Derbyshire County Council

Simon Hoare Excerpts

Tuesday 23rd April 2024 Commons Chamber

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Simon Hoare)]

I thank the hon. Gentleman for securing this debate. A competition of trying to judge the difference between him and a ray of sunshine would not be difficult to engage in, because if one listened to him, one would think all was doom and gloom and bleakness in Derbyshire. Let me assure him, and my hon. Friends the Members for Amber Valley (Nigel Mills) and for Derbyshire Dales (Miss Dines) who are in the Chamber this evening, that in no way, shape or form is Derbyshire County Council on any red list or radar-flashing screen in my Department. That is good news for the residents and service users of Derbyshire. At this juncture, let me also put on record my thanks, as we all should, to all those officers and councillors, irrespective of party, who turn up day in, day out to serve their communities and to try to make things a little better for people in Derbyshire. They deserve our thanks.

The hon. Gentleman referenced in some detail—understandably so, as I am not seeking to dismiss his concerns in any way—children’s centres and other services provided to young people. Those, as he will know, are properly and in great respect in the domain of the Department for Education. I will not intrude upon other Ministers’ portfolios, but I undertake to the hon. Gentleman—I hope this will serve as a sort of holding reply—to ensure that my colleagues in the DFE are aware of his remarks and concerns and respond accordingly and appropriately.

There is little to no doubt that the funding scenario for local government in England has been challenging, and it would be foolish of any Local Government Minister to stand at the Dispatch Box of the House of Commons and say it has not. It clearly has been, and that was recognised in the additional £600 million that we provided to the local government funding settlement this year. The funding formula has creaked and groaned under stresses and strains over many years. The hon. Gentleman is right to point out—he is not unique in doing so; virtually every conversation I have with anybody with an interest in or representing the concerns of local government draws attention to it—the two almost unstoppable trajectories of growth demand: in special educational needs and the support services that wrap around that area of local government service; and, at the other end of the age spectrum, in adult social care. Those are good news stories in themselves, because they are testimony to the success of the national health service in supporting people in their lives and ensuring that they are fit and healthy. Those things lead to additional and growing demands on the services of local government. Local government is rising to that challenge across the piece magnificently, but there is always work to do.

It is recognised across the two Front Benches that the funding formula does not need tinkering with or a little tweak here and there—it effectively needs dismantling and starting from scratch. Such things as the use of data to inform, the ability to define need, the ability to respect and reflect upon the differentials in need demand in rural versus urban, and in coastal as well, as was dealt with yesterday in oral questions, should all play into that. That is why I am talking to council leaderships across the country and to the wider sector about where we think the formula should land in the next Parliament.

The formula cannot be ignored, because we all want, particularly reflecting in this 50th year since the local government reforms of 1974, to find a robust and sustainable way forward, so that the future of English local government can continue for the next 25 to 50 years. Post covid, the sector asked the Government for stability and certainty. We have delivered that by not instigating a major review of the formula. As I say, that is a job for the next Parliament.

It is worthwhile just to look at the figures for Derbyshire County Council. Its managing director, Emma Alexander, has by her own admission described the council—and I agree with her assessment—as being sound and stable financially. That is good news for council tax payers and service users of Derbyshire because it means that, against that backdrop of sound and stable finances, informed and proper decisions and changes can be taken rather than knee-jerk reactions in response to pressures outwith the council’s control.

The council and Ms Alexander are realistic enough to highlight that the council’s next focus—its immediate focus—has to be on modernisation, implementing what they describe as “one council” working and new transformational strategic plans for the whole of Derbyshire. I think that that will drive efficiency. One can only hope that in that drive of improved efficiency, services will improve still further for the residents of Derbyshire.

This year’s settlement for the county council was a significant increase in core spending power of 8.3% on the previous year, up £54.88 million, making available a total of £715.3 million for 2024-25. The hon. Gentleman referenced some of the work done through the social care grant. It now means that for 2024-25 Derbyshire is receiving £140.2 million through that grant. Last year, of course, the Government awarded £70 million of levelling-up capital funding to the Derbyshire region, including £50 million for the South Derby growth zone and £20 million for Chesterfield town centre.

I suggest to the hon. Gentleman—and I think that in his heart of hearts he knows this—that one should look not just at the cold figure of the money produced, as important as that is, in the local government finance settlement, but at the broader ranges of support and intervention that the Government are providing across Derbyshire, including the town deal, the accelerated towns fund, the levelling up fund, the community ownership fund, the future high streets fund, the long-term plan for towns, levelling up culture, capital regeneration, the UK shared prosperity fund, the UK shared prosperity fund multiplier, the community renewal fund, levelling up partnerships and levelling up parks, all of which have generated significant sums of money for Derbyshire, alongside the grant and council tax-raising ability of the county council, to deliver services for local people.

[Miss Sarah Dines (Derbyshire Dales) (Con)]

May I say on behalf of the people of Derbyshire Dales that we are immensely grateful for the £13.5 million of levelling-up funds, without which the town of Ashbourne would be going back in time instead of looking to the future? There is also the shared prosperity fund. One of my towns, Matlock, will receive a lot of money and do a lot of good work. My experience of how the Government and the county council have reacted and responded to the needs of my constituents is very different from that of the hon. Member for Chesterfield (Mr Perkins).

I have had over 30,000 emails since my election, and a great number of them have been about local councils, SEND provision, potholes and other matters. The management of the county council by the Conservatives has been very good, and there is always more work to do. Who could not spend more money on SEND? These issues are precious to us, but given the money that is available, my experience is very different from that of the hon. Gentleman. I am worried that these matters have been brought up at this stage, mid-election, when really we need to look at the facts. Derbyshire County Council could always do with more money, but it manages the money that it has really well. The leader, Barry Lewis, is particularly good. He is a credit to us all.

[Simon Hoare]

I am grateful to my hon. Friend for the upbeat fillip, which we needed to hear from a representative of Derbyshire. I am delighted to hear that her constituents —and I suggest probably the constituents of Chesterfield, Erewash, Bolsover, across the Amber Valley, South Derbyshire, Clay Cross, Staveley and Long Eaton—are pleased to see the attention on them to deliver levelling up and make sure that those engines of growth, livelihood and success can be sustained.

I am convinced by the work of the Under-Secretary of State for Levelling Up, Housing and Communities, my hon. Friend the Member for Redcar (Jacob Young) to deliver the East Midlands Combined County Authority. A £1.14 billion devolution deal for the wider west midlands to drive growth and boost opportunity demonstrates yet again—if demonstration were still needed—our commitment to devolving more money and power to local leaders. The establishment of the East Midlands CCA will open the way to providing considerable funding for the area. The combined county authority will have control of £38 million a year. That can be well spent and maximised with the election of my hon. Friend the Member for Mansfield (Ben Bradley), who is standing head and shoulders above the other candidates for the post of Mayor. I wish him well. I wish the people of Derbyshire well. This Government stand behind them, ready to serve them, to meet their local and central Government needs.

Question put and agreed to.

Oral Answers to Questions

Simon Hoare Excerpts

Monday 22nd April 2024 Commons Chamber

[Steve Double (St Austell and Newquay) (Con)]

2. What recent estimate he has made of the additional cost to the public purse of councils delivering public services in coastal areas.

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Simon Hoare)]

Cornwall is one of the most beautiful areas of the country, second only to Dorset. [Interruption.] Thank you. It has the longest county coastline in England and, as such, its council faces unique challenges in delivering services. The Government are committed to reforming the local government funding landscape in the next Parliament to deliver simpler, fairer and longer settlements. As part of that process, the Government have previously publicly announced that they are exploring options for specific formulae for flooding and coastal erosion. We will engage councils about those options as reform progresses.

[Steve Double]

The Government have already accepted the additional cost of delivering services in rural areas through the rural services delivery grant, but they have not yet accepted those additional costs for coastal areas. Would the Minister consider establishing a coastal services delivery grant to ensure that coastal regions such as Cornwall, which as he said has the longest—and most beautiful—coastline in the country, get the funding that they need?

[Simon Hoare]

Second most beautiful, I remind my hon. Friend. He makes an important point, representing as he does his constituents and the wider county of Cornwall, and an interesting suggestion. Strong points sit behind his argument. I would be delighted to meet him to discuss that further, but he makes good points and gives me food for thought.

[Sarah Dyke (Somerton and Frome) (LD)]

The cost of delivering services in Somerset is rising, with care costs rising by 47% between 2022 and 2023, yet urban councils receive about 38% more Government funding spending power per head than rural councils. What steps is the Department taking to address that inequality and help rural councils to deliver vital public services?

[Simon Hoare]

As the hon. Lady will know, the rural services delivery grant tries to reflect that as well, but if only the Lib Dem leadership of her council had got on—as Dorset did—and delivered the benefits of going unitary, rather than fiddling while Rome burns, her situation might be a little better.

--- Later in debate ---

[Helen Morgan (North Shropshire) (LD)]

8. What assessment he has made of the adequacy of the level of Government funding allocated to local authorities.

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Simon Hoare)]

In answer to the hon. Lady’s question, we make continuous assessment with regard to the adequacy of funding. In this financial year we have made £64.7 billion available to local government in England, an above-inflation increase for local authorities as their real-terms increase in core spending power is now up to £4.5 billion or 7.5% in cash terms. That includes the additional measures for local authorities, worth £600 million, that we announced on 25 January, having listened to the views of local government, to her views when she engaged in the consultation and to the views of hon. and right hon. Friends across Shropshire.

