Freedom of Information Act 2000

Lord Shipley Excerpts

Tuesday 23rd July 2019 Lords Chamber

[Lord Shipley (LD)]

My Lords, I first remind the House of my interests in the register in connection with the Local Government Association. I thank my noble friend Lord McNally for tabling this Question for Short Debate and, like my noble friend Lord Scriven, I give him my full support.

The Freedom of Information Act 2000 has proved itself by adding a direct means for scrutiny of public authorities by the general public and not just by elected politicians. The Burns report of 2016 found that transparency and openness had been enhanced since 2000 and recommended that it should be further enhanced and not restricted.

Last month marked the second anniversary of the Grenfell fire. Grenfell United, in its parliamentary briefing for that anniversary, made seven recommendations, one of which was about freedom of information. It called for,

“an extension of the Freedom of Information Act to cover TMOs”—

tenant management organisations—

“and housing associations, to give tenants the right to see critical information about their homes”.

It seems a basic right for a tenant to have that information and it puzzles me that tenants can be excluded from information that is directly relevant to them.

The context is the failure of successive Governments since 2000 to strengthen the Act. It has limitations and it has fallen behind many other countries. As we have heard, the Information Commissioner has estimated that a third of government spending is used to procure public services. The problem is that more and more services have been provided by contractors who are not accountable under FoI, as the public might expect them to be. The test is whether the contract between the contractor and the public authority gives the authority the power to get the information it wants under the contract: that is, does the contractor hold the information for the purposes of the public authority or for its own purposes? On too many occasions, unfortunately, information that the public might feel they have a right to know is being denied to them. For example, it appears that fire safety defects can be excluded. This cannot be right. Contractors should not be less accountable than the public bodies that used to provide the same services directly.

It is not just PFI or other contractors; it is tenant management organisations as well. In relation to Grenfell, the Kensington and Chelsea Tenant Management Organisation had refused FoI requests on the grounds that it was not a public authority. I find that amazing, but it is true. But worse, the Information Commissioner upheld a refusal in 2012. However, after that appeal process, the Kensington and Chelsea Tenant Management Organisation did respond to some tenant requests for information—but in July 2017 it then refused an FoI request for a report on the emergency lighting system in Grenfell Tower that had been written in 2005. Surely it cannot be right to refuse tenants information of this kind.

The Government need to amend the law. Information of important benefit to the general public should not be withheld from them when it would be available if the public authority had not contracted out the work. The Burns report of 2016 concluded that this was the right approach. The Committee on Standards in Public Life has recently concluded likewise and the Information Commissioner, as we have heard from my noble friend Lord McNally, has called for similar changes. So, the question must be: what is the hold-up? The consequence of delay is doubt and avoidance. In the case of housing associations, it is wrong that their tenants are not able to access the same information council tenants can get.

Two years ago, the housing journal Inside Housing asked more than 60 housing associations for copies of their fire risk assessments. Very few responded. Councils would have had to. I understand that this difference is in the process of being addressed in Scotland. Might we do the same in England? It does not follow that housing associations will have to be redesignated as public organisations if they fall within the FoI remit. This is, as my noble friend Lord McNally said a moment ago, a different world from 2000, but it is the case now that FoI laws are no longer fit for purpose and I hope the Government will act.

Councils: Funding

Lord Shipley Excerpts

Thursday 4th July 2019 Lords Chamber

[Lord Young of Cookham]

Local councillors and local government officials have done remarkably well to maintain, and in some cases improve, the quality of the services they provide despite, since 2010, a reduction in grant until recently, which was necessary to balance the national accounts. I recognise that they have done that without excessive rate increases. Looking forward, I have seen the report to which the noble Lord refers and welcome the Local Government Association’s attempt to quantify the pressure on resources. That information will be used by Ministers to feed into the spending review to make the case for a proper settlement for local government.

[Lord Shipley (LD)]

My Lords, I also remind the House of my vice-presidency of the Local Government Association. Local government will be pleased that the Minister thinks that the sector is doing “remarkably well”. Indeed it is, but does he accept that local government is facing ever-rising costs in service provision at the same time as increasing pressure on income, not least from business rates in the retail sector? Do the Government accept that this situation is turning into a crisis and would benefit from urgent cross-party discussions across national and local government, looking forward to the spending review but also examining fair funding, assumptions about council tax levels and the future of business rates?

[Lord Young of Cookham]

I say to the noble Lord that I was a vice-president of the Local Government Association—until I was expelled for introducing rate-capping in the 1980s. On the serious issue he raises, extra funding announced in last year’s Budget means that the Government will have given councils access to £10 billion of dedicated funding that can be used for adult social care, which is the real pressure point, in the three-year period to 2019-20. That is a combination of the adult social care precept and the better care fund. As for his invitation to cross-party discussions, those are always welcome: it is always helpful to have consensus on how local government is funded. Announcements on fair funding and the business rates retention scheme will be made alongside the decisions of the spending review.

Affordable Housing

Lord Shipley Excerpts

Wednesday 3rd July 2019 Lords Chamber

[Lord Young of Cookham]

I agree with the thrust of my noble friend’s question. The other thing that we have done is that when surplus land becomes available from any government department it is put on a website, and the homes agency has the opportunity to acquire it before anybody else. It can put in a bid and do what he and the noble Lord suggested: to make the land available for housing. We are seeing more such transactions where the land is made available to local authorities or housing associations, and the Government are committed to providing 160,000 homes, I think, by March next year on land that was in government ownership in 2015.

[Lord Shipley (LD)]

My Lords, I refer the House to my interests in the register. A few days ago, at the Housing 2019 conference, the Prime Minister said that,

“we are delivering a whole new approach to social housing … Because this is a Government with a bold vision for housing and a willingness to act on it”.

Can the Minister can tell the House what that bold vision is for social housing?

[Lord Young of Cookham]

Yes, indeed. We announced that we would abolish the cap on the housing revenue account, to enable local authorities to build up to £4 billion- worth of new homes and introduce a new generation of council housing.

Public Procurement and the Civil Society Strategy

Lord Shipley Excerpts

Thursday 23rd May 2019 Lords Chamber

[Lord Shipley (LD)]

My Lords, I should remind the House that I am a vice-president of the Local Government Association. I thank the noble Baroness, Lady McGregor-Smith, for enabling us to have this debate. She made a large number of important points in her speech. I was struck by her observation that the government consultation is too narrow and that far more could be achieved, and particularly by her view that up to 50% of a contract could be related to social value. I was going to say one-third, but if we can reach 50% I would be very happy with that figure.

I also thank the noble Lord, Lord Maude of Horsham, for reminding us about public service mutuals, which seem very important, and the three stages of the procurement process: the pre-tender process; the actual procurement assessment; and then contract management. As he rightly said, all the effort—certainly from Whitehall—seems to go into the middle of those three. In response, I observe that it is very difficult to do the first and the third from Whitehall.

