Troubled Families Programme

Lord Bourne of Aberystwyth Excerpts

Monday 12th September 2016 Lords Chamber

[The Parliamentary Under-Secretary of State, Department for Communities and Local Government and Wales Office (Lord Bourne of Aberystwyth) (Con)]

My Lords, while we do not comment on leaked reports, I can inform the noble Baroness that the first troubled families programme, which finished in 2015, was successful; for example, in seeing nearly 105,000 families with children back in school for three consecutive terms.

[Baroness Massey of Darwen (Lab)]

I thank the Minister for that reply but is he aware that this programme has been criticised by many as a failure—not successful for either children or parents—at a cost of £1.3 billion? What analysis has taken place of the methods used in the programme to develop more successful methods—ones which work—in any future programmes?

[Lord Bourne of Aberystwyth]

My Lords, I do not accept that the first programme was unsuccessful in any way. The figure the noble Baroness gave about the cost also encompasses the second phase of the programme, which has taken on board some of the lessons that we have learned. I am sure she will be very pleased that the troubled families programme has been embraced by 150 local authorities—all local authorities—and all political parties have supported it.

[Baroness Eaton (Con)]

Can my noble friend the Minister explain to the House some of the lessons that were learned and some of the improvements that are being made in the second programme?

[Lord Bourne of Aberystwyth]

My Lords, one aspect that has been important in the second phase of the programme is that spot checks are made by people who go into local authorities to make sure that it is happening. The other very important factor that has been taken on board is that we started assessing and monitoring the programme from day one, rather than waiting until the end of the programme. Those are two of the lessons learned; we have also widened the criteria, which is very important.

[Lord Shipley (LD)]

My Lords, the Minister said that he could not comment on a leaked report, but I wonder whether the Government plan to publish that report. Will he confirm when that will be and whether it will be published in full?

[Lord Bourne of Aberystwyth]

My Lords, successive Governments have not commented on leaked reports, so that is indeed the position. We are working on the report, which we will publish as soon as possible. As I have said, there have been many successes. All local authorities have embraced this. We have families with children back in school. We have tackled joblessness. We have spent money on ensuring that all these issues are dealt with effectively. That is why—with broad support, I think—we have taken it forward to a second phase, with wider criteria.

[Baroness Howarth of Breckland (CB)]

My Lords, I know that local authorities have welcomed the troubled families programme because it brings extra resources into their very difficult children’s services budgets. I am sure the Minister must know what is in this leaked report. Does he not think that it might be of benefit to incorporate this work into core social work and ensure that local authorities are able to do a proper job right across children’s services?

[Lord Bourne of Aberystwyth]

My Lords, I do not accept for a minute that local authorities are not doing a proper job. In the year to March 2016, £130 million has been spent on tackling deep-seated problems of substance abuse, health and truancy. All these things are being tackled very successfully. Have we learned lessons from the first programme? Yes, of course we have. Will we learn lessons during this programme? I hope so. Meanwhile, this is a programme with broad support, which is doing a lot of good up and down the country.

[Lord Polak (Con)]

My Lords, success is always difficult to measure but improving the lives of 117,000 families, getting children back to school and reducing youth crime must be a success. Can my noble friend the Minister match the promises that we made in our manifesto to develop and increase a comprehensive range of family policies?

[Lord Bourne of Aberystwyth]

My Lords, that is certainly the intention of broadening the criteria in the second programme, which is looking at anti-social behaviour, substance abuse and a wide range of health issues. So yes, the intention is to have a much broader, holistic approach in this second phase. The evidence of the first year, which has been monitored by an independent programme supported by Ipsos MORI, is that we are having success doing just that.

[Baroness Farrington of Ribbleton (Lab)]

My Lords, can the Minister explain his comment that the Government will be working on the report? Surely a report is either published or not published and it is then for others to look at its conclusions. What did the Minister mean?

[Lord Bourne of Aberystwyth]

My Lords, I meant that the Government are working on the publication of the report. It is not yet ready for publication. We have to ensure that all the statistics and data are properly assessed before publishing it, which, as I say, will happen as soon as possible.

[Lord Lexden (Con)]

How did the leak of this report occur?

[Lord Bourne of Aberystwyth]

I am not at all sure. I am afraid I cannot advise the House as to how the leak occurred.

[The Lord Bishop of St Albans]

My Lords, one of the successes of this programme, which I have seen in a number of places, has been to try to get proper co-ordination. With so many different silos addressing this and so many resources going to a limited number of families, one success has been the way that progress has been made by bringing real focus and integration. Can the Minister assure us that that lesson has been learned and that we will continue to see how we can get movement on this relatively small but very problematic and difficult group, and find the way forward?

[Lord Bourne of Aberystwyth]

My Lords, the right reverend Prelate is right about the dangers of silo working. We have sought to obliviate that programme by broadening the criteria. In relation to the number of families being assisted, it is the aim of the second programme that by the end of this Parliament 400,000 additional families—on top of those in the first programme—will have been helped. In the first year, we have so far helped 145,000 families.

[Lord Hunt of Kings Heath (Lab)]

My Lords, can the Minister assure me that his department is concerned with the accuracy of the report, rather than seeking to change either its recommendations or its conclusions?

[Lord Bourne of Aberystwyth]

My Lords, as always, government departments are minded to ensure that the report is accurate. That is true of the civil servants who are working on this. Of course that is the aim; we want the proper information in the public domain. In the meantime, we have learned some of the lessons from the first programme. I believe that the first programme was a success and the second will be even more successful.

Homelessness

Lord Bourne of Aberystwyth Excerpts

Wednesday 7th September 2016 Lords Chamber

[The Parliamentary Under-Secretary of State, Department for Communities and Local Government and Wales Office (Lord Bourne of Aberystwyth) (Con)]

My Lords, I am very pleased to answer this Question for Short Debate; it has been a debate of considerable import and great passion. I thank the noble Lord, Lord Kennedy, for securing a discussion on such an important issue and I thank the noble Lords, Lord Bird and Lord Cashman, the noble Baronesses, Lady Morgan, Lady Thornhill and Lady Armstrong, and my noble friends Lord Porter and Lady Stroud for their contributions.

Before I address specific issues that have been raised—any I do not cover in the time available I will write on—I will make a number of points. People who find themselves homeless are some of the most vulnerable in our society, which is a point that has already been made, and this Government remain committed to ensuring that they always have a roof over their heads. Homelessness affects all parts of our community: youths, women, members of the LGBT community, families, single people—they all deserve attention in this regard, not just some of them.

Since 2010, we have invested more than £500 million in enabling local authorities—who are key partners, as the noble Baroness, Lady Thornhill, rightly acknowledged —to help prevent or relieve more than a million cases of homelessness. Homelessness acceptances are now less than half of the 2003-04 peak, but just one person without a home is one too many. A diverse range of needs displayed by different groups of people means that, despite the efforts of successive Governments—and, as my noble friend Lord Porter said, it has been successive Governments—homelessness remains a significant problem in this country. There are multifarious reasons behind this, as have been set out by many noble Lords during this debate, but ably set out by the noble Lord, Lord Kennedy, in opening.

That is why the fight against homelessness must continue. My noble friend Lady Stroud was right to stress the importance of prevention and prevention funding; the Government have protected homelessness prevention funding that goes to local authorities—a total of £315 million by 2020—and have increased funding for homelessness programmes to £139 million over the course of the Parliament. The noble Baroness, Lady Morgan, rightly said that funding is vital, which I readily acknowledge; I also thank her for her kind comments about the Prime Minister’s commitment to this issue and to the vulnerable.

In the most recent Budget we set aside £115 million to tackle rough sleeping and homelessness. This includes £100 million for 2,000 accommodation places for rough sleepers and domestic abuse victims. An extra £10 million has been used to support innovative projects. That includes the social impact bond in London, which is one measure where we are working with the Mayor of London. The funding was doubled to £10 million, as my noble friend Lady Stroud set out, which helps London. We are also conscious that many of the London boroughs—Westminster, Hackney, Tower Hamlets and others—are doing great things.

