(1 day, 18 hours ago)
Commons ChamberRead Hansard Text Watch Debate Read Debate Ministerial Extracts
The First Secretary of State (Louise Haigh)
With your permission, Mr Speaker, I would like to make a statement on the work of the newly formed Office of the Prime Minister and Cabinet and the change it will bring.
On the steps of Downing Street six weeks ago, the Prime Minister set out the priorities that will guide this Government. He was clear that 40 years of overly centralised decision making and over-privatisation have stripped power and resources away from communities in every nation and region of this country; that public control over the things that matter so much to people’s lives has been systematically eroded and become a barrier to businesses wanting to start and grow; and that a broken economic and political model has cost good jobs and opportunities in many parts of the country, while delivering sky-high prices in exchange for poorer customer services.
The Prime Minister was clear that this Government will be the circuit breaker that our country needs: a Government who will take power from Westminster and Whitehall, and put it in the hands of the communities who are best placed to use it; who will rewire Britain, so that our politics and our economy work for every person and every place. On a bedrock of fiscal discipline, we will build a pro-business culture and an innovation-led economy that delivers good growth in every postcode.
We have wasted no time in delivering on that commitment. In the newly formed Office of the Prime Minister and Cabinet, we are rewiring the machinery of government so that the Prime Minister has the resources and levers he needs to deliver on his priorities. By stripping out many of the bureaucratic functions of the office, we have created a stronger, more focused Department that is capable of driving forward the Prime Minister’s agenda. This Government recognise that for far too long there has been a disconnect between the Cabinet Office and No. 10, and it is that lack of joined-up thinking that has hampered the ability of successive Prime Ministers to drive forward their own agendas across Government.
We have had a dichotomy at the heart of Government: the most centralised state in the G20, with one of the most underpowered centres. In the newly established OPMC, we are ensuring that the Prime Minister has the support and resources he needs to deliver the change that the public are impatient to see. From that office, we will drive forward work across Government to put the essentials, such as water, transport, energy and housing, under greater public control, in order to regenerate our communities, breathe new life into our high streets and give people more room to breathe through action on the cost of living.
That work of change has begun. Working closely with the Prime Minister and the Cabinet Secretary, we have begun the work of shifting power and resources away from Whitehall. Through our devolution blueprint and the establishment of No. 10 North, we have created a new engine of regional economic growth that will empower places that have been overlooked by Westminster for too long. We are granting new powers to strategic authorities to take more control over the future of their regions: a greater share of locally generated revenues, beginning with business rates; and more control over housing, public transport and infrastructure. For the first time, local leaders will have the power and resources they need to invest in the things that matter most to their communities.
This Government are filling in the map to bring an end to the system of two-tier devolution, so that by the end of 2028 we are able to extend to all parts of England the same offer that the rest have enjoyed for many years. This is how we can empower communities, drive local economic growth, create new jobs and deliver maximum benefit to the people who live there. This is devolution by design and devolution by default, and by working across Government we will build a new economic model that begins to put life’s essentials back under stronger public control and make them affordable for people again.
Working with my right hon. Friend the Secretary of State for Housing, Communities and Local Government and the Under-Secretary of State for Housing, Communities and Local Government, my hon. Friend the Member for Doncaster Central (Sally Jameson)—and building on the strong foundations laid down by my predecessor, my right hon. Friend the Member for Bristol North West (Darren Jones), whom I thank for his work—we are delivering a once-in-a-generation rebalancing of power in this country. This is what a rewired state looks like: one that is relentlessly focused on delivering for the people of this country, with empowered communities and good growth in every postcode. These are the tests against which our decisions will be measured and the metrics by which our actions will be judged.
Last month, the Chancellor and I announced reforms to public procurement that will cut red tape and unleash a new wave of British job creation. Too often, small and medium-sized businesses have struggled to navigate complicated procurement processes that seem to prioritise everything. When we prioritise everything, we prioritise nothing, so we are making the process simpler and doing things differently. From next year, businesses seeking to win a share of £90 billion in central Government contracts will be left in no doubt about what we want from them: creating good jobs and giving young people the skills they need for the future. These new rules will ensure that the £90 billion spent each year through Government contracts supports British jobs, skills and people in every postcode.
We are going further in our reforms to public procurement to ensure that taxpayers’ money is delivering more for our communities. For the first time since 2020, we are removing the defence exemption from social value. That means billions of pounds of defence contracts will soon give weighting to jobs and skills for young people across Britain. This is how we back businesses in every part of the country. In my ministerial colleagues, Parliamentary Secretaries to the Cabinet Office my hon. Friends the Members for Gateshead Central and Whickham (Mark Ferguson) and for Chipping Barnet (Dan Tomlinson), businesses looking to build and grow here in Britain—creating those good jobs and driving that good growth—will have strong advocates in this Government.
The work of my Department in strengthening our national resilience and co-ordinating the Government’s response to emergencies remains central. Over the summer, we saw communities across the country impacted by unprecedented wildfires precipitated by one of the hottest and driest summers on record—a reminder of the very real and present threats to the UK posed by climate change. During the third week of August, four major incidents were declared across south Wales, Hampshire, Cambridgeshire and the west midlands. By 13 August, fire and rescue services were tackling 47 wildfire incidents, and 79 separate requests for additional equipment and resources were made by fire and rescue services. In south Wales alone, more than 200 military personnel were deployed to tackle 14 separate incidents.
Such was the extent of support provided across the country that almost every service was impacted or involved in the response, and some of the most stretched services faced the prospect of having to deprioritise certain call-outs due to the pressures on the system. The day before the national alert was issued, close to 12,000 999 calls were recorded in a single day, which is six times the average call volume. Many services were stretched to breaking point, but continued to work around the clock to protect lives, communities and properties. I am sure everyone in the House will join me in thanking our emergency services and military personnel, who put themselves in harm’s way to keep us safe.
On 14 August, when the Government received direct requests from fire and rescue services for urgent Government intervention, we took decisive action. A national emergency alert was issued to provide the public with clear guidance on the steps they should take to avoid inadvertently contributing to an already dangerous situation. It should come as no surprise that the British public did their bit. Within 48 hours, there was a 42% decrease in the number of 999 calls, falling from 12,000 to 5,200, and by Monday morning the number of live wildfire incidents had fallen from 47 to 27. This gave our fire and rescue services the breathing space they needed to tackle existing fires and keep us all safe.
Over the coming weeks, I will continue to work closely with Cabinet colleagues to ensure the Government’s response meets the scale of the challenges we face. I will also be working closely with my right hon. Friend the Minister for Security in ensuring that this Government take a long-term and strategic approach to the country’s preparedness. The Government will continue to work closely with our frontline services and local resilience forums to mitigate the risks posed by extreme weather and drought, including a £100 million increase in funding for the fire services and a £65 million boost in support of our farmers.
In the interests of brevity, I will touch briefly on the work that is happening elsewhere in my Department. I have been delighted to welcome my right hon. Friend the Member for Vale of Glamorgan (Kanishka Narayan) not only to his role as the Minister for Artificial Intelligence, but to join us around the Cabinet table. The Prime Minister has been clear that he sees harnessing the potential of artificial intelligence as a central part of our country’s future, and the elevation of this role reflects the ambition this Government have to make Britain a world leader in these advanced technologies.
