Devolution in England — House of Commons, 2015-03-02
Topic: Government Operations
Andrew Sawford (Labour, Centre-left): It is a pleasure to respond to this interesting and constructive debate. In common with other hon. Members, when I am out and about visiting school and community groups, groups of elderly residents and so forth, I am often asked what it is like in Parliament and people share their disdain for how Parliament behaves, particularly at Prime Minister’s Question Time, for example. I regret that members of the public do not so often encounter debates such as this one, in which interesting contributions are made from all sides and a measure of agreement is reached about devolution, along with some significant differences about how to devolve power and how to engage the public in the debate The report that has provided much of the focus of today’s debate makes a strong and passionate case for further devolution in England. I found it telling that none of the submissions to the inquiry opposed further devolution. The case for localism in the UK is overwhelming, and the case for further devolution within England—the great unfinished business of Labour’s long-term commitment to devolution across the UK—is overwhelming, too The report identifies a shared consensus that we have reached a "high water mark" of powers maintained in Whitehall, and I agree with that assessment. The report identifies three key features through which changes can be made to the way in which local government is funded and to the powers it possesses. I agree with the first recommendation that "any system of devolution should recognise need while balancing incentives for local areas to build up their economies." The debate has provided an interesting airing of the tension in the report between those two aspects, which I commend to anyone looking at how best to grapple with it. I agree, too, that "power should be devolved to groups of local authorities, covering a recognisable large-scale area, that can demonstrate how they share, and work together as, a functioning economy." Thirdly, I agree that "a strong, locally agreed governance model" is required, as my hon. Friend the Member for Rochdale (Simon Danczuk) strongly suggested The report, I think rightly, does not prescribe a particular governance model, unlike this Government who are determined to force metro-mayors on English cities—without, as my hon. Friend the Member for Wigan (Lisa Nandy) said, any proper public consultation. In fact, following public consultation some years ago, that very idea was rejected We broadly welcome all three proposals. I congratulate my hon. Friend the Member for Sheffield South East (Mr Betts), the Chairman of the Communities and Local Government Committee, and the other members of the Committee, many of whom have spoken, on their excellent work in producing this report, and indeed on all the excellent work they have done over this Parliament in scrutinising the work of the Department for Communities and Local Government as thoughtful advocates for localism I am disappointed that we have had to wait eight months for the Government’s response to this report. Why are we having this incredibly important debate just four weeks before this Parliament dissolves? Could it be that the Government have something to hide? It is noticeable that on the equalisation and redistribution recommendations, the Government response does not refer at all to the importance of having a needs-based element to the funding This Government have paid lip service to localism, but the rhetoric has not often matched the reality. Far from feeling empowered by this Government, councils feel emasculated. They have been consistently attacked by the Secretary of State, who vents his opinion on everything from the level of reserves councils should hold to how often the bins should be collected. At the same time, councils have been subjected to the biggest cuts of any part of the public sector, despite being recognised at the beginning of this Parliament as the most efficient part of it There is much talk of savings and efficiency, but we know that the reality in many communities around the country is of councils trying to do their very best, but now having to make serious cuts that impact on people’s lives. Core funding reductions in local government are an average real-terms cut of 40%, but the cuts were not spread fairly. Some areas have had huge cuts. Reductions in spending have hit areas with the highest needs hardest, and projections for 2017-18 suggest that by that time there might be a difference in cuts of nearly £1,000 per head between the least and worst-affected communities On many occasions we have debated the figures that the Government use to illustrate local government spending power, so I shall not focus too much on them today, other than to say that no one and nobody—not the Local Government Association, not the National Audit Office, not the Select Committee and not the Public Accounts Committee—believes that the Government provide a true reflection of the levels of resource available to local authorities, of the deep unfairness of those cuts and of the challenges that presents. This provides an important context for understanding devolution, but let me say that I think it makes the case for devolution even stronger. We must be thoughtful about how we implement it at a time when councils are under such huge strain I cannot agree with the assessment of the hon. Member for Cleethorpes (Martin Vickers) that the districts are dying. I see districts doing incredible work. My own local authority of Corby is doing great things in our local area—building new council houses, backing regeneration and working with me to improve the local labour market by trying to cut bad practice by agencies. Our districts are doing great work, as are all levels of local government, but they are faced with really difficult times What councils want, aside from a Government who treat them with respect, is fairer funding, to which Labour is absolutely committed. Councils also want help with longer-term funding settlements, as the report makes clear, so that they can plan ahead. Labour is committed to that, too. Thirdly, they want more devolution of power and funding so that they can work with other public services to get the most out of every pound of public funding.