Oral Answers to Questions

Debate between Clive Betts and Brandon Lewis

Monday 16th March 2015 Commons Chamber

[Brandon Lewis]

National policy makes it clear that planning should promote the retention of community facilities, including meeting places such as village halls, but I would be happy to meet my hon. Friend and look at the details of a case on which I know she has campaigned hard with her local residents.

[Mr Clive Betts (Sheffield South East) (Lab)]

T6. Will the Secretary of State confirm that the Government, if they remain in power after the election, intend to carry on with the same level of year-on-year cuts in the next Parliament as they have applied in this Parliament, and if so, will he or the Minister of State seriously consider whether in that situation it will be possible for all councils to remain financially viable and continue to deliver their statutory services?

Oral Answers to Questions

Debate between Clive Betts and Brandon Lewis

Monday 2nd February 2015 Commons Chamber

[Brandon Lewis]

My hon. Friend makes a very good point. When I visited him not too long ago, he showed me Labour plans for places to have the ability to grow outwards. The review says that some places illustrate these issues to a greater or lesser extent, and that

“not all green belt land is of high environmental or amenity value”.

I suspect my hon. Friend’s residents would disagree with that. I know he has campaigned hard on this issue. It is vital to ensure that we continue these strong green-belt protections. Ultimately, these matters must be locally decided by local people for their local area.

[Mr Clive Betts (Sheffield South East) (Lab)]

The Minister will be aware that paragraphs 17 and 111 of the national planning policy framework contain a commitment to “brownfield first”. When the Select Committee did its recent inquiry into the operation of the NPPF, it received more complaints about one issue than any other—concerns about inappropriate speculative applications, not just in the green belt but in green fields in general. Will he agree to look very carefully at the Select Committee’s recommendations to speed up the process of local plan adoption and to ensure that those local plans have a higher percentage of brownfield within them? There is real concern about this issue on both sides of the Chamber.

[Brandon Lewis]

The short answer is yes. The hon. Gentleman has made a good point: it is important to protect both green-belt and greenfield land. Some interesting cases have arisen, particularly one in the last couple of weeks, in which green-wedge land was protected by inspectors. However, it is also important for local authorities to deliver local plans, and it would be even better to see some more neighbourhood plans.

communities and local government committee

Debate between Clive Betts and Brandon Lewis

Thursday 18th December 2014 Commons Chamber

[Mr Betts]

The specific regulations on permitted development rights were not about offices, but about shops and banks. However, we did receive some evidence on that. Concerns have been identified, particularly in London, about the loss of business and office space to residential use.

I want to make two points about town centres. First, local authorities—I am a great localist—did not get the message that retailing was changing fundamentally with online shopping, and did not change their local plans quickly enough to respond to that, which is a big issue. Secondly, the Committee strongly made the point that the response to such rapid changes has to be properly planned for by making changes to local plans. If, on a pepper-potted basis, we allow a change of use from shops and banks to residential, we might well end up with less ability to reconfigure town centres or to change areas wholesale from retail to other uses. That was one of our big concerns. There should be a plan-led approach to changes in retailing, not pepper-potting by permitted development.

[The Minister of State, Department for Communities and Local Government (Brandon Lewis)]

I want to add to what all Members have quite rightly said in congratulating the Select Committee and its Chairman on putting together a solid and sound report. They have my and the Government’s thanks for the efforts that they have clearly put into taking evidence and working on the report.

I particularly note the importance given to neighbourhood plans, which has been mentioned. I agree that they are hugely important, which is why we are speeding up the process and putting another £22 million into them. It is good that, as has been outlined, the general view is that the NPPF is working. It has now delivered 240,000 new planning permissions in the past year.

I assure the Committee that the Government and the Planning Inspectorate will look at the report’s 29 recommendations as part of our desire to improve the planning system—we can speed it up, while ensuring that we further enforce localism and local decision making, which is the key to positive development in future—but does the hon. Gentleman agree that local plans are hugely important, and that local authorities should be getting on with delivering local plans as well as neighbourhood plans to make sure that they have real local power over planning? Like me, he will be interested to see how local government reacts to and takes on board the eight recommendations specifically directed at local government. I again thank him for the report.

[Mr Betts]

Last time the Government agreed to 30 of our recommendations. It will be difficult to match that this time as we have given them only 29 recommendations, but I am sure that they will be grateful to receive one less.

It is absolutely right that the Government should take away the report and consider it. We are saying that the NPPF has been a success in general, but we hope that the Government will recognise that there are some problems, particularly about issues—the development of local plans, the five-year supply of housing land and the relationship between neighbourhood and local plans—that need to be addressed to improve the system that they set up. I hope that the Government will respond positively, and we look forward to discussing their response to our recommendations when it is made.

bill presented

Lords Spiritual (Women) Bill

Presentation and First Reading (Standing Order No. 57)

The Deputy Prime Minister, supported by the Prime Minister, Secretary Nicky Morgan, Mr Oliver Letwin, Greg Clark, Mr Sam Gyimah, Jo Swinson and Tom Brake, presented a Bill to make time-limited provision for vacancies among the Lords Spiritual to be filled by bishops who are women.

Bill read the First time; to be read a Second time on Monday 5 January 2015, and to be printed (Bill 143) with explanatory notes (Bill 143-EN).

Oral Answers to Questions

Debate between Clive Betts and Brandon Lewis

Monday 15th December 2014 Commons Chamber

[Brandon Lewis]

I thank my hon. Friend for standing up to make sure that the process is followed correctly. Obviously, the planning process is quasi-judicial and planning authorities must go through the full process. I will make sure that the chief planning officer keeps an eye on what is happening and ensures that the process is followed, and I will keep an eye on the case myself.

[Mr Clive Betts (Sheffield South East) (Lab)]

As I understand it, we will get an announcement later this week about the local government financial settlement for next year, which could involve a 10% reduction in local authority spending. That is as big a cut in one year as central Government Departments have faced throughout the whole of this Parliament. Will the Secretary of State, in the interests of transparency, give an assurance that he will come to this House and make an oral statement, rather than hide behind a written statement as he did last year?

Oral Answers to Questions

Debate between Clive Betts and Brandon Lewis

Monday 8th September 2014 Commons Chamber

[The Minister of State, Department for Communities and Local Government (Brandon Lewis)]

Yes, I would be very happy to meet my hon. Friend.

[Mr Clive Betts (Sheffield South East) (Lab)]

T4. Last week, in a statement on child exploitation in Rotherham, the Home Secretary said that the Secretary of State was “minded” to commission an independent investigation of what had happened there. Will the Secretary of State update the House on his thinking, and tell us whether it would be within the remit of those conducting such an investigation to look into the accountability of officers who work for Rotherham now or have done so in the past, and their responsibility for anything that happens in this regard?

Local Government Procurement

Debate between Clive Betts and Brandon Lewis

Thursday 3rd July 2014 Westminster Hall

[The Parliamentary Under-Secretary of State for Communities and Local Government (Brandon Lewis)]

It is a pleasure to serve under your chairmanship today, Mr Bayley. I thank the hon. Member for Sheffield South East (Mr Betts) and congratulate him on securing the debate. He is quite right: we absolutely welcome the Select Committee’s report and endorse its view on the need for councils to improve the way in which they procure goods and services. The hon. Member for City of Durham (Roberta Blackman-Woods) made a good point about the number of Members who have joined us for this debate this afternoon. I appreciate that there is also an important debate in the Chamber, but this is an important matter, and it is good to have the chance to air some issues, discuss good practice, which I will touch on, and highlight how important procurement is and what local government should be doing to focus on it.

