Northamptonshire (Structural Changes) Order 2019
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Viscount Younger of Leckie
That the Grand Committee do consider the Northamptonshire (Structural Changes) Order 2019.
Relevant document: 4th Report from the Secondary Legislation Scrutiny Committee, Session 2019
The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government (Viscount Younger of Leckie) (Con)
My Lords, this order was laid before the House on 28 October. The Secondary Legislation Scrutiny Committee published its report on 4 November. The good people of Northamptonshire then had a significant wait before yesterday’s debate on this order by the Second Delegated Legislation Committee in the House of Commons. I understand that the order was welcomed and was considered fairly swiftly.
Let me start by setting out the background to this order. Your Lordships may recall that just over two years ago my predecessor, my noble friend Lord Bourne, informed this House that the then Secretary of State had concerns about financial management at Northamptonshire County Council and whether it was failing to meet its best value duty. Your Lordships may also remember the reports in the press relating to this story. An inspector was appointed under powers given by the Local Government Act 1999.
I would like to quote directly from the report of that inspector:
“To change the culture and organisational ethos and to restore balance, would, in the judgement of the inspection team, take of the order of 5 years and require a substantial one off cash injection. Effectively, it would be a reward for failure. Even under a Directions regime, it is not considered likely that councillors and officers would have the strength of purpose to carry through such a long running programme of recovery potentially crossing two electoral cycles. In the meantime, it would be the people of the county who would suffer. A way forward with a clean sheet, leaving all the history behind, is required.”
The independent reviewer recommended that local government in Northamptonshire should be reorganised into two unitary councils, one covering the areas of Corby, East Northamptonshire, Kettering and Wellingborough and another covering Daventry, Northampton and South Northamptonshire.
The order before us today creates just this new start for local government in Northamptonshire, which has been described by the councils themselves as a
“once in a generation opportunity to develop and transform services so they are modern, financially resilient and future-proof, learning from national best practice and making informed decisions about the future.”
This order, if approved and made by Parliament, will provide for the establishment of two new local government areas. For each new area a new unitary council will be established; they are to be known as North Northamptonshire Council and West Northamptonshire Council. The order also provides important transitional arrangements, as is usual in such cases. In particular, provision is made to replace the district council elections in May 2020 with elections to the new unitary councils, which will be shadow authorities until 1 April 2021.
Viscount Younger of Leckie
I thank the noble Lords who took part in the debate, which has been not only interesting but informed. It has also been somewhat philosophical, particularly in the remarks made by the noble Baroness, Lady Pinnock.
The noble Baroness, Lady Pinnock, the noble Lord, Lord Liddle, and my noble friend Lady Scott referred to the children’s trust. I absolutely take note of their comments. All I can say is that I will take these concerns back as I am not in a position to answer them; perhaps these views are of a more philosophical sort.
In the same breath, let me say in response to the noble Lord, Lord Liddle, that a letter will be delivered to all noble Lords who took part in the debate, perhaps to put a little more meat on the bones of that particular comment relating to the children’s trust, but also to answer his questions. In fact, I will attempt to answer some of those questions during my closing remarks, but I suspect that I will not answer them in full.
Perhaps this is me being a bit philosophical, but this subject leads to endless debate. Everybody has their own view on how local services are best met and how local authorities and local councils come together best. I understand that. I have my own views; obviously, they are the views of the Government.
I start by setting out our high-level policy: what are we trying to do in local government reorganisation? I hope to allay some fears. The Government are open to innovative, locally led proposals that will improve services, enhance accountability and deliver financial sustainability. Any proposal considered under the Cities and Local Government Devolution Act process will require unanimous consent from all councils. Alternatively, the Secretary of State may issue a formal invitation for proposals.
Two circumstances will be considered in issuing such an invitation. The first is where the following two conditions are met: there is a local request for an invitation, and that request demonstrates that local opinion is coalescing around a single option that is reasonably likely to meet the existing publicly announced criteria for unitarisation. The second circumstance is where it is considered that this action would be appropriate given the specific circumstances of the area, including the long-term sustainability of local services. We are clear that any change to council structure should not be dreamed up or imposed by Whitehall, but led by councils and local people. Councils are much better placed to develop proposals that suit the unique needs of their residents and businesses. That is the overarching policy, which noble Lords have no doubt heard before.
Lord Deben
I am sorry to press my noble friend on this, but this proposal does not meet any of those things. First, it was not unanimously accepted by the local councils. Secondly, it was the Secretary of State who said what they could and could not agree to. There was no opportunity for innovative proposals; indeed, they were told precisely that there could not be innovative proposals. It is that that worries me. It is not that there is not a philosophy; it is that in no single case have I found that philosophy being followed. My noble friend, the former leader of Wiltshire Council, pointed out that Wilshire works perfectly well and so does Cornwall. Why was Northamptonshire not given the choice to have a single unitary authority? It is that that worries one. We are not keeping to what we said was our policy; I therefore wonder whether we really have a policy.
