English Devolution and Community Empowerment Bill

Debate between Baroness Scott of Bybrook and Lord Shipley
Lord Shipley Portrait Lord Shipley (LD)
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My Lords, I thank all those who have spoken, in particular my noble friend Lord Wallace of Saltaire, who made a number of important points about all three of the suggestions before us. I thought the point from the noble Lord, Lord Mawson, was extremely well made: this is about place-making and what happens on the ground. A top-down approach is building the other way around.

I will be very brief. This is a devolution Bill, yet it prescribes what can happen on the ground. I have said that at least half a dozen times in Committee, but I will repeat it again because it deserves to be repeated. I want to give the noble Lord, Lord Bassam, some extra support, because there is an issue with size, as the noble Lord, Lord Mawson, pointed out.

I understand that we have an appropriate figure for the size of a unitary authority of some 500,000, but I counsel the Government against using population size as the basis for a calculation. I can remember, a few years ago, when the Minister was the noble Lord, Lord Bourne of Aberystwyth, having a conversation about the ideal size for Buckinghamshire and Bournemouth in Dorset. I remember being told that, in Buckinghamshire, the ideal size needed to be 350,000, but I was urging a figure of around 300,000. I am quite happy to be wrong about that but, if the Government are moving towards a figure of 500,000, they will have to justify it. The noble Lord, Lord Bassam, rightly made the point that you need to consider natural geography, the identity of the authorities and so on. He put it extremely well.

I hope that the Minister will tell us that the Government will consider the amendment from the noble Lord, Lord Bassam. I am sure the noble Lord would not mind them adding to it and improving it with new things, but it should form the basis for a consideration of what the ideal unitary size is, which may of course be different in different places. It is for local people to say whether they prefer a model of 500,000, fewer than that or whatever; otherwise, this process will be too top-down.

Baroness Scott of Bybrook Portrait Baroness Scott of Bybrook (Con)
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My Lords, I will be brief in closing, but very clear about the position of the Official Opposition on this group. After many hours of debate, one point should now be beyond doubt: devolution cannot be delivered by compulsion. If the Government persist in reserving sweeping powers to direct and impose local government reorganisation from the centre, the Bill will continue to fall very short of its stated purpose.

We have heard many views, mostly negative, from noble Lords today, but I have been there. In 2007, under a Labour Government, I took my then council to a unitary. I was not very popular, but it was our decision: we planned it and we asked for it. It has been a great success; it is more efficient and more local. I will talk more about that in future groups today.

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Lord Shipley Portrait Lord Shipley (LD)
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My Lords, what a helpful discussion we have had about this group of amendments. The noble Lord, Lord Fuller, has rightly called this clause a muddle and said that we need to come back to it on Report with some flesh on it, because there is absolutely no detail here.

As the noble Lord, Lord Lucas, said in relation to Sussex, there is no local structure for when it goes unitary. That strikes me as fundamental. Clause 60 says nothing about town and parish councils. We have had a whole set of amendments trying to address this problem, but it should have been addressed before we got to Committee. It must be addressed by the time we get to Report.

I think that we have understood now what the problem is. My noble friend Lord Wallace of Saltaire said at the start, in introducing this group, that he had an unease about Clause 60, which he called a “most dubious clause”—how right and prescient he has turned out to be. The noble Lord, Lord Fuller, complained that he had said a number of things on Monday about the muddle, gap or vacuum that there is. I raised this matter, and I am happy to agree that that is the case, but on day 1 in Committee, I talked about the importance of local authorities devolving power to town and parish councils—to lower tiers. At every level there should be a statutory requirement on all the bodies to devolve power to a lower level, wherever there was a case for so doing. The Government did not support that, but I remind them of that debate on and the amendment to Clause 1, as it would help to get them off the hook with this very poorly drafted Clause 60.

On a final point, as my noble friend Lord Wallace of Saltaire said, there is a confusion in terms in the Bill between local, neighbourhood and community—the three words I think he used—to which I add “area”, because we get that as well. The words start to become interchangeable because nobody is quite sure what they mean. They are not properly defined in the Bill. They ought to be, but the difficulty we have is that the Government do not quite know how to define them. The solution to the problem is to change Clause 60 to include, as part of the local government structure, town and parish councils, then to insist that areas of competence should be devolved to the lowest level possible for the management of that service.

I hope that the Minister is taking very seriously that we must have something much more substantial on Report.

Baroness Scott of Bybrook Portrait Baroness Scott of Bybrook (Con)
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My Lords, London does have a parish. It was set up in 2014 after a local referendum, and it is Queen’s Park—just so your Lordships know. There is nothing at all to stop the greatest city becoming parished.

I agree with many noble Lords that Clause 60 is a muddle. While it places a duty on local authorities to make appropriate arrangements for effective governance, it does not say whether that effective governance should be elected or non-elected. It also says that the Secretary of State would have powers through regulations to define neighbourhood areas and to specify the parameters of what arrangements may be considered appropriate. I find that very odd. I do not know which Secretary of State would understand the neighbourhoods of my now county of Norfolk, let alone the whole of England. However, we welcome efforts to bring decision-making closer to the communities that it affects. From previously setting up unitaries, it has been very clear that it is important to set up some more local organisations, but we need much more clarity on what they should be.

