English Devolution and Community Empowerment Bill Debate
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Baroness Scott of Bybrook
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English Devolution and Community Empowerment Bill
Baroness Scott of Bybrook Excerpts(1 day, 9 hours ago)
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Member’s explanatory statement
This amendment would ensure functions can be removed as well as added to the GLA.
Baroness Scott of Bybrook (Con)
My Lords, this first group of amendments concerns the Greater London Authority and the London councils. We expressed concern regarding Clause 15 in Committee as we do not see why conferring more powers on the Mayor of London should be such a priority in a Bill supposedly concerned with devolution to the rest of England. Although we recognise that London’s governance is unique, we do not believe that this alone shields its governance arrangements from scrutiny.
Amendment 82 in the name of the noble Baroness, Lady Pidgeon, would expand the London Assembly’s existing powers to require the attendance not only of the mayor but of experts and professionals involved in the delivery or oversight of London’s services. It is clear that further democratic oversight of London’s services is needed, and not from the mayor alone.
Amendment 84, also in the name of the noble Baroness, would alter the voting requirement for the assembly to change the authority’s consolidated council tax requirement with a simple majority, rather than a two-thirds majority. The two-thirds majority requirement has proved to be a barrier to effective scrutiny, particularly over taxation. This is especially pertinent amid the rising cost of living for households in London and has our full support.
All these concerns and proposed changes can be deliberated further through Amendment 83, tabled by my noble friend Lady O’Neill of Bexley, to whom I am very grateful. This amendment would initiate a full review of London’s governance model within 12 months of the day on which this Act is passed, giving Parliament the opportunity to look at the GLA’s effectiveness, accountability and outcomes. This amendment also has our full support.
The amendments in my name seek to give the Government the flexibility to respond to such a review or to any changes Parliament decides on in the future. By amending Clause 15, our amendments would ensure that functions can be both removed and added to the GLA without requiring more and more primary legislation. I look forward to hearing noble Lords’ valuable contributions and I hope the Government will consider our constructive proposals to allow the Government flexibility in the future.
Baroness Pidgeon (LD)
My Lords, I thank the Minister for meeting me so that I could explain more about my amendment, in particular the need for the wider power of summons for the London Assembly. Amendment 82 is about the need for a greater power of summons. The London Assembly has a limited power of summons over individuals and documents, but it can currently summons the Mayor of London only in very limited circumstances. The assembly is also prevented from summonsing those delivering services in London. At times, organisations refuse to attend hearings, including London councils. That cannot be right. Organisations that are delivering services to Londoners and spending huge amounts of money should be required to attend and answer questions.
When I met the Minister, it was suggested that the assembly should simply ask the mayor to secure guests who were reluctant to attend. That would be rather like the Lords asking the Prime Minister to help with our work—completely inappropriate. This power would strengthen the London Assembly and the scrutiny of services to Londoners. I therefore hope that Members across the House will support this simple amendment, which has always received cross-party support at the London Assembly. Given that there has been a shift between Committee and Report and a clear understanding of a need to increase scrutiny and transparency of mayors across the country, this amendment would help address that issue.
Amendment 84 would remove the requirement for a two-thirds majority to amend the mayor’s budget at its final stage. This is an anomaly; it does not exist in other parts of local government. This simple amendment would remove it and make it the same as for other levels of government. I am pleased to have received support from the noble Baroness, Lady O’Neill of Bexley. This is about basic democracy and powers for a scrutiny body. It would mean that any mayor would have to work cross-party to secure his or her budget. Again, I hope all Members will support this.
I turn to the other amendments in this group. Our Benches do not support Amendments 81, 154 and 156, which go against the devolution agenda by suggesting that powers can just be taken back by the Government from the GLA. Why would you single out London for this? Surely we should be looking at devolving far more services and powers to local and regional government, rather than just trying to recentralise.
Amendment 83, which we will hear about shortly, calls for a review of the London model. I believe that work may already be under way looking at London. I hope the Minister can update us on that but I am sure that this probably should not be in the Bill.
The Government’s Amendment 243, which allows for grants to be paid to joint committees of London councils, rather than the current messy situation where one borough has to take the lead, is a tidying-up exercise and we support it. I look forward to hearing a positive response to my amendments from the Minister in due course.
The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government (Baroness Taylor of Stevenage) (Lab)
My Lords, I thank the noble Baronesses, Lady Scott, Lady Pidgeon and Lady O’Neill, for their amendments on the functions and governance of the Greater London Authority and London boroughs.
I turn first to Amendments 81, 154 and 156. This Government are committed to delivering a permanent transfer of power from Whitehall to our regions. Strategic authorities, including the Greater London Authority, will not be able to deliver for their residents if they fear that a future Government will be able, on a whim, to easily remove functions that have been devolved. Parliament is, of course, sovereign. The Government will always be able to introduce primary legislation that changes which functions should sit with which level of authority. However, this Bill makes sure that the Government will have to make that argument through the various stages of a parliamentary Bill; it must not be easy to take devolved powers away from strategic authorities. That is why this Bill limits the ability of this Government and future Governments to remove functions from strategic authorities using secondary legislation so that they can be exercised again by central government. It would be wrong to single out the Greater London Authority and allow its functions, and only its functions, to be removed by secondary legislation.
On Amendment 82, I thank the noble Baroness, Lady Pidgeon, for meeting me to discuss this issue. Her insight into the governance of London was very valuable to me. First, I would note that the Mayor of London is already required to appear before the assembly 10 times a year for Mayor’s Question Time. This affords assembly members an opportunity to question the mayor on a regular basis. It is a tried and tested mechanism for questioning the mayor, and is backed up by a strong incentive for the mayor to attend, in that generally, if they fail to attend six consecutive meetings, they will be removed from office. This amendment would not remove the existing mayor’s Question Time mechanism; rather, it would represent an additional burden on the mayor of London potentially requiring them to appear before the assembly multiple times within a given month.
