North-East Devolution

Debate between Kevan Jones and Lord Wharton of Yarm
Thursday 26th November 2015

(8 years, 5 months ago)

Westminster Hall
Read Full debate Read Hansard Text

Westminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.

Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.

This information is provided by Parallel Parliament and does not comprise part of the offical record

Lord Wharton of Yarm Portrait The Parliamentary Under-Secretary of State for Communities and Local Government (James Wharton)
- Hansard - - - Excerpts

It is a pleasure to serve under your chairmanship, Mr Percy. We have had an interesting and wide-ranging debate, and I congratulate the right hon. Member for Newcastle upon Tyne East (Mr Brown) on securing it. I know he has had an interest in regional policy and in regional economic policy in particular for a long time. One way or another, the comments today have covered the past 20 years or so of north-east regional economic policy and the things that Governments of different colours have done to try to support growth in a region that is close to my heart and those of the right hon. Gentleman and the hon. Member for North Durham (Mr Jones).

I will touch on a number of the broader topics that have been raised before talking specifically about the points that have been made on the devolution deal that the north-east has struck. First, I challenge the assertion that I have heard so many times in this place about the deal that the north-east gets and the suggestion that we somehow do not get our fair share and that the north-east is somehow treated unfairly. Public sector spending per head in the north-east is higher than in any other English region outside London, and the difference between London and the north-east is marginal at best.

Over the past five years—that period of austerity Government—Opposition Members have stood so often in this place to bemoan the decisions that the Conservatives and the Liberal Democrats had to take in government to put right the economic mess that we inherited from 13 years of profligate Labour rule. Taking two authorities at random, in that most challenging of periods, Durham doubled its reserves to something in the region of £214 million and Newcastle doubled its reserves to something in the region of £100 million.

Kevan Jones Portrait Mr Kevan Jones
- Hansard - -

Because of their unitary status, those councils have been able to save money. The fact of the matter is that the budget has been cut by 40%. The reason for the reserves is that the next round of rationalisation will involve redundancies, which have to be paid for. The idea that there is a magic pot of money lying in County Hall in Durham to pay for future services is complete nonsense.

Lord Wharton of Yarm Portrait James Wharton
- Hansard - - - Excerpts

I have stood in this place many times and had this discussion many times over. I welcome the steps that Durham County Council has taken to drive efficiency, and I welcome the recognition that local authorities have a responsibility to find value for money and that every penny that government spends, whether local or national, is a penny that we take out of the economy and away from taxpayers. I recognise all those things, but none the less it deserves to be stated on the record that across the period of the last Parliament—a period of austerity—Durham managed to double its reserves by saving £20 million a year. Whatever purposes it might choose to use those reserves for, it is important to put that point on the record, because it is rather at odds with the impression that is sometimes given by these debates and the statements that Opposition Members make.

Kevan Jones Portrait Mr Jones
- Hansard - -

Will the Minister give way?

Lord Wharton of Yarm Portrait James Wharton
- Hansard - - - Excerpts

I will, but I want to move on from Durham County Council’s reserves.

--- Later in debate ---
Kevan Jones Portrait Mr Jones
- Hansard - -

The Minister has to recognise the fact that he is part of a Government who have reduced the budget of Durham County Council by 40%. The council has to make redundancies. How will it pay for them without those reserves?

Lord Wharton of Yarm Portrait James Wharton
- Hansard - - - Excerpts

The fact is that over the past five years, Durham County Council has added more than £100 million to its reserves, but the rhetoric here is of a council that one might think did not have a penny to spare. It is welcome that local authorities look to find efficiencies and to spend money carefully. I do not deny that difficult spending decisions have to be taken, but it is right to challenge the assertion by some Members that the sky is about to fall in. That assertion has been made in all but those exact words so many times in this place over the past five years. We should put on record the reality and recognise that the spending power per head of Durham and Newcastle remains as it has for the past five years: significantly higher than the average spending power per head of local authorities across England.

