North East Mayoral Combined Authority (Establishment and Functions) Order 2024

Debate between Baroness Taylor of Stevenage and Lord Shipley

Monday 18th March 2024 Grand Committee

[Baroness Taylor of Stevenage (Lab)]

With permission, I would like to respond to that tribute. I have been in local government for nearly 30 years now, and I knew Mr Rowsell for most of that time. He was a formidable public servant, as the noble Baroness, Lady Scott, said. He was one of the great experts on local government finance—there are not many of those. Paul probably knew more about local government finance than anybody else in the country. I remember the trepidation that you would feel—I was a deputy leader of the LGA for many years—when you went into a meeting with him because you knew, however good your arguments were and however well you had been briefed by the LGA, he would pick it apart in five minutes and decimate your argument.

In spite of his tough approach to those of us who came up against him in meetings, he was very much a trusted member of the team in DLUHC and its predecessor departments—it has had many names over the years. I first encountered him way back when we were working on some of the “best value” initiatives. He was trusted, effective, incredibly knowledgeable and a consummate professional. His public service to this country in the local government department—that is what I will call it—was exemplary. I hope that he will rest in peace and that, for those who knew him personally, his memory will be a blessing. I thank him from our side of the Committee for his wonderful service to local government.

[Lord Shipley (LD)]

My Lords, it is deeply sad news to learn of Paul Rowsell’s death. I think back to the advice that he gave me during the passage of the Localism Act in the period of the coalition Government from 2010 to 2015. He had the ability to listen, to explain and to stay very polite, even if I was completely wrong on the issue. He had the ability to make things clear so that the understanding of those of us who were dealing with legislation was improved. It is a sad day for local government. He will be sorely missed. I appreciated his presence as part of the Bill team so many times. You knew that if Paul was leading a team, the work had been done and was of an enormously high, professional standard. It is with deep regret that we say that we will miss Paul profoundly.

--- Later in debate ---

[Lord Shipley (LD)]

My Lords, I first welcome the comments of the noble Baroness, Lady Quin, whose experience as an MP in the region, and of living in Northumberland, have been extremely helpful to the cause of the north-east in economic development terms. I agree with a number of the comments of my noble friend Lord Beith. He said that the order is underpowered, which is true, but I think it can become more powered over time—that will need to be done. I have always shared his concern about the concentration of powers in one person, and I am also concerned by those major potential capital investment projects that are outside the remit of this mayoral combined authority, not least the A1 and trains.

As this is such a big geographical area—I think it is the biggest of any of our mayoral combined authorities—there are issues around the availability of skills training, particularly in further education, and of T-levels. One thing that it would be helpful for the Government to pursue is whether the availability of T-levels is as successful in the rural and coastal areas of this combined authority as it is in the urban areas.

That said, I congratulate the north-east mayoral combined authority on getting to this stage. Having been the leader of Newcastle City Council, a regular member of the Association of North East Councils and a board member of the regional development agency One North East for seven years, I think that this measure is a tribute to its vision, ability and willingness to work together over such a large geographical area. I see what is happening as a partial return to the status and powers that regional bodies had just a few years ago.

This is an important step for the north-east. It is particularly pleasing to see the successful all-party work that has gone into its delivery to this stage. Durham County Council has a Liberal Democrat leader; Northumberland County Council has a Conservative leader; and each of the five Tyne and Wear local authorities has a Labour leader. It helps drive public confidence and consent when the leadership across the region has such a common purpose, despite their political differences. That is because political consent is vital, as we know from recent debates on the West Midlands.

As the Minister said, this order generated more than 60% support across the north-east, which is very encouraging. That consent needs to be maintained; I hope that this new mayoral combined authority will reflect on the problems that have arisen further south, in Tees Valley. I hope that the north-east mayoral combined authority will review its procedures on scrutiny, audit and risk to ensure that they are sufficiently robust. That said, I strongly welcome this further step towards devolved powers in the north-east of England.

[Baroness Taylor of Stevenage (Lab)]

My Lords, I too congratulate the seven authorities involved in negotiating this deal with the Government. We are all aware of the additional challenges that, as the noble Lord, Lord Shipley, said, were present in the north-east in achieving consensus across political, geographical and demographic boundaries. Not only has that been achieved but the deal has gained trailblazer status, which will hopefully enable it to attract the high levels of funding needed to tackle the many challenges faced by the north-east.

I am grateful to my noble friend Lady Quin for bringing her great experience in the area to this debate. As she said, having a single voice for the north-east will be helpful. We on this side are committed to devolution, so we will not put any obstacles in the way of a deal that has been subjected to such thorough and intense negotiation and collaboration at local level, but that does not mean that we do not have some questions for clarification purposes. I appreciate that, as I did not submit them to the Minister in advance, it might be necessary for some of them to be answered in writing. I would be quite happy with that.

