Teesworks Programme: Audit
Lord Khan of Burnley Excerpts(1 month ago)
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Lord Scriven (LD)
I beg leave to ask the Question standing in my name on the Order Paper, and so doing draw the House’s attention to my interest set out in the register as a vice-president of the Local Government Association.
The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government (Lord Khan of Burnley) (Lab)
The previous Government asked the Tees Valley mayor to provide a progress update in September, following the recommendations of the independent review of Tees Valley Combined Authority’s oversight of the South Tees Development Corporation and Teesworks Joint Venture. Once we have received that update, we will consider whether the questions that need to be answered have been and whether any further action should be taken.
Lord Scriven (LD)
My Lords, many Teessiders’ jaws will drop on the floor when they hear that Answer from the Minister, as every Labour candidate in Teesside promised that a National Audit Office review would take place. In the light of half a billion pounds of taxpayers’ money being used and two businessmen making multimillion pound profits without taking any liabilities or any risk to their money, does that constitute best value? Why leave the people who have created the mess to solve the mess without any enforceable action being taken by Government?
Lord Khan of Burnley (Lab)
My Lords, I pay tribute to the work the noble Lord, Lord Scriven, does in local government, and I understand the deep emotions that he talks about, because there are outstanding questions to which the public deserve answers. We understand that this issue, like all local issues, is emotive. This is evidenced by it being raised in this House and in the other place several times. In fact, the noble Lord, Lord Scriven, has asked this question before. This Government believe that scrutiny and transparency are important. However, we must carefully consider the mayor’s response, due in September, and we will consider any further action to take when we receive it. We are not ruling out any options, and one option could be requesting the NAO to review.
Baroness Armstrong of Hill Top (Lab)
My Lords, as the Minister knows, this is an issue that the people of Teesside take very strongly. When I was working in the Tees Valley across a number of constituencies during the election, they really wanted transparency. They want to know what has happened to the money that the public, via the Government and other agencies, have put in and whether the arrangement, which gives 90% of the benefit to two individuals and only 10% to the public, can stand up. I appreciate that the Minister will bring the report, but will he also ask his department to look at an overall system of audit and accountability, because that disappeared when the Audit Commission disappeared, and there is no coherent across-the-board system for the devolved mayors. We want to give them more power, but if they get more power there must be transparency and proper accountability.
Lord Khan of Burnley (Lab)
I thank my noble friend for raising those important issues. It is true that the previous Government scrapped the Audit Commission and replaced it with a fragmented, locally led audit regime that is failing. This Government are committed to overhauling local audit and restoring better value for money for taxpayers. We are looking closely at all the evidence, and we will set out our plans, including legislation, shortly. I must remind the House that until we get the response of the Mayor of Tees Valley we cannot explore the options. We will wait for the response to the 26 recommendations which the mayor was asked to look at and then take further action.
Lord Shipley (LD)
My Lords, the Minister said that scrutiny is important and has committed the Government to undertaking further action when the mayor’s response has been received. What is the Minister’s expectation of the timescale? The mayor will respond quite soon, as I understand it, and the Government then have to say what they want to do. Can the Minister tell us how long that might be? Will he take into consideration the fact that the Tees Valley Combined Authority plans to have only five meetings of its cabinet in the period from September this year to the end of June 2025?
Lord Khan of Burnley (Lab)
I cannot comment on the meeting schedule of the Tees Valley Combined Authority. That is something for it to look at. In relation to the timeline, I have said to the House in previous answers that until six months have passed and the mayor has had an opportunity to address the concerns in relation to the 26 recommendations, we cannot work on this further. In the meantime, we recognise the point made by my noble friend that local audit needs transformative change, and noble Lords will very shortly hear the plans for changing the way local in which audit takes place.
Lord Foulkes of Cumnock (Lab Co-op)
My Lords, does the Minister share my mystification that none of the Conservative Members of this House are getting on their feet to make a comment?
Lord Khan of Burnley (Lab)
My Lords, I always enjoy my noble friend’s mystification. However, I cannot comment on this particular issue. Noble Lords are very welcome to ask any questions, and I am looking forward to them.
Lord Young of Cookham (Con)
My Lords, was there not an independent review into all these matters which found
“no evidence of corruption, wrongdoing or illegality”?
Lord Khan of Burnley (Lab)
That is absolutely the case. However, there are recommendations on decision-making, governance and scrutiny. I appreciate the noble Lord’s question.
Lord Scriven (LD)
My Lords, I appreciate that the Minister has said the Government have to wait for the mayor’s answers to the questions, which is different from what was being said before the Government were on the Government Benches. However, the review panel said in the report that the responses
“reduced our confidence that we have been given access to all relevant materials”.