I will resist the urge to go too far down the road that the hon. Lady tempted me down at the end of her speech, when she mentioned social values and jobs. As meritorious as those issues are, and as important as it is that councils are aware of them, going in that direction would tempt us towards having some sort of central governance over what those values should be, which is the very opposite of the localism that I believe in. It has to be for local authorities to decide what the right values are for them.

We agree with the Communities and Local Government Committee that councils, with the support of the Local Government Association, should absolutely take the lead and have the responsibility for delivering on the procurement agenda. Councils are uniquely placed—geographically as well as structurally—to understand the needs of their residents and communities and to be locally accountable to them for their actions and decisions.

The hon. Lady gave some figures, and just to put things in context, this is a hugely important area, not least because last year the local government sector spent £57 billion on procuring goods and services. As she said, that accounts for roughly a quarter of all public sector procurement. Councils are often one of the largest spenders and one of the largest employers in their local economy. By being more astute and imaginative in how they use that spending power, they can do much more to ensure that they achieve greater value for money and help their local economies to grow. When we talk about savings, most sensible business people, hearing that local government spending is £57 billion, would come to the conclusion straight away that just a little improvement in procurement could bring a small percentage saving, which would be a very large amount of money.

I accept that the Government have an important role to play, at least in incentivising service transformation and encouraging innovation. As set out in our evidence and response, we have already introduced a range of key public sector procurement reforms that will open up procurement opportunities to both small and medium-sized enterprises. As the hon. Member for Sheffield South East said, the FSB has targeted those opportunities. Sometime last year, I was on a platform with the LGA and the FSB talking about the added local benefit that can be brought particularly by small businesses but also, as he rightly says, by voluntary and community organisations—the third sector as a whole.

The Small Business, Enterprise and Employment Bill was introduced into the House on 25 June. It will help to deliver our commitment to build a stronger economy by supporting small businesses. The Bill contains a number of measures intended to improve public sector procurement, which will, subject to consultation, ensure that procurers run an efficient process, accept electronic invoices, do not charge for bid information and do proper pre-market engagement.

The Bill will also make it easier for small businesses to raise concerns about public procurement practices and cut down on red tape by ensuring that regulations affecting businesses are reviewed frequently and remain effective. It will deter employers from breaking the national minimum wage legislation by creating a power to allow the penalty for underpayment to be imposed on employers on a per-worker basis, and it will stop the abuse of zero-hours contracts—the hon. Member for City of Durham mentioned them, and I shall come back to this point in a moment—by preventing the inclusion of exclusivity clauses, which are used to prevent individuals from working for other employers, even if the current employer is offering no work.

Other key reforms, which will be introduced later this year, include the abolition of the pre-qualification questionnaires for contracts below the EU threshold—I note the comment by the hon. Member for Sheffield South East, and I will come back to that in a moment—and the requirement for public bodies, including local authorities, to use Contracts Finder, which is a national procurement portal.

We are developing a standard pre-qualification questionnaire—for contracts that are above the EU threshold, I stress—and councils will be encouraged to use that. The aim is to ensure that businesses no longer have to complete the countless different versions that currently exist. That will make it easier for small businesses and voluntary organisations to bid for contracts and increase collaboration across authorities.

I noted the hon. Gentleman’s comments and the Select Committee’s points on pre-qualification questionnaires. I can understand why local authorities like them, but if we want to get more small businesses involved, I think the risk of having more tendering is a good risk and one that could actually be to the benefit of local authorities. If they want to reduce that risk, they can do that by getting their tender documentation right in the first place.

[Mr Betts]

Clearly, this is one of the few areas of specific disagreement. We picked up from small businesses that if suddenly they found that they were putting a tender in along with 20 other organisations, 19 of them would be wasting their time. As long as it is a standardised and simple pre-qualification questionnaire to thin out the number that will tender, it could be greatly to the advantage of small businesses in particular and reduce their costs overall.

[Brandon Lewis]

Of course, if councils are giving an up-front line on their procurement process, that gives companies more time to plan and, particularly for small businesses, allows them to decide whether it is right for them to tender and whether they want to do so. However, most small businesses also tender for business in the private sector, where they will be used to being involved in competitive tendering for work that they want and going up against anything from one to a countless number of competitors. That is how the market works. From my experience of working in and talking to businesses—small, medium and large, but small businesses in particular—I know that another piece of paper from an authority that they have to fill in before they even start to tender is just another layer of bureaucracy, red tape and paper that they do not want.

We have been providing support for councils by encouraging them to use Contracts Finder now rather than waiting for its use to become mandatory. We have pointed out the benefits that it can bring for both procurers and suppliers, because it opens up procurement opportunities and makes them transparent. We have been encouraging councils to start using the current simplified pre-qualification questionnaire for contracts that are, I stress again, over the EU threshold. The hon. Member for City of Durham made a good point about the myths that exist about what can be done in a whole range of areas that local authorities deal with. I will come back to that.

We have been encouraging the improvement of commissioning skills among local authority employees—a very important issue—by offering access to the commissioning academy. We have been sharing expertise by offering access to courses and learning tools provided by the Crown Commercial Service. We are providing £16.5 million of funding over two years to change behaviour and perception in respect of tackling fraud in local authorities, including in local government procurement, regardless of how small it may be. We should bear in mind the fact that overall fraud and error in local government costs more than £2 billion, but that does not necessarily involve procurement. However, it is still an important matter, and we need to ensure that we are on top of it. We are providing guidance on social value considerations and the pre-procurement market engagement process.

Following the success of last year’s transformation challenge award, which was hugely oversubscribed, we have launched another one for 2014 to 2016, and £320 million will be available over that period. The aim of the award is to encourage and reward local authorities that are able significantly to improve their services so that they better meet the needs of local residents. That can include making improvements to and transforming how services are commissioned and procured through greater sharing and efficiency, such as integrated commissioning in shared financial planning, testing new tools and pooling budgets. There can also be joint procurement of things such as ICT, and services can be extended to nearby local authorities. In addition, we have been working with the Local Government Association on its draft national procurement strategy and supporting the Chief Fire Officers Association’s national procurement group in developing a national procurement strategy.

However, the central Government cannot deliver better local procurement ourselves, nor should we try to. That can only lead to more red tape, bureaucracy and top-down control, which no one in local government or the small business sector wants. What we can do and should aim to do is to create the right conditions for it by eliminating unnecessary red tape and removing barriers to local innovation. As the Select Committee recognised, it is then for local authorities themselves to take the initiative.

We do see examples of good practice throughout the country. We have time, so I will place on record some good examples that we know exist. Halton borough council has abolished pre-qualification questionnaires for all its contracts below the EU threshold. In Norfolk, my home county, the county council no longer uses them for contracts under £100,000, and a number of other local councils do not use them for low-value contracts. Oxford city council had the idea of running a programme of workshops specifically targeted at small and medium-sized enterprises. That is about helping them on how to tender for business. Herefordshire council has a programme of opportunities and events for current and potential suppliers, which it developed as a way of informing, and maintaining strong relationships with the local supply market.

A number of local authorities have developed local procurement hubs, such as Supply Hertfordshire, Procurement Lincolnshire and the East Sussex procurement hub. Those hubs cover large areas. There are also hubs that cover even larger areas, such as The Chest, which covers much of the north-west. Across the country, there are also a number of multi-authority purchasing and public buying organisations, such as the Yorkshire Purchasing Organisation, which has already helped North Yorkshire county council make savings of about a third of a million pounds by buying social care equipment to help people with daily living. That was done through the organisation’s assistive technology contract. The Central Buying Consortium can also help councils deliver savings. For example, the royal borough of Kingston upon Thames, which I visited today, achieved 26% total cost savings on a £32 million project to expand its primary schools by using a public buying organisation. That was a substantial saving for that community.

