Shared Prosperity Fund

Debate between Jake Berry and Jim McMahon

Tuesday 14th May 2019 Westminster Hall

[Jake Berry]

If Members give me the opportunity to say when, I may try to provide an answer. One of the points we heard was that we must respect the devolution settlement across our United Kingdom. For me, as the Minister with responsibility for the northern powerhouse and devolution, that means respecting the devolution settlements that this Government have brought forward, by which I mean mayoral devolution in England, which now covers 48% of the north of England.

[Jim McMahon]

I understand why the Minister does not want to go down the cul-de-sac of the Barnett formula, but can he confirm that no region will be worse off than it is under the current programme?

[Jake Berry]

As the hon. Gentleman knows and I was just about to say, the quantum of the UK shared prosperity fund will be determined as part of the comprehensive spending review. That is the appropriate time for the Government to make commitments of the sort he seeks. However, he and the hon. Member for Aberavon (Stephen Kinnock) are correct that the Government must come forward with their consultation—I am clear that this must happen—before the comprehensive spending review to enable areas to contribute to that consultation.

We have not been sitting on our hands, as people who have listened to the debate may think. We have already engaged with more than 500 stakeholders. We have had 25 official-level engagements across the country, including with our counterparts in the devolved Administrations. In addition, in my role as Minister for the northern powerhouse, I have engaged with mayors. I have talked to them specifically about how we can work together to provide evidence to the consultation that demonstrates that, as so many people have said, the impetus for investment of the UK shared prosperity fund should come from our regions rather than being directed out of Whitehall.

Having listened to contributions to the debate, I think everyone believes that it would be nice if that happened. The point is that by working with our metro Mayors, our local enterprise partnerships and authorities across England—that is certainly my role as English Minister for local growth—to create the evidence base, we can move beyond thinking that it would be nice to proving that it is how we will get the biggest return on investment. There is work ongoing in my Department, in advance of the consultation, to ensure that that hugely important argument is made, and won, when my dear chums in the Treasury are making decisions about how the money should be distributed following the consultation. I hope that answers some of the questions that Members asked. My response to the main question is that the consultation will start very shortly.

Let me move on to some of the specific points that were made. On public transport investment, Members may not have seen the most up-to-date figures, which are available on the Treasury website. They show that transport capital expenditure is higher per capita in the north of England than in London. People often talk about total capital expenditure across the north of England versus London. There are some parts of the north of England where very few people live, so it is much more realistic to talk about capital expenditure per capita, and it is higher per capita in the north of England.

Many colleagues talked about the weakness of Green Book calculations for making investment decisions, which I think is acknowledged across the House. That is why the Government came forward with a rebalancing formula in the industrial strategy. That formula looks at areas that are less developed, depending on how we define that, and at factoring future growth into Green Book calculations. Changes have been made recently to ensure that community benefit is also included in such calculations.

My hon. Friend the Member for Newton Abbot (Anne Marie Morris) commented on the ring-fencing of coastal money. By the end of the current spending period, the Government will have invested £200 million directly in coastal communities through our coastal communities fund, which is about driving prosperity on our coasts. The UK shared prosperity fund must not be viewed on its own as the only support the Government give to drive regional growth. We have contributed £53 million to part of the exciting growth deal in the highlands and islands, which has resulted in things such as the north coast 500 route, which I hope to visit this summer, prospering.

Oral Answers to Questions

Debate between Jake Berry and Jim McMahon

Monday 10th December 2018 Commons Chamber

[Jake Berry]

If I may respond in Cornish, I take the opportunity to wish my hon. Friend and all his constituents Nadelik lowen. With only 109 shopping days to Brexit, I can reassure my hon. Friend that the UK shared prosperity fund will be simplified and targeted, and will tackle the challenges of our whole country, including those facing Cornwall.

[Jim McMahon (Oldham West and Royton) (Lab/Co-op)]

This weekend, the mayor of Liverpool, Joe Anderson, resigned from the Northern Powerhouse Partnership. He says he no longer sees the benefit, given that it was set up by a Government who just do not want to listen to it. At the same time, the Institute for Public Policy Research North paints a stark picture, where the north gets £2,500 less per head in investment on transport than London. The northern powerhouse Minister literally has one job to do. What’s going on?

[Jake Berry]

As Harry Enfield and his chums would say about anyone from Liverpool, including me: “Calm down, calm down.” I can confirm today that we have announced £38.4 million for Liverpool. I completely refute the IPPR figures. They exclude 60% of spending across regional boundaries. They do not apportion spending where the benefit is felt. If the hon. Gentleman wants to give some advice to his chums in the left-wing IPPR think-tank, he might say that next time they produce such figures they should print them on softer paper.

