions taken in Whitehall. Budgets will be top-sliced and then handed down to local authority leaders and others.

I challenge the Government, if they really want to be honest about this, to give the north-east the options they have given other areas, such as Cornwall. Devolution does not have to come with an elected mayor. I challenge the Minister to give local people a say on whether they want an elected mayor—yes or no.

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[Graham Evans (Weaver Vale) (Con)]

Thank you, Madam Deputy Speaker, for calling me to speak in this important debate.

Our cities, towns and communities, with all their variety and history, are what make Britain truly great. For me, the Bill comes down to a simple but fundamental one nation Conservative belief that local people are best placed to decide the future of their own towns and communities. As with the Localism Act 2011, it is once again this side of the House working to put more power in the hands of local people while the Labour party is doing all it can to stop it.

The Bill will revolutionise the way England is governed, backing initiative and local enterprise to propel our cities and regions forward into economic powerhouses in their own right. Since 2013, local councils have been able to retain 50% of the revenue from business rates, and it is absolutely right that when local areas use their initiative and take bold steps to boost business growth in their area, they see the benefit of that. I am proud that the Government have announced their intention to scrap the uniform business rate. By 2020, local areas will retain 100% of the full stock of business rates they collect. That is £26 billion kept and spent in our local communities instead of being sent down to Whitehall. That will mean stronger incentives for councils to boost growth, and the evidence shows that this will help to boost growth nationally. I agree with the Mayor of Manchester, Tony Lloyd, a respected former Member, who recognises the opportunities for his communities. He knows better than the man from Whitehall what is best for Greater Manchester.

I am delighted that both local authorities in Weaver Vale—Cheshire West and Chester Council and Halton Borough Council—have expressed interest in seeking to negotiate respective devolution deals for my region. Proposals put forward would see Cheshire West and Chester Council join other Cheshire and Warrington local authorities, as part of a traditional county area, to form a Cheshire and Warrington combined authority. Cheshire and Warrington is already one of the strongest performing economies in the north of England, benefiting from high skills and an ideal location that provides a vital strategic link between Merseyside, north Wales, Great Manchester and Staffordshire.

Likewise, Halton Borough Council has, with other local authorities, begun talks to join a Liverpool city region combined authority. A unique opportunity exists for the city region to work with the Government to design a bespoke devolution agreement that provides a long-term vision and strategy to draw down powers, control and resources from central Government in Westminster and Whitehall to the Liverpool city region combined authority for the benefit of local people.

Our great cities and regions each have their own strengths, opportunities and challenges. Local communities working in collaboration with businesses can harness an area’s strengths and specialisms in a way that Whitehall never can. It is vital that we continue devolving power to more local communities and regions as we have done with the historic Greater Manchester devolution deal and that we build on the work of the last five years to deliver a northern powerhouse to get the whole country firing on all cylinders. Britain is open for business.