However, despite the examples of good practice, too many local authorities still have a long way to go. They need to go further in saving money and doing more for less through better procurement. Councils need to adopt a strategic approach to their procurement and use their collective buying power to best effect. They need to ensure that their procurement officers have the necessary skills and that they take advantage of the learning opportunities and tools that are available to them. They also need to find ways of sharing best practice around local government. That is a role not just for councils, working with their partners, but for the Local Government Association.

All too often small firms are locked out of local government contracts, or at least perceive and believe that they are, by councils adopting over-complicated procurement processes. Councils need to be sure that they are doing everything they can to remove those barriers. I always say to councillors, and I will say it again on the record today, that if officers are quoting to them regulations, guidance or EU bureaucracy that is getting in the way, they need to ensure that that is correct. Let us bust those myths. Let us ensure that councillors are challenging the officers and getting to see what is in the way to make sure that it is real rather than perceived. That will mean that we can start to open things up even more.

There are many simple things that councils can do to improve their procurement practices. For example, in addition to abolishing unnecessary requirements to complete a pre-qualification questionnaire for contracts below the EU threshold and publishing all their tenders and contracts online, they should build up a supplier network and engage with suppliers.

That is related to one of the myths that I would like to bust and be clear about. EU procurement rules apply only once a council has made a decision to procure goods and services. Early engagement with suppliers can mean that innovation and co-design are built in from the outset, leading to better services. Creating and publishing a future pipeline of commercial activity so that suppliers can plan ahead is another positive step that councils can take. They can publish details of contracts that have been awarded so that contractors can not only see what has happened before, in order to get an idea of what will be expected of them in the future, but view subcontracting opportunities.

Councils can ensure that they have robust procedures in place to tackle fraud. We need to ensure that we keep fraud low and aim to drive it to zero. An important point, which relates to one that the hon. Member for City of Durham made, is that they can stop gold-plating on equalities. Equalities impact assessments are not, and never have been, a legal requirement. Officers can use their judgment to pay due regard to equality without resorting to time-consuming, often bureaucratic tick-box exercises at the end of a decision-making process—the very thing that can put people off. Councils can break contracts up into smaller lots to open up procurement by bringing in more competition on price and attracting some of the smaller firms that prefer to go for smaller contracts.

Better procurement, the sharing of senior management teams, service transformation, asset rationalisation and the driving of local economic growth all contribute to the overall improvement in local government productivity. Some councils—I have given just a few examples, but there are many more—have already made considerable progress in improving their procurement processes, making it much easier for businesses to bid effectively for contracts. However, I am not yet convinced that all local authorities have made the necessary changes, although I am confident, based on its approach to the Select Committee report, that the Local Government Association and its national procurement strategy can play an important part in helping driving forward the changes. Nationally, we need to keep talking about it in order to motivate and encourage local authorities, but it is vital to remember that it is for local authorities to deliver.

Local Government Finance

Debate between Clive Betts and Brandon Lewis

Wednesday 12th February 2014 Commons Chamber

[Brandon Lewis]

I suggest that the hon. Gentleman should look at spending power, which is what the Local Government Association prefers to use, because it outlines the amount of money and the way local councils have influence and control. It is the entire spend that a local authority has; it does not just single out one small part of its funding. That is an important change in how local government finance has worked, as we are now moving to a system in which more and more of the money is in the entire control of local authorities with their own autonomy.

[Mr Clive Betts (Sheffield South East) (Lab)]

rose—

[Brandon Lewis]

I will give way to the Chair of the Communities and Local Government Committee before making some progress.

[Mr Betts]

I draw the Minister’s attention to what he told the Committee on 27 January. He said that the system is changing from one based on allocation according to need, which now will be reflected merely in the base business line rate in 2013-14. Basically, the Government will distribute grant according to local authorities’ ability to raise their own resources. Is that not a fundamental change?

[Brandon Lewis]

It is a total change away from the begging bowl system to a reward-and-incentive-based system for local authorities.

Community Budgets

Debate between Clive Betts and Brandon Lewis

Thursday 6th February 2014 Westminster Hall

[Brandon Lewis]

The right hon. Gentleman makes a fair point, and I have had experience of this. One really good example of data sharing involves Cheshire fire authority, which has put a lot of time and effort into breaking down barriers, getting to the root of what really can be done, and getting on with it. It is useful in a debate such as this for Members from all parties to spread the word—when people read Hansard as bedtime reading, or over the weekend—so that people appreciate that such things can be done if they want to do them. The Act needs to be read properly, so that it is not misunderstood or misinterpreted by anybody in an authority.

Little things, simple things, can make a difference. In Hertfordshire, a group of people consisting of representatives from the fire authority, the county council, the police and social services works together in the same room. That has broken down barriers and has got through to people, enabling them to understand things better and allowing for much better data sharing.

Whether barriers are real or imagined, we have committed to improve data sharing where it will improve services for residents. We are setting up a centre of excellence for information sharing and exploring options for legislative changes.

The pilots also told us that their attempts to work with partners were sometimes hindered, as Members have outlined, by uncertainty about future funding. As a result of these concerns, the Treasury is working with Departments to give local public services the same long-term indicative budgets as Departments, from the next spending review. One key characteristic of the whole-place community budget pilots—why they succeeded where past attempts did not succeed as well, or failed—was the close co-operation between central and local government. As the Select Committee’s report makes clear and as the hon. Member for Corby said, the pilot areas highlighted the importance of Whitehall secondees working alongside them, helping to change the way central and local government work together, and helping to bridge understanding of how both sides work.

[Mr Betts]

I welcomed the Treasury’s looking at whether it can give local authorities more of an indication on medium-term budgeting than they currently have. As part of that process, will it also be the Treasury’s job to look at how far, during the spending review period, Departments will be expected to contribute a certain part of their budget to the community budget process?

[Brandon Lewis]

The Committee Chairman tempts me to prejudge what the Chancellor may decide, but he will understand if I resist him for now. The Treasury is looking at the issue and understands the importance and benefits of long-term work and giving budgets in the way that I have outlined.

[Brandon Lewis]

I will not hold the hon. Gentleman to his promise about that being his last intervention; I would not want to curtail any further insights. He does not make an unreasonable point. I will mention the important issue of social care and where it may lead in a moment; it is linked in respect of the better care fund, for example. However, as I said in opening, it is true that if we can have a better service up front, people might not necessarily need emergency and hospital care. That would be better for them and mean lower costs for their areas. The Committee Chairman mentioned the potential for being a midwife; if my Department in its current format ends up being the midwife to public services working together in future, I will be proud of what we have achieved in our time in office.

The pilot areas highlighted the importance of the secondees. The Government are committed to the approach, which is why we created the public service transformation network, which has 30 officials and counting seconded from around Whitehall and local government. They are now working with the nine new areas, but they are not the be-all and end-all. It is a rolling programme. The secondees are helping the areas to learn from the pilots and quickly create a better outcome for service users; it is an evolution of what the pilots delivered.

Some areas are picking up themes similar to the ones the pilots picked up. Each area has its own focus, depending on its circumstances and the needs of its local residents: localism in its true sense. In Bournemouth, Poole and Dorset, the focus is on integrating and improving services for elderly residents and for those with mental health or learning problems. Better support for those seeking employment or training is the priority for partners in Lambeth, Lewisham and Southwark, and for the six boroughs within the West London Alliance, which are working superbly well together to deliver there.

