I welcome the Bill, which takes much needed and well overdue steps to move power closer to the people it affects. The UK is undoubtedly one of the most centralised developed democracies in the world, and evidence shows that that is holding it back. As Sharon White, second permanent secretary at Her Majesty’s Treasury, recently said:
“There’s pretty good cross-country data that shows that decentralisation tends on average to be more closely associated with both stronger growth and better public services”.
The Bill aims to give the people of England and Wales more accountability, increased growth, improved public services and a richer democracy. Its principles should be embraced by this House and by local authorities as a mechanism to set them free from the shackles of Whitehall and to allow them to grow, prosper and compete.
The welcome announcement by the Chancellor of the Exchequer at the Conservative party conference that councils should keep business rates in return for the abolition of the block grant only serves to hasten the importance of enacting legislation to devolve power. That measure will be a key factor in ensuring success.
The hon. Member for North Durham (Mr Jones) has mentioned his reservations. In Leicestershire, the combined block grant for county and district councils comes to £136 million per annum, whereas the business rates are currently £226 million per annum. The proposal is, therefore, a considerable win and will result in my county council becoming one of the better, rather than one of the lowest, funded councils in the country.