[Helen Morgan]

I thank the Minister for his answer, but we have seen Shropshire Council make £50 million of cuts this year, and we are told that there will be £60 million of cuts next year to avoid a section 144 notice. Local residents are particularly concerned about the potential closure of recycling centres and a likely increase in fly-tipping across our beautiful countryside. Does the Minister agree that rural councils are in danger of delivering nothing more than statutory services if things continue? Will he consider adjusting the way that funding is allocated so that rural councils are given an amount that reflects the cost of delivering services in their area?

[Simon Hoare]

The hon. Lady is right to point to the need to review the formula, which is a commitment for the next Parliament. She will probably be aware—I hope she is—of the £8.9 million extra that Shropshire Council received this year through the rural services delivery grant in order to deliver those sorts of services. Do I think rural councils have to reduce to statutory services alone? No. All my engagement with the sector points to a vibrancy and a commitment to innovation, shaping places and improving the lives of people up and down the country, including in Shropshire.

[Dame Andrea Jenkyns (Morley and Outwood) (Con)]

Trevor from the Drighlington memory café—Trevor has been ably supported by our fantastic Morley town mayor—Nicola from the Morley grief group, Dan from WF3 Kindness and Christine from the veterans luncheon club are just some of the amazing volunteers and community groups in my area who give up their time to help local people. Will the Minister join me in thanking and paying tribute to the unsung heroes in our communities across the country?

[Simon Hoare]

My hon. Friend is absolutely right. We should never lose an opportunity to trumpet our thanks to people like Trevor, Christine and all our volunteers up and down the country who make such a difference to people’s lives. They work alongside councils and other bodies to make life better and happier, and to make places more pleasant to live. I thank them unreservedly.

[Matt Western (Warwick and Leamington) (Lab)]

Funding cuts are adding to the clear pressures on local government around the country. One such example is developers who come armed with substantial funds and resources to contest their planning applications. Locally, Warwick District Council had an application just last week that the planning committee was essentially advised to allow because of a fear of not having the financial resources to contest it. I have written to the Secretary of State about this issue. Should we be extremely concerned about it nationally?

[Simon Hoare]

Each planning authority has a quasi-judicial role to adjudge planning applications against national and local plans, and I have every confidence that planning committees up and down the country do that. If the hon. Gentleman wishes to refer to a 7.5% cash-terms increase for local government in this financial year as a cut, that is a very eccentric definition even for a Labour Member.

[Priti Patel (Witham) (Con)]

Ministers are aware that Maldon District Council was allocated £5 million of levelling-up funding. My right hon. Friend the Member for Maldon (Sir John Whittingdale), the council and I have been informed that the funding must be spent on cultural projects, despite our having a local plan that will see the closure of St Peter’s Hospital. We want the money to be spent on levelling up health and wellbeing, which is one of the five principles of levelling up. Will Ministers urgently review all our representations so that we can work at pace to sort out this terrible issue and level up our health situation?

[Simon Hoare]

My right hon. Friend makes a powerful point, and I know St Peter’s Hospital pretty well from a previous life. The Under-Secretary of State for Levelling Up, Housing and Communities, my hon. Friend the Member for Redcar (Jacob Young), has signalled to me that he is aware of the issue, has sympathy with my right hon. Friend and will be happy to meet her in pretty quick time to discuss further details.

[Jim McMahon (Oldham West and Royton) (Lab/Co-op)]

Working people are paying the price of the cost of living crisis, but is it not the truth that the Liz Truss mini-Budget did not occur in a vacuum? There is a pattern of the Tories shifting the tax burden on to hard-pressed households. Council tax bills have rocketed by almost £500 since the Tories came to power, on top of which Conservative councils charge residents almost £280 more than their Labour counterparts. As voters go to the polls on 2 May, does the Minister hope that they will somehow forget the council tax bombshell facing them? Or does he expect that more candidates will follow the lead of the west midlands campaign and ditch the toxic Tory brand completely?

[Simon Hoare]

The hon. Gentleman wins first prize in the brass neck of the afternoon competition; I remind him gently and politely about the situation in Birmingham. It is well known by residents up and down the land that Conservative-led councils are more efficient, deliver greater improvement at pace and are far more focused on delivering for their residents. Colleagues and I will take that proud record to the voters during this local election campaign, and I have every confidence we will triumph in it.

[Mrs Flick Drummond (Meon Valley) (Con)]

9. What the criteria are for allocation of round 4 of the community ownership fund.

--- Later in debate ---

[Dan Jarvis (Barnsley Central) (Lab)]

T3. Given the proximity to the local and general elections, can Ministers give an assurance that the joint election security preparedness unit has all the resources it needs to do the job?

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Simon Hoare)]

This is a tremendously serious issue. My Department and other Government Departments, led by the Security Minister in the Home Office, are spending a huge amount of time, effort and resource in ensuring the safety of candidates; the safety, security and robustness of the process; and that all those who wish to take part in our democratic functions, in whichever fora they happen to manifest themselves, can do so safely and securely. That is a very firm commitment. The hon. Member will know that we are dealing with that as a serious matter.

[Wendy Morton (Aldridge-Brownhills) (Con)]

T9. In constituencies such as Aldridge-Brownhills, our green belt is precious; and once it has gone, it has gone forever. But in the west midlands, thanks to the leadership and vision of Mayor Andy Street and his “brownfield first” approach, we have seen 16,000 new homes built, and thousands of new jobs on brownfield land. Does my right hon. Friend agree that that clearly demonstrates that we can build the new homes we need and protect the green belt, and that it is Andy Street who is setting the pace and leading the way in the west midlands?

Citizens’ Assemblies and Local Democracy

Simon Hoare Excerpts

Tuesday 16th April 2024 Westminster Hall

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Simon Hoare)]

It is a pleasure to serve under your chairmanship, Ms Vaz, and to reply to the debate ably introduced by the hon. Member for Oldham East and Saddleworth (Debbie Abrahams).

Let me begin, as I always like to, by trying to find a point of agreement with whoever has raised the debate. The hon. Lady is right to talk about the importance of trust in politics and engagement in our political processes. Like all advanced, mature western democracies, we are living in difficult times. With social media, conspiracy theories, different people with competing views, the rise of populism and an uncertain world with many big geopolitical and environmental questions, no wonder a lot of people feel disconnected and discombobulated.

Public engagement is key. One of the strengths of our country, as the inbox of any right hon. or hon. Member will attest, is that we have very vibrant lobbying, including from the third sector, on a whole range of issues. I have been doing this job for eight and a half years and am still surprised by some of the groups out there that wish, perfectly properly, to make their views on certain issues known to their Members of Parliament .

We have vibrant, open and democratic political parties. Our advice surgeries are a wonderful opportunity to provide mini citizens’ assemblies, effectively, at which individuals or groups of constituents can come and talk to us about issues that are important to them.

I think we occasionally underplay our power to convene. We can convene all sorts of public or private meetings in our constituencies and invite people, either on a select list or via open invitation. I have done something very similar on environmental and climate change issues: I issued an open invitation and a whole raft of people in my constituency came, across the age groups. They certainly improved my knowledge and understanding of the issues. I hope also to hear, from the political perspective, some of the checks and balances and some of the challenges that the democratic process throws up.

There are ways currently being deployed to maximise public engagement and therefore, hopefully, to grow and inculcate trust. However, I do not subscribe, and nor do the Government, to the hon. Lady’s argument. She has put forward a perfectly respectable argument, and she has evidenced it as she has seen fit, but it is a question of judgment. As we all know, to govern is to choose, and often there are competing options. I do not think that we would address some of the fundamental problems that she set out at the opening of her speech by defaulting to the creation of citizens’ assemblies.

The right hon. Member for Warley (John Spellar) almost gave my speech for me.

[John Spellar]

rose—

[Simon Hoare]

Almost as if the right hon. Gentleman had been pre-timed, he is on his feet. I give way.

[John Spellar]

The Minister rightly says that the essence of exercises such as citizens’ assemblies is that they will deal with a narrow issue. The Government then have to choose between priorities: that is where essential political decisions get taken. There is then the opportunity for the British public to decide whether they like the direction of travel. Does he agree that we need to listen to campaigning groups, which play an important part in our democracy, but that ultimately it is the broader public who have to decide?

[Simon Hoare]

The right hon. Gentleman is absolutely right. One of the great strengths of single-issue pressure groups is that they bring a whole wealth and range of in-depth knowledge on a particular system or issue. The downside is that a single-issue pressure group or campaigner does not look at the larger picture or take the balance. It does not have to govern by choosing. I have seen a lot of evidence to suggest that membership of single-issue pressure groups has gone up, but the mixed potpourri—the Woolworths pick ’n’ mix—of joining a political party, where people have to give and take and trim and tack, has proven less popular, particularly among younger people.

[Debbie Abrahams]

I think that there is a misunderstanding. Citizens’ assemblies are not about replacing decision making, but about trying to provide an evidence-based rather than lobby-based approach for a particular vested interest. Evidence is provided to the participants of the citizens’ assembly that is balanced and comprehensive and allows people to come to a consensus on a recommendation to policymakers, who then decide. This discussion has completely misrepresented what citizens’ assemblies are about. They are about the engagement of people with a particular policy issue.

[Simon Hoare]

I am not entirely sure that the hon. Lady has helped her cause with that further amplification of what she means by citizens’ assemblies. The point that the right hon. Member for Warley made was the right one: what will the outcome be? If one stands as an independent candidate, free from a party Whip and from supporting a party programme in government, one can of course seek the views of constituents all the time: “How would you like me to vote on this?” However, it fundamentally changes the Burkean principle of having a representative rather than delegatory democracy. I think our representative democracy, as set out in Burke’s famous address to the electors of Bristol, still holds us in pretty good stead.

