English Devolution and Community Empowerment Bill (Third sitting) Debate
Full Debate: Read Full DebateVikki Slade
Main Page: Vikki Slade (Liberal Democrat - Mid Dorset and North Poole)Department Debates - View all Vikki Slade's debates with the Ministry of Housing, Communities and Local Government
(1 day, 17 hours ago)
Public Bill CommitteesI beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Clause 2 ordered to stand part of the Bill.
Clause 3
Single foundation strategic authorities
I beg to move amendment 4, in clause 3, page 2, line 27, leave out subsections (1) to (3) and insert—
“(1) A unitary district council or a county council may submit a proposal to the Secretary of State for designation as a single foundation strategic authority.
(2) A proposal under subsection (1) must be prepared in such form and contain such information as the Secretary of State may by regulations prescribe.
(3) The Secretary of State may by regulations designate a unitary district council as a single foundation strategic authority if—
(a) a proposal has been submitted in accordance with subsection (1), and
(b) the Secretary of State is satisfied that the designation is appropriate having regard to the need to secure effective and convenient local government in relation to the areas of competence.”
This amendment would restrict the Secretary of State's power to designate a single foundation Strategic Authority. Instead, a local authority would initiate the request by submitting a proposal to the Secretary of State.
With this it will be convenient to discuss the following:
Amendment 28, in schedule 1, page 87, leave out lines 1 to 29.
This amendment would remove the Bill’s provision for the Secretary of State to have powers to prepare a proposal for there to be a mayor for the area of an existing combined authority.
Amendment 29, in schedule 1, page 95, leave out paragraph 33 and 34.
This amendment would remove the Bill’s provision for the Secretary of State to have powers to prepare a proposal for the establishment of a CCA without a public consultation.
Amendments 4, 28 and 29 seek to ensure that this is a genuinely community-led devolution—I am sure that we will repeat that many times throughout the morning. Fundamentally, the Bill seeks to move decision making closer to home, which we welcome. However, closer to home needs to start at home, and we want it to be councils that take the initiative to establish a single foundation authority, not the Secretary of State. We also believe that the public should play a role, and therefore this process should involve consultation, which we believe these amendments will provide.
This is a really important issue for us; we think it is fundamental to the whole concept of devolution. As a result, my hon. Friend the Member for Stratford-on-Avon will speak to these amendments in more detail, and we will push amendment 4 to a vote.
We know there will be quite a degree of debate on this in due course. We sympathise with the objectives of the amendment, and we all share the concern that local people should be the ones who initiate change in the structures that govern their local areas, not the Secretary of State or the man in Whitehall who knows best. Therefore we have sympathy with the objective, and we shall return to that debate later on with some of the amendments around the structures.
I spoke to the leaders of Hampshire and the Solent just last week, and they were unanimously enthusiastic about what was being proposed, because they could see the opportunity. I am pleased that it is being voted on, and ultimately it is for places to come forward. What we have said to them is, “If you go through this journey, there are powers that you can draw down that will allow you to drive change in your areas.” The strategic authorities, combined authorities and constituent authorities can see the economic prospect. They see what is happening in Greater Manchester, the Liverpool city region and the west midlands, and they want that for their residents. That is absolutely right, and what we are doing is enabling and supporting that.
Let me talk about the backstop power provided here. We do not expect to use it, which is why it does not come into force at Royal Assent; it is there if we need to draw on it. The only reason it is there—because we think the demand and the momentum created by devolution will do the job for us—is in the instance where there are blockages. That means when constituent authorities that want to move forward are being resisted by a particular authority, we give ourselves the ability to intervene. The reason we are doing that is because we do not want any residents to be left out. We do not want areas to be devolution deserts, not being able to benefit from the economic opportunities and prospects provided.