Viscount Younger of Leckie
I hear what my noble friend says, but I do not agree with him on this. There are several reasons for that. Of course he will expect me to say that; I will say it. We see a fresh start for the people of Northamptonshire. It will provide new councils in which local people can have confidence, providing effective, modern and sustainable services. Like the noble Lord, Lord Kennedy, I thank the leaders of the eight—not seven—Northamptonshire councils and the commissioners for the leadership that they have shown to take us to this point.
On the lack of unanimity and there being one council —Corby—that was not entirely on board, it has consistently shown great strength of purpose in nearly supporting things, so when we say that it is not entirely unanimous, Corby was behind many of the issues. Perhaps a letter is required to give a little more information on that.
One of the most important things in this process is consultation. The local consultation described the majorities in favour as overwhelming, with 74% support overall and 77% and 70% in West Northamptonshire and North Northamptonshire respectively. I do not want to be drawn in on the names—I do not think that I can comment on that—but I take the noble Lord’s point on the names that were given.
Lord Kennedy of Southwark
Where are West Northamptonshire and North Northamptonshire? They are dreadful, dreadful names. The Government could certainly have done something about that. Northampton got its charter in 1189. They are dreadful, dreadful names. Something much better should have been done.
Viscount Younger of Leckie
I think that I heard “dreadful” at least four times. I say, perhaps as a reassurance—although I do not think that it will wash with the noble Lord—that the names have been chosen locally. Admittedly there was no competition, but they were chosen locally rather than being imposed on them.
I shall go further on the consultation. The Northamptonshire Healthcare NHS Foundation Trust and Healthwatch Northamptonshire support a reduction in the number of councils. They both welcome the closer integration possible as a result of having to engage with fewer authorities, and agree that this is a positive opportunity for change to secure a sustainable future. The Northamptonshire police and crime commissioner is supportive and stated that the
“creation of unitary authorities would bring about clarity for the public and present opportunities for greater co-ordination, realisation of efficiencies and simpler partnership working.”
Finally, the Northamptonshire County Association of Local Councils reported that an overwhelming majority of town and parish councillors supported the principle of unitary authorities being established. We should not dismiss the opinions of local people in this respect. This allows me to pick up a point made by the noble Baroness, Lady Pinnock, about taking “local” out of “local government”. I point out to her that the new parish and town councils are in the process of being established, including in Kettering, Northampton and Wellingborough—note those names. I welcome and encourage this as an important way to strengthen local democracy and enable decisions to be taken to reflect the needs of local communities. I do not agree entirely with the noble Baroness that the local is being taken out the process. In my view, we still have some very robust local democracy.
I will pick up another point made by the noble Baroness about the role of councillors in the cabinet system. I think her point was that only 10 were making decisions, as opposed to the other 93—sorry, 89; my maths is bad. It will be for the new councils to determine the role of councillors and to ensure that all councillors can take a full role in representing their residents and ensuring an effective local democracy.
Furthermore, as to the size of wards, for the election in May 2020, each ward, which are county electoral divisions, will have three members. For the next election in May 2025, we expect the independent boundary commission to undertake a full electoral review. It is for the commission to decide the number of councillors and the size of wards. Experience shows that the new unitary councils establish strong and effective arrangements at parish and community levels, to add a little more to what I said. We would expect the new Northamptonshire councils to follow best practice—as, for example, in the unitary Wiltshire Council, led by my noble friend Lady Scott, if I may spare her blushes.
The noble Lord, Lord Deben, spoke and expressed concerns about process. My guess is that a letter will better satisfy him, but the start of the process was the independent inspector. The proposal made follows exactly the inspector’s recommendation. The consideration behind the inspector’s recommendation was that a new start was needed, with two new councils. In the inspector’s view, two unitaries best met this aim and the criteria for unitary local government: improving local government; a credible geography with a population substantially in excess of 300,000; and a good deal of support. That penultimate figure perhaps answers the question asked by the noble Lord, Lord Liddle. To clarify, the figure is substantially in excess of 300,000. A unitary county would risk being seen as replicating and rewarding a failing county.
The noble Lord, Lord Liddle, spoke about Cumbria with great passion, for obvious reasons. The position in Cumbria is all about a devolution deal. It is for Cumbria to decide whether it wishes to have a devolution deal; initial discussions are continuing. Major deals have involved a mayoral combined authority. If Cumbria wished to have a mayor deal with a mayoral combined authority, it would point to a simplification of current local government structures: establishing unitary councils. We know that there are different local views about unitary structures for Cumbria. As I am sure the noble Lord will tell me, discussions are continuing. We will want to hear more from the local area in this respect.
The noble Lord made points about the elected mayors. The idea of elected mayors arises in major devolution deals where substantial powers and budgets are devolved over a functional economic area. An elected mayor is seen as providing a strong single point of accountability for the exercise of those powers and for managing those budgets. That elected mayor can be a combined authority mayor if there is more than one authority in the functional economic area, or if that area comprises a single unitary council or an elected mayor of that council.