Secondly, this amendment would enable the assembly to summon witnesses who are not connected to the Greater London Authority or work on its behalf. In using a broad definition, it could allow the assembly to require attendance from virtually any entity linked to activity in, or related to, Greater London. The assembly’s power is backed up by powerful enforcement mechanisms. A person who fails to comply with the assembly’s request can be liable for a fine or even imprisonment for not more than three months. I am sure noble Lords can appreciate that the expansion of a power with such an enforcement mechanism needs to be considered very carefully. In London, the assembly has broadly either the same or similar powers to those being introduced for local scrutiny committees. As London’s devolution settlement continues to evolve, the Government will continue to work with relevant partners, including the noble Baroness.
I turn to Amendment 83, for which I am very grateful to the noble Baroness, Lady O’Neill. I recognise her very long and dedicated service to Bexley and to London. The Mayor of London is directly elected by the people of London every four years, alongside the London Assembly, which scrutinises the mayor’s work. This model is unique among strategic authorities, and it has successfully served the people of London for the last 25 years. The Government are regularly in contact with the GLA to understand how its governance, scrutiny, arrangements and partnership working arrangements are delivering for London and Londoners. As London’s devolution settlement evolves, we want to continue to see positive working between the GLA and its partners, including London borough councils, to deliver on shared priorities.
With this ongoing conversation already happening, it is not necessary to impose a formal review of London governance to be reported on at an arbitrary point. Indeed, it would be unusual to put such a requirement into primary legislation. The accountability arrangements for all mayoral strategic authorities, including the Greater London Authority, will also be strengthened by revised guidance, such as new iterations of the English Devolution Accountability Framework and scrutiny protocol.
I turn to Amendment 84 from the noble Baroness, Lady Pidgeon. Simple majority voting in London would make it harder for the mayor to exercise executive authority and deliver for Londoners in areas where other mayors are being empowered. As I have said, London’s devolution settlement has served Londoners well for 25 years, striking the balance between the executive authority of the mayor and the scrutiny of the assembly. Mayors in combined authorities and combined county authorities can have their budget amended only by a two-thirds majority, and there is no reason why London should be different.
Finally, my Amendment 243 would enable central government to pay grant funding directly to a London joint committee, such as that run by London Councils. This will address a long-standing anomaly in London’s governance. I am very grateful to the noble Lord, Lord Harris, among others, for bringing this issue to my attention, and I also thank him for his very long service to London government.
Where there are cross-borough initiatives which are outside the remit of the Greater London Authority, the committees established by London Councils are best placed to receive and direct related funding on behalf of boroughs. Among many other examples, this is evident in the Freedom Pass, which the London Councils transport and environment committee negotiates with Transport for London and pays for on behalf of boroughs. At the moment, when central government wishes to pay funding for initiatives co-ordinated by London Councils, it must use cumbersome workarounds, such as paying to a nominated lead borough or routing it through the GLA. This creates additional barriers in time and complexity to getting money where it needs to go. It also lacks transparency, making it hard for citizens to follow who is involved in the spending of their money.
This amendment is a simple yet significant change that will allow money to flow directly from central government to joint committees established by London Councils, speeding up and simplifying delivery for Londoners. It is important that any entity receiving public money has the appropriate governance and oversight in place. Therefore, this amendment enables payment to take place only once the Secretary of State has made regulations setting out eligibility requirements. Those regulations will be approved by resolution of this House and the other place.
I commend my own amendment to the House and ask the noble Baronesses, Lady Scott, Lady Pidgeon and Lady O’Neill, not to press their amendments.
Baroness Scott of Bybrook (Con)
Before the Minister sits down, could she clarify something? With the new mayors of strategic authorities, I understood that the committees voted using a simple majority. Are we now saying that it is a two-thirds majority, the same as for London, in the new mayoral authorities?
Baroness Taylor of Stevenage (Lab)
My advice, as I read out, is that it is a two-thirds majority.
Baroness Scott of Bybrook (Con)
I read the Bill yesterday and thought that it was a simple majority, but there we are.
I thank the noble Baroness, Lady Pidgeon, for making the clear and compelling case for the need for change to specific London governance arrangements. These amendments are ultimately intended to help improve services for Londoners and to strengthen democratic scrutiny of the mayor, whoever he or she might be, by elected members.
I thank my noble friend Lady O’Neill of Bexley for making the case for a full London governance review. I restate our support from these Benches for her amendments. We feel strongly that this is necessary in London, as is happening across the whole country. The Government may wish to contemplate further the possibility of that review, and therefore consider more seriously at the moment our proposed amendments to Clause 15, which would allow for the removal of functions from, as well as the conferral of functions to, the GLA.
If the London governance arrangements are so unique, as the Minister made plain in Committee, we believe Parliament ought to have further oversight and that democratic scrutiny should be strengthened in London. I hope that the Government will not dismiss these proposals but give them serious consideration. I beg leave to withdraw the amendment.
“(f) the rate and distribution of economic growth in devolved areas, with particular reference to the impact of newly devolved powers, and(g) results of any evaluation of the overall quality and value for money of local service delivery in those areas.”Member’s explanatory statement
This amendment expands the Secretary of State’s reporting duties to provide a five-yearly assessment of the effects of newly devolved powers on economic growth, local service delivery, and value for money for taxpayers.
Baroness Scott of Bybrook (Con)
My Lords, I will speak to the group of amendments beginning with Amendments 87 and 184 in my name and that of my noble friend Lord Jamieson. We have highlighted time and again that we have had no guarantee that the Government’s plans for local government will save money for the taxpayer, deliver economic growth or tangibly improve local services. Today’s announcements put that even more in doubt.
Therefore, our amendments, while they differ slightly, would enable the Secretary of State to review the impact in two ways. Amendment 87 would expand the Secretary of State’s reporting duties under existing Clause 19 to provide an assessment of the effects of newly devolved powers on the rate and distribution of economic growth in devolved areas, focusing particularly on the impact of newly devolved powers. The report must include the results of any evaluation that has been undertaken of the overall quality and value for money of local service delivery in those areas. Clause 19 already requires that this report be laid before each House of Parliament as soon as is practicable.
