Monday 20th 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 Amendment Paper: HL Bill 84-VII Seventh marshalled list for Committee - (20 Mar 2023)
The Parliamentary Under-Secretary of State, Department for Levelling Up, Housing & Communities (Baroness Scott of Bybrook) (Con)
My Lords, Amendment 176, tabled by my noble friend Lord Moylan, would change the local consents required for traffic emission road-charging schemes to be introduced, and apply these new requirements retrospectively. I reassure the Committee that this amendment is not necessary for regions outside London as it maintains the status quo. In London, the amendment as drafted could remove established devolved powers from an elected mayor and as we have discussed in Committee, this is not our intention for devolution.
In London, under the Greater London Authority Act 1999 the mayor has the authority to create a new road scheme that charges users, or vary one, so long as doing so will directly or indirectly facilitate the achievement of the policies and proposals in the mayor’s transport strategy. As drafted, this amendment could be in conflict with the Greater London Authority Act, and it would potentially create legal uncertainty and conflict between the mayor and the London borough councils.
The Department for Transport has not made statements in support of the ULEZ: Transport Ministers have been completely clear that this has been a matter for the mayor to decide. I understand that my right honourable friend the Secretary of State for Transport has been engaging and will continue to engage with MPs whose constituents may be impacted by the proposed ULEZ expansion.
Outside London, charging schemes have been introduced for addressing congestion issues, improving air quality and raising funds for investment in new transport infrastructure and improving transport quality. The Transport Act 2000 already sets out how road-charging schemes can be introduced. In combined authority areas, these powers are held between the combined authority and the local traffic authorities—that is, the constituent authorities of the CA. Therefore, outside London local authorities are already required to introduce schemes and existing legislation already delivers what this amendment seeks to achieve.
Additionally, the amendment would require the reconfirmation of a number of existing charging schemes and it would allow any local authority unilaterally to revoke them. These schemes have been introduced and agreed locally and, where they cover multiple local authorities, agreed jointly. Decisions on whether to amend or revoke these schemes would therefore also be made jointly, as the powers in the Transport Act 2000 already ensure. I nevertheless recognise how important this issue is not only to my noble friend but to many others, and not just in London. I am happy to meet with him to discuss these matters further.
Amendment 178B, also in the name of my noble friend Lord Moylan, seeks to lower the threshold for amending the Mayor of London’s final draft budget from two-thirds of assembly members present and voting to a simple majority. While the amendment would undoubtedly strengthen the power of the London Assembly and mirror the voting threshold applied at earlier stages of the assembly’s consideration of the mayor’s annual budget, it must also be balanced against the benefits of the current strong mayoral model in London. I agree with my noble friend that it is crucial in any of these systems that we have strong audit and scrutiny. That is why the Bill strengthens both audit and scrutiny committees in these new authorities.
I recognise my noble friend’s interest in and experience of London governance matters and I would be pleased, as I say, to engage with him not only on his earlier amendments but these. Perhaps we might review the operation of London’s devolution settlement separately from the Committee’s consideration of the Bill, and I ask my noble friend to withdraw his amendment at this time.
Lord Moylan (Con)
My Lords, I am very grateful for what was a very valuable debate and I shall briefly go through those who spoke.
The noble Lord, Lord Tope, put his finger on it by saying that this is really a question that will not go away: about the balance of powers in areas that have strong regional government—combined authorities, metropolitan mayors and so forth—with the local councils, the constituent councils. As my noble friend the Minister made clear, those arrangements differ in different parts of the country, but we have to learn lessons from them and apply those lessons in an evolving way to existing structures; we cannot just dig our heels in and say that what was good in 1999 is good for ever. We have to be able to improve things; we understood that. On the question of subsection (2), I had a strong sense, listening to the noble Lord, that we were actually in violent agreement, but I am going to speak to him afterwards to discover if there is a difference between us and what can be done to reconcile our understanding of the boundary issue.
