Cities and Local Government Devolution Bill [HL]
Debate between Lord Grocott and Lord Shipley
Lord Shipley
My Lords, there are two amendments in this group. I support Amendment 3, which was moved by the noble Lord, Lord McKenzie, and shall speak to Amendment 4. In essence, the question being addressed is whether it should be compulsory for there to be an elected mayor in some circumstances.
There are two ways of looking at this. First, with a directly elected mayor, there would be a direct connection between the ballot box and the additional powers being devolved, which would give local electors a say in who is running the devolved powers. It would also give the combined authority a chair who is not dependent on a single council for their authority. On the other side of the equation, it represents a huge concentration of power in one person, and it raises the question, which we debated in Committee, of whether the range of responsibilities is so vast that one person cannot do it all. In the context of some areas, such as the north-east of England, which I know well, the scale of the geographical area, which would run from the Scottish borders almost to the Tees valley, is so very large that it is very difficult to see how a single person could run that huge geographical area, even with the support of the leaders of the seven constituent councils. So it is right, as the noble Lord, Lord McKenzie of Luton, said, that constituent councils, together with their combined authorities, should have the right to come forward with different models to propose to the Secretary of State.
We addressed this issue in Committee with a proposal for a greater degree of direct election to the combined authority. It would have provided a stronger degree of legitimacy because the electors would have had a role in electing more people than just the single elected mayor. But that proposal was not supported by your Lordships’ House and, as a consequence, we have not proceeded with it on Report. As we have made clear, we want devolution to succeed, but it has to succeed with clear legitimacy across the whole of a combined authority area. There are serious dangers that if it is not owned across the whole of that area, the public will start to turn against it.
One other aspect of this relates to the overview and scrutiny processes, and we discussed in Committee how that might be done. We will debate this later, but the Government have come up with some proposals that, while not as strong as I believe they should be, are certainly stronger.
I support Amendments 3 and 4 because they would give the essential flexibility needed to meet specific local needs without which devolution may not work well. We would get flexibility through Amendment 3; it would mean that there might be greater public ownership of the structure that is created.
Amendment 4 would require evidence of sufficient democratic accountability if there were to be an elected mayor. I think I have demonstrated in what I have said that it is very difficult to see how that would be delivered other than by the four-yearly election procedure. We also say that there needs to be a demonstration both that there is local support for the mayoral model and that in the construction of this new layer of government there will not be a risk to the proper functioning of the existing tier of local government.
I look forward to hearing the Minister’s reply, but I think that the ad hoc decision-making by Ministers on which areas must have elected mayors and which need not needs to be spelled out clearly. At the moment it is not clear to anybody on what basis the Government are making the announcement that they regularly continue to make, without it being clearly understood what the criteria are for the devolution of powers to specific areas.
Lord Grocott (Lab)
My Lords, basically this is a decision about whether mayors should be compulsory or whether there should be a degree of local input about whether or not mayors should be directly elected. The history of public acceptance of the concept is pretty hopeless from the perspective of those who favour directly elected mayors, which I do not.
Neither my dear old Labour Party nor the Conservative Party have covered themselves in glory on this issue. I briefly remind the House that the concept of directly elected mayors came from the last Labour Government. As far as I am concerned, as a very long-standing member of the Labour Party, it came out of a clear blue sky—or a clear red sky. I had never been to any meeting of the Labour Party at any level where there had been a clamour for directly elected mayors, nor had I, in 50-plus years of canvassing—I do not know whether anyone can challenge me on this—ever knocked on a door to be told, “I’d vote for your party if you gave us directly elected mayors”. I think it is a product of a think tank; it is certainly not a product that has at any stage involved consulting the public.
The last Labour Government at least allowed local areas to have referendums before they embarked on a system of directly elected mayors. The results, certainly from my perspective, were pretty conclusive. There were 40 mayoral referendums under the Labour Government’s legislation: 13 local areas said yes and 27 said no. That was a fairly clear demonstration nationwide that this was not a universally popular proposition.
When the Conservative-led Government came into power in 2010, they had seen the Labour Government’s experience of a lack of wild enthusiasm, but for some reason the Conservative leadership thought that it was a great idea, as had the Labour leadership, so they did not allow the public to initiate referendums for directly elected mayors but simply said, “No. You, the 10 cities, shall have a referendum whether you want one or not”. That was the basis on which they legislated. As we all know, and as my noble friend Lord McKenzie already said, the public were consulted in 10 referendums and in nine cases—my maths makes that in 90% of the cases—they said, “No thanks very much, we don’t want directly elected mayors”. Only 10%, or one city, said that it did, and I understand that that city is now not too keen on the concept, having seen it in operation.