I am also pleased to welcome the Minister for Intergovernmental Relations and European Relations to his role. My right hon. Friend the Member for Lincoln (Mr Falconer) has wasted no time in the vital work of building stronger ties with our closest neighbours and allies. I was very grateful to him for interrupting his honeymoon to come home and be appointed to the post.
My Department is also bringing forward a programme to modernise the operation of the state. We are taking public control of the way Government work—cutting out the unnecessary processes and needless reviews that slow decision making and stifle innovation. At the heart of this agenda will be the restoration of Ministers’ responsibility and agency to deliver the change they promise, with increased accountability to Parliament and the public for the direction they set and the decisions they take. We will bring forward new methods of public deliberation in policy development and do away with box-ticking consultation with the usual suspects. Fewer decisions will be delegated to unelected bodies, and the way decisions are made will be scrutinised in Parliament, not in the courts, ending the warm bath of constructive ambiguity that politics has been too happy to soak in for far too long.
I am aware—I am deeply honoured—that I am the first woman to hold the role of First Secretary of State since the late, great Barbara Castle. I am confident that if I can channel even a fraction of the energy and determination that she brought to this role, collectively we can change our country for the better. For too long, too many places have been written out of our national story; their contribution ignored and their potential overlooked. People feel like the system just does not work for them. That is why in 2024 they voted for change. This Government are on a mission to ensure we can deliver on the Prime Minister’s and the public’s priorities. This is a collective endeavour, and together we will deliver the lasting change that people deserve. I commend this statement to the House.
Alex Burghart (Brentwood and Ongar) (Con)
I thank the deputy Prime Minister for advance sight of her statement. I congratulate her on her appointment—it is a major achievement—and I look forward to working with her.
I also congratulate the right hon. Lady on the wording of her statement. The phrase “rewiring the state” was first coined by the Leader of the Opposition in her leadership contest in the summer of 2024, and for a very good reason. The state does need rewiring; we agree on that. It is in urgent need of rewiring. It needs rewiring so that politicians can make decisions, it needs rewiring so that elected Governments can fulfil their mandates speedily, and it needs rewiring so that the state does not continue to grow ad infinitum.
I know that the new Administration delight in nothing more than criticising the Blair Government. There were many reasons to criticise the Blair Government, but I wish to talk about just three: the first is quangos, the second is the nature of the Treasury and the third is the issue of legal constraint. Some of the worst of these problems are those of entrenched institutional inertia. We have seen over time how quangos have led to Ministers having less agency over important decisions that affect our constituents’ lives, so it is unfortunate that the deputy Prime Minister has today announced the creation of a massive new quango in the OneGov Delivery Agency. It will be in charge of Government recruitment, the civil service, pensions, shared services, security vetting, and so on. It will oversee the spending of considerable public money. It is a step in the wrong direction, because Ministers will retain responsibility for those services, but they will lose power over them.
One of the reasons we have seen a proliferation of arm’s length bodies is that they have become a way of dodging excessive bureaucracy put on by the centre. In this instance, by the centre I really mean the Treasury. In its modern form, the Treasury is the behemoth created by Gordon Brown and designed to control Whitehall and to reduce departmental Ministers’ authority over their spend and their decisions. I was therefore genuinely interested to hear the right hon. Lady say over the summer that the Treasury was an “imperial finance department”. I had rather hoped that she was going to lead the charge to smash the barricades and destroy this terrible imperial power, but instead it appears that the empire has struck back. The briefing we were given initially was that No. 10 North was going to take control of growth. That seems to have been watered down. It is now rumoured that the Chancellor will give the speech on growth next week, and that the real power remains within No. 11 south. Will the right hon. Lady tell the House what powers, levers and budget she will have, as head of No. 10 North, to increase growth across the UK?
Legal constraint is obviously a massive problem. Over the Blair years, laws such as the Human Rights Act 1998 and environmental legislation created endless sources of judicial review, which made it increasingly difficult for Government to do things—to build infrastructure and so on. That is a colossal drag on the capabilities of the state. If the right hon. Lady wishes to work on that, the Conservatives would be happy to work with her.
In the statement, we heard a further exposition on devolution and the merits of No. 10 North. For that to be credible, the Government need to be able to give three basic guarantees. The first is that this will lead to an overall reduction in the size of the civil service. Despite promises made after the election, the opposite has happened under Labour; since the general election, the headcount of the civil service has risen by over 11,000. Will that be reduced, and by when? The second guarantee is on the nature of devolution—whether it is driven by the interests of local people, or just by those of one party. Over the summer, Labour councillors were allowed to redraw the boundaries of the authorities that they hope to represent, and to do so before any independent review by the Local Government Boundary Commission. Labour set about the biggest reorganisation of local government in 50 years with no mandate to do so, and announced it on the day before recess, with no scrutiny. One wonders how it can be localism if it is imposed—and imposed with constraints.
Also over the summer, after the Prime Minister had made his interesting announcement about assigned income tax and retained business rates, the Mayor of the Tees Valley, Lord Houchen, said that he would create
“a new rebate scheme to put money back into people’s pockets and let families keep more of the money they earn.”
It is an excellent idea—an excellent Conservative idea—so excellent that it was immediately shot down by the deputy Prime Minister. Will she tell us whether combined authority mayors will be able to cut taxes or give rebates, so that working people can keep more of their money—or will this just lead to higher taxes? Otherwise, it appears that local mayors will not have the freedom to cut taxes; they will only have the freedom to increase them. They will only have the freedom to increase the size of the state, not reduce it. It appears that this Government are rewiring the state—but just to grow it.
The last point is simply about cost. How much is this reorganisation costing? How much is being spent on No. 10 North? How much will need to be spent in order to power the localisation agenda that this Administration have put forward? Where is that money coming from? Is it coming from other Departments, in which case, from where, or is it coming from tax, and if so, which taxes? If it is coming from borrowing—well, I think the bond markets will have something to say about that. Until the Government can show that they are able to cut taxes and spending, so that we can get real growth across the country, I am afraid that all of this will just be another northern pipe-dream.
Louise Haigh
The Prime Minister set out how he plans to cut tax on the very first day of his premiership. I thank the shadow Secretary for his kind words. My title is First Secretary of State; he may wish to be the shadow deputy Prime Minister, but that would not be shadowing me.
I am glad that we can find common ground. I will start with the cost of No. 10 North, which I imagine the hon. Gentleman knows already, given the sheer quantity of parliamentary questions and freedom of information requests that have come in over the summer. No. 10 North has been fully funded from existing Cabinet Office budgets, with no additional spending pressure. We are grateful to colleagues in Manchester for hosting us in Heron House so graciously; that is working exceptionally well.
I absolutely agree—I hope we can work together on this—with the hon. Gentleman on looking at where we can streamline the state and ensuring that elected Governments of any stripe can make the decisions that they have been elected to take. There is an awful lot of common ground and frustration that people from across this House share about unelected regulators and quangos standing in the way of democratically elected politicians. There is a serious commitment from this Government to tearing away that red tape and ensuring that we can deliver the change that we were elected to deliver. I therefore gently point out the irony in his asking me to ensure that a quango, the Local Government Boundary Commission, takes decisions on local government reorganisation, rather than the democratically elected Communities Secretary.
