Localism Bill

Lord Pickles Excerpts

Monday 17th January 2011 Commons Chamber

[The Secretary of State for Communities and Local Government (Mr Eric Pickles)]

I beg to move, That the Bill be now read a Second time.

I am glad to see the right hon. Member for Don Valley (Caroline Flint) in her place. Had she not arrived, I might have raised a point of order myself to allow her to get here.

The present situation is not Labour’s fault. I do not blame the Opposition for the excessive centralisation that has come to characterise government in this country. Command and control is, of course, naturally appealing to the Opposition, but in fairness, they only accelerated an existing trend. If they boarded the moving train of centralism, there cannot be any doubt that they drove it to its terminus: grand centralist station. So the Labour party is not entirely to blame; it is just mostly to blame.

The Bill will reverse the centralist creep of decades and replace it with local control. It is a triumph for democracy over bureaucracy. It will fundamentally shake up the balance of power in this country, revitalising local democracy and putting power back where it belongs, in the hands of the people. For years, Ministers sat in their Departments hoarding power like misers. Occasionally, grudgingly and with deep resentment, they might have loosened their grip on the reins of power, only to tighten it almost immediately. Uniquely, they managed to fulfil the wildest dreams of both Sir Humphrey Appleby and Mr Joseph Stalin. That strangled the life out of local government, so councils can barely get themselves a cup of tea without asking permission. It forced a central blueprint on everything from local public services to housing and planning, regardless of what local people want or need. It left councillors hamstrung, front-line public servants frustrated and residents out in the cold.

The reasoned amendment owes much to the pragmatism of St Augustine: “Oh Lord, make me a localist—but not just yet.” Preserve us from the wickedness of delegated powers. Yet, as I said earlier today to the hon. Member for Sheffield South East (Mr Betts), I do not recall those concerns being raised by the current Opposition during the passage of the Local Government and Public Involvement in Health Act 2007, which in a mere 176 clauses, contained 86 delegated powers. The number of such powers in this Bill is, therefore, entirely the norm and entirely in keeping with the way in which legislation has been put together, with one important difference: this is a deregulating Bill.

[Sir Paul Beresford (Mole Valley) (Con)]

I hope that my right hon. Friend does not miss the opportunity to mention the great pilot of centralisation, John, now Lord, Prescott, who, in moving from the social status of waiter to that of a passenger on cruise ships, was so damaging to local government.

--- Later in debate ---

[Mr Pickles]

I have to say that I have great affection for Lord Prescott, and I am particularly enjoying his current advocacy of insurance on television.

The Bill is based on a simple premise: we must trust the people who elect us and we must ensure that we trust them to make the right decision for their area. To misquote Clint Eastwood: “A Government needs to know its limitations.” We do not have all the answers but we have to have the courage to encourage local solutions. The Bill is made up of four main elements: London governance, planning, localism and housing. The London element is relatively straightforward and redistributes power away from quangos and back to elected officials and communities. The settlement has been agreed by the Mayor of London, the London assembly and the boroughs, and it is based on consensus across the political parties. I would like to pay tribute to the constructive way in which the Mayor, the assembly and the London boroughs, regardless of their political persuasion, have worked together on these arrangements.

[Toby Perkins (Chesterfield) (Lab)]

If this is all about giving away powers from Whitehall, why does the Bill transfer 126 new powers to the Secretary of State?

[Mr Pickles]

I do not know whether the hon. Gentleman was distracted by something in the Chamber more interesting than my speech, but I have already dealt with that. I politely pointed out that in previous, much smaller Bills introduced when the Labour party was running these matters, the proportion of delegated legislation was much higher. I am here to be helpful.

[Simon Hughes (Bermondsey and Old Southwark) (LD)]

As a London Member of Parliament, I welcome the part of the Bill that delegates considerable extra powers to London government across the board. We tried to bring in many of these things during the passage of the Bill that set up the Greater London authority in the first place. Will the Secretary of State continue, over the course of this Parliament, to take the attitude that, where possible, we can continue to devolve power both to regional government, which is what the GLA is, and to local government?

[Mr Pickles]

I wish that my right hon. Friend had not used the R-word, but it is certainly my intention that this is part of a continuous process of devolution. He is quite right. There was a lot of cynical suggestion that the London councils and the Mayor would not be able to reach an agreement, and it is to their credit that they have managed to do so.

