Cities and Local Government Devolution Bill [Lords] Debate

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Cities and Local Government Devolution Bill [Lords]

Greg Clark Excerpts
Wednesday 14th October 2015

(8 years, 6 months ago)

Commons Chamber
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Greg Clark Portrait The Secretary of State for Communities and Local Government (Greg Clark)
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I beg to move, That the Bill be now read a Second time.

I guess we have to get used to rival Opposition amendments these days, but I look forward to hearing the remarks of the hon. Member for Nottingham North (Mr Allen).

The Conservative party promised that if elected it would begin a bold new era of devolution. We made that promise because, as hon. Members on both sides of the House would recognise, over the course of the best part of a century, this country became one of the most centralised in the free world. Our cities, towns and counties became progressively more dominated by Westminster; local leaders had their undoubted dynamism and energy curbed and were made to conform to what Whitehall required; and our economy became unbalanced, its local strengths undermined by over a century of central direction from London.

People who know and love their communities have seen their good ideas frustrated, and the public’s enthusiasm for local democracy has unsurprisingly withered. The damage caused by over-centralisation is not only political; as Members know, seven of the eight largest cities outside London have for some time had a GDP per head below the national average. That stands in contrast to the experience of other European countries, where the major regional centres of their economies power the national economy ahead. If they can do it, we can do it, and we are determined so to do.

John Redwood Portrait John Redwood (Wokingham) (Con)
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Crucial to devolution is who controls the money. We are currently negotiating the new Scottish settlement, which must mean a new settlement for England, and I hope that England will have a strong and sensible voice in that. We will now have a new determination on business rates and councils, so will the Secretary of State explain how the money might work under the new regime?

Greg Clark Portrait Greg Clark
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I will. The idea that business rates raised locally can be retained by local government, rather than being sent to the Treasury, is a major step forward that colleagues in local government agreed and for which many have campaigned over many years. Having made that commitment, it was right to announce it so that our colleagues in local government could help us with the important work of putting in place arrangements to protect authorities that do not collect enough in business rates at the moment to pay for their services. It is right that that be done collaboratively, and the Chancellor announced the arrangements in order to initiate that conversation.

David Burrowes Portrait Mr David Burrowes (Enfield, Southgate) (Con)
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My right hon. Friend talks about a long campaign and the trend towards devolution, as shown not least in our manifesto and reflected in the Bill, which commands support certainly among Government Members. I caution him, however, that if Sunday trading deregulation is tacked on quickly to the Bill at a later stage, a significant cross-party group of hon. Members will vigorously oppose it on behalf of businesses, families and workers.

Greg Clark Portrait Greg Clark
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I understand the comments of my hon. Friend, who has been a clear and long-standing campaigner on this issue. As all Members know, there has been a consultation on whether to devolve to local authorities the power to set Sunday trading hours. That consultation has closed and we are considering the results, but I say to him and other Members that I and my colleagues are happy to meet them to discuss their concerns before the Government respond to the consultation.

Caroline Spelman Portrait Mrs Caroline Spelman (Meriden) (Con)
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Further to that intervention, will the Secretary of State confirm for the record that hon. Members would have an opportunity to debate the matter in a Committee of the whole House, should the Sunday trading hours extension be introduced into the Bill? I, on behalf of the Church of England, and others would want to place on the record our opposition to the extension.

Greg Clark Portrait Greg Clark
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I can certainly give that commitment. Hon. Members will have seen that the programme motion has the Committee stage being taken on the Floor of the House, as is appropriate.

Graham Allen Portrait Mr Graham Allen (Nottingham North) (Lab)
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I congratulate the Secretary of State on bringing forward this Bill and on the hard work he has done over many years in bringing devolution to our cities. Will he accept from me that bringing devolution down from Whitehall to town hall is not enough in itself? Will he look a little further at what we call “double devolution”, or taking devolution down to the communities and neighbourhoods, as we are trying to do in Nottingham at this very moment?

