That this House has considered the future of the UK constitution and devolution.
It is a pleasure to open this debate in Westminster Hall. Members may or may not know this, but the Minister is a keen historian—he was in gainful employment before he came into politics. The great thing about this debate being in Westminster Hall is that this is the site of the 1265 Parliament, where Simon de Montfort made his name. I do not want to give a history lesson, least of all to the Minister, who knows the history much better than I do, but that Parliament was noted because it was about the relationship between the localities and the centre, and the powers of the Crown, Parliament and the magnates—barons and others—not just taxation. Although money and tax matter hugely—indeed, they are largely the story of how Parliament developed—other things matter, too, for the health of this United Kingdom. I refer, in particular, to the relationship between local areas and regions and the centre, and I want to address that this afternoon.
The millions of people watching this debate may think to themselves, “What is the point of debating something like the constitution and devolution?” These things change quite slowly, so why should we give up our time to think about and debate them? There are two big reasons why this debate matters, particularly now. First, it will surprise nobody in this Chamber or the House that our Union and our constitutional arrangements, including the relationships among and within the four nations of the United Kingdom, have been under strain in recent years, and that has had all sorts of political consequences. It is important that we find better ways of working together as four nations and within our nations. That is the first reason: it is important for the health of our country in its most fundamental sense that we debate this issue and come to a broad agreement.
The second reason is the economy, on which we have numerous debates; we have interminable discussions about inequality, levelling up and regional disparities. Although Members on both sides of the House, quite responsibly, sometimes have competing visions about how best to address those problems, we all share an understanding that we need to address them. Governance —how this country is run and works—is as central to the economic future of this country as decisions about tax, regulation and public spending.
I thank the hon. Gentleman for making such a powerful opening speech. I have just come from a meeting with Cheshire and Warrington business leaders, and they echoed exactly what he says. Their frustration is that they have made a plea for a devolution deal for Cheshire and Warrington but have not yet had a reply from Ministers. We agree, and there is an appetite out there.
I thank the hon. Member for his intervention, which is well timed, because I am about to come to his very point—not so much about the tardy response from Ministers, but about the necessary engagement on devolution deals and other such mechanisms between localities and the centre.
It is fundamentally important that we regularise the local government and devolution structures across England, in particular. I will come to the other nations, but let me first focus on England, which was the topic of the intervention. In a county such as Hertfordshire, there are district councils and a county council. In central Bedfordshire, a neighbouring county, there is a unitary system. In the Tees Valley, there is a mayoralty, but the powers are different in that mayoralty from the west midlands, and the powers are different again in London. I have probably missed out other forms of local government as well.
When we speak to people who are trying to navigate their way through our local government structures, they will often say—they definitely this say to me—that it takes them forever to figure out who is responsible for what. I have not even mentioned such things as local enterprise partnerships or the chambers of commerce, which overlap all those structures—let alone NHS trusts, integrated care boards and the other things that cut across the structures.
I mention that because it is critical, both for the health of our democracy and how our country runs and for economic growth—holding in mind those two things —to regularise local government structures, so that we do not need to worry about whether there is a devolution deal in this area or whether the right Minister or MP is lobbying in the most effective way. Everybody will have a clear sense, broadly speaking, of whether they are in one of three areas: in a county, where we should have unitaries; in a smaller urban area, where there should be a mayoralty with certain powers; or in a large urban area, such as Manchester or London, where the mayoralty should perhaps have greater powers. We need to regularise the structures so that we can finally move to a system in which people understand what the powers are and who is responsible for what. That responsibility is critical for democratic health and for economic investment and growth.
I am not exactly sure what the hon. Gentleman is proposing that regularisation should look like. In Scotland, we have a system of unitary authorities—32 local councils—that meet together in the Convention of Scottish Local Authorities, which is the forum where negotiations with the Government happen. Local leaders are all members of and involved in COSLA, and they have a relationship with the Government through that system. Is he suggesting something similar, with a kind of unitary authority structure?