Neighbourhood committees or area committees—whatever they are called—are not the same as elected town or parish councils. They are unelected and in the control of and usually paid for by the unitary authority. I have experienced these committees and they work very well. They are probably needed for a bigger unitary authority, but they are no substitute for elected councils, such as town and parish councils. In fact, one of the strengths of neighbourhood or area committees is the inclusion of those local town and parish councils, so that all issues will be discussed locally by everybody concerned. Town and parish councils, because they are elected, are required to look at local plans and neighbourhood plans, and even at the budgets of the councils, to give a local perspective on those big issues for the unitary authorities. In that spirit, I welcome the intention behind Amendment 205, tabled by the noble Lord, Lord Wallace of Saltaire, which seeks to strengthen the role and authority of locally elected councils and affirms the principle that neighbourhood governance must be rooted in democratic legitimacy and local accountability.

Amendments 206, 207, 208, 209A and 210, tabled by the noble Lords, Lord Bassam of Brighton and Lord Lansley, and the noble Earl, Lord Lytton, are important because they quite rightly seek, in different but complementary ways, to enhance and secure the role of town and parish councils within this emerging framework of what the Government are calling neighbourhood governance. We all know, from long experience and evidence on the ground, that genuine community empowerment through elected town and parish councils is central to effective neighbourhood governance. The noble Earl, Lord Lytton, is absolutely right that town and parish councils are a way for the larger authorities to test what is going on right down on the ground.

Parish and town councils are often the most immediate and accessible tier of democratic representation. They are closest to the lived experience of local people, they understand local priorities and they are often best placed to translate national policy ambitions into practical, locally sensitive action. I am sure that the noble Baroness, Lady Jones, will think that that is a good thing for them to do.

Building on that point, I would be grateful if the Minister would therefore clarify how the Government see the roles of parish and town councils evolving within the wider framework of neighbourhood governance in this Bill. It is interesting that the Minister’s responses so far have been far from encouraging to town and parish councils. Why not encourage new unitary authorities to look at setting up more town and parish councils in their areas? That could go into a change to Clause 60.

In particular, can the Minister say how the Government intend to ensure that town and parish councils are meaningfully involved in the decision-making that affects their communities? That happens now, but will it continue to happen? Finally, can she confirm how the Government will ensure that any move towards greater neighbourhood governance will be underpinned by clear lines of democratic accountability, so that locally elected parish councils are empowered to deliver more as we, hopefully, get more of them and they are embedded?

Throughout our consideration of this Bill, we have spoken at length about the importance of parish councils in general terms. In the specific context of Clause 60, that importance becomes even more pronounced. If neighbourhood governance is to be effective, it cannot be imposed from above. It has to grow from what we have already in large parts of this country, which could be created elsewhere.

We are therefore clear in our commitment to continuing the central role of town and parish councils in providing effective neighbourhood governance. That brings continuity, it brings local trust and it brings democratic legitimacy. Town and parish councils provide an institutional memory and a community connection that, as we have heard from other noble Lords, transient structures simply cannot replicate without democracy.

In closing, while we must ensure that the framework set out in Clause 60 retains sufficient flexibility to reflect the diversity of local circumstances, that flexibility should not come at the expense of democratic clarity and local voice. The amendments in this group speak to that balance, we believe. They remind us that effective neighbourhood governance is about trust in local institutions, trust in elected representatives and trust in communities themselves; it does not come top-down from government.

English Devolution and Community Empowerment Bill

Debate between Baroness Scott of Bybrook and Lord Shipley
Lord Shipley Portrait Lord Shipley (LD)
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My Lords, I thank the noble Lord, Lord Mawson, for his salutary warnings. It is very real when you have the experience of somebody in a particular local area who can say that the dots are not joined and that the funding streams are too many and are simply not joined together. There is a huge opportunity here if the Government can take it. This amendment from the noble Baroness, Lady Royall of Blaisdon, seems to me to be central. I hope that the Minister is going to be helpful in her response. Local growth plans should take account of statutory health duties, and they should be brought together. There is a clear link between economic growth and health improvement. There should be that clear link. Health improvement has to be integral to growth plans. This seems to be unanswerable as a proposal, so I hope the Government will be in full listening mode.

The amendment in the name of the noble Baroness, Lady Freeman of Steventon, is important. It is helpful that she has proposed a way forward through statutory guidance. I understand the points made by the noble Lord, Lord Hunt of Kings Heath. There is a serious danger that growth plans will lead to competition between economic growth and environmental growth responsibilities. I think the Government can help here by publishing guidance on this matter. The noble Lord, Lord Hunt, talked about the nuclear industry. I can think of other examples where there is a conflict between an environmental consideration and a growth consideration. Given the new world that we are about to enter with mayors and strategic authorities, clear guidance would be a big help in this area. I hope the Government will be in a positively responsive mood.

Baroness Scott of Bybrook Portrait Baroness Scott of Bybrook (Con)
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My Lords, I thank the noble Baronesses, Lady Royall of Blaisdon and Lady Freeman of Steventon, for tabling these amendments. As we have heard, Amendment 140 would ensure that local growth plans take into account statutory health duties and health inequalities strategies prepared by the strategic authorities. Councils have a crucial role to play and are often well placed to better understand and address local health issues, but I still bear the scars from trying to do this locally many years ago. It requires the NHS to devolve powers—and, as importantly, money—down. I tried. It was very positive to begin with —that is what they wanted us to do—but when push came to shove, acute hospitals always kept the money.

Until government can sort things out between the NHS and local authorities, that will not happen, which is a great shame. As we have heard, local authorities can create really safe environments that are more conducive to community well-being, promote healthy lifestyles and collaborate with other organisations to make really targeted interventions on the issues in their communities.

