English Devolution and Community Empowerment Bill

Report (3rd Day)

My Lords, before the first group of amendments is considered, I want to remind the House of the previous guidance on conduct during Report stage. This is the final day on Report, and proceedings on this Bill need to conclude today. I therefore urge all noble Lords to apply good discipline to ensure we can conclude business at a reasonable time. First, the House has generally resolved that speeches should be shorter. Secondly, and particularly relevant, the Companion states that arguments fully deployed in Committee should not be repeated at length on Report. Contributions should not summarise or repeat points made at length by others, and debates must be relevant to the precise amendment being debated. Thirdly, although interventions are in accordance with the customs of the House, they should be brief questions for clarification, and lengthy and frequent interventions should not be made. As this is Report, and not Committee, a continued collective focus on these points will help us to make progress.

Clause 57: Single tiers of local government

Amendment 187

187: Leave out Clause 57

My Lords, I rise to speak to the first group of amendments in my name, which reflect the concerns that we have repeatedly expressed during the passage of this Bill about imposing top-down reorganisation of local government without local consent. Amendments 187 and 194 oppose Clause 57 and Schedule 26 outright. Schedule 26 as drafted enables the Secretary of State not just to invite but to “direct” local authorities to propose mergers of single tiers of local government. This throws into serious question whether the Bill does in fact enable community empowerment, or if it just gives the Secretary of State more power to bring councils into line with central government’s plans.

Many local people do not want their rural and urban areas to be merged under the same local government jurisdiction, or for councils which have been doing their jobs well and kept taxes low to be merged with other, less well-performing councils. Nor do they want to disaggregate district councils into pieces to suit the Government rather than the people, adding them to urban areas—in order to allow more greenfield development, we believe, and that again takes the pressure off use of brownfield.

Amendment 188 would remove “or direct”, allowing the Secretary of State only to make an invitation to local authorities. Amendment 189 would then require the express consent of all relevant authorities affected by the proposed reorganisation. Alongside the significance of local consent, it is important that democratic oversight of the changes occurs at national level too, and not just in the corridors of Whitehall. Amendment 190 would require the Secretary of State to show Parliament that any direction was in the interests of effective and convenient local government, while also representing the views of the affected authorities. Similarly, Amendment 191 would strengthen the requirement on the Secretary of State not only to believe that the direction was in the interests of local government but to be

My Lords, I thank the noble Baroness, Lady Scott, for her amendments on local government reorganisation. Before I comment on the amendments, I wonder if the House would indulge me for one moment so that I may pay tribute to Lord Jeremy Beecham, who died during recess.

Jeremy Beecham’s passion for local government, his wisdom, kindness, fierce intelligence and sharp wit, as well as over 55 years of service to his community in Newcastle, with 17 years as leader of Newcastle City Council, made him a powerful and committed ambassador and advocate of local government, including when he came into your Lordships’ House. My thoughts are with his family, the people of Newcastle—to whom he committed a lifetime of service—and our local government community, where his legacy will be enduring and powerful. There was a wonderful levaya yesterday in Newcastle which the noble Lord, Lord Shipley, and I attended, along with other Members of this House. I hope that Jeremy will rest in peace. May his memory be a blessing.

On the amendments tabled by the noble Baroness, Lady Scott, the Government are committed to fixing the foundations of local government. Our vision is very clear—stronger local councils that are equipped to drive economic growth, improve local public services and empower their communities. We want all residents to benefit from strong unitary—

Is the Minister winding? A number of us wish to get in as part of the debate. I would hate to cut her off, but I think there are some contributions to be made.

It was my understanding that we had moved on to winding speeches.

My Lords, I did not realise that we had moved on to winding speeches. I wholeheartedly endorse what the Minister said about the late Lord Beecham and add my condolences.

With the leave of the House, I would like to comment briefly on Amendment 187, tabled by my noble friends Lady Scott and Lord Jamieson. I support the intentions of their amendments, which seek to restrict the power of the Secretary of State to direct mergers of single tiers of local government to cases where all the local authorities concerned have given their consent. I strongly agree with that. Of their amendments, I prefer the two which are more far-reaching, Amendments 188 and 194, because the provision for local authorities to merge exists already. Clause 57 and Schedule 26 are there only to implement the power of the Secretary of State to enforce such mergers, without the consent of the authorities involved.

The addition proposed by Schedule 26 of the Bill to the Local Government and Public Involvement in Health Act 2007 concerns a

“district or county council for an area for which there is currently a single tier of local government”.

I understand that a county council can be a single tier, but I cannot understand how a district council can be a single tier. I would observe that the Bill is concerned with mergers of principal authorities. Can the Minister tell your Lordships if it also provides for the dismemberment or breakdown of principal authorities into smaller units, such as is happening under the current local government reorganisation? This is seeing many counties being divided up into smaller unitary authorities, which will certainly result in a massive increase in costs, which will have to be borne by hard-pressed council tax payers.

