(4 days, 10 hours ago)
Grand CommitteeMy Lords, I thank my noble friend Lord Mohammed of Tinsley for speaking. I also thank the noble Lord, Lord Blunkett, in particular. I strongly support the stand part notices on Clause 59 and Schedule 27. The reason has been explained. This is a devolution Bill about community empowerment, but the Government are removing the right of local people to decide for themselves what system of governance they want.
We have this devolution Bill, but the Government decide the form of local governance and say that there will not be a committee system. Where are we now? We are in Parliament, operating as a Committee. I have spoken on this issue many times in recent years. The reason why I believe that we should encourage committee systems is that they decentralise power but, more importantly, they enable scrutiny to take place at the point of decision-making. All too often, scrutiny in local government takes place after the decision. We will debate this further on our eighth day in Committee but I think that this is a fundamental right. I just want to keep the right of a community to create the structure that it wants. That right lies in the Localism Act 2011.
I very much hope that we will come back to this issue on Report. However, there are rumours that we may not get a Report stage and may end up in wash-up prior to Prorogation, because there are not many weeks left. We have a further day in Committee on 5 March and we have to leave an interval to reach Report. Can the Minister tell us whether we are going to have a Report stage? Also, if we are going to have a Report stage, I hope very much that the noble Lord, Lord Blunkett, will bring this back, because that would give us the power to say to the Government, “You have to think again on this issue. Do not tell local people in all local authorities what model they are required to adopt”.
In the Explanatory Notes, there are explanations for why the Government are undertaking this, but, frankly, they are spurious. They claim that there is evidence, but I do not know what the evidence is. In the end, why do we not just trust local people to make decisions? Otherwise, 56 million people in England will continue to be run out of London and Whitehall.
Lord Jamieson (Con)
My Lords, I wish to continue what seems to be an emerging consensus and a Sheffield love-in. The noble Lord, Lord Blunkett, was the leader in Sheffield when I was at Sheffield University and I will always be grateful for the 10p bus rides that I was able to take.
As we have discussed, these amendments concern the committee system. Let us be frank: this is a devolution Bill. I reiterate yet again that this side of the Committee and these Benches believe in democracy and in devolution. If you believe in those two things, this is about allowing and empowering local communities to decide what is best for them.
I was leader of Central Bedfordshire and operated under the strong-leader model, which worked well for Central Bedfordshire. I am sure it will work well in many other places but, if local communities believe that the committee system is best for them, they should be given that opportunity. Does the Minister believe in devolution and local democracy and will she allow local communities to decide the governance model that best meets their needs?
My Lords, I thank my noble friend Lord Blunkett and the other noble Lords who have contributed to this debate. I turn first to my noble friend’s intention to oppose the clause and Schedule 27 standing part of the Bill.
This clause and the related schedule will bring further consistency to local authority governance arrangements across England. As your Lordships may know, the Government still have a strong preference for executive models of governance. We believe, and I believe because I have operated in both, that the leader-and-cabinet model, already operated by over 80% of councils, provides a clearer and more easily understood governance structure and can support more efficient decision-making.
To answer the question from the noble Lord, Lord Shipley, there are several individual examples that highlight the challenges of the committee system. When Cheshire East switched to the committee system in 2021, an LGA corporate peer challenge found that its structure was large and meeting-intensive, with six policy committees and nine sub-committees, involving 78 out of 82 councillors. Co-ordination across individual committees is a persistent challenge. The same peer challenge for Cheshire East flagged the siloed nature of the council, with poor joint working across departments, contributing towards challenges of service delivery and communication.
Several councils that have tried committees have later reverted to the leader-and-cabinet model, for example Brighton and Hove in 2024. This is wasteful of both time and resources. With collective decision-making spread across multiple committees, it is not always clear who is in charge. Councils that return to the leader-and-cabinet model, such as Newark and Sherwood District Council and Nottinghamshire County Council, have judged it to be more transparent, agile and accountable.
At the same time, we recognise the genuinely held concerns of those councils that have adopted the committee system following a public referendum or a council resolution. That is important and I take seriously the words of noble Lords who have raised that. The Government’s amendments made in the other place to these provisions were intended to allow some councils that have recently adopted the committee system, following either a council resolution or a public referendum, to continue operating that governance model until the end of their moratorium period. At that point, the local authority will be required to undertake and publish a review of whether it should move to the leader-and-cabinet executive model or retain its committee system. The Government believe that this approach strikes the right balance between encouraging a more consistent governance model for local authorities across England and respecting local democratic mandates and voter expectations where councils are currently operating a committee system and are within their current moratorium periods. With these points in mind, I invite my noble friend to support these measures.
I turn to the government amendments in this group. As I have set out, the Government introduced an amendment in the other place to allow certain councils operating the committee system to continue to do so where they were within their statutory moratorium periods. The Government are now bringing forward additional amendments to clarify the circumstances in which a local authority’s committee system may be protected from the requirement to adopt the leader-and-cabinet executive model. This will mean that the protection period applies only where the council has previously adopted the committee system following either a council resolution or a public referendum and is within its statutory moratorium period at the point this provision is commenced.
The amendments clarify that the prior resolution to change governance must be made under Part 1A of the 2000 Act. This will ensure that the Bill strikes the right balance between encouraging a more consistent local authority governance model across England and respecting more recent local democratic mandates and voter expectations. It will also reduce disruption where councils are operating a committee system within their statutory moratorium period.
Lord Fuller (Con)
My Lords, like many others, I had a leading position as a councillor during Covid. The Minister and I corresponded on many calls. Remote working worked well during Covid, but there were some famous failures. Some councillors fell asleep live on YouTube—not in my council, I hasten to add. Others went to the toilet, got undressed or got out of the shower. Children bumbled in. There was that famous meeting where a woman had no authority but managed to cut the other chap out; I cannot remember her name, but we all know the one. So, yes, it can work, and there are safeguards.
I completely disagree with proxy voting, so I have no truck with Amendment 219. However, I am broadly sympathetic with Amendments 218 and 220, which are trying to ask how we can participate remotely, although I find it difficult to support them as they are currently constructed.
This is complicated. There are different types of meeting, and each has different consequences. There is the full council meeting, in which everyone gets together. It is important that everyone gets together to cast their vote as a council rather than as a set of individuals sitting at home—in their underpants, let us say. There are executive meetings and cabinet meetings. They are really important, and people want to see them; there are rights of attendance, and people will want to lobby. There are scrutiny meetings, but that is not an executive function. Then there are policy-formation committees, which are not for decision-making but are part of scrutiny. So we have the distinction between what are and are not decision-making committees. Then there are quasi-judicial meetings, such as those on planning or licensing; in-person attendance is really important for those. None of this fine-grained texture is in the amendments but, if they are to progress, it should be.
Local government is becoming more complicated. There is certainly a need to travel more, particularly in the larger authorities such as North Yorkshire. The answer to that is not to have something quite as big as North Yorkshire, but we are where we are. There are going to be more combined meetings under these combined county authorities. There are also more trading companies involved in local authorities now. They are at arm’s length from the council—they may be owned by the council but they are not of the council—and we have to take them into consideration, too. There are significantly more partnerships, some of which are joint committees of more than one council. We would have to work out, if two councils came together and one had the freedom to do online meetings and the other did not, how that would mesh in joint committees, of which we are seeing a lot more. We have development corporations as well. There is a lot of public money there, so will they be meeting in private or in public?
We have to sort out some of the ground rules. It is not quite as simple as the noble Lord, Lord Pack, and my noble friend Lady McIntosh said. I am interested in taking this forward, but it will need a lot more work before Report before any of it could really be considered a realistic proposal, rather than just a good idea for probing.
Lord Jamieson (Con)
My Lords, I have listened carefully to this debate and wish to speak briefly on this group of amendments. They address fundamental questions about how local democracy is conducted, how local councillors discharge their duties and how we maintain the integrity of local decision-making. These amendments are well intentioned—we have certainly heard about the difficulties that there can be in arriving at meetings, particularly where significant distances are involved—but I fear that they do not sit easily with the principles of genuine devolution and open, accountable, transparent government where you can see where the decision is being made.
Amendment 218 in the name of my noble friend Lady McIntosh of Pickering and Amendment 220, in the name of the noble Lord, Lord Pack, would allow for remote meetings or remote participation in meetings. A cornerstone of our democratic life is the principle that significant decisions should be taken in person and in public, where elected representatives can be directly observed, challenged and held to account, and where the debate is in the room. During the pandemic, remote arrangements became an unavoidable necessity, yet many of us witnessed—my noble friend Lord Fuller alluded to some of the issues we saw—how public engagement was diminished, the debate became thinner and the essential character of our democratic exchanges was damaged.
I do not believe that we should return to arrangements that bring back that distance, both literally and figuratively and in terms of participation, between elected representatives and the people they serve. The default expectation of democratic office ought to remain that in decision-making councillors come together, face to face, to deliberate in the public view. Any move to the contrary, even in limited circumstances, would, I fear, be a slippery slope.
My Lords, with my other hat on, as the Whip, I just want to say that the next group is pretty long. We may not finish it by 9.15 pm so we may end up having to split the group. We may get to the single amendment in the name of the noble Lord, Lord Banner, but I cannot guarantee that. I am in noble Lords’ hands, but we have to stop at 9.15 pm.
We are definitely finishing at that time. If we can get through this big group, we will, I hope, be able to do the eighth group, but we must finish at 9.15 pm.
(4 days, 10 hours ago)
Lords ChamberIt is very important that as we go through this process of building more homes, we also create the jobs to go alongside that. We have been working very closely with the sector and particularly with the developer skills group to make sure that we invest in skills as we go along this path of building. It has been very supportive, to the extent of investing £140 million in skills alongside the skills funding that the Government have put in. It is very much committed to this. We welcome the Home Builders Federation statement in July 2024 looking to rapidly increase the pace at which homes are built, deliver the high-quality affordable homes that the country needs and provide the skilled jobs that we know we need to deliver that.
Lord Jamieson (Con)
My Lords, as the Minister said earlier, only a little over 300,000 additional homes have been delivered in the first 18 months of this Government. Given their target of 1.5 million homes, they will have to deliver at the rate of 342,000 homes a year. Previously, in response to my noble friend Lady Scott of Bybrook, the Minister said that they would achieve this by speeding up existing planning permissions. Given that housing starts continue to run at well below the average rate under the previous Conservative Government, can the Minister say when this will happen?
It ill behoves the Government who caused the housing crisis to be pressing us on this. We have already taken very significant steps, which I have outlined, to move this forward. We updated the National Planning Policy Framework. It is early yet to see an impact from those changes. We expect to see the effects feeding through into a higher number of homes being granted permission later in the year. However, new figures show that already we are seeing some green shoots of recovery, with a 29% increase in housing starts compared with 2024. It will take time to turn the tide after decades of underinvestment and a failure to build the homes and infrastructure that we needed to keep up with demand. We expect housebuilding to ramp up, particularly in the later years of the Parliament, as our reforms take effect. We will continue on our mission to deliver those 1.5 million homes.
(4 days, 10 hours ago)
Lords Chamber
Lord Jamieson
To ask His Majesty’s Government what steps they are taking to ensure landlords, tenants and local authorities are prepared for each phase of the implementation of the Renters’ Rights Act 2025, including funding allocated; and what plans they have for communicating changes ahead of the tenancy reforms this spring.
My Lords, we have given the sector a clear timeline for reform in our implementation road map. Ahead of phase 1 of implementation in May, we have already published guidance for landlords and local councils, and launched our communications campaign using social and main- stream media and partners to raise awareness. We have also allocated £18.2 million in new burdens funding to local councils in 2025-26, alongside funding for the justice system and Shelter’s expert housing advice line.
Lord Jamieson (Con)
My Lords, I declare my interest as a councillor in central Bedfordshire. I thank the Minister for her response. Unfortunately, landlords are voting with their feet, exiting the market in ever higher numbers: 93,000 in 2025 and a forecast 110,000 this year, according to the Black & White Bridging report. The English Private Landlord Survey reports that 31% of landlords are looking to reduce their portfolio and 16% to exit completely. Can the Minister explain how this helps those desperately looking for a home to rent?
We know that landlords need time ahead of the implementation to make sure they are compliant with the reforms, and that is why we have published a full package of landlord guidance on GOV.UK to support the first phase of the Renters’ Rights Act on 1 May this year, including a draft written statement of terms so landlords know what information must be included in new tenancy agreements.
We continue to work constructively with the landlord sector. Officials recently spoke to over 1,000 landlords and letting agents at a webinar organised by Rightmove and attended the National Residential Landlords Association conference to speak directly to landlords impacted by the reforms.
(5 days, 10 hours ago)
Grand CommitteeMy Lords, I will just repeat the final comment I had to make. When the Minister referenced how the constituent authorities would be able to vote in decision-making mode, she referenced the fact that if a mayor was not able to be there, the deputy mayor could take their place and vote. Either that means the deputy mayor is an elected councillor who is nominated to be the deputy mayor in a constituent authority, or it may mean, as it does in my mayoral authority, that the deputy mayor is an appointee. I have a problem if they are an appointee, because they are not democratically accountable. Decisions should be made by people who are democratically accountable to the electorate., I would love that to be clarified. I wish I had finished before the Division, but with those remarks, I hope the Minister will be able to put me right on all the issues I have raised.
Lord Jamieson (Con)
My Lords, I first declare my interest as a councillor in Central Bedfordshire. I am grateful to the Minister for introducing these orders, which establish mayoral combined authorities for Cheshire and Warrington and for Cumbria.
As we have made clear in the discussions on the devolution Bill, we support the principle of English devolution and promoted this while we were in government. We support the creation of combined authorities where they have genuine local support, are properly funded and are designed to reflect the identities and needs of their areas. However, that support for devolution in principle does not absolve the Government of their responsibility to demonstrate that these proposals meet the statutory tests as set out in the 2009 Act, nor does it remove the need for proper scrutiny.
The question of funding remains unresolved and frankly a little bit troubling. The Government have indicated that these new authorities will receive additional funding over a 30-year period. How such long-term funding commitments will be guaranteed in practice is not clear. Can the Minister explain how the Government intend to provide genuine certainty to these combined authorities? They will need that if they are going to invest in long-term infrastructure projects, skills and transport planning. That requires predictable funding going forward. Also, as an aside, will mayors in future combined authorities receive similar levels of funding?
Linked to this is the mayoral precept. These orders enable the new mayors to levy an additional charge on council tax to fund these functions. While that power may be appropriate in some circumstances, it raises legitimate concerns about local accountability and affordability. We would welcome clarification from the Minister on the detail of central government funding expected to support local devolved functions and on to what extent the Government anticipate or indeed rely upon the use of the mayoral precept to bridge any funding gap. That also raises the question that the noble Baroness, Lady Pinnock, was moving towards of how we ensure scrutiny and holding the mayor to account.
The noble Baroness, Lady Pinnock, also raised the issue of size. Given the powers that the Secretary of State will have in the English Devolution and Community Empowerment Bill to push through potential mergers, what is the Government’s intention here?
Finally, I raise a specific concern about Cheshire and Warrington, which is the financial position of Warrington Borough Council. The estimated £1.8 billion of debt carried by the council is concerning, and it is not at all clear how the creation of a mayoral combined authority interacts with that reality. We ask for further detail: what special measures will be put in place to ensure that the debt does not undermine the financial stability of the new authority as a whole? Can the Minister assure the Committee that the creation of a combined authority will not directly or indirectly place additional burdens on neighbouring councils or local taxpayers?
Devolution done well can be transformative, but devolution done poorly risks creating new layers of governance without the trust, clarity or resources required to make them effective. We urge the Government to consider seriously the concerns raised by local communities, the scrutiny committee and this House. We will continue to support devolution that is consensual, properly funded and genuinely local, and we will continue to challenge proposals that fall short of these principles.
My Lords, I thank the noble Baroness, Lady Pinnock, and the noble Lord, Lord Jamieson, for their comments on this statutory instrument. I will try to answer all their questions, but, as usual, I will check Hansard and make sure I have replied to the issues that they have raised.
The noble Baroness raised the issue around the differing sizes of the authorities. I appreciate the points she makes on that. Of course, she will know—as I do, since I worked extensively with my noble friend Lady Hayman of Ullock on the Levelling-up and Regeneration Bill—that Cumbria is a very sparse rural area. When the Government look at the sizes for these local authorities, we need to agree sensible devolution geographies. The Government consider the scale, the economy, the contiguity, making sure we have no devolution islands, how we are going to deal with delivery, the alignment and the identity. It is not possible to meet all the principles. We prefer these combined authorities to have a population of around 1.2 million to 1.5 million, but that is not possible in all areas. We recognise that with Cumbria. It is important that we take account of local circumstances, so we work with the authorities to make sure we find optimal solutions to their issues.
On the constituent members, they are agreed with the constituent authorities concerned. They will vary because the areas vary, but it is important that constituent members play an important role in those local authorities. We set them up as bespoke arrangements depending on local circumstances.
On the noble Baroness’s question about commissioners, we will have a system where all mayoral combined authorities can appoint up to seven commissioners. Some may choose not to do that if it is not appropriate for their area, but we want the flexibility for those who wish to do it.
