Local Authorities: Financial Difficulties

Baroness Stuart of Edgbaston Excerpts

Wednesday 14th February 2024 Lords Chamber

[Baroness Scott of Bybrook (Con)]

I agree with much of what my noble friend said. In December 2022, the Government ruled out reform of the local government finance system in this Parliament in response to the sector calling for stability and certainty from local government. However, this Government are committed to reforming the local government funding landscape in the next Parliament.

[Baroness Stuart of Edgbaston (CB)]

My Lords, I stress the need to review the local government financial settlements and support systems. In the case of a city such as Birmingham, even if increasing the council tax were realistic, a quarter of households—some 461,000 —are eligible for council tax support, and of those, 75,000 pay no council tax at all. Over the next two years, the city is facing a budget gap of some £300 million. Does the Minister agree that the structure needs to be reviewed and that individual circumstances have to be taken into account?

[Baroness Scott of Bybrook (Con)]

I repeat that we have said that we will look at funding in the next Parliament. There is an 18% increase in budgets per dwelling in the most deprived areas, compared to the least deprived. Through the settlement, places such as Birmingham are getting a lot more money.

Intergovernmental Relations Within the United Kingdom

Baroness Stuart of Edgbaston Excerpts

Thursday 18th January 2024 Lords Chamber

[Baroness Stuart of Edgbaston (CB)]

My Lords, I am very grateful to the noble Earl, Lord Kinnoull, for this debate, and I think we probably all agree that good intergovernmental relationships are desired. On a very personal note, it is 50 years today since I arrived in this country. I grew up and was born in a federal state that had a written constitution and a second Chamber which represents the component states of the federal state—and they are still arguing. Therefore, all these things are not a panacea; but the fact that we are having the debates is the really important thing.

I want to talk about an issue in respect of which, although Wales and Scotland have the powers to exercise a particular function, they have chosen not to, and that is the Civil Service. I declare an interest as the current First Civil Service Commissioner. The arrangements in the Constitutional Reform and Governance Act 2010, which sets out a legal requirement that the appointment of civil servants in England, Scotland and Wales must be made on merit and after fair and open competition, are important. Northern Ireland has separate arrangements; nevertheless, some 4,550 UK civil servants work in Northern Ireland.

Working from London, it is easy to lose sight of the fact that significant differences exist. A number of speakers referred to that, and particularly to the time during Covid when it became apparent that things were done differently. However, they were done differently for very good reasons, either because of the priorities of local populations or because the demands were different. We so quickly forgot that doing things differently in different parts of the United Kingdom is not a bad thing; it is a good thing if we use it as an opportunity to learn from each other. However, this will not happen if there is no trust and no common agreed standards and shared understandings. In addition, comparable data is very important. I caution against divergence when we start gathering data on different bases and different assumptions, because that divides us in a way that is not helpful to anyone.

UK civil servants, whether they work in London, Edinburgh, Belfast or Cardiff, are all subject to the provisions of CRaG, which involves the Civil Service Code recruitment principles, but there are provisions for divergence, and there is a requirement for consultation. Just to put this in context, in Wales, there are 38,655 UK civil servants; in Scotland, there are 53,495; and in England, there are 416,850. As I said, although the arrangements in Northern Ireland are different, there are still over 4,000 UK civil servants there.

The Civil Service Commission chairs all the interviewing panels for directors-general, Permanent Secretaries and the majority of director posts. In 2022-23, we chaired 229 of these competitions, of which three were for the Scottish Government and seven for the Welsh Government. We take our role as regulators incredibly seriously and would argue that we have a unique vantage point of ensuring that consistently high standards of quality across the UK Civil Service are maintained.

We also have a system of linked commissioners, where major departments as well as Scotland and Wales have a dedicated commissioner. They work with Permanent Secretaries, advise on issues and share good practice. Our current Scottish linked commissioner is Paul Gray, who was the chief executive of NHS Scotland and director-general of health and social care. We are currently in the process of recruiting additional commissioners, and I very much hope that we will be able to identify at least one new commissioner with an understanding and experience of Wales.

In the last few days, the Civil Service Code, which is rarely spoken about in political debate, has gained some attention. As the Civil Service Commission ultimately deals with complaints brought by civil servants regarding conduct that is thought to conflict with the Civil Service Code, I thought it might be helpful just to remind everybody of its basis. CRaG is very clear: there must be a Civil Service Code. There may be separate codes of conduct covering civil servants who serve the Scottish Executive or the Welsh Assembly Government, but, before publishing a code, or any revision of the code, the Minister must consult the First Ministers of both Scotland and Wales.