We have already been clear that the central civil service is expected to shrink, that we want it to be more streamlined and efficient, and that our commitment to devolution and rewiring the state absolutely means fewer civil servants at the centre and building the capacity and capability of regional and local government. Local government was a huge victim of the decade of austerity, which held back growth in our local economies.
We are moving policy functions out of the Cabinet Office in order to streamline things and ensure that we can be ruthlessly committed to delivering the Prime Minister’s priorities; I make no apologies for that. We have transferred a number of strategic functions into No. 10 North, including local economic growth and devolution strategy, which we have moved from the Ministry of Housing, Communities and Local Government, and local economic growth policy, which we have moved from the Treasury; that is a little bit of a chip at its empire.
Mr Clive Betts (Sheffield South East) (Lab)
I offer two congratulations: first, to my right hon. Friend and constituency neighbour, the First Secretary, on her well-deserved promotion—I am sure she will do an excellent job. Secondly, I congratulate her and the Prime Minister for their real commitment to devolution, which I have wanted to see for an awfully long time. I hope it is devolution to local councils, as first-tier authorities, as well as to strategic authorities.
One area that has not been covered so far is education. The First Secretary is probably aware that in five wards in my constituency with high levels of deprivation, there is not a single sixth form. Responsibility for that rests totally with academy trusts, and the local council has no power or influence over it whatsoever. When she looks again at devolution to bodies with democratic control, could she look at the education system? That will be key to tackling the problem of those not in education, employment or training.
Louise Haigh
My hon. Friend is absolutely right, and my constituency shares that exact same problem: in the east, there are fewer sixth-form options than in the wealthier west of the constituency. That is huge issue for educational inequality for our constituents, and I will take it away and look at it with the Education Secretary. My hon. Friend will also note that we have committed to devolution of 16-to-19 funding as well.
Lisa Smart (Hazel Grove) (LD)
I thank the First Secretary of State for advance sight of her statement, and warmly welcome her to her place. The Liberal Democrats strongly agree that the political system is overly centralised. We believe that the best decisions are taken closest to the people they affect, but renewing communities must also mean giving councils the powers and resources that they need to revitalise our high streets, support independent businesses and improve local public services. After years of severe financial pressure, devolution cannot simply mean transferring responsibilities from Whitehall without the funding necessary to deliver them.
The First Secretary mentioned national resilience. That is about whether the lights stay on, whether the shelves stay stocked, and whether a family in Hazel Grove can get through a week or more of serious destruction without losing their livelihood. The covid inquiry was blunt: it found that we were ill prepared for an emergency, never mind a pandemic. Those failures cost lives, and people deserve to know that lessons have been acted on, rather than filed away.
There is certainly progress to welcome. We have the resilience action plan, the UK Resilience Academy, and Exercise Pegasus, which was the largest pandemic exercise this country has ever run. Those are steps that my party has long called for, but announcements are not preparedness. I would welcome hearing from the First Secretary what plans she has to improve public awareness and understanding of what the whole of society needs to do to be ready. We are in an increasingly uncertain world, so will the Government think again on digital sovereignty, so that the critical systems that our constituents rely on are not dependent on suppliers that this country cannot control?
I strongly agree with the First Secretary that this country has a broken political system. Later this afternoon, we will debate the Representation of the People Bill, which is meant to fix that. It takes some steps in the right direction, but fails to rise to the moment. Does she agree that there is still so much more to do, starting with halting the scourge of big money that is poisoning our democracy by capping political donations and bringing in a fairer voting system? We need to fix our politics so that we can get on with fixing the country. I have heard her talk previously in this House about moving fast and fixing things. I urge her to crack on.
Louise Haigh
I am grateful to the hon. Lady, and I can confirm that my motto of moving fast and fixing things is still firmly in place. She is absolutely right that in order to deliver devolution effectively and deliver the growth and improved public services that we need, resource and revenue are needed. We have committed to allowing strategic authorities to take a share of income tax and business rates, so that they are incentivised to grow their economies, and can take their fair share to reinvest in those economies.
On digital sovereignty, my right hon. Friend the Minister for Artificial Intelligence is looking at that, through his taskforce. It is one of the important workstreams that he is considering with colleagues across Government. I am sure that he will update the House in due course.
As the hon. Lady says, we will debate the elections Bill this afternoon. She and I absolutely share a commitment to stopping big money, and foreign money in particular, interfering in our politics. I will work with colleagues across Government through the defending democracy taskforce, chaired by my right hon. Friend the Security Minister, to look at what further steps we can take beyond the Bill.
Finally, on preparedness, my predecessor announced in July that we will deliver a campaign to raise awareness of the simple steps that households can take to keep themselves safe during everyday emergencies, like extreme weather. We will announce more information and begin that campaign later this year.
Mr Paul Foster (South Ribble) (Lab)
Lancashire has missed out on Government investment for decades, and my constituents in South Ribble have been treated to nothing but the scraps of investment left in the pot at the end of the year. We now have an opportunity like no other in generations. Lancashire needs devolution and an elected mayor. Will the First Secretary of State facilitate an urgent meeting for me and Lancashire colleagues with No. 10 North to unlock this desperately needed opportunity for real investment and prosperity in Lancashire?
Louise Haigh
I am extremely grateful for my hon. Friend’s enthusiasm for that settlement for Lancashire. He is absolutely right that it is the way to deliver power and resources for his community and unlock its potential. I am sure that you agree, Mr Speaker. No. 10 North will be extremely busy, given the number of requests that are pouring in, but I will make sure that my hon. Friend is top of the queue.
Sir Oliver Dowden (Hertsmere) (Con)
I congratulate the First Secretary of State and welcome her to a very important role in government. I agree with a number of things that she said, particularly about strengthening the role of No. 10. However, there is a large gap in this statement on rewiring the state, and that is to do with civil service reform. There are many excellent civil servants, but I am afraid that it remains a classic 80:20 model; 20% of exceptionally good civil servants do about 80% of the work. If we are really to rewire the state, we need to look at that and not only empower that 20% to deliver more, but find savings from the headcount among the 80%. If the Secretary of State really wants to rewire the state, I urge her to grasp this nettle while she looks at the entire picture.
Louise Haigh
A significant programme of civil service reform is under way, led by the Cabinet Secretary. That programme has already begun reforming the civil service recruitment system to ensure that it hires and promotes truly brilliant people. It is reviewing the talent strategy to develop and grow talent right across the civil service and the whole UK, and is launching capability reviews to assess departmental delivery. It is identifying areas for improvement and building on the successful transformation already under way through the Places for Growth programme. However, I absolutely agree that we need to go further.
Anneliese Dodds (Oxford East) (Lab/Co-op)
Over recess, a number of disturbing cases of artificial intelligence agents escaping control of their owners and undertaking unauthorised activity became public. In one case, 1,200 agents collaborated on an unsanctioned message board before 700 of them engaged in an attack on the company Hugging Face. Can the First Secretary confirm that following the governmental rewiring that she has described, her Department will be responsible for dealing with risks from so-called AI misalignment, and given the lack of frontier model controls, will she introduce regulation in this area, and co-ordinate with international partners on this matter?