Greg Clark Portrait Greg Clark
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I will indeed, and I would like to reciprocate the hon. Gentleman’s compliment. Both in his role as Select Committee Chair in the last Parliament and through his personal work in Nottingham, driving the regeneration of what he terms the outer estates in his city, the hon. Gentleman brings and personifies a degree of local knowledge of the problems and of the people, many of whom he has introduced me to on my visits to his city, which it would be impossible to replicate in Whitehall. That provides a good example of why we need to devolve in exactly the way that the hon. Gentleman said.

Gareth Thomas Portrait Mr Gareth Thomas (Harrow West) (Lab/Co-op)
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Let me take the right hon. Gentleman back to the subject raised by the right hon. Member for Wokingham (John Redwood)—the issue of where the money comes from to finance devolution. The Secretary of State will be aware of the work of the current Mayor championing full fiscal devolution for London—not just of business rates, but of a series of other local property taxes. Why has the Chancellor resisted devolving control of those additional property taxes?

Greg Clark Portrait Greg Clark
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I think the hon. Gentleman is being a bit churlish. Part of the Mayor’s campaign was to have 100% retention of business rates. That has been secured, and the mayor was appropriately generous in his praise for the Chancellor for doing so. We are rightly responding to a long-standing campaign to make this devolution work, which is a very important step forward.

Jim Shannon Portrait Jim Shannon (Strangford) (DUP)
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The right hon. Gentleman is aware of the feeling of many Members about the Sunday trading liberalisation amendments that could be in the Bill. He will also be aware of the meeting of MPs and constituents over how the obligation to work will affect people’s Sundays. Before any of that happens, we are seeking the opportunity, as others have said, to debate that matter in this House. Will the right hon. Gentleman give an assurance—a cast-iron assurance—that that will happen?

Greg Clark Portrait Greg Clark
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I would say two things to the hon. Gentleman. First, the consultation has not yet been responded to, and the Government will need to take a view on the responses to it. My colleagues and I would be happy to meet the hon. Gentleman and any other Member who wants to influence what happens on this issue. Secondly, if such provisions were to become part of the Bill, it would of course be essential to debate them on the Floor of the House so that the hon. Gentleman and other colleagues have a chance to express their views and influence the debate.

None Portrait Several hon. Members rose—
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Greg Clark Portrait Greg Clark
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Let me make some progress; I will of course take further interventions a little later.

The Bill’s purpose is to give power to the cities, counties and towns of our country and to free them from some of the Whitehall rule. This has been promised in the past by successive Governments of different colours, but often never realised. It is worth asking why well-intentioned Governments have never succeeded before in making a real difference to our country’s devolution settlement. One reason why previous efforts failed is as a result of an approach whereby everything had to change in a uniform way across the country. By contrast, the fundamental approach of this Bill is to enable the Government to give expression to proposals—they may be different proposals from different places—with no requirement that the same arrangements should apply to all parts of the country simultaneously. It is a fundamental tenet of this Bill, in contrast to other reforms debated over many years, that it does not give me or any of my ministerial colleagues the power to impose any arrangement on any local authority. All it gives is the ability to give expression to a proposal, if I may put it that way.

Tom Brake Portrait Tom Brake (Carshalton and Wallington) (LD)
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I know that the Secretary of State is fully committed to the Bill. He referred to it not imposing anything in a uniform manner on local authorities or combined authorities. Does that mean that he is not going to impose a mayor on a combined authority?

Greg Clark Portrait Greg Clark
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The Bill does not include the ability to impose any particular form, whether it be a combined authority, a different combination of authorities or a mayor. It provides for the ability to give expression to an agreement made between authorities, which I think is the right approach.

Kevin Hollinrake Portrait Kevin Hollinrake (Thirsk and Malton) (Con)
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Does the Secretary of State agree that any proposal for devolution needs to be ambitious and bold, both to realise the economic potential and to capture the public’s imagination? A good example might be the Greater Yorkshire devolution bid.

Greg Clark Portrait Greg Clark
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I commend my hon. Friend’s ingenuity in seeking to elicit an endorsement of that particular proposal. What I certainly can do is to endorse the great efforts and imagination that have gone into a very attractive bid. A number of alternatives for Yorkshire have been put forward to the Government, and I will meet Yorkshire authorities to see whether a consensus can be reached. As my hon. Friend knows, a consensus is required for these arrangements to come into force.