Having put those matters on record, I want to focus on some of the devolution issues at the heart of the debate. We started with discussion of the old regional development agency. I agree with the right hon. Member for Newcastle upon Tyne East on some things, so he is clever to find an area on which he knows we do not agree. I was never a great supporter of the old RDA. I felt that it did not give Teesside the recognition it deserved. I accept that we disagree about the work of the old RDA, but I continue to be grateful for and pleased by the changes we saw when the local enterprise partnerships were introduced. Having the Tees Valley LEP allows the area to determine its future and to look to co-ordinate with more close local control on where we want our economy to go and what we want it to do.

I accept that there is disagreement about what the structures should look like, but it is important to put on record my support for the decisions that were taken and my ongoing support, particularly for my LEP. My desire is to see all LEPs, including those in the north-east or the rest of the north-east—however one might want to term it—being successful and contributing to and driving economic growth in the north of England and elsewhere.

Lord Wharton of Yarm Portrait James Wharton
- Hansard - - - Excerpts

The right hon. Gentleman raises an important point. I recognise some of the good work that the north-east LEP has done, and I put on record the Government’s gratitude to those from the private sector, local authorities and the public sector who have, through their joint endeavours and contributions, been able to deliver some of the successes that have been enjoyed in the north-east. However, some genuine concerns are being expressed, not least in the regional media, about how that LEP is working. I want to see those matters resolved and to ensure that the private sector voice is retained, is strong and is recognised for the value it can bring. I also want to see the public sector and local authority representation working with that voice to deliver on the shared agenda to grow the economy of the LEP’s area.

I clearly recognise some of the great things the LEP has achieved and the good work done by many individuals contributing to it—I thank them for that—but I want to see the problems talked about in the media resolved. We know those problems exist, and I want to see real and lasting recognition of the need for that private sector voice and the cross-sector co-operation to drive forward the economy in the interests of the region.

Kevan Jones Portrait Mr Jones
- Hansard - -

Does the Minister share my concern that the chair of the north-east LEP has been appointed as the director of another member of the LEP’s company? Even if there is nothing wrong with that in terms of transparency, concerns would be expressed if a local councillor was doing that.

Lord Wharton of Yarm Portrait James Wharton
- Hansard - - - Excerpts

I have lost count of the number of debates in which I have had the opportunity to discuss a range of issues to do with the north-east with the hon. Gentleman and he has named and targeted an individual Conservative from the region. We should focus on the bigger issue: how we get the LEP to do the best job it can for the communities that Opposition Members represent and for the area. We all want to see the area realise its significant potential. Some of the more party political or partisan comments do not contribute towards making progress in that direction and securing the sort of economic growth we want to see.

Economic growth, of course, is important. It comes in many ways to the heart of the devolution argument and discussion. We want devolution to drive economic growth. We recognise that the potential across the north of England is significant. If we can unlock that potential, it can make an even greater contribution to the UK’s economy. If between now and 2030 the northern power- house grows its economy at the average rate that the UK economy is predicted to grow, that will add in the region of £40 billion in real terms to our GDP. That will be good for the people who live in the north and good for the UK as a whole. We want to see that delivered. That is something that all parties can agree on. We perhaps differ on some of the detail of how it should be done, but there is agreement to some extent that devolution has a role to play in empowering local decision makers and unlocking economic opportunities.

The economic opportunities in the north-east are significant. We have had mention of Nissan, that great Conservative legacy to the region. We have seen announcement after announcement from Nissan in recent years about its plans for expansion and to extend the new lines that it wants to produce. That has a significant impact not only in Sunderland with the direct jobs that it delivers, but through the supply chain in the region and the whole UK. Our region should be proud that Nissan in Sunderland, in our region, makes more cars than Italy. That is a real achievement that speaks to the quality of the workforce, the dedication of the people of the north-east and the things that can be done if companies choose to invest there. It is a great showcase for what the north-east can do.

