(3 days, 1 hour ago)
Grand CommitteeMy Lords, I rise to oppose Clause 57 and Schedule 26 and express my deep concern about the way in which the Government are pushing through local government reorganisation under the banner of devolution. Local government reorganisation is not new. It can and does happen but, where it does, it should happen by consent. Councils already have routes to propose mergers and restructuring where they believe it is right for their area.
What is different here is the scale and direction of travel. This feels rushed, top-down and imposed. It runs directly counter to the notion of devolution and the stated purpose of this Bill. I do not accept that the creation of new strategic authorities requires, as some kind of quid pro quo, the rapid abolition or forced merger of existing authorities. One size does not fit all. I have some experience of unitary authorities and recognise that they can work well, but that does not justify imposing them everywhere regardless of local circumstances, identity or consent.
Crucially, there is no strong evidence to support the argument that these changes will save money or improve service delivery. Larger councils are not automatically cheaper or more efficient to run. At a time when local government is already under extreme financial pressure, it is extraordinary that Ministers are pursuing structural upheaval rather than addressing the underlying problem of chronic underfunding. Local authorities are still grappling with the consequences of austerity. Councils across the country face serious and growing funding gaps and services are already stretched to breaking point. Before imposing disruptive reorganisations, the Government should fix that.
There are also serious risks to community identity and representation. Evidence from councillors on the ground suggests that these proposals could result in arbitrarily drawn, very large authorities with little sense of place or shared identity. Many towns with long histories and strong civic cultures—places that people care deeply about—are at risk of being effectively wiped off the local government map. It is important because democracy is about not just administrative efficiency but connection, accountability and trust. There is clear evidence that size matters for democratic engagement. Increasing population size and geographic scale risks reducing electoral turnout and lowering participation in local decision-making. We already have far too few elected representatives compared with many comparable countries. These proposals will significantly reduce the number of councillors overall, further thinning out representation at precisely the moment when communities are facing increasing pressures and greater complexity.
I am particularly concerned about the impact on casework and local advice. Councillors play a vital role as accessible, familiar faces in their communities, helping people navigate failing systems, resolve problems and get support in times of crisis. Many already work far beyond what their allowances reflect, often with limited support. When I was a councillor in Southwark, I could not do any gardening in my front garden because people would come up to me and tell me about their awful problems with black mould—clearly more important than my daffodils—so going into my garden was sometimes a challenge.
Schedule 26 risks abolishing whole tiers of representation almost overnight. That will inevitably lead to spikes in casework and confusion about where people turn for help. Local advice centres are already under immense strain, having lost staff and volunteers, while demand continues to rise. I see no evidence that the Government have seriously considered how this reorganisation will affect advice provision or where that additional pressure will land.
I do not agree that having services under one roof will make things simpler for residents. It might sound true in principle, but transitions of this scale are not frictionless. Removing thousands of local representatives at once is a disruption, and disruption without consent carries real democratic costs. Schedule 26 concentrates power in the hands of the Secretary of State, allowing directions to be issued, boundaries to be changed and authorities to be abolished with little or no local say. For all these reasons, I believe that Clause 57 and Schedule 26 represent a huge step in the wrong direction.
My Lords, my Amendment 196EC to Schedule 26 fairly sets out some of my concerns, which, having listened to the noble Baroness, I am sure are shared by others in the Room. I tabled it in part to probe how Ministers will determine the new pattern of unitary councils. I appreciate that, by and large, they will be shaped by the submissions being made by current local authorities to the department, but my concern is that there is little thought or discussion about the size, shape or culture of the new councils.
The Government’s White Paper, published in December 2024, was clear that unitary councils should have
“a population of 500,000 or more”.
It argued that this would be
“the right size to achieve efficiencies, improve capacity and withstand financial shocks”.
The White Paper also said that
“reorganisation should not delay devolution and plans for both should be complementary”.
The Government have sensibly delayed the election of a number of the combined mayoral authorities and slowed the process down. Until the last general election, the pace of devolution was rather more measured, which was wise. Understandably, the new Government want to get a move on with their major reforms. At the same time, we will be asking the combined mayoral authorities and the new unitary councils to deliver much of the Government’s growth agenda and their political priorities in education, housing, childcare, nursery provision and so on. Quite right, too: they are the vehicles for a lot of those things, in particular transport. But the idea that these new and very powerful institutions will be capable of delivering new policies and plans while simultaneously creating themselves is something of a stretch. When Brighton and Hove City Council was set up back in 1997, we wisely gave ourselves two and a half years of preparation, including one year as a shadow authority. None of these structures will have that luxury.
It is well known that I favour unitary councils and have long argued for them, but they have to be well grounded to work and, to be well grounded, they have to be based on recognisable boundaries that have a clear relationship with local geography and a sense of community. My authority, Brighton and Hove, is constrained by the downs and, for that matter, it makes sense. It is a place, and place-making, as the Government say clearly in the White Paper, is of great importance not just to government but, more importantly, to communities. Make the unitaries too big and start tying urban and rural districts together and you lose that. You also lose the sense of community identity.
In the past, when unitary authorities were established, many place names were lost. I go back to 1974: who knew that Sefton was Southport and Bootle, or that Kirklees subsumed places such as Huddersfield, Dewsbury and Batley? Kirklees is the name of a hall on an estate, some of which is, I think, in the neighbouring borough of Calderdale. My point here is that place-making and community building, which are surely part of the stuff of local government, rely on the ability to be readily identified so that people can understand who is responsible for what and in whose name. Abolishing a lot of the place names, as the last local government review did in 1974, risks depriving people of that ready point of identity, which would be unfortunate and wrong.
Currently, looking at the size of authorities, we have few that fit the 500,000-plus margin—just nine: Birmingham, Cornwall, Leeds, Sheffield, Bradford, Manchester, County Durham, Wiltshire and Buckinghamshire. It is an open question as to whether their size makes them more efficient; it is possible that it makes them more remote. The more remote they are, the more citizens feel left behind and left out, and less engaged and able to influence local decision-making.
For that reason, my amendment seeks to ensure that, in making a direction on the future pattern of local councils in a given area, the Secretary of State must have regard to local geography, because of its influence on travel and community relations; the sense of identity that the new authorities will take on in terms of places and communities; and whether it is wise simply to glue together urban and rural areas for administrative convenience. Additionally, the environmental and financial sustainability of a council area, and its proposed size, have to be considered.
The White Paper seemed to assume the bigger the better and that savings would flow. I am less convinced. If I look back to the unitarisation of Berkshire in 1998, for example, when the council was broken up into six unitaries, all then had to find directors of social services, education, environment and highways. A similar impact will be felt with the unitarisation that takes place under combined mayoral authorities.
I suspect most councils have stripped out excessive costs over the past 15 years and most will have come from back-office mergers. There may be savings in the administration of council tax as larger council tax areas come into view, but the integration of many district council systems into new unitary council tax collections will certainly come at a cost.
To conclude, I have a number of questions for the Minister. Can she confirm that a fixed size for unitaries—the 500,000 figure—has been dropped? Do the Government have a number in mind? Will the Secretary of State be mindful of ensuring that mergers respect the need to have identifiable boundaries that respect urban and rural differences and the historical bases of councils, to enable place-making and help with community resilience? Can we be assured that resources will be in place to ensure a seamless transition from the current pattern of districts into larger unitaries?