I will quickly set out the Government’s approach in three different areas: preventing homelessness; helping people move on from homelessness; and the action we are taking across Whitehall. Prevention is often the key, as my noble friend Lady Stroud said. Homelessness is not just a housing issue. There are underlying issues, many of which have been touched on, such as drink and drugs, raised by my noble friend Lady Stroud, the noble Baroness, Lady Armstrong, and the noble Lord, Lord Kennedy; a lack of education, set out by the noble Lord, Lord Bird; and sexuality, mentioned by the noble Lord, Lord Cashman. Many factors come into this; it is not a simple issue. Tackling homelessness therefore requires a collective response at national and local levels and an unrelenting focus on prevention. Effective prevention requires a strong legislative framework, quality housing advice services, effective partnership working and funding.

The Government have taken action to meet those requirements. We have funded the National Homelessness Advice Service, delivered by Shelter and Citizens Advice —I acknowledge the important role of third sector organisations, as mentioned by the noble Lord, Lord Cashman, in the context of Crisis—which ensures that frontline housing advisers have access to the best-quality professional advice to help vulnerable people.

We have provided £2 million for the Gold Standard scheme, delivered by the National Practitioner Support Service, to help local authorities deliver more effective and cost-efficient homelessness prevention. We know how important it is that, when people are faced with a homelessness situation, they have somewhere to go and experts to talk to—so front-line staff need to be equipped to provide this service. Getting the right training is part of that. The National Practitioner Support Service—which is I think currently provided through the London Borough of Hounslow—has enabled areas such as Greenwich and Wigan to improve their services and achieve Gold Standard status to help other local authorities.

Our efforts to prevent homelessness are supported by legislation, which provides a strong safety net for families with children and vulnerable people who become homeless through no fault of their own. I pick up on two specific issues that were mentioned. The first is the Wales position; as somebody who has spent a lot of my life learning lessons from Wales, I am open to learning more. In this role I am very keen to learn from the devolved Administrations and I have already spoken to my counterpart in Wales to ensure that we share lessons, data, best practice and so on. We are looking at what Wales is doing; it is early days yet but there are certainly some encouraging signs there.

This brings me on to the Homelessness Reduction Bill, sponsored by the Conservative MP for Harrow East, Bob Blackman, which has been mentioned by many noble Lords, including the noble Lord, Lord Kennedy, my noble friend Lady Stroud and the noble Baroness, Lady Thornhill, by implication. We are certainly looking closely at that—we support its aims but obviously the detail needs to be looked at, but I reassure the House that we are very keen on its aims and we are looking closely at it, as we should.

While we prioritise preventing homelessness, we are also helping people to move on from a life on the streets. We are supporting innovative new approaches to address the most difficult cases, such as expanding on the success of the world’s first homelessness social impact bond, which we funded in London. So far, more than half of those who have taken part in that have achieved positive outcomes. I am aware of one rough sleeper who had been sleeping rough for five years. He was a victim of childhood sexual abuse and violence and became self-abusing with drugs and alcohol. Previous support had focused on his substance misuse issues, but the social impact team convinced him to undertake a psychological assessment. He is now housed in a one-bedroom flat and, through engaging with a GP, he can access healthcare and medication to help deal with his anxiety and mood problems—a very positive situation. We have also invested more than £1 million in StreetLink, a national telephone line, website and app that enables the public to alert services when they suspect that someone is sleeping rough.

I move on to supporting people to move on from homelessness. To help single homeless people to move from homelessness to independent living—the noble Lord, Lord Kennedy, raised this issue, I think, in the context of mental health—we are working with the Department of Health and with local authorities and health authorities. This is clearly an important issue.

We are also providing accommodation, education, training and jobs for around 1,600 of our most vulnerable young homeless people through the £15 million DCLG Fair Chance Fund scheme. I am aware of a case where a young person became homeless due to a relationship breakdown with his mother. He was referred to the fund, where he was supported into accommodation and secured his own tenancy. He became settled and gained confidence, attended college, achieved a qualification in plumbing, found a job and has been reconciled with his mother, so there are success stories out there.

We have helped homeless people into jobs by improving their basic English, maths and IT skills. We have also helped more than 10,000 vulnerable people access privately rented accommodation through the £14 million access to the private rented sector programme run by Crisis. Again, I pay tribute to the work it does, as was also mentioned by the noble Lord, Lord Cashman. I am aware of the difference this scheme made for someone whose marriage had broken down and who lost his home. He was helped through this by Crisis. He was at first sceptical of the help that he was offered but it has turned out well and he is now in work and is properly housed.

Mental health is an issue, as I mentioned, and this has been touched on by many noble Lords. I am very keen that we address it, as we are doing with local health authorities, through the Department of Health and, of course, with local authorities.

I very much applaud the work of social enterprises that support those experiencing homelessness. I do not think anybody could have done more in this context than the noble Lord, Lord Bird. On behalf of all of us, I place on record our admiration for the success that he has had. Through this debate I urge everybody, wherever they have an opportunity, to speak to the people who are selling the Big Issue, buy a copy and perhaps give a little extra to them because that is something concrete that everybody can and should do.

On the cross-government response across Whitehall, the Ministerial Working Group on Homelessness, chaired by my honourable friend the Minister for Local Government, Marcus Jones, is ensuring that every area of government plays its part too. This year it will focus on addressing the underlying issues of homelessness, supporting better responses from mental health services and improving accommodation for ex-offenders. Very importantly, we are also focusing on housebuilding and trying to ensure that we have affordable housing in the social sector.

I shall deal with a couple of specific issues that have been raised. The noble Baroness, Lady Armstrong, referred to the importance of doing something for women. We recognise that the needs of female rough sleepers can be different from those of male rough sleepers. She was right to mention the sexual exploitation of female rough sleepers. I pay tribute to Westminster City Council, which has provided a female-only shelter, the Marylebone Project. That is certainly worth looking at, as is the Women at the Well project based in King’s Cross. However, we are looking at this area and are certainly open to looking further at it. If the noble Baroness wishes to speak to us further on this issue, we can perhaps take it further.

The noble Baronesses, Lady Thornhill and Lady Morgan, both raised the issue of the local housing allowance caps and the 1% social rent reduction. The Government have been clear that the most vulnerable will be protected and supported through welfare reforms. I think the Prime Minister touched on this in a specific area in relation to refuges in Prime Minister’s Questions today, and I would like to underline that. The Government expect to make an announcement on the way forward for supporting housing in the autumn.

The noble Lord, Lord Cashman, rightly expressed concern about this issue affecting the LGBT community in many ways, and referred to the work done by the Albert Kennedy Trust. We are very keen to look further at the work of the Albert Kennedy Trust. We welcome the work it has done and, indeed, the work that Stonewall Housing has done. This issue affects all parts of the community and we must ensure that all parts of the community are taken on board in relation to it.

In closing, I thank noble Lords immensely for their contributions. The Government are aware of the importance of this issue. I am sure there are points that I have not covered and I will ensure that they are picked up in correspondence and copied to everybody who has contributed to the debate. I will also place a copy in the Library. I am sure that we will come back to this issue. As noble Lords appreciate, it is a very complex issue with many different strands. However, we take it seriously and I am very grateful for noble Lords’ contributions to the debate.

Neighbourhood Planning (Referendums) (Amendment) Regulations 2016

Lord Bourne of Aberystwyth Excerpts

Tuesday 6th September 2016 Lords Chamber

Moved by

[Lord Bourne of Aberystwyth]

That the draft Regulations laid before the House on 29 June be approved.

[The Parliamentary Under-Secretary of State, Department for Communities and Local Government and Wales Office (Lord Bourne of Aberystwyth) (Con)]

My Lords, the regulations set a latest-by referendum date in the final stages of the neighbourhood planning process. I beg to move that they be approved and come into force on 1 October.

Neighbourhood planning gives communities direct power to develop a shared vision for their neighbourhood and to shape the development and growth of their local area. For the first time, community groups can produce plans that have real statutory weight in the planning system. So far more than 1,900 communities across England, representing nearly 10 million people, have started the process of neighbourhood planning. More than 200 plans have passed a public referendum and are now in force. These plans are now the starting point for planning decisions.