The reality is that the only reason they are queuing at the Minister’s door to access devolution is that they are being denied access to funding if they do not. Let me give the example of Wessex: Somerset, Dorset and Wiltshire have all been unitarised over the past 10 years. They should have been in the ideal position, but they were overlooked for the first wave of devolution. They were apparently not ready, and I accept that fact, but they have missed out this financial year on more than £300 million—£159.29 for every single household in that area—compared with other areas. They have no real choice but to devolve to a single authority, because why would their residents think it is acceptable for them to miss out on £300 million? So it is not fair, or it is disingenuous, to suggest that this is not compulsion. The other point I want to make—
I beg to move amendment 30, in clause 3, page 2, line 32, at end insert—
“(3A) Before making a designation under this section, the Secretary of State must consult town and parish councils within the area of the proposed single foundation strategic authority.”
This amendment would require the Secretary of State to consult town and parish councils prior to the unitary district council or county council within which they are situated being designated as a single foundation strategic authority.
With this it will be convenient to discuss the following:
Amendment 266, in schedule 1, page 79, line 15, leave out subparagraph (b).
This amendment, and Amendments 267 to 273, remove the ability of the Secretary of State to create, or make certain changes to the governance or composition of, combined authorities without consent of the councils involved.
Amendment 267, in schedule 1, page 79, line 33, leave out subparagraph (b).
See explanatory statement for Amendment 266.
Amendment 268, in schedule 1, page 80, line 18, leave out “subsections (3) to (5)” and insert “subsection (3)”.
See explanatory statement for Amendment 266.
Amendment 269, in schedule 1, page 80, line 20, leave out paragraph 6.
See explanatory statement for Amendment 266.
Amendment 270, in schedule 1, page 80, line 21, leave out paragraph 7.
See explanatory statement for Amendment 266.
Amendment 271, in schedule 1, page 82, line 11, leave out paragraph 14.
See explanatory statement for Amendment 266.
Amendment 31, in schedule 1, page 83, line 3, at end insert—
“(6A) The Secretary of State must consult town and parish councils within the proposed new combined authority area.”
This amendment would require the Secretary of State to consult town and parish councils prior to proposing a new combined authority in the area in which they are situated.
Amendment 272, in schedule 1, page 85, line 31, leave out paragraph 17
See explanatory statement for Amendment 266.
Amendment 27, in schedule 1, page 85, line 37, at end insert—
“(2A) The Secretary of State has obtained consent for the proposal from any affected local government area.”
This amendment would require the Secretary of State to obtain consent from all affected areas in preparing a proposal to add a local government area to an existing area of a combined county authority.
Amendment 32, in schedule 1, page 86, line 20, after “to” insert “and thereafter consult with”.
This amendment would require the Secretary of State to consult with any of the relevant councils and persons given notice that an area is being proposed to be added to an existing combined authority.
Amendment 33, in schedule 1, page 86, line 27, at end insert—
“(da) any town and parish councils whose area would be added to the area of the combined authority, and.”
This amendment would require the Secretary of State to consult local councils prior to proposing the area in which they are situated is added to an existing combined authority.
Amendment 273, in schedule 1, page 87, line 30, leave out paragraph 18.
See explanatory statement for Amendment 266.
Amendment 274, in schedule 1, page 92, line 12, leave out subparagraph (b).
This amendment, and Amendments 275 to 280, remove the ability of the Secretary of State to create, or make certain changes to the governance or composition of, combined county authorities without the consent of the councils involved.
Amendment 275, in schedule 1, page 92, line 35, leave out subparagraph (b).
See explanatory statement for Amendment 274.
Amendment 276, in schedule 1, page 93, line 40, leave out paragraph 29.
See explanatory statement for Amendment 274.
Amendment 277, in schedule 1, page 94, line 1, leave out paragraph 30.
See explanatory statement for Amendment 274.
Amendment 278, in schedule 1, page 95, line 23, leave out paragraph 34.
See explanatory statement for Amendment 274.
Amendment 279, in schedule 1, page 99, line 5, leave out paragraph 37.
See explanatory statement for Amendment 274.
Amendment 280, in schedule 1, page 101, line 1, leave out paragraph 38.
See explanatory statement for Amendment 274.
New clause 23—Consent for local government restructuring—
(1) The Secretary of State may only make an order or regulations to create, change, or dissolve a strategic authority with the consent of all the constituent councils.
(2) The “constituent councils” are any county council, district council, town council or parish council.”
