Localism Bill

Baroness Eaton Excerpts

Tuesday 7th June 2011 Lords Chamber

[Baroness Eaton]

My Lords, first, I declare an interest as chairman of the Local Government Association. That is a great honour which I will hold for only a few more weeks. However, after that time, I hope to continue to contribute on behalf of local government in this place. Having the pleasure of speaking after the right reverend Prelate the Bishop of Norwich and other noble Lords, I am reminded of the wealth of experience and knowledge in this House that continues to benefit local government enormously.

As a councillor, I have represented the ward of Bingley Rural since 1986 and served as leader of a large metropolitan authority, Bradford, from 2000 to 2006. I have seen first-hand how local government makes a positive difference to the lives of local people, whether through involving communities closely in local planning and development or responding to local demand for new services, new facilities and new ideas. Councils and councillors really are at the heart of their neighbourhoods, but equally I have experienced huge frustration when, as a councillor, I have been told, “You don't have the power to do that” or “You can't stray outside Whitehall guidelines”. This gave the impression that local government was nothing more than the delivery agent for central government policy. This did a disservice to the excellent, innovative thinking from councillors and officers and led to a relationship in which councils felt compelled to wait for central government guidance on all sorts of issues in case they got a ticking off from Whitehall for being too keen.

That is why I, and so many others in local government, have welcomed the Government's localism drive. In October last year the Secretary of State said:

“The years of government interference and micromanagement are over. Instead, we're starting an era of genuine local leadership ... part of my campaign to replace the command and control approach to local government with genuine localism”.

This was cause enough for one of those street parties that the Government have been so keen on in recent months. There have been many positive moves in the past year that demonstrate a real commitment to localising and devolving power. We have seen the end of ring-fencing and the scrapping of the comprehensive area agreement, a barrier-busting exercise to scrap rules that block local government from doing its job. This is important work and it has been welcomed across local government. Now, in the Localism Bill, the Government have set out their radical vision for how local people will be much more involved in the decisions that affect their neighbourhoods.

The Bill is full of good ideas. Local government has particularly welcomed the general power of competence, something which we have requested for many years. The well-being power, which the general power will replace, was found to be wanting and left councils unwilling to use it for fear of their good work being overturned by the courts. A much stronger, more robust power of first resort has long been needed, and I am glad to see this in the Bill. The reform of the discredited and overcomplicated housing finance system is also very welcome, and I hope that the Government will look at expanding this reform to give councils the freedom they need to invest in social housing.

The Local Government Association has applauded the Government's intentions, but also expressed concern that in some places the Bill continues to use the legislative tools of times gone by, tools that have now been discredited. What we do not want to see—I am sure that my noble friend the Minister will agree—is an overly bureaucratic approach to localism that brings with it reams of Whitehall prescription and guidance. This approach can only block creativity and innovation.

Councils do not need more guidance to follow. In fact, this is the very mindset that we need to get away from. What works well in central Manchester will not be suitable for rural Cumbria, and centralised prescription takes no account of this. I do not believe that any council requires detailed rules on how to hold a referendum or how to keep a list of community assets. I am sure that this House will look closely at all parts of the Bill that give Whitehall powers to issue guidance and determine whether these are necessary or appropriate in the post-bureaucratic age we now live in.

It is also important that the Localism Bill does not allow for central government to force its will on to local people. This is antithetical to everything that the Government are trying to achieve and I do not believe that it was ever Ministers' intention. I am concerned that the policy on mayors, which will allow central government to require an area to have a “shadow mayor” and then hold a confirmatory referendum, is the wrong path to take. The change should come only after local people have decided that it is desirable, not before. I also do not think that elected mayors should be required to merge with chief executives. Their roles are resolutely separate, and the political impartiality of the chief executive is an important and long-standing precedent.

I also look forward to detailed discussion of the provisions on referenda. There are five different types of referenda, as the noble Lord, Lord Beecham, mentioned, that are legislated for in the Bill. Each comes with guidance and rules to follow. We will see local referenda on council taxes if a council suggests a rise above the maximum rate; referenda on any local matter, subject to determination by the Secretary of State as to what constitutes a local matter; and confirmatory referenda for shadow mayors and neighbourhood plans. I half expect to see a referendum on holding a referendum.

It is important that we do not sideline local democracy in the push for local action and that we remember that councillors are democratically elected to take decisions on behalf of the people they serve. It would not be right for a referendum to be held simply to please Whitehall when there was no local demand for it or when it negated an elected council's mandate. This would be expensive, damaging and wasteful, at a time when we in local government are doing everything we can to curb waste.

Councils are also very worried about the EU fine clauses that we have already heard about. The Local Government Association has argued that these are unfair and unconstitutional and noted that they give unprecedented powers to Ministers to fine councils without scrutiny by Parliament or by the courts. Certainly there is concern that this policy, if unamended, could lead to long, expensive court proceedings as one part of government seeks to pass blame to another. This is not a situation that any of us would like to see, and we should do all we can to avoid it. Councils have committed to working closely with government to ensure that we are not fined in the first place. I hope that the Minister will reconsider this part of the Bill in Committee.

I stress in conclusion that I entirely support the intentions of the Bill. Local government has spent too long ticking boxes and kow-towing to the demands of central government, and it is very clear that this must come to an end. We must then ensure that the Bill achieves its lofty aims. I look forward to continuing these enlightening discussions in Committee.