Ivan Lewis Portrait Mr Ivan Lewis (Bury South) (Lab)
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Further to the point made by my hon. Friend the Member for Nottingham North (Mr Allen), the model of elected mayor and combined authority has profound implications for public engagement and public involvement. If this is devolution purely from Whitehall to town hall, and does not actually empower communities, that would be a major problem. This also has profound implications for the role of back-bench councillors who feel potentially marginalised by this model and for the role of Members of Parliament in holding public services to account. What is the Government’s position on the public, back-bench councillors and Members of Parliament in the light of the profound impact of the proposals?

Greg Clark Portrait Greg Clark
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The hon. Gentleman makes an excellent point. It is important that both back-bench councillors and Members of Parliament have the opportunity to exercise scrutiny of any elected officials, whether they be chairs of combined authorities or members of the cabinets put together by combined authorities or boroughs.

Greg Clark Portrait Greg Clark
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Let me finish answering the question from the hon. Member for Bury South (Mr Lewis).

Having a prominent and identifiable figure can, I think, help that scrutiny. Both the recent Mayors in London have been prominent individuals, and I dare say that they would both say that they feel pretty well scrutinised by Members of Parliament, elected members and indeed by public opinion. Under the Bill, it is open to different authorities to put arrangements together. In the case of Greater Manchester, strong powers exist for the constituent authorities, which have a long track record of working very well together to exercise scrutiny over the elected mayor. Members of those councils, of course, are linked in through that. Different arrangements are possible in different places.

Greg Clark Portrait Greg Clark
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I give way to the newly right hon. Member for Birmingham, Edgbaston (Ms Stuart).

Baroness Stuart of Edgbaston Portrait Ms Stuart
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I agree with the Secretary of State’s notion that the devolution process will be asymmetric, so that combinations will have to form themselves. In the case of Birmingham, some components are obvious, but where does the right hon. Gentleman take control to ensure that some parts around it—whether it be Warwickshire, Stratford or whatever—are not left out of the process and can be brought together into some greater framework?

Greg Clark Portrait Greg Clark
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The right hon. Lady reflects exactly why we need a bespoke approach rather than a single template—because every place is different. As we know, her city of Birmingham is the largest local authority in Europe, and it is very different from other authorities. Greater Manchester is divided into 10 separate authorities, for example. It would be completely wrong to seek to impose a Manchester arrangement on Birmingham and its neighbours. As I have said, and as is reflected in the Bill, arrangements can come forward only if there is a consensus between the local authorities that might want to be partners. That has to be forged locally. I do not have the ability either now or subsequently through the Bill to impose an arrangement on any authority, however much people might desire it.

Greg Clark Portrait Greg Clark
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I give way to the hon. Gentleman. I must make some progress, but of course I will give way to Members as I do so.

Ronnie Campbell Portrait Mr Campbell
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In the north-east of England, it seems that you are imposing a mayor on the leaders, and the feeling in the north-east is that they do not want a Geordie Boris. If this is all about democracy and sharing democracy, why are you imposing a mayor on us?

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John Bercow Portrait Mr Speaker
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I am on the side of adherence to the rules, a concept that I am sure the hon. Gentleman, in his better moments, robustly supports.

Greg Clark Portrait Greg Clark
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If the hon. Gentleman studies the Bill, he will see that there is no ability for me to impose a mayor on the authorities of the north-east. They are having discussions about the issue, and they are entirely at liberty not to accept that form of governance if they do not want it.

I gather that my right hon. Friend the Member for North Somerset (Dr Fox) has been trying to catch my eye, but because he is sitting behind me, I missed him. I will give way to him before I make some more progress.

Liam Fox Portrait Dr Liam Fox (North Somerset) (Con)
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I am grateful to the Secretary of State. I wonder whether I can draw him out a little more. In the west of England, four local authorities—Bath and North East Somerset, Bristol, South Gloucestershire and North Somerset—work closely together as a functional unit. Can he confirm that nothing in the Bill would allow any future Secretary of State to apply a structural arrangement to what is currently a very well-operating unit?