Local Government Reform: Greater London

Debate between Jake Berry and Jim McMahon

Wednesday 17th October 2018 Westminster Hall

[The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Jake Berry)]

I congratulate my hon. Friend the Member for Romford (Andrew Rosindell) on securing this debate, which is both hugely important for his constituents and nationally important in the wider framework of devolution. It is very timely and deeply appropriate given the situation we find ourselves in.

The debate has been about the future, but let me dwell for a moment on the history of local government reform in London, which to some extent put us in this situation. I do not have to tell my hon. Friend, who is proud to have been born and bred in Essex, about the 1960 Herbert commission, but it is worth focusing briefly on the Greater London Council years. We can learn a lot from our history. During those years, when the current shadow Chancellor was chairman of the finance committee, what we used to refer to as “loony left” politics came to the fore. Of course, that is now mainstream Labour politics. As someone from the city of Liverpool, I was interested to see the Labour party, at its conference in that city, move back to endorsing the views of Derek Hatton: that councils should set illegal budgets and that there should be a general strike.

[Jim McMahon]

I suppose I ought to intervene, given that I was more or less invited to by that comment. To be absolutely clear—this came from the leadership of the Labour party a couple of years ago, so it is not a new response: we do not support the illegal setting of council budgets. We think councils have been given a rotten settlement, and in many places they struggle to meet their legal obligations.

The question for the Government is how they can provide the resources councils need to be confident that they can set a legal budget that provides security for the people who need it, particularly in adult social care and children’s safeguarding. The failure is not on the part of council leaders. No one proposes setting an illegal budget in any local authority in the country, but there are leaders who say, “We don’t think we can meet our legal obligations if this carries on.” So far, the Government have failed to provide a convincing response.

[Stewart Hosie (in the Chair)]

Order. Now the politics are out of the way, I am sure we will get back to local government reform in Greater London.

[Jake Berry]

Well, of course the GLC was in league, through the Militant movement, with Derek Hatton’s Liverpool Labour party. It is worth focusing on the GLC. The hon. Member for Oldham West and Royton (Jim McMahon) parades the veneer of a gentle left—of herbivorous, lentil-munching, north London lefties—but the people of Liverpool and those who lived under the GLC know what the hard-left Labour party is really like. Labour councillors went around Liverpool handing out 30,000 redundancy notices to the people who worked in that city. As someone from Liverpool, let me take the opportunity to say that we will never forget that we could not get our bodies buried or our bins emptied. That is what the hard left of Militant and Momentum does to cities.

[Jim McMahon]

Will the Minister give way?

[Jake Berry]

I will in a moment. It is all very well the hon. Gentleman saying that that is not the view of his party, but for a shadow Minister to endorse that view on the main platform on the first day of the conference was an absolute disgrace. I will give way to the hon. Gentleman, which will afford him the opportunity to apologise for that, and to apologise to the people of Liverpool for the devastation both there and under the GLC.

[Jim McMahon]

rose—

[Jim McMahon]

My response is simple: what on earth does that have to do with local government reorganisation in London? The Minister has an opportunity to lay out something that has been absent during his tenure. What will the Government do to push real power down to local authorities—not just to newly created institutions through deals done behind closed doors? We need a genuine framework that pushes power down to people, communities and neighbourhoods and addresses the issues raised in the debate. That is what we are here to discuss, and we look forward to hearing his reply.

[Jake Berry]

I will take your guidance, Mr Hosie, and segue neatly from history to geography, which was always my favourite subject at school, but let me say briefly that the Labour party does not like the fact that the mask slipped. We should take every opportunity to inform the public in London and in our wider United Kingdom what lies behind that mask.

I move on to the geography of the Greater London Authority. I am sure that my hon. Friend the Member for Romford has noted that, in fact, the GLA and the Mayor have had some notable success since their establishment. I am sure that he, like me, celebrates the London Olympics hosted by the former Mayor of London, my right hon. Friend the Member for Uxbridge and South Ruislip (Boris Johnson).

--- Later in debate ---

[Jake Berry]

Perhaps I should have stuck to history, which may be a slightly safer subject for me to talk about. My hon. Friend may think that it should have been called the Essex Olympics, but I am not sure that that would have had the same international cut-through as the London Olympics. It was a significant event, not just for London—and Essex, where it took place in the traditional Essex town of Stratford—but for our entire nation.