What steps will the Government take to guarantee a level of democracy that makes councils accessible to local electors and residents? The noble Baroness, Lady Jones, made the point that councillors already work hard. The White Paper confirmed that the number of councillors would reduce—that is pretty obvious, really—but can we be assured that councillors will be sufficient in number, and well enough resourced and supported, to represent the inevitably larger communities that they will be part of?
I do not oppose unitaries; in fact, I am rather keen on them. I do not oppose devolution, but it has to be done at a pace, and in a style and manner, that works for local communities to ensure that democracy, demography and community identity are preserved, because place-making should be at the heart of the changes. We all need to be assured that that will be the case.
My Lords, I add my voice in support of the noble Lord, Lord Bassam. Everything he said makes a great deal of sense. It is hugely important to consider the identity of the authorities being created in terms of their communities and place-making. I am also tempted to support the noble Baroness, Lady Bennett of Manor Castle, in her opposition to Clause 57 standing part, because it makes no sense to introduce this additional tier of local government at the same time as supposedly simplifying it by reducing two tiers to a single tier. To do this at the same time is likely to result in more costs, endless local government arguments and unhappiness.
I thank my noble friend for her response to my amendment. It is worth the Government thinking a bit more about whether it would be appropriate to put in the Bill something that reflects the guidance. I am grateful to all noble Lords who supported what I said. If we are to get reorganisation right, this is an opportunity to put some guarantees in place to do exactly that.
My Lords, I shall not speak for long. I was looking around the Room, trying to add up how many former local leaders there are, and I got to five or maybe six. We probably all had one thing in common: our generation of politicians was extraordinarily reliant on our local paper to broadcast our successes and failures and, more importantly, to hold local institutions to account.
When I first became a councillor in Brighton, in 1983, my local paper had three editions a day. It had a circulation of 120,000. It had arts, health, local government and crime sections, with a general list of reporters, all different specialists, who worked from the city centre. The paper was also given different opt-outs for Worthing, Hastings and Crawley. There was an extensive newspaper network, and it was complemented by three radio stations, two of which were commercial, and two TV stations. Brighton and Hove had a degree of news saturation.
That meant that the spotlight was placed on us as local politicians in a way that was sometimes aggressive, but more often than not benign, because they believed in reporting the facts. As a local politician sitting on a committee—including as leader of the council, which I was towards the middle end of the 1980s—if I could see the journalist’s pen twitch in the corner of the room, taking a note, I thought I had scored a good hit politically, and invariably I had. I am sure many politicians were reliant on people such as Adam Trimingham, our local reporter, for broadcasting their political views and making sure that people knew what the local authority was about.
This amendment is a practical one. It would be a shame if local authorities were not obliged to publish notices in the way they have historically. The decline and death of local news is a great sadness, because people are less well informed about what has been going on in their name. The noble Lord, Lord Storey, talked about investigative journalism; that is as important at a local level as it is at a national one. Our society is poorer without it, so anything we can do through local government to help strengthen local news is very important. I am sure local authorities themselves are worried about that, because it is part of their population’s decline in knowledge and understanding of the democratic process. I hope the Minister can offer us some comfort and encouragement, and perhaps say that we should do more to stimulate local news services. This is one practical measure that the Government should actively consider.
My Lords, the Minister will not be surprised to know that I very much support what other noble Lords have said, given that I promoted amendments to her previous Bill on this subject. It seems to me immensely important that notices should come to the notice of people. I know what my local council would do, if faced with this clause: it would publish either nothing or as little and as obscurely as it could. Its practice is to try to ensure that people do not know what it is up to.
It is entirely undesirable that local councils should have this direction in paragraph 6(3) of Schedule 27, without any rules as to how they should apply it. If we are to keep this clause, at the very least councils should be given an objective; for example, that they should publish it in a way that will lead to the widest readership over the widest spread of the community. In other words, they should know what they are trying to achieve, and they should have something through which to justify their actual performance against what they are supposed to do. I also ask that the publication be, at least in part, in IPSO-regulated spaces, to make sure that what is getting out is of quality.
As noble Lords will remember from the previous Bill, we need to get rid of the 19th-century definition of “newspaper”. There is a much broader section of local news enterprises. As the noble Lord, Lord Bassam, knows, because we are very close neighbours, the level of local news that we get now is very degenerated; the level of investigation, rather than just reprinting material they are given, is really very low. However, in that gap, little local enterprises are springing up. They are often not yet of a sufficient size to afford a print run, but they are getting out there and doing the investigative work. They ought, in the right circumstances, to be supported. I urge the Government to change the definition —if we keep newspapers, that is. If we do not, as the schedule proposes, and we broaden the discretion of local government, we must make it clear what it has to achieve rather than allowing it to achieve nothing.
My Lords, I have Amendment 206 in this group. I guess it is fishing in a similar pool to that of the noble Lord, Lord Wallace, but with a more explicit purpose.
With the increased size of local authorities that we are going to get, we will have cities becoming parishes. At the moment, I think the largest parish form of council is Northampton, which has a population of about 130,000. I do not know what the outcome of the local government reorganisation will be, but quite a large number of towns and cities that have a substantial population will have their powers reduced to that of parish and town councils. My guess is that there will be an expansion in parishing in those areas because people will want to make up the democratic deficit.
However, my point in this amendment is to try to ensure that, where neighbourhood areas are identified as being important—as, for instance, with the Pride in Place programme—the parishes, whether town or city-style parishes, are at least represented. As the noble Lord, Lord Wallace, correctly argued, they are a form of elected democracy and are there to represent their local community. While we all celebrate and work with people who are from neighbourhood organisations, they do not have the same standing in their community because they have not been directly elected by local residents. What I am therefore trying to achieve with this amendment is that, at least where neighbourhood areas are identified and a governance body is established for a neighbourhood area, parish and town councils should have a stake in that organisation. That is what my amendment seeks.
My Lords, I have a number of amendments in this group and will speak to them in turn, but I just begin by saying that I agree with the noble Lord, Lord Bassam. His Amendment 206 and my Amendment 207 are complementary, and in a sense, ask the same question: if one is creating effective neighbourhood governance, does one do it by incorporating town and parish councils into some structure or by investing town and parish councils, as far as possible, with functions and responsibilities themselves? That is where I think our amendments are complementary and could in practice be adopted in one direction in some places and in another direction in others. I accept that this is not our job in this clause, which seems to be the only clause that does not get its own schedule. I would want to have a schedule attached to this clause that set out in intense detail how this would be done because it would vary from place to place.
I was listening to the noble Lord, Lord Blunkett, earlier; I did not interrupt, but the Long Title has no interpreted legal force. It is called the English Devolution and Community Empowerment Bill, and that is a means of citation, but the Long Title does not mention community empowerment. In effect, you can look at what the Bill is called but then you look at the Long Title and it just makes provision about various forms of authorities. It does not actually say that the purpose of the Bill is to devolve power or to empower communities. It is our job to ensure that the Bill really does that. Clause 60 ought to be about community empowerment, which is where my Amendment 208 comes from. In so far as there should be guidance to local authorities on how they go about creating effective neighbourhood governance, it should be geared towards empowering and engaging local communities. It is not necessarily the case that that would happen.
