Cities and Local Government Devolution Bill [Lords]

Steve Reed Excerpts

Wednesday 14th October 2015 Commons Chamber

[Mr Steve Reed (Croydon North) (Lab)]

I thank everyone who has taken part in what has been an excellent debate with many thoughtful contributions. I will try to refer to at least some of them.

Devolution across the regions and cities of this country is long overdue. Britain is one of the most over-centralised countries in the world but in an age where we need to unleash the ideas, creativity and innovation of every part of our country, we can no longer allow power to be hoarded at the centre. In some respects England is the last colony of the British empire, and England in particular needs a new devolved constitutional settlement. It is time to get power out of Whitehall and into the hands of people who can use it more effectively. I congratulate the Secretary of State on bringing this Bill forward. It is a positive step and we welcome that, but it needs to go further. The Government still do not have a real vision for what a more devolved Britain might be. As my hon. Friend the Member for Nottingham North (Mr Allen) says, this must be the start of a journey of liberation, but as my hon. Friend the Member for Denton and Reddish (Andrew Gwynne) says, lines of accountability must always be crystal-clear.

In my opinion the real champions of devolution are those Labour councils like Manchester, Leeds and Newcastle who were pushing for devolution long before this Government understood its importance, and who still demand a better deal for their communities than the Chancellor has so far allowed. The Opposition are aware of the risks of replacing national centralisation with local centralisation. Deals that merely shift powers from Whitehall to town halls risk bypassing the people and communities whose lives are affected by decisions they still would not be able to control.

We need a deeper devolution—a new settlement that moves power in every case as close as possible to the people it affects. There must be more powers for cities and city regions over major areas like transport, housing, infrastructure and economic growth, and as my hon. Friends the Members for Hornsey and Wood Green (Catherine West) and for Harrow West (Mr Thomas) say, that must include London. We support fiscal devolution, too, but only alongside a fair equalisation mechanism. New powers must allow smaller towns and counties to shape their own destinies as well, and we need a new vision for public services that gives their users power over the decisions taken about them. That, too, is part of devolution.

My hon. Friends the Members for Manchester, Withington (Jeff Smith), for Ashton-under-Lyne (Angela Rayner) and for Kingston upon Hull North (Diana Johnson) made the point that we cannot devolve power without resources, yet there are fears that the Government will impose even harsher cuts on top of the 40% cuts that local government has already suffered since 2010. Let us take the example of the Government’s devolution of council tax support. They cut it by 10% but then made local councils take the blame. If this Government want to avoid the charge that they simply want to localise the blame for cuts imposed from the centre, they will need to behave very differently in future. I believe that the Secretary of State is sincere in his support for devolution, but as my right hon. Friend the Member for Birmingham, Hodge Hill (Liam Byrne) said, he will need to work much harder in order to win all his colleagues over to the cause.

Free schools have no local oversight; they are accountable only to Whitehall. The Work programme was designed and delivered from the centre. Communities facing a housing crisis are witnessing the forced sale of desperately needed social housing to comply with the centralised decision for which the Secretary of State is personally responsible. Frankly, this needs to stop. As my hon. Friend the Member for Birmingham, Erdington (Jack Dromey) said, devolution deals would be better if the communities affected by them helped to shape them, but that is not the Government’s present approach. City leaders are told that if they engage local business or community leaders in making their devolution bids, their bids might be refused. Furthermore, the Treasury has told them that if they make public what they are bidding for, it will slam the door shut. We need a much more transparent and open approach. The result would be much better devolution deals with bigger support from the local communities.

I agree with my hon. Friends the Members for St Helens South and Whiston (Marie Rimmer), for North Durham (Mr Jones) and for Sheffield South East (Mr Betts) that it is wrong of the Chancellor to make deals dependent on having a mayor. Even if cities have voted in recent years against having a mayor, the Chancellor says that they cannot have devolution without one. If the Government are serious about devolution, they should devolve this decision too, and let local areas choose their own model of governance.

[Mr Prisk]

Will the hon. Gentleman give way?

[Mr Reed]

I am sorry; time is short and I want to continue so that the Under-Secretary of State for Communities and Local Government, the hon. Member for Stockton South (James Wharton) has a chance to speak.

Labour’s reasoned amendment, which I commend to the House, makes it clear that we want to see real devolution. We support the work led by Labour council leaders up and down the country, but as my hon. Friend the Member for Cambridge (Daniel Zeichner) said, we want the Government to offer them and their communities even more. We want a vision for Britain in which power always lies as close as possible to the people it affects. That includes our cities and regions, our towns and counties, and our neighbourhoods and communities, as well as individuals and their families. That involves going a long way further than the Government have gone so far.

This is the time to be bold. This is a chance to unlock the creativity, the energy and the innovation of the British people. No power should be held at the centre if it can be better exercised closer to the people it affects. We need devolution by default. The Bill is a step in the right direction but it could do much more. I hope that we can persuade the Government to go further and faster in Committee and to take down some of the barriers that they have put in the way of real devolution. There is a growing consensus in favour of devolution in this country, as we have heard across the Chamber today, but the Government still need to prove that they trust the British people enough to really let go.