Louise Haigh
I am grateful to my right hon. Friend for the work that she has done on this issue—I know that she is extremely expert in this area. Work is ongoing, with mobilised action across Government and industry, asking Cabinet Ministers to work directly with regulators and supply chains and writing to UK businesses with clear steps to strengthen their cyber-defences. The National Cyber Security Centre has engaged with more than a thousand stakeholders in the wake of Mythos’s release to galvanise action and share best practice. She is absolutely right that over the summer, during a routine cyber-evaluation, the AI Security Institute identified an incident in which AI agents took sustained unsanctioned action that was directed at real people and organisations. It was detected within an hour. We have been completely transparent about the incident, and we have immediately learned lessons from it.
Simon Hoare (North Dorset) (Con)
I, too, welcome the First Secretary of State to her place—it is great to see her back on the Treasury Bench. I also welcome the creation of the Office of the Prime Minister and Cabinet. The right hon. Lady is absolutely right that in a centralised system it was the most underpowered organisation imaginable, and it needed some turbocharging.
I hope that the First Secretary will agree that rewiring has to be a process, not an event. The Public Administration and Constitutional Affairs Committee will remember the great fanfare with which mission-led government was talked about a couple of years ago, before it died a rather slow, lamentable death. Can she assure us that she has both the personal energy and commitment to see this through to the end, as well as the support and resources around her in order to achieve it?
I echo the call from my hon. Friend the shadow Minister about the importance of looking at quangos and arm’s length bodies, particularly within the devolution and decision-making space, because too many of them have got out of control. I also echo the point about outsourcing, because outsourcing takes away a lot of agency from local communities and individuals, and that needs to be looked at with some urgency.
Louise Haigh
Mr Speaker, I am loving all the common ground that we are finding with Opposition Members today. I completely agree that we need to look at outsourcing across Government. The previous Administration already took significant steps to reduce spend on consultancy and began the work on the largest wave of insourcing in a generation, as promised in our manifesto. I have worked with the hon. Gentleman in the past, and he has witnessed my energy up close. He can be assured of my continued commitment to this agenda.
Kirsteen Sullivan (Bathgate and Linlithgow) (Lab/Co-op)
I begin by welcoming my right hon. Friend to her place and wish her every success in her new role. I thank her for this statement and for this Government’s renewed focus on reindustrialisation in the UK, bringing opportunity and economic growth to every corner of the UK. With everything pushing towards increased manufacturing and construction, personal protective equipment is more important than ever as the last line of defence between workers and hazardous materials and incidents. The state has a role to play here; it can lead by example and ensure that every worker gets the protection they need to do their job safely. Will my right hon. Friend meet me to discuss public sector procurement specifications and BS 30417 on inclusive PPE?
Louise Haigh
I congratulate my hon. Friend on her sustained campaign in this area. I know that she has done an extraordinary amount of work in continuing to raise issues around PPE when they have fallen out of the public spotlight post covid. The Minister responsible for procurement will be delighted to meet her to discuss this issue.
Steve Darling (Torbay) (LD)
For my Torbay constituents, and indeed all constituents in Devon and Cornwall, No. 10 North is actually two hours further away than No. 10 Downing Street. Although we Liberal Democrats genuinely welcome devolution that brings power closer to people, I represent a constituency that has high levels of deprivation. Can the First Secretary of State advise me on how the Government’s reforms will support areas such as mine in particular?
Louise Haigh
The hon. Gentleman is absolutely right. The reforms that have been proposed through the devolution blueprint and Cabinet statement are designed to address exactly that issue. For too long, devolution has been two-tier, allowing certain areas of the country to steam ahead while others have not been given the powers and resources that they deserve. Devon and Cornwall will be incentivised with potential powers and resources, including the overnight visitor levy. The hon. Gentleman will have heard the Prime Minister mention his trip to Cornwall and engagement with the authorities there, including Devon. I appreciate that it is a long journey to Manchester—it is quite an irritating trip even from Sheffield, to be honest—but I hope that he will engage with No. 10 North on this important issue so that we can deliver for his constituents.
Mr Toby Perkins (Chesterfield) (Lab)
I congratulate my right hon. Friend on securing this role; I have no doubt that she will do a wonderful job. I was particularly interested in what she said about her Department strengthening national resilience, which will remain central. We have just had the hottest summer on record. This country was built for a climate that no longer exists, as we were told on the Environmental Audit Committee, and 2,500 people are estimated to have died this summer as a result. Diabetics, asthmatics, the very old and the very young are particularly at threat.
Does my right hon. Friend have any plans to bring forward the new national adaptation plan? The national adaptation plan 3 under the previous Government was widely derided, but there is currently no plan for a new one until 2028, and it is clear that the pressures we are facing in summer are worse than ever before. Can she tell us whether there will be a new national adaptation plan or, if not, what she is going to do to ensure that we are better prepared next summer than we were this summer?
Louise Haigh
I am grateful to my hon. Friend for his continued work in this important area and on the environment. Tackling the threats posed by climate change requires consistent and co-ordinated action across every Department. From £710 million to fund upgrades to our school estate to the construction of nine new reservoirs across the country, this Government are taking the necessary steps to ensure that our country is more resilient and our communities are kept safe. He will have heard the Prime Minister refer to an upcoming wildfire summit. I hope that he will participate fully in that. I will return to him on our commitment on the national adaptation plan.
Sir Julian Lewis (New Forest East) (Con)
Normally when functions and roles are devolved from London to another area, we see a diminution in the capital and an increase in the area concerned. There is an obvious danger of duplication by having a No. 10 North and a No. 10 South, so will the First Secretary, whom I congratulate on her appointment, be transparent about this and agree that the public should be able to see how many people are working permanently in No. 10 North, how many are working permanently in No. 10 South, and how many are going back and forth between the two?
Louise Haigh
The right hon. Gentleman is right that traditionally the model of moving people or roles out of London has meant duplication in the centre. That is exactly what we are attempting to fix. We want new senior roles across the country. I pay tribute to the former Prime Minister, the right hon. Member for Richmond and Northallerton (Rishi Sunak), who created the Darlington campus. That campus is a proper model of delivery, with senior policy making and civil servants in Darlington, based around the Treasury there. It has helped to deliver and change decision making, and that is exactly what No. 10 North is attempting to do.
Noah Law (St Austell and Newquay) (Lab)
I welcome the steps taken by the First Secretary to ensure that strategic authorities such as Cornwall have the capacity to deliver on our growth agenda, but I want to ask specifically what steps she has taken to ensure that both national and local government have the financial analytical capability to identify those most promising investment cases and help shepherd them towards success.
Louise Haigh
It is an excellent question and something that my hon. Friend the Member for Chipping Barnet (Dan Tomlinson), who sits in the Treasury as well as the Cabinet Office, has been working on through No. 10 North. We are planning a brand of civil service reform that will move civil servants from the centre to regional and local government in order to share expertise, and we will provide them with the AI and data expertise that we have at the centre in order to do exactly that.
Graham Leadbitter (Moray West, Nairn and Strathspey) (SNP)
Can I remind the First Secretary that during this summer my constituency experienced the extensive Cairngorms wildfire? It was a major incident in difficult terrain that destroyed around 20 square miles of iconic hillside and forestry, threatened homes and businesses, and required the efforts of over 500 firefighters and volunteers.
There are actions required of the UK Government, the devolved Governments and numerous public agencies and landowners, and I am pressing all of them on these issues. With the risk growing, my ask of the First Secretary is that the lack of military aerial firefighting capability within the UK be urgently reviewed, so that aerial assistance can be provided in these extreme and often prolonged incidents. What work is being done with our European neighbours in respect of mutual aid in tackling wildfires? We must recognise that exceptional local effort cannot be a substitute for national and international preparedness.