We are fully committed to strengthening neighbourhood planning. The introduction of the neighbourhood planning Bill shortly will further empower local communities to get the homes and infrastructure that local communities need delivered as quickly and effectively as possible. But we need to ensure that the neighbourhood planning process is as simple and expeditious as possible so that communities see the benefits of their plan without unnecessary delays. Neighbourhood planning can take, on average, two to three years. Slow decision-making by local planning authorities can be particularly frustrating for communities and can discourage them from taking up neighbourhood planning. That is why we introduced a number of measures in the Housing and Planning Act 2016 that could speed up neighbourhood planning by an average of 17 weeks.

Complementing the new powers in the Housing and Planning Act is a power in Schedule 4B to the Town and Country Planning Act 1990 for the Secretary of State to make regulations prescribing a date by which the referendum must be held or before which it cannot be held. Holding a referendum is a key step required to bring a neighbourhood plan or order into force once it has been through public consultation stages and an independent examination. Where the neighbourhood area has been designated as a business area, there is an additional referendum for the businesses in the area. On average, referendums have been held within eight weeks of a local planning authority’s decision to submit a neighbourhood plan or order. However, while some authorities have called a referendum within six weeks, others have set a referendum date more than 17 weeks after their decision to do so, and some have been far later even than that. This is why we consider that it would be beneficial for new regulations to set out a clear expectation regarding the time period for holding a referendum.

In February, we consulted on proposals for these regulations as part of a wider package of measures. A summary of the responses to the consultation has been prepared and is available on the department’s website, along with the Government’s response. The proposal received considerable support, and a small number of technical amendments were made as a result of the consultation to ensure that the regulations could be implemented effectively. The details of the regulations have been agreed with the Electoral Commission and the Association of Electoral Administrators.

The regulations, if approved, will be an important safeguard to ensure that a minority of local authorities do not cause delays to the neighbourhood planning process. The regulations would require local planning authorities to hold a referendum on a neighbourhood plan within 56 working days of their decision that a referendum should be held, or 84 working days in certain more complex cases. The cases where the 84-working-day limit would apply are where there is also a business referendum; where the neighbourhood planning area falls within more than one local planning authority area; or where the local planning authority is not the principal authority responsible for arranging the referendum, as with mayoral development corporations or national park authorities.

There are three exceptions to the 56 or 84-working-day time limit. First, they are where a neighbourhood planning referendum can take place on the same day as, or be taken together with, another poll due to be held within three months of the end of the 56 or 84-working-day period described above; where there are unresolved legal challenges to the decision to hold a referendum; or where a local planning authority and the neighbourhood group agree that the referendum need not be held by that date. Those exceptions provide necessary flexibility to allow for local circumstances to be taken into account.

Neighbourhood planning has been hugely successful in making planning more accessible to local people. It empowers significant numbers of communities to take an active role in determining the future of their areas, and it is a principle that we can all agree on. This Government are committed to speeding up and simplifying the process so that even more communities benefit. It is important that we set time limits for key local planning authority decisions in the neighbourhood planning process to speed up and simplify the system in a sensible and pragmatic way, and I believe that that is what the regulations will do. I therefore commend the draft regulations to the House.

[Lord Beecham (Lab)]

My Lords, the proposals that the Government embody in these regulations are of course accepted. I declare my relevant local authority interests, which are referred to in the register.

There are a number of questions I would like to put to the Minister. He told us that 190 communities have started the process, that being the figure contained in the background documents which are available in the Printed Paper Office, and that 200 communities have proceeded to implement—or at least to agree—a plan under this procedure. However, that is 200 out of 1,900 in three years. Can the Minister say how many of those communities abandoned their projects or had them rejected in that time? What is the average time for concluding the process? The Minister referred to a reduction of some 17 weeks which will flow from this provision: 17 weeks compared to what as the average time so far? Moreover, the documents reveal that 89% of those who voted—presumably of these 200—voted in favour of the plan as drawn. The question is: 89% of what? What was the actual turnout relative to the potential turnout in these votes? There might well have been 89% voting in favour, but that could have been 89 people out of 100 who took the trouble to vote in a community of some thousands. It is simply not clear. I would be grateful if the noble Lord enlightened us. I do not suppose that he has the information immediately to hand, so I would be grateful if he wrote to me and placed the answers in the Library subsequently.

One of the problems for local authorities is that the planning service is under huge strain. Often, local authorities are reducing the number of planning officers because of the financial constraints on them. The Government, in paragraph 39 of their response to the consultation, indicated that they would enter into,

“updated arrangements for funding local planning authorities”.

Perhaps the noble Lord can enlighten us as to what progress has been made in that respect. As I understand from the documents, the Government do not accept that this process was a new burden, although any local authority would surely have thought it was, in the sense that it is a new responsibility which has been created, however welcome it may be. What funding is to be made available and what estimate has the department made of its impact on the number of officers who would be enabled to carry out this work, which would be in addition to the current work of planning departments, which are already considerably overstrained?

If we are looking at timescales, what are the Government doing about the hundreds of thousands of planning permissions granted for development upon which no action has been taken? We have here a measure which prescribes a very limited timescale, understandably in many ways, because in the most part we are not talking about large projects. However, what is sauce for the local government goose does not appear to be on the menu for the developer gander because long-standing planning permissions are simply lying on the table. At a time when everybody acknowledges the need for hundreds of thousands of new houses to be built, it seems extraordinary that the Government are prepared to impose a pretty rigid—I concede it is not entirely rigid—timescale for the processing of these plans, but no timescale at all on the implementation of planning permissions granted, in many cases, some years ago. Will the Government look again at the question of imposing a timescale for planning permission for significant developments to be implemented, rather than simply leaving it to the developer—who is presumably hanging on to the land in the hope that ultimately prices will rise and greater profits will accrue—when there are many, many people looking for new homes to buy or rent? The principle here, which is a fair one, is to make progress on community plans, but can we also see some progress on the carrying out of development in accordance with permissions already granted?

--- Later in debate ---

[Lord Kennedy of Southwark (Lab)]

My Lords, first, I welcome the noble Lord, Lord Bourne, and congratulate him on his new appointment and responsibilities. I know that he has been in the job for some time but this is the first time I can formally congratulate him and wish him well in his new position. We will not agree on everything but I assure noble Lords that I will engage constructively with him on all matters in his brief that come before your Lordships’ House. Where we believe that the Government have got it right I will happily say so, and when we offer alternatives from this Dispatch Box it will be because we believe that there are better solutions to the problems being considered. I also declare that I am an elected councillor in the London Borough of Lewisham and a vice-president of the Local Government Association, and in general refer the House to my declaration of interests.

I am a supporter of neighbourhood planning and allowing maximum community involvement in decisions that affect local communities. As I have told the House before, in the ward I represent on Lewisham Council, Crofton Park, we are developing a neighbourhood plan. We hope to be able to submit it to the council early next year and then proceed quickly to a referendum. It is right that a referendum is held as soon as possible and in most cases 56 days, as the order allows for, gives enough time to undertake and prepare for the vote but also means that it is still a fresh and live issue locally and is not allowed to drift. There are a few alterations to that when situations are a bit more complicated, as the noble Lord, Lord Bourne, outlined, and allowing a group and the council to agree sensible variations to enable the poll to coincide with a local event or an election that is taking place in three months in the same area is sensible and has my full support.

I agree with the points made by my noble friend Lord Beecham in his contribution to this debate, in particular on the funding proposals that will be made available. I hope that the Minister will respond to those.

That brings me to the assertion, which we heard many times from noble Lords opposite during the passage of the Housing and Planning Act, that somehow all these councils are dragging their feet and holding up all these planning applications and all this development. That assertion was made many times and I remember putting a few Questions down, which showed, as my noble friend highlighted, that literally hundreds of thousands of applications have been passed by local authorities but nothing has happened. I know of one in my own ward: an application went in to put some new shops and houses on a big site, but all that has happened is that a sign has gone up which says, “Full planning permission given”. Nothing else has happened —it just sits there. So local planning authorities are not the problem; there are thousands of sites that we need to deal with and get on with. I hope that the Minister will be able to bring some solutions to the House in the future.