I do not make this point facetiously: this Chamber is a citizens’ assembly in a representative democracy. We have elections to it at some point this year. In a couple of weeks, we will have elections to citizens’ assemblies, be they for the mayoralty, for police and crime commissioners or for our local councillors. We talk about the word “democracy”, but let us remind ourselves of the history of that word. It comes from the Greek words “demos”, meaning people, and “kratos”, meaning power—power of the people. We are the citizens’ assembly and we can represent the concerns of constituents in a whole variety of ways, through appeals to Ministers, all-party parliamentary groups, debates and the like.

I am all for involving as many people as possible. The hon. Member for Oldham East and Saddleworth was absolutely right to highlight the particular need to harness the intellect, enthusiasm and interest of our younger generations, who occasionally—slightly lazily, slightly arrogantly—turn off and turn away: “Oh, they’re all corrupt. They’re all this, they’re all that. Nobody listens.” When we ask, “Well, when was the last time you made a representation, asked to see someone, joined a lobby or whatever?”, they say, “Oh, I don’t bother with any of that.”

I say the following as somebody who voted remain in the referendum. After the event, there was a large pro-EU demonstration outside. I fell into conversation with about 20 young people, all of whom were of voting age. Only 10 had voted. The others told me that they had posted stuff on Facebook or put things on Twitter. I then had to point out to them that the returning officer did not count posts on Facebook or posts on Twitter; they counted ballot papers. That is how to effect change.

[Conor McGinn]

I think my hon. Friend the Member for Oldham East and Saddleworth (Debbie Abrahams) posed a legitimate challenge around how, in a systemic way, we can create evidence-based policy based on participatory democracy. I am not convinced that the way to do that lies in citizens’ assemblies, but I entirely understand her point.

What I rail against—the Minister touched on this point—is the idea that politicians are not citizens. The Minister spoke about the formalised structure through which we can consult constituents. A good Member of Parliament who is rooted in their community will be doing that every day. I do it while doing everything from taking my kids to football, cricket and rugby to going to mass on a Sunday or the bookies on a Saturday. A good MP will be in touch with his or her community and will consult them all the time. That is a separate point from the one that my hon. Friend made, but it is important that MPs do not allow the perception to take hold that we are all rarefied species detached from people, because it is not true.

[Simon Hoare]

The hon. Gentleman is absolutely right. We do ourselves no service, as a group of people called to this particular strand of vocational public service, if we try to set ourselves apart like plaster saints who are in some way separate and uncontactable. I agree that we have to be within our communities. I usually have a citizens’ assembly when I drop my kids off at primary school or when I am in the queue at the supermarket or the petrol station: “Hello, Simon! How are you? While I’ve got you, can I talk to you about this, that and the other?” That is what an engaged Member of Parliament does.

I hear what the hon. Member for Oldham East and Saddleworth says, but it is the ballot box that creates the forum for those citizens’ assemblies, a representative democracy. We cannot have elections every six months, every year or whatever—as often as we may change our socks or our stance on a particular issue—but that is how this country selects its representatives to take decisions.

One thing I have yet to be convinced about, with regard to the efficacy of citizens’ assemblies, is selection through a random postcode lottery, as the hon. Lady set out. They hear evidence from experts; who appoints and defines who these experts are is a moot point, but let us just work on the principle for the moment. They give up a lot of their time, they take evidence, they come to a conclusion, and in coming to that conclusion they will probably find themselves operating in exactly the same way that we do: “I’ll give way on that point; you’ll give way on this point. We will find a compromise.”

It may work once, but I can just imagine somebody saying, “There has been a citizens’ assembly in my constituency and they have decided this, and they want me to vote this way or do this thing.” That may be a luxury of opposition—something I hope I never get a taste of, but who knows?—or it may come from somebody on the Government Benches. The right hon. Member for Warley is a seasoned former Whip for his party. I am not entirely sure what our Whips offices would say collectively to the idea, but they might well say, “Well that is all fantastically interesting, but the party policy is X. You availed yourself of the benefit of standing for party X, Y or Z, and you will have to follow the Whip.”

If we go back to those people who gave their time willingly at a citizens’ assembly and say, “I hear exactly what you said, and thank you for all your effort, but you cannot mandate me to do anything. I am perfectly free to do as I will, but my Whips have told me that that freedom is fettered and I have to do this, that or the other,” I am not entirely sure that the dynamic of citizens’ assemblies would create a self-perpetuating success story. The cold reality of the delivery of governing to choose, or choosing to govern, would hit the slightly abstract, theoretical way in which a citizens’ assembly might be run.

[John Spellar]

The Minister is identifying another part of the problem. First, Governments have to govern broadly and make trade-offs all the time. Secondly, those who attend citizens’ assemblies, and spend their weekends and everything else, are almost by definition not representative in the sense that we are. What makes us representative is that we are elected, but that does not make us normal in that sense. What it means is that ordinary citizens have other priorities, which is a very good and sensible thing. It does not mean that those who are prepared to participate are necessarily representative of the broader public.

[Simon Hoare]

The right hon. Gentleman is absolutely right, and I would add that another thing they are not is accountable. We are accountable: we are accountable in a society with a free press and media, and we are accountable through the ballot box. We can hold surgeries where people come to see us and ask, “Why did you vote for that and against the other?” and so on. It is about not just the representation element, but the accountability.

As somebody who started as a grassroots member of a political party and got involved in politics by joining an action group to save a field at the rear of a cathedral that somebody wanted to convert into a car park, I am hugely in favour of the power of the citizen to get involved and effect change. It is demonstrable and clear, certainly to my mind, because I am a product of it. As MPs, let us facilitate and empower more people. Let us convene more discussions locally to get people involved so that they can see the merits of this place and so that once again, or continuingly, they can see the House of Commons, their council chamber and other forums where elected people serve as their true, real, legitimate and representative citizens’ assembly.

Question put and agreed to.

Levelling Up, Housing and Communities

Simon Hoare Excerpts

Monday 15th April 2024 Written Corrections

The following extract is from the Westminster Hall debate on Conduct of Elections on 20 March 2024.

[Simon Hoare]

There is a very long list of qualifying documentation for voter ID, and 99% of all voters have at least one form of acceptable ID, and many have more. There is also the voter authority certificate, which is free and lasts for three years. That meets the needs of the 1% of the population who do not have an acceptable form of ID.

[Official Report, 20 March 2024; Vol. 747, c. 339WH.]

Written correction submitted by the Under-Secretary of State for Levelling Up, Housing and Communities, the hon. Member for North Dorset (Simon Hoare):

[Simon Hoare]

There is a very long list of qualifying documentation for voter ID, and at least 96% of all electors have at least one form of acceptable ID, and many have more. There is also the Voter Authority Certificate, which is free and which does not expire. That meets the needs of the small proportion of the population who do not have an acceptable form of ID.

Building Safety

The following extract is from the statement on Building Safety on 26 March 2024.

[Lee Rowley]

Yet already, almost 60,000 homeowners have peace of mind that remediation is complete, and a further 300,000 dwellings are well on the way to the same.

[Official Report, 26 March 2024; Vol. 747, c. 1415.]

Written correction submitted by the Minister for Housing, Planning and Building Safety, the hon. Member for North East Derbyshire (Lee Rowley):

Conduct of Elections

Simon Hoare Excerpts

Wednesday 20th March 2024 Westminster Hall

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Simon Hoare)]

It is a pleasure to serve under your chairmanship, Mr Mundell. I am grateful to the hon. Member for North East Fife (Wendy Chamberlain) for instigating this debate. The topic set out on the Order Paper is “the conduct of elections”, which is a wide canvas. We had no reference to any specific points the hon. Lady was going to draw the House’s attention to, so I am working from manuscript notes based on my own knowledge as elections Minister.

Let me shoot stone-cold dead two foxes that the hon. Lady has tried to set running round Westminster Hall this morning. First, she said that she thought the Elections Act 2022 and subsequent guidance was—I quote directly —“a tool of the current Government to improve their own position.” It is absolutely not. I say gently to her that she cannot turn around in good faith and in all conscience and say that our electorates need to have faith and confidence in the robustness, resilience, honesty, transparency and integrity of the system, and then say, in almost the juxtaposed breath, that the Government were trying to rig the rules in their favour.

If the hon. Lady does not believe me, I ask her to look at the evidence and the facts. I suggest to the House that the results of last year’s local elections demonstrate beyond peradventure that even if they had been planned to improve the position of the Government, the plan did not work. They were not results that my party welcomed. I am afraid that the hon. Lady’s fox is not only shot but buried on that point. I take her point entirely that the public need to have faith in the system, and I politely suggest to her that it is our job as parliamentarians, along with our colleagues across the local government sector, to ensure that the public have that. Her opening remarks did not help in that important endeavour.

The second fox I want to shoot and butcher is that we are in some way undermining the independence of the Electoral Commission. The commission’s independence is sacrosanct. The chairman and the chief executive of the commission know that, and we work well and closely together. I made that point very clearly on the Floor of the House when I made my statement. We have to have faith and confidence in the robust independence of the commission, and that is a ditch I will die in to defend.

The hon. Lady raised a number of other issues. She described almost as some sort of elections equivalent of the Russian revolution our revocation of the Fixed-term Parliaments Act. It was not an ancient piece of UK constitutional architecture; it was always envisaged to be a temporary piece of legislation, wisely brought in by the then coalition partners—the coalition of which the hon. Lady’s party was a key and important part—to provide stability and confidence for the markets and the electorate that there was a secure and stable Government that, having inherited an absolute horror show of a financial legacy from the Labour party, would take difficult decisions to restore the nation’s finances. The Act was always envisaged to be temporary; it is no longer required. It is for no other reason that it was revoked.