The noble Baroness asked about the assessment of effectiveness. There is an ongoing evaluation programme for the devolution programme. It is important that we do that. We have a number of authorities at different levels of devolution, including some established mayoral combined authorities. We continue to look at the programme, but the evaluation so far has told us that it is genuinely delivering for the communities involved. I am sorry if the noble Baroness does not feel that that is the case in her area; there may be people who have a different view on that locally.
The noble Baroness also asked me about the public responses to the consultation process. I take her point, but the purpose of the consultations is to gather evidence and information on the effect of establishing a mayoral combined authority over the proposed geography. A range of views was provided by respondents, including evidence setting out the potential benefits, as well as some of the concerns raised, and the Government carefully considered the responses received. The results of the consultation very much formed part of the assessment made by the Secretary of State—it needed to do so because it must meet the relevant statutory tests set out in Section 110 of the Local Democracy, Economic Development and Construction Act. For both Cheshire and Warrington and Cumbria, the tests were met.
My apologies; I did not write that down because we were called out of the Room. A deputy mayor is there to do exactly what it says on the tin: deputising for the mayor. The deputy mayor can deputise for the mayor. It is not an elected position, and I understand the noble Baroness’s concerns about that, but all those mayors will need a deputy, so the deputy mayor can stand in for the mayor at meetings and cast the mayor’s vote. That is the situation.
In conclusion, these instruments deliver the commitment made—
Lord Jamieson (Con)
The Minister kindly answered my question on the investment fund. The two issues I had with it included that it is 30-year funding. If you are going to come up with a programme of infrastructure funding over 10 or 15 years, you need certainty that you will get that £27 million or that £11 million every year. I know it is a difficult question to answer, but what assurance or certainty will the new mayor have that that funding will be available for those 30 years? I appreciate the intention, but is there certainty? The second part of that question was: will a similar level of funding be available for all the other combined mayoral authorities as they go forward, accepting the point that the Minister made about population?
The purpose of devolution is, of course, to get the powers and funding out to local areas to do the investment they need. I am not going to guarantee exact amounts for funding settlements that we have yet not agreed with local areas, I am sure the noble Lord will understand that, but it is the Government’s intention that all the new areas will have investment funds, and of course they also have powers to borrow. Provided they meet the prudential requirements that all local government borrowing has to meet, they will have those powers as well.
In conclusion, these instruments deliver the commitment made to Cheshire and Warrington and Cumbria to establish combined authorities in their areas, and I hope that the Committee will welcome these orders.
(6 days, 10 hours ago)
Grand Committee
Lord Jamieson (Con)
My Lords, this group of amendments in the Minister’s name would insert a new provision into the Licensing Act 2003 for additional powers for the Greater London Authority and the Mayor of London. We are not opposed to a greater strategic role for the GLA and the mayor, particularly where that role helps to identify key applications and promote consistency across London.
However, we harbour significant concerns about Amendment 179A, which would establish a London-wide strategic licensing oversight system. We are not persuaded that the mayor should be granted such extensive powers to intervene in and potentially overrule decisions taken by local licensing authorities. Although applicants will have the right of appeal, these provisions introduce a new layer of bureaucracy and uncertainty into what is already a complex licensing regime. We struggle to see why the mayor should be given such a decisive and potentially determinative role in local licensing decisions, particularly where those decisions are currently taken by local authorities with detailed knowledge of their communities, as my noble friend Lady O’Neill made clear. The mayor will not have that, and we are overriding local accountability. I am concerned by the provision that allows certain applications to be deemed “of potential strategic importance” when the definition of that term is to be set out not by the GLA or the mayor but through regulations by the Secretary of State.
I have similar scepticism to the noble Baroness, Lady Pinnock, about whether this actually is a devolution Bill. It is supposed to be about local democracy and trusting local people to make the right decisions for their local area. It should not be about transferring powers upward to mayors and Whitehall. Why is London again being put on a pedestal and treated differently to the rest of the UK? I appreciate that the Minister said that this could be extended to the rest of the UK. Again, I very much defer to what my noble friend Lady O’Neill said: it would make a lot of sense for this to be part of a broader review of the governance of London.
Moreover, it is not clear why the Government have chosen to introduce these provisions at such a late stage, or how they interact with existing licensing frameworks. At the very least, the Committee needs more time to consider the implications of these amendments, alongside fuller guidance from the Minister about how these powers would operate in practice.
At present, I do not believe that the justification for these amendments has been made, so I look forward to the Minister’s response and to further explanation of the rationale behind the operation of these amendments. However, we cannot support any of these amendments being made at this stage.
My Lords, I thank noble Lords for their comments on these amendments. I will be very happy to meet noble Lords to discuss the proposals further and in more detail. I will give a little more information now and, I hope, answer some of the questions that noble Lords have asked.
On why we feel that the new call-in power is needed, there is evidence of unmet potential for London’s night-time economy. A YouGov survey found that 45% of Londoners stated that they had ended a night out before midnight in 2023-24, despite wanting to stay out later—I never do but, obviously, there are people who do. Night-time spending in the capital fell by 3% from 2022-25. London also has a lower premises licence approval rate than the rest of England and Wales. Of course, the reasons for that are multifaceted but, through the establishment of a new mayoral call-in power, intended to be used only in specific circumstances, as a measure of last resort, we would hope to encourage a more enabling and joined-up approach to premises licensing that unleashes the full potential of London’s cultural hospitality and night-time economy sectors. I know we have talked many times in your Lordships’ House about the restaurant and pubs business, and so on. We particularly want to encourage that sector in London—and everywhere else, but it is important to do that for the capital’s tourism and other trades.
In answer to the questions from the noble Baroness, Lady O’Neill, the Government support the principle of localism in licensing decisions, but we are committed to putting the right powers at the right levels to drive economic growth that we want to see. Local licensing authorities are often, or in fact nearly always, best placed to make licensing decisions based on their local knowledge and in consultation with other responsible authorities, including the police and enforcement authorities. But where the licensing system affects sectors with a strategic economic role—the noble Baroness, Lady O’Neill, mentioned that aspect—it is important that city-wide considerations can be taken into account. The new strategic licensing role of the Mayor of London would enable this and provide an opportunity to adopt a similar approach to those that have worked effectively in New York, Amsterdam and Sydney.
To pick up on some specific points about how this is going to work—the noble Baroness, Lady Pinnock, asked a couple of questions about this—the mayor will draw his strategic licensing policy by consultation on it before it is published. The mayor will be required to consult each London licensing authority, which will be able to make representations about its local circumstances. The Government intend to consider this and may seek to engage with key licensing stakeholders before setting out thresholds of what that
“potential strategic importance to Greater London”
actually means in regulations. That will provide further detail on the types of licence applications that will potentially fall within the scope of the mayor’s call-in power.
In answer to the question from the noble Lord, Lord Jamieson, about why this issue has not come forward before, that is a fair point. Further time is required to develop the new mayoral call-in process, including how it would interact with existing licensing legislation. In thinking about bringing this forward, the Government have considered that sometimes the best way in which to deliver devolution across the country is to test out new powers or approaches in one or two places first. As a globally renowned centre for culture and nightlife, London represents an ideal location to test new strategic licensing powers and duties. Nevertheless, it is very much our intention to ensure that it will be possible to roll these out to other mayors across the country, subject to the provision of appropriate evidence via provisions in the Bill. Piloting things is a very good way in which to see how effective they are, and whether they get the balance right between the local decision-making to which the noble Baroness, Lady O’Neill, referred and what we might think of as a strategic call-in power—so it is very important to do that.
I thank my noble friend Lady Dacres for her comments about licensing. She and I had an informal meeting with some London leaders on Saturday. They were not all London leaders, so I will not use that as evidence because that would not be fair, but, broadly, their view was similar to that of my noble friend Lady Dacres: although you would not want this to be used all the time, it is an important power to have in a key city such as London. However, a call for evidence is out and is currently being reviewed.
We have had extensive discussions of the agent of change; it is a slightly different proposal. I know it could potentially be linked to this, so if the noble Baroness wants to get involved in the discussions on this, I am happy to include her.
Lord Jamieson (Con)
I appreciate the Minister’s very positive response to our comments. She said that this is a pilot. You would normally have a review at the end of a pilot to work out whether it has worked and the consequences thereof. I appreciate that she intends to withdraw her amendment, but it would be helpful, if these amendments were to come back on Report, to be clear about what the pilot means and what the review process is.
That is a very fair point. I was indicating that we will have some further discussions about it. If I bring further amendments back on Report, we will need to be clear about putting some flexible powers into the Bill so that we can extend it if we need to. If we look at the London project and it has not worked, clearly that does not mean that it will be extended. But we need the powers because, as all noble Lords will be aware, getting primary legislation on to the statute book is quite a process. We would rather have a permissive power that enables it, if it is needed, and then we are able to do that if necessary.
My Lords, I apologise for not having spoken in the previous debates on this Bill due to the pressure of work. The noble Lord, Lord Lansley, has spoken eloquently to his amendments, and I agree with nearly everything he has said. I will speak to Amendment 184 in my name, as I am extremely concerned about the long-term implications of Clause 54(3).
Clause 54 begins with subsection (1):
“The Secretary of State may by regulations make incidental, consequential, transitional, transitory or supplementary provision for the purposes of”—
it then it goes into the detail. My concern is with subsection (3), which, for the benefit of the doubt, I will read:
“Regulations under this section may (in particular) amend any Act of Parliament (whenever passed), including by amending this Act”.
This is an amazing power to hand to the Secretary of State in the future, whoever he or she might be. The ability to amend any Act of Parliament, which may not even be a twinkle in the eye of any future government at this stage, is breathtaking.
Until the end of January, I had the privilege to sit on the Delegated Powers and Regulatory Reform Committee. The council that advises the DPRRC was extremely concerned about the number of delegated powers in the Bill that we are currently debating. There are 92 delegated powers, and a further 42 not covered in the memorandum, due to the fact that the Bill is likely to interact with existing enactments.
Similar powers were brought forward in 2015, at which point the committee felt that the powers were too broad. However, we now have a new Government and a new philosophy. I can understand that the Government want to be able to change past and current legislation in future, but they are asking for the power to change legislation that is yet to be drafted—a power that bypasses the role of Parliament completely.
The noble Lord, Lord Lansley, spoke at length on his amendments, which relate to the Delegated Powers and Regulatory Reform Committee’s concerns about the Bill. He set out his arguments extremely clearly and referred to the committee’s 45th report, which was published on 16 January. That report details the committee’s concerns; it is extensive and raises significant issues around the way in which the Henry VIII powers will be executed. The noble Lord, Lord Lansley, has already ready out the committee’s recommendation concerning this particular power, which is as follows:
“In the light of the Government’s failure to justify the ability of these Henry VIII powers to change the effect of Acts of Parliament to be passed in future sessions, we recommend to the House that the delegated powers in clauses 54 and 71, and those in paragraph 5(3) of Schedule 24 and paragraph 1(8) of Schedule 26 are amended to remove that ability”.
I apologise for repeating what the noble Lord, Lord Lansley, said word for word, but it is really important to stress this point.
Considering this strong recommendation from the Delegated Powers Committee, as well as the concerns raised by me and the noble Lord, Lord Lansley, I hope that the Minister will be able to tell the Committee that the Government are prepared to accept this amendment and amend the Bill accordingly. This is an unjustifiable abuse of power, bypassing Parliament to seek to amend future Acts of Parliament and legislation that is not even in the initial stages of being drafted.
Lord Jamieson (Con)
My Lords, I will not seek to repeat what has been said so eloquently by my noble friend Lord Lansley and the noble Baroness, Lady Bakewell of Hardington Mandeville.
The issue is quite simple. This is supposed to be a devolution Bill about local empowerment; it is not supposed to be about giving the Secretary of State huge powers, in particular to amend things that have not even been thought of yet. On restricting things in the way that has been suggested, there are some flexibilities in this Bill, historical Bills and Bills for the current Session, but having the power to amend something that is not even a twinkle in the eye of a new Minister— whoever they may be—is just going too far. The Delegated Powers and Regulatory Reform Committee has also said this.
This matter needs very deep thought on the part of the Government. We will come back to it if the Government do not seek to address this issue of a Secretary of State having the ability to amend something that has not been thought of yet. Frankly, I find it difficult to understand why you would want to amend a law you have not written yet, because you could always bring in powers that are relevant to that law as part of any legislation you then bring forward.
My Lords, I thank the noble Lord, Lord Lansley, and the noble Baroness, Lady Bakewell of Hardington Mandeville, for their proposed amendments to the delegated powers in the Bill. I also thank the House of Lords Delegated Powers and Regulatory Reform Committee for its report and its recommendations regarding the delegated powers in the Bill, to which these amendments relate. I will consider its report ahead of Report and will make sure that all noble Lords who have joined this debate on delegated powers have sight of that response.
I turn to Amendment 180A in the name of the noble Lord, Lord Lansley, which seeks to limit the ability to make consequential, supplementary or incidental provisions that would follow a decision to repeal the strategic licensing regime. This amendment would prevent such provisions being made to future legislation. Our intention behind introducing the new strategic licensing pilot in London is clear: to trial a more strategic approach to licensing in London.
However, we recognise that any significant change to long-established arrangements may, in practice, give rise to operational or policy difficulties that could not have been fully foreseen at the point of legislating—I referred to that on an earlier group. It is for that reason that we have provided a power for the Secretary of State to amend the new strategic licensing measures within the first five years of them coming into effect. This will ensure that the Government can act swiftly and proportionately to protect the effectiveness of the wider licensing framework if necessary. The Secretary of State must be able to make consequential, supplementary or incidental provision that repeals or revokes legislation made at a later date, if necessary, in the event that the strategic licensing measures are repealed.
My Lords, this is a most interesting group of amendments, and there is deep food for thought in what should come back to the House when we get to Report.
I am grateful for the contribution of the noble Lord, Lord Fuller. I must say that I had not understood the figure of 50,000, but at the very end he clarified that that could be a matter of discussion. My noble friend Lord Wallace of Saltaire has covered that issue as well. A difference between my party and that of the noble Lords, Lord Fuller and Lord Gascoigne, is that they are both trying to give excess power to the Secretary of State.
The noble Lord, Lord Gascoigne, asked at the very beginning of this group why we had not supported his previous amendment a few weeks ago on the power of the Secretary of State to make a decision on whether an authority was fit to undertake additional powers. Our concern was that these matters should not lie with the Secretary of State, who would have power to make these decisions without necessarily having the right degree of accountability for it. It is better to give the power to local electorates.
In the end, I am not sure that local communities need to be protected by the Secretary of State from the level of tax to be paid. I think that the local ballot box is the protection at that stage—so I hope that, when the noble Lord thinks about bringing this amendment back on Report, he bears in mind that the major power lies with the local electorate.
My noble friends Lord Wallace of Saltaire and Lady Janke both raised issues around fiscal power and the understandability and accessibility of financial matters for local people. This is of fundamental importance; it is about devolution. We need to have a transparent negotiation of fiscal powers of government. I accept totally that this is a process—it does not happen overnight—but I hope that the Government’s consultation on powers over tourism tax will be positive. Local areas are going to have to be more responsible for the level and nature of the taxes that they raise to pay for local services. We look forward to an outcome of the negotiation.
The noble Lord, Lord Bassam, raised a very interesting question about the business rate supplement. I want to think further about that, because it is a very interesting suggestion. We have to have the detail right. One thing I have noticed about raising taxes locally is that, if people know what it is that the extra money that they are paying is going to be spent on, there is a direct relationship, which you tend to get with parish and town councils and with some kinds of business rate supplements. I think there is potential here for further thought.
I say to the noble Lord, Lord Bassam, that we will take this away and think further about the possibilities for driving ahead on a system of business rate supplements supported or underpinned by clear consultation with local areas and a clear attachment to a specific project. Then, the general public will be more amenable to what councils are trying to do and how the funding is going to be provided.
My name, alongside that of my noble friend Lady Janke is on Amendment 190. I hope that the Minister will be positive about thinking through bringing forward proposals for fiscal devolution because, for devolution to work, you have to give greater powers over fiscal policy to the constituent parts of England. I hope that the Minister will give us a positive response to this group of amendments.
Lord Jamieson (Con)
My Lords, I thank everyone who has spoken on this group of amendments. We keep coming back to the same sorts of issues as in the previous group. We were talking about devolution in relation to health, and fiscal devolution and trying to extract money out of the NHS.
Now we come to a different level of fiscal devolution, and my noble friend Lord Gascoigne raised the point that a lot of people outside the London bubble are frustrated. I emphasise that it is not just in the north; I was on the south coast in Southampton this weekend, where there are lots of frustrated people. I can assure you that if you drove along the pothole-encrusted roads of Bedfordshire, there are lots of frustrated people there as well.
This is important because people care about their communities and they want their communities to be better. They care about place, and you cannot create great places by diktat from Whitehall. I recall saying that two or three times earlier in this Committee. That means you need real devolution and real powers. It also means real fiscal devolution; we have a number of suggestions on fiscal devolution here.