I could go on but I am supportive of what is in the proposals here and I am happy for them to be approved.

[Lord Bourne of Aberystwyth]

My Lords, I thank noble Lords who have participated in this debate. I shall try to pick up the various points—there are some interesting ones—in the order in which they were made, so I will first address those made by the noble Lord, Lord Beecham. He raised questions about how many plans have been abandoned. Communities are beginning the process on a daily basis. Some 450 draft plans have been published and we are supporting communities through this process. I will give the noble Lord some indication of the financial assistance in a minute. He also asked about turnout of voters and kindly said that I probably did not have the precise figures for all areas at my fingertips, which was an accurate summary of the position. However, so far, the average turnout of voters across referendum areas has been 32%, which I think he will acknowledge is in line with local authority elections generally. Obviously there is some variation; I will get a letter to him giving a more detailed breakdown and I will put it in the Library as well, so that noble Lords have access to the information.

The noble Lord quite validly asked about the funding available, I think for neighbourhood planning in general and perhaps for the referendum process in particular. We are funding neighbourhood planning with a £22.5 million support programme from 2015 to 2018. On referendums, money is available for every planning authority—£5,000 for each of the first five neighbourhood areas they designate and £5,000 for each of the first five neighbourhood forums; that is, where there are businesses that they designate. In addition, they will receive £20,000 when they set a date for a referendum following a successful examination of a neighbourhood plan. So money is available for this process because there is a cost associated with it.

The noble Lord will correct me if I am wrong but I think he is supportive of neighbourhood planning. He is indicating that he is so, gladly, we can get that on the record. He made a more general—somewhat off-piste—point about the regulations for planning applications. I hope he will accept that that is perhaps the subject of a debate for another day. I recognise that it is an issue to look at and perhaps we can do so in a QSD or during debate on the forthcoming Bill. I acknowledge that there is an issue there but I do not think it should detract from this very specific matter, which I believe he supports. Certainly the noble Lord, Lord Kennedy, indicated support for it from the Front Bench.

I thank the noble Lord, Lord Foster of Bath, for the general support he offered. I know he has a good history on this issue in the Commons. We will be looking at the website in the light of his comments on the general position and the specifics, and we will obviously update it in the light of the new regulations—as I hope they will be at the end of this debate. However, I thank him for his general support for the concept of neighbourhood planning and for these regulations.

My noble friend Lady Oppenheim-Barnes made a point about a possible legal challenge on the costs. There are costs associated with referendums. I suppose it is rather like the cost of democracy in holding elections in general, where there will always be a cost. The planning officer cannot override neighbourhood plans or, under these regulations, hold them up unless there is a valid legal challenge, which will have to go through the courts. I readily acknowledge that hold-ups occur across local authorities under different political control—there is no partisan point here. I could name the authorities in question and am almost tempted to do so. However, the longest hold-up is 400 days, which is too long. Frankly, that is why we are bringing these regulations forward. We want to ensure that neighbourhood planning is given the boost that it needs.

Finally, I thank the noble Lord, Lord Kennedy, for his typical graciousness and generosity from the Front Bench. I also thank him very much for the constructive approach that he always brings to bear in looking at government proposals, and I look forward to our exchanges across the Dispatch Box. I am sure his contributions will be well thought-out and helpful, as they always are. I come back to the general point from the noble Lord, Lord Beecham, on planning, which he supported. Yes, let us have a look at that, although it is perhaps something to be dealt with on another day because it is a bit off-piste in relation to these regulations.

Motion agreed.

Planning: Brownfield Sites

Lord Bourne of Aberystwyth Excerpts

Thursday 21st July 2016 Lords Chamber

[Lord Greaves (LD)]

My Lords, I beg leave to ask the Question standing in my name on the Order Paper and remind the House of my interest as deputy leader of Pendle Council.

[The Parliamentary Under-Secretary of State, Department for Communities and Local Government and Wales Office (Lord Bourne of Aberystwyth) (Con)]

My Lords, we strongly encourage the development of brownfield land, which has an important role in delivering new housing. We have taken steps to maximise the number of dwellings built on suitable brownfield land, including through the introduction of brownfield registers.

[Lord Greaves]

My Lords, brownfield registers are welcome but they do nothing to bring forward brownfield land in areas where building houses on brownfield sites is not financially viable, such as where I live in east Lancashire. You cannot make a profit by selling them and you cannot get your return by renting them, because the local housing market is so depressed and prices are so low. Do the Government understand that to develop brownfield land in areas such as this, where the market is not viable, gap funding is required? What are they doing to help local authorities provide such gap funding?

[Lord Bourne of Aberystwyth]

My Lords, first, I endorse the good work done by Pendle Council in east Lancashire on brownfield sites. On the comment the noble Lord raised, which was essentially about grant funding rather than loan funding, Pendle has applied under the starter home fund with regard to brownfield land, and I also encourage a look at the Lancashire local enterprise fund with regard to competitive growth deals, which would benefit the area.

[Baroness Sharples (Con)]

Can my noble friend say what pressure will be brought to bear on councils when these brownfield sites are developed to provide a space for allotments?

[Lord Bourne of Aberystwyth]

A consultation is going on at the moment about the technical aspects of rolling out brownfield sites. There will be a requirement for appropriate brownfield sites to be put on a register during 2017, but appropriate notice will be taken where there is some other use for a brownfield site, such as an allotment.

[Lord Kinnock (Lab)]

My Lords, does the Minister agree that, especially in the wake of Brexit, there is a pressing need for the encouragement of higher investment in the economy, including public investment, and on brownfield sites? Given that, can the Minister give us an undertaking that the Government will raise the level of public investment from the current 1.5% of GDP to the 3.5% recommended strongly by the OECD?

[Lord Bourne of Aberystwyth]

My Lords, the noble Lord will be aware of the £20 billion already committed to housing over the length of this Parliament to deal with the serious issues he raises. It is well above my pay grade to go beyond that as regards what the Chancellor may do in the next Budget, but I am sure he will take account of the economic circumstances and that he will look closely at where we are when we get to that Budget.

[Baroness O’Cathain (Con)]

My Lords, I worked on the ad hoc committee on policies for national housing and I take the opportunity given to us by the Question of the noble Lord, Lord Greaves, to raise with my noble friend the Minister the committee’s report, which went to the Government on 11 February. Three times this week I have been told that the Government are about to make their response. I hope that when that response comes we will be able to have a debate on this issue, because it deals quite widely with brownfield sites. I just wonder what light the Minister can shed on it.

[Lord Bourne of Aberystwyth]

My Lords, other than agreeing with the noble Baroness about the importance of looking at this issue and moving it forward, I am not in a position to guarantee a particular date for a decision. We are looking at the consultation on some of the technical aspects of brownfield land but there is of course the obligation to roll out the national register. We have had 73 pilots, which we will be assessing. The national register will be rolled out next year, and that will be important in moving forward with housing.

[The Lord Bishop of St Albans]

This is not just about housing, important though that is—not least the fact that we are not building enough homes, especially affordable and starter homes; it is also about how we will solve some very difficult, long-term environmental problems relating to brownfield sites. Does the Minister agree that this really is an area where, for example, the housing association sector, with some quite focused work and grants, can make a huge difference both in solving environmental problems and in making a significant contribution to our housing shortage?

[Lord Bourne of Aberystwyth]

My Lords, a significant number of brownfield sites have already been assigned. Perhaps when we talk about brownfield sites there is an expectation that they will have seen heavy industrial usage. That may not be the case; it may simply be land that has been previously developed. That said, there are measures—not least land remediation relief from the Treasury—that will help where decontamination is an issue.

[Lord Shipley (LD)]

My Lords, last week the Economic Affairs Committee of your Lordships’ House produced a report entitled Building More Homes. One of its recommendations was:

“A senior Cabinet minister must be given overall responsibility for identifying and coordinating the release of public land for housing”.

Much of that public land is of course brownfield land. Does the Minister agree that that is a very wise recommendation?

