Levelling-up and Regeneration Bill

Debate between Tim Farron and Ben Bradley

Report stage
Wednesday 23rd November 2022 Commons Chamber

[Ben Bradley]

As I just said, as far as I can see, the provision is already there and therefore the new clause is unnecessary. Our conversations about devolution within the region have revolved massively around adult skills. In the future, I would like to see Government further devolve powers in related areas, particularly around provision delivered by such organisations as the Department for Work and Pensions, so that there will be a chance to engage in employability conversations and boost basic skills. I look forward to conversations about that in the future.

From conversations with officials and Ministers, it is clear that once we have the framework and structure, we can come back and talk about new things we would like to see devolved down to our region. That is an example of an area where Whitehall struggles to join things up and where such matters can fall through the gaps in a siloed system. One of my favourite examples of that is youth work, which sits across about six Departments so a joined-up strategy is difficult to achieve. If we can devolve such matters to a regional level, we will be able to share budgets and strategies and do things more effectively. I hope we will be able to have those conversations with Government in the future.

My final point is about flexibility in local budgets. I had the honour of hosting the local government Minister, my hon. Friend the Member for North East Derbyshire (Lee Rowley), in Nottinghamshire a few weeks ago. We went into great detail about the council budget, the opportunities and risks of it, and some of the things that could be done that do not cost the Government any money. In the spirit of empowering local leaders and devolving powers to local areas, it is key to give them more flexibility over existing budgets.

If I had the same budget in my local authority but all the rules and ringfences about what I could spend it on were removed, I would have a surplus and I would not have a problem. The lack of flexibility in the system means that I can spend the budget only on certain things that are not always the priority. There is a good opportunity, whether in the upcoming local government settlement or in the 2023 devolution deals and beyond, to genuinely empower local council leaders to be able to take decisions on funding key priorities.

I will point to one example. In common with many people, I have a bus service improvement fund in Nottinghamshire County Council that allows me to build bus lanes. At the same time, I have a shortfall in the funding that I need to keep the buses running. I could end up in a scenario where I have to build bus lanes, but I have no buses to run in them, even though the money is already in my bank account and if I were allowed to do so, I could spend it on keeping the buses. That is just one example, and there are many more. Flexibility and empowerment of local councils and leaders is hugely important. I am pleased that the Government have committed to that through devolution, but there is more that could be done to support the sustainability of local councils too.

In conclusion, the timescales of the Bill are hugely important. It needs to be completed on time in the spring or early summer if we are to pass statutory instruments and stick to timetables and targets for elections in 2024. I urge the Government to push the Bill through and ensure that we meet those timescales, otherwise my region will be stranded: the deal will be done, the structures will be in place and everything will be ready to go, but we will have to wait another year for another set of elections. That seems arbitrary and would be incredibly frustrating. We are at the front of the queue and we just want to be let in the door. I trust that the Government will recognise the importance of delivering on those commitments. I look forward, of course, to speaking to the Minister in due course about the success of Mansfield’s levelling-up fund bid—she may hear that from a few hon. Members in this debate—so there are many conversations still to have.

[Tim Farron (Westmorland and Lonsdale) (LD)]

It is a pleasure to take part in the debate and to have heard the contributions so far, and an even greater pleasure to have been involved in all but two of the 27 Committee sittings—I missed them for the Westmorland county show, which is permissible in my opinion. I confess that I have not sat on a Committee for many years and I genuinely enjoyed it, which may be a peculiar thing to say. I enjoyed the civility of it, the way that we could go through the Bill line by line, and the fact that we could disagree—we disagreed pretty much politely throughout.

As has been observed by other hon. Members, the turnover of the ministerial team was rather like Mark E Smith’s The Fall—the Secretary of State was Mark E Smith in that characterisation, although even Mark E Smith never managed to sack himself. The turnover was remarkable, but all the Ministers were pleasant and well engaged, so I enjoyed the process.

The Bill is complex—there is a lot of it and a lot of detail—but I would argue that some of it is totally unnecessary, because levelling up the country needs not legislation but will. The phrase “levelling up” recognises that some regions of the United Kingdom, particularly in England, are behind others. Generally speaking, only London and the south-east tend to make a positive net contribution to GDP. The eastern region’s contribution is occasionally fractionally positive, but the rest of us technically make a negative contribution. That is not our fault; it is because of the way this country operates as a unipolar country, where all the resources are centred on London and its environs.

There is absolutely a need to level up, in the phrase that the Government have chosen, but the action seems starkly missing. Let us be honest: as we go through the process of public services and public spending cuts now, there is no doubt that the poorest regions of the country that are most in need of levelling up will, as always, be hardest hit, because those are the communities in which people most need public services. In my view, therefore, much of the Bill—for all that it has been a joy to discuss—is navel contemplation over action.

