Levelling-up and Regeneration Bill (Twelfth sitting)

Rachael Maskell Excerpts

Committee stage
Tuesday 12th July 2022 Public Bill Committees

[Mr Jones]

First, I thank the hon. Member for Nottingham North for his very kind welcome. I look forward to working with him and his fellow shadow Minister, the hon. Member for Greenwich and Woolwich, in a good spirit. I suspect that we may not agree on everything as the Bill goes through the House, but I am confident that we will work together with a good spirit, both in Committee and outside.

In response to a couple of the points that have been made, I know that the impact assessment has been a concern. It will be provided shortly, and I would certainly expect that to be the case before the conclusion of the Committee’s proceedings. I hope that we will provide it as soon as we can.

On Wales, we have already given councils the power to apply a 300% premium to properties that have been empty for more than 10 years. That is part of our stepped approach to increasing the level of premium the longer the property remains empty. What we propose strikes the right balance between providing an incentive to bring empty properties back into use while recognising more challenging cases in which owners are taking action to have property suitable for accommodation within that time frame.

I thank the hon. Member for Westmorland and Lonsdale for his kind welcome. I do not disagree with his point about the challenges in many areas, especially those that have a strong tourist economy. I am sure that we will debate those challenges when we come to the next set of amendments. It is good to hear his comments, and that the ministerial team are thinking about that issue.

Question put and agreed to.

Clause 72 accordingly ordered to stand part of the Bill.

Clause 73

Dwellings occupied periodically: England

[Rachael Maskell (York Central) (Lab/Co-op)]

I beg to move amendment 79, in clause 73, page 81, line 30, after “dwelling” insert

“for six months or longer per year”.

This amendment seeks to further define how long a property must be empty for to be described as occupied periodically.

[The Chair]

With this it will be convenient to discuss amendment 80, in clause 73, page 81, line 31, at end insert—

“(c) the occupier declares the dwelling is not their principal residence and there is no tenant in the property for 6 months or longer per year.”

This amendment seeks to provide further definition around the conditions around occupancy.

[Rachael Maskell]

It is a pleasure to see you in the Chair this morning, Mr Hollobone. I welcome the Ministers to their places and wish them well during the consideration of the Bill. We have had a cordial debate so far, but they will hear much about York’s housing crisis, which is a prism through which to look at the Bill as well as an important case study to help the Government understand the real challenges we face.

The amendments highlight that some properties are occupied on a part-time basis only. They are let as short-term holiday lets from time to time, perhaps not consistently, or may be empty for periods and utilised some of the time. We all recognise from our constituencies that some properties have different patterns of occupation, so that they are not always empty, but are not fully occupied either. The challenge is that that can remove opportunities for people who desperately need a home.

The amendments seek to define a period of vacancy and reduce it from a year to six months. It is reasonable to expect a property owner to visit the property every six months. A longer period would raise questions of whether they in fact reside there. I am aware of circumstances in which people have families overseas, for instance, and may make extended visits to see them. I would not want to penalise people because their life journey and responsibilities differ from mine, but if they do not visit a property for six months we can conclude, under the definitions in the clause, that it is an empty dwelling.

This is an important issue, because empty homes, especially during a period of inclement weather, can impact on neighbouring properties. Gardens can become unwieldy and overgrown in less than six months, which can impact on the morale of the neighbourhood and on house prices. I can point to many such examples in my constituency. In fact, a resident called me into her garden in Tang Hall on Sunday and showed me the consequences of a home being neglected for a period of around six months. The brambles were about 6 feet high and encroaching on her garden space. These things really matter to neighbourhoods. Neglected properties can also spread damp to each other, which is another concern for neighbours.

Neglected properties should attract an uplift in council tax. Having clearer and shorter parameters by which councils have permission to operate an increase in council tax enables councils to make better decisions, as well as generating revenue for the council. I would therefore like to focus on my amendments in order to achieve that. I have further amendments that I will dwell on shortly, but the reason that this amendment is so important for communities such as mine is that we are increasingly seeing properties being developed not for occupation, but for asset. We will return to that theme on numerous occasions throughout the debate.

We can see around us the new developments in London. We are also increasingly seeing that situation in York, where there may be one or two occupancies in luxury apartment buildings, but nobody has ever moved into many of the units. They are literally just investments for people in the UK or overseas. Residents in my city who are desperate to get on the property ladder and have a home know that there are dormant units within their community, and they are significantly concerned about the implications.

I will talk further about this issue, but I am putting the Minister on alert about the York Central site, which he will certainly get to know over the coming days. We have a 45-hectare brownfield site—the biggest brownfield site in Europe—yet our council sees the development of luxury apartments that no one will live in as its priority, as opposed to the site being used for homes for local people, and for economic space, which would be the best use for it. Indeed, Homes England has identified that the whole area could well turn into Airbnbs. We know that York already has around 2,000, so this is a serious encroachment on future housing use. Therefore, we do not want to see lip service paid to these measures; we want to ensure that we have the right measures in statute to protect our community and give them the opportunity to have a home.

[Alex Norris]

Clause 73 has much in common with clause 72 and, again, we are minded to support it when we get to the stand part debate. I congratulate my hon. Friend the Member for York Central on her efforts to improve the clause, which amendments 79 and 80 certainly would do.

Clause 73 deals with the second home premium. In the light of the housing crisis, as discussed in the previous stand part debate, it is right that we seek to deal with this issue. It is a serious gap in the legislation that billing authorities can currently levy the empty homes premium only on homes that are unoccupied and substantially unfurnished, which could leave out a significant number of dwellings as well as leaving the edge cases to be defined via case law, rather than in statute. It obviously leaves a big gap where there is no permanent occupant but the property is furnished and habitable, allowing the skirting of the empty homes premium in its entirety.

It is right that we seek a second homes premium—as I say, we will support the Government in that venture—but it is also right to try to tighten up the measure on the face of the Bill, as my hon. Friend has sought to do, by drawing a line in the sand at six months’ occupation of the property. This is about seeking a balance between the individual and the broader society, which is always—certainly at its edges—a hard thing to do and to define, because it is right that people are allowed the peaceful enjoyment of their property in the way they see fit. As my hon. Friend said, it is right that we understand that people have different lives, and we in this room know that as well as anybody else. We genuinely spend our week split between two different places, and a one-size-fits-all approach will not work.

As my hon. Friend said, we also have to understand the impact that properties that are long-term vacant and only notionally lived in can have on a community, including the detrimental effect of overgrown places on amenity, problems caused by burst pipes, and antisocial behaviour targeting empty houses. Those effects are frustrating for communities. When we set that problem against the fact that people are crying out for properties, it is clear that a balance must be struck. We are glad that the Government have started to address the problem, but my hon. Friend’s amendments would improve the Bill, and I hope that the Minister will accept them.

--- Later in debate ---

[Mr Jones]

I thank the hon. Member for York Central for her kind welcome to the Committee. It sounds as though I am likely to hear a great deal about York Central—somewhere I am not a stranger to, having been there to present a high streets award to Bishy Road some years ago, in the dim and distant past when I was last a Minister in this Department.

The Government’s proposal for a second homes premium makes clear the situations in which a council may quite properly apply a premium. Those situations are, first, that a property is substantially furnished—distinguishing it from empty property dwellings that may more properly be subject to the empty homes premium—and secondly, that there must be no resident of the property. For the purposes of council tax, a resident is someone who has their sole or main residence in the dwelling. In that case, the resident would pay the council tax normally due on that dwelling as essentially it would be their main home. They would not be subject to a premium as it is their sole or main residence.

Owners of second homes may well occupy those properties during the course of the year, and how much use they make of them will vary depending on circumstances. It may be that the hon. Member’s amendment is to enable the premium to be applied only when the homeowner does not use the property for more than six months a year. If that is the case, it might be helpful to set out how councils already determine what is and is not a second home.

Councils already make judgments as to whether an individual’s property is their sole or main residence and, by default, what might be a second home. That is because they want to be satisfied that any discounts or exemptions are applied correctly and to the right property. In making a judgment on whether a property is a sole or main residence, councils will reflect on legislation and case law and take into account a range of factors including where the person is registered with a doctor, where they are registered to vote and the occupancy of the property.

Given those established processes for assessing what is a second home, I do not believe that a further restriction on the definition of properties that may be subject to a premium is needed. In addition, the assessment of whether a property is a second home will take into account a number of factors and not just the period of occupation. A reference to the number of days may well preclude treatment of the property as a second home when other factors suggest that, in effect, it is being used as a second home. The amendment could result in a reduction in the number of second homes liable for the premium.

Amendment 80 would mean that, where the property has a tenant for more than six months, the premium would not apply. Council tax is usually paid by the occupants of the property and, in cases where a tenant is occupying the property as their sole or main residence, the tenant would be liable for that council tax, not the property owner. Therefore, no premium would be due.

The premium is not aimed at properties that are let out to a tenant as they will be somebody’s sole or main residence. It is right that a second homes premium should not apply to such properties. With those clarifications, I hope the hon. Member will agree to withdraw her amendment.

[Rachael Maskell]

I appreciate the considerations given in this debate, and I am sure that the Minister, knowing Bishy Road, will look forward to getting to know other parts of York. He made an interesting point about the definition of a second home. Later we will look at some of those issues, which our constituents are rightly asking about, because when people do not have homes, they ask a lot of questions about housing. Questions are being asked in particular about unoccupied dwellings, which we are considering here.

The shadow Minister, my hon. Friend the Member for Nottingham North, was right to highlight the fact that many empty dwellings can be targets for antisocial behaviour. In drawing out that important point, he also set out the reason to focus on that and disincentivise it. Empty dwelling management orders can be used effectively. Newham Council is probably the local authority that has used them to best effect, by taking properties and turning them into social housing. However, the legislation is clunky and the processes are slow. I would welcome it if we looked at how to use that legislation. In the light of this debate and those to come, I beg to ask leave to withdraw the amendment. I am sure that we will return to this issue.

Amendment, by leave, withdrawn.

[Rachael Maskell]

I beg to move amendment 82, in clause 73, page 82, line 14, at end insert—

“(10) The Secretary of State must by regulations make provision for and about offences punishable by a fine for people who submit misleading, inaccurate or incomplete information to a billing authority in relation to the occupancy of their dwelling.”

This amendment would provide for fines to be issued to those who fail to provide correct and accurate information regarding the occupancy of their dwellings as an anti-fraud measure.

I will be brief in my comments about this amendment because I think it speaks for itself. My amendment is not particularly about local authorities being vexatious in proposing to use levers to ensure that properties are properly recorded—I am sure that many owners will find it hard to distinguish whether properties are second homes, an empty dwelling and so on. Clarity is needed, and registering properties for the purposes of paying the right level of council tax will benefit the whole community, because the more revenue councils have, the more they can do.

This simple amendment would provide local authorities with an additional lever to incentivise people to declare their property in the right category, to ensure that they are not misleading the authority, and that the information is accurate and complete. It would make the billing authority’s life easier and enable it to recover not only the expected costs, but the additional costs if the information had previously been wrong. The amendment is about local authorities recovering additional revenue, rather than making additional expenditure, as well as acting as a lever for people to correctly register their property.

[Alex Norris]

As we can tell from the discussions so far about clauses 72 and 73, legislating in this space gets fiddly. Previously, it has been easy to skirt the empty homes premium by having a “substantially furnished” residence, and what constituted “substantially” was left to the courts. It is good that we are seeking to tighten things in this space.

In making the case for proposed new section 11C(2)(b) of the Local Government Finance Act 1992, the Minister gave a helpful explanation of how it will address that challenge, which is a really good thing. I am more worried about proposed new subsection (2)(a) and the concept of “no resident”. Again, the Minister entered into this space with some of the tools that local authorities will be able to use. I am not sure about data registration; if people were minded to try to skirt these regulations, that test would likely be easy to pass without breaking any laws. He mentioned access to healthcare, which would be a better tool. Will he expand on some of the other ways in which local authorities would be expected to establish when a home is genuinely a second home? My fear is that by closing one loophole we may create another one, particularly one that is undefined in statute, as the Minister did not accept the opportunity provided by amendments 79 and 80 to give a clearer definition.

Legal action is unlikely to be a good risk-reward proposition for local authorities. In general, the clause as constituted offers them a chance to basically double council tax on those properties, which would be in the order of £1,000 to £2,000 a year on a normal property. That is not a great incentive for local authorities to chase.

As my hon. Friend the Member for York Central said, the amendment’s importance is not about vexatious regimes or councils being overbearing and entering this space too much. Similarly, the amendment would not require individuals or families to take expensive advice in order to comply with the regulations and know whether they ought to be paying a long-term or second home premium, or neither. The arrangements should be fair and candid, and should be sufficient to guide them to pay—or not pay—in the way that they ought to.

The amendment would provide a second disbenefit to those who might seek to work around the legislation. At the moment, if it is a risk-reward proposition for an individual, then perhaps that amount of money is worth a bit more to them, set against the fact that local authorities might not be minded to pursue them. There must be clarity on the face of the Bill, and in the follow-up regulations, that this is a serious matter, as the amendment specifies, and that the Government look dimly on those who seek to circumvent and evade the regulations by not making a fair and candid assessment. It must be made clear that that is a bad thing, that it is looked upon dimly, and that there is a proper punishment regime that lies alongside that, to provide an extra disincentive to those who seek to work around the rules.