I was very grateful for the support of the noble Baroness, Lady Bennett of Manor Castle. I give some credit to the Green Party here as an example of what can be achieved by a more democratic scrutiny of the mayor’s budget. Only a few weeks ago, in consideration of the mayor’s budget the Green Party put forward in the assembly a costed amendment that would have required the mayor to introduce lavatories at up to 70 London stations. It got a majority in the London assembly; it was supported by the Conservatives and the Liberal Democrats; of course, it fell. Having a majority is not enough in this sort of democracy. There is something very strange about that; however, I am grateful to the noble Baroness for her support.
The noble Baroness, Lady Fox of Buckley, was right to point out that the weakness of process and the rushing of air quality measures is provoking a backlash and cynicism among the voters. She also expressed very well the genuine and real suffering of those who face the prospect of the current proposed ULEZ scheme in London. I have to be honest: what I would expect if this amendment were passed is not that boroughs would actually block a mayoral scheme to introduce a ULEZ; they would moderate it, because they too are interested in better air quality, and so are local people. They would have their say, so it would be introduced in a slower and more manageable way, with more local consensus and better support for those who are in need of making what can be a very expensive transition.
The noble Baroness, Lady Pinnock, drew on a very long experience of local government again to put her finger on the question of the democratic deficit. The noble Baroness, Lady Hayman of Ullock, made it abundantly clear that the Labour Party stands four-square behind the Labour mayor’s proposal to impose a ULEZ on outer London; there was not one word of criticism.
She mentioned the estimate of 4,000 premature deaths in London. I do not dispute that figure, but it is difficult to know what it means: is a premature death 10 years before you would have died or a week before? These are difficult figures to interpret, but that figure I regard as reliable and I am not disputing it in any way. However, I want to point out is that when I was deputy chairman of Transport for London—a post that came to an end in 2016—and on the board, the figure was also 4,000. The measures are introduced—the local traffic neighbourhoods, the ULEZes—but the estimated figure never changes. So is it really doing any good?
Baroness Pinnock (LD)
My Lords, I will comment briefly on the three amendments in this group, starting with Amendment 511 in the name of the noble Baroness, Lady Taylor of Stevenage, about capital finance controls in local government. All I would say is that every local authority is required to have an external audit by a professional audit company to undergo a thorough inspection of its finances. It seems to me that the easiest way round this issue is to extend the requirement of the external audit to include a detailed investigation of any capital financing arrangements. That would reduce or eliminate all the additional requirements in the Bill and put the requirement on the external audit company to do a thorough audit of the council’s finances. If problems are exposed, the issues can then be resolved. This would mean that other local authorities which behave prudently are not caught up in the fairly strict regime that is being proposed.
Turning briefly to the amendments in the name of the noble Lord, Lord Northbrook, I totally support his Amendment 177 on improving standards of consultation for public bodies, particularly local authorities. There ought to be—I am sure there is—a standard for consultations that every public body, particularly local authorities, ought to adhere to.
On business improvement districts, I say that it is shocking to me that they could be established without full consultation and understanding by local residents. I would say, just as a point of history really, that our local councils used to have a big voice from local business. Businesses used to want to be elected to serve on their local council, where their voices could be heard and they could influence decisions that were made. Sadly, that tradition has disappeared, and there are fewer and fewer businesspeople who seek election to local authorities. This has led to the use of another way of trying to engage businesses in improving small areas such as this by giving them powers through the business improvement districts. So, yet again, these districts bypass local democracy, which is why I support the proposals in Amendment 178.
Baroness Scott of Bybrook (Con)
My Lords, I thank my noble friend Lord Northbrook for moving Amendment 177. I cannot respond on specific local authorities, as he may realise, but I think that noble Lords have had a good discussion about said local authorities.
Statutory frameworks and clear rules for consultation already exist in some service areas, such as planning, and provide guidance on the required length and scope of consultation. There is a statutory publicity code, which is clear that all local authority communications must be objective and even-handed. Councils can carry out non-statutory consultations to allow residents to shape local decisions and plans. Greater involvement for local people can only be a good thing, and local authorities should be free to adapt their approach based on local need and requirements for these non-statutory consultations. A requirement for all consultations to be carried out by third parties would impose additional costs on local authorities, which might encourage less consultation and engagement, rather than more. I hope that, in the light of this explanation, my noble friend will agree to withdraw his amendment and not press his other amendments in this group.