As with the intervention from the hon. Member for Weaver Vale (Mike Amesbury), the hon. Lady’s intervention provides me with a perfect segue to talk about Scotland and, indeed, Wales and Northern Ireland. We live in one United Kingdom—I appreciate that we have opposition from the hon. Lady on that particular question—and it is important that local people in all parts of the United Kingdom have broadly similar relationships with the centre, with Westminster and Whitehall, regardless of whether there is a devolved Assembly or devolved Parliament. By achieving that, we will help to knit our country closer together and, again, build the understanding and awareness of responsibilities with the population, business and economic actors in this country and outside it.
The next part of my remarks relates to the second Chamber, the House of Lords. People have been talking about Lords reform for more than 100 years and I am pretty sure that in another 100 years, people will still be talking about Lords reform, although I do not intend to be here then—[Interruption.] You never know.
Personally, I am not a proponent of an elected second Chamber, but I strongly understand and recognise the concerns of those who feel that it needs an elected element. It is clear to me that there is a way to help to sort out some of the glaring inconsistencies and problems with the House of Lords. We are all familiar with those issues, whether we are talking about a sense that it is too big, concern about certain people who have been nominated to it, the fact that there is no retirement age, or various other things that a lot of people have problems with, in my view very reasonably. We can try to kill two birds with one stone by engaging local leaders in the broader governance of the country and by using the second Chamber partly to help that process to happen.
By doing that, we would help the voices of local people to be heard, because they would not just elect a local leader to deal with their local issues, and that was that. That local leader would then have a national voice that would help the governance of the wider country. Presumably, we are all here to help to improve the governance of our country. Where there are local leaders who have something to add and to offer, that should be shared and voiced, which could benefit everybody. In my view, we should use the House of Lords to do that.
Dr Dan Poulter (Central Suffolk and North Ipswich) (Con)
I hope that we can all agree that the bishops and hereditary peers have no place in a House of Lords. For the moment in the House of Lords, representation is disproportionately by peers from London and the south-east. Will my hon. Friend outline what could be done to improve representation from other parts of England and the United Kingdom?
This is how that could work. First, alongside what I was saying about local leaders, a standardised system of local government—whether people live in unitary authorities or a mayoralty, and whether they live in England, Scotland or Northern Ireland—would by necessity spread representation all over the United Kingdom. That is how we build in a lot of regional balance. Secondly, we could change the system by ensuring that, in the weight of the total number, there was always at least a significant minority—if not at least 50%—represented in that sort of way, rather than this being just about appointments. Ultimately, lifetime appointments cannot be made on a regional basis; even if we tried to, people are free to move around. However, if by necessity, in an ex officio capacity, the Mayor of Newcastle had a right while they were Mayor to speak in the second Chamber, it would have that regional balance.
This matters because not only would it improve democratic accountability and increase economic growth, as well as helping investors understand who to go to, but it would help to spread good practice and ideas. Constitutions matter because of what they practically do to the governance of the country. We currently have ad hoc relationships that depend on the political colour of the Government and, for example, of mayoralties, and whether particular individuals are perceived to be effective. To some degree, that is always the case. However, where we find good practice happening, we need to highlight it and have a vehicle for it to be aired in a public forum. Parliament, if nothing else, is a vehicle for the public airing of issues and debate. Linking local governance with the review of the second Chamber in that way would be effective.
I will add a bit more detail about why, economically, it makes a big difference if we get more standardised control of how our local government works, and how it links in with central Government. I like data—it is important. If we look at the data for most of the 20th century, inequality in GDP terms between the regions of the United Kingdom was quite low by European standards. However, by 2010, we had started to perform quite badly in comparison with our European partners, and we have continued to perform badly in that vein. I happen to think that that is more about the strength of London than it is about the weakness of certain parts of the country, but we can have a debate about that.
It is a great pleasure to see you in the Chair this afternoon, Ms Fovargue. I thank the hon. Member for Hitchin and Harpenden (Bim Afolami) for his detailed introduction, much of which I agree with.
Like many hon. Members, I am a passionate advocate for devolution, because I am also a passionate advocate for democracy. When I see surveys that tell us that more than 50% of adults believe it does not matter who they vote for as nothing will ever change, and over 60% of people believe that Britain has a ruling class that will always rule the country, no matter what, then the message to me is very clear: something needs to change.