We rehearsed the conversation about the level of consultation, but this is really about the role of town and parish councils. We have seen, since the devolution announcements were made, areas around the country rush to form town and parish councils where they do not already exist, and to protect services through town and parish councils where they already do.
However, we have heard that town and parish councillors have been completely ignored throughout the entire process. There has been no formal consultation with them and they have barely been mentioned. In fact, in the whole of the Bill, the title “parish councillor” is mentioned just four times, and in relation only to community assets. They are the true local councils; they are the people who know what is going on in their communities. The suggestion that there is no formal role for them to play in something as important as the creation of a huge council that will move things further away from them is hugely problematic.
We had local reorganisation in the Dorset area back in 2019. I have visited a number of the parish councils, and they have said to me that, since they lost their district council, the unitary council that they now have to work with is distant; things do not get done. In some of the areas being proposed, the new unitary authorities might be 50 or 60 miles away—they are going to be dealing with half a million people. Their main role is going to be in those really statutory, strategic functions. Yet our town and parish councils will be the ones that have to pick up the pieces, so their voices have to be heard. Of course, they will not be the ones making the decision—we know that—but they are simply invisible. We feel strongly that they should be part of that conversation; they should be consultees in this. Things should not be able to happen without their voices being heard.
I have great sympathy with the point that the hon. Lady is making. Would she agree that town and parish councils are already being asked to take on more services? We are seeing potential districts being abolished, handing down—or essentially getting rid of—assets to town and parish councils. Meanwhile, the town and parish councils are not being consulted on the wider reorganisation going forward. I wholeheartedly endorse the hon. Lady’s view that parish and town councils need to be consulted. Could she elaborate on why she thinks the Government are so reluctant to do so?
I thank the hon. Member for his intervention. I am not in the mind of the Government; I cannot understand why they would not want to embrace the incredible hard work of these volunteers in our communities who are already doing so much. But we are seeing, in every community, services handed down or at risk of closure, which are then only saved by the incredible work of the parish councils. It just strikes me as odd that we would not embrace the role of those parish councils.
I would just point out—I will say this multiple times in this Bill Committee—that, as someone in an area that has become unitary, no one is ever saying, “We want more district, borough and county councils, rather than fewer.” We have to be careful not to suggest that there will be less engagement with the council because we are going to unitaries.
Could the hon. Lady set out what legal change to parish councils she is concerned about? What powers are they losing? I cannot see any change in a parish councils’ powers under the Bill.
No power is being lost, because parish councils have few powers in the first place. What we are suggesting—what we feel should be at the heart of devolution—is about consent: actually consulting those local organisations that have a role. They are tax-raising and grant-giving organisations. They are, in reality, taking on a lot of those services yet their voice is silent. We are not asking for their powers to be changed; we are asking for their voices to be heard. That is all that the amendment requires.
I was a town councillor for a good decade and a half before I became an MP. We went through unitarisation in Cheshire in 2008, so I recognise a lot of what the hon. Lady is saying about town and parish councils being asked to take on more services—I saw it under the last Conservative Government as funding was taken away from Cheshire West and Chester council.
The reason why I am mystified is that my experience of town and parish councils is that they are not shy about expressing themselves. I am not sure what the hon. Lady is looking to achieve with the amendment, because town and parish councils are perfectly free to express their view in the consultations that already happen when these authorities are set up. Is she suggesting that town and parish councils should have a veto? From the way her amendment is worded, that seems like an entirely different proposition. Could she clarify that?
Nobody is suggesting a veto; we are suggesting a voice. There is a big difference. We have already heard that district councils felt that they were pushed around by the county councils, and the experiences of town and parish councils are simply an acceleration of that; when these proposals were being put forward by the Minister earlier this year, there was absolutely no role for those councils. We are simply saying that there are layers of local accountability that we believe should be on the list of people who are consulted.
This is a simple amendment that says, “You are already consulting other organisations in the chain of command. You should also include the town parish councils in that chain.” That is why we believe that amendment 33 is critical, as it
“would require the Secretary of State to consult local councils prior to proposing the area in which they are situated is added to an existing combined authority”,
and why we will push it to a vote.