--- Later in debate ---

[Mr Jones]

I thank the hon. Member for York Central for the thought that has gone in to her amendment. I am sure we all agree about the importance of ensuring that people play by the rules and provide accurate information to allow councils to issue the correct council tax bills, and also that when people do not do the right thing, councils can take the appropriate steps.

The proposed amendments would require the Secretary of State to make regulations to create new offences, punishable by a fine, in relation to the submission of occupancy information. I completely understand the objectives of such a measure. However, I assure the hon. Member that existing powers already enable councils to take appropriate action where there is evidence that the individual has taken steps to avoid payment of the premium. The Local Government Finance Act 1992 already provides powers for councils to issue penalties to a person who fails to provide information requested to identify who is liable for council tax on a dwelling, or knowingly supplies information that is inaccurate. In addition, where false representation is made dishonestly for gain, the Fraud Act 2006 may well apply.

I share the hon. Member’s concerns about ensuring that evidence of wrongdoing is tackled and that councils have appropriate powers, and I have described those that already exist. However, if we do become aware of evidence of an underlying problem that cannot be covered by the powers that I have set out, the Secretary of State does have powers to make regulations to create powers for councils to require information and to create offences for a failure to provide information or for providing false information. We have already used those powers in connection with information for local council tax support schemes. We would be able to use them again if evidence were provided that the application of the premium was being frustrated by misinformation that could not be tackled by the existing powers. I trust that, with the assurances that I have described, the hon. Member for York Central will withdraw her amendment.

[Rachael Maskell]

I am grateful to the Minister for setting out the measures that are already available to local authorities, in particular under the Local Government Finance Act 1992 and the Fraud Act 2006, and the opportunity to exercise those powers in relation to this set of circumstances. The advice to all people seeking to register their property is to ask for advice from the local authority to ensure that their property is within the right council tax band, and there would then be no need for such measures.

However, the hon. Member for Westmorland and Lonsdale is absolutely right when he talks about loopholes: I have no doubt that individuals will be examining the Bill for such loopholes to exploit. Our responsibility is to close loopholes as we debate the legislation, because we do not want to be back discussing the same measures, when we had the opportunity to bring about change. However, I am satisfied with what the Minister has set out today, so I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

[Rachael Maskell]

I beg to move amendment 83, in clause 73, page 82, line 28, at end insert—

“(3A) The Secretary of State must by regulations make provision to ensure that that, where a dwelling is occupied periodically as the result of a bereavement, higher council tax is not charged for at least two years.”

This amendment would extend the period of time people would have to make arrangements for their property following a bereavement.

[The Chair]

With this it will be convenient to discuss amendment 84, in clause 73, page 82, line 28, at end insert—

“(3A) The Secretary of State must by regulations make provision—

(a) to ensure that that, where a dwelling is occupied periodically as the result of dilapidation, the higher rate of council tax is not charged for at least one year from the change in ownership of the property, and

(b) about appeals against determinations under this section.”

This amendment would give owners of dilapidated properties up to a year after acquiring the property to refurbish before additional council tax rates are incurred.

[Rachael Maskell]

These would be important amendments to the legislation. We have talked about the categorisation of dwellings and whether they are occupied, but we are all aware of circumstances in our constituencies where people are not occupying a dwelling. Amendment 83 in particular is one of compassion, to recognise that if individuals have had a bereavement—typically, that would be of parents, but it might be a child or another relative—part of their grieving process is clearing the house and seeking how best to honour the deceased in the disposal of goods and in ensuring that the disposal of the property itself is in good order and respectful. It can take time for people to go through the memories and the grieving process, especially if they live some distance away or have a job. It can be challenging.

I am sure that we can relate to such circumstances. Therefore, allowing time for that to be gone through—I suggest a period of two years—enables the process to be done with dignity, as opposed to what we often see with people who have to clear out social housing. Literally, I have had cases of notices dropping through the door before the deceased has even been buried. I have had that fight locally about ensuring that we respect the dignity of the family and their needs.

The amendment would build compassion into the clause, being generous in the time that it gives people before recognising that a house is no longer occupied. In particular during covid, it has been challenging for people to empty properties so that they can put them on the market and sell them. There can be extenuating circumstances in which the measure may apply.

Moving on to amendment 84, I recognise that bringing old, dilapidated buildings back into use can benefit the whole community and individuals. Taking time to do that is important, to get it right. I grew up on a building site, with a DIY father. I think the whole of my upbringing was on a building site—it takes time to do up an old property or extend it. I lived on a building site, though many people move out. I am talking about people moving in order to focus on getting a roof on a house, putting in walls or doing essential renovation to bring the property into good use. Therefore, the amendment recognises that there are circumstances when dwellings will be unoccupied and unfurnished for work to be done. It encourages people to bring properties back into use, without having to pay higher rates of council tax.

I trust the Minister will understand the sentiment behind both amendments, and will recognise that they are sensible ways of dealing with some practical and sensitive issues that, if they are not dealt with in Committee or later in the passage of the Bill, will be raised by residents with their local authorities.

[Alex Norris]

I congratulate my hon. Friend on these amendments. There is a certain amount of prescience to them, given when they were tabled. When we debated clause 72, the previous Minister, the hon. Member for Harborough, raised a concern that some of my amendments would inadvertently sweep up families that were suffering bereavement, and these amendments are a prescient way of avoiding that.

For all the reasons my hon. Friend the Member for York Central set out, we recognise that sorting estates, untangling and consolidating finances, applying for probate, and even selling a property, can be a long and arduous process that is set against and alongside the grief that families feel when they lose someone. That makes it really hard, and then, as my hon. Friend said, we have to factor in distance and work responsibilities, and I would add caring responsibilities, so it is right that we build as much compassion and understanding into the system as possible. It feels like the two years is a good way of doing that. I note that it is an “at least” period, so there could be plenty of room for understanding from the local authority if, say, at the end of two years, the property had not been sold yet, or was sold subject to contract—certainly if there is a chain, it can take a long time. There is plenty of room in the amendment to ensure that families that have suffered are not caught up in ways that are unfair, unkind and not how the Bill is designed.

On amendment 84, last Tuesday the then Minister raised a similar concern about dilapidated properties that are being done up. Again, this amendment, which was tabled before that debate, is prescient in that regard. It is again an “at least” provision, which means that local authorities could be thoughtful about delays to work because of all sorts of things, including planning concerns and the weather—significant events that can set development back—and the long process of sale. These amendments would put on the face of the Bill some understanding, humanity and common sense, and would ensure that the balance is struck and that the Bill does what it is seeking to do.

--- Later in debate ---

[Mr Jones]

I will deal with the two amendments in turn. With amendment 83, the hon. Member for York Central’s desire is to ensure that those people who inherit property are not unduly penalised by the rapid imposition of a second homes premium. I will set out what happens with council tax liability when the owner of a property passes away and leaves it empty. Such a property is exempt from council tax as long as it remains unoccupied and until probate is granted. Following a grant of probate, a further six-month exemption can be provided, so long as the property remains unoccupied and the ownership has not been transferred. There are already strong protections in place.

Amendment 83 proposes that in addition to those protections, the property should be exempt from any potential second homes premium for a period of at least two years. A premium would only apply if the property was not someone’s sole or main residence, and if it was furnished. I understand the hon. Member for York Central’s concern. I hope that she will be reassured that the Bill includes powers for the Secretary of State to make regulations that exempt certain classes of property from application of the premium. We will reflect on the points that she made and consider whether to consult on potential exemptions to the premium.

Amendment 84 appears to suggest that someone purchasing a second home that requires some improvement should be able to benefit from an exemption for at least one year. While I fully support homeowners investing in their main or second homes by renovating and improving them, I am unclear as to why such work on second homes should benefit from an exemption to the premium. The premium would only apply if a property was furnished. If it required substantial rebuilding work, it seems unlikely that the property would be furnished. In that case, a second homes premium would not be due in any case since the property would not meet the definition in the Bill.

[Rachael Maskell]

I am grateful to the Minister for the points he is making. It is possible to be in a situation where part of the property was furnished because that is not the area where dilapidation has occurred, but part of it is unfurnished because it needs, for example, a new roof or an extension. There is a situation where there is furnishing, but the property is still unoccupied due to renovation work.

[Mr Jones]

The hon. Lady raises an interesting point. It seems clear to me that that property would be partly furnished, but not be occupied by the owner. It would therefore still constitute a second home—that is the argument I am making.

On amendment 84, the hon. Lady gave the example of the roof not being on a property. If a property were not in a fit state for habitation and required substantial work to bring it into a reasonable state, it is quite possible that the Valuation Office Agency would consider a request to remove the property from the council tax list, thereby removing its liability for council tax.

I hope I have been able to clarify my understanding of amendment 84, and I hope that with my reassurances the hon. Lady will withdraw both her amendments.

[Rachael Maskell]

I welcome the debate we have just had. For the record, I think it is important that we take forward discussions around these issues and understand the challenges our constituents in sensitive circumstances are facing. The Minister’s response on the powers that local authorities already have until probate is granted was helpful and gives us the opportunity to reflect on that issue. It would be my sincere hope that local authorities will be able to work with families who are bereaved to give them the support they need to dispose of a property in a timely way.

On the dilapidation of properties, the hon. Member for Westmorland and Lonsdale was absolutely right to highlight some of the workforce challenges currently facing the construction industry. We know the Government are making many demands on that depleted workforce, which is taking time to recover and has many challenges pressing down on it. We simply do not have the labour supply to address the multiple demands being placed on construction and maintenance. Even the timescales I suggested in the amendment could be challenged due to that demand on the industry.

The Minister’s comments on the role the Valuation Office Agency can play in removing a property from the council tax list during a period of renovation were quite helpful. I am sure they will be well heard by people in those circumstances, but I think I am perhaps just scarred from growing up in a property where we had a tarpaulin roof for many a winter, and living under it posed real challenges. The suggestions the Minister has made and the direction he has shown through his comments to the Committee have been helpful. I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Question proposed, That the clause stand part of the Bill.

[Mr Jones]

Clause 73 contains a power for councils to introduce a council tax premium on second homes. We recognise that second homes can benefit local economies and the tourism sector. Second homes can also provide flexibility to enable people to work in and contribute to the local community, while being able to return to a family home in another part of the country on a regular basis. However, the Government understand the concerns that large numbers of second homes, particularly where they are concentrated in a small area, can have a negative effect on the vitality and viability of local communities.

A large number of second homes impacts on the size of the permanent population who help to generate the demand needed for their local services the year round. It creates a hollowing-out effect. The local schools have insufficient pupils to remain open. The local buses do not have enough passengers to maintain the service. The village pubs and post offices do not have the customers to sustain them through the year. These are all arguments that many Members are familiar with and have made to the Government.

The risk is clear that, without action, some communities will become increasingly unviable as local services close due to a lack of a permanent year-round population. The Government are not prepared to stand by and watch that happen. We are investing £11.5 billion in the affordable homes programme, which will deliver up to 180,000 affordable homes.

We have introduced a higher level of stamp duty on the purchase of second homes. The clause supports that by providing new powers for councils to apply a premium of up to 100% extra council tax on second homes. The use of that premium will be discretionary, and it will be for councils to exercise their own judgment as to whether to apply a premium and at what level—up to a maximum of 100%. The premium will provide councils with the flexibility to access additional revenue. It will be for councils to decide how best to use this funding. For example, councils may choose to support the local shop or village pub, or they may invest it in new affordable housing for local families, so they can help maintain the lifeblood of their community.

We are clear that second home owners should be given sufficient notice of the introduction of a premium. The clause will require each council introducing a premium to have a minimum period of 12 months between making its first determination and the financial year in which it takes effect. That will give second home owners plenty of time to make plans for how to respond to the forthcoming premium. Of course, there may be circumstances where it is not appropriate to apply a premium. Proposed new section 11D(1) provides a power for the Secretary of State to make regulations prescribing categories of dwelling in relation to which the council tax premium on second homes cannot be charged. We will consult on such categories.

Proposed new section 11D(3) includes a power for the Secretary of State to vary the maximum council tax premium that can be charged on second homes. It is clearly sensible to maintain a degree of flexibility for the future. If circumstances suggest that consideration should be given to adjusting the level, any consequent regulations will be made through the affirmative resolution procedure and will require approval of this House. The power contained in the clause will enable every council to decide whether to apply a premium at a level that is suitable for their own circumstances. It will enable them to generate additional revenue, and they will be able to use it to mitigate the impact of high levels of second homes in their areas. I commend the clause to the Committee.

--- Later in debate ---

[Mr Jones]

I nearly thought that that the hon. Member for Westmorland and Lonsdale was going to cross the Floor, given his glowing praise of my analysis. I understand his concerns. That is why we have, over time, put in place a number of policies, including increased stamp duty for purchases of second dwellings, and why the Bill introduces a council tax premium. Clearly, there is a wider picture, and we understand that picture. It is a complex issue and we constantly look at it.

The hon. Member for Nottingham North is concerned about the Secretary of State’s involvement. I do not want to pre-empt the result of the consultation, but it might include the points that he has made about probate. I expect the consultation to take place this autumn, and I hope he will look carefully at it and respond to it.

Question put and agreed to.

Clause 73 accordingly ordered to stand part of the Bill.

