Local Democracy in the United Kingdom

Lord Kennedy of Southwark Excerpts

Thursday 28th January 2016 Lords Chamber

[Lord Kennedy of Southwark (Lab)]

My Lords, as other noble Lords have done, I congratulate the noble Lord, Lord Shipley, on securing this debate. I also declare an interest as a local councillor in Lewisham.

We have heard three excellent maiden speeches: from the noble Baroness, Lady Scott of Bybrook, who, as we have heard, is the leader of Wiltshire unitary council; from the noble Lord, Lord Stunell, who was a local councillor before being elected as MP for Hazel Grove in 1997 and served as a Minister in the coalition Government; and from the noble Lord, Lord Porter of Spalding, who is chair of the Local Government Association and the leader of South Holland District Council. He is one of a number of Peers who have held a senior position in the association and now serve in your Lordships’ House, including my noble friend Lord Beecham. It is good to have another Londoner in the House, although I am from the other side of the Thames. It is also good to have somebody from east Midlands local government. I lived in the east Midlands for many years. It is a great region and we need more local government figures from the east Midlands serving in your Lordships’ House.

I was first elected as a councillor in 1986 at the age of 23, representing the ward in Southwark that I grew up in. I now represent the ward of Crofton Park in Lewisham. Local government has changed considerably in those 30 years. Leaders and committee chairs have been replaced, as in Lewisham’s case, by a directly elected mayor. We have cabinets and portfolio holders, and scrutiny is the name of the game.

For better or worse, the new arrangements are creating two types of councillor: one who is the decision-maker as part of the cabinet structure; and one who is not part of that structure but is much more of a community facilitator or community champion. We will need to review this in the coming years, along with what has generally been a loss of power for local councillors, as referred to by the noble Lord, Lord Shipley. The talk is often of localism and empowering communities, but the reality is the Housing and Planning Bill, with its 33 new powers for the Secretary of State for Communities and Local Government to issue directions and instructions to local authorities. The rhetoric is not always being matched by the actions.

I agree with the comments of the noble Lord, Lord Shipley, regarding police and crime commissioners. It did not help that we held the elections in the middle of November, at extra cost to the taxpayer. Of course, it was the noble Lord’s party that worked with the Conservatives in the previous Parliament to deliver the policy in the first place. The right reverend Prelate the Bishop of Derby also made some excellent points on local government, the problem of ensuring real engagement and creating spaces for proper reflection.

I have always been a supporter of devolution of power to the lowest possible level. For me, devolution of power certainly does not mean from Whitehall to the town hall or the combined authority and no further than that. It is about empowering people and communities to engage together and take decisions, or have a real input into making the decisions that are being taken that affect them and their local community. It also does not mean imposing huge cuts in expenditure, the removal of revenue support grant funding and localising business rates, then telling local authorities to get on with it and blaming local politicians for the cuts made in Whitehall, which my noble friend Lord Beecham referred to.

Of course, the Labour Party, the Liberal Democrats and the Conservative Party all promised devolution of powers in England, empowering local people and revitalising local democracy in their manifestos. Many of the commitments have a similar ring to them, though with a change in emphasis in some cases. All promised a transfer of power and I hope that we can all agree that that is both necessary and welcome. We are seeing the evolving combined authority model referred to by the noble Lord, Lord Shipley, which was discussed in the last Parliament under the coalition Government, being rolled out further with directly elected mayors at the helm. I wish this model of governance well and hope that it is a success, but we will have to see in the coming years whether it provides the devolution and engagement that is both necessary and desirable. However, I do not like the supplementary vote system for electing mayors, legislated for by my party. I have been to too many counts where this system is used and people do not use their second vote or they spoil their paper by putting their vote in the second box. The sooner we move to the full alternative vote for these elections and rank the candidates in order of preference, the better.

While on the subject of electoral reform, I have never been a supporter of PR, although I equally think that it is important that, in all our town halls, the party or parties in office can be effectively challenged by an effective opposition presence. For a variety of reasons, that is not happening in some places. That is not good for local democracy or local governance. Oppositions move motions; they make you justify your actions; they ask the questions that you do not want asked. An effective opposition makes for better local government by keeping the controlling group on their toes. It may be something that the noble Lord, Lord Porter of Spalding, takes away from this debate and talks about with his colleagues from the various political groups at the LGA to see whether anything can be done to ensure effective governance and effective oppositions in town halls up and down the country. I also ask the noble Viscount, Lord Younger of Leckie, what proposals the Government have to revitalise town halls and local democracy, where, in a number of councils, a viable number of opposition councillors are not returned. This is becoming more and more of a problem.