I live in Suffolk. My noble friend Lady Scott of Bybrook and I were both at the same meeting where the intention—it may be intention in many places—is to create neighbourhood governance. This is, in essence, the elected members of the unitary authorities forming a committee for an area. I do not say that that is irrelevant to this purpose, but it is not the same thing as town and parish councils, which have their own identity, their own powers, their own connections and relationships with all the people who live in that precise area. I come back to the word “identity” because, as all noble Lords understand, political identity is very important in how one creates political and organisational governance structures. The starting point for government structures should be: what is one’s political identity? As it happens, in Suffolk, most people probably identify with their town or parish. That is where they start from. My proposition is terribly simple, which is that towns and parish councils should be, wherever possible, strengthened and their functions maintained or enhanced by this process of local authorities creating effective neighbourhood governance.
(5 days, 1 hour ago)
Grand CommitteeMy Lords, I will speak to Amendment 196C. For me, this is a really interesting group because it is quite wide: part of it is to do with wanting to enable local revenue raising and part of it says, “Hang on. Hold on a minute, we need a bit more accountability here. Should we not put up some guardrails?” I am somewhere in the middle of that argument, I guess.
My amendment would allow mayors to levy a business rates supplement to fund local priorities. The first question is: why do that? These mayoral authorities are going to be quite large—perhaps not on the scale of Greater Manchester, West Yorkshire, the West Midlands and so on, but they will be large geographic entities. One would think that they will want primarily to drive projects that relate to bits of infrastructure kit and transport, such as buses, trains and trams, and to ensure that they have adequate local funding to do so. It is welcome that the Government are consulting on a tourism levy but, even following the Bill, established mayoral authorities will still require considerable central funding and approval for major projects.
I do not quite buy the argument that the Bill is about decentralisation, not devolution; I think it is a mixture of the two. It is good that we are looking to decentralise more because that will eventually underpin a greater level of devolution. My amendment would change who can levy the supplement and under what circumstances. It would allow established mayoral areas to levy a business rates supplement without a referendum, as was the case for Crossrail. I am sure that most colleagues will remember that the Crossrail funding was a mix of central funding and local funding. The Crossrail business levy was an important element of that; it also meant that businesses across the capital had to think about what they were going to get out of Crossrail and make their voices well known.
Currently, the relevant legislation says that only the Greater London Authority, county and district councils can do this in England, subject to a referendum of businesses in those areas. My amendment would change this so that only established mayoral areas would be able to do so, but without the requirement for a referendum. This would align the economic growth policies of the mayoral tier with the fiscal incentives from a business rates supplement, as is the case in London. It would mean that the referendum requirement, which was put into the Localism Act 2011, would be withdrawn or would not apply. Crossrail has been a major success—everybody can see that. It has major benefits. I am sure that mayoral authorities, combined mayoral authorities and so on will want to see the sorts of improvement that have been gained from Crossrail spread more widely across the country.
I argue that we should lift those restrictions so that mayors can get on with delivering for their areas. This cuts to the point on central funding that the noble Baroness, Lady Janke, talked about. Most local government services are, in the majority, centrally funded, but that was not always the case. I think back to my time as a borough councillor in the early 1980s, when much more of the revenue was raised locally through business rates and rates on properties. That gave us more autonomy and more freedom, and it meant that local people could see that their local authority was spending their money. That increased the level of interest in local elections, which I believe is a very positive thing. I therefore hope that this will get some favour from the Minister, and that colleagues will find this an interesting solution to local financial support for combined mayoral authorities.
Lord Fuller (Con)
My Lords, I am glad that I am following the noble Lord, Lord Bassam, because I could not disagree more with his Amendment 196C. When I was the leader of a district authority, we had control over the business rates, and we were able to get full reliefs to the last pub, shop or community sporting club in a village with a population of less than 3,000. That was the source of a huge community empowerment. The effect of the noble Lord’s amendment would be another nail in the coffin for rural pubs and small businesses, and I reject it on that basis. I will also speak to my own Amendment 256A, which is a rag bag. We are talking about Clause 56 at the moment, but this would go right at the end, beyond Clause 85; perhaps I should have asked for it to be de-grouped, but here we are.
My amendment is consistent with the Government’s Clause 11, which relates to constraining the council tax-raising ability of the larger, newly created mayoral combined authorities. But I am looking at the other end of the spectrum, because I am concerned that, following local government reorganisation, the former district councils, which are currently defined as “billing authorities” under the Local Government Finance Act 1992, will disappear. In Section 39(2), they will become local precepting authorities. In other words, the district council, once abolished, will be converted to a third-tier parish or town council. This will affect places like King’s Lynn, a historic county borough; cathedral cities like Norwich or Oxford; county towns like Ipswich and Chelmsford; and coastal communities like Hastings, Eastbourne and Great Yarmouth.
Some of these places have large populations—for example, Norwich City Council, when it is abolished, will have a population of more than 150,000—and there will be lots of new large locals formed. The problem is that the majors are constrained in their ability to put up council tax—5%—but the locals are not. This amendment would change the definition of “local precepting authority” to include authorities with a population below 49,999. Where a local precepting authority exceeds 50,000, it would become a major precepting authority for the purposes of raising council tax and be subject to the same rules as other larger councils.
Of course, it is not just the former billing authorities that will flip into parishes; the former boundaries that flowed from the hundreds, the poor law unions, the urban and rural district councils, and the predecessors of the county boroughs in the Reform Act 1832 will disappear. This is why my amendment proposes a size scale, rather than being limited solely to the former district councils. These places will be joining that benighted club: Salisbury, Shrewsbury and Scarborough, which have all fallen out of previous rounds of LGR and must now stand on their own two feet in the sense that, unlike their predecessor billing authority constructions, they will get no formula grant in the future; they will need to earn what they spend.
We already know already that over 100 councils, existing principal authorities, want exceptional financial support this year as the Government shamelessly tilt the formula away from being population based. That is a denial of the simple truth that people consume services that need to be paid for and that it is more expensive to deliver them in the countryside, but that is a debate for another time.
But, under LGR, there will be a powerful incentive for authorities to cost-shunt the most expensive things to these newly created third-level authorities to get the liabilities off their books and on to the small fry. I am thinking of leisure centres, municipal theatres, parks and open spaces, youth groups, civic activity, and community pride events such as carnivals and festivals.
My wife was a parish clerk for over 10 years in a small parish with 500 souls, spending about £3,000 a year, so I know the value of what these unsung volunteers—real community champions—in parish councils can achieve. But I am focusing on the new large class of parish, town or even small city authority, with plenty of staff, plant and equipment, miles away from that “Vicar of Dibley” stereotype.
These residents need protecting from unconstrained tax rises, cost shunts from principal authorities and the smaller populations being made to afford the costs of facilities that have been previously amortised over a much larger canvas—that hinterland of surrounding parishes where people are able to chip in. This is not an idle concern. The noble Baroness has certainly mentioned Salisbury before, which has let rip. Its precept is up 44% in just four years. Its own website tells long-suffering residents that their council tax is the highest in Wiltshire. At £383 for band D, it is over twice the level of my own district council. I have looked at Shrewsbury. Following LGR, its parishioners’ band D is up 218% in 10 years—although I will concede that, at £87, it appears to be offering slightly better value for money. To those against my amendment, I say: look to Shrewsbury, because limiting council tax in these third-tier authorities can be done.