It is good to see that, in the negotiations that took place over this deal, local government put place before party; that has always been my experience and it certainly shines out from this deal. That is the real power of devolution. We recognise the potential benefits of creating this new combined authority, which will have functions to grow the whole economy of the north-east. We are hopeful that, if our outstanding candidate for the mayoral election, Kim McGuinness, is successful, she will soon be working across the areas of her seven local authorities to grow the economy for all its people and businesses.

East Midlands Combined County Authority Regulations 2024

Debate between Baroness Taylor of Stevenage and Lord Shipley

Monday 19th February 2024 Grand Committee

[Lord Shipley (LD)]

My Lords, the noble Baroness, Lady McIntosh of Pickering, has raised a number of pertinent points and I am looking forward to hearing the Minister’s response to them. She particularly raised the consultation and the responses. There has been a continuing problem with consultation on combined authorities because the number of people who respond is very low. In the case of the East Midlands, I think Ministers have taken the view that elected councillors would have to make the decision about the mayor. Nevertheless, there is a question about how the Government and combined authorities can engage with people to a much greater degree so that response rates to any question would be much higher than in this case. Having said that, I thank the Minister for her explanation of these regulations. It is very good to see the close working of the local authorities in the East Midlands Combined County Authority. I wish it every success in its work. We want it to succeed.

I have previously raised issues of scrutiny, audit and risk in relation to this combined county authority and other mayoral combined authorities. I noticed that the Secondary Legislation Scrutiny Committee commented on this public consultation. Paragraph 45 of the report cites the Department for Levelling Up, Housing and Communities explaining that

“the Secretary of State has noted respondents’ concerns about the EMCCA’s governance model and the position of a Mayor but is satisfied that these draft Regulations would ‘provide the necessary check and balances on the governance of the EMCCA and its Mayor’”.

I draw the Minister’s attention to the Tees Valley Review dated 23 January 2024. I will quote from it, because what it says is important to all combined authorities. The question I pose to the Minister relates to whether any of the deficiencies identified in that report, published a few weeks ago, could occur in the East Midlands Combined County Authority. I quote specifically from paragraph 1.7 of the report’s executive summary, which said that

“there are issues of governance and transparency that need to be addressed and a number of decisions taken by the bodies involved do not meet the standards expected when managing public funds. The Panel have therefore concluded that the systems of governance and finance in place within”

the Tees Valley Combined Authority and the South Tees Development Corporation

“at present do not include the expected sufficiency of transparency and oversight across the system to evidence value for money”.

Recommendation 6 then went on to say that the Tees Valley Combined Authority cabinet should

“review its current delegations and directions to STDC to ensure it meets its statutory obligations, including appropriate oversight by Overview and Scrutiny Committees, to enable value for money to be delivered and evidenced through effective scrutiny of significant decisions”.

The Secretary of State has said that the draft regulations would

“provide the necessary check and balances on the governance of the EMCCA and its Mayor”.

Can the Minister, either now or perhaps later in writing, explain how these draft regulations actually provide the checks and balances necessary to ensure that a report such as that written on Tees Valley could not be written on the East Midlands?

The Minister is aware that I have raised issues of security, audit and risk repeatedly during the passage of the levelling-up Bill and on other occasions, and I find those words in the Tees Valley Review worrying. I hope that this cannot possibly happen elsewhere. I am surprised by what has been said on Tees Valley but, given that, what structure is in place—I cannot find it in these regulations—to prevent a repetition of what seems to have occurred in the Tees Valley from happening in the East Midlands or in any of the other mayoral combined or combined county authorities?

[Baroness Taylor of Stevenage (Lab)]

My Lords, I thank the Minister for setting out the basis for this new type of mayoral combined county authority. The regulations establish the East Midlands combined authority and are required in advance of the first planned combined authority mayoral elections in May this year. We consider them to be very important for the economic and social development of the region and its population, so we will not be objecting to this important SI, but that does not mean that we do not have any questions about it. Indeed, we are very excited and hopeful that our candidate, Claire Ward, will be the first East Midlands mayor elected and, as mayors do up and down the country, will make a great difference to communities in the areas that the Minister set out—housing, transport, public health, and education and skills.

We also noted the degree of consultation that took place from 14 November last year to 9 January this year, but further note, as did the noble Baroness, Lady McIntosh, and the noble Lord, Lord Shipley, that the numbers are very low in these consultations. We need to think about how we engage the public more in these very important discussions about the future of their areas. We also noted that there is a distinctive emphasis in this devolution deal on the combined authority reflecting the local communities within the combined authority area. We can do more of that, and I think that might help to engage people even more.