I have already mentioned Surrey’s plans to integrate local emergency services, as Northamptonshire has done, but it also wants young people in their area to receive better training and education. In Swindon, partners want to create safer communities and, in particular, give better and more co-ordinated support to victims of domestic abuse. Residents in Bath and north-east Somerset could benefit directly, with more money in their pocket, thanks to the work of local partners and the Department of Energy and Climate Change to improve energy efficiency in local homes.

I have barely begun to scratch the surface of the work going on in those places. I urge colleagues to take a close look at those projects when the network’s website is launched in just a few weeks’ time. People might see something that they think should be happening in their own constituency; that touches on the point raised by the right hon. Member for Greenwich and Woolwich (Mr Raynsford) on sharing data and best practice. Better services are not the preserve of people living in pilot areas or in one of the nine areas that are working intensively with the network. Those areas are there to share best practice. We want to learn from them and to see other areas move, too.

I agree completely with members of the Select Committee that local areas should not be held back or discouraged from proceeding with service transformation. Much of that can be done without any assistance from central Government, because it simply requires local partners to sit down, forget their differences and focus on the outcomes for residents. Partners in Staffordshire, Leeds city region, Blackpool, Tyneside, Cornwall and Suffolk are getting on with plans to improve services for residents, and others can do the same. Much can be learned from the excellent work in Suffolk, where the county council is working with district councils to share management and services. If there are barriers, gather evidence and let us know. We have already shown that we are ready and willing to aid the process by changing the way government works.

I want specifically to address the idea that the work of the community budget pilots is somehow unconnected with other important areas of policy or that big Departments are not engaged. We must not get caught in the trap of thinking of community budgets and service transformation as an initiative cut off from other Government projects, work and reforms. The principle of neighbourhood and whole-place community budgets is simple; it is about partnership working across public services, local and central, to create not just cost-effective services but services designed around people rather than structures and organisations. The same principle is at the heart of the troubled families programme, the integration of health and social care budgets, the pooled local growth fund and many more areas of work; it is not a top-down exercise. We are working closely with local partners and others on the design of the expanded programme.

The troubled families programme, for example, is being extended, as the Select Committee noted, to an additional 400,000 families over five years, with £200 million already committed for the first year in 2015-16. The hon. Member for Corby asked about the assessment of the programme, which is subject to a three-year independent evaluation. Initial findings are due later this year.

On health, it was partly thanks to the hard work and the evidence provided by the four whole-place community budget pilots announced by the Government that we could develop the £3.8 billion better care fund in the spending round. Health and social care services are already working together to ensure that our elderly residents receive the support they need to stay at home and out of hospital. We have also established a network of 14 integrated care pioneers that will, like the community budget pilots before them, work closely with central Government to develop the solutions that others can then adopt. Locally led public service transformation also has the potential to promote economic growth.

Although I understand that the Select Committee and the Essex pilot are disappointed that not all of Essex’s whole-place proposals were adopted—the Essex pilot was particularly commented on—it is possible that such areas can do far more within existing Government policy. Essex has done great work in establishing an employment and skills board that involves local employers and skills providers, and the board’s labour market intelligence has already influenced millions of pounds of capital investment by further education colleges.

A number of the nine new places are reviewing how skills and employment support is provided, and the network is working with the Department for Business, Innovation and Skills, Jobcentre Plus, the Skills Funding Agency and the Department for Work and Pensions. Again, the support is not just for the select few.

[Mr Betts]

The Minister is right to say that the Select Committee drew particular attention to the Essex problem—or the BIS problem, as it should probably be called. He has given a long list of things that Essex has been able to do, but the people from the Essex pilot were clearly concerned when they came to give evidence to the Committee. Will he take the Committee into his confidence and indicate precisely what BIS did when those points were put to it? How did BIS respond? What commitments has BIS given to change?

[Brandon Lewis]

There is still a lot that Essex can do within the abilities and powers that it has been given. We arranged a meeting with BIS directly, which I think has now happened, but I will pass on the hon. Gentleman’s message and ask BIS to respond directly to him on where it is at.

The Government have invited local areas to make public service reform proposals as part of the local growth deals, which are currently being negotiated with the cross-Government local growth team. We have also provided an extra £10 million a year for Jobcentre Plus, working in partnership with local authorities, to help young people find apprenticeships and traineeships. I hope that we can all agree that the focus on better outcomes, which is at the heart of the community budget pilots, is evident across all Departments and all parts of the public sector.

Members asked, “What exactly is there?” The network has 30 staff and a budget of £2 million. The network is accountable to Sir Bob Kerslake, but it reports to Ministers in the Department for Communities and Local Government, the Cabinet Office and the Treasury.

The Chairman of the Select Committee made a point about localism. The community budget pilots, the transformation network and some of the great work being done by councils across the country to bring public services together and to get on with changing how we deliver services for the better—this is what really matters—proves that the power the Government have devolved to local communities and local councils goes way beyond the central process that we had in the past. That is a revolutionary change that, hopefully, local government will grasp and take forward. It would be wrong for us in central Government ever to pretend that we have taken a vow of silence on what we think of certain decisions or on pointing out good examples of best practice for providing residents with the great services that all taxpayers deserve.

Local Government Finance

Debate between Clive Betts and Brandon Lewis

Wednesday 18th December 2013 Commons Chamber

[Brandon Lewis]

My hon. Friend makes a very good point. Kettering is an excellent example of a good Conservative council managing its finances properly for the benefit of local residents, keeping down the cost of living by keeping council tax frozen and providing excellent front-line services, as good councils all over the country are doing.

[Mr Clive Betts (Sheffield South East) (Lab)]

In the June spending round, the Chancellor stated that in future years local government spending would drop not by the 10% to 15% that the Local Government Association said, but by 2.3%. The Prime Minister has repeated that figure. I wrote to him asking how it was calculated, but got a response from the Chief Secretary to the Treasury that did not do that. Will the Minister now explain where that 2.3% figure is in the document and how it is calculated? If it is not in here now, will he write to me, placing a copy in the Library, showing how it has been calculated?

[Brandon Lewis]

I am happy to write to the Chairman of the Communities and Local Government Committee with the figures. He will find that the gap between some of the points the right hon. Member for Leeds Central (Hilary Benn) made and the real figures is explained by the fact that we are interested in how much local authorities have to spend on their residents, not just what they spend on bureaucracy and red tape, through the Government grant.

Local Audit and Accountability Bill [Lords]

Debate between Clive Betts and Brandon Lewis

Tuesday 17th December 2013 Commons Chamber

[Brandon Lewis]

What is important—I think this is what the hon. Gentleman was trying to say in a roundabout way—is to do the right thing, not what might look like the right thing but may not be. Local authorities are subject to the Freedom of Information Act, but I will continue my remarks so that he fully understands the point about how people can get to information.

It is absolutely right that the Government are driving forward the transparency agenda so that auditors have access to the information they want. That is why it is important that if people ask questions, the auditor may gather even more documentation to investigate the issues. That goes further than the Freedom of Information Act, which would require the auditor to provide information it holds but not lead it to seek additional material.

Last week, the Government published their response to the consultation on the transparency code. It set out their intention to make regulations requiring local authorities to publish specified pieces of information, including contract details exceeding £5,000. Local authorities also monitor the delivery of their contracts and are subject to the Freedom of Information Act 2000. The Government consider that a better approach would be for contracts to include provisions that require contractors to assist local authorities in meeting their Freedom of Information Act obligations—thereby satisfying the point raised by the hon. Gentleman. That decision was taken following the Justice Committee’s post-legislative scrutiny of the Freedom of Information Act, which recommended that greater transparency through contracts would provide a more practical approach than extending that Act to companies directly.