The hon. Lady spoke about the boundary reforms, which were long overdue. She will remember, although it was before her time and mine, that there was a bit of horse-trading between my party and hers and we had a referendum on changing the first-past-the-post system. My side won and her side lost, but the Liberals seem to be very poor losers and, rather like the SNP, who always try to resurrect the question of an independence referendum, they keep picking away at the scab of first past the post. I am not entirely sure that the electorate are with them on that, given the results of the referendum that was held on changing the voting system.

The Boundary Commission review of parliamentary seats was long overdue. We know full well that that will now take place every eight years, so the next review will be required to report by 2031 and will be based on the registers as at December 2028. It is about time we had that as part of an iterative process, to ensure that as populations grow and shrink, and new housing development comes on stream, our parliamentary boundaries broadly reflect an equal number of constituents to ensure that it really is one Member, one vote, and all of us are equal in this House.

[Wendy Chamberlain]

Will the Minister give way?

[Simon Hoare]

I might in a moment, but the hon. Lady covered a lot of ground and I want to give respect to her by covering the very serious and sensible points that she made.

On voter ID, the underpinning of the Act and the subsequent statutory instruments that we have brought forward is that we cannot rest on our laurels. The hon. Lady is absolutely right that in broad terms, the way our elections have been conducted in this country has been robust and fair, and everyone—both those who have won and, more importantly, those who have lost—has accepted the results, but I do not think we can rest on our laurels. She will know, as I do, that we are living in a changing world, in which western democratic principles are under acute pressure, and the rise of populism and social media brings challenges that our forefathers had not foreseen. To that purpose, we reflected on, reviewed and updated the rules that govern our electoral processes, in order to ensure that they are fit for purpose and demonstrably capable of being changed and reformed.

There is a very long list of qualifying documentation for voter ID, and 99% of all voters have at least one form of acceptable ID, and many have more. There is also the voter authority certificate, which is free and lasts for three years. That meets the needs of the 1% of the population who do not have an acceptable form of ID. We have a list, which is quite long, but it is not carved in tablets of stone. I hope the hon. Lady will welcome my saying that this is an iterative and organic process: as technologies change and new forms of ID come on board, Government will of course respond. We reviewed the situation post the local elections of 2023 and we will have to do a quick review post the coming elections in May 2024. Tweaks could easily be made, if required, in preparation for the general election later this year. I think that is the right way to go.

Turnout for the local elections in 2023 was broadly commensurate with that in previous years. The hon. Member for Strangford (Jim Shannon), who is no longer in his place, rightly referenced the fact that within boundaries of the United Kingdom, voter identification has been an accepted part of the electoral landscape in Northern Ireland—again, with no demonstrable negative impact on turnout.

The hon. Member for North East Fife and I share an absolute keenness—as do the Government, the Electoral Commission and local government—to maximise our attention to what all the survey work has pointed to, which is driving up registration and participation of those we might colloquially describe as hard-to-reach groups. That can be students, the very elderly, people from black, Asian and minority ethnic communities, or those with disabilities—in particular disabilities that make it a challenge to come into new spaces, or to meet and interact with new people.

We take this matter absolutely seriously and I want to put it clearly on the record that we want to make sure that anybody and everybody who is eligible to vote in any electoral event has the right to do so, and that if they wish to exercise that right they must be free to do so. We are deploying the strength and power of gov.uk, working with the commission, turbocharging the engines of local government communication, and reaching out to faith groups, disability groups and the voluntary sector. We are focused, Exocet-like, on driving up registration in those communities, as well as participation, with a greater awareness of voter ID. That is key and it is right. If the hon. Lady and I agree possibly on nothing else in this debate, I hope that she will welcome that.

On overseas votes, the hon. Lady repeated a line that is the third fox that I need to shoot in response to her remarks. A qualifying overseas voter cannot just choose willy-nilly which constituency to register in. I appreciate that sitting in the ivory tower of Marsham Street, one can sometimes seem slightly caught between theory and practice, but on Monday I visited a local authority election office, where I completed some of the applications processing—I did it all fairly and was supervised! We admitted two applications, but one was not sufficient because the applicant said they had been on the paper register but that had not been digitalised. Such applications are then put into the “pending” box and further proof of ID is required to prove where the individual, if qualifying, lived in that constituency and therefore that they have a right to vote there. I know that some feared that parties would organise themselves to motivate people to apply to vote in their most marginal seats, but one has to demonstrate without any form of a doubt that they have a link to that last constituency. That is important.

The hon. Lady asked what I thought the numbers may be. We assess that the potential quantum, in totality —including those already qualifying to be overseas voters under the old 15-year rule—to be about 3 million.

[Wendy Chamberlain]

I want to make it clear for the record that that was not a third fox. I was not suggesting in any way that there would not be robust processes in place for people to register in a particular seat. I was asking about the numbers, because I think the Minister must accept that if we are making an estimate of 3 million, we cannot say exactly where those 3 million will be, and the numbers will alter the overall electoral register in each affected constituency.

[Simon Hoare]

The hon. Lady makes a good and clear point. Clearly, when it came to the subsequent boundary review—at a time when, one would have to presume, those who had qualified would have already taken up and exercised that right—those who were reviewing our parliamentary boundaries would take those numbers into account. That is the one number that will never move, because one will not be able to change a historical link to a constituency.

The hon. Lady made an important point about devolution and different settlements. I assure her that while there are differentials between the nations of the United Kingdom, the four of us who are charged ministerially with dealing with elections, and the Northern Ireland Office, work closely together to ensure that parity can be delivered as and when it can, and when it is deemed to be desirable, and to try to maximise the points that the hon. Lady talked about—namely, simplicity and transparency across these islands.

The hon. Lady mentioned automatic voter registration. Again, that is something that any Government would keep under review. We have decided that individual registration is the best way. We all talk about rights, but sometimes we do not talk about responsibilities, and I actually think that that individual motivation to register—deciding to go on the electoral register, obviously without being forced to vote—begins a contract between the young qualifying adult and the state in all its manifestations.

This has been a fascinating debate, which we now draw to a conclusion. I am grateful to the hon. Member for North East Fife. I just hope that I have assured her on the two key charges that she levied against us: the commission’s independence is clear and without challenge; and we are in no way trying to gerrymander. The Conservative party is the oldest political party in the world. We have always extended and widened the franchise, and that is a historical tradition that we intend to continue.

Question put and agreed to.

Draft Combined Authorities (Overview and Scrutiny Committees, Access to Information and Audit Committees) (Amendment) Regulations 2024

Simon Hoare Excerpts

Wednesday 13th March 2024 General Committees

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Simon Hoare)]

I beg to move,

That the Committee has considered the draft Combined Authorities (Overview and Scrutiny Committees, Access to Information and Audit Committees) (Amendment) Regulations 2024.

Good morning, colleagues, and good morning, Ms Rees—it is a pleasure to serve under your chairmanship. The draft regulations were laid before the House on 19 February, and I assure the Committee that they really are as interesting as they sound. They are best described as sensible housekeeping, because if approved by Parliament and made they will complete the legislative framework for overview and scrutiny committees and audit committees of combined county authorities. They make provision in relation to the membership and proceedings of such committees and the allowances for committee members. As Members will be aware, scrutiny and audit are always important, but arguably never more so than now, in a complex and sometimes testing financial environment for local government.

The wider context is that these committees are essential components of the architecture of accountability in combined authorities and combined county authorities. As more powers and resources are devolved to these important bodies and their Mayors, the responsibility to ensure sound governance and effective decision making in the interests of local people and taxpayers becomes ever more important. We are therefore not only ensuring through the regulations that the new combined county authorities have strong and effective overview and scrutiny committees, but pursuing further initiatives to develop this important architecture of accountability; in particular, we have published the English devolution accountability framework and a scrutiny protocol, and we intend shortly to issue revised statutory guidance on overview and scrutiny—[Interruption.] As Skippy the kangaroo bounds into the room, I will pause and welcome the hon. Member for Kingswood to his place, because I have not had the pleasure of doing so. This is the first time he and I have served on a Committee together, and it is a pleasure to do so. I hope he is enjoying his time in the House.

The regulations provide the foundation for the initiatives I have outlined in respect of combined county authorities. If the Committee will bear with me, I will speak briefly about some of the details. The regulations provide for the membership and proceedings of overview and scrutiny committees and audit committees of combined county authorities. They do so by extending the Combined Authorities (Overview and Scrutiny Committees, Access to Information and Audit Committees) Order 2017 so that it applies to combined county authorities as well as to combined authorities, which ensures parity between the two types of authority. At the end of the day, irrespective of which type they are, such bodies are responsible for and spending public money, so ensuring that there is parity of approach is common sense. I detect no dissent between the parties on that.

The regulations enable the payment of allowances to members of constituent councils of combined authorities and combined county authorities who are appointed to overview and scrutiny committees and audit committees. As a way of tidying up, we have also made a few minor changes to the 2017 order to reflect the inclusion of non-constituent members and their nominating bodies in the constitutional arrangements for combined authorities and combined county authorities, and to ensure that the provisions work for both types of authority.

The regulations accommodate the constitutional difference between combined authorities and combined county authorities. If the provisions of the 2017 order were simply applied without modification, there would be no duty on a combined county authority to enable a district council within its area that does not nominate a non-constituent member to refer a matter to the overview and scrutiny committee. The regulations recognise the legitimate interest of such district councils in certain decisions that could be made by the combined county authority by extending the referrals provision to include those councils where a matter relates to the council’s area. That extension also applies to the supply by the CCA of related documents to a council making a referral.

The new allowances provisions were included in the Levelling-Up and Regeneration Act 2023 at the request of some of the existing combined authorities. We believe, as they do, that that will aid quoracy at meetings of overview and scrutiny committees. The regulations enable combined authorities and combined county authorities to pay an allowance to members of their constituent councils who are appointed to overview and scrutiny committees and audit committees.

