It is a great pleasure to introduce this debate on the report of the Communities and Local Government Committee entitled “Devolution in England: the case for local government”—which rather gives away the Committee’s findings and recommendations. I thank Professor Alan Harding from Liverpool university and Sean Nolan, an ex-local authority treasurer, who, as our specialist advisers, helped us through a great deal of technicality in trying to come to terms with the recommendations we made. I also thank Steve Habberley, our Committee specialist, whose hard work and diligence helped us through a very challenging report on which to reach conclusions.
The Committee decided on its inquiry not because of any specific Government legislation, but because of the widespread and welcome interest across all parties in localism, decentralisation and devolution. Despite recent reforms, the reality is that the United Kingdom, particularly England, remains one of the most centralised western democracies in terms of its arrangements both for expenditure and for tax raising, and that is still a matter of concern. Indeed, figures produced by the Mayor of London show that local authorities in London have to get 75% of their funding from central Government. In Tokyo the figure is only 7%, and in Madrid, New York and Berlin it ranges from 25% to 40%. In other words, all those capital cities get more than half their money from locally raised taxes, while in London only a quarter of it comes from such taxes.