My Lords, this order was laid before this House on 24 January 2022. The other place approved it on 1 March. If approved by this House and made it will implement a proposal submitted by Allerdale and Copeland councils for two new unitary councils on an east/west geography, covering the entirety of Cumbria, to be known as Cumberland council, and Westmorland and Furness council, respectively.
This order will establish for the people of Cumbria two new unitary councils. Implementing this proposal and establishing these unitary authorities will enable stronger leadership and engagement, at the strategic level and with communities at the most local level. It will pave the way, as envisaged in the levelling-up White Paper, for a significant devolution deal, involving a directly elected mayor for Cumbria, if that is an option which local leaders wish to pursue.
This locally led process for reform began on 9 October 2020, when the then Secretary of State, my right honourable friend the Member for Newark, Robert Jenrick, invited the principal councils in Cumbria to put forward, if they wished, proposals for replacing the current two-tier system of local government with single-tier local government. That invitation set out the criteria for unitarisation.
Unitary authorities will be established that are likely to improve local government and service delivery across the area of the proposal, giving greater value for money, generating savings, and providing stronger strategic and local leadership, and which will be more sustainable structures. They will command a good deal of local support as assessed in the round, and where the area of each unitary authority is a credible geography consisting of one or more existing local government areas with an aggregate population which is either within the range 300,000 to 600,000, or such other figure that, having regard to the circumstances of the authority, including local identity and geography, could be considered substantial.
Four locally led proposals for local government reorganisation in Cumbria were received in December 2020—one for a single unitary and three for two unitary councils. Before deciding how to proceed, the Government consulted widely. Around 3,200 responses were received by the Government in response to their statutory consultation on the Cumbria proposals. This consultation was launched on 22 February 2021 and ended on 19 April 2021. Of these responses, some 2,400—73% of the total responses—were from residents living in the area affected.
There was a very good deal of local support for local government reorganisation across the categories of respondents, from residents, local authorities, public sector providers, parish councils and the business sector. However, across these categories, there was a spread of responses in favour of each proposal. This meant that each proposal had some support. The east/west proposal had the support of local businesses, especially in relation to supporting the diverse nature of local economies better, particularly the advanced manufacturing base and supply chain around Sellafield. There was some resident support for the east/west proposal, with those in favour considering that the new authorities would be more accessible local organisations, better able to respond to local needs. Among local government organisations, there was a view that the geography of the east/west proposal would ensure equal levels of population density across the two proposed new council areas and that this would contribute to a balanced service delivery, including addressing deprivation, and credible geography.
My Lords, I start by thanking my noble friend for the fact that he is going to preserve the city status of Carlisle. I think that will be welcomed on all sides. I was born there 60-something years ago, and am very grateful that its city status shall be continued. I also declare an interest, first, as a Cumbrian, but secondly, as an active member of Penrith and The Border Conservative Association. I refer to that because the Penrith and The Border constituency is the one constituency that will straddle the two new authorities—I think that is correct, but no doubt others will correct me if it is not. I want to ask my noble friend about the electoral arrangements we will face in May because, as he made quite clear, we will be electing the shadow authority, which will then take over as the substantive authority in April 2023. At some time after that, as my noble friend made clear, the boundary commission will get into action and produce new boundaries for the various wards or divisions—I am not sure how we shall refer to them—in both authorities. But for the elections, we are going to have to deal with rather arbitrary selected wards or divisions in both authorities.
I do not know what the numbers on the two councils will be in future, once the boundary commission has done its work. Initially, and for the first five years of the two shadow authorities, the western division, which will be referred to as Cumberland, will use the existing county council divisions. Therefore, as I understand and remember it, there will be 42 councillors, one for each division, in that authority.
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This is relevant to me because, like all political parties, we have to go through the process of selecting candidates, and we want to get that done as soon as possible. We have started on it, because we had some idea of what the boundaries would be. It is relatively easy in the western division, which is using the existing county council divisions. We have made progress in the northern half of Penrith and The Border, where we have identified our candidates and will soon be in a place whereby they can put themselves forward and go through the various due processes to stand in those elections.
In the eastern authority, which will be referred to as Westmorland and Furness, a different process has been adopted. The new authority will not have the 38 county councillors who originally covered that area, but some 65 councillors. There is obviously no way to get 65 out of 38; the sums do not add up. The district wards have therefore been used to create the various boundaries for the new authorities, which are laid out in the schedule to this order. As I understand, that has meant consultation between the department and the three districts involved—Eden, South Lakeland and Barrow—to produce 65 seats with one, two or three members covering each ward in that area. There were problems because some of the district council wards of those three areas had one, some had two and some had three members. The whole thing has had to be done by putting odd things together, following consultations with the local authorities. I do not believe there has been consultation more widely than that.