The noble Lord, Lord Shipley, and my noble friend Lady Scott made the point that parish councils, particularly small parish councils, are very close to their communities. People can easily see what that extra £10 or £20 or £50 is being spent on—such as extra grass cutting or improvements to the village hall—and they are quite amenable to it. As you start moving away from that and you start breaking that relationship, it becomes much more difficult.
One of the great dangers with fiscal devolution, much as I believe in it, is that central government—I am not making a political point here, but I am blaming Whitehall and the Treasury—see that as an opportunity to raise tax by the back door. We have seen government regularly passing additional responsibilities to local government with a short-term grant and then expecting the council tax payer to fund that burden.
One of the big issues that we have in local government at the moment is that a lot of responsibilities have been passed down; responsibilities are then growing quicker than the tax base, which means many of these issues of place are facing a fiscal squeeze. We have this dichotomy or dilemma: we may want fiscal devolution, but how do we avoid central government cost shunting?
My noble friend Lord Fuller was implying the same thing. It is great to have fiscal freedoms for parish and town councils, but we do not want cost shunting from overpressed district, unitary and county authorities. How do we protect against that cost shunting, where people see higher tax bills but no benefits? Place is important. I am desperately keen for genuine fiscal devolution, but how do we protect our residents from, in effect, cost shunting from Whitehall down the line?
I will talk briefly about some of these amendments. My noble friend Lord Gascoigne’s amendment is really important, because it is not just about the Secretary of State making a judgment—that is what the Secretary of State would do anyway, if he were to devolve powers—but placing a burden on him to say that he genuinely believes that a council has the financial resources, financial capacity and management resources to do what is being entrusted upon it. It is not just a case of going, “Get on with it. Bye. It is not my fault; it is your fault”, then, a year later, not giving it the money that it needs to deliver those things.
Forgive me, because I cannot remember whether it was from the noble Lord, Lord Wallace of Saltaire, or the noble Lord, Lord Shipley, but I accept his point. However, the contra argument is that it places a burden on the Secretary of State to make sure that it is feasible. We need to think about that very important distinction.
The other point to make is that we are going through reorganisation here and we need to ensure that this is not shuffling the deckchairs on the “Titanic”. It has to be about meaningfully improving services for our residents and about better value for money. We should not have reorganisation for reorganisation’s sake, which is why I think this amendment is the right approach.
We have had a number of amendments on fiscal devolution, but I will not go through them all. I have a concern about cost shunting and we have to protect against that. We need to give people real fiscal powers in order to deliver better services for their residents. What we do not need—some of the announcements that have been made today are like this and our Government were the same—is to have to appeal to the Government to get funding to do something. That means the Secretary of State is still in charge and that you are not determining your local priorities but, by the way, all the councils will do it because they want as much money as they can for their residents to deliver as best they can.
This must be underpinned by a real understanding that there are both costs and benefits from devolution, and that the funding arrangements are fair and transparent to local government. One of the biggest fears I have in local government is that the resident and local taxpayer does not see what their funding goes on, because far too much of it is dictated by the Government. These are responsibilities and duties with no funding and no powers, which is something that I might come back to on the next group of amendments. I look forward to the Minister’s response.
My Lords, I thank the noble Lords, Lord Gascoigne, Lord Wallace and Lord Bassam, and the noble Baroness, Lady Janke, for their amendments in this group.
I will comment briefly on the general points that the noble Lord, Lord Gascoigne, made. It does not happen as rarely as one might expect, but I do agree with some of what he said. Nobody much cares about the architecture of local government; when I knock on people’s doors, they do not say, “Can you change the structure of local government, Sharon?” That does not happen. They do care, however, about their public services being delivered effectively. They want to see new homes built, their streets cleaned, their potholes fixed—as the noble Lord, Lord Jamieson, pointed out—fly-tipping sorted and work being done to tackle the decline of our high streets. The current system was just not sustainable. It was not working in terms of either finance or efficiency, so we have to make some changes to tackle that issue. Both making the structures work better and devolving power to local authorities are needed to make sure that they can tackle the things that are important at the local level.
Amendment 186, tabled by the noble Lord, Lord Gascoigne, seeks to place barriers on conferring new functions on strategic authorities. As per paragraph 1(4) of Schedule 25, the Secretary of State cannot confer a new function on a strategic authority unless they are
“satisfied that it is appropriate to do so having regard to the need to secure the effective exercise of the function concerned”.
That provides an adequate test to ensure that, when functions are conferred, it is with the effective delivery of that function in mind. It also enables the Government to pilot new functions with strategic authorities. We talked about some of that earlier. In these instances, strategic authorities will be required to provide an impact report on the pilot, which the Secretary of State will use to help decide whether to confer the function on a permanent basis.
The pilot process provides an adequate opportunity to test devolution before rolling it out more widely. We believe that requiring each strategic authority to have a specific plan for each function effectively signed off by the Secretary of State runs counter to the principles of devolution that underpin the Bill. It risks micromanagement of strategic authorities from Whitehall and slowing down the progress of devolution. I do not say “micromanagement” with any political side because, the last time that my party was in power, we ended up with about 160 performance indicators for local authorities. I am not in favour of that either.
Lord Jamieson (Con)
My Lords, I thank the noble Baronesses and the noble Lord for their comments on this group. It places me in a bit of a dilemma, because I have a lot of sympathy for the objects of these amendments: we agree that the environment is important, and we like community wealth building and so forth.
I refer back to my comments on the previous group. I have a big issue with placing duties on a local or strategic authority without the means and resources for them. This is very much a half-amendment, because it would place the duty without the means to deliver it. I think the noble Baroness commented that the LGA backs this, but the LGA actually said
“local authorities need statutory duties and powers, sufficient funding, and robust support to lead on climate action”,
which is a lot more than just having the duty. So, to progress on these, we need to recognise that you cannot just place a duty. I say that quite seriously because, when I was running my council, around 85% of our expenditure was on statutory duties and we had very little room for manoeuvre on any choice-based things. Given the pressures on adult social care, SEND and so forth, I am sure that if I redid the numbers now, that figure would be way over 90%, and we end up compromising on statutory duties. So I am very wary of placing lots of statutory duties without providing the means to deliver them.
The noble Baroness, Lady Jones of Moulsecoomb, talked about support. I am 100% behind providing support to do something, but that is not quite the same as saying, “You must have a duty as well as support”.
Quite a lot of local authorities are doing well on this. Many of the things that they are delivering do not require additional funding but are about making the right decisions on their day-to-day routine responsibilities for planning, regeneration, growth, urban development and all sorts of things. They are making these decisions in a way that is good for the environment, climate change, biodiversity, air quality, people and sustainability, rather than making them without thinking about these things. So a duty is not a huge imposition; it is about a mindset, not a set of expenses.
Lord Jamieson (Con)
I beg to disagree. Once you place a duty on an authority, all its decision-making needs to have that in mind. The authority can be challenged for not doing X, and X could involve significant expenditure, or it could be something that it has very little power over. To take a local example, my local council has a statutory duty on pollution in certain areas, such as Ampthill, which is just down the road from me, but it does not have the ability to stop cars going into Ampthill, and they are the cause of the pollution. So you end up with these dilemmas, and that needs thinking through. That is why I am wary. I do not disagree with the thrust of what the noble Baroness is trying to do, but we need to do it in a practical and deliverable way. All good councils will try to seek to do the right thing wherever they can.
As certain Peers have alluded to, in the future there may be somebody who might not be as keen as some of us are on the environment, well-being or anything else. That brings me to my second point: I am a huge believer in democracy. We have a very serious question to ask ourselves: do we believe in democracy? That means local decision-making and devolution, and, at times, it may mean that people do not do what we would choose to be our priority. That is a dilemma that we face and have to accept. If you believe in democracy and devolution, you cannot always seek to bind the hand of people to do what you want, because that is not devolution and democracy but centralisation and state control, which may be the right thing—
Baroness Willis of Summertown (CB)
Can I ask a question of clarification? I agree on democracy and the point that the noble Lord is making, but these are legally binding targets that we have agreed in the law through these Acts, so do we ignore the law through devolution?
Lord Jamieson (Con)
As the noble Baroness rightly says, they are legally binding targets that people need to take into account. We do not necessarily need to do it again. But I come back to my central point: do not place a duty on somebody if you do not provide the capacity for them to deliver it.
My second point is on devolution. The noble Baroness, Lady Jones of Moulsecoomb, made some interesting points about local wealth building and it probably is a very good model, but it may not be the only model. There may be other models and there may be other models that work locally, so why are we doing a one size fits all? We should trust people to deliver for their residents; that is why they get elected and re-elected. Sometimes we will make mistakes, and we do it differently the next time because we made a mistake the first time.
Those are my two key concerns that we need to focus on. First, if you provide a duty to somebody, you need to provide the means and capacity to do it. Secondly, on the issue of democracy, if we are genuine about devolution, we should be very careful about providing a centralised diktat about what we should do. That has nothing to do with the proposed areas of concern, which I have a huge amount of sympathy with.
My Lords, I thank the noble Baronesses, Lady Bennett and Lady Willis, for Amendments 192, 193, 194 and 241B. I will respond to Amendments 192 and 241B together, as their aims are somewhat shared.
During the Bill’s passage, the Government have consistently made the point that many local authorities have a high level of ambition to tackle climate change, restore nature and address wider environmental issues, including air quality. It is not clear what additional benefits, if any, a new statutory duty would bring.
The Government offer net-zero support for local government. That includes through Great British Energy, which will work with local government to help to increase the rollout of renewable energy projects. Furthermore, the Government will also partner with strategic authorities and local authorities to roll out the ambitious warm homes plan, which will upgrade 5 million homes over this Parliament to help them to save money on their bills and benefit from cleaner, cheaper heating. To strengthen our engagement with local government on net-zero strategy, policy and delivery, and to support local government to drive forward net-zero action at the local level, the Government also run the Local Net Zero Delivery Group, which last met on 9 December last year.
Local authorities already have statutory duties to improve air quality in their areas. Thanks to the combined efforts of local and central government, air quality in the UK has improved. The Government will continue to work with local authorities to reduce air pollution and its harmful effects. It is worth noting that in London, as the noble Baroness will know, the air quality target, which it was estimated would take 193 years to achieve, was accomplished in nine years. Concerted effort and clear decision-making can make a real difference.
Existing tools and duties also support efforts to contribute to targets for nature, such as local nature recovery strategies and the biodiversity duty under the Natural Environment and Rural Communities Act 2006, strengthened under the Environment Act 2021. The latter requires all public authorities to consider and take action to conserve and enhance biodiversity, which must have regard to any relevant local nature recovery strategy and to any relevant species conservation strategy or protected site strategy prepared by Natural England.
On climate adaptation, the Government already work closely with local authorities, strategic authorities and mayors, a number of whom are developing dedicated climate risk assessments. In October last year, the Government launched a local authority climate service, which provides tailored data on climate change impacts. The Government also ran the first adaptation reporting power trial for local authorities last year, providing guidance and support on how to assess climate risks to their functions and services.
I will respond to the question from the noble Baroness, Lady Willis, about the mayor not abiding the climate change duty. There is a specific competency on environmental climate change in the Bill. A mayor of a strategic authority, as well as having the overview and scrutiny powers that the body has, could be subject to a challenge by way of a judicial review for failure to meet an existing duty. There is significant power there already. The issues around local democracy and the prioritisation given to an issue is and must be subject to democratic accountability. It is difficult; we have to get that balance right. But as there is an existing legal duty, there is enough power for local citizens to be able to push their locally elected representatives. Given such existing support, and the fact that many local authorities are already taking great strides in tackling environmental decline and climate change, we do not think that this particular duty is needed.
Amendment 193 from the noble Baroness, Lady Bennett, seeks to require strategic authorities to collect and publish annual poverty data for their authority. We recognise that the policies and interventions that strategic authorities deliver have an impact on reducing poverty and alleviating its impacts. As set out in the Government’s strategy, Our Children, Our Future: Tackling Child Poverty, a broad and dedicated range of partners play a role in reducing poverty, and we will continue to do this work in partnership with local, regional, national, private and third sector partners.
Lord Jamieson (Con)
My Lords, I thank the noble Lord, Lord Wallace of Saltaire, for his amendment. I was initially a little confused, having read the amendment and then listened to his speech, but after his final comment I understand that this is a probing amendment to get the Minister and the Government to be clear about how they see the structure of the Mayoral Council, the regional devolved Governments and, potentially, councils. It is about how to create some kind of structure or how it will be structured. In that sense, I am a lot clearer and happier.
I had more concerns about an English local government council, because that would be largely duplicating the role of the LGA. As an ex-chairman of the LGA, I would be deeply unhappy and my colleague the noble Baroness would also be deeply unhappy as a fellow ex-chair. We would both agree that enhancing the LGA would be a good idea, but I am not sure that we would want an English local government council. As a probing amendment, I understand the purpose of it. The noble Lord raises some valid points about what the role of the Mayoral Council is, how it will all fit in and where the pieces of the jigsaw are. That is a good question, and I look forward to the Minister’s answer.
My Lords, I thank the noble Lord, Lord Wallace of Saltaire, for Amendment 195, and hope that he will take my regards back to John Denham, for whom I have the greatest respect. I have often worked with John on English devolution, so I respect what he says.
This amendment seeks to create an obligation to establish a national body called the English local government council. Membership of the council would comprise a person appointed by constituent members of each strategic authority and the Mayor of London. Members of the council would also be required to pay a membership fee, placing a new financial burden on authorities. Functions of the council would include working with the Government to agree a framework for the further devolution of powers; to agree funding for local and strategic authorities; and to identify a representative to participate in the Council of the Nations and Regions.
I appreciate the spirit of the amendment, as I believe that proper representation of local government into central government is incredibly important. We have worked very hard on that as a Government since we came into power in July 2024. When local leaders work together with the Government, it benefits our whole country. That is why the English devolution White Paper sets out three forums for engagement: the Council of the Nations and Regions, the Mayoral Council and the Leaders Council. Across these councils, all levels of devolved government are represented, from First Ministers to mayors to the leaders of local authorities. These forums have all met a number of times—I have been to the Leaders Council three times, I think. I can assure noble Lords that funding and furthering devolution is rarely not on the agenda for discussion, but they also discuss thematic issues as well.
It is therefore not necessary for a new council to create a framework for further devolution. The Bill is already establishing a process to extend devolution in a more streamlined way and to deepen devolution through the mayoral right to request process. While funding is discussed at all these councils, it is right and proper that local government funding is provided through the finance settlement process, which carefully allocates needs-based funding across the country. The current council structures we have in place are working well, and the flexibility afforded to them as non-statutory bodies allows us to work with the sector to adapt the forums as the needs of local leaders change. The current structures place no new burdens on authorities, with no membership fees required, as this amendment would create. For these reasons, I hope the noble Lord will feel able to withdraw his amendment.
(1 week, 4 days ago)
Grand CommitteeMy Lords, I have added my name to Amendment 131 in the name of the noble Lord, Lord Lansley, also supported by the noble Baroness, Lady Bennett of Manor Castle, and the noble Lord, Lord Shipley. The amendment requires local planning authorities, separately or jointly, to appoint one qualified and experienced person to be chief planner. It would give due recognition to the officer responsible for planning matters in each local authority, as promoted by the Royal Town Planning Institute—I declare that I am an honorary member of the institute. A very similar amendment was debated in the Planning and Infrastructure Bill last October. At the conclusion of that debate, the Minister said that she would
“keep this issue under review as we progress with further reforms to the planning system”.—[Official Report, 27/10/25; col. 1199.]
Our hope is that she will now be able to accept this proposition.
The case for a chief planner seems an excellent one. It would be a boost to the morale of those working in local planning authorities. It would represent an acknowledgement by the Government that planning needs to be recognised, as it once was, as a very prominent part of local government. When we debated this matter last year, it was noted that identifying the chief planner role is now more significant than it was following the Government’s action to achieve a national planning scheme of delegation for planning decision-making. Decisions on whether a planning application should be taken to the planning committee or dealt with by officers alone will depend on the judgment of two individuals: the elected member who chairs the planning committee and the chief planning officer. This important responsibility underlines the need for an enhanced status for the planning officer at the helm.
In preparation for the debate on this issue during the passage of the Planning and Infrastructure Bill, I spoke to the chief planner for Glasgow City Council, where legislation already confers a statutory status on the chief planning officer, accompanied by guidance from the Scottish Government on the duties, responsibilities, qualifications, skills and experience required. Glasgow’s chief planner told me of the importance of having one fully qualified person holding the position of chief planner, not least in enabling everyone to identify the key person responsible for planning matters. Indeed, events are now being organised that bring together chief planners from across Scotland, now that it is clear who shares this common identity. I spoke to an experienced planner in Wales who told me of hopes for a similar measure for Wales to that addressed by this arrangement. I strongly support this amendment as part of the devolution package for England.
