My Lords, I thank all noble Lords who have made points on these amendments. I think that we are seeking the same ends but perhaps by a slightly different approach, as I will outline.
Amendment 1 would insert a new clause which places a statutory duty on the Secretary of State to provide annual reports to Parliament setting out information about devolution deals which have been agreed and those in discussion. Amendment 2 would add a new requirement that all Bills are to be accompanied by a “devolution statement”. Noble Lords have heard me say a number of times that the Government are open to discussing devolution proposals with all places. We have been clear that our approach is for areas to have conversations with us about the powers and budgets they want to be devolved to them so that they can grow their local economies and improve the competitiveness and productivity of the area. The importance of this cannot be overstated. As the Chancellor said in the Budget, the great economic challenge we face is on productivity. It is by addressing that challenge that we will ensure that Britain is what we want it to be—the most prosperous major economy in the world by the 2030s. Devolution deals are one of the most important levers for generating growth and delivering this aim.
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However, notwithstanding the importance of devolution deals, a new statutory requirement of an annual report on devolution statements is not the right way forward. The focus should not be on the process but on the substance of implementing the devolution deals in our major cities, our counties and across the country. The Bill enables the implementation of such bespoke devolution deals and the nature of these deals will be set out individually in orders to implement changes in respect of each proposal approved and brought forward by the Secretary of State. Therefore they will be available for both Houses of Parliament to see and consider under the affirmative procedure.
In Committee, noble Lords expressed concern that Parliament should be fully informed on the nature of the proposals. We have considered carefully those points and agree that we could strengthen and extend the information available to Parliament. Government Amendments 33 and 70, which I will move later in the proceedings, seek to do this. They provide that when the Secretary of State lays a draft order in Parliament, in addition to the order’s Explanatory Memorandum he will also lay a report explaining what the order does and why he proposes to make it. These reports, together with the Explanatory Memorandums, will ensure that Parliament will have before it all that it needs to consider the orders implementing devolution deals and governance changes. The bespoke approach in my amendments is preferable to the approach in Amendment 1 in terms of increasing genuine transparency around the devolution deals while enabling also the bespoke
deals to be agreed with different places, rather than a template or a selection from a list of functions.
Amendment 2 would require a statement to be made for each and every Bill laid before Parliament as to its compatibility with the principle that powers should be devolved to local areas unless they could be more effectively exercised by central government. Whatever the superficial attractions of such an approach, in practice it would descend into another tick-box process. It risks being a distraction from delivering the substance of real bespoke deals in places. Accordingly, such a requirement is unnecessary. If Members of either House feel that the Government are being inconsistent in their approach, they will have the opportunity to raise the issue with them.
None of this is to deny the importance of devolution and what it means for this country. I hope we can all agree on that. I hope that we can all agree that the devolution of powers and budgets to areas across the country should reflect what the areas themselves want. This would be a major reversal of the decades of centralisation—indeed, a century and a half—which we all realise has not served us particularly well as a country.
Turning to specific points, the noble Lord, Lord McKenzie, questioned whether Greater Manchester is using Clause 6 and whether in its deal it will draw on its powers. The clause enables powers to be given to a combined authority which are exercised by a public authority in a different area. Hence the clause could give Greater Manchester the powers on strategic planning which the GLA currently has. Giving Greater Manchester such powers is part of the deal.
The noble Baroness, Lady Hollis, talked about the importance of annual statements so that we can learn from best practice, how deals have worked, and what principles were needed to back them up. Obviously, Manchester is well on the way, but as the Chancellor announced last week, Sheffield, Leeds and Liverpool are in talks with the Secretary of State. I also understand that as of last week Norwich is now in talks, which is very good news indeed. It will enable Members of both Houses as well as the councils at large to see what has been agreed and on what basis, and to learn as they go along. Indeed, I hope that Cornwall will come up with some exciting proposals soon.
The noble Baroness also talked about not setting principles on devolution because it is a waste of time. We do not intend to waste anyone’s time—