Lord Liddle
I would take that point if the elected mayor had substantial powers and there was a substantial devolution of the budget. As I understand it, in my county—I could be wrong and I am quite happy to be corrected by the noble Lord’s officials—Mr Berry is talking about a devolution deal that might give Cumbria £10 million a year. That is a very small amount of money compared with the county council’s revenue and capital budgets, never mind the other district councils. I think that our net revenue budget is more than £400 million; the districts must have another £80 million. We have a LEP, of course, which is already in place and deals with economic development. I do not quite understand whether the Government are saying that, if there is a reorganisation in areas such as Cumbria, the mayor will replace the LEP. I was against the abolition of regional development agencies—it was a mistake for the coalition to do that—but the emphasis then was put on local enterprise partnerships. Are we now, hardly a decade later, shifting on to mayors as something completely different?
Viscount Younger of Leckie
That just proves that there are different views; the noble Lord will have his views and other noble Lords will have theirs. Setting up mayoral authorities is not a case of one system fits all—it comes down to the ongoing discussions that are taking place. My understanding is that the mayors would not replace the LEPs, but I do not want to prejudge the negotiations. There are going to be different setups. As the noble Lord will know, there are already different setups in existing mayoral authorities. Regarding the figures that have been mentioned, a substantial deal would be one on the size and scale of that for Greater Manchester or the West Midlands.
Lord Kennedy of Southwark
I used to keep saying these things when the noble Lord, Lord Bourne, was the Minister: the idea is that these things just evolve, but it always looks like a confused mess to me. Local government looks like a real mess in England outside of London. It is all over the place and I really do not think this is good. I know it is not the Minister’s fault, but the department is not clear on what it is trying to achieve. I remember discussions with the noble Lord, Lord Lansley, who lives in Cambridge. He described all the tiers of government in his county—and next door, there was just one tier. It is just shambolic.
Viscount Younger of Leckie
I cannot agree with the noble Lord. Surely, he would agree that there is good sense in talking to the locals to work through the issues and to get their buy-in to what they want, within the parameters I have set out. I cannot see the problem with that. Already, a format is evolving: that this is the wish of local people all around the country, particularly up north, where 37% of people are under the aegis of mayoral authorities; that this is actually what local people want.
This is not so much a philosophical thing, but as the noble Lord will know, we have announced the devolution White Paper. This is an opportunity to reflect and review. I do not know what is going to be in it or what will come out of it, but we are going to look at all aspects of local government in the White Paper, which will be produced in due course. I hope it will help to allay the noble Lord’s fears. It might answer the question of my noble friend Lord Deben as to why Northamptonshire is treated differently from Cornwall. There is no one-size-fits-all solution. For example, discussions are going on in North Yorkshire about York being a unitary. Cornwall, as we know, is treated differently. It is important to come back to the point that this has got to be driven by local people deciding what they wish.
Lord Kennedy of Southwark
Again, I would agree with that statement, but the problem is that it is not the case. The Minister says that local people can decide, but they are given only one or two options. The Government are not letting them decide; they are narrowing down the options to a specific number and ruling things out before people get the chance to decide. They are setting a rigid framework and saying, “You can have that or nothing at all”. That is not letting local people decide, and that is the basic problem.
Viscount Younger of Leckie
I take note of what the noble Lord has said. Actually, it falls in line with what I said at the beginning, which is that a letter is due. I will do my best to set out our approach in more detail, because there is sense in what we are doing. This is not a scattergun approach and nor is it chaotic.
I want to answer a question raised by the noble Lord, Lord Kennedy, concerning Northamptonshire and the new arrangements. He asked: why not one or three unitaries, rather than two? The inspector recommended that a two-unitary solution was best because a one-unitary council was perceived as replicating and rewarding the failing county council, and three was seen as not meeting the criteria on credible geography with councils of adequate size.
Baroness Scott of Bybrook
I urge the Government to look again at the issue of consulting. I fully agree that it is about consulting local communities, local people. I have a problem when we take too much notice of those district and county authorities that are still there. With the greatest respect, they are trying to protect themselves, their officers—which is understandable —their members and their authority. Their views are sometimes challenged by that. It should be local communities that make the decision, not the local authorities within them.
Lord Kennedy of Southwark
I promise that this will be my last comment. The argument that we could not have a unitary authority for the whole county because it would be seen as rewarding the county council that has failed is rather weak. There was a failure of political leadership. The way to deal with that is to remove the people and not let them stand again. Not going forward with the one-council option because it could be seen as a replica of the failed county council is a weak reason.
Viscount Younger of Leckie
I pledge to write on that point and to tie it in with the point made by the noble Lord, Lord Kennedy. I have not addressed the review of savings made. In my letter, I will attempt to give the noble Baroness, Lady Pinnock, a response on that matter and address the point raised by the noble Lord, Lord Liddle, on the position of ministerial powers. That comes down to giving a coherent view of how ministerial powers juxtapose with local ones.
I hope that that is helpful and that I have addressed the many points raised. As I said, a letter will be coming that fully addresses the points that were made. Once again, I thank noble Lords for their contributions.