[Mr Clive Betts (Sheffield South East) (Lab)]

I have heard what the Minister has said about transparency of contracts, but is he saying that if a local authority goes about formulating a contract in the right way, the public—it is they who are important—could be entitled to as much information about the spending of their money through a contracting process as they would be if the service was delivered by a local authority directly?

[Brandon Lewis]

It is not for me to prejudge a contract that a local authority might agree to, but it is true that people can access the Freedom of Information Act through the local authority, and the auditor can go further in its inquiries to ensure it has all the documents it needs.

[Mr Betts]

That has not answered my question—I was not asking what local authorities should do. If a local authority went about this correctly and formulated a contract correctly, could the public have as much information on the spending of their money through a contracting process as they could if the service were delivered directly by the local authority?

[Brandon Lewis]

In principle, yes, but it is not for me to prejudge how a local authority would contract. If it chose to contract in that way, of course that would be a matter for it. It would be entirely possible.

--- Later in debate ---

[Brandon Lewis]

As I said, the Freedom of Information Act applies to local authorities, but we are not extending it to cover private companies. I am happy categorically to make the point, as I did in Committee, as the hon. Gentleman will see if he looks in Hansard, that we are not going to extend the provision to private companies; it is the local authority that will be accountable. He will have to take that as outlined.

We will issue a revised code of practice encouraging public authorities to include and enforce provisions in contracts to ensure that openness and accountability are maintained by encouraging the release of a wider range of information about contract delivery. This approach will be monitored by the Government and the Information Commissioner. If contractors or public authorities do not comply with this guidance, the Government will consider what other mechanisms might be necessary, including the possible extension of the Freedom of Information Act to service providers.

[Mr Betts]

On a point of clarification, will the guidance apply to subcontractors as well as contractors? In practice, many contracts are effectively delivered by the subcontractors as well as the main contractors.

Business Rates

Debate between Clive Betts and Brandon Lewis

Wednesday 4th December 2013 Commons Chamber

[Brandon Lewis]

Increasing corporation tax will affect all businesses, for the very reason that my hon. Friend the Member for Ealing Central and Acton (Angie Bray) has already outlined. The hon. Gentleman is kind of missing the point.

[Mr Betts]

I presume that the Minister is not ruling out business rates not increasing by the retail prices index next year. If so, will he tell the House where the Government might find the money to achieve a lower increase in business rates? Will it come from local councils, the Exchequer or somewhere else?

Funding for Local Authorities

Debate between Clive Betts and Brandon Lewis

Thursday 10th October 2013 Commons Chamber

[Brandon Lewis]

I will take an intervention in a little while, if I have time.

We heard a number of interventions during the speech by my hon. Friend the Member for Tiverton and Honiton. My hon. Friend the Member for High Peak (Andrew Bingham) mentioned what small councils could do. It is worth stressing—I am happy to put this on the record again—that there are small district councils across the country, and not just in rural areas, running budgets of roughly £10 million or even less. They must look at their situations very closely and consider whether their current format, with their own chief executives, management and silo services, is sustainable. They should consider partnering with other authorities, as around 40 authorities do already, and having shared chief executives and management.

The partnerships between High Peak borough council and Staffordshire Moorlands district council is a fantastic example. My hon. Friend the Member for Bury St Edmunds (Mr Ruffley) talked about Mid-Suffolk district council, and I must say that Suffolk, as a county generally, offers a really good exemplar of the work that can be done. Suffolk Coastal and Waveney district councils are coming together with a shared chief executive. Babergh and Mid-Suffolk district councils and St Edmundsbury borough council and Forest Heath district council are all showing how to come together to make real savings.

The chief executive of a council deal such as Staffordshire Moorlands and High Peak would explain that those kinds of savings can amount to 18% or 20%. When they are running a budget of around £10 million, that is a substantial saving. I argue that small local authorities should be doing that not only because of financial pressure, but because the money could be spent on front-line services, rather than on administration and management.

Several Members mentioned school bus services. I agree that councils should be working very hard to protect front-line services that are important to rural and urban communities. In my constituency of Great Yarmouth, the Labour-led county council has looked at cutting rural bus services, which would mean children having to walk up to 3 miles to get to school, and on major roads with no pathways. That is absolutely unacceptable. It should be looking at the plans that were in place under the previous Conservative administration in order to find the savings it needs and bring in the revenue it needs without slashing those important services. Councils should look at that carefully.

The hon. Member for Penistone and Stocksbridge (Angela Smith) carefully outlined the situation with regard to funding, but we must remember that in the past year councils increased their reserves to £19 billion, the highest level on record. It is important that we also look at options. This Government are not just talking about that; with community budgets we are delivering a transformation in the way services are provided across the public sector, which independent reports show could save this country around £20 billion. Across the country there are community budget pilots, of all political colours, doing some phenomenal work, and that has now been rolled out to a further nine areas.

My hon. Friend the Member for Newton Abbot (Anne Marie Morris) touched on some of the issues relating to education, transport and buses, which I have already outlined. The Chair of the Communities and Local Government Select Committee, the hon. Member for Sheffield South East (Mr Betts), raised some issues about funding and mentioned the 56 councils. I have touched on some of the things that they could be looking at. I am not entirely surprised, although I am still disappointed, that he seems to be making the case for more taxes on people who I think want the cost of living to go down. That is why it is important that we freeze council tax and do not encourage more taxes locally.

[Mr Betts]

The Minister just mentioned reserves. Does he not understand that it is not an issue of rural or urban, or Conservative or Labour? It is about councils looking at the black hole that is coming, as the forecasts show, and which the Chancellor has identified in the spending review, and making prudent decisions on how to spread the money available over a number of years in order to try to do their best to protect services. If Ministers just keep rubbishing that as councils holding on to reserves for their own sake, they do a disservice to hard-pressed local authorities.

[Brandon Lewis]

I am afraid that I entirely disagree. Having led a local council that, before my time, had seen council tax increases of 18% and 16%—they were regularly in the double figures—and in a country where council tax doubled under the Labour Government, I believe that hard-working people think that council tax should be kept low and that councils should be looking at how they spend their money, not just building up reserves and then pleading poverty. If they believe that they are short of money, they should use the reserves they have to invest for income in the future and make savings, as many good authorities are doing.

The hon. Member for Mid Dorset and North Poole (Annette Brooke), in a very strong speech, touched on the new homes bonus, as did a number of Members. It is an issue that we are looking at. There is a consultation at the moment and the Government will of course respond to it. The hon. Member for Easington (Grahame M. Morris) referred to fire authorities, but he should bear in mind that the response to the Knight review is coming. Fire authorities were protected in order to make some of the efficiencies that they should have been making but in too many cases were not.

My hon. Friend the Member for Penrith and The Border (Rory Stewart) outlined in his strong contribution—other Members also commented on this—how he thought the funding gap should be reduced. I say to my hon. Friend that the gap between rural and urban with regard to spending per head has reduced by 4%.

That leads me to an important point raised by my hon. Friend the Member for Beverley and Holderness (Mr Stuart) in his passionate speech. I thought I was doing well with his flattery and compliments, for which I am grateful. He was clearly being sincere until he mentioned the word “svelte”; I knew then that my ego was not being brushed in the way I hoped. My hon. Friend made a clear point about the analysis. While he was away after suffering an unfortunate injury, I met SPARSE and I would be happy to go through this again. We managed to clarify the difference between how it and the Government have calculated the figures. A rural area is different for the Government, because an area such as my county of Norfolk, which would usually be classed as rural, has within it urban areas such as Norwich, Great Yarmouth and King’s Lynn, and that gives us a slightly different calculation. I would be happy to go through the figures with my hon. Friend when we get to them in a few months’ time.

