Combined Authorities (Borrowing) Regulations 2018

Baroness Pinnock Excerpts
Tuesday 1st May 2018

(6 years ago)

Lords Chamber
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Lord Jones Portrait Lord Jones (Lab)
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My Lords, I thank the Minister for his exposition. He knows far more than I could ever know about these matters, even though long ago I served in three Administrations. Can he look at the helpful Explanatory Memorandum, at paragraph 3.3:

“The instrument does not give rise to minor or consequential effects outside England”?


I cannot cavil at that—surely it is exact. However, the Minister will know, because of his distinguished service in the National Assembly for Wales, that there are sub-regional economies that cross borders. I refer to my entry in the register of interests, and I instance the Mersey Dee Alliance in north-east Wales, Wirral, Cheshire and Ellesmere Port. It is a unique set-up, which seeks to advance the only cross-border economy in Britain. It is a successful economy, and those local authorities in north-east Wales and greater Chester want to advance matters.

I have a question for the Minister, who was a leader in the National Assembly for Wales over many years. Can he explain—if he can, after my tangential reference —why these measures are not appearing in Wales? Is he able to mention one equivalent in Wales of, say, the Mayor of Liverpool or the Mayor of Manchester?

Baroness Pinnock Portrait Baroness Pinnock (LD)
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My Lords, I draw Members’ attention to my interests in the register as a councillor in the borough of Kirklees in West Yorkshire and as a vice-president of the Local Government Association.

The regulation is a natural extension of the powers of the mayoral combined authorities, and in that light it is to be welcomed. The functions that will benefit from investment where the authorities choose to use the additional borrowing powers are significant and of strategic importance to the development of those combined authority areas.

I say all that because I am not criticising the fundamental issue of the borrowing powers. However, I am concerned that additional borrowing by the mayoral combined authorities will result in additional costs being passed to the constituent local authority. So will the prudential borrowing code of the constituent authorities be affected by the additional borrowing permitted under these regulations?

The direct accountability between the spending body, which is the combined authority, and the tax-raising bodies, which are the constituent local authorities, will be fairly obtuse. If these powers are extended in this way, how will local council tax payers and businesses have a clear and transparent explanation of the use of the revenues of local authorities by the combined authorities if, for instance, there is no direct benefit for that particular part of the combined authority area?

The Minister mentioned Sheffield City Region, which will be in the fortunate or unfortunate position on Friday morning of having elected a mayor who will have no powers and no resources because that agreement has yet to come to Parliament and before your Lordships’ House. It will be an interesting conundrum for the Minister and his department as to what the newly elected mayor of the Sheffield City Region—he or she—will do.

I have a final comment for the Minister. The extension of powers to the mayoral combined authorities in this way is positive, with the addendums that I have already referenced, but it begs the question as to the continuing divergence of the powers of local authorities that do not have these additional powers because they do not have combined authorities and metro mayors. That is beginning to grow. The differences are beginning to be obvious and there will be an issue that will have to be addressed by the Government in one form or another. Has the Minister any thoughts to share on that issue?

Lord Kennedy of Southwark Portrait Lord Kennedy of Southwark (Lab Co-op)
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My Lords, I have no issue with the regulations before the House this afternoon and I draw the attention of the House to my relevant interests as a councillor and as a vice-president of the Local Government Association.

As we have heard, these regulations in effect implement agreements between the Government and the combined authorities referred to in this order to increase their borrowing powers for various functions as listed in the Explanatory Notes. The lists of additional borrowing approvals are different, as each deal is bespoke. I know that the Government like this bespoke deal arrangement, but I am of the opinion that the jury is still out on that way of working, as one person’s bespoke deal is another person’s confused muddle, with no one knowing or being clear why one authority has certain powers and another does not.

I also noted in the consultation, as referenced in the Explanatory Notes in paragraphs 8.1 to 8.26, that there are still very small numbers of people coming forward to give their views on these consultations. It might be that the numbers compare favourably with other consultations that the department has undertaken, but, if we are to give proper weight to the views of local people—and these areas have millions of people living in them—some of the numbers are derisory. We need to look at other ways of consulting people to get their views on the proposals coming forward. Having said that, I am happy to approve the regulations tonight.

Northamptonshire County Council

Baroness Pinnock Excerpts
Tuesday 27th March 2018

(6 years, 1 month ago)

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Baroness Pinnock Portrait Baroness Pinnock (LD)
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My Lords, I draw Members’ attention to my registered interests as a vice-president of the Local Government Association and a councillor in the borough of Kirklees in West Yorkshire.

I thank the Minister for repeating the Statement. I share his comments that the failures in the governance of Northamptonshire in no way reflect on the many staff who clearly continue to provide services to the public to the best of their ability. Nor do they reflect on the majority of councillors, who, according to the evidence in the best value inspection report, were denied information and were thus not able to undertake their responsibilities as might have been expected.

As a consequence of the inspection, the Government have decided that commissioners should be appointed to take direct control of the council's financial management. This will undoubtedly result in the commissioners proposing that some of the very difficult cuts to services that many other councils have already made will now be made without proper democratic involvement. That is a terrible indictment of the senior officers and senior members of the council who failed to grasp that, like it or not, cuts in income of the scale experienced by local government inevitably lead to significant cuts in services.

Northamptonshire County Council’s response to cuts in funding was to adopt a full outsourcing and commissioning model. For all the reasons expounded in the inspection report—it makes tragic reading—this failed abysmally. The residents of Northamptonshire have been ill served by some of the senior directors of the council, but it is the residents who will suffer the consequences of the failure to get a grip on constantly reducing budgets and to deal with difficult decisions in a timely manner.

That leads me to comment on the financial pressures that local government is facing. As has been said many times in this House and the other place, local government budgets have been reduced by about 40% across the board, and will have decreased by 50%—by half, in other words—by 2020, in two years’ time. This is at the same time as demand for services for vulnerable older people and vulnerable children is increasing at a significant rate. The Local Government Association estimates a shortfall of billions of pounds by 2020 for local government to deliver the statutory services that it is required to.

However, I want to point out that failure to deal with challenging financial budgets is not confined to local government. Carillion is a good example of what happens in the private sector when budgetary situations are not grasped. Many councils are just about managing, and it seems that some will just about manage for only another 18 months or so. There are statutory services to be provided, and for some this will soon not be possible. This brings me to some questions for the Minister. Does his department really appreciate the difficult financial situation that many councils face? For instance, is there an analysis in his department of those councils that may be on the brink of being unable to fulfil statutory functions? I assume that there is such an analysis; maybe he will be able to tell us what planning has been done to meet that eventuality. I ask this so that other councils are not allowed to fall into the same difficulties that Northamptonshire has done, though for very different reasons.