Those Olympics, which were thanks in no small part to the late, great Baroness Jowell and the Mayor of London at the time, my right hon. Friend the Member for Uxbridge and South Ruislip, showed how the GLA and London can be at their best. Another previous Mayor of London, Ken Livingstone, introduced the congestion charge, which was extremely well implemented and significantly reduced traffic levels in the city. The Oyster card is also hugely popular, which the GLA and the Mayor were responsible for.

My hon. Friend said that today should be the start of the debate about the future shape of mayoralty and local government in London. He will understand that starting the debate for change will be hard; it will be a long road and probably require primary legislation. Most importantly of all, it will require consensus. From the Government’s point of view, we hope any changes would come from a ground-up movement rather than a central diktat from Whitehall. That plays very well with my hon. Friend’s desire for his constituents to have more control of their lives.

We must not forget that the Conservative party is the party of English devolution. We did not create the Mayor of London but we have successfully created six Metro Mayors, who were elected in May 2017. Since that date, a Mayor of Sheffield has been elected and, subject to the consent of the House, next Monday we will finalise the creation of a Mayor north of the Tyne, in Newcastle. Those elections have brought the biggest single transfer of power from Whitehall back to the people of England since the first world war. As Conservatives, we should celebrate that and be deeply proud of it. All those mayoral devolution deals have been about transferring power.

[Jim McMahon]

The Minister talked about the biggest transfer of power since the second world war—

[Jake Berry]

First world war.

[Jim McMahon]

The first world war. Does that take into account the power that has been removed from local authorities, particularly on housing and education?

[Jake Berry]

I assume the shadow Minister is talking about the Greater Manchester Combined Authority and the transfer of power up from local authorities to the Mayor across the country. In areas of devolution, it has been done by consensus; he was a leader of one of those local authorities that are now part of the combined authorities, so I guess he would support that.

This debate is very important when looked at in the wider context of English devolution. The Government will shortly publicise their devolution framework, in which we will talk about what devolution should look like in the rest of England and give a clear roadmap for devolution across England, in compliance with a Conservative party manifesto commitment.

In London, there is an opportunity to talk about how we might improve the scrutiny and accountability of the Mayor of London and of Mayors in general. For inspiration, my hon. Friend could look to the mayoral model put in place by our Government in Manchester, where rather than having an additional tier of GLA governance, it is a combined authority, with representatives—the leaders of those borough councils—working with the Mayor in a collaborative partnership, but with a strong voice for their borough in that relationship. London should look at new solutions like that, on the proviso that they are always ground-up and locally supported.

--- Later in debate ---

[Jake Berry]

Yes, I am. I hope that is helpful, and I congratulate my hon. Friend’s new council leader on winning the election.

Another reason why it is appropriate for boroughs to lead the conversation about whether the existing GLA boundaries and structures are appropriate is simply that they have not changed since the 1960s. Our world has changed very much since the 1960s. A lot of the debate about English devolution is driven by a wider debate about the future of our country after Brexit. There is an ambition and desire out there for what I refer to as “double devolution”—taking a very European idea of subsidiarity and embedding that in the relationship between local government and national government.

The Government have committed to come forward with the devolution framework to try to stimulate the debate about what devolution should look like across England. As we start with year zero of creating a new, ambitious, globally competitive country, what part can the constituent local authorities—in some cases, parish councils and unitary authorities in our local government family—play in driving forward our nation’s ambition?

I will touch on some of the specific points made by my hon. Friend in his excellent speech. When he started speaking, I wrote at the top of my piece of paper that the people of Essex want to take back control, although he got round to saying that himself. That plays into a much wider debate we should be having about people’s identity. As a proud Member of Parliament representing Lancashire, I am aware of the strength of the Lancashire identity, which in many ways was undermined in local government reform when we lost the city of Liverpool, the city of Manchester and large parts of Greater Manchester. There is a real role for Members of Parliament and local councils in reinforcing those historic county boundaries.

My hon. Friend spoke passionately about his identity as someone born in Essex and representing Essex but having been sucked into the London agglomeration in some way. I feel similarly about Lancashire. Of course, Lancashire is one of the few county palatine boroughs in our United Kingdom, having been awarded the status by the King for protecting England from marauding Scots—something we occasionally see today. We in Lancashire are deeply proud of that county palatine status. We love our friends north of the border, with whom we have a great relationship, but we also like to be cognisant of our history.

My hon. Friend was edging towards saying, without realising it, that the GLA may be better represented or reformed with a Manchester model: a combined authority with a strong voice for the boroughs. The late, great Tony Wilson, of Manchester music industry fame, said:

“This is Manchester—we do things differently here.”