Levelling-up and Regeneration Bill

Debate between Baroness Taylor of Stevenage and Lord Shipley

Report stage
Wednesday 13th September 2023 Lords Chamber

[Lord Shipley (LD)]

In moving Amendment 247YYE, I will speak also to Amendment 288B; both are in my name and that of my noble friend Lord Foster of Bath and relate to second homes. They would give a power to the Secretary of State by regulation to permit local authorities, through a licensing scheme, to set a limit on the proportion of dwellings which, at the point of sale, become second homes for council tax purposes.

We have heard about deal on Report on the Bill about the housing crisis, not least a crisis in the availability of truly affordable homes. Government data shows that 7,644 social homes were built in England in 2021-22, while 24,932 were sold under right to buy and 2,757 were demolished. The crisis is particularly bad in rural and coastal areas.

In 2019, the Rural Economy Select Committee, chaired by my noble friend Lord Foster of Bath, noted that, in rural areas, house prices—and so, in turn, rents—are higher than in urban areas, while incomes are lower. That disparity is widening. In Cumbria, for example, average house prices are 12 times average household incomes. As a result, it is ever harder for people of working age to live and work in rural and coastal areas, with an inevitable impact on their local economies.

There are three principal causes: too few genuinely affordable homes being built; second homes taking over full-time residential homes; and, the most rapidly increasing problem, short-term lets taking over the long-term private rented sector. In Cumbria, for example, there are currently 232 long-term rental properties available, compared with 8,384 short-term lets.

My noble friend Lord Foster of Bath, who is unable to be here today, lives in Suffolk, close to the popular seaside town of Southwold. With the recent growth in second home ownership and the rapid rise in short-term lets, of the 1,400 properties in Southwold, only 500 have full-time residents, while 500 are second homes and 400 are short-term lets. Two-thirds, therefore, are not permanently lived in.

House prices and long-term rents have risen steeply. Local families are being forced out and those working in the local tourism industry cannot find or afford local accommodation. As a result, many of the bars, restaurants and hotels now have staff vacancies. As a local councillor said recently, soon people will not

“want to visit the soulless toy town where no one lives any more”.

In Committee, my noble friend Lord Foster of Bath and I proposed amendments to address the issues of short-term lets and second homes. In particular, we proposed separate use categories for both. Other noble Lords also addressed these issues, with a range of similar proposals. In response, the Government promised to take action. Indeed, as a result, consultation has been taking place on proposals to introduce a short-term let registration scheme, which would allow councils to apply health and safety regulations across the guest sector.

Consultation has also been taking place on establishing a separate use class, C5, for short-term lets. I welcome these proposals and the intention of using permitted development rights so that areas of the country where short-term lets are not an issue are not impacted. Where they are, a planning application will be required for change of use to a short-term let and councils can decide whether, given local circumstances, it should be approved.

Clause 218 of this Bill provides for the implementation of the registration element of these proposals. These Benches welcome the proposals and hope they will be implemented quickly. However, this completely ignores those second homes not being used as short-term lets. They should be known as “second homes for council tax purposes”. On the latest figures, there are some 257,000 such properties in England; although not as rapidly as short-term lets, the numbers are growing year on year.

I expect that the Minister will point to the way in which neighbourhood plans can be used to address this issue and the new power for councils to further increase council tax on second homes. While undoubtedly welcome, these measures do not give affected local councils sufficient powers to address the problem. Can the Minister explain why the Government, having belatedly agreed to address the short-term lets problem, are failing to do the same for the second home problem?

The two amendments in this group in my name and that of my noble friend Lord Foster of Bath propose a solution. We could have adopted a similar approach to the one the Government have proposed for short-term lets and if, in response, the Minister suggests the Government plan to explore that route, we will be happy to support it. However, following a substantial discussion with local councils and councillors, we propose a new approach: a licensing approach available for those councils which choose to adopt it.

It is a simple approach. By restricting its application to the point of sale, it does not impact existing homes. We recognise that it would require a person seeking to buy a property to be used as a second home—not intended to be a short-term let—to conduct inquiries into the likelihood of a council agreeing to a licence. That is no more onerous than many other pre-purchase searches and no different to that required for a use class order change to short-term let. But it would give much-needed powers to councils which face problems caused by second homes. I hope the Minister is in listening mode on this matter.

Finally, on second homes and council tax, can the Minister explain what steps the Government will take to resolve their failed attempt to close the tax loophole? For some years many of us have been drawing attention to the situation whereby second home owners avoided paying either council tax or business rates. They did this by claiming their property was available for rent—and so eligible for business rates—but then ensured that little rental took place and so the business income fell below the threshold, so no tax was paid.

Last January, so-called tough new measures were introduced for eligibility requirements: making the property available for rent for 140 days a year and proving it had been for at least 70 days. However, as the Daily Telegraph reported earlier this month:

“Holiday let council tax crackdown backfires—costing local authorities millions”.


