Baroness Scott of Bybrook Portrait Baroness Scott of Bybrook (Con)
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My Lords, Amendment 41 in my name and that of my noble friend Lord Jamieson is a probing amendment concerning why the Government wish to give mayors a veto over the decisions of a combined county authority.

If this Bill is truly about empowering local communities, decision-making power should be allocated equally between all elected councillors, not concentrated in the hands of one political party individual. This is not to say that the mayor should not have a vote, or perhaps even a casting vote, but we currently see no justification for giving mayors a veto over all decisions made by a majority of a community’s democratically elected representatives. This would not empower local government but would instead turn it into a kind of presidential system. That is not how we do things in this country, nor do we want to.

Amendments 42 and 44 in the name of my noble friend Lord Lansley seek to bring the Bill in line with past legislation. Amendment 42 is in relation to the voting powers of members of combined county authorities whereby the Secretary of State can make provision for different weights to be given to votes of different types of members, as set out in the Levelling-up and Regeneration Act 2023. Amendment 44, on transport, seeks to bring the Bill in line with the arrangements set out in the Local Transport Act 2008 and the Local Democracy, Economic Development and Construction Act 2009. These amendments seem entirely sensible—unless the Government have other reasons, and we would be grateful if they elaborated on those if they do.

Amendment 43, in my name and that of my noble friend Lord Jamieson, again probes the Government as to why the decisions of a combined county authority must require the agreement of the mayor, rather than being determined by a simple majority of local councillors. We believe this would undermine local democracy, rather than empowering it. If decisions require the agreement of the mayor, a majority of councillors may be disregarded and the wishes of the people ignored. That is not democracy, nor have we heard any arguments as to why it is needed.

Finally, my noble friend Lord Jamieson and I oppose the Question that Clause 6 stand part of the Bill, since we do not see why the Government have deemed it necessary to amend the Levelling-up and Regeneration Act 2023 to replace the constitutional arrangement it sets out. I hope the Minister will explain why the Government hope to empower mayors over other local councillors, since this does not empower local democracy; rather, it empowers a select few individuals tasked with representing large geographical areas with different communities, who inevitably will have different needs.

As the Bill stands, this will not further localism; rather it will centralise power and take away the decision-making powers of local councillors. Not only does this fly in the face of the Bill’s title, but we have not been given any justification or reasoning for it. I look forward to hearing the Minister’s response. I beg to move.

Lord Lansley Portrait Lord Lansley (Con)
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My Lords, it is a pleasure to follow my noble friend and speak to these amendments to Clause 6. The clause relates to decision-making in combined county authorities and combined authorities and its purpose is to provide for a default structure of voting in both kinds of strategic authorities. In particular, that default structure would provide that in mayoral authorities the majority in favour of a decision must include the mayor, thus in effect giving the mayor a veto over decisions, since the majority excluding the mayor would not be decisive.

Before I turn to my amendments, and apropos of the question of whether the clause stands part, I will ask a question. I refer noble Lords and the Minister to Section 13(2)(a) of the Levelling-up and Regeneration Act. The section enables regulations to be made about members, and Section 13(2)(a) states that those regulations can include provision about

“cases in which a decision of a CCA requires a majority, or a particular kind of majority, of the votes of members of a particular kind”.

It seems to me that that paragraph of the levelling-up Act enables exactly what the Minister is setting out to do by statutory instrument rather than by primary legislation. Could she tell us why primary legislation is required to achieve this purpose? That might inform our deliberations on the stand part debate.

Amendments 42 and 44 are in my name. I do not share my noble friend’s desire, set out in her Amendments 41 and 43, to take out the mayoral veto from the clause. I have been a resident in the Cambridgeshire and Peterborough combined authority for however many years. When we had a mayor, the mayor found it very difficult to secure, for example, a non-statutory spatial strategy, not least because the mayor was often frustrated in getting a policy through due to the votes of one of the strategic authority’s constituent councils. In my view, if you elect a mayor and you want a mayor to exercise leadership in a strategic authority, it does not follow that the mayor will necessarily be able to get everything that the mayor wants, and the mayor will have to secure a majority to do so. It is very difficult for the mayor to carry on and provide that leadership if there is a majority that can carry proposals against his or her own policy.