Clause 74

Alteration of street names: England

[Rachael Maskell]

I beg to move amendment 85, in clause 74, page 83, line 23, at end insert—

“and it has considered the historical, cultural or archaeological significance of a name change”.

This amendment requires cultural, historical and archaeological factors to be considered before making a name change.

We are considering many things in the Bill, and we come now to a clause that deals with street names. Needless to say, the issue of street names is one of much interest not only to the population of York at large but to archaeologists and historians, whom I meet regularly in our city. It is probably obvious why that is the case: we are clearly a proud city and there is much history to be debated.

A lot of streets in York have changed their name over time. A case could be made to change some of them back to their original names. In York, the streets are named gates, the gates are called bars, and the bars are called pubs. Our language is slightly different from that used in other places. Many of the names have been changed for good, sensitive reasons. What was Beggargate, for instance, is now called Nunnery Lane, and some names were far worse. Our approach to the naming of streets evolves. We have many layers of history, and there are areas of Roman, Viking and medieval significance in places such as York.

Names could be changed at the stroke of a vote, but it is important to put in place checks and balances, including a consultation process and engagement with the wider community stakeholders and residents, to ensure that streets have appropriate names.

There are examples of those who were once heroes but are now fallen individuals. We may have seen a darker side of them or of our colonial past. The street name can tell a different story and therefore the changing of a name is not only a process but can be a historical or political act in itself. It may be desirable, but to understand the past is important. Therefore, to explain the name rather than change it may be the action to take to reflect that on a newer estate. Perhaps we will look at the industrial past of an area or some event or place of significance, or perhaps point to a new age and opportunity.

There are countless reasons why a street name vote may be sought. However, recognising the significance of a name or a former name could help define a street or an area, as well as the historical, cultural or archaeological significance of a place. My amendment will simply ensure that the history and archaeological understanding of a place is not lost. I am seeking assurances from the Minister that that understanding will form part of a consultation around the name change and the process set out in clause 74.

[Alex Norris]

This is the third time in part 2 that we have addressed names. We addressed alternative names for Mayors and alternative names for combined county authorities. My view on street names is the same as in those cases. My experience in Nottingham is that if we seek to do anything daft with names, the public pretty soon sniff it out and have a good way of correcting it, whether at the ballot box or through more informal means. I have a lot of confidence in our communities to make the right and sensible decisions given the right framework in law.

We are interested in the clause. I may make some more arguments in the next amendments. It is important that the important historical and archaeological factors are not lost. This is probably a de minimis provision and only asks for consideration. It is no greater fetter than that. I hope the Minister is minded to that.

[Mr Jones]

The amendment would add additional criteria for local authorities when considering the renaming of a street. I understand the importance of history, archaeology and culture in this process. However, the Government strongly believe that local people should have the final say on changes affecting street names. We would expect those local views to reflect the historical or cultural associations of the names concerned, and the importance that communities place on them. It is not clear that a freestanding additional requirement to consider heritage is necessary, or how it would work. It could, for example, make it harder to secure name changes that have local support but where new considerations, such as the need to honour a local person or event, take precedence over an archaeological interest. For instance, some Olympians had streets named after them following the 2012 Olympics.

We recently consulted on the prospective secondary legislation and guidance to deliver those changes. Respondents were overwhelmingly positive about our proposals, with 91% agreeing that the regulations and statutory guidance should set out how local authorities should seek consent when changing a street name. In view of that support, and the fact that heritage and cultural significance are matters that communities will weigh up, I hope the hon. Member will withdraw her amendment.

[Rachael Maskell]

I thank the Minister for his comments. My hon. Friend the Member for Nottingham North is right to highlight how our residents will do the right thing and we can depend on people to make the right choices, as I am sure they will in York. It is important to hear the Minister’s comment on the record that he will expect residents to reflect on the historical and cultural aspects of their streets and communities. People wanting to honour people or events of note in their communities will have the opportunity.

It is also important to recognise the place-making ability of a vicinity—for example, if there are quarters in a place, certainly in places as historical as York—to ensure that there is an ambience, an identity, given to a place. That could impact on the tourist aspect and the economic opportunity of a place, as well as the name in itself. I am sure there will always be streets in which to honour local individuals and at the same time balance the cultural sensitivities of an area. I found the Minister’s remarks helpful; I put that on the record. I think it will help with the next discussion, so I am happy to beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

--- Later in debate ---

I do not think that we are at cross-purposes with what the Minister is seeking to achieve, but in this instance the Government are too rigid. I hope that we will hear that common sense will be applied to make the provision a little more user-friendly.

[Rachael Maskell]

I support the amendments, particularly in the light of my withdrawing amendment 85. I believe that what sits at the heart of the clause is proper consultation with community stakeholders, whether they are residents, businesses or wider stakeholders, for instance Historic England, or the city archaeologist in the example I cited. The process of consultation is of key significance, and I am grateful to my hon. Friend for Nottingham North for setting out in such detail the type of proper consultation that should be embarked on.

I think we can all recall the naming process of the research boat Boaty McBoatface, and there has certainly been learning from that experience about what could happen with a renaming process. I speak as someone who has a street in my constituency called Whip-Ma-Whop-Ma-Gate, which means neither one thing nor the other—in itself curious. Names can be curious, but a rigorous consultation that can flush out the issues could avoid those significant pieces of amusement, ensure that the proper voices are heard and confirm a sensible place name. A name is not just a name; it is an identity. We all think about the addresses we have lived at, and the identity they have given us, so it is important that people have ownership. A thorough consultation by a good local authority is what my hon. Friend seeks through his amendment.

On the consultation exercise, although the digitalisation of processes is welcome, I emphasise how important it is that signs are still placed on street corners, as proposed in amendment 71. People in the community need to know what is happening. It is not an either/or; it is a both. People should be able to engage with a physical notice. We all see signs up across our constituencies and stop to read them, because they are an important indicator of how people can get involved. I urge the Government to consider the breadth of that opportunity.

Finally, I highlight my hon. Friend’s points about referendums. We know that they have costs attached, and a referendum on a street name would place an additional cost on a local authority at a time when resources are thin. Given the time and complexity involved, is that really the right focus for the Government, when a consultation could do the job by utilising the existing democratic process through elected councillors? I trust that the Minister will reflect on the realities of the clause when alternative routes, as my hon. Friend set out, could strengthen the process and enable the right outcome.

[Mr Jones]

The Government are strongly of the belief that people should have the final say on the character of the area in which they live. That must include protecting their local heritage. In this context, I agree with the underlying intent behind the amendments. There should be clear processes for making sure that local views on proposed street name changes are taken into account. It is, however, important that we do this in the right way, so that the processes are robust, but can be adjusted if required.

The Government recently consulted on the prospective secondary legislation and guidance to deliver the reform to street naming set out in the Bill. Respondents were overwhelmingly in favour of the proposals set out in the consultation, with 91% agreeing that regulations or statutory guidance should set out how local authorities should seek consent when changing a street name.

The amendments would remove the Government’s ability to do that and replace it with less specific requirements than we intend. I reassure the hon. Member for Nottingham North that we will be setting out clear, transparent and robust arrangements in secondary legislation. As I said, a significant number of respondents to the consultation want a proper say, and we can understand why. If the name of a residential street was changed, for example, individuals in any particular property would face significant costs from amending the title of their property or the addresses on their car logbook, bank accounts, utility bills, driving licence, and a number of other things that we could all reel off. Such things are important considerations, and that is why we are setting out down our chosen path.

By setting out the detail for how consultation on street naming will work in regulations and guidance, we will maintain flexibility to update processes in line with changes in circumstances, such as new technology. With that explanation, and those assurances, I hope the hon. Member will be willing to withdraw the amendment.

Levelling-up and Regeneration Bill (Tenth sitting)

Rachael Maskell Excerpts

Committee stage
Tuesday 5th July 2022 Public Bill Committees

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Neil O'Brien)]

Clause 31 enables the Secretary of State to make regulations to allow the Mayor of a combined county authority to whom police and crime commissioner and fire and rescue functions have been conferred to delegate fire and rescue functions to the chief constable of the police force for the area. It further allows the chief constable to delegate those functions to both police and fire and rescue personnel, and through it enact what is known as the single employer model.

Those provisions are designed to provide the option for Mayors of CCAs to exercise fire and rescue service functions under the single employer model where they also exercise PCC functions, if they feel that allowing the chief constable to run both operational services will help them to have a stronger role in public safety and to deliver more effective emergency services for their local area. That is the rationale that the hon. Member for Nottingham North is seeking.

It is an equivalent provision to section 107EA of the Local Democracy, Economic Development and Construction Act 2009, which made that option available to Mayors of combined authorities when Parliament approved its addition via the Policing and Crime Act 2017. The change is basically about enabling the benefits of blue light integration between the two services.

Question put and agreed to.

Clause 31 accordingly ordered to stand part of the Bill.

Clauses 32 to 37 ordered to stand part of the Bill.

Clause 38

Mayors for CCA areas: financial matters

[Rachael Maskell (York Central) (Lab/Co-op)]

I beg to move amendment 52, in clause 38, page 33, line 32, at end insert—

“(c) for and about alternative funding streams (including grants from the Secretary of State) for fire and rescue services if constraints on revenue-raising mean that there is a threat that fire and rescue safety standards may not be maintained in the area.”

This amendment enables the Secretary of State, in circumstances where mayoral revenue raising powers are insufficient for the provision of a safe Fire and Rescue service, to make alternative provision to fund the services, including a grant from the Secretary of State.

I think it is right to declare a number of things. First, North Yorkshire is in deep discussions about a devolution deal. We want to see that progress successfully, but at the same time we face a real challenge with our fire and rescue service. I want to talk about the reality of what we are debating, to ensure that we place it with the right safeguards, which are absolutely essential.

North Yorkshire was one of the first authorities in which the fire and rescue service combined with the police and crime commissioner function. At one point there were just four authorities in that position. Therefore, North Yorkshire has probably the best experience of how that combination works. I must say to the Minister that there have been some benefits from such a combination, such as cost savings, in particular arising from back office integration. That helps with public funding, which must be a positive because that is public money. However, when we look at the reality of what is happening now in the service, we have a very different story to tell.

My amendment is designed to keep the public safe and ensure that there is sufficiency in the service to retain sufficient fire appliances, to operate them safely and to have crew in the vicinity. This is about making sure that the funding flows work. Right now, I am expecting a meeting with the Home Secretary to discuss the matter. If the authority is devolved, I may be looking in a number of different directions to achieve the sufficient funding required to keep my community, and others, safe.

To highlight the challenges ahead of us, we are looking at the removal of night-time cover from Harrogate and Scarborough fire stations, as well as the removal of a second fire appliance. In my community, Huntington’s fire station may be pared back because of funding deficiencies. That means that response times will increase by seven minutes and 59 seconds—eight minutes of burning fire could cause a lot of damage. It is important to consider the issue in the context of today’s debate, because if it takes 16 minutes in total to reach a fire in my constituency, 31,000 residents will be impacted as a result of that change. That is quite significant.

Colleagues will be pleased to hear that I do not intend to go into all the ins and outs of the North Yorkshire Fire and Rescue Service, but the sufficiency of the service will be subject to constant challenge. We will be looking ever more at how we can share resources and integrate roles, but there comes a point when the very viability of the service is challenged, and the public is put at risk. That is the point we are at now. If we are to see this integrated into a devolution deal, the money will have to be ringfenced and the community safeguarded, or else we could see a disaster.

In North Yorkshire—this also applies to other Members’ constituencies—we have a mixture of urban and rural. The reality is that North Yorkshire is the biggest county by geographical area, which puts stress on the service. It is not all bad news. The Home Secretary came forward with a fix to this for eight authorities that had kept their reserves. They got additional flexibility around the precept and so were able to fully fund their services and have sufficiency and some headroom for protection. North Yorkshire had spent its reserves and so was not awarded that precept flexibility.

Because of the geographical nature of North Yorkshire, it is now just about the worst-funded fire authority in the country. If there is no flexibility from the Home Secretary and Government, the result is that my constituents’ lives will be put at risk. Their homes could burn. Across North Yorkshire it can get tinder dry at this time of year and we see fires breaking out. It could have a catastrophic impact and put firefighters at risk, as well as the environment and so much more. Who will be responsible for bailing out a service is a serious consideration. Because we will not have proper governance over the funding of the service, as it will be under the new authority, will we keep cutting and cutting, increasing the risk to the public and ultimately placing them in danger?

It is part of a devolution deal, whether the police and crime functions and fire and rescue come together in one role and how that will work out, but it is important to consider where that funding is going to come from. I am really concerned. That is why my amendment is so important. With the scale of the outstanding deficits, if we are going to pare back now, we will see increased energy costs, higher maintenance and issues around salaries, which have not yet been negotiated. The service needs new equipment, uniforms and insurance—the list goes on. That all has to come out of a zero balance. Therefore, being able to get the assurance that when there is devolution there will be sufficiency is going to be really important to ensuring that there are protections.

It could be argued that for a few years there will be greater cost savings. That could be the case, although I am not sure much more could be got out of the service. But the cuts in York, Scarborough and Harrogate will have a significant impact. In fact, only Cambridgeshire and Essex are now worse funded, and actually they have more reserves than North Yorkshire. That is the financial situation.