English Devolution and Community Empowerment Bill

Debate between Baroness Scott of Bybrook and Lord Shipley
Baroness Scott of Bybrook Portrait Baroness Scott of Bybrook (Con)
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My Lords, it is a pleasure to open this group on behalf of my noble friend Lady Stedman-Scott. She apologises profusely because she has had to go into the Chamber as they are talking about possibly bringing forward dinner break business. As noble Lords have heard, this is an area close to her heart. These amendments reflect her considerable knowledge and expertise while inviting us to consider how we might improve the Bill from an adult skills, work and welfare perspective.

As we have heard already in Committee, my noble friend Lady Stedman-Scott spent more than 32 years working to help young people into employment, and I am grateful for the support and insight that she is providing for this debate. I can assure your Lordships that my noble friend would probably have spoken for another hour on everything that she has gained from working for those 32 years in the area.

This is an area about which we feel strongly, yet, in our view, the Bill as it stands lacks the framework and conditions that are required to deliver a truly meaningful impact. As we said, unemployment is rising. That is not a party-political point—it is just a fact. At the same time, we face a persistent skills mismatch in many parts of our country. If we are serious about reversing this trend, we must work together to ensure that the Bill delivers real and lasting change. That is working together at the top but locally.

I begin with Amendment 122A, tabled by my noble friend. Beyond the legal entitlements set out in the Apprenticeship, Skills, Children and Learning Act 2009, strategic authorities will enjoy significant local discretion in how they exercise these functions and deploy the adult skills fund. We understand that allocations to strategic authorities will be made on a non-ring-fenced basis, with minimal conditions attached to that funding.

This amendment is deliberately simple and proportionate. It provides that any funding given to a strategic authority under the Act for adult skills, education or employment support must be used to achieve one of those two purposes—first, to support adult educational skills, and secondly, to help young adults into work, stay in work or progress in work. In doing so, it anchors the funding clearly to adult skills and employment outcomes rather than allowing resources to drift into loosely related priorities. At the same time, strategic authorities retain full discretion over programme design, commissioning and delivery. Nothing in this amendment constrains local innovation or responsiveness.

The amendment also sets out what counts as valid spending. This is a non-exhaustive list and includes adult education and training, retraining and upskilling, employment support and careers guidance, employer engagement and outreach to under-represented groups. This provides legal cover for modern preventive and locally tailored interventions.

Crucially, it also makes clear what this funding cannot be used for. It cannot be diverted into roads, highways or transport infrastructure. You often hear, “This will fund new jobs”, but they are not always long-term jobs. It cannot be used for unrelated capital projects, nor can it be absorbed into generic economic development activity that has no clear link to workforce participation. This is designed to prevent the sort of argument that employment outcomes have been improved simply by building a bypass.

Finally, the amendment would require authorities to publish statements explaining how the money has been spent and how it supports adult education and employment locally. This introduces public accountability, creates a clear paper trail for Parliament and applies gentle, but important, pressure on authorities to demonstrate outcomes. I hope noble Lords across the Committee will agree that this is a sensible, focused and necessary amendment that would materially strengthen the Bill in an area of growing national importance.

I will speak briefly to the new clause that would be introduced by Amendment 196EA. This clause would allow responsibility for delivering the youth guarantee to be devolved to strategic authorities, giving them the flexibility to tailor provision to local labour markets while preserving the youth guarantee as a national entitlement. I heard what the Minister said, but I think we will still be pushing this point. It should be underpinned by minimum standards and parliamentary oversight. I know that this Government are rightly proud of this programme, but, if they truly believe in the model, it should be delivered as close to local labour markets as possible. Local authorities are far better placed to understand employer demand, skills shortages and the specific barriers that young people face in their areas, and to align support with real jobs rather than abstract national assumptions.

The new clause that would be inserted by Amendment 196EB, along with Amendments 124A and 124B, follow the same theme. I will focus on the new clause, which in essence summarises the rationale for the expansion of Schedule 11 and is reflected in later amendments. Fundamentally, they all seek to achieve the same objective. This clause would give mayor-led strategic authorities the power, where they choose to request it, to design and run youth employment programmes or pilot schemes. It would enable mayors to work directly with employers, education providers and voluntary organisations to offer targeted support, such as training, apprenticeships, wage subsidies and work placements, for young people, particularly those at risk of long-term unemployment. The Secretary of State would be able to provide funding for this purpose, which must be used to support youth employment or labour market participation. The clause would also allow for time-limited pilots, evaluation and the sharing of learning, all subject to full parliamentary scrutiny.

During my noble friend Lady Stedman-Scott’s time at Tomorrow’s People, she ran employability programmes that addressed the challenges of young people not in education, employment or training and delivered close to local labour markets. Simply put, they worked. They drove real impact on the ground by working with colleges, schools and local businesses. Devolution can provide targeted outreach, tailored support and genuinely high-impact interventions, which is precisely what these amendments seek to enable.

As I mentioned briefly on the previous group, the challenge of young people not in education, employment or training has rarely been so acute. In the most recent data available, 729,000 young people aged 16 to 24 were unemployed. As we have said before, that is an increase of 103,000 on the previous year. Of course, tackling this problem requires the right national economic policies. I accept that, but there is also so much that cannot be changed from the centre. In the meantime, mayors can act now. They can work directly with local businesses, design and run pilot schemes and tailor support in their areas for specific labour markets that they understand far better than Whitehall ever could. I hope the Minister will take these amendments seriously. I beg to move.