Lord Jamieson (Con)
My Lords, I, too, welcome back the noble Baroness, Lady Pinnock—it is great to see her back here on her two feet. I shall speak first to Amendment 130 in my name and that of my noble friend Lady Scott of Bybrook. This amendment is straightforward. It provides that greenfield land should not be designated for development unless the relevant authority
“is satisfied that no suitable brownfield land is available within the relevant area”.
There appears to be universal agreement that building on brownfield first is the right thing to do. It provides a number of advantages. Not only does it save greenfield land, but it helps regeneration, utilises existing infra- structure and minimises transport distances, whether that is to work or to employment. It creates a better environment and promotes growth. While this is recognised, what does not appear to be recognised is the difficulty of building on brownfield land, particularly in high-cost areas such as London, due not only to the remediation costs but to high existing land use values.
When it comes to financing, if you are building an apartment block, you cannot generally sell an apartment until you have built the whole block, whereas if you are building on a green field, you can virtually sell house by house. Time scales tend to be longer and costs higher, due to the complexity of building in urban areas. Because of the high and early capital outlays, return on capital is often the determining factor, meaning that delays inevitably make projects unviable. In urban areas, it is all too easy to find grounds for objection, delaying the process. While a committed applicant may get through all these hoops, it can take years, by which time the project is no longer viable. Many do not even try, or they seek to build with lower quality in order to recoup their costs.
That is a particular problem in London. Last year only around 5,000 new private homes were started, against a target of 88,000 new homes. That has real-world consequences. London Councils estimates that more than 200,000 people in London are living in temporary accommodation or are homeless, of whom around 100,000 are children. That is more than 50% of the UK total. The previous Government introduced a presumption in favour of sustainable development. This has proved to be a very effective tool in delivering development in rural areas because the relatively low upfront costs and the potentially sudden significant uplift in land values where there is not a five-year supply mean that landowners and developers can profitably challenge the planning system and regularly do so. Local planning authorities generally recognise this and tend to be much more reasonable with applications because they do not want planning by appeal and the risk of unplanned and poor-quality developments. This does not appear to work in urban brownfield areas, where, as I outlined earlier, high upfront costs and the complexity of development militate against challenging planning decisions, with developers often taking the easier route of seeking greenfield development opportunities elsewhere.
If we are to get more brownfield development, the balance between brownfield and greenfield needs to be tilted more in favour of brownfield. That is why the previous Conservative Government proposed a strong material presumption in favour of development on brownfield land. The purpose of this amendment is to oblige planning authorities to look at brownfield first, to recognise the potential additional costs and timescales of brownfield development and, through the strategic spatial plan, to seek to address them. With greater certainty and speed in the planning process, we will get the homes that this country needs with more on brownfield, helping urban regeneration and protecting greenfield sites. While the Minister may say that this is already in guidance, that has been the case for many years and it is simply not delivering. It needs to be stepped up; it needs to be in legislation.
I will speak briefly to the other amendments in this group. The amendments from the noble Baroness, Lady Pinnock, reflect a shared concern that strategic planning powers must be accompanied by safeguards, transparency and engagement with local communities. The amendment from the noble Baroness, Lady Freeman of Steventon, would extend this to national parks in a similar vein. My noble friend Lord Lansley’s Amendment 131 relates to a chief planner. We believe it has considerable merit, and I have heard similar from both the industry and the planning profession, as he outlined. My noble friend Lady McIntosh of Pickering rightly raised again the issue of flooding and the role and benefits of SUDS. This is an important issue that needs to be addressed. I look forward to the Minister’s response on all these issues and, in particular, on whether this Government are prepared to take the necessary step of legislating for brownfield development.
Baroness Dacres of Lewisham (Lab)
My Lords, I thank the noble Baroness for tabling Amendment 132. Local planning authorities already carry out flood assessments as part of their duties, just as with conservation assessments, tree assessments or bat assessments. Flooding is already part of the routine of planning authorities’ assessments. SUDS are constantly being put in. The number of SUDS is constantly changing, and I fear that a statutory duty would cost money that could be put to better use. A local authority is best placed to assess which flooding remediation is best for an area. We have to remember that regional flooding bodies also review flooding in catchment areas as part of their duties. I fear that this amendment would cause duplication and put an excess financial burden on local authorities and the Government.
Regarding Amendment 241E, I would have thought that the national parks were protected land in a similar way to metropolitan open land, which is highly protected. As it is part of a planning authority’s duties, it should consult with all relevant parties already.
I thank the noble Lord for bringing forward Amendment 130, but I believe it would delay the building of the homes that, as he eloquently said, we desperately need across the country. Planning authorities can look only at developments that come before them; they cannot force a developer to bring an application for brownfield land, or any land. They can judge only the applications that come before them. I fear that this amendment would cause delay in delivering the houses that we so desperately need in this country.
My Lords, I also welcome back the noble Baroness, Lady Pinnock. It is very nice to see her back in her place, and I hope her leg is recovering speedily.
I thank noble Lords for these amendments relating to planning and housing. I understand the spirit of Amendment 126, which seeks to restrict the use of strategic planning powers. It is important that the right checks and balances are in place in the governance of strategic authorities. However, we believe that the Bill already puts the right procedures in place. Combined authorities and combined county authorities already have to make decisions collectively. Constituent councils each have at least one voting member and, thanks to Clause 6, decisions will require a majority to be taken forward.
Even then, there are some circumstances where we go further. For example, mayors and their authorities must consult the relevant constituent councils and local planning authorities before using compulsory purchase powers in their area. Non-mayoral strategic authorities cannot acquire land in this way without consent. I can assure the noble Baroness that when a mayor exercises their powers on mayoral development orders, there will be consultation with local communities and local planning authorities. That will be set out in secondary legislation.
Where the mayor exercises strategic planning functions directly, there are appropriate checks and balances. For example, the mayor’s spatial development strategy cannot be adopted until the combined authority or combined county authority has passed a motion to do so. I thank my noble friend Lady Shah for sharing her experience of the planning process. Introducing a requirement that every use of a strategic planning power requires the consent of every constituent council would be excessive and fetter the ability of strategic authorities and their mayors to make strategic decisions for the benefit of their whole area.
I thank the noble Baroness, Lady Pinnock, for Amendment 127. We have often had discussions about parish and town councils, and I know how strongly she feels about them. Schedules 16 and 17 already place requirements on strategic authorities to work with their constituent councils and local planning authorities, such as national park authorities, before seeking to use compulsory purchase powers on land in their area. The types of organisations they must consult or get the consent of are the same as those from which existing strategic authorities already must seek consent. Extending these requirements to parish councils would, I believe, take this too far. There are over 10,000 parish councils in England.
This amendment as written would give parish councils the ability to veto compulsory acquisitions of land. It cannot be right for a parish council to unilaterally block a strategic purchase by a strategic authority—on which all the constituent councils have agreed—that may have benefits beyond that parish. While it is of course right that strategic authorities consider the views of local communities, including parish councils, in their decisions, individual parish councils should not be able to block those decisions.
I turn to Amendment 130 from the noble Baroness, Lady Scott, and the noble Lord, Lord Jamieson, which seeks to require mayors, combined authorities and combined county authorities to prioritise brownfield over greenfield land when they designate land for development. Once the relevant provisions of the Planning and Infrastructure Act 2025 are commenced, combined authorities and combined county authorities, including those with mayors, will have a duty to produce a spatial development strategy. Spatial development strategies will guide local plans in their area; identify broad locations for development and key infrastructure requirements; and set housing targets for local authorities. They will not themselves allocate specific parcels of land for development. When preparing a spatial development strategy, authorities will be required to have regard to the need to ensure that their strategy is consistent with national policy.
The promotion and reuse of brownfield land is a central part of the current National Planning Policy Framework. Authorities are expected to give substantial weight to the benefits of using suitable brownfield land within existing settlements to maximise density. The framework particularly emphasises the importance of appropriate uses in town centres, although, of course, it will not be appropriate in all cases for development to be situated on previously developed land and town centres.
We aim to go even further to cement this approach in the proposed changes to the National Planning Policy Framework, on which we are currently consulting. New policies on development inside and outside of development boundaries promote a sustainable pattern of development by steering proposals to appropriate locations, maximising the use of suitable land in urban areas and taking a more selective approach to the types and locations of development outside settlements. Mayors will also be able to grant upfront planning permission for specific types of development on specific sites through mayoral development orders. We want to ensure that the legislation is flexible enough to allow mayors to use these orders for a range of different uses across different types of land, reflecting the mayor’s plans to support the growth of their area.
Paragraph 125 of the current National Planning Policy Framework states:
“Planning policies and decisions should … give substantial weight to the value of using suitable brownfield land within settlements for homes and other identified needs”.
Following the revision in December 2024, this paragraph has been strengthened further. It now states that proposals for such brownfield sites
“should be approved unless substantial harm would be caused”.
It is of course right that we promote the effective use of previously developed land, but we should avoid creating overly inflexible legal requirements that may not work in every situation and would serve only to inhibit the growth that this country needs; my noble friend Lady Dacres referred to these issues. Although I appreciate the intent behind this amendment, I do not think that it is necessary or proportionate.
Lord Jamieson (Con)
I thank the Minister for her response. The key issue here is the one to which I referred. We have had guidance for many years. I appreciate that there is potentially to be some mild strengthening of that guidance but the fact is that it is not working, as I illustrated with the very low number of houses that are being built in the large urban area of London. We therefore need to step up. This is not about preventing development elsewhere or slowing development down. This is a strategic plan. It is about facilitating development and putting a greater onus on mayors to find brownfield land because we know that, as we have illustrated, it is more difficult to develop on brownfield land, whether or not it is contaminated. This is not a slowing mechanism but a mechanism that will create more sites and get more development done—and with more of it being in urban and brownfield areas, protecting some of our greenfield land. It is not about slowing; it is actually about the reverse.
I understand what the noble Lord says. I do not have the statistics in front of me but I have visited a number of very good brownfield sites in London. The issue of building on brownfield is not the only issue preventing building in London; there are viability issues that are quite unrelated to that. I accept that viability can be an issue on brownfield land. Indeed, we are very much taking into account some of the issues around viability in the new packages that we are developing with London in order to encourage London boroughs and the Mayor of London to think about how we can work further to deliver against the housing demand in London.
This is a key issue, but it is not as simple as a lack of use of brownfield sites. Nearly all the housing sites that I have visited right across the country have been, to one extent or another, developments on brownfield sites. That is the right way to go. We will of course continue to monitor this, but I do not want to create an inflexible requirement that will mean that people who are in a situation where they cannot use brownfield sites cannot develop anything. We must be very careful about this, but I understand the points being made.
I turn to Amendment 131. I am glad to see that the House of Lords is taking our environmental responsibilities very seriously, because we have a number of amendments to this Bill that have been recycled from the Planning and Infrastructure Bill, of which Amendment 131 is an early contender. However, I appreciate that this amendment is slightly different in that it relates specifically to strategic development strategies. I am grateful to the noble Lord, Lord Lansley. His amendment seeks to make it a statutory requirement for local planning authorities, either separately or jointly, to appoint a suitably qualified chief planning officer. I absolutely understand the intention behind the amendment. As we discussed during the passage of the Planning and Infrastructure Act, I share the view that it is very important for planners to have a presence within the leadership structures of local authorities. As I have said previously, it is our mission to try and make sure that we highlight the role and importance of planning for all local authorities, whichever level of planning they are operating at.
However, I do not believe that this is an issue that should be addressed through legislation at this stage. The Government consider it essential that each authority should retain the flexibility to determine the most effective way to organise its own planning functions, particularly because, in England, they vary widely in scale and nature. In practice, many already operate with a chief planner, as I think the noble Lord said, or the equivalent senior role, although what that role entails varies widely between, for example, a county authority focused mainly on minerals and waste, a small district council and a large London borough.
As I promised to do during the passage of the Planning and Infrastructure Bill, I will continue to keep this matter under review as we take forward further reforms to the planning system. This is something that I am happy to explore further with local authorities and the sector as part of that work. I will aim to expedite that work, but it would not be appropriate to introduce this into legislation without doing that first. I therefore want to do a bit more work on this before we take any decisions on it.
I thank the noble Baroness, Lady McIntosh, for Amendment 132, which would require strategic authorities to prepare sustainable drainage assessments. I admire her persistence on the issue of sustainable drainage systems; she has a great deal of knowledge on this that I greatly appreciate her bringing to planning matters. I reassure her that the Government are committed to taking a systemic approach to tackling drainage issues and , in particular, improving the implementation of sustainable drainage systems. Through this Bill, we are giving mayors of strategic authorities outside London the ability to call in planning applications of potential strategic importance. Where a planning application is called in, the mayor must consider the application in accordance with the development plan for the area and national planning policy.
In December 2024, we revised the National Planning Policy Framework to require all developments that may have drainage impacts to incorporate sustainable drainage systems. We are proposing to go further through the current consultation on the new framework, which proposes that all sustainable drainage systems should be designed in accordance with new national standards introduced by the Government last year. The consultation also includes proposals for clearer engagement between plan-making authorities and wastewater companies when plans are being made, taking into account the impacts of planned growth. This is to provide a clearer understanding of capacity and any additional infrastructure needs.
Against this background, I am concerned that the noble Baroness’s amendment would impose a burden on strategic authorities without being effective. Mayors of strategic authorities will deal with only a small number of planning applications themselves, so it would be disproportionate to expect them to produce a statutory drainage assessment, which would likely be very partial, as they would not be able to look holistically at all potential development coming forward in their area. Nor should this amendment be necessary, given the steps that we are taking to improve the assessment of drainage needs and the delivery of sustainable drainage systems and the clear requirement for drainage matters to be addressed when individual development proposals are being considered.
I will take back the issue that the noble Baroness raised on the specific legal case. That is as a relatively new court decision, so I am sure that the MHCLG team are reviewing any impact on the Bill. I will respond in writing to her and other Members of the Committee on that.
My Lords, I will be brief. I support all three of the amendments tabled by the noble Lord, Lord Best. The contributions so far have been very helpful; I hope that the Minister will take due notice of them.
I particularly support the optimal use of land. Amendment 240 talks about placing
“a statutory duty on English local authorities and all forms of development corporation, to secure the optimal uses of their land, including when disposing of it, to achieve public policy objectives and requirements”.
This really matters. It is fundamental to achieving the housing growth objective that the Government have set themselves. I very much hope that the Minister will be very positive when she replies; if not, and if the noble Lord, Lord Best, wants to return to this issue on Report, he will have our support in so doing.
Lord Jamieson (Con)
My Lords, I will also speak briefly in support of what the noble Lord, Lord Best, has raised with these three amendments.
First, Amendment 133
“would enable the Secretary of State to support the creation of Mayoral Development Corporations”.
Noble Lords have already outlined why development corporations are a good idea, so I will not repeat that. The one thing I will say is that, in getting things done quickly, there may be some issues with the wording; there is still a role for local councils, too, and we want to make sure that they are not forgotten.
I have a few specific questions for the Minister. First, how will the Bill directly strengthen the role of development corporations, both improving their effectiveness and ensuring that they are readily used to support strategic plan-making? Secondly, do the Government believe that the powers currently available to development corporations are sufficient to meet their ambitions on large-scale housing development and regeneration in mayoral areas? Finally, do the Government see development corporations as a central delivery vehicle for the future mayoral growth strategy? If so, why is that intent not reflected more clearly in the Bill?
If I understand them correctly, Amendments 240 and 242 are similar in effect, but one applies to public land and one to local authority land. They aim to secure the optimal use of public land,
“including when disposing of it”,
in pursuit of wider policy objectives. The intent behind these amendments is plainly sound. Numerous Governments have sought over the years to ensure that public land is used strategically, transparently and in a way that supports the long-term social and economic outcomes we all desire. The Government may have some issues with the drafting—in particular, taking into account whole council objectives, not just the specific objectives mentioned—but I hope that, in that spirit, they will reflect carefully on whether the Bill, as currently drafted, goes far enough to meet these ambitions, as well as whether there is scope for the legislation to do more to embed those principles in practice.
My Lords, I thank the noble Lord, Lord Best, for his keen interest in and support for the Government’s intentions on mayoral development corporations. I can announce that earlier today, Minister Pennycook announced a consultation on a development corporation for Greater Cambridgeshire.
I begin with Amendment 133 in the name of the noble Lord, Lord Best. Clause 37 and Schedule 18 extend the ability to establish mayoral development corporations to all mayoral strategic authorities. They are powerful delivery vehicles that let mayors bring together private and public sector expertise to tackle strategic spatial challenges in their area. However, it remains the decision of each mayoral strategic authority as to whether a mayoral development corporation is the right vehicle in its area and for each challenge.
Lord Jamieson (Con)
My Lords, I will speak briefly to these amendments that relate to culture. I again welcome the good work of the noble Earl, Lord Clancarty, on culture, and we welcome the spirit of Amendment 147, which seeks to have a cultural ecosystem plan and to protect cultural assets.
