Localism Bill

Lord Shipley Excerpts

Tuesday 7th June 2011 Lords Chamber

[Lord Shipley]

My Lords, I congratulate the noble Baroness, Lady Bakewell, on defining for us what localism means. In debates like this it is helpful to have clear definitions of what we mean by words: from “localism”, through “community” and “neighbourhoods” to “nimbyism”. In the end, localism is about neighbourhoods and neighbourhood provision; and it is about the social inclusion and cohesion that derive from that localism agenda. In that respect I agree entirely with what the noble Baroness had to say.

I declare my interest as the vice-president of the Local Government Association and I am still a member of Newcastle City Council.

The Bill’s declared aim is to devolve and decentralise power to councils and communities locally; and where it does that, the Government should be commended. Not surprisingly, there is a concern that the Bill has not been drafted in the spirit of localism. That is because there are simply too many powers assigned to the Secretary of State and Whitehall to regulate and micromanage. The Government should not have powers to impose shadow mayors on local communities. The creation of an elected mayor should rest entirely in the hands of local people; and giving the Secretary of State the power to force a shadow mayor on to local people and then subject his decision to a confirmatory referendum is wholly against the spirit of localism.

Nor should central government legislate on what constitutes an excessive council tax rise. I find it interesting that the desire for localism in this Bill does not extend to allowing a referendum on putting council tax up. True localism would require not only an option to have the council tax rate below what the council says, but also one that is above what it says. As for referendums, councils already have powers to hold them, but the Bill will see Ministers in future regulating these more from Whitehall. In social housing, the Bill would lead to increased housebuilding and growth only if it frees councils to invest in social housing. So Whitehall should not be able to cap councils’ ability to borrow to invest in social housing.

In principle, the Government have made firm commitments to devolution, so the desire to devolve is apparently there. This Bill’s potential is for a legacy of empowered places, a more competitive and inclusive England, a rebalanced economy away from an overreliance on the south-east, and cities that have greater freedoms. This Bill provides further powers for London, transferred from the London Development Agency and the Homes and Communities Agency, with the power for Ministers to delegate further functions. The country needs London to do well and London—along with the devolved assemblies of Scotland and Wales and, through them, their cities—will have greater freedom to grow its economy than other cities in England.

Yet cities in England are also capable of delivering substantial growth and the country would benefit enormously from giving them the opportunities to drive prosperity. A recent report by Oxford Economics has shown that many billions of pounds in growth could be delivered by empowering English cities. For example, the urban areas of the eight English core cities —Birmingham, Bristol, Leeds, Liverpool, Manchester, Newcastle, Nottingham and Sheffield—already account for 27 per cent of the UK’s economy. We need to seek ways to unleash that economic potential, create much needed investment, jobs and growth and enable those cities to compete on a level playing field internationally. I anticipate an opportunity to discuss this proposal further in Committee.

I have some further words on housing matters. Reforming the complexities of the housing finance system is very welcome, but it must lead to councils being empowered to do more—and being expected to do more—for themselves, with greater interdependence and more financial certainty. We simply must build more homes, given that new household formation is now more than twice the level of new housebuilding. So many of our housing problems relate to undersupply, particularly of social housing, and addressing this is central to preventing homelessness rising and the average age of first-time buyers being driven upwards to over 40. The Localism Bill offers us an opportunity to improve the duty owed to single homeless people and, in my view, it would be right for local authorities to provide suitable accommodation for a period that would give them a reasonable chance of finding accommodation for themselves.

There is a concern that some councils, when seeking to bring their ALMOs back in-house, are effectively excluding tenants from the process. I hope a clause might be inserted into the Bill that would oblige local authorities seeking to disestablish an ALMO to inform and involve tenants fully and hold a ballot. I also hope for an assurance from the Minister that the community right to challenge will be applicable to social housing tenants and ALMO staff who want to manage social housing by setting up an appropriate co-ownership structure.

This Bill will remove security of tenure for new social tenants and introduce a new form of short-term tenancy. There is a danger that the Government could be introducing legislation which will cause anguish for some very vulnerable families, while not delivering a great deal. Short-term tenancies run the risk of creating a cycle of repeat homelessness; and rather than create yet more insecurity for people and communities, reform should focus on long-term solutions that deliver the security that vulnerable people need.

Securing social mobility is a key agenda for this Government, but this is achieved through security and confidence, both at individual and community level. Reviewing tenancies every 24 months is too short a timeframe to secure that ability to build confidence and act on opportunities for employment.

One final point relates to the ballot box and representative democracy. This is an understated, undervalued issue in the Bill because the primacy of decision-making at all levels must lie with those who are elected to take those decisions. To take neighbourhood planning as an example, there has to be a democratic legitimacy. Some 40 years ago I was involved in pushing the case for urban parish councils. For a decade or so it was central to a lot of my thinking and to that of a number of Members of Your Lordships’ House. In the context of parish and town councils being available in many parts of the country, they are less so in concentrated urban areas. Securing democratic legitimacy may need part of this Bill to look at some form of elected urban parish councils to give force to neighbourhood planning.