Democracy is fragile and cannot be taken for granted. We can protect our democracy by ensuring decision making is brought closer to people, so they have greater confidence in the decisions that are being taken on their behalf. We can do better than making areas jump through multiple hoops, at the cost of great time and expense, to take part in a competitive bidding process that is often neither fair nor transparent, the terms of which are often ultimately dictated by the centre. Genuine devolution is about empowering local communities to choose their priorities.
Speaking as a former council leader, and sitting next to another former council leader, my hon. Friend the Member for City of Chester (Samantha Dixon), it seems there is a certain level of distrust and snobbishness about the ability of our local leaders to be granted additional levels of power and resources. As we know, the biggest prizes on offer always seem to come with the precondition of an elected Mayor. I believe our local councils have proved themselves more than capable of working together, particularly through the pandemic, when there were multiple examples of cross-border working on a subregional basis.
My constituency of Ellesmere Port and Neston is governed by Cheshire West and Chester Council, which along with Cheshire East Council and Warrington Borough Council forms part of the Cheshire and Warrington Local Enterprise Partnership. It is not a metropolitan area or a city region. It does not have a single urban centre, but is made up of several large towns, one city and a considerable number of smaller towns and villages. It does not really have an established identity. It is not a defined place, as such, and it is made up of separate areas of economic activity.
It is a pleasure to serve under your chairmanship, Ms Fovargue. In the next six or seven minutes, I hope to set out a contra-view of the Union. I compliment my hon. Friend the Member for Hitchin and Harpenden (Bim Afolami) on bringing forward the debate. Colleagues will know that this is a subject close to my heart to which I have given considerable thought; they may think differently at the end of my speech, but I hope they will find it interesting none the less.
Let us take the old joke of a visitor coming to a rural area and asking for directions. The farmer, or whoever it is leaning on the gate, says, “Well, if I were you I would not start from here.” Sometimes, when we approach a subject such as this, there is that sense of that if we disregard where we are at and start from some idealistic blank page, or some other framework that does not exist in reality—if we believe hard enough and screw our eyes up tight enough—we can imagine that it is that way and start from there and a bright new dawn awaits us. I just do not think that is where we are at.
I am afraid that when I hear words such as “regularising”, I immediately think of words such as “cookie cutter”, “wait your turn” and “stand in place”, because that big stamp that is coming along will get you as well and turn you into something—into a moveable piece that fits with the rest of the puzzle created somewhere else. I find instinctively that that does not fit with me. Members will not hear a defence of the status quo from me. This is not an exercise in party political point scoring—which Members have avoided so far, and I commend them for that—but about exploring what the Union means, what its future holds and what role devolution might have to play in that.
I hold an organic view of a Union that has started and developed inevitably from things such as our location in the world; the temperate climate we enjoy, our maritime nature and identity have all contributed to the nation that we are. We cannot and should not ignore that, and we would not wish to. The system of law we have is, again, an important part of our identity. Identity—there we are. How has our reputation, for good or ill, developed around the world? The values we hold, the Judeo-Christian principles that have been at the heart of so much of who we are as a nation—these things have shaped us. Inevitably, that has dictated and shaped the relationships we have formed around the globe.
It is a pleasure to serve under your chairmanship, Ms Fovargue. I congratulate the hon. Member for Hitchin and Harpenden (Bim Afolami) on securing this debate on an issue that is really important to the local authorities, businesses and constituents in my area. I am pleased that this is not just a debate on devolution to the nations, but on devolution within England as well.
The question of devolution to Cheshire and Warrington is something I had been working on for a long time before I was elected as a Member of Parliament. It is a journey that started when I was the leader of Cheshire West and Chester Council, and one that I am determined to continue now as Chester’s representative in Parliament.
Cheshire and Warrington has so much potential and so much to offer, and a devolution deal would give our region even more opportunity to fulfil that. Cheshire and Warrington has an important role to play in partnership with mayoral combined authorities in Greater Manchester and the Liverpool city region, and as a gateway to north Wales and the north-west of England. We have built a successful, inclusive economy, embarked on a net zero agenda and developed public service transformation projects. The three local authorities—Cheshire West and Chester Council, Cheshire East Council and Warrington Borough Council—have worked closely as a sub-region over many years, alongside partners in policing, fire, health and the local enterprise partnership.