[Lloyd Russell-Moyle (Brighton, Kemptown) (Lab/Co-op)]

It is right to pay members of the combined authorities more, but there is always the slight problem that this is then seen as being about people fighting for posts to get more money, rather than about rewarding people who want to do the job. Is there not a case for the Government to look at paying councillors decent amounts in the first instance, rather than having a system of additional responsibilities? We all know that councillors receive less than the minimum wage if they work full time, and many do end up working full time or quasi-full time. One of the biggest barriers to being a councillor is that working people cannot afford to do it.

[Simon Hoare]

The hon. Gentleman makes an interesting point, although I am tempted to say it is probably a philosophical point rather than a policy point per se. I served—I think he might have served as well—for 14 years as an elected district or county councillor, and I always saw it as an office rather than as a job. That is why I never thought it was correct, for example, for councillors to be part of the local government pension scheme, which should be specifically reserved for employees. It is, of course, up to local authorities to decide what their allowances are. I certainly agree that being a cabinet member in an upper-tier or unitary authority is virtually a full-time job, and remuneration probably reflects that. However, we should always make the distinction between full-time employment and elected office.

The hon. Gentleman asks a good question none the less, and we are responding to issues that leaders and others have raised with us. It is quite hard to recruit members to scrutiny, audit and, sometimes, pensions committees, principally because they are seen as rather dry and desiccated, not particularly sexy, and involve lots of tables with numbers written all over them. The issue is hugely important, and we will keep a weather eye on it. I am certain that section 151 monitoring officers and council leaders will check the motivations of members applying to go on these committees. The hon. Gentleman may be right, but I hope that he is not and that he will take comfort from the fact that we will keep the issue under review. We have identified a problem, which we are trying to solve, and I hope it does not create another problem, to which the hon. Gentleman alluded.

[Luke Hall (Thornbury and Yate) (Con)]

My hon. Friend is doing important work on speaking to councils to ensure that councillors whose children are born prematurely receive the same support as is available under the new Neonatal Care (Leave and Pay) Act 2023. Will this instrument ensure that it is communicated to combined authorities that, just as for councillors, those extra allowances should be kept open for someone who returns from having a child in neonatal intensive care?

[Simon Hoare]

My hon. Friend’s intervention is timely because it allows me to pay wholehearted tribute to the work he did on this issue when he was a Minister in the Department. He makes a powerful and compelling point, which he raised with me the week before last at departmental orals on the Floor of the House. The Act covers employees, and because of the differential I was discussing with the hon. Member for Brighton, Kemptown, it does not cover councillors per se. However, the moral argument to which my hon. Friend points is clear and unquestionable. I hope he will draw comfort from the fact that I have just this week signed off the text of a letter, which will shortly—certainly before purdah—go to council chief executives and leaders, that makes that point. If parents who happen to be councillors have the additional challenge of a premature birth, with all its concomitant additional family and caring demands, the last thing they should have to worry about is the six-month rule in relation to attendance at meetings, and if they hold down a job in the council that attracts a special responsibility allowance, that should not come into question.

As much as I might wish to, I cannot direct council leaderships to abide by that missive to the letter, but it would be perverse and contrary, to say the least, if a council leader was to say, “No, I am frightfully sorry, but we are not going to take that into account.” That would be rather inhumane, and I know from all my engagements with local government leaders that they are all humane to their fingertips. I thank my hon. Friend again for all the work that he did on the issue both as a Minister and from the Back Benches—a position to which, I have to say, I could never quite understand why he was returned. He was a first-class Minister, and it would be great to see him back in due course.

As I said, we have consulted, and we think we have responded positively. The draft regulations are a tidying-up exercise. They ensure that there is parity, that regulations are robust and transparent, and that there is local accountability, which is what all local council tax payers want to see. We believe that the draft regulations will be an important step in ensuring that our local government architecture is robust, resilient and fit for the future. On that basis, I commend them to the Committee.

--- Later in debate ---

[Simon Hoare]

I am grateful for the contributions from the hon. Members for Oldham West and Royton and for Brighton, Kemptown.

The speech from the hon. Member for Brighton, Kemptown sounded like a reprise of “I like potato and you like potahto”. Maybe we should have a musical duet at some point: he says “ad hoc” and I say “iterative, responsive and organic”. I think that we have been perfectly sensible in not having a one-size-fits-all, top-down approach, but in responding with full rigour in terms of the scrutiny of proposals for grassroots-authored changes to the local government landscape. That is probably the right way to go, on balance, because it allows us to work with the grain of local communities and their local elected representatives, rather than having some one-size-fits-all impost.

The hon. Members’ point is well made, however. There will come a time—I am not entirely convinced that the time is now, but it is probably fast coming—for what hon. Members on both Front Benches agree is an overdue and much-needed review of the funding formula, along with broader discussions about how local government is funded and the powers and responsibilities that it enjoys. One needs to review the new landscape—two-tier, unitary, county and unitary combined, devo deals, elected Mayors and so on—to ensure that the taxpayer is always securing best value for money and that the decision making is as simple as it can be and as transparent as it needs to be. There is a piece of work that I see clearly enveloped within the debate, which I am sure will come in the next Parliament, about how we fund local government.

Devo deals per se fall under the ministerial responsibility of the Under-Secretary of State, my hon. Friend the Member for Redcar (Jacob Young), so I will ensure that the remarks of the hon. Member for Brighton, Kemptown are brought to his attention. I am sure that if my hon. Friend sees fit, he will engage in correspondence. Maybe unusually for the hon. Gentleman, who sometimes has a reputation in this place for making a cheeky-chappy sort of point, he has made a sensible point and has made it well. His question deserves additional thought; I do not hold the portfolio or the corporate knowledge to respond to it in the detail that it deserves, but I will ensure that that happens.

To turn to the questions from the hon. Member for Oldham West and Royton, allowances for co-opted members and the rate of pay for councillors are within the discretion of each local authority. The hon. Gentleman makes the important point that we are at a transition stage. A lot of our councils are now multimillion-pound businesses. Are we still right to think of them as a sort of receptacle of the voluntary sector? If we want serving in local government to have a broad attractiveness, the whole area of remuneration must be taken into account to ensure that the scale of the challenge is attractive to people who may consider standing for election to local government.

[George Freeman (Mid Norfolk) (Con)]

I do not want to detain the Committee with a long digression on local government finance, but does my hon. Friend agree that, as well as remuneration for time, it might be an attractive incentive for councillors if the Treasury allowed them to retain some of the money they save through efficiencies, or that they attract through higher growth, and to put it back into local services? That would provide a strong incentive to attract great leaders—not for personal remuneration, but for the ability to do a great job.

[Simon Hoare]

I have huge sympathy for my hon. Friend. I think we will not be able to deal with these issues, and we will miss the most golden of opportunities, if, when we arrive at that position—and it will be in the next Parliament—we do not do so on a cross-party basis. The hon. Member for Oldham West and Royton is probably bored of hearing me say that I am absolutely convinced of the considerable and overwhelming merit of that approach. I say that because some of the delivery of new formulas and so on will extend beyond three years or the narrow confines of a five-year Parliament, which would not enable anyone to do anything particularly big, bold or challenging.

The hon. Member for Oldham West and Royton spoke about the merit of multi-year settlements, and I agree. That is a compelling and clear argument. It is helpful to councils and, as is often neglected—although not by the hon. Gentleman, I am sure—it allows those in our voluntary sector far greater certainty with regard to recruitment and planning if they can be certain that their commissioned fee will last for two or three years, rather than just a 12-month cycle. By definition, we will probably not attract the best people if all we say is, “You start on the 1st, and then you are on notice, because we don’t know if we will be able to renew your contract next time.” Those of us with direct local government experience know full well that, without the expertise and efficacy of our voluntary and charity sector, our communities would be very much the poorer.

The point made by my hon. Friend the Member for Mid Norfolk ties in very well with those made by the hon. Members for Oldham West and Royton and for Brighton, Kemptown. Within the conversation about how the funding model for local government is changed and evolved to meet the times, nothing should be off the table. It is a window of opportunity to recalibrate the future of local government and its relationship with the centre, which should sustain it in a practical way, not for a hand-to-mouth two or three-year spending settlement period, but for 10, 15 or 20 years. I see considerable merit in that in terms of value for the public purse and the quality and reliability of delivery of public service.

The hon. Member for Oldham West and Royton asked some specific questions. Yes, overview and scrutiny committees can call in. I certainly anticipate that scrutiny would cover trading companies and JVs. Yes, they can instigate best value reviews, and where local authorities have identified a lacuna of expertise, the recruitment of lay members to provide expert advice in certain areas—sometimes on a very bespoke basis, sometimes on a more permanent, standing basis—should be encouraged. I do not see any inhibitor in these regulations to allowing authorities to do that.

The hon. Gentleman asked about new burdens. This instrument is a tidying-up exercise. All authorities expect that they will have an element of scrutiny and audit. I do not see that qualifying as yet, if at all, as new burdens, but we will keep it under review. If we are able to invest to save, and to drive better-quality service more efficiently through the audit and scrutiny process, it would be a rather foolish Minister who set his face against delivering that. We see this not as a new burden, but as a continuation of an accepted task, and an important one.

I hope that that has answered the questions raised by my hon. Friend the Member for Mid Norfolk and Opposition Members. If it has not, I apologise, and I am sure that they can drop me a note. I am grateful for the support of the Labour party. I am also grateful to my friend, the hon. Member for North Tyneside, whose telephone provided both the noise of Skippy the kangaroo and, when the hon. Member for Brighton, Kemptown was speaking, one that sounded a little bit like a Muscovy duck. We are grateful to her, and I look forward to serving with her on another Committee for even more Percy Edwards-type noises.