In the case of Northamptonshire, the Government determined that there would be a reorganisation of the county council and district council model into a unitary model. I hope whichever model is chosen succeeds, because residents in that county deserve it to succeed. However, I doubt that will sort out the problem; as the noble Lord, Lord Kennedy, has said, if the financial situation is not resolved, simply moving geographical pieces for governance around the county will not solve it. Perhaps the Government will be able to spell out in the fair funding review which services they expect local authorities to deliver and which are not to be a priority. Until that is clarified, councils will continue to find their responsibilities and funding availability stretched beyond their ability to fulfil their duties.

Lord Bourne of Aberystwyth Portrait Lord Bourne of Aberystwyth
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My Lords, I thank the noble Lord, Lord Kennedy, and the noble Baroness, Lady Pinnock, for their contributions. I will try to deal with the issues that they raise. Both of them used the word “tragic” and I absolutely agree that this is a tragic situation that has arisen in Northamptonshire. I remind them both, particularly the noble Baroness, that it is clear from the Caller report and other investigations that this is not a failure because of finance; it is a failure because of governance. It is clear in the report that that is the case.

In response to questions from the noble Lord, I say that the timetable for the district councils and county councils to respond in relation to the appointment of the commissioner is 12 April. It will then be for the Secretary of State to consider any representations or points made. The Secretary of State would anticipate responding by the end of April and then, if appropriate, appointing commissioners to take on the role, which is clearly the direction that Max Caller and Julie Parker, in their excellent report, would anticipate.

On the timescale for the restructuring, I remind both the noble Lord and the noble Baroness that Max Caller says that restructuring is necessary. It is a recommendation of the report. This is not the Government’s view: it is a recommendation to the Government. We ask the relevant seven district councils and the county council to respond by the end of July. We are open-minded on the different options. It is important that we look at what the councils say, bearing in mind the considerations that apply to any restructuring, as my right honourable friend set out: the proposals should,

“improve local government; be based on a credible geography; and command a good deal of local support”.

My right honourable friend went on to say that the councils should state how they,

“have consulted with their communities”.

That is all absolutely right.

I echo what the noble Baroness said about the people working for Northamptonshire, who have clearly worked incredibly hard to deliver services and continue to do so, and what she said about many councillors finding themselves excluded from decision-making, questioning decisions or having the ability to critique, which is not how the local government service should operate and not how the vast majority of local government behaves.

The noble Baroness referred to financial pressures. Quite separately from this, we recognise that there are challenges, but I am keen to keep impressing the basic principle that this is not a failure because of finance. There is no unique feature of Northamptonshire—that it has been discriminated against or has not had the necessary finance. This is a failure of governance, as the Caller report readily recognises. In saying that, I acknowledge that we are looking at fair funding by 2021. That is an important principle and we will be considering the fair funding formula, but that is separate from this issue. Otherwise, I accept the points made by the noble Lord and the noble Baroness.

Non-Domestic Rating (Rates Retention and Levy and Safety Net) (Amendment) Regulations 2018

Baroness Pinnock Excerpts
Tuesday 27th March 2018

(6 years, 1 month ago)

Grand Committee
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Lord Bourne of Aberystwyth Portrait The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government and Wales Office (Lord Bourne of Aberystwyth) (Con)
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My Lords, these regulations, which are highly technical, make changes to the regulatory framework governing the day-to-day operation of the business rates retention scheme. The amendments in these regulations are necessary to ensure that the regulatory framework properly reflects the impact of the 2017 business rates revaluation, our decision to create new 100% business rates pilots in London and 10 other areas of the country, and changes to the compensation arrangements in enterprise zones.

Before saying something about each of the changes, I remind the Committee that the rates retention scheme was introduced with effect from 1 April 2013. For the first time since 1990, it allows local authorities to keep a percentage of the business rates they collect from local ratepayers and gives them a direct financial interest in maintaining and extending their business rates’ bases.

When the scheme was first set up, local government was able to keep 50% of locally raised business rates, subject only to a redistribution mechanism that requires authorities which have more business rates than their relative needs to pay over some of that income as a so-called tariff, while authorities that have a lower business rates income than their relative needs receive a top-up payment.

In 2017-18, we allowed local authorities in five newly created 100% pilot areas to keep all the local business rates they raised. Additionally, we increased the GLA’s share of business rates from 20% to 37% and, in return, it took on direct responsibility for financing Transport for London’s investment grant from its additional share.

In December last year, we announced that we would create a further 11 100% pilot areas, including in London. In 2018-19, therefore, local authorities in Berkshire, Cornwall, Derbyshire, Devon, Gloucestershire, Greater Manchester, Kent, Leeds City, Lincolnshire, Liverpool, London, Solent, Suffolk, Surrey, West of England and the West Midlands will all keep 100% of the business rates they raise locally. The regulations before the Committee this afternoon will give administrative effect to the 11 new 100% pilots that will come into force on 1 April 2018. They will ensure that the sums paid and received by the pilot authorities over the course of the year reflect the new pilot arrangements.

As well as amending the administrative arrangements of the rates retention scheme to reflect the new 100% pilots, the regulations also make changes to tariffs and top-ups following the revaluation. As I said earlier, tariffs and top-ups are the way in which we redistribute local tax income between richer and poorer authorities under the rates retention scheme. They were originally set in 2013-14 based on the difference between the business rates that authorities were expected to collect in that year and their relative need, as established in that year’s local government finance settlement. Since then, they have been uprated only by inflation.

However, as a result of the business rates revaluation that took effect on 1 April 2017, the amount of business rates that authorities will actually collect in 2017-18 will be very different from what they collected in 2016-17. If, therefore, we were simply to uprate the existing tariffs and top-ups by inflation, as we have done in the past, authorities could find their income from business rates substantially changed, for reasons quite unconnected to their efforts to secure growth. Therefore, when we set the scheme up in 2013, we announced that we would adjust tariffs and top-ups to strip out the impact of revaluations.

In the 2017-18 settlement, we announced adjusted tariffs and top-ups for all authorities, but, as we said at the time, we would revise them in the 2018-19 settlement to reflect updated data. These revisions were duly made in February as part of the local government finance settlement for 2018-19. However, the revised values are also used in the calculation of levy and safety net payments under the rates retention scheme. The changes made by the regulations before the Committee this afternoon ensure that the revised values for tariffs and top-ups in 2017-18 and 2018-19 will be used in levy and safety net calculations. Without these regulations, the calculation of the levy and safety net payments due to or from authorities would be wrong. Authorities that needed a safety net payment would fail to get one, and other authorities might be forced to pay a levy that they could ill afford.

