Levelling-up and Regeneration Bill
Wednesday 15th March 2023
(1 year, 8 months ago)
Lords ChamberLevelling-up and Regeneration Act 2023 View all Levelling-up and Regeneration Act 2023 Debates Read Hansard Text Watch Debate Read Debate Ministerial Extracts Amendment Paper: HL Bill 84-V(b) Amendment for Committee (Supplementary to the Fifth Marshalled List) - (15 Mar 2023)
“Councillor conduct: suspension of a parish councillor(1) The monitoring officer of a local authority in England may suspend a parish councillor where that monitoring officer has determined through an investigation that the parish councillor has breached the parish council’s code of conduct.(2) In subsection (1) a “local authority” is defined as being a—(a) district council;(b) unitary council;(c) London borough council;(d) metropolitan borough council.”Member's explanatory statement
This new Clause would introduce a new sanction of suspension to the ethical standards regime which applies to parish councils in England.
Baroness Scott of Needham Market (LD)
My Lords, I have six amendments in the group that we have reached and they are each different in nature. While I will be as economical with my words as possible, I need to make a brief case for each of them. Collectively, they are to do with strengthening the position of town and parish councils which, we have all agreed, play an important part in our local government system. I again put on the record my interest as president of the National Association of Local Councils.
First, Amendment 159 deals with councillor conduct and the suspension of a councillor. At this level, it is true that most parish councils are very well run. The clerks, council staff and councillors all work together very well and maintain high standards of conduct. But, sometimes, the impact of poor and disruptive behaviour by councillors, clerks and, occasionally, residents can overshadow proceedings and communities and make civic life very difficult indeed. We are concerned here with a small minority of councillors who engage in unacceptable behaviour such as harassment and bullying, including racist, sexist and ableist abuse. Such activities would be grounds for suspension and dismissal if they were in an employment setting, which is why NALC is arguing for stronger sanctions than the current ones.
The Committee on Standards in Public Life published a review in 2019 which made a number of recommendations to strengthen the current standards and conduct frame- work and the safeguards that apply to it. It argued that the sanctions currently available to local authorities are insufficient and that this lack of robust sanctions damages public confidence in the standards system and leaves local authorities with no means of enforcing lower-level sanctions or addressing serious or repeated misconduct.
Amendment 160 is on the position of those with caring responsibilities. Again, we can agree that it is essential that councils of all levels contain representatives from a wide range of circumstances and backgrounds. Underrepresentation of certain groups is very bad for democracy. NALC has carried out research that identified that an important barrier to achieving this wider representation is lack of help with the costs of dependant care. Unlike every other councillor in England and Wales, members of a parish council are specifically precluded from being able to access help with dependant care. I hope that, if the Government are setting their face against virtual meetings, they will consider the impact on this group and perhaps agree to changing the allowances situation.
Amendment 161 is around the governance review, which was a commitment in the White Paper to launch a review of neighbourhood governance in England to look at how it could be made easier for local people and community groups to come together to set local priorities and shape the future of their neighbourhoods. The review would also look at the role and functions of parish councils and, crucially, at how to make parish councils quicker and easier to establish.
Communities covering two-thirds of England’s population are being left behind in taking this community- led action because they do not have a parish council. Onward’s social fabric index shows that areas with full coverage of local councils score significantly higher than those without local councils in all the key measures of community strength. We heard earlier this evening about the considerable success of neighbourhood plans in delivering more houses rather than fewer. Partly as a result of that, in the past decade more than 300 places have created new councils in response to community demand, yet barriers still exist, which are partly lack of awareness by communities that they could have a local council, lack of support, a process which is very complicated and the attitude of some principal councils, which can be quite resistant. The Government are yet to publish any further details or timescales for taking the White Paper forward. It is a real pity that this Bill is again missing that opportunity.
