Cities and Local Government Devolution Bill [HL]
Debate between Lord Liddle and Lord Beecham
Lord Beecham
My Lords, perhaps my noble friend would agree with me that a major part of the problem is that the council tax embodies a significant element of the poll tax, and that that is what leads to such narrow banding.
Lord Liddle (Lab)
I agree with my noble friends on our side of the House who have spoken about these issues. Council tax is in urgent need of reform. As for anyone who defends its existing basis—it is indefensible. It needs reform, as my noble friends Lady Hollis and Lord Smith have suggested.
I applaud the Government’s commitment to devolution, as I have said before in this House. But the elephant in the room is how to devise a scheme of fiscal federalism within the United Kingdom and within England. That is a very tricky question. It is tricky politically because once we start to look at these issues we see that London and the south-east are transferring considerable amounts of money to the rest of England. The transfers within England are probably much greater than the much talked-about transfers under the Barnett formula to Scotland and Wales.
Some years ago, in my own area of Cumbria, a study was done of all government spending and the estimated tax contribution from all sources. It came to some pretty alarming conclusions. In terms of total government commitment to Cumbria, roughly twice as much money was being spent by the Government in one form or another—this includes the nuclear plant at Sellafield, not just local government—as we were paying in. This issue has to be honestly addressed.
It is also the reason why there is an absolutely compelling need for local authorities to have the powers to contribute to local economic regeneration. That is the way to start building a tax base, rather than living off this drip-feed from London and the south-east.
Some very big issues are being touched on here. It would be interesting to hear from the Minister whether there is any interest from the Government in launching a major study of these questions—royal commissions are rather out of fashion, but I suggest that this would be a suitable subject for one—or whether we will continue with the terribly unfortunate “ad-hockery” that we have. I am sure the Minister agrees with me about the unfairness of the current local government arrangements. I remember, in a meeting in Cumbria County Council when the last settlement came out, quoting that the authority that did best of all was Elmbridge in Kent.
Cities and Local Government Devolution Bill [HL]
Debate between Lord Liddle and Lord Beecham
Lord Beecham
My Lords, I entirely agree with the noble Lord. I apologise for omitting reference to two amendments in my name, which partially deal with the points that he has made—Amendments 31 and 32. The Bill permits the suspension of a mayor’s PCC role, and Amendment 31 would allow for any person who has had a PCC function delegated to them by the elected mayor to be suspended also. Similarly, where there is a disqualification of a mayor’s PCC role, the amendment would allow for the disqualification of any person who has had that function delegated to them. I apologise to your Lordships for not having referred to those points in my relatively brief opening remarks. I hope the Minister will be able to deal with them in due course.
Lord Liddle (Lab)
My Lords, I hesitate to disagree with my noble friend Lord Beecham, for whom I have enormous respect. However, my recollection of the police and crime commissioner thing is that, when it came to this House a few years ago, on this side of the House we all thought that it was a pretty bad idea. We were rather confirmed in that view by the fact that the percentage polled by these people in the elections was pathetic and they really have very little democratic legitimacy.
Certainly in my own area, the commissioner is seen to regard himself as a very big noise, to be driven around in chauffeur-driven cars at public expense, employing advisers on his behalf. Surely we want to get rid of all this. Surely, being able to transfer those functions into the functions of an elected mayor is something we should welcome. The whole point of an elected mayor is to bring a breath of fresh air into the democratic politics of local government. I have devoted not nearly as long a part of my life to local government as the noble Lord, Lord Beecham, but I have done about 15 years of service one way or another on local authorities and I think the elected mayor idea has the potential to bring democratic life to big cities and to introduce a new style of politics. If we are to have elected mayors, the police and crime function naturally fits in.
There are obviously boundary issues that someone has got to sort to out, but that must be the Secretary of State—no one else can do it. The idea that everything has to be done by the agreement of existing authorities is a recipe for the status quo, and I feel that we are somehow on the wrong track.