This therefore forces the mayor to act in a certain way. I have seen that in Cambridgeshire, where the current mayor, Paul Bristow, is doing a very good job; he will be known to some of my noble friends. Partly because of this legislation, he is securing a majority in the combined authority, not least because there is an expectation that the strategic authority, when it gets these powers, will be able to make progress with the majority that includes him, and so he will not be able to be blocked by one constituent council.

I turn my focus to my Amendments 42 and 44. The former relates to combined county authorities. In this Committee, I am afraid that we are getting used to the fact that we have to do everything twice, because we have to legislate both for combined county authorities and for combined authorities; it will get a lot simpler when we have just one kind of strategic authority and when legislation for all strategic authorities is pretty much the same. Nevertheless, combined county authorities are governed by Section 10 of the Levelling-up and Regeneration Act 2023, which enables the Secretary of State to set out their constitutional arrangements. Section 10(2)(b) includes

“the voting powers of members of the CCA (including provision for different weight to be given to the vote of different descriptions of member)”.

That is the existing legislation: it provides for different weights to be allocated to different members. The current situation is that the constitution of a combined county authority is not a “one member, one vote” arrangement—it can vary.

Clause 6 will insert new Section 13A into the Levelling-up and Regeneration Act 2023. It says that

“each voting member has one vote”.

So, what I am really asking by way of these two amendments—in this instance, for combined county authorities—is: does the primary legislation we are discussing now override, in effect, the existing potential for regulations to determine a different weight for different members for different decisions; or, because of this primary legislation, does it have to be “one member, one vote”?

There is a problem there. That problem was illustrated to me when we had a meeting just a few weeks back—my noble friend Lady Scott of Bybrook will recall it—about Suffolk. It was about unitaries, as it happened, but it also encompassed a discussion about the prospective Norfolk and Suffolk strategic authority, which is in the devolution priority programme. The leader of Suffolk County Council was asked, “Suffolk is a single unitary and Norfolk is three, maybe even four, unitaries. What happens if they come together into one strategic authority?”

The problem is easily illustrated: one constituent council and one vote equals perhaps three votes for Norfolk and one vote for Suffolk. The leader of Suffolk County Council said, “That’s not a problem because we’ll weight the votes”. This is exactly what one would do using existing legislation, but I am worried that the structure of the Bill’s drafting will take that discretion away. That is the purpose of my Amendment 42.

My Amendment 44 relates to combined authorities, not combined county authorities, but it runs to the exact same issue. Of course, combined authorities are governed not by the Levelling-up and Regeneration Act but by the Local Democracy, Economic Development and Construction Act 2009, Section 104 of which provides that the constitutional arrangements for combined authorities may, by order, be made according to the provisions of the Local Transport Act 2008. Section 84 of that latter Act relates to constitutional arrangements; subsection (2)(b) refers to

“the voting powers of members of the ITA”—

the integrated transport authority—

“(including provision for different weight to be given to the vote of different descriptions of member)”.

The Committee will recognise those exact same words, so we are dealing with exactly the same issue: is it different weights for different members, or is it to be overridden by “one member, one vote”?

I want, as the outcome of this debate, for us to be sure that this legislation continues to permit a constitution for a strategic authority that both allocates different weights to different members and enables voting power to reflect the wide range of circumstances of constituent councils and other voting members of strategic authorities.

Lord Shipley Portrait Lord Shipley (LD)
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My Lords, I shall be very brief because it would be better if the Minister responded to the important points that have been made.

I will not take up too much of the Committee’s time, but I want to say two things that will, I think, help in this situation. First, we must get clarity about which powers are only for the mayor and which are to be shared with the combined authority; it is important that that be made clear. Secondly, on voting in the combined authority, there is at times a requirement for a two-thirds majority and, at other times, a requirement for a simple majority. We need to be absolutely clear why those differences apply.

With that, I would like to hear what the Minister has to say.

