(8 months, 1 week ago)
Grand CommitteeMy Lords, it is deeply sad news to learn of Paul Rowsell’s death. I think back to the advice that he gave me during the passage of the Localism Act in the period of the coalition Government from 2010 to 2015. He had the ability to listen, to explain and to stay very polite, even if I was completely wrong on the issue. He had the ability to make things clear so that the understanding of those of us who were dealing with legislation was improved. It is a sad day for local government. He will be sorely missed. I appreciated his presence as part of the Bill team so many times. You knew that if Paul was leading a team, the work had been done and was of an enormously high, professional standard. It is with deep regret that we say that we will miss Paul profoundly.
My Lords, the purpose of this order is to implement the devolution deal agreed between the Government and seven councils across the north-east—County Durham, Gateshead, Newcastle upon Tyne, North Tyneside, Northumberland, South Tyneside and Sunderland—on 28 December 2022.
We have been working closely with these seven councils. On 2 February 2024, they consented to the making of the order. The institutions that are to be abolished by the order—the two existing combined authorities and the North of Tyne Mayor—consented to the making of this order, which also provides the foundation for the deeper devolution deal for the north-east that we announced in the Budget on 6 March 2024. This trailblazing deal deepens and extends the devolution settlement in the north-east and provides new tools for the future mayor and local leaders to drive regional economic growth.
The order provides for the establishment on 7 May 2024 of the north-east mayoral combined authority, comprising as constituent councils the seven north-east councils. It simultaneously abolishes the existing North East Combined Authority and the North of Tyne Combined Authority, together with the office of Mayor for the North of Tyne. It provides for a new mayor for the whole of the north-east to be elected by local government electors across the area of the seven constituent councils with the first election to take place on 2 May 2024.
That elected mayor will take up office on 7 May with a four-year term ending after the next mayoral election in May 2028. Thereafter, there will be elections every fourth year to be held on the ordinary election day for that year—that is, the first Thursday in May. Following the enactment of the Elections Act 2022, the mayoral election will use the first past the post voting system.
Before the Minister sits down, can I add one thing to her list? In relation to the mayoral development corporations, she talked in terms of scrutiny and audit and said that guidance will be issued at some point—I hope sooner rather than later. However, it is not just the question of scrutiny and audit; it is also about risk. In my view, mayoral development corporations should quite separately think about their structures for assessing risk. Scrutiny tends to come slightly after an event as opposed to alongside a decision being made. Audit normally comes significantly after, in practice. It is that management of risk in a mayoral development corporation to which I think greater attention needs to be paid.
I absolutely agree; I think that is the same in all local authorities, however small or large. I see that as part of the overview and scrutiny. We have used “scrutiny” too often without using the word “overview” before it. I would expect that the overview, before anything is delivered, should look at the risks of delivering.
In conclusion, this order, which is strongly supported locally, is a significant step forward for the north-east, for its businesses and its communities. It is key to the future economic development and regeneration of the area, and it will enable local leaders to effectively invest in and address local priorities. I commend the order to the Committee.
(9 months, 1 week ago)
Grand CommitteeMy Lords, I thank noble Lords who have spoken in this debate, particularly for their support for the East Midlands. I know that will be well received. Once again, we all wish it well. I will respond to a number of questions— I will look at Hansard and write if I miss any—starting with my noble friend Lady McIntosh.
The response rate to the consultations the constituent councils did was very low. The noble Baroness, Lady Taylor of Stevenage, and the noble Lord, Lord Shipley, mentioned that 4,800 responses from 1.6 million people is not a lot, but you cannot force people. My experience is exactly the same. People will tell you, “We just want people to lead our council, keep us safe and economically viable and to spend our money wisely”. Sadly, that is what happens in all these cases, but that is how it is.
My noble friend Lady McIntosh of Pickering asked whether this funding is new. Yes, the funding to the East Midlands is new, as was the case in Tees Valley; that was new funding, too. My noble friend also mentioned planning powers. No planning powers or housing powers are being transferred from existing planning and housing authorities. We made that clear in passing the then Levelling-up and Regeneration Bill, which is now an Act. Therefore, those authorities will be responsible. That is part of the challenge; they must work together for the good of their area.
The East Midlands devolution deal is a level 3 deal, with strong devolution alongside the establishment of a mayor. There was concern that 52% of those who responded to the consultation did not want a mayor; the problem is that they also said they wanted a level 3 devolution deal, with the large amounts of money and power that come with it. It was for the Secretary of State to make the decision that the result of the East Midlands consultation should be a level 3 deal, which requires a mayor.
The noble Lord, Lord Shipley, the noble Baroness, Lady Taylor of Stevenage, and my noble friend Lady McIntosh brought up Tees Valley. As they will know, the report came through very recently. We are considering the two recommendations in it. The noble Lord, Lord Shipley, is absolutely right: risk, scrutiny and audit are very important here, as they are in all local government. The mayor from Teesside has been asked for his response by early March; once it comes through, I will write a further letter on the Government’s response. What I think will happen is that we—the Government—will learn from that report, as will the East Midlands. As with all local government, as I say, scrutiny, audit and risk are important.
Since we are on that specific issue, may I ask two questions? The Minister said that there were two recommendations but, actually, there are 28 altogether.
Right, but there are others which relate indirectly to the scrutiny, risk and audit function.
Secondly, this is not just about the East Midlands Combined County Authority. This issue relates to all mayoral combined authorities: those that currently exist and those that are about to come into existence. I hope that, when the Minister writes to us, there will have been an in-depth examination by the department of how the criticisms of Tees Valley’s arrangements could not occur in all of those other authorities. I hope that I am making myself clear: there needs to be an examination of the constitutional and working arrangements in all those combined authority areas.
I agree with the noble Lord. This is what we will do: we will look at the report in detail and respond accordingly on the things in the report that reflect, first, on the department itself and, secondly, on future combined authorities of whatever type because of the importance of that.