I have also looked at Stevenage, which is likely to be consumed and subsumed into the larger construct—taking power further away from residents and damaging the distinct identity that came from it being the first post-war new town, alongside all the other accoutrements. It is funny how all my examples begin with an S. In Stevenage, the band D was raised by just 3% to £246.41. If it carries on like Salisbury, a band D in Stevenage would pay £354 by 2030—a raise of nearly 50% or over £100.
We must be clear that these are burdens in addition to the new mayoralties that will be created—the huge new bureaucracies with the ability to raise precepts for things they are not even responsible for. There will be new mayoral CIL on top of existing CIL and new authorities where the effects of council tax equalisation within the canvas have not even been ventilated yet, and the costs of LGR have not been determined. We know it is going be subject to at least a £1 billion black hole from the accelerated pension strain costs.
Do not let the Government tell you there will be fewer layers; there will be more and at more cost. The public will be rinsed by LGR. People will pay more for less—that much is certain—but my amendment would at least seek to constrain those billing authorities that are already principal authorities and are constrained in their ability to raise council tax. That will still apply to them when they are transmogrified into third-tier councils, to make sure they cannot do a Salisbury too. That is right not only by residents but by the authorities, because as they approach this forced reorganisation, which will see a transfer of assets, they will know by this amendment that there is not a blank cheque. It will sharpen the minds.
This is not a dig at parish councils or the third tier. They do a lot of valuable work at a level that is closest to the people, but I have got their back, because it will stop those councils with the broadest shoulders from imposing liabilities and cast-offs on to those with the most limited means. That is an essential safeguard if the community empowerment part of this Bill is not to be undermined. I would be creating equity between the cathedral cities, the market towns, the new towns and so forth, so that council tax after LGR does not become an intolerable burden for those who live within the cities and provide perverse incentives for those just outside to become free riders.
I know the Minister is concerned about this and we have spoken for some time about it. I have suggested a £50,000 threshold in Committee, but as we move to Report I would be open to saying that perhaps there should be a £1 million precept or some other measure. But we have to have a measure between the small and the major authorities to protect parishes from having their leg lifted and, in turn, protect their residents from being rinsed.
(2 weeks, 2 days ago)
Grand CommitteeMy Lords, I apologise for not being here a bit earlier and hearing more of the earlier debate and discussion about parish councils. My amendment seeks to include all parish councils in the definition of a local authority which has a power of general competence. It would remove the eligibility conditions prescribed by the Secretary of State for the purposes of Section 8 of the Localism Act 2011. My rationale for this has, in part, already been mentioned in this Committee by a number of colleagues opposite.
My first experience of local government was the local parish council for the village I grew up in, in Great Bentley in Essex. My mother was not actually a parish councillor, but she was a regular attender, and she was a pain in the neck—a very good and positive one. Part of her thing was trying to persuade the local parish to release part of the village green—it was 40-odd acres, so very large—to have a village hall built on it. They decided in, I think 1970, to conduct a local referendum. She was on one side of the argument, and I was on the green side of the argument; I did not believe they should use common land for a village hall. My side won and my mother held this against me for a number of years afterwards. But it demonstrated to me, at quite a young age, the power and importance of local communities and local community representation.
I borrowed and took some of that thinking into my broader politics over time. I was very pleased when, back in the 1990s as the leader of my local authority in Brighton and Hove, I was able to push ahead with the parishing of one part of our local authority area, Rottingdean, because it enabled the local community there to develop local services. By removing this shackle on parish and town councils, we could enable them to deliver much more. I am one of those people who believes in devolving powers and responsibilities to the lowest possible sustainable level. I think parish councils and town councils are capable of producing services and developing new, useful and valuable close-to-community facilities.
To that end, when I was chair of the Co-op Party commission, I argued that when Labour came into government we should empower parish and town councils, because they are close to the communities that they serve. At the moment, they cannot access funds in the same way as higher tiers of local authority. Back then, I reflected that they could not access the community renewal fund, the levelling-up fund, the towns fund or the UK shared prosperity fund. The same is the story now, of course, while Labour reviews its position on parishes.
In our report back in 2022-23, we made a number of recommendations: we should invest more in that lowest level of governance; parish and town councils should be able to develop amenities and be given the opportunity to develop capital sums; with the development of super-unitary authorities, which we envisaged in our devolution model, the emergence of parish and town councils would be essential to genuinely empower people and communities; and we should invest in training and better servicing of those parishes. That is why I am very attracted to this amendment, which has been valuably drafted by the National Association of Local Councils. With the larger unitaries, we will inevitably lose a sense of place if we are not very careful. That is why helping parish and town councils is so important.
I pick on one particular authority, not because I have anything for or against it—but who knows what Kirklees covers? Local government anoraks might, but people living in Kirklees possibly do not. That is because it is made up of composite urban areas glued together for the convenience of a local authority map. Some of that will inevitably happen when we increase the size of councils to fit into a unitary model. If we are serious about place-making, we need to do all that we can to stimulate more interest in town and parish councils, because the larger the authority, the more remote it is from the citizen and the community.
My tilt at this is contained partly in this amendment. Many of the urban areas that will be brought together in the new unitaries deserve a powerful voice. They deserve to be better integrated into the network of local authorities and to be seen as a powerful partner. The noble Lord, Lord Fuller, on the Conservative Benches, made that point the other day when he was talking about the inevitability of large authorities, and it was a very important point. The comments from the noble Lord, Lord Shipley, earlier touched on some of the issues that arose. If we want to be good localist, to value the importance of place-making, and to put more emphasis on that—as we on the Labour side certainly do—we should look again at what local town and parish councils should do and give them the powers and tools to do the job, which they were set up to do many years ago. I beg to move.
My Lords, I thank noble Lords who took part in this debate. My noble friend Lord Bassam’s Amendment 97 would amend Section 8 of the Localism Act 2011 so that all parish councils could make full use of the general power of competence. That is a broad enabling power which empowers an authority to do anything that individuals generally may do unless specifically prohibited. Authorities have used the general power of competence in a wide variety of ways. For example, Hertfordshire County Council has used the power to provide the basis for its participation in the local authority mortgage scheme, which supports the local housing market by supporting first-time buyers.
Given the breadth of the general power of competence, it is important that any authority exercising it has appropriate arrangements in place for effective oversight and scrutiny. In particular, where a parish council is to be conferred the general power of competence, it must have the means and capacity to oversee its use responsibly. This is one of the reasons why Section 8 of the Localism Act 2011 empowers the Secretary of State to set conditions that must be present before the general power of competence can be conferred on a parish council. I pay tribute to the work of parish and town councils. Coming from a shire county in the north-east of England, I understand the importance of what they do. But, as I said earlier—my noble friend Lord Bassam might not have been here at the time—21% of seats are left vacant on parish and town councils. We have to be careful, if the capacity is not there, about giving the general power of competence over to a parish council. The capacity has to be there for them to use it.
Amendment 241C from the noble Lord, Lord Shipley, would place a duty on national park authorities to consult neighbouring communities when taking decisions to use their general power of competence. This Bill is providing national park authorities with the general power of competence to ensure that our national parks are able to operate more effectively and deliver our national priorities in our most iconic landscapes. Providing national park authorities with the general power of competence brings national parks in line with local authorities. It is not a requirement for local authorities to consult on their use of powers with neighbouring communities, although they may choose to consult on certain decisions if they want to. Imposing such a duty on national park authorities could introduce unnecessary bureaucracy for national parks. The general power of competence is well established and widely understood across the sector, and reduces the need for the Government to issue legal clarifications on new legislative instruments. The national park authorities will remain subject to these same constraints and we see no reason for any divergence from the arrangements already in place for local authorities. I hope that, after these explanations and comments, my noble friend Lord Bassam and the noble Lord, Lord Shipley, will feel able not to press their amendments.