I agree with the comments of the noble Baroness, Lady Bonham-Carter of Yarnbury, about the importance of the contribution of the arts and the huge benefits that they bring to the local economy. That is why I think that open data are really important. They must be clear and easily available on the council website and elsewhere, so that the public can see what the council is doing and judge it properly on its record. I have looked at many council websites and there are one or two good examples, but generally it is not great and there are some really awful ones that do not invite their citizens to interact with them, or publish vast amounts of data that they have about their performance. A proper standard of e-enabled council services, proper consultation and effective engagement with local people through a council portal is an absolute must. Will the noble Viscount tell the House what work the Government have done on this to help local authorities consult properly and engage more with their local communities using e-services?

I end my remarks by again thanking the noble Lord, Lord Shipley, for securing this debate and enabling us to raise these important issues.

[Viscount Younger of Leckie (Con)]

My Lords, it gives me great pleasure to respond to what has been an interesting debate. In terms of its title it is not untypical of the type of debate for a Thursday sitting. It is clear that democracy is one of our fundamental values, along with the rule of law, individual liberty and the mutual respect and tolerance of different faiths and beliefs. All noble Lords have consistently recognised and cherished these values in their remarks. However, we have focused primarily on one of the most important aspects, local democracy, which affects the day-to-day lives of people across the country in cities, towns and counties.

I will address some of the points—I hope all of them—raised by noble Lords, which were somewhat wide-ranging, from localism versus centralisation to a focus on voting systems. But first, I am particularly pleased to congratulate all Peers who have made maiden speeches today. In so doing, they have demonstrated a breadth of new experience, knowledge and understanding that will undoubtedly inform our debates.

My noble friend Lady Scott of Bybrook clearly has deep experience of democratic local government. I know that the people of Wiltshire, a county she led successfully for many years, have much to thank her for, not least for leading the creation of the unitary Wiltshire Council in 2009. I also feel sure that her former career of cattle husbandry may also be useful for this House in some respect. More seriously, she made some passionate points about the importance of looking after families of forces personnel. That is very much noted.

The wealth of experience brought by my noble friend Lord Porter of Spalding, both as leader of South Holland District Council and now in his role as the chairman of the Local Government Association, will also raise the bar in bringing experience of local leadership into this Chamber.

The noble Lord, Lord Stunell, has played an important part in shaping the democratic governance of our country. It is very much noted that he was a Minister in the coalition Government—in the DCLG, no less—and prior to this was a shadow spokesman for his party. I was particularly struck by the fact that he had served on no less than three local authority councils and had a say in the Localism Act.

UK local government has evolved over centuries, and with the enactment of the Cities and Local Government Devolution Act, which received Royal Assent today, this evolution continues. I am conscious that many in the Chamber are experts in the development of local government and representative democracy, but I believe that it is worth considering briefly just how far this has come. No noble Lord touched on this aspect.

Various forms of local government existed in Saxon and medieval times, but it was hardly democratic. The structures that we recognise today evolved from the 19th century and the previous ad hoc system of parishes and boroughs. The Reform Act 1832, which swept away rotten boroughs for parliamentary purposes, was followed by the Municipal Corporations Act 1835, which first reorganised local governance along modern lines, providing for the election of mayors, aldermen and councillors on a vote of those who occupied property.

The Local Government Act 1888 established elected county councils. The Local Government Act 1894 completed the picture by creating elected urban, rural and parish councils. This demonstrated that both a Conservative Government in 1888, led by the Marquis of Salisbury, and a Liberal Government in 1894, were committed to building more democratic and robust local government. However, I can safely state that the noble Marquis’s understanding of democracy does not otherwise chime with ours today. He thought that those who had wealth should be given the opportunity to lead. He said:

“They have the leisure for the task and can give it the close attention and preparatory study which it needs’’.

Reverting to the development of democratic local governance, perhaps its most central aspect is that it was driven locally. The 19th century acts were a response to a great movement across the country. We are all familiar with the achievements in our great cities of Birmingham—with Joseph Chamberlain as mayor—and, indeed, of Manchester. We are seeing today the same spirit with the devolution deals that areas such as Greater Manchester and the West Midlands have agreed with the Government, which will see new, powerful mayors elected in May 2017.

The process of legislative reform continued through the 20th century and into the 21st century. It supported the creation of nine unitary councils, including Wiltshire Council, which I have mentioned already. The question of unitary local government remains a live issue today—in particular, whether there should be more unitary councils. I realise that there are different views on this—often locally, and we have also heard some today in this House.