No Administration in the UK, or any of the devolved Administrations can deliver their priorities unless they are supported by a strong and competent Civil Service. Therefore, I expect our UK civil servants to get experience working in all parts of the UK. Moving in and out enriches not only the individual’s professional experience but benefits the Administrations they serve. I would argue that no director-general or Permanent Secretary should be appointed unless they have some experience in one of the devolved Administrations or our big local authorities. At the moment, this happens in some cases, but it really does not happen enough.

I have one curious little anecdote which I picked up when I chaired a competition in Scotland. There was the observation that London-based civil servants who are used to dealing with single large departments probably do not prepare enough when they are applying for jobs in Scotland and Wales because they do not appreciate the nature of the difference and the breadth of experience they have to bring to the job. They would enrich their own experience by moving in and out of Whitehall in regular patterns.

With all this in mind, I assure the Minister and the House that the Civil Service Commission will continue to play its role in ensuring strong intergovernmental relations based on a UK-wide Civil Service. As the noble Earl, Lord Kinnoull, put it so nicely, it helps with the creaks and groans of the current arrangements.

Prime Minister: Meeting with First Ministers

Baroness Stuart of Edgbaston Excerpts

Wednesday 20th October 2021 Lords Chamber

[Lord Greenhalgh (Con)]

My Lords, it is important to recognise that through the Barnett formula a considerable amount of money has been made available to all the devolved Governments—some £28.1 billion. We are happy to continue to engage in a productive way with the Welsh First Minister and others on how best to recover.

[Baroness Stuart of Edgbaston (CB)]

My Lords, when the Prime Minister next meets the First Ministers in the new year, I hope it will be a convivial and friendly gathering. I hope that all in the room will reflect on how they responded to Covid and to some of the backlogs in education and health, and that each part will find that they have done some things better and others worse. Could we encourage them to compare their experiences and learn from each other so that the whole of the United Kingdom will benefit from some of the divergences of the four units?

[Lord Greenhalgh (Con)]

My Lords, that is absolutely an opportunity to learn. The pandemic will probably have been the most memorable event in my lifetime, as someone who was born well after the Second World War, and it is important that we learn the lessons from divergence and different approaches so that we are better prepared for the next time, should this ever happen again.

Minister for Intergovernmental Relations

Baroness Stuart of Edgbaston Excerpts

Monday 18th October 2021 Lords Chamber

[Lord Greenhalgh (Con)]

My Lords, my noble friend is right that there needs to be effective intergovernmental working. Indeed, my right honourable friend the Secretary of State is committed to continuing to work effectively with the devolved Administrations and supporting effective engagement across government. My right honourable friend will be writing to the devolved Administrations regarding the arrangements following on from the intergovernmental relations review and the formalised structures for engagement, as part of that.

[Baroness Stuart of Edgbaston (CB)]

My Lords, given our rather asymmetric constitutional arrangements, it is easy to forget that intergovernmental relations matter to Wales, Scotland, England and Northern Ireland. Therefore, does the Minister agree that, if we want fair handling of the four components, it is important that we gather and analyse data in all of them in a way which allows us to make proper and in-time comparisons?

[Lord Greenhalgh (Con)]

My Lords, I accept that it is important that all government decisions should be based on sound analysis and data, which I am sure will be the case as we look to work closely with the devolved Administrations to spend money that was previously as a result of our membership of the European Union.

Levelling Up

Baroness Stuart of Edgbaston Excerpts

Thursday 18th March 2021 Lords Chamber

[Lord Greenhalgh (Con)]

My Lords, I can give that assurance that, as we go through the rounds, we will make assessments and judge on outcomes. That is why it is terribly important to have an outcomes framework, as has been published, and that we continue to see progress against those metrics identified in that framework.

[Baroness Stuart of Edgbaston (Non-Afl) [V]]

My Lords, the levelling-up fund was a bit West Midlands-light, but there is still time for this to be remedied. When the Minister looks at success and repeats that the framework is about productivity, skills, transport and unemployment, I urge him to pay particular attention to the 50% of young people who do not go to university. If we do not deliver for them, whatever other levelling up we are doing, we will have failed.

[Lord Greenhalgh (Con)]

My Lords, I point out that this fund is available to all authorities, including those in the West Midlands. Those not in category 1 should apply. All bids will be judged on their deliverability, strategic fit and value for money. I am sure that there will be opportunities for the West Midlands Combined Authority to be one of those who will be a beneficiary of the fund.