The tough measures have not prevented more and more second home owners registering as a business and then claiming 100% business rate relief. Two years ago, 73,000 such properties were on the business rates list in England; the figure now stands at over 85,000. Can the Minister tell the House what further steps will be taken to address this problem? I beg to move.

[Baroness Taylor of Stevenage (Lab)]

My Lords, the percentage of second homes in so many parts of the country has had such a devastating impact on communities. We heard about that in great detail in Committee and had many examples from all sides of the House. We noted that it particularly impacts on rural and coastal communities. I am also concerned about the tax loophole and that so many second home owners avoid paying either council tax or business rates. This is clearly an anomaly and needs to be resolved.

The amendments in the names of the noble Lords, Lord Foster and Lord Shipley, would be an important next step in tackling this. We too welcome the licensing steps already taken but, if we are going to tackle this, we need to go one step further. We look forward to hearing the Minister’s response to the amendments proposed.

Levelling-up and Regeneration Bill

Debate between Baroness Taylor of Stevenage and Lord Shipley

Committee stage
Monday 13th March 2023 Lords Chamber

[Baroness Taylor of Stevenage (Lab)]

My Lords, I shall speak also to my Amendments 115, 118 and 119 and Amendments 116, 117 and 125 in the name of my noble friend Lady Hayman of Ullock.

In general terms, these amendments have been tabled to probe some of the issues around what appears to be a democratic deficit in both the existing elected mayoral system and the new provisions proposed in the Bill. They also consider how the Secretary of State will deal with the financial consequences of the powers given to him or her in the Bill to transfer functions to the mayor, as well as some further issues around the communication of issues relating to the mayoral system to members of the public in the area that he or she represents.

I know that communication has been covered extensively in our previous debates in Committee—we have heard extensive responses from the Minister and the noble Earl, Lord Howe, on that subject—so I will be brief. However, if the new CCAs that choose to go down the route of an elected mayor are to be successful, it will be vital that all matters relating to the mayoralty are set out clearly and communicated effectively to the public in the area concerned.

Amendment 103 is intended to probe the possibility of mayoral by-elections. We need clarity in relation to what would happen in the event that a CCA mayor resigned or left office for any reason. Does there need to be specific provision in the Bill to enable a mayoral by-election should this happen? As the current proposal seems to be that the deputy mayor is simply appointed by the mayor, it does not seem appropriate for an unelected deputy mayor to step in and take over until the next cycle of mayoral elections is due. Can the Minister clarify whether it is the Government’s intention that a mayoral by-election should possible if the mayor is unable or unwilling to carry on in their role in a period that is not close to the date in the normal cycle of mayoral elections?

Amendment 115 would insert:

“The Secretary of State may by regulations make provision as to the scrutiny of deputy mayor appointments.”


This amendment has been supported by the Local Government Association, which thinks it gives greater power to combined authority members to hold the mayor, and the mayor’s choice of deputy mayor, to account. We heard a great deal earlier this afternoon about the flaws in the process for appointing deputy mayors. The current system of appointment by the mayor to the role of deputy mayor seems to leave a gaping hole in any democratic process in this respect. Deputy mayors have powerful roles within the executive and administration of the CCA. As we have heard, they could potentially take the role of the current police and crime commissioner. They also receive remuneration from the CCA, which can be at a significant cost to the taxpayer. But this can be done without any provision in the Bill for scrutiny either by the overview and scrutiny committee or by an equivalent body, let alone any external scrutiny, which seems to set those roles apart from both the democratic process, in that they are not elected by the public, and the provisions that would be made in a local authority, for example, for the appointment of a senior member of staff. Would the Minister give consideration to any further provisions and safeguards that could be built into the Bill to ensure that CCA members and the public can hold the mayor to account for the appointment of deputy mayors?

Amendment 116, tabled by my noble friend Lady Hayman of Ullock, would mean the Secretary of State must publish a statement confirming what additional funds will be made available to a mayor when making regulations under Clause 28, so we are back to funding again. This amendment is supported by the LGA. The clause gives the Secretary of State significant powers to transfer responsibilities for certain functions and activities to the mayor and the CCA. In some circumstances, we accept, this may be subject to the normal process of new burdens funding, although that process in itself has its own challenges. We would be more concerned that devolution may be used as an excuse to reduce funding for services, particularly core services. We absolutely support the transfer of powers from central government to local leaders, but of course these powers must be accompanied by appropriate funding levels. Our amendment would ensure that the Secretary of State would confirm what funding was being allocated along with any new powers that are conferred. The LGA agrees with that opinion, saying that

“powers must be accompanied by appropriate funding levels, and devolution should not be used as an excuse to reducing funding”.

So, on that amendment, we have the support of the LGA.