We need a resolve. The resolve comes in my amendment, which seeks to utilise the efficiency savings we can gain. That has clearly already been done—as has the back office shared facilities and the usual reserves. At that point, do we put the public at risk? Under a devolved authority, what we are talking about is the very homes we are trying to build being put at greater risk. That seems somewhat ironic within itself. Or do we provide that ring of protection around our fire and rescue essential service—emergency services, as we know it? Putting those constraints there is absolutely important.

My amendment would add one paragraph to the Bill. It highlights that if there are constraints around the funding, there will be means of revenue raising that will ensure that the safety standards are maintained in an area. That would essentially be either a grant or flexibility around the precept. That precept flexibility has already been exercised for eight authorities, so we know that is a mechanism that could be triggered. However, that was determined by Whitehall. If it is to be determined by a devolved authority, what would that look like, or will a Mayor have more opportunity in order to protect the community? I would like to understand how that would work functionally, and how we keep those communities safe.

--- Later in debate ---

[Alex Norris]

I congratulate my hon. Friend on her excellent amendment, which gives us the chance to have an interesting conversation about having a backstop to ensure that our fire and rescue services are funded and safe. The reality she has injected into the debate is helpful for our considerations.

Reducing fires is a tricky business. Over the past 20 years it has been a significant success story of Government. The incidence of fire that fire and rescue services attended peaked at 1 million in 2003-04. Within 10 years that figure had halved. That is set against an increasing population. The number has held about the same for the last eight years. It is a real success story for Governments of different persuasions.

There are a number of factors. First, there is the more effective and efficient operation of fire and rescue services and those who work for them—they have done a great job. Then there is the very virtuous circle that, as incidents that have to be visited have reduced, the firefighters have used their time for early intervention activities, such as fire safety checks for vulnerable people, which have been a really good way of reducing the incidence of fire. That is very good for public safety, for the individuals and for resources. It has created a virtuous circle.

Changing diets have also had an impact—there are not as many chip pan fires as there were 20 to 30 years ago. There is better regulation of products, which are less likely to catch fire these days. That is set against a significant growth in the technologies we use at home. There are lots more electric-intensive items, but the appliances are better and they are regulated better. A whole mixture of developments have resulted in a spectacular reduction in the incidence of fire.

[Rachael Maskell]

My hon. Friend makes a really good point. North Yorkshire fire service does household and wellbeing checks. There has been no reduction in the scale of rescue, including from road traffic accidents. I am sure that the Minister occasionally hears on the West Yorkshire airwaves about the challenges and regular accidents on the A64. York also experiences flooding, and the fire service is involved with our rescue boat. Tragically—more so at this time—the fire service also addresses issues of river safety and suicide, so its responsibilities are far more expansive than just dealing with fires. It was remiss of me to not refer to those matters earlier.

[Alex Norris]

I am glad that my hon. Friend has had the chance to do so; what she says is very much true. Of course, the traffic on our roads has only grown over that period, so as my hon. Friend says, those incidences are likely to be something that we will always need a service for, and we are lucky to have the ones that we do. However, given that this is so multifactorial, the challenge we face is to work out what we can safely afford to change, and certainly what we can afford to do from a financial perspective. Have we reduced fires to a new normal, or are we suppressing and dampening them through our activities? We would only know the answer if we pulled resources out, and the reality—and this is really important for the purpose of this amendment—is that there is not an awful lot of money to take out of the fire service.

The Minister talked about the possibility of chief constables taking on leadership of the service. All those points have been well made and, as he has said, are mirrored in the 2009 Act and on the face of the Bill. However, combining senior management achieves some savings, but not an awful lot in the grand scheme of things. It obviously creates the advantages of colocation, but it does not mean that the services sit on top of each other, so they still need the space, although they may get some aggregation benefits. Then we start looking at going back to retained firefighters, which suits some communities but will not suit others. Finally, we are left with the two areas where savings tend to come from, which are a reduction in appliances and short crewing.

On the appliances front, I live just near junction 26 of the M1, which is a very busy place for the rescue functions that my hon. Friend the Member for York Central talked about. We currently have two appliances there, which means that fire cover is a challenge for the rest of the community. Every five years or so, we have to fight off a proposal to reduce the number of our appliances from two to one. I expect that we are due another proposal soon. It is one of the earliest political campaigns I got involved in. Like the football World cup, it comes around every four years and we keep succeeding. Long may that be the case, because reductions create gaps in fire cover. Some of the gaps that my hon. Friend talked about are significant, and these are things that people feel very strongly about, in terms of the money they pay in taxes and the support they would like to have. That is a challenge.

There is only so far that services in distress can go with appliances. It is kind of possible to have half an appliance, but not really because it does not give services the same financial benefit. When a service is down to short crewing, firefighters are asked to deal with really dangerous situations that they have not been trained to deal with, and the best health and safety and work modelling does not suggest that that is the way to do it. We should be very careful about entering that space. There needs to be a backstop. As my hon. Friend the Member for York Central said, we would not want to use it routinely, but it would be helpful if the Bill made that provision available. The Minister may say that there are other ways to deal with this. If so, we will listen with interest, but my hon. Friend’s point is well made and I think that our constituents feel very strongly about it. She has made a strong case.

[Tim Farron (Westmorland and Lonsdale) (LD)]

This is a very helpful amendment, and one that I hope the Minister will take seriously. As has been said, huge strides have been made over the past few years in reducing the numbers of horrific incidents. That has happened for a lot of reasons, including the fire and rescue services focusing on fire prevention work and on seeking proactively to educate homes and businesses on the need to avoiding risks, as well as all sorts of other structural factors that have already been mentioned.

In my part of the world, we are dependent on people who are not full-time firefighters. That is not just retained firefighters—I will come back to them in a moment—to whom we owe a particular debt of gratitude. The work of mountain rescue and bay rescue services, integrated with the fire and rescue service, provides a unique perspective and a reminder that we try to use all sorts of innovative ways—voluntary ways, often—to meet the need to protect the community, despite a lack of resource.

Among the reasons why the amendment is important is the fact that we need to understand that if we are considering a fire service that is predominantly retained—particularly in rural communities, in places such as Sedbergh, Staveley and many other communities that I represent elsewhere in Cumbria—it will only have a retained pump. That is all it has. With a declining workforce, the change in housing tenure over the past few years, which has become radically different in the past two, and a shrinkage of the working-age population, we are running the risk of having no one available to take on those roles. In those circumstances, it makes sense for the fire and rescue service, and Government working with services around the country, to look at ways of augmenting communities where it is simply not possible to find the people to staff a retained pump and, therefore, to keep the community safe.

I am proud to be a Cumbrian MP. I also represent Westmorland and old Lancashire. I am, however, Yorkshire’s secret MP, because I represent Sedbergh, the dales, Garsdale and Cowgill—we border North Yorkshire. There are huge distances between places out there, from the lakes to the dales. Yes, the incidence of fires that we now encounter is low, compared with a couple of decades ago. Lots of people should take credit for that, including Governments of different colours and, in particular, the fire service.

However, the distances that need to be covered to get from the fire station to the fire are vast. If a retained firefighter is on their farm and drops what they are doing to cover that distance to get to the pump, only to find that there are only two other people who have got there at the same time, they then have to make a call about whether it is safe to attend the fire. There are only three of them who managed to get away from work, and there are only five people on the list in the first place. They have to think: “What do we do? Do we scramble Kendal and get a full-time pump? That is another 10 miles away.”

The amendment would allow the flexibility to create and provide funding to ensure the provision of a full-time pump for communities that, under normal circumstances, might not qualify under the funding formula, so that we are not putting rural communities, in particular, at risk.

[Rachael Maskell]

The hon. Gentleman is making a strong case in support of the amendment. We are entering a period of increased drought; with climate change, that situation is likely to get worse. We are seeing more and more fires across our moors. That in itself is surely reason not to see cuts on such scale, which will devastate the service and put firefighters at risk.

[Tim Farron]

The hon. Lady makes an excellent point. We are the wettest bit of England. We need to be, because of the lakes—we have to keep them topped up. Nevertheless, Members will remember that in the past few months there were flash fires at Cartmel Fell, which raged for a full weekend and took many pumps to get under control. I am massively grateful to those who got those fires under control.

With that changing weather, we can go from very damp weather to very dry weather for long periods. In areas with lots of forestry and agriculture, there is the potential for flash fires, which can cause death and damage to wildlife, livestock, homes, businesses and families—human beings. We therefore need to be all the more aware of the fact that we cannot allow the technicalities of funding formulas to get in the way of keeping our people safe.

--- Later in debate ---

We think the amendment is unnecessary. It seeks to provide the Secretary of State with powers to issue grants to fire and rescue services, but that is not necessary because the Secretary of State already has existing powers to provide grants to fire and rescue services under section 31 of the Local Government Act 2003. As such, the amendment is not required, and I hope it will be withdrawn.

[Rachael Maskell]

I thank hon. Members, including the Minister, for their contributions. Our problem with the Minister’s case is that the precept is capped—it is limited—and therefore it will not prevent the ongoing revenue deficit that the North Yorkshire fire and rescue service faces. That deficit will simply be moved into the new devolved authority of North Yorkshire, and as a result we will yet again be in that challenged position. This is a matter that still has to be resolved, and after listening to the Minister’s response I am not convinced that an adequate solution has been put forward to protect the public—that is what this is about—the service and the firefighters, and ensure people can sleep at night.

We have heard about the multiple calls on the firefighting budget and the fire and rescue service, and the situation is getting worse year on year. We have not seen grants coming out of the Home Office. We have been talking about the challenges in North Yorkshire for well over six months. In fact, it was the back end of last summer when we started talking about wanting more flexibility around the precept to raise more funding, but it was capped at the 1.99% that the authority was given. In contrast, the eight authorities I referred to got the bail-out, the flexibility and the support from the Home Office. There will therefore be a draw on the local authority to provide sufficiency if the Home Office does not, because no one will want to be new in the role of Mayor and take on such a liability.

I want to press this amendment to a vote, because it shows how important it is to protect the public and have fire safety and public safety at the forefront of legislation.

Question put, That the amendment be made.

--- Later in debate ---

[Neil O'Brien]

The hon. Gentleman is correct to read it as “any other title” that is locally wished for, having respect for the fact that there may be other people with such job titles in the area. He asked about where there is demand. A number of places that we are talking to about devolution deals are thinking about using non-mayoral titles, particularly in non-urban areas and where people feel that “Mayor” may not be the correct term for them. They may prefer leader, governor, commissioner or some of the titles that we have discussed.

I was hoping that the hon. Gentleman would ask why a supermajority is required to change the name of the institution but not the title of the directly elected leader. The difference is that many people will have made legal contracts with a CCA, so changing it is a fundamental and non-trivial thing to do, because it would require lots of other consequential changes. We talked in a previous sitting about the need for the stability of the institution. This is a more novel and more experimental area. I do not expect that we would see lots of constant changing and chopping of the name of the directly elected leader, but we think that that is an important part of devolution.

[Rachael Maskell]

I have a further question about this measure and how we could end up with such a variety of names in different devolved areas: a county commissioner in one place might be a county governor, a governor, a Mayor, or who knows what we might end up with under subsection (3)(e). That could be more confusing for the public. We have already talked about a range of powers and a range of tiers; we now have a range of names, in a whole spectrum of shifting powers and accountabilities. Does the Minister believe this measure to be a necessary step? Does he recognise that it could lead to more confusion than trying to address the very issues he probably intended it to address originally?

--- Later in debate ---

[Neil O’Brien]

It is entirely to shape the conversation, as the hon. Gentleman says. It is to give a list of suggestions that may be appropriate, while also allowing others to go for different things if they consider that appropriate locally.

Question put and agreed to.

Clause 41 accordingly ordered to stand part of the Bill.

Clause 42

Proposal for new CCA

[Rachael Maskell]

I beg to move amendment 53, in clause 42, page 38, line 14, at end insert—

“(c) prepare and publish a report setting out the results of the consultation.”

This amendment would require the authority or authorities submitting a proposal for a new Combined County Authority to make the results of the public consultation publicly available before submission.

[The Chair]

With this it will be convenient to discuss the following:

Amendment 54, clause 43, page 39, line 12, at end insert—

“(3A) If a public consultation has been carried out under subsection (3), the Secretary of State must prepare and publish a report setting out the results.”

This amendment would require the Secretary of State to make the results of the public consultation on establishing a Combined County Authority publicly available in a report.

Amendment 55, clause 44, page 40, line 9, at end insert—

“(c) prepare and publish a report setting out the results of the consultation.”

This amendment would require the authority or authorities submitting a proposal for changes to Combined County Authority arrangements to make the results of the public consultation publicly available before submission.

Amendment 56, clause 45, page 41, line 13, at end insert—

“(3A) If a public consultation has been carried out under subsection (3), the Secretary of State must prepare and publish a report setting out the results.”

This amendment would require the Secretary of State to make the results of a public consultation on a proposal for changes to Combined County Authority arrangements publicly available in a report.

[Rachael Maskell]

The theme of this group of amendments is incredibly similar and something that Labour Members have been raising throughout the passage of the Bill to date, particularly in Committee. My amendments are seeking to provide greater transparency with the publication of final reports. Amendments 53 and 55 call for a report to be published following consultation. They appear to be such minor amendments, but they are so important to public scrutiny. In turn, such scrutiny builds public confidence and accountability, which our communities deserve because of impact the Bill will have on them. Publication of such reports on the consultation will also enable local politicians to see their contents and to use the information provided. That is what we want to see at all levels of government.