Compared with the complex governance outlined by the hon. Member for Hitchin and Harpenden, the current system of collaboration between the three leaders of our three councils provides a strong, simple model that reflects our geography, our history and the identity of our different places. There is no need for local government reorganisation—we did that 15 years ago, and my hon. Friend the Member for Ellesmere Port and Neston (Justin Madders) has the scars to show for it. With so much local talent and potential, it makes sense for powers to be devolved and decisions to be made closer to home by local people who understand what our region needs and what it can offer.
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I was recently in Germany. When I speak to German businesses and say, “How does it work with investment?”, whether into Germany or into the UK, they often say that, if they are investing in most countries in Europe, they will go to the local mayoralty, for cities, or to the region, but in England—I say that precisely—they often do not know where to go. For example, in my county, if someone were to invest in life sciences in Stevenage, which is a hugely growing area and doing very well, they might go to Stevenage Borough Council, but the council would say that they also need to speak to the county council about different things and North Herts Council about certain other things. That inhibits our economic growth, and that is just one example.
Regularising and standardising the relationships is important, but this is not just about that. Let us assume that we had managed to do that, and we had a more standardised local government structure, such that people started to understand who is responsible for what. It is important that local leaders—we often talk about the importance of local leaders—have a more direct relationship with Westminster as well. It should not just be that someone elects a Member of Parliament and, indeed, a Government in the general election, and they elect their local leader in a local election, yet the relationships between the local leader and the centre are not formalised. We should move to a system in which local leaders have, in a more standardised fashion, formal mechanisms to engage with central Government and Parliament. We could use the House of Lords, perhaps with positions in an ex officio capacity, though that may not be necessary. However, the broader principle is to have a more formalised way in which leaders from Cheshire, for example, have a relationship with Westminster and Whitehall that enables them to lobby and make their voices heard, and enables MPs to feed into that process effectively, so that we get much better governance. I am talking not just about Cheshire, as such a system might benefit Hertfordshire, for example.
Regularising these things would not cost much money, if any at all. This is not about paying extra and it would not change a huge amount. However, it would make sure that the voices of local people and local leaders are heard here in Parliament.
The consequence of that high degree of regional inequality has been twofold. First, it has caused political problems. In certain parts of the country, people feel left behind and that, economically, they have not been given a fair shake. There are calls to reform the Green Book and the Treasury. There are all sorts of political shenanigans and things that Opposition Members will appreciate, as we do on this side of the House. Secondly, that regional inequality has contributed significantly to our national productivity problem, which is well documented. It is out of the scope of this debate to go into that in detail, but if there are big portions of the country performing economically poorly—even if London and the south-east are doing well—the country’s economy overall is not going to improve as much as it needs to.
How does effective devolution help the national productivity problem? Some people might argue that it is about tax, education or skills policy passed in Westminster. Effective devolution, standardised and regularised in the way that I am describing, will help. There are two broad reasons economists give for productivity and regional inequality. The first is poor transport infrastructure in huge swathes of our country. The second is poor policy on innovation clusters, particularly in areas of high skill and around universities. Compared with the UK, other countries are just doing better in those two areas, although the economic debate is broad. If we had more effective power for local leaders, more of a voice to spread good practice, a clearer understanding of who was responsible for what and when, and a more effective fiscal package for each of those local areas, I submit that we would perform better in both those areas.
It is impossible for any centre of government in Whitehall and Westminster to focus appropriately on every single need of every single part of the country, because we make broader national and international policy. We cannot deal effectively with everywhere; that is the role of local leaders. Helping them do that better, whether that means transport infrastructure, skills or innovation clusters around top universities and areas of learning, is what we need to do, and to do that effectively we need to talk about money. It is easy for me to talk about powers and how things should be better and more effective. We have to talk about not just the money available for local authorities and leaders to spend, but what they are accountable for raising. I will be candid with the House. One of the difficulties politically that I and many party colleagues have felt at times is that certain local leaders seek to blame Westminster for all that goes wrong, yet take the credit for everything that goes right. I know it will be a shock that any politician would think of doing something like that.