Finally, the regulations make changes to the financing of enterprise zones. Under the rates retention scheme, certain areas have been designated as enterprise zones. In those zones, authorities are entitled to keep all of the growth in business rates income. The growth is used by local enterprise partnerships, or LEPs, to help regenerate the zones. Enterprise zones were first set up in 2013, and there are now more than 200 separate zones in nearly 100 local authorities. As well as keeping all the growth in business rates in an enterprise zone, authorities are also able to give business rates relief to new businesses relocating there, thus further stimulating economic development. Where authorities use their powers to award relief, they can be compensated by central government for the reduction in their income. Compensation is given to local authorities by allowing them to deduct the cost of the relief from the 50% share of business rates that they otherwise pay to central government under the rates retention scheme. Of course, with the advent of 100% business rates pilots, any compensation owed to 100% pilot authorities will be paid via a Section 31 grant because there is no longer a central share from which it can be deducted.

When the first enterprise zones were set up in 2013, authorities were entitled to receive compensation for the relief they gave for a period of five years until 31 March 2018. That period, set out in the rates retention regulations, has not changed since, despite the fact that we have set up new enterprise zones in 2014, 2015, 2016 and 2017. In order to ensure that every enterprise zone is treated on an equal footing, regardless of the date that it came into being, the regulations ensure that authorities can be compensated for up to five years after the enterprise zone came into existence, regardless of whether that was 2013, 2017 or any year in between.

To sum up, the regulations make technical changes to the administration of the business rates retention system to reflect the impact of the revaluation. They allow the new 100% rates retention pilots to operate from 1 April 2018, and they put all enterprise zones on a level playing field. Without the changes, authorities would be unable to receive the income from the business rates retention scheme to which they are entitled. I commend these regulations to the Committee.

Baroness Pinnock Portrait Baroness Pinnock (LD)
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I register my interest as a councillor in the borough of Kirklees, which is part of the Leeds combined authority, rather than Leeds City, for the 100% business rates retention scheme. The people in Kirklees would not be happy to think they were part of Leeds City, so we had better make that clear.

Baroness Pinnock Portrait Baroness Pinnock
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Not ever, I would say. As the Minister said, these are quite complex technical amendments, which, in the circumstances, I particularly welcome. Obviously, as he has indicated, they are to enable the so-called 100% business rates retention pilot authorities to come into existence next week.

Greater Manchester Combined Authority (Amendment) Order 2018

Baroness Pinnock Excerpts
Tuesday 20th March 2018

(6 years, 2 months ago)

Grand Committee
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Lord Bourne of Aberystwyth Portrait The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government and Wales Office (Lord Bourne of Aberystwyth) (Con)
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My Lords, the draft order that we are considering was laid before the House on Monday 5 February 2018. If approved and made today, it will support Greater Manchester’s programme of public sector reform, promoting growth and productivity and continuing the implementation of the devolution deals.

There have been five devolution deals with Greater Manchester, including most recently at the Autumn Budget 2017. Noble Lords will be aware that, since passing the Cities and Local Government Devolution Act 2016, there have been seven further orders in relation to the Greater Manchester Combined Authority. The orders provided for the introduction of a mayor, and give the mayor the role and functions of the police and crime commissioner. They have also given the combined authority powers on housing, planning, transport, public health, fire and rescue, and education and skills. Some of those powers are to be undertaken by the mayor individually and others by the members of the combined authority collectively.

I turn to today’s draft order. It makes provisions about the housing investment fund, allowances for committee and sub-committee members, and setting the police and crime commissioner component of the mayoral precept.

A housing investment fund was agreed as part of the initial devolution deal with Greater Manchester in 2014. It is a loan of £300 million from the Government that has enabled the combined authority to lend over £420 million to local developers to help fund quicker housing delivery in the Greater Manchester area. It has committed funding to build more than 5,800 homes at 23 sites across Greater Manchester. This order will amend the constitution so that, in addition to a simple majority of combined authority members, the mayor must also be on the winning side of any votes relating to the housing investment fund for the decision to be carried.

The order also refines certain aspects of the combined authority’s remuneration powers. This will allow it to pay travel and subsistence allowances to all members of its committees and sub-committees, such as the fire committee, as well as to members of the combined authority. It also enables the independent remuneration panel to make recommendations on the remuneration of all members of committees and sub-committees and provides for the combined authority to pay an allowance to committee members who are not elected members of a council in Greater Manchester. The draft order also changes a date within the process for setting the police and crime commissioner component of the mayoral precept for the Greater Manchester mayor. This has been requested by the combined authority to ensure that the scrutiny process is complete before the precept must be issued.

There have been two consultations undertaken by the combined authority in relation to proposals contained in schemes that are relevant to this order. The first consultation ran for eight weeks from 21 March to 18 May 2016. The scheme included the proposal that the mayor should control the Greater Manchester housing investment fund, in addition to the combined authority taking on a range of housing powers. The second consultation ran for six weeks from 4 July to 15 August 2016. This scheme made a number of proposals relating to committees that have now been legislated for, which is relevant to this order, as it is for members of these committees and sub-committees that the combined authority would be able to pay travel and subsistence and also refer to an independent remuneration panel for a recommendation on allowances.

There was general support for the powers consulted on, but few directly commented on these technical issues. The amendment to the process for setting the PCC component was requested by the combined authority to ensure that the statutory timetables for both components of the precept are properly integrated. As statute requires, the combined authority provided to the Secretary of State summaries of the responses to each of the consultations. Before laying this draft order before Parliament, the Secretary of State considered the statutory requirements in the 2009 Act.

The Secretary of State considers that making these constitutional changes on the Greater Manchester Combined Authority would be likely to lead to an improvement in the exercise of the statutory functions in the area of the combined authority. The Secretary of State has also had regard to the impact on local government and communities and the need to secure effective and convenient local government, as he is required to do. Also as required by statute, the constituent councils and the combined authority have consented to the making of this order.

In conclusion, implementation of the five devolution agreements made with Greater Manchester continues to progress at an impressive pace. We will continue to work and devolve more powers to Greater Manchester, contributing to greater prosperity and a more balanced economy, and economic success across Greater Manchester, the northern powerhouse and the country. I commend this draft order to the House.

Baroness Pinnock Portrait Baroness Pinnock (LD)
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My Lords, I remind the Committee of my registered interests as a councillor on Kirklees council—the proper side of the Pennines—and a vice-president of the Local Government Association. I apologise for my deepening voice and croakiness: I am sure I will last through the sitting.

The three amendments proposed in this statutory order all relate to governance. It is very important that any amendments retain public trust and confidence in the system and create an open and transparent process of decision-making so that residents feel that their voices are not only heard but listened to, acknowledged and—crucially—seen to significantly influence outcomes.

That is my starting point for assessing the changes proposed. The proposal regarding amending the process for agreeing the police precept is eminently sensible. I have no problem with what is written in the statutory instrument. The second change is the one proposing allowances for those involved in the combined authority. As far as I am concerned, that is a matter for local decision-making and the amendment enables a decision to be made. However, I always have an addendum to that: anybody who receives funding from the council tax payer will need to be answerable to them for any allowances they receive. I am not always sure that non-elected members appreciate the importance of that relationship.