--- Later in debate ---

[Neil O’Brien]

We discussed in a previous sitting the new combined county authority model and the associated consultation requirements. At that time, I set out our commitment to ensuring that whenever a CCA is established, its boundaries change or, if it is being abolished, that the local public are consulted on the proposal.

Clauses 42 to 45 set out the requirements, including public consultation, associated with establishing, changing or dissolving a CCA. They include the preconditions for any regulations with those effects to be made. One such condition is for the area or CCA to undertake a public consultation on the proposal to establish, amend or dissolve a CCA. A summary of the consultation responses must be submitted to the Secretary of State alongside the proposal, and the decision to submit it must be taken at CCA or council meetings, which are held publicly. As such, that summary of consultation results will be publicly available.

Another condition is the specific duty on the Secretary of State to consider whether, prior to making regulations, further public consultation is needed. Indeed, the absence of a public response to an earlier consultation might give rise to further consultation—that addresses the point made by the hon. Member for Westmorland and Lonsdale. If the Secretary of State makes such regulations, they must publish an explanatory memorandum setting out the results of the public consultation. As a result, although we totally agree with the sentiment behind the amendments, they do not add anything to the requirements that are already provided for, and I hope that they will be withdrawn.

[Rachael Maskell]

I appreciate the contributions that have been made by hon. Members. The points about accountability were absolutely right. We have seen a reorganisation of local government in North Yorkshire, and the districts were not supportive of it and felt that it was very much imposed from the centre. Being able to see the rationale and the thinking is important, and that is what these simple amendments would allow. I am happy to withdraw the amendment for now, but I reserve the right to bring it back at a later stage. I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Clause 42 ordered to stand part of the Bill

Clause 43

Requirements in connection with establishment of CCA

[Alex Norris]

I beg to move amendment 40, in clause 43, page 39, line 23, at end insert—

“(5A) When the Secretary of State makes regulations under this section they must publish an accompanying statement stating—

(a) whether or not the CCA has access to the fullest conferred powers, and

(b) if not, the reasons why not.”

I will be brief, because this is a counterpart conversation to discussions that we have had before. The amendment would enhance the clause by putting in a requirement to report on whether a combined county authority has access to the fullest conferred powers, and if not, an explanation for why. That would help the Government to maintain their stance in the White Paper, in which they seemed to want to offer such measures by 2030. It would perhaps be a positive step if we did that a little quicker.

[Neil O’Brien]

The amendment is not appropriate for two main reasons. First, it uses the term “fullest conferred powers”, which is undefinable and incalculable. Our devolution framework does not provide a minimum offer, and our local leadership mission and desire to deepen devolution mean there is no upper limit to the conferral of powers, nor should we seek to impose one.

[Rachael Maskell]

On a point of order, Sir Mark. Could the Minister speak a bit slower? I do not know whether it is the acoustics in the room, but I am finding it quite difficult to hear what he is saying.

[The Chair]

Yes, the Minister does speak quite quietly. Is Hansard picking it up? Okay, good.

--- Later in debate ---

[Alex Norris]

My notes are as extensive as saying, “Same principle.” I might have to do a bit better in my explanation, but that is probably a sign not to speak for long on this clause either.

Clause 48 gives the Secretary of State the powers, essentially, to make clause 46 work—the ability to provide for the exercise of functional purposes. That argument was well made by the Minister and agreed with by all. What amendment 41 would do is leave out subsections (3)(b) and (c), as a way of saying to the Secretary of State that this power should not be conferred unequally. We should be conferring these powers as and when necessary to CCAs—I made that point earlier. As an alternative, under amendment 42 to clause 49, the Secretary of State must offer a general power to all if it has been offered to one. Again, that is in line with arguments that have already been made, which I will not repeat.

[Rachael Maskell]

I will be brief, because we have discussed these matters a number of times. The Committee has come to recognise that there will be asymmetry and that the powers will evolve at different times and in different authorities. That is the nature of devolution, and it is positive because it means local areas are in control of their own destiny. Capping those powers will have an impact on the economic ability and drivers of an area and will result in socioeconomic loss. Restraining local authorities in reaching their potential could mean that we do not see the growth and opportunity that a CCA could bring.

The amendments would enable more parity but also ensure that CCAs do not have different powers or descriptions. We want more symmetry in the ability to attain powers, and we will no doubt keep labouring the point at later stages of the Bill, because it is fundamental to devolution and who controls the process. The amendments very much go into the detail of that.

[Tim Farron]

I add my support to Labour’s approach. I am not fixated on symmetry in terms of what devolution looks like across England, but like the hon. Member for York Central I am obsessed with symmetry of opportunity. The amendments would help to raise the bar and raise the expectations of all authorities so that they can see what powers they can aspire to.

If we do not have something like the amendments, and some communities, because they have a Mayor or for other reasons, are offered greater devolution—it is often more delegation than devolution—more powers and more responsibilities, that is not levelling up. It is quite the opposite: it is building privilege into some parts of the country over other parts of the country, and institutionalising privilege. Broadly speaking, it will be institutionalising privilege for urban and metropolitan areas that have city deals, Mayors and the highest levels of devolution and delegation of responsibility. Not allowing all parts of the country to opt in to having the greatest level of devolved powers, should they so choose, is a recipe for creating the need for a different kind of levelling up some time not very far in the future.

[Neil O'Brien]

This is indeed a continuation of the debate we have been having over several days now. We have stated our belief that one-size-fits-all arrangements of the type provided for by amendment 41 are antithetical to different areas having different functions and progressing at different speeds.

The effect of amendment 41 would be that, regardless of the functions conferred on different CCAs, unless the CCA has had conferred on it the broader general power of competence under clause 49, the conditions imposed on what can be done in pursuit of those functions will have to be the same. That would be an overly rigid approach, in practice requiring all CCAs to be at the same level before any conditions could be changed. That outcome, however unintentional, would not fit with our area-led and bespoke approach to devolution.

The general power of competence, introduced for local authorities by the Localism Act 2011, would allow a CCA to do anything an individual can do that is not prevented by law. For example, if a CCA does not have housing powers, the general power of competence would enable it to buy a house on the market, but it would not enable it to compulsorily purchase that house.

Amendment 42 would require the offer to all areas, implicit in this clause, to confer the general power of competence, if it is appropriate to their circumstance and if they want it, to be restated wherever it is so conferred. That requirement is unnecessary.

We have been clear that if a good case exists for any power to be conferred to any area as part of a devolution deal, we are open to proposals to do so that are in line with the devolution framework. Further, it could be unhelpful and inappropriate to be required to make an unconditional offer that might not be universally appropriate. To date, only three combined authorities have asked for this to be conferred, which we have done.

Both amendments seek to bind matters that should always be the subject of an individual agreement between the area and the Secretary of State, which Parliament will then have to approve. All variations will be public knowledge and the rationale for them will be subject to parliamentary debate informed by explanatory memorandums.

[Rachael Maskell]

I was very taken by the Minister’s comments about an area-led process. It does not feel like this is area-led; it feels Secretary of State-led—the Secretary of State will determine what the powers will be. Would the Minister consider an amendment that facilitated a more area-led approach at a later stage of the Bill? If there were a more à la carte opportunity and authorities were ready to take on greater powers and responsibilities, could they assume those powers, as opposed to having to renegotiate a deal, which could be quite a bureaucratic process? They could access what other authorities have accessed, in a timely way. Would that be a suitable amendment to the Bill that was palatable to the Government as we move forward?

[Neil O'Brien]

Without wishing to repeat all the arguments we have been making over the last several days, I would argue that this is the à la carte approach. We are resisting a one-size-fits-all approach in which, if a power is offered to one area, it must be offered to every single area, and in which people can move only at the speed of the slowest. For all the reasons I have already set out, we will continue to resist that approach.

[Rachael Maskell]

I do not think this is about a one-size-fits-all approach by any means. It is recognition that different authorities will be—

[The Chair]

Order. These are very long interventions—almost small speeches. You can speak after the Minister to make these points. Please be as brief as you can.

[Rachael Maskell]

Thank you, Sir Mark. I was building my case, but I appreciate your guidance. I simply seek a different mechanism by which authorities could take on greater responsibilities, because it seems it is either full negotiation or a denial of being able to pick to expand. I wonder whether there is a halfway house that could be palatable to the Minister.

[Neil O'Brien]

As Members will have noticed from us having done six or seven devolution deals to continue to deepen deals we have agreed, and from the fact that we are working on deepening the devolution deals for the West Midlands and Greater Manchester Combined Authorities, we are prepared to go further all the time. That brings me to the end of my remarks.

[The Chair]

Rachel Maskell, do you wish to respond?

[Rachael Maskell]

No, I think I have said enough.

[Alex Norris]

The Minister knows that the Opposition approach is neither one size fits all, nor slowest pace. I concede that amendment 41 probably does not serve in that regard because it would have a restrictive impact. I take the criticism of the amendment, but the same does not apply to amendment 42, although I am not inclined to press it to a vote.

The Minister used the characterisation “à la carte”. I thought that was the whole function of the White Paper. He instead talks about individual agreements, which I think is part of the reason we have the complicated set-up that we have now. I thought the whole purpose of the White Paper was the pursuit of the goal of everyone having the uppermost powers if they so wished. Individual agreements are clearly not going to be the most effective way to do that.

We are left in this curious situation where we seem to be more interested in and attached to what is in the White Paper than the Minister is. The point has been made, so I will not push the amendment to a Division. I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Clause 48 ordered to stand part of the Bill.

Clause 49 ordered to stand part of the Bill.

Clause 50

Incidental etc provision

Question proposed, That the clause stand part of the Bill.

--- Later in debate ---

If the Government were actually concerned about levelling up rural England—places such as Cumbria and all the other places that have been put under pressure by the housing catastrophe caused by the explosion in second homes and holiday lets over and above the numbers before the pandemic—they would accept amendments such as these.

[Rachael Maskell]

I rise to support amendments 61, 62 and 63 and speak to amendments 78 and 81. The rural economy has been eloquently described, but I want to talk about my city of York, which is a centre for visitors—we had 8 million pre-pandemic and I am sure we will climb back up to that number again.

The staycation economy has driven a new clientele into our city. In what we are calling an “extraction economy”, investors from London and the south-east are purchasing properties as second homes—whether for private or Airbnb use. Already we can see the inequality building. What is happening is not levelling up. Investors are extracting not only properties from people in my city but the money they get from the properties, which goes back to London and the south-east.

We are left all the poorer, and that means that many in my community are without any housing whatever. In fact, people have been going door to door offering cash to residents in social housing. They say that if the residents purchase their homes under right to buy, they will buy the house from them. I have heard stories of people paying up to £70,000 more for a property that is then used in the investment economy, rather than for people in our city.

The housing crisis could be controlled if the Government put curbs on such activity and ensured that properties were not only developed—we will come to that—but were available for people locally. I have the same challenge to the local economy that we have already heard about in this debate. The hospitality, retail and tourism industry is so strong in York that we do not have enough people to work in it—not least because the pay is low. The overpricing of properties is heating up the market and then pushing people out. |On top of that, there is the problem of the reduction in available stock.

The issue also impacts our public services. We cannot get the social care staff or recruit to our NHS because there is nowhere to live. Families and young couples trying to buy their first home save up for their mortgage, only for that opportunity to be snatched by someone sweeping in and buying up the property. They are having to save up more and more but never realise their aspiration of owning a home.

We are beyond a crisis point: this issue is impacting on the economy, pushing families away, gobbling up residential housing for purposes for which it was not developed in the first place, and destroying communities and the infrastructure. People can now walk down streets in York where four, five or six properties are either second homes or holiday lets, and that, of course, is breaking up the community.

The worst situations that I am hearing about are of families pushed out of the city by section 21 notices. They have to take their children out of school and go to live miles away. What is happening across our communities is really destructive, so we need to put the right deterrents in place. We may have to go further than even these amendments are calling for to try to fix the challenge.

I would argue that a council tax rise of 200% or 300% in the first instance is a modest measure. Wales is the first place to have introduced this kind of rise in council tax, but it still has not been sufficient to deter people from purchasing second homes in Wales. Often the purchasers are asset-rich people who saved a lot of money during the pandemic, so having to pay an additional £3,000 or £4,000 a year is something they build into their costings. Those who go into other sorts of property—for example, leasehold property—are already paying thousands of pounds a year in management costs for the right to live in the property, so actually these are small measures compared with the excesses and headroom that the purchasers of these properties are expecting. The measures will provide resources for local government, for which this is a win-win—both getting the money in and creating a sufficient deterrent. That is why we should give local authorities the powers to decide, should they have need, to impose the additional levy on second homes and ensure that it works for their community. Of course, we would argue that local authorities do not have to do that, but having the option available is important.

Amendment 78 is about how to better determine the duration of occupancy that applies, taking it down from one year to six months. The housing market is moving fast at the moment, so this option should be considered as a way to address the issue far faster, especially in properties that are not primary residences, and to benefit the community by deterring the purchase of second homes. Pacing it, making the increased council tax not mandatory but optional, is really important. Shortening the timescale is appropriate.

