Local Authorities (Conduct of Referendums) (England) Regulations 2012

Lord Grocott Excerpts

Monday 6th February 2012 Lords Chamber

[Lord Shipley]

It is too low, but of course, local elections and leaders of councils are being elected in practice on similar numbers. So no, the point is not material. The fact is that the people of Salford have voted for an elected mayor. It is simply not the case that there is no apparent public support for elected mayors. I believe that we should test the public view. That was agreed as part of the Localism Act, and we should not regret that but should test the public opinion.

[Lord Grocott]

My Lords, I cannot claim any direct interest in the cities that have been selected for these various orders, though I have lived in the West Midlands for many years. I have a particular interest, almost a responsibility, to mention Birmingham. The House may know that my noble friend Lord Corbett has not been very well lately but he would undoubtedly have been here otherwise, and I know that he would have said that this is a daft idea. I know this because I checked with him when I saw him this morning. Although he takes no responsibility whatever for the arguments that I propose, perhaps this could be taken as, to a degree, a reflection of his views as someone who for many years was an outstanding Member of Parliament for the city of Birmingham.

I must take issue briefly with the comments that we have just heard, not least on the argument about direct democracy as if it is somehow more legitimate if a mayor is elected by the whole population of the area rather than being elected by some other mechanism. This is essentially an argument for a presidential system, because I very much doubt whether the noble Lord, Lord Shipley, would say that the Prime Minister has less authority because he is not directly elected by the population as a whole. I, for one, infinitely prefer our parliamentary system, which is basically how our local government system has operated, in much the same way that the Government is decided in the House of Commons. Executive heads are essentially chosen by their peers, and over a period of years their strengths and weaknesses are tested and observed. Although, regrettably, the mayoral system was introduced by a Government whom I supported on most things, it has always seemed to me an attempt to graft a different system from abroad—an alien system sounds so unpleasant—which has no roots in this country. That is the basis of my objection.

I have one or two detailed points to make. The argument that has just been advanced by the noble Lord, Lord Shipley, was that the Government are simply asking local people for their opinions. His position is that it is up to local people to make their minds up. A very skewed question is being put, in the sense that the Government are insisting that these local authorities hold referenda, which seems to be at total variance with all the impassioned speeches we have heard about localism from the Benches opposite. However, it is worse than that, because the Government are insisting that these tests of local opinion shall only be held in those local authority areas which currently do not have a mayoral system. I would have felt slightly more comfortable—but not a lot more—if they had asked one or two of those local authorities that have had experience of this mayoral system over the last 10 years whether they thought it was a good idea to continue with that method of local government. In the one test we have had—in good old Stoke, home of the mighty Potters—the people of Stoke have said, “Thank you very much. We have tried this system out for the past few years and we do not think there is very much to it”. I guess that may well be the response of a number of other local authorities should members of the public locally be asked their opinion. However, the Government say, “No, we are not going to ask questions in those areas—only in other areas—and they shall have these referenda whether they want them or not”. The only question I want to ask is: where is the demand? There is no evidence of demand that I have seen for locally elected mayors in any of the places where compulsorily they must hold a referendum.

We have already mentioned that the turnout in Salford was 18 per cent, which, as my noble friend on the Front Bench pointed out, and I agree wholeheartedly with everything he said, is hardly a resounding acclamation for the system—and that is the turnout, not the vote in favour. On the turnouts for some of the referenda we have had so far, in Sunderland it was 10 per cent, in Ealing it was 10 per cent, in Southwark it was 11 per cent—which I suppose is an improvement—and two-thirds of the areas have rejected the idea. I hope very much that the ones that are being tested in this compulsory vote will also reject the idea.

As to the cost in these straitened times—which the Government Benches constantly remind us about—it will be £2.5 million for the referendums. That is about a quarter of a million pounds for each one that is held. Is this really a priority that local people want in these difficult times? I ask, rhetorically, the two previous speakers who have both led their local authority that, if they had been given a quarter of a million pounds, at what point would they have thought the best way to spend it was to hold a referendum on changing the system of local government.

It is, of course, not only the cost of the referendum but should the vote go in favour, there will be the cost of the reorganisation. I have raised this issue already with the noble Baroness, Lady Hanham, and she said in Committee, rather optimistically, that it would depend on the kind of mayoral system that is adopted, which is true. She said:

“The mayor comes in and it might need to provide him with a room. He will probably need a couple of members of staff”.

I think that is fairly unlikely. She continued:

“I do not anticipate there being a huge extra cost to the council as a result of this”.—[Official Report, 17/1/12; col. GC 146.]