There are currently no limits on mayoral precepts; the power does exist to set limits. That would need the approval of the Commons, though, if it were to happen so we will watch that as it moves forward. I think it was the noble Baroness, Lady Taylor of Stevenage, who brought up the issue of a political adviser. The combined county authorities can have one political adviser; the post, like local authority political advisers, is not politically restricted in the way that other officers’ posts are, but they can have one.
(9 months, 3 weeks ago)
Grand CommitteeMy Lords, in moving this Motion, I will also speak to the Combined Authorities (Mayoral Elections) Order 2017 (Amendment) Regulations 2024.
These draft regulations were laid before the House on 11 December 2023. If approved and made, they will amend the existing legislation to provide the rules for the conduct of elections for directly elected mayors of combined county authorities and the rules by which mayoral vacancies in such authorities are to be declared, as well as the procedure for filling them through by- elections. The mayoral elections regulations are essential to enable the first election of a combined county authority mayor—in the east Midlands—to take place as planned in May 2024. It is highly desirable that the filling of vacancies regulations are made before the possibility of a vacancy in the post of combined county authority mayor arises.
The two sets of regulations that we are considering, if approved and made, will mark a milestone in implementing the east Midlands devolution deal and pave the way for further mayoral combined county authorities. As noble Lords will be aware, the Government agreed an historic devolution deal with Derbyshire County Council, Derby City Council, Nottinghamshire County Council and Nottingham City Council in August 2022. This deal, if the necessary secondary legislation is approved by Parliament, will see significant powers and budgets conferred on the East Midlands Combined County Authority.
This authority, if approved by Parliament, will be the first of its kind to be established under the new powers in the Levelling-up and Regeneration Act 2023. Its directly elected mayor, agreed and consented to by the four councils concerned, will provide an essential single point of accountability for such major powers. The draft mayoral elections regulations are necessary to conduct an election of the east Midlands mayor and, indeed, to conduct elections for any future combined county authority mayors. The draft filling of vacancies regulations provide the rules for filling any mid-term vacancies in the office of mayor for a combined county authority.
Turning to the specifics, the draft mayoral elections regulations make detailed provision about the conduct of the elections for mayors of combined county authorities. They do this by extending the application of the Combined Authorities (Mayoral Elections) Order 2017 to elections for combined county authority mayors. They also apply the Voter Identification Regulations 2022 to combined county authority mayoral elections in order to maintain consistency with other local government elections, and ensure that transitional provisions for EU citizens standing as candidates in other local elections in May 2024 apply to combined county authority mayoral elections.
The Combined Authorities (Mayoral Elections) Order 2017 largely replicated the rules for elections for local authority mayors and police and crime commissioners. This procedural consistency is the hallmark of local government electoral law and ensures the smooth running of polls, particularly where they are held in combination. However, I will mention certain specific provisions that we are making for combined county authority mayors, reflecting the constitutional arrangements for these authorities.
We are creating a new role—the combined county authority returning officer—to oversee the whole of the election of a combined county authority mayor. This important role mirrors the role of the combined authority returning officer. The combined county authority returning officer, like the combined authority returning officer, will be personally responsible for publishing the notice of elections, administering the nomination process, ensuring that candidates comply with the requirements regarding the content of their election addresses, collating and calculating the number of votes given for each candidate, and calculating and declaring the result.
The draft regulations also clarify that the returning officer for the district council in a two-tier area of a combined county authority is to be responsible for running the mayoral election within that county’s area. This is because the procedural expertise and experience, as well as the responsibility for the electoral register, sits with these councils. This is the approach generally taken in polls run on different geographies to that of the district council including, for example, county council and police and crime commissioner elections.
In addition, the regulations also contain two provisions that apply to both combined authority and combined county authority mayoral elections. First, we have included provision enabling the appointment of a combined authority returning officer, or a combined county authority returning officer, before the respective authority is established. This will help ensure the smooth running of the first mayoral election where the statutory instrument establishing the new authority is made only relatively shortly before the date of the mayoral election provided for in that secondary legislation.
For combined authorities, commencement of this provision is delayed until 1 July 2024. This is because the order to establish the new north-east mayoral combined authority, which we expect to lay before Parliament shortly, includes an area-specific provision for the first mayoral election in May 2024, reflecting the unique circumstances of that authority. This delay in the commencement provision avoids the risk of two alternative sets of provision being in play at the election on 2 May 2024.
Secondly, we have set the figures in the formula for the calculation of candidate spending limits at combined county authority mayoral elections at £3,040 per constituent council and 8p per elector. We have consulted the Electoral Commission on this as statute requires and, on the basis that these figures align with the candidate spending limits for combined authority mayors, the commission recommended this approach. These regulations also establish new spending limits for combined authority mayors by uprating in line with inflation the limits that were set in 2017. To do this, we have used the powers given by Parliament to the Secretary of State to make such upratings in line with inflation, for which no further recommendation is required from the Electoral Commission. Parity is therefore maintained between combined county authority elections and combined authority elections.
Turning to the filling of vacancies regulations, these smaller regulations also extend the scope of existing provision for combined authorities to include combined county authorities. They are necessary to establish the rules by which vacancies are to be declared in the office of a combined county authority mayor and the procedures for filling these vacancies through by-elections. These provisions need to be in place in advance of any combined county authority mayor being elected to ensure that any subsequent vacancy can be appropriately and consistently dealt with.
On consultation, the Government undertook extensive consultation ahead of the 2017 electoral provisions for combined authorities. The regulations before us today replicate the 2017 provisions and apply them to combined county authorities, reflecting the parity between the two types of authority. We have undertaken statutory consultation with the Electoral Commission on the provision in the draft mayoral elections regulations about expense limits for candidates for combined county authority mayoral elections and combined authority elections. The regulations reflect the commission’s recommendation with regard to the setting of the new combined county authority mayoral spending limit.
In addition, we shared informally with the commission a draft of the filling of vacancies regulations. We also engaged with officers of the constituent councils of the East Midlands; I want to say at this time that we are grateful for their input as we have developed the drafts of this legislation.