Amendment 162 relates to the power to pay grants. Neither the levelling-up White Paper nor the Bill includes any reference to funding for the 10,000 parish councils in England. These councils do not currently receive government funding. Their services and activities are almost entirely funded by their small share of council tax. They do not receive revenue support grant or a share of the business rate and, despite the growing role of parish councillors in responding to the social, economic and environmental needs of their communities, they are not eligible in their own right for any of the government growth funds, such as community renewal, levelling-up, the towns fund or the UK shared prosperity fund. They are also excluded from the community ownership fund.
I agree with my colleagues, and I share the distaste for this handing out of money through central pots but, if that is the way it is going to be done, then it seems very unfair and counterproductive to exclude parish councils. They are not going to be able to play the full role they can in levelling up if they are simply funded by local residents. There are other opportunities coming up in which parish and town councils would like to participate, for example, a net-zero trail-blazer or—heaven forefend—any more national emergencies or the delivery of government priorities. This amendment would level up the list of local authorities in England to which Ministers of the Crown could pay a grant. It would provide Ministers with an additional power and flexibility and not be a requirement.
My penultimate amendment, Amendment 163, is around clarification of the legal power of parish councils to fund repairs to local churches. I will not dwell too long on this because there is Amendment 485 later in the Bill, tabled by the noble Lord, Lord Cormack, and others. The fundamental problem is that parishes which wish to fund local churches now find themselves with a grey area of the law. Section 8 of the Local Government Act 1894 says that parish councils cannot give funding to ecclesiastical charities, but Section 137 of the Local Government Act 1972 says that they can. This amendment is not saying that they should be giving grants—it is neutral on that—it is simply that parishes which might want to give a grant are deterred because the law is unclear. I should make it clear that it is not always a church building. In my parish, for example, we have no community room. The only building we have is the church room, and that is really our community centre, but the parish council does not feel it can give a grant. The advice that NALC gives to its members is that the accepted legal principle is that, when interpreting an Act of Parliament, a specific provision overrides a general one. I have a lot of detail about the legal provisions—which noble Lords will be pleased to hear I will not go into—but they certainly need to be clarified. That was held out in 2017 by The Taylor Review: Sustainability of English Churches and Cathedrals, which confirmed this confusion needs to be cleared up.
The Minister wrote to us a few weeks ago on this matter, and her letter essentially said that this would need to be taken up with the courts. I respectfully suggest that if Parliament has legislated in ways that are contradictory, it really should be for Parliament to sort it out, not the courts. In practical terms, it is absurd to think that parish councils will voluntarily take themselves to court. This is an appeal for clarity.
The Deputy Chairman of Committees (Baroness Garden of Frognal) (LD)
My Lords, the noble Baroness, Lady Harris of Richmond, is taking part remotely. I invite her to speak.
Baroness Harris of Richmond (LD) [V]
My Lords, I support my noble friend Lady Scott of Needham Market and the noble Lord, Lord Blunkett. I will speak specifically to Amendment 163.
I should first declare an interest that I am the high steward of Ripon Cathedral, and although Ripon is technically a city because of its cathedral, the cathedral is also regarded by many as its parish church. The crypt is the oldest built fabric of any English cathedral, and worship there has been continuous since 672. Ripon was the first place in England where the Benedictine rule was lived out. It is a grade 1 listed building. The surrounding lands are a scheduled ancient monument. However, although it is a place to encourage pilgrimage and sanctuary, it is also a space to encourage imagination, exploration and debate. It is used extensively to promote local innovation and many events, and is a space for the community of Ripon to come together. However, it needs urgent support if it is to flourish for the next 1,350 years or so.
All churches and cathedrals have a really desperate job not just trying to stay open but, in these straitened times, to be heated. They try to raise whatever money they can but tend to be fighting a losing battle, as the maintenance costs of caring for such large buildings is astronomic.
