Localism Bill

Lord Jackson of Peterborough Excerpts

Monday 17th January 2011 Commons Chamber

[Caroline Flint]

Supply is important on all counts: supply in social housing, supply in rented housing, and, indeed, supply of affordable homes for people to buy. There is, however, absolutely nothing in this Bill about the private rented sector. In fact, in the name of protecting home owners—he referred to this earlier in departmental Question Time—the Secretary of State was all too keen to confer on private landlords with empty properties a general power to neglect for up to two years, rendering local councils powerless in the face of blight or antisocial behaviour. That is a dilution of local authority powers, as we enabled councils to take action after six months, and it was announced just three days before the Under-Secretary of State for Communities and Local Government, the hon. Member for Hazel Grove (Andrew Stunell) urged swift action to tackle empty homes, warning that empty properties attract squatters, vandalism and antisocial behaviour. The Minister even went to Oldham on a visit related to the policy, for which he had to apologise. It did not do the Liberal Democrat candidate much good. What we have here, therefore, is a chaotic policy and a hapless presentation, and it would be comic if the results were not so devastating.

The Secretary of State knows that I support sensible reform of social housing, but it must be reform that encourages employment, supports families and helps to create strong communities where people feel safe. Simply abolishing secure tenancies and kicking new tenants out of their homes when they get a promotion or a pay rise would just create fear and uncertainty. It would disrupt family life, and it could provide a disincentive to work. We on this side of the House could never support reforms that put a break on aspiration

[Mr Stewart Jackson (Peterborough) (Con)]

I fear the right hon. Lady is overegging the pudding, given that she must surely acknowledge that in her time as Housing Minister she very courageously brought up the issue of social rent tenure. She was faced with a hailstorm of opprobrium from her own party because of that very brave decision, and her party did nothing about the issue in 13 years in power.

[Caroline Flint]

My worry was about single men and women without dependants who were not in work, who had not received the right training and who, often, were going from foyer projects into social housing with a secure tenancy but no support to get them into work. For me, social housing should be a springboard into work—it should be a springboard for people to change their lives. I find it odd that the much-vaunted proposals of the Minister for Housing and Local Government were all about saying that councils will check someone’s pay packet to see whether they have had a pay rise. People may use a pay rise to improve their home, for example, by buying new curtains or decorating, but they could now face eviction. I do not understand that approach. It is not about creating strong and stable communities; it is about stopping people realising their aspirations and stopping the self-sufficiency of many families in future.

The cuts to the housing budget have already dealt a hammer-blow to the hopes of hundreds of thousands of families who are trying to get their own home, and on the big issue of how we get more new affordable homes the Bill is ominously silent. The Government seem unmoved by the fact that the number of planning permissions for new homes in the last quarter of 2010 was down 18% on the record low of the same period in 2009. They seem unmoved by the fact that the housing waiting list figures rose by 12% between July and September, and the Secretary of State is unmoved by the fact that his proposed reforms to the planning system in this Bill could make things worse.

Labour would support reforms that gave local people and communities a greater say and more control over the future of their local areas, because a fair and open planning system that involves local people does lead to better decision making and greater consensus about development. However, every community cannot thrive if the system is biased against change, and every community has to look to the future to create new homes, new workplaces and new jobs. A planning system that is devoid of any obligations to provide for the future, rather than just to protect the present, is destined to fail. There is a danger that the reforms in this Bill, including the scrapping of regional housing targets, could mean that the homes that this country so badly needs will not be built. Indeed, since this Government came to power local authorities have already ditched plans for 160,000 homes—that represents 1,300 homes every single day. Although the hon. Member for Grantham and Stamford (Nick Boles) tells us that the Prime Minister and the Deputy Prime Minister want “chaos” in the planning system, that is not what local people want. They want a planning system that respects the wishes of local communities but is able to deliver the homes that are so badly needed.

Last week, the voters of Oldham sent a very clear message to the Government about the rise in VAT, the trebling of tuition fees, the cuts to the police and the loss of vital community services. To those people, and those across the country, this Bill has nothing to say. For the council coping with huge front-loaded cuts, and facing rising costs for child protection and growing demand for social care, the Localism Bill has no answers. For the community that will see its potholes unrepaired, its streets unswept and its libraries shut down, the Localism Bill offers no help. For the councillor hoping for new jobs in their area, wishing to hold local agencies to account or wanting new affordable homes, the Localism Bill is worthless. For the resident who is worried about care for a loved one, living in fear of antisocial behaviour or concerned about their children’s youth club closing, the Localism Bill gives no assistance.

Labour knows that localism must mean more than dismantling local services and putting blind faith in volunteers picking up the reins, and that localism must serve more than those with the loudest voices and the deepest pockets. We are on the side of local people when it comes to the issues that they really care about. It is to Labour that they will look when this Bill fails to deliver, because they know that the Tories’ claim to believe in localism is a sham. Let the record show that we urged the House to decline to give this Bill a Second Reading.