Clauses 72 and 73 provide definitions around empty properties. We know that there has been some latitude in how that has worked for businesses that have emptied their property to avoid business rates, but it also works for residential dwellings. It is important that we maximise the opportunity to bring the properties forward and implement the curbs and protections needed in the local area.

Amendment 81 would enable a billing authority to make its determination in six months, rather than a year, so that the authority could see the financial award in-year. That will be important to balancing finances while giving local authorities enough revenue to inspect the properties to determine whether they are occupied or unoccupied, which will enable them to ensure that they get the right levy on the properties to pay the additional council tax for which the amendments call.

[Neil O'Brien]

I am sympathetic to many of the points made by Opposition Members. The Bill tightens the tax treatment of empty second homes to free up those homes for use by the community. The question is one of balance, of course.

Broadly speaking, the amendments would make the premium paid on second or empty homes more punitive. I absolutely understand the issues that the amendments raise, but they risk unintended consequences for our communities. For both second and empty homes, the amendments would shorten the time before a premium could be applied, and increase or bring forward the maximum that the council could choose to impose. We all want homes to make a positive contribution to the community, but we need to get the balance right between dissuading behaviours that none of us want to see and accidentally catching legitimate uses of properties that benefit communities. The Government believe that homeowners should have sufficient time to take steps to bring an empty property back into use. There is no hard and fast rule for calculating that period, but our judgment is that 12 months gets that balance right. A reduction to six months, as proposed by the hon. Member for Nottingham North, would create a number of challenges where there are very good reasons for a property being empty for a reasonable period, such as substantial refurbishment or a delayed sale. Often, family life is complicated, hence our judgment that 12 months gets the balance right.

For the same reason, an empty property has different impacts on the local community, depending on why and for how long it has been out of use. The Government believe it is appropriate to allow councils to increase the council tax premium in stages that reflect the length of time a property has been left empty, rather than imposing it immediately at the six-month point. We understand and sympathise with the point that a high concentration of second homes can hollow out communities, but they can also benefit local economies and tourism, allowing people to work in and contribute to the local economy and return to a family home in another part of the country.

[Rachael Maskell]

Will the Minister give way?

[Neil O’Brien]

I will give way in a moment, but I will make some progress first. We have already introduced a higher level of stamp duty for the purchase of second homes, and the Bill could double the council tax bill for those properties, providing additional council tax income for councils to invest in local services and communities. We are investing £11.5 billion in the affordable homes programme, delivering up to 180,000 affordable homes. The Bill includes provision for the Secretary of State to adjust the level of the second homes premium in the future, but we need to see the impact and assess the evidence before considering different arrangements in the council tax system.

Wales has been mentioned a couple of times. So far, only three authorities in Wales are using the 100% premium, and the 300% premium will start only next spring. The hon. Member for York Central said that it was not a sufficient deterrent to stop purchases. The truth is that we do not yet know that because it has not come into effect. We do not know how many authorities will use it and what its effects will be. She talked about these being small measures, but it is useful to talk about what it means in cash terms—pounds, shillings and pence. If, in a place like North Norfolk, we took a typical council tax band D property at roughly £2,000, going to a 300% second homes premium would mean a council tax bill each year of £8,120. In Scarborough, it would mean a bill of £8,386. In South Lakeland, it would be £8,242, and somewhere like Dorset it would mean an annual bill of £9,160. These are not trivial sums of money, and it is right for us to consider the impact of the initial measures of the 100% precept before we decide to go further.

--- Later in debate ---

[Neil O'Brien]

I think the hon. Gentleman has in a sense answered his own question, in so far as there are indeed multiple policy tools that we can use to tackle something that we regard as a very serious issue. We are absolutely seized of the fact that, in particular parts of the country, there are hotspots that need action.

I think hon. Members have heard the argument that I have set out. On this issue, we will have the power to go further in the Bill—even further than we are already going, which is pretty far—but we would like to see the evidence and make our plans in the light of evidence, rather than simply jump to that now, given the large sums of money involved.

Turning to amendment 63—

[Rachael Maskell]

Will the Minister give way on that point?

[Neil O'Brien]

I will just get on to amendment 63 first. Second homes are furnished properties for domestic use by someone who has their main home elsewhere. Owners may occasionally let that property out, but second homes are primarily for personal use. I think I understand what the hon. Member for Nottingham North is trying to get at with these amendments—he is thinking, I think, of some of the changes to use classes, and things like that, which happened in Wales. Again, that is something that we are actively looking at. It is a serious thing to look at.

On this amendment, there is a blurring of two different things. The hon. Member is bringing in questions about how long a second home can be let out before it should be treated as a business. He will be aware that, at present, where an owner intends to let their property out for short periods, totalling at least 140 days in the coming year, it will generally be treated as a holiday let and liable for non-domestic rates. Properties liable for non-domestic rates would not be in the scope of the second homes council tax premium. I therefore think there was a blurring of those two different things.

Alternatively, the hon. Member may be seeking to increase the thresholds under which a property is treated as a holiday let. Following consultation, the Government have recently taken action to strengthen those thresholds. From April 2023, holiday lets must have been rented out for at least 70 days in the previous year, on top of being advertised for 140 days, to be liable for non-domestic rates. The amendment does not change that, so I am not sure that it has the effect the that the hon. Gentleman wishes.

Additionally, the recent consultation on a similar proposal in Wales demonstrated that there is a real risk that genuine self-catering businesses, making an important contribution to local economies, may not be able to meet the new higher thresholds. I am sure that is something none of us would wish to see.

Broadly, the new rules coming into force in April in England strike a balance between requiring proof of letting and marketing and protecting genuine businesses in a variety of different circumstances. There are, of course, a wide variety of circumstances. We are providing for holiday lets operating in a range of different circumstances, not just those in the most popular tourist destinations. Our rules also provide for new businesses—those just getting going—rural lets, and those with more restricted letting seasons, while protecting the system against possible abuse. We will of course keep those thresholds under review, but we should understand the impact of the forthcoming changes before we take any further action.

To summarise, we are sympathetic to many of the points that have been made and we are taking action in this Bill on many of those points. On some of the points, we will have the powers to go further, but before doing that we will want to look at the evidence. On other issues, although we are looking at the boundaries between the short-term let and the second home, we think there are probably different and better ways to get into those subjects than the amendments. We therefore hope that the amendment will be withdrawn, notwithstanding the fact that we are actively looking at many of those issues.

[Rachael Maskell]

I am sorry that the Minister did not take my interventions, because I had some points to make in response to his speech. First, on the assumption that the properties used as second homes are in band D, many are in band B, and therefore will be paying £1,440 in council tax. The sums he talks about could be about half, if not more.

[Neil O'Brien]

The hon. Lady should recognise that that is symmetrical—some of the properties will above band D; therefore the numbers will be much higher even than the £8,000 to £9,000 figures I have been quoting.

[Rachael Maskell]

I am talking about the impact that is having on my city of York. Many of those properties are in band B—they are smaller properties that people purchase because available properties are few and far between. Even if it was band D, we are only talking about £1,852.45 council tax. It will vary across the country, and that is why giving more powers to local authorities to make those choices is important. The financial deterrent in York will not be there with 100% council tax. As a result, those properties will continue to be purchased and the measures will have little impact. That is why it is important that the Minister has an understanding of the breadth of challenges faced in different communities.

I am looking forward to the Housing Minister coming to York for a roundtable to look at the Airbnb situation. We have specific issues and it is about the pace with which they are occurring, in a holiday destination. That is why the pilot should not just be in rural areas but in cities that are holiday destinations, because it is having a massive impact. There needs to be a bit more reality in the Government’s analysis.

The other point that I wanted to take up with the Minister in an intervention was the benefit to tourism. I would like to see the evidence of that, and to know the basis on which he made that statement. In York we now have an unregulated tourism market, versus a regulated tourism market of the traditional B&Bs and guesthouses that are losing trade at such a rate that they are going out of business. That is having a negative and incredibly destructive impact on our tourism industry. These measures will not provide sufficient deterrence against the impact on our city.

I appreciate that the Minister’s analysis may be in particular areas of the country, but it will not touch our city. That is why I urge him to carry out more research and to understand the different impacts on different communities in the country. We need to ensure that my local authority has the ability to put the right deterrent in place at the right level in order to deter this extraction economy that is, bit by bit, destroying the context and fabric of our city, our industries and people and families. For that reason, I urge the Minister to reconsider.

[Tim Farron]

I appreciate that the Minister is referring to planning, which I mentioned as another means of controlling, limiting and even reducing the number of second home owners and holiday lets, to create a higher proportion of permanently occupied dwellings in communities such as mine. We will deal with that later in the Bill. He said that there are a variety of mechanisms —yes there are, so let us use them, and he is one of them.

It could be argued that planning is a slightly blunt instrument, but there is nothing more blunt than an unregulated and failing market that is killing my communities. The Minister speaks as if that is something that we have only just discovered. It is not; it has been going on for decades, and has become catastrophic in the last couple of years. As geographers and geologists would tell us, erosion takes places over a long time, but one day, when there is some really bad weather, a whole piece of cliff falls into the sea.

That is what has happened to the housing market in communities such as mine in the last couple of years. The situation is already terrible: 83% of homes in Elterwater are second homes. I can name lots of other places with similarly high levels of homes that are empty all year round. People have the right to own and visit their second homes, but their right compromises the right of a much greater number of people to own even a first home. Sometimes, rights and liberties clash, and that is when we have to decide whose side we are on. Are we on the side of people who have plenty of rights already, or the side of those who have nothing? I am on the side of people who have nothing and who want to have a home and make their communities vibrant.

As the hon. Member for York Central mentioned, the tourism economy and its leaders are not in favour of the situation, and they want action. They will say, “Yes, holiday lets are a key part of our tourism economy, but if you get to the stage when there are so many of them that there is no community left for people to visit, and the workforce cannot afford a home anywhere near to where they work, so that the economy just suffers and ceases to function, that is problematic.”

I appreciate the Minister’s sympathy, but it is not enough. The Government say that they are looking at and investigating this, and that the Housing Minister has his roundtables. That is all very welcome, but we know what the problem is and what some of the solutions are. The frustrating thing is that the Bill is a golden opportunity to do something about the problem, rather than kicking it into the long grass and stroking our chins while our communities die.

Levelling-up and Regeneration Bill (Ninth sitting)

Rachael Maskell Excerpts

Committee stage
Tuesday 5th July 2022 Public Bill Committees

The Minister said in his summing up of the previous stand part debate that the fact that an area could have levels 1 and 2 without a Mayor showed that it is possible to have devolution and a devolution deal without having to accept a Mayor. That is true, but the reality is that in order for communities to get the full powers—which will be assigned to many but not all—they have to accept a directly elected Mayor, and there is no good functional reason for that. It is important to recognise that that is a point not of functionality but of taste and choice by the Government.

[Rachael Maskell (York Central) (Lab/Co-op)]

My hon. Friend gets to the nub of the challenge. Although we as politicians can understand all this while sitting in this room, we need to construct a massive communication piece for our constituents across the country, so that they can understand the difference between the tiers of government and the powers that they can access. We are getting such a patchwork—I call it patchwork Britain—and our constituents are not able to grasp what is in, what is out, and where those powers and accountability lie. That could place us in a difficult situation, with a lot of work being duplicated as well. Does my hon. Friend agree that we need clarity not only on how this translates to people, but on the lines of accountability? I am thinking in particular of how people can give voice to what they want, because the proposals are even more confusing in that regard.

[Alex Norris]

I completely agree with my hon. Friend. There is an inevitability about this ending up as a patchwork, not least because we have inherited a patchwork today. But there is strength in that, too. If local communities want to access the fullest powers, they should have that chance to do so, but if they do not, they should be able to make that choice as well. We will not always be able to move at the pace of the slowest, as the Minister mentioned frequently on Thursday. One of the best ways to work around that and to avoid the local confusions about accountability that my hon. Friend talks about is for it to be something that the local community really wants. There will be greater understanding if it is something it has asked for. There will be much less understanding when it is a process that has happened to them—police and crime commissioners are a good example of that—rather than with them. As a result, the thing exists in splendid isolation and engagement falls, which is not good.

The Minister made a really good point about the desire, which I think is universally shared, for local decision making. He used really good examples of things that would have previously been operated by quangos and unelected bodies, and said that they should be operated locally by people with a local connection, a local mandate and local accountability. I completely share his view. I do not understand, however, why that has to be part of a new tier. Why cannot it be part of the tier used to create a combined authority? That, by definition, is closer to people because it serves more localised electoral wards? Again, I would be interested to hear about that in the Minister’s summing up.

[Rachael Maskell]

This is not necessarily for legislation, but it will aid us in our formulation. We need clarity on the end point. We are talking about tiers 1, 2 and 3, but is it envisaged that everyone will eventually have fully devolved powers regardless of whether they have a Mayor or not? How long would that journey take? It could be five or 10 years. Alternatively, if tiers 1, 2 and 3 were to apply to separate authorities, what would that mean for this place, because we would be legislating on behalf of just a few authorities, which does not seem right either? Understanding the end point will be absolutely crucial for how we progress the legislation.

[Alex Norris]

I hope that the Minister will explain what the end point is, because it is an interesting question.

