Contribution
My Lords, let me make it clear from the outset that, with Amendment 93, we are not asking for a new bureaucratic hurdle in yet another review, but a few additional report considerations. Amendment 93 in my name would expand the reporting requirements placed on the Secretary of State. It seeks to understand how the Government intend to assess the wider consequences of devolution, including: its impact on housebuilding and the delivery of housing targets; its effect on economic growth; the fiscal implications of tax changes introduced by devolved authorities; and the consequences for the organisation, funding and outcomes of social care services.
I will take each proposed new paragraph of this amendment in turn, beginning with paragraph (f). This asks the Secretary of State to consider the progress of housebuilding as a consequence of devolution, including whether housing targets are being met and whether the right types of housing are being delivered to meet local needs. We have consistently made it clear that we support new homes. The Conservative Party is pro development. However, we are equally clear that local voices must be taken along this journey and that local consent must remain front and centre. Only then can we ensure that the right homes are built in the right places, meeting the genuine needs of local communities. Devolution, if done well, has the potential to unlock more housing delivery. This amendment simply asks how we will measure progress against that ambition.
Proposed new paragraph (g) concerns the rate and distribution of economic growth in devolved areas, with particular reference to the impact of newly devolved powers. Devolution has long been argued as a means of restoring local growth. George Osborne, as Chancellor of the Exchequer between 2010 and 2016, was the principal architect of the metro mayor model, advancing it as the cornerstone of the northern powerhouse agenda. The argument was clear that empowering city regions with elected local leadership could help rebalance an economy overly concentrated in London, drawing on the well-established economic case for productivity growth in cities. This amendment simply asks how the Government intend to judge whether these devolved powers are, in practice, delivering that promise and whether growth is being spread more evenly across regions. I hope the Minister will agree that this is a sensible extension to the Minister’s report requirements.
Proposed new paragraph (h) relates to
“tax changes made within devolved areas under the powers conferred by this Act, including analysis of their fiscal impact and effect on local services”.
Tax policy shapes behaviour, incentives and market signals. Changes to local taxation will inevitably affect residents, businesses and the funding of public services. Local people have a right to understand how such decisions affect them and how the revenues raised are being translated into outcomes. How do the Government propose to analyse the behavioural and fiscal consequences of devolved tax decisions? What mechanisms will ensure transparency and accountability to Parliament, but mainly to local residents, for the impact of those choices on services?
Finally, proposed new paragraph (i) concerns changes to the organisation, delivery and funding of social care in devolved areas, including assessment of outcomes for service users. Social care is among the most vital and sensitive of the public services we provide. It also represents a substantial and growing call on public finances. Devolution may bring opportunities for innovation and better integration with local health services. However, it also carries the risk of variation in provision and outcomes. With this in mind, how will the Government ensure that devolved arrangements protect service users and maintain consistent standards of care? What measures will be used to assess whether outcomes are improving for those who rely on social care, rather than simply shifting responsibilities between tiers of government? This amendment reflects a desire to ensure that devolution works as intended, delivering growth, homes and better services while remaining transparent, accountable and focused on outcomes. I hope the Minister can provide reassurance on how the Government intend to monitor and report these important issues.
An extension of the reporting requirements in Clause 19 seems a sensible and proportionate addition. It does not seek to constrain Ministers or to prescribe outcomes, but rather to ensure that Parliament and the public can properly understand how these significant powers are being used in practice.
I anticipate that the Minister may say that such a requirement is unnecessary and that existing reporting mechanisms are sufficient. However, devolution should ultimately be judged against its ambitions. If we are serious about empowering local areas to deliver more homes, stronger growth and better public services, it follows that we must also be serious about measuring whether those ambitions are being met. Local people must be able to see the effects of devolution in their communities and Parliament must be able to hold both central and local government to account for the outcomes it produces. For those reasons, I hope the Government will reflect carefully on whether modest additional reporting could strengthen rather than hinder the success of this agenda. I beg to move.