Along similar lines, the hon. Member for North Durham mentioned Hitachi at Aycliffe, another good news story and a significant investment in the region of just short of 1,000 direct jobs, with 8,000 or so jobs through the supply chain. We want to secure as many of those jobs as possible for our local economy and secure the value that the supply chain can deliver for the local communities surrounding that investment.

In the spending review yesterday, it was announced that there would be new enterprise zones across the north-east and Tees Valley areas. There will be significant extensions of zones that exist and new areas will be given enterprise zone status and support. There will be new opportunities to drive our economy and unlock the potential about which I have already spoken.

Lord Wharton of Yarm Portrait James Wharton
- Hansard - - - Excerpts

I will certainly join the right hon. Gentleman in recognising and praising the excellent work done by Mrs Thatcher’s Government in delivering Nissan. The core point that he makes about public and private partnership, with the Government looking at the private sector’s needs and working with it to ensure we deliver and secure the investment we want, is important. I suspect that we perhaps have differences in how that should be delivered, which is what I want to deal with when I talk specifically about the devolution deal in the north-east.

Kevan Jones Portrait Mr Kevan Jones
- Hansard - -

On Nissan, will the Minister also pay tribute to the Labour-run council in Sunderland, which plays a key part in working with other agencies to deliver investment? On the most recent development in relation to Hitachi, Durham County Council, a Labour authority, has played a key role in attracting Hitachi to Newton Aycliffe.

Lord Wharton of Yarm Portrait James Wharton
- Hansard - - - Excerpts

The hon. Gentleman’s comments underline the point that I have just made in response to the intervention from the right hon. Member for Newcastle upon Tyne East. Such things are not delivered by a single individual or even a single policy or a single actor, whether national Government, local government or the private sector. It happens occasionally, but they are often delivered by collaboration and the recognition that we can put aside things on which we disagree, so that we can focus on something of broader benefit that we all want to deliver.

Devolution takes us further along the path. It gives the north-east the opportunity to hold closer to it the powers and levers that will enable it to unlock the economic potential. Devolution does not work by taking powers away from local authorities. I have been keen to stress that message during the progress of the Cities and Local Government Devolution Bill, but I am keen also to stress it with specific regard to the deal that local authorities in the north-east have made with the Government. It is not about powers going up and being taken away from local government, which has happened before, particularly when local authority mayors took powers that were held by local councillors, cabinet members and executive officers at a local level, and they moved upwards to become an elected individual.

Instead, the devolution we are proposing is about taking Government powers and moving them down. It is about empowering local decision makers to make decisions over areas of policy that they know best, because they are making those decisions closer to the communities and economies affected by them.

--- Later in debate ---
Kevan Jones Portrait Mr Jones
- Hansard - -

I have asked this question before, in Committee, so I do not expect to get an answer. I accept the point that the Minister is making about areas being different and needing different solutions. However, the north-east was told quite clearly that it could have devolution, but a Mayor was not part of the model. There was no devolution settlement on the table.

Lord Wharton of Yarm Portrait James Wharton
- Hansard - - - Excerpts

The hon. Gentleman has asked that question many times, and I have answered it many times in the past. No area is compelled to accept devolution and no area will be compelled to have a metro Mayor, but where areas want a package of powers akin to that in Greater Manchester, there is an expectation from Government that a Mayor would come as part of the deal. That is what has happened in the north-east. I have a copy of the deal here. If it was more easily reachable, I would wave it energetically at hon. Members. It has been signed by local authority representatives, because a deal is a two-way thing. It recognises that we have reached a consensus on the powers and the structures that are agreed to deliver our shared objectives.

Lord Wharton of Yarm Portrait James Wharton
- Hansard - - - Excerpts

The right hon. Gentleman has generously given me the chance to reach into my little red book and find the document in question, which I will now wave, signed as it is by so many of the great and good of local government in the north-east.