The panel also said that it had
“not been able to pursue all lines of evidence or examine all transactions”.
Is that not why a full statutory audit is required: so that the Government convince themselves that Teessiders are getting value for money? With a response from the mayor, the report will have not seen all relevant information.
Lord Khan of Burnley (Lab)
The noble Lord again makes an important point. I remind the House that it is not the normal role of the NAO to examine or to audit local bodies. However, I understand that the NAO previously stated that it is willing to work outside its usual scope to undertake a review about Teesworks. We cannot prejudge the response of the Mayor of Tees Valley. When we get that response, we will look at it. In relation to the noble Lord’s question, that is another issue for the combined authority and the Mayor of Tees Valley to look at. Whatever happens, once that response is back with the Government, we will look at it and take further action then.
King’s Speech
Lord Khan of Burnley Excerpts(1 month, 1 week ago)
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The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government (Lord Khan of Burnley) (Lab)
My Lords, it is a great honour to close this important debate on His Majesty’s gracious Speech. I thank your Lordships for your many learned contributions, not least among them the excellent opening speech made by my noble and learned friend Lord Hermer, the Attorney-General—his maiden address to this House. With his decades of legal expertise at the very highest level, I know that my noble and learned friend will make an enormous contribution to this place and I take this opportunity to welcome him.
I also pay tribute to the noble Lord, Lord Booth, for his maiden address to this House, and to the former Ministers, the noble Baronesses, Lady Swinburne, Lady Penn and Lady Scott of Bybrook. Both my noble friend Lady Taylor and I thank them for their collegiate approach and work on this brief. We look forward to working with them in the future, and with the noble Baroness, Lady Pinnock, from the Liberal Democrat Benches.
I also pay tribute to the noble Lord, Lord Warner, who is retiring after almost 26 years in this place. I thank him for his decades of devoted public service and for the important work he has done throughout his career—both as a parliamentarian and as a civil servant—to improve the delivery of public health, child protection and youth justice services in this country.
It is my personal privilege to stand before your Lordships today, for the first time as a Government Minister—an honour that not many working-class lads from Burnley grow up thinking they will achieve. I thank all those who have offered their kind congratulations following my appointment to this office. But we cannot ignore how Westminster, the very heart of our democracy, feels further away than ever for millions of people across our country living in towns like mine. Ordinary working people have seen the gap between the sacrifices that they have been asked to make and the service that they have received from politicians grow into a chasm in recent years. Builders, plumbers, nurses, taxi drivers, as my dad and I used to be—hard-working people are doing the right thing but struggling to make ends meet, because of decisions made here, in this place.
It is time to restore faith and trust in our democracy and bridge the divide that has grown between politics and the people, by delivering the change that this Government were elected so decisively to bring—a point that a number of noble Lords made this evening.
We will place public service at the heart of everything we do, as we fulfil our mission of national renewal. This begins with putting more power than ever before in the hands of local people, kickstarting a devolution revolution in England that will transfer more decisions from Westminster to those who know their communities best, putting local people in charge of shaping their future and delivering the progress that local communities want to see. As a former Mayor of Burnley, I know first hand the transformative change that strong local leaders can achieve if given the powers to do so.
This work has already begun. Within days of taking office, the Prime Minister and Deputy Prime Minister hosted combined authority mayors in Downing Street to discuss our plans for change. Last week, the Deputy Prime Minister wrote to local leaders in devolution deserts across the country to set this political transformation in motion, encouraging them to take on new powers in areas such as transport, adult education and skills, housing and planning, and employment support. We are driving forward our national mission to boost economic growth.
We have seen the benefits of devolution in Greater Manchester. The city region has been one of the UK’s most spectacular success stories and fastest-growing areas over the last 20 years, and it is predicted to outpace national growth for years to come. This success has been led by Mayor Andy Burnham, who has used his powers to encourage investment, boost skills and integrate the local transport system.
We have seen the impact of devolution elsewhere in the country too, with mayors playing a crucial role in attracting new investment, such as Boeing and McLaren to South Yorkshire, creating good new jobs, and West Yorkshire becoming the UK’s fastest-growing digital hub outside London thanks to local leadership.
But, as we all know, these successes are the exception and not the rule. Regional growth has stagnated in recent years. The productivity of our major towns and cities still lags far behind. This is a lose-lose situation for us all. The Centre for Cities estimates a £180 billion boost to the economy if productivity in the north and Midlands matches that of London and the south-east. This is why we are encouraging local leaders to develop ambitious, long-term local growth plans that build on their area’s existing strengths, partnering with them to attract more business, create more jobs and deliver more opportunity for local people. We will join forces with major employers, universities, colleges and industry bodies to identify growth sectors and give them the support that they need to thrive.