Amendment 117, again in the name of my noble friend Lady Hayman of Ullock, is on an annual summit of CCA mayors. This is similar to earlier amendments we laid down around the sharing of good practice. It is a probing amendment designed to explore how CCA mayors will share information on the implementation of the new types of combined authorities and best practice. It would give them a forum to enable them to discuss any issues arising from the operation of the CCAs, and liaison and co-operation between them and the Government, and to understand how different models of CCA are working—for example, those that have taken the powers of police and crime commissioners. We appreciate that there may be a role for the LGA. We discussed that earlier this afternoon; we can discuss it further in later stages of the Bill. Other bodies may have an interest in this area in relation to CCAs, but it is certainly not clear from the Bill how joint working, sharing of good practice and achieving an agreed stance where issues arise on policy matters around the structure of CCAs and so on would happen.

Amendment 118 is a probing amendment which would prevent the Secretary of State from conferring only partial police and crime commissioner functions on the mayor. This relates very much to the discussion that we had earlier under other amendments. I hope that it is not related to the issue raised by my noble friend Lord Hunt earlier, where a mayor does not agree with decisions made by a PCC of a different political persuasion—or even the same one, if you are in one of those types of political arrangements and they have had a fallout. It seems strange to have provision in the Bill which could lead to the possibility of a patchwork of different policing responsibilities being conferred on CCA mayors. This begs a further question about the role of police and crime commissioners in those circumstances.

This probing amendment seeks to understand the Government’s view on whether they would prefer the default position to be to transfer all the functions of police and crime commissioners to mayors in most circumstances, except where the CCA particularly expresses a wish not to transfer any of those powers, or whether it is to be left to CCAs at local level to determine which functions will be transferred to the mayor. Can the Minister please clarify this point? Policing is just too important in our communities to see it haggled over between different bits of local authorities. I hope we can have a clear line on this.

Amendment 119 is a probing amendment to allow the person appointed deputy mayor to be appointed as the deputy mayor for policing and crime. Again, we had a very long discussion about this earlier today, but it is certainly not clear in the Bill whether it is the intention that a deputy mayor should never take the function of a deputy mayor for policing and crime. We have raised other amendments, and under those is our concern about the democratic deficit in the appointment of deputy mayors. However, if and only if the issues around accountability for those appointments can be resolved, it would seem perverse for the mayor not to be able to delegate this part of their responsibility. Indeed, in practice, it almost certainly would happen. Can the Minister comment on how this aspect of the Bill might be clarified to make that issue clearer?

Lastly, Amendment 125, in the name of my noble friend Lady Hayman of Ullock, would mean that a change in the mayoral title must be communicated to residents. We agree with Amendment 124 by the noble Lord, Lord Shipley: a list of possible alternative titles for mayors is really unnecessary, as the CCA already has powers to choose alternative titles if it wishes. My noble friend’s amendment is intended to make sure that, if there is a change to the title, that is communicated to the public—to residents—and that that should be written into the process for any mayoral change of title. I beg to move.

[Lord Shipley (LD)]

My Lords, my name is attached to Amendment 124 in this group, which relates to Clause 40, “Alternative mayoral titles”. I challenge the notion that a choice of titles is required on the face of the Bill. Powers to decide a title already lie with the CCA, under Clause 40, in line 25 of page 35, and to attempt to define possible titles is an unnecessary addition.

The titles suggested are,

“county commissioner … county governor … elected leader … governor.”

I am not clear where those four titles came from. I guess we could all add some more, but it is confusing since everybody else is using the word “mayor”. I do not understand why another title is necessary. If I look at the word “governor”, I immediately think of a school governor, the governor of a US state or the governor of a prison. I am not sure it helps public understanding of what is proposed with a combined county authority to have a mixture of titles for roles. The public will have great difficulty engaging with them, because the titles could be different in one place from another. The power is there for people on the CCA to decide what title they want but, frankly, if I had my way it would be “mayor” because that has become the term. For the West Midlands, Greater Manchester, Merseyside, Tees Valley and so on, the word is “mayor” and I am not sure it helps to have suggestions that they could be called “governors” or “county commissioners.” I hope the Minister may be able to look at that and come up with an explanation about why the Government want to confuse things so much.

Levelling-up and Regeneration Bill

Debate between Baroness Taylor of Stevenage and Lord Shipley

Committee stage
Monday 13th March 2023 Lords Chamber

[Baroness Taylor of Stevenage (Lab)]

My Lords, with the current local authority funding gap running at over £7 billion a year and much of the supposed increase trumpeted by the Government having to come from the pockets of already hard-pressed council tax payers, it is somewhat disappointing, as I have said before in this Chamber, that the Bill seems largely to overlook the underlying issues of the underfunding of local government generally and the fact that funding is not distributed fairly according to need.