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Moved by
45: Schedule 2, page 116, line 20, at end insert—
“2A In section 12D of the Planning and Compulsory Purchase Act 2004 (contents of spatial development strategy), after subsection (3) insert—“(3A) A spatial development strategy must identify the policies which are of strategic importance in order to meet the local growth priorities identified in the relevant local growth plan for that strategic area.””Member’s explanatory statement
This amendment links the local growth plan to the preparation of the spatial development strategy.
Lord Lansley Portrait Lord Lansley (Con)
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Clause 6 provides, right at the end, that Schedule 2 makes further provision, including in relation to the spatial development strategy that strategic authorities are required to produce under the Planning and Compulsory Purchase Act 2004, as inserted by Section 58 of the Planning and Infrastructure Act 2025. Those who are former inmates of the Stockholm syndrome that was the Planning and Infrastructure Bill will recall this very well. I apologise to all those noble Lords for revisiting this, but I hope with a useful purpose.

Alongside a spatial development strategy, the Bill requires, in Clause 39 and Schedule 20, the strategic authority also to prepare a local growth plan. Noble Lords will see that, by virtue of the transport and infrastructure powers of strategic authorities and their power to charge a community infrastructure levy linked to that infrastructure provision—Clause 34 and Schedule 15 provide for that—the strategic authority will need to have, in addition to a local growth plan, an infrastructure strategy and an infrastructure delivery framework. I hope that is what they intend to do. The purpose of my amendments in this group is to link these things together. I entirely take the point that the Minister may rightly make: “Surely that’s what strategic authorities have to do”. But we have statutory provision in relation to the spatial development strategy, in particular, that does not refer across to local growth plans and I think it is important that it does.

There are two things that should be linked. Amendments 138 and 144 say that the local growth plan should identify, for the spatial development strategy then to take into account, the employment, industrial, commercial and logistic growth opportunities identified in the local growth plan. Noble Lords will recall from the Planning and Infrastructure Act that there are a number of specifics that the spatial development strategy has to take on board, but they are essentially housing related. I did not succeed in persuading the Government that they should also specifically take account of employment and related issues. But that is exactly what will happen in practice, and ought to happen: the local growth plan and the employment opportunities associated with it should be an essential part of the strategic process of establishing the spatial development in that area. I cannot see that they can be separated and done without reference to each other.

Amendments 139 and 145 are intended for the local growth plan to identify the infrastructure needed to meet the growth priorities set out in the local growth plan. As a consequence, it must identify the employment-related implications for the spatial development strategy. I do not think that I am inventing these kinds of processes. I have been involved locally for a number of years—I refer to my registered interest as chair, over the years, of the Cambridgeshire Development Forum. The way a local plan is established—and in due course the spatial development strategy for Cambridgeshire and Peterborough—starts from an understanding of the future employment implications of the growth that will occur in our area. It is substantial and those growth priorities will be laid out in the local growth plan, a draft of which has already been produced by the Cambridgeshire and Peterborough Combined Authority. That is a starting point for understanding the spatial development strategy that I hope it will now rapidly go on to produce.

There are two sets of amendments, one for county combined authorities and the other for combined authorities. I hope that Amendments 138, 139, 144 and 145 would secure an internal coherence between the local growth plan and the infrastructure priorities derived from that local growth plan, which is then linked into the planning of where that growth in employment and housing should be located through the spatial development strategy. I hope that consistency would enable the strategic authorities to work effectively.

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Baroness Taylor of Stevenage Portrait Baroness Taylor of Stevenage (Lab)
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Each local area will consider its local growth plan, and I hope they will all look at culture. We have carefully considered and are reflecting on the comments made on the competencies we included. This is important, and I gave some stats on the first day of Committee on the benefit to the economy of some of the culture in my own county. It is important that all areas consider this as a key part of what should be in any development strategy and local growth plan.

Lord Lansley Portrait Lord Lansley (Con)
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I am most grateful to the Minister for that response and to all noble Lords who spoke on this group. In particular, I give warm thanks to those who supported Amendment 46. As the noble Baroness, Lady Young of Old Scone, rightly said, we may need to think about this again on Report, just to check, for example, that the National Planning Policy Framework does what the Minister says it does. At the moment, I cannot honestly say that I am sure that it does.