In the debate yesterday on 20 years of devolution to Scotland and Wales in particular—but also to Northern Ireland, of course—I was struck that it has enabled a piloting of ideas in those nations. On procurement policy, the noble Baroness, Lady McGregor-Smith, reminded us that they have much greater pre-market engagement, which means that tenders can be talked about, can be more detailed and can avoid confusion between contractor and provider, with an agreed understanding of the specific outcomes that must be delivered.

It is important that we pause for a moment to consider the context of this debate. The context is that a lot of people in many parts of the country feel left behind. They have low pay and insecure contracts, and many have few opportunities to improve their lives—not least in housing and discretionary spending. Applying the principles of social value should help to reduce inequalities for those people, and for that reason the Government’s current consultation is welcome. It will help to encourage charities—particularly smaller ones— and social enterprises in the delivery of services and will reduce the Government’s dependence on a small number of large companies such as Carillion, with its 420 contracts from central government. It is clearly not in the public interest for such a concentration of contracting to occur.

The Government need to include goods and other works, as well as services, in their procurement policies. Social value should cover all public spending, not just central government spending; I will come back to that in a moment. Also, the consultation that is being undertaken is poor on the potential for procurement to reduce deprivation in specific localities. It is about not just consulting with deprived communities but finding ways of working with them to reduce disadvantage.

I wonder if the Minister will look closely at the 10% minimum weighting the Government propose for assessing the social value component of a contract. That low level could mean that contracts are let with poor social value outcomes. I am not clear why the financial value is set at 30%, when the social value is set at 10%. There are three factors in commissioning: the cost; the quality of what happens as a consequence of that commissioning; and the social value generated. I would like to think the proportions would be a third each, but I guess we could look further than that.

There is a problem of centralised decision-making in England. I mentioned a moment ago the 420 contracts awarded to Carillion basically following a value-for-money exercise. The Government’s procurement decisions have been too dominated by narrow value-for-money policies that seek simply to reduce costs. I remind your Lordships that one Whitehall department’s concentration only on value for money can be another Whitehall department’s extra cost, such as through the benefit system. Too often the silo management of Whitehall does not serve the public interest as well as it might.

There is research showing that up to 20% added value can be obtained from maximising social value in a procurement process. I think that the abolition of government offices in the English regions was a major mistake; those government offices could have led the development of social value in procurement policies at a local and regional level and kept a watching eye on them to ensure that commitments on social value were actually delivered. At present that is difficult to do, because contracting is run from Whitehall—often many hundreds of miles from where the contracts are implemented.

I emphasise that what matters with social value procurement is achieving social outcomes. It is not just about cutting costs, dressed up as value for money. Government at all levels should procure outcomes, not just services for services’ sake. This is a fundamental issue that the Government will need to get to grips with. It is vital that those who commission contracts should have the skills and knowledge to do it properly.

I shall ask the Minister a specific question, which I hope he will be able to reply to. Is local government part of this? The Government have said they want local government to support the use of social value criteria, but it is not clear whether it will be compulsory. I think it should, so I hope the Minister may be able to respond to that.

The Government’s civil society strategy is most certainly a start, not least in defining some key principles. The strategy requires government departments to account for, rather than to consider, social value. So far, so good—but it needs to be a local as well as national strategy. It should enable smaller charities to deliver at a very local level. I submit that only local government can achieve that; Whitehall simply cannot.

Why has statutory guidance not been published for the 2012 Act? There is some guidance but, as I understand it, no statutory guidance. I wonder whether that is wise, because there would be benefits from statutory guidance. I hope that once the consultation is complete, the Government might be willing to produce a guide for voluntary organisations and charities on how to bid effectively for contracts. Many lack the required expertise to pitch a bid at the right level. Of course, if we had government offices, they would be able to help here.

Might the Minister also explain why large construction contracts are out of the scope of the current consultation? There is huge potential here, not least for local apprenticeships, because building takes place in most areas. Creating a trained local labour force can be done all over the country, but it needs to be done in part through improving the social value element of contracting. Otherwise, labour forces can be brought in and do not derive from that local area.

In conclusion, I want to see the scope and strength of the social value Act expanded. I would like to see it applied to all goods, works and services and oblige all public bodies to account for social value when negotiating contracts. The Minister might want to look at whether the Government can do more to audit social value outcomes. I have read in briefings about the possibility of social value budgeting and about local social value champions. I have also read about social value auditing locally. These ideas merit further consideration by the Government.

It may well be that the Government should produce an annual report to Parliament on what they have achieved in terms of the 2012 Act. It is one thing to have independent reports, as we had in 2015 on the functioning of the Act, but maybe there should be an annual report to Parliament. I hope that the Minister might be willing to give some thought to that, because there is a huge opportunity for social value to be expanded across the country and to make a difference to the lives of many people.

--- Later in debate ---

[Lord Young of Cookham (Con)]

My Lords, I begin by thanking my noble friend Lady McGregor-Smith for initiating and introducing this important and timely debate, and thank all noble Lords who have taken part. It is has been a well-informed, consensual and thoughtful debate on a subject that, as many noble Lords have said, is not often discussed. It has been particularly helpful to the Government, since our policy is, as I shall explain, in the process of development.

To sum up the debate, the view is that what we have done is good, but we need to do more, and do it better and faster; that is the message I shall take away. My noble friend Lady McGregor-Smith produced an ambitious menu of reforms, which we take seriously. If I do not address them all, I shall write to her. I know that this subject has been one of her special interests for some time and I very much welcome her input.

My noble friend Lord Maude should be answering this debate as he knows much more about it than almost anyone else. I would like to say how much I welcomed his input when I was working with him. He secured very real changes, reforms and savings in public procurement when he was in office. He reminded me of how things have changed since I was first a Minister some 40 years ago. I remember the narrowly focused, time-consuming, bureaucratic tendering. What a contrast that is with the changes he has introduced: the more flexible, market-oriented approach, which enables the taking account of social value. As he said, he has put this into the DNA and the genes are doing well as they flow around the system. He identified the barriers to entry: the performance bonds, the tender documents and the three-year requirement to produce accounts that have historically stopped some of the SMEs getting involved. I will say a word about that in a moment.

My noble friend mentioned public service mutuals. I remember him championing these in the health service when he was in office. They have an important role to play in delivering high-quality public services. At the moment there are 115 mutuals operating in diverse sectors from health to libraries, delivering approximately £1.6 billion of public services. In January last year, the DCMS launched a package of support worth £1.7 million to help new mutuals to emerge and existing ones to grow and flourish.

My noble friend also asked about the Commissioning Academy, a development programme for senior decision-makers across the public sector. It supports participants to learn from best practice across the country and is a key component in the culture change that many noble Lords have been advocating. We continue to provide leadership through the Commissioning Academy, working with the social enterprise PSTA—the Public Service Transformation Academy. The DDCMS has worked with the PSTA to ensure good commercial practice, promoting early engagement with the market, contract management, and social value.