In this country, we are incredibly centralised fiscally. About 12% of taxes are spent and raised locally, the lowest proportion in the G7 by some stretch. The next is Italy at about 17%, then Germany at about 30%, Canada at about 50% and the United States at somewhere between 40% and 50%, depending on how it is calculated. We are an outlier. I do not want to stray beyond the subject of the debate into Treasury policy, as we have the Budget for that—I know the Minister will be itching to weigh in on the Treasury, and will hold himself back—but when we think about raising more revenue, we should do that as closely as possible to people in the places where that money is spent.
We should politically enable local areas to raise more money, because people would know what they were responsible for and how they were responsible for it in a more standardised way. By raising more money locally, they would be responsible and accountable for it, and there would be a higher degree of trust that the money would be spent well. If that money is not spent well, local people will vote for somebody else. That is how democracy works.
I finish by saying that yes, we need the powers to be regularised. Yes, local leaders across the whole United Kingdom need to be linked in much more closely with Westminster. I have not touched on the powers of the devolved Parliaments, because I am not convinced that a huge shift in power required at devolved level is necessary. When we think of England, we should ensure that what we do mirrors existing models. The hon. Member for Aberdeen North (Kirsty Blackman) described how local government in Scotland interacts with Holyrood. That is the sort of model we could bring in more broadly, on a UK-wide basis, but the money really matters.
Enabling local areas and local leaders to raise and spend more of their own money, whether through property taxes, local income tax or a reformed version of business rates, rather than always relying on Westminster to raise all the money and dole it out, would be an effective way to build our democratic Union, as well as helping our understanding of how we are governed and our economy.
In my part of the world, we look towards north Wales and Merseyside as much as we look across Cheshire. That is significant because although a case can be made for a single figurehead for a city or city region, it should be recognised that non-metropolitan areas have significantly different sets of circumstances. Be in no doubt, I warmly welcome the opportunities any devolution deal will bring to my area, but I am not convinced we need a Mayor to deliver that.
I genuinely hope there is a real opportunity to improve our area and that that is not lost because of Government intransigence over the governance arrangements. If it is the Government’s position that there has to be a Mayor, then the biggest opportunities for devolution are denied to us. I do not believe that we should forgive such a petulant and inflexible approach; I suspect the public we represent will not forgive such an approach either.
Genuine devolution is not about telling areas what governance they must have, creating extra layers of bureaucracy or dictation from the centre. As we know, in this country power and wealth flow towards London and the south-east, then upwards into Westminster. Any power and resources that are given away usually go on Westminster’s terms, with Westminster’s priorities at the forefront. I believe that is the wrong approach. For too long people have felt left behind and held back by a system that does not work for them.
People already feel they do not have the power to take important decisions about the things in their lives that are most important to them, whether it is a local hospital that should stay open, where a new school might go or even how often the buses run. To empower local areas, we need a different, long-term approach that actually attempts to tackle the underlying issues and to really empower local communities by giving them the responsibility, power and resources to shape their own futures by—dare I say it—allowing them to take back control.
My plea to the Minister is to meet us and give us the keys to unlock the potential for our area. I have been in this place for nearly eight years, and throughout that time we have heard many times how the Government are prepared to allow greater devolution in Cheshire, but we always get left behind. We are seeking devolved powers, particularly in transport—on buses, for example. As we know, we are currently at the mercy of bus companies pulling out services at a moment’s notice. We also want to improve economic regeneration and get more housing in the right areas to meet the local housing need.
There is a well-developed plan, which has been on the shelf for many years now, and we just want the opportunity to deliver it. Leave preconditions about mayors who do not have local support at the door and, instead, talk to us about what more we can do to improve the lives of the people we represent. Do not dictate to us; liberate us. That is what genuine devolution is all about.