Lord Shipley Portrait Lord Shipley (LD)
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My Lords, the noble Baroness, Lady Scott of Bybrook, has just said that she hopes the Government will pay detailed attention to the amendments in this and the previous group, because the importance of this issue is so great that Governments need to act. We cannot go on with the rising number of young people who are unemployed. I support the amendments in this group, as I did those in the previous one.

English Devolution and Community Empowerment Bill

Debate between Baroness Scott of Bybrook and Lord Shipley
Baroness Scott of Bybrook Portrait Baroness Scott of Bybrook (Con)
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My Lords, first, before I start, I wish a belated happy birthday for yesterday to the Minister. I hear it was a big one, and I hope she enjoyed it. Secondly, I declare my interests as a vice-president of the Local Government Association and a vice-president of the National Association of Local Councils.

I am pleased to open the debate today on the first amendment on the first day in Committee on a set of important principles that should guide the remainder of our debate on the Bill. I must also say, with respect, that the Title of the Bill still promises rather more than its text delivers. It speaks of devolution and community empowerment, yet too often it reads as central direction dressed up as local choice. We can and we should do better than that.

Amendment 1 in my name and that of my noble friend Lord Jamieson goes back to first principles: the purpose of this Act. It asks the Government to be clear in the Bill that we will champion consent over compulsion, secure sustainable council finances without unfunded mandates, protect social care with stronger local accountability, support local growth through devolved powers, and enable flexible, locally driven housebuilding and planning. These are not abstract aspirations. They are the everyday tests by which our residents judge whether devolution is real and beneficial to their lives.

Proper devolution is built, not imposed. It is negotiated, not mandated. It respects identity, geography and local choice. That has been a consistent theme in the debate on this Bill: concern that the centre would gain broad powers to redraw local structures, create strategic authorities, consolidate councils and impose mayors without clear and explicit local consent. That is not empowerment; it is compulsion. At Second Reading, many noble Lords raised precisely this point, and we did so again when the Government proposed to commit this Bill, a constitutional Bill, to Grand Committee without the agreement of the usual channels. Process matters because it reveals intent.

Our amendment therefore states plainly that the Bill’s first purpose should be to strengthen community empowerment by championing consent over compulsion. Noble Lords might think that that should be a given in a Bill called the English Devolution and Community Empowerment Bill, but the detail of the Bill does not follow. It risks a power grab, enabling Ministers to force reorganisations and mayoralties on areas that have previously said no and even to postpone local elections to fit a central timetable. That is not how you build trust.

Local government cannot be rebuilt on financial quicksand. We all know how many councils have come to the brink. We have heard repeated warnings about local government reorganisations that promise continual savings but deliver costly transitions and do not make any of those savings into the future, and about new duties placed on councils, such as social care or regulation, but without the resources to meet them.

The second purpose listed in the amendment calls for a simple commitment: no unfunded mandates. If the Government wish to assign functions downwards, they should assign the means to discharge them as well; otherwise, we will set up local leaders to fail and then blame them for that failure. That is not partnership; it is abdication. Commons colleagues pressed this exact point at Second Reading and on Report: stop hoarding power in Whitehall while offloading pressures on to town halls. Put the principle of fiscal sustainability into law and plan reforms accordingly. If we do not do so, we risk even more tax rises through the back door.

Nowhere is the risk of failed devolution clearer than in adult and children’s social care. Every noble Lord who has served in local government, of whom there are many, understands the arithmetic, the demography, the demand and the duty. This does not change where local government is organised or reorganised. If we devolve responsibility with capacity, we will simply move waiting lists from one council to another and call it reform.

The amendment’s third principle seeks to

“protect vital social care services and enhance local accountability”

for outcomes, with transparent reporting to the people who depend on them. Reorganisation cannot become a distraction from stabilising the front line. We need to understand how this is going to work. Social care is perhaps the biggest responsibility of local government, yet the Bill does not even mention those words.

Growth is not ordained by Ministers; it is enabled by place and by leaders who know their patch and who can unlock a stalled site or knit together skills, transport and planning to make things happen. The Government’s own narrative for the Bill claims that it is the biggest transfer of power from Whitehall in a generation. If that is truly the case, the test is simple: will local leaders get the levers they need, or are we just creating authorities that must still ask for permission for every pilot, every power and every penny? Our amendment’s fourth principle states a purpose to

“support local growth through devolved powers and locally led decision-making”.

Finally, on housing, communities will support more houses when homes make sense: the right homes, in the right place, with the right infrastructure. That is achieved through locally driven planning that takes communities with it—not rigid national targets that ignore character, capacity or constraint. The Government speak about flexibility, but our amendment would require it. It would clarify that the Act’s intent is to

“enable flexible and locally driven housebuilding and planning to meet community needs”.

This is perfectly compatible with ambition, but it rejects the idea that Whitehall always knows best.

This purpose clause would not blow the Bill off course but set its course. It states exactly what Ministers say they want to achieve: empowerment, sustainability, accountability, growth and locally led planning. If the Government mean what they say about handing power back to local people, they should welcome having this in the Bill. I beg to move.