Question put and agreed to.

Resolved,

That the Committee has considered the draft Combined Authorities (Overview and Scrutiny Committees, Access to Information and Audit Committees) (Amendment) Regulations 2024.

Local Authority Interventions: Sandwell, Liverpool, Thurrock and Tees Valley

Simon Hoare Excerpts

Thursday 7th March 2024 Written Statements

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Simon Hoare)]

All hon. Members will recognise the critical role local authorities play in providing services to their residents and being accountable to the communities they serve. I would like to update the House on actions the Government have taken in relation to four local authorities, which demonstrate the importance with which this Government see our role in ensuring the high standards that we set for local government are met. I am updating the House on the developments in the statutory interventions in Sandwell, Liverpool and Thurrock councils and on the Tees Valley Mayor’s initial response to the independent review published on 29 January.

Sandwell Metropolitan Borough Council

Following evidence provided by a governance review from its external auditor, Grant Thornton, Sandwell Council has been under statutory intervention since March 2022. The review included statutory recommendations to the council and detailed years of governance issues, leadership instability, and a breakdown in trust, respect and confidence between members and officers. These led to some significant failures. The review led the Secretary of State to decide that the council was failing to comply with its best value duty and consequently directions were issued and commissioners appointed.

Given Grant Thornton’s observation that “green shoots” of improvement had started to show at Sandwell, the intervention package was shorter and narrower than other interventions. I wish to update the House on the fourth and final report from the commissioners and the end of the intervention.

The commissioners’ fourth report

Since the beginning of the intervention, the commissioners have been clear about the aim of the intervention, setting out in their first report their “12 proxies for success”, as the House was updated on in the statement of 1 December 2022. These proxies brought together all the recommendations of the Local Government Association (LGA), CIPFA and Grant Thornton reviews, and commissioners reported against these proxies in each report.

On 20 December commissioners submitted their fourth report, setting out that the council is

“a far cry from the organisation first encountered”

in March 2022, and noting the considerable progress even since their third report. They observe

“the scrutiny and accountability systems, including performance and risk management, are robust and being upheld rigorously. The improvement work which was once seen as a standalone priority has now been interwoven with the “business as usual” strategic planning of the council.”

They also praise the staff at the council,

“who were eager to...work hard to improve”

from the outset. They conclude that the council is now an organisation that is “resilient and agile enough to provide its services to residents whilst withstanding adversity, and one with the plans, aspiration and people to strive for excellence independently”.

The commissioners conclude that

“the council is now meeting its best value duty and is capable of taking forward its improvement independently”,

recommending that the directions be permitted to expire as planned on 22 March and that they too leave their roles at the council on that date. Having considered carefully the evidence, including triangulation with the council’s own assessment of its progress and the follow up review from the external auditor, Grant Thornton, I am happy to update the House that the Secretary of State and I are satisfied that the council is now meeting its best value duty. Consequently, when the directions expire on 22 March 2024 the intervention will end.

The commissioners’ fourth report and my response to them and to the leader of the council will be published on www.gov.uk today.

It is right that, as the commissioners acknowledge, improvement “is never finished”: Sandwell is not perfect. However, the draft statutory guidance on best value standards and intervention, which we intend to finalise shortly following the consultation last summer, is clear that

“local authorities are not expected to be perfect before an intervention ends”

and that an intervention should

“resolve incidents of failure to the point where the authority can demonstrate that it now has the capacity and capability to sustain its own journey of continuous improvement without the need for further external involvement.”

It will take continued, concerted effort for the council to sustain the rate of improvement, build further resilience and ultimately continue to improve outcomes for residents. The commissioners note that part of that striving for excellence will include the continued development of the council’s partnership working with its neighbours, the wider local government sector and supporting its staff and elected members.

Next steps

To that end, I am pleased to note that the LGA will be working to support Sandwell over the next 12-18 months, to ensure a steady path out of intervention. As I said in the Chamber in the Adjournment debate on 18 January on the governance at Sandwell, “falling back into the old ways...will not be tolerated.” We will keep a weather eye on Sandwell, and continue to be there to support, advise and encourage.

Liverpool City Council

On 13 December 2023, I announced that the Secretary of State was minded to change the scope of the intervention at Liverpool by returning certain functions to the council by March 2024, together with updating the directions as part of a planned and phased transition towards the end of the intervention. Today I am confirming that these proposals will be implemented.

The intervention started on 10 June 2021 following a best value inspection. Since then, the scope of intervention has changed, and there are five commissioners who can exercise functions relating to regeneration, highways, finance, and property and their associated governance.

When I announced to the House that I was publishing the commissioners’ fourth report, together with the Government’s response that the Secretary of State was minded to change the intervention, I invited representations on the proposals by 2 January 2024. Having considered carefully the two representations received (one from the council and one from a member of the public), and other relevant information, the Secretary of State has decided to implement those proposals.

Accordingly, the Secretary of State has returned certain functions to the council, recognising the progress made and as part of a planned and phased transition towards the end of the intervention. The commissioners will no longer exercise the following functions:

all executive functions associated with highways, from 31 March 2024;

the requirement from section 151 of the Local Government Act 1972, to make arrangements for the proper administration of the authority’s financial affairs, and all functions associated with the strategic financial management of the authority, from 31 March 2024, to include:

the power to amend budgets where commissioners consider that those budgets constitute a risk to the authority’s ability to fulfil its best value duty; and

providing advice and challenge to the authority in the setting of annual budget and a robust medium term financial strategy (MTFS) for the authority.

all functions in relation to the appointment, organisation and performance of persons to positions the holders of which are not designated as statutory officers, and the designation of those persons for tiers 1 to 3 from today.

In addition, directions issued to the council today direct the council to undertake a range of actions to the satisfaction of commissioners, including to:

allow commissioners to provide advice and challenge to the authority on strategic decisions related to its finance function, including the setting of annual budgets and medium term financial strategy;

continue to build on improvements to rebuild trust with residents, in particular to improve FOI performance, report writing and systems to record delegated decisions;

complete a review of the strategic risk management and implement a strengthened mechanism based on its recommendations;

significantly progress the implementation of the corporate landlord model, commence the stock condition surveys to understand better the asset base, develop comprehensive asset management plans and produce a revised structure for the property directorate; and

continue to establish and implement a cultural change programme which embeds a customer focus, performance management culture, systems and reporting across the organisation.

The Secretary of State has removed directions to the authority that commissioners have confirmed have been met and revoked the directions issued on 10 June 2021 and 8 November 2022. Outstanding actions have been retained in the new directions issued today, and commissioners will continue to exercise functions relating to governance, regeneration, property management and appointments (for directors of property, human resources/organisational development and statutory officers).

I also wish to put on record our thanks to Joanna Killian who will be leaving the commissioner team on 17 March when she becomes the chief executive to the Local Government Association.

The new directions, accompanying explanatory memorandum, representation from the council, and my response to the commissioners will be published today on www.gov.uk.

The next commissioners’ report, due in March 2024, will provide a full assessment by commissioners of the intervention and will be vital to support our decision on how to proceed. I will update the House at that time.

Thurrock Council

Thurrock has been in intervention, with commissioners appointed, since 2 September 2022, after grave concerns were raised about the scale and commercial risk facing the council. On 1 March 2023 the intervention was expanded.

On 22 January 2024, commissioners submitted their third report on the progress of the intervention. This describes continued progress, with the council “owning its recovery” and demonstrating it is able to take difficult decisions. I am pleased to see the strengthening of member officer relationships and that all councillors agreed to adopt and commit to the enhanced improvement and recovery plan in October; it is important that there continues to be a whole-council approach to Thurrock’s recovery.

While the progress to date is to be commended, there is still much to do, including addressing ongoing governance requirements and ensuring the council has underpinning plans to implement its recovery, including a corporate plan and operating model. The financial situation should not be underestimated, with commissioners making clear that the challenge remains substantial.

There has undoubtedly been good progress at Thurrock, and it is imperative focus is maintained in the months ahead on the long-term priorities, to continue to build upon and drive the necessary improvements. The commissioners’ report and my response will be published today on www.gov.uk.

Tees Valley Combined Authority

On 29 January my hon. Friend the Minister for Housing, Planning and Building Safety made a statement to this House alongside the publication of the report of the independent panel investigating the Tees Valley Combined Authority’s oversight of the South Tees Development Corporation and Teesworks joint venture.

The review was commenced in June 2023 following very serious allegations made in the House regarding potential corruption and illegality. As my hon. Friend confirmed, the independent panel found no evidence of corruption or illegality and the panel made several useful and important recommendations on governance and oversight.

Upon publication of the report the Secretary of State wrote to the Mayor and asked for an initial response to the report and its recommendations by 8 March: this was received on 28 February and also published by Tees Valley Combined Authority. The Mayor has accepted, in principle, all the recommendations for the combined authority and development corporation. His response proposed actions for each of the 26 recommendations for the combined authority, development corporation, and partners, as well as outlining actions he has already taken, including establishing a combined authority working group to take this forward. I welcome the independent support the Mayor is seeking from the LGA and the Centre for Governance and Scrutiny and have encouraged him to make full use of independent peer challenge and support.

I am encouraged by the progress within the first month and keen to give time now for the Mayor to develop his plans further and implement the changes required. These will enhance the successes of the Teesworks regeneration by ensuring governance arrangements and accountability are strong and transparent, and supported by robust scrutiny. Given the issues raised in the report, it is important that rapid progress is made that engages comprehensively with the substance of the report’s findings to implement lasting change. To that end, I look forward to receiving further updates from the Mayor, which I have asked for initially after six months.

I am confident that the Mayor and his cabinet will implement successfully their plans and continue their important work regenerating and bringing new jobs to the Tees Valley. The Mayor’s response to the review and the Secretary of State’s reply will be published today on www.gov.uk.