I shall speak to the amendments standing in my name. There is a degree of overlap between the points made so far and the subject matter of my amendments: all of them revolve around the issue of localism and consent. As has been clearly expressed, I have a degree of sympathy for the points that have just been made, particularly those about the role of parish and district councils in agreeing to and steering this devolution process.
When we had our witness session just a few weeks ago, we heard from Councillor Sam Chapman-Allen of the District Councils’ Network and from Justin Griggs, the head of policy and communications at the National Association of Local Councils, which represents the parish councils and parish meetings of England. Both of them emphasised in their evidence the need for and the importance of that local voice. I reflect on legislation passed recently—particularly the Police, Crime, Sentencing and Courts Act 2022, which strengthened the powers that our communities sought for local authorities to deal with unauthorised encampments. One of the things we missed was the opportunity to enable parish councils and parish meetings to use those powers. That is a really concrete example of where our constituents would have benefited.
We know there are both sins of omission and sins of commission. I suspect it is a sin of omission that the Government have failed to use the opportunity of this legislation to complete the devolution work that they talk about, and to ask, “What role will those elected bodies at the town and parish level be able to play in the context of this new devolved world?” It speaks to something that I know the Opposition have real concern about: a form of institutionalised disrespect for local leaders that is built into this process. There is wholesale abolition of the local voice at scale, and proposals that the Secretary of State will direct, rather than consent.
Sir John, you will perhaps call to mind Lord Porter, formerly Gary Porter of South Holland, as one of those many local leaders whose approach and insight really shaped the nature of that local community. Reflecting on my time in local government, I had the opportunity to serve with people with very senior public and private sector leadership experience who steered the strategy of the local authority to deliver for local residents. To be told that the Government’s view is that they are to be mere community convenors, and they are not to have a role in that strategic leadership, is frankly insulting to the work that so many of our local leaders do.
The value of that was spelled out very clearly in our evidence session. I was particularly struck by Councillor Bev Craig, the Labour group lead and LGA vice-chair at the Local Government Association, who talked about how the Greater Manchester model worked because of that local leadership and the power of those individuals to come to the table and drive forward devolution, efficiency and service quality.
The amendments broadly fall into two categories that I have made today. The bulk of them are entirely about removing the ability of the Secretary of State to dictate to local areas—as was threatened by the Government when this devolution process started—what that devolution arrangement would look like, without the consent of those local areas. As my hon. Friend the Member for Hamble Valley has spelled out, of the many proposals that have come forward, we have not seen a single one embracing what the Government have set out, but a number of rival proposals for that reorganisation.
It is very clear that there is not any significant degree of local consent. There is a threat, and there is some money on the table to bail local authorities out, but they can have it only if they do what the Government want. If local authorities do not do it now, the Government will take powers to make them do it to their own agenda later on. That is the very opposite of localism. When we put the Localism Act 2011 through Parliament, it was broadly supported by all local leaders and Members of Parliament, and that was because we recognised the value it added at all levels. This process, however—the centralising element of the Bill—says that it will be a man or woman in Whitehall who decides: they will tell us what is in the interest of our community.
I beg to move amendment 38, in clause 3, page 2, line 32, at end insert—
“(3A) The Secretary of State must make provision to ensure councils designated as a single foundation strategic authority receives adequate funding to facilitate their transition.”
This amendment would require the Secretary of State to ensure that councils designated as a single foundation strategic authority receive funding to facilitate their transition.
With this it will be convenient to discuss the following:
Amendment 39, in schedule 1, page 84, line 13, at end insert—
“(9A) The Secretary of State must make provision to ensure the combined authority receives adequate funding to facilitate its establishment.”
This amendment would require the Secretary of State to ensure that combined authorities receive adequate funding to facilitate their establishment.
Amendment 361, in clause 19, page 22, line 32, at end insert—
“(f) funding which has been allocated to support the establishment of new strategic authorities.”
This amendment would require the annual report on devolution to include an account of funding provided to support the establishment of new strategic authorities.