My Lords, I will withdraw my amendment. I think the noble Lord’s primary argument was about a potential lack of capacity at local level and the need to have proper oversight and regulation. I entirely accept that. That is a reasonable point to make, but I do not see why we cannot pursue it further, because those measures can fairly easily be put in place, not least through the more senior level of local government at a unitary or strategic authority level.
I was always very impressed by what town councils deliver. Some deliver quite big services; others get involved in the business of markets and so on. They are not just about park benches and streetlights. They are much more than that. Noble Lords from all parties have made the case that they are at a level of government which is very close to the people. That has great value and they deliver a lot. We should now look, with this larger tier of local governance across the country, including unitaries and so on, to further empower them. This would be a very sensible and practical way of doing it.
In response to the noble Lord’s point about there being vacancies on parish councils, a lot of people who would like to get involved simply think: “Well, what’s the point? It’s just a talking shop”. If we encourage and enable them to develop further, people will come forward. I have always been pretty impressed by the calibre of people who operate on parish and town councils.
I am happy to withdraw my amendment, but we should have some more debate on this and try to dream up a framework that would enable them to thrive and develop. If we do not do so now, we will need to come back to this tier of governance in the future, to make local government genuinely local.
(2 weeks, 4 days ago)
Grand CommitteeMy Lords, this group has a number of amendments in my name: Amendments 50A and 51B; Amendment 53A to Schedule 3; and Amendment 196A. There are two separate issues involved in these amendments; I will speak first to those that relate to the restrictions on the number and roles of commissioners.
Last week, we had a really useful debate on the areas of competence. In a sense, this debate shadows that because the commissioners are supposed to shadow the areas of competence. Those of us who were thinking about other areas of competence—in particular, the arts, culture and so on—were looking for some flexibility. These amendments seek similar flexibility in the related roles of commissioners.
New Section 29A, to be inserted by Clause 9, says that mayors may appoint up to seven people and that their functions align with the competence areas. This is potentially an unnecessary example of central control. I would argue that mayors should be free to appoint people to roles determined by them. Why do I think this? Because every area is very different and every area will have different priorities.
Broadly speaking, the areas of competence are wide-ranging. We were arguing that the arts and culture should be an additional area, but they could be within one of the areas of competence; this may mean that a mayor will wish to appoint an additional commissioner. I use this as an example because it is what we were debating last week. This issue is important because you need to bring in the right people for the right jobs, covering those areas of competence and where mayors will make a particular and special emphasis.
It also makes the devolution framework very rigid for the future, which is bad for two reasons. First, it would require primary legislation to enable a change in responsibilities and job titles, or to add more commissioners. Over time, I suspect there will be new priorities in different areas. Secondly, the restrictions would also prevent mayors appointing people to roles which they might want to fill, inhibiting the innovation we want to see from the devolution model—which, in general terms, I think we all applaud. For example, some already appoint active travel commissioners, who would either be out of scope in terms of the legislation or be prevented from continuing in their roles. The amendment, therefore, deals with this by getting rid of the restrictions.
Fewer restrictions would allow mayors to make commissioner appointments to different roles, depending on the needs of their own area, region, county or counties. For example, instead of a single transport and local infrastructure commissioner, we could see some areas appointing a bus commissioner or an active travel commissioner under these provisions; such appointments would still be subject to other scrutiny provisions on commissions contained in Schedule 3 to the Bill.
Overall, this change would create the right kind of flexibility in the mayoral model, while keeping mayors responsible for keeping a lid on costs through transparency and scrutiny. I anticipate that the Minister will argue that we have to have restraints on costs, and I do not disagree with that.
My second area of interest in this group is the restrictions on mayoral political advisers; Amendment 196A deals with that issue and argues for mayoral special advisers. Currently, the central government model of transparency and flexibility on special adviser appointments has, I think we could fairly argue, been a success in balancing value for money for the taxpayer with the ability of Ministers to bring in the right level of expertise.
I recently read a really interesting book called Every Journey Matters, which looks at the history of the first 25 years of Transport for London. The thing that emerges very strongly from that account of TfL’s first 25 years is the quality of advice that TfL was able to tap about commissioners, support staff and, effectively, special advisers—though I do not think they were called that back in the day. All the mayors have drawn on that and, I think, benefitted from it. One could fairly argue that TfL is one of the most successful metropolitan transportation networks and systems in the world, and the quality of advice has made that difference.
Therefore, the model from the Constitutional Reform and Governance Act 2010 should be applied to mayors, given their increasingly broad role and responsibility. There are three issues relating to the current system of appointments of political advisers by mayors. First, mayors are able to appoint political advisers only if it is covered in the relevant secondary legislation; in other words, they are governed by secondary legislation. Most mayors are allowed only one political adviser under relevant statutory instruments, which also cap the pay at the level of local government political assistance, which is something like £45,000. This opens the potential for differences which are unfair and need to be standardised. Secondly, there are no requirements for transparency on mayoral political adviser appointments or pay, unlike for government special advisers under the 2010 Act. Thirdly, there is no code of conduct for mayoral advisers, unlike for government special advisers, though the code of conduct is not required under primary legislation.
The amendment applies the central government model of special advisers to mayors; it would deal with these issues by allowing mayors to appoint mayoral special advisers, subject to an annual transparency requirement, and by their being paid in line with the relevant commissioner allowances, which the Bill already specifies should be determined by remuneration committees. It also moves away from the political adviser designation, so that mayors may be able to appoint special advisers to fulfil a variety of roles, just as Ministers are able to. Mayors can then bring in the people they need as they wish, subject to local oversight on pay and public scrutiny of the total cost, as we do with national government.
I did confirm that the commissioners will be subject to the Nolan principles. I will go back over Hansard—I always do after these debates—and if I have missed anything, I will certainly write to the noble Lord.
My Lords, this has been an absolutely fascinating debate. It has made me think a lot about the history of local government and how it has changed over 150 or 160 years. There was a time when we had aldermen, but they were abolished. We have had two-tier government, county boroughs and so on, but things have changed there too. The introduction of commissioners is a very progressive move, so I cannot agree with the noble Lords, Lord Shipley and Lord Jamieson, on that point. I can see that the accountability framework for commissioners is very important; they will have a powerful job.
If we think about it, some of those combined mayoral authorities will cover large geographical areas. My own likely combined mayoral authority involves East and West Sussex, which is about 100 miles from one end to the other and about 50 miles wide—and East Anglia covers a similarly large geographical area. It is right that we have these commissioners appointed and can hold them to account, because they will have a very important job to do. That is one reason why I thought that introducing some flexibility in terms of the patch or territory they cover, or the policies, was so important. However, I have heard what the Minister has said about that, and I hope we can reflect on some of those issues before Report.