Conclusion

I want to acknowledge the work of the dedicated staff who deliver the important services of local authorities, on which local residents depend. I also want to thank the commissioners in Sandwell, Liverpool, Thurrock, and other councils in statutory intervention, for all they do. I will deposit in the House Library copies of the reports and associated materials.

[HCWS319]

Draft Representation of the People (Variation of Election Expenses and Exclusions) Regulations 2024

Simon Hoare Excerpts

Tuesday 5th March 2024 General Committees

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Simon Hoare)]

I beg to move,

That the Committee has considered the draft Representation of the People (Variation of Election Expenses and Exclusions) Regulations 2024.

It is a pleasure, Dame Angela, to serve under your chairmanship.

The draft regulations uprate the maximum campaign spending limits for Greater London Authority and local authority mayoral elections in England to reflect the changes to the value of money. This statutory instrument also provides an exclusion for reasonable security expenses—an issue which I think requires no further amplification from me—from various election campaign spending limits. Finally, the draft regulations make some technical amendments to remove drafting that is now redundant from the Police and Crime Commissioner Elections Order 2012.

Elections rely on the ability of political parties, candidates and other campaigners to communicate their views so that voters may make an informed decision at the ballot box. If approved by Parliament, this draft statutory instrument completes the package of reforms that the Government announced in July 2023 to uprate reserved and accepted party and candidate spending limits and donation thresholds. This is a necessary action, as many of the statutory limits, which are set in absolute terms, have not been uprated in recent times. If we do not uprate them in line with inflation, it means that they continue to be lower in real terms, which has a real impact on campaigning.

Furthermore, no one should feel afraid to participate in our democracy. In the past eight years, we have witnessed, as we all too horribly remember, murders of two colleagues, Jo Cox and David Amess. The safety of parliamentarians and candidates is important and, in recent years, the Government have introduced numerous measures to tackle intimidation in public life. It is of the utmost importance that candidates feel safe to campaign. The Government are therefore explicitly exempting reasonable security expenses from contributing to spending limits for political parties, candidates and other campaigners at reserved and excepted UK elections. I am pleased to confirm that this fulfils a recommendation made by the Jo Cox Civility Commission in its recent report, “No place in politics: tackling abuse and intimidation.” I am sure that the whole Committee will welcome that response.

Turning to specifics, the draft regulations will uprate the spending limits for candidates at GLA elections and local authority mayoral elections. The various spending limits for GLA elections have remained unchanged since they were set in 2000. Due to such a significant gap, the regulations will uprate the spending limits by 81.05%. That means that the limits for a candidate at an election for the Mayor of London will increase from £420,000 to £760,410; the limits for a candidate at an election of a constituency member of the London Assembly will increase from £35,000 to £63,360; and for an individual or party list candidate at the London-wide Assembly election, the limits will change from £330,000 to £597,460.

The draft regulations will also uprate the spending limits for local authority mayoral elections in England by 29.09%. The uprating is done from 2017 to align with the new spending limits for combined authority and combined county authority mayoral elections, recently approved by Parliament in the Combined Authorities (Mayoral Elections) Order 2017 (Amendment) Regulations 2024. This is to ensure parity between mayoralties, and it means that the limits for local authority mayoral elections in England will change from £2,362.059 per elector to £3,040.08 per elector.

The draft regulations will provide clarity for parties, candidates and campaigners, as I say, by explicitly exempting reasonable security expenses from contributing to the spending limits for candidates, political parties and third-party campaigners at UK reserved and excepted elections, other than local government elections in Northern Ireland. The Government will introduce an equivalent exemption for local elections in Northern Ireland in due course. The regulations will not apply to security expenses at devolved elections in Scotland and Wales. The Scottish Government have separately legislated to make similar provision and the Welsh Government have recently consulted on doing so as well.

Many parties and candidates already take the view that security expenses are, in general, not election expenses. This exemption will put that view beyond any doubt and ensure that campaign spending limits are not a barrier to provision of security during election campaigns. I thank the Electoral Commission for drawing the Government’s attention to this point of law and for its support in getting the drafting of this important exemption right.

The draft regulations make minor technical and consequential changes to remove police areas of Greater Manchester, North Yorkshire and West Yorkshire from the Police and Crime Commissioner Elections Order 2012. [Interruption.] At the very mention of West Yorkshire, the hon. Member for Leeds North West arrives in Committee, and he is most welcome.

Those functions have been transferred to the relevant Mayors by separate legislation, so these regulations do not make a substantive policy change. They simply remove the redundant drafting from the 2012 order to ensure that the law accurately reflects that position.

Before uprating election spending limits, the Government consulted the members of the Parliamentary Parties Panel on two occasions. The parties were first consulted in 2020 ahead of uprating spending limits for candidates at local elections in England. In September 2022, the Government wrote to the members of the Parliamentary Parties Panel again regarding uprating election spending limits and exempting reasonable security expenses from those limits. The responses received indicated support for increasing various spending limits and also endorsed exempting security expenses. As is statutorily required, the Electoral Commission was formally consulted on this statutory instrument.

In conclusion, the uprating of campaign spending limits at GLA and local authority mayoral elections in England to reflect inflation is necessary. The significant gap since the limits were last set and the current high level of inflation mean that the uprating exercise is required to avoid the spending limits putting greater constraints on campaigners than originally intended.

I am sure I speak for the whole Committee when I say that violence and intimidation cannot and will not be tolerated and have absolutely no place in our public and democratic life. The security expenses exemption will bring clarity and reassurance for parties, candidates, third parties and those who enforce the rules as to their ability to incur security expenses without it impacting on their overall spending limits.

--- Later in debate ---

[Simon Hoare]

I am grateful to the hon. Lady for her in-principle support for this measure and for her general approach to the issue. With regards to timing, this is the fourth of a quartet of SIs dealing with these matters. The Government will of course always strive to meet the Gould principle: we aim to comply with the principle wherever possible. This was a judgment call. I will be perfectly frank with the hon. Lady and with the Committee: we could have delayed this until after the elections in May. We took the view that, given the need for clarity on security and on upgrading, it was better to do it now. I take entirely the point that she made that it is relatively close to May to make the decision, but I took it in good faith, believing it to be helpful to candidates, particularly on security.

As for how the guidance on expenses will be dealt with, these things have to be done in a sensible and prudent way. Given the temperature of some of our political discourse in this country, I am tempted to say that security issues trump all, and the Electoral Commission and others who inspect candidates’ returns will take that into account. That is not an excuse to defray other campaigning costs under the banner of security. To do so would not only be wrong; it would also be deeply dangerous and offensive to those whose memory I mentioned in my opening remarks, and to others. The hon. Lady was right to point to the spirit of International Women’s Day and the disproportionate amount of abuse that female politicians receive, irrespective of party. We would do well to bear that in mind.

As my right hon. Friend the Prime Minister said on Friday outside Downing Street, our democracy feels slightly under threat. The defending democracy taskforce, which I sit on with my right hon. Friend the Minister for Security is bringing together a whole raft of agencies and involved parties to ensure that everybody who takes part in our democratic life, whether they are a deliverer, campaigner, door knocker, putter-up of posters, candidate, candidate’s agent, a member of a candidate’s family or whoever, feels safe and secure in fulfilling that important role. If we want people to stand, they must feel safe to be able to do so. I know that the hon. Member for Vauxhall will agree with me on that. The whole purpose is to ensure that security is understood clearly by those standing and helping in those elections and those monitoring and regulating the expenditure.

We take this issue seriously. Where we think that there are new burdens, as the hon. Lady will know, with regard to voter ID and changes to postal votes, we have created a new burdens fund for local authorities. We keep those issues entirely and consistently under review, because—without sounding too lofty, because I think that there is comity between the Front Benchers on this— we really cannot put a price on the functioning of our democracy. The Government stand ready to do whatever they can, wherever and however they can, to ensure the safe progress and conduct of our elections such that when results are declared, irrespective of which body there is an election to, the victorious are confident in the legitimacy of their victory, as are their supporters and voters, but, more importantly—I suppose this is really the fulcrum on which our democracy rests and works— the defeated know that they lost fairly, squarely and legitimately. Everything that we have been doing post the Elections Act 2022, with all the flow-through of statutory instruments, is designed with that key importance in mind. I hope that that is helpful to the hon. Lady.

Question put and agreed to.

Oral Answers to Questions

Simon Hoare Excerpts

Monday 4th March 2024 Commons Chamber

[Mr Toby Perkins (Chesterfield) (Lab)]

5. If he will make a comparative assessment of trends in (a) the level of local government financial settlements and (b) the number of cars damaged as a result of potholes in the last 10 years.

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Simon Hoare)]

We have made available up to £64.7 billion for local authorities through the 2024-25 local government finance settlement. Local authorities can decide how to spend the majority of that funding. The Government are also investing more than £5 billion into local highways maintenance in this Parliament. In October, we announced a further £8 billion to fix our roads.

[Mr Perkins]

GoCompare’s recent pothole report described the potholes in Tory-run Derbyshire as the very worst in England. The Conservative council leader was clear in his view that it is funding decisions from central Government that have forced the county to adopt what he called the totally ineffective “sticking plaster and patching approach”. He said that the funding from the Government

“doesn’t touch the sides of the issue for counties”

across the country. Why should Derbyshire motorists pay a Tory pothole tax, with tyres, springs and suspensions all constantly needing repairing as a result of the state of our roads?

[Simon Hoare]

For the hon. Gentleman’s benefit, let me repeat those figures of £5 billion for local highways maintenance and the additional £8 billion announced in October. That will fill holes, including in Derbyshire and his constituency, to support motorists, the economy and people going about their business.