It is a complete anomaly that parish councils cannot help to support their local church or religious building if they so wish. Almost certainly it will not be a huge grant: parish councils are as bereft of money as our churches are. As we have already heard from my noble friend, the two conflicting bits of legislation pertaining here—Section 8 of the Local Government Act 1894 and Section 137(3) of the Local Government Act 1972—give rise to concerns that parishes can, if they want, grant the local church some much-needed money. What should have happened of course is that, when Section 137(3) came in, the Government of the day could have struck down Section 8, which, as we have heard, says that funds cannot be given to churches, whereas Section 137(3) says that they can. Unfortunately, this was probably overlooked at the time and now we have an opportunity for the Government to accept this wholly reasonable amendment, which will clarify matters.
The Earl of Lytton (CB)
My Lords, my name is added to some of the amendments in this group, and I would like to speak very briefly to some of them. I thank the noble Baroness, Lady Scott of Needham Market, for having introduced her amendment so eloquently.
I recognise several of these from the time when I had the privilege of being the president of the National Association of Local Councils, and of the then combined Sussex Association of Local Councils. I know just how disruptive these conflicts can be. They can be between the chairman and councillors, between other councillors, or councillors and a clerk, or it can be something that a councillor is doing externally to the work of the parish. These things do need to be dealt with, and if the monitoring officer is not in a position to call order, these things have a habit of festering. I know just how disruptive they can be to the entire process, so I support that one very much.
I support also Amendment 160 on the dependants’ carer’s allowance, and in particular the review of neighbourhood governance. The noble Baroness, Lady Scott, referred to neighbourhoods and neighbourhood planning, and I think it is a matter of vital consequence, particularly as there seems to be a certain frequency of neighbourhood plans not being respected by the principal authorities. If we do not have something that neighbourhoods feel they can really aspire to and can be made to stick, what is the motivation for them to get engaged in the first place? Are we delivering something that is really talking about communities and supporting communities in what they do and their aspirations, or is it some sort of fig leaf? I hope it is not, and I think there should be this review so that we can see where things are going. I certainly agree with the power to pay grants to parish councils. This is something that goes back a long way—several years.
I did not put my name down to one other amendment that I should have—that was Amendment 164—because the general power of competence for parish councils certainly goes back into the mists of time and was a live issue during my period as president of NALC. Again, this goes back to the question of whether parish councils can demonstrate to their councillors, for all the time and effort that they give voluntarily, and the fact that they are spending public money, that they are going to be able to drive forward their proposals within their area of competence. This is not to say they should be in conflict in any way with principal authorities, or anything like that, but, within their remit, why can they not have the general power of competence? I can see no good reason not to have it. For those reasons, I support these amendments. The only one I have not mentioned is Amendment 163, on:
“Financial assistance to church or other religious bodies”,
because I really felt I did not have the competence to make any comment on that.
Lord Blunkett (Lab)
My Lords, before I speak to the amendments tabled by the noble Baroness, Lady Scott, could I make an appeal to the usual channels that, given that there is a major problem this evening in terms of transport, we are mindful of that in terms of how long we sit? Only in this House—certainly not in the House of Commons—could we be here with the difficulties that are experienced outside and, while I realise we have got to try and make progress on Committee, I appeal for the exercise of a degree of common sense.
In speaking to the amendments to which I have put my name, I want to make a broader point. When I was leader of the city of Sheffield, with its population of 560,000, I was not always mindful of the needs and the importance of the parish and town councils that lay to the north of the city and which had previously been in what was then the old West Riding—that is, Bradfield, Ecclesfield and the town council in Stocksbridge. It struck me much later, as a declared communitarian, that this was a big mistake. The more that we devolve and ensure that we make decisions and delegate decisions as close to people as possible, the more we will ensure that we protect and reinforce our democracy. Town and parish councils are the building blocks on which the broader decisions are taken by county and metropolitan authorities and, here in London, by the boroughs, the GLA and the mayor.
As we move to greater devolution, which was debated in the previous business this evening, we must take into account that, while elected mayors and mayoral combined authorities are the way forward in terms of infrastructure, investment and devolvement of powers from central government, this will not succeed unless people feel an affinity and are engaged with their community and neighbourhood in the cities and, in rural areas—of which I have had experience in the last 20 years—with their parish and town council.