Where Manchester leads, many parts of the country can follow. The GLA was set up in 2000, and the debate has simply moved on. That is why the Government, and I as a constituency Member of Parliament, see this as a welcome time to debate the future of the GLA.

[Jim McMahon]

The nearest equivalent organisation is London Councils, where council leaders across the Greater London area come together. Could that organisation be given combined authority status, with powers similar to Greater Manchester’s and the Mayor possibly taking the chair? Is that where Government thinking is leading?

--- Later in debate ---

[Jake Berry]

If the hon. Gentleman had listened to my earlier remarks, he would have heard me say that the Government are not suggesting that the GLA should be abolished, and we are not suggesting the creation of a combined authority. That is because the Conservatives, the party of English devolution, believe that devolution works best in England when it is ground-up and locally led. It is not for Whitehall to dictate what devolution should look like in Manchester, as he will appreciate, or to dictate what the changes—if any—that come forward for the GLA should be. It is for local politicians, led by Members of Parliament having this debate, to come forward to Government with ground-up proposals that the Government will look at, as we do with all such proposals.

[Jim McMahon]

I am sure the leaders of Yorkshire will be delighted with the spirit of that. Does that mean that we are heading towards a one Yorkshire devolution deal?

[Jake Berry]

I think the leaders of Yorkshire are always delighted when they hear me talk about devolution. As the hon. Gentleman knows—I do not want to be drawn too far from the subject of the debate—the Government have been clear: we remain committed to the implementation of the south Yorkshire city region deal, known as the Sheffield city region deal.

As someone who has lived in Sheffield, I am keen to see the near-£1 billion of Government money go into that economy. In that city there is the bizarre situation where four Labour authority leaders cannot agree collectively about what power they should have to release that money. The hon. Gentleman spoke of the challenges faced by boroughs across England in local government spending, and it strikes me as a little bit odd that when the Government are saying to four Labour boroughs, “Here is £30 million a year that we would like to give you to invest in growing your economy,” those Labour boroughs are more interested in fighting each other than in drawing that money down. However, we are straying.

[Jim McMahon]

Will the Minister give way?

[Jake Berry]

I will not, because we are straying a long way from the subject of the debate and I want to conclude my remarks.

This has been an interesting debate. I welcome the lead role that my hon. Friend the Member for Romford is taking in driving the debate on the future of the GLA and the mayoralty, and the relationship between the two. There has been no change since the 1960s. Although we cannot guarantee that any change will come, if he can command a broad coalition of boroughs across London who would like to talk to the Government about what change could look like, we will welcome those discussions.

Draft Cambridgeshire and Peterborough Combined Authority (Business Rate Supplements Function)

Debate between Jake Berry and Jim McMahon

Tuesday 10th July 2018 General Committees

[The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Jake Berry)]

I beg to move,

That the Committee has considered the draft Cambridgeshire and Peterborough Combined Authority (Business Rate Supplements Functions) Order 2018.

The draft order, which was laid before the House on 7 June, will confer powers on the Mayor to levy a business rate supplement in line with the devolution deal. I commend the draft order to the Committee.

[Jim McMahon (Oldham West and Royton) (Lab/Co-op)]

It is a pleasure to serve under your chairmanship, Mr Robertson. We do not object to the draft statutory instrument. However, we want the Government to be more proactive in building strong relationships. We are aware of the letter that the Secretary of State sent last week, which put a question mark over the £400 million to be devolved as part of the next stage of investment. We really need to get people around the table and have a mature conversation about what is next for devolution.

Question put and agreed to.

Draft Cambridgeshire and Peterborough Combined Authority (Business Rate Supplements Function) Order 2018

Debate between Jake Berry and Jim McMahon

Tuesday 10th July 2018 General Committees

[The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Jake Berry)]

I beg to move,

That the Committee has considered the draft Cambridgeshire and Peterborough Combined Authority (Business Rate Supplements Functions) Order 2018.

The draft order, which was laid before the House on 7 June, will confer powers on the Mayor to levy a business rate supplement in line with the devolution deal. I commend the draft order to the Committee.

[Jim McMahon (Oldham West and Royton) (Lab/Co-op)]

It is a pleasure to serve under your chairmanship, Mr Robertson. We do not object to the draft statutory instrument. However, we want the Government to be more proactive in building strong relationships. We are aware of the letter that the Secretary of State sent last week, which put a question mark over the £400 million to be devolved as part of the next stage of investment. We really need to get people around the table and have a mature conversation about what is next for devolution.