I was interested in what my noble friend and the noble Lord, Lord Wallace, said about local commissioning and a cross-government approach. Again, perhaps I have been in government too long, but I remember the Property Services Agency, which owned the government estate and the Government Car Service. That was able to look at a town such as Horsham, then look at the totality of the government estate—the DHSS and all the other departments—and engage local contractors. After a time, government departments thought this was a remote, bureaucratic and expensive organisation and demanded autonomy, because we charged them quite a lot to change a lightbulb. It was devolved to local departments, which then discovered that they were all having to replicate particular skills and were losing the ability for local commissioning. We now seem to be moving back towards the PSA model, on which I have an enormous wealth of experience.

My noble friend and one or two other noble Lords mentioned the liquidation of Carillion. That has been used by some, although not in this debate, as a case for stopping the outsourcing of the delivery of public services to the private sector. The Government’s view, and that of previous Governments, is that the private sector has a vital role to play in delivering public services in this country, bringing a range of specialist skills, world-class expertise and deeper knowledge to bear. As we have heard, the public sector is the largest purchaser of goods and services in the UK, spending over £250 billion on procurement. Central government alone accounts for £49 billion of that figure.

As we have heard, there is so much more that the Government could do to create and nurture a vibrant, healthy, innovative, competitive and diverse marketplace of public service suppliers, with values at its heart, where wider social benefits matter and are recognised. This is reflected in the Civil Society Strategy, mentioned by my noble friend, which was published last year. It commits the Government to use their huge buying power to drive social change by championing social value through their commercial activities and levelling the playing field for all types of businesses, including small businesses, voluntary and community-sector organisations and social enterprises—a theme mentioned by many noble Lords in this debate. In turn, that would encourage employment opportunities, develop skills and improve environmental sustainability.

The Public Services (Social Value) Act 2012 already places a requirement on relevant contracting authorities to consider in respect of procurement for services: first, how the economic, environmental and social well-being of the relevant area may be improved by what is being procured; and secondly, how, in conducting the procurement, they might act with a view to securing that improvement. Contracting authorities must also consider whether to consult the market on these issues before the procurement process starts. There have been a number of suggestions during our debate about how that Act might be amended.

I confess to noble Lords something that may already be apparent: that this is a subject with which I was less than familiar before my noble friend tabled the Motion and it fell to me to reply to it. I am a lot wiser after this debate. To get my mind around what was going on, I asked officials for an example of how incorporating social value in the tendering process would lead to a different outcome. They came up with a Ministry of Defence contract with Future Biogas and the energy company EDF to develop an electricity supply for RAF Marham in Norfolk. The MoD could have taken the conventional lowest-price approach, without considering the social, economic and environmental benefits that could flow to the local area, but did not. Instead, it engaged up front with the supply market and developed an ambitious social value plan.

The airbase will now get 95% of its electricity from biogas generated by fermenting crops grown by local farmers, an option which did not exist before the engagement. This will directly save £300,000 a year on electricity costs, but there is more to it than that, which is what struck me. The fuel is a green and sustainable solution, helping to tackle climate change. Locally grown crops will power the plant, supporting the local rural economy and ensuring continued business and employment in the area. Building, running and maintaining the anaerobic digestion plant supports skilled, long-term employment opportunities in Norfolk. Future Biogas employs five highly skilled engineers on site and an apprentice who started a four-year apprenticeship at the end of 2018, and an agricultural contracting business supporting the plant has increased its full-time employees by five and seasonal staff by a further 10. As part of an improved crop-rotation regime, soil quality is boosted and the weed and pest burden lessened, and the digestate output from the plant is a sought-after organic fertiliser, improving yields of food crops and locking up carbon in the soil.

I found that a very helpful illustration of the case for social value and it is that sort of lateral thinking that we want to promote. Other cases were included in the helpful briefings sent to noble Lords for this debate. My noble friend Lady McGregor-Smith mentioned Crossrail, as did my noble friend Lord Pickles. The important thing about RAF Marham is that it is in the Chief Secretary’s constituency. There have been one or two comments about the potential inflexibility of the Treasury in taking social value on board. Perhaps she has now been persuaded by that local example.

In June last year, the Chancellor of the Duchy of Lancaster announced the Government’s intention to extend the application of the 2012 social value Act in central government. While the Act currently requires commissioners to only “consider” social value while awarding contracts, the new proposals will strengthen this further by making it an explicit requirement in central government contracts with the private and third sectors. This work to extend the application of the Act across all central government procurement represents one of the most significant changes in public procurement in recent years. It will ensure that contracts are awarded on the basis of more than just price, looking, as all noble Lords have suggested, at a contract’s social impact too, and giving firms much-deserved recognition for their positive actions in society.

The objective for the Government’s commercial activities will always remain achieving good commercial outcomes for the taxpayer. However, it is right that commissioning and procurement should support social outcomes as well, providing that these outcomes are relevant and proportionate to what is being procured.

A number of noble Lords, including my noble friend Lady McGregor-Smith and the noble Lords, Lord Shipley and Lord Stevenson, wanted the Government to increase the minimum weighting for social value in central government procurement awards from 10% to 20%—or up to 50%, in her case. As mentioned, we launched a consultation paper in March. One of the areas on which we are seeking feedback is whether a minimum 10% weighting is appropriate. The 10% weighting was developed with input from supplier representatives; we are genuinely consulting on this and have an open mind. It is important that we change at a rate that suits each sector. In particular, we want to prevent barriers to entry for SMEs.

The noble Lord, Lord Haskel, and my noble friend Lady McGregor-Smith were worried that public procurement favours large companies. I will say a word about that in a moment. The expanded use of the social value Act is widely recognised as a measure that will encourage greater diversity in public sector supply chains.

The noble Lord, Lord Haskel, warned me that he would raise BSI 95009. The standard is aimed at public and private sector buyers, and proposes a framework for those in procurement to demonstrate or assess trustworthiness, transparency and ethical practice. The Cabinet Office is in discussions with the BSI. We have not yet endorsed the standard, but will consider it most important to ensure that we do not burden suppliers unnecessarily—a point I made earlier—and create barriers to entry for SMEs.

The noble Lord, Lord Shipley, asked if we would show leadership on social value by committing to producing an annual social value budget, showing how much social value has been created by central government procurement each year. On 25 January last year, the Chancellor of the Duchy announced the Government’s intention to extend the application of the social value Act in central government departments. This included a requirement to report on social value.

A number of noble Lords, including the noble Lord, Lord Shipley, asked if we would expand the social value Act to cover goods and works as well as services, so that the value of every penny of public money is maximised. As part of the joint Cabinet Office and DCMS programme of work, central government departments should apply the terms of the social value Act to goods and works, as well as services. There will be markets common to both central government and the wider public sector so it will have a broader impact.

