Cities and Local Government Devolution Bill [Lords]

Martin Vickers Excerpts

Tuesday 17th November 2015 Commons Chamber

I urge the Minister to look favourably on the clause, and to confirm that what may have been appropriate in 1933 cannot be right in 2015.

[Martin Vickers (Cleethorpes) (Con)]

Those of us with long local government experience never expected any Government to deliver devolution to this extent. I welcome what the present Government are doing, and I know that it is welcomed in local government throughout the country. For many years Governments of both colours drew more and more powers to the centre, and it is extremely pleasing to see that being reversed.

I have been a supporter of elected mayors for many years. In my own authority, I tried to secure a petition with the required 5% support 12 or 13 years ago. The problem is that that percentage is very difficult to achieve if a small number of people are involved, and particularly difficult to achieve within the 12-month period that is specified in the current legislation.

Elected mayors are often very unpopular with sitting councillors, who see them as a threat to their cosy arrangements whereby the roundabout turns and either the Tories or Labour take over. I think that where that resistance still exists, we need to allow residents—the general public—to initiate a petition with the modest threshold of 1% that is proposed in new clause 30, which stands in my name and that of my hon. Friend the Member for Carlisle (John Stevenson). I think that that would encourage local people to support an elected mayor, or at least to kick-start the journey towards securing one by initiating the referendum process when resistance is high in the local authority.

We may be seeing proof of the rule that if Back Benchers remain consistent, some Government at some time or other will eventually agree with them. Over the last 15 years or so we have seen both sides of the House run hot and cold on the issue of elected mayors, but those of us—such as my hon. Friend and me—who remain consistent can now put up the flags and welcome the fact that the Government are moving towards the idea of not just elected mayors, but elected mayors with even more power than we anticipated. I hope that the Government will at least give a clear indication that they will look favourably on our proposal to reduce the threshold and give power to local residents.

[Sir Edward Leigh (Gainsborough) (Con)]

That is all very well, but in the case of a large rural county such as Lincolnshire, it would be quite wrong for the Government to say, “If you want devo-max, you must have a mayor.” It makes sense to have a mayor of London, Birmingham or Manchester, but it does not make sense to have a mayor of a large rural county.

[Martin Vickers]

I see the logic of that, but my hon. Friend will know that in greater Lincolnshire the authorities have already come together and put a proposal forward, although they have not gone for the full package. I hope they eventually will, just as I hope that eventually the combined authorities emerging from this process will evolve into a super-unitary authority headed by an elected mayor. My hon. Friend would make an admirable mayor of Lincolnshire—governor of Lincolnshire, even.

[Sir Edward Leigh]

High commissioner.

[Martin Vickers]

Yes, high commissioner for Lincolnshire.

When I was reading the amendments, I was struck by new clause 32(3)(c) which talks about

“all family members’ ability to play a full role in family life”.

I shall therefore conclude by praising the Government for withdrawing their proposal to devolve powers on Sunday trading to local authorities or elected mayors. It would have been a retrograde step that would have hit many hard-working families that run the corner shop, the newsagents and so on—just the sort of people the Government should be looking after. I welcome that and praise the Government—and praising the Government is a good point to conclude on.

[James Wharton]

We have had an interesting and wide-ranging discussion on this group of amendments. I have listened to the debate and, while I understand a number of the points raised, I am afraid I cannot support any of the new clauses, as I will endeavour to explain.

I will begin with new clause 24, which would require the Secretary of State to set out a framework for further devolution of fiscal powers. By the end of this Parliament the local government sector will retain 100% of local taxes to spend on local government services. For the first time in decades, local areas will see the full direct benefit of business rate growth in their area. We wish to end the merry-go-round of clawing back local taxes to Whitehall and handing them out again in the form of grants. We will, of course, however, maintain redistribution between councils so that local authorities do not lose out.

We will be working with local authorities over the coming days and weeks on this ambitious agenda. It is our intention to devolve far-reaching powers within a framework of strong, accountable, transparent governance, and strong delivery capability. We will be setting out our detailed proposals in due course and, in light of this, I hope all parts of the House would agree that this new clause, which would require the Secretary of State to set out a framework for further devolution of fiscal powers, is unnecessary. I recognise the comments of the hon. Member for Sheffield South East (Mr Betts) on this new clause, and his desire to see at the end of this process a period of reflection and consideration. I think there is merit in what he says. We will see how things progress, but certainly we will need to look at the totality of what has been done before deciding what next steps may ultimately then follow.