[Mr Nick Raynsford (Greenwich and Woolwich) (Lab)]

Will the Secretary of State give way?

[Mr Pickles]

Of course I give way to the distinguished gentleman.

[Mr Raynsford]

As I understand it, the Secretary of State’s chief argument in favour of the Bill is that local people should be free to determine how they receive services within their own area. Does he believe that the frequency and arrangement of refuse collection services should be left entirely to local decision, or might he occasionally be tempted to intervene in this?

--- Later in debate ---

[Mr Pickles]

Of course refuse collection is a matter for local people. We have ended Labour’s bin taxes, and there will no longer be an incentive to have a fortnightly collection. If, on that basis, councils want to continue to have fortnightly collections, then good luck to them in facing their electorates. I pay tribute to the right hon. Gentleman, who is in some ways my hero—I am sorely tempted to take down one of my pictures of John Wayne and replace it with one of him—because he is an example of someone who had enormous vitality and ideas regarding the finance of local government and was continually ignored by his own side. I hope to take up the baton that he so sadly dropped.

[Mr Edward Leigh (Gainsborough) (Con)]

Within the ethos and context of localism, how are we going to deal with the scandal of 129 local government executives earning more than the Prime Minister? Perhaps they should have to go back to their local people and ask permission before they are paid such outrageous salaries.

[Mr Pickles]

My hon. Friend makes a very moderate and reasonable point. I have suggested to chief executives that in order to demonstrate that they are on the side of the workers, they should take a 10% cut if they are earning more than £200,000 and a 5% cut if they are earning more than £150,000. In future, under this Bill, such remunerations will not be arrived at through cosy little deals between the leader and the applicant but must come before the full council, which will have to endorse them. I am pretty sure that common sense will rear its head and we will no longer see this ridiculous creep in the sums of money for chief executives, who will be more cognisant of their responsibilities.

Councils have been drowning in red tape and rules and paralysed by a culture of centralism. Those that want to break the mould and innovate continually run the risk of legal challenge. The Bill will restore town halls to their former glory. There was a time when local councils really were the centre of a community—when the local councillor was revered and honoured as a local person of importance and local government got things done, improved public health, cut poverty and ended slum housing. That is the sort of courage and ambition that we need in councils today.

[Bob Russell (Colchester) (LD)]

I am grateful to my right hon. Friend for his generous comments about local councillors. I am sure that they apply to councillors of all political persuasions. My experience is that councillors want to be involved. Does he agree that one way of involving them is to encourage the abolition of the cabinet system in local government?

[Mr Pickles]

The cabinet system has many advantages, but it means that a number of councillors are denied the opportunity to be involved. We do not take a strong view on that matter, but the Bill will enable councils to go back to the committee system if they want to do so.

The Bill will give councils the powers and authority that they need. It will be a shot in the arm for local democracy. It will give councils a general power of competence. That is probably the single most important item in the Bill. It will turn convention on its head. It differs from a general power of well-being in one vital respect: instead of local authorities having to find a statute that allows them to act, the fun-loving legal advisers will have to find a statute that prevents them from taking action.

We know that the Labour party considered a general power of competence, so what held them back? Apparently, the right hon. Member for Blackburn (Mr Straw) once argued that councils should not be allowed a general power because it would allow Islington to build a nuclear bomb. He is a much-respected Member of the House and his worries should be taken seriously. I have good news. The residents of Islington and the rest of us can sleep safely in the knowledge that the Radioactive Substances Act 1993, the Nuclear Explosions (Prohibition and Inspections) Act 1998 and the Nuclear Safeguards Act 2000 will prevent Islington council from obtaining weapons of mass destruction. In short, the power of general competence for councils does not simultaneously abolish all other laws of the land.

[Chris Leslie (Nottingham East) (Lab/Co-op)]

The Secretary of State advocated the power of general competence as a means of increasing the freedoms of local authorities. However, clause 5(3) states:

“The Secretary of State may by order make provision preventing local authorities from doing, in exercise of the general power, anything which is specified, or is of a description specified, in the order.”

Does that not completely negate the supposed freedoms?