It is for local authorities to agree these deals through their leadership and to pass the resolutions to enact them through their democratic structures. If one local authority decides to remove itself from the deal, we will not allow that to prevent other local authorities from going ahead and delivering it, but, consistent with what I have already said, nor will we compel any area to be part of a devolution deal. If Durham decides not to pass a resolution, or through a council mechanism decides not to be part of a north-east deal, if the other local authorities want to go ahead, we will work with them to deliver it without Durham, should that be their choice. I hope, though, that that is not a choice that they will make—the hon. Member for North Durham and I disagree on that.

With a deal will come a number of areas of control and a number of possible levers with which local authorities will be able to help to drive the economic growth that we want to see.

Kevan Jones Portrait Mr Jones
- Hansard - -

Is the Minister aware that the Conservative members on Durham County Council support the approach agreed by the county council at its last meeting, which was that we should actually ask people by putting the matter to the ballot?

Lord Wharton of Yarm Portrait James Wharton
- Hansard - - - Excerpts

The hon. Gentleman tries, as always, to nudge the debate back to a slightly more party political platform. Mischievous as he occasionally is, I absolutely recognise that it is for the local members in local authority chambers to vote as they wish and speak on behalf of the residents they represent. I put on record the excellent work done by County Councillor Richard Bell in the Conservative group on Durham County Council. He is a great advocate not only for the area he represents but for our region as a whole.

As I have said on the record quite clearly, I hope that Durham will be part of the north-east devolution deal. At the end of whatever processes Durham County Council decides to go through in its own area, I hope that it will pass a resolution to be part of the deal, because of what I think it could do for the north-east. If Durham chooses not to, and the other areas that have signed up to the deal none the less want to go ahead, we will work with them to deliver that, but I hope that we will not find ourselves in that position.

What comes with the deal? Why do I think that these deals are a good thing? I was interested in the somewhat straw man-esque discussion of artificial boundaries, or the A1 having more than one Mayor along its length—the solution to which, I suppose, would be a very long and winding constituency travelling either way up the full length of the road. When we are driving forward devolution deals, we have to look at all the existing boundaries and try to see through them to what makes sense economically. We are not going to say to areas, “You must follow one geography or the other”; that is exactly the opposite of what we are doing. We are saying to local areas, “Come and tell us the geography on which you want to do a deal. Identify the economic geography that makes sense to you. You know your local economy better than Whitehall and Westminster possibly can. You live and work in it; you understand it. Come to us and show us the area and the package of powers that will best enable you to drive growth in your area.” That is the approach we are taking, and its value has already been demonstrated clearly by the disagreement in this debate about what should happen in the north-east of England and in Tees valley. It is the approach that I think will ultimately stand the test of time and be successful.

With the deals, of course, comes more control over a number of areas. In the north-east, that includes strategic planning controls for the Mayor and closer working with UK Trade & Investment to drive investment. We saw in the spending review the announcement of additional support for UKTI, as well as for northern powerhouse investment work to bring investment to the north of England. That is welcome, not only because it gives us additional power to sell the UK abroad but because additional investment will go not just to London and the south, although we want them to continue to be successful, but further, coming up to the north, the north-east, the north-west, Yorkshire and Humber. We want to see that succeed and we want closer co-operation between local decision makers and the bodies that deliver that support.

Joint responsibility is being agreed for employment and skills to redesign post-16 education across the north-east through its devolution deal. Again, that will recognise that the particular needs of the economy in that area are different from the needs of the economy in the Tees valley or Greater Manchester, or, indeed, in London or the south-east or wherever. We want to ensure that local decision makers have more of a say about and more control over how to target the available funding and ensure that the future needs of the economy are met by the skills of the workforce.

--- Later in debate ---
Lord Wharton of Yarm Portrait James Wharton
- Hansard - - - Excerpts

In his questions, the right hon. Gentleman in some ways gets to the heart of some of what devolution is going to be about. On foreign investment and UKTI, the Government are saying that we want to see additional focus and support from that national body, which has been successful at selling our country abroad with its “Britain is GREAT” campaign, for the north of England to drive the opportunities that exist. With that additional support will come the opportunity to bring in more investment, but it is not for me to tell any future Mayor of the north-east—or of the Tees valley, Greater Manchester or wherever—how to go about doing their job and how to maximise the opportunities that exist. There are different opportunities in different places, which will require different approaches. That is the very essence of why devolution can be a powerful driver of growth. It is about empowering the people who know best what decisions are right.