Our Amendment 184 would require the Secretary of State to report annually for the first five years after the passage of this Act, this time via a Statement, with copies laid before Parliament. The Statement must assess the performance of strategic authorities established under the Bill, rather than the effects of devolved powers generally, in relation to the quality of service delivery and to the extent to which their functions have been exercised efficiently and represent value for money. I hope that the Government will give these amendments serious consideration.
Amendment 318A from the right reverend Prelate the Bishop of London—of Manchester, I beg your pardon; that was a Freudian slip—would require the Government to report annually on the effectiveness of community empowerment measures under the Localism Act 2011. In particular, the report must assess effectiveness in relation to land access, green spaces, food production and local decision-making mechanisms. I look forward to hearing the Minister’s response to those asks. I beg to move.
Lord Wilson of Sedgefield (Lab)
My Lords, I thank the noble Baroness, Lady Scott, and the right reverend Prelate for their amendments.
As drafted, Amendment 87 would be much more burdensome for the Secretary of State and require yearly reporting via the annual report on English devolution, rather than every five years, as the noble Baroness intended. The annual report, introduced by the Cities and Local Government Devolution Act 2016, is designed to update Parliament on the progress that government is making in implementing devolution across England, rather than monitoring progress on individual policy areas. This amendment does not align with the focus of the annual report, but I reassure the noble Baroness that the Government are already committed to assessing the impact of devolution on local economic growth and public service delivery.
On the mayoral strategic authorities receiving an integrated funding settlement, we already have an integrated settlement outcomes framework in place. This is published on GOV.UK. The framework outlines a number of outcome indicators and outputs which the mayoral strategic authority will be assessed against to determine whether it is delivering effectively for its residents. For example, the Greater Manchester Combined Authority’s outcomes framework includes several outcome indicators relating to economic growth and public service delivery. This includes the number of supported businesses that have increased productivity, and measuring the success of support for residents with long-term health conditions, getting them back into employment. As more mayoral strategic authorities receive an integrated funding settlement, more mayors will be subjected to the integrated settlement outcomes framework.
At the local authority level, the Government recently published the local outcomes framework, which enables outcomes-based performance measured against key national priorities delivered at the local level. The outcomes that are measured include: economic prosperity and regeneration, adult social care, and child poverty.
The outcomes and metrics for each local authority area will be published on GOV.UK through a new digital tool. This will improve transparency and enable the public, local authorities, strategic authorities and central government to have a shared view of progress for all areas in England. The performance against the outcomes and metrics for each local area will also allow local authorities, strategic authorities and central government to work together to identify what needs to be done at a local level by different partners to tackle local challenges.
The noble Baroness also seeks in her amendment to ensure value for money for residents. The introduction of local scrutiny committees for mayoral strategic authorities will allow local areas to hold their mayors to account, including by undertaking value-for-money assessments. Although I welcome the spirit of this amendment, it would place undue burden on the Secretary of State, and we cannot support it.
On Amendment 184, the quality of service delivery by strategic authorities, the efficiency with which they deliver their functions, and the value for money they provide are matters of importance to Members on all sides of the House. As new powers and functions are devolved through the Bill it will be essential that scrutiny and accountability keep pace, ensuring that all strategic authorities are well run and operate effectively.
I have already touched on the role of local scrutiny committees and the integrated settlement outcomes framework. In addition, strategic authorities are expected to adhere to the process and principles set out in the English devolution accountability framework. This includes the scrutiny protocol, which encourages the engagement of residents through mayors’ question times and other equivalent opportunities for the public and journalists to put questions directly to elected mayors.
As part of our commitment to effective governance, we are also undertaking annual conversations with strategic authorities. These are regular engagements with strategic authorities, intended to foster an understanding of strategic authorities’ roles and challenges, sharing learning from across the sector to drive positive outcomes for residents. Strategic authorities are also subject to the best value duty, including inspections and, if necessary, the appointment of commissioners.
Where parliamentarians may have concerns about the performance of strategic authorities, it is entirely appropriate that they raise them with the Government through the usual means. I trust that your Lordships will see how strategic authorities will be subject to both non-statutory and statutory mechanisms to drive performance, efficiency and value for money.
I thank the right reverend Prelate for Amendment 318A. My noble friend will be more than happy to meet him and his colleagues to discuss these issues further. Through the Bill we are building on the foundations of the Localism Act 2011 with a more effective community right to buy and a new duty on local authorities to make arrangements for effective neighbourhood governance. We regularly engage with local government and the community sector to understand how existing powers are working on the ground. We know from this engagement that the current community right-to-bid provisions are not strong enough to enable communities to protect valued local assets for future use, which is why we are strengthening them with the introduction of community right to buy. This will help communities safeguard a range of assets that play a key role in community life, including green spaces such as parks, recreation grounds and allotments. We will explore the best way to monitor the effectiveness of the scheme going forward.
On the parts of the Localism Act which relate to community rights and local services, we think that effective neighbourhood governance is the right route to help to ensure that local decisions are made more effectively by people who understand local needs. A core goal of neighbourhood governance is smarter, more responsive decision-making that is closer to communities, giving communities a greater say in what matters to them.
Through regulations we will set out the criteria for the arrangements that must be in place. We will continue to engage with local government and the community sector to ensure that we understand the best way to do this and the effectiveness of current community empowerment frameworks such as the Localism Act. Although it is crucial to ensure that communities have access to pleasant and attractive environments that provide the spaces they need for recreation and growing food, there are other ways the Government are doing this, including through the planning system.