The noble Lord, Lord Shipley, asked whether the social value criteria were compulsory and whether the Government will be using them. The new social value framework will be mandatory for central government departments, their executive agencies and non-departmental bodies for procurements subject to Part 2 of the Public Contracts Regulations.

[Lord Shipley]

My query specifically related to whether it was simply advisory for local government or whether local government should be required to do what central government departments do.

[Lord Young of Cookham]

My understanding is that it is advisory, because it was not included in the mandated list I just read out. If I am wrong I will write to the noble Lord.

The noble Lord asked why the strategy guidance has not been issued and whether we will produce a quick guide on it. We actually published guidance on how to work with central government, including social value, working with the VCSE Crown representative Claire Dove. The DCMS and the Cabinet Office are working with the advisory panel to understand the needs of the sectors and to prepare for the changes to social value. We will work with the sector representative bodies to produce the guidance the noble Lord just asked for.

The noble Lord asked for an annual report on social value procurement. Again, in his announcement in June last year the Chancellor of the Duchy of Lancaster included a requirement for central government departments to report on social value.

I was asked why large government contracts are out of scope for social value procurement. The answer is that the balanced scorecard is already in place to cover procurement of over £10 million. That already covers socioeconomic factors. The new social value framework covers everything below £10 million and above the Public Contracts Regulations threshold.

Non-Domestic Rating (Rates Retention and Levy and Safety Net) (Amendment) and (Levy Account Basis of Distribution) Regulations 2019

Lord Shipley Excerpts

Monday 18th March 2019 Lords Chamber

These are highly technical but important regulations. They will ensure that the business rates retention scheme operates in 2019-20 as was intended and as local authorities expect. I beg to move.

[Lord Shipley (LD)]

The Minister will be grateful for paragraph 8.1 in the Explanatory Memorandum, which states:

“This instrument does not relate to withdrawal from the European Union”.


It is the first statutory instrument today that does not have that status. However, as the Minister said, it is technical but important.

I remind the House that I am a vice-president of the Local Government Association.

I understand that this statutory instrument has to be brought forward every year to enable the rolling 75% business rates retention pilots to take place, which are now being extended to new areas for 2019-20. In that respect the SI is fine. As the Minister stated, it also allows for the new authorities being created out of reorganisation, such as Dorset, to levy business rates. Obviously that is essential. It allows for the return to councils of money which had previously been levied by central government through the business rates account. The total sum amounts to £180 million, which means that the Government will make themselves popular with those receiving it.

Although this is a technical SI, we should reflect that the basis of business rates is under question and under stress, not least because of the pressures on the retail sector. No doubt we shall have opportunities in the future to discuss that issue in greater depth. However, as the Minister said, this is a technical but important statutory instrument and it has our support.

[Lord Beecham (Lab)]

My Lords, I declare my local government interests as vice-president of the LGA and as a councillor in Newcastle.

The noble Lord, Lord Shipley, referred to the present situation in respect of business rates. There is a bland assumption by the Government that there is a uniform approach to what can be raised locally, either by domestic rates or business rates, but that is not the position. The amounts that can be generated vary considerably between authorities and the Government have paid little attention to that disparity, in terms of either council tax or business rates.

The Government are making much of the £180 million they are going to restore to authorities. That is £100 million less than the loss that Newcastle City Council alone has sustained in grants from central government since 2010. It is a pitifully small amount and will make little difference to the efforts of local councils—of all political characters—to maintain local services. This is not a substantial change in favour of local government and the Government have to look again at the wider issues of funding a sector of the economy which has been substantially underfunded for the last eight years.

--- Later in debate ---

[Lord Shipley]

My Lords, I am not sure whether I declared my interest as a vice-president of the Local Government Association. I feel I should do so and remind the House of it.

[Lord Kennedy of Southwark]

I, too, forgot to remind the House that I am a vice-president of the Local Government Association.

Representation of the People (Election Expenses Exclusion) (Amendment) Order 2019

Lord Shipley Excerpts

Thursday 14th February 2019 Lords Chamber

[Lord Young of Cookham (Con)]

My Lords, the election expenses exclusion order brought forward today aims to make significant improvements to the electoral framework. The order proposes that expenses that are reasonably attributable to a candidate’s disability, and which are reasonably incurred, are excluded from a candidate’s electoral spending limits.

Examples of such expenses include, but are not limited to, British Sign Language interpretation for hearing-impaired candidates, the transcription of campaign material into Braille for visually impaired candidates and specialist equipment. This order will also exclude expenses funded from grants provided through the Government’s interim EnAble Fund for Elected Office from electoral spending limits. This £250,000 interim fund will support disabled candidates and help cover disability-related expenses that people might face when seeking elected office, such as those I have listed.

The Government are committed to ensuring that the diversity of the United Kingdom is sufficiently represented in public office. Around one in five of the UK population has a disability, but disabled people remain insufficiently represented in our Parliaments, Assemblies and councils. The proposed changes will help to create a level playing field between candidates with disabilities and candidates without disabilities, enhancing equality of opportunity.

Alongside the proposals put forward today, I will remind the House of the other work being taken on to increase the number of disabled people in public office. This includes the review by my noble friend Lord Holmes of Richmond into opening public appointments to disabled people. We welcome his report’s recommendations, which suggest improvements across each of the key points of the appointment process, from the data the Government hold to attracting applicants, the application process and interviews and assessments. We are confident that the recommendations will enable the Government to understand better the issue, improve the disability data we hold for public appointees and pinpoint effective approaches to increasing the proportion of disabled public appointees. We are currently assessing how these recommendations might be implemented.

The order brought before the House today has a wide remit of application. It will apply UK-wide to all UK parliamentary elections, including by-elections. In England, the order will also apply to local government elections, Mayor of London elections, London Assembly elections, mayoral elections and combined authority mayoral elections. In Northern Ireland, it will apply to Northern Ireland Assembly elections. I can tell noble Lords that the Government plan to lay a second statutory instrument this year to widen the application of this provision to police and crime commissioner elections across England and Wales.

I will turn briefly to the detail of the proposed changes. The election expenses exclusion order excludes expenses that are reasonably attributable to a candidate’s disability and which are reasonably incurred, by substituting a new paragraph 7(a) in Part 2 of Schedule 4A to the Representation of the People Act 1983. Part 2 of Schedule 4A to that Act sets out a list of matters that are “excluded” from being “election expenses” and therefore are not taken into account when calculating a candidate’s electoral spending limits. This ensures parity with electoral spending limits for non-party campaigners. Schedule 8A to the Political Parties, Elections and Referendums Act 2000 excludes reasonable expenses incurred that are reasonably attributable to an individual’s disability from electoral spending limits of non-party campaigners.