Culture is not always easily defined, and decisions about the forms or expression of culture that should be prioritised can be the subject of significant debate. Nevertheless, we often recognise culture when we encounter it. It is the old adage, “Try describing an elephant, but you sure as hell know what it is when you see it”. Much of it is often taken for granted, whether that is historic buildings, works of art, cultural events or long-standing traditions, such as choral music in our churches. Mayoral combined authorities and local councils should recognise the cultural assets that exist in their communities and do what they can to support them. That said, I have some reservations about this amendment as currently drafted; it needs careful thought on that drafting just to ensure that it does not end up encouraging either vanity projects or leading to a more rigid and formalised definition of a cultural asset. That potentially risks some limiting. It is drafting that we feel we need to think through. I thank the noble Earl, Lord Clancarty, for his commitment and for this amendment.
Amendments 141 and 146 in the name of my noble friend Lady McIntosh of Pickering seek to ensure that local growth plans make provision for cultural venues. My noble friend raises several important points, and I hope the Minister will address them directly.
Finally, Amendment 222 would place a duty on local authorities to have regard to the agent of change principle, and I will not recycle all the arguments we went through in the last session of the Planning and Infrastructure Bill. While the drafting may need a little refining, I hope that this amendment serves as a useful nudge to the Government to reflect further on how best to protect cultural venues from unintended consequences of development.
My Lords, I thank the noble Baroness, Lady McIntosh of Pickering —who never tests my patience, she has so much knowledge and experience—and the noble Earl, Lord Clancarty, for their amendments on the role of culture in local growth plans and on the agent of change principle.
On Amendments 141, 146 and 147, the Government are committed to ensuring that arts and culture thrive in every part of the country. In January, the Government announced an investment package of £1.5 billion, of which £1.2 billion is new, to support arts, culture, museums, libraries and heritage. Noble Lords have made a very powerful case for the inclusion of culture, heritage and arts to be included in mayoral competences, which is still under active consideration. We have committed to working with mayoral strategic authorities, including through a devolved fund, to drive growth in this important sector.
We know that mayoral combined authorities and mayoral combined county authorities recognise the role of culture and the creative sector in supporting thriving communities. I also mention the cohesion role that they play, which was mentioned so powerfully by the noble Baroness, Lady Prashar, in an earlier debate on this subject. Indeed, many of them are raising culture in their local growth plans. Many places are taking this further, such as Greater Manchester with its dedicated culture strategy and the West Midlands—for the noble Baroness, Lady Griffin—establishing a partnership programme with the industry. Indeed, the noble Baroness gave other powerful examples. I take this opportunity to congratulate those two absolutely brilliant young women from the BRIT School who won Grammy awards. They absolutely stormed it at the Grammy awards the other day—so congratulations to them.
Introducing an additional duty would be burdensome and, as demonstrated, is not necessary to achieve the desired effect. In December, the noble Baroness, Lady Hodge, published her independent review of Arts Council England. Following that, the Government are considering how to ensure that culture is supported by strategic authorities. As part of this, we are considering how it relates to all strategic authorities, not just the mayoral combined authorities and mayoral combined county authorities that are developing local growth plans.
Specifically on the amendments from noble Baroness, Lady McIntosh, which relate to the pipeline of investment projects that must be set out as part of local growth plans, I point out that our guidance sets an expectation that this pipeline should be a shortlist of projects that are critical for unlocking growth, with the potential to crowd in private investment, and capable of unlocking significant returns. It is our view that, ultimately, it must be up to local areas to determine which projects fit that bill. These amendments would run counter to that principle and would require a one-size-fits-all approach that I know many Members are wary of. Rather than being mutually reinforcing for local growth, and the arts and culture, these amendments could cause confusion over the types of projects to include as part of that investment pipeline.
I thank the noble Baroness, Lady McIntosh, for her Amendment 222, and share her desire to ensure that new housing does not constrain the operation of existing facilities in the surrounding area. I think that the music trust makes a very powerful case in this regard. However, new legislation would be duplicative of existing policy and is also less flexible, as it gives authorities less ability to weigh important considerations when making planning decisions. The agent of change principle is firmly established in the planning system as a relevant policy consideration. The current National Planning Policy Framework is clear that businesses should not have unreasonable restrictions placed on them as a result of development permitted after they were established.
Local planning authorities can request noise impact assessments when they consider it necessary; when making decisions, they have the ability to consider factors such as the type of development and how close it is to major sources of noise. The planning process can help to reduce adverse impacts by using measures such as careful layout and good design to limit noise transmission. The licensing regime also already enables local authorities to consider the agent of change principle when making decisions. The legislation is designed to recognise that different communities face different challenges, and local licensing authorities are able to incorporate the principle into their statements of licensing policy if they consider it necessary or useful to do so.
Furthermore, local authorities can consider a range of factors when deciding whether a complaint amounts to a statutory nuisance. They have a legal duty to investigate each case individually, taking into account relevant circumstances and their knowledge of the local area. I recognise the importance of safeguarding key cultural establishments from new residential development, and we are already taking a number of steps to improve the implementation of the agent of change principle. I hope that answers the points from the noble Lord, Lord Freyberg, about this being in place. We want to toughen it up, and I will talk now about some of those steps.
In planning, we are consulting on a new National Planning Policy Framework, which includes the option of strengthening the agent of change policy and clearly setting out that applicants must consider both the current and permitted levels of activity for nearby existing uses, such as licensed music and cultural venues. As I pointed out before, although the National Planning Policy Framework is not a statutory document in itself—it cannot be because it needs to be flexible as circumstances change—it sits in the statutory planning process and carries substantial weight because of that.
In licensing, we recently conducted a call for evidence as part of the licensing reforms programme, which included a question on the application of the agent of change principle within the licensing regime. Detailed analysis covering responses to this will be published in due course.
For all these reasons, I hope that the noble Baroness, Lady McIntosh, and the noble Earl, Lord Clancarty, will feel able not to press their amendments.
(2 weeks, 3 days ago)
Grand Committee
Lord Jamieson (Con)
My Lords, we have had an interesting debate. In essence, we are debating a philosophical issue here. I firmly believe in democracy. Elections take place; your Lordships would be surprised to know that I do not always like some of the decisions that the electorate make, but I will defend every time the public having the opportunity to elect whom they want to represent them. That is a priority.
Just because I do not like it or just because they have a second job that I may not think appropriate, they should have that opportunity. We need some protections in place for fraud and other things, but I believe in democracy and, in essence, that is what the comments of my noble friends Lord Fuller and Lady O’Neill are about, and I associate myself with them. We should not prevent people standing for election; we should allow the electorate to make their choice. That is what democracy is. We may all have our views about whether a job is too big and therefore we cannot have somebody doing two of them but, if you believe in democracy, you believe that the electorate should have the facts presented in front of them and they should be given that choice. That is my strong philosophical view. We should not be telling the electorate, “No, you cannot have this person because they are already too busy”. Therefore, I genuinely believe my noble friend’s comments and that it is right that we should trust the electorate.
I appreciate that that may not align with certain party rules on different things, but there is no reason that the law has to mirror a certain party’s rules. I have no problem with whatever party having particular rules for the candidates they choose. That is the right thing to do. I know, from my own experience as chairman of the LGA, that the Conservative group had some very different rules from the Labour, Liberal and independent groups for how long people could stand and who was eligible. That is fine; I would not criticise the rules that Labour or the Liberals had, and I hope they did not criticise our rules. That was a choice; we were not imposing them by statute.
I very much support both the amendments of my noble friend Lord Gascoigne and the proposal that this clause not stand part of the Bill from my noble friend Lord Fuller. If Clause 16 stands part, the amendments proposed by my noble friend Lord Gascoigne would introduce a certain amount of flexibility. Given the amendments that the Government are proposing, what would happen if an election were to take place, let us say, 10 days before the end of a parliamentary term? Would the Government really want to impose a mayoral election? I am not quite sure that 10 days works, but I am sure your Lordships get my gist. If Clause 16 were to stand, a certain amount of flexibility would be beneficial, notwithstanding my previous comments.
I also agree with the Government’s amendments, assuming that eight days is the correct period and would give time for an MP to stand down and so forth, but I have a particular question on this. It may be very unlikely, but what happens if an election for a mayor happens when Parliament is not sitting? My understanding is that an MP cannot resign when Parliament is not sitting. Could the Minister at least consider that? I am not necessarily expecting an answer here, but a written answer would be helpful for everyone.
The fundamental point is why this Government believe that the electorate are not the right group of people to decide who represents them, even if they decide that it is Andy Burnham.
My Lords, I thank the noble Lords, Lord Gascoigne and Lord Fuller, for their amendments, and the noble Baroness, Lady O’Neill, for moving the amendment from the noble Lord, Lord Gascoigne, on members of legislatures disqualified for being a mayor of a strategic authority, and for probing whether Clause 16 is needed.
It is not the job of this Committee to debate the Labour Party rulebook or decisions of its national executive committee. Your Lordships must trust me that they do not want that job. I thank the noble Baroness, Lady Royall, and the noble Lord, Lord Shipley, for their interventions on that issue.
Clause 16 will prevent individuals being a Member of Parliament, or of the devolved legislatures in Scotland, Wales and Northern Ireland, and a mayor at the same time. This is an important clause for two reasons. First and most critically, the post of mayor is a vital role at the forefront of delivering change—whether that is economic growth, public services, planning for the strategic area, transport or many other issues—and its responsibilities will only increase with this Bill. The role must demand a person’s full attention as a full-time post, rather than being a part-time position done alongside another vital public service role.
Secondly, elected members and mayors have a duty to represent the constituents who elected them. The noble Lord, Lord Shipley, raised the potential issue of having different constituencies. Fulfilling two different roles on behalf of different geographical areas could lead to conflicts of interest or undesirable trade-offs. This is absolutely not party political; it is common sense. Indeed, it is now the case that those mayors who are also police and crime commissioners—Andy Burnham and Tracy Brabin—cannot be Members of a UK legislature at the same time.
I know that this House operates on a slightly different basis, but when I joined it, I was still leader of my council. As a Minister you cannot do both jobs at the same time, but even before I was a Minister, I would not have dreamed of trying to do so. They are different jobs; both carry a heavy level of responsibility, and it was important to me to focus on one.
I apologise; I could have been clearer on that. The noble Baroness is quite right: it is the elected legislature. In view of my comments, I ask that noble Lords do not press their amendments.
Government Amendments 77, 80, 82, 85 and 90 will modify Clause 16 to introduce a grace period in which a mayor can hold office and simultaneously be a Member of a UK elected legislature without being disqualified. The period will be eight days. To answer the question from the noble Baroness, Lady O’Neill, the eight days enables the Chiltern Hundreds process to happen—that is the period required for going from being an MP to being a mayor. To go from being a mayor to being an MP, it enables the mayor to put their affairs in order before they take up their post as an MP. In the event that a mayor is running to be a Member of a UK legislature, it will be eight days beginning on the day when they are elected to that legislature.
I will write to the noble Lord, Lord Jamieson, as I do not know the answer to his question. It is important that Members are given reasonable time to get their affairs in order and to ensure their resignation from the respective legislature. These amendments address concerns raised in the other place about ensuring that an orderly transition can occur in the event that an MP is appointed as a mayor. Similarly, mayors running to be a Member of a UK legislature would otherwise be disqualified immediately on election. Introducing the grace period provides a period of transition for the outgoing mayor to get their affairs in order. I commend these government amendments to the Committee.
Lord Jamieson (Con)
I raised another point in relation to the amendment in the name of my noble friend Lord Gascoigne. With a very strict timetable of eight days, one could envisage situations where any sensible person would stand back and ask, “Do we really want to have a mayoral election for the sake of two, three or four weeks?” Will the Government consider a bit more flexibility?
I apologise; I meant to say to the noble Lord that I will write to him about the situation in which Parliament may not be sitting when that election takes place.
Lord Jamieson (Con)
I appreciate that the Minister will do that, but I was also making the point that the amendments in the name of the noble Lord, Lord Gascoigne, would at least provide some flexibility. The common-sense approach would be to ask, “Why would I have a mayoral election this month when there’s one happening next month anyway?” Can there be a bit more flexibility? As the Labour Party has rightly said, it costs a lot of money to run an election in Manchester.
I will reflect on that question and come back to the noble Lord.
Lord Jamieson (Con)
My Lords, I shall speak briefly to these amendments in the name of the noble Baroness, Lady Thornhill, who asked a number of important and timely questions.
Let me use her first amendment in this group as an example. It would require the Secretary of State, when making regulations, to consider and
“minimise any conflict, overlap, or duplication between the functions of the Mayor and the functions of other authorities or public bodies”.
This is absolutely sensible and common-sense, and it should happen. However, I suggest that, for clarity, this should extend also to Whitehall, from where powers are devolved; then, with the exception of oversight, those powers and the bureaucracy involved should no longer exist within Whitehall.
The Bill amends the 2023 Act through numerous schedules and amendments. It is right, therefore, that we ensure this clarity and avoid unnecessary overlap. I am sure that many Members in this Grand Committee will remember the passage of the Levelling-up and Regeneration Bill through the House. It was a long and complex piece of legislation—I pay tribute to the excellent work done by my noble friend Lady Scott—and the changes in this policy and space must be approached with care. I am keen, therefore, to hear from the Minister about the Government’s overall approach to avoiding unnecessary and costly duplication and legal uncertainty, in relation not just to this amendment but across the Bill as a whole.
My Lords, I thank the noble Baroness, Lady Thornhill, for her amendments on the role of mayors. Before I respond to these amendments, I want to clarify the rationale for Clause 18. The clause will extend an existing power of the Secretary of State to provide that certain general functions may be exercised solely by a mayor. The power currently exists in the Local Democracy, Economic Development and Construction Act 2009 and, as the noble Lord, Lord Jamieson, said, in the Levelling-up and Regeneration Act 2023. This clause will ensure that it can also apply to general functions conferred under any other regulation or Act of Parliament. The extension of this existing power reflects the broader range of routes through which functions may be conferred on strategic authorities and their mayors, once the current Bill becomes law.
Amendments 91 and 92 seek to amend this clause and prevent the potential for conflict, overlap or duplication between a mayor’s functions and those of other authorities or public bodies. As your Lordships will know, mayors of combined authorities or combined county authorities are not corporate entities in themselves. For that reason, all functions must be conferred on the underlying authority rather than directly on to the mayor. However, some functions may be designated as mayoral functions, as they are to be exercised only by the mayor. Where functions have been made mayoral, they typically relate to the management of day-to-day activities.
Key strategic decisions still require approval by the strategic authority constituent members. To give an example, all members will vote on which roads form part of a key route network, after which the mayor will be responsible for managing it. This will allow for swifter decision-making and more effective governance on day-to-day matters.
It will be important that all tiers of local government work together to benefit their communities. This is why principal local authorities will be embedded within the decision-making structures of strategic authorities as full constituent members. This will ensure that they play a central role in drawing up specific strategies and plans, such as local growth plans. Furthermore, before any new function is conferred on a strategic authority by regulations, the Secretary of State will be required to consult the constituent councils of any affected strategic authorities and any other person who exercises the function concerned. This will ensure that the views of those affected are properly considered.
I hope that, with these explanations, the noble Baroness will feel able to withdraw her amendment.
Lord Jamieson
Lord Jamieson (Con)
My Lords, Amendments 98 and 99, tabled in my name and that of my noble friend Lady Scott of Bybrook, concern the treatment of local partners in the Bill. While the Bill places a duty on strategic authorities to convene local partners and an obligation for those partners to respond, this falls short of meaningful consultation or genuine co-production. Without an additional requirement to engage substantively, Clause 21 risks becoming little more than a tick-box exercise, as the Local Government Association has warned.
Clause 21 will give the mayor of a strategic authority the power to convene, but what matters is that they can get something done. If a body is competent in an area but does not hold the power to make decisions, allocate resources or change delivery, what is the point of convening a discussion? Is the expectation that those with competence will be able to influence those with power, or that power will in time follow competence? Or is the purpose simply information sharing and having a nice cup of tea?
More practically, how do the Government envisage that these convened meetings will lead to tangible outcomes if those around the table lack the authority to act on what is discussed? I raise this not as a criticism of the clause but as a genuine question of intent. This is a very real issue. As chairman of the Local Government Association, councils continually raised with me the difficulties of getting local partners to genuinely work together to deliver for the local area. I am a huge believer in devolution and think that the local area, whether it is a strategic area or a council, will better deliver for its residents than something directed down from Whitehall.
The propensity of partners is to focus on the short term rather than the fundamental long term. I raise a case in point. On health, we all recognise that prevention, early intervention, health hubs, supporting the vulnerable in suitable homes and a co-ordinated approach to hospital discharge are all the right things to do. However, I recall sitting down at a meeting with my local NHS trust chiefs and they said, “We absolutely agree with you, but on Monday morning the chief executive”—the now noble Lord, Lord Stevens—“will ring me and ask: what is my A&E waiting time? How many discharges do I have today? That is why I have to focus on that”. It is therefore important that the priorities for the area are reflected in those partners.
This is also the case, particularly given their role in economic growth and strategic planning, for things such as drainage boards, utility companies, the DWP and the Highways Agency. Their focus is too often on what matters nationally and what their masters in Whitehall are saying. While they are sympathetic, they will focus on those issues, when there is an important duty to focus on the local.