As noble Lords will be aware, the Government have consulted on a new planning policy framework designed to make planning policy easier to use and underpin the delivery of faster and simpler local plans. It proposes a number of changes to improve the approach to climate change and the delivery of green infrastructure, nature-based solutions and community facilities. We are analysing the feedback received and will publish our response in due course. All these measures seek to ensure access to community spaces and the ability to shape local decisions. An annual report is not necessary or proportionate. As usual, the Government will continue to keep all policies under review. I therefore ask the noble Baroness, Lady Scott, to withdraw her amendment.
Baroness Scott of Bybrook (Con)
My Lords, I think we all agree that it is crucial that we have oversight over the consequences of legislation as big as this. Five years down the line, how will smaller strategic authorities have delivered, in comparison with the larger strategic authorities? How costly will the transitions alone have been? Will local people be better off and feel their taxes are being well spent? Will local service delivery be better and more efficient? These are all questions that the Government should answer and be held accountable for. I understand the views of the noble Lord, Lord Shipley, that local councils and strategic authorities in the future will also have to be doing this work. But it is for the Government to look at the system as a whole and to ensure that it is delivering what it is intended to deliver in this Bill.
Local government reorganisation and the creation of new strategic authorities with new functions should not be done just for the sake of it or to make life simpler for Whitehall. It should be done to ensure that it serves a principled and practical purpose, as we made clear on the very first day in Committee. Our amendments would allow just that and help to inform Parliament of how to move forward in the future. I hope that the Government will see the value of these amendments to assess the real-world outcomes of their efforts.
I thank the Minister for explaining how some of these challenges will be implemented. I need to read Hansard tomorrow to see whether we still have concerns. My overall concern remains—that there is still a lack of good parliamentary scrutiny in the first years after this big reorganisation of local government in this country. I beg leave to withdraw my amendment.
Lord Shipley (LD)
My Lords, I see group 5 on social mobility as one of the most important that we have to consider on this second day on Report. I pay tribute to the noble Lord, Lord Ravensdale, for his commitment to increasing social mobility and his work to promote that and to promote pan-regional working. These are very important. The Government are determined to reduce youth unemployment and among the ways they will do that is the promotion of growth and devolving power to mayoral authorities. I think all these things can work.
The noble Lord, Lord Bichard, in his contribution on the previous group, said that we need a duty on local service partners to co-operate, because we have to promote co-operation rather than competition. I think the same rule applies to Amendment 93 from the noble Lord, Lord Ravensdale, the noble Baroness, Lady Barran, and the noble Earl, Lord Clancarty, on pan-regional working.
One of the history lessons of the regional development agencies, which were ended in 2012, was that they competed against each other far too much. One of my fears in this English devolution Bill is that what could well happen is that mayors will compete with each other for funding, rather than trying to work together to increase the outputs from the money that they have. I have found this a very useful discussion, because if we are to have partnerships at a pan-regional level—let us say the north of England or the Midlands—then to enable broader collaboration between strategic authorities would be very helpful, rather than having mayoral authorities within, say, the Midlands or the north of England competing with each other to earn the favours of the Treasury through their mayoral structure.
I have said previously that I think there has to be a system of assessment of the success of devolution to mayoral authorities. How do we know if they are working? We discussed that on a previous group, in one sense. I think that mayors should be targeted far more than we currently seem prepared to do. I think mayors should have a duty to reduce youth unemployment, unless they can demonstrate that central government has done something that prevents them from achieving that objective. I think that that would give a focus on the reason why mayors exist in a local area, which is to ensure that training gets better and that fewer young people, 16 to 24, are not in education, employment or training. Young people must be helped more and we have to invest more in their futures.
Finally, on Amendment 183, to which my name is attached, I think that consulting with the Social Mobility Commission on how we collect the data, and on how the evidence of social mobility outcomes is assessed, will matter. It is about achieving real outcomes, and those outcomes will depend on having the data to assess them. The Social Mobility Commission may have ways in which it can assist us. The noble Baroness, Lady Barran, said something that I thought was very important: the cost is tiny in terms of the potential gains that can be made. I think that is absolutely right, so I find the three amendments in this group, led by the noble Lord, Lord Ravensdale, to be particularly helpful and appropriate, and I hope the Government will agree when the Minister sums up.
Baroness Scott of Bybrook (Con)
My Lords, I am also grateful to the noble Lord, Lord Ravensdale, for bringing forward Amendments 93, 119 and 183, which address regional collaboration and the vital issue of social mobility, as we have heard.
Amendment 93, in the name of the noble Lord and supported by my noble friend Lady Barran and the noble Earl, Lord Clancarty, is a very sensible amendment that will encourage and enable collaboration between strategic authorities. We believe that this can only be a good thing for regional economic development, to the benefit of local residents. I will not repeat all the points so ably set out in support of this amendment, but if the noble Lord, Lord Ravensdale, decides to press this amendment to a Division, he will have our full support.
Amendments 119 and 183 go to the heart of what devolution is ultimately for. It is not simply about shifting powers between tiers of government; it is about improving life chances, particularly, in these amendments, for young people who are not in education, employment or training. Amendment 119 was ably supported and explained by my noble friend Lord Young of Cookham, and it highlights the importance of the partnership approach in tackling youth unemployment. This is an area where local knowledge and collaboration between authorities, employers, education providers and community organisations can make a real and lasting difference. Devolution should enable that kind of joined-up working, and it is right that the Bill reflects that ambition. Again, we will support this amendment if pressed to a Division.
Amendment 183 raises an equally important point about measurement and accountability. Taken together, these amendments remind us that economic growth alone is not enough. We must ensure that opportunity is shared and that devolution contributes to widening access to education, skills and employment. We are grateful to the noble Lord for bringing these issues before the House, and we look forward to the Minister’s response, particularly on how the Government intend to embed social mobility considerations into the delivery of devolved powers.