In Thursday’s debates, I got a sense that my affinity with the White Paper, certainly in relation to this issue, is closer than that of the Government, and that is because I want everybody to be able to access the fullest range of powers, but to also have the choice of stopping short of them if they wish. That will be a matter for local conversation, but I do not think that we heard during Thursday’s debates that that is quite what the Government want, because they still want to reserve for themselves the provision of negotiating directly and separately. That does not enhance the approach; it only creates greater confusion.

I want to probe the functional reason why a county combined authority has to stop at level 2, while the distinct and different level 3 powers mean that an area has to be led—it is unavoidable and axiomatic—by a directly elected Mayor. I do not understand that. The one explanation of substance, as the Minister mentioned last week, is that police and crime commissioners must be directly elected. I am willing to concede that and will address it shortly, but I am unsure about everything else that is in column 3, as distinct from columns 2 and 1. They include defining the key travel route network; prioritising rail relationships; multi-year transport settlements; the long-term investment fund, which is the real prize in all of this, and I will cover it shortly; designing employment programmes; establishing development corporations; devolution of brownfield funding; partnership with Homes England; public health responsibility where there is interest in it; a precept in council tax; and the supplementing of business rates.

I put it to the Minister and the Committee that those could all be delivered by a combined authority. There is nothing so specialised or individualised that the powers should be exercised by an individual rather than by geographical partners who have chosen to collaborate in the collective interest, with each having derived a mandate from the local ballot box. I will reflect shortly on the important points about acting in consensus and being collegial, as we heard in our evidence from Mayor Andy Street. The way in which he talked about that was admirable. Why does that require a super-person at the head of it to make it go, if it is not what communities want? My contention is that there is no functional reason for that; it is a matter of choice and taste for the Government. And I think that the matter of choice and taste for local communities is as important—frankly, more important—than central Government’s choice and taste.

We should not lose sight of the fact that local councils deliver, too. I was looking at the latest set of The Municipal Journal awards, because it is nomination season for this year. And there is Plymouth and its culture-led recovery; Lancashire delivering during the pandemic; Swansea delivering through its social housing programmes; and Bromley driving health and care integration. All around the country we see local authorities of all tiers delivering for their communities every day. We fail the public conversation and we certainly fail the political conversation if we laser in on individuals who are Mayors, who are doing brilliant work, as I have said, and create that as distinct from councils, because councils themselves are doing great work. It would be better to see council leaders more visibly represented, whether in the media or in the public debate more generally, because up and down the country those local authorities are delivering for communities every day. And they have done that in incredible circumstances. They have been starved of money for 12 years; the context is significant cuts set against increasing costs. But they have adapted and come through for their communities, and their reward seems to be a new tier of local government whether or not they really want it.

I also put this to the Minister. The major, compelling case in relation to tier 3 is the police and crime functions, because, for reasons of statute, that necessitates a Mayor—although there is something undesirable in bad legislation from previous years tying our hands in the future. But that should be a point of choice for communities. If the final tipping point between having only a combined county authority, with basically all the tier 3 powers, and having a mayoral combined county authority is whether or not to take on police and crime functions, I put it to the Minister that the majority, if not all, would stop short and would choose the combined county authority without a Mayor taking on police and crime functions.

Let us be frank about what is happening here: this is about finance. It is always about finance, but this is especially so. This is about line 11 of table 2.3 on page 140 of the White Paper. This is about a long-term investment fund with an agreed annual allocation. All our communities desperately need and deserve this. They have seen it taken away, year on year, for 12 years, and now they want it back. At the moment, they are having to dance for it, through this ridiculous stream of beauty parades to try to get just a little bit of it back. And as we have said in relation to previous clauses, even the winners in those contests are losers, really.

However, this is a chance for communities to try to get some of the money back, and get it on an agreed footing, over a number of years. For those who are making decisions locally, that is really the No. 1 thing—the ability to have a sense of what is coming, so that they can plan and use it most effectively. But there is an asterisk at the end: rather than it being given to them by right, even though clearly the money is there and the Government wish to give it, it is given only if they choose a model of leadership that suits central Government rather than necessarily local communities. That is apparently a negotiation, but it does not look like one to me.

[Rachael Maskell]

My hon. Friend is coming to the nub of the matter. If we look at the issue of the police and crime commissioner or, as in the case of North Yorkshire, the police, fire and crime commissioner, we know that the funding of that post is separate in the way in which that works out in the funding formula, so there is no need to aggregate those particular issues if finance is the driving force behind it. I appreciate my hon. Friend’s point about the piece of accountability, but Tracy Brabin told us in her evidence that taking a public health approach to policing is not necessarily a PCC function per se, but a wider function of local governance in all its tiers and variations.

--- Later in debate ---

[Alex Norris]

I beg to move amendment 34, in clause 26, page 21, line 4, at end insert—

“(1A) The mayor may appoint more than one person to be a deputy Mayor, in which case references in this section to “the deputy Mayor” should be read as “a deputy Mayor”.

(1B) The mayor may only appoint as a deputy Mayor a person who is qualified to be elected and to hold office as the mayor in accordance with paragraph 7 of Schedule 2.”

This amendment would allow mayors of CCAs to appoint as many qualified deputy Mayors as they wished.

Again, this amendment deals with deputy Mayors; as the Minister has perhaps divined, this amendment shows where I am going with this issue. I am interested to hear the Minister’s views on it and I will seek his reassurances in relation to it.

As we have seen with existing combined authorities, deputy Mayors can fulfil a really important role in overseeing the different policy areas that lie within the remit of a combined authority. With this amendment, I want to probe the Bill and any guidance that follows from it, perhaps as set out in regulations. The intention of the amendment is to provide for multiple deputies.

Amendment 34 would allow Mayors of county combined authorities to appoint as many qualified deputies as they wish to. I believe that this amendment would improve the Bill and the functions of such deputies, by making it clear at the outset that they should exist, and that the post of deputy Mayor is a proper and senior role, which might be helpful in future.

As democratically elected officials, it is entirely right and proper that Mayors should have the power to appoint individuals to the position of deputy Mayor, should they wish to do so; again, as I said, I think that that is on the tin when we sign up for this model. We ought to trust a Mayor’s judgment and indeed respect their mandate to allocate such positions appropriately, matching individuals to portfolios that will maximise the delivery of good policy and improve the overall functions of the CCA. Obviously, should those decisions prove not to be good ones, there will be accountability.

Making it clear that the Mayor has the power to appoint these individuals will perhaps help them to find those individuals who want to take on the job, because—again—they are real and enshrined roles. This might not need to be in statute, but I would be interested to hear from the Minister the history of combined authorities in this area and how he feels they have evolved, and how he thinks this system will work in practice, either in regulation or in guidance.

[Rachael Maskell]

I appreciate the opportunity to speak on amendment 34. There are a few points that I want to make, building on the comments from my hon. Friend the Member for Nottingham North.

First, the title of deputy means that the deputy Mayor will deputise for the Mayor and, as we heard in the previous debate, they will not have a democratic mandate behind them. As a result, we are missing an opportunity to have greater democracy built in at local level, because deputy Mayors will be appointed and the person appointed may never have been elected to any tier of government, yet will carry huge responsibilities and powers. If, for instance, the Mayor is not able to participate in an activity because of serious illness or something like that, clearly the functions of devolved government will continue and unelected deputy Mayors will fulfil those functions.

In particular, I want to pick up on the issue of the number of deputy Mayors that there could be. Of course, there will be a range of roles that they could assume, at the determination of the Mayor. However, there is one thing that I really want the Minister to consider and respond to. In an age where we absolutely and rightly need to think about equality of opportunity, it is about the diversity of the team around the Mayor and the people deputising for the Mayor. For instance, could there be a job share in the role? The legislation does not signify whether there could or could not be a job share, but I think we would want to see that opportunity open up.

That would be more inclusive and would perhaps allow more people to participate in or take on such a role, or there could be a number of senior functions, which somebody working part time—I think we all know what “part time” in politics means—could take one function and somebody else could take another function, with both of them accountable to the Mayor. That could broaden opportunity and the diversity of the team, so that it is more reflective of the local community.

--- Later in debate ---

[Tim Farron]

This is an important issue. As the Government move to make local government less local and larger, with fewer representatives, they seem to be motivated by two things. The first is convenience—neat-and-tidiness. The second is a belief that it is popular to say to the public, “Look, we have fewer politicians,” but it is not popular to say to the public, “Your councillors and elected representatives will be fewer in number and they will represent so many more of you that you will never see them—and, by the way, the chances are they will be from a far less diverse range of backgrounds.”

Who deputy Mayors are, what backgrounds they come from and how diverse the range of people in those positions are is important and, as we have said in previous discussions, it is important that we analyse and research in a deep and broad way the impact of changes in local government on diversity, not just those in this Bill, but those that have taken place over the past decade or so. Anecdotally, it is obvious that if we move from a situation where each councillor represents 3,000 or 4,000 people to a situation where they represent 10,000 or 15,000, or where Mayors or deputy Mayors represent hundreds of thousands of people, we massively narrow down the kind of people who have the time, the freedom and the space in their lives to carry out those roles.

Fundamentally, to put it bluntly, we will end up with blokes—mostly early-retirement blokes.. That is definitely the evidence of my eyes. It will squeeze out people with family or caring responsibilities, people who have to work for a living and so on. That is what is happening. The Government should be aware of it and should be seeking evidence to see the extent to which that is happening for these roles and more broadly in local government, because local government represents everybody. When they know the scale of the problem, they can take action to alleviate it.

[Rachael Maskell]

I want to build on the points that have been made. One of the things we need to remember about deputy Mayors is that, unlike previous roles we have discussed, they are appointed, rather than elected. As we know, with appointments, there is always the risk of unconscious bias creeping in. Having transparency and accountability is therefore really important when looking at issues of diversity.

If we are creating a new tier of governance across the country, we do not want to repeat the old mistakes we have seen in this place or in local government, where the figures are quite shocking. We do not want it to be the end of this century before we see equality between men and women in local government. We have a lot of work to do to ensure that across our political systems and systems of governance, we are seeing and driving equality around all protected characteristics. I fear that if we are not putting these basic and rudimentary measures in legislation at this point, we risk at this stage of transformation slipping back into bad old ways. I would not want to see that. We are a country that embraces diversity and we should do that within our governance structures as well.

[Neil O'Brien]

Clause 26 requires the Mayor of a combined county authority to appoint a deputy Mayor from the constituent members, so the Mayor of a CCA could not make—to answer the question directly—a non-constituent or associate member a deputy Mayor. Constituent members will be nominated by the constituent councils and are usually the council leaders, who have been elected at local authority level. It is only right that the membership of the CCA is decided locally by those who best know their areas. CCAs and their constituent members will be independent of central government.

Amendment 35 requires the Secretary of State to report annually regarding certain demographic information about the persons appointed to be deputy Mayors of a CCA. We think that the amendment is not appropriate or necessary. CCAs, their Mayors and their constituent members will be independent of central Government. The Government do not believe they should require CCAs to inform them of the specific make-up of their deputy Mayors.

The Mayor, with their democratic mandate, will appoint one of the constituent members as a deputy Mayor. As a public and statutory position, it will be totally transparent who has been appointed as the deputy. I therefore urge the hon. Gentleman to withdraw his amendment.

--- Later in debate ---

Functions of mayors: general

[Rachael Maskell]

I beg to move amendment 51, in clause 27, page 21, line 28, at end insert—

“(1A) Where the Secretary of State makes provision under subsection (1), they must also publish a report setting out the impact this change will have on the delivery of levelling up missions.”

This amendment would require the Secretary of State to produce a report on the impact of changing the powers available to a mayor on the delivery of levelling up missions.

This amendment highlights the possibility of the Secretary of State’s regulating not only function, but who should undertake that function. Accountability is important, and I would argue that having clear lines of accountability is essential. However, clause 27 feels very much like the tail wagging the dog: the Secretary of State is micromanaging the Mayor, as opposed to letting the Mayor determine who would be best placed to undertake such functions. What functions they are is not clear in the Bill, and subsection (1) maintains the mystery, but I am sure the Minister will say how they will be determined in the devolution deal. However, who executes them should be at the discretion of the Mayor, as there will clearly be a diversity of knowledge and skill at the mayoral office level, and indeed in the wider team. I can understand the Secretary of State’s wanting the Mayor to be accountable for such functions, but to say that only the Mayor can carry them out is operational meddling from the centre.

When writing the amendment, and ahead of the sitting on Tuesday last week, I had understood that levelling up was to be a sustained agenda for tackling the grotesque injustice of inequality by identifying disparity and then using a range of solutions—through economics, transport, housing, spatial planning and so on—to bring justice to an area. I have to say that the Government’s explanation of clause 1 has now left me in doubt. I compare it more to the 1997 New Labour pledge card, with 12 missions rather than five and a tick box to deliver the Tory manifesto commitments that sneakily go beyond these and into an eight-year programme, but there is little to look beyond.

Aligning the purpose of tiers of Government is important if the country is to head in one direction. If everyone rows in one direction, we are more likely to get there, which is why it is important that there should be alignment nationally at CCA level and locally in addressing the ambition to rid this country of inequality—not least as we are the second most inequitable country after the US according to academics, including Pickett and Wilkinson. As we discussed on Tuesday, having levelling-up missions in central Government—including the sustainable development goals at a global level—and then differentiating priorities at a local or mayoral level means that we move forward more slowly than we would if we marched in step. Therefore, ensuring the delivery of missions nationally, and by Metro Mayors and their teams, gives us an opportunity to progress.