I ask my noble friend why this figure of 65 was picked. How was it decided to put together which wards to make either one-member or two-member seats for the authority? Could that not have been done earlier? I just mentioned the practical problem of finding candidates and going through a legitimate selection process, within every political party, to make sure that members are allowed to take part, before you put them before the election. Technically, these wards do not come into existence until the passage of this structural changes order and we have elections coming in May.
My simple question is: why this process? How did it come about? What consultations took place beyond those with the individual local authorities of Eden, South Lakeland and Barrow? Why was a similar process not followed to that used for the western half, which will be Cumberland? Will Cumberland itself now have too few councillors, as it is being reduced to 42, which is the number of the existing county council seats? I see the noble Baroness, Lady Hayman, nodding. There has been a degree of confusion about this process and I would like further elucidation from my noble friend, if he can give me that in due course.
My Lords, I declare my interests in this matter. I was born in Carlisle and attended Carlisle Grammar School. I live in Cumbria now and have an interest on the present county council, as the councillor for Wigton.
I have three things to say at the start. First, I am delighted by what the Minister said about maintaining Carlisle’s city status. It means a lot to me. I remember, as a little boy in 1958, attending the 800th anniversary of the foundation of the city.
Secondly, I am glad to know that the lord-lieutenancy for Cumbria is being maintained; my wife, as deputy lord-lieutenant, will be very pleased by that. Thirdly, it is very good to have as a Minister someone with the great experience and success in local government of the noble Lord, Lord Greenhalgh, dealing with these questions. I hope he might listen carefully to what I have to say about the proposal, which I would oppose as it stands, but I know that is not the way the House proceeds and I shall obviously not do that. But I will make the case for why the Government should take the remaining opportunity to pause and think a bit about what they are doing in the case of Cumbria.
My starting point is simple. I am a passionate supporter of unitary authorities, and have been for a long time, but the proposal for Cumbria, splitting it in two, does two things. First, it removes the strategic role that the county council presently plays; secondly, it divides in two the services that the county council currently provides. These services are vast by comparison with what the districts provide. The county council’s net revenue budget, excluding the schools grant, is of the order of £400 million a year. The six district councils all together are little tiddlers: their spending together is less than £100 million. The order is, in effect, cutting in two the most effective bit of local government in Cumbria.
The justification that this makes for more local government does not stand up to serious examination. The new unitary authority of Westmorland and Furness embraces both the Barrow shipyard and the remote Pennine communities 60 or 70 miles to the north of it. They are as different as heaven and hell. I shall not say which I think is which, but they are totally different. As for the new county of Cumberland, Penrith, to which the noble Lord, Lord Henley, referred, is torn out of the historic county of Cumberland. I always remember Willie Whitelaw affectionately describing his constituency of Penrith as being a place of slumbering calm—we probably need more of that in our lives. That is removed, and for Cumberland, there is my home city of Carlisle, together with what is largely post-industrial west Cumbria. My forecast is that that will be a rather uneasy partnership. Cumbria is a county of great diversity: great beauty mixed with shocking deprivation; a very proud history, with all the problems of modernity.
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The Minister probably understands the risks involved in splitting services. In fact, he wrote to the leader of my council, Stewart Young, in autumn last year expressing grave concern about the splitting of the fire service in Cumbria and saying that it had to be kept together. There is the option of putting it under the police and crime commissioner, which might be quite sensible, but it demonstrates that there are difficulties in spitting services in two.
One of the answers people are talking about at home to deal with this situation is that one of the new authorities might take statutory responsibility for delivering a whole service across the area of the two authorities, but that simply will not work. I am sure that, as an experienced local government man, the Minister recognises the problems in that. If a budget for a service is overspent, who pays? If the authority that is not the statutory authority thinks its services are being cut because of budgetary constraints, what right of redress does it have? These are complicated matters. Of course the Minister is right that, in an ideal world—particularly, for instance, when dealing with troubled families—we need a unitary authority that brings together housing, children’s services, care and all of that.
I think that we are entering a period of massive uncertainty about how public services in Cumbria will be delivered, and we have a very rushed timetable for implementation of this reorganisation. The order we are discussing will not come into effect until the end of this month, yet the new authorities are supposed to be in a position to be up and running by April 2023—less than 13 months from now. I tell noble Lords, on the basis of my knowledge, that there are no plans in the cupboard as to how this split will be carried out.
Of course, the Government could always think about this. I am sorry if I am going on too long, but these are very important matters.
Okay. I am trying to explain that there are serious risks in what is now planned. A pause could well be necessary. I do not see any problem with the Government revising their plans. What will happen if it becomes clear that the current timetable is not workable? The Government need to form a judgment on this quite quickly. I am not advocating this for any personal reason, but they could keep the county council going for longer than another year so that there would be more time to plan for the division of services, which would then have some prospect of stability.