On the points I made about political advisers and special advisers, I simply say this: again, it relates to the size of the task in front of mayors and commissioners. The salary is some £45,000 a year, which is generous but not pitched at a level one would necessarily expect to attract the very best. We need to have good quality political advisers involved in these strategic mayoral authorities. In my time as a local government leader, I did not see fit to have a political adviser—I got more than enough political advice from the Labour group, daily, and sometimes beyond that. But political advisers and special advisers are of immense value. When I first became a Minister back in 1999, what the civil servants used to say to me that was of value was that they had access to a special adviser who understood the thinking of the Secretary of State and their Ministers. That is really important, and that is why I thought it worth having a discussion about introducing special advisers into these very large strategic mayoral authorities. However, I have heard what the Minister said about that, and I shall reflect on it some more. I beg leave to withdraw the amendment.
My Lords, I rather suspect that the noble Lord, Lord Bichard, and I are fishing in a similar pool here. My Amendment 196B is all about local accounting officers and is designed to help to improve the level of scrutiny and accountability for each mayoral strategic authority.
The system of departmental accounting officers and their requirement to appear before the Public Accounts Committee is often used to justify value for money—an issue that could prevent proper devolution—but this is because accounting officers are technically meant to be able to justify all spending even if, in reality, the decision to devolve to a different authority has been made. With the development of the new combined mayoral authority model, we need to learn from those models being used by the devolved Administrations where accounting officers’ responsibilities have been given to the relevant bodies.
This amendment would look to devolve AO responsibilities to new local accounting officers, who would be local and accountable to the relevant authority’s scrutiny bodies for any spending by an established mayoral strategic authority. This is loosely based on the relevant legislation for Welsh accounting officers. The relevant body here might include a local public accounts committee; the noble Lord, Lord Bichard, made the case for that.
This amendment is designed to be helpful. The Minister may say that it is unnecessary but, in my view, it would be a genuine move towards devolved accountability—in terms of models of funding and allowing places to innovate while retaining an appropriate level of scrutiny. With the development of devolved mayoral combined authorities, we need an extra layer of accountability that looks at the way in which public money is spent. For too long, local government has been burdened with more responsibility, less funding and fewer opportunities to innovate and develop; at the same time, to my way of looking at things, local authority accounting practices have not really moved on from where they were in the 1990s. This amendment is an attempt to be helpful, very much in the spirit in which the noble Lord, Lord Bichard, spoke to his amendment.
My Lords, I will make a brief comment on Amendment 196B, tabled by the noble Lord, Lord Bassam, which is worth discussing further, especially given how it fits with Amendment 191 from the Lord, Lord Bichard, which I strongly support.
The question I asked myself, perhaps trying to anticipate the Minister’s response, was: would it duplicate existing audit and scrutiny arrangements? I came to the conclusion that I do not believe that it would. Audit answers the questions of whether the accounts were properly kept and whether the acceptable processes and procedures were legally carried out. But this amendment addresses a different and much more important question: is public money being spent effectively across the whole system? Audit is retrospective, siloed and looks at individual organisations after the event. Local public accounts committees, as proposed in this amendment, would look across organisations in real time. They would look at how councils, mayors and public service partners are actually working together—they are not the same things.
The Bill deliberately—and correctly, in my view—will push power and spending into shared collaborative arrangements, but our scrutiny remains fragmented, organisation by organisation. This mismatch is the gap that Amendment 191 would fill. Without it, no one body would be clearly responsible for asking very basic questions such as: is it the case that joint working is working? Is it delivering value? Are overlapping budgets aligned with agreed priorities? Are partnerships working as intended? Audit does not do that—and scrutiny committees, as currently structured, will struggle to do that.
In contrast, this amendment would enable that. It is not more bureaucracy; it is better oversight. It is not another unnecessary new layer. The amendment is enabling, not prescriptive, and it allows Ministers to integrate these committees within existing audit and scrutiny frameworks. It provides coherence and not clutter, and in fact good system-level scrutiny actually reduces duplication by exposing it.
My main reason for supporting the noble Lord, Lord Bichard, is that devolution without strong, visible accountability risks undermining public confidence. If power and money are exercised at a mayoral strategic level, scrutiny must exist at that same level. Otherwise, we are asking people to trust structures they cannot see being properly examined.
In conclusion, Amendment 191 strengthens the Bill by aligning power, spending and accountability. It complements audit and scrutiny; it does not replace them. In fact, the financial cost of not having effective system-wide scrutiny could lead to duplicated programmes, misaligned budgets and failed collaboration, which will almost certainly cost a lot more than the modest investment required to make this work well. For these reasons, I hope that the Minister will give both ideas serious consideration.
(3 weeks, 3 days ago)
Lords ChamberThe Secretary of State wrote to four councils following the responses that came in on 15 January because it was not clear from their responses whether they were requesting a postponement. That is why there was a short-term deadline for them to reply on that specific issue. The Secretary of State is now considering all the views provided before he makes the final decision, and he will make that decision as quickly as possible. He is very aware of the timetable needed for elections.
Does the Minister agree that there seems to be some form of collective amnesia on the Benches opposite? I well recall, as an employee of the Greater London Council, that the 1985 local elections in Greater London, Greater Manchester, West Yorkshire, Merseyside, the West Midlands, et cetera were all cancelled for the political convenience of the Government at the time, without particular reference to democracy. They just believed that they were in the right in getting rid of those councils, and that was simply it.
My noble friend is quite right to say that there is a precedent for cancelling elections. I have been involved with local government for a very long time. At many times in the past, there has been tinkering at the edges of reorganising local government. If we do not reorganise local government, it will not be sustainable for the future. This is the biggest reorganisation of local government for over 50 years. We have asked the councils, if they wish to postpone their elections, to let us know about that. We are now considering their responses.
(3 weeks, 4 days ago)
Grand CommitteeMy Lords, I want to speak to the amendment from the noble Earl, Lord Clancarty. I became leader of Brighton council in 1987. One of the first things that we did was triple our spending on the Brighton Festival. At the time it seemed like a fairly minor thing, but it triggered a lot of inward investment through leverage. It demonstrated to me the importance and the value of public sector investment in the arts. Since then, the Brighton Festival has grown; it is now one of the largest arts festivals in the country. But you have to make that important statement to attract extra funding and inward investment.
I currently chair a seafront regeneration board for Brighton and Hove City Council. One of the things I am quite determined to do is to bring a new major art gallery to our city, because it is one of the missing elements. Those things have a long-term strategic benefit and that is why I think adding this as an area of competence to strategic authorities is very important.
After all, it is one of the Government’s missions. We often talk about the £128 billion value to the UK economy of the arts. If we can embed that statutorily, we can grow and develop our reputation. We are one of the arts growth leaders in the world economy. It would greatly help our growth mission and our economic and industrial mission if we were to place this as an important strategic responsibility.
Without that, as others have said, it is not there—it is voluntary and it is very much up to the localities to determine, as they rightly should, what their priorities are. But it is an encouragement, and that long-term commitment and encouragement will make a very significant difference to the development of arts and cultural services across the UK.
My Lords, I would like to add a small voice to the chorus of support for these amendments. I do so from the perspective of my role as the owner of a cultural institution in Devon and my work on the Exeter place partnership, which has been particularly successful in encouraging arts and heritage activities within the city over recent years, such as Radio 1’s Big Weekend, the Rugby World Cup and the Women’s Rugby World Cup. It has been a tremendous success for the city.