New clause 29 and accompanying new schedule 2 would provide for a local government independence code, defining the relationship between central Government and local authorities, and would make provision about their financial independence and conduct. Such codification is somewhat contrary to our constitutional traditions, and I do not think we need to go down the route set out by this new clause. We always want clarity in the deals we do—we always want to have discussions with local government about the future they see for themselves—but we see no need for what would be a very restraining and unnecessarily legalistic approach to the relationship between central and local government. We will, of course, look to the future, as the hon. Member for Nottingham North (Mr Allen) asked. He is an ambitious advocate of devolution in all its guises and where it can go, and I look forward to having, I am sure, many more debates in future about this topic with him.

New clause 30 seeks to reduce the minimum percentage of local government electors in a local authority area required for a petition to trigger a referendum on its governance model. My hon. Friends the Members for Carlisle (John Stevenson) and for Cleethorpes (Martin Vickers) have spoken eloquently on this issue. It is an issue that I know they care about. The hon. Member for Cleethorpes, famed for his consistency, is of course someone who stands by his beliefs and is, I think, in line and in tune with the sentiment of what the Government are doing in this area on this occasion. However, I cannot suggest we should support his new clause because the Local Government Act 2000 gives both the Secretary of State, and Welsh Ministers where relevant in Wales, a power to make regulations concerning public petitions in relation to whether a local authority should hold a referendum about changing its governance arrangements, for example to adopt a directly elected mayor. The regulations can already specify the minimum number of electors who must sign a petition for it to be valid, and the default position if the regulations do not specify any such threshold is 5%, which is also the current threshold for England. I have listened to hon. Members’ arguments, and I am happy to have further discussions about the actions the Government should take in the exercise of those powers, but I do not think it necessary to make this amendment to the Bill at this time.

New clause 31 would allow the Secretary of State, by order, to give power to the mayor of a combined authority to set a minimum unit price for alcohol sold in the combined authority area, with the mayor’s power being exercisable only following consultation on the proposed level of that price. The Government have recently undertaken a nationwide consultation on the introduction of a minimum price for alcohol, which raised a number of issues, including the potential economic impact of minimum unit pricing and the possibility of unintended impacts on businesses. The new clause’s proposed piecemeal, localised minimum alcohol pricing would risk consumers simply travelling outside the area of the authority to purchase cheaper alcohol in a neighbouring area.

I understand that in Scotland the policy of minimum unit pricing for alcohol has been legally challenged, and that the European Court of Justice has yet to express a final view. The introduction of a minimum unit price therefore remains under consideration. My hon. Friend the Member for Enfield, Southgate (Mr Burrowes) has made clear his desire to see the policy pursued, but for the reasons I have outlined we have no plans to devolve the matter at this time. We will therefore oppose the new clause.

New clause 32 seeks to introduce a requirement for mayoral combined authorities to publish annual reports about their performance in applying elements of the family test. The family test applies to the development of central Government policy. It recognises the fundamental impacts that central Government decisions can have on families and introduces an explicit family perspective into the policy-making process. However, it would not be devolutionary to start prescribing in detail how mayors or combined authorities should go about exercising their functions. We therefore have no plans to require mayoral combined authorities to apply a family test—a test that was in fact designed to be applied to policy decisions with national impact.

Turning to new clause 33, I want to start by saying that we value the important role of parish councils and that we support local government in innovating and achieving value for money, especially when such money is reinvested into communities. The hon. Member for Nottingham North asked some specific questions, which I shall now answer, on the powers of parishes to sell electricity that they generate. A specific example would involve electricity generated from renewable sources.

There is no need to amend the Local Government (Miscellaneous Provisions) Act 1976 to enable the sale of electricity generated by parish councils. Through the general power of competence in section 1 of the Localism Act 2011 and through section 111 of the Local Government Act 1972, it is already possible for parish councils to sell the electricity they generate, depending on the circumstances. I suspect that the new clause was tabled to seek clarity, and should my comments not provide sufficient clarity I shall of course be happy to speak to interested Members after the debate to ensure that any concerns are properly addressed.