I want to make a couple of points about the skills budget, because the right hon. Gentleman entered into an interesting area of debate. I know the importance of skills to our regional economies. I recognise the concern that he wants to project, but I do not agree with it. Having more localised control over skills is a significant positive step. The over-19s skills budget is going to be devolved to the north-east through the devolution deal that has been signed, and the north-east combined authority and Mayor will have more say over—and joint work to be delivered over—the 16-plus skills budget, which is to be welcomed.

Even more important than that—which is positive—is what devolution will allow us to do in future. It has started in this debate: we can already see that there are matters on which Members would like things to be a bit different or to go a bit further. There is a debate to be had about that in any devolution settlement. The value of the Cities and Local Government Devolution Bill, which has gone through its Committee stage and will no doubt come back soon to the House on Report and Third Reading, is that it gives us the powers we need to go further when it is appropriate to do so.

Greater Manchester is on its third round of asks for devolution of powers. When it has been given a package and agreement with the Government, it has either identified things that the Government were unable to agree to initially and asked us to work with it to deliver them, or, through the process of thinking about the powers it has, it has identified new opportunities and come back to Government saying, “We want to go further” in this area or that. It is saying, “We want to take the next step,” or, “We want to bring in a policy area that we had not even thought of before.” That remains on the table because of the nature of the devolution we are talking about: it is evolutionary and bespoke; it is custom-made for each area it affects; and it is being delivered along sensible and locally determined economic lines.

Kevan Jones Portrait Mr Jones
- Hansard - -

Will the post-16 budget be protected when it is devolved?

Lord Wharton of Yarm Portrait James Wharton
- Hansard - - - Excerpts

As the hon. Gentleman will have seen announced only yesterday, both the Department for Business, Innovation and Skills 19-plus skills budget and the Department for Education 16-to-19 skills budget are protected in cash terms. In a time when we are still having to take difficult spending decisions because of the legacy left to us by the last Labour Government, that was a significant and welcome statement about the money that will be available to deliver on that agenda. Significant sums will remain available in those areas, which are being protected in cash terms because their value is very much recognised by the Government.

The north-east devolution deal will create a north-east land board to bring more public land into use and to look at the assets that exist across the region and how they can best be used to drive economic growth and improve opportunities across the region, tying in with some of the strategic planning work that will be going on through the new Mayor. By co-ordinating across local authorities, there will be the power to deliver that.

The devolution deal for the north-east is an exciting opportunity. Consider the investment fund of £30 million every year for 30 years, with, if that is spent wisely, the scope to increase—not to mention the additional funds that that can leverage in. The nearly £1 billion in that pot alone over the life of that part of the agreement is significant. I hope that a Mayor elected by the people of the north-east will focus that spending on the things that will drive forward the economy of the north-east—on the right things, determined by the local people who know what they are, to grow that economy and generate further growth and investment. That will enable more to be spent and the virtuous circle to continue.

This is an exciting time and an exciting agenda. I am pleased that the region I call home—Tees valley and the north-east, however the boundaries are drawn around it—is at the forefront of this process. I hope that those who have concerns will express them constructively and engage in this process, which can deliver real benefits to the people represented by the Members attending this debate today, with the honourable exception of the hon. Member for Croydon North, although I know that his genuine and deep-seated interest in the process of devolution extends to the north-east, as it does more broadly in the Bill that we have discussed. I hope we can use this process to enable those people to drive real change and bring real benefits to their regions.

I commend the Government’s programme of devolution. I look forward to seeing it through, and I hope that in a few years’ time hon. Members will come here to talk not about their concerns but about where they want it to go next, because it is doing so much already.