[Mr Pickles]

I am surprised by the hon. Gentleman’s statement, because he and I have previous. When he was engaged in a respectable profession before returning to this House, I recall him advising me on these issues. His advice was that these things should not be absolute, and that the Secretary of State needs to retain residual powers just in case. He should not castigate me for taking the advice that he gave all those years ago— nice try.

[Hazel Blears (Salford and Eccles) (Lab)]

The Secretary of State said that the current power to do anything that is in the interests of economic, social or environmental well-being is too narrow and that his general power of competence will extend the ability of councils to take action. Will he give practical examples of issues that do not fall within economic, social or environmental well-being, on which councils will be able to act? I am sure that the House wants to be enlightened on how large the power is. Before the election, he said that he wanted to give councils the power to do anything other than raise taxation. Is that still his intention?

[Mr Pickles]

The right hon. Lady makes a reasonable point. She will be aware of problems with London authorities’ insurance, and the general power of competence will deal with those. However, the question is: what is the difference between the general power of competence and the general power of well-being? The truth is that there is not much difference, and we welcomed the intention to introduce the latter, but only about 17% of authorities have done so. The reason for that is the innate conservatism of those providing legal advice, so councils have tended to err on the side of not introducing it.

The reason why the general power of competence is so important is that it turns the determination requirements on their head. All those fun-loving guys who are involved in offering legal advice to local authorities, who are basically conservative, will now have to err on the side of permissiveness. That is a substantial change, and I would have thought that there would be no difference between the parties on that matter. I believe that a general power of competence is better than a general power of well-being, because the latter had to be invented as a concept whereas the former is well accepted by local authorities throughout the world, which understand exactly what it means.

The Bill will let councils decide the best way to organise themselves, whether through cities having mayors, through local council executives or through the committee system. On the subject of mayors, I am delighted to report to the House that Lord Adonis will begin a tour of 12 English cities, talking to local people about the prospect of having a mayor. I look forward to his report. The Government are grateful that that distinguished former Cabinet Minister is undertaking that important work.

[Mr Bob Ainsworth (Coventry North East) (Lab)]

Will the Secretary of State give way?

[Mr Pickles]

Of course I give way to another distinguished former Cabinet Minister.

[Mr Ainsworth]

Will the Secretary of State share with the House his thinking and motives in providing for the imposition of shadow mayors ahead of a referendum in the 12 cities involved?

[Mr Pickles]

The idea is basically to get ready for the mayors. I want to make it absolutely clear that if the people in those authorities decide that they do not want a mayor, the powers will disappear. However, it was felt that if we were to move towards referendums, the people of the cities involved should have an indication of the powers and freedoms that they would get if they had a mayor.

I think it was Lord Adonis, when he was dealing with high-speed rail, who made it clear that it was easier to deal with mayors in London and other parts of the country than to deal with council leaders. Cities such as Birmingham—I understand that one of our former colleagues, Clare Short, has thrown her hat in the ring as a potential mayor there—are as important as Boston or Barcelona, and they have a part to play on the world stage. I believe that mayors can enhance that role.

The Bill pushes power out as far as possible into communities and neighbourhoods, into the hands of individuals and community groups. For too long, local groups, community associations and even ordinary men and women on the street with a good idea and a desire to make their neighbourhood a better place to live, have been ignored and left out. They have no rights and no chance to have their voice heard. It is hardly surprising that even the most dedicated activist gets frustrated, let alone a concerned mum who just wants to see her street kept clean or a group of friends who are worried about a local pub that is under threat. We are giving people new rights, powers and opportunities to act on the issues that matter.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

The right hon. Gentleman knows my town of Huddersfield very well. Since the election, local community groups have been falling by the wayside in political and community activity. They have lost their funding, including seed funding, and third sector and community groups are in a dire state. What will the Bill do to rejuvenate the third sector and create a renaissance in it?

[Mr Pickles]

Voluntary groups in Huddersfield, which I know and love very well, are very keen on those powers. They will have a power to challenge and a power for a proper partnership that is not hand-to-mouth and based on grants and handouts. In such partnerships, sensible local authorities will work hand in glove with voluntary organisations to provide better services for their population.

Let me give another example. People will be able to veto excessive council tax rises. Instead of the Secretary of State making that decision, local people will balance service needs against the level of council tax. They will be able to protect and improve—and even run—the public services on which they rely, and ensure that much-loved local assets are kept for the next generation. Those rights will give community groups the oomph that they need. People will have a genuine stake in their community and a reason to get involved, secure in the knowledge that the power to change things is in their hands.