I have a bit more to say about the third proposal, which contains what I regard—that is, read and interpreted—as a mayoral veto. The proposal enables any decision relating to the housing investment fund to be made by a simple majority vote of the combined authority—in other words, the leaders of the 10 councils in the Greater Manchester area—provided that the Mayor is on the winning side. So nine of the council leaders could decide that the proposal was not good and the Mayor could stop them. That seems to require further thought. The explanatory memorandum attached to the statutory instrument suggests that this implements a commitment made in the devolution agreement and links to that element of the agreement with the combined authority in Manchester. I wonder whether the Minister can provide us with the text and source of that commitment. I have read through every single word of that and nowhere does it say anything about enabling a mayoral veto. It says, under planning and housing, that the Mayor will receive strategic planning powers. This will give the Mayor the power to create a statutory spatial framework for the city region, which will need to be approved by a unanimous vote of the Mayor’s cabinet. This will be in line with the strategy currently being developed by the Greater Manchester Combined Authority, or GMCA. Of course, there is a catch-all phrase in that list about any further powers we can give; perhaps it comes under that.

However, I cannot think that the members of the combined authority had envisaged, when this was agreed and consulted on, that democracy would be undermined in this way. Our democracy is precious and has developed on the basis of collective decision-making. It has served us well. People respect it, understand it and will not be content with its degradation. I hope that the Government will rethink this element of the statutory instrument.

Lord Smith of Leigh Portrait Lord Smith of Leigh (Lab)
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My Lords, I declare my interest as a member of the Greater Manchester Combined Authority and leader of Wigan Council. I must also declare that, in 2014, I was part of the team discussing the devolution deal with the then Chancellor of the Exchequer, George Osborne, which ended up being the deal we got.

I remember that, as part of the deal we signed up to, we were not exactly enamoured of having an elected Mayor at the time but we realised that we would get significantly increased powers if we agreed to it. One of the powers, in terms of the Housing Investment Fund, was a substantial amount of money. The Minister described how it has been used—largely, at the moment, to fund schemes that return into the Housing Investment Fund so that we can spread it out even further.

I do not think we discussed at the time whether a simple majority could depend on one person—actually, it could be 10:1, never mind 9:1. I assure noble Lords that within the unofficial governance of Greater Manchester we would ensure that things were decided in a proper manner. We would not allow any individual to hold up what would be a significant investment in Greater Manchester.

Integrated Communities

Baroness Pinnock Excerpts
Thursday 15th March 2018

(6 years, 2 months ago)

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Lord Kennedy of Southwark Portrait Lord Kennedy of Southwark (Lab Co-op)
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My Lords, I thank the noble Lord, Lord Bourne of Aberystwyth, for repeating the Statement delivered yesterday in the other place by his right honourable friend the Secretary of State. I draw the attention of the House to my relevant interests as a councillor and a vice-president of the Local Government Association.

I endorse the Minister’s comments on the disgusting “punish a Muslim” letters. I hope that the perpetrators of this evil hate crime are caught and punished. Such an act has no place in our society. The success of our communities has been their diversity. I am the son of immigrants who came here in the 1950s from Ireland to make a life for themselves. Immigrants from all over the world have contributed to our communities and make our country a much better place.

I am pleased to hear that the Government are committing money to the English for Speakers of Other Languages programme, though perhaps the Minister can comment on the figures from the House of Commons Library, which show that between 2009-10 and 2015-16, funding for such programmes fell from £220 million to £90 million. So although the new funding mentioned in the Statement is welcome, it will not replace the money that the Government previously took away.

In her report, Dame Louise Casey stated:

“The problem has not been a lack of knowledge but a failure of collective, consistent and persistent will to do something about it or give it the priority it deserves at both a national and local level”.


That is why it is disappointing that the Government have not announced a new policy but another consultation on a potential policy following a report they received in 2016. It is now March 2018.

On education, mixing with children from other backgrounds and religions throughout life is one of the best ways of preventing barriers being erected. I agree that children should not only be learning about British values, but living them as well. I very much hope that the Government’s Statement signals a new commitment; if so, I welcome what I have heard today, but they need to ensure rigorous assessment and evaluation of the pilots as other aspects of the Statement progress.

I have a few questions for the Minister, which I hope he can answer. If not, I am sure he will write to me and other Members of the House. Can he tell us what equality impact assessments on the funding have been made for the five pilot areas he outlined in the Statement? We heard about an aspiration to work with local authorities, which is very good. What role does the Minister believe they can play in this strategy? Perhaps he can outline that for the House. What discussions has he had with his ministerial colleagues in the Department for Education about the role of education and making sure that ethnic minorities can benefit here, particularly on issues such as childcare and so on, and how they can make sure that those minorities fully benefit from the programme?

I am also aware that the Minister’s right honourable friend the Communities Secretary wrote in an article in the Guardian that,

“there are too many communities that are still very segregated and therefore divided”.

I am conscious that he has been in post for two years now. Perhaps the Minister can outline what he thinks those divisions are and what has happened in the last two years to deal with some of those barriers.

As I said, I welcome the Statement and I hope that it goes the right way to solve the variety of problems here. I hope the noble Lord can answer those points, but if he cannot, I am sure he will come back to me in the normal way.

Baroness Pinnock Portrait Baroness Pinnock (LD)
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My Lords, I draw attention to my interests in the register as a councillor in West Yorkshire and a vice-president of the Local Government Association. I start by endorsing the condemnation of the abhorrent letters received by many people—among them, one of my friends.

There is much to be welcomed in this Statement on the integration strategy Green Paper. The Government are at last thinking about the issues and the remedies. Before I comment on some of the main headlines in the Statement, I will draw attention to the thinking at the heart of this policy proposal. The Statement defines integrated communities as ones where,

“people—whatever their background—live, work, learn and socialise together”.

That is a sweeping statement. Within the majority white community, this is patently not the case and never has been, which is why I question that broad assertion. Perhaps what the Green Paper needs to focus on is those elements of our common life in this country that enable each individual to play a full part rather than to attempt a forced integration, which seems by its very nature to frown on differences. I support the Statement when it says that,

“a diverse society does not mean a divided society”,

but the language used to describe the current position and the changes desired is very important, and something is lacking in some parts of the Statement and the Green Paper. Will the Minister reflect on that word “integration” and on whether “cohesive communities” may better describe the aim of the proposals?

The Government have listed five relevant areas for action if our diverse communities are to be more cohesive. Some of us in leadership roles in local government took action when funding was more available. Noble Lords may be aware that I was leader of Kirklees Council— just south of Bradford, which was mentioned in the Statement—which has had its share of difficult situations emanating from communities that were not in touch with each other. We tried a number of schemes, many of which showed successful outcomes. I hope the Government may seek to introduce some of them in the listed areas. They included: school twinning, where children met together to share activities such as art and sport; cookery classes for women from different ethnic backgrounds, where they could share recipes, which was very successful; a programme of sporting activities organised by a community group, with a community cup at the end of it, which was hugely popular and successful in bringing children and young people together, mainly to play football; and an interfaith programme, which was mainly focused on schools but also open to adults, and involved visits to mosques, gurdwaras and churches.