Cities and Local Government Devolution [Lords] Bill

Debate between Kevan Jones and Lord Wharton of Yarm
Wednesday 21st October 2015

(8 years, 6 months ago)

Commons Chamber
Read Full debate Read Hansard Text Read Debate Ministerial Extracts
Lord Wharton of Yarm Portrait James Wharton
- Hansard - - - Excerpts

I have had discussions with my hon. Friend the Member for Altrincham and Sale West, I recognise the comments that he makes and I will of course listen carefully to the further discussion today. I will set out the Government’s position on the issue in due course, but I wish to make it clear that the intention is to be consensual. We intend to listen to concerns that hon. Members might raise and try to find a way whereby we can agree across this House on what we want to deliver. I recognise the important point being made and I am sure we will discuss it further.

Amendment 4 is about mayors being a condition of devolution. We are seeking to remove the requirement that a mayor cannot be a precondition of transferring local authority or public authority functions to a combined authority, because it is wrong in principle, and it is at odds with our manifesto policy and manifesto commitment. In addition, if the requirement remained, it would mean that the deals we have made already with Greater Manchester and with Sheffield could be in jeopardy. The requirement is wrong in principle.

Kevan Jones Portrait Mr Kevan Jones (North Durham) (Lab)
- Hansard - -

I welcome this movement, but can the Minister explain why the Secretary of State has always insisted in his discussions with the combined authority and the north-east council leaders that a prerequisite for any devolution is having a mayor?

Lord Wharton of Yarm Portrait James Wharton
- Hansard - - - Excerpts

I think the hon. Gentleman may have misunderstood the direction of travel that I am setting out, but I am happy to clarify it and I hope to go on now to address his concerns.

--- Later in debate ---
Lord Wharton of Yarm Portrait James Wharton
- Hansard - - - Excerpts

It is important to be clear about what the devolution we are talking about does. It takes powers that exist in Whitehall—powers that rest with public bodies—and transfers them to local decision makers. It does not affect the arrangements that are already in place for local government, which recognise differences and the communities within them. We will allow them, of course, to pool areas of policy if they wish to do so, but nothing in this legislation would allow us to compel them to do so.

In his Budget speech in July, the Chancellor was clear:

“The historic devolution that we have agreed with Greater Manchester in return for a directly elected Mayor is available to other cities that want to go down a similar path.”—[Official Report, 8 July 2015; Vol. 598, c. 329.]

All of that is reflected in our manifesto commitments to

“legislate to deliver the historic deal for Greater Manchester”

and to

“devolve far-reaching powers over economic development, transport and social care to large cities which choose to have elected mayors.”

Kevan Jones Portrait Mr Kevan Jones
- Hansard - -

I would like the Minister to clarify something. As he knows, the north-east combined authority area is not a metro area, because it covers a large rural area. He said that the agreement is between the combined authority and the relevant Minister, but the insistence so far from the Secretary of State has been that the only way the north-east combined authority will get devolution is if it has an elected mayor. Is the Minister now saying that there is an option for devolution without an elected mayor for the north-east?

Lord Wharton of Yarm Portrait James Wharton
- Hansard - - - Excerpts

The hon. Gentleman will recognise from the quote by the Chancellor that I just read out that where areas want significant devolution on the scale that Greater Manchester has and where they have metropolitan areas at their heart, the Government will ask for that requirement to be part of that deal process. However, nothing in this Bill will allow the Government to compel any area to have a mayor or to have devolution. This is an enabling piece of legislation. The hon. Gentleman is absolutely right that in the deal that we are discussing with the leadership in the north-east area—all of it from his party—there is that expectation and requirement, and it is a deal on which great progress is being made.

--- Later in debate ---
Lord Wharton of Yarm Portrait James Wharton
- Hansard - - - Excerpts

My hon. Friend is of course right about the importance of sharp accountability with respect to the ability of a metro mayor to drive the change that devolution presents an opportunity to deliver. This direct approach from the elected metro mayor should help to ensure that we get the maximum benefit from a process of devolution. That has been shown the world over, when many big cities with mayors deliver real improvement and success for the areas they represent. It is a proven model, one that we want to see delivered through this devolution agenda. It is also one, importantly, that will not be imposed on any area.