Noble Lords who are often in these planning discussions will always find it rather odd to try to work out that the Government sometimes say that we need to put something in the Bill. For example, local nature recovery strategies are prescribed to be taken into account for a spatial development strategy. Why not prescribe the land use framework? That, apparently, will be covered in the National Planning Policy Framework, which, as we know, is a document that derives statutory weight. So, if it is in there, the weight is there, and that is fine. But the point is that we are writing this legislation now, and this gives us an opportunity for Parliament to say what it thinks, because we cannot and do not debate the content of the National Planning Policy Framework in the way that we debate this legislation. So, there is a reason why we do this now, in the here and now.

There are many links to, for example, environmental well-being, local nature recovery strategies and promoting the adaptation to and mitigation of climate change in the way spatial development strategies are to be constructed. I just think we need to be absolutely certain that Ministers will make that clear in the NPPF. Indeed, they have a power under Section 12D(7) to prescribe the matters that spatial development strategies must include. We just need a bit more certainty that these things will be prescribed.

Where the relationship with the growth plan is concerned, I completely take the Minister’s point. It is just that, although growth appears to be the priority, actually the spatial development strategy says that the strategic authority should focus on the consequences of growth rather than on delivering the growth. The relationship between the local growth plan and the spatial development strategy is much more of an ex ante than post hoc set of decisions. You want to go upfront and say that we are designing the local growth plan alongside the spatial development strategy and not trying to retrofit the housing to meet the local growth requirements. I hope that that is what is going to happen; otherwise, I fear that these will be two teams in strategic authorities, with the economic development people on the one hand and the planning people on the other, when they should be one team producing one strategy. I hope that we can encourage that as much as possible through the nature of the debates we are having.

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Lord Jamieson Portrait Lord Jamieson (Con)
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My Lords, I shall speak to the two amendments in my name and that of my noble friend Lady Scott of Bybrook. Amendment 49 would allow the Secretary of State to make subordinate legislation to cause a mayoral combined authority to cease to be a mayoral strategic authority if, and only if, the combined authority consents for this to be the case. That would allow the structures of local government to be formed locally, according to local needs, priorities and democratic wishes, rather than setting in stone structures that may not be suitable for local communities later down the line.

On the creation of established mayoral strategic authorities, Amendment 47 would remove the proposed power of the Secretary of State to designate a mayoral strategic authority as an established mayoral strategic authority because we believe that the process should be locally led and not imposed from above. Amendments 48 and 50 in the name of my noble friend Lord Lansley also address the creation of established mayoral strategic authorities.

The Government White Paper set out the eligibility criteria for accessing the established mayoral tier. These amendments seek to give a basis for deciding whether proposals for a mayoral combined county authority, a mayoral combined authority, or for being designated an established mayoral strategic authority, have substantive merit.

We also know that the scope of integrated settlements for mayoral strategic authorities will be confirmed at each spending review, on the basis of functional responsibilities and their value, by a formulaic process. Can the Minister please elaborate on what those responsibilities are and on the formulaic process? Authorities need to be able to feed back on the amounts and types of funding they receive, so what process will be in place to ensure that funding is based on funding received from authorities?

In addition, how will government ensure that the timeline for this Bill aligns with the timelines for new strategic authorities and the spending review? Will the new mayors have the same powers and financial resources made available to them as the existing mayors? Local government reorganisation should not be undertaken simply for the sake of it; the Government’s plans and timelines need to be coherent and co-ordinated and underpinned by genuine principles for devolution to be meaningful and effective. I look forward to hearing the contributions of noble Lords and the Minister’s response on these matters. With that, I beg to move.

Lord Lansley Portrait Lord Lansley (Con)
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My Lords, I have two amendments in this group, Amendments 48 and 50. It is another of those occasions when there are two amendments to achieve one purpose. Amendment 48 relates to county combined authorities and Amendment 50 to combined authorities, and each is on the question of under what circumstances they should be able to be designated by the Secretary of State as an established mayoral strategic authority.

On the purpose of designation, two key things happen when you are an established strategic authority. First, you can have access to an integrated financial settlement. This is quite an important issue, although it is not in the Bill because it is financial; it would be determined by Treasury financial legislation. However, this being established means that it is a gateway to the ability to manage finances with what we would call in departments the power environment between different headings. These would normally not be available to local authorities where they receive delegated funding for one purpose and want to be able to use it for other purposes.