I do not want to repeat what has been so excellently stated by many noble Lords. It does not need repeating. But there is one area to consider that maybe has not been emphasised: the importance for the strategic authorities created under this Bill of having competency over the arts and creative industries within their region. If they do not have the competency over these areas within their region, obviously someone else is going to, and that will be a central authority. That is going to homogenise and fail to develop the cultural identity of the strategic authority region. If we can bestow that core competency on the strategic authority, we will see the identity of that strategic authority grow and improve. It will better sustain the health and vibrancy of the strategic authority itself—not just the region but the strategic authority—and we should think of that.
My Lords, I support the amendments in the names of the noble Baronesses, Lady Royall and Lady McIntosh, to all of which I have added my name.
First, I must declare my interest in that I still have a family farming interest in Somerset, although I am now retired and live in Cornwall. I must also declare an interest—it is more of a perspective, really—as having been the Prime Minister’s rural advocate under a previous Labour Government. I was charged with representing rural interests in the Blair Government and often reported directly to the Prime Minister himself, especially during the foot and mouth disease outbreak at that time, which caused major problems—both social and economic—for rural areas. At that time, I was also charged with producing an annual rural-proofing report for the Government. Believe me, it was badly needed—and still is, in my view. The Social Mobility Commission recently reported that inter- generational poverty in rural England is now as bad, if not worse, than in our most deprived urban slums.
I might add, just to prove my Cross-Bench credentials, that I was also asked to produce a one-off rural-proofing report for the Conservative Government some 10 years ago. I should say that I had more difficulty with the latter role than the former. No sooner had I produced my 2015 report outlining the important job that the rural affairs section of Defra had to play in the agenda than the department, under Liz Truss—she of sound judgmental fame—virtually closed down the rural affairs section, so the Department for Environment, Food and Rural Affairs ceased to be Defra and became just Def.
I am glad to say that those times are now over and the voice of the countryside is once again being heard. Defra still seems to be a slightly shy promoter of the rural voice in MHCLG, the Department for Transport, the Department of Health, the Department for Education and, above all, the Treasury. It needs to be saying again and again, “Hey, what about our agenda? What about those who live in the countryside?” In the same way, such a voice is needed, or is going to be needed, in the new strategic authorities. Mainstreaming rural issues into policy-making and decision-taking is fundamental to enabling all strata of rural society to engage fully with modern life; and to ensuring that rural businesses, which are the lifeblood of these communities, can thrive in even the remotest parts of England. Of course, having a rural voice at the top table—or, at the very least, a duty to consider rural needs in each and every region—is absolutely key to this agenda.
There are more VAT-able businesses per head of population in rural England than in urban England. There are more manufacturing businesses in the countryside than in the towns—per se, not just per head. The percentage of self-employed people in the countryside is also more than in the towns, especially—this is why I am particularly proud of my fellow country folk—among those who are below the poverty line. This proves to me that we country folk desperately want to stand on our own two feet, but we need help to do so; we need help to release that entrepreneurial spirit.
As was touched on by the noble Lord, Lord Best, housing problems in most rural areas are worse than in towns. There are few affordable houses left. The houses are more expensive and wages are lower. The houses tend to be less well insulated and heating costs are higher; mains gas, for instance, is rare in rural areas. Of course, the solutions are different there than in the towns, but I will not go into that here.
Training and skills problems are also different. How does a young person get to their class in their college 15 miles away when there is no bus? There might be one at 11 am or once a week on a Tuesday, for instance, but that is of no use to anyone. After college, how do you then get your first job? It is probably 10 miles away or more. It is a rural Catch-22 situation: you cannot get a job without a set of wheels, and you cannot get a set of wheels without income from a job.
Again, there are solutions to these problems, such as Wheels to Work, but the solutions need knowledge and need thinking about, along with a drive to push them through. For that, you need someone at the top table to tell it as it is—someone who is perpetually thinking about rural issues to ensure that the right policies are put in place. We need to try to create local jobs in as many communities as possible. That means improving connectivity, broadband and mobile services, as well as enabling planning policies; again, both of those are large subjects that I will not go into here.
The point is that ordinary life in rural England—shopping, doctors’ visits or even sports for the kids—is immensely hard when the only, but vital, family car has gone to work with the breadwinner. This lack of a car also means that kids at many schools miss out on all the extracurricular activities—football, sports, drama, music, et cetera—because they have to be on that school bus which takes them back to their rural village immediately after lessons are finished.
Also, rural households in poverty experience what academics call a rural premium, with living costs some 14% higher than for their urban counterparts, according to the academics. There is no cheap mains gas, which I have already mentioned, but only Calor gas or electricity; there is only older housing stock with poor insulation; food, clothing and transport costs are consistently higher; and there is limited access to childcare, healthcare and other basic services. All this compounds financial vulnerability. Thus, I say again that you need someone who understands all this, and who can speak up for rural interests when decisions are being taken at the top table.
Another factor which underlines the need for rural focus or a rural commission in these strategic authorities is the desperate shortage of government funding for rural areas. Although it is quite obvious to anyone who thinks about it that it costs more to deliver services to remote and sparse populations, central government funding for rural councils is on average 40% less per head of the population than for urban authorities—yes, 40% less per head. This differential is about to get worse under the so-called fair funding review. Therefore, a rural commissioner, or at the very least a duty to consider rural communities, is desperately needed to find ways of minimising the harm that such urban prejudice imposes on rural people.
This prejudice already results in rural council tax payers, for instance, having to pay on average 20% more per head than their urban cousins. For too long, I have been knocking my head against this concrete wall of prejudice against rural areas—too long to think that there is any chance of actually changing the financial situation. That is why I believe it will require a real rural understanding and focus to come up with the imaginative solutions which are so desperately needed to correct this long-standing imbalance.
It is crucial that mayors should have to appoint a commissioner for rural affairs whenever there is a rural element in their bailiwick. It has to be someone who can promote new jobs and make the necessary links. As I say, I know from experience that such a person can make a big difference to the quality of life for many people, whether it be in business, sport, transport, education, health or housing; or whether it be for the young, old or those in between. The countryside deserves a voice at the top table, and I believe these amendments will provide it.
My Lords, I support these amendments. I am absolutely fascinated by this debate. For most of my life I have lived in a city, and most of my friends think I am a city slicker. The truth is, however, that I was brought up in a rural community in a fairly remote part of north-east Essex in a rather lovely village called Great Bentley. In the time that has elapsed since I was brought up there over 50 years ago, the village has grown but it has also changed. Over that period, there has been a gradual removal—or a gradual eradication—of local services. There is a doctor and a primary school, but we used to have a very regular bus service, a whole range of small retailers, a chip shop, access to a bank and all the rest of it. Now, however, they have been in retreat and have disappeared.
A few years ago, I chaired a Co-op Party commission on restoring rural services and what we needed to do to reimagine what modern reality would look like, because you cannot just reflect on the past and say that was a glorious time; you have to look to the future in planning services. The noble Lord, Lord Best, made a really powerful argument about rural housing. I was lucky enough to be brought up in a council house in my village, and now very few people in that village have access to social housing. The percentage of the population that has is much reduced, probably 4% or 5%, and there are many people who are excluded from the jobs market because of that fact. We need to address that imbalance.