Kevan Jones Portrait Mr Kevan Jones
- Hansard - -

Will the Minister just be honest? He says that he is not going to impose a system, but he well knows the alternative. Unless the north-east accepts an elected mayor, no devolution will take place. That is a take-it-or-leave-it provision; it is an imposition by any other name. The Minister should admit that he wants to impose an elected mayor on the north-east irrespective of what local people or local politicians want.

Lord Wharton of Yarm Portrait James Wharton
- Hansard - - - Excerpts

I listened carefully to hon. Gentleman’s contribution, and I know that he is exercised by this issue. I do not recognise the narrative that he put forward as entirely fulsome in its representation of the processes that are under way. [Interruption.] I will explain my comments thus. The Bill does not allow the Government to impose devolution or a model of devolution on any area. It allows areas to reach agreement with the Government about devolution when they see the benefits to their areas from it.

In the north-east—an area represented by the hon. Member for North Durham (Mr Jones) and one close to my heart and interests—we have had productive discussions with local authority leaders. Those leaders are not exclusively Conservative or even Liberal Democrat, as we are talking to Labour local authority leaders, too, and they are working with us to find the right package to deliver devolution. The Bill gives no power to impose devolution on the north-east and we would not attempt to impose a model of that devolution without the two going in tandem. The opportunity is there in the legislation for areas to ask for devolution; we can enter into discussions and deals can be made in a bespoke and bottom-up way to ensure that every area gets the right deal.

We have been clear throughout this process—it was clear in the manifesto on which this party stood at the last election—that if areas with large metropolitan city centres want a devolution package similar to the one that Greater Manchester has agreed with the Government, we would expect a metro mayor to be part of the package.

--- Later in debate ---
Lord Wharton of Yarm Portrait James Wharton
- Hansard - - - Excerpts

Of course. Areas that choose not to be part of devolution—and it is their choice; devolution will not be imposed on anyone—will suffer no disadvantage as a result of that choice. I shall be happy to meet my hon. Friend and his colleagues to discuss any concerns that they may have about what may come to be proposed for the area that my hon. Friend represents, and also about the implications should an area choose not to be part of the process. This is not about imposition; it is about consensus, working together and co-operation.

Kevan Jones Portrait Mr Kevan Jones
- Hansard - -

Will the Minister give way?

Lord Wharton of Yarm Portrait James Wharton
- Hansard - - - Excerpts

I will if the hon. Gentleman is very brief. I know that he is enthusiastic to have his say.

Kevan Jones Portrait Mr Jones
- Hansard - -

I am, because what the Minister has just said is not true. What has been said to the seven local authority leaders in the north-east is they must either accept the mayor and the devolution settlement or not receive the extra money that has been trumpeted by the Tory party in the north-east and by the Minister’s friends. The only way to get extra resources for the north-east is to accept an elected mayor and the system to which the Minister is agreeing.

Lord Wharton of Yarm Portrait James Wharton
- Hansard - - - Excerpts

I am not sure how much more clearly I can express myself. We will not impose devolution on any area, but any area is free to come forward and negotiate with the Government to make a deal for the delivery of devolution if it wishes. Areas that do not choose to be part of devolution will not have anything taken away from them as a consequence, and when devolution is delivered, it will be about powers coming down. Local authorities will only see powers transferred up to a metro mayor when they opt for that to happen. I think I have made myself very clear on that important point.

There is one more important point that I want to make to Opposition Front Benchers, about amendment 4. It is imperative that when the conditionality amendment that was made in the other place is put forward, we are able to deliver on our manifesto commitments, and so that we can do that, the changes that the Government have proposed today need to be made.