I would like to allay concerns about whether the change will require candidates to disclose any disability. It will not. There will be no legal obligation for candidates to report their disability-related expenses. Candidates can declare these expenses if they wish so to do. I would also like to allay concerns that this exclusion could be misused by individuals who want to manipulate their electoral spending limits. The provisions are clear: this exclusion can be used only for expenses that are reasonably incurred and reasonably attributable to a candidate’s disability. Any breach of the spending rules for candidates can be referred to the police and prosecutors for investigation. The order will not give candidates with a disability an advantage. Its purpose is to create a level playing field in respect of electoral spending limits, so that candidates with a disability are not disadvantaged by that disability in standing for election.

We have consulted on the elections expenses exclusion order with the Electoral Commission, the Welsh Government, the Scottish Government and the Northern Ireland Office. There has been cross-government collaboration between the Cabinet Office and the Government Equalities Office. All the consulted stakeholders have been supportive of the proposals. We have also kept the Parliamentary Parties Panel informed of the position with the order.

On a final point, I would like to highlight that it is important that the order is in place as soon as possible so that it can apply at the local government elections in England on 2 May. This order will therefore come into force on the day after the day on which it is made. I commend this order to the House.

[Lord Shipley (LD)]

I thank the Minister for explaining this order and I want to record that I agree with it. It is entirely appropriate that any disability-related expenses in elections should be exempt from spending limits, on principle. That is because it helps disabled candidates to stand for election on equal terms with others. I noted the Minister’s comments about some objections that may have been raised on some of the details—but none is more important than the overall principle of equality of opportunity.

[Lord Kennedy of Southwark (Lab Co-op)]

My Lords, I am very happy to give the order my full support. I was glad that the noble Lord mentioned the political parties panel, because I was going to ask him about it. There is no mention of political parties at all in the consultation referred to in the Explanatory Memorandum. I know that the noble Lord mentioned it in his contribution, because I was going to ask him about it. The bodies listed in the Explanatory Memorandum do not pay election expenses and do not fill out election returns. I am glad that he covered that point. It is important that we keep the political parties informed on all these matters. They can often inform the Government’s thinking in a positive and helpful way. Since the noble Lord answered my question, that is fine. I am very happy to support the order.

Combined Authorities (Mayoral Elections) (Amendment) Order 2019

Lord Shipley Excerpts

Thursday 14th February 2019 Lords Chamber

[Lord Young of Cookham (Con)]

My Lords, in moving this order I shall also speak to the draft Local Authorities (Mayoral Elections) (England and Wales) (Amendment) (England) Regulations 2019.

The order and regulations make changes to the rules governing the conduct of elections of combined authority mayors and local mayors in England. The instruments also make important changes to the electoral framework in relation to candidates standing at these polls. They remove the existing requirement that each candidate’s home address must be published during the election process and be included on the ballot paper at elections of combined authority mayors and local mayors. These changes are designed to enhance the security of candidates standing at these polls and of their families, and to deliver commitments made by the Government in response to recommendations from the Committee on Standards in Public Life.

I should explain that these are two of four instruments that we have brought forward on this issue. In December 2018, we made two statutory instruments that implement the recommendation made by the CSPL in relation to candidates at local government and parish council elections. Electoral law provides that these statutory instruments are made under the negative resolution procedure, and they are therefore not required to be debated in Parliament before being made. This reflects the requirement that the rules for local government and parish council elections are to follow those for UK parliamentary elections. These orders are laid under the affirmative procedure.

Since 2010, candidates at UK parliamentary elections have been able to choose for their home address not to be made public at these polls. The changes we are making in the four instruments that relate to local and parish council elections and to combined authority and local mayoral elections will bring the procedure at these polls into line with that at UK parliamentary elections.

By way of background, in December 2017, the CSPL published its report, Intimidation in Public Life: A Review by the Committee on Standards in Public Life. It made a package of recommendations on ways to enhance the security of those wanting to take part in public life and to reduce the risk of intimidation. This included the recommendation that:

“The Government should bring forward legislation to remove the requirement for candidates standing as local councillors to have their home addresses published on the ballot paper”.


In responding to the CSPL report, the Government accepted this recommendation in relation to local councillors. Indeed, they went further in their response and stated that the practice of removing the requirement for home addresses to be published on the ballot paper should be applied equally to all those standing for election to public office, and should apply to those standing at any level of local authority elections, including for mayoral positions. We are therefore going beyond the CSPL’s report in taking action on this important issue.

As I indicated, in December last year, we made two statutory instruments that implement the recommendation made by the CSPL in relation to candidates at local government and parish council elections. The two instruments we are considering today will apply the changes to the elections of combined authority mayors and local mayors.

The CSPL heard from a number of individuals that the requirement for candidates standing for election as local councillors to publish their home address on the ballot paper has been a significant factor in enabling intimidatory behaviour, and would put people off standing as a council candidate due to that risk of intimidation. A number of former local election candidates stated that the disclosure of their home address enabled intimidatory behaviour to escalate when they subsequently stood as a parliamentary candidate. These personal accounts reinforce the need to take action to address this issue.

I turn briefly to the detail of the proposed changes. Currently, candidates standing at combined authority and local mayoral elections are required to give their home address, which will appear on certain election documents and the ballot paper. The only exception to these existing requirements is for persons standing at combined authority mayoral elections where the mayor will have police and crime commissioner functions. These candidates may already require that their home address is not made public. Under the proposed changes, candidates at any combined authority mayoral election and at all local mayoral elections will not be required to provide their home address on the nomination form or consent to nomination form. In future, candidates at these polls will be required to complete a home address form and to include their home address on it. Candidates will be able to choose that their home address is not made public and so not included on the ballot paper or other electoral documents.

We recognise that we need to strike a balance between transparency of the electoral process and the safety of candidates running for public office. We think it is important for electors to know whether a candidate lives locally and whether they have a link to the area in which they are standing for election. For this reason, under the proposed changes, if a candidate chooses not to make their home address public, they must state the name of the local authority area within which they live; this will appear on the ballot paper, the statement of persons nominated and the notice of poll for the election, instead of the candidate’s home address. Again, we are mindful of the need to ensure that there is openness in the electoral process. We are therefore providing that the home address forms will be available for inspection by certain authorised people, including other candidates standing at the poll.

We have consulted on the two mayoral instruments with the Electoral Commission, the Association of Electoral Administrators and the Society of Local Authority Chief Executives. We have also kept the Parliamentary Parties Panel—which is made up of representatives of the main political parties—informed of the position of the two instruments. There is broad support among stakeholders for the proposed changes.

On a final point, I highlight that it is important that the instruments are in place as soon as possible so that they can apply at the local government elections in England on 2 May. These instruments will therefore come into force on the day after they are made. The instruments presented before the House today make sensible and fair changes to the electoral framework. I commend them to the House.