Greg Clark Portrait Greg Clark
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I am glad that my right hon. Friend has made that point, because it illustrates something that I was saying before I took interventions. Previous approaches involving a template that was imposed on places by Whitehall, including the creation of Avon, were widely resisted—correctly, as I am sure my right hon. Friend would say. They never enjoyed any public identification, affection or support. We have learnt from that experience, and the Bill is the opposite of those previous reforms of local government. All the powers that it contains are geared to allow me to implement the expression of local opinion and not to impose any arrangement in any way, and that certainly includes the authorities mentioned by my right hon. Friend.

None Portrait Several hon. Members rose—
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Greg Clark Portrait Greg Clark
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I am going to make some progress, but after I have done so, I will of course give way to Members who wish to intervene.

That is partly why we have decided to develop bespoke arrangements, but we also respect the fact that every place is very different. Greater Manchester, for instance, is a very different place from Liverpool. [Hon. Members: “Hear, hear.”] Indeed, the difference is to be celebrated. Vive la différence! They are both proud cities in their own right.

One of my regrets about the periods during which those two great cities, and others, were subsumed into the region called the north-west, which I do not think enjoyed a fraction of the identity, recognition, affection and, indeed, power they had enjoyed, is that they were sublimated, and our approach gives expression to that regret. I have been delighted, but not surprised, by the response of civic and business leaders across the country, and not just in our cities. They have demonstrated their enthusiasm for investing in a greater prominence for cities, towns and counties that can boost the economic prospects of the whole country.

Greg Clark Portrait Greg Clark
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I shall give way first to the hon. Member for Denton and Reddish (Andrew Gwynne), who has been patient, and then to the hon. Member for Birmingham, Erdington (Jack Dromey).

Andrew Gwynne Portrait Andrew Gwynne
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May I return the Secretary of State to the issue of identity? People will obviously not identify with the new office of mayor and the combined authority unless they feel that they have some buy-in. The Local Government Act 2000, which introduced the cabinet system to local government, provided for two important functions. One was the call-in procedure, and the other was the provision that key cabinet decisions must be made public and must be publicly scrutinised. Does the Secretary of State expect the same powers to apply to the office of the mayor and the combined authority?

Greg Clark Portrait Greg Clark
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Yes, I do. I think that the arrangements we require should have the potential to be equally transparent, although they may not need to be identical. We must consider them, debate them and ensure that they achieve the purpose that the hon. Gentleman has in mind.

I will now give way to the hon. Member for Birmingham, Erdington.

Jack Dromey Portrait Jack Dromey
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I am grateful to the Secretary of State.

Yesterday, after nearly two decades of leadership in the city of Birmingham, Sir Albert Bore stood down. In the city of Chamberlain, he was one of its greatest leaders. A man of immense personal integrity, he led the city through tough times, and indeed, working with the Secretary of State and others, he has been a pioneer of the new devolution settlement for England. As Albert stands down, will the Secretary of State join me in paying tribute to a remarkable man who has made a difference throughout his life to the city that he has served and loved?

Greg Clark Portrait Greg Clark
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I will do that with all my heart. Sir Albert Bore has given distinguished and devoted service for many years to a city that he loves. He has led the city through some difficult periods, and he has always done so with a calmness, authority and pragmatism that have made it possible for him and me to work very well together, despite our being in different political parties. I think the fact that, under these arrangements, Birmingham is poised to be able to advance and recover some of the civic possibility that was exemplified under the mayoralty of Chamberlain was very much in Albert Bore’s mind, and he will leave a very positive legacy to the city. His stepping aside at this point to allow a new leader to take Birmingham to the next stage is a tribute to his first concern for the city, and I am sure that all Members will wish to join us in paying that tribute.