Of course, all these additional activities need funding, and as funding disappeared, so, sadly, did the activities. But a few remain. There is an annual cricket match between Christian church leaders and Muslim imams, and interfaith activity continues, led by a Church of England bishop and a Muslim leader. These activities did much to bring people together. Can the Minister say whether the Government are seeking to promote these sorts of activities and, crucially, whether funding will be provided at adequate levels?

I will draw attention to two areas in the Statement, the first of which is language. People who are unable to be fluent in English are at a disadvantage, and their lives are more isolated and restricted. The Government of course made the decision that support for the teaching of English as a second language was no longer needed, and slashed the funding. How schools manage to be effective in the classroom when the children are not able to speak, let alone read or write, English is a marvel to me. ESOL spending must be increased, and be sufficient to meet needs. Perhaps the Minister may be able to commit to that extent of new funding.

The other area I want to focus on is low skills—a critical factor both for white boys and young men and for those from minority ethnic backgrounds. In Bradford, this is the source of much of the inter-community distrust. FE colleges have a key role to play in enabling young people to acquire relevant skills so they can join in and have employment, which gives them some hope for their future.

There is much that must be done if the aim of the Green Paper is to be achieved. I welcome the integration and innovation fund, as long as it is adequate to meet the need. Unless it is, integrated communities will remain a distant prospect, with all the risks that that leaves behind.

Lord Bourne of Aberystwyth Portrait Lord Bourne of Aberystwyth
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My Lords, I thank the noble Lord, Lord Kennedy, and the noble Baroness, Lady Pinnock, for their contributions and questions, and I shall try to deal with the points they have raised. First, I thank them for their support in condemning the dreadful and abhorrent “punish a Muslim” letter that we have seen. There are, understandably, a lot of people who feel vulnerable and frightened, and I hope we can send out messages to all our faiths, and to people of no faith, to be protective of Muslims, particularly on 3 April. The signs are that many will, quite rightly, defy that dreadful threat and not stay indoors. We particularly need to give reassurance about how awful and gut-wrenching the vast majority of the people of this country find those letters.

I shall pick up some points made by the noble Lord and the noble Baroness and try to deal with them generically, so far as I can. First, I extend thanks on behalf of everybody for the work of Dame Louise Casey in this area. Of course, we have built on her work, and she has made a massive contribution to thinking on this subject.

English language provision is very important. I have seen that it has been transformational; I have seen and visited English language classes in the East End of London, in Whitechapel, and have seen the difference they are making, particularly for Bangladeshi women who have had their lives transformed. That does not just mean the possibility of getting a job, though it is partly that, but the ability to go out of the home and mix with other people. I totally accept the importance of this up and down the country. Of course, this is partly an issue of funding, but not totally. When I looked at the funding for Near Neighbours, I saw that some programmes were able to do far more than others. We will need to look into that, too.

The consultation has been mentioned, and it is important that we get communities to talk about these things and contribute to the consultation, which will range widely over many areas. For example, we are looking at education and issues relating to marriage. The consultation is open until 5 June.

The noble Lord, Lord Kennedy, raised particular points about education and what will happen in the five trailblazer areas. Obviously, although they have some similar challenges the areas are all very different. We will want to speak to and work constructively and intimately with those five authorities, but the work is not limited to those five: we want the work to go wider, to all local authorities, which will be contacted about the Government’s proposals and the consultation. Again, we would encourage people to participate in that consultation. I hope the noble Lord will forgive me if I write on any points that I have not covered.

The noble Baroness, Lady Pinnock, talked about forced integration but I have to say that I do not recognise that. Perhaps I may give an example of something which in no sense involves force but just provides opportunities for integration and mixing. When I visited Bradford, I met up with the Bangla Bantams from the Bangladeshi community. They now support the football team and are an intimate part of it. That had not been the case until the dreadful fire—and what an awful fire it was. However, because they lived close to the ground, people who were then without mobile phones—this was the pre-mobile age—went to their homes and said, “Can we use your phone?”, because it had been such a dreadful fire. Friendships and relationships were formed and now, a generation on, it is very natural for people from that community to be a part of the network that supports the football team. That is one example of something that happens, in a sense, by accident—an awful accident—but those are the sorts of opportunities that need to be fostered and encouraged.

The innovation fund to which the noble Baroness referred will very much be open to individual bids for the sorts of opportunities that she was talking about. Often when going round the country, we find that the things that bring people together are food, sport and music. She referred to a cricket match. In Chelmsford there is an annual cricket match between the local mosque and the cathedral, and again that has built up a relationship in the town between different people. These things are very important and need to be fostered. It is not just about that but those sorts of opportunities help to encourage integration.

I hope noble Lords will forgive me if I have missed any points. If I have, I will pick them up in a write-round letter to all those who participate in the Statement and I will ensure that a copy is placed in the Library.

National Planning Policy Framework

Baroness Pinnock Excerpts
Tuesday 6th March 2018

(6 years, 2 months ago)

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Lord Kennedy of Southwark Portrait Lord Kennedy of Southwark (Lab Co-op)
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My Lords, I thank the noble Lord, Lord Bourne, for repeating the Statement delivered in the other place yesterday. I draw the attention of the House to my relevant registered interests as a councillor in the London Borough of Lewisham and a vice-president of the Local Government Association. It is a disappointing Statement, not in all of what it proposes to do but in how timid the proposals are and with the wrong focus.

Since 2010 the number of rough sleepers in England has trebled to almost 5,000 last year. The number of households living in temporary accommodation has risen almost continuously since 2010. The latest figures had 79,000 households in temporary accommodation, including 121,000 children, as I have referred to in this House before. Wage-to-mortgage differentials are making owning your own home, as the Statement says, only a dream. The ratio of wages to affordable rents in many parts of England means that in reality these are unaffordable for most people. Some of the measures in the consultation may make a difference but, as with all the Government do in the Ministry of Housing, Communities and Local Government, it is too little, too slow and the actions never quite meet the rhetoric.

It is regrettable that, despite all of us agreeing that there is a housing crisis and that we need to build more homes, council housing and the contribution that additional council housing could make are not mentioned at all in the Statement. There is one reference to,

“in the social or private sector”,

in the concluding remarks. The solution to the housing crisis will not be found just within the planning process or with developers—affordable homes that in large parts of the country are unaffordable for most people, or increased permitted development rights, which further exclude the local community from the planning process and other measures. We need to allow local authorities to build council homes and housing associations to build more homes on social rents. It will make a real difference to the housing crisis; where people are on benefits it will help reduce the Government’s housing benefit bill; it will help take the heat out of the market; and it will contribute to delivering the improvements to housing that we all want to see in terms of the numbers and the quality of the homes built, with appropriate infrastructure.