[Lord Shipley (LD)]

My Lords, I thank the Minister for his explanation of these orders. I am supportive of them. They bring the regulations into line with the election of police and crime commissioners and of Members of Parliament. They also respond to the recommendations of the Committee on Standards in Public Life. It will of course be a voluntary matter and, where an individual candidate makes a decision not to show their home address on the ballot paper, it is right that the local authority area they live in is shown on the ballot paper to assist voters.

It is a finely balanced issue but a decision to allow candidates for the mayoral election not to publish their home address seems justified by the evidence, as long as a candidate whose home address is not shown has their local authority area published on the ballot paper, the statement of persons nominated and the notice of poll. I emphasise to the Minister that my comments relate to mayoral elections, which cover large geographical areas. We will need to look more closely at the precise regulations for local councillors, who have a much more local focus, but that is for another occasion.

[Lord Campbell-Savours (Lab)]

My Lords, it is unfortunate that we are having to move progressively to electoral arrangements in the United Kingdom where candidates’ more personal details, such as their address, are not made available publicly. It seems that we are pursuing the need for security at a cost to transparency, and that has wider implications in all sorts of other areas.

I want to flag up two associated issues. I am surprised that the Liberal Democrats did not come in on one of them: the supplementary vote, which I will now move on to. Why can we not extend the supplementary vote to parish councils? It has been successfully deployed in mayoral elections; any analysis of results under the supplementary vote over recent years shows how successful it has been. Perhaps Ministers might still consider it for the future.

Then there is the question of candidate declarations. We are removing the need for candidates to indicate where they live—albeit not altogether, in that they may publish the area where they live rather than their individual address—but there is an argument for financial declarations by candidates prior to election. It has always struck me that there is far more opportunity for abuse in local government than in Parliament. We often hear of cases at a local level where people have sailed close to the line but within the rules. It may be that pre-election financial declarations are a way of dealing with this problem. I have flagged it up before and got nowhere, but I shall no doubt persist well into the future.

Social Housing

Lord Shipley Excerpts

Thursday 31st January 2019 Lords Chamber

[Lord Shipley (LD)]

My Lords, I remind the House that I am a vice-president of the Local Government Association. First, I congratulate the noble Baroness, Lady Osamor, on her excellent maiden speech, which was rooted in a strong sense of public service and community. It is a delight to see her take her place in your Lordships’ House. I also thank the noble Lord, Lord Whitty, for enabling us to have this debate. As my noble friend Lord Greaves said, there was nothing to disagree with in what he said. He drew attention to the excellent report from Shelter and he called for drastic and strategic action in his detailed analysis of the reasons why we need many more homes for social rent over the long term—two very important words.

As my noble friend Lady Grender said, all parties have failed over the past 30 years and we must start to work together. I entirely agreed when she said that the Treasury needs to be held to account in the spending review for investing in revenue subsidy through housing benefit at the cost of investing in social housing as part of our capital infrastructure.

The evidence given in support of the Motion has been there for all to hear in today’s debate. Despite a stream of government announcements over the past two to three years that they would act to solve the housing crisis, in practice, very little has been done to achieve it. The long-awaited Green Paper on social housing remains just a Green Paper.

The result is that today we have 320,000 people sleeping rough or living in temporary accommodation, which is a rise of 13,000 on the previous year. Local councils have to meet a bill of just under £1 billion to pay each year for temporary accommodation, and the social housing waiting list amounts to more than 1 million households. We have a private rented sector which now accommodates one household in five across the United Kingdom, up 50% in the past 10 years. As we have heard, we have a housing benefit bill that has risen to £21 billion today and, as I said, about which the Treasury seems to show little concern, when it could turn that current expenditure into capital infrastructure spending. Crucially, three times as many social homes have been sold in recent years as have been built.

In October, I led a debate in this House on affordable housing—that is, housing that is genuinely affordable. As I said then, the cost of home ownership can never be met by very large numbers of people. Average home prices are eight times annual workplace earnings; 20 years ago, the figure was just three and a half times. Private renters are now on average spending 41% of their income on housing, so saving becomes very difficult for them. Those figures come from the latest English Housing Survey.

The Government’s White Paper published in February 2017, called Fixing Our Broken Housing Market, stated:

“The starting point is to build more homes”.


Perhaps the Minister will note those words: it is about building more homes, not simply converting other dwellings outside the usual planning system, without the appropriate number of affordable homes being included, let alone social homes.

My noble friend Lady Thornhill pointed out the imbalance between government subsidy for owner occupation and for rent. As she said, the removal of the housing cap will help, but we cannot just leave it to local authorities. They need considerable subsidy and a real plan of action. They need the right to limit the right to buy, including the right to keep 100% of receipts from sales. There must be a debate about that issue because, as has been said, there is a real danger that local councils are simply being set up to fail.

The Chartered Institute of Housing, in a report in November 2018, said that £8 billion of government support is going into the private housing sector up to 2021, with half going into private owner occupation over that period, when social housing support is less than £2 billion a year. Two billion pounds is the sum of money that London-listed housebuilders declared as dividends in 2018. It is broadly the same sum as was spent by the Government to support social homes. I hope that noble Lords on all sides of the House will find themselves very concerned by those figures.

Help to Buy has finally been changed to assist only first-time buyers. As reports have shown, Help to Buy has encouraged higher house prices. A 2017 report from JP Morgan showed that it has led to higher profits, higher share prices, higher dividends and higher bonuses for builders. I note that the noble Lord, Lord Fraser of Corriegarth, asked who would pay for this. I think that the answer lies in the debate we need to have about the balance between government subsidy of private housing and owner occupation and the cost of public housing and social housing. We should recognise that, in recent years, public money has been spent on subsidising owner occupation at the expense of building social homes for rent. Surely the time has come to redress that balance.

My noble friend Lord Greaves reminded us that council housing is one of the great success stories of the past century: locally provided for local people. He also reminded us of the originations of housing associations, which were similarly local. I agree with him: we must go back to greater local accountability in the provision of affordable housing. Mention has been made in the debate of the uplift in land value caused by planning permissions. Across all parties, there is huge concern about this matter; I hope that the Minister will be in a position to say something further on that. I am convinced that the Land Compensation Act 1961 must be amended, as the noble Lord, Lord Best, reminded us.

Now that the Shelter report is out, many other reports are out, all saying the same thing. We need a debate about the kind of social housing we want to build. It needs to be accessible. We need lifetime homes and decent space standards. We need to know where the social housing will go because different numbers are required in different parts of the country. Above all, we need an action plan for delivering solutions to the problem that has been identified so clearly. We need to think about key workers. We need to work out ways to reduce the high housing costs faced by so many people. We need a means to get young people on to the housing ladder. In saying that, I believe that we need a new generation of homes for social rent for those who need help with housing, such as key workers and those on low incomes, and for those for whom renting is a step on the ladder and who aspire to own their own home. I was very struck by the contribution of the noble Lord, Lord Bird, who said that this should be about not just social housing but sociable housing. I concur.