When Bill Gates came here a couple of years ago, I had the opportunity to ask him why he came to the UK Government. He said, very simply, “Because of your network of relationships around the globe.” He recognised that history and the depth of contact and relationships we have across the globe and the influence that came with them. From that, then, comes the economy. We are the fifth or perhaps the sixth-largest economy in the world, and part of that is because of that network of relationships. Part of that, too, is driven by the internal relationships we have forged and the transport links, which have already been mentioned, across all parts of our United Kingdom.
We then need to think about the future. In understanding ourselves as a Union, what are we moving towards? That is an absolutely salient and current question. I again commend my hon. Friend for bringing forward exactly the question that we face now: what are we, now we are post-Brexit Britain? If we are no longer on a trajectory into a federalist, liberal, social democracy within the EU, where are we heading? Some would say we are going back to the days of empire and colonial oppression —that kind of thing. I do not think it is, but what are we heading to? That is the Union I think of, and it is absolutely correct to think about what the future holds.
Time does not allow me to develop my points in the way I would wish, but I want to make a couple of key points. I contrast the covenant that holds us together with the contract that is presented in the form of devolution. The covenants that hold us together are those relationships built on shared dreams, shared ventures, shared losses and shared institutions that we have built on the values we hold together. All those things speak to me of covenants, and a vested interest in what every other part of the Union is thinking, feeling, experiencing and hoping.
I contrast that with what we did by devolution. Let me be clear that I fully support the democratic establishment of devolved Assemblies and Parliaments across the UK—there is no disagreement from me on what has been established democratically. The biggest damage that has been done to our Union was not in the creation of those institutions, but in convincing us that the relationship is now not covenantal but contractual—that it is a transactional relationship that says, “You now do these bits. You now make the decisions on these policy areas, and we will give you some money for it.”
Trying to turn that covenant into a contract and a series of transactions does not work, just as it would not for my own marriage: “Right, Robin, on a Monday, you do the bins, and on a Wednesday, I will wash the dishes.” It is the same for our Union. Phrases like “regularising” and the focus on a technocratic design chill me a bit, because they do not capture the essence of who I think we are.
When we start to look at how the contract operates on points such as accountability, we start to find flaws. I support subsidiarity—decisions should be made as close to the local point of impact as possible—but we must not imagine that what we have done is perfect or should be replicable. There are deep problems, which I do not have time to develop today.
Let me finish with one analogy. We are all familiar with new housing estates. Very often, there is a green space in the middle of them. When the houses go up, and the green space is marked out, brown lines cutting across that green space, faint at first, start to appear very quickly. There is actually a phrase for them—they are called desire lines. Those desire lines do not reflect the footpaths that are in place.
I am sure hon. Members know what I am talking about. Residents have decided that the shortest way from A to B is to walk across the green. That is absolutely a metaphor for what we need to learn and how we need to think about the mistakes we have made and the lessons we need to learn about our institutions and how we think about our Union. There is a temptation to say, “We can create a beautiful place. We can put down straight lines, and maybe even curved lines, that reflect what people want,” but we would soon find that people’s actual desires —their organic response to their environment; the thrust of where their ambitions, hopes, dreams, relationships and ties take them—cuts across that place, and creates desire lines, not always where we designed for them.
I urge caution in imagining that technocratic cleverness could take us to a better Union. I urge the proper consideration of the organic model we have, which has grown the covenant that holds us together, and of the bright future ahead.
A devolved Cheshire and Warrington could further progress its work on transforming our transport networks, backing our towns and rural communities, creating green jobs and achieving net zero—the list goes on, and the potential is endless. Locally, there is a real drive to see Cheshire and Warrington as one place with one voice. That is based on the county’s shared culture and history, but it also respects distinct local identities. Too often, it feels like Cheshire is left behind; too often, my constituents express concerns that Cheshire and Warrington risks missing out on the funding and freedoms enjoyed by our neighbours in the cities.
I point out to the Minister not only that a devolution deal for Cheshire and Warrington is beneficial for our region, but that the region’s strong economic base—in particular the Cheshire science corridor and net zero ambition—can help to meet the Government’s levelling-up goals. There is no point in pitting region against region for funding. The only true way to resolve this issue is through devolution. I have one simple question for the Minister: what plans does his Department have to consider a devolution deal for Cheshire and Warrington, and will the Department meet representatives from across the area to discuss that further?