English Devolution and Community Empowerment Bill Debate
Full Debate: Read Full DebateLord Ravensdale
Main Page: Lord Ravensdale (Crossbench - Excepted Hereditary)Department Debates - View all Lord Ravensdale's debates with the Ministry of Housing, Communities and Local Government
(1 day, 8 hours ago)
Grand CommitteeMy Lords, I declare my interest as a chief engineer working for AtkinsRéalis. My Amendment 3 would make a simple change but it highlights something fundamental to the Bill, so I want to spend a bit more time going through it than that single-word change would imply.
In looking through the areas of competence, energy is conspicuous by its absence, given that it will be a central challenge for the country—and, indeed, the mission of the Government—in the coming years. I shall use the Midlands region, where I live, as an example; of course, the first energy transition really started in the Midlands. I recently visited the Science Museum down the road, where there is an excellent example of the Boulton and Watt steam engine, which was brought into use in Birmingham and started to turbocharge the demand for coal and the first energy transition from biomass to fossil fuels.
That was a locally led transition, of course, but today, the Midlands remains the industrial heartland of the UK. We have so many energy-intensive users and heavy manufacturing, ranging from nuclear reactors and aero engines to trains, excavators and cars. As a region, we want to help lead the latest energy transition, as articulated in the recent Midlands Engine’s White Paper on energy security; I chaired the task force to produce that.
For a number of years, I have been making the case that, to date, the energy transition has been delivered in a top-down fashion. We have had many welcome developments, such as the formation of the NESO—the National Energy System Operator—but there is still a sense that this is something being done to communities, rather than bringing them along on the journey. No doubt progress is being made on the regional planning for the local power plant through Great British Energy, but we are not yet in a place where we have a fully joined-up governance system that marries up the necessary top-down view of the energy system and the critical bottom-up view that informs it.
Why is it important to drive the transition locally? First, I have already mentioned bringing local communities along on the journey. We are talking about significant changes to buildings, including changes in how we heat and insulate them, and changes to both grid architecture and next-generation charging. All this will be much more effective if communities are helping to drive this themselves and seeing those benefits.
Secondly, local areas have the knowledge of how best to implement the energy transition. For example, they know their local housing stock best. They know which technologies are best for future heating solutions, whether that means district heating or heat pumps. They know where the grid, the charging and the local generation is.
That feeds into my final point, on costs. The cost of the energy transition is getting significant attention at the moment, but the benefits for the Government here are the cost savings possible with a locally led approach. Billions in savings are possible if the most appropriate solution is brought forward for local areas, using local knowledge rather than one-size-fits-all. Regions and authorities are recognising this and taking action, but the Government need to drive this approach forward and avoid the patchwork nature referred to in our debate on the previous group.
What is needed is proper energy planning, at a local level, which then feeds up into regional plans and, ultimately, into the spatial strategic energy plan for the UK that the NESO is producing. That is when we will have a transition where we bring in all the expertise at a local level, which means the most efficient solutions at the lowest cost. There is an opportunity here for the Government to recognise, in the areas of competence, the centrality of energy to what strategic authorities need to deliver; this would ensure that strategic authorities are delivering on energy for their regions. The Government could use that to define how a bottom-up governance system for energy could work, how that might flow up into the spatial strategic energy plan, how that will interface with GBE and NESO, and so on.
I was grateful to meet the Minister last week. We discussed how paragraph (a) refers to “transport and local infrastructure” and how that is slightly misleading, in that it may give the impression of a focus on transport. The other benefit of this amendment is that it would clarify that first part of Clause 2 and provide clarity in the language on what strategic authorities are trying to deliver. With that, I look forward to hearing from the Minister.
My Lords, I declare my interest as a visual artist. Amendment 4 in my name is a small but important clarifying amendment. It simply adds the words “including through tourism” to paragraph (d) of Clause 2, which already defines “economic development and regeneration” as a core “area of competence” for strategic authorities. This reflects the Local Government Association’s view that tourism should be explicitly recognised in the Bill rather than left implicit.
Tourism is not a marginal activity; it is one of the principal ways in which economic development and regeneration happen in practice. It supports local jobs, sustains town centres, underpins cultural and heritage assets and brings external spending directly into communities. In many places, particularly outside the large cities, it is the economic driver.
I have deliberately not proposed tourism as a stand-alone category nor sought to incorporate it into the important Amendment 6 tabled by the noble Earl, Lord Clancarty, to which I have added my name. His amendment rightly strengthens the strategic recognition of the arts, heritage and creative industries. My amendment is narrower and more operational. It simply makes it clear that tourism sits within economic development and regeneration, which is how local authorities already understand and deliver it in practice.
Too often, tourism is grouped alongside the arts and creative industries in local authority structures, where its scale and commercial focus can unintentionally shape priorities and funding conversations that are not directly about culture itself. Placing tourism clearly within economic development helps to maintain that distinction while allowing cultural policy to retain its own strategic clarity. This matters particularly in the context of the Government’s emerging work on a visitor or tourism levy. Even at modest levels, published estimates suggest that such a levy could raise hundreds of millions of pounds a year in England and potentially over £1 billion annually if applied more widely—sums that would exceed Arts Council England’s entire annual capital budget and be comparable in scale to a decade of lost local authority cultural investment.
In the Cultural Policy Unit’s helpful paper A City Tourism Charge—the noble Earl, Lord Clancarty, will no doubt develop this point further on Amendment 6, with which I entirely agree—there is a strong and well-evidenced case that a significant proportion of any such levy should be invested directly in cultural and heritage assets, which are often the very reason that people visit in the first place. For strategic authorities to play a meaningful role in shaping and deploying such tools, tourism needs to be clearly within scope. Without explicit inclusion, there is a risk that tourism falls between stools—assumed but not quite owned. This amendment provides clarity, not prescription, and I hope that the Minister will see it as a proportionate and helpful addition.
I thank the noble Lord, Lord Mawson, for those additional points. In this Room there are many people from local government, who have spent many years working to make sure that what he called the machinery of state is not interfering with actually delivering at local level. What we are trying to do with the Bill is to make sure that we continue that, but no doubt we will have many discussions about whether or not it is going to work.
It is very important that what we do is driven by local people at local level. The Co-operative Councils’ Innovation Network, which I started with my right honourable colleague from the other end, Steve Reed, about 15 years ago now, sets up pilot projects to show exactly how you start with the impact at local level and then work up to what needs to be done in the machinery to make that work. That is what I want to do but on a national scale, and I hope that the Bill will go a long way towards doing so.
My Lords, I raised a minor point around paragraph (a) in Clause 2—“areas of competence”—which refers to “transport and local infrastructure”. My point is about the wording. That could perhaps be taken to mean local infrastructure related to transport. That is probably not the intention of the Government and this is local infrastructure in general, but perhaps there is an opportunity to clarify that wording.
The noble Lord knows, because we have had the conversation, that I feel that the order of that wording is a little unfortunate. We will reflect on that because it does look as though it is infrastructure related just to transport. That is not the intention of the Bill. The Bill is intended to reflect that the competences will include local infrastructure and transport. If that local infrastructure relates also to transport, well and good, but it might be other infrastructure. So I will reflect on that and come back to the noble Lord.