Amendment 178 concerns business improvement districts—or BIDs, as they are often called. It is best practice for a BID to promote its actions so that levy payers and the community can see what is being achieved. Many BIDs keep an up-to-date website and engage regularly via social media to discuss their work. BIDs are intended to be business-led, business-funded organisations. It is right that the businesses that will be required to fund the BID make the decisions on whether there should be consultations.
My noble friend Lord Northbrook asked about local authorities on BID boards. There are local authorities on BID boards in Birmingham, Bristol, London and Newcastle, as well as in other places.
Regarding the review of BID arrangements, as I have said, the legislation does not preclude residents and members of the community from being consulted on a BID proposal or represented on a BID board. Many authorities are on BID boards in their local areas. We are not looking to review business improvement districts; in fact, we are looking closely at work that is being done on community improvement districts, which include community groups, local people and businesses. That work is being run by Power to Change, and we are keeping a close eye on the pilots and following them with interest.
Amendment 511, in the name of the noble Baroness, Lady Taylor of Stevenage, would apply across the Bill and would require the Secretary of State to give local authorities advance notice where provisions creating new responsibilities for them are to be commenced. In any circumstances, those gaining new responsibilities should be aware of them in good time. However, we do not consider that this amendment is needed. As I hope has been clear from our responses earlier in the debate, the Government entirely agree on the importance of collaboration with local authorities for our reforms to be successful. We are already working with local authorities on many of our reforms and will continue to do so. I can therefore confirm that the Government have no intention of introducing responsibilities for local authorities without the appropriate preparation, including supporting them both to understand those responsibilities and to manage any transition. In many cases, this work will include further consultation with local authorities and others to shape regulations and inform supporting guidance.
The noble Baroness, Lady Hayman, asked a couple of questions. I will look at those and give her a written answer. I hope that noble Lords will withdraw or not press their amendments.
Baroness Bennett of Manor Castle (GP)
My Lords, with apologies, and being aware of the hour, I will be brief. I oppose in the strongest terms the amendment moved by the noble Lord, Lord Naseby.
The City of London is the last rotten borough. The elections to the City of London can in no way be described as democratic. There is also the City of London cache, a massive fund amassed over many centuries and explicitly excluded from freedom of information. The last figure that I have, from 2012, is of a £100 million per year income.
The rights of the City of London go back to William the Conqueror, who said that he would maintain all the rights and privileges that the citizens had hitherto enjoyed. It is about time that we finally modernised and got past that. In 1894, it was recommended by a royal commission that the City of London Corporation be abolished. I put on the record my desire to work with any noble Lord who wishes finally to reach that obvious conclusion.
Earl Howe (Con)
My Lords, as my noble friend has explained, Amendment 178A seeks to remove voting restrictions on either housing issues or related planning decisions applying uniquely to members of the common council of the City of London who are also tenants of the City of London Corporation. Sections 618(3) and (4) of the Housing Act 1985 mean that, while an individual can be a councillor of the City of London if they are a housing tenant of the corporation, they cannot apply for a dispensation to vote on housing or related planning decisions. Voting in breach of Section 618 is a criminal offence. This is not dissimilar to the regime that applies under the Localism Act 2011 which also creates a criminal offence where a member fails, without reasonable excuse, to comply with the requirements to declare their disposable pecuniary interests, and takes part in council meetings.
Councillors in any authority elsewhere in England, operating under the disposable pecuniary interest regime in the Localism Act 2011, can apply for a dispensation to vote on matters where they have a declared interest—but there is no such discretion for the City of London to grant a dispensation where Section 618 applies. In short, this means that City of London councillors are being treated differently from all other councillors in England. I am aware that the City of London has raised the issue on previous occasions. I am grateful to my noble friend for his amendment. Between now and Report, I undertake to give the matter proper consideration and would be happy to arrange a discussion with my noble friend if he would find this helpful.
Lord Naseby (Con)
My Lords, I am extremely grateful to my noble friend on the Front Bench. I willingly accept his kind offer of further discussions. I beg leave to withdraw my amendment.