Planning departments have taken a huge cut in recent years and the increase in fees that has been allowed is welcome but it is still not enough. Again, I have called many times for full cost recovery on fees. I have suggested that the Government should find one council to pilot full cost recovery but so far they have refused to do that. There are still more than 400,000 approved planning permissions where not even one brick has been laid. I agree very much with the comments of the Local Government Association chair, the noble Lord, Lord Porter of Spalding, who said:

“If we want more houses, we have to build them, not plan them”.


Can the Minister explain why his friend in the other place, the Secretary of State, returned money earmarked for affordable housing to the Treasury? We have a broken housing market, as the Government keep reminding us, so why is the department not making every effort to spend every single penny to build the homes we need? If one area cannot use the money why can it not be used elsewhere? Can the Minister tell the House what work the department has done to see where money could be spent quickly if it is returned from other areas?

Can the Minister give us some idea of the timescale once the consultation has finished? There are a number of consultations going on in the department at the moment—for example, on letting agents’ fees and electrical safety checks—which I have raised regularly. At some point will we get some real, concrete action? It would be helpful if the Minister could tell us.

With regard to achieving sustainable development, I warmly welcome the comments about protecting ancient woodland and veteran trees. That is very good. But can the Minister say a bit more about how the Government propose that we really do achieve sustainable development, particularly with those authorities that are under delivering on housing in their own areas?

The noble Baroness, Lady Cumberlege, is in her place. I recall our discussions about plan-making last year. Can the Minister comment on plan-making and permitted development—is there a conflict there? If we are increasing permitted development rights in local areas and a local plan has been agreed, is there a conflict? Perhaps the Minister could comment on that.

We all agree that we need to deliver high-quality homes. I am very conscious that Governments of all persuasions made some terrible mistakes in the 1960s and 1970s in the quality of the homes they built. I do not want to see us build homes that are not of good quality and in years to come our successors have to deal with another problem with the quality of housing we have in our communities.

It is not in the Statement but the consultation includes the viability of town centres. We need our communities to be sustainable in terms of infrastructure, and town centres are really important. Can the Minister say a little bit about that? It is not just the planning; issues such as business rates are also important.

Finally, the consultation also talks about sustainable transport. Transport needs to be built into communities as well. I am conscious that we have a number of new towns. Ebbsfleet is one; I have asked a number of questions about that recently. There is some more work to be done to make sure that these new towns succeed.

I will leave my comments there and look forward to the Minister’s response.

Baroness Pinnock Portrait Baroness Pinnock (LD)
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My Lords, I draw attention to my registered interests as a councillor in the local borough of Kirklees and as a vice-president of the Local Government Association. The consultation document that the Government have issued details new changes and collates existing measures into an amended NPPF. The details will obviously be the subject of detailed debate at a later date. Today, we have the headlines of the general thrust of government policy on the planning process and housebuilding.

Over the past few days, the media have been full of rhetoric and what I regard as the unedifying spectacle of the Government in full blame-game mode. The blame is on local planning authorities for failing to allocate sufficient land and be efficient in the planning process; the blame is on developers for failing to build allocated sites. But planning for housebuilding depends on three key players: government, the local planning authorities and developers. All need to work together if housebuilding is to achieve the targets rightly set by government. Resorting to a blame game does nothing but create a negative atmosphere.

The Government must consider and be transparent about their role in the planning process. When local authorities develop their strategic plans, it is with clear expectations of housing numbers and site allocations set by government. Once this plan is signed off by councils, it is then inspected for soundness by a government-appointed planning inspector who can, and often does, recommend changes to the plan—recommendations which are difficult to refuse. So despite the rhetoric, it is the Government who are setting the broad requirements and enabling the loss of green-belt land. Can I suggest to the Minister that some clarity of leadership in these matters would be more effective than exhortations and blame? Constructive leadership from government would be more effective in getting the minority of local authorities that have not succeeded in fulfilling government expectations to do so.

Moreover, despite their protestations, evidence shows that developers do land bank, waiting for prices and consumer confidence to rise. Developers are reluctant to build low-cost housing because profit margins are lower—thus not building all the house types in the numbers that are needed. None of this will change without government policy changes, so I welcome the proposal for an investigation into land banking, as long as it leads to actions that restrict it.

If this country is to provide an adequate supply of housing to meet individual needs, more fundamental changes are needed than are being proposed. Perhaps the Minister can respond to some of these issues. First, there is pressure on the south-east because the Government do not have an economic regional policy that draws investment away from the south-east. Developing one would be a significant aid to housing policy. Secondly, that word “affordable” should be abandoned in relation to housing. It is misleading because affordable is what it is not: it is just not as expensive. Thirdly, the National Planning Policy Framework should be amended to enable councils to specify in their strategic plans different housing types on each site allocation: for example—there is some reference to this in the consultation document—housing for older and disabled people. Councils must be encouraged to take responsibility for building homes for social rent. These changes are sadly missing from the consultation. Exhortations to use brownfield sites will fall on deaf ears if the Government fail to provide support for the remediation of sites which are severely contaminated—I speak from bitter experience in my own area.

Finally, perhaps the Minister will be able to explain the Government’s financial commitment to enabling development through providing funding for essential infrastructure. I am not referring to the infrastructure fund. Currently, government policy appears to be to pass on the infrastructure costs of the development that the Government want either to the developers via the community infrastructure levy and Section 106 funding or to local people through a new tax, the infrastructure tariff that I read is part of the proposals. Will the Government change their tune away from the destructive blame game to purposeful leadership so that we can get the housing that this country and its people need in the places that they need it in a sustainable way that does not take away precious green belt land?

Lord Bourne of Aberystwyth Portrait Lord Bourne of Aberystwyth
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My Lords, I shall respond to the contribution of the noble Lord, Lord Kennedy, and then turn to that of the noble Baroness, Lady Pinnock. The noble Lord made a very wide-ranging contribution that went well beyond the Statement. I will endeavour to pick up the points, but a lot of his contribution seemed to be on what was not in the Statement, rather than what was, but I shall try to deal with the issues he raised.

First, his mention of rough sleepers enables me to thank local authorities and charitable workers for their magnificent response during the period of very cold weather we have just had. I know that my honourable friend the Minister, Heather Wheeler, has already spent time doing just that, and it is right that we do that. Some lessons have been learned and in that process we have been getting details of people who are rough sleepers, which will help tackle that problem. Let us be clear that it is unacceptable, and the Government have set out clear policies. We now have a Minister who is focused on the issue.