In October, I said that our current housing crisis represents the biggest failure of public policy in the past 20 years. Today’s debate has shown that to be true. We have built more than 2 million too few homes across the UK, resulting in high prices, high rents, fewer social homes and serious difficulties for younger people wanting to buy their own home. One in five households is now in the private rented sector, where conditions can be very poor and tenure insecure. We have an imbalance and a major problem to solve. It is the duty of any Government to solve that problem.

Tenant Fees Bill

Lord Shipley Excerpts

Committee: 1st sitting (Hansard): House of Lords
Tuesday 20th November 2018 Lords Chamber

[Lord Shipley (LD)]

My Lords, I support the noble Lord, Lord Kennedy, in these two amendments, which would help to tighten up the Bill. As he said, paragraph 8 of Schedule 1 is very open-ended, and he referred to a loophole potentially lying within it as it is worded. I think his amendment will tighten it and will do so partly because it is in the interests of the tenant, who may secure a cash saving in the amount they pay for a utility even though they may have to pay a fee to achieve it. I therefore hope the Minister might be willing to look at that carefully. As paragraph 8 of Schedule 1 is currently drafted, it simply refers to the fact that the tenancy agreement may require the payment to be made, but it does not define why it would have to be made. That is why the amendment in the name of the noble Lord, Lord Kennedy, is so helpful.

[The Earl of Lytton]

My Lords, I have great sympathy with this amendment but I would have more were it possible to ensure that utility providers themselves acted reasonably. While I will not name any names, one particular well-known supplier of electricity, with what is generally regarded as an extremely cheap and competitive tariff, has gained for itself an extremely poor reputation because of what happens when one wants to change to another supplier. Indeed, so tortuous are its processes—of which I have had direct experience—that many landlords specify in their agreements that the tenant may not change to that supplier, and with good reason.

I had a situation myself concerning the commercial supply of electricity to an agricultural building. My wife and I were faced with a demand from this company for over £30,000 for a period of some 15 months, when the only thing that happens in this shed is that for a period of about three weeks a series of low-wattage lights are used to assist with lambing, and for a period of about 10 days in another part of the year they are used for a sheep-shearing operation. By no stretch of the imagination could the fee have totalled that amount. When, finally, the company rang up my wife and said, “We’re going to take you to court”, her answer was, “Make my day”. It was not until the matter was referred to its lawyers that it became apparent that there had been a complete muck-up. It had simply not got an initial reading and was trying to steamroller that payment through in the hope that we would crack and pay it. I know that other landlords in the private rented sector are sometimes faced with the same situation.

These people run up the most appalling costs. While I have great sympathy that this should not be laid solely at the door of tenants, it is none the less an occupational hazard that afflicts both parties to this arrangement. That is the only reason why I have a reservation about the amendment in the name of the noble Lord, Lord Kennedy—because there is another dimension to this, where certain suppliers are acting utterly unreasonably and unconscionably.

--- Later in debate ---

[Lord Shipley]

My Lords, I agree with the noble Lord, Lord Best. It is important that we are able to discuss this matter through the amendment moved by the noble Baroness, Lady Gardner of Parkes, but there is an issue of principle here, which is that it should be a charge not on the tenant but on the landlord and the letting agent, who is not mentioned in the amendment.

The principle is that, if a service is contracted for formally between a tenant and a landlord, a payment can be required. However, that should not be required for either reference checks or identity checks, where the responsibility lies with the landlord or the letting agent. The basic problem here is that the Bill attempts to eliminate up-front tenants’ fees but the amendment might reinstate some tenants’ fees that would not be justified as a charge on the tenant.

[The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government and Wales Office (Lord Bourne of Aberystwyth) (Con)]

I thank noble Lords very much and particularly my noble friend Lady Gardner for bringing forward this amendment. She does much work in this area.

I cannot accept the amendment because, as the noble Lord, Lord Shipley, has just indicated, it would fundamentally undermine the policy intention of the Bill, which is to ban letting fees paid by tenants and to ensure that the party that contracts a service pays for that service.

This issue was dealt with under Section 22 of the Immigration Act 2014. It was very clear then that this was to be a liability for the landlord, not the tenant, to discharge. Therefore, the amendment would effectively drive a coach and horses through the intention of that legislation. I am not sure what the collective term for a coach and horses would be. It would probably be a stampede or possibly a cavalcade of coaches and horses, but it is clearly not the intention.

Despite the very good arguments put forward by my noble friend and the noble Earl, Lord Lytton, on this point, I very much agree with the noble Lords, Lord Best and Lord Shipley. A landlord should be responsible for the costs associated with these checks. As I have indicated, they are required under the Immigration Act to undertake these checks to verify that a tenant has the legal right to reside in the United Kingdom before progressing with any tenancy agreement.

The Home Office produces detailed guidance for landlords and agents carrying out these checks, and I will certainly ensure that it is circulated to my noble friend and the noble Earl, and indeed to everybody who has participated in the debate.

Although the onus is on the landlord to verify a tenant’s right to rent, we have made provision in the Bill that, where a holding deposit is sought and a tenant fails a right-to-rent check, landlords and agents will not be unfairly penalised if the tenant is at fault. I hope that that gives some comfort to my noble friend and the noble Earl. With those assurances, I respectfully ask my noble friend to withdraw her amendment.

New Towns Act 1981 (Local Authority Oversight) Regulations 2018

Lord Shipley Excerpts

Monday 9th July 2018 Lords Chamber

[Lord Taylor of Goss Moor (LD)]

My Lords, I draw the House’s attention to my interests in the register. This is an area I work broadly in—much of it is unpaid but some of it is paid. I was also the original mover of this amendment, and I did so with not only the Government’s support but support from across the House. As the Minister said, this measure is not to establish specific new town corporations but to allow that where they are established—and I hope they will be established—they will be locally led. This is an extraordinarily important moment in the delivery of the homes this country needs and of the services and infrastructure to support vibrant communities. I believe that that is what the new garden village and town programme is capable of doing.

I ask the indulgence of the House for a moment as I give some perspective on this. It was Harold Macmillan in the 1950s, in the middle of the baby boom and during the period of post-war reconstruction, who committed to deliver 300,000 homes—the same number that we need to deliver today. Having delivered only half of that for a couple of decades, we have become short of millions of homes. Many of us experienced that shortage through our constituents in the other place, across all incomes and backgrounds and in many parts of the country. I suspect that many in this House have realised that suddenly, their children or grandchildren are unable to afford a home. Those who do not already own a home or have big capital have increasingly found themselves unable to do it.