In the light of their Levelling Up White Paper, which came after this proposal was made, the Government could think about keeping a single unitary authority in Cumbria but doing a deal with that council that it will have an elected mayor. I am not against elected mayors in principle; I am actually rather in favour of them. I think they have worked quite well in metropolitan areas. In the Levelling Up White Paper, if you are going to get maximum devolution of power, you have to have an elected mayor to achieve that. Why not put that proposal to Cumberland, to a united Cumbria, and see whether it would be acceptable?
I am very worried about what is happening, not from a party-political point of view, but simply from the point of view of how all this is going to work in practice. I hope that the Minister might take away what I have said and have a think about it.
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Based on the consultation responses, the Secretary of State considered that, if implemented, the east/west proposal would command a good deal of local support, as assessed in the round overall across the whole area of the proposal, and that the criterion had been met. In considering the locally led unitary proposals against our long-standing assessment criteria, he concluded that the north/south proposal did not meet the credible geography criterion, that the bay proposal did not meet the improving local government and service delivery and credible geography criteria, and that while the county council’s proposal for a single unitary met the three criteria, the east/west proposal was more appropriate on grounds of geography.
Noble Lords will recall that my right honourable friend the then Secretary of State announced his decisions on the proposals. A Written Ministerial Statement was made on 21 July 2021, which I repeated in this House. In reaching this decision, my right honourable friend made a balanced judgment, assessing all the proposals against the three criteria to which I have referred and which were set out in the invitation on 9 October 2020. He also had regard to all representations received, including responses to the consultation, and to all other relevant information available to him. He concluded that the east/west unitary proposal for Cumbria met all three criteria.
The Government believe that there is a powerful case for implementing this locally led proposal for change. The east/west unitary proposal will improve local government for half a million people in Cumbria by enhancing social care and safeguarding services through closer connection with related services such as housing, leisure and benefits. It will also improve local government by offering opportunities for improved strategic decision-making in such areas as housing, planning and transport. It will provide improvements to local partnership working with other public sector bodies by aligning with arrangements in existing public sector partnerships.
The proposal will generate savings estimated by the Allerdale and Copeland councils in their unitary proposal of between £19.1 million and £31.6 million per annum; this is a wide spread, and the savings actually achieved will depend on the new councils. These are savings that can be reinvested for the improvement of local services; they are not cuts in service provision. It will also deliver proposals aimed at maintaining and strengthening local community identity, and integrate local services, while reflecting the challenges of rurality in the areas of both new unitary councils. If Parliament approves this order, there will be, from 1 April 2023, two unitary councils for Cumbria delivering the improvements I have just outlined.
In response to an issue raised previously by the noble Baroness, Lady Hayman of Ullock, and the noble Lord, Lord Campbell-Savours, I put on the record, categorically, for the avoidance of any scintilla of doubt, that if this order is approved and Carlisle City Council is abolished, the city status of Carlisle will be preserved. My officials are already working with the officers of Carlisle to ensure that we follow past precedents for maintaining city status. The arrangements for maintaining city status will be to establish charter trustees. The council has asked us to do this, and we have agreed.
We have prepared this order in discussion with all the councils concerned. I take this opportunity to thank everyone involved in this process, and for their work undertaken together constructively and collaboratively, notwithstanding the county council’s leader seeking a judicial review, for which the courts refused permission on 22 February.
Our discussions with the councils have included transitional and electoral arrangements. These are key to how the councils will drive forward implementation. Where there has been agreement between all the councils, we have adopted their preferred approach. Where there were different views as to the detailed way forward, the Secretary of State has considered all the differing views and reached a decision accordingly.
Turning to the detail of the order, I will highlight the key provisions. The order provides that on 1 April 2023 the districts of Allerdale, Barrow-in-Furness, Carlisle, Copeland, Eden, and South Lakeland, and the county of Cumbria, will be abolished. The councils of those districts and county will be wound up and dissolved. In their place, the functions will be transferred to the new unitary Cumberland council and Westmorland and Furness council. I add that the order ensures there is no change to the ceremonial county of Cumbria, and hence the roles and responsibilities of the lord-lieutenant and high sheriff of the county of Cumbria are unaltered.
The order also provides for appropriate transitional arrangements. These include that in May 2022 there will be elections for the new unitary councils, which will assume their full powers from 1 April 2023. These elections will be on the basis in Cumberland of a 46-member authority, with 46 single-member wards, and in Westmorland and Furness a 65-member authority with 33 wards of between one and three members. Subsequent elections to the unitary council will be in May 2027 and every four years thereafter. We expect that the Local Government Boundary Commission for England will undertake a full electoral review before the May 2027 elections. Parish council elections will remain unchanged. There will be a duty placed on all existing councils to co-operate during the transitional period until 1 April 2023.