“Councillors on the Frontline”

Debate between Clive Betts and Brandon Lewis

Thursday 5th September 2013 Westminster Hall

[Brandon Lewis]

Yes, I understand that, having been a council leader myself, and having gone through various budgets, including being able to freeze council tax back in 2005 to keep council tax low, as the Government have done consistently since coming into office in 2010. I fully understand that. I say to councils that if they want to spend and if they have reserves they are building up—councils have built up £3 billion of extra reserves in the past year alone, taking the amount to a record high of £19 billion—it is not credible for the public to expect them to be able to build up such reserves while pleading poverty. If they want to look at using that and they need to look at the capital side of their reserves, they should look at putting that into capital expenditure that will help them save revenue further down the line. That can be done, and good councils are doing that across the country and are even able to provide cuts in council tax, as we saw from some great Conservative councils in this year alone.

I recognise that, in general, providing this framework is not, in terms of the Localism Act, the end of the story. I am as keen as anyone here to see more people from more backgrounds become involved in one way or another, bringing a wider range of skills and experiences and spreading the load. However, I am clear that it is also for councils and local political parties to engage positively in their areas, to provide strong role models, to go out into their communities and to be part of them, and to demonstrate the importance of the work they do by using their new freedoms to show that they can make things better, generate an enthusiasm to become involved and then harness that enthusiasm.

That is not about setting centrally driven quotas or lists. It is not about directing councils on the support that they must provide or on how they should do things. It is not about centralising or directing councils over the allowances they pay, nor is it about us taking a vow of silence on any of those things. It is not about imposing additional levels of performance management, when ultimately the ballot box will determine.

My hon. Friend the Member for Cleethorpes touched on elections every two years, and he has made his views well known around unitary councils. Where we do have examples of two-yearly elections, the turnout is not particularly higher, and it is certainly no higher than when we have all-out four-yearly elections. Again, that is something that councils have the freedom to look at, take a view on, and decide what is right for them in their communities.

Nor is this about imposing any central burdens on national or, in particular, local taxpayers without the opportunity for them to consider whether that is how they want their money to be spent. What it is about is harnessing the enthusiasm on the ground to get involved and make a community better. For example, we already have more than 650 communities applying to have a neighbourhood area designated. That is the first step in a formal process for neighbourhood planning. More are joining each week and, in that way, exercising a real local say in how they want their areas to develop.

It is about working with communities and encouraging them to see the new opportunities open to them, even if the community does not necessarily want to get involved to start with, because it is something new and they are not used to it. There is nothing to stop councillors from encouraging them to make their views known and to start to build interest, or from mentoring them and representing them in the council and other service delivery organisations.

There are many examples of councillors working in communities to help their residents take back control. This is about those councillors acting as role models for and in their communities. It is about explaining clearly the roles of councillors and the function of local government in people’s lives. We all have an important part to play in that, as do the media, as a couple of Members touched on earlier. It is about councils truly valuing the work of their councillors, supporting and empowering them and providing them with the necessary freedoms, tools and budgets as appropriate.

It is about local and national political parties engaging with people, considering how they can best encourage people and candidates to come forward, and looking at their own rules and processes.

[Mr Betts]

Will the Minister address the issue that I raised at the end of my contribution about the lobbying Bill? It was not in the report because it was not an issue then. We want to know whether the proposals will restrict councils and councillors in their role. There is an exemption in schedule 1 for MPs so that we are not caught by the provisions, but there is not one for councillors, which gives the impression that councillors will be caught by it.

[Brandon Lewis]

I was aware of the hon. Gentleman’s point, and I was going to say that we do not believe that the Bill will have a detrimental effect on councillors. His comment is on the record and I will ensure that my colleagues in the Cabinet Office look at that. We will come back to the Chair of the Select Committee with any feedback on the specific comment, but we do not believe that it will have such an effect. As I say, that is on the record, and I will make sure that he gets some feedback.

Getting people more involved is also about councils and councillors considering the skills and support that they need—Opposition Members have touched on that today, as I did a few minutes ago—and drawing on the programmes that organisations such as the Local Government Association run so well, seeking out appropriate training or mentoring opportunities and looking to identify and replicate best practice. All of us, but particularly council leaders, group leaders and lead members, have a role in encouraging members to get involved in training.

I saw this when I was a council leader. There are councils that will organise a training session, and some councillors will turn up, wanting to be involved and to learn, but often the ones who most need the support and help, whether they realise that or not, are the ones who do not turn up to those meetings. We must have the courage to admit that that happens, do something about it and encourage those people to be part of those opportunities. That will benefit both them and their communities.

Getting people more involved is also, as hon. Members have rightly said, about how councils manage the times of their meetings best to suit the pattern of councillors that they have and the communities that they represent. That is about using the flexibility that they do have.

Getting people more involved is about councils and councillors working with local employers to demonstrate the skills that they bring to their representative role: negotiating skills, analytical presentation and debating skills, a determination to succeed, the ability to work with others and, where successful, a clear track record of delivery. Those are real skills—Opposition Members made this point—that any workplace and any employer should be keen to recognise and proud to encompass in their work force.

Above all, getting people more involved is about all of us, from central Government through the whole local government sector to individuals—“councillors on the front line”, to use the Select Committee’s phrase, and those they represent—working together to make that happen.

I would not pretend, and I do not begin even to suggest, that any of this is easy. We in central Government must push even harder, I acknowledge, to do our bit, to reduce as far as possible centrally imposed burdens on local government and to continue to turn the tide from the centrally created system that, as hon. Friends commented, we have seen for so long, to locally driven action. An enabling framework must be provided to allow that, and real change, to happen.

I welcome the debate that we have had this afternoon. The way in which the role of councillors is to develop in the future, embodying the development, delivery and oversight of efficient and effective public services, and the developing role in communities and neighbourhoods, are a matter for ongoing discussion and development, and I am pleased to be involved at this stage and very happy to continue to be involved in the debate. It will be an important debate for the future of local government in our country and the councillors who work so hard for their communities within it.

Oral Answers to Questions

Debate between Clive Betts and Brandon Lewis

Monday 8th July 2013 Commons Chamber

[Brandon Lewis]

I thank my hon. Friend for making that point. As Members will recall, in this year’s assessment we recognised sparsity and went further by making available just over £9 million more to cover it. I will continue to talk to the rural authorities group over the summer to ensure another clear and fair settlement when we get to 2014.

[Mr Clive Betts (Sheffield South East) (Lab)]

Has the Minister thought about what his reaction will be when a council announces that it cannot fulfil its statutory obligations with the resources available to it?

[Brandon Lewis]

Local authorities have a statutory duty to ensure that they balance their budgets, and they have been doing that. It is particularly interesting and impressive that since 2010 public satisfaction with local authorities has increased. It is also important that small district councils in particular, which are working with silo expensive management teams, look at sharing management to make sure that they spend the money on front-line services looking after residents, and not on bureaucracy.

Oral Answers to Questions

Debate between Clive Betts and Brandon Lewis

Monday 3rd June 2013 Commons Chamber

[Brandon Lewis]

Unfortunately, we have to bear in mind the background to this, with spending on council tax benefit doubling under Labour and currently costing taxpayers £4 billion a year—around £180 per household. Welfare reform is vital to tackle the deficit left by the last Labour Government. Under the last Administration, more was being spent on this than on defence, education and health combined. That simply has to stop. The reforms we have put in place to localise council tax support give local authorities the power and the incentive to deliver local growth and get people back into work.

