Lord Bassam of Brighton Portrait Lord Bassam of Brighton (Lab)
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My Lords, my Amendment 196EC to Schedule 26 fairly sets out some of my concerns, which, having listened to the noble Baroness, I am sure are shared by others in the Room. I tabled it in part to probe how Ministers will determine the new pattern of unitary councils. I appreciate that, by and large, they will be shaped by the submissions being made by current local authorities to the department, but my concern is that there is little thought or discussion about the size, shape or culture of the new councils.

The Government’s White Paper, published in December 2024, was clear that unitary councils should have

“a population of 500,000 or more”.

It argued that this would be

“the right size to achieve efficiencies, improve capacity and withstand financial shocks”.

The White Paper also said that

“reorganisation should not delay devolution and plans for both should be complementary”.

The Government have sensibly delayed the election of a number of the combined mayoral authorities and slowed the process down. Until the last general election, the pace of devolution was rather more measured, which was wise. Understandably, the new Government want to get a move on with their major reforms. At the same time, we will be asking the combined mayoral authorities and the new unitary councils to deliver much of the Government’s growth agenda and their political priorities in education, housing, childcare, nursery provision and so on. Quite right, too: they are the vehicles for a lot of those things, in particular transport. But the idea that these new and very powerful institutions will be capable of delivering new policies and plans while simultaneously creating themselves is something of a stretch. When Brighton and Hove City Council was set up back in 1997, we wisely gave ourselves two and a half years of preparation, including one year as a shadow authority. None of these structures will have that luxury.

It is well known that I favour unitary councils and have long argued for them, but they have to be well grounded to work and, to be well grounded, they have to be based on recognisable boundaries that have a clear relationship with local geography and a sense of community. My authority, Brighton and Hove, is constrained by the downs and, for that matter, it makes sense. It is a place, and place-making, as the Government say clearly in the White Paper, is of great importance not just to government but, more importantly, to communities. Make the unitaries too big and start tying urban and rural districts together and you lose that. You also lose the sense of community identity.

In the past, when unitary authorities were established, many place names were lost. I go back to 1974: who knew that Sefton was Southport and Bootle, or that Kirklees subsumed places such as Huddersfield, Dewsbury and Batley? Kirklees is the name of a hall on an estate, some of which is, I think, in the neighbouring borough of Calderdale. My point here is that place-making and community building, which are surely part of the stuff of local government, rely on the ability to be readily identified so that people can understand who is responsible for what and in whose name. Abolishing a lot of the place names, as the last local government review did in 1974, risks depriving people of that ready point of identity, which would be unfortunate and wrong.

Currently, looking at the size of authorities, we have few that fit the 500,000-plus margin—just nine: Birmingham, Cornwall, Leeds, Sheffield, Bradford, Manchester, County Durham, Wiltshire and Buckinghamshire. It is an open question as to whether their size makes them more efficient; it is possible that it makes them more remote. The more remote they are, the more citizens feel left behind and left out, and less engaged and able to influence local decision-making.

For that reason, my amendment seeks to ensure that, in making a direction on the future pattern of local councils in a given area, the Secretary of State must have regard to local geography, because of its influence on travel and community relations; the sense of identity that the new authorities will take on in terms of places and communities; and whether it is wise simply to glue together urban and rural areas for administrative convenience. Additionally, the environmental and financial sustainability of a council area, and its proposed size, have to be considered.

The White Paper seemed to assume the bigger the better and that savings would flow. I am less convinced. If I look back to the unitarisation of Berkshire in 1998, for example, when the council was broken up into six unitaries, all then had to find directors of social services, education, environment and highways. A similar impact will be felt with the unitarisation that takes place under combined mayoral authorities.

I suspect most councils have stripped out excessive costs over the past 15 years and most will have come from back-office mergers. There may be savings in the administration of council tax as larger council tax areas come into view, but the integration of many district council systems into new unitary council tax collections will certainly come at a cost.

To conclude, I have a number of questions for the Minister. Can she confirm that a fixed size for unitaries—the 500,000 figure—has been dropped? Do the Government have a number in mind? Will the Secretary of State be mindful of ensuring that mergers respect the need to have identifiable boundaries that respect urban and rural differences and the historical bases of councils, to enable place-making and help with community resilience? Can we be assured that resources will be in place to ensure a seamless transition from the current pattern of districts into larger unitaries?

What steps will the Government take to guarantee a level of democracy that makes councils accessible to local electors and residents? The noble Baroness, Lady Jones, made the point that councillors already work hard. The White Paper confirmed that the number of councillors would reduce—that is pretty obvious, really—but can we be assured that councillors will be sufficient in number, and well enough resourced and supported, to represent the inevitably larger communities that they will be part of?

I do not oppose unitaries; in fact, I am rather keen on them. I do not oppose devolution, but it has to be done at a pace, and in a style and manner, that works for local communities to ensure that democracy, demography and community identity are preserved, because place-making should be at the heart of the changes. We all need to be assured that that will be the case.

Viscount Trenchard Portrait Viscount Trenchard (Con)
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My Lords, I add my voice in support of the noble Lord, Lord Bassam. Everything he said makes a great deal of sense. It is hugely important to consider the identity of the authorities being created in terms of their communities and place-making. I am also tempted to support the noble Baroness, Lady Bennett of Manor Castle, in her opposition to Clause 57 standing part, because it makes no sense to introduce this additional tier of local government at the same time as supposedly simplifying it by reducing two tiers to a single tier. To do this at the same time is likely to result in more costs, endless local government arguments and unhappiness.