I turn now to new clause 36, tabled by Labour Members, which would require a combined authority with devolved functions to consider the impact on neighbouring local authority areas. I do not believe that this amendment is necessary or appropriate. The statute provides that combined authorities must exercise their functions in relation to their area. That area, of course, is the area that Parliament has approved when establishing the combined authority. It is an area that equally has enabled the combined authority to satisfy the statutory tests—that is, it is an area in which, if functions are exercised, that exercise of functions will result in an improvement compared with what would otherwise be the case. Indeed, the Bill provides that functions cannot be devolved to a combined authority if the Secretary of State does not consider that that would lead to an improvement in the exercise of statutory functions in the combined authority’s area.

The new clause seeks to provide some further requirement about how, once established, a combined authority should go about the exercise of the functions devolved to it. As with local authorities, combined authorities must take their decisions having regard to all relevant considerations. Just as local authorities cannot be blind to the impact of their decisions beyond their boundaries, nor can combined authorities; and just as local authorities are able to form joint committees with neighbouring authorities to manage activities that could have an impact beyond their areas, so can combined authorities. Hence, as I have said, the proposed new clause is neither necessary nor appropriate for inclusion in the Bill.

My hon. Friend the Member for Enfield, Southgate has also tabled new clause 37, which would amend section 80 of the Local Government Act 1972 so that a councillor who received any sentence of imprisonment, including a suspended one, would be disqualified. At present, a councillor is disqualified only if they have received a sentence of imprisonment, suspended or not, of not less than three months without the option of a fine.

Previous Governments have recognised that section 80 needs to be updated, not least to take account of modern sentencing guidelines, and we agree that change is necessary. Many things have changed since 1972, and this section is in need of amendment. At the beginning of this year, the Electoral Commission’s report “Standing for election in the UK” recommended that the Government clarify and update the law relating to the qualifications for local government elections. Our strong preference is to consult on change, and to work with colleagues in the local government sector and the Electoral Commission in considering the scope of section 80, rather than make piecemeal amendments through this Bill. This work will include not only reviewing and possibly amending the rules of disqualification relating to sentencing, but reviewing other rules about the qualification for standing for election, including rules about employees standing for election and about residence. I would like to thank my hon. Friend for bringing this proposal to the attention of the Committee. I know that he has a pressing constituency issue, which he explored in his comments and which highlights the need to make progress. I hope, however, that he will recognise that it is important that that is done in a considered and sensible way, as well as in a timely way, and that an amendment to this Bill is not the appropriate way to do that at this time.

New clause 38 was tabled by my hon. Friend the Member for Bromley and Chislehurst (Robert Neill) and it relates to London. I recognise the work that has gone into it. It is an interesting clause that clearly seeks to raise an important point that matters not only to him but to Members from across the House who take an interest in devolution and such matters in London. If accepted, the clause would enable ministerial functions to be devolved to voluntary joint committees of London councils and to such committees acting jointly with the Mayor of London. I understand from his explanatory statement that the purpose of the amendment is to provide

“for decision-making arrangements to enable operational delegation to groups of London local authorities and for the strategic governance of devolved responsibilities to be shared between London authorities and the Mayor through an appropriately constituted joint committee.”

We have always made it clear that for functions to be devolved to local authorities arrangements ensuring strong and clear accountability must be put in place. The new clause appears to be an attempt to formalise joint committee arrangements, while making it clear that London authorities will have the freedom to enter into their own constitutional arrangements for joint committees, including arrangements involving the Mayor of London. We do not believe that the informal nature of the proposed arrangements provides the strong and clear accountability that would support the devolution of the functions of either a Minister or a Department to a joint committee. However, I do recognise that giving more substance to multi-borough partnerships, which are already delivering innovative pilots in the areas of health, employment and skills, could help provide clearer lines of accountability and enable them to take on more ambitious programmes in the future. I am happy, therefore, for departmental officials to work with London further to explore options and I am of course happy to discuss the matter further with my hon. Friend after the progress that we hope this Bill will have made today.

Finally, new clause 39 seeks to place in the Bill a specific requirement for the Secretary of State to prepare guidance for combined authorities on effective strategic planning for environmental problems and green infrastructure no later than three months after the passing of this Act. As with some of the other amendments we have discussed today, providing for central prescription in this way goes against what this Bill is about; we are engaged in the business of reversing many years of centralisation.

With that, and the explanations I have given on the other provisions in this group, I hope that hon. Members will not push their amendments to a vote. The Government intend to resist them. We have had another interesting, useful and productive discussion on a wide range of issues in this group. It has informed the debate about devolution more generally in a helpful and productive way. On that basis, I hope we can continue to build consensus, can deliver this Bill and can deliver on our commitments.