Maria Miller Portrait Mrs Maria Miller (Basingstoke) (Con)
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My right hon. Friend is absolutely right to talk about proud cities, but I know that he will not forget proud counties such as Hampshire, which want to embrace devolution. As he will know, my part of Hampshire has a strong local enterprise partnership, the Enterprise M3 LEP, which has secured significant investment and infrastructure. Will he ensure that any plans for devolution do not diminish that strong role for LEPs, which have such an important part to play in the country’s economic recovery?

Greg Clark Portrait Greg Clark
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I will indeed. The Enterprise M3 LEP has been particularly successful in attracting high-tech businesses, and creating jobs well into the future. It is very important for businesses to be part of this.

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Greg Clark Portrait Greg Clark
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I will give way to my hon. Friend and then to the hon. Lady, but after that I must make some progress.

Kit Malthouse Portrait Kit Malthouse
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As a former councillor and, indeed, ward colleague of my right hon. Friend, may I express my violent enthusiasm for the Bill? So enthusiastic are councils across the country that I am sure my right hon. Friend will be carried shoulder high into the next Local Government Association conference that he attends. [Laughter.] Does he agree, however, that many of the worries he will hear expressed here today, and in other places, stand in the way of what could be a golden age for municipal and county government? Does he agree that one of the critical things we must all realise is that councillors are not second-class politicians, that they can be trusted to make large and significant decisions about their areas and communities, and that too often in the House we look down our nose a little at councillors and feel that we should retain a little too much power because they cannot be trusted?

John Bercow Portrait Mr Speaker
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Order. The jocularity of the hon. Gentleman’s intervention was equalled only by its length. May I gently say to Members that interventions must be brief? We do need to make some progress. The Secretary of State is always generous in giving way, but Members should not abuse that.

Greg Clark Portrait Greg Clark
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In view of the proposed violence of my hon. Friend’s enthusiasm, I am glad that he is sitting over there rather than closer to me. He was my friend and mentor in local government, and we did a lot together on the basis of our knowledge, as councillors, of our local area. I think that is very much reflected in what we are doing now. For all the discussions we will have, today, in Committee and on Report, this is, for all of us, a big opportunity to do what many of our predecessors sometimes hoped but failed to do: give capable leaders across the country the ability to make a difference to their communities. It is right that my hon. Friend pays tribute to the potential of local leaders.

Barbara Keeley Portrait Barbara Keeley
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I hope the Secretary of State will not regret giving way, because I am going to intrude on the somewhat rosy view he is developing about Greater Manchester. There was a sense of shock there about the health devolution and the imposition of an elected mayor. Manchester is not a city; the unit we are talking about is 10 separate places. I represent Salford and I have been a councillor in Trafford, and I know that feelings run high about that imposition. The real concern is about health and the role of MPs once this health devolution goes ahead. The British Medical Association is very concerned that doctors were not consulted before that decision, and neither were MPs in Greater Manchester. We find ourselves too far outside the loop, and there are real concerns about the role of an MP in expressing their constituents’ concerns on health matters in the future. This is not at all clear.

Greg Clark Portrait Greg Clark
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I am grateful for the hon. Lady’s intervention. All I would say is that the proposals on health devolution came from the Greater Manchester authorities—they were not proposed by the Government—and reflected their feeling that their local knowledge and experience could make a material difference in improving health outcomes for people in Manchester. This is important. Of course, the national health service will always continue to be accountable through the Health Secretary, the Prime Minister and Ministers to Members here, and I encourage all authorities and Members to take the opportunity to work together and not only scrutinise but influence these arrangements. I hope they will do that.

None Portrait Several hon. Members rose—
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Greg Clark Portrait Greg Clark
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I am going to make some more progress and then take further interventions later—I think I have been generous in the interventions I have taken.

Clearly there is much to discuss, but I regret the reasoned amendment—it may be a reasoned amendment but it is not a very reasonable amendment from the hon. Member for Hemsworth (Jon Trickett). I am surprised by that because he is a genial chap normally. He says that the Bill does not offer meaningful devolution, but most civic leaders, of all parties, across the country recognise that this is an important Bill that gives them the ability to take powers that previously have not been made available to them. His approach is rather like St Augustine’s, in that he is saying, “Let us have more devolution, Lord, but not just now.” I hope that in the weeks ahead the conversations that will take place between the Opposition Front Benchers and their civic leaders in local government, who very much welcome these deals and powers, will moderate shadow Ministers’ views on that. I say to him and other hon. Members that it is important to proceed as consensually as we can on this, and if he has suggestions that we can reflect in our arrangements, they are as valid coming from him as from any other Member. He will find that I am open to them, as my colleagues are.