Let me be clear on the Government’s view. We believe that where an area wishes to adopt unitary structures, it should be able to do so. The Cities and Local Government Devolution Act enables fast-track unitarisation if that is wanted locally. The Secretary of State has made it clear that in exercising these powers he will maintain the preference he has shown to date for consensus in an area. This Act, which has benefited greatly from scrutiny by noble Lords, continues the process of reform. As my noble friend Lord Porter said, it enables devolution of powers and budgets to areas and democratic governance with strong and accountable mayoral leadership, exercising wide-ranging powers that were once firmly under Whitehall’s thumb. The noble Lord, Lord Razzall, said very succinctly that Whitehall does not always know best, and that is correct.

Democracy is something we all understand but which is hard to define—perhaps the subject of another debate—because it comes in a variety of forms. While institutions were established after the Second World War to protect and promote our core values, including democracy, they rightly did not provide a precise and universal definition of democracy. But I believe we should recognise that democracy, whether national or local, is intensely practical. Its essential characteristics are the participation of people and the institutions in which that participation can occur.

The noble Lord, Lord Shipley, clearly agrees about the importance of local participation. The fundamental form of participation is, of course, voting. Equally important is the participation of those who stand for elected office, including those who represent and serve their communities. I will say more about that in a moment and address the points made by the noble Lords, Lord Shipley and Lord Tyler. There is also a range of mechanisms today by which people can participate in local democratic public life.

Of course, the coalition Government led the way in strengthening local participation and direct accountability. It legislated to allow people to use social media: to film, tweet and blog council meetings. This is improving town hall transparency and local accountability. My noble friend Lord True struck a cautionary note, however, by saying that trust—that is, the trust of councillors—goes hand and hand with this, which is an important point. With greater power comes greater responsibility and the need for trust.

I turn now to local democratic institutions, which provide the framework in which democratic participation can operate effectively. This country has a long tradition of representative democratic local government, centring on councils with elected members, and, more recently, directly elected mayors. It is through these democratic local governance institutions that decisions are taken to shape our cities, towns and counties; strong and transparent local leadership can promote the economic growth of areas; and effective public services can be delivered, supporting an area’s economic, social and environmental well-being.

I will address a point made by the noble Lord, Lord Shipley, about his concern that there is a danger that too much localism and too many disjointed groups could be confusing. He asked who was in charge of the little platoons. That caused me to have a little smile, because my maiden speech six years ago focused on the big society and little platoons. There is really no simple answer to this question, though, because the great variety of little platoons are communities, and those within them are taking action for the community’s benefit. In all cases the key principles, whatever the precise arrangements, are openness, transparency and public accountability.

That leads nicely to the interesting comments made by the right reverend Prelates. I will pick up what the right reverend Prelate the Bishop of Durham said in his gentle trot—if I may put it that way—around the country. He has clearly had much experience of working with local authorities. He pointed out the importance of local democracy, in particular focusing on the value of parish councils. I was particularly struck by his focus on community action partnerships and how it is important that there did not necessarily need to be a clear leader: they all worked symbiotically together, supported by the local authority. I was struck by the 3,200 projects that he mentioned. His comments were supported by the right reverend Prelate the Bishop of Derby, who also believed passionately in local democracy and supported the concept of local mayors. I picked up his point that there can be too much negativity at times.

The noble Lord, Lord Beecham, focused on financial pressures. I want to address directly the question of funding. He said that local authorities were facing unprecedented financial pressures and that local democracy was being eroded. Councils have indeed worked hard over the past five years to deliver a better deal for local taxpayers. Local government accounts for around a quarter of all public spending and every bit of the public sector must play its part in tackling the deficit, which is well known. However, devolution is giving local leaders sweeping new powers and millions of pounds of investment to boost local growth. In addition, by the end of this Parliament councils will keep 100% of local taxes, including all £26 billion from business rates.

A similar theme was raised by the noble Lords, Lord Low and Tyler, concerning the subject of local government funding. The noble Lord, Lord Low, asked whether the Government had assessed the effect of the reductions in funding on discretionary services. Local authorities have more spending power. It is set to be flat in cash from £44.5 billion in 2015-16 to £44.3 billion in 2019-20. Councils will have about £200 billion to spend on local services over this period. The Government have recently consulted on the proposed finance settlement and will carefully consider all responses received before taking final decisions, but these points were well made.

The noble Lord, Lord Stunell, raised the concern in his maiden speech that the Government might backslide out of commitments being made now on the devolution of powers to the combined authorities. But the deals that have been agreed with areas will also be enshrined in legislation that will come to this House. I hope that the noble Lord will be reassured that he will be able to continue to hold the Government to account in that respect.