Fundamentally, if meetings and responses do not amount to meaningful action and outcomes, there is not much point. Genuine devolution is about consent and local leadership. It is not about Whitehall and Ministers sitting behind desks mandating how partners should collaborate. These amendments seek to ensure that partnership under this Bill is real, accountable and rooted in local decision-making rather than some centrally imposed obligation. I beg to move.
Lord Bichard (CB)
My Lords, I will speak to Amendment 237 in my name. I thank the noble Baronesses, Lady Scott and Lady Eaton, and the noble Lord, Lord Jamieson, for adding their names to it. I know that the noble Baroness, Lady Eaton, wanted to be here this afternoon; she has not been well this week so, on the Committee’s behalf, I wish her well.
My simple amendment seeks to place a duty on local public service partners to co-operate. Many people believe that the governance system in England has two major flaws. The first is that it is excessively centralised—probably the most centralised in the developed world—which this Bill seeks to address. In my judgment, the second major flaw is that statutory agencies have too often failed to work effectively together, a problem which has been exacerbated by the way in which the state has fragmented over many years. Put simply, we have established ever more agencies—some of them single purpose—in the belief that this would bring sharper focus and greater efficiency. In reality, this fragmentation and lack of collaboration has produced more negative than positive consequences.
For example, it has produced disjointed services which do not align with the needs of ordinary people. They just do not recognise them. It has produced policies and services which overlap and, at worst, conflict. As I shall go on to say, that costs a lot of money. The same lack of collaboration has produced waste, additional cost and a failure to share data and information. That has been most tragically evident in the never-ending cases of child abuse. A lack of sharing data and information is at the core of those tragedies. Fundamentally, it has produced a damaging culture of competition between providers when ordinary folk just want to see collaboration, partnership and co-operation to address their needs.
Down the years, various attempts have been made to tackle this silo working. Central government departments have tried to work in a more joined-up way. Noble Lords must form their own opinions as to whether that has been successful; I think it is a work in progress.
After the local government reorganisation in 1974—and I know that it is difficult for noble Lords to believe that I was there at the time—one or two county authorities appointed liaison officers to encourage closer working between districts and county councils. I was one of those. In 2012, health and well-being boards were established to improve working relationships between health authorities and local authorities, particularly on the subject of social care. More recently, health authorities have set up their own integrated care boards—again, with variable success to date. The last Labour Government championed an initiative, in which again I was pleased to be involved, called Total Place, which was enthusiastically embraced by many local agencies. More than 100 places quickly endorsed the concept of Total Place but, when the Government changed, they decided not to continue with Total Place. Now we have this Bill which, as we have heard, includes provisions for strategic authorities to convene meetings that partners will attend, again to ensure better co-operation.
Lord Jamieson (Con)
My Lords, this has been a genuinely useful debate, raising the key issues of the duty to co-operate and co-operation in local areas. As the Bill stands, it places a duty on strategic authorities to convene as partners and an obligation for them to attend. However, as several noble Lords have pointed out, it falls short of requiring meaningful engagement or genuine co-production. Without a clearer expectation of substantive collaboration, there is a real risk, as highlighted by the Local Government Association, that Clause 21 becomes a consultation in form but not in substance.
I listened carefully to what the Minister said. I believe she said that she agreed with the spirit of the amendments from the noble Lord, Lord Bichard, and the noble Baroness, Lady Royall of Blaisdon. However, she then seemed to row back a little on implementing them; she had a concern that placing a duty to co-operate on partners would be a burden. As we have all experienced in the past with Total Place and other things, without a solid mechanism in place, we end up with people getting on with what they perceive as their day job and not co-operating together.
I am supportive of the amendments in the names of the noble Lord, Lord Bichard, and the noble Baroness, Lady Royall of Blaisdon. I particularly congratulate the noble Lord, Lord Bichard, on his amendment, which we were pleased to sign. Our support that one was a balance of judgment; we did so because we thought that the wording was somewhat clearer and easier to interpret, but we readily accept that, at this stage, the precise wording matters less than the principle. I urge the Minister to look again at the principle of whether the Bill, as currently drafted, is strong enough to deliver the whole-area collaboration that devolution both promises and requires.
If the Bill is to fulfil its promise, devolution must mean more than new structures; it must reshape how public sector services work together on the ground. Will the Government, between now and Report, consider how best that principle can be put more firmly into legislation? It is quite clear that, in this Committee today, there is a feeling that greater firmness is needed to make this happen—rather than just having a talking shop, which we have had in the past to some extent. With that, I beg leave to withdraw my amendment.
My Lords, I will be brief. I fully support what the noble Earl, Lord Clancarty, and the noble Lord, Lord Freyberg, said. To some extent, the noble Baroness, Lady Bennett, touched on the issue that I wanted to raise about a broader meaning of the word culture. Culture is used to bring people together and bring social cohesion. It is a deliberate action taken by people to build and deepen democratic behaviours and citizenship. I want to register that much broader meaning of the word culture, because if we can use culture as a vehicle for bringing people together, that good practice can be used across regions, which will be beneficial. I elaborated the reasons for that in my previous comments.
Lord Jamieson (Con)
My Lords, I will try to be quick, given the time. This has been a useful debate. I am sympathetic to the principle behind Amendment 100 in the name of the noble Earl, Lord Clancarty. Culture really is the glue that glues local areas together. I look forward to hearing the Government’s response, because collaboration across boundaries is very important. In a similar manner, Amendment 101 in the name of the noble Lord, Lord Ravensdale, is both sensible and welcome, recognising again that economic activity, trade and so on cross boundaries and that we need to establish mechanisms to ensure co-operation.
Moving on, Amendment 102 in the name of the noble Lord, Lord Wallace of Saltaire, follows the same theme. I shall also refer to “Yes, Prime Minister”, because I watched the same episode. I noted that Sir Humphrey had a huge concern that devolving things to local councils would actually lead to real delivery; his solution was to create a whole series of bureaucratic, cross-regional structures to ensure that nothing happened. That is why I am slightly concerned about this amendment producing additional layers of bureaucracy and additional planning boards that will potentially duplicate or confuse. Although we agree with the thrust behind this amendment, additional bureaucracy is something that makes us feel a little uncomfortable and a bit nervous—hence my referring to the Sir Humphrey situation.
I turn to Amendments 103 and 104 in the name of the noble Baroness, Lady Bennett of Manor Castle. I am a huge believer in democracy. We should elect people and trust them to get on with the job; if they do not get on with the job, they should be booted out when the next election comes around. The noble Baroness is absolutely right that mayors, councils and so on should engage with their residents and listen to what they have to say—depending on what the subject is and where the place is, that may take a variety of forms —but I am hugely concerned about setting up self-appointed, unelected bodies that then hold democratic bodies to account. I just do not feel that that is the right way round; people should engage, but that engagement should be based on democracy.
I am sorry but I must interrupt the noble Lord, if he will allow me one second. He said “self-appointed”; the whole idea of people’s assemblies is that they are a representative group of people usually chosen by lottery, lot or similar.
Lord Jamieson (Con)
I will take back what the noble Baroness says. In this case, my point is that a random unelected body is not the same as an elected body. I genuinely think that democracy is important. If you wish to engage, you probably need to be a bit more nuanced in whom you engage with, because it should not be random; it should be those people who can really give you the feedback and information you need, depending on the subject and the place. Take central Bedfordshire, for example: a random 100 people from across central Bedfordshire will not be particularly helpful when we are discussing what is happening in my own little village of Maulden; I would rather discuss it with the residents of Maulden.
With that, I shall move on. This debate has made it clear that collaboration is important—in many cases, essential. I hope that it will be taken seriously by the Minister and that she will come back with some flexibility later on in the Bill’s passage.
My Lords, I am sorry that we have been pressing on time; the Hansard team and other officers were here until very late last night and we do not want to put them under any further pressure.
I thank the noble Earl, Lord Clancarty, the noble Lords, Lord Ravensdale and Lord Wallace, and the noble Baronesses, Lady Bennett and Lady Janke, for their amendments on the duty to collaborate. I shall start with Amendment 100, for which I thank the noble Earl, Lord Clancarty. I completely understand the intention behind this amendment—we have now had many discussions on this issue—but we ultimately think that it is unnecessary, as cultural well-being is captured in the current wording of Clause 22.
Culture underpins our creative and visitor economies; in this way, cultural activity is inherently captured in the meaning of
“economic, social or environmental well-being”.
The formulation is intentionally wide so that mayors can request collaboration on a broad range of matters; it is also intended to avoid an exhaustive or prospective list. Adding “cultural” risks undermining that approach and creating pressure to enumerate further dimensions of well-being without delivering any substantive new effect. Indeed, explicitly singling culture out could invite arguments that other aspects of well-being that are not listed are of lesser importance, or that cultural interests should be interpreted narrowly or separately from economic, social or environmental considerations.
Mayors of strategic authorities can, and already do, collaborate on cultural matters. The Mayors of South Yorkshire, West Yorkshire, York and North Yorkshire have come together to sign the White Rose Agreement, committing to work together on high-profile culture and sporting events and to celebrate Yorkshire’s heritage. I hope that the noble Earl and the other noble Lords who raised the issue of culture have been reassured by my agreement to reflect on how culture is treated in the competency framework.
I turn to Amendment 101, tabled by the noble Lord, Lord Ravensdale, which seeks to promote greater regional collaboration between mayors and other public and private partners. The Government agree with the value and benefits of regional collaboration. However, while the amendment is well intentioned, we do not think it is necessary. Strategic authorities and their mayors already have a wide range of mechanisms to collaborate across administrative boundaries, and several mayors are already doing so successfully. We heard some examples from the noble Lord.
The powers in Clause 22 are not intended to replace the wide range of positive and informal collaboration that already takes place. They are intended to supplement these existing mechanisms and strengthen mayoral leadership by providing a more formal route for cross-boundary pan-regional collaboration where this can improve outcomes for communities. However, it should be for mayors to decide for themselves how to use these powers rather than for the Government to prescribe or constrain the purposes and form that mayoral collaboration must take. More broadly, under existing legislation, combined authorities and combined county authorities can already enter into joint committees, allowing them to discharge certain powers together and jointly produce legislative documents such as spatial development strategies.
I turn to Amendment 102 from the noble Lord, Lord Wallace; this is not from Sir Humphrey, but from me—I am passionate about devolution and am not letting anyone get in the way of that; it is good programme, though, and I like it. This amendment would require strategic authorities to prepare joint strategic development plans, covering two or more strategic authority areas in certain circumstances. I appreciate the intent behind the amendment to join up strategic authorities, but I do not agree that the amendment is necessary. We already have broadly equivalent powers as a result of the Planning and Infrastructure Act 2025. New Section 12B of the Planning and Compulsory Purchase Act 2004, as inserted by the 2025 Act, enables the Secretary of State to require authorities to work together on spatial development strategies through the establishment of a strategic planning board. The Government intend to use these powers, in particular in areas without a combined authority or a combined county authority. The same Act gives the Secretary of State a wide range of intervention powers in relation to the preparation and adoption of spatial development strategies.
It is worth highlighting that, where strategic planning authorities are working on separate spatial development strategies, they are required by the Planning and Compulsory Purchase Act 2004, as amended by the Planning and Infrastructure Act 2025, to have regard to the need to be consistent with current national policies. The National Planning Policy Framework sets out strong expectations on authorities to work effectively across local government boundaries.
I turn to Amendment 103. I am grateful to the noble Baroness, Lady Bennett, for raising the importance of citizen engagement in local decision-making. The Government fully agree that residents should have meaningful opportunities to shape the decisions that affect their areas. However, as the locally elected leaders in their regions, mayors should have the ability to decide on how best to engage with their local communities. Mayors can convene citizens’ assemblies if they wish to, and, in places such as South Yorkshire, mayors have decided to use these powers. Once the Bill becomes law, all mayors will have general powers of competence conferred automatically on them, which will enable them to convene citizens assemblies should they wish to do so.
Finally, the Bill already includes a provision in this area. Clause 60 introduces a neighbourhood governance duty, requiring all local authorities to put in place arrangements to secure effective neighbourhood governance. That will ensure that communities have meaningful opportunities to inform and influence local decisions.
I turn to Amendment 104, from the noble Baroness, Lady Bennett, and Amendment 196, from the noble Baroness, Lady Janke. Both seek to ensure that mayors and strategic authorities work closely with their local authorities, public service providers and bodies representing local communities in town and parish councils. I recognise the spirit in which these amendments have been made. It is important for all mayors to engage with the wider public sector and the local authority family in delivering their own functions. However, strategic authorities are already expected, through existing legislation and provisions in this Bill, to work collaboratively with local partners and communities when exercising their functions.
Amendment 104 in particular would impose a disproportionate administrative burden on mayors of strategic authorities by placing a new duty requiring them to meet local authorities, public service providers and town and parish councils. As an illustration, North Yorkshire alone compromises 729 individual parishes, organised into 412 town and parish councils. Expecting a mayor to discharge this proposed duty in respect of each body would be impractical and may crowd out some of the time needed for the officer’s other strategic responsibilities. Parish and town councils continue to be supported in their work, and local authorities are strongly encouraged to work with them to understand the contribution they are able to make to the delivery of local services and the management of local assets.
(2 weeks, 4 days ago)
Lords Chamber
Lord Jamieson
At end to insert “but this House regrets the significant reductions in business rate discounts arising from the draft Regulations because they fundamentally threaten the future of the hospitality and small business sector in England; and further regrets that no public consultation has been undertaken prior to the laying of these Regulations.”
Lord Jamieson (Con)
My Lords, in speaking to this regret amendment in my name, I declare my interest as a councillor in Central Bedfordshire.
At first glance, the statutory instrument may appear technical and relatively uncontroversial with transitional relief, but in reality for many businesses, particularly in hospitality and leisure, the substantial underlying increase in business rates is very damaging. In fact, in many ways, it can be considered to be the straw that, so to speak, breaks the camel’s back. Our high streets, pubs, hotels and restaurants—indeed, the whole of the hospitality and leisure sector—are already under severe strain. Yet the Government, which claim that their number one priority is economic growth, have instead pursued a series of policies that systematically undermine one of the country’s most important employment-intensive and community-focused sectors. The Government have abandoned small business, and nowhere is that abandonment clearer than in their announcement on business rates in the Budget.
Increases in business rates cannot be considered in isolation. They come on top of a jobs tax through higher national insurance contributions, which have substantially increased the cost of employment and disproportionately hit labour-intensive businesses, particularly those that rely on part-time workers, where national insurance was extended further down the run. For hospitality, this is not an abstract accounting change; it is a direct tax on jobs. It comes alongside a sharp increase in the minimum wage. While we all want people to earn more money—rightly so—wage increases must be affordable if businesses are to survive.
This is a particular challenge for the hospitality and leisure sector, which employs a high proportion of younger workers, many of them working part-time. The minimum wage for an 18 year-old has risen by around 45% over the past two years. Now, on top of all this, we have rising business rates.
Analysis from UKHospitality shows that the average pub will face an increase of around 15% in business rates next year, admittedly prior to the recent announcements. With those increases compounding over time, by 2028-29 the typical pub will be paying around £7,000 more per year, with the cumulative impact approaching £13,000 over the next three years.
Hotels face an even more dramatic increase. Average bills are expected to rise by nearly £29,000 next year, reaching well over £110,000 a year by 2028-29, with the cumulative additional burden exceeding £200,000. For many operators, particularly outside London, these figures are simply unsustainable.
Let me illustrate this with a concrete example. My local pub faces a cumulative increase in costs of around £50,000 as a result of recent changes, of which around £10,000 comes from business rates alone. That is on a turnover of £800,000. This would be bad enough in isolation, but alongside this there is food price inflation of over 4%, including an alarming 30% increase in beef prices, and higher utility bills. Consumers themselves are tightening their belts, meaning higher prices leading to lower volumes, and many pubs are struggling just to stand still.
Traditionally, Christmas is when you make the money that helps you survive the winter, but my local pubs are finding that their profitability in December has dropped dramatically, and they will no longer be able to cope through the winter. The inevitable result is closures, reduced operating hours, fewer staff and pubs shutting one or two days a week. This matters because pubs are not just businesses. They are community anchors. They provide social value, local employment and vitality to our towns and villages.
Like many people, my first job was a part-time Saturday job in the retail and leisure sector. These crucial jobs give youngsters their first experience of work and the first step on the jobs ladder. This Government seem determined to remove that opportunity.
The consequences of this approach are entirely predictable. Without urgent action, and not just a temporary measure, it is estimated that more than 500 pubs will close this year alone, with the loss of jobs, investment and vital community assets that will inevitably follow. Yet instead of clarity, businesses are offered speculation. The Chancellor chose to signal another reversal—the 14th U-turn by this Government. Rather than offer clarity to Parliament, the Chancellor chose to signal it at Davos and in subsequent announcements by unveiling a targeted support package for pubs and live music venues worth over £80 million a year. This relief is time-limited and confined to pubs, while hotels, restaurants and the wider hospitality sector remain excluded from this concession.