The part of the Bill that we are discussing that relates to devolution and the settlements and deals for local communities is thoroughly patronising. We are not actually being offered devolution at all, are we? We are being offered delegation. I am pleased to support new clause 71 in the name of the right hon. Member for Camborne and Redruth (George Eustice), whose kind words about my former and current colleagues are genuinely well received and I am grateful on their and my behalf. He talked about the importance of Cornwall being able to choose its own destiny, which I fully support and which, surely, is what we want for everywhere else as well if we believe in devolution and empowering local communities.

The various Ministers who we spoke to in Committee consistently reinforced the position that level 3, the highest tier of devolution, will be available only to those communities that choose a Mayor. That is not devolution but delegation to neaten up the system for the benefit of the Government rather than to empower local communities. If rural and diverse communities such as Cumbria, which is not dissimilar to Cornwall, decide that they want devolution, but do not want to choose the model the Government tell them to have, who the heck are the Conservative Government in Westminster to dictate either to Cornwall or Cumbria that it must have such a system? We would like devolution—we demand devolution—and we demand not to be told the format that it must take. An obsession with symmetry is typical of all parties that end up in office—sometimes.

[Ben Bradley]

Does the hon. Member not accept that, if we allow every area to dictate the way it has devolution in the way it would like to have it, we would end up with a ridiculous hotchpotch of systems across the country that makes no coherent sense? Our system of local government and local governance is already incredibly mixed and complicated, and surely this is a chance to have some consistency across the board so that his area, just like my area, can have a positive and consistent relationship with Government and equal access to Government.

[Tim Farron]

I see the point, and I understand that the hon. Gentleman is a local government leader himself. Nevertheless, that is what people would say if they were sitting in Westminster, because it is neat and useful for them. The reality is that, in Cumbria, Cornwall, Northumberland or Shropshire, having the ability to choose our own style of government might be complicated for the Government, but it is not complicated for us. Do we believe in devolution, or do we want the Government to have things just as they want?

I feel—I fear, even—that what we are seeing is not devolution, but delegation. The Government are seeking neatness and convenience for their own sake, rather than the empowerment of communities. It is an obsession with symmetry, rather than the empowerment of such communities. With the exception of the right hon. Member for Camborne and Redruth and perhaps one or two others, the Government are playing to their stereotype of being out of touch with local communities. So, Mr Deputy Speaker, if you will allow me, I will play to my stereotype and talk about electoral reform. You would be very disappointed if I did not.

New clause 45 offers local authorities the opportunity to choose their own electoral system. Unsurprisingly—I will absolutely stagger you now, Mr Deputy Speaker, and predict this—a commitment to electoral reform will be in the next Liberal Democrat manifesto. There, I have said it. The point is that communities should be allowed to choose, and since the last election the Government have removed the ability to use the supplementary vote—not an electoral system I favour, but nevertheless one fairer than first past the post—for mayoral elections and police and crime commissioner elections, which I think removes choice from local communities.

I would also suggest this in support of my amendment. The Government choosing to make a change to the electoral system, as they have done in local government, without reference to a referendum is an interesting precedent for what might happen under a future Government. It is a precedent the Government will wish they had never set, because if a party or parties go into a future election committing to electoral reform in their manifestos and find itself or themselves in government, we now have the precedent that electoral reform can be delivered without reference to a referendum. The Government will rue the day, and they might rue it soon.

New clause 45 gives local authorities the opportunity to choose to elect their mayors, councillors and police and crime commissioners in the way they choose. If this really was a levelling-up and devolution Bill, of course the Government would permit local authorities to do that. They do not need to approve of what a local government area does, within obvious parameters, to be able to permit them to have that power.

I want to move on to new clause 46, in my name and that of my hon. Friend the Member for St Albans (Daisy Cooper), which, with your permission, Mr Deputy Speaker, I will seek to push to a vote. It is on the reform of the business rates system, to which my hon. Friend the Member for North Shropshire (Helen Morgan) has already rightly and powerfully made reference. Business rates are an outdated and completely counterproductive system of taxation. They are harmful for our high streets and the economy because they directly tax investment in structures and equipment, rather than taxing profits or the fixed stock of land.

The 2019 Conservative manifesto committed to doing exactly what I am suggesting and proposing that the Government should do, so they should have no problem whatsoever in adopting new clause 46. It should be a piece of cake for them to do so, because in their manifesto they pledged to

“cut the burden of tax on business by reducing business rates. This will be done via a fundamental review of the system.”

Where is it? My amendment gives them the opportunity to do just that. This is the opportunity for them to show that they meant what they had in their manifesto.

Since the 2019 election, the Government have repeatedly tinkered with business rates but failed to bring forward that fundamental review. We often approve of that tinkering, but the fact that they are constantly tinkering is a living admission that the system is broken, so let us fix it. The fact is, business rates do not reflect the value of properties, particularly in the north and the midlands—areas outside of London and the south-east—and do active damage to our high streets, which are already under enough pressure.