Local Government Finance Bill

Baroness Lister of Burtersett Excerpts

Tuesday 10th July 2012 Grand Committee

I am by nature a localist. I welcome things that pass down to local authorities. In this case, it would be so difficult to run a scheme like this that we ought to now think again and make sure that we get a nationally based scheme that people can easily understand. Therefore, I support the amendment.

[Baroness Lister of Burtersett]

My Lords, I had not planned to speak to the amendment, but my noble friend Lady Sherlock raised a question about whether universal credit would be treated as income or not for the means test for local schemes. I am one of those sad people who has spent some of my weekend reading House of Commons Hansard Written Answers, and I have the answer for her. Stephen Timms asked the same question, and the answer was:

“Local authorities will be free to design their own scheme for localised support for working age people in their area. This includes being able to design any means test they wish to include, and deciding on what that test should and should not take account of”.—[Official Report, Commons, 2/7/12; col. 414W].

Going back to what my noble friend Lady Hollis of Heigham said, what local factor could possibly make it fair for one area to include universal credit as income and fair for another not to do so? It makes absolutely no sense at all. Every local authority, unless it goes for the default scheme, will be reinventing the wheel over and over again, working out their own means test. People will see absolutely no fairness in it whatsoever. It makes no sense not to have a national scheme.

[Lord Tope]

My Lords, there are a rather large number of people here who must have been council leaders during the period of the poll tax—as, indeed, I was. I do not want to rehearse much of what has been said about that period except to say that, in my local authority a few years before the poll tax was introduced, we had 47 Conservative councillors and three Liberal Democrat councillors. By the time we had moved to the council tax, we had 47 Liberal Democrat councillors and four Conservatives. The five remaining Labour councillors were astonished to find themselves the principal opposition. So some good did come from the poll tax.

--- Later in debate ---

[Baroness Lister of Burtersett]

The Minister will of course be aware of the House of Commons’ Communities and Local Government Committee report on localisation issues and welfare reform. It said:

“We have seen little evidence to support the hope that new and better-paying jobs for individuals, immediately sufficient to off-set the 10% reduction in the benefit budget, will inevitably follow from”—

the incentives that have been discussed; and,

“the means of economic growth are never solely in the gift of individual local authorities”.

What evidence did the Government have that the Committee did not to support the Minister’s contention?

[Earl Attlee]

My Lords, on the activities of local authorities to encourage businesses to come to their areas, of course local authorities do that now—I fully accept that—but they will do even more because they have a greater incentive. The noble Baroness quite properly made the point about poaching. It was a good point. Actually, we need to encourage businesses to locate in the UK and not in either another European state or further afield. It is not a question of poaching from next door necessarily, but if the local authority adjacent to you is less business friendly, you might find that businesses will locate in your area.