[Mark Pritchard (The Wrekin) (Con)]

It is normal in these circumstances to invite a Minister to visit a constituency. The Minister is welcome to visit my constituency, The Wrekin in Shropshire, and the Telford and Wrekin borough, but if he visits the Telford and Wrekin borough bit, could he bring a spare tyre? The potholes there are enormous. I thank him for allowing £32 million to be released over the next 11 years to ensure that those potholes are filled. Rather than a pothole tax, may I thank him for the pothole fund? Finally—[Interruption.] I will not give a “finally”, but he is very welcome to visit. Bring a spare tyre!

[Simon Hoare]

As I struggle with my Lenten observations, I need no lessons about spare tyres—it is all about trying to get rid of spare tyres, as far as I am concerned. I am grateful for my right hon. Friend’s comments. The Wrekin is a part of Shropshire that I know well. Those sums can and should be used by upper-tier authorities, which are the highways authority, to ensure that their networks are working well, smoothly and safely. That benefits all, and the Government are putting up the money to allow them to do that.

[Mr Speaker]

I call the shadow Secretary of State.

[Angela Rayner (Ashton-under-Lyne) (Lab)]

Public service workers and local leaders across the country are working incredibly hard to improve their local areas and provide vital services, so rather than the begging bowl culture that makes them bid for money, will the Minister take forward Labour’s commitment for a long-term, more secure funding settlement to allow them to plan for the future?

[Simon Hoare]

I am intrigued by what the right hon. Lady proffers to the House. Only a few weeks ago, in the debate on the local government finance settlement—none of her colleagues apart from the hon. Member for York Central (Rachael Maskell), the hon. Member for Sheffield South East (Mr Betts), who chairs the Levelling Up, Housing and Communities Committee, and those on the Front Bench could be bothered to turn up and speak on it—the hon. Member for Blaydon (Liz Twist), who is sitting next to her on the Front Bench, said:

“As I will come on to say shortly, we will have a review to look at the long-term plans. We understand the problems that local government is facing.”—[Official Report, 7 February 2024; Vol. 745, c. 326.]

May I say to the right hon. Lady that part of the job of being in Opposition is to work out the policies that she may want to deliver in government?

[Peter Grant (Glenrothes) (SNP)]

6. What steps he is taking to tackle Islamophobia.

--- Later in debate ---

[Mohammad Yasin (Bedford) (Lab)]

8. What his planned timescale is for reviewing the flood recovery framework.

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Simon Hoare)]

I am grateful to the hon. Gentleman for his question. I am pleased to report that the review of the flood recovery framework has already begun and I expect the work to be completed by autumn this year. We will, of course, update Parliament in the usual way when that review is completed.

[Mohammad Yasin]

My constituent Lucy owns Ride Leisure Events on Wyboston Lakes, which flooded again during Storm Henk. She cannot get insurance and her business is not entitled to compensation under the flood recovery framework because of the Government’s arbitrary decision to expect cash-strapped councils to cover the cost if fewer than 50 properties are impacted. It is very unfair that my constituent has fallen through the safety net. She will not be the only one, with property in Kempston regularly affected by flooding. Will the Minister crack that anomaly in the framework and help my constituent save her business?

[Simon Hoare]

I am sorry to hear about that case, and if the hon. Gentleman wishes to write to me giving details of the business, I will of course look into it. As for Storm Henk, 2,241 properties have been identified as eligible for grant support. That covers 16 upper-tier local authorities, and to date payments of £788,743 have been reported by authorities to impacted householders and businesses. There always has to be a rubric in these cases, and this issue will be considered during the flood recovery framework review, on which, as I have said, we will report back to the House. However, the offer is there: if the hon. Gentleman wishes to write to me, I will happily look at what he has to say.

[Alexander Stafford (Rother Valley) (Con)]

Whiston has been flooded repeatedly over the past decade, and there is a huge ongoing issue, but Rotherham council recently approved the building of 450 new homes there. Whiston Parish Council, which is independently aligned and thus not party political, called a special public meeting about the plans, which show water running uphill—which I believe it does not do—and floodwater draining into a non-existent stream. This surely demonstrates that Rotherham Council does not understand the issue of flooding. Does my right hon. Friend agree that all councils, including Rotherham, have a responsibility not to build on floodplains?

[Simon Hoare]

My hon. Friend has raised an important issue. Between them, the local planning authority and the Environment Agency should always find the most appropriate sites for development and take hydrology and water management into consideration. The Minister for Housing, Planning and Building Safety, my hon. Friend the Member for North East Derbyshire (Lee Rowley), will have heard what my hon. Friend has said, and may contact him in due course.

[Alistair Strathern (Mid Bedfordshire) (Lab)]

10. Whether he has had recent discussions with local authorities on adopting private roads on new estates.

--- Later in debate ---

[Florence Eshalomi (Vauxhall) (Lab/Co-op)]

This week’s Budget will be a big one for young people—16 and 17-year-olds—who are starting work or making important education choices, yet they currently have no say on who will be the next Government. We on the Opposition Benches believe in our young people. Will the Government act now to give 16 and 17-year-olds a say in the next general election?

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Simon Hoare)]

The hon. Lady makes a case for lowering the voting age—one that I do not support and the Government do not support. The age of 18 is seen as the age of maturity in this country and many others across the world. It seems to have served us pretty well up to now and I see no particular reason to change it.

[Marco Longhi (Dudley North) (Con)]

T3. Will the Minister join me in congratulating South Staffordshire Council on serving an enforcement notice to rebuild the Crooked House pub? Will he also look favourably at measures I will be bringing forward to ensure that heritage pubs are better protected, because, as he will know, the Crooked House and many others have had no protections at all?

--- Later in debate ---

[Simon Hoare]

Yes.

[Luke Hall (Thornbury and Yate) (Con)]

Councillors will not be covered by the newly passed Neonatal Care (Leave and Pay) Act 2023 and are at risk of losing extra responsibility allowances if they have a child who spends time in neonatal care. Will the local government Minister issue guidance to councils, asking them to ensure that all parents are protected if their councillors find themselves in those most difficult of circumstances?

[Simon Hoare]

My hon. Friend has worked on this campaign. We spoke about it last week and I understand entirely the merits of the argument he makes. So powerful is he as an advocate that I have already put work in hand to deliver what he is talking about.

[Richard Foord (Tiverton and Honiton) (LD)]

On the community ownership fund, it is welcome that the match funding requirements for local organisations have been reduced to 20%. In future rounds, could the criterion around match funding take account of prior investment by the community, such as the very many small donations that people in the Axe valley area gave to build Seaton community hospital?

Local Government Finance Settlement Update

Simon Hoare Excerpts

Thursday 29th February 2024 Written Statements

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Simon Hoare)]

On 5 February, my right hon. Friend the Member for Surrey Heath (Michael Gove) set out the final local government finance settlement for England for 2024-25. The final settlement includes new funding for local authorities worth £600 million and makes available up to £64.7 billion for local authorities in England, an increase in core spending power of up to £4.5 billion, or 7.5% in cash terms—an above-inflation increase—on 2023-24.

As a result of this settlement, the vast majority of local authorities will be able to set balanced budgets in 2024-25 and continue to deliver vital services for their communities.

Members of the House will be familiar with the small number of local authorities with severe local failure, where the Government have had to step in and take the most serious action through statutory intervention. These authorities are Birmingham City Council, London Borough of Croydon Council, Liverpool City Council, Nottingham City Council, Sandwell Metropolitan Borough Council, Slough Borough Council, Thurrock Council and Woking Borough Council. The House receives regular updates on the progress of these interventions. In some of these cases, significant local failures in governance and financial management have resulted in acute financial failure, and these councils have asked the Government for continued support to help them set budgets including for 2024-25.

In addition, the Government have always stood ready to engage with local authorities who may request support on an exceptional basis due to local issues that they are unable to manage themselves. While those discussions are confidential, the Government are committed to making the details of any support that is agreed public, in the interests of transparency. Today, my Department is publishing on www.gov.uk details of in-principle capitalisation directions provided to a small number of these local authorities. I will deposit copies of any relevant documents in the Library.

Capitalisation directions permit a local authority, in specific and exceptional circumstances, to meet revenue costs through capital resources, enabling them to manage budget pressures over time—for example through the sale of council-held assets. They do not include any additional direct grant funding. At this stage, and in line with precedent, the Government have provided these local authorities in-principle support only, to ensure that they can set their 2024-25 budgets and deliver vital services for their communities.

In line with the usual framework for agreeing capitalisation directions, appropriate conditions will apply. These are intended to ensure that the process is only used in circumstances where it is truly necessary, address the drivers of the issues that have led to local authorities requesting support, and ensure continued progress towards achieving financial sustainability. In all cases, the Government expect these local authorities to take into account the need to reduce wasteful expenditure, and ensure every area is making best use of taxpayers’ money. Where statutory interventions are in place, any final agreement to support will be contingent upon the demonstration of ongoing improvement, transformation and recovery.

Where the Government have agreed to provide support, it is essential that appropriate assurance arrangements are in place. Where appropriate, any final agreement to support will be conditional upon the completion of rigorous external assurance reviews to assess, at a minimum, the local authorities’ financial management practices, and the production of improvement and transformation plans that focus on securing the local authorities’ medium-term financial position. The Government are taking additional action in the case of Plymouth City Council, which has requested a very significant capitalisation as a direct result of the incorrect accounting treatment of a transaction in 2019-20 through which the council borrowed to pay off a large part of its pension deficit. Given the unusual nature of Plymouth’s approach, the in-principle capitalisation is conditional on a thorough, independent investigation into the transaction.

I am clear that the Government will not hesitate to take action if needed to protect local taxpayers.

[HCWS300]