My Lords, I rise to speak in the strongest possible support of the amendments tabled by my noble friends on the Front Bench. I would like to make two introductory remarks.

First, I was the leader of a council for 20 years and had a ringside seat for LGR in my own area and as part of my chairmanship of the District Councils’ Network. I saw at first hand that, far from saving money, LGR has precipitated the bankruptcy of Somerset and in Yorkshire created a so-called local council spanning the whole width of England at that point, bar 9 miles, encompassing Skipton, Selby and Scarborough.

Secondly, I note that a lot has changed since we were in Committee. The Government have published their LGR proposals for Norfolk, Suffolk, Essex and Hampshire. The lofty ideals of strategic leadership, better value for money and economies of scale, together with the published criteria, which the public took at face value and responded to, have been dashed on the rocks of partisan gerrymandering. I do not know why I am surprised that the party that sought to rig the local government elections would seek to pervert the process as it has, but we can see what has happened here. The Labour authorities that connived with the Government to cancel the election on the flimsiest grounds—so weak the Government would not take their chances in the court—have been rewarded with small unitary councils designed to fail. The goalposts have been moved. That is why Amendments 189 and 191 in particular are so important. They would stop the abuse of process whereby the public, who play by one set of rules, are stymied by Ministers playing by another.

Let us compare what Ministers advertised in the current round of LGR against what has been delivered. It was said that LGR proposals should, in all but the most extenuating circumstances, respect and be based on existing councils as building blocks—themselves grounded in the historic county boroughs, Poor Law unions and ecclesiastical hundreds. There were good reasons for this. The Government are in a hurry, and easy building blocks make aggregation simpler, better value and quicker.

Labour’s proposal in Norfolk will create Britain’s poorest council in east Norfolk on the altar of shoring up Labour’s prospects in Norwich. It is the same in Suffolk and Essex. The proposed east Norfolk unitary will comprise North Norfolk, which has England’s oldest population, the greatest social care needs and the lowest economic population; Great Yarmouth, my hometown, which has some of the country’s most deprived wards; and essential parts of South Norfolk, outside the Norwich fringe, where the main industry is agriculture, with miles of open fields and little wealth-generating industry. It is all the cost and none of the revenue. Norwich and its gravitational pull will be excised from this territory, leaving a rural rump bisected by the River Yare and a mile-wide marsh from east to west without a crossing save for the two-car chain ferry at Reedham that closes at 10 pm and does not open at all in January. The Boundary Commission would not be able to lawfully create a parliamentary constituency given that fact. So, I have no idea how the Government thought that this would wash for a council, unless it was on the basis of: “I’m all right, Jack, in the City, and Diss better get used to being chucked in with Wells-next-the-Sea, two hours away by car”—there is no bus.

Then we were told that only proposals that could demonstrate value for money would be entertained. But there has been no published cost analysis. Nobody knows what council tax might be in the new arrangements. Nobody has a clue about council tax harmonisation or debt apportionment or the pension fund strain costs, which the Times said could cost as much as £1 billion, as the staff with the longest service can retire on grounds of efficiency, typically at a quarter of a million pounds a pop. The people who told us in 2020 that LGR would save a fortune now say that it will not save a bean. They were suckered, but the Government have not published any financial analysis at all. We know that they have not published that analysis because they do not have the first idea of the costs, because they have split the districts by not following the rules that they set at the outset to use the districts as building blocks—

Forgive me for interrupting. The noble Lord is giving us a lot of very interesting information, but we are on Report and I just wonder how much more he has to give us.

The answer is not very much. I am getting to the nub of the point.

The Government have said one thing and done another. That is an important legal point, because in 2007 when they tried to use these same provisions that they now seek to rely on under the Local Government and Public Involvement in Health Act, Mr Justice Ouseley, in his judgment in January 2010, found that the Secretary of State for Communities and Local Government had changed the decision-making approach in an unfair and unlawful manner. He said:

“the Secretary of State set out repeatedly the basis upon which he would refuse proposals, and without any warning adopted a wholly different approach, and reached decisions which, on the original approach, he would not have reached. … On the face of it, the decisions taken by the Secretary of State … made a mockery of the consultation process”.

This amendment would stop the jiggery-pokery and the changing and moving of the goalposts during the process that we have seen today. Furthermore, a previous part of that botched process in 2010 was quashed by Mr Justice Cranston, a former Labour MP, because the tabulation of costs and benefits alongside a full plain English explanation of what it would mean to the man on the street, which included a full statement of the total forecast cost to the council tax payer had not been done—and of course it has not been done. Our counties, subject to LGR in this round, are being pushed into a financial leap in the dark—brought to you by the same people who told the nation that business rates would not be put up for pubs.