These amendments are not just technical amendments relating to the powers that should exist with parish and town councils. They are about the reinforcement of democratic representation by local people and the investment in community facilities, including religious facilities and institutions where it is possible to define sensibly what that investment is for. I imagine that the Government will want to reflect on this. It could be in heritage. It could be, as has been described by the noble Baroness, Lady Scott of Needham Market, the community facility that in so many parishes and small towns across the country exists only within the local church. I did apologise to the annual conference of parish and town clerks for having been a bit centralist in the past, so I might as well put that on record tonight. A sinner who comes to understand is worth three of those who have not understood the mistakes that they have made—so there we are.
There is a very real issue here that the Government could deal with very simply and easily and, as has been described, where there are contradictory pieces of legislation—Section 137 was mentioned—we could set the record straight. We have moved on a lot since the Redcliffe-Maud Royal Commission’s proposals and the 1972 and 2003 Acts. Life has moved on. There is a greater consensus now about devolution and about subsidiarity—I never could say that word without losing my teeth. We have an opportunity on the levelling-up Bill, very simply and easily and without a great deal of fuss, to put this right on Report.
Lord Scriven (LD)
My Lords, I will probably upset my noble friends Lady Scott and Lady Harris when I speak to Amendment 163. There may be confusion, but if any of the Acts should be withdrawn, it should be the 1972 Act, not the 1894 Act, for one reason of practicality and one of principle.
The matter of practicality is that the Church Commissioners, in their latest report, said that the reserves of the Church of England after its liabilities in pensions is £7.5 billion. Therefore, there are issues concerning investment in church funds or church buildings where the first port of call should be the reserves which the Church of England holds. The report goes on to say that in dioceses, the reserves are £1.6 billion, with a cash reserve of £1.84 million, and cathedrals’ general reserves are £524 million, with £50 million in cash.
The second reason is one of principle. I find it absolutely incredible and unacceptable that the Church of England—an organisation that does not see me as an equal citizen in this country, that has used discrimination and prejudice to try to deny my marriage and many other people’s marriages in this country and continues to do so, and that uses a fudge to try to hold its own organisation together rather than see equality for all in love—should be the first port of call as a matter of principle in which parish or any other councils should be able to claim off the state.
For those reasons—one of practicality, the funds that the Church holds, and one a matter of principle, which I see as a position of prejudice and discrimination held particularly by the Church of England—I feel that if any legislation should be repealed, it should be the clause in the 1972 Act and not the 1894 Act.
Lord Stunell (LD)
My Lords, I am certainly ready to respond on behalf of my Front-Bench colleague on this group, but I notice that there are two further items that it might be appropriate for me to allow the noble Baroness, Lady Hayman, to address before I speak.
Baroness Hayman of Ullock (Lab)
We have one amendment and a stand part notice in this group. One is on whether Clause 92 should stand part of the Bill, and the other is an amendment as to whether the Crown should publish a review on whether the provisions of the Act should be extended.
Clause 92 is on the neighbourhood development plans and orders, and the basic conditions that are referred to. We have put this down because we wanted to draw attention to what we considered to be a fundamental issue with neighbourhood plans. As things stand at the moment, it is not entirely clear to us what role they play in national planning policy. We know that they are explicitly addressed in the National Planning Policy Framework, but this is only in terms of process. The way it is done is not particularly clear. On the one hand, the stated rationale of neighbourhood plans is that they give communities the power to develop a shared vision for their area, and they are legally part of development plans. On the other hand, they have to conform to local planning housing allocations, if they are still going to exist, and have regard to national planning policy, but can also be overturned when they are in conflict with either of these things. That brings about a tension and, ultimately, the question of who makes decisions here. Is it communities or is it Ministers? This is not really resolved or clear at all. It would be helpful for the Minister to bring some clarity around that. We need clarity about the precise remit of neighbourhood plans.