So we have gone from a stage of local, initiated referendums under Labour, which did not work very well from the perspective of those who want this system, to compulsory referendums under the Conservatives, which if anything went even less satisfactorily. Now what do we have? We have a system that does not involve the public at any stage whatever and is simply an imposition from national government on the kind of local authority structure, or rather the management structure, that you will have whether you want it or not. If I could draw a graph to illustrate this, it would be pretty clear. The political class, which we talk about these days, of which I suppose we are members here one way or another, thinks this is a good idea, or at least the leadership does. Whenever the public are consulted they say, “No, we don’t, thank you very much”, so what does the political class do? It says, “Well, you’ll have it, sunshine, whether you want it or not”, which is the position that we are at with this legislation.
I simply appeal to the Government—it is a non-partisan appeal to the extent that I freely admit that in part my Government were to blame for all this—that if local authorities are being told, “You must have this hugely significant figure in your area, which will dramatically change how local government works there”, surely at least there must be a degree of flexibility in considering whether the people in the area want it. Surely that is the most modest of propositions. However, as things stand, whatever the Minister says when she replies—and I am sure she will say, “It is possible in certain circumstances”—in practice we know that this is about compulsory directly elected mayors, and I do not like that idea one little bit on democratic grounds, let alone on administrative grounds. I hope that the House will consider these two amendments very seriously.
Cities and Local Government Devolution Bill [HL]
Debate between Lord Grocott and Lord Shipley
Lord Grocott
My Lords, having listened to the debate so far on the various amendments, I am mightily glad that I am not the Minister. I hope that this does not sound patronising, but she has handled this Committee with good humour and has attempted to answer all the questions. However, my word, if she can square this particular circle of fitting the police and crime commissioners into directly elected mayors, that would be an achievement worthy of note and a chapter in Erskine May.
We have to have a history lesson for a moment. I do not know where the idea for police and crime commissioners came from— whether from the Liberal Democrat part or the Conservative part of the coalition.
Lord Grocott
It is always interesting to unravel these bits and pieces. We might test a few more policies on that basis. So it was a Conservative policy to have police and crime commissioners, but I think I am right in saying that it was Liberal Democrat policy to have the first election in November. I do not think we can remember that particular contribution with great affection and admiration, or wish to repeat it. But the system was set up with grand language surrounding its inception, stating that in this crucial area of policing there should be a democratically elected leader accountable to the public, so that the public know whom to go to for this defined area of public life—all police and crime activity and policy in a particular part of the country. At least that was a clear objective. It fell at the first hurdle, as some of us predicted it would, because of the appalling turnout of 15% overall—in an area I know very well, Stoke, it was 9%. But at least there was clarity about the objective and the function that was being addressed.
This is where there is complete confusion. I am sure the Minister will try to square this circle, but I fear she will find it extremely difficult. We have police and crime commissioners, which for all their faults and criticisms were about a defined, agreed policy and pattern common across England. However, the virtue, almost, of the devolution pattern that we have discussed at such length is that it will be in different areas, with different functions and different managerial styles, and arranged differently between groups of leaders and the Secretary of State. If it is not completely random, its whole strength and legitimacy is that it is enabling and there will be no common pattern.
Now an attempt is being made to graft an agreed common pattern about a specific and very important service on to the myriad different structures that are planned for devolution, largely regarding directly elected mayors. It simply cannot work for all the reasons that have already been spelled out. How on earth will people know when they are electing a directly elected mayor what pattern will be established as to when the elections will take place? I will not repeat all the questions that have already been asked, but I can at least spell this fundamental problem out. We are trying to graft a common pattern on to a randomly different pattern across Great Britain.
It is almost beyond the power of parliamentary counsel to answer all the questions that are being raised in this debate. I wish the Minister well, if just for the sheer fun of watching someone try to square this circle. But surely the time has come to acknowledge that, worthy though some of the objectives may be in having police and crime commissioners directly elected, somehow or other this needs to be started from scratch. If we are to have devolution, police and crime must be part of that devolution package and there must be some consistency in the service across the country as to the type of devolution structure that will be applied in different areas.
Local Authorities (Conduct of Referendums) (England) Regulations 2012
Debate between Lord Grocott and Lord Shipley
Lord Shipley
It is too low, but of course, local elections and leaders of councils are being elected in practice on similar numbers. So no, the point is not material. The fact is that the people of Salford have voted for an elected mayor. It is simply not the case that there is no apparent public support for elected mayors. I believe that we should test the public view. That was agreed as part of the Localism Act, and we should not regret that but should test the public opinion.
Lord Grocott
My Lords, I cannot claim any direct interest in the cities that have been selected for these various orders, though I have lived in the West Midlands for many years. I have a particular interest, almost a responsibility, to mention Birmingham. The House may know that my noble friend Lord Corbett has not been very well lately but he would undoubtedly have been here otherwise, and I know that he would have said that this is a daft idea. I know this because I checked with him when I saw him this morning. Although he takes no responsibility whatever for the arguments that I propose, perhaps this could be taken as, to a degree, a reflection of his views as someone who for many years was an outstanding Member of Parliament for the city of Birmingham.