The noble Lord then turned to earnings in relation to affordability. He and others have used that phrase so I will use it, and it does describe the situation. This issue is crucial to the Statement and was dealt with in it, but I have to tell the noble Lord that the steepest earnings to affordability rise was in the Labour years, when it doubled, and the lowest peacetime build-out rates were also in the Labour years. I accept that we need to move forward and look at the issues, which we are addressing. As far as I am concerned, this is not about a blame game, and I will come to that point shortly, if I may, in answering the noble Baroness. This is about building more houses and a mix of houses and stating, once again, that the neighbourhood planning process is very much the right one. We took the Bill in question through to statute recently, and there was a consensus, largely. We are all committed to this neighbourhood approach, and I pay tribute to my noble friend Lady Cumberlege, who was very much part of that process. We are still very much committed to it; it is central to what we are doing, but that does not mean that the Government step away and do not have a policy on housing.

The noble Lord asked when some of these consultations will be ending. There are not that many consultations out at the moment. Two are referred to here, one on the NPPF, which ends on 10 May. As the Statement says, we anticipate carrying that forward in the summer. The other one is on developer contributions. That also ends on 10 May, and we would not want to hang about when it reports. A consultation is out on build-out rates and land banking. It is not announced in this Statement as it is already in process. It is an independent review being carried forward by Sir Oliver Letwin. It will report this year, I am sure, but that is a matter for him. We will want to take it forward. The other review, which was widely welcomed, is on the house-buying process, but that is a somewhat different area.

The noble Lord referred to the policy on ancient woodland, and I pay tribute to the noble Baroness, Lady Young, who evocatively referred to,

“the cathedrals of the natural world”,—[Official Report, 17/1/17; col. 161.]

and knew the way to progress this area. I am very pleased that it is included. There is, no doubt, still work to be done, but it is important. This is the first time it has been mentioned in planning guidelines, and that is also true of housing for older people, and I pay tribute to the noble Baroness, Lady Greengross, and others who helped on that. Design is also a central feature of this. Those three issues were raised and developed in the House of Lords, and I am very pleased that we have been able to carry them forward.

The noble Lord asked about the viability of town centres. The Prime Minister talked about that very issue and its importance when she launched this policy yesterday. This is something we want to carry forward: releasing property above shops and looking at whether empty shops are viable as homes if they are not viable as shops. They are very often near stations or other transport hubs, so we need to look at that, which is tied in with the issue of the future of our town centres.

The noble Baroness, Lady Pinnock, said she did not want a blame game and then proceeded to blame the Government—presumably starting from 2015 rather than 2010, when of course the Liberal Democrats were part of the Government. It is not about the blame game; it is about carrying the policy forward and ensuring that everybody does what they can to help with this issue. There are many things we can do, as a Government, as developers and as local authorities. In particular, the noble Baroness did not want us to blame developers. I hope we are not doing that, but she then went on to talk about the scandal of land banking, which sounded to me as if she was prepared to blame them. We want to look at that, and we have it under review. There is a genuine issue—I feel it too—with people who are keeping land and not developing it as they should, but that is part of the ongoing review. That was not announced yesterday, but some time ago, and is being carried forward.

The noble Baroness referred to a lack of regional policy. The policy on housing numbers is very much tied to each separate housing authority—to the price of housing in that area. The areas with the steepest prices are required to take the most action, in very broad terms, so this is integral to what we are doing. She referred to the need for housing for older people, which, as I have said, is in the National Planning Policy Framework for the first time ever. We need to work on it. She referred to the importance of brownfield sites, which I quite agree with. If she wants to address the issue of remediation, which she mentioned, I am very happy to talk to her about it and to look at it, but of course, we require local authorities to come forward with registers of brownfield land and to have a policy of building on brownfield first, before they look at green-belt land. The noble Baroness also talked about how we are looking to transfer some responsibility for delivery on to developers through the community infrastructure levy and Section 106—you bet we are. That exists at the moment, so I hope she is not suggesting we should take it away. We also have a policy of putting money in from the Government, through the housing infrastructure fund.

I do not want to indulge in the blame game. All the main parties in the Chamber have been in government since the war, including the Liberal Democrats, so blame can be fairly apportioned among political parties. This is about looking to the future and how we can deliver more houses in our country.

Local Neighbourhood Services

Baroness Pinnock Excerpts
Wednesday 21st February 2018

(6 years, 2 months ago)

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Baroness Pinnock Portrait Baroness Pinnock (LD)
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My Lords, the Government are undertaking a fair funding review of local government expenditure. What value do they intend to place on neighbourhood services such as parks and public open spaces?

Lord Bourne of Aberystwyth Portrait Lord Bourne of Aberystwyth
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The noble Baroness is absolutely right: a fair funding review is due to report—in 2020-21, I think—on relative needs. Obviously, I do not want to pre-empt that, but suffice it to say that parks are a very important service delivered by local authorities. I had the great privilege of visiting Brockwell Park in Brixton recently and seeing an excellent park provided by the local authority there—Lambeth, I think—and work being done on the green flag scheme. That is vital. It is a matter for local priorities. There, it was obviously something that the local authority was concentrating on but, as I said, I cannot pre-empt the review that we are holding.

Northamptonshire County Council

Baroness Pinnock Excerpts
Tuesday 6th February 2018

(6 years, 3 months ago)

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Lord Bourne of Aberystwyth Portrait Lord Bourne of Aberystwyth
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My Lords, the noble Lord is right that this is clearly a serious situation. The problem is that while the best-value inspection is going on, I cannot comment on it. I am sure noble Lords will understand that. It is effectively sub judice. That said, in September 2017 the Local Government Association went in to look at what was happening in the council and made comments about the council having,

“no financial strategy to deliver a sustainable position”,

and a “short-term focus”. It also said:

“The Council has a poor record of delivering its approved budget”.


That said, it is now for the council officials who have served the Section 114 notice via the finance director to come up with a plan by 22 February, when the full council will meet to consider any relevant plan, to ensure that the council is put back on a stable footing. In the meantime, as I have said, services for vulnerable people and statutory services will continue to be supplied and council staff will be paid.

Baroness Pinnock Portrait Baroness Pinnock (LD)
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My Lords, as the Minister will understand, Northamptonshire is not alone in reaching the financial cliff edge. Professor Tony Travers of the LSE, an expert on local government finance, has said:

“I think there are others that are quite close to Northamptonshire’s position … I would be amazed if Northamptonshire was the only council to get into these circumstances”.


Does the Minister agree? Does he accept that the Local Government Association and others have a long list of councils reaching the cliff edge? Has he understood that the Government have accepted the need for extra funding; for instance, to postpone the social care crisis by introducing the social care precept, which means that council tax payers will be paying an extra 11% over the next two years? Are council tax payers still hard pressed or will they continue to pay an additional 5% or 6% each year?

Lord Bourne of Aberystwyth Portrait Lord Bourne of Aberystwyth
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My Lords, I thank the noble Baroness. I shall deal with the second point first, as it is more general and not specific to Northamptonshire, which is what the Statement is about. The social care precept has been introduced in response to widespread concerns, which I think are shared by the noble Baroness and her party, that we needed to do something like this—which will apply to Northamptonshire as well—to give extra leeway in relation to a need that is pressing on all our communities.