[Lord Bourne of Aberystwyth]

My Lords, as the noble Lord will know, that report was received just over 10 days ago. The Government will take time to look at it and will then respond. It is clear that we need to address many of these issues. The noble Lord will know that a lot of public land is already being used for housing. I think I mentioned earlier this week that we have land in Dover, Chichester, Gosport and north of Cambridge, and there is more coming forward that will contribute to alleviating the housing situation. Much, although not all, of that land is on brownfield sites.

Nuclear Industries Security (Amendment) Regulations 2016

Lord Bourne of Aberystwyth Excerpts

Wednesday 20th July 2016 Lords Chamber

Moved by

[Lord Bourne of Aberystwyth]

That the draft Regulations laid before the House on 26 May be approved. Considered in Grand Committee on 12 July.

Motions agreed.

Housebuilding: Target

Lord Bourne of Aberystwyth Excerpts

Tuesday 19th July 2016 Lords Chamber

[Lord Shipley]

To ask Her Majesty’s Government what assessment they have made of their ability to achieve their target of one million new homes by 2020.

[The Parliamentary Under-Secretary of State, Department for Communities and Local Government and the Wales Office (Lord Bourne of Aberystwyth) (Con)]

My Lords, demand for new homes remains high, as does our commitment to deliver 1 million more homes by 2020, supported by the housebuilding sector and the reforms that we have made and are making to the planning system.

[Lord Shipley (LD)]

My Lords, I am glad the Minister has reminded the House that there was a commitment in the Queen’s Speech to build 1 million new homes by 2020. I remind him that in the first year of that, well under 200,000 homes were built and the new homebuilding market seems to have stalled. In view of that, is it not time for the Government to intervene and build more social homes for rent?

[Lord Bourne of Aberystwyth]

My Lords, the number of new homes built since the beginning of the Parliament is 171,000, which is higher than the previous year. The noble Lord is right that it was under 200,000, but it is more than the average for the previous 2005-10 Parliament. Obviously we are following the situation closely and monitoring progress. My right honourable friend the Secretary of State is meeting housebuilders today to discuss the position. I reassure the House that a record number of planning permissions—265,000 to March 2016—was given in the last year.

[Lord Rooker (Lab)]

My Lords, the Government and the wider public sector own land on which 2 million homes could be built, but only 12% to 13% of the land in England is actually built on. What is the problem?

[Lord Bourne of Aberystwyth]

My Lords, we are in the process of releasing public land for housing. We have released considerable tracts in Dover, Chichester, the north of Cambridge and Gosport, for example, and this work is continuing. The noble Lord is right to draw the attention of the House to the issue.

[Baroness Gardner of Parkes (Con)]

My Lords, in view of the comments about the need for more social housing, is the Minister aware that some boroughs, such as the London Borough of Camden, to which I spoke today, have simply said that anyone who has not already lived there for five years, no matter how deserving their cause, is not to be considered for social housing? I was speaking about a very extreme case of a woman well over 60. Is that common practice at the moment? Is there simply a failure to offer, and a sudden changing of the terms for social housing?

--- Later in debate ---

[Lord Bourne of Aberystwyth]

My Lords, clearly there is a role for local authorities here, with which we have dialogue. A considerable amount has been pledged to affordable houses for rent. We are also in dialogue with the Greater London Assembly and the mayor about how we move this forward.

[Lord Alton of Liverpool (CB)]

My Lords, how many of the 171,000 houses were actually social housing? Of the 1 million that are proposed, could the Minister provide a breakdown, even if he cannot supply it today, of the number of homes that will be social housing compared with those that will be for sale, what percentage of those for sale will be in the low-cost homes category, and whether co-operative and self-build housing forms part of the 1 million target figure?

[Lord Bourne of Aberystwyth]

My Lords, the 1 million figure is of course made up of a range of sources. Some 400,000 will be affordable houses while 200,000 will be starter homes, and it is right that there should be a mix of types of housing. That is something the Government are absolutely pledged to.

[Lord Beecham (Lab)]

My Lords, I refer to my interests as a member of Newcastle City Council, in which the imposed reduction of 1% in council rents will lead to a reduction of £28 million by 2020, which would otherwise be invested in new housing and the existing housing stock, and of £593 million over 30 years, while £2.6 billion will be lost nationally to such investment by 2020. What assessment have the Government made of the impact on the new building of social housing, council housing and the improvement of the existing stock as a result of that decision to force rents to be reduced?

[Lord Bourne of Aberystwyth]

My Lords, as I have indicated, we are watching very closely what the position is regarding new build. We are committed to a range of sources, including affordable houses for rent as well as houses to buy. We should take account of the fact that, I suspect, most if not all of us own our own houses, so there is a concentration on helping people to buy their homes. However, we are not blind to the need to encourage the affordable housing for rent sector as well.

[Lord Young of Cookham]

My Lords, has my noble friend had time to read the excellent report by the Select Committee on Economic Affairs, Building More Homes, which I hope we will have time to debate, and has he seen the comment on page 75? It says:

“The current restrictions on the ability of local authorities to borrow to build social housing are arbitrary and anomalous”.

Will he pursue this with the new Secretary of State to see whether more homes might be built through that route?

[Lord Bourne of Aberystwyth]

My Lords, I have had the opportunity to look at the Select Committee report, which obviously has just come out. The Government will of course respond to it. It is an excellent report with a range of recommendations, which we take seriously, as does my right honourable friend the Secretary of State, and of course we will pursue this with great vigour.

[Baroness Greengross (CB)]

My Lords, have the Government taken into account the fact that demographic change means that many older people live in unsuitable housing, and that if planning permission was guaranteed for more specialist housing with care for older people, it would release a huge amount of property for younger people—both rented and purchased and through local authorities and housing associations—and would deal with a lot of the problems we all face?

[Lord Bourne of Aberystwyth]

The noble Baroness makes a valid point, which we have considered. Obviously there are issues around encouraging people to move out of accommodation which is larger than they need but without in any way making them feel obliged to do so, so these issues need to be handled with care. I thank the noble Baroness for readdressing us to that point, but we are considering it.

[The Lord Bishop of St Albans]

My Lords, the 2015 spending review announced £60 million of grants to respond to the problem caused by second home ownership in areas with desirable coastal and rural housing. The aim was to provide affordable housing in perpetuity for local families who would otherwise be priced out of market. We were expecting an announcement on that but certain events intervened recently. Can the Minister assure us that this will go ahead and when it will come on stream?

[Lord Bourne of Aberystwyth]

I thank the right reverend Prelate for that point. He is absolutely right that this is an issue. Local authorities, as I know from Wales—this applies in England as well—have a power to use council tax as a device to ensure that people pay an additional amount on a second home. We are looking at this; I will write to the right reverend Prelate as regards progress on it and will make a copy available in the Library.

[Baroness Hamwee (LD)]

My Lords, do the Government have a new homes strategy? If not, why not, and if they do, what progress is being made with it? I declare an interest as vice-president of the Town and Country Planning Association.

[Lord Bourne of Aberystwyth]

I thank the noble Baroness for that question. Of course we have a new homes strategy: we are committed to building 1 million new homes in this Parliament, and measures are in place. A £20 billion budget for housing over this Parliament, which is a considerable amount, is partly to encourage housebuilding but is also helping people to buy and making money available for homes to rent.

Community Cohesion

Lord Bourne of Aberystwyth Excerpts

Monday 18th July 2016 Lords Chamber

[Baroness Hodgson of Abinger (Con)]

My Lords, in the absence of my noble friend Lady Mobarik, and with her permission, I beg leave to ask the Question standing in her name on the Order Paper.

[The Parliamentary Under-Secretary of State, Department for Communities and Local Government and the Wales Office (Lord Bourne of Aberystwyth) (Con)]

My Lords, I am sure the whole House will wish the noble Baroness, Lady Mobarik, all the best in her new role. Britain has a claim on being the most successful multifaith, multiracial democracy in the world. This Government support programmes that bring communities together in celebrating what unites us. We are stepping up efforts to tackle the scourge of hate crime, and fighting disadvantage and extending opportunity, which is the surest way to build strong and cohesive communities.