Our councils are struggling to make ends meet. With so many on the edge of a precipice, I can see why they would be queuing up to create a strategic authority, which come with millions of pounds. There is, however, huge concern in councils that the cost to set up and run these organisations is oblique, and that there is a risk that the cost of running them will be passed to local people through additional precepting. I can tell the Committee from experience that the tens of millions of pounds that it is said will be saved by creating strategic authorities generally are not saved, and that if they are saved, they are replaced with other costs and take 10 years to materialise. Many councils do not have 10 years before they will go bust.
I am acutely aware that some funding was put aside for those organisations in the devolution priority phase, but when I asked the previous Minister what was happening with funding for future phases, I was met by stony silence. He explained to me that in order to progress there would need to be money in the settlement, but at the same time he talked about having already made a three-year settlement. That suggested to me that those organisations that are not already funded perhaps will not be funded within a three-year period, because there is no money. Given that those organisations are already telling us that they are £300 million short this year because they are not in the programme, but the Minister has no money set aside for next year to continue the programme, where is the money coming from?
Our amendments 38, 39 and 361 would require the Secretary of State to ensure that authorities receive adequate funding at least to facilitate their establishment, if not their continuation. It is crucial that local leaders—and local people, when they vote to make this progress—do not tie themselves down to additional costs that they cannot afford. That is why we feel it is important to press amendment 39 to a vote. My hon. Friend the Member for Stratford-on-Avon will elaborate further.
I had the privilege of spending 24 years in local government, divided equally across the previous Labour, Conservative and coalition Governments. I do not think that local government felt at any point in those 24 years that it was well funded and there was plenty of money to go around. In every single one of those years, irrespective of who was in government, our starting point when setting council tax was, “How are we going to meet a very substantial savings target?”
Will funding be made available for areas that are not yet in a programme on the same footing as the areas that are already in one? It would be completely inappropriate if that funding was not committed to. I want to get that on record.
We have established a principle that there should be mayoral capacity funding. We have established a principle that for places that are going through the transition, to ensure that any mayor that is created is able to hit the ground running, capacity building needs to be a core part of that. That applies to the places that are going through the devolution priority programme at the moment, but the same principle invariably will apply across the piece.
We were seeking to divide only on amendment 39, but given that we have had that assurance, I am happy not to do so. I beg to ask to leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Clause 3 ordered to stand part of the Bill.
Clause 4
Combined authorities and CCAs: establishment, expansion and functions
Question proposed, That the clause stand part of the Bill.
Clause 4 introduces schedule 1, which will streamline and simplify existing processes for establishing new combined authorities and combined county authorities, and for changing the arrangements of existing authorities. The Government have been clear that their goal is to achieve universal coverage of strategic authorities. We are therefore confident that clear and tangible benefits of devolution will be experienced across the country. We have also been clear that we want to create mechanisms that will ensure that the process is streamlined—that it is fast, and effective and efficient locally—and allows representation, but fundamentally allow us to move through the process that we see appetite and demand for across the country.
The powers introduced by the clause will be used as a backstop. They will be deployed only where we have devolution deserts and we want to work with areas to remove blockages, to the benefit of residents.
I used to live on the Isle of Wight. I got married there and my parents met there, so I have a fond connection to it. Does the hon. Member agree that if “Isle of Wight” is not included within the authority name of “Hampshire and the Isle of Wight”, it might disappear from all the other organisations in which it features, such as fire authorities or health authorities? Suddenly, the Isle of Wight’s unique identity would be completely subsumed into an amorphous Hampshire.
As the hon. Lady knows from when we were on the BBC’s “Politics South” programme some weeks ago, I rarely agree with Liberal Democrats, but I suspect that she and I agree on this point. I know that she stands for her area and, as a former council leader, for the wider area, and that she knows a lot about the Isle of Wight. I did not know that she got married there, but I am sure it was a lovely wedding, because the Isle of Wight is a beautiful place steeped in history. She is absolutely right that while Hampshire and the Isle of Wight have been together geographically, they have also been together in the way organisations have worked, over hundreds of years. I see the Solent as the water motorway connecting the mainland to the Isle of Wight. We could not interact without having it there. “Hampshire and the Solent” is the wrong name for the proposed mayoralty, because it leaves out the distinct identity of a proud people on the Isle of Wight.