Devolution in England — House of Commons, 2015-03-02
Topic: Government Operations
Clive James Charles Betts (Labour, Centre-left): Without going into the details of Greater Manchester, which I do not know all the aspects of, this seems to be a debate between the combined authority, and the collective of leaders there, and individual local councils about further localisation. In my view, devolution does not simply stop with the transfer of power from central Government to a local authority or combination of authorities; it is about how combined authorities enable devolution within their areas to existing local councils, and how those local councils ensure that devolution goes out of the town hall door and into local communities. We cannot be too prescriptive of those stages in this debate, but I understand the concern about losing national frameworks. The idea that everything in the national health service works similarly across the country is not true. Indeed, the words "postcode lottery" did not come from local government but from the NHS because things have been done differently in different parts of the country. More accountability through mechanisms that will potentially be set up is the way forward. I hear the concerns, but they are a debate for Members to have with their colleagues in councils in Greater Manchester The Committee defined fiscal devolution as: "handing to local authorities the power to raise money through a range of existing and new taxes and charges; some responsibility for setting those taxes; and the facility to borrow." We contrasted that with decentralisation transferring powers over service delivery and spending to local authorities. We welcomed these developments, but said that greater control over local spending did not constitute devolution. In that sense, we are disappointed with the Government’s response, which seems to equate fiscal devolution with a desire to raise taxes everywhere. The two are not the same. Fiscal devolution is about making tax-raising decisions at a different level, not necessarily about raising taxes through those decisions. I think the Government missed that point I hope the Minister agrees with the Prime Minister, when he said the other day: "Today’s agreement paves the way for a referendum, that could deliver an assembly that’s not just a spending body but is actually responsible for raising more of its revenue too. And to me that is responsible devolution, that is real devolution and I think that is vital for Wales" It is vital, too, for Manchester, London and the other major cities that we are going to devolve powers to. The Prime Minister has made a really important point. It means that those who spend taxpayers’ money must be made more responsible for raising it. That is an absolutely fundamental point. Devolution is not simply about handing money out from the centre and allowing more say in how it is spent at local level. It is about holding local politicians to account not just for spending the money, but raising it in the first place. That is fundamental. If the Government resist that, they will stop the general flow of movement throughout the House and the country that requires genuine devolution that is more than simply decentralisation of spending powers to take place.