As we progress, if there is to be a significant tourism revenue to strategic authorities, the financial arrangements of strategic authorities will be an important element. We may come back to that in later groups. I do not want to dwell on that. The point is that this is the gateway to an integrated financial settlement from the Treasury. Very few strategic authorities have it now. I suppose that London and Manchester will get it first, in this spending review, then other strategic authorities will get it in the next spending review.

Secondly—we will no doubt come back to this on Clause 51—there is the ability of established mayoral strategic authorities to seek additional powers and functions within the designated areas of competence. That is quite an important additional power. These are two important powers, and Amendments 48 and 50 ask by what means the Secretary of State decides whether they should be established. What is in the Bill sets out a process but no criteria.

Paragraph 2.2.4 of the English devolution White Paper told us that there would be criteria for accessing the established mayoral tier: that the strategic authority has

“been in existence … for at least 18 months … has a published Local Assurance Framework in place … has not been the subject of a Best Value Notice, a MHCLG commissioned independent review, or a statutory inspection or intervention … is not subject to any ongoing (or implementing) recommendations from an externally mandated independent review; and there are no material accounting concerns covering the current or previous financial year”.

These are essentially matters of financial governance and accountability. I do not understand why the Bill makes no reference to the criteria the Secretary of State would apply, given that the devolution White Paper has set them out specifically. If my amendments were accepted, an indication would at the very least be given of the criteria: effective governance, accountability, and specified performance metrics.

It is a good idea that, as this develops, a specific power be provided in the legislation enabling the Secretary of State to publish the criteria that will be applied to the question of designation. It would not be right simply to say that there is a process but no criteria. We should have the criteria established.

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Lord Lansley Portrait Lord Lansley (Con)
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Before my noble friend responds to the debate, I want just to be sure that I am clear. On the criteria that are applied by the Secretary of State to the question of whether a strategic authority that applies to be established should be permitted to do so, so far they presently include what the devolution White Paper said. None of that has been withdrawn and nothing has been added; it is still the same. But if that were to change at some point in the future, the Government do not need a power in order to change it, because the Secretary of State will simply issue some document that says, “From now on, this is how the Secretary of State is going to look at these decisions”. It is important to get these criteria right. Unless I am misunderstanding the Minister, the intention is that this is a gateway through which you can pass in only one direction. You become an established mayoral strategic authority and you cannot come back if it is wrong, so the criteria have to be right, and the mayoral strategic authority has to be able to live permanently with that status. Am I correct about that?

Baroness Taylor of Stevenage Portrait Baroness Taylor of Stevenage (Lab)
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Yes, the noble Lord is right, but this is quite a high level of criteria. There are some financial aspects, but the fact that the authority must not have been subject to a best value notice, an independent review, a statutory inspection or intervention in the previous 18 months covers a wide variety of activity in a strategic authority. There is a rigorous process and a very high bar for those authorities to get over. When we look at the established authorities that I mentioned in relation to the progress on where we are with these now, they have been in place for a long time. Some of them are requesting additional powers to do things that were not traditionally in the framework for mayoral authorities. It is important that that is a high bar for them to get over.

As the noble Lord rightly pointed out, having an integrated settlement is an important step forward for those authorities. We hope that this will be a transformational process and that all the combined and combined county authorities will strive to get to that process once they have a mayor in place. We do not want it to be something that slips back. Let us hope that we can set these criteria, setting the bar high, which indicates the direction of travel we have for devolution, and move forward so that our authorities have the powers to do what they need to do locally.

Lord Lansley Portrait Lord Lansley (Con)
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I apologise for interrupting; I promise that this will be the last time. On the question of tourism revenue, if there is a tourism tax or whatever, what do we know about the arrangements for that? Is it the case that only established mayoral strategic authorities will be able to levy any kind of tourism tax because they have the financial governance and accountability arrangements established for this purpose—forgive the use of “established”, but the noble Baroness can see what I mean—or is there an intention that this would be a wider financial offering to strategic authorities?

Baroness Taylor of Stevenage Portrait Baroness Taylor of Stevenage (Lab)
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The tourism tax is an interesting step forward because, as far as I know, this is the first time a fiscal power has been devolved. The Government are keen to test out that devolution of fiscal power; I do not have the details at my fingertips so I will write to the noble Lord on the detail of how it is moving forward.