Baroness Taylor of Stevenage (Lab)
My Lords, I am grateful to the noble Lord, Lord Ravensdale, for these amendments, and for taking a great deal of time and trouble to discuss them with me in recent weeks. The amendments relate to pan-regional collaboration, tackling youth unemployment and gathering social mobility data. I agree with the words of my noble friend Lady Blake: where you come from should not determine where you get to. I am a living example of that myself, and I know that there are many around your Lordships’ House. That should apply to anybody, wherever they start out—they should be able to get as far as their aspirations and their ability take them.
Amendment 93 is about pan-regional collaboration, which we have debated in Committee. I recognise the spirit of this amendment and its aim of empowering our strategic authorities to collaborate across administrative boundaries, to tackle shared challenges and to seize regional opportunities. As your Lordships will know, there is already significant pan-regional co-operation taking place between authorities, with mayors encouraged to collaborate across their regions, as set out in the English Devolution White Paper. To give one example, the Great North was established last year by northern mayors as a mayor-led partnership to unlock jobs, opportunity and prosperity across the north.
I appreciate the intentions of the amendment before us, but it largely mirrors what has already been provided for in Clause 21, which gives mayors the power to convene meetings with local partners, and Clause 22, which provides a formal process for mayors to collaborate. These clauses establish a more formal framework for local engagement and partnership working, while allowing strategic authorities to determine their own methods and priorities for collaboration.
We will be publishing statutory guidance on the operation of the duty on mayors to collaborate. This guidance, to which mayors of strategic authorities must have regard, will elaborate on the importance of cross-boundary working and the benefits it can deliver for those who live and work across functional economic areas.
In response to the noble Baroness, Lady Barran, I am grateful for her words, which really encapsulated some of what we are trying to do. However, on pan-regional partnerships, we had to take very tough decisions on funding because of the legacy we were left. As she indicated, we believe that these functions should now fall into the mayoral remit and it should be for mayors to build up those clear partnerships. I know that some of the pan-regional partnerships continue to exist because they had moved themselves to self-funding, and I am sure our mayors will want to work with them.
In response to my noble friend Lord Berkeley, regarding Cornwall and the Isles of Scilly, he and I have discussed this on many occasions, and I have been to the Isles of Scilly with him. The Isles of Scilly are a sui generis authority, so they are not covered by the Bill. Nevertheless, we expect all areas to co-operate across boundaries, and I know there are useful discussions taking place between our friends in Cornwall and in the Isles of Scilly.
Lord Fuller (Con)
I will speak briefly to this group, and I am grateful to the Minister for engaging with me on the narrow point. These three amendments, which are mostly the same, are supportive of what the Government are trying to achieve.
In Clause 42, there is a requirement for mayors to co-operate with the LGPS to finance infrastructure. I have no problem with that—in fact, it is to be welcomed. My amendments are based on the simple truth that if they are to grow the economy, mayors need to have a complete understanding of how money is raised, deals are put together and bright ideas are turned into investible opportunities.
In essence, mayors need to understand the difference between funding and financing. Funding is writing the cheque; financing is putting that deal together. Of course, they are completely different disciplines. My amendments simply substitute “develop” with “promote”. This recognises that it is the role of mayors to produce investible opportunities but not necessarily that of the LGPS to buy them. This is not purely semantics; it is a simple word change that stops accusations of a degree of connivance or collusion between the mayor and funds, which could lead to conflicts of interest.
This group ensures that there is a proper separation of duties between the mayor and the funds. The word “promote” helps everybody be clear: it is the mayor’s job to punt the opportunity, but the scheme is not necessarily mandated to accept it. Promotion makes it clear that the mayor needs to work harder to be clearer about what the market and investors require, to turn that idea into a proposition. In so doing, the important point is that this encourages the wider uptake of good opportunities, not just by the home fund but by the wider pool of investments in the LGPS and beyond.
There would be fewer accusations of connivance, a greater clarity of roles, greater professionalism and understanding of how financing works, and a better separation of duties, which would allow other pools to jump on the bandwagon of good ideas, rather than just being a closed shop. Words matter. This substitution would strengthen the clause and make actual investments more likely. Two minutes—I beg to move.
Baroness Scott of Bybrook (Con)
My Lords, I will speak briefly to the amendments in the name of my noble friend Lord Fuller, which all address an important and practical issue: the clear separation of duties between the mayor and the Local Government Pension Scheme. At its heart, this is about avoiding conflicts of interest, as we have heard.
Under the Bill, mayors will rightly have a central role in promoting investment opportunities in their regions, championing growth, attracting capital and supporting local economic development. That is an essential part of the devolution agenda. However, we must be equally clear about who is making investment decisions and on whose behalf. Pension funds exist to serve their members and local taxpayers. Their primary duty is fiduciary: to act in the best financial interests of those beneficiaries.
There is a distinction here that matters. The mayors may promote opportunities, but they should not be in a position to directly or indirectly influence the allocation of pension fund assets. In simple terms, one body promotes the opportunity and another independently decides whether to write the cheque. As has been noted, there are important differences between funding and financing and between providing the capital and structuring the deal. Both require clarity of responsibility and robust governance.
Co-operation between mayors and pension schemes is not only desirable, it is inevitable, but the co-operation must not drift into anything that could be perceived as pressure or direction. We must guard against any blurring of lines. What begins as collaboration must not become, even inadvertently, connivance. These amendments are therefore modest but necessary. They seek to put beyond doubt the separation of roles to protect the integrity of pension decision-making and to give reassurance to local taxpayers and scheme members alike. For those reasons, I support them.
Baroness Taylor of Stevenage (Lab)
My Lords, I am grateful to the noble Lord, Lord Fuller, for Amendments 129 to 131 and for the time he took to discuss them with me. I recognise his intention to clarify the roles and responsibilities of strategic authorities and pension funds in making local investments. I agree that it is very important for roles and responsibilities to be completely clear. We want strategic authorities to play an active role in bringing forward investment and guidance. We will further explain the Government’s expectations.