[Baroness Hodgson of Abinger]

My Lords, deep divisions within our communities emerged during the EU referendum. Since then, we have seen a worrying rise in racist and xenophobic behaviour and language. This exists alongside deprivation and a sense of exclusion for some. I commend Her Majesty’s Government for their efforts thus far on community cohesion, but what actions are being taken now towards a more integrated approach, whereby social and economic well-being and community cohesion are tackled collectively?

[Lord Bourne of Aberystwyth]

My Lords, I am sure my noble friend will welcome the fact that we are working on a hate crime action plan, which will increase the importance of the reporting of hate crime and provide stronger support for victims. We are making progress on this. It is true that post the referendum there was a spike in hate crime reporting, but thankfully that has levelled off. That is not to minimise the challenge. As I say, we are working on a hate crime action plan and taking action forward in that way.

[Lord Dubs (Lab)]

My Lords, the Minister may be aware that, yesterday afternoon, Hammersmith council organised a demo and meeting on the theme of hope not hate. Do the Government realise that local authorities have a key part to play in this? They might need a bit more help. Will the Government give that help and support to local authorities in tackling hate crime?

--- Later in debate ---

[Lord Bourne of Aberystwyth]

The noble Lord is absolutely right. HOPE not hate does a considerable amount in this regard and I follow what it does very closely. We are supporting local authorities and working with them through organisations. I recognise the importance of working with local authorities, and today I have asked that we contact the Greater London Assembly to see how we can work successfully with it across London, too.

[Baroness Hussein-Ece (LD)]

My Lords, will the Minister acknowledge and welcome the fact that many people have come together to oppose the rise in hate crime and to show their revulsion at what has been going on? Will he say whether the role of the media should now be looked at more closely? Over the weekend in the Sun, Kelvin MacKenzie wrote a column criticising a Muslim broadcaster reporting on the news, because she wore a headscarf. Apparently it was inappropriate for a woman wearing a headscarf to report on the terrible attacks in Nice. Surely this cannot be tolerated in our society. Will the Minister condemn it?

[Lord Bourne of Aberystwyth]

My Lords, the noble Baroness is absolutely right about people coming together to tackle hate crime. I was particularly impressed to hear of a movement called Salaam Shalom in Nottingham, which is supported by the Government, bringing together the Jewish and Muslim faiths. I agree entirely with the noble Baroness about the many excellent role models that we have of Muslim women. She referred to one; we all remember “The Great British Bake Off” and so on. It is time to celebrate the diversity of our society and recognise that when we are united, we are strongest.

[Lord Singh of Wimbledon (CB)]

My Lords, much hate crime arises out of ignorance and suspicion. We all know that in a fog even familiar objects, such as a lamppost or a dustbin, can assume frightening and threatening proportions. Does the Minister agree that a much greater effort needs to be made to remove that ignorance and bring about a much better understanding of what different religions are and what they stand for? Unfortunately, much interfaith dialogue over the years—and I have been involved in it—is just about being nice to people without exploring the actual teachings and finding commonalities on which we can build understanding. Does the Minister agree that the search for commonalities and building on them is essential?

[Lord Bourne of Aberystwyth]

My Lords, I entirely agree with the noble Lord. He is absolutely right that it is about much more than just coming together and talking to each other; it is about understanding each other better. Many interfaith groups do this very successfully, both in England and in the devolved Administrations. Again, I have asked the department to look at this to see how we can get best practice across the United Kingdom by learning what happens in the entirety of the United Kingdom. However, he is right that we have to conquer ignorance, in the sense of not knowing, in order to move forward on this key issue.

[Lord Soley (Lab)]

Does the Minister agree that senior politicians, and members of the Government in particular, have a responsibility not to use language that encourages this? During the referendum debate, some adverts and one or two statements—one from a current member of Government, I am afraid—gave people permission to bring out their feelings about ethnic minorities. Frankly, if such feelings are not encouraged, they tend to stay hidden.

[Lord Bourne of Aberystwyth]

My Lords, the noble Lord is right that across the board we all—politicians in all parties, as in the other House—have a role to play and a responsibility to use appropriate language and come together to ensure that we move forward in tackling hate crime together.

[Baroness Manzoor (LD)]

My Lords, on 29 June, the Minister, the noble Lord, Lord Ahmad, read a Statement to the House in which he said that new, additional funding would be made available to tackle these issues at community level. How much new funding has been made available, and which community groups have been given this money?

[Lord Bourne of Aberystwyth]

My Lords, the noble Baroness will know that the Casey review will soon report on boosting opportunity and integration. We will wait for the publication of that report before making any definitive decisions on the amount of funding. The noble Baroness will know that we already put a significant amount into organisations such as: Near Neighbours; Tell MAMA, which stands for Measuring Anti-Muslim Attacks; Holocaust Memorial Day, and so on. However, we will make a statement in response to the Casey review when it is published.

[Baroness Smith of Basildon (Lab)]

My Lords, the Minister refers to ethnic minorities, but he will appreciate that this is an issue not just for ethnic minorities but for anyone from the EU who currently lives and works here. A friend who works in Westfield shopping centre reports an increased number of attacks—not physical attacks but abuse, rudeness and unpleasantness—to staff from the EU. Does he accept that it would be helpful if the Government urgently made sure that EU citizens living here in the UK could be assured of their place in this country? At the moment, they are scared to report such attacks and abuse, because they are not certain about their own status.

[Lord Bourne of Aberystwyth]

My Lords, the noble Baroness is right that it is not simply an issue for ethnic minorities, although that is one very visible and significant aspect of this, but about EU nationals, and indeed about visitors to this country from the EU and elsewhere. We are looking at it in the round. The Casey review, which I referred to, is looking at integration more generally, and as I say we are looking forward to receiving its findings. However, in order to reassure noble Lords of the significance attached to this by my right honourable friend the Prime Minister, she has made clear that hate crime has absolutely no place in Britain and that she is determined to make further progress to ensure that we can eradicate these deplorable acts. I am sure that we all take comfort from that.

Barnsley, Doncaster, Rotherham and Sheffield Combined Authority (Election of Mayor) Order 2016

Lord Bourne of Aberystwyth Excerpts

Monday 18th July 2016 Lords Chamber

Moved by

[Lord Bourne of Aberystwyth]

That the draft Order laid before the House on 27 June be approved.

Relevant document: 5th Report from the Secondary Legislation Scrutiny Committee

[The Parliamentary Under-Secretary of State, Department for Communities and Local Government and the Wales Office (Lord Bourne of Aberystwyth) (Con)]

I shall also speak to the West Midlands Combined Authority (Election of Mayor) Order 2016. The draft orders, if approved, will create the position of mayor for both the Sheffield City Region and the West Midlands Combined Authority, with the first elections in these areas to be held in May 2017; and set the first mayoral term for a duration of three years, with the next election in May 2020, with subsequent four-year terms. The Government committed in their manifesto to,

“devolve far-reaching powers over economic development, transport and social care to large cities which choose to have directly-elected mayors”.

To give effect to this commitment, the Government passed the Cities and Local Government Devolution Act earlier this year. As I set out to the House during the passage of this enabling legislation, the Government have introduced clauses to allow directly elected mayors for combined authority areas because devolution of the ambition and scale set out in the Government’s manifesto requires strong, clear accountability and leadership. It is necessary that, when major powers and budgets are being devolved, local people know who is responsible for decisions. Mayoral governance offers a proven model for effective local leadership which has worked around the world.

On the Sheffield City Region, this order is a milestone in the implementation of the devolution deal agreed between the Government and local leaders on 2 October 2015. It follows the establishment of the combined authority on 1 April 2014, from which time it has been serving the Sheffield city region, bringing together across the area the closely interconnected issues of transport, economic development and regeneration. On 2 October 2015, the Government and combined authority announced a devolution agreement which provided an offer of powers and budgets from government on the basis that the area will deliver certain reforms and measures, including adopting a directly elected mayor covering the whole of the combined authority area. This agreement included that the mayor for the Sheffield City Region would be responsible for: a consolidated, devolved transport settlement; following the introduction of the necessary primary legislation, be responsible for the franchised bus services, which in turn will support the combined authority’s delivery of smart and integrated ticketing across the combined authority’s constituent councils; take on responsibility for an identified key route network of local authority roads; and have responsibility for strategic planning, including the responsibility to create a spatial framework for the city region.