More fundamentally, we also need a better sense of the function of neighbourhood planning within the wider planning system. It is critical that there is a balance between local and national planning, because we do not want to see communities disempowered and more control at the centre. I know that the Government have talked a lot about how the Bill is devolving power from the centre locally, but we feel that in many areas this is not actually what the Bill is achieving. We need to make sure that we do not lose the ability of communities to have a say in their own destinies and what their communities are going to look like. If you think about the last 10 years of Conservative Administrations, the Government have been tinkering away with the planning systems; we believe that has, to a certain extent, undermined the scope for effective local and neighbourhood planning. The Bill is an opportunity to put that right. As it stands at the moment, we think that in certain areas it does the opposite. It is about making sure that the Bill does level up, does give more power to communities and does not snatch any more back to the centre.
I give just one example of why we are particularly worried about this. The new national development management policies that the Bill provides for will take precedence over both local and neighbourhood plans where there is any kind of conflict. When the Minister responds, it would be good to hear that she appreciates the concerns I have just expressed and for her to give us confidence that the Bill will not undermine any kind of localism in the planning system. On the clauses that we are concerned about, such as Clause 92 and later when we get to the NDMPs, it would be good to hear that there will be more consideration of the impact on local decision-making.
Amendment 506 in the name of my noble friend Lady Taylor of Stevenage concerns
“whether the provisions of this act should be extended in relation to parish councils and town councils in England, and community councils in Wales and Scotland.”
We have had a pretty big debate about parish and town councils so I will not go into any detail on them now; I think the Minister has a fairly clear idea of why we are saying this. I do not think the Bill goes far enough to empower and involve communities in the devolution proposals that we have been debating.
I will speak briefly on some of the other amendments introduced by the noble Baroness, Lady Scott of Needham Market. Again, many of them are really important. I particularly want to say how much we support Amendment 160—as the noble Baroness said, this feeds back to our previous debate—on the dependant carers’ allowance for parish councillors. This is important. I do not understand why parish councils could not have been added to the list of local authorities in England that can have a scheme to provide for the payment to members if they have caring responsibilities. It could help with the expense of arranging childcare, for example, or of having someone come in to sit with an elderly relative while the carer attends a meeting. It seems a sensible, practical way of supporting councillors who have caring duties to take a greater role and encouraging people with caring responsibilities to take part in their local communities.
I also think that the noble Baroness’s Amendment 161, on neighbourhood governance, is something that we need to look at. It makes absolute sense for the Secretary of State to have to
“undertake a review of neighbourhood governance in England.”
Again, in looking at levelling up, that is about empowering communities; it is all part of the same picture, as far as I can see. The noble Baroness referred to the 2017 Taylor review. As she said, it confirmed that there is considerable confusion about what Section 8 of the 1894 Act actually means; again, we will come on to churches and what it means for them. Whether you agree with it or not, this is about updating legislation so that everybody better understands what it means. At the moment, better clarification is needed. One of the points that has been made on this by the National Association of Local Councils is that there is no current case law to resolve the question of whether that Act in fact overrides these provisions. To me, it just makes sense to have a review as it is a very old piece of legislation.
We very much support the noble Baroness’s Amendment 164 on the general power of competence. Communities need power and influence to tackle the issues that matter most to local people, allowing them to shape the delivery of public services in their area and, ultimately, to deliver the kind of community in which they want to live and be part of. Again, we think that it is an important amendment.
My noble friend Lord Blunkett said, quite rightly, that this group of amendments is important for how local democracy is supported and developed as we go forward. I hope that the Minister and the Government will look kindly on the amendments, the spirit of what they are trying to achieve and the support they are trying to give local communities and parish councils. If you are genuine about levelling up, these sorts of amendments can actually make quite a big difference in their own way. I hope that she will have time to take this back to her department to look at in more detail.