Turning specifically to Northamptonshire, the point is that it is alone. It has had two damning audit reports and a Local Government Association inspection and review in September. My right honourable friend the Secretary of State has ensured that there is an inspection on best value. It is the only one currently, and they are very few and far between. Tony Travers is certainly very distinguished, but the evidence I have—I have looked at this and so has the department—is that it is an outlier. Clearly we will keep these matters under review—it is important that we do so—but I certainly do not want people to go away with the idea that there are others at the cliff edge, as Northamptonshire is. There are not.

Non-Domestic Rating (Alteration of Lists and Appeals) (England) (Amendment) Regulations 2018

Baroness Pinnock Excerpts
Thursday 1st February 2018

(6 years, 3 months ago)

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Baroness Pinnock Portrait Baroness Pinnock (LD)
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My Lords, the noble Earl, Lord Lytton, has just made a forensic dissection of the process of business rate valuations and appeals, and I could not possibly add to that detail. However, I have some general points to share with noble Lords. I draw attention to my registered interests as a vice-president of the Local Government Association and an elected councillor in the borough of Kirklees.

It is totally acceptable for the Government to require accurate information for any appeal against business rates, but as the noble Earl, Lord Lytton, has drawn attention to, I am concerned about the use of the word “carelessly” in the regulations. What is the definition of the word and how will it be judged? I understand the use of “recklessly” and “knowingly”, but “carelessly” is not a word that is best used in regulations because I wonder how it will be defined.

The penalties being proposed seem to be appropriate and in line with penalties elsewhere in the system. However, the Government have a responsibility to review their actions in regard to the need to adhere to the timetable for rate reviews so that businesses are not subject to massive increases, as has happened with the latest review which was delayed by two years. It is totally unfair on businesses if the timetable is not kept up with and suddenly they find themselves facing significant increases in business rates.

Secondly, the Government must reconsider their approach to business rates. Ministers have rightly emphasised the importance of vibrant town centres, along with the changing nature of those centres, especially in smaller towns and villages where small businesses are likely to be paying a far greater proportion of their business income in rates than out-of-town concerns operating via online trade. This must be addressed in order to devise a more equitable business rate scheme between businesses serving their communities and gigantic out-of-town warehouses. I look forward to some positive news from the Minister on that score. It is not the first time that I have raised this issue and I shall keep on doing so until we make some progress.

My third point is to ask the Minister to explain the part that local authorities will play in this new regime. As he is aware, currently local authorities collect business rates and provide within their budgets for successful appeals via a grant from central government. The grant may or may not be sufficient to cover those appeals. From the local authority’s perspective, the existing regime for providing for successful appeals is not the most efficient that could be devised. Will the Minister consider producing a more effective and efficient regime that would suit businesses, the Valuation Office Agency and local authorities—and indeed the Government? All the money that is set aside for appeals is nominally from central government and in theory could be used more effectively in the provision of local services.

In general the approach is fair, but I look forward to the Minister’s responses to my questions.

Baroness Donaghy Portrait Baroness Donaghy (Lab)
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I have two very small questions. The first concerns the Explanatory Memorandum. Point 3.2 states:

“This entire instrument applies only to England”.


However, point 5.1 states:

“The extent of this instrument is England and Wales”.


Have I misunderstood the headings or is that a typo?

My question on guidance follows from the questions of the noble Earl, Lord Lytton, and concerns Paragraph 9.1. I would be grateful for some clarification. It states:

“The Department does not intend to issue formal guidance”.


That is fair enough, if it does not want to, but how will the department satisfy itself that the system is working? Will there be consultation with the VOA or will there be other mechanisms in the absence of formal guidance? It goes on:

“The VOA may issue internal guidance to their staff, in relation to the reforms to the business rates appeals system. As above”—


I am not quite sure what the phrase “as above” applies to—

“the VOA intends to provide specific guidance on the provision of information by ratepayers, and internal guidance on the application of penalties”.

I find that all a bit confusing, to be honest. Which is going to be transparent and available to the public, which is going to be an internal office one? I would be grateful for some clarification.

Telecommunications Infrastructure (Relief from Non-Domestic Rates) Bill

Baroness Pinnock Excerpts
Lord Kennedy of Southwark Portrait Lord Kennedy of Southwark (Lab Co-op)
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My Lords, I am very grateful to the noble Lord, Lord Bourne of Aberystwyth. I draw the House’s attention to my interests as a local councillor in Lewisham and vice-president of the Local Government Association. As he said, we had a very fruitful meeting after I tabled my amendment at Report. I was very happy to withdraw that, and I am very pleased with what the Minister has brought back today. As he says, it has enabled the Government to put the dates in the Bill. If they want at some future point to extend the scheme, they can, without the need for primary legislation. It is a very sensible move.

Baroness Pinnock Portrait Baroness Pinnock (LD)
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My Lords, I draw the House’s attention to my register of interests as a councillor in Kirklees and as another vice-president of the Local Government Association. As we discussed on Report, we agree with and support the amendments proposed by the noble Lord, Lord Bourne, and initiated by the noble Lord, Lord Kennedy. We thank the Minister for his very helpful meetings on the Bill. I have certainly explored a number of issues, although I have not got very far, and I do not intend to let them go. There is a growing need to think about the accessibility and affordability of broadband and mobile networks for people less well off than the majority, when they are going to rely on them for access to public services and other important aspects of their lives. That issue will not go away, and I hope Ministers will take that point away and think about it.

As for the amendments, we will obviously support them.

Lord Bourne of Aberystwyth Portrait Lord Bourne of Aberystwyth
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My Lords, I shall respond to the typically generous comments from the noble Lord, Lord Kennedy, and the noble Baroness, Lady Pinnock, regarding the Bill in general. I also want to put on record a couple of other issues. First, I undertook that we would look at gaming, and after discussing the issue with Ofcom and Gamma Telecom—I have shared this with the opposition parties—they have concluded that there is no risk of gaming in relation to fibre, but we shall keep a watching brief on that issue. I also take note of what the noble Baroness said about rural issues and deprived and isolated areas that are difficult to get to. Again, we would want to take account of and pay special attention to that.

At Second Reading we benefited from hearing about the concerns about business rates of the noble Earl, Lord Erroll, and my noble friend Lady Harding. I am very grateful to the noble Lord, Lord Kennedy, and the noble Baroness, Lady Pinnock, for their constructive approach to the Bill. I am also grateful to my noble friend and co-pilot Lord Ashton for the support and expert knowledge he has provided throughout the Bill’s passage. I also extend thanks to the Bill team: Jonathan Denning, Nick Cooper, Pete McDougall, Stewart Kemsley, Thomas Adams and the ever-smiling Homaira Abdullah.

This Bill will help to close the digital divide and to get higher-quality, more reliable connectivity to households and businesses across the country, benefiting every sector of the economy. I beg to move.