Lord Shipley Portrait Lord Shipley (LD)
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My Lords, I declare at the outset that I have been a vice-president of the Local Government Association for a number of years. The noble Baroness, Lady Scott of Bybrook, said many things with which I agree. We are in a position where we are seeing the cumulative impact of many years of underfunding—serious underfunding of both local government and problems such as adult social care, to which the noble Baroness referred—for which a proper policy has never ever been devised.

I want to be clear that we are in favour of strategic authorities that can drive growth. I am, however, bothered about the potential for upwards mission creep, on which the electorate have no direct say other than via the election of a mayor every few years. So I see this Bill not as a destination but as a staging post towards something that genuinely devolves power.

I went first to the overview of the Bill, given that this amendment seeks to define the Bill’s purpose. In the Explanatory Notes, the Government have indeed done that. I shall read it out, if I may. It is very short:

“The purpose of the English Devolution and Community Empowerment Bill is to transfer power out of Whitehall, by giving local leaders the tools to deliver growth, fixing the foundations of local government, and empowering communities”.


There is great potential in the Bill for delivering growth. However, I do not think that it fixes the foundations of local government or that it empowers communities. As we go through the Committee stage, I hope that this will become clearer.

In Amendment 1, the purpose of the Bill has been redefined by the noble Baroness, Lady Scott of Bybrook. It has some things in it and other things are not in it. I hope that the Minister will try to explain in greater detail how the Bill does deliver devolution. There are two amendments in the name of my noble friend Lady Pinnock. I should tell the Committee that I am standing here because my noble friend is not able to do so. We hope that she will, in the next two or three weeks, be walking much better than she has been able to and will return to your Lordships’ House. I send our very best wishes to her and I hope on behalf of the whole Committee, as I am sure that that is shared by everybody.

In Amendment 95, my noble friend has explained what she thinks the Secretary of State’s statutory duty should be in terms of strategic authorities. Amendment 95 is very important, because it specifies that the role of local government is to be

“the primary democratic institution responsible for the leadership, coordination and long-term stewardship of local areas”.

We have to be clear, and I hope that the Minister will confirm, that that is what the Government think. Secondly, it says:

“Arrangements for strategic authorities must be framed so as to enable constituent local authorities to … pursue a long-term vision for the … development of their areas”.


We need to be clear that they

“exercise convening and coordinating functions in relation to public, private, voluntary and community sector bodies”

and that it is their job to

“integrate the provision of local services with wider economic, social and environmental outcomes”.

The conclusion in proposed new subsection (3) is that, in discharging this duty,

“the Secretary of State must not treat local authorities solely as administrative or delivery bodies for national policy”.

This is a fundamental problem. It is not clear to me from reading and rereading the Bill that that is actually the situation, so I look to the Minister to say that the Government indeed agree with that. We should bear in mind that it was the 2007 Lyons Inquiry into Local Government, under a Labour Government, that clarified that the role of local government was to provide

“democratic, place-based leadership and long-term stewardship of local areas, rather than acting solely as a delivery arm of central government”.

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Baroness Scott of Bybrook Portrait Baroness Scott of Bybrook (Con)
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My Lords, this has been an interesting debate. I have found that some of my views have changed slightly as I have listened to noble Lords. The amendment in the name of the noble Baroness, Lady Royall of Blaisdon, seeks to add rural affairs to the list of competences. Given the distinct challenges faced by rural communities, from connectivity to service provision and economic resilience, it is reasonable to ask whether the Bill adequately reflects the needs of communities.

While I was listening to the noble Baroness, I realised that I have concerns that in areas with large urban areas as well as rural areas, those urban areas could take out capacity and investment from the rural areas. When I go back into my history in local government, I remember the regional development agencies that did exactly that. I do not think that Wiltshire got a penny from the regional development agency; all of it went to Bristol and Bath. The Government should look at that to ensure that it does not happen now.

Amendments 52, 56 and 60, in the name of my noble friend Lady McIntosh of Pickering, relate to the appointment of a commissioner for rural affairs. I thank her for her extensive knowledge of this issue. She is right that rural affairs need to be at the forefront of policy-making, especially in authorities that may be predominantly rural but could be a mixture. However, I harbour some reservations about requiring mayors to appoint commissioners with competence for rural affairs. I believe that rural affairs should be a priority for the mayors themselves—the unitary authorities that make up the commission will, I assume, be both rural and urban—rather than delegating this responsibility to one commissioner.

We should remember that competences are not the same as powers or capabilities. Moreover, allowing mayors to make these appointments may result in the appointment of yes-men for the mayors, rather than individuals who could provide independent, robust scrutiny on behalf of rural communities. While I fully appreciate the intent behind these amendments, I am yet to be convinced that mayoral appointments of rural affairs commissioners will be the right mechanism to ensure that rural voices are heard.

Amendment 128 is also from the noble Baroness, Lady Royall of Blaisdon; I thank her for her continued commitment to rural issues. As I have said, it should be a fundamental priority for any authority covering rural areas to consider their particular needs, especially at a time when these communities are being required to absorb substantial housing targets and sprawling solar farms. They deserve a meaningful say if this Bill is really about community empowerment. As I have said, I have a real problem with the mixture of urban and rural, and the issue of the rural voice coming through.

The amendment from the noble Baroness, Lady Bennett of Manor Castle, raises the vital question of public and active transport provision in rural areas. Many of us who have been rural leaders over many years have struggled not just with providing that but with its cost and with making it the right type of transport for a particular area. The noble Baroness is absolutely right to highlight the need for infrastructure that is tailored to rural lifestyles and connectivity.

