Draft Halton, Knowsley, Liverpool, St Helens, Sefton and Wirral Combined Authority (Election of Mayor) Order 2016

Lord Wharton of Yarm Excerpts

Wednesday 13th July 2016 General Committees

[The Parliamentary Under-Secretary of State for Communities and Local Government (James Wharton)]

I beg to move,

That the Committee has considered the draft Halton, Knowsley, Liverpool, St Helens, Sefton and Wirral Combined Authority (Election of Mayor) Order 2016.

It is a pleasure to serve under your chairmanship, Mr Davies. The draft order, which was laid before the House on 8 June 2016, if approved, will deliver one more significant milestone in fulfilling our manifesto commitments and our commitment to implement the devolution deals between the Government and the Liverpool city region.

On 17 November 2015 the Government and the Liverpool city region combined authority announced a devolution deal that involved an offer of powers and budget from the Government, on the basis that the area will deliver certain reforms and measures, including adopting a directly elected Mayor covering the whole combined authority area.

The Liverpool city region deals—there can be more—are part of the ongoing process of devolution, which allows areas to take control of their own destiny and growth and supports our commitment to rebalance the economy. The deals are part of building a northern powerhouse, which has the massive potential to add an extra £37 billion to our national economy by the end of the next decade.

The draft order, under the Cities and Local Government Devolution Act 2016, which received Royal Assent on 28 January, will, if approved, deliver two major steps of devolution for the Liverpool city region. To reflect their agreement to the original deal, the six councils of the Liverpool city region and the combined authority have formally consented to the order.

In the first of the two steps, the order creates the position of a directly elected Mayor for the Liverpool city region, with the first election to be held in May 2017. Under the 2016 Act, the Mayor will chair the combined authority and exercise individually those powers agreed in the devolution deals. In the second step, the order specifies that the first mayoral term will last three years, with the next election in May 2020, and subsequent terms will last four years, which will enable the Liverpool city region to align the mayoral election with other local elections from 2020.

The order is an important step in the journey to implement fully the groundbreaking devolution deals that we have reached with the Liverpool city region. We will introduce further secondary legislation to confer on the city region and its Mayor the powers agreed in the devolution deals, including legislation to provide the detailed arrangements for how the powers will be exercised in practice. That secondary legislation, which of course the House will have the opportunity to debate and, if it so chooses, to approve, will include necessary provisions on the relationship between the Mayor and the other members of the combined authority.

I commend the draft order to the Committee.

--- Later in debate ---

[James Wharton]

Opposition Members have asked a number of questions that I will seek to address. The shadow Secretary of State, the hon. Member for Easington, asked about consultation with local communities. As I have said before in debates on this topic, at which he has often been present, this is a two-way process; a deal comes from both sides. They are represented in these deals with the local authorities through their local authority leaders. Those local authorities have each given their consent to the order. It is for the directly elected councillors and council leaders to lead the authorities on which they sit and to consult with their communities as they feel is appropriate. It is right, as in many parts of our constitution and democratic traditions, for councillors to make those decisions and agree that on behalf of those communities. I welcome the consultation that many have taken part in, but as a Minister I think it would go against the spirit of devolution were we to dictate to them how to consult with the communities they know best. We expect them to do what is right for those communities and to have carried out what they believe to be appropriate.

The shadow Secretary of State also asked about European regional funds, which we have discussed previously—in the very recent past—in debates of this nature. The first point to make, of course, is that we have not yet left the European Union, which will take time to negotiate. I do not know the timeframe, but even article 50, once invoked, allows for a two-year period, so at the moment it is very much business as usual. We expect European funds to continue to be applied for, and we expect the European Union to meet its obligations to the United Kingdom, just as we will be expected to meet our obligations as a member.

Thereafter, any decision will be for the Government of the day, but I am absolutely convinced, given what we know about the complexity of European funds, that money could be better targeted and do better things, and that regional growth could be better supported. Whether in government or out, I will advocate support to our regions and the funding necessary to deliver economic growth. We should not forget that we are a significant net contributor to the European Union. There may have been argument about the figures during the referendum campaign, but it is undoubtedly the case that we will have more of our own money, over which we will have—to coin a phrase—taken control.

The shadow Secretary of State asked about business rates, but they do not fall directly under the draft order, so I do not want to go into too much detail, and nor is it my direct area of policy as a Minister. However, I believe that a consultation is going on at the moment, so there are opportunities for those who have interests or concerns, or who might even want to make supportive comments, to be part of it. We want to ensure that whatever changes come in are made fairly and properly. All contributions to the broader debate are welcome.

I welcome the comments of the hon. Member for St Helens North, who was positive about the opportunities that the draft order represents. I endorse his comments about turnout; it is incumbent on all of us to ensure that people understand the huge opportunity being presented to them, and why it matters that they get the right person to drive forward the economy in the Liverpool city region. I thank him for taking the time to make his comments.

Finally, I want to thank the shadow Secretary of State in a broader sense. He has been in post for a relatively short period of time, but he has been an Opposition Whip for the entire time that I have been in the Department for Communities and Local Government. I do not know whether I will continue in the Department as the week goes on—we will soon find out—but it has been a real pleasure to work opposite him in his different capacities. He has always been courteous and engaging—challenging, yes, but constructive with it. I commend him and thank him for that. In whatever context, I hope that we will get the opportunity to work opposite one another again—although, of course, for as long as possible with me sitting on the Government side.

Question put and agreed to.