I just point out that there is in the Pension Schemes Bill a reciprocal requirement for local government pension funds to co-operate with strategic authorities. The wording of “identify and develop” in this context is consistent with that requirement, which makes it a bit late to change that just now. The meaning of “development”, however, can be clarified in guidance. Pensions guidance will confirm that there is no requirement to invest in assets that are not deemed suitable as pension investments. This should provide the noble Lord reassurance.
Schedule 20 includes a requirement for local growth plans to set out key projects for achieving economic growth through private or public investment. The guidance on local growth plans already makes clear the expectations and support available to mayoral combined authorities and to mayoral combined county authorities for developing and taking forward that pipeline of investment opportunities. Further, government guidance for local government pension funds will explain the meaning of this requirement for them. This guidance will further clarify our expectations in this context. I am very happy to discuss this with the noble Lord outside the Chamber as we develop the guidance. Therefore, I respectfully ask the noble Lord, Lord Fuller, to withdraw his amendment.
“(a) the availability and standards of housing, transport services or public safety,(b) environmental factors, including air quality, and access to green space and bodies of water,(c) employment prospects, earning capacity and any other matters that affect levels of prosperity,(d) the degree of ease or difficulty with which persons have access to public services,(e) the use of, level of use of, tobacco, alcohol or other substances,and any other matters of personal behaviour or lifestyle, including physical activity and diet, that are or may be harmful to health.”Member’s explanatory statement
This amendment replaces the list of general health detriments.
Baroness Scott of Bybrook (Con)
My Lords, my Amendment 132 is on the general health determinants listed under Clause 44. Under that clause, combined authorities must have regard to improving the health of people in their area. Our amendments would expand the current list of general health determinants to include the availability, as opposed to just the standards, of housing. In addition,
“matters of personal behaviour or lifestyle”
as referenced in the Bill are specified to include “physical activity and diet”.
On housing, standards are crucial of course, but housing availability should also be considered as it affects housing insecurity and homelessness. On physical activity and diet, it should be clear to all noble Lords that these are major health determinants. This is common knowledge: dietary patterns are a key determinants of chronic disease, and physical activity is a major factor for preventable disease. In 2023, evidence from the Sport and Recreation Alliance showed that the UK was ranked 11th out of 15 comparable European nations for the levels of physical activity that were undertaken, and that we were the third-highest spender on healthcare costs caused by inactivity. Updating the general health determinants in this Bill would inform fthe health determinants referenced in Amendments 133 and 134 from the noble Baroness, Lady Royall of Blaisdon.
Evidently, there is scope in this Bill to see what more can be done to make our country healthier, based on common sense. I look forward to the Minister’s response to this very short and very simple amendment.
Baroness Royall of Blaisdon (Lab)
My Lords, I will speak to my Amendments 133 and 134. As we are aware, the UK’s health is fraying and unequal, with increasing numbers of people unable to work owing to poor health. Compared with other high-income countries, the UK now has one the lowest life expectancies and is among those with deepest health inequalities. This has avoidable and negative consequences for individuals, public services and the economy.
Addressing these inequalities requires action at regional level, where leaders have the powers to shape economic growth, create healthy places and reduce inequalities. This Bill provides a timely opportunity to embed health and health equity at the heart of devolved decision-making, and I warmly welcome Clause 44, which is a crucial lever for improving health and reducing health inequalities.
In Committee, I tabled amendments to strengthen this duty and the proposed local growth plans to ensure that all strategic authorities act consistently to improve health, reduce health inequalities and consider health while growing their local economies. My noble friend the Minister responded that she believes the duty as drafted
“will apply to all functions, including developing a local growth plan”.—[Official Report, 4/2/26; col. GC 613.]
However, the Government have not yet provided any detail on how this duty should be fulfilled or how strategic authorities will be held accountable for this. Without this detail, there is a real risk that inequalities will be worsened, with some strategic authorities taking significant action to improve health and others seeing the duty as a tick-box exercise.
To ensure that the duty is as successful as we and the Government want it to be, I have tabled amendments which would require the Government to report to Parliament on the implementation of the duty. I am grateful to the noble Lords, Lord Hunt of Kings Heath, Lord Bassam of Brighton and Lord Bichard, for their support.
The Government previously said that they will monitor the health duty, with Miatta Fahnbulleh, the Minister for Devolution, Faith and Communities, saying that
“we will continue to monitor how the new duty beds in and its impact across the country, so we can ensure that the intent is aligned with practice and delivery”.—[Official Report, Commons, English Devolution and Community Empowerment Bill Committee, 21/10/25; col. 358.]
These amendments would formalise the Government’s commitment, providing a mechanism to identify whether further support, guidance, resources or requirements are needed in the future. It would also provide a mechanism to support shared learning across strategic authorities.
The amendments focus on implementation and process rather than outcomes, given the time it takes to see shifts in health inequalities. Information could be collected with a light-touch approach of returns from strategic authorities covering actions taken, strategies produced, partnerships formed, et cetera, and desk research by civil servants. Without these amendments, there is a risk that the new health duty remains well intentioned but inconsistently applied across regions and will therefore fail to have any real impact on reducing health inequalities. This would be a significant missed opportunity to reverse worrying health trends. If the amendments are not acceptable, I hope that the Government will agree to guarantee strong guidance on this issue to ensure that the duty is properly implemented across all regions.
Lord Wilson of Sedgefield (Lab)
My Lords, I thank the noble Baronesses, Lady Scott and Lady Royall, for their amendments relating to the new health improvement and health inequalities duties. I also thank the noble Baroness, Lady Freeman, for her helpful contribution.
On Amendment 132, I stress our ambition to enable combined authorities and combined county authorities, which are the experts in their local areas, to take a broad view of the factors that shape health and drive health inequalities in their areas. The Bill illustrates a number of important health determinants to give clarity to our intent and indicate areas where authorities are likely to be able to act. It already includes standards of housing and matters of personal behaviour and lifestyle. It also explicitly allows for consideration of any other matters that affect life expectancy or the general state of health.