Finally, it was very good to learn that my noble friend Lord Blunkett has recognised the error of his ways in making things more centralised, and I hope that the Government will learn from his approach.
Lord Stunell (LD)
My Lords, I too welcome the noble Lord, Lord Blunkett, to the community of the saved. The amendments on parish councils find favour with our Front Bench. I will not go into great detail on them. I hope that, if we are quick on this group of amendments, the Government will give us a break afterwards.
On the standards proposed by Amendment 159, I say that I was a member of the Committee on Standards in Public Life when we carried out our inquiry on the state of the health of democracy in local councils. There was a quite clear gap, and our recommendations were very clear about what should be done. It is disappointing that the Government, initially at least, responded that they were not going to take any action. I hope that they will now take some action, not least because of the high-profile cases which came to light during the pandemic lockdown.
We support Amendments 160 and 161; the review of parishes is certainly well overdue. The capacity of parishes to do things was much tested during Covid. Most parishes proved up to the task, but the government system of emergency funding was denied to them; had it been available, it would have been helpful to their communities. I would have thought that the Government might want to have this reserve power in their pocket for a future occasion, even if they are convinced that they do not need to apply it immediately.
I did not know how controversial grants by parish councils would prove to be in the debate. I just add that the Church of England is not the only religious body in England, and certainly not the only religious body which supplies and helps its community and which parishes might well want to support and enable. I am quite sure that we need to get past this particular roadblock and just make parishes able to take their own decision about whether a particular body and a particular cause does or does not justify the use of taxpayers’ and parish money to carry out duties of one sort or another. The power of general competence is of course part of capacity raising, all of which is about levelling up by making parish councils effective voices in their community and enabling them to do things; it is empowerment.
The Government have focused on things which some of us think are completely misplaced or very trivial—the subject of street names springs to my mind. However, on things which are much more important and significant, they seem to have been a little blind, so I hope that they will respond to the debate in a very positive way.
On the question of Clause 92 standing part of the Bill, I hope that I do not understand the clause properly, because it seems to say that neighbourhood plans will be fine from now on, but only as long as they reach a minimum standard set by the Government in terms of housing supply.
I said in an earlier debate that neighbourhood plans had been remarkably successful in allocating more land for housing than the local plans that they superseded, on average. Obviously, of the roughly 3,000 that have been approved, not every one has provided more housing—some have provided less—but, on average, they have provided more. They are a vehicle for overcoming the terrible tension in a planning system in which the developer develops and the community opposes. They were designed to turn it around, so that the community proposes and the developer develops. That is how you get more homes; if you try to bulldoze it through the community, at whatever level, you will slow the process down. Neighbourhood planning has shown that you can speed it up and get more homes.
The Parliamentary Under-Secretary of State, Department for Levelling Up, Housing & Communities (Baroness Scott of Bybrook) (Con)
My Lords, before I respond to the amendments in this group, I want to say that the Government recognise that parish councils have an important role in improving the quality of life and well-being of their communities. They have a close understanding of what their communities want and can design and procure the services which best meet those needs. They are vital to levelling up. I just wanted to add that before turning to these amendments covering parishes and neighbourhoods.
On Amendment 159, tabled by the noble Baroness, Lady Scott of Needham Market, the fact that there is no provision in current legislation for a sanction to suspend a councillor was a deliberate policy decision at the time of the Localism Act 2011 to differentiate it from the previous Standards Board regime. That regime was considered to have allowed politically motivated and vexatious complaints. The Government’s position on this remains substantially unchanged, as referenced in our response to the Committee on Standards in Public Life’s review of local government ethical standards.
This clause to suspend a parish councillor found to have breached their code of conduct would introduce inconsistency in the local authority standards regime across the other tiers of local government. On the rare occasions when councillors display poor behaviour, local authorities have options to issue sanctions on parish councillors. Councillors can be barred from committees or representative roles and may be publicly criticised.