In conclusion, these draft regulations set out a robust legal framework for the election of combined county authority mayors. They provide the necessary clarity to those tasked with running these elections and ensure that local electors can have confidence in the fair conduct of these elections. I commend both sets of draft regulations to the Committee.
My Lords, I am grateful to the Minister for her introduction to these two SIs. I understand entirely the need for speed on them both. I should declare an interest as an elector in the North East Combined Authority. I listened carefully to what the Minister said about the arrangements for the next few months regarding the processes being put in place. It is appropriate that combined county authorities and mayoral combined authorities have the same regulations as each other; that is the right thing to do. It is also right and appropriate to uprate expenditure limits in line with inflation.
The Minister mentioned voter ID. I suggest to her that more attention be paid to the concerns around that. There has been a consultation with the Electoral Commission, which made clear its concerns about some of the requirements on voter ID that certainly seem to make it more difficult for younger people to vote. More generally, it is our view that the voter ID requirements need urgent reform. The Minister mentioned that voter ID regulations are to be the same for both kinds of authorities. Perhaps the Government should be more proactive about addressing the need for change.
There are some issues behind both these statutory instruments, which result, in part, from the passing of the levelling-up Act. I have grave concerns about the electoral system being used in these elections, first past the post, because the mayoral combined authority model is highly centralist. It does not engage fully with the general public or, indeed, most elected councillors; only council leaders will be engaged. There is an issue of legitimacy for those elected on very low turnouts with a very low share of the poll. It is entirely possible that, in a first past the post system, the person being elected on a 30% to 35% turnout may have only 30% support on first preferences. That is not adequate when the powers of a mayor are so great. I repeat my concern about the legitimacy of the electoral system, given that difficult, complex and challenging decisions will have to be made by the mayoral combined authorities of whatever kind.
The second issue is the role of district councils, which the Minister mentioned when she talked about managing the electoral process. During the passage of the levelling-up Act, we raised the issue of their rights to full membership of combined county authorities. They are the planning authority, not just the manager of the electoral processes. Can the Minister give us any update about whether district councils are now satisfied with the roles the Government are planning? I should say, in passing, that I am a vice-president of the Local Government Association.
I also have a concern, which I raised during the passing of the levelling-up Act, about scrutiny, audit and risk. I take these issues extremely seriously, and I just hope that the Government have ensured that every mayoral combined authority and every combined county authority has adequate risk, audit and scrutiny systems in place, given the huge sums of public money that they will be spending through that very centralised, top-down system.
(10 months, 2 weeks ago)
Lords ChamberI assure my noble friend that we remain committed to continuing our leasehold and commonhold reforms, and the Bill is a major step forward. The Government remain committed to a widespread take-up of commonhold for flats, and we have been reviewing the Law Commission’s recommendations to reinvigorate commonhold as a workable alternative to leasehold, alongside working with the Commonhold Council to consider practical steps to prepare consumers and the markets.
I congratulate the noble Lords, Lord Kennedy and Lord Young, on their persistence in this matter. We took a Question on this on 30 November, replied to by the noble Baroness, Lady Penn, in which she said that
“commonhold provides a potential way forward to move away from leasehold”.—[Official Report, 30/10/2023; col. 1181.]
That we know. She also promised to explain in writing the complications of abolishing leasehold in flats, to which she referred. Can the Minister explain what the delay is in implementing commonhold and what the complications are perceived to be?
(1 year, 4 months ago)
Lords ChamberMy Lords, Amendment 2, in the name of my noble friend Lord Lansley, would require a Minister to withdraw the statement if either House of Parliament resolves not to approve it. The statements of levelling-up missions, the annual report, the revisions to the missions and revisions to the metrics supporting missions will already be laid before both Houses of Parliament. This already provides numerous opportunities for Parliament to scrutinise the activity of the Government on levelling up. Going further in this way could take up significant parliamentary time and giving a veto to Parliament on a statement of government policy, which is fundamentally different from legislation or guidance, would not in our opinion be appropriate. Of course, as my noble friend said in Committee, Parliament can at any time put a Motion for debate on any issue. That is always possible for both Houses to do.
Amendment 6, in the name of the noble Lord, Lord Shipley, would require the Government to publish an assessment of geographical disparity, with reference to defined criteria, alongside the statement of missions. But as set out in the levelling up White Paper, the missions are already supported by a range of clear metrics to assess different aspects of geographical disparities and measure progress in addressing these. These metrics take account of a wide range of inputs, outputs and outcomes and, in the vast majority of cases, they draw upon publicly available datasets. An additional assessment of geographical disparities risks being duplicative.
Further, as with the missions themselves, specifying reporting metrics in legislation would make reporting far too rigid. While disparities exist at regional, local authority, ward and even street level, the appropriate unit of comparison will vary depending on the mission or policy area. Governments must be able to adapt reporting to reflect changing contexts, without cumbersome revisions to primary legislation. The statement of levelling-up missions is intended as a statement of government policy, which will set out those admissions and metrics, while the annual report will report against those metrics. Having requirements to assess disparities according to specific criteria in the statement would pre-empt that annual report.
Amendment 10, in the name of the noble Lord, Lord Foster of Bath, would require the Government to publish a rural-proofing report alongside the first statement of levelling-up missions. The noble Lord is right to highlight the challenges facing rural communities, as are the noble Lords, Lord Curry of Kirkharle and Lord Carrington, but the annual rural-proofing report is the key tool in highlighting this work. The second of those reports, Delivering for Rural England, is out. It sets out further details on the Government’s approach to levelling up rural areas.