Since I am talking about connectivity, I will turn to another form: technology. When I go back to Norfolk, I can never get anything on my machine or any other machine. There is no IT and no phone connection whatever. Many of our rural areas are like that. There is a two-tier system in this country for technology, but that cannot go on.

Finally, Amendment 260, tabled by my noble friend Lady McIntosh of Pickering, underscores that the impact of the Bill on rural areas has not yet been fully thought-through. That is the big issue for me. It is entirely reasonable to expect the Government to be transparent about the costs and benefits for rural communities. They have to go back to the drawing board to look at how we can ensure that our rural communities have equal access to the capacity, capabilities and finances that the mayoral authorities will have and that the new unitary councils will be able to use.

I look forward to the Minister’s response on how the Bill can recognise and enshrine the needs of rural communities, which we have heard this evening. At the moment, rural communities are feeling a bit let down by the Government, and this is an absolutely key opportunity to change that.

Lord Shipley Portrait Lord Shipley (LD)
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My Lords, I agree with the noble Baroness, Lady Scott of Bybrook. What she said was very important: the Government have to go back to the drawing board on the issue of rural areas. I can imagine an argument that says that it is implicit in all the areas of competence that all those people will take responsibility for rural areas. However, it is my view that that will not be sufficient. In an earlier group, I discussed how the regional development agencies had a role in rural development. It is very important that the Government go back in order to get this right.

I agree with the noble Baroness when she said that it may not be a commissioner who would do this. In my view, doing that requires the knowledge of a council leader from a rural council, because the relevant immediate knowledge is needed. The noble Baroness was absolutely right to ask whether the Government would go back to the drawing board. I hope that, by Report, the list of areas of competence for strategic authorities is revised, so that rural areas are seen to be protected and developed by the structure. Otherwise, there will be public opposition to the strategic authority, for the reasons that the noble Baroness identified in relation to Wiltshire. I have heard that in most RDAs the money goes to the urban areas. That happens—it has often been the case—because the immediate growth can be delivered in an area of high population, whereas the long-term growth in a rural area can be delivered by financial support at a lower pace.

Planning and Infrastructure Bill

Debate between Baroness Scott of Bybrook and Lord Shipley
Lord Shipley Portrait Lord Shipley (LD)
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My Lords, in the absence of other speakers, I am interested in the points made by the noble Lord, Lord Fuller, and will be even more interested in the Minister’s response, bearing in mind what I said in the previous group about management of risk and who underpins a development corporation in the event of financial loss.

Amendment 197 is very important. There are two issues: the automatic

“removal of hope value from the valuation of the relevant land”

proposed for development and, secondly, whether land purchases by development corporations should be seen as

“public sector investments to be counted against departmental expenditure limits”.

This amendment in the name of the noble Lord, Lord Liddle, is important and I hope that the Minister will respond to it.

Baroness Scott of Bybrook Portrait Baroness Scott of Bybrook (Con)
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My Lords, I thank my noble friend Lord Fuller for his amendments. The financing of development corporations is an important issue and we will continue to engage on it. I look forward to the views of Sir Michael Lyons’s task force on the issues raised by noble Lords in this and the previous group on the financial aspects of development corporations.

We need to ensure that financing is long term and sustainable. If corporations are to take on debt to fund infrastructure, they and their lenders will need confidence that the debt will be repaid. This is a particular issue as a current Government cannot bind a future one. I will not comment on the issues in Amendment 197 as it has not been spoken to, but I assume that they will be discussed in group seven.

Renters’ Rights Bill

Debate between Baroness Scott of Bybrook and Lord Shipley
Tuesday 15th July 2025

(7 months ago)

Lords Chamber
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Lord Shipley Portrait Lord Shipley (LD)
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My Lords, in moving Amendment 107, I will also speak to Amendment 108. These amendments would remove unnecessary barriers to the use of licensing schemes to improve housing standards. Licensing raises housing standards: it can help to regenerate areas that are blighted by poor housing and other social problems. Licensing provides a means for local authorities to inspect privately rented housing using enforceable conditions, and to identify and resolve problems without the need for tenants to have complained.

Licensing schemes pay for themselves through the fees that are charged and enable local authorities to target regulation where it is most needed: in other words, at tackling the worst landlords and supporting the most vulnerable tenants. My amendments would remove unnecessary barriers to the effectiveness of licensing schemes and increase the maximum duration of schemes from five years to 10 years.

Amendment 107 would permit local authorities operating selective licensing schemes to use licence conditions to improve the physical state of the licensed properties. It would remove a peculiar disconnect in current legislation, highlighted by the Chartered Institute of Environmental Health, whereby local authorities are permitted to introduce selective licensing schemes to address poor housing but are not permitted to include in the licences themselves conditions requiring the physical state of the licensed properties to be improved. The amendment would give local authorities the same discretion in relation to the licence conditions used in selective licensing schemes as they already have in relation to licence conditions used in additional HMO licensing schemes.

In Committee, the Government implied that the introduction of a decent homes standard and Awaab’s law to the private rented sector will make this amendment unnecessary. However, I do not accept that view. Neither the decent homes standard nor Awaab’s law will remove the need for local authorities to be able to use licence conditions to deal proactively with general disrepair in areas with poor housing conditions.