That is key to the Bill, because those financial issues represent a barrier to the Government achieving their ambitions of levelling up. Indeed, the current rounds of bidding to get funding for levelling up only further add to the problem, because the authorities with the resources to put together the shiny bids that appear to be favoured are not always the ones with the most need. In that respect the Government are, at worst, turning the whole concept of levelling up upside down, and, at best, are applying sticking plasters to the gaping wounds of underfunding in our communities.

As a local government leader for 17 years, I can say from first-hand experience that the drastic savings that have been imposed on local authorities since 2010 mean that what has been achieved is all the more impressive. All major projects coming before any council are subject to detailed analysis of how the outcomes will be measured and monitored. That includes environmental, legal and equalities impacts and, especially, financial costs. At a time when even our Conservative County Council are announcing that it has exhausted all options in meeting its budget deficit, I hope the Minister will reflect on how we can better enable local councils to level up our areas. We are proposing a number of amendments in an attempt to address this deficit, and the amendments in this group would be the start of that process.

On Amendment 87, with a local government regime that is already incredibly regressive—from the benefit from council tax being skewed to those areas that are already better off to the many recently introduced funding pots which, as I said, enable those authorities with the resources to prepare the best bids regardless of the needs of the area—it is vital that there is a process to ensure the accountability and integrity of funding directed to CCAs. The publication of an annual statement would enable clear scrutiny to take place, both between and within CCA areas. It would also have the effect of making the funding of CCAs far more transparent for public purposes, as it would enable the CCA and the Government to demonstrate what funding had been allocated.

The second part of the amendment would take that transparency one step further, in that it asks for the annual statement to have a cost-benefit analysis to demonstrate whether the funding allocated to the CCA is achieving the stated aims. Again, that would provide a good opportunity for internal scrutiny via the overview and scrutiny committee, which we discussed earlier this afternoon, and for the public to be assured that the funding provided to the CCA was achieving the aims of levelling up and the strategic objectives that the CCA had set for itself.

The national benefit of these statements would be that, once consolidated, they would provide a national picture of funding, the way that funding was allocated and why, and the benefits that were being delivered through that funding. I would like to think that the discipline of reporting on an annual basis would also ensure that, where bidding pots still got allocated—much as I might prefer funding to be done in a different way—there would be clear criteria for and assessment of those bids, with measurable outcomes, so that these could be reported in the annual statement.

On Amendment 123, in the name of my noble friend Lady Hayman of Ullock, while the clause in the Bill sets out that the Secretary of State may make regulations in relation to requiring the mayor to maintain a fund in relation to receipts arising from, and liabilities incurred in, the exercise of general functions, and about the preparation of an annual budget, it is not clear whether that power for the Secretary of State extends to subsequently scrutinising that budget and fund in Parliament. Our contention is that local government, including any CCAs set up under this Bill, is already subject to extensive scrutiny through the overview and scrutiny committees internally, and externally through the audit process. So we would be grateful for clarification from the Minister on whether there is to be a further layer of scrutiny set up in relation to CCA budgets.

Amendment 172, submitted in my name and in the name of the noble Lord, Lord Shipley, talks about this fair funding review—and I feel fairly strongly about this. The fair funding review has been under discussion for at least five years to my knowledge, and probably longer than that. It was delayed again in October 2022. The methodology we currently have for allocations is both flawed and completely out of date. For example, it takes traffic flows from 2011, unemployment data which is 10 years old, highways data which is 20 years old, and census data—and, as we all know, the census is undertaken only every 10 years and so is nearly always too out of date for allocating funding via that formula. Additionally, we all know about the failure to reset property values, which means that we are using property values from 1991.

Average council tax as a share of disposable income in London is the lowest in the UK. That does not mean that there are not areas of deprivation in London, of course—some of the most deprived areas in the country are there—but it is just over half of that in Yorkshire and the Humber, and in the north-east. So, in a dynamic economy and at a time of a cost of living crisis, this outdated and flawed approach, which penalises and exacerbates economic equalities, will not do—it is the exact opposite of levelling up. Our amendment is there to suggest that we need to get on with this fair funding review and get it enacted quickly, because we have got no chance of levelling anything up unless we get this fair funding review completed.

There have been comments from the LGA, which supports the fact that the fair funding review needs to be done. It makes a very good point that there needs to be enough time to allow formal consultation with local authorities, but I cannot believe that, after five years of working on this, that could not be done fairly quickly. When the review does happen, it needs to consider both the data and formulae used to distribute funding, and the Government need to ensure that overall local government funding is sufficient when the new-needs formulae are introduced. That will ensure that no council sees its funding reduced and that there are transitional arrangements for any business rates reset. I beg to move.