[Mr Clive Betts (Sheffield South East) (Lab)]

Does the Minister accept that many of the families who have to pay extra council tax are the very same families who have to pay the bedroom tax? Many of those families will simply not be able to meet the extra demands placed on them. Given the limits faced by local authorities on the amount of the discretionary housing benefit they can award, does the Minister accept that local authorities and housing associations will eventually be placed in the inevitable position of having to take enforcement action against families whose only crime is that they simply cannot afford to pay?

[Brandon Lewis]

Actually, I do not accept that. With the greatest respect to the Chairman of the Select Committee on Communities and Local Government, I think that the important point of these changes is that they incentivise local authorities to see economic growth and get more people into work. It is against the local authorities’ interests to penalise people. They should be wanting people to get into work to drive economic growth. This change gives them the incentive to do that, and through the Localism Act 2011we have given them the freedom to do just that.

Local Government Finance (England)

Debate between Clive Betts and Brandon Lewis

Wednesday 13th February 2013 Commons Chamber

[Brandon Lewis]

I will make a little progress and then take more interventions.

As I said, areas such as Breckland, Mendip and South Lakeland will feel the benefit of this grant, and that brings me to my next point. This system now works in favour of local councils. Through the Localism Act 2011 and the financial reforms in this settlement, which mean that 70% of local authority income will now be raised locally, councils have more power than ever before. However, they need to understand the implications, act in their residents’ best interests and work hard on their behalf, as I know many authorities across this country do. That could be done by redesigning council tax benefit to cut fraud, promote local enterprise and get people back into work, or by redesigning services to make them more efficient and sustainable. Town halls should not be constructing Maginot line defences against the deficit.

[Mr Clive Betts (Sheffield South East) (Lab)]

The figure the Minister used of councils now raising 70% of the money they spend is obviously going around the Government, because the Deputy Prime Minister mentioned it in the Liaison Committee the other day. Is not the real reason for that percentage increase simply that the amount of money going from central Government to local government has fallen, and therefore the council tax money, which has remained basically the same in most authorities, has risen as a percentage? That is the only reason why that percentage has increased.

[Brandon Lewis]

The hon. Gentleman needs to look at the new business rates retention scheme, which I shall discuss in a moment, as it gives authorities the chance really to be in control of their destiny, and to drive economic growth for their communities and, as a part of their communities, for the country. I thank him for giving me the chance to highlight that we need to get control of the horrendous deficit left by the previous Government.

Local Government Finance Bill

Debate between Clive Betts and Brandon Lewis

Wednesday 31st October 2012 Commons Chamber

[Brandon Lewis]

I thank the hon. Gentleman for his question. I will come to that specific point, as the hon. Lady raised a similar one.

Where councils want to join forces to pool their business rates, sharing the rewards and risks with their neighbours and thinking together strategically about how they should invest the money—a topic on which we have spent some time this afternoon—they will be able to do so. I will come back to that in response to the points raised by my hon. Friend the Member for Bromley and Chislehurst (Robert Neill).

The proposals for business rates retention will give all local authorities unfettered access to tax increment financing. There will be no constraints. From April 2013 local authorities will be able to get on with implementation. We are also making £150 million available to fund a limited number of new development deals—projects in the core cities.

A number of Members commented at length on issues related to pooling. My hon. Friend the Member for Bromley and Chislehurst was the first to raise this in his remarks. I record my thanks to him for the fantastic work he did in bringing the Bill to the point at which I inherited it. He gave a great speech outlining some of the thoughts underlying the Bill and answering a great number of questions from Members to help everybody in the House have a fuller and better understanding of where the Bill is coming from and therefore what it aims to deliver.

Business rates retention changes the ground rules for local government and moves power back to where it should be. To pick up on a point made by my hon. Friend the Member for Peterborough (Mr Jackson), it effectively puts local money back with local people in local communities—local money for and by, to coin a phrase, local communities.

[Mr Clive Betts (Sheffield South East) (Lab)]

I note the Minister’s support for the concept of pooling. It is right that if local authorities choose to bring their capacities together, they should be allowed to do so. Does that not rather contrast, however, with the Government’s response to the Select Committee’s report on housing, in which we suggested that local authorities might be able to pool their capabilities to borrow under their housing revenue account—

[Mr Betts]

Yes.

[Brandon Lewis]

I thank the Chairman of the Select Committee. I would like to thank him for his courtesy in inviting me to the Select Committee on Monday, and I enjoyed talking through some of the issues that local councils face. He tempts me to move outside the scope of the amendments, and I think the Deputy Speaker has made clear his views on their scope, but I will expand a little further on pooling without being tempted too far outside the terms of the amendments.

Pooling gives councils a new tool to support economic growth across their area and greater ability to invest in the things that will have a greater impact on economic growth. As has been noted, the more the money comes together, the bigger its multiplier effect—the leveraging—can be. My hon. Friend the Member for Bromley and Chislehurst made a comparison between this and the debate earlier this week on pension schemes, and how, by bringing that money together and building it up into bigger pots, it can have a much more beneficial impact on local areas. That is why it is important that we allow councils to support economic priorities that have a benefit across a wider area. We are allowing councils better to weather any downturns in business rates income by sharing fluctuations in those rates. I will come back to the issue of a particular business.

It is worth local authorities looking at and thinking through the effects of pooling, which will give them greater resilience and greater buying power and allow greater economic growth. I encourage local authorities to consider it, and they have until 9 November to submit proposals. Earlier this year we had more than 20 expressions of interest from authorities. I stress that pooling is wholly voluntary but in terms of resilience, buying power and the ability to grow, I encourage councils to look carefully at it.

We heard queries about whether pools may cross county boundaries and whether they must be linked geographically or in any other way. In the true spirit of localism, it is for councils themselves to determine the make-up of a pool. They will not be restricted to pooling within a county boundary, allowing rates retention to support the priorities of local enterprise partnerships where this is what councils want.

--- Later in debate ---

[Brandon Lewis]

Coming from a party that had 32 different benefits to work through, I find that quite an amazing comment.

[Mr Betts]

rose—

[Brandon Lewis]

I give way, of course, to the Select Committee Chairman.

[Mr Betts]

It is all down to local councils to decide, but one of the complications is that the Government are localising council tax benefit, but centralising housing benefit. Local councils can get no sensible decisions from the Department for Work and Pensions on whether an arrangement will be allowed whereby applicants can go to one point for information and advice about both benefits. Are the Government to sort out this problem between the two Departments?

[Brandon Lewis]

I am sure we can take that back to the DWP, but I am sure the hon. Gentleman will appreciate that this goes some way outside the remit of the amendments. I will reflect on his comment and come back to him on it. As I have said, councils will have choices about how to meet the cost of support, and local authorities that have consulted on their proposals will need to consider whether they want to apply for the grant or whether they need to make changes to the proposed schemes in order to do that. I shall return to that issue in a few moments, if Members wish it.

Let me deal with the specific amendments. I shall ask the House to agree to Lords amendment 3 and to the other Lords amendments, but to resist the Opposition amendments to the amendments, which I shall ask the hon. Member for Warrington North to withdraw.

Lords amendment 3 requires the Secretary of State to provide for a review of council tax reduction schemes within three years of the Act coming into effect and sets out certain considerations for that review. As Baroness Hanham made clear in the House of Lords, Government routinely review policy and respond to ensure our objectives are met. The transitional grant scheme announced on 16 October was a direct response to those authorities that are proposing schemes that place what the Government consider to be an unacceptable burden on the very poorest. That is why we will accept that amendment, but we will not seek to overturn it.