I must take issue briefly with the comments that we have just heard, not least on the argument about direct democracy as if it is somehow more legitimate if a mayor is elected by the whole population of the area rather than being elected by some other mechanism. This is essentially an argument for a presidential system, because I very much doubt whether the noble Lord, Lord Shipley, would say that the Prime Minister has less authority because he is not directly elected by the population as a whole. I, for one, infinitely prefer our parliamentary system, which is basically how our local government system has operated, in much the same way that the Government is decided in the House of Commons. Executive heads are essentially chosen by their peers, and over a period of years their strengths and weaknesses are tested and observed. Although, regrettably, the mayoral system was introduced by a Government whom I supported on most things, it has always seemed to me an attempt to graft a different system from abroad—an alien system sounds so unpleasant—which has no roots in this country. That is the basis of my objection.
I have one or two detailed points to make. The argument that has just been advanced by the noble Lord, Lord Shipley, was that the Government are simply asking local people for their opinions. His position is that it is up to local people to make their minds up. A very skewed question is being put, in the sense that the Government are insisting that these local authorities hold referenda, which seems to be at total variance with all the impassioned speeches we have heard about localism from the Benches opposite. However, it is worse than that, because the Government are insisting that these tests of local opinion shall only be held in those local authority areas which currently do not have a mayoral system. I would have felt slightly more comfortable—but not a lot more—if they had asked one or two of those local authorities that have had experience of this mayoral system over the last 10 years whether they thought it was a good idea to continue with that method of local government. In the one test we have had—in good old Stoke, home of the mighty Potters—the people of Stoke have said, “Thank you very much. We have tried this system out for the past few years and we do not think there is very much to it”. I guess that may well be the response of a number of other local authorities should members of the public locally be asked their opinion. However, the Government say, “No, we are not going to ask questions in those areas—only in other areas—and they shall have these referenda whether they want them or not”. The only question I want to ask is: where is the demand? There is no evidence of demand that I have seen for locally elected mayors in any of the places where compulsorily they must hold a referendum.
We have already mentioned that the turnout in Salford was 18 per cent, which, as my noble friend on the Front Bench pointed out, and I agree wholeheartedly with everything he said, is hardly a resounding acclamation for the system—and that is the turnout, not the vote in favour. On the turnouts for some of the referenda we have had so far, in Sunderland it was 10 per cent, in Ealing it was 10 per cent, in Southwark it was 11 per cent—which I suppose is an improvement—and two-thirds of the areas have rejected the idea. I hope very much that the ones that are being tested in this compulsory vote will also reject the idea.
As to the cost in these straitened times—which the Government Benches constantly remind us about—it will be £2.5 million for the referendums. That is about a quarter of a million pounds for each one that is held. Is this really a priority that local people want in these difficult times? I ask, rhetorically, the two previous speakers who have both led their local authority that, if they had been given a quarter of a million pounds, at what point would they have thought the best way to spend it was to hold a referendum on changing the system of local government.
It is, of course, not only the cost of the referendum but should the vote go in favour, there will be the cost of the reorganisation. I have raised this issue already with the noble Baroness, Lady Hanham, and she said in Committee, rather optimistically, that it would depend on the kind of mayoral system that is adopted, which is true. She said:
“The mayor comes in and it might need to provide him with a room. He will probably need a couple of members of staff”.
I think that is fairly unlikely. She continued:
“I do not anticipate there being a huge extra cost to the council as a result of this”.—[Official Report, 17/1/12; col. GC 146.]
The noble Baroness is very experienced and respected in local government and we do not know whether she is right or I am right in saying that it will cost a lot more than a room and a couple of officers whatever system gets adopted. I cannot think of why on earth we should want to go down that road and spend that amount of money. Certainly, as someone who does not live in London but who watches the mayoral system as it goes on, I cannot believe that it is cheap. Perhaps it is, I do not know the figures, but I would like to ask the Minister—I gave notice to her office about this—whether she can tell us what the government of London cost in the last year under the old system for its head office administration, not for individual services, and what it costs now. I would bet a few shillings that the cost has not gone down. I hope the figures are there somewhere.
My noble friend Lord Beecham asked: what are the benefits of the system? It has been running for 10 years or so in many councils so we ought to know by now. The Government make grandiose claims about it in the supporting document. The Explanatory Memorandum states that the Government believe that,
“directly elected mayors … enhance their city’s prestige and maximise the potential for local economic growth”.
So I have to tell the two previous leaders of Newcastle council that, according to the Government, you failed. If you had been directly elected mayors, the place would be zooming.