In addition, last month the Government published an action plan detailing their ongoing work and future plans to support rural areas. The noble Lord, Lord Foster of Bath, mentioned that, coming out of that, we are providing £378 million in ring-fenced grants for rural areas, to fund energy-efficiency and clean heating upgrades for low-income households living off the gas grid in England. We also announced a £2.5 million fund to boost the supply of new affordable housing to rent or buy in rural areas, by creating a network of new rural housing enablers. As noble Lords said, we are also supporting community ownership of vital rural assets, such as pubs and shops, through the £150 million community ownership fund. These are areas across government where we are supporting the rural economy and rural England, and this will come out of those rural- proofing issues. I will mention more of this in a minute.
Amendment 12, in the name of the noble Baroness, Lady Hayman of Ullock, seeks the publication of a report by an independent advisory body on progress against the levelling-up missions. Through the provisions we seek to put in statute in the Bill, we are committed to enabling Parliament, the public and experts to scrutinise our progress against our missions and in reducing geographic disparities, and to hold the Government to account. Many think tanks and academics are already scrutinising our performance on levelling up. Through my department’s spatial data unit, we are embracing and seeking to build on this engagement, including through work to improve the way in which government collates and reports on spending and outcomes and considers geographical disparities in its policy-making. That is not just in my department but across government.
As noble Lords will know, we also established the independent Levelling Up Advisory Council, chaired by Andy Haldane. The council, which provides very candid advice to Ministers and conducts independent research for the levelling-up agenda, has met nine times already. I am confident that these provisions and commitments will ensure transparency, scrutiny and accountability on the levelling-up missions, and on the way in which geographical disparities are defined, measured and addressed, without adding any unnecessary proliferation of public bodies.
Amendment 14, in the name of my noble friend Lord Holmes of Richmond, would oblige the Government to publish a report that considers establishing a task force to help increase the effective use of robotics and automation and to consider the impact on regional disparities. The Government are hugely committed to reducing barriers to innovation, which is why we committed almost £200 million in funding to manufacturers through the Made Smarter programme, and we are already convening a Robotics Growth Partnership with leaders across academia and industry. The Levelling Up Advisory Council is considering how to improve the uptake of productivity-enhancing technologies. Given the work that is ongoing already, we do not believe that a task force is necessary. Should government find it desirable to establish a task force in the future, I assure my noble friend that it will not be necessary to legislate to establish one.
Amendment 303, in the name of the noble Lord, Lord Foster, would require a rural-proofing report on how
“the measures contained within the Act will address the needs of rural communities”.
As I highlighted, the Government already have extensive rural-proofing mechanisms which ensure that the unique challenges of rural communities are considered in all our policy-making. The Government undertake robust impact assessment processes when introducing any new policy. The Bill is subject to the same scrutiny and therefore has been assessed accordingly to ensure that all communities, including rural ones, are sufficiently considered. Given the existing mechanisms in place, we do not believe it is necessary to impose a further condition on the provisions of the Bill.
I hope that this provides the necessary reassurance for my noble friend Lord Lansley to withdraw his amendment and for the other amendments to not be moved.
Before the Minister sits down, perhaps she might explain a little further about the Levelling Up Advisory Council. I think I heard her say that is has now met nine times. Is the advisory council publishing its papers and the minutes of its meetings? I am led to believe that it has not been doing so. Is that the case and, if so, would it not be better if the papers and minutes of its meetings were published?
Governor-General of the West Midlands—there, my Lords, is a thought. We are now starting to laugh, and I think there is a danger here that the general public will just not understand what all these titles are for. I would immediately say a school governor, a prison governor or the governor of a US state. We can think of various possibilities, but a governor of a combined county? I really do not think that fits with the structure of local and subregional government that we are talking about.
Under Clause 40(2)(c) the title could be “elected leader”. This is very strange, because councils have leaders and those leaders are elected—so I am not clear what the difference is between the “elected leader” of a CCA and the leader of a council. The constituency may be different: that is, it is the whole electorate for the mayor, but for the leader it is the councillors of that council who have to vote to elect that person as the leader of the council as well as leader of the group. This is getting too confusing.
The next thing could well be that if a mayoral CCA is entitled to call its mayor something else, can other combined authorities that have been in existence for a number of years change the title of their mayor? I just do not know why we are going down this road at all. I just say all that to the Minister. There may be something that I have not thought of that she can alleviate my concerns with, but I just wish that this clause and the associated clauses would just go away. It is not something that I want a vote on; I just hope that I will not have to stand up when the statutory instrument comes through for the creation of a CCA and ask why it is that the name has altered to something like a “county commissioner”, which the general public do not comprehend.
My Lords, Amendments 25, 27, 35 and 53, tabled by the noble Baroness, Lady Hayman of Ullock, regard the boundaries and memberships of CCAs and combined authorities. The Bill includes our intended criteria for establishing and changing boundaries of CCAs and CAs in Clauses 44, 46, 62 and 63.
Proposals to change the area of a combined county area are generated locally in line with our principle of locally led devolution. The process to propose a boundary change must include a public consultation being undertaken. The Secretary of State has to assess any such proposals, including the results of the consultation, against a set of statutory tests and will consent to making the requisite secondary legislation only if they are content that the statutory tests are met. The legislation is therefore subject to a triple lock of agreement from the Secretary of State, the consent of the local area and parliamentary approval. I think it is important that we look at that as a triple lock.
Any proposal from the local area has to demonstrate that it will improve the economic, social and environmental well-being of some or all of the people who live and work in the area, suitably reflecting their identities and the interests of local communities, and will deliver effective and convenient local government. As such, the expansion of a CCA or CA cannot be pursued for political advantage. It must benefit the local area.
(1 year, 4 months ago)
Grand CommitteeMy Lords, my name appears on two of the amendments in this group. Underlying the whole group is a major issue: the Treasury now sees business rates as a source of general income to government, but many small businesses see them as a contribution to local services. That has got out of balance.
I strongly support Amendment 36, in the name of the noble Lord, Lord Thurlow, who has just spoken. He talked about the impact of online shopping on small high street outlets and said that there was a public interest case to be made. Indeed, Amendment 29, moved by the noble Baroness, Lady Hayman of Ullock, probes the possibility of reducing the threshold for small business rate relief on high streets. A number of us raised that issue at Second Reading.