Louise Haigh
I am grateful to the hon. Gentleman for his question. My thoughts and sympathies are with all those affected in his constituency by the wildfire. Some £100 million has already been invested in fire and rescue services, and we will continue to look at the issues that he raises to do with equipment in future Budgets. We are engaging with our European neighbours on exactly this issue, and we are well aware of the opportunities that arise from it.
Amanda Martin (Portsmouth North) (Lab)
I welcome the First Secretary to her place, and I thank her for making her first constituency visit to Portsmouth North and the fantastic Griffon Marine. As Portsmouth is a coastal city, residents are rightly furious that Southern Water continues to pump sewage into our seas. We have had hardly any rain this summer, yet sewage pollution and rising bills continue while private companies make profits. It is abundantly clear that privatisation under the Tories has failed the British public again and again. Could the First Secretary of State set out a little more detail of the Government’s plans to reform the industry and give the public greater control over our water companies?
Louise Haigh
It was a great pleasure to visit my hon. Friend and announce our procurement reforms at Griffon Marine in her constituency. The Prime Minister has been repeatedly clear that more public control of our water industry is not just desired but absolutely necessary. The current system, with the poor infrastructure, investment, higher water bills and the kind of sewage, leakage and poor quality that she described, can continue no longer. We will set out our plans for reform shortly.
Sir Julian Smith (Skipton and Ripon) (Con)
I welcome the right hon. Lady to her place, and I am sure that she will be very effective at this job. On the issue of wildfires, may I urge her to talk to the Department for Environment, Food and Rural Affairs, which is putting further constraints on moorland owners? Moorland owners have traditionally undertaken controlled burning, and they are really worried at the moment that this change in DEFRA policy will make moorland areas such as the one I represent more vulnerable to wildfires in the future?
Louise Haigh
I am extremely grateful to the right hon. Gentleman for his characteristically constructive and thoughtful contribution. I will, of course, raise that with DEFRA and look into the specific issue on his behalf.
Andrew Pakes (Peterborough) (Lab/Co-op)
It is a pleasure to welcome my right hon. Friend to her place. The greatest shift of power in rewiring this country we have seen started in Rochdale in 1844, when the Rochdale pioneers came together and created and inspired a worldwide movement. We now have our first ever Labour and Co-operative Prime Minister and an historic commitment to double the size of the co-operative and mutual economy, highlighting the vital role of double devolution, which is not just about giving power to institutions; it is also about giving power directly to people to take part in creating their own solutions and power in their communities. What assessment has my right hon. Friend made of the machinery of government and its ability to deliver on this fantastic ambition?
Louise Haigh
My hon. Friend has put it incredibly poetically—better than I ever could. He is absolutely right that the machinery of government and the culture across Whitehall need to be challenged. The Prime Minister has been clear that this Government will bring about an end to local and regional government coming to Whitehall with a begging bowl. Whitehall and the Government as a whole have been told in no uncertain terms that they will now be required to justify why policies are not devolved, rather than the other way around.
Mr Alistair Carmichael (Orkney and Shetland) (LD)
The transition to clean energy could be an opportunity to build a different model that would, to use the First Secretary of State’s own words, end
“overly centralised decision making and over-privatisation”.
Development thus far has simply concentrated power in the hands of the big corporates and left communities feeling left behind and disempowered. In Shetland, we host one of the largest onshore wind farms in the country, but we have the highest levels of fuel poverty, and last year the developer SSE was paid £9 million in constraint payments not to generate electricity—that is regulatory madness. In this rewired state, will the communities that host renewable energy developments have control and get direct financial benefit from them?
Louise Haigh
The right hon. Gentleman raises a number of really important and interesting issues that will be considered as we look to greater public control of our energy system. Local and community control is central to the Prime Minister’s vision for public control, and that “madness”, as the right hon. Gentleman described it, is something that will drive our energy reforms.
Joe Powell (Kensington and Bayswater) (Lab)
I, too, welcome the First Secretary of State to her place and welcome today’s statement as well as the one in July. The first English devolution settlement was, of course, for London, and despite some incremental improvements since 1999, our capital’s mayor, the Greater London Authority and the 32 London boroughs are not currently set up to deliver on the capital’s full potential, whether on productivity and growth or in dealing with our housing crisis and the massive increase in temporary accommodation spending to combat homelessness. Will revisiting London’s devolution settlement will be on her and her team’s agenda?
Louise Haigh
The Mayor of London has been involved in continued talks through No. 10 North on the devolution settlement. We will continue to consider what further powers and resources London deserves.
David Mundell (Dumfriesshire, Clydesdale and Tweeddale) (Con)
I congratulate the First Secretary of State on her appointment. Will she confirm to me and to the House that the intergovernmental relations responsibilities in her Department will be given the weight they require? Indeed, part of that is about making the case for the continuance of the United Kingdom. We have three First Ministers across the United Kingdom whose position is that they want to break up the United Kingdom. The Scottish Government have already brought forward a time-wasting and unnecessary Bill to hold another divisive independence referendum. It is vital that the Government play their part in pushing back against independence in Scotland and elsewhere, and making the case for the United Kingdom.
Louise Haigh
I absolutely agree with the right hon. Gentleman. The Prime Minister has been clear repeatedly that we stand against Scottish independence and against an independence referendum. We will continue to make the case for the Union. That responsibility will be held very highly, importantly and closely by my right hon. Friend the Minister for Intergovernmental Relations and European Relations.
Catherine Fookes (Monmouthshire) (Lab)
I, too, welcome the First Secretary of State to her place, particularly as she has smashed another glass ceiling by being the first woman to hold the role. In her statement, she talked about wildfires. There was not one in Monmouthshire per se, but they were all around the edge of Monmouthshire, and there was a lot of smoke in houses in Abergavenny. I therefore really look forward to the summit she will hold on wildfires.
One thing that the First Secretary of State did not mention and which I would like to draw her attention to is civil service pensions. I have a huge number of constituents who are waiting. I know that that issue comes under her Department, and I would really like her support on it.
Louise Haigh
May I be absolutely clear that the service levels for the civil service pension scheme following the move to Capita have been completely unacceptable? Our immediate priority is to stabilise the service and give current and former civil servants the service they deserve. We are using all our commercial levers, including withholding payments, to hold Capita to account for its failure, and we will continue to do so until service levels are fully restored. The Parliamentary Secretary, Cabinet Office, my hon. Friend the Member for Doncaster Central (Sally Jameson), will shortly update the House on further progress.
Adrian Ramsay (Waveney Valley) (Green)
This summer, we have seen extreme heat and prolonged drought, with far too many people losing their lives in heatwaves, huge pressures on farming and many wildfires. We are unlikely to have another cooler summer than this year, and we need to be prepared for an ever-warming world. That requires a cross-Government approach. While there has been lots of talk of a No. 10 for the north—and devolution is welcome—does the First Secretary of State recognise that we could have a No. 10 for the future in the form of a climate protection unit in the Cabinet Office, which is needed to drive the cross-Government approach we must have to keep people safe?