[Lord Shipley (LD)]

My Lords, I think that these are three very important amendments, and my name appears on Amendment 172. It goes without saying that the fair funding review has been undertaken for too long and that it is reasonable that within one year of this Bill being enacted the publication of the fair funding review should happen. I also think that the other amendments are very important, but Amendment 87 really matters because it says that

“a CCA may request that the Secretary of State publishes an assessment of their funding, including in relation to any new functions”.

In other words, is the right amount of money being given to undertake the tasks which the CCA is due to undertake?

All of this relates to the amendment in the names of my noble friend Lord Scriven and myself that relates to fiscal policy. There is an issue that we need to debate about fiscal policy and the powers of CCAs—we have the concept now of “trailblazer authorities” and I think the trend is a good one. Nevertheless, I want to be reassured that Ministers understand that local authorities cannot be expected to undertake things, and nor can CCAs, unless the local authorities or CCAs are able to fund them. For that reason, all three amendments in this group seem to me to be particularly important.

Levelling-up and Regeneration Bill

Debate between Baroness Taylor of Stevenage and Lord Shipley

Committee stage
Wednesday 22nd February 2023 Lords Chamber

[Lord Shipley (LD)]

My Lords, this could be a brief debate on this group of amendments. I agree with the noble Baroness, Lady Hayman of Ullock, in her conclusions on missions and metrics—and I shall come back to that in a moment. I also agree entirely with what the noble Lord, Lord Stevens, said a moment ago. I hope I quote him correctly, but I think he said, “The Bill will be useful if it forces a focus on the means of delivering levelling up”. That was particularly helpful, because it is really what these amendments in this small group are about.

In moving Amendment 10, I shall speak also to Amendment 58, to which I have added my name, and I want to support Amendment 48. There has been a lengthy debate on missions and metrics, the existing and the new ones. When I read the White Paper and then the Bill for the first time, particularly the missions and metrics, I concluded that we had to start with how outcomes would be evaluated. The metrics as set out will in most cases be impossible to interpret in the context of levelling up because they cover too large a spatial area. We need to know what exactly needs levelling up and where.

As an example, I take bus services, in the context of services in the past year being cut by 10% across the country. Yet in the document about measuring the progress in levelling up, in figure 16 there are mentions of buses—but it always assumes that there is a bus. It is about whether the bus is running late or not and whether you can get to work by bus on time, whereas the issue is actually whether there is a bus at all that will get, for example, a student in a school doing a T-level to the employer providing the 20% of work experience required for that T-level.

I concluded very early on in considering the Bill that we have to define the Bill’s use of the words “geographical” as well as “disparities”. A lot has been said about “disparities”, so I shall concentrate on “geographical”. Many statistics exist now, but not all the statistics that we would like to have. Some of those statistics that are available now are national, while some are regional and some are local, depending on which body produces them. I propose that we need to assess outcomes with independent assessment of what happens at a very local level, hence my suggestion of using area postcodes—or the first few digits, such as in mine, which are NE3. You cannot get it down to a street level, I concede, and I also concede that another way of addressing the issue is, as the noble Baroness, Lady Hayman of Ullock, said, by doing it by council area and council ward. You could do it by council ward: 40 years ago we were doing assessments and metrics of this kind at a ward level in Newcastle upon Tyne. Most local authorities were able to produce evidence like that.

We have to be much clearer about how we are going to assess outcomes, for we have to do outcomes—it cannot just be about missions. How else will we know that levelling up is actually happening? I have a proposal for the Minister, which is what the noble Baroness, Lady Hayman of Ullock, ended up saying. The Government should take back all the missions and metrics that they have put in the Bill’s documentation and then add to it everything that has been recorded in Hansard in all the excellent contributions that have been made. Then they need to reissue all those missions and metrics by the time we reach Report, which, because of recess dates, will be some weeks hence. I have absolutely no doubt that the department can easily do it in the time before we get to Report. I beg to move.

[Baroness Taylor of Stevenage (Lab)]

My Lords, it is rather a shame that this Bill appears to have become a bit of a Christmas tree Bill, with everything hung on it. As my noble friend Lady Hayman has said, in truth it is three Bills—a levelling-up Bill, a planning Bill and a structure of local government or devolution Bill. In truth, it would have been better had it come forward in that way.

If the Bill is to be true to its title as a levelling-up Bill, it must surely take the serious aspects of regional disparities as essential to making the Bill work. The amendments in this group—I support the amendment proposed by the noble Lord, Lord Shipley, as well—are tabled to ensure that the geographical differences between communities are properly assessed so that a baseline can be established and success then measured. The right reverend Prelate the Bishop of Leeds said that without evaluative processes in the Bill they are just aspirations, and I agree. We can have as many dreams as we want about what might happen but, if we do not actually say where we are trying to get to, it is like setting out on a journey without a destination in mind. You do not know where you are going to end up, and that is really key.