Cities and Local Government Devolution Bill [Lords]

Debate between Kevan Jones and Lord Wharton of Yarm
Wednesday 14th October 2015

(8 years, 6 months ago)

Commons Chamber
Read Full debate Read Hansard Text
Lord Wharton of Yarm Portrait James Wharton
- Hansard - - - Excerpts

Yes, I do. We will have a very full and reasonable debate. Having listened to the contributions from hon. Members throughout the day today, I can see that there are many areas of agreement. I am sure that we can find consensus to drive forward an agenda that appeals to people not just in this place but from a much broader base. As I travelled the country talking to local authority representatives, including many who are not from my own political party, I found that devolution is wanted by the business community and by the communities that we represent, as it can drive forward real improvement.

I also started to note a list of those colleagues who were supportive in principle of the Bill and its aims. I stopped because the length of that list became so long that I would not be able to read it out. I thought it would be appropriate to reference some of those Members who indicated their support. My hon. Friends the Members for Carlisle (John Stevenson) and for Hertford and Stortford (Mr Prisk), and the hon. Member for Nottingham North (Mr Allen) all indicated not only that they support what we are trying to achieve but that they want us to go further and do more and that devolution could be an ongoing process that they want to see delivered successfully.

My hon. Friends the Members for Altrincham and Sale West (Mr Brady) and for Newton Abbot (Anne Marie Morris) gave qualified support, raising issues that I know we will have the opportunity to discuss as this Bill is taken forward and that I hope we can address in order to build as broad a consensus as possible for an agenda that appeals across a broad range of people in our country because of the change that it can deliver.

Some specific issues were raised during the debate, including that of mayors. I recognise some of the debate that has taken place, and I want to take this opportunity to address some of those concerns in the time that I have. My hon. Friends the Members for Altrincham and Sale West, for York Outer (Julian Sturdy), for Bury North (Mr Nuttall), for Hazel Grove (William Wragg), the hon. Members for Sheffield South East (Mr Betts), for Manchester, Withington (Jeff Smith), for Kingston upon Hull North (Diana Johnson), for Birmingham, Erdington (Jack Dromey), for St Helens South and Whiston (Marie Rimmer) and the right hon. Member for Birmingham, Hodge Hill (Liam Byrne) all raised the issue of mayors. I want to be clear what we are talking about. The metro mayors that we want to deliver are not mayors like those who have gone before. This is a different thing. This is not the civil mayor whom we have had for many years in this country, nor is it the local authority mayor on whom many areas did indeed vote leading to their adoption in some areas and not others. This is not a mayor who will take up powers from local authorities unless those local authorities choose to give them. This is a mayor who will hold, and be accountable to the public for, powers coming down from Whitehall—powers that we are devolving from public bodies. It is a very important point of difference. I recognise that there are some hon. Members who have not appreciated that we are talking about a different type of mayor. The metro mayor model is different from what we have seen before.

My hon. Friends the Members for The Cotswolds (Geoffrey Clifton-Brown) and for Cheadle (Mary Robinson) raised the issue of planning, which I want to address. I also want to mention the nature of planning powers in order to show why some of the concerns that have been quite rightly flagged up in the debate can easily be addressed by the content of the Bill. The purpose of the Bill is not to force powers to move up from local authorities. It is to enable us to devolve powers down from central Government—devolve powers that are held by public bodies down to accountable areas to deliver services and improvements for the people. Local authorities will not have powers taken away, but they can choose to pool them by agreement. That is the intention of the legislation and the intention of the Government, and that is what we will do. To hon. Members who have raised concerns about planning, let me say that there is nothing that would force change to the planning powers that their local authorities already have unless those local authorities decided among themselves to pool those powers because they recognised the benefits that that could bring. A range of issues has been highlighted by individual Members.

Lord Wharton of Yarm Portrait James Wharton
- Hansard - - - Excerpts

I will give way, but for the final time.

Kevan Jones Portrait Mr Jones
- Hansard - -

Why, then, are the Government insisting that the north-east should have an elected mayor before getting any package of devolution, despite being quite happy to give Cornwall devolution? Will the Minister give the people of the north-east a say in whether they get a regional elected mayor? If we had imposed regional assemblies, he and others in the Tory party regionally would have argued vociferously against it and we would have been pilloried.