Louise Haigh
I am grateful to the hon. Member. He is right that we have to learn to live with the new normal we have experienced over the summer. Cobra is the right team within the Department to co-ordinate activity across Government. We have worked closely with the Environment Agency, the Department for Environment, Food and Rural Affairs, the Met Office and others in response to the extreme heat we have seen and to prepare for future summers.
Jonathan Davies (Mid Derbyshire) (Lab)
I very much welcome what the First Secretary of State had to say about using No. 10 North to drive a pro-business culture, empower communities and deliver growth in every postcode. In Mid Derbyshire, we have one of the best projects to help her and the Government meet that aspiration in the regeneration of the Belper mills. That will bring 130 new homes to the Derwent valley and a visitor centre, where we have a UNESCO world heritage site. We are so close to securing investment from the East Midlands combined county authority to make this happen. Can she help me by offering a meeting at No. 10 North with its staff to ensure that we get that investment over the line to build the homes we need and deliver growth in Mid Derbyshire?
Louise Haigh
My hon. Friend is right to champion that important development. I would be delighted to facilitate a meeting for him in No. 10 North.
Dr Andrew Murrison (South West Wiltshire) (Con)
Will the First Secretary of State’s exercise in delivering democracy and local accountability and empowering local people include a look at large organisations that cannot be described as governmental or as quangos but that nevertheless exist firmly within the public domain, are established by statute, serve the public and are big employers, and in which the public have a direct interest, such as the National Trust? That is ripe for review—it is meant to be reviewed periodically—and it would certainly fall within the scope of the work she has been talking about.
Louise Haigh
I will take that point away. We have already made significant progress in our review on closing or merging arm’s length bodies, including NHS England and the Advisory Committee on Business Appointments. We know that we need to go further, and we will close or merge those where that is justified as part of our plans to rewire Whitehall. I will write to the right hon. Gentleman on the issue he raises.
Peter Swallow (Bracknell) (Lab)
As the Government work at pace to move power out of Westminster and into our communities, I am keen for Bracknell to get a share of that. That is why I support devolution for the Thames valley. The First Secretary of State will know that leaders across Oxfordshire, Berkshire and Swindon have written to her setting out their ambition for a mayoral strategic authority. That is excellent progress, but we have been here before and I do not want to see us lose the momentum. Will she set up a meeting for herself and her No. 10 North team with leaders and MPs from across the region so that we can sign on the dotted line, get this agreed and finally get the devolution that the Thames valley so badly needs?
Louise Haigh
It is fantastic to hear my hon. Friend’s enthusiasm. We have set ourselves such a tight deadline exactly to ensure that we fill in the map of the whole of England and do not lose the momentum of this moment. I would be delighted to meet him and his colleagues from the Thames valley to sign on the dotted line.
Manuela Perteghella (Stratford-on-Avon) (LD)
I, too, warmly welcome the First Secretary of State to her place. Last month, my constituents experienced wildfires, including the major incident in the parish of Salford Priors where Warwickshire fire and rescue service worked through extremely challenging conditions to protect homes and save lives. I pay tribute to all the firefighters, ambulance crew and those from the local community who assisted. Given the increasing frequency of heatwaves and drought and the severity of wildfires, particularly in rural areas where access to water is challenging and gaining access to burning fields is difficult, will she tell the House what urgent actions are being taken to better protect rural communities, farmland and natural habitats from future wildfire risk?
Louise Haigh
I again send my thoughts and sympathies to those affected by the wildfire in the hon. Lady’s constituency. The Prime Minister set out funding over the summer specifically for farmers in relation to resilience. We have awarded £100 million to the fire service and will co-ordinate a wildfire summit on where we need to go further, more details of which will be announced in the near future.
Dave Robertson (Lichfield) (Lab)
I welcome my right hon. Friend to her place and thank her for her earlier comments about the wildfires this summer. Staffordshire fire and rescue service saw more than 600 outdoor fires in July alone. That does not include any of those that happened in August. It is important that, in this place, we recognise the bravery of those firefighters who were out there day in, day out. Every human instinct, on looking at the wall of flame they were faced with, tells us to run the other way, but those men and women went out there day after day, ran towards danger and kept our communities safe. I thank them.
Will the First Secretary of State ensure that the voice of firefighters is at the heart of preparing for the changing climate and that they get what they need to protect our communities? I make particular reference to retained firefighters. I am aware of retained firefighters in Staffs who did an eight or 10-hour shift fighting wildfires, went home, got in the shower and went to their day job. They are absolute heroes and deserve all our respect. If we can make sure that their voices are at the heart of the response, that would be a very good thing.
Louise Haigh
I am extremely grateful to my hon. Friend for his words and praise. My grandfather was a firefighter in Chesterfield, so I join my hon. Friend in sending our thanks and gratitude to the heroes who kept us safe over the summer. He is right to draw attention to the fact that so many fires, which did not even make the news, were being quietly fought by them on our behalf. We will ensure that their voice is central to the work we do as we prepare for future summers.
Ben Obese-Jecty (Huntingdon) (Con)
Following on from that point about firefighters, one of the wildfires among the major incidents the First Secretary of State referred to in her statement was in Cambridgeshire at Holme Fen nature reserve, to which up to 20 fire engines responded, along with 150 firefighters from as far afield as Merseyside, Durham and Devon and Somerset. My thanks go to all those firefighters who assisted Cambridgeshire fire and rescue in tackling that dangerous peat fire.
Will the First Secretary of State explain how the £100 million that she referred to will be allocated? Is it a one-off payment, or is it an uplift to the current funding formula, which needs to be updated for fire and rescue? Will she give a little more detail on the asset refresh programme and whether the assets that firefighters are crucially in need of will be allocated quickly?
Louise Haigh
I am grateful for the hon. Gentleman’s support for the fire service. The £100 million has already been allocated, so that will have been done under the existing funding formula. Future allocations will be determined at the Budget.
Chris Curtis (Milton Keynes North) (Lab)
I want to ask about devolution and transport. Since we introduced Transport and Works Act orders in the 1990s, we have dramatically decreased the number of new tramlines, which we know are a big driver of local growth, being built in the UK. France has a mass rapid transit system in every town and city with a population of over 150,000 people, yet Leeds is the biggest place in western Europe without any mass rapid transit system at all. Will the First Secretary please tell us what powers she will push downwards to combined authorities to allow them to build new tramlines, and how she will make that a success?
Louise Haigh
My hon. Friend makes an incredibly important point. I have seen it for myself in places as small as Dijon in France, which have incredibly well-functioning integrated transport systems that include tram networks. That is in large part because they are able to raise and keep revenue themselves and continue to invest it in their transport networks. We are removing the veto on decision making for transport infrastructure and devolving a number of powers under the Transport and Works Act 1992, which will speed up the delivery of mass transit networks. My hon. Friend will have heard the Prime Minister’s commitment to both Leeds and Bristol and to working with their mayoral authorities to deliver that at pace.
Richard Tice (Boston and Skegness) (Reform)
I congratulate the First Secretary on her appointment. I am sure that the reforms planned to rewire the state are well-intentioned, but it seems that we are going from No. 10 plus the Cabinet Office to No. 10, No. 10 North, the Office of the Prime Minister and Cabinet, the Cabinet Office and a new OneGov Delivery Agency. We are going from two to five. Does she understand our concerns that she is increasing the size of the state, increasing the cost and slowing down decision making?
Louise Haigh
We will reduce the size of the central civil service, shift power and resources out of Whitehall and speed up decision making.