(2 months ago)
Lords ChamberWe must not conflate the two things. The devolution programme, which is working at pace, and the local government reorganisation process are running side by side, but they are not the same thing. That is why the decision has been taken to postpone mayoral elections in the four priority areas until 2028. The other two areas in the priority programme will have their mayoral elections in 2027, as they had already requested and as had already been decided. On other elections taking place, elections due in 2026 in county councils in those areas concerned will take place. Three of the areas are elected by thirds anyway, so they will have their elections as usual, and the district council elections that are due to take place in 2026 and 2027 will take place as scheduled.
My Lords, does the Minister agree that it is far better to get the structures of local government right and produce good-quality public services than it is to become overly obsessed with the cancellation of elections? Obviously, cancelling elections is never highly desirable, but all Governments have had to do this from time to time when faced with the prospect of reorganising local government and trying to improve what it delivers.
I agree with my noble friend, and I am slightly puzzled about the giggling from the other side of the Chamber, because this is an important lever in devolution for delivering growth and prosperity for our communities. We want to bring local transport back into public control to make people’s daily commutes easier, tailor local skills and training to employers’ needs so that people can get good jobs, and drive the regeneration of our local areas so that people feel proud of the places they live in. In order to do that important work, we need established local unitary authorities as the component parts of a strategic authority. That is why the decision has been taken to get those authorities set up properly. Funding will be available to them to start the work, and then the mayors will be elected in 2028.
(2 months ago)
Lords ChamberMy Lords, I declare an interest: I chair a seafront development and regeneration board on behalf of Brighton & Hove City Council.
I am delighted to speak in this debate for a number of reasons. First, I enjoy a discussion about local government almost as much as I enjoy watching Brighton & Hove Albion Football Club. Secondly, it is a genuine pleasure to speak on a Bill being fronted by my noble friend Lady Taylor of Stevenage, whom I think we all admire and respect—we enjoy her passion for all things local government. Thirdly, I am a big supporter in principle of both devolution and unitary councils. Indeed, I have been arguing for these probably for the better part of the last 40 years. Like others in your Lordships’ House, I have served on district and unitary councils and was privileged to be successful in arguing for Brighton and Hove to become a unitary back in the 1990s. My experience from back then informs my comments and words of advice to the Government today.
Brighton and Hove was carved out of East Sussex, with the Brighton element, previously an old county borough, and the Hove district. My task as leader was to merge two organisations with different cultures and approaches, and to blend in county services of highways, education, social services, transport, et cetera—no easy task. We got most of the reorganisation right largely because we were well led in our officer core, because we settled the big decisions early and because we established a cabinet-style authority with clear lines of accountability. We also developed a vision for the city and a radical programme of change and service modernisation, behind the mantra of “M&S quality and First Direct banking service enthusiasm”.
Getting it right meant setting effective working structures early in the process. This gave us two and a half years before the authority was set up—the first in a sort of pre-shadow year and the second as a shadow authority. So on 1 April 1997 we hit the ground running. The lesson I took from this was to give authorities time. Do not try to do everything at once. To make unitaries successful, roll them out; do not just impose them. If I were to be critical of the Government’s approach to the combined mayoral authorities and unitaries, it would be on this point.
For understandable reasons, the Government want to crack on with change—they should not. They should pause and think about it, and do as their predecessors did. They should do it gradually and sensitively. Why? So much of a Government’s programme relies on getting councils to deliver, whether it is social care, new housing, stronger environmental programmes, the growth mission, nursery schools, getting people into work, retraining or meeting the challenges of the digital age. We cannot expect councils to do that and more while they are being set up from scratch. Councils that are unfamiliar with each other, having different systems and offering different organisational structures, will need time. We need to make sure that they are well resourced to do it, and we should not expect savings. In my experience, local government reviews rarely ever achieve a net saving.
For me, the Government made a wise decision last week in delaying the creation of the combined mayoral authorities for Essex, Suffolk and Norfolk, Hampshire, and Sussex. The reason why the mayoral model has worked in the mets in Greater Manchester, Merseyside, West Midlands, West Yorkshire and so on is that they were built on a sound unitary council base. The councils need a strategic body for the bigger issues to be resolved. Sadly, that went in the 1980s and had to be reinvented in the last decade or so, and in London back in 1999. Additionally, the issues in Manchester, Merseyside and so on are very different from those in the south and East Anglia. Will the same structure work for Sussex and Hampshire as for South Yorkshire or Greater Manchester? A one-size-fits-all approach may not be best. The Government should use the time that has been provided to pause and think through some of the issues and some of the structures.
Finally, the Bill is strong on empowerment, which I approve of—I think we probably all do. The UK is far too centralised, with some of the biggest regional disparities and inequalities in Europe. We need to do more to help communities, so we should use and develop parish and town councils, let strong neighbourhoods emerge and ensure that they have the resource to run things close to people and places. On place-making, which I know a bit about, we should not create local government structures that people cannot identify with. We should not make the unitaries so big and disparate, with big divides between rural and urban. Place-making will be harder because it will get lost, which I think would be a great shame. The Bill provides us with an opportunity. If we want bottom-up governance with citizens in control, let us use neighbourhood funding as a way of empowering people in their communities.
To finish, I applaud the Government’s commitment, but they should not rush this, otherwise the objectives will get lost amid structures that are dysfunctional. They should not expect big savings, but should place an emphasis on creating renewed local government that is about responsive services based on quality and excellence. That is what the public want; they do not want more cuts and austerity. They want the improvement of the public realm and the higher quality of local service. If this reorganisation and the development of strategic combined mayoral authorities do one thing, they should focus on delivering that.
(4 years, 2 months ago)
Lords ChamberThe reality is that we need local leadership. We need the vision in local places. We need to understand why a place should be competitive and then, with that local leadership, backed up by taxpayer pump-priming, turn places around. We have too few local leaders who have clear vision at the moment. There are some examples: we are seeing the success of our mayors, and we have to back them to ensure that the whole country rises. But the rhetoric about lifting all boats is precisely right.
My Lords, the noble Lord has made a good case for the community renewal fund, but is it not the case that the allocations were delayed from July to October? Will that mean that the application and monitoring of those funds will take a longer period? If not, the funds will be wasted. Levelling up is far too important to be bungled by this Government.
There is always delay. I have been a Minister for 18 months now: I am not used Whitehall, but I have seen many things delayed and that is not always as a result of direct ministerial influence. Things just take time. We have been through a global pandemic and, yes, this will probably delay things, but the commitment is there—there is clarity—and this is not a case of double-dealing or dodginess—
(4 years, 3 months ago)
Lords ChamberMy Lords, it is a hard one to answer; in some areas where tourism is incredibly important it is a great boost to the economy, and in others it can result in the hollowing out of a particular area. I cannot give a simple response to that question.
My Lords, the Question of the noble Baroness, Lady Thornhill, touches on one aspect of the housing crisis facing many living in tourist areas, but particularly coastal communities. As we found during the 2018 Select Committee inquiry on seaside towns, many local residents face a combination of low pay, high rents or unaffordable mortgages, and being squeezed out of the housing market by holiday lets. What plans do the Government have to find a workable solution to the interplay of these connected problems that does not penalise families struggling to make ends meet and trying to find a decent job?
My Lords, there are a number of schemes. I have mentioned the £11.5 billion affordable homes programme; there is also the first homes scheme, which has a minimum discount of 30% but which, with local councils, can be increased to 40% or 50%, so that new homes are offered first to people who live locally. Those kinds of initiatives will help local people get on the housing ladder, which is what the vast majority of people want.