The noble Lords, Lord Shipley and Lord Storey, raised the issue of education and the link to local authorities. The noble Lord, Lord Shipley, raised in particular the point about councils’ powers potentially being taken away. In discussions about the power that local people and communities might have, we should not necessarily equate local power with council powers. Power in local communities is not always about empowering councils. For example, successive Governments have sought to put decisions and power into schools themselves, with their governors taking responsibility. Regional education commissioners are not the people responsible for running schools, but, rather, part of the accountability mechanism for holding those responsible to account so that communities can have confidence in their schools and in those who run them.

I promised to turn to the subject of voting. The noble Lord, Lord Shipley, stated quite strongly his wish to move to a proportional system of voting. The noble Lord, Lord Kennedy, raised the same subject. I took it as read that he was not exactly in favour of STV but was seeking change. After this debate I might seek clarification from him.

I would like to state that there should be a strong defence of first past the post. It is a well-established system. It provides a clear and well-understood link between constituents and their elected representatives. I believe that proportional representation weakens that link. Proportional systems more often lead to councils or, indeed, Parliament not having a clear majority party. The result is that the programme followed by the Executive—a coalition—is not something that anyone voted for: rather, it is often a mish-mash of policies hammered out behind closed doors, which I argue is hardly democratic.

As for the one-party state issue that was raised, ensuring that councils are truly open, transparent and accountable in their decision-making is the key point. This is something that the Conservative-led coalition Government vigorously acted on. This included legislating to make council meetings more open, by allowing citizen journalists to report on meetings by filming, tweeting or blogging.

The noble Lord, Lord Shipley, asked who was in charge of decisions on local taxation. It was the coalition Government who gave local people a direct local voice on the council tax in place of centralised capping. Where a council now wishes to set a council tax which could be considered excessive, it is no longer prevented from doing so by central capping: it can ask local people in a referendum if they wish to pay the council tax.

The noble Lord, Lord Shipley, asked whether powers were being centralised. This was also mentioned by the noble Lords, Lord Greaves and Lord Beecham. But I would argue that the Government’s policy is quite the opposite of shrinking the powers that local councils have. Our manifesto commitment is to devolve wide-ranging powers and budgets. The Cities and Local Government Devolution Act, which received Royal Assent today, as mentioned earlier, provides new powers for conferring on district and county councils and on combined authorities the powers of a new public authority, including those of Ministers and government departments. The devolution deals we have concluded with areas such as Greater Manchester, Cornwall, Teesside and the West Midlands demonstrate our commitment to devolving powers. In Greater Manchester, these include transport, responsibility for a franchised bus service and new housing powers. In Cornwall, further education, training and learning provision for adults will be reshaped, and there will be new powers for franchising bus services.

The noble Lord, Lord Shipley, referred to a need for a constitutional convention. This point has been raised in a variety of debates in recent months. As the noble Lord will be aware, the question of a constitutional convention was discussed during the passage through this House of the Cities and Local Government Devolution Bill. The Government’s position is that such a convention is alien to our tradition of taking a step-by-step approach to reform, is not necessary and would risk simply being a talking shop.

The noble Baroness, Lady Bonham-Carter, made some interesting comments. She will know of my own personal interest in culture within this country, so I was particularly struck that she took a different tack in her remarks. I noted the points that she made about localism, the importance of culture, of the BBC’s Salford move and of UTCs, of which I am a passionate advocate. I agree with her that the creative industries remain an incredibly important part of our tradition. The birthright belongs to us, I think she said, and I agree with that.

I fear that I am running out of time. In concluding, I will sum up by making three key points at the end of this particularly interesting debate. I believe that the majority of speakers stressed that having a vibrant and effective local democracy was important for this country. Secondly, empowering local areas is about not just empowering councils; there needs to be devolution below councils. Finally, the Cities and Local Government Devolution Act represents a huge step change in local governance. I thank all noble Lords for their interesting comments.

[Lord Kennedy of Southwark]

Will the noble Viscount say something about the unfairness that will be created by allowing all councils to keep their business rates? There are huge pressures on local government and this risks making the situation much worse in some authorities. I think about my own authority of Lewisham and its obligations and about the rate base of other boroughs. The noble Viscount mentioned that he would address that.

[Viscount Younger of Leckie]

In addressing the noble Lord’s point, I say that I believe that there is no unfairness. We are passing responsibility down to local people for them to make decisions about these important matters rather than having a centralised approach.