Growth and Infrastructure Bill
Debate between Lyn Brown and Robert Neill
Robert Neill
As a former sous-chef in the Department, I have no doubt that if my right hon. Friend the Secretary of State says he wishes to achieve a workable and viable compromise, he means it. I trust him and believe him because I know him, and I hope all my hon. Friends think the same.
Very little weight can be attached to the Opposition’s cynical approach. Having spent nearly two and a half years as a ministerial sous-chef stripping away the centralised control that the Labour party placed upon planners in this country and the constraints it placed on local authorities, I think that it ill behoves Labour Members to talk the language of localism.
Robert Neill
I will make some progress before giving way.
It is well known that throughout the history of planning legislation in this country there has been a concept of permitted development. That is not new; it goes back to 1947. It has always been accepted that it is legitimate, for reasons of public policy, from time to time to adjust the criteria that determine what constitutes permitted development, and that has always been done at national level. The difficulty with the Lords amendment is that it would allow a complete opting-out of any adjustment to national policy at a local level, and that seems to me to be nothing other than a needlessly blunt instrument. However, I accept that there is an issue about the operation of article 4 in practice. I know that from my own dealings with local authorities and from my own experience as both a Minister and a councillor.
Lyn Brown
The hon. Gentleman is very kind. I was going to ask him whether he thought that the policy was consistent with the Government’s localism agenda. I think he would agree with me that it is not. Does he agree with me that Newham council has an issue with developments on back gardens that are used as dwellings but are uninhabitable, unsanitary and completely against cohesive communities?
Robert Neill
There is a real issue in Newham and other parts of the country about developments in back gardens. When I was in the Department, it was my right hon. Friend the Member for Welwyn Hatfield (Grant Shapps), then the Housing Minister, who did more to tackle the issue than any Minister before him, and that is now being carried on by my hon. Friend the Member for Grantham and Stamford (Nick Boles). This Government are helping to deal with the issue the hon. Lady raises on behalf of her constituents.
I accept that my right hon. Friend the Secretary of State, with his experience of the matter, understands that we need to find an article 4 system that actually works, rather than the well-intentioned but draconian outcome proposed by their lordships. Rightly or wrongly, concerns have been raised about how article 4 actually operates on the ground. That relates in part to the point my hon. Friend the Member for Birmingham, Yardley (John Hemming) made about a degree of risk averseness among local government officers in recommending them to their members.
Local Government Finance Bill
Debate between Lyn Brown and Robert Neill(12 years, 6 months ago)
Commons ChamberRead Full debate Read Hansard Text
Robert Neill
It is a pleasure to be back here under your chairmanship, Mr Hoyle, dealing with the next part of the Bill. The amendments make changes to paragraphs 12 and 15 of the schedule and some consequential changes to schedule 3. To make sense of how they operate, it is sensible to look at the scheme of how part 5 works as a whole, which I shall do as briefly as I can.
In earlier debates on the Bill, the Government have made it clear that we have always accepted there would be a need for some redistribution of business rates from resource-rich to resource-poor authorities. We intend that the redistribution should be done by way of tariffs and top-ups, which have been mentioned in earlier debates. Those will be set at a level that ensures that no authority will be worse off on day one of the scheme than they would have been under formula grant. That is a principle that we have already established. So tariffs and top-ups will be set on day one so that no authority will be worse off. Thereafter, the intention is that tariffs and top-ups will be index-linked to the retail prices index so that the value of protection provided to top-up authorities is maintained in real terms. Under paragraph 10, the basis on which tariffs and top-ups will be calculated will be set out each year in the local government finance report, which the Secretary of State must lay before the House, and will thus be subject to the same scrutiny as the report.
Once the local government finance report is approved by the House—the normal procedure—paragraph 11 requires the Secretary of State to make the necessary calculation of the tariffs and top-ups to be paid, or received by each authority, on the basis approved in the report. After the calculations have been notified to the authorities, paragraph 12 requires them and the Secretary of State to make payments in line with them.
Part 5 of the schedule also provides, purely on a precautionary basis, that the Secretary of State may at any time up to 12 months after the year to which the local government finance report relates make a further set of calculations, but with the proviso that they are made on the same basis as set out in the report. That will make sure that in the unlikely event that we later discover a mistake in the original calculations we can put it right.
Lyn Brown (West Ham) (Lab)
I am listening to the hon. Gentleman with interest. Is it not true that as a result of the financial calculations that will be made under the Bill, the 10% most deprived areas will lose four times as much as the 10% best-off areas?
Robert Neill
I do not accept the hon. Lady’s proposition. The whole point is that we are not dealing with the individual circumstances of authorities; that will be done in the report. The provisions set out the methodology. That is the important thing. It is worth bearing in mind that under the existing formula grant arrangements, there is provision that in exceptional circumstances the Secretary of State can make an amending report. In effect, these provisions mirror the position for dealing with the situation now; we are operating with a baseline and top-ups and tariffs, with the protection that they are uprated in line with inflation.
Paragraph 13 makes further provision to allow us to put right a mistake in the basis for calculation set out in the original report, but it is important to stress that if we did so we would again need to seek the approval of the House of Commons. The principle exists in the current system, although it has not had to be used; it is a fail-safe arrangement.