Covid-19: Local Government Finance

Baroness Pinnock Excerpts
Monday 29th June 2020

(3 years, 10 months ago)

Lords Chamber
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Asked by
Baroness Pinnock Portrait Baroness Pinnock
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To ask Her Majesty’s Government what is their response to reports that five of the largest councils in the United Kingdom may have to issue a notice under section 114 of the Local Government Finance Act 1988, as a result of a loss of income due to the COVID-19 pandemic.

Lord Greenhalgh Portrait The Minister of State, Home Office and Ministry of Housing, Communities and Local Government (Lord Greenhalgh) (Con)
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The Government have made £3.2 billion available to local authorities through an unring-fenced grant so that they can address the pressures they are facing in response to the Covid-19 pandemic. We are working on a comprehensive plan to ensure councils’ financial sustainability for the year ahead, and we will continue to work closely with them to understand the costs that they are facing.

Baroness Pinnock Portrait Baroness Pinnock (LD) [V]
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Despite what the Minister has said, Hansard of 28 April records the firm commitment of the Government to

“back councils with the financial resources they need”,—[Official Report, Commons, 28/4/20; col. 203]

including support for the loss of income as a result of Covid. Can the Minister please provide a firm assurance that the financial resources will be made available in any such comprehensive plan?

Lord Greenhalgh Portrait Lord Greenhalgh
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My Lords, I can give an assurance that a comprehensive plan will be announced shortly. It is a little unfortunate that the timing of this Question is before that announcement. Of course, these general measures will support the vast majority of councils through the difficult process ahead; any individual councils that have problems should contact the department, or myself or other Ministers responsible.

Planning Process: Probity

Baroness Pinnock Excerpts
Tuesday 16th June 2020

(3 years, 11 months ago)

Lords Chamber
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Lord Greenhalgh Portrait The Minister of State, Home Office and Ministry of Housing, Communities and Local Government (Lord Greenhalgh) (Con)
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My Lords, my right honourable friend the Secretary of State followed entirely the planning guidelines that were set out by the MHCLG. I do not accept the way that this has been put to me —that he in any way broke the law. He sought to ensure that there was no inference of bias and that the planning decision would be redetermined. That was agreed with the local planning authority in Tower Hamlets and the Mayor of London.

Baroness Pinnock Portrait Baroness Pinnock (LD) [V]
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My Lords, I declare my relevant interests as a councillor and vice-president of the Local Government Association.

Failure to declare lobbying, failure to provide reasons for planning decisions and failure to make such decisions in a public session by local planning committees could result in allegations of maladministration. Does the Minister agree that those requirements should also apply to the Secretary of State—and, if so, will the Government disclose all such documents in the Westferry decision process?

Lord Greenhalgh Portrait Lord Greenhalgh
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Of course these requirements apply to the Secretary of State, but it is absolutely clear that at every step of the way, he disclosed all that he needed to disclose to the department, and that he followed the rules set out in the MHCLG’s propriety planning ethics.

Northamptonshire (Structural Changes) Order 2019

Baroness Pinnock Excerpts
Tuesday 11th February 2020

(4 years, 3 months ago)

Grand Committee
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Finally, I would just like to mention my personal experience. My own council will soon be the new unitary Buckinghamshire Council. I am looking forward to exercising my democratic rights on 7 May in electing councillors to that new authority. I am also most encouraged by the recent local government reorganisation in Dorset. While it is the first time that I have taken one of these debates in my newish role within the department, for my officials this is of course business as usual. I am pleased to report that the implementation phase for this reorganisation is well under way. I have full confidence in the local area implementing the unitarisation by April 2021. I therefore commend this order to the Committee and I beg to move.
Baroness Pinnock Portrait Baroness Pinnock (LD)
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I remind everybody of my entry in the register of interests, as a councillor in Kirklees in West Yorkshire—a unitary council—and as a vice-president of the Local Government Association. The order enacts decisions made in response to the financial calamity that befell local government in Northamptonshire through its county council. It was clearly imperative that action was taken; it is my understanding that change had to be made. However, I would like to comment on and perhaps challenge some of the decisions that have resulted from the decision to reorganise local government in Northamptonshire.

First, it seems that we as a country are in danger of taking the “local” out of local government. I say that as somebody who serves a very large ward—not the largest in the country, but one of the largest—at a unitary level and understands the demands on the three councillors who serve a population of 16,000. From my experience, it means that some of the very local issues become less important to councillors, who have to deal with high-level strategic decisions, but remain very important to local people. When you have a big ward, there is a tension between the strategic and the local. If we are not careful, local people often miss out. That is more so with large wards serving rural communities.

I do not know the county of Northants very well, but I guess that some of its wards will be significantly rural in nature. In my experience, this creates a potential disconnect between decision-makers and the people they serve. There is potential for the Government to give additional powers to parish and town councils, so that they can take up some of the very local responsibilities that would previously have been the remit of district councillors. That would enable a local element to be retained in local governance. I will leave it there and hope that the Minister will have some sort of response to it.

The second element is the size of the two unitary councils and the number of councillors they have. One has got 93 and the other has 78. In my experience, that is quite a large number. The Explanatory Memorandum states that there will be a boundary review for those wards before the next local elections in 2025. Are the Government thinking about reducing the number of councillors, because that is what a boundary review could achieve? On balance, having fewer councillors might improve governance but, on the other hand, it increases the size of wards and makes it more difficult for ward councillors to undertake their local responsibilities. Is that in view?

My next point is a general one about when there are 93 councillors—even 78—and only 10 of them are actual decision-makers. They are in the cabinet; they make the decisions for the council. That leaves another 83; they can do scrutiny, but they are not taking decisions, which is what local people expect them to be doing. Apart from the annual budget, the local plan and, perhaps, an annual children’s plan, there is not much that every councillor has to take decisions on. There has to be a rethink of the roles and responsibilities of councillors who are not in a cabinet. It can make councillors feel remote from decision-making. As ward size makes people feel remote, councillors feel remote if they are not in the cabinet. In my experience, remote decision-making fuels discontent and we should take note of that.

Paragraph 7.6 of the Explanatory Memorandum, which the Minister referred to, outlines the benefits of the new structure:

“aligning infrastructure; housing and environment services to help deliver growth; advantages in … health and wellbeing; improved education and skills provision”,

though I have to say that the responsibilities of local councils regarding education are very limited these days. The levers that they have to change anything are minimal, so I would not have referred to education in that way. Does the Minister agree that there could be an alternative to achieving that aim, which I think will come up in the next few months in a number of ways? A constructive collaboration, formalised between districts and the county, could achieve the same aims without the upheaval of a structural reorganisation. This would be an upheaval, and it takes a long time—several years—for councils to get on their feet and begin delivering strategically, not operationally, the services that they should.