In accepting the principle that Government should keep policy under review, I would make a couple of points. The terms of the review, as set out in the amendment, do not bind the Government to any course of action as a result of the review’s recommendations. I know that the Local Government Association is keen for us to make that clear. We will need carefully to consider the findings of the review before considering how we will respond. We remain clear that localisation is our preferred policy. It strengthens incentives to support local growth and jobs, drive down fraud and error and hold down council tax. It gives local authorities control over how to design support schemes, taking into account the impact on local populations and council tax collection rates. It also ensures that funding for council tax support is paid directly to the authorities that provide vital services. All those are important considerations that the Government would want to take into account in any future review.

The Opposition’s amendments seek to ensure that such a review would apply only to England, but I believe that if the Secretary of State is required to review the operation of local schemes in England that are provided for under powers in this Bill, such a review should also take place in relation to schemes that are similarly provided for in Wales. Let me explain that further.

Such schemes will be provided for under regulations to be introduced by Welsh Ministers, so it is right for Welsh Ministers to lead on any review. In complying with the requirement of the Lords amendment, the Secretary of State will therefore seek to agree with Welsh Ministers the scope and format of the review in relation to Wales. It will also be for Welsh Ministers to consider the implications of the review’s recommendations for the framework for schemes provided for through their regulations, and the powers provided, at their request, in the current Bill.

In the light of these assurances, I do not think that the Opposition’s amendments are necessary.

Lords amendments 83, 84 and 86 would enable regulations made by the Secretary of State or Welsh Ministers about council tax reduction schemes of billing authorities in England or Wales to make provision equivalent to the provisions of, or the provisions that could be made under, sections 32 to 34 of the Welfare Reform Act 2007. The amendments would also give billing authorities in England power to make additional provision in their local scheme which replicates, or could be made under, those sections. The amendments would allow local authority schemes to provide for extended payments, which are an important way of supporting work incentives.

Lords amendment 85 is a technical amendment. It is intended to ensure that the power in new paragraph 6 of schedule 1A to the Local Government Finance Act 1992, which allows major precepting and billing authorities to reach an agreement to vary payments or instalments that are required to be made under regulations about funds, applies—as was intended—only to regulations in relation to council tax.

Lords amendments 87 to 90 would ensure that the expertise of members of the First-tier Tribunal could be used in the deciding of appeals against decisions made in relation to council tax reduction schemes. The amendment would enable First-tier Tribunal members to sit as members of the Valuation Tribunal for England at the request of the president of the tribunal, with the approval of the Senior President of Tribunals, and only in relation to appeals that relate in whole or in part to council tax reduction schemes.

I urge Members to agree to the Lords amendments and resist the Commons amendments, and invite the hon. Member for Warrington North to consider withdrawing amendment (a).

Oral Answers to Questions

Debate between Clive Betts and Brandon Lewis

Monday 17th September 2012 Commons Chamber

[Brandon Lewis]

My hon. Friend is correct to say that this is one of the taxes that the previous Government forced up while still running up record debts and deficit for this country. I am pleased to say that over the last couple of years, this Government have overseen council tax freezes that have led to a fall of 4.4% in real terms.

[Mr Clive Betts (Sheffield South East) (Lab)]

Surely the Minister will have noticed the difference. Under the last Government, the poorest people of working age paid lower increases in council tax because of the operation of the council tax benefit system. Under this Government, the poorest people of working age will pay the highest increases in council tax because of this Government’s changes to the council tax benefit system. How can the Minister possibly describe this Pickles tax as fair?

[Brandon Lewis]

Under the previous Government, welfare under the council tax benefit system rose from £2 billion to almost £4.5 billion—more than the amount spent on health, education and defence. It was right to do something about that and to fix the economic mess left by the previous Government.

Local Government Finance

Debate between Clive Betts and Brandon Lewis

Wednesday 9th February 2011 Commons Chamber

[Mr Betts]

There were ear-marked allocations, including some transferred money from NHS funding, but even so local authorities are facing severe reductions. Westminster, a flagship Conservative authority, is cutting £1 million from its Supporting People budget. Hammersmith and Fulham was named for cutting eight community centres, I understand. Gloucester and Somerset councils are cutting libraries and closing them. Those are cuts in front-line services. Even authorities that are sharing services and cutting management costs still have to cut front-line services. Why has local government been singled out for bigger cuts than the rest of central Government combined?

[Brandon Lewis (Great Yarmouth) (Con)]

Does the hon. Gentleman acknowledge that local authorities across the country, such as my own in Great Yarmouth—we are a deprived area that has been hit with cuts—have said that they can deal with the changes without affecting front-line services? They are looking to do that through back-office savings and cross-working with other authorities.

[Mr Betts]

All I can say is that the hon. Gentleman’s authority must have had a much more favourable settlement than many others that are making those cuts. That is not happening on a party political basis. Conservative and Lib Dem authorities are making cuts as well. I am more than happy to receive a list from the Secretary of State of all the authorities that are managing the process without any cuts in front-line services. It will not include many Conservative and Lib Dem authorities, which are presumably making cuts not to spite the Government, but because of the position that they have been put in by the Government.

[Brandon Lewis]

rose—

[Mr Betts]

I am sorry, but I must make progress. Other Members want to speak in the debate.

My next point is one made by the Local Government Association on a cross-party basis. Why are the cuts front-end loaded? Will someone explain? Even if the Government feel that they have to make the cuts over the four-year period, why are they front-end loaded?

--- Later in debate ---

[Mr Betts]

The Secretary of State has had an exchange of letters with the Conservative chair of the Local Government Association, who has complained bitterly that if more than £200 million is required nationally in capitalisation to pay for redundancy costs, that will result in a further cut in the grant to pay for it.

I will move on to the spread of the cuts. It is undoubtedly true that local authorities in the most deprived areas are getting the biggest cuts. Government Members will say that those authorities have the biggest grants, which by and large is true, but that is because they have the biggest needs and the most deprivation. The reality is that my local authority is getting more than an 8% reduction in its spending powers and Dorset county council is getting an increase. That is simply not fair.

[Brandon Lewis]

Will the hon. Gentleman give way?

[Mr Betts]

I have already given way to the hon. Gentleman and think that that is reasonably fair. The spread of the cuts is simply not fair. I accept that the Government have provided an element of transitional grant to help those authorities with most deprivation, but they simply have not gone far enough to protect those with the most needs and the most deprivation. That is why those areas now face the biggest cuts in services.

Road Networks (Harlow)

Debate between Clive Betts and Brandon Lewis

Wednesday 7th July 2010 Westminster Hall

[Brandon Lewis (Great Yarmouth) (Con)]

rose—

[Mr Clive Betts (in the Chair)]

Order. Has the hon. Gentleman cleared it with the Member introducing the debate and the Minister that he wants to speak?

[Brandon Lewis]

I must admit that I have not cleared it with the Minister, but I spoke earlier to my hon. Friend the Member for Harlow (Robert Halfon). I am at your mercy, Mr Betts.

[Mr Clive Betts (in the Chair)]

Okay.

[Brandon Lewis]

Thank you, Mr Betts, I appreciate that. I will ensure that in future I speak to the Minister as well.

[Mr Clive Betts (in the Chair)]

I appreciate that the hon. Member is new to the House, so that is fine.

[Brandon Lewis]

I simply want to support my hon. Friend’s statement. I represent Great Yarmouth, and although the M11 is not there, or in Norfolk, it is the closest motorway to my constituency. It is a vital part of the artery joining the A11 and the A47 that runs through to our outer harbour and to Norwich airport, so it is hugely important to the economic development and growth of Great Yarmouth, which has pockets of high deprivation. Anything that we can do to alleviate the traffic problems along that artery, which this junction could—and clearly will—do, is of benefit to Great Yarmouth. Does my hon. Friend agree that that is important for Harlow, but also for the wider business community throughout East Anglia and the eastern region?

[Robert Halfon]

Should I respond?