[Charlie Elphicke (Dover) (Con)]

This is a truly radical Bill from a truly radical Secretary of State. It brings closer to reality the dream of government for the people, by the people and of the people that shall not perish from this earth. In my constituency, people want to buy the port of Dover. People in other constituencies want to buy forests and other such community assets. Will the Secretary of State and the Government consider going faster, deeper and wider, so that we have a community right to buy from central Government as well as from local government?

[Mr Pickles]

My hon. Friend tempts me to become a bit Maoist in these matters, but we will certainly consider what he says and look towards giving greater powers to local people.

The Bill will return the planning system to the people. Targets do not build homes, and regional plans do not get communities involved. Today, we have an adversarial, confrontational system, fomented on mistrust and a sense of powerlessness. It is simply not working. The Bill will therefore create genuine neighbourhood planning, by which the community will develop in ways that make sense for local people. Instead of instructions being handed down from on high, the Bill will offer incentives to invest in growth. Instead of unelected commissioners making national decisions on important national infrastructure, those choices will again be down to democratically elected Ministers in this House.

[Mr David Blunkett (Sheffield, Brightside and Hillsborough) (Lab)]

There is a genuine worry among the infrastructure industries, particularly the utilities, about the current interregnum. When will the Secretary of State issue guidance on major infrastructure processes? When will the words used by the Minister of State, Department for Communities and Local Government, the right hon. Member for Tunbridge Wells (Greg Clark) be fulfilled? In Question Time, he spoke of a fast-track political process, which might give some certainty for investors and some knowledge of how the system will actually work.

[Mr Pickles]

I am happy to reassure the right hon. Gentleman that there will be no gap in the system, and that the utilities are very much in favour of what we are doing. In terms of general national policy statements, we will move at pace, because as he rightly identifies, infrastructure, particularly in respect of the utilities, is immensely important.

The Bill will give councils and communities the power that they need to tackle the housing challenges that they face. The coalition Government have inherited a deep housing crisis. Five million people languish on waiting lists, and many of them have no chance whatever of being allocated social housing. It is a failing that hundreds of thousands of families live in overcrowded conditions while other homes are under-occupied, and that in half of all families who live in social housing, no one works.

The Localism Bill will create a much fairer and more flexible system. Councils will have the discretion to help families meet their needs in the most appropriate way, and we have of course made sure that there will be appropriate protections for the most vulnerable families. However, there are also many families who simply need a short-term helping hand—and councils will now be able to offer just that. I remind the House that we are only talking about new entrants to the system; existing tenants are unaffected. We are also reforming council house financing, building on proposals from previous Governments, but with a more generous offer. All councils will have more money to manage their stock.

Finally, the Bill represents the final nail in the coffin for the most illogical and unpopular measures of the previous Government: it will get rid of bin taxes, home information packs, the outdated port tax, and the sort of bonkers bureaucratic measures that we get when decisions are taken far away from the people they affect—the sort of measures we will not see anymore. The era of big government is over. Look where it got us: uneven and unstable economic growth; frustrated front-line workers slavishly following the rulebook to the letter; and residents and community groups left powerless to solve their problems.

[Mr Aidan Burley (Cannock Chase) (Con)]

One of the scandals of recent years is that councils have been allowed to run up astronomical debts. My former authority, where I served as a councillor—Hammersmith and Fulham council—is trying to reduce its historical debt of £133 million, which costs taxpayers £5 million a year in interest payments before a single street is even swept. What safeguards are in the Bill against councils running up excessive debts?

[Mr Pickles]

The Treasury rules prevent it. I know that Hammersmith and Fulham council has received a lot of praise in the Chamber over the past few hours, but it deserves it—it is a fantastic council. After years of Labour neglect and continuous council tax rises, residents in Hammersmith and Fulham are getting a better, cheaper service that represents the real needs of the community. It was no surprise that it was returned with a thumping majority at the last election.

By pushing power out, getting the Government out of the way and letting people run their own affairs, we can build a stronger, fairer Britain. We can restore civic pride, rebuild democratic accountability, promote economic growth and replace big government with the big society. I commend the Bill to the House.