A number of issues are raised in this group. I have an amendment on the hospitality sector. It is not clear to me what reason there would be for not having a hospitality sector review, as I propose. It is about assessing the consistency of approach; we have spoken a lot about high streets, but this applies to the hospitality sector as well. There needs to be an assessment of whether there is a consistent approach for setting non-domestic rateable values between hospitality businesses occupying premises of similar size and trading style. I cite public houses, restaurants, live performance theatres and exhibition spaces as examples. This is the kind of thing that government should be doing anyway, but there is a huge policy issue now around what business rates are for and how we make sure that they are being fairly charged.
My Lords, group 6 covers several amendments probing the Government’s support for high street businesses and the wider impact of the Bill. I am grateful for the useful discussions that I have had with noble Lords on what are, undoubtedly, significant issues.
Amendments 30 and 31, from the noble Baroness, Lady Pinnock, and the noble Lord, Lord Shipley, seek a review of the effect of business rates on the retail and hospitality sectors. I recognise that the conditions for businesses in town centres and high streets are concerning for many noble Lords. The Government take these concerns seriously and recognise the impact that increased competition from online businesses, changing consumer behaviour and Covid-19 has had on the fortunes of some high street businesses.
That is why the Government have taken decisive action to ensure that business rates are manageable for ratepayers on the high street. First, 720,000 properties, including many smaller retailers, pay no rates as a result of small business rates relief. Additional support has also been provided for those that do have rates bills: at the Autumn Statement, the Chancellor announced a package of business rates measures worth £13.6 billion. This included a general freeze of the multipliers for all properties, as well as increased support—from 50% to 75% relief—for retail, hospitality and leisure properties, which is worth over £2.1 billion. As we heard, the Government also scrapped downward caps and, as we move to more frequent revaluations through the Bill, we will see a business rates system that better reflects real market values, which was the leading ask of businesses in our review.
I understand that the noble Earl, Lord Lytton, and the noble and learned Lord, Lord Etherton, tabled Amendment 26 to encourage the Government to more actively intervene in how different types of property used in the retail sector are valued. Valuation is, of course, conducted independently by the VOA. All properties subject to business rates are assessed to the same standard of rateable value, which is, broadly speaking, the annual rental value. Properties are valued by reference to the evidence on the level of rents, which is agreed by landlords and tenants for that specific property class. If, at the most recent revaluation, the evidence shows that those open market rental values have increased, rateable values will change with them. Nevertheless, in all cases, the method must result in the common standard of rateable values.
In our review of business rates, the Government sought views on many different ways in which the valuation system could be changed. However, there was strong majority support for retaining the existing basis of rateable value. Therefore, we do not support significant changes to the industry-recognised valuation methodology, as was suggested.
(1 year, 6 months ago)
Lords ChamberMy Lords, I am very grateful to the noble Lord, Lord Young, for reminding us how we got to where we are. He was absolutely right on every single point he made. This is terribly important, and I am very grateful to the noble Baroness, Lady Taylor of Stevenage, for giving us the amendment. If I have one criticism, it is that I am not sure we are yet at a Bill stage. Although it says “draft legislation” in subsection (1) of the proposed new clause—I understand that—I personally favour a royal commission or something that would actually look at the nature of local government and central government powers.
The noble Lord, Lord Young, has rightly identified the difficulty of devolving and at the same time levelling up, which, as he said, requires a greater element of centralised control. I have said several times over the course of this Bill, and before, that you cannot run England out of London; with 56 million people, we are steadily learning that. One of the reasons we are having these constant changes in the Government’s intentions for Bills is that they do not know either what they want to do—so, in the end, the Civil Service carries on and Ministers carry on trying to move forward.
There are elements in the Bill which are very important in assisting us down the road of greater devolution, and they lie in the combined county authorities. The more we have combined county authorities—much though I do not like the centralisation which can result, because they do not have, for example, a Greater London assembly; they do not have a structure such as that to underpin them—the more we will have a move away from Whitehall.
I do not want to say any more about that; I welcome what the noble Baroness, Lady Taylor, has proposed in this amendment. I think we should note what the noble Lord, Lord Young, said about the overall situation that we are in, but I hope that the Government and the Minister will see the importance of trying to bring all this together, because inevitably we are going to come back to this on Report anyway, as we look at the first parts of the Bill that, in Committee, we debated many weeks ago. I welcome the amendment and I hope the Government will see that there would be benefit in moving us forward, not just with structures like the combined counties but actually with real devolution of real things.
My Lords, this amendment, in the name of the noble Baroness, Lady Taylor of Stevenage, seeks to place an obligation on a Minister of the Crown to publish draft legislation for a devolution Bill within 120 days of this Bill receiving Royal Assent. We support the principle behind this amendment—that combined county authorities can request further powers which would enable activity to help drive economic growth and support levelling up.
In fact, we have already gone further than this in the devolution offer set out in the levelling up White Paper. This sets out a clear menu of options for places in England that wish to unlock the benefits of devolution, whether that is moving towards a London-style transport system to connect people to opportunity, improving local skills provision or being able to act more flexibly and innovatively to respond to local need. Any area, including those considering a combined county authority, is welcome to come forward and ask government to confer local authority and public authority functions as part of devolution deal negotiations. The levelling up White Paper has confirmed that the devolution framework is not a minimum offer. These asks are typically made as part of devolution deal negotiations.
We recognise that our existing mayors are already playing a powerful role in driving local economic growth and levelling up. That is why the Government plan to deepen the devolution settlements of the most mature institutions. The White Paper committed to trailblaze deeper devolution deals with the Greater Manchester and West Midlands combined authorities. These agreements were announced on 15 March 2023 and include many areas which will support these regions to drive growth and prosperity, including on skills, transport, housing and net zero, alongside single funding settlements and stronger accountability focused on outcomes.
