My Lords, I have listened to the noble Lord, Lord Heseltine. Like the noble Baroness, Lady Warsi, I cannot recall the 1960s; I was born in that decade, so my period is rather similar.
The noble Lord has always been a big figure in local government during the entire time that I have risen up and been involved in it, but I have to say that I think his analysis on this is wrong. I say that because my starting point is that, although some people might say that this is just semantics, the Bill is not really about
devolution but about decentralisation. It is fundamentally a decentralisation of responsibilities from certain bodies to a combined authority or a mayor. The noble Lord talked about international comparisons, whether it be the Länder in Germany or the cities in the US, or elsewhere, where they have not just a nameplate saying “mayor” but real fiscal powers. When I was leader of Sheffield City Council it would have made no difference whatever whether my nameplate said “leader” or “mayor”; I would have been pulling levers with nothing attached because all the fiscal powers were in Whitehall. That is the important point that is missed by the Bill.
While I agree that it is a step in the right direction, we should not kid ourselves that under the present fiscal arrangements a mayor will be the silver bullet that will give local areas the autonomy and power to be authors of their own destiny in the way that some are suggesting in this debate; something more fundamental is required. Having said that, if we are going to go ahead within the boundaries of the Bill as it stands, then nothing in the amendment of my noble friend Lord Shipley would stop a mayor or powers being created if that was what the local area, along with the Secretary of State, so wished. As the noble Lord said, all that the amendment says is that the Secretary of State “may” refuse an arrangement that has been proposed if it,
“does not provide sufficient democratic accountability”.
What is wrong with strong democratic accountability? We have it here in this Parliament, and I would expect it in local government. All that the amendment says is that not only would strong economic powers be taken into consideration but there would be strong democratic oversight of the powers invested in, possibly, one person. That is reasonable.
In the amendment, the second reason why the Secretary of State might refuse a proposal would be that it,
“does not have the support of local authority electors”.
To go ahead without the support of the electors would be rather strange in my part of the world, where only a few years ago the electors rejected a mayor but now it would be imposed upon them if they wished to have these powers. I hear the Minister when she says that a mayor would not be imposed, but I ask her about the report in the Birmingham Mail on 1 June about the Chancellor saying to the leaders of the West Midlands that,
“only elected mayor will guarantee full funding and powers for West Midlands”.
If that is not a prescriptive approach, what is? So there is prescription within this if you are going to get full funding powers. How would the people of South Yorkshire and Sheffield feel, having said that they, including businesses, did not want a mayor, only to have one imposed in order for limited powers to be decentralised from Whitehall to the area?
There is a third reason in the amendment why the Secretary of State may refuse a proposal. Wherever powers are devolved or moved within the existing structures, whether from national or local government, that should not destabilise local government. There is nothing wrong with that. There are still functions that councils will have when there has been the shifting of
the existing chairs on the deck, which is all that the Bill actually does. If there were some fiscal powers, then it would be a devolution Bill. However, if those chairs are going to be moved, it is really important that some of the functions are kept with each individual council. It does not mean that financially they cannot continue to carry out what will be significant statutory functions.
The final subsection proposed in the amendment is about the mayor. I have already spoken about this: a nameplate is not going to change how a place is governed. If it was so significant, why have some councils that had already moved to a directly elected mayor moved back? It has not been the panacea that some would suggest. I advise the Minister to think very carefully about a Bill that puts so much reliance on a name without thinking about significant fiscal powers being moved downwards—which, after all, is what makes a difference.
I end by saying that I think the noble Lord, Lord Heseltine, argues my case for me. He talks about the powers of local government in the past, the engines of economic growth and social change. However, they did not have mayors or a single democratically elected person; they had the powers that central government has taken over. I accept that some of those responsibilities and powers will go, but without looking at the fiscal powers that make the difference we will be back here in five or 10 years’ time having the same discussion, because that is the key that will make the change, not the name on a nameplate.