That is in the context of a £3.5 billion increase in business rates. The Minister talked about it going up in some cases and down in other cases. Predominantly, it is going up. As Michael Kill, the chief executive of the Night Time Industries Association, said, this is
“little more than a drop in the ocean”.
It is striking that the Chancellor appears not to have absorbed the lessons of the 2025 Budget. On that occasion, as on this one, the Government allowed rumour and conjecture to run ahead of policy, creating weeks of damaging uncertainty before detail was finally provided. That uncertainty has been a major factor in suppressing economic growth.
What makes this situation all the more remarkable is the Government’s selective enthusiasm for certainty. When it comes to public sector unions, Ministers have shown themselves perfectly willing to offer generous multiyear settlements, providing stability and predictability and doing so without meaningful conditions attached. The Government will claim that the measures announced by the previous Government on business rates were temporary, as the Minister did, and linked solely to the pandemic. That is not correct. These reliefs stem from a 2019 manifesto commitment and reflected a continuing policy of choice, not a short-term emergency response.
The Government can try to point to the timing of valuations, as the Minister did, during the pandemic to explain volatility, but if this were a genuine reform, the revaluation would be broadly revenue neutral. As I said, it is going to raise £3.5 billion extra—a 10% increase in the first year alone, with further increases built in thereafter. It is nothing more than a stealth tax.
Finally, the House should note the uncomfortable contrast between the treatment of small businesses and the treatment of the Treasury itself. While local pubs are facing rising bills, the business rates at 1 Horse Guards Road, the home of the Exchequer, are set to fall by nearly £300,000. At 2 Marsham Street, which houses many major government departments including the Minister’s department, business rates will fall by over £1 million. The Treasury is happy to cushion itself while small businesses are left to absorb the shock. This House should regret the passage of this statutory instrument and urge the Government to rethink an approach that damages confidence, undermines growth and places an ever-greater burden on the very businesses on which our country depends.
My Lords, this is the last speech that I shall be making after midnight as Chief Whip for the Liberal Democrats, because I am stepping down at the weekend. I hope that the first thing that the next Session of Parliament does is bring in some legislation, or whatever we require, to modernise the hours of this House. It is ludicrous that we are sitting here at this time.
I will not speak for very long, because this SI is aimed at providing transitional relief to support business rate payers as they transfer to the new bills following the 2026 business rates revaluation. It is based on schemes that we have had for some time and has been improved by the Government. We will deal with extra support for public music venues when we look at the SIs on 10 February, so I am not going to go on about the impact of NI with the minimum wage and the rate valuation now. We will look more closely at those issues at that time.
We support the new structure of rates designed to shift the burden from the high street to large warehouses. The only problem that I want to raise is that the Government would do well to publish data on the impact of the revaluation on specific sectors to help analyse the need for targeted support.
Lord Jamieson (Con)
I thank the Minister for her response. Before I comment on it, I also thank the noble Lord, Lord Stoneham, for his work as the Liberal Democrat Chief Whip. I am slightly envious that he will not be here after midnight. I fear that several of us will be here after midnight many more times in the future, but for tonight, let us avoid having a little argument about whether this is dinner break business and try to focus on what we are here to do. The noble Lord, Lord Stoneham, commented on focusing on warehouses. Twice as many retail premises will be hit by that change in tax.
Anyway, I will get on to this. My first comment is that it is regrettable that we are debating this so late at night. This is an important issue: the impact of business rates and other factors on our retail, hospitality and leisure sector. It is disappointing that it has not had the debate that it deserves.
The Minister again threw out a large number of numbers and obfuscation and claimed selective memory. Well, I can share barbs across the Benches, but I do not feel that that is the point of tonight. The point of tonight is to raise the plight of our hospitality and leisure venues. I use pubs as an example here. They really are in deep trouble. They are in worse trouble now than they were two years ago, by a very substantial margin. I worry that this Government are continuing to undermine them.
However, I recognise the late hour. What I will do, rather than press this to a vote, is invite the Minister to my local pub, which is only a 40-minute drive from Stevenage, so that she can hear at first hand of the difficulties that are faced by pub owners, in central Bedfordshire at least. I am glad that the pubs in Stevenage are doing well.
With that, recognising the late hour, I beg leave to withdraw my amendment.
(2 weeks, 5 days ago)
Grand CommitteeThe noble Lord, Lord Cameron, said that it would be unhelpful if regional and local government continued doing their own thing. I think that this is an important debate and I look forward to the Minister’s reply, but the Government might look at the powers that existed with regional development agencies until 2012, in terms of spatial development strategies and the land use framework, when a lot was done. They might revisit that to make sure that everyone going off to do their own thing—the point raised by the noble Lord, Lord Cameron—is avoided.
Lord Jamieson (Con)
My Lords, I thank my noble friend Lord Lansley for his amendments. I think that there has been consensus among noble Lords contributing on this group that this is something that should be explored and looked at further. Amendment 45 rightly links local growth plans to spatial development strategies, ensuring that they are not formed in isolation and do not contradict each other. When a local growth plan is drafted, it should take account of the implications for spatial development. We welcome this amendment and support a more integrated and coherent approach.
However, we also believe that these plans must be informed by neighbourhood plans as well as neighbourhood priority statements, which have yet to be commenced under the Levelling-up and Regeneration Act. Amendment 46 seeks to ensure that spatial development strategies take into account national environmental improvement plans and the land use framework. This will help local government at least to have regard to the national Government’s environmental targets and to be aware of the environmental solutions proposed. As for the land use framework, we are still waiting for it to be published. Can the Minister confirm the timeline? As others have asked, will it be imminent?
Amendments 138, 139, 144 and 145 address the need for spatial development strategies to be aligned with infrastructure projects to identify any that are needed for growth. Again, these should be important considerations to ensure that new developments are supported with the necessary infrastructure rather than treating the two in isolation. As we said in the Planning and Infrastructure Bill debates, the consequences for development of the failure to deliver infrastructure should also be clear.
We agree with the principle behind all these amendments. It is important that combined authorities’ and councils’ various strategies are joined up, co-ordinated and coherent to ensure not only good governance and efficiency across local government but, more importantly, high-quality development. I thank my noble friend for his efforts and I look forward to hearing the Minister’s response.
My Lords, that was an interesting discussion. I thank the noble Lord, Lord Lansley, for his amendments and I welcome the opportunity to discuss the role of spatial development strategies in the new devolution framework.
Amendment 45 would require strategic planning authorities to identify the policies in their spatial development strategies that are of strategic importance to address the local growth priorities identified in local growth plans. I very much agree with the need for spatial development strategies properly to address the priorities identified in local growth plans where they are of strategic importance to the area, such as the issues that the noble Lord mentioned around skills and infrastructure. There is an expectation in the revised NPPF that that is exactly what will happen.
The Planning and Infrastructure Act, to which the noble Lord also referred—we recently sat through many hours of debate on it—requires strategic planning authorities to have regard to any plan or strategy they have published. This would include a local growth plan. In the draft revised NPPF, which was published just before Christmas, we set out that spatial development strategies should give spatial expression to strategic elements of local growth plans, and that would include all of the issues mentioned by the noble Lord. We also set out in the draft revised NPPF that spatial development strategies should be tested against national policy when they are examined; that will include the industrial strategy, for example, and will shine a light on whether they are meeting the expectations we have of the SDS.
A number of Peers spoke to Amendment 46. I say to my noble friend Lady Young that I found her extrapolation of this through to losing lots of elections in May and then having a whole reshuffle a bit depressing. I hope that will not happen, and I also hope that my noble friend will have a wander through one of her new forests and cheer herself up a bit. Amendment 46 would require a strategic planning authority to have regard to the Government’s environmental improvement plan and the land use framework for England while preparing a spatial development strategy.
I absolutely agree with noble Lords on the importance of these national documents relating to land use and the environment. The provisions detailing the required content of spatial development strategies and the factors to be taken into account in their preparation were introduced less than two months ago in the Planning and Infrastructure Act, following very thorough parliamentary scrutiny. I do not consider it necessary to revisit or amend these requirements before they have even had a chance to be tested in practice. The documents in question are expected to inform the drafting of national planning policies, and strategic planning authorities will be required to have regard to the need to ensure that their strategy is consistent with the current policy.
For example, if we found that the land use framework or the environmental improvement plan were being ignored in strategic development strategies, we would keep that under review. Should any gaps or misalignments emerge between strategic development strategies and these documents, we can consider future changes to the National Planning Policy Framework or planning practice guidance, or even secondary legislation to ensure that they are taken into account in preparing an SDS.
A number of noble Lords asked questions on the publication of the land use framework, which I know is eagerly awaited. The Government consulted on land use in England from January to April last year. The responses, as well as the feedback from supporting workshops that have been held since, are being analysed. The responses will inform the preparation of the land use framework. I cannot give noble Lords an exact publication date today, I am afraid, but I know that my colleagues in Defra want to publish it as quickly as possible.
On the question from the noble Lord, Lord Shipley, about regional plans, I used to be on the regional assembly, so I sat thought the entire process of the east of England regional plan; the noble Baroness, Lady Thornhill, did so as well, I believe. There were a lot of lessons to be learned from those regional plans, particularly around the co-ordination of data and so on, and I know that officials in the department have taken into consideration how that was done. We need to reflect carefully on those experiences and how they fit in with what we are about to do with strategic development strategies.
The noble Baroness, Lady O’Neill, asked about London. The London plan sits outside this Bill, I think, but there is an expectation on London boroughs that this will be done. Indeed, my own borough is quite a way outside London—well, 28 miles; we are in Hertfordshire, so not that far—and we were consulted on the London plan as part of the Ring Around London consultation.
On my noble friend Lady Young’s question about the local nature recovery strategies, it is a requirement that SDSs take account of those; indeed, the London plan has to take account of local nature recovery strategies as well.
Amendments 138, 139, 144 and 145 would require mayoral combined authorities and mayoral combined county authorities to set out in their local growth plan what is needed in spatial and infrastructure terms to realise the economic growth opportunities presented in the plan. As with Amendment 45, tabled by the noble Lord, Lord Lansley, I agree with the need to ensure that places are identifying these needs. Local growth plans will be required to set out an economic overview of their area, shared priorities agreed with the Government, and a pipeline of investment opportunities. Where infra- structure or development presents a relevant investment opportunity, we would expect it to be included in that pipeline. We are clear that local growth plans should provide an overarching framework for growth, identifying actions and investment that can drive economic growth and productivity.
But, when it comes to addressing the spatial implications of local growth plans and identifying the development and infrastructure needs for realising growth, the right vehicle is the spatial development strategy. That is why we set out that spatial development strategies should give spatial expression to strategic elements of local growth plans when we published our proposed reforms to the National Planning Policy Framework. For all those reasons, I hope that the noble Lord, Lord Lansley, will withdraw his amendment.
Lord Jamieson
Lord Jamieson (Con)
My Lords, I shall speak to the two amendments in my name and that of my noble friend Lady Scott of Bybrook. Amendment 49 would allow the Secretary of State to make subordinate legislation to cause a mayoral combined authority to cease to be a mayoral strategic authority if, and only if, the combined authority consents for this to be the case. That would allow the structures of local government to be formed locally, according to local needs, priorities and democratic wishes, rather than setting in stone structures that may not be suitable for local communities later down the line.
On the creation of established mayoral strategic authorities, Amendment 47 would remove the proposed power of the Secretary of State to designate a mayoral strategic authority as an established mayoral strategic authority because we believe that the process should be locally led and not imposed from above. Amendments 48 and 50 in the name of my noble friend Lord Lansley also address the creation of established mayoral strategic authorities.
The Government White Paper set out the eligibility criteria for accessing the established mayoral tier. These amendments seek to give a basis for deciding whether proposals for a mayoral combined county authority, a mayoral combined authority, or for being designated an established mayoral strategic authority, have substantive merit.
We also know that the scope of integrated settlements for mayoral strategic authorities will be confirmed at each spending review, on the basis of functional responsibilities and their value, by a formulaic process. Can the Minister please elaborate on what those responsibilities are and on the formulaic process? Authorities need to be able to feed back on the amounts and types of funding they receive, so what process will be in place to ensure that funding is based on funding received from authorities?
In addition, how will government ensure that the timeline for this Bill aligns with the timelines for new strategic authorities and the spending review? Will the new mayors have the same powers and financial resources made available to them as the existing mayors? Local government reorganisation should not be undertaken simply for the sake of it; the Government’s plans and timelines need to be coherent and co-ordinated and underpinned by genuine principles for devolution to be meaningful and effective. I look forward to hearing the contributions of noble Lords and the Minister’s response on these matters. With that, I beg to move.
My Lords, I have two amendments in this group, Amendments 48 and 50. It is another of those occasions when there are two amendments to achieve one purpose. Amendment 48 relates to county combined authorities and Amendment 50 to combined authorities, and each is on the question of under what circumstances they should be able to be designated by the Secretary of State as an established mayoral strategic authority.
On the purpose of designation, two key things happen when you are an established strategic authority. First, you can have access to an integrated financial settlement. This is quite an important issue, although it is not in the Bill because it is financial; it would be determined by Treasury financial legislation. However, this being established means that it is a gateway to the ability to manage finances with what we would call in departments the power environment between different headings. These would normally not be available to local authorities where they receive delegated funding for one purpose and want to be able to use it for other purposes.
As we progress, if there is to be a significant tourism revenue to strategic authorities, the financial arrangements of strategic authorities will be an important element. We may come back to that in later groups. I do not want to dwell on that. The point is that this is the gateway to an integrated financial settlement from the Treasury. Very few strategic authorities have it now. I suppose that London and Manchester will get it first, in this spending review, then other strategic authorities will get it in the next spending review.
Secondly—we will no doubt come back to this on Clause 51—there is the ability of established mayoral strategic authorities to seek additional powers and functions within the designated areas of competence. That is quite an important additional power. These are two important powers, and Amendments 48 and 50 ask by what means the Secretary of State decides whether they should be established. What is in the Bill sets out a process but no criteria.
Paragraph 2.2.4 of the English devolution White Paper told us that there would be criteria for accessing the established mayoral tier: that the strategic authority has
“been in existence … for at least 18 months … has a published Local Assurance Framework in place … has not been the subject of a Best Value Notice, a MHCLG commissioned independent review, or a statutory inspection or intervention … is not subject to any ongoing (or implementing) recommendations from an externally mandated independent review; and there are no material accounting concerns covering the current or previous financial year”.
These are essentially matters of financial governance and accountability. I do not understand why the Bill makes no reference to the criteria the Secretary of State would apply, given that the devolution White Paper has set them out specifically. If my amendments were accepted, an indication would at the very least be given of the criteria: effective governance, accountability, and specified performance metrics.
It is a good idea that, as this develops, a specific power be provided in the legislation enabling the Secretary of State to publish the criteria that will be applied to the question of designation. It would not be right simply to say that there is a process but no criteria. We should have the criteria established.
The tourism tax is an interesting step forward because, as far as I know, this is the first time a fiscal power has been devolved. The Government are keen to test out that devolution of fiscal power; I do not have the details at my fingertips so I will write to the noble Lord on the detail of how it is moving forward.
Lord Jamieson (Con)
My Lords, I thank my noble friend Lord Lansley for his thoughtful amendments and comments. I also thank the Minister for her feedback, which has certainly provided some more illumination on a sometimes slightly murky area of devolution.
On integrated financial settlements, I know that, when I chaired the LGA, I pushed very hard to move in this direction. I was very pleased that we managed to get a couple of them over the line with the previous Government. They are important and offer huge benefits to the areas that have them. Therefore, this idea of criteria, and being very clear on them, is important; I thank the Minister for being clear that the White Paper is where the criteria are set out.
However, I am quibbling over and slightly uncomfortable with the fact that the criteria are just guidance for the Minister and could, therefore, be changed relatively easily. When you are talking about devolution, with local councils and local government making significant changes in anticipation of something that will potentially make a significant difference to their areas, those criteria must be very clear and not changeable. Councils must know what goal they are aiming for because, as the Minister said, this is not something that happens overnight; it takes several years, potentially, and a lot of effort. I do not want the goalposts to move too much—most local authorities would not want that, I think—so I would like some assurances, though not necessarily today, on how set in stone the criteria are as people go through the process.
I am also quite curious about the “no stepping back” bit. As the Minister said, we set some very high bars. However, the day after, someone might fail those high bars—but they are still there. A little elaboration on that at some later point would be very much appreciated.
With that, I thank noble Lords for the debate and beg leave to withdraw my amendment.
My Lords, I will briefly support the amendments in this group that seek to remove the cap on the number of commissioners and the appointment of special advisers. In doing so, I restate my support for Amendments 6, 10 and 51 in the name of the noble Earl, Lord Clancarty, and the noble Baroness, Lady Prashar, to add the arts and culture as an area of competence, which would allow a modest increase in the number of commissioners from seven to eight.
I fully recognise that the Government wish to maintain a coherent and settled devolution framework, to limit additional costs that such appointments would incur and to exercise caution around unelected roles. Here I entirely take the point made by the noble Lord, Lord Shipley, and I look forward to hearing the Minister’s answers to those numerous and very important questions.