These deals will act a blueprint for other areas with mature institutions to follow. This will include combined county authorities, once established. Ultimately, our aim is to achieve the local leadership levelling-up mission: that, by 2030, all parts of England that want one will have a devolution deal with powers at or approaching the highest level of devolution and a simplified, long-term funding settlement.
I say to my noble friend Lord Young of Cookham that, actually, devolution is what we want to deliver the local leadership that is required to level up this country. Devolution is part of the levelling up in the Bill, along with many other things to enable the levelling up of the United Kingdom. As such, I hope the noble Baroness agrees that this amendment is unnecessary and feels she can withdraw it.
(1 year, 6 months ago)
Lords ChamberI will just explain the investment of this site to the noble Baroness. It was always going to be a public/private investment. She is right that £246 million of public money has been invested in this site, and this has already secured £2 billion in private sector investment, with the prospect of 2,725 long-term jobs created as a result. To make the site investor-ready cost £482.6 million, already leaving a funding gap of £200 million; that has had to come from the private sector. It has always been the plan to kick-start the land remediation and then divest the site and risk to the private sector, which we are doing. As a result, the JV partnership—the demolition programme—which was due to take up to five years, concluded in less than three years. It is now up to the private developers to develop that site for these jobs, and for this area of our country.
My Lords, I think anyone who read yesterday’s Financial Times full-page article on this matter would welcome a full investigation by the National Audit Office. Since we are almost between Committee and Report on the Levelling-up and Regeneration Bill, there is an opportunity to make changes on Report in terms of audit, insofar as it might impact upon development corporations. Will the Government, through the Minister, agree to ensure that this is thoroughly checked out, to make sure that the processes being followed on Teesside are appropriate and in the public interest?
I do not think I need to repeat it, but the Mayor of Tees Valley has said that he is very happy for an independent review. Whether that is an independent review or the National Audit Office doing a full review, I think he is quite happy. The department is looking into that and will reply to him shortly. I do not think I can add any more. Nobody is stopping a full review if that is necessary, but what is important is that we have millions of pounds of private sector investment in an area that desperately needs it, for jobs and for the people of Teesside. That is levelling up; that is the important bit of this.
(1 year, 6 months ago)
Lords ChamberFirst, I am very grateful for the very lengthy reply the Minister has given us. I listened very carefully to all she said, but could she confirm that the new system, which she referred to as a “long-curve transformation programme”, will actually end up building more affordable homes? That seems to me to be a central requirement of the infrastructure levy. I seek her confirmation that the outcome of all she has just said will be that more affordable homes will be built in this country.
What we have said is that this will deliver no fewer affordable homes. Of course, the number and type of affordable homes that are built will be a local decision. If local authorities want more homes—I suggest that we need more homes in this country—we should be able to deliver more homes.
(1 year, 6 months ago)
Lords ChamberYes, obviously, but it is interesting that, when the research was done on the number of people in this country who had photo ID, it was higher for younger people. It was 98% for the whole of the country, but 99% for young people between 18 and 25. But, yes, we will look at that. I know that the Oyster card has been an issue, but there is a real reason. Oyster cards for younger people have a different process which is not as secure as that for older people’s Oyster cards.
My Lords, mention has been made of a review, and it is critical that it happens correctly. That requires three sets of information. The first is how many people were turned away; the second is the precise reasons for their being turned away, and the third is the time of day that they were turned away, because if it was before, let us say, half an hour before the close of polls, people may have been able to go and get the required documentation in some cases. Will the Government have the correct data on which to form an opinion?
Councils are required by law to record data in polling stations. There are two purposes for that. The first is in the case of any complaints or legal challenges, as we know. That data is on individual electors formally refused a ballot and whether they later returned and voted successfully; it will be sealed and retained in case it is needed. The second set of data will be captured in the short term to help evaluate the voter identification policy. That data will be anonymised and will include both the number of electors turned away and the reasons why, as well as whether they returned and voted later; it will also include data on other aspects of the policy, such as the number of times a voter authority certificate is used. As I have said, that data will be used by both the Government and the Electoral Commission in their evaluations. I do not think that the time of day when those electors came to a polling station will be in the evaluation, but I will certainly get the House an answer on that.
(1 year, 8 months ago)
Lords ChamberMy Lords, my name appears on Amendment 428, together with that of my noble friend Lady Pinnock. I just want to say two things. First, I hope the Minister understands the seriousness of this issue. Proposals for the reform of business rates have been regularly promised in the past, and there is clear evidence that reform is needed.
Secondly, I draw the House’s attention to the announcement this morning, which will be furthered at a conference in Liverpool tomorrow, of the launch of the fiscal devolution report of the Northern Powerhouse Partnership. It makes five key recommendations: first, devolution of reform of the business rates system to all mayoral authorities; secondly, the creation of three new council tax super-bands; thirdly, devolution of stamp duty to local councils; fourthly, devolution of 1p of existing employers’ national insurance contributions for local transport services and infrastructure, as is done in France; fifthly, a tourism tax on hotel stays to support culture, protect the environment and improve visitor experiences.
There will be a debate about that and, as we have heard, consultation will be needed on how to reform business rates. The time has come for this to be taken very seriously and for proposals to be initiated. I hope the Minister can tell the Committee that that is what the Government intend to do.
My Lords, I thank the noble Baroness, Lady Hayman of Ullock, for setting out in Amendment 168B her suggested redistribution of the income raised by the council tax premium from upper-tier councils to district councils. The proposed premium will provide all councils, including district councils, with the opportunity, where they set a premium at the maximum level of 100%, to raise double the revenue from each second home in their area.
Revenue from council tax is essential for a wide range of councils, providing them with funding to make available a range of public services which best fits the needs of the local area. Under this amendment, in an area with two tiers of councils the district council would be able to retain all the income raised by the council tax premiums. This would disturb one of the key components of the council tax system—that local authorities should calculate their council tax charge for local services on the same basis as each other, with equal access to the revenues generated. The long-term empty homes premium has been in place since 2013 and has followed this long-established principle. We trust councils to make their own decisions on where their funding should be spent, and we do not consider it appropriate to engineer the system to direct part of the proceeds of council tax to one particular type of authority in some parts of the country.
