The hon. Gentleman is absolutely right. Indeed, the Committee visited Manchester as part of the inquiry, and it found exactly the arrangements that he has described.
We also went to look at the arrangements in Lyon in France. Interestingly, it has attempted, with the development of the grande métropole, to pull authorities together into almost a combined authority arrangement. It currently has an indirectly elected mayor and it will eventually move to a directly elected mayor, so it will have two different governance arrangements in the same area within a short period. There are therefore clearly alternatives.
The report was agreed unanimously—it is a cross-party report—and it was very much written with the next Parliament in mind. The Government made a response, as they should to a Select Committee report. I would say to the Minister that responses are supposed to be made within eight weeks, not eight months. The response was rather a long time in coming, as though the Government could not quite get their collective view together about what should be done.
It was very good to hear the comment that the
“Government welcomes this report’s contribution to the ongoing public debate on the scope for devolution and decentralisation within England.”
That is welcome, at least as a contribution to the debate, but there were not many welcomes in the Government response to the Select Committee’s specific recommendations. I have obviously also read the briefing from those on the Opposition Front Bench. I would say to both Government and Opposition Front Benchers that they do not seem fully to have bought in to the level of change that the Select Committee has recommended and which I think we need. I am sure we will have an ongoing debate with them both over a period of time.
The report was written before the Scottish referendum, but it anticipated that more taxation and spending powers would be given to Scotland and Wales. Very simply, I think that what is right for Scotland and Wales is right for England, and we followed that very simple rule. The report was also written after the London Finance Commission report, which was supported by the Mayor and the London boroughs, as well as the eight Core Cities. All those bodies and the Local Government Association have welcomed our report. Indeed, the Mayor said that Ministers “could not ignore” the “excellent” findings, as it would
“provide England’s cities with the means, incentives and crucially the stability of funding to deliver much needed jobs, growth and infrastructure”.
The Mayor of London is clearly with us, and he is pushing Ministers a little bit further than they are currently inclined to go.
We have had subsequent reports from the Institute for Public Policy Research, ResPublica, the City Growth Commission, and we now have the Independent Commission on Local Government Finance from the
Local Government Association and the Chartered Institute of Public Finance and Accountancy. All have come to a similar direction of travel on devolution, perhaps with slight differences concerning how it should be done. We came to the conclusion that in England we should not be creating new bodies or regions, for example, and that we should base devolution on local authorities and combinations of local authorities—the Government have at least welcomed that fundamental recommendation.
Why not local authorities? Greater Manchester has a larger gross value added than Wales, and London has a larger GVA than Scotland, Wales and Northern Ireland put together. Those are large economic entities, and there is no problem about devolving powers to them. We came to the conclusion that devolution was beneficial for growth, a way of delivering better public services that are better related to local need, and a possible way of re-energising the democratic process. People feel that we in Westminster are somewhat out of touch with what happens in their daily lives, and there is more chance of reconnecting politicians and the democratic process with people if decisions are taken at a more local level.