Where there is a solid track record of sound financial management, we will simplify the funding process, giving local leaders the space and flexibility they need to progress. But the power of devolution does not stop at economic growth. We want to give people the tools to transform the look and feel of the neighbourhoods and high streets they love, too. Our English devolution Bill includes a new right-to-buy option, so that communities can purchase much-loved assets such as empty shops, pubs and community spaces, while helping to tackle the blight of empty premises, spruce up public spaces and give local communities greater power to shape services and influence regeneration.
Our mission to transfer more power to local leaders in England echoes the spirit of devolution to Scotland, Wales and Northern Ireland 25 years ago. As we celebrate a quarter of a century since this landmark reform was made, we must reset and restore the strained relationship we have inherited between Westminster and the devolved Governments, rebuilding the partnership between us. We are a Government for the whole United Kingdom: a Government who work in the interests of people living in every corner of our four nations, so that we can stand together once again to face the challenges of an uncertain world.
The Prime Minister is leading this work to rebuild our country, work that began on day one of our new Government when he spoke with the First Ministers of Scotland and Wales and the First and Deputy First Ministers of Northern Ireland, before travelling to meet them in Edinburgh, Belfast and Cardiff within his first 48 hours in office.
We are committed to strengthening the structures and institutions of our partnership of Governments, so that we can lay the foundation for change and deliver the programme of reform and national renewal that our country so badly needs. A council of the nations and regions will be established to underpin this work, with the Prime Minister partnering directly with the elected heads of Government in Scotland, Wales and Northern Ireland, and with the mayors of the combined authorities of England, who will be working closely with the Deputy Prime Minister to ensure that our national reforms deliver for people living across our United Kingdom.
But to restore faith in our democracy, we must first clean up our act here in Westminster, beginning with strengthening the enforcement of standards in public life. The Government are committed to establishing a new independent ethics and integrity commission with its own independent chair. This will ensure probity, restore confidence in government and make sure that Ministers are held to the highest standards, helping reset our public life.
As set out in our manifesto, the Government are committed to constitutional reform and modernising how Parliament works. As a first step, we will introduce a focused Bill that removes the right of hereditary peers to sit and vote in the House of Lords. Noble lords will be aware that the measures put in place in the House of Lords Act 1999 were intended to last only for a short period before more substantial reforms were enacted. It has now been 25 years since the passage of that Act and, as a first step on the road to further reform, now is the time for this modernisation.
The Government recognise the good work of hereditary peers who scrutinise the Government of the day and improve the quality of legislation, but reform is essential and long overdue. Places in the second Chamber should not be reserved for individuals because of their family background. For this reason, the Government hope that noble Lords will support this measure when it comes before the House.
The Government will act to strengthen our democracy at its roots by making our electoral system fairer, more secure and more inclusive, improving participation and, in due course, extending the franchise to 16 and 17 year-olds, thoroughly reviewing and addressing the rules on voter ID, and tightening the rules around donations to political parties. These reforms will give more people a voice, and a stake, in our democracy. They will help us meet the threat posed by malign actors who seek to interfere in our elections and give us the tools we need to root them out and expel them from our political finance framework.
I turn to the contributions from noble Lords across the House. On the points made by the noble and learned Lord, Lord Keen of Elie, the noble Lord, Lord Strathclyde, my noble friend Lady Jay of Paddington and other noble Lords, the ongoing position, as has been stated in the House, is indefensible and can be addressed quickly through this hereditary Peers Bill. The manifesto is clear that the Government are committed to acting decisively to address the most pressing issues by bringing about immediate modernisation. The first step in this process is this Bill, and this will not preclude further reforms.
The Government are committed to other reforms to the House of Lords. The noble Baroness, Lady Jay of Paddington, asked about this. We are in particular looking at introducing changes to the appointments process and at a mandatory retirement age, as well as a long-term commitment to replace the House of Lords with an alternative second Chamber that is more representative of the regions and nations. Given the nature and potential scale of these reforms, the Government will conduct engagement and consult on proposals for an alternative second Chamber, seeking the input of the British public on how politics can best serve them.
I listened to the ideas my noble friend Lord Foulkes of Cumnock presented. I will take them back to the department. I also pay tribute to the contribution of the noble Lord, Lord Burns. I thank him for his previous work on this area. I will look at the points he made and take them back, in particular in relation to the size of the House.