Different communities will have their own set of challenges and solutions to second home ownership and empty properties. For instance, this may be through additional funding for transport or education, which falls within the remit of county councils. The current approach provides flexibility for a range of councils and other authorities to generate additional income, which can be used as they see fit. If a council feels that funding should be put towards a particular goal such as housing, this should be discussed with the other authorities in the usual way.
A change in the distribution method for the council tax premiums would also create an imbalance between two-tier areas and areas covered by unitary authorities. For example, in a single-tier area with a high number of second homes, such as Cornwall, the council would be required to share the proceeds of the premiums with the other precepting authorities, such as the PCC or the fire and rescue service. However, in a two-tier area with a high number of second homes, such as Norfolk, the amendment would mean that all additional income was retained by the district council. Notwithstanding the second part of the noble Baroness’s amendment, there would be no obligation to enable precepting authorities to benefit from the increased income. This may be advantageous to the district but would prevent the income being spent on services provided by other authorities in the area that can benefit the local community, such as road maintenance and better care for the elderly.
I turn to Amendment 169, in the name of the noble Baroness, Lady Hayman. We discussed earlier in Committee that the purpose of Clause 76 is to provide councils with an opportunity to apply a council tax premium on second homes. As with all properties, second homes may be in a variety of different conditions. For the purposes of Clause 76, however, a second home would be caught by the provision only if the property was substantially furnished. Indeed, this is an important factor in differentiating such properties from those that might be impacted by the long-term empty homes premium, as set out in Clause 75. Where such properties are substantially furnished, I would not envisage that they are likely to be in a condition to require significant work as a result of dilapidation. Therefore, the premium council tax on a second home applies only where it is furnished. However, in specific circumstances the local authority has tax relief powers as well.
Notwithstanding that potential distinction, I can reassure the noble Baroness that the clause already makes provision for the Secretary of State to make regulations that exempt certain classes of property from the effects of the second homes premium. Similar powers are already in place for the long-term empty homes premium. Obviously, before making any regulations the Government would wish to consult on any exemptions and to provide everyone with the opportunity to say what should—and, perhaps, what should not—be exempt from the effect of the premium.
The noble Baroness’s amendment also proposes a right of appeal against the imposition of a second homes premium. I can reassure her that, under Section 16(1) of the Local Government Finance Act 1992, council tax payers already have the right of appeal against any calculation of amounts they are liable to pay, including any premiums.
Finally, Amendments 428 and 474 were tabled by the noble Baroness, Lady Pinnock, and the noble and learned Lord, Lord Etherton. The Government are of course aware of the pressures facing businesses, including those on the high street, and have acted to support businesses up and down the country. As noble Lords are no doubt aware, the Government have only recently concluded a comprehensive review of the business rates system. A final report on the review was published at the Autumn Budget 2021, alongside a package of reforms worth £7 billion over five years. The review recognised the importance of the system in raising funds for critical local services in England, worth around £22.5 billion in 2022-23, and concluded that there was no consensus on an alternative model that would be of sufficient scale to replace business rates.
At the Autumn Statement 2022, the Government went even further and announced a range of business rates measures worth an estimated additional £13.6 billion over the next five years. As part of that package the Government announced that the tax rate will be frozen for a further year. This is a real-terms cut to the tax rate, worth around £9.3 billion over five years.
In addition, the retail, hospitality and leisure relief will be extended for a further year and made more generous. In 2023-24, it will provide eligible businesses with 75% off their bills, up to a maximum of £110,000 per business. This is worth an estimated £2.1 billion to ratepayers, many of which are on our high streets.
Furthermore, in response to the concerns of businesses in England, the Government will, for the first time and subject to legislation, introduce a transitional relief scheme for the 2023 revaluation. This will be funded by the Government and is expected to save businesses £1.6 billion. This will mean that the 300,000 ratepayers—
(1 year, 8 months ago)
Lords ChamberAll the powers will go. There will not be half a PCC left. Does that make sense?
Amendment 119, tabled by the noble Baroness, Lady Taylor of Stevenage, seeks to allow the person appointed as statutory deputy mayor of the combined county authority to also be appointed as the deputy mayor for policing and crime. Schedule 3 prevents this because the deputy mayor and deputy mayor for policing and crime are two distinct, separate, and weighty roles. The role of the statutory deputy mayor is to step in and act as mayor should the mayor be unable to act or if the office of mayor is vacant for a time, as well as assisting across a whole range of general mayoral functions where applicable.
The deputy mayor of a combined authority is typically also a council leader, and we anticipate this will likely also be the case in combined county authorities. This would mean that this person is already accountable for the decisions and activities of the council they lead, in addition to their combined county authority responsibilities, where they will be accountable collectively, and possibly personally, for some of the CCA decisions, including personally for the mayor’s functions if the mayor cannot act. The role of the deputy mayor for policing and crime is to dedicate constant focus and attention to crime and policing and is usually a full-time role. Clearly, both the roles of deputy mayor and deputy mayor for policing and crime are significant and we believe that they should remain separate and distinct.
Amendment 124, tabled by the noble Lord, Lord Shipley, seeks to allow CCA mayors to be called by their choice of alternative title. Clauses 40 and 41 already enable mayoral combined county authorities to resolve or choose to use an alternative title to “mayor” for their directly elected mayor. They can choose from a shortlist of titles listed in the Bill, or a different title not on the list, having regard to other titles used in the area. I understand where the noble Lord is coming from regarding the fact that the title “mayor” is beginning to take on some level of credence within the country, but if you come from a particularly rural county area—I counted last night that where I was leader of a council, we already had 16 mayors—an elected mayor would be confusing for some people. The role of a mayor in some rural areas is seen as a civic role, rather than a leadership role, which is very different.