The evidence on disparities between and within communities in the UK is irrefutable. The Government’s own figures show that 37% of disposable household income in the UK went to just one-fifth of individuals with the highest incomes, while only 8% went to those with the lowest. The Equality Trust has demonstrated just how unequally wealth is spread across the UK, with the south-east having median household wealth that is well over twice that in the north of England. It is true to say that some of this is driven by property wealth, but with the north-east, Wales, Yorkshire and the Humber and the east and West Midlands at less than half the wealth of London and the south-east, the impact on economic opportunities is stark. The Equality Trust research states that the UK has the highest level of income inequality than any other European country other than Italy.

The right reverend Prelate the Bishop of Leeds referred to the need to have discrete attention paid to the most serious causes of inequality, which is absolutely correct. We had a debate under the previous group of amendments around health inequalities. Those key areas of disparity between our regions are stark. The Health Foundation shows, for example, that a 60 year- old woman in the poorest areas of England has a level of diagnosed illness equivalent to that of a 76 year-old woman in the wealthier areas. Children in poorer areas are much more likely to be living with conditions such as asthma and epilepsy and, as they get into their 20s, with chronic pain, anxiety and depression—and for the over-30s in those areas there is the prevalence of diabetes, COPD and cardiovascular disease. There are demographic differences, too, with people from ethnic backgrounds all having higher levels of long-term illness.

We have already commented on the missing health disparities White Paper. It is terrible that that has been scrapped, because it would have made the assessment of levelling-up needs in relation to health far easier. We need to find out from the Minister what has happened to that health disparities White Paper. We will continue to support work which means that the Bill will show how levelling up will tackle health inequalities.

There are many areas of disparity. I shall also speak about educational attainment. While educational attainment in London and the south-east outstrips much of the rest of England, evidence from the Institute for Fiscal Studies shows that a 16 year-old’s family income was more than four times as strong a predictor of GCSE attainment than their local authority of residence. Both the Sutton Trust and the Education Policy Institute have raised concerns that the pandemic has seen a widening of that educational attainment gap and that that has a lifelong impact on young people. I noted the Minister’s comments on this, but it is hard to see how the current lack of a fair funding system and the regressive nature of council tax will not continue to build in the inequalities that disadvantage those young people. As an example, I was very pleased to see that the Mayor of London used the increase in business rates he had had, which most areas of the country may not benefit from, to provide free school meals for all primary schoolchildren just this week.

As well as disparities between regions, it is important that the Bill recognises that there are also stark contrasts within areas. My noble friend Lady Hayman’s amendment refers to this. Even in London we have the classic examples of increasing levels of inequality as you go along the route of underground lines. This means that, on all measures—economic, health, education and well-being—there are great disparities. If we take the line between Kensington and Barking and Dagenham, we can see that the disparity grows as we go along that route. Similar disparities apply all across the south-east. Even in my own area, the county council division I represent has a difference of nine years in life expectancy from another area in my borough which is just three miles away. These differences are very stark.

I was very pleased to hear the noble Lord, Lord Shipley, talk about bus services. The lack of bus transport in some parts of our country is a real issue, and it affects particular groups of people who do not have access to other forms of transport—to name some, the elderly, students and those on low incomes. It effectively places them under a curfew and stops them having access to all the opportunities of work, school, college, hospital and health access, and social and welfare opportunities that they could take advantage of. It is a really big issue, depending on where you are.

I loved my noble friend Lady Hayman’s example of one bus a week. Obviously, in Cumbria, two buses a week would get us closer to London services, and that shows the difficulty with using faulty metrics: it is not helping anybody much to have two buses a week. I remember discovering, on my early visits to the Local Government Association here in London, that there was a bus literally every three minutes between Victoria and Westminster, which takes about 10 minutes to walk, if you can walk it. It was a revelation to me. Even 28 miles away, where I live, that is not the case. There are big differences and regional inequalities in those services.

I listened with interest to the powerful speeches earlier on housing, another area of inequalities between our regions, but I fear we would probably be here even later into the night if I started on housing. I shall just say that the Housing First provision we have made in my own area—where we put a roof over the head of someone who is street homeless first, in purpose-built accommodation, and then provide a package of complex-needs support—is making a real difference. That probably cannot be done everywhere, but these things make a difference and start tackling the real inequalities between our areas.

I hope the examples I have used, on the economy, health and education, demonstrate how important it is to be able to effectively measure the progress of levelling up if we are to be able to truly demonstrate its impact. The amendments in this group are key to ensuring that the Bill recognises the importance of the evaluation process, including the independent oversight which has been the subject of previous discussions in our first session on the Bill. I hope we can persuade the Minister—I know she has a lot to think about on the Bill—to reconsider some of those issues. If the Bill is truly to meet the aspirations of its title as a levelling-up Bill, we need to think about how we tackle those regional disparities.