In turn, the combined authority of Sheffield City Region takes on responsibility for: devolved funding—that is £30 million a year over 30 years; control of the devolved 19-plus adult skills funding by 2018-19; joint responsibility with the Government to co-design employment support for harder-to-help claimants; and a devolved approach to business support from 2017, to be developed in partnership with government. In addition, the Government agreed to pilot a scheme in the Sheffield City Region Combined Authority that will allow the area to retain 100% of any business rate growth beyond that forecast. It will also enable the combined authority to create an investment fund of £900 million through the 30-year gain share funding. In return, the area has agreed appropriate governance for these new powers and budgets, centred on a combined authority and a directly elected mayor providing the vital, sharp, single point of accountability that is essential if such wide-ranging powers and budgets are to be handed to the area.

The West Midlands order is a milestone in the implementation of the devolution deal agreed between the Government and local leaders on 17 November 2015. The first step in implementing this deal was made on 17 June 2016, when the combined authority was established, with powers over transport, economic development and regeneration. On 17 November 2015, the Government and the leaders of the West Midlands announced a devolution agreement which provided an offer of powers and budgets from the Government on the basis that the area would deliver certain reforms and measures, including adopting a directly elected mayor covering the whole combined authority area.

The agreement included that the mayor for the West Midlands would individually exercise some functions in relation to transport and strategic planning, and the combined authority would take on responsibility for: devolved funding of £36.5 million a year over 30 years for the West Midlands area; control of the devolved 19-plus adult skills funding by 2018-19; joint responsibility with the Government to co-design employment support for harder-to-help claimants; and a devolved approach to business support from 2017, to be developed in partnership with the Government. It will also enable the combined authority to create an investment fund of over £1 billion through the 30-year revenue stream and locally raised finance. In return, the area has agreed appropriate governance for these new powers and budgets, centred on a combined authority and a directly elected mayor providing that vital, sharp, single point of accountability to which I referred in relation to the Sheffield City Region.

In delivering the full range of commitments in the devolution deal, the Secretary of State intends, subject to statutory requirements and parliamentary approval, to make further orders to implement the deal. Subsequent orders will include the transfer of budgets and powers over planning, transport, education and skills.

These draft orders establish mayors for both the Sheffield City Region and the West Midlands, set out the dates of elections, and set the first and subsequent term lengths. The orders are laid before Parliament following the statutory process specified in the 2009 Act, as amended by the Cities and Local Government Devolution Act 2016. As required, all the constituent councils in the combined authorities have consented to these orders being made. As required, we are now seeking Parliament’s approval before making these orders.

These orders are about delivering devolution and empowering local authorities to set their own policy agendas. They provide enhanced local leadership in the form of directly elected mayors, with a strong democratic mandate and independence from the combined authority. The mayors will work closely with local leaders, who will sit on the combined authority boards. Together they will drive forward the economic opportunities presented by devolution, with the mayor acting as chairman or chairwoman of the combined authority and providing a single voice for the area that can both be prominent nationally and help drive the devolution agenda.

As noble Lords may recall, in the passage of the enabling legislation for this order, there was debate on the necessity of mayors in devolving powers to local areas. The Government have made their position clear on the necessity of mayors. However, the Government are not alone in this belief. Research commissioned by the Centre for Cities in May 2016 found that members of the public across five devolution deal areas surveyed supported the notion that directly elected mayors should have greater powers than local council leaders.

That said, it is important to note that no one area has been required to adopt the mayoral model. The Government’s position is that if an area is to have a mayor it will be because that area, through its democratically elected representatives, has chosen to have one. However, the Government view the devolution deal as a two-way process. As such, it is the Government’s clear intention that the accountability offered by a mayor is desirable and therefore this forms part of the devolution deals that have been agreed between the Government and local leaders.

The Government are making excellent progress in implementing their devolution agenda. An order establishing the position of mayor in Greater Manchester was made on 29 March 2016. As noble Lords will recall, last week the Grand Committee debated orders to establish the position of mayor for the Liverpool City Region and for Tees Valley. An order to establish the position of mayor for the north-east has also been laid. All these areas are scheduled to hold their first mayoral elections on 4 May 2017.

--- Later in debate ---

[Lord Bourne of Aberystwyth]

My Lords, I thank all noble Lords for their contributions to what has been a wide-ranging debate. I shall try to deal with the various issues raised, I hope for the most part in the order in which they were raised. I turn first to the noble Lord, Lord Beecham, and I thank him very much for his kind comments. I well remember seeing him down in Wales at the time of the Beecham report, as it became known, and I am happy to update him on the progress—or perhaps lack of it in some areas—on local government reform there.

Let me try to deal with the points he raised. First, there is obviously a different approach to the issue of local mayors. We are of the view that there is a need for strong local leadership to carry this forward—somebody who will be accountable as a leader. It is the sort of thing that the Labour Party used to believe in, but it may be that it now has some issues about that. This should not take anybody by surprise because it is something that we have signalled clearly. Perhaps I may say that the Henry Ford analogy is somewhat unfair because local authorities have the option not to go down this route. Gateshead, for example, has chosen not to do so. So there is an option not to pursue the mayoral route but to have the quite separate arrangements that Gateshead has opted for.

I should also say that this will be somewhat different from mayoral elections that have taken place previously, which were not for combined authorities. This is a combined authority where the elected mayor will be responsible for the combined authority responsibilities but not for the constituent parts of the combined authority. As I indicated when introducing the Motion, while I know that polls are notoriously dangerous, a ComRes poll did show support in all the areas where we have proceeded so far for mayors taking over responsibility over all other types of organisation.

The issue of Bassetlaw and Chesterfield was raised. As I understand it, while it is true that there is an issue in relation to Chesterfield and Derbyshire, I think, although I may be proved wrong, that the discussions between Bassetlaw and Nottinghamshire are fruitful and moving forward. I will write to noble Lords about the progress of Bassetlaw and Chesterfield because I am not entirely sure where we are on that. Noble Lords will appreciate that I picked up the brief only yesterday afternoon, so I would be the first to admit that there are gaps in my knowledge.

If the Secretary of State is not satisfied that the statutory test has been met that the change is likely to improve the exercise of statutory functions in an area, he will be able to turn it down. That should give noble Lords some comfort on that point.

Perhaps I may deal with the point raised by several noble Lords about the Public Accounts Committee report published just over a week ago and the recommendations made in it. On the November 2016 deadline that was suggested in relation to overview and scrutiny committee obligations, we intend very much to honour that deadline and indeed to be ahead of it. I should like to offer that assurance. We will obviously—indeed we are statutorily obliged to do this following the Cities and Local Government Devolution Act 2016—ensure that there is an independent and appropriate chair of both an overview and scrutiny committee and an audit committee. But I appreciate the point that where it may be a single party in relation to a devolution arrangement, we need to flesh that out and look at it in more detail. I undertake to have a closer look at that.

The appointment process will be open, transparent and based on open advertisement. I am also happy to be able to confirm that it will follow the Nolan principles. As I say, we will be bringing forward statutory guidance and fleshing out some of the rules as suggested.

Perhaps I may say in relation to a point made by several noble Lords—and certainly by the noble Lord, Lord Prescott—about Humberside and other areas that it is open to all authorities to come forward with proposals and the Government will take a close look at them. He is absolutely right to say that we are already looking at Greater Lincolnshire, which is Lincolnshire plus north-east Lincolnshire as a possible devolution deal, and others are being taken forward as well. We are looking at proposals in East Anglia that are still at a very nascent stage. So we are certainly open to looking at that; I can give that undertaking.

In relation to points raised by the noble Lord, Lord Shipley, about whether a district can be a full party to more than one devolution deal, a district or county council can be a full party to just one deal, but a county council could be a party to two or more deals because different parts of its area could be in different devolution deals. So a district or county council could not be part of more than one deal. That seems to be the logical position.

The noble Lord, Lord Scriven, asked about Sheffield and a mayoral power of veto. I understand that the only veto that exists is with the Government. I do not think that the mayor would have a veto, but I shall write to the noble Lord if I am wrong about that.