There are four reasons why the decent homes standard will not remove the need for local authorities to be able to use licence conditions in this way. First, when licence conditions are in place, if a breach of these conditions is proved, local authorities can serve a civil penalty notice on the landlord without first having to issue an improvement notice and/or take other action that involves unnecessary delay. However, they will be able to do this for breaches of the proposed decent homes standard only in more serious cases—possibly only where there is a serious and immediate risk to a person’s health and safety—and only where they can prove that the landlord has failed to take reasonably practicable steps to address the issue. Licence conditions would therefore give landlords a much stronger incentive than the decent homes standard to address general disrepair.

Secondly, the enforcement of licence conditions can be funded by licence fees. The cost of enforcing the decent homes standard will fall on council tax payers. In practice, therefore, the use of licence conditions would lead to local authorities undertaking a much higher level of enforcement.

Thirdly, licence conditions give local authorities a clear justification as well as sufficient funding for entering properties to carry out inspections without the tenant having complained. It seems likely that, outside of licensing schemes, the vast majority of inspections under the decent homes standard will be in response to complaints. Fourthly, licence conditions could deal with items of disrepair that would be difficult to address using the decent homes standard.

With regard to Awaab’s law, it will not remove the need for local authorities to be able to use licence conditions to deal proactively with general disrepair in areas with poor housing conditions. The enforcement of Awaab’s law will depend on the ability and willingness of tenants themselves to seek redress and ultimately to take legal action through the courts. It is often difficult for tenants to use legal remedies themselves; areas with poor housing conditions contain many poor and vulnerable tenants, who are particularly badly placed to do so. Licensing would clearly be a much better way of targeting support at them.

Amendment 108 would permit local authorities to implement longer additional HMO licensing schemes and selective licensing schemes without repeating the time-consuming and expensive designation process. Local authorities introduced these schemes to bring about large-scale improvements, but those are unlikely to be fully achieved within five years. This amendment would allow them to advertise longer-term posts for staff and to include training of new staff in these schemes. It would also provide more time for local partnerships formed through such schemes—for example, to resolve anti-social behaviour—to become embedded and effective.

The Government suggested in Committee that a maximum duration for licensing schemes of five years strikes the right balance between the needs of local authorities and the needs of landlords. But that does not take proper account of the time and money wasted through councils being unnecessarily required to repeat the designation process.

In conclusion, the removal of these unnecessary barriers to the effectiveness of licensing schemes would make a major contribution to the regeneration of some of the most deprived areas of the country. A new general approval to establish selective licensing areas came into effect last December, and local authorities are no longer required to obtain confirmation from the Secretary of State before implementing a selective licensing scheme of any size. That is most welcome, but it needs to be accompanied with the powers identified in my amendments, and I hope the Government will now understand the importance of them. I beg to move.

Baroness Scott of Bybrook Portrait Baroness Scott of Bybrook (Con)
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My Lords, I thank the noble Lord, Lord Shipley, for bringing these two amendments once again to the attention of the House. However, we on these Benches do not consider them to be necessary. We recognise and wholeheartedly share the noble Lord’s ambition to see housing conditions improved. When I was in government, I was proud to support the decent homes standard and helped to lay the groundwork for what has now become Awaab’s law. The Government’s approach should be focused on delivering tangible improvements to living conditions. This includes tackling poor-quality housing wherever it exists, not slowly within selective licensing areas.

Renters’ Rights Bill

Debate between Baroness Scott of Bybrook and Lord Shipley
Monday 7th July 2025

(7 months, 1 week ago)

Lords Chamber
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Lord Shipley Portrait Lord Shipley (LD)
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My Lords, in moving Amendment 68 I will speak to Amendments 69 to 71. This issue was not raised in Committee but it is sufficiently important—again I thank Citizens Advice for raising it—to be discussed on Report. I assure the Minister that I do not wish to press these amendments to a vote, but I hope the Minister might be willing to take away the questions raised in this group to assess whether further amendments are needed at Third Reading.

The amendments in this group

“seek to prevent a landlord from serving a notice (under section 8 of the Housing Act 1988) to seek possession of a property where a tenancy deposit has not been properly protected or the relevant statutory requirements in relation to the deposit have not been complied with”.

Citizens Advice has advised me that the tenancy deposit protection scheme will be significantly weakened if it remains the case in the Bill that landlords will not need to protect tenants’ deposits prior to serving notice, and that this would be a departure from the current position. Reverting to the requirement that a landlord must be compliant at the point that notice is served would give far greater certainty and avoid wasted court time in cases where a tenant may not have known up until the last minute whether a valid defence existed. The tenant may believe that they have a defence, because the deposit has been taken and not protected, but then find that the landlord protects or returns the deposit to them at the very last minute, potentially on the morning of the court hearing. That makes it very difficult for tenants to make informed decisions about defending a claim.

The Bill says:

“Where a tenancy deposit has been paid in connection with an assured tenancy, the court may make an order for possession of the dwelling-house let on the assured tenancy only if the tenancy deposit is being held in accordance with an authorised scheme”.


My Amendment 68 would amend this to say that where a deposit has been paid in connection with an assured tenancy,

“no notice of proceedings for possession under section 8 of the Housing Act 1988 (notice of proceedings for possession) may be given at a time when the deposit is not”

being held.

Over 600 clients every month ask Citizens Advice for help with tenancy deposit return issues of various kinds, and things will only worsen if the protections are weakened. I hope the Minister will be able to reassure the House that deposit protection will be strengthened during the passage of the Bill and that no notice of proceedings for possession may be given at a time when the deposit is not being held in accordance with an authorised scheme.