The Government have committed to improving the appointments process to ensure the quality of new appointments and to seek to improve the national and regional balance of the second Chamber. We are actively considering how this can best be achieved. I reject the assertion of the noble Lord, Lord Cromwell, that this is a purge. The intention is to make sure that the House is fit for purpose, in line with modernising this House and politics generally.
The Government have set out a commitment to introduce a retirement age. As the Prime Minister said, the Lords has become too big. The manifesto also sets out other measures, including the introduction of a participation requirement. The Government recognise the good work of many Peers who scrutinise the Executive and improve the quality of legislation.
The noble Lord, Lord Fowler, said that this was an unprecedented opportunity for reform and we should not need 30 years. That is why the work will start now. The House of Lords plays an important role in scrutinising, as I mentioned, and we recognise the valuable contribution of many Peers. It is important that Members participate in support of this core function.
The noble and learned Lord, Lord Hope, spoke about non-attendance. We are looking at how we can deliver the manifesto commitment to introduce this participation requirement, building on existing rules that require Members to attend once every parliamentary Session.
My noble friend Lord Grocott alluded to the by-elections. Abolishing the by-elections would run counter to our commitment to bring about immediate modernisation. The youngest hereditary Peer is in their 30s, so this approach would mean hereditary Peers could remain part of this House for generations. I take the point my noble friend made; had we dealt with this earlier, we would have had a much smaller House.
The noble Lord, Lord Northbrook, asked whether the Earl Marshal and the Lord Great Chamberlain would remain as Peers. The Earl Marshal is responsible for the organisation of major ceremonial state occasions, such as the Coronation of the monarch and state funerals. The Lord Great Chamberlain has charge of many parts of the Palace of Westminster and is the sovereign’s representative in Parliament. The important ceremonial functions of both will not be impacted by this Bill.
The noble Lord, Lord Wallace of Saltaire, asked how long it would take to set up the modernisation committee he referred to. The Government are committed to bringing about a return to politics of service and, as a priority, intend to tighten the existing prohibition on MPs providing paid parliamentary advice.
The noble and learned Lord, Lord Keen, and the noble Viscount, Lord Hailsham, talked about our approach to the Lords Spiritual. Some Peers, including the noble and learned Lord, asked why the Government were not planning to remove the Lords Spiritual from this House. The legislation announced in the King’s Speech is a focused Bill to bring about immediate modernisation by removing the rights of hereditary Peers to sit and vote. In contrast to bishops, hereditary Peers gain their position as a birthright. As I said, we are committed to an alternative second Chamber that will be more representative of the regions and nations.
A number of noble Lords made contributions in relation to electoral reform. I will start with the points made by the noble Lord, Lord Wallace of Saltaire. The Government are clear that all legitimate voters should not only have the opportunity to vote in our vibrant democracy but be actively encouraged to participate. The Government will therefore act during this Parliament to give 16 and 17 year-olds the right to vote in all elections, strengthening our democracy, empowering young people to participate and building an informed and empowered electorate. Alongside this, we will tackle the unacceptable participation gap in our elections by taking wider action to improve rates of electoral registration. My noble friend Lord Alli made that point eloquently.
While we act to encourage participation, we will also protect our democracy from malign actors who seek to interfere in UK elections through illegitimate political donations. We will act to strengthen the rules around donations to political parties, a point that my noble and learned friend Lord Falconer of Thoroton alluded to.
Those aged 16 and 17 can work, pay tax and serve our country in the Armed Forces. It therefore stands that they should also be entitled to vote and have their say on issues that affect them and their future. The Government will act during this Parliament to give 16 and 17 year-olds the right to vote in all UK elections, strengthening our democracy and empowering young people to participate in it. We are determined to do this right. This will be a major change to the electoral franchise, requiring careful planning and engagement with stakeholders in the electoral sector, devolved and local government, education and civil society and, importantly, young people themselves to ensure its success. By engaging voters early when they are young, we will build the foundations for their lifelong participation in our electoral process, as illustrated by the noble Baroness, Lady Smith of Llanfaes. Our Government will work with the electoral sector, as mentioned before, raise participation and make the electoral system more effective. We have a lot of progress to make ahead of primary legislation and will explore opportunities to do so.
The noble Baroness, Lady Smith of Llanfaes, and the noble Lord, Lord Rennard, talked in particular about voter ID. We have had concerns about the voter identification policy, and a long, vigorous debate has previously taken place in this House and the other place on this issue. The Government are committed to carefully and thoroughly reviewing the voter ID rules and evaluating how they impacted citizens during the general election, before bringing forward firm proposals in due course.