There is also provision in the draft order relating to the establishment of a combined authority for Cumbria. I can make it clear that these are designed to be enabling powers for the shadow authorities to be able to do necessary preparatory work if they so wish. We thought that this was prudent, given that the establishment of a combined authority was mentioned in the unitary proposals. The inclusion of these provisions does not represent a requirement for the shadows to pursue arrangements for a combined authority.
If this order is approved and made, to support councils in the transitional period until 1 April 2023, we intend to use our powers under the Local Government and Public Involvement in Health Act 2007 to issue a direction. This direction would replace the voluntary arrangements which the Cumbria councils have already adopted about entering into contracts and the disposal of land during this transitional period. This is in line with the approach adopted in most previous unitarisations. This will ensure that the new unitary councils have appropriate oversight of the commitments that predecessor councils may enter into during the transitional period and which the new unitary councils will take on from 1 April 2023. Before issuing any such direction, we will invite councils’ views on a draft.
Finally, with sincere apologies, I must draw the Committee’s attention to the correction slip issued to correct a minor error in Part 2 of the Schedule of the draft order, which lists the existing wards that will go to make up the new wards of Westmorland and Furness council. This is to correct the name of an existing ward in the new High Furness ward, currently shown as “Dunnerdale-with-Seathwaite (Part)”. It should be shown as simply “Dunnerdale-with-Seathwaite”. We are very sorry indeed for this minor error in the original text of the draft order.
In conclusion, through this order, we are seeking to replace the existing local government structures in Cumbria, which were set up in 1974, with two new councils that will be able to deliver high-quality, sustainable local services for the people of Cumbria. These unitary councils will be able to provide stronger and more effective leadership at both the strategic and most local levels. This will open the way for a significant devolution deal if local leaders want this, as referred to in our levelling-up White Paper. I commend this order to the Committee.
What I and the majority of my colleagues on the county council think the Government should have done was to go for a single, strategic authority but then allow for maximum devolution to towns, with their rural hinterlands, for local access to services and the capacity for genuinely local decision-making over genuinely local matters. My town council in Wigton should certainly have been expanded and given a greater role.
Given the decision taken, the county council—rightly, in my view—sought to challenge the Government’s plan through a judicial review. After a very detailed consideration in a judgment that took Mr Justice Fordham, who is very eminent in this field, an hour and three-quarters to deliver, he refused leave for a judicial review. It is important to emphasise, however, that this is not an endorsement of the Government’s plan; it is only a legal judgment that the Minister had not overstepped his powers in ignoring his own criteria in deciding on the current plan.
We are now put in a very difficult position in Cumbria as a result of this split. The Minister referred to savings estimated by Allerdale and Copeland— goodness how they could calculate them, because they know nothing about the main services—of between £19 million and £30 million a year. We were expecting much bigger savings from having a unitary authority—as much as £40 million or £50 million a year. The truth is that we need those savings to reinvest in what are badly overstretched services, and we now will not be able to do that. That overstretch is apparent in all the main services one looks at. Our children’s services are under great pressure. For the last few years, they have overspent their budget every year. For social care, we were forced to put in an extra £10 million last autumn simply to keep a creaking system going so that the hospitals in Cumbria would not be completely clogged up with people who could not be given care in the community. Of course, the consequence of that would have been even longer waiting lists for patients.
People complain about highway maintenance in Cumbria—potholes are a big issue; I am always lobbied about them—but we have no extra money to spend on that. Indeed, the Government have this year cut the highway maintenance grant by some £10 million.
The situation is serious. At the same time, whereas the creation of a single unitary authority would have been a relatively simple matter, splitting the services in two is highly complex. The existing councils, and I hope that the people who support this scheme are prepared to defend this, have already had to put aside some £18 million to spend on management consultants to work out how the new authority will work. I suggest that the Minister inquires about this; a lot of money is being spent on trying to work out how to divide the services we have.
Supporters of the plan argue that we are being ridiculously pessimistic. They say that the two new authorities can form a mayoral combined authority that will deal with strategic planning, can negotiate a growth deal with the Government and could run county-wide services that it does not make sense to split—that is the argument. However, the truth is that the Government currently do not, as I understand it, have any power to force a mayoral combined authority on Cumbria. It all depends on the decision of the new authorities as to whether they want one. From what I know and from what I gather, particularly from my Liberal Democrat friends in Westmorland and Furness, there is no enthusiasm for establishing such a combined authority. Therefore, I think this is a bit of a fantasy.
However, in the House of Commons, when John Stevenson, the Conservative MP for Carlisle, whom I like a lot, asked Secretary of State Gove what the position was, the Secretary of State implied that the Government could force a mayoral combined authority on the new councils. Can the noble Lord, Lord Greenhalgh, clarify that very important point for us? I can send him chapter and verse on what was said in the House of Commons, and I would like to know what he thinks about what his boss said on that occasion.