Andrew Cooper (Mid Cheshire) (Lab)
May I congratulate the First Secretary of State on her appointment and welcome the creation of No. 10 North as part of the Government’s commitment to drive good growth in every postcode? In that vein, is she aware of the series of funding decisions that have been taken by the Science and Technology Facilities Council that, taken together, will shift publicly funded research and development activity from north to south? The Prime Minister has already committed to intervening over Jodrell Bank, but will the First Secretary look at the broader issue and consider how the balance of R&D spend across the country can support economic growth in every region?
Louise Haigh
My hon. Friend raises an incredibly important point, which goes exactly to the issue that I raised about ensuring that non-elected bodies that are not accountable to politicians are not given free rein to make decisions. I will, of course, take away that issue.
Mr Louie French (Old Bexley and Sidcup) (Con)
When the British public voted to take back control, they did not vote for Westminster to later duplicate the cost of politics and the civil service. Will the First Secretary of State confirm whether civil servants now working outside London will still receive the London-weighted salary, and will Ministers now working outside London still be able to claim for London-based housing?
Louise Haigh
The staffing of No. 10 North has been done on an interim basis to get it set up and running. We will recruit permanently and, of course, those roles will be based in Manchester.
Chris Vince (Harlow) (Lab/Co-op)
Bearing in mind your family connection to the fire services in Harlow, Madam Deputy Speaker, I pay tribute to fire officers across my constituency. I also welcome the First Secretary to her place; I know that she is a friend of Harlow. I thank the Government for their investment in our town, not just through the UK Health Security Agency, but through funding for rough sleeping and the 48 businesses that will benefit from the defence investment plan. On rewiring the state, I think previous Governments have seen working with the charity and voluntary sector as a cheaper option, yet volunteers and community services have expertise that we can utilise. We need to think about how they are funded properly and supported in the long term.
Louise Haigh
My hon. Friend is right. Working with the charity and voluntary sector at local and regional level can be far better if we ensure they are properly funded and empowered to make decisions, procure and work in partnership. Through double devolution closest to the ground, we will ensure that the CVS is properly utilised and funded.
Adam Dance (Yeovil) (LD)
I welcome the First Secretary to her place. One area of the state that needs rewiring is support for neurodiverse people, because lots of decision makers do not get it. Will the First Secretary appoint a Minister for neurodiversity to the Cabinet Office to help ensure decision makers across the country get it and solve the challenges related to neurodivergence that they may face?
Louise Haigh
The hon. Gentleman raises an extremely interesting point, and I appreciate its importance. I will take away the wider point and establish what work needs to be done to ensure that properly dealing with neurodiversity is embedded across the whole of Government.
John Slinger (Rugby) (Lab)
I welcome the First Secretary of State to her place and support her determination to rewire the state. In her statement, she spoke about an underpowered centre of Government and how Ministers often lack agency. In my view, Members of this House—MPs—also often lack agency and are underpowered. In the light of the welcome devolution of greater powers to unitary authorities and metro mayors, does she agree that it is important that we discuss and debate, in this place and elsewhere, the role of MPs? In fact, I have applied for debates on the subject. As we look to rewire the state, we need to enhance the status, powers and authority of Members of this place.
Louise Haigh
My hon. Friend makes an important point. I encourage him to raise it with the Leader of the House so that we have proper time in the Chamber to debate the issue.
Ann Davies (Caerfyrddin) (PC)
Diolch yn fawr, Madam Dirprwy Lefarydd. It is great to see the powers being devolved to England to drive economic growth, yet the most minimal powers are not being considered for Wales. The promise made by the UK Government in February to jointly consult with the Welsh Government on the devolution of the vacant land tax has stalled. Will the First Secretary of State say what conversations she has had with the Treasury on that matter, and tell us when the consultation will be published?
Louise Haigh
As the hon. Lady knows, the Prime Minister said yesterday that we will be hosting a National Economic Council with the First Ministers of Scotland, Wales and Northern Ireland in order to discuss devolution at length, and the decisions around devolution that she has described will be made from there.
Vikki Slade (Mid Dorset and North Poole) (LD)
I align myself with the comments about firefighters and suggest that the right hon. Lady might need a bigger room for the summit, as there is so much interest in it.
I seek some clarity on business rates. She mentioned that devolution might lead to business rates retention, but it is the structure of business rates that is causing the decline of our high streets and the decimation of our hospitality sector. Giving local authorities such as Bournemouth, Christchurch and Poole council and Dorset council the right to cut them will simply move the problem from the business to the statutory services of the councils. Could she clarify this and expand a little on her intentions?
Louise Haigh
I am grateful to the hon. Lady for allowing me to be clear about this issue. The Prime Minister made clear his intention around business rates very early in his premiership, including on cutting business rates for pubs and hospitality and businesses that really benefit our high streets. Where we are proposing devolution is for business rates retention, encouraging areas to grow their economy and then enjoy a share of that. They will not have any difference in altering the level of business rates, but they will be incentivised and be able to keep a share of them.
Ayoub Khan (Birmingham Perry Barr) (Ind)
I congratulate the First Secretary on her post and appreciate the work the Government are doing on extreme weather. In my constituency last week, more than 60 families were left devastated by rainfall and flooding. I appreciate the £65 million that is being offered to farmers and the £100 million for emergency services, but will the First Secretary meet me and Birmingham city council to see what package could be offered to support those 60 families and to prevent a repeat of what took place last week?
Louise Haigh
I am incredibly sorry to hear about the impact on the 60 families in the hon. Gentleman’s constituency and about their displacement. Off the back of the summer and the preparations we are making for wildfires, we are now preparing for flooding, and we are making extensive preparations for a wide range of scenarios ahead of winter. I will ensure that the relevant Minister meets him to consider what response we can make to his community.
Jess Brown-Fuller (Chichester) (LD)
On the subject of wildfires, the Prime Minister has said that he does not believe our fire service have the right equipment, and I could not agree with him more. West Sussex fire and rescue service currently does not have access to wildfire personal protective equipment, and its newest off-road vehicle is 26 years old. Will the First Secretary of State or the relevant Minister please meet me and the chief fire officer of West Sussex fire and rescue to talk about how we can ensure that we keep the services on a sustainable financial footing so that they can keep us safe and we can also keep them safe?
Louise Haigh
The hon. Lady is absolutely right and raises incredibly important points. I can assure her that these issues will be considered by the wildfire summit, which I agree will need a bigger room at this rate.
Brendan O’Hara (Argyll, Bute and South Lochaber) (SNP)
A 15-minute statement on rewiring the state, yet Scotland does not merit a single mention—not even the Cairngorm wildfire. It is becoming increasingly clear that this Prime Minister is almost exclusively focused on pursuing an English domestic agenda. Having lost five parliamentary elections in a row and slumped to 17% of the vote last May, I can understand why the Labour party has given up in Scotland, but does the Minister think it is wise to make it so obvious?
Louise Haigh
Apologies, Madam Deputy Speaker; I chose to address issues that I was directly responsible for. The hon. Gentleman will be aware that fire and rescue services are well and truly devolved in Scotland. As we have repeatedly said, we will be hosting a meeting of the National Economic Council with the First Minister. The Prime Minister has already met him and is committed to devolving power outside of Holyrood, which is as equally centralised a Government as the one that we are transferring power out of now.