Setting out large numbers of individual determinants risks restricting flexibility, because it would imply that the specific determinants to be considered are only those which are set out in detail in the Bill. Indeed, the proposed amendment would have the effect of limiting the scope of “general health determinants.” It would set out a narrower list of general health determinants by removing the scope for combined authorities to consider
“any other matters that are determinants of life expectancy or the state of health of persons generally, other than genetic or biological factors”,
and focus instead only on matters of personal behaviour and lifestyle, rather than also considering wider public health and systemic matters which might determine life expectancy or the state of health of a person.
I am grateful to my noble friend Lady Royall for her Amendments 133 and 134. However, these amendments would add an unnecessary bureaucratic burden on combined and combined county authorities. The Secretary of State would be unable to make such an assessment without placing detailed reporting requirements on combined and combined county authorities. We want to shift power away from Whitehall and into the hands of those who know their communities best. The requirement for the Secretary of State to make an assessment of the
“consistency of implementation of the duty”
is not compatible with our fundamental proposition that combined authorities and combined county authorities are best placed to judge how to put the duty into effect locally.
Furthermore, the requirement on the Secretary of State to define a minimum standard against which to assess authorities would unhelpfully impose a degree of uniformity and have the unfortunate effect of turning a minimum government standard into a default standard. This would constrain local ambition. More broadly, alongside this new duty, we want to simplify requirements in relation to the planning and delivery of health and care services to create more flexibility for areas to respond to the needs of their local populations.
However, I reassure my noble friend that we will pay close attention to how the new duty embeds in the work of combined authorities and combined county authorities to understand the impact that it is having over time, including the different ways in which authorities respond to it. With these reassurances, I ask that the noble Baroness, Lady Scott, withdraws her amendment and my noble friend Lady Royall does not move hers.
Baroness Scott of Bybrook (Con)
I am grateful to the noble Baroness, Lady Royall of Blaisdon, for her amendments. Ensuring that we have a holistic view of housing—not just the quality but the quantity of housing and the role that it plays in health—makes it easier for authorities to respond to this part of the Bill. Explicitly recognising the effects of diet and physical activity on our health is not contentious but will also help authorities to facilitate healthier lifestyles in their communities. I hope that the Minister will give his continued consideration to these amendments.
Baroness Scott of Bybrook (Con)
My Lords, the amendments in this group all concern Schedule 25, which allows the Secretary of State to make regulations in relation to functions of strategic authorities and mayors. We believe that the schedule, as drafted, lacks the appropriate democratic safeguards.
The current test in the Bill for whether the Secretary of State is satisfied that regulations can be made is “appropriate”. That threshold is notably low and subjective for the exercise of very wide powers. These provisions allow for conferral, modification and transfer of significant public functions, including through the amendment of primary legislation. It is therefore reasonable to expect a more disciplined legal standard.
We on these Benches believe that replacing “appropriate” with “necessary and proportionate” would align the exercise of these powers with well-established public law principles. The amendments would require the Secretary of State not only to justify the objective being pursued but to demonstrate that the chosen intervention is genuinely necessary and no more extensive than is needed. The amendments do not prevent action but rather ensure that such action is properly constrained and transparent.
I turn to the issue of consent. Amendments 157, 159, 161, 162, 165, 167 and 169 would require the Secretary of State to obtain the written consent of affected strategic authorities and mayors before they exercise their powers. They would therefore introduce a vital democratic safeguard. As drafted, the duty is limited to consultation, which does not guarantee that local views will meaningfully shape an outcome. Given that these regulations may significantly alter the functions and balance of power within local government structures, it is only right that those directly affected have a decisive voice. Put simply, changes should not be imposed on local people without their consent.
A consent requirement would ensure that changes are made in genuine partnership with local leaders, rather than being imposed from the centre. It would also further enhance transparency and allow both Parliament and the public to see clearly that reforms have secured local agreement.
Amendments 158, 160, 164, 166 and 168 address a clear inconsistency in the drafting of the schedule by applying an established safeguard to provisions where it is currently absent. In Part 1, the Secretary of State is rightly constrained by the requirement to consider whether regulations are justified by reference to the effective exercise of the function concerned. However, despite later parts conferring powers of equal significance, such as the transfer and reallocation of functions, no such discipline is applied. This risks creating a situation in which substantial structural changes to local government could be made without a clearly defined statutory purpose. By inserting this test alongside the requirement that any intervention be necessary and proportionate, the amendment would ensure that all uses of these powers were guided by consistent and principled frameworks.
I turn finally to the amendments on pilot schemes. My amendments seek to place sensible and proportionate safeguards around the use of pilot schemes. As drafted, the Bill confers very broad discretion on the Secretary of State, with limited external scrutiny. Pilot schemes are by their nature experimental. It is therefore essential that they are subject to robust transparency and evaluation requirements. The amendments would ensure that impact reports, consultation responses and written consents were made public. This would strengthen accountability and allow both Parliament and the public to understand how the schemes are operating in practice.
The requirement for an independent evaluation introduces an objective assessment of whether a pilot scheme has achieved its intended outcomes, rather than relying solely on the views of those involved in its delivery. Removing the ability to extend pilot schemes repeatedly prevents what could otherwise become a rolling arrangement that avoids proper scrutiny. The introduction of the requirement to demonstrate measurable improvements supported by evidence, and to show that benefits outweigh any adverse impacts, ensures that pilot schemes are not only well intentioned but effective in practice.
Finally—and I am sorry that I have taken so long—the proposal would require all regulations under this schedule to be subject to the affirmative procedure, accompanied by a clear written statement, which would reinforce parliamentary oversight and ensure that the exercise of these significant powers is properly justified and transparent. I look forward to the Minister’s response on these points.
Lord Wilson of Sedgefield (Lab)
I thank the noble Baroness for all these amendments. I think that there are 26, so it might take a little time to reply with a depth of understanding.