Joan Ryan Portrait Joan Ryan (Enfield North) (Lab)
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The point is that we need good devolution and devolution that works. Let me take the Secretary of State back to the health issue because there are real concerns, expressed by the Royal College of Nursing and the NHS Confederation, about fragmenting services and the fact that devolution will not solve the significant financial crisis that our health service and social care service face. Therefore, real safeguards are needed to avoid unintended consequences and to protect the patient.

Greg Clark Portrait Greg Clark
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The right hon. Lady is absolutely right about that. Far from fragmenting health services, one of the most important things that we need to do, in the interests of all our constituents, is bring together, in closer co-operation, health and social services, because where they are not well aligned and well integrated, patients—our constituents—can fall through the cracks in the system. That is what is behind the Greater Manchester proposals.

None Portrait Several hon. Members rose—
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Greg Clark Portrait Greg Clark
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I am going to make some progress. I have spoken for half an hour and a lot of Members want to speak.

The Bill is intended to honour our pledge to bring prosperity and opportunity to every part of the country. We must address the problem of recent years of how to prevent the strength of London—valuable and desirable though it is—from overshadowing the opportunity for other parts of the country to achieve their potential. It is very important that no one and no place shall be left behind. Talking of one nation, as Disraeli said,

“the greatest good you can do for another is not just to share your riches, but to reveal to him his own.”

Our local communities are aware of their riches and they want the opportunity to show them, to make use of them and to burnish them in a way that they have been prevented from doing in the past.

Let me say a few words about the progress that was made in the last Parliament.

Greg Clark Portrait Greg Clark
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I want to make some progress and I will perhaps give way a little later.

During the last Parliament, the Government introduced the concept of city deals, pioneering the approach of having a conversation with cities, in the first instance, to see whether there was any common ground—something that might be in the local interest and the national interest, and where agreement could be reached. That was followed by 39 growth deals. My hon. Friend the Member for North West Hampshire (Kit Malthouse) foresaw my being carried shoulder high at LGA conferences, but my experience at those, having negotiated the city deals, was that the leaders of our districts and counties did not so much carry me shoulder high as pursue me down corridors demanding that they should be able to be part of this devolution, and they were right to do so. That is why we extended our devolution arrangements to the 39 growth deals. It is important that we now take this to the next level and be able to devolve powers that Ministers and public bodies have to local authorities, be they individual authorities, combined authorities or mayoral authorities.

The important point to recognise is that the Bill gives no ability to strip any powers from any existing authority. All their powers continue and all the Bill’s proposals are directed at allowing this House, if it gives its approval, to take powers from Ministers and from national bodies and vest them in local government and local leaders. All the devolution is one way; no change is made to the powers and responsibilities of the constituent councils.

Peter Dowd Portrait Peter Dowd (Bootle) (Lab)
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I want to contribute later, but I wish to say something about the principle of devolvement. The Trade Union Bill gives the Secretary of State the power to determine whether or not a trade union convenor has more or less time off in Carlisle, 200 miles away. That is not decentralisation. May we have a commitment that that sort of measure in that Bill may be devolved back to local authorities?

Greg Clark Portrait Greg Clark
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I am fully occupied with the Bill before us, and I am sure my colleagues will debate the hon. Gentleman’s proposals during the scrutiny of that other legislation.

Mims Davies Portrait Mims Davies (Eastleigh) (Con)
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I warmly welcome this Bill, and I hope to speak today in support of it and further devolution for Hampshire. The Minister has mentioned no impositions in this Bill, and we hope it will work positively with the Localism Act 2011. Where authorities have not used their powers to deliver on local plans and neighbourhood plans, as is the case in my constituency, where there is a vacuum of localism, how does he see this Bill working with the Localism Act?