Baroness Scott of Bybrook Portrait Baroness Scott of Bybrook (Con)
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My Lords, I thank the noble Lord, Lord Shipley, for bringing this group of amendments to the attention of the House. However, we do not believe that these amendments are necessary. Tenants already have clear rights and remedies when it comes to deposit protection. A tenant can easily check online whether their deposit has been lodged in a government-approved protection scheme. If it has not been properly protected and the issue remains unresolved, the tenant has the right to take the landlord to court.

In such cases, the court may order the landlord to return or protect the deposit, and may even award the tenant three times the value of that deposit as compensation. These are significant penalties and they serve as a strong incentive for landlords to comply with the law. Given that eviction proceedings are already subject to considerable safeguards and restrictions, we are not convinced that removing Section 8 grounds in these circumstances is either proportionate or necessary.

In particular, we must ensure that where a genuine error has been made and later rectified, especially where there is no actual harm or financial loss to the tenant, landlords are not barred from recovering possession of their property. To do so would seem unjust. A more flexible and proportionate approach would promote better compliance while avoiding unnecessary hardship or deterrence to good-faith landlords.

Although we fully understand the intentions behind these amendments, having heard the reasoning of the noble Lord, Lord Shipley, we believe that existing protections for tenants are robust and that further restrictions of this kind risk being disproportionate.

Non-Domestic Rating (Multipliers and Private Schools) Bill

Debate between Baroness Scott of Bybrook and Lord Shipley
Baroness Scott of Bybrook Portrait Baroness Scott of Bybrook (Con)
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My Lords, I rise to move Amendment 3 in my name and to speak to its consequential Amendments 8, 12 and 16.

These amendments seek to retain the standard multiplier for anchor stores, given their ability to drive business on our high streets. Throughout Committee, there were several noble Lords who acknowledged the importance of these stores and the role they play in the commercial ecosystem of our high streets up and down this country. I thank the noble Lord, Lord Thurlow, and the noble Baroness, Lady Pinnock, for their support on this matter.

As anyone who has worked in local government will know, when you get an anchor store such as a large Tesco, M&S or Primark—or one of those rare but well-loved independent department stores—on the high street, it allows the high street to flourish. I can certainly attest to that from my experience. The importance of these stores absolutely cannot be overstated. Without them, many high streets would seriously suffer due to the reduced footfall.

It is those very shops that draw people to the high street, and their presence encourages people to spend in the smaller, independent businesses. So the reason that these anchor stores should not be subject to the changes in the Bill is due to their role in aiding those small businesses. The Government claim that the Bill helps small businesses because it will leave them with reduced business rates, but if the anchor stores move away from the high street, they will not be able to sustain themselves at all. The Minister has many times continued to state that there are only a few of these stores in number, but if it is your high street that contains one of these, or if you want to bring one into your high street, then it is very important to you.

Not only will this push current stores away from the high street, but it will also mean that in future, when businesses are evaluating where to open new branches, they will be increasingly likely to choose locations out of town, where property costs less and where they will not be forced to pay the new higher multiplier. Large businesses will leave town centres, and I am concerned about the impact that that will have on the future of our high streets and the reduction in footfall that it will cause.

If the Government continue to increase costs on businesses in the same way as they have begun, there will not be any businesses left on our high streets to tax. The combination of the minimum wage, which we support, and the increase in employers’ national insurance has already led to many businesses increasing their costs or reducing their head count. This may well not be the most costly tax they face, but it could end up being the straw that breaks the camel’s back.

My amendments would give the Treasury the power to define specifically what an anchor store is. I am sure we are all aware that it is not the easiest term to specify, as the Minister mentioned in Committee. I understand that it might be difficult but, with the input of or indeed the discretion for local authorities included, I am sure the definition can easily be reached.

In order to safeguard our high streets, we must protect the businesses that allow them to thrive. We understand the need to create a more fair and equitable system, but that is not what the Bill promotes. As such, we are highly concerned about the consequences, whether intentional or not, that it will have.

I look forward to hearing from the noble Lord, Lord Fox, on the topic of manufacturing. It is a sector of huge importance and must be protected.

I hope the Minister will recognise the importance of exempting these stores and will accept these amendments. If he does not, I intend to test the opinion of the House.

Lord Shipley Portrait Lord Shipley (LD)
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My Lords, I support the amendment by the noble Baroness, Lady Scott of Bybrook. The issue of anchor stores seems fundamental in increasing footfall into traditional shopping centres, and it is right that there should be a power to exempt those anchor stores from higher rates.

One note of caution that I want to mention is that a Government would need to ensure that there was not a tendency by landlords to try to increase rents in the face of lower business rates. I am sure there are ways in which that can be done. Where councils are the landlord then they would have control of that, but when the landlord is in the private sector we need a mechanism to ensure that that can be done—and it should be done. If the noble Baroness decides to test the opinion of the House, I am sure she will have the support of these Benches.

The noble Baroness, Lady Scott, mentioned Amendment 4 on manufacturing. My noble friend Fox is in another meeting in the House at this very minute, so I will be saying a few things about that amendment. It is important that something is done to support the manufacturing sector. There has been a drop in confidence in the sector since the autumn. There is a big increase in manufacturers’ costs. Reductions in markets, making business development more difficult, have become very clear. Orders in general are reported to be smaller in size. The Brexit impact urgently requires a reset with the European Union. Manufacturing industry has high energy costs, and there are now concerns surrounding tariffs which are affecting confidence.