Localism Bill

Baroness Valentine Excerpts

Tuesday 7th June 2011 Lords Chamber

[Baroness Valentine]

I declare an interest as chief executive of London First, a not for profit business membership organisation that includes property companies, energy providers, retailers and others who may have an interest in the practical implications of this Bill.

I support the Government's philosophy of empowering individuals and communities. I also support policy that brings growth and jobs. One of the biggest challenges is to marry these two things. I feel a responsibility, when considering this Bill, to endeavour to do that.

This Bill is just part of the localism picture. The Government are letting a thousand flowers bloom. A review of local government finance is expected, as is the reform of other governance structures such as local enterprise partnerships, enterprise zones and more besides. Like the right reverend Prelate the Bishop of Norwich, I too am reminded of the “Yes Minister” series and the cautionary response of Sir Humphrey Appleby to a new idea from the eager Minister: "That's very brave, Minister”.

The carrot of local government funding reform is dangled elsewhere. However, new financial responsibilities on local authorities, such as the costs of local referenda and EU fines, will be all too tangible. Prospective local referenda are a serious concern in London. They are expensive—between £5 million and £12 million each—and too low a threshold might allow for abuse of the system. I share the concern of the noble Lord, Lord Berkeley, about whether a referendum calling for free Tube rides would gain popular support. Probably. Would the mayor be able to agree? Probably not. Given that referenda are advisory, they would seem a very expensive pressure valve if let off too frequently or too freely.

I also remain concerned about how much-needed local infrastructure is to be funded and built. The public purse is already stretched, but this Bill suggests that a slice of the community infrastructure levy be passed straight to neighbourhoods. This is a worrying fragmentation of a key source of investment, which should be targeted more effectively at broader strategic priorities, leveraging private sector investment.

I support other efforts to drive regeneration and growth. Devolving more focused planning governance—as the Bill proposes for the mayoral development corporation in the Olympic park, for example—is welcome, but good governance is no supplement for poor funding.

The concept of neighbourhood is an important part of this Bill. We should be clear that a neighbourhood is not automatically synonymous with residents. Bloomsbury, for example, has residents, educational institutions and businesses, all of which should have a say in formulating a neighbourhood plan. The Bill has already made some progress on this front. Government changes now allow for businesses to get involved in shaping the plan by sitting alongside residents on a neighbourhood forum. I welcome this.

As the saying goes, however, there should be no taxation without representation. Businesses pay their fair share through business rates, and should be given fair representation if the issue of a neighbourhood plan goes to a ballot. I welcome pilot schemes that inform how best this might work. Splitting communities into neighbourhoods or business neighbourhoods, however, misses the point. Communities are complex and not easily pigeon-holed. In some cases they are home to critical pieces of national infrastructure—airports, power stations or motorways, for example. While the Bill exempts this vital infrastructure, it does not clarify whether necessary associated development should be subject to neighbourhood planning. We need a process that accounts for the make-up of any given neighbourhood as well as allowing that community as a whole to approve or reject a plan.

I make one final plea to the Minister for a rigorous review process to be built into the Bill. There are so many “don't knows” across this policy area. Outside this Bill, local government funding is unresolved. Governance structures such as LEPs and enterprise zones are unformed and untested. Under this Bill, we genuinely do not know how neighbourhood plans will work in practice. For example, they have no time limit, but must be at least as permissive as local plans. If a local authority changes tack, must all neighbourhood plans be redrafted, with further referenda? Similarly, the community right-to-buy scheme is based on sound principles, but must be sensibly constrained to avoid vexatious attempts to stop or delay development.

Joining up government may be a thankless and endless task, but the formation of a national planning policy framework, including a presumption in favour of sustainable development, will give clarity to planning policy and is welcome. It should perhaps be mentioned in the Bill. On the other hand, the Government have embarked on yet another overhaul of the planning system before the property market has fully shed the overhang of the credit crisis. The coalition agreement put growth at the top of its priorities, and while I support the aspirations of the Localism Bill we must not allow well meant but poorly tested legislation to unhinge our fragile recovery. We should keep this Bill under review, pilot more difficult aspects of implementation and be willing to reverse measures that generate unintended economically damaging consequences.

To return to Sir Humphrey Appleby's words, being “very brave, Minister” is all well and good, but let us not be foolish.