Greg Clark Portrait Greg Clark
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That goes to the point about double devolution made by the hon. Member for Nottingham North. My hon. Friend is right in what she says, and the Housing and Planning Bill contains provisions to strengthen the ability of neighbourhoods to insist on the development of a neighbourhood plan. I hope she will find that welcome.

Greg Clark Portrait Greg Clark
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I am going to make some progress, but I will give way to the Chairman of the Select Committee and others before I finish.

The Bill has been warmly welcomed by local government, business leaders and local leaders of every hue. Lord Peter Smith, the leader of Wigan Council, said the deal with Manchester was “a momentous moment” for Greater Manchester because

“it gives greater control over our own destiny.”

But the Bill is, as we have been discussing, relevant to rural areas, none more so than the great county of Cornwall, where a group of Members of Parliament—it is a good example to Members on all sides—engaged with their local authorities in developing the proposals. The agreement with Cornwall was described by the leader of Cornwall Council as “brilliant news” and “the first stage”—which it is—“of a longer journey” towards further devolution for Cornwall.

In Sheffield—the constituency of the hon. Member for Sheffield South East (Mr Betts), so it is perhaps a good point to give way to him—James Newman, whom he knows well, the chairman of the local enterprise partnership, said that Sheffield’s agreement put it “at the front of the pack” and would strengthen the position of Sheffield as a “world-class centre for modern manufacturing and engineering”, which it undoubtedly is.

Clive Betts Portrait Mr Betts
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I will not demur in any way from what the Secretary of State has just said. I congratulate him on his efforts over the years to bring about the change that we have seen in the approach to devolution. In a written statement the other day, the right hon. Gentleman referred to the full retention of business rates and the fact that that will mean more resources for local government, but it will require a process of further devolution of powers to take account of the extra expenditure that local authorities will control. Will he say how that will be done? How will local authorities and this House be consulted on the measures to be devolved as part of that arrangement?

Greg Clark Portrait Greg Clark
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That is a very good question, and I am sure we shall have other opportunities to discuss it. Devolving 100% of business rates is more than the grant that goes to local authorities, so it is an opportunity to devolve more powers with the funding to local government. Again, the point of the transfer announcement at this stage is so that we can have a sensible conversation with our colleagues in local government as to what might be the appropriate activities and responsibilities to devolve. I dare say the hon. Gentleman personally and his Committee might have some suggestions to make on that.

Greg Clark Portrait Greg Clark
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I will give way to my former colleague.

Robert Neill Portrait Robert Neill
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I warmly congratulate my right hon. Friend on the Bill. On the point about further powers that might be devolved, will he in the course of his speech or during the progress of the Bill give us some more substance about how that would interact with some of the specific grants—for example, the police grant, the better care fund, and the operation of the public health grant?

Greg Clark Portrait Greg Clark
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That is probably for another occasion, but of course these things need to be discussed and debated.

I will give way to my hon. Friend the Member for South West Wiltshire (Dr Murrison), then I will conclude my remarks, not immediately, but shortly.

Andrew Murrison Portrait Dr Murrison
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I am grateful to the Secretary of State. He will know that the biggest challenge facing healthcare in the years ahead will be funding. The models for funding in local government and in the NHS are radically different. How will he reconcile that in a way that will not promote fragmentation in healthcare delivery? Notwithstanding the comments about differences in need in different areas, the big public health challenges are pretty much the same everywhere.

Greg Clark Portrait Greg Clark
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My hon. Friend has great experience in matters medical. This needs to be done by agreement. There is an opportunity to align these funds, but it should be done only if we can be satisfied that it will improve services for our constituents.

None Portrait Several hon. Members rose—
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Greg Clark Portrait Greg Clark
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Let me make some progress. I will not give way. I want to let other Members contribute, including the hon. Member for Hemsworth

No one can doubt this Government’s commitment to devolution or the incredible enthusiasm that we have met across the country, where local leaders and communities want to take control of their affairs. We have had applications from 38 places across the country—cities, towns and counties making proposals of their own. I look forward to discussing their proposals with them to see if it is possible to make use of the powers in the Bill to their advantage and to the nation’s advantage. I look forward to being in Hampshire next week to do precisely that for the Hampshire authorities.