Question put and agreed to.

Oral Answers to Questions

Debate between Jake Berry and Jim McMahon

Monday 30th April 2018 Commons Chamber

[Jake Berry]

We are already investing some £67 million in the Humber and the Greater Lincolnshire local enterprise partnership, and I note that £20 million of that is going into my hon. Friend’s constituency. He will be aware that we committed in the industrial strategy to work on a business case for a Grimsby and Cleethorpes town deal. I hope that, in demonstrating that success, we can put our northern power towns at the heart of the northern powerhouse.

[Jim McMahon (Oldham West and Royton) (Lab/Co-op)]

There is no surprise that the lived experience of people in Shields is of growth not happening, because when the northern powerhouse was launched in 2014, Government capital spending per person was £543 higher in London than in the north-east. London has seen its investment increase to £1,352 per person but, instead of the Government’s closing the gap, the north-east saw a cut in capital spending that increased the gap by 17% to £634 per person. How can the Government credibly claim to be the champions of the northern powerhouse when the evidence says that the money has not followed?

[Jake Berry]

I am certainly not going to take any lectures on the northern powerhouse from the hon. Gentleman, because after his election he described it as the “northern poorhouse”. Unlike Opposition Members, the Government are behind the north, not least by investing £13 billion in northern transport—more than any Government in history, including the Labour Government.

Oral Answers to Questions

Debate between Jake Berry and Jim McMahon

Monday 4th December 2017 Commons Chamber

[Jake Berry]

That is a tempting invitation to support a bid to the Transforming Cities fund. That is exactly what the fund is designed to do. When people make good, ground-up, locally supported proposals, the fund, on a competitive basis, should be there to support them.

[Jim McMahon (Oldham West and Royton) (Lab/Co-op)]

London received almost £2,000 per person in transport investment, while the figure for Yorkshire and the Humber was just £190, the north-east just £220, and the north-west £680. Even if every penny of the £800 million that has been referred to was allocated to the north, it would amount to just £53 per head. When will the northern powerhouse get the money it needs to compete on a par with London?

[Jake Berry]

I am sure that the left-wing think-tank, the Institute for Public Policy Research, is delighted its figures have been repeated in the Chamber, but they are simply incorrect. They do not include 60% of our national infrastructure spending or the spending on HS2, which I know, as someone who was born and brought up in the north, and who lives and works there, will benefit the north more than any other part of our country.

Oral Answers to Questions

Debate between Jake Berry and Jim McMahon

Monday 30th October 2017 Commons Chamber

[Jake Berry]

The Mayor of Greater Manchester, Andy Burnham—[Interruption.] We have to give Labour Members something to cheer about, don’t we? He is doing an exceptional job in driving forward Manchester and its economy. The hon. Lady will be aware that a recent guarantee was put in place for all European funding. What happens after that guarantee is ultimately a matter for this House.

[Jim McMahon (Oldham West and Royton) (Lab/Co-op)]

Far from being devolution to the street, this is more like a devolution cul-de-sac. Is it not the truth—[Interruption.] The Secretary of State can learn something from this. Is it not the truth that devolution has stalled? That is bad news for those with devolved settlements, but it is worse news for the 32 million people in England who do not have any devolution settlement whatever. When can we expect to see the framework for devolution in England?

Oral Answers to Questions

Debate between Jake Berry and Jim McMahon

Monday 17th July 2017 Commons Chamber

[Jake Berry]

I can confirm to my hon. Friend that we will of course deliver on our general election manifesto pledge to extend coastal communities funding. I also wish to take the opportunity to thank him for the work he did when he was doing this job; I am all too aware that I am walking in the shoes of a giant.

[Jim McMahon (Oldham West and Royton) (Lab/Co-op)]

Devolution, as promoted by the former Chancellor and former Prime Minister, is no doubt dead in the water. Few real powers have been devolved and even less fiscal devolution has taken place. The only constant theme is the year-on-year cuts passed down to our local government base—the very base that should be the foundation on which devolution is built. When will Ministers bring forward a meaningful plan for devolution? When will they address the Treasury push for continued cuts to our local government base?

[Jake Berry]

Devolution has been one of the great successes of this Government and I have been delighted to welcome Conservative colleagues as our new metro mayors, from James Palmer in Cambridgeshire and Peterborough, Ben Houchen in the Tees Valley and of course Andy Street in the West Midlands, to Tim Bowles in the West of England. The Labour party talked about devolution for years, but what did Labour do? Absolutely nothing. We are getting on with devolution and we are delivering for every region of this country.