In the post-war period, as we introduced planning controls, we sought to create three ways to deliver the homes that were needed. One was through the regeneration of the great cities and towns, which had been emptied out post industrialisation and by the Luftwaffe, and which needed a certain amount of emptying out to deal with the slums. Therefore, we needed to rebuild. The second focus was on some growth around historic towns and cities. There was an awareness, however, that that aroused a lot of opposition from the people who lived there and could have detrimental impacts on the quality of historic communities and the services provided within them. The third leg to deliver those 300,000 homes a year—which were delivered by the Government at the time—was through new communities: new towns that built on the pre-war ideas of Ebenezer Howard and others. Those new towns delivered 2.8 million homes and we would not have delivered the homes that people needed in this country without them. They were extraordinarily successful.

Of course, the new towns were designed in an era when we used a particular approach. Material shortages affected the quality of some of the build; the car was seen as a solution and not necessarily a problem; and it was an era of big government, when not just homes and people but businesses, such as steel works and car factories, were moved in the direction of central government. The nature of their design is often criticised, but those new towns successfully provided fantastic homes for many people. Some of the more successful new towns are no longer even thought of as new towns and have just become places where people live.

New towns were, however, no more than products of their era, and it was an era in which central government took the decisions. Naturally, therefore, the New Towns Act gave powers to the Secretary of State effectively to control the corporations delivering homes for local people in a way that simply does not apply now. The amendments that these regulations will put into effect bring the process up to date with the modern era of localism and a belief in communities themselves taking decisions, owning and controlling the assets, and ensuring that they provide exactly the legacy of great places that the Minister referred to. They will have the opportunity in capturing land value to invest in place and community, to create 21st-century towns and villages fit for the needs of those growing up now in a generation that is so badly short of homes. One of those needs is for the people and the communities around them to have that control, not the Secretary of State.

These regulations should not only be uncontroversial to this House but welcomed by it as a step in delivering the quality new homes and, more importantly, the new communities that people need in the 21st century, in which they can afford to live and thrive. It is also a step into the 21st century in terms of localism and local accountability. It is, as I said, an historic moment when we finally return to a place where we deliver homes of the quality that people expect and deserve, with all the facilities that they need to live and thrive.

I look forward to these regulations being used in cases where the best way to deliver the new supplement is through a new town corporation. As the Government have indicated, that would usually be for a larger scale supplement because it is doubtful that such a corporation would need to be established for a smaller one—although it might be established for a multiple of new supplements. The key is flexibility and that it is brought forward by local communities to meet their needs. I look forward to that happening. However, it will be only a part of a range of opportunities because many will be brought forward without the need for new town corporations.

Let us be clear: the very fact that landowners and investors know that this opportunity is there will probably encourage them to raise their game in the quality of what is delivered, because they know that otherwise, these powers will enable communities to step in and deliver what needs to be delivered themselves.

I welcome the regulations. I am obliged to the Ministers and their officials who have collaborated and spoken openly to me about this process. On the one key change that was made from the draft regulations, £100 million is a lot of money but, within the context of creating a new supplement, it is barely a start. For the Government to have required these corporations to keep coming back to the Treasury to ask for money to do what needed to be done when the principle was accepted seemed a nonsense, and I am glad that Ministers have responded to the concern that was widely articulated on that front.

[Lord Shipley (LD)]

My Lords, I remind the House that I am a vice-president of the Local Government Association, and I recognise the contribution of my noble friend Lord Taylor of Goss Moor in getting us to this stage.

As the Minister said, these regulations relate to both the new town development corporation model and to the oversight of them being transferred from the Secretary of State to local government where local government requests it—and, rightly, any designation will be subject to consultation and parliamentary scrutiny. As he also said, it is important that this process is locally led.

Our country has a proud history of the creation of new towns, mostly through the development corporation model. However, local government has a strong history of delivery—Northumberland County Council with Cramlington new town is an excellent example of local government leadership.

My noble friend Lord Taylor of Goss Moor referred to changing the regulations so as not to have an imposed borrowing limit of £100 million. That is the right thing to do. However, it means that strong financial controls will need to be in place and, in that respect, it will be necessary for the boundaries of the local authority oversight powers and the new town development corporation’s powers to be clarified in some detail in guidance as to exactly where the dividing line between the two is.

I am also pleased that the membership will be made up of a majority of independent members, who will have to demonstrate the required expertise and skills to make a success of the development corporation. However, what steps might the Government introduce in guidance to make sure that the appointment of independent members is a full and open process in which it can be demonstrated why they have been appointed?

My noble friend Lord Taylor of Goss Moor talked about the quality of development and the number of homes of quality that are required. He was absolutely right in what he has said. From my perspective, in order for this process to work, we need more highly professional planners who understand how to build communities rather than dormitory developments in the form of new housing estates. In my view, over recent years planning has become more about gatekeeping developers than strategic planning, so I hope that these regulations will be seen as a major opportunity to reverse that trend.

In conclusion, as the Minister said, this is about local ownership. Moreover, as my noble friend Lord Taylor of Goss Moor said, this should not be controversial because it is a major and welcome step forward.

[Lord Kennedy of Southwark (Lab Co-op)]

My Lords, I declare my interest as a vice-president of the Local Government Association. I am happy to support the regulations before the House and I congratulate the noble Lord, Lord Taylor of Goss Moor, on securing this change to the legislation when the Bill was going through the House. I am very happy that we will provide local authorities with the option of being able to lead on new town developments. That is a good thing and, as other noble Lords said, will allow a level of independence so that they can go forward. Given that, I am happy to support the regulations as they are.

I was pleased that the Government listened to the responses to the consultation on the financial limits; that is very good news. However, the report of the Secondary Legislation Scrutiny Committee talks about the length of the consultation. I have mentioned a number of times the question of consultations from the department. This appears to be truncated down to four weeks, whereas ideally it should be six weeks and perhaps even longer. There is also a general point to be made about the consultation itself, in that, whether it produces negative or positive responses, the level of those responses is actually very low. The Government should look at ways of trying to get more people to engage with what they are doing.

I agree strongly with the comments of the noble Lord, Lord Taylor of Goss Moor, about the construction of new towns and bringing the process up to date. Indeed, it is a good intention on the part of the Government to deliver on this. A number of noble Lords observed that new homes must be of sufficient quality, which is extremely important. They must be properly energy efficient, built using the best techniques and set within the right infrastructure. In that way we will have homes in new towns and elsewhere that will be there for many years. If we do not get this right, we will simply create housing problems for future generations. I am conscious that in the 1950s, 1960s and 1970s, while Governments of all persuasions built a lot of housing, in the end a good deal of it turned out to be of very poor quality. For all the promises, those houses failed the families who had to live in them. Of course, some of the properties are still here today. So it is important that, whatever is built, be it in new towns or elsewhere, quality should underpin it. Hopefully, having a local element in new towns, with local people being fully involved, will help with that. Again, I am happy to support the regulations.