--- Later in debate ---

[Mr Stewart Jackson (Peterborough) (Con)]

There speaks the authentic dinosaur aspect of the Labour party—class war. The view of the hon. Member for North West Durham (Pat Glass) is that those who want to do the best for their local community are middle class and sharp elbowed. It is sad that the Opposition amendment is so churlish, so grudging and lacking in any coherent alternative. Within its historical context, the Bill is both radical and transformative of local government, and I think that it stands comparison with some of the greatest legislation of the past 200 years, including the Municipal Corporations Act 1835, the Public Health Acts 1872 and 1875, and the Housing Act 1980, as it will make significant changes in the balance between local government and central Government. It is a reversal of Labour’s ratcheting, centralising tendency, which we have seen with the tsars, the guidance, the strategy, the inspections and the audits, which have traduced the best aspects of local government over the years.

The Bill has a coherent philosophy, because in the aspects that speak to the big society it tackles something that Labour never did—the issue of capital inadequacy and capital inequality. Labour presided over a widening of the gap between the richest and poorest 10% in its 13 years in power, because it did nothing about the ownership of capital, which the hon. Member for Stoke-on-Trent Central (Tristram Hunt), the expert on Engels, no doubt knows much about.

The Bill also puts forward a significant commitment to mutualism at the same time as it heralds a civic renewal of local government through our commitment to localism. The New Local Government Network—I have the privilege of serving on its management body—sets some key challenges for the legislation. Is it about a coherent localism, and will it link together coherently as a strategy for policy making and political decision making for citizens? Yes, it is coherent as a philosophy because within the context of GP commissioning, the integration of public health, local enterprise partnerships, directly elected police commissioners, and school and welfare reform, it sits as a coherent strategy for the future.

[Hazel Blears]

Does the hon. Gentleman support limiting the expressions of interest to be made by communities to run services to organisations that have a social purpose? Does he also support the regulations not being changed in future by the Secretary of State to include commercial organisations that would seek to make a profit?

[Mr Jackson]

The big society is about empowering local people to make decisions at local level. It should be seen not as lots of disparate, discrete initiatives at local level, but within the context of the Bill’s provisions. I see the general power of competence, for example, as a key unlocking a huge amount of progressive development by local authorities. The New Local Government Network specifically praised the general power of competence and said:

“This represents both a significant philosophical shift towards local democracy and a practical transfer of power to the local level.”

That is something that Labour never did in its 13 years of power, although it promised to do so in its 1997 manifesto.

The other important issue—unfortunately, one cannot look in detail at the 406 pages of the Bill and its 201 clauses and 24 schedules in five minutes—is whether it is permissive, as opposed to prescriptive, as an approach to local government? On any objective test it is an extremely permissive piece of legislation. The general power of competence will give local authorities autonomy by unlocking accelerated development zones, tax increment financing, asset-backed vehicles and real estate investment trusts.

[Dr Whitehead]

In his exposition of the overall coherence of the Bill, is the hon. Gentleman in favour of stripping out of the Bill as it progresses through the House those 126 clauses whereby the Secretary of State can remove the powers that have been put into the Bill, if he so requires?

[Mr Jackson]

The hon. Gentleman makes a fair point. The TaxPayers Alliance, in its publication in March 2010 entitled “The fiscal and economic case for localism”, speaks to an issue that unites the whole House—the fact that we are too centralised in the power balance between central and local government. Clearly, that is the case. The UK has one of the most centralised systems of government, taxation and spending in the western world. Less than 20% of our revenue is raised locally, as opposed to a G7 average of 60%.

An econometric study in Germany found that Government efficiency increased in direct proportion to decentralisation and could drive it up by up to 10%. That would release in this country the equivalent of £70 billion. The Spanish institute of fiscal studies found that fiscal decentralisation could boost growth in the economy by 0.5%. The Bill speaks to that concern. If Opposition Members ask me whether we are going far enough in fiscal autonomy and decentralisation, the answer is no, but the Bill is a bigger and better start than what went on before.

Opposition Members will notice that we have been consistent from the publication of the control shift document in February 2009, which is the theoretical and philosophical basis for the Bill. We have been pushing the concept of localism. When I served on the Public Bill Committee with the right hon. Member for Salford and Eccles (Hazel Blears) two years ago, we did not oppose multi-area agreements or leaders boards because we believed in localism.

[Tristram Hunt]

Will the hon. Gentleman give way?

[Mr Jackson]

I do not have time to give way, if the hon. Gentleman will forgive me.

The Bill is coherent, although I have two caveats. One is about shadow elected mayors, which was raised by my hon. Friend the Member for Keighley (Kris Hopkins), who is not in his place at present. I have concerns also about councils’ culpability for the payment of EU fines. There will no doubt be contentious debate about that in Committee.

The Bill stands comparison with our party’s historical commitment to civic renewal and civic pride, a golden thread which runs from Disraeli through to Joseph Chamberlain in Birmingham, Macmillan and the house building of the post-war Conservative Governments to this Bill. That is why I will vote for it later tonight.