I turn to Amendment 160, also tabled by the noble Baroness. This Government are keen to ensure that local communities are well represented in local authorities and that all levels of local government are supported to create thriving local democracies. While I thank her for raising this amendment, it would result in unknown but likely significant costs and pressures on the modest finances of many parish councils. For that reason, the Government resist the amendment.
Turning to Amendment 161, tabled by the noble Baroness, as set out in the levelling-up White Paper the Government are committed to undertaking the neighbourhood governance review as one of the six drivers of levelling up. The review will make it easier for local people and community groups to come together to set local priorities and shape the future of their neighbourhoods. The Government are taking the appropriate steps to deliver the review within the next financial year, 2023-24, and will ensure that a programme with a bold new approach to community empowerment is put in place. The success of this will require the collaboration of all partners in local government and civil society, as well as central government.
Turning to Amendment 162, tabled by the noble Baroness, the Government recognise the important role that town and parish councils play in their communities. Parish councils have the power to raise funds through precept, which they can ask their local billing authority to collect through the council tax system. There are around 10,000 parish councils in England, and I am sure noble Lords will agree that it would be disproportionately bureaucratic for central government to give funding to all of them directly. It is much better for them to raise that funding locally, according to the needs of their local communities. As for bids for certain grants, PCs can always work with other local authorities and their partners in an area for funds, including such funds as the LURB’s.
Amendment 163 is important to government. The intention of the Local Government Act 1894 was to provide a clear separation between parochial church councils and the newly created civil parishes. While it does not allow parish councils directly to contribute to the maintaining or improving of church buildings, other powers, as has been said, such as the Local Government Act 1972, allow parish councils to contribute to the upkeep of such buildings if it is deemed to be in their local communities’ interest. Section 19 of the Local Government (Miscellaneous Provisions) Act 1976 enables parish councils to provide assistance in respect of buildings used for public meetings or for recreational facilities.
We are aware that there are different interpretations of the laws surrounding this issue which have not been tested in the courts. As independent bodies, it is for parishes to decide what works best for them in their local communities and to ensure they act within the relevant legislation, taking legal advice where appropriate. If the noble Baroness will forgive me, I will not go further into this issue at this time because I look forward to debating it much more fully when the amendments in the name of my noble friend Lord Cormack and the right reverend Prelate the Bishop of Bristol are before the Committee. For the time being, however, I note the intention behind the noble Baroness’s amendment.
Turning to Amendment 164, tabled by the noble Baroness, the definition in the Localism Act 2011 of local authorities covers a parish council and enables such a council to do anything an individual might do, apart from that which is prohibited, obviously. The intention of the 2011 Act is to give local authorities confidence in their legal capacity to act for both their communities and in their own financial interests, in addition to providing them with more freedoms to innovate and work with others to run services and manage assets for the benefit of the local communities they serve. Parish councils vary in their ability and capacity to take on the enhanced roles and responsibilities of an authority with the general power of competence.
To make it clear to noble Lords, the general power of competence includes the council clerk having completed a course in local administration and two-thirds of the councillors having been elected. These are not easy things, they but are sensible when it comes to a general power of competence. The 2011 Act therefore makes extension of powers to parish councils conditional.
Regarding the concerns of the noble Baroness, Lady Taylor of Stevenage, about Clause 92, before a neighbourhood plan or development order can be put to a referendum, the local planning authority must be satisfied that it complies with certain legislative tests known as “basic conditions”. The purpose of Clause 92 is to update the existing list of basic conditions to ensure that neighbourhood development plans and orders complement the reforms to the wider development plans framework and meet future environmental assessment requirements.
More broadly, and to make the position clear to the noble Baroness, Lady Hayman of Ullock, and others, the Bill will strengthen neighbourhood planning. In future, decisions on planning applications will be able to depart from plans, including neighbourhood plans, only if there is a strong reason to do so. In addition to neighbourhood plans, as we have heard, communities will also be able to prepare neighbourhood priority statements, making it easier and quicker for them to determine the priorities and preferences for their local areas. These will feed into the local plan process and the local planning authority will also be required to consider them.