Amendments 150, 152 and 155 seek to alter the wording of the statutory test which the Secretary of State must apply when taking a decision to make regulations to confer a function on a strategic authority or to modify how a function is exercised by a strategic authority. The statutory test as currently drafted in the Bill is already sufficiently robust. The statutory test already requires the Secretary of State to be convinced that any regulations are appropriate for the effective exercise of a function. Introducing a more restrictive statutory test which would require the Secretary of State to be satisfied that regulations are necessary and proportionate could lead to central government being too cautious in using Schedule 25 to proactively make changes to the devolution framework, and could discourage government from expanding the framework in future.
Amendments 158, 160, 163, 164, 166 and 168 seek to apply the amended statutory test to each of the ways in which the Secretary of State can use Schedule 25 to make regulations to modify how a function is exercised by a strategic authority. These amendments are not necessary, as the statutory test does not need to be repeated throughout the schedule. The Bill introduces the statutory test in Part 1 of the schedule, which relates to both the conferral and modification of functions. Parts 2, 3 and 4 of the schedule provide more detail on how the Secretary of State can modify functions, and therefore the statutory test still applies to Parts 2, 3 and 4.
I turn to Amendments 151, 153, 157, 159, 161, 162, 165, 167 and 169. These amendments seek to require the Secretary of State to obtain local consent before conferring a function on a strategic authority or modifying how a function is exercised by a strategic authority. It is right that the Bill includes an extensive list of the authorities and people which the Secretary of State must consult before a decision is taken on the conferral or modification of a function for a strategic authority. This list includes affected mayors, strategic authorities, local authorities and any bodies or persons who are currently involved in exercising the function. In London, the Secretary of State will also need to consult the Greater London Authority functional bodies and the London Assembly. However, it would not be right that the Secretary of State must obtain the consent of all the authorities and people who would be affected by a decision on the conferral or modification of functions.
Schedule 25 allows the Government to expand and update the devolution framework for each class of strategic authority in future. This approach moves us on from the era of bespoke devolution deals for each area, which were time-consuming and complicated to implement, and allows us to more quickly expand and deepen devolution across the country. Under this new and more standardised approach to devolution, it would not be right for an authority or person to effectively have a veto which prevented the Secretary of State conferring or modifying a function on a whole class of strategic authority.
If individual authorities or mayors had a veto, they could limit the rollout of further devolution and hold back opportunities and prosperity for other areas in England. Also, as currently drafted, Amendment 161 appears to mistakenly require the Mayor of London and the London Assembly to provide their consent to the modification of functions which affect strategic authorities outside London.
Baroness Scott of Bybrook (Con)
That will help me get to sleep, will it not?
I know that the amendments in my name are long and slightly complicated, but they are not intended to frustrate the Government’s objectives or to frustrate Schedule 25. We on these Benches might not agree about the objectives of the Bill—we probably do not—but we think it is important to ensure that the framework in which these regulatory powers are exercised is properly balanced, and from what I heard from the Minister, I have doubts about that in some cases. These amendments are intended to embed the principles that we should have across the whole Bill about transparency and consent, particularly local consent. They would also ensure that there are necessary safeguards in place so that Parliament can scrutinise any use of these significant delegated powers in an effective and simple way. I hope the Government reflect carefully on these amendments, and perhaps the noble Lord will also read Hansard tomorrow, but at this point I beg leave to withdraw the amendment.
Baroness Taylor of Stevenage (Lab)
Two more votes: that always makes you feel better. Thank you, Deputy Speaker.
Government Amendments 171 and 180 are technical amendments that provide greater clarity on how Schedule 25 will allow the functions of strategic authorities to be updated and modified over time. Amendment 180 clarifies that Schedule 25 to the Bill allows the Secretary of State to modify and confer functions on new mayoral strategic authorities during the period between their establishment and the inaugural mayor taking office. This amendment ensures that the functions of mayoral strategic authorities can be modified if needed ahead of the mayor being elected, ensuring that the authority is able to operate effectively during this period. A good example is the transfer of fire and rescue authority functions to devolution priority programme areas whose mayoral elections will take place in May 2028. Where local government reorganisation will see the abolition of current fire and rescue authorities in April 2028, the amendment will ensure that we have a mechanism to provide for the new mayoral strategic authorities to become the fire and rescue authorities, thereby ensuring the continuity of service provision critical for public safety.
Amendment 171 clarifies that Schedule 25 allows the Secretary of State to specify whether a function which has been conferred on a particular class of strategic authority is to be exercisable by different strategic authorities within that class at different times. This flexibility will, for example, be important in enabling the appropriate transfer of fire and rescue functions from existing fire and rescue authorities to strategic authorities at the right time for each area. In some areas, strategic authorities may be established in advance of local government reorganisation being completed, and it may not be appropriate to transfer those functions until the reorganisation is concluded. The amendment therefore ensures that such functions can be commenced at a point when an individual area is ready to exercise them.
I turn to Government Amendments 192 and 193. I am grateful to members of the Delegated Powers and Regulatory Reform Committee and to the noble Lord, Lord Lansley, for their consideration of the Henry VIII power in Schedule 26, concerning the conversion of a combined county authority to a combined authority following local government reorganisation. The Government have carefully considered the committee’s recommendation to remove the Secretary of State’s power to amend primary legislation made in future Sessions as it relates to this power. We have concluded that any necessary transition of a combined county authority to a combined authority can be delivered without taking a delegated power. I am therefore able to confirm that the Government not only accept the committee’s recommendation in relation to this specific power but intend to go further, by removing the delegated power to alter any existing primary legislation when undertaking conversion, save for amendments to the 2007 Act that may be necessary. I beg to move.
I know that the House will sit tomorrow on the terminally ill adults Bill, but as I am not likely to participate in those debates, I wish all noble Lords a restful and relaxing recess, and we will continue our deliberations on this Bill on 13 April.
Baroness Scott of Bybrook (Con)
I thank the Minister for these amendments. They help to clarify certain things and are tidying-up amendments. We fully support them. I also wish the House a very happy Recess.