I also accept the argument that further powers may be pursued within the existing areas of competence. That said, the question here is one of governance rather than architecture. A small degree of flexibility in the commissional model, as the noble Lords, Lord Bassam and Lord Bach, have argued for, would allow mayors to organise their leadership teams and their advisers in ways that reflect local priorities and circumstances without altering the framework itself.
Different regions face very different challenges: a dense metropolitan authority and a largely rural combined county authority may reasonably require different internal arrangements. For those reasons, I generally support these amendments and the flexibility they seek to introduce.
Lord Jamieson (Con)
My Lords, we have had an interesting debate. I thank all noble Lords who have participated. It does appear to be the first one today where we are not quite in agreement on things. I assure my noble friend Lord Trenchard that we share his concerns about appointing unelected commissioners to roles that have real political power. However, before I go on to that, this raises an important and enduring question about how leadership is accountable and the flexibility to operate within a system that is devolved.
At its heart, this debate returns to the principles of devolution. It is about not just transferring powers from the centre to the local level but about who exercises those powers. It is about how they are held to account and how clearly responsibility is understood by the public whom those institutions are designed to serve.
On the amendments, while the noble Lord, Lord Bach, made a good case, we have concerns about commissioners holding responsibility for multiple areas of confidence because there is a risk that it could reduce accountability, concentrating authority into too few hands and blurring the lines of responsibility, making it harder for the public to discern who is ultimately answerable for decisions—there may be cases that need further thought in this area. I also accept the noble Lord’s points about police authorities. With the recent announcement in the other place, can the Minister say whether that is being taken into account in the devolution Bill or, even better, whether that announcement is going to take account of the devolution Bill? That is rather important.
On the amendments tabled by the noble Lord, Lord Bassam of Brighton, devolution works best when responsibilities are clear, visible and capable of effective scrutiny. I have a real concern here, which has been shared by the noble Lord, Lord Shipley. First, I will talk about commissioners. What is the definition of a commissioner? Working in local government, when you say that the commissioners are coming in, while I personally am not used to a failing council, normally you send them in after a best value inspection when one is failing. We have had this issue several times in the devolution Bill, and definitions and consistency of definitions would be helpful.
However, the real concern about commissioners is that we seem to have an expanding strategy. The Bill talks about seven but now we have amendments that talk about political advisers, special advisers and more deputy mayors. My focus in local government is value for money. Local government and mayors should be about delivering services to residents. They should not be about creating an unelected bureaucracy that is appointed and risks political cronyism. The noble Lord, Lord Shipley, also raised a number of practical issues such as whether when the mayor resigns all the commissioners go and you lose all that knowledge and so forth. I will not go on to those again, because that would be unnecessary repetition, but we have a real concern.
A number of noble Lords raised an issue around whether we can have commissioners for specific areas. I have sympathy with that, but they do not have to be commissioners. We are talking about political leads for certain areas. There is no reason why an elected councillor cannot be a political lead, whether it is for rural affairs, the environment, culture and so forth. I do not think that we have to focus on commissioners there—that can be a political lead.
Lord Jamieson (Con)
With voting, the figure required can be either two-thirds or 50:50. Can the Minister clarify what figure is required to remove a commissioner?
For the overview and scrutiny committee, I believe it is a simple majority vote, but I will clarify that in writing for the noble Lord.
We expect that commissioners will have detailed knowledge and expertise in their assigned area of competence and will be appointed on this basis. Constituent members will not necessarily be experienced in their portfolio subject area. There are also circumstances where it would not be appropriate for a portfolio lead to represent both the borough and the region; there may be perceived conflicts of interest. As I said earlier, the local authority leaders who sit on the combined authority will also be running their councils on a day-to-day basis.
Commissioners will be able to represent the mayor’s authority and policy positions in a given area, including by speaking to the media. They could help make day-to-day decisions that are delegated by a mayor and provide strategic insight and advice for their area of expertise. We also expect commissioners to play a leading role in stakeholder engagement and partnership working, across geographies and organisations, as appropriate. This would include working closely with local councillors, business leaders and public sector institutions, using their advocacy and influence to deliver the mayor’s agenda.
I hope that that has helped clarify some of the points raised by noble Lords and that, with the assurances I have given, they will not press their amendments.
Lord Fuller (Con)
My Lords, I support the principle of Amendment 191 in the names of the noble Lord, Lord Bichard, and the noble Baroness, Lady Thornhill. I observe that, for the first time, we are bringing local, parish and community councils substantially into scope, for I believe that the definitions provided in Amendment 191 will do so. What has not been fully understood is that one of the second-order effects of the Bill is that it will create a significant number of larger community councils as a result.
As a result of local government reorganisation, large numbers of cities, such as Oxford, Exeter and Norwich, and former county boroughs, such as Ipswich, Great Yarmouth and King’s Lynn, which have been billing authorities hitherto, will now fall into the lower tier of local authorities. Those authorities have no constraint or cap on the amount of council tax that they can raise. In Salisbury, they have jacked up council tax by 44% in the past four years—they have let rip, and it is not good enough. There has been no scrutiny, there has been cost shunting, and the council tax payers have paid more.
I have laid amendments, which we will discuss later, that will make provision for those larger smaller authorities to fall under the constraints that all the other authorities will have. I do not seek to fetter the smallest parish council, but if you have a population that hitherto has been part of a billing authority, it is right that they should be constrained going forward, as they have in the past.
I am not sure that I entirely welcome all the provisions in Amendment 191 on local public accounts committees, but the amendment shines a light for the first time on where we will go with these smaller community parish councils. There is merit in the thrust of what has been proposed here. I wait to hear how the Minister reacts to what constraints will be placed on this new class of large parish or town council as a result of the changes proposed in the Bill.
Lord Jamieson (Con)
My Lords, I will take a step back to reflect on what this debate is really about. It is not simply about committees, processes or institutional design—it is about trust that power, once devolved, will be exercised well; trust that decisions will be open to challenge; and trust that the public will be able to see how and why those decisions are taken.
Amendment 53, introduced by the noble Lord, Lord Shipley, speaks directly to that question. The requirement for mayors to establish scrutiny committees for commissioners recognises a simple but important truth: as we add layers of responsibility and delegation within combined county authorities, scrutiny cannot remain an afterthought. If commissioners are to exercise real influence, there must be clear, visible and credible mechanisms through which their actions can be examined, questioned and, where necessary, challenged. I would be grateful if the Minister could explain how the Government envisage scrutiny operating in practice where commissioners are appointed and whether they are confident that existing arrangements will suffice.
Amendment 191 in the name of the noble Lord, Lord Bichard proposes local public accounts committees. The noble Lord has raised a very important point: there has been a tremendous amount of devolution, just not to local government but to unelected quangos and devolved bodies. Anyone who has led a council will tell you how much difficulty they have trying to get those bodies to do things that are best for the local area because they have to report to Whitehall. This is an interesting proposal to try to oblige those bodies to work together with local government. I do not seek to speak specifically to that design—more to question of principle, because it goes back to the heart of scrutiny as we have more devolution and deal with these other devolved bodies. How will the Government ensure that appropriate scrutiny happens across an area where not only the combined authority but those other bodies are essential to deliver some of those services? As I said, local public accounts committees are one possible solution, and I am very interested in seeing what the Government’s suggestion on that is.
I also press the Minister on a number of broader points. First, has the department assessed whether existing local scrutiny arrangements are adequate for the scale and complexity of devolved expenditure now envisaged? Secondly, what assessment of the fiscal governance risks that arise when large multiyear funding settlements are devolved without strengthened independent financial oversight at the local level? As was raised earlier, how do the Government intend to identify problems earlier rather than having the audit function of explaining what went wrong afterwards?
Thirdly, I would be grateful if the Minister could address the question of cost—not simply its narrow budgetary terms but the strategic ones. If the Government do not believe that local public accounts committees are the right answer, what is the solution? If we are serious about devolving power, responsible scrutiny must sit alongside it, not trail behind it.
Lord Jamieson (Con)
My Lords, the Clause 12 stand part notice, in my name and that of my noble friend Lady Scott of Bybrook, is intended to probe. We recognise that mayors and mayoral combined authorities will, in practice, need the ability to borrow to deliver infrastructure, regeneration and long-term investment. Borrowing can be a sensible and necessary tool. Our purpose today is not to deny that reality but to seek clarity from the Government about how this power will operate in practice and what safeguards will accompany it.
We would welcome further detail from the Minister on a number of points. First, what caps or controls do the Government envisage on mayoral borrowing? Will these mirror existing prudential borrowing frameworks for local authorities, or will a different regime apply? Secondly, what is the Government’s expectation of the purposes for which this borrowing will be undertaken? Are there limits envisaged on the types of projects or expenditure that may be funded through borrowing? Thirdly, who ultimately underwrites this borrowing? In the event of financial difficulty, where does the liability sit? Does it sit with the combined authority itself, with constituent councils or perhaps with central government?
Finally, what checks will be in place to ensure that borrowing decisions are subject to appropriate scrutiny and transparency, locally and nationally? Devolution must go hand-in-hand with accountability. Granting borrowing powers without clear safeguards risks storing up problems for the future—for local taxpayers and potentially for the Exchequer. I look forward to the Minister’s response and reassurance on these important points. I beg to move.
I am grateful to the noble Lord, Lord Jamieson, for raising some very crucial issues on the levels of borrowing powers. I add to that my concern—made even more so by the fact that constituent councils will not be able to scrutinise the work of the mayor or commissioners.
In that situation, I hope the Government will not be anticipating that local councils will then be responsible for any overspending by mayors and the combined authorities because, otherwise, there will be a demand on the council tax payer. So can the Minister confirm that overspends caused by poor-quality work by mayoral authorities will not end up with the council tax payer having to bail them out?
My Lords, I thank the noble Baroness, Lady Scott, for her Clause 12 stand part notice, ably spoken to by the noble Lord, Lord Jamieson.
All existing mayoral combined and combined county authorities have the power to borrow for all their functions. Unlike local authorities, the current process requires making a bespoke statutory instrument after an institution has been established. This process is highly inefficient. The Bill streamlines the process by giving the power to borrow to mayoral combined authorities and mayoral combined county authorities for purposes relevant to their functions. The power to borrow is still subject to safeguards. Clause 12 requires authorities to obtain the Secretary of State’s consent before they exercise the power for the first time in respect of functions other than transport, policing, and fire and rescue.
I will cover some of the points that the noble Lord, Lord Jamieson, asked me about. First, in relation to agreeing a debt cap, in general the exercise of power will remain subject to consent from the Secretary of State for the Ministry of Housing, Communities and Local Government, before it can be used for the first time, as I said. That would follow any internal processes, such as a debt cap agreement. The only exception will be where the new mayoral combined authorities and combined county authorities inherit fire, police or transport functions. In this instance, the power to borrow can be exercised immediately for these functions to ensure that ongoing financial arrangements are not disrupted.
In terms of how borrowing is agreed, any borrowing by a mayoral strategic authority is agreed through the annual budget-setting process and is subject to approval by the combined and combined county authority, operating within existing legislative, financial and prudential controls. While the mayor proposes the budget, borrowing cannot be undertaken unilaterally. Under the Bill, most budgets will be approved by a simple majority, which must include the mayor.
In response to the noble Lord, Lord Shipley, the budget, like all other matters, will be subject to the overview and scrutiny process, so there can be scrutiny of the budget in the same way that you would expect in a local authority.
The noble Lord, Lord Jamieson, asked about underwriting. Like the rest of local government, strategic authorities must also operate within the prudential framework. This framework comprises statutory duties and codes intended to ensure that all borrowing and investment is prudent, affordable and sustainable. It provides robust mechanisms for oversight and accountability. For those reasons, I ask that the noble Lord does not press his clause stand part notice.
Lord Jamieson (Con)
I thank the Minister for her response. If I may, I will delve a little deeper into some of her comments. She said that the first time an authority borrows, it will have to get consent from the Secretary of State, with an implication that, at that time, guidelines or parameters would be set up. I think that is what I heard. I want to make sure it is not the case that, the first time you borrow, the Secretary of State says it is fine, and then thereafter there are no guidelines, or whatever. I appreciate the Minister may not be able to clarify that today, but if she could write to us, that would be much appreciated.
The authority can already borrow for fire and police. The Minister mentioned one other: transport. For those, there would not be any such guidelines, as I understand it from the Minister’s comments. Again, it would be helpful if the Minister could come back to confirm whether that is the case or whether they would be subject to whatever guidelines may be given by the Secretary of State. That would be much appreciated.
We talked about budget controls. I am curious about that because it raises the point that the budget in effect has to be agreed by the mayor. I am intrigued as to what happens when the mayor and the combined authority are slightly at odds. What then happens in that process?
The Minister did not mention, as far as I am aware, the key question that I asked and that the noble Lord, Lord Shipley, was also concerned about: who in effect is the guarantor in the event that the combined authority cannot pay back its borrowing? I would be grateful if the Minister could come back with a response to that. Anticipating those answers, I will not press my opposition to Clause 12 standing part of the Bill.
(2 weeks, 6 days ago)
Lords ChamberI am certainly not calling the result of the Denton by-election at this stage. I do not think we even have a candidate yet, so I think it would be unwise.
In response to the noble Baroness’s question on timing, we have been clear throughout that elections should go ahead unless there is strong justification otherwise. Many of the local elections that are due to take place in May will take place. We were very clear that if councils said they had no reason for postponement then we would listen to them, but that where a council voiced genuine concerns—we had significant evidence from those councils whose elections have been postponed—we would take it seriously. To make sure that everyone knows that this was not a rubber-stamp exercise, where anyone who asked for a postponement got it, there were two councils where we did not think the evidence was sufficient, Nuneaton and Bedworth and Pendle, and their elections are going ahead. We do not do this lightly. However, with an unprecedented reorganisation going on in local government, it is right that we took account of what local government was saying to us.
Lord Jamieson (Con)
Like my noble friend Lady Scott of Bybrook, as a councillor in central Bedfordshire I have already been through unitisation. That did not involve cancelling elections; in fact, we had an additional election after two years. We were able to do that because we had a proper plan that was locally developed and supported by residents. Is not the reason that elections are being cancelled that the Government do not have plan, do not know what is happening, and have not been communicating to councils and leaders what they should do or when they should do it? It is taking too long, and we end up in the difficult situation faced by council leaders of not knowing. Can the Minister commit that the Government will provide a clear timetable, as asked for by my noble friend, for local government reorganisation and for when elections will be held? Democracy matters; it is from where local government derives its authority.
I am afraid it was the failure to bite the bullet and get on with this kind of radical reorganisation for decades that has meant that we have decided that we cannot go on any longer with a broken system. Services in local government are not sustainable, the finance system is not working, and we now need to make sure that we get local government on the firm footing it deserves, that we are distributing funding more fairly, and that councils are the right size and shape to be effective to deliver efficiently key public services, as the public that we serve deserve, and drive forward our economy, housing and transport in the way that we all want to see, right across the country. The current system results in confusion and waste. We have got to get on with the job. We have had to take this unprecedented step to make sure that we are taking account of what local government tells us about its need for resources.
On the timetable, I have just set it out again. I do not understand the confusion about the timetable. We have been very clear about it and we will move ahead with that. Local authorities are working, and have worked, very well within the timetable we have set out. We work closely with them on that, as on all the other matters related to the reorganisation.
With respect to the noble Baroness, putting in new resources at this stage would not really help matters. Councils have their programmes of work under way. They are all working very hard on the reorganisation programme, as they are on the transition. They have an enormous job to do on working out the transition for key public services and on how they are going to drive growth and housing programmes going forward and put new resources into that. When you have new councillors and council officers coming in, it takes quite some time for them to get up to speed and be able to deliver at pace. Councils have considered that very carefully and will have made their own decisions. That is why we had 29 of them submit requests to postpone their elections.
Lord Jamieson (Con)
As there is still time, I will come back on a couple of things that the Minister said. The Minister spoke of the need for fundamental reform. Can the Minister answer the following questions that I have asked previously? What real additional powers, and what funding, will come to local government from the Government? Secondly, the Minister said that local government funding was not sustainable, so why, through the Government’s unfair funding proposals, will many councils suffer some of the sharpest cuts that they have seen?
The fair funding formula that we announced this year has given local government a significant increase in funding. Having spent the 17 years that I was a council leader cutting budgets every year, I know that has been a welcome change for some of our councils.
On the new powers that local councils will get, I know that we are in the process of considering the English devolution Bill and that we will debate it tomorrow afternoon. The seven areas of competence that are included in that are just the starting point for devolution. We want to see a widespread devolution of things that are currently decided in Whitehall; we want to see them being decided in local areas by local people. Once those combined authorities are established, the mayors will be able to apply for further powers that they see as necessary for their areas. It is important that those are driven by mayors. We have seen that existing mayoral areas have different needs. Some areas have a much greater need for powers on skills, for example, while others have greater need for powers on health and transport, and it can be all three. It is very important that that is driven at a local level. The very wide-ranging competences that we have set out in the English devolution Bill will enable local governments to take the powers that they need to drive their local areas forward. That is a huge move forward, and I welcome it.