[Lord Scriven]

The issue was within the devolution deal. The mayor could have a veto on a vote of the combined authority. That was the issue that the leader of Sheffield City Council took exception to and, apparently, there has been some way forward, but it has not been reported to the people of South Yorkshire. The Minister’s letter would be welcome on that issue.

[Lord Bourne of Aberystwyth]

I am most grateful for that clarification. I certainly will write to the noble Lord and copy it to other noble Lords who have participated in the debate. I will ensure that everybody who has participated in the debate is sighted on all the points that have been raised and discussed.

I hope that I have covered all the points that have been raised. They were various, relevant and germane. In so far as I have missed anything, I undertake to pick that up in my response.

The noble Lord, Lord Beecham, raised a point similar to that from the noble Lord, Lord Prescott, about the North Midlands. It is certainly open to the North Midlands to come forward with proposals on a devolution deal if it wishes to do so. If Bassetlaw and Chesterfield were to be part of the Sheffield city deal, they would obviously not be able to participate in both. It could involve parts of Nottinghamshire or Derbyshire in any North Midlands deal.

On one last point that I have not covered, the noble Lord, Lord Scriven, asked whether the £30 million for Sheffield—and, by implication, the £36.5 million for the West Midlands—was capital or revenue. I confirm that it is indeed both.

I will write to noble Lords on the points I have missed. I thank them very much for their participation in this debate, and beg to move.

Motion agreed.

Contracts for Difference (Miscellaneous Amendments) Regulations 2016

Lord Bourne of Aberystwyth Excerpts

Tuesday 12th July 2016 Lords Chamber

Moved by

[Lord Bourne of Aberystwyth]

That the draft regulations laid before the House on 9 and 12 May be approved.

Relevant document: 2nd Report from the Secondary Legislation Scrutiny Committee. Considered in Grand Committee on 5 July.

Motions agreed.

Petroleum (Transfer of Functions) Regulations 2016

Lord Bourne of Aberystwyth Excerpts

Tuesday 12th July 2016 Grand Committee

Moved by

[Lord Bourne of Aberystwyth]

That the Grand Committee do consider the Petroleum (Transfer of Functions) Regulations 2016.

[The Parliamentary Under-Secretary of State, Department of Energy and Climate Change and Wales Office (Lord Bourne of Aberystwyth) (Con)]

My Lords, these regulations transfer certain functions relating to the licensing and taxation of oil and gas from the Secretary of State for Energy and Climate Change to the Oil and Gas Authority. With the recent debates on the Energy Bill—now the Energy Act 2016—no doubt still fresh in our minds, I am sure that most noble Lords will be familiar with the background to the establishment of the Oil and Gas Authority and Sir Ian Wood’s review of maximising the economic recovery of petroleum from the United Kingdom continental shelf. However, for the sake of clarity I will outline briefly where we have got to.

The benefit our oil and gas industry has brought to the United Kingdom is not in doubt, with around 43 billion barrels of oil extracted, over £330 billion of taxes paid and many thousands of jobs supported. However, as one of the most mature regions in this global industry, it is now facing new challenges, with remaining reserves increasingly dispersed and more difficult and expensive to exploit. Notwithstanding this and the additional pressures resulting from low prices, there is still great value to be extracted from the North Sea and the continental shelf. The Wood review recommended that delivering on this required a new approach, and the focused attention of a new independent regulator and asset steward.

In response to this, the Government legislated to establish the principle of maximising economic recovery —MER UK—and has set out a strategy to deliver this. Industry and the Oil and Gas Authority are now required to act in accordance with this strategy when going about their business. The authority has also been established as an executive agency of the Department of Energy and Climate Change, and has made great progress. The successful passage of the Energy Bill—now Act—enables it to be set up as a government company and empowered with a broader range of tools to meet the challenge of MER UK, as envisaged by the Wood review.

A central part of the establishment of the Oil and Gas Authority is the transfer to it of essential functions currently exercised by the Secretary of State. Noble Lords may recall that Schedule 1 to the Energy Act provides for the transfer of the majority of these functions, including some relating to offshore oil and gas infrastructure, as well as the licensing of carbon dioxide and gas storage. However, it was decided that certain core functions in relation to petroleum licensing and taxation would not be transferred in that Act, due to the interdependencies with the new devolution settlements for Scotland and Wales, as outlined in the Scotland Act and the Wales Bill currently passing through another place.

Specifically, both those settlements include provision to devolve these functions in the onshore area. This all requires amending the same part of the Petroleum Act 1998. Due to the complexities caused by the sequencing of these pieces of legislation, it was decided that we would transfer these specific functions via regulation under the Energy Act to allow greater flexibility. The regulations before the Committee seek to give effect to this. The rationale for transferring these functions to the Oil and Gas Authority remains the same as for those transferred in the Energy Act; namely, the effective establishment and operation of the Oil and Gas Authority as a regulator and asset steward of the United Kingdom continental shelf. The only difference in this case is the legislative vehicle by which these functions are formally transferred.

It is worth noting that, as with the functions transferred in the Energy Act, these functions are all currently being exercised by the Oil and Gas Authority in its capacity as an executive agency of the Department of Energy and Climate Change. However, once the authority is established as a government company, it will be legally distinct from the department and, in order to continue to carry out its functions, they will need to be formally transferred to it.

In conclusion, these regulations make relatively minor amendments to legislation governing petroleum licensing and taxation, to enable the Oil and Gas Authority to continue the important work it is doing to regulate the oil and gas sector, and to ensure a smooth transfer of functions to Scottish and Welsh Ministers in due course. I beg to move.

[Baroness Jones of Whitchurch (Lab)]

My Lords, I thank the Minister for his introduction of the order before the Committee today. As he reminded us, this follows the Wood review into maximising the recovery of oil and gas from the UK continental shelf. The Oil and Gas Authority is already established under the Companies Act 2006; its functions have now been extended under the Energy Act 2016, subject to the provision introduced under the Scotland Act 2016 to devolve onshore oil and gas licensing in Scotland. As the Minister reminded us, debate on extending the powers to the OGA was extensively undertaken during the passage of the Energy Bill. At that time, we fully supported the creation of the OGA, with powers to co-ordinate the industry and secure the best outcomes for the next phases of North Sea development. I am sure the noble Lord will also recall the debates on our amendments to the Bill to extend its environmental functions and to give the OGA powers on strategic decommissioning of infrastructure, particularly in relation to the development of carbon capture and storage.

We are happy to agree the order but we would have liked the powers to have gone further. Therefore, I have just one aspect to follow up with the Minister. At the time, all sides of the House appreciated the advantages that would result from the development of carbon capture and storage. However, this technology is largely untested. So does the Minister agree that the OGA’s planned licensing role could include research into CCS to develop the technology in the field so that we could benefit from it in the future? Is there a role for the OGA in that capacity?

[Lord Bourne of Aberystwyth]

My Lords, I thank the noble Baroness for her contribution. She correctly described the structure of the OGA and the fact that it is incorporated under the Companies Act 2006. She is right that the Official Opposition fully supported this aspect of the Bill. She is also right about the importance of carbon capture and storage. We did accept some amendments on CCS, some of which are now in the Energy Act.

The noble Baroness will recall that I suggested the establishment of an advisory committee chaired by the noble Lord, Lord Oxburgh. That is just about at the end of its work. I am seeing the noble Lord, Lord Oxburgh, next week to discuss its findings, of which I have had sight of some of the most important. We will be looking very closely at that advice. We accept the importance of CCS. Indeed, I have been discussing with colleagues in other countries the possibility of collaboration because many countries are further forward than we are on carbon capture and storage; for example, Canada has a very successful CCS plant run on a commercial basis at Boundary Dam, which I believe is in Alberta. Other states are happy to collaborate as well, at least on research and data. I assure the noble Baroness that we see the importance of CCS and are keen to take it forward.

I am very happy to update the House on developments as and when they happen but the important point to watch for is the publication of the advisory committee’s report, which I think will be forthcoming, certainly within the next two weeks. I am sure that that will be widely circulated. I thank the noble Baroness for her support.

Motion agreed.