The very process of these negotiations has been positive. They have brought together neighbouring authorities which, on occasion, have not had the most cordial of relationships, but that is changing. The involvement of business through the local enterprise partnerships, as my right hon. Friend the Member for Basingstoke (Mrs Miller) said, has been very important too. It will be crucial that agreements we make should involve the support of business if we are to make the progress that we seek.

We have briefly discussed the further opportunities. Not everything to do with devolution is contained in this Bill. I do not want to overclaim its powers as a panacea for 100 years of centralisation. The arrangements for business rate retention will no doubt come through other means, whether through the local government financial settlement or through future spending reviews, but it seems to me that this is a very important part of a suite of measures that will allow us to make the progress that is needed.

None Portrait Several hon. Members rose—
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Greg Clark Portrait Greg Clark
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I will not give way to colleagues who have intervened before. I give way to my hon. Friend the Member for Norwich North (Chloe Smith).

Chloe Smith Portrait Chloe Smith (Norwich North) (Con)
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I am extremely grateful. My right hon. Friend rightly talks of engaging people throughout the country and I welcome what the Bill does. It provides an important opportunity for engaging young people in politics. He will know that the Lords inserted clause 20 in the Bill. Can he assure me that he shares my view that we ought to look at the franchise in the round? Although I support votes at 16, we ought to consider that in the round.

Greg Clark Portrait Greg Clark
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I entirely agree. There is a debate to be had about the voting age. That should be considered on its merits in an appropriate piece of legislation, not as an afterthought in a Bill that is about existing institutions, rather than about voting in particular.

I give way to my hon. Friend the Member for Harrow East (Bob Blackman), then I will conclude.

Bob Blackman Portrait Bob Blackman (Harrow East) (Con)
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I warmly support the Bill, which my right hon. Friend and others have long championed. I refer to London in particular. My right hon. Friend has referred to the great cities in the north and in the midlands, but how will the Bill relate to London? He will be aware that London has asked for full fiscal responsibility and devolution. Will the Bill enable that? Also, will he clarify the position in relation to the setting up of the Greater London Authority, which was done through an Act of Parliament, and how that will interrelate with the Bill?

Greg Clark Portrait Greg Clark
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My hon. Friend has great expertise in these matters and he will know that the London arrangements through successive Acts of Parliament are set up in statute in a different way from the rest of the country, so for that reason many of the provisions do not apply to London. He mentions fiscal devolution, and of course the business rates retention, which is not in the Bill but is a complementary reform, will be part of that. I hope it is clear to Members on both sides of the House that this is very much the direction in which the Government are proceeding, and there will be other measures complementary to that.

During our discussions I am sure the Government will want to reflect on points that have been made. Some changes have been made in the House of Lords—for example, to make it clear that in respect of the national health service, the responsibility for health arrangements will be that of the Health Secretary. We intend that the Bill will also allow for the creation of subnational transport bodies, Transport for the North being one, so we will want to reflect the powers to enable such bodies to be established.

In the past—in Victorian times—the world looked admiringly at Britain’s model of strong civic governance and the results that it delivered for our economy and our society right across the country. During the century that has passed since those times, that strength has been diminished by the appetite of this House to centralise power in London. Every Act that made that change left our local democracy less potent and the economy less balanced. We now need to restore local power and do it with enthusiasm. This is not an approach rooted in nostalgia or romantic sentiment; it is one of hard-headed judgment.

If we want to succeed to our maximum extent, every part of the country must contribute according to the best of its talents and its abilities. That requires strengthening the powers our cities, towns and counties have. We want to see a renaissance of local power that has the potential not only to benefit our cities and regions, but to transform the prospects of the entire country—to create one nation where energy and creativity are unleashed in every part of the country; one nation where ideas and ambition are rewarded; one nation where the rewards and benefits of success are available to all. That is the purpose of the Bill, and I warmly commend it to the House.