Tom Gordon (Harrogate and Knaresborough) (LD)
I welcome the First Secretary of State to her place. Two weeks ago I held a hospitality business roundtable, and its participants will be pleased to hear her mention a pro-business culture and cutting the barriers that businesses face. At that event at North Bar, one thing that businesses such as the Fat Badger, Westmorland Coffee and other lovely hospitality businesses in Harrogate and Knaresborough brought up was the high VAT rates that our businesses face. They are some of the highest in Europe, so will she make it her mission and this Government’s mission to look at how we can cut VAT to support local businesses and get our high streets and local areas thriving?
Louise Haigh
We are incredibly conscious of the burdens that small businesses are facing, particularly ones like the Fat Badger in Harrogate. That is why the Prime Minister set as his priority reducing burdens and cutting taxes for businesses—hospitality businesses in particular—in the first days of his premiership. High street regeneration and breathing life into our villages, towns and cities is absolutely a priority of this regime.
Caroline Voaden (South Devon) (LD)
The First Secretary of State talks about a broken political model that will cost jobs and opportunities, and I am afraid the decision that the predecessor Government made on local government reorganisation in Devon is exactly that: it will create a two-tier Devon, leaving one area behind. It has carved out three urban growth areas and dumped together all the bits that are left behind in a vast rural local authority of 100 miles from north to south with a road network equivalent to that of Luxembourg, leaving communities divided with little chance of ever being sustainable. This rural local authority has no chance of the same growth opportunities that the other ones have. This goes against everything the Prime Minister believes in about devolution being done from the ground up with the consent of communities, not from the top down from Whitehall. He told me that himself in July, so I urge the First Secretary and the Minister for Communities to listen to me, to other Devon MPs—perhaps not the Labour ones—and to the thousands of my constituents, and to review this decision.
Louise Haigh
I will ensure that the hon. Lady’s concerns are heard by the Ministry of Housing, Communities and Local Government, and I can confirm that the Communities Secretary will determine next steps on local government reform by the end of October 2026.
Danny Kruger (East Wiltshire) (Reform)
I want to be constructive because I welcome the creation of a stronger centre, with a proper political centre in No. 10 and a corporate HQ for the non-political functions. My question to the Minister is: what is the residual point of the Cabinet Office in this new structure? Some 12,000 people are currently employed in the Cabinet Office and all its quangos. Some of them will be redistributed, but what is the point of that office in future? Likewise, what is the point of the Cabinet Secretary’s post? How is anything going to change when the same people are working in the same buildings, under the same incentives?
Louise Haigh
The Cabinet Office supports the wider civil service and still fulfils a number of incredibly important functions, including cross co-ordination of governmental priorities. The Cabinet Secretary’s role is to run the civil service as a whole, and that role will always be required.
Layla Moran (Oxford West and Abingdon) (LD)
I warmly welcome the First Secretary to her post. I also welcome her good judgment in taking one of the esteemed former members of our Health and Social Care Committee, the hon. Member for Worthing West (Dr Cooper), to be her Parliamentary Private Secretary. I know the First Secretary has probably already had some of this in her ear already, but I cannot lose this opportunity. This morning, the Health and Social Care Committee, with the Education Committee, heard moving evidence about why death by suicide has now overtaken almost everything else as the No. 1 reason that we lose children in this country. Often when we dive into issues like this, we find that education is not talking to health or to the local authorities. It cannot be beyond the wit of man, or indeed a shared governance structure with the right fiscal flows, to stop these stories happening. Will the First Secretary of State meet me to discuss what we are seeing in the Committee so that we can unlock the potential in all parts of society, because without doing that, I fear that the devolution agenda might fail?
Louise Haigh
I am incredibly grateful to the hon. Member, who I have worked with over many years on a number of campaigns. As ever, she raises an incredibly important point. I cannot imagine there are many people in this House who have not been touched by suicide in one way or another. I certainly have, in my close family. It is an incredibly important point that she raises and one that should and could be easily fixed in terms of the specific problems that can lead to state failings. Of course I would be delighted to meet her to discuss how we can address this.
Mr Adnan Hussain (Blackburn) (Ind)
The First Secretary has said that the purpose of rewiring the state is to get power and resource to communities and deliver for people in every postcode. In Blackburn, patients are being treated in corridors because our hospital simply does not have the capacity it needs. So I ask: how will these reforms ensure that communities like mine, where the need is greatest, actually receive the investment we need?
Louise Haigh
Health is absolutely part of the devolution agenda. We are already pursuing a number of reforms, including the abolition of NHS England, to ensure that decisions can be made democratically at the centre of Government and then pushed locally, and to ensure that they are resourced where possible. I will take away the hon. Gentleman’s specific issue and raise it with the Health Secretary.
Max Wilkinson (Cheltenham) (LD)
The First Secretary mentioned the heroics of firefighters during the summer. Gloucestershire fire and rescue service was involved in fighting the wildfires, even though we did not have any within our county boundaries, but the funding pressures on the fire service in Gloucestershire are now so acute that Cheltenham West fire station will be closed overnight if the consultation proposals are accepted. That cannot be right when we know we are going to be having more wildfires, perhaps even in Gloucestershire. Will the First Secretary have a chat with her colleagues in MHCLG to work out how we can get the support that the county fire service and the county council need to keep Cheltenham West fire station open overnight?
Louise Haigh
We are incredibly conscious of the historical underfunding of fire services across the country. That is why the previous Administration committed an additional £100 million to local fire and rescue services. Future funding decisions will be for the Budget.
Freddie van Mierlo (Henley and Thame) (LD)
My summer tour took me to such wonderful villages as Forest Hill, Little Milton, Stanton St John and Warborough, and no one I met wants to be part of the new proposed Greater Oxford authority. These parishes have been pressganged into a new authority they do not want to be part of. Will the Government review the decision to split Oxfordshire into three—a messy solution—and support other solutions, such as the two-and-one local authority proposals?
Louise Haigh
The Prime Minister has been clear that we do not want to impose anything centrally on areas that do not want to combine areas. I am sure that we can facilitate a meeting or discussion in No. 10 North to ensure that we get the right authority, powers and resources for the hon. Gentleman’s area.
Jim Shannon (Strangford) (DUP)
I welcome the First Secretary to her new role and wish her well. The hon. Lady’s appointment comes at a critical time for the United Kingdom. She will know that the fundamental pillar of our Union is fairness, and right now the funding model for Northern Ireland is anything but fair. The current Barnett consequential framework is fundamentally broken. It fails to account for the unique, severe and acute objective needs of our public services, health sector and infrastructure in Northern Ireland. Does the hon. Lady, as the Minister for the Cabinet Office and co-ordinator of Government policy, agree that rewiring the funding formula must be treated as a priority cross-Cabinet issue, and will she commit to working across the Treasury and the Northern Ireland Office to replace the outdated mechanism with a needs-based funding floor?
Louise Haigh
As the Prime Minister said in Prime Minister’s questions earlier, the Secretary of State for Northern Ireland has opened a negotiation process with Stormont to look at funding and the funding pressures that have emerged. Fundamental to that negotiation will be reform of the decisions that Stormont makes and the way that the Executive have made decisions historically, which has repeatedly led to funding pressures. We need to ensure that these negotiations result in true reform, so we do not end up in this position again.