Contribution
My Lords, Amendment 140 would strengthen the link between economic growth and health improvement, complementing the Government’s intention for devolution to support inclusive growth in stronger communities while maintaining local flexibility.
Devolution should give local leaders the tools to make a tangible difference to the lives of their citizens. However, if poor health and widening health inequalities continue to constrain economic participation and the effectiveness of public services, and if local growth plans are not used to drive better health, devolved leaders will fail to deliver real change to their communities. I believe that this Bill is a hugely significant moment for regional governance, with its explicit expectation that devolution should support improved outcomes, including health outcomes, for communities.
In many UK regions, long-term illness is now the single largest driver of economic inactivity. This can be seen most clearly in areas of historically high deprivation. The economic impact of poor health is stark. The Health Foundation’s independent Commission for Healthier Working Lives found that
“8.2 million working-age people report a long-term health condition that limits their ability to work … Poor workforce health is estimated to cost UK employers up to £150bn a year through lost productivity, sickness absence and recruitment costs”.
I warmly welcome the Government’s ambition to address regional economic inequality. Improving health and reducing inequalities are prerequisites for economic success. However, health currently remains largely absent from most local growth strategies, although not all. In the Oxfordshire strategic plan—the plan that I know best—health inequalities are a primary focus. The plan explicitly integrates social well-being with economic growth to address the county’s stark internal disparities. It pays specific attention to the foundational economy, which is to say the sectors providing basic goods and services, such as health and education, and identifies these as providential elements on which well-being depends.
Without considering health as a core objective and precondition for growth, local growth plans are less likely to be effective in delivering long-term sustainable growth. Some places in the UK are pioneering new approaches, including the West Midlands, which has implemented the inclusive growth framework. This aims to ensure that everyone benefits from growth by focusing on all types of investment, such as public, private, capital, revenue and time, which are all given attention. However, practice is uneven and lacks a consistent understanding of impact. This amendment aims to recognise the relationship between health and local growth so that further devolution reduces rather than widens inequalities.
I recognise that the number of co-operatives and mutuals is expanding and that the Government are calling for new growth plans across the mutual sector. That is very welcome—I am a Co-operative Member of the House of Lords. My amendment therefore dovetails with the current policy. It is right that local growth plans should promote co-operatives, mutuals and community wealth building—the practice of creating an inclusive and democratically owned economy. This puts people before private equity profits and champions the kind of economic development activity that gets overlooked by industrial strategies. Instead, it focuses on the everyday economy where most people work.
In Preston, for example, community wealth building is changing lives and has been linked to an incredible 9% increase in life satisfaction and an 11% rise in median wages. This has led to a reduction in daily antidepressant prescriptions of 1.3 units per person and a drop in depression prevalence compared to similar areas of 2.4 per thousand. I am sure that the Government would agree that these results should be replicated across the whole country.
I suggest that community wealth building is the missing piece of the puzzle to unlock growth for the benefit of all citizens, everywhere. Scotland already has a community wealth building Bill passing through its Parliament and I hope that this amendment ensures that England does not fall behind. I very much hope that my noble friend the Minister will take these things into account. Economic growth will be the lifeblood of mayoral combined authorities, but their ability to achieve that growth will be diminished if health and health inequalities are not an integral part of their plans. I beg to move.