Clause 92(1) removes the historic inclusion of paragraph (e) under paragraph 8(2) of Schedule 4B to the Town and Country Planning Act 1990, which stated that a neighbourhood development order must be in general conformity with the strategic policies of the local authority’s development plan. It replaces paragraph (e) with paragraph (ea), which makes it clear that a neighbourhood development order cannot prevent housing development taking place in a location that has been proposed within the local authority’s development plan.
Clause 92(1) also introduces paragraph (fa) under paragraph (f) of paragraph 8(2) of Schedule 4B to the 1990 Act. This requires that neighbourhood development plans and orders comply with the environmental outcomes report framework that the Bill is introducing to replace the EU processes of environmental impact assessment and strategic environmental assessment.
In addition, Clause 92(2) introduces a new basic condition for neighbourhood plans, which sets out that they must not result in the development plan for the area proposing less housing development than would have occurred if the neighbourhood plan were not being made.
Lord Stunell (LD)
I thank the noble Baroness for her explanation. It is certainly helpful as far as the first parts of Clause 92 are concerned, but new paragraph (ea) is precisely the point I was raising: it requires a neighbourhood plan not to reduce housing allocation compared to the local plan, which is the current context. Bearing in mind that quite a few neighbourhood plans are being made in areas that do not have local plans, that raises another question, which we will park for the moment. If you put that floor at the level at which neighbourhood plans have to perform—in other words, you want everything to be above average compared to what we have now—does the noble Baroness not see that it undermines the flexibility that is the strength of neighbourhood plans?
Baroness Scott of Bybrook (Con)
No, I do not. One of the main issues that this or any Government will face is building houses, and allowing a neighbourhood plan to deliver fewer houses than a local plan is not acceptable.
On Amendment 506, tabled by the noble Baroness, Lady Taylor of Stevenage, the Government recognise the important role that parish councils play in improving the quality of life and well-being of their communities, which are at the heart of the Government’s six drivers of levelling up. The Government believe that the current provisions are adequate in addressing issues faced by the sector. These provisions provide tools and flexibilities to allow town and parish councils in England to adapt to local needs and circumstances. In Scotland and Wales, the devolved Governments also already have the tools to conduct a review of the provisions in this Bill and to make changes in relation to community councils. Noble Lords will agree that it is important for local people and community groups to come together to set local priorities and directions. I hope that the noble Baroness will feel able to withdraw her amendment.
Baroness Scott of Needham Market (LD)
My Lords, I thank everyone who has spoken in the debate today, and I am particularly grateful to both Front Benches on this side for their support—and particular thanks go to the noble Lord, Lord Blunkett, for having the courage to stand up and admit that he was wrong. For a brief moment, when the Minister started to say such warm and wonderful things about the town and parish council sector, my hopes started to rise—but they were sadly and very quickly dashed.
I am bitterly disappointed about the carer’s allowance. Having set their face against allowing virtual meetings, it feels particularly cruel for the Government not to allow town and parish councils to make a decision for themselves as to whether they would like to pay a dependant carer’s allowance. That feels to me quite petty and rather indicative of a mindset that says, “We want to try and devolve, but actually not really if you’re going to do something we don’t like”.
The governance review will be welcome if it takes place in the next year, but we have been waiting a long time for this. It was promised in the White Paper, and it is again disappointing that we will have to go through this process—and then, if there is legislation, they will have to find time for another Bill. It is such a pity that this opportunity was lost.
Finally, on being able to bid for grants, I gently remind the Minister that there are many large town councils that are significantly bigger than district councils, and they are getting grants while the towns are not. So the idea that there are too many of them and they are all too small really does not hold. With that, I beg leave to withdraw the amendment.
Baroness Bloomfield of Hinton Waldrist (Con)
Given the lateness of the hour, with the usual channels we have decided that, because of the train strike, now would be a good time to break off from Committee.