I hope that my learned friends run the rule, following the 2010 judgments by Justice Ousley and Justice Cranston as a guide, but it is now clear that the Government never intended to follow the rules and have not even bothered to run the numbers anyway, resulting in a no man’s land of councils being too small to be big or too big to be small. We were promised better than this. I strongly support the amendments because we have seen gerrymandering in this process. That is not good enough, and these amendments would prevent it happening in future. I hope councils do not waste too much time on this until my learned friends have completed their deliberations, because they sorely need to.

My Lords, there were an awful lot of questions there for the Minister to answer. It would be better for the House if she responds to them, in particular to the nub of the question raised by the noble Lord, Lord Fuller, and the noble Viscount, Lord Trenchard.

I hope the Minister will not mind if I pay tribute to the late Lord Beecham. He was a councillor in Newcastle for 55 years, 17 of which were as leader of the council. He was the first chair of the Local Government Association. I spent a number of years as leader of the opposition to Jeremy when he was leader of the council, and we enjoyed sparring, as indeed we continued to do after 2010 across the Floor of this Chamber. He was a new broom in the late 1970s in the era after T Dan Smith. He was young. He created the social services department. He fought an unrelenting battle against poverty, creating a welfare rights service in Newcastle, but he also understood the importance of growth in the city. We discovered yesterday—I did not know—that he convinced the Chancellor that there should be bus passes for older and younger people; I am particularly pleased about that.

I know that Jeremy’s family have appreciated the large number of tributes that have been paid to him nationally, locally and in the media. There is a book about what he did in those 55 years—there is a copy in the Library and, I think, in the Government Whips’ Office—to which I was privileged to contribute chapter 2. It is an interesting work on the history of local government over the past 40 years. I add my tribute to Jeremy’s huge contribution to Newcastle and to the country as a whole.

I thank the noble Lord, Lord Shipley, for his comments. Indeed, we learned about the bus pass yesterday, for which I am eternally grateful, as was my dad, who loved his bus pass. That was just another of Jeremy’s achievements that many who knew him did not know about.

As I have said before, this Government are committed to fixing the foundations of local government. Our vision is clear: stronger local councils that are equipped to drive economic growth, improve local public services and empower their communities. We want all residents to be able to benefit from strong unitary councils. I know that the noble Baroness, Lady Scott, is a powerful advocate of this from her time in Wiltshire. In response to her specific questions, value for money and the strengthening of geographic identity came out very clearly in the submissions made by local authorities in response to the call for proposals for new local government structures.

On the community empowerment side of the noble Baroness’s questions, the neighbourhood governance proposals we have set out in the Bill will provide the most powerful basis for community empowerment in a generation. I look forward to further discussion about them, and we will provide further regulation to set out exactly how that will work.

In response to the noble Lord, Lord Fuller, I am not going to go into all the details of the Norfolk process but it was extremely rigorous. Locally submitted proposals were considered very carefully against the clear criteria that had been set. We have always said that the 500,000 population limit was a guideline, not a hard line that had to be met. When we looked at the proposals, it was clear that we needed to be flexible on that in some areas. We made our decisions against the criteria, and they are now back with the priority programme areas for them to have a look at.

My Lords, these Benches also align with everything that has been said about the great Lord Beecham. I wrote down a number of things to say, but it has all been said. He was a hero in local government. When I became a new young councillor, his was the one name that I was always a bit scared of, to tell your Lordships the honest truth. We from these Benches send our thoughts to his family and all his friends. May his memory be a blessing.

I am grateful to the Minister for her response. I am also grateful to my noble friend Lord Fuller. I know he spoke for a long time, but he was explaining what has happened on the ground from local government reorganisation that started even before the Bill has finished its passage through Parliament. It is important that we hear what is happening on the ground. I happen to live in Norfolk at the moment, and I can tell noble Lords it has gone down like a lead balloon there. We are where we are and Norfolk will make it work, because that is what most local authorities do, but it certainly does not reflect what I hear from local people as to what they wanted or expected.

As I have said, our concerns with Schedule 26 reflect our wider concern about the true purpose of the Bill and its impact on local communities. As drafted, it shifts the balance of power in favour of the Secretary of State rather than local people when it comes to their local government and their services. This is contrary to the aims of a Bill titled “community empowerment”. Local government reorganisation should genuinely have the consent of all the parties it affects, in consultation with the local communities they are elected to represent. We are not here to try to frustrate reform. As the Minister said, I am an advocate of unitary authorities. I led one for 10 years and I led it into a unitary, but that was with the people of Wiltshire all the way through.