The noble Baroness is very experienced and respected in local government and we do not know whether she is right or I am right in saying that it will cost a lot more than a room and a couple of officers whatever system gets adopted. I cannot think of why on earth we should want to go down that road and spend that amount of money. Certainly, as someone who does not live in London but who watches the mayoral system as it goes on, I cannot believe that it is cheap. Perhaps it is, I do not know the figures, but I would like to ask the Minister—I gave notice to her office about this—whether she can tell us what the government of London cost in the last year under the old system for its head office administration, not for individual services, and what it costs now. I would bet a few shillings that the cost has not gone down. I hope the figures are there somewhere.

My noble friend Lord Beecham asked: what are the benefits of the system? It has been running for 10 years or so in many councils so we ought to know by now. The Government make grandiose claims about it in the supporting document. The Explanatory Memorandum states that the Government believe that,

“directly elected mayors … enhance their city’s prestige and maximise the potential for local economic growth”.

So I have to tell the two previous leaders of Newcastle council that, according to the Government, you failed. If you had been directly elected mayors, the place would be zooming.

[Lord Bradley]

On that point, the acclaimed regeneration of the City of Manchester is widely acknowledged to be on the basis of the stability of the political leadership over the past 28 years, when there have been only two leaders of the council. Businesses and civic institutions work closely with that leadership and have been able to plan, over those years, the regeneration which is a model for cities throughout the country.

[Lord Grocott]

That is a fulsome testimony which is entirely justified. I do not know of a shred of evidence to show that in the past 10 years London has been far better managed and that far more prestige has been brought to the city than that brought to Newcastle—I mention Newcastle as a name out of the hat— Birmingham or Manchester by the people who led those cities. I could list the other cities as well.

What are the costs and what are the benefits? I hope that in these referenda, which will doubtless go ahead, people will have the good sense of the two-thirds of those who have been asked so far in different parts of the country and say no. I am sorry about the money that will be wasted en route but I am sure they will save their local authorities money if they do say no. Before there is any further development of this scheme I hope that proper costings are made available and proper research is done into the alleged benefits of the system where it has occurred so far. I also hope that other cities will have the opportunity before too long, if the Minister persists with her policy and holds a referendum in a city that does not have a mayor at present, to follow the splendid example of Stoke-on-Trent and say no.

--- Later in debate ---

[The Parliamentary Under-Secretary of State, Department for Communities and Local Government (Baroness Hanham)]

My Lords, the passion at the end was very good. It has been a low-key debate apart from that. I think the noble Baroness, Lady Farrington—if I may hesitantly say so—has quite a short memory, particularly in relation to putting legislation in place before it has been passed. I stood where the noble Lord, Lord Beecham, is on more times than I care to recall, telling the then Government that they were introducing and had almost put into effect legislation before it had been passed. Therefore, I do not accept that challenge to what we are doing here, but I do think the noble Baroness must not forget that that was a situation with practically all the legislation that the previous Government put in place. We must not forget that.

The grant to each local authority is done against a formula—as indeed the previous Government did. We have argued for years over which way the formula was going, one way or the other. People have short memories. We must just all try to remember where we came from.

The noble Lord, Lord Tope, drew attention to the fact that the coalition Government’s programme made it clear that we are committed to creating directly elected mayors. That commitment was carried out in the Localism Act and was a commitment to having a referendum in 12 cities. Those cities are now 11 because Leicester took the decision to move to a mayor under the original provisions in the Local Government Act 2000. The Government believe that there is good evidence that a powerful, dynamic and directly elected mayor can provide strong, visible leadership, increase accountability for local decisions, deliver local economic growth—that is really important—and bring greater prosperity to their city. However, we believe that it is up to the electorates in these cities to decide in a referendum whether they believe that the mayoral model is one that they would wish to embrace. Through directing that referendums take place, we are ensuring that the people have the opportunity to address the question for themselves.

The noble Lord, Lord Grocott, said that the question that was going to be asked was skewed. I remind him that it is set by the independent Electoral Commission and not by the Government.

[Lord Grocott]

My Lords, I did not express myself very well. I said it was skewed in the sense that it was being asked only in those areas that currently do not have a directly elected mayor. It would be a far fairer test if referendums were also being held in areas that already have them and may want to get rid of them, as Stoke did.

[Baroness Hanham]

I hear what the noble Lord says, but that was not a provision in the Localism Act. It provided for referendums in the 12 cities and not for referendums elsewhere or on other mayors that have already been elected under the 2000 Act, which was implemented by his Government.

The heart of the case advanced by the noble Lord, Lord Beecham, is the question of compulsion and the cost of the referendums. We are not requiring any particular outcome for these referendums; we are clear that the decisions about local government are for local people and nothing that we are doing departs from that principle. We are ensuring that people in our larger cities have the opportunity to address the question as to whether they want a mayor for their city. We have made it clear that central government will bear the cost of the referendums, estimated to be about £2.25 million, in line with the long-established new burdens doctrine. On the examples given by the noble Baroness, Lady Farrington, of what her local authority would think about and what people think about, this will come from central Government—