I say to the Minister that the problem applies in urban areas too; it is not specifically a rural issue. If you look at Merseyside and Liverpool, you will see a mayor, a ceremonial mayor and a combined authority mayor—you have three already. The public work with that, but what I am challenging is whether people being able to choose their own title for their area will not be more confusing, because if you use the word “governor” or a variation on that theme, the question then arises: “What are those powers?”. People at least have some idea what a combined authority mayor is actually about.
These decisions, as with many, have to be taken locally because local people will understand better than anybody what is right for their area. I have given the Committee my personal views from when we were considering mayors—I just thought it would be confusing.
(1 year, 9 months ago)
Lords ChamberI do not know whether it has any views on it at the moment, but I will ask that question.
Alongside this, my department has also established a new deep-dive team, to take a new place-based approach to policy-making. This is quite important. This team gets to know specific places. To date, these places have included Blackpool and Grimsby. It combines the granular data that we are beginning to put together with local knowledge, to identify a set of policy interventions to make a noticeable difference to the people living there.
The noble Baronesses, Lady Taylor of Stevenage and Lady Young of Old Scone, brought up individuals. We go down to council wards, but there are people. We are talking about people. The levelling-up White Paper is a plan for everyone. The focus is on the left-behind places, but the ultimate goal of levelling-up policies is to improve the living standards and quality of life of the people living in those places. This means that where individuals with certain protected characteristics are disproportionately affected, they will benefit from the whole levelling-up programme policies and systems change. For example, some ethnic minority groups have, on average, poorer health outcomes. They are more likely to be living in non-decent homes. By aiming to reduce these disparities across the UK and in places where they are most stark, levelling up will have a positive impact on the places and, as importantly, on the people.
There were a number of questions or comments on the levelling-up fund, which I would suggest are probably for the sixth group of amendments. However, I will answer a couple of them; they were all more or less the same views. The levelling-up fund index identifies those places in greatest need, as we have heard, of this type of investment. In this round 2, 66% of funding has gone to category 1. Those are the places of greatest need. Over rounds 1 and 2, 69% of funding has gone to category 1. I can also say that in investment per head of population, the highest investment went to Wales, followed by the north-west and then the north-east. The money is going to the right places but that is just as an aside because this will come up again in group six.
This approach, set out in the Bill, sets a clear, uncluttered and long-lasting framework for measuring the progress of levelling-up missions. I hope that this provides the noble Lord sufficient assurance to withdraw his amendment.
My Lords, I am very grateful for the Minister’s response, but the more I learn, the more worried I get. I have learned tonight that the independent assessors have met several times. I have not seen any public report about what they are doing. Parliament has a role in this. It is reasonable in the context of this Bill proceeding that more information is provided to us.
We have learned that we have a spatial data unit in the department, and that we have a deep-dive team, but what this team is doing is ill defined. I have said several times in this Chamber that you cannot run England, with its 56 million people, out of London. It is simply too much. Therefore, the question will be: what exactly is the spatial data unit doing and what exactly is the deep-dive team doing? To whom are those bodies speaking at a local level so that they are properly informed?
I was encouraged that the Minister did talk about councils and council wards. I was aiming at postcode areas, and the noble Baroness, Lady Hayman of Ullock, was aiming at councils and council wards, so at least we have some progress. There is an offer of a teach-in. A seminar, at the very least, has become fundamental. As the noble Lord, Lord Stevens, said, how about the Government starting by publishing the gaps in social care? I had not realised that those gaps have not been published, even though they are available.
There is a fundamental set of issues here about the public’s right to know. If this is a Bill which is levelling up, surely the metrics of that must be discussed by us before it gets very much further. So I repeat my suggestion that the Minister takes all the missions and metrics away, takes account of everything that noble Lords have said in this Chamber in the two days in Committee so far, and rewrites the missions and the metrics so that we can produce the outcomes that a levelling-up Bill should be producing. Having said that, I will come back to this on Report.
On the deep-dive teams, of course they are working with local people. I have said that this combines the granular data that we have with local knowledge, and works with local organisations, local councils and other organisations in areas to identify those interventions. Surely this is what your Lordships would want a good Government to do.
I would be very happy with that, but I did not know about, and I think that no one else in this Chamber was aware of, the deep-dive team. That raises another set of questions. Perhaps the Minister can write to us about this, explaining exactly what this deep-dive team is doing and where it is working. I have a fear that we are going to see the regional directors for levelling up appointed at some point. There has been mention of having regional directors. Can you imagine in a country of 56 million people having regional directors for levelling up? It is an absurdity as a concept. I hope that the Minister is willing to tell us that this will not be actioned. That was reported in the i newspaper about 10 days ago. However, somebody has decided where the deep dives are taking place. It may well be that all kinds of bodies are being talked to, but this information needs to be more publicly shared. With that, I beg leave to withdraw my amendment.
(1 year, 10 months ago)
Lords ChamberMy Lords, there are also some councils doing extremely well in keeping services running. We continue to monitor the sector’s finances and stand ready to speak to any council and support it if it has concerns about its ability to manage its finances or faces pressures that it has not planned for. We are working with local authorities to do that so that they do not get to the point of an S114.
My Lords, the Government are committed to introducing new and reformed rules to streamline and simplify the procurement process. That is to add to the levelling-up Bill that will come to Parliament in the near future. This will help to deliver that level playing field for all businesses across this country to supply public services.
My Lords, the Minister referred to a simpler procurement system and that would be welcome. The Government have recently introduced the concept of the most advantageous tender and have changed the term for that from the “most economically advantageous tender”. This phrase appears in the levelling-up White Paper. Does this mean that value in levelling up can in future be as important a procurement test as value for money? I hope it does.
Yes, my Lords, it does. That is one of the things that we are changing. It is important that the principle of public good, which is set out in that White Paper, will become an objective of maximising the public benefit to support wider considerations of social value and other benefits. As part of a requirement on contracting authorities to have regard to the national procurement policy statement, they have to consider the national priority outcomes of their procurement, including social value, which will cement this.