In relation to points made by the noble Baroness, Lady Pinnock, and the noble Lord, Lord Rennard, as well as the noble Lord, Lord Wallace, about automatic registration, we want to raise participation in our vibrant democracy and will explore options for achieving that objective. We will look at ways to use data and wider public services to encourage and support electoral registration. We will look to test different approaches and use experience from other countries to inform our decisions.
The noble Lord, Lord Rennard, talked about the independence of the Electoral Commission. On the Electoral Commission strategy and policy statement, it is vital for public confidence in our democracy that the independence of the Electoral Commission is upheld. The existence of a strategy and policy statement for the Electoral Commission is inconsistent with the commission’s role as an independent regulator.
The noble Lord, Lord Bruce, talked about first past the post. The voting system used to elect our representatives sits at the heart of our democracy and is of fundamental importance. The first past the post system is a clear way of electing representatives, is well understood by voters, and provides strong and direct local accountability.
The most reverend Primate the Archbishop of York talked about people being turned away at polling stations. We will conduct a thorough evaluation of the voter ID rules and evaluate how citizens during the general election were affected by the acceptance, or non-acceptance in some examples, of ID. Consideration of the evaluation will be given by the Electoral Commission before bringing forward firm proposals in due course.
The noble Baroness, Lady Lawlor, talked about postal votes. The availability of postal voting supports many people who would not otherwise be able to participate in person due to disability or family commitments. It is illegal to use another’s vote, and there are serious sanctions, including fines and imprisonment.
In response to the noble and learned Lord, Lord Thomas of Cymgiedd, I recognise the points made on statutory instruments. I can confirm that the department will take the necessary steps to ensure that information is available to enable effective scrutiny, and that drafting quality is of utmost importance to this Government. He talked about the end of skeleton Bills, as did the noble Lord, Lord Anderson of Ipswich. The Government recognise the vital importance of allowing Members of both Houses to scrutinise legislation effectively. There will be times where it is appropriate to have framework powers—in regulations in particular. However, we will make sure that there is flexibility, and will increase the minimum wage and uprate benefits in relation to this framework. This new Government will ensure that legislation is brought to this House in a state and manner befitting its importance to allow for effective scrutiny, implementation and improvement of Bills.
It has been a wide-ranging debate, but I will try to get through it in relation to the English devolution Bill. English devolution has been evolving for the past 10 years, with almost half of the English population now covered by devolution deals. However, to date, devolution deals have been struck with areas on a case-by-case basis, leaving a patchwork of institutions with different powers and governance arrangements which is difficult to navigate—these points were made by the noble Lord, Lord Kirkham, the noble Baroness, Lady Eaton, and my noble friend Lord Foulkes of Cumnock.
This landmark devolution Bill will fix this problem by establishing a new, clear devolution framework which will enshrine the role of local leaders in statute, extend the benefits of devolution to more areas and guarantee all areas access to an ambitious set of new powers which will unlock economic growth.
In relation to the point raised by my noble friend Lord Berkeley about the Isles of Scilly, the Deputy Prime Minister has made clear her desire to see devolution extended to every corner of England, and she is inviting local areas to put forward proposals. I will take back the issues my noble friend Lord Berkeley raised.
On the point made by the noble Lord, Lord Scriven, the English devolution Bill will deliver on our commitments to move power out of Westminster and strengthen mayoral powers. We are committed to engaging with local leaders on this enhanced devolution framework as it is developed. A number of points were made in relation to devolution. I have covered as many as I possibly can. I believe I have up to 25 minutes.
I want to finish this point about ethics and integrity. We will establish an independent ethics commission, as I mentioned. The Government are committed to restoring confidence in government and ensuring that Ministers are held to the highest standards. The ethics and integrity commission will therefore have the powers and functions necessary to do that.
In relation to the points noble Lords made in relation to Northern Ireland, the Leader of the House is in her place listening to them. We will come back and are happy to write to noble Lords on these points.
The Government are determined to rebuild the bonds of trust between people and politicians in this country. We know the damage done can be mended only by actions, not words. This will take time, but the work of change has already begun. It is a privilege to stand here as a Minister. I assure noble Lords that I intended to be an engaged Minister with my door always open to discuss issues and concerns that your Lordships may have. I reiterate the point made by my noble and learned friend Lord Hermer that it is imperative that we respect the rule of law, and I am pleased that this commitment is explicitly included in the oath taken by law officers.
The reforms we have debated today demonstrate the Government’s fundamental commitment to public service as we change our country for the better, putting the interests of ordinary working people at the forefront of all we do, rebuilding respect for our politics, restoring faith in our democracy and reuniting our country.