My hon. Friend the Member for Nottingham North is a lot closer to this subject than I am, but as he is working on Labour’s ambition for Government, which could come as soon as the autumn, I trust that we will want alignment of function with our national ambition to address the inequalities that our society presents. I am sure we will want a sustained framework that sets a path of ambition for 50 years rather than just eight, and that we will seek to account for the threads that run between the national and the local. I am sure that Labour would not want to place such control on politicians at the devolved level, and would trust them to deliver their work in the most appropriate way to achieve the outcomes that we long to see. The amendment seeks to achieve that by bringing alignment with those levelling-up missions and accountability behind them. That is why I would like the Government to accept it.

[Neil O'Brien]

We believe the amendment is unnecessary. The Secretary of State may confer functions on the Mayor of a combined county authority only if they consider that to do so meets the statutory test of

“improving the economic, social or environmental well-being”

of some or all of those who live and work in the area. As our 12 missions show,

“improving the economic, social or environmental well-being”

is at the heart of delivering levelling up. The process for conferring mayoral powers, including the statutory test, is already set out in clauses 42 and 43, for the establishment of a new mayoral CCA, and in clauses 44 and 45, for the conferral of functions on the Mayor of an existing mayoral CCA.

Regulations conferring functions on a Mayor will of course be considered by Parliament. The explanatory memorandum accompanying these regulations will explain why the powers are being conferred, the views of consultees and how the statutory test is met; Parliament will have ample opportunity to consider the impact of conferring any powers on the Mayor of a CCA and whether they will achieve levelling up.

In addition to the information provided by the explanatory memorandum accompanying the regulations being laid in Parliament, clause 2 requires annual reporting on the progress of the delivery of the levelling-up missions. That will include the achievement against our local leadership mission, which I mentioned earlier—namely that by 2030, every part of England that wants a devolution deal will have one, with powers at or approaching the highest level of devolution and a simplified local funding settlement.

--- Later in debate ---

[Rachael Maskell]

Coming to the nub of the issue, that ability to confer powers is certainly highlighted in clause 27(1). However, why does the Minister believe that the functions are exercisable only—I stress the word “only”—by the Mayor?

[Neil O'Brien]

Making some of the functions exercisable by the Mayor is at the heart of what we have been doing with devolution. If we are going to have the debate that we had earlier, I should say that the whole point of a Mayor is to have certain functions. If the hon. Lady is probing that, she is in a sense going back to the debate that we were having earlier today about why an area should have a Mayor.

The amendment is about a reporting requirement. As I have just set out, there are already substantial reporting requirements on why any powers are conferred on the Mayor. There is also reporting on progress on the devolution agenda, as part of clause 2 and the mission that we are pursuing, so there is already the kind of reporting that the amendment argues for. I hope that the hon. Lady will withdraw it.

[Alex Norris]

I very much agree with the thrust of the amendment; the case that my hon. Friend the Member for York Central made was very strong. It makes us think that these missions should be a central theme running through the programme of work. That programme may, at times, look different in different parts of the country, in terms of how it is exercised, but those fundamental goals, challenges and missions are a collective endeavour. That brings me back to my fear, certainly regarding the earlier parts of the Bill, that the Government feel they have to take all this on themselves. That is, first, an unnecessary level of burden and, secondly, not likely to succeed.

We accept that government is a very difficult business, and at times a fine series of balances. I would argue that this Government make things look particularly hard, but that might be an issue for a different day. However, for Ministers in this Department—one might except the Minister for Housing; there is, after all, a reason why they change every year—[Laughter.] I do not wish that for the Minister who is here today; I hold him in high regard and he can stay until the next election.

However, the rest of the Minister’s ministerial colleagues really could have a slightly lighter time if they just equipped, in terms of both money and power, local authorities to deliver on their goals and then let them get on with it. They would look brilliant; they would look like sensational, revolutionary change-bringers and they could have their feet up for the entire time. That does not seem like such a bad deal to me.

Instead, what we get is this over-centralisation and this lack of trust; it is all to be commanded and controlled from the centre. I am afraid that that just does not quite get things done. The amendment would actually push us into making a further step towards what we hope Ministers want, which is to get the responsibility, the power and the opportunities out to communities, under that shared framework of goals. That would be a positive thing, and there is an awful lot to recommend the amendment.

What the Minister said about the explanatory memorandum is welcome, but I say again—this is a theme throughout all our debates—that the Government have not been able to produce an impact assessment for the Bill, and we sit here, day after day, talking about it. We are led to believe that the Minister has a strong belief in the impact of Mayors, but he cannot evidence that in a conventional way. We have heard a commitment from the Minister. When the decisions are being made on regulations for setting up combined county authorities, I hope that we will have the right information to explain and understand the impact of the decisions that we make.

[Rachael Maskell]

I want to make a couple of points in response to the Minister’s comments. From what is in the legislation and the Minister’s words, it feels as though central Government are just not willing to let go and are still trying to hold on to something without seeing the full devolution: “You can have those powers, but we are going to make determinations about them.” In time, I trust that that will settle and the Government will have more confidence and trust in the system of devolution that they are setting out, but it feels as though they are trying to hold the line and keep control.

More worryingly, as we move through the Bill clause by clause, it seems that the agenda around levelling up is unravelling rapidly. That is a deeper concern if we are going to address the real injustices that our constituents face. They desperately need the Government to step up to the plate. I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Clause 27 ordered to stand part of the Bill.

Clause 28

Procedure for direct conferral of general functions on mayor

[Alex Norris]

I beg to move amendment 36, in clause 28, page 23, line 40, at end insert—

“(2A) Where the Secretary of State makes regulations to which this section applies they must notify all other mayoral and non-mayoral CCAs of this.”

This amendment would require the Secretary of State to notify all CCAs if they make regulations directly conferring general functions on a Mayor.

This is a return to a common theme. We are desperately seeking to encourage the Government to stay true to the White Paper so that all communities have access to the fullest range of powers. The clause provides a process, via regulation, for powers to be directly conferred on the Mayor by the Secretary of State following agreement with that Mayor. When that happens and a Mayor suddenly gets a new and novel power, we want a requirement on the Secretary of State to notify all combined county authorities that that has been done. I will not repeat the arguments that I have made previously, but we want that so that other authorities might seek to take on similar powers, if that is what they would value for their community.

[Rachael Maskell]

My hon. Friend’s amendment is really important. We know that London holds the power and wealth of our nation, but we are talking about authorities around the country, the CCAs, that are more distant from London and where there is greater inequality, poverty and lack of opportunity. Not even to report on powers will mean more divergence rather than addressing the inequality, so we could be in a worse state when trying to address the disparities.

--- Later in debate ---

[Alex Norris]

I beg to move amendment 37, in schedule 3, page 206, line 34, leave out paragraphs (b) and (c).

This amendment would prevent the Secretary of State from conferring only partial Police and Crime Commissioner functions on the mayor.

The fun is always in the schedules, is it not? I like to get into the detail and understand some of the reasons why certain approaches have been chosen. Schedule 3 introduces the arrangements that allow for Mayors of combined county authorities to take on police and crime commissioner functions in the way that the Minister has set out. As I said, this is a complex matter, particularly due to geography. I do not think the Minister quite addressed the complexity issue. Again, I would be interested in his thoughts about how that is likely to work in practice, certainly for footprints that clearly do not match up with police force footprints. That argument has been made already, so I will not repeat it.

The thrust of amendment 37 is to not make the devolution of those functions any more complicated than it already is. Paragraph 2(1) of schedule 3 allows the Secretary of State to

“by regulations provide that the mayor may exercise in the CCA area—

(a) all PCC functions,”

—that is all the functions, as the Minister has described. As I say, that has been done elsewhere, and it seems to be beyond debate. However, I want to probe sub-paragraphs (1)(b) and (1)(c), which provide for

“all PCC functions other than those specified or described in the regulations, or…only those PCC functions specified or described in the regulations”

to be devolved. Basically, the Secretary of State can by regulation devolve partial police and crime commissioner powers. First, that is unduly fiddly, and it might create an unwise divergence between Mayors. Either an individual has police and crime commissioner functions devolved to them, or they do not.

[Rachael Maskell]

I too am curious about the measures and the inclusion of paragraph 2(1)(b) and (c). My concern echoes the debate we had earlier: how there is an obligation under the Bill to have an elected Mayor, because they are taking on and subsuming the role of the police and crime commissioner. It feels as if here we see the role chopped up into little pieces and, as a result, only a partial role taken on. If so, why would there still be the obligation to have an elected Mayor?

Levelling-up and Regeneration Bill (Eighth sitting)

Rachael Maskell Excerpts

Committee stage
Thursday 30th June 2022 Public Bill Committees

[Rachael Maskell (York Central) (Lab/Co-op)]

Although it is essential to have an equality impact assessment to establish a baseline, it is also vital that all the work of the CCA puts everything through the prism of an equalities impact assessment too. If this amendment is not adopted, will it be appropriate to talk about having some form of equalities scrutiny within the body in order to ensure that all policy and decision making meets those equality objectives that we on the Opposition Benches share?

[Alex Norris]

Yes, absolutely. I remember one of the changes we made when I worked in local government. Remember, that was just one public body—one council—with many departments, just as national Government has many Departments, but in combined authorities we are talking about many organisations coming together to collaborate. We did not truly understand the cumulative impact budget decisions were having on individuals, particularly individuals with protected characteristics. It was likened by the individual who asked for the change as a sort of chopping away at a stool, with the legs all being chopped off on different sides by different departments. We did not understand that that was happening and that the cumulative impact was very significant for those individuals.

We need to find a way, whether through this amendment or through the thoughtful suggestion made by my hon. Friend the Member for York Central, to add this into the work of the combined county authorities so that they understand the collective impact their decisions will have. The levelling-up agenda gives me hope that the argument that it is not for Government to resolve these matters and that even if they did they probably would not do a good job no longer stands. Clearly, we no longer think that is true, which is a welcome change of tune. It shows that inequalities are not inevitable or unalterable, and that it is the role of the state to take the field and seek to do something about it.

These sorts of inequalities manifest all over the place. Even in the wealthiest communities, which we may be least likely to think are deserving of levelling-up funding, statistics regarding disability employment are still very challenging—I do not think there is any part of the country where they are not very challenging—but such communities are well placed to motor ahead on levelling up and perhaps do much better.

I hope that is the core on which these county combined authorities are operating. Happily, the Government are introducing overview and scrutiny arrangements in schedule 1. Now we must ensure they have the right information to work with. This amendment is one mechanism to do that. In the Minister’s response I hope to hear that if the amendment is not adopted, there are other ideas and other ways in which the Government think that can be done.

--- Later in debate ---

On the tit for tat on names, that would be highly undesirable and would make leaders look a bit silly. If we are worried about a tit for tat on names, that might apply to all the functions that they offer. There is going to be an element of variance and change—changes of political control do lead to change. In places where there is close contest, that can lead to change both ways frequently. It can look a bit silly for a council to go between the strong leader model and the committee system—and back and forth again. That does not seem very wise to me, but that is the nature of democracy and their choice.

[Rachael Maskell]

I am thinking about the work of the Electoral Commission in setting constituency boundaries and names, which goes through the adoption process without requiring a two thirds majority. Is the clause not an inconsistency, rather than a consistency, with what happens elsewhere?

[Alex Norris]

Yes, I think so. There is a role for supermajorities, but as an exception and with strong cases. I am not sure this provision has met that test. I have a version of my speech that included a number of paragraphs about my views on the boundary review, and the sad extension of constituency titles, which seems to be inexorably taking us to five-word constituency titles. I thought you would not thank me for including that, Mr Paisley, but at least I have now put it on the record, so I am grateful to my hon. Friend the Member for York Central.

I will not press the amendment to a Division because I do not think it is a totemic issue. However, I hope we can seek to use supermajorities as an exception rather than the norm. If nothing else, this has been the hors d’oeuvre for a later debate—the real substance—which is what to call a mayor when we do not want to call it a mayor. Colleagues have that excitement ahead of them. I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Clause 15 ordered to stand part of the Bill.

Clause 16

Local authority functions

--- Later in debate ---

[Tim Farron]

I think this is where we get to find out who devolution is for. Is it for the benefit of Whitehall or communities? I have no desire to see—in fact, I have a revulsion to the idea—contrived symmetry from the centre. I am very happy for there to be asymmetrical devolution, so long as that is the choice of the people within those communities. This is where we get the opportunity to see whether this grassroots taking back control from the centre or the centre, in a rather patronising way, throwing a few crumbs to the local community.

People living in Cornwall, Northumberland, Devon and Cumbria have the same rights and the same expectations about the quality of services as people in Manchester, the west midlands and London—no more, but definitely no less. It would therefore seem very wrong if services and powers that are devolved to London and Greater Manchester are not devolved to Cumbria, or at least are not offered to it so that the community can choose whether to take them.

This is about not just the powers that should be devolved, but the preconditions that the Government choose to impose. Obviously, we are talking about Mayors, or Mayors by any other name. I have absolutely no problem with communities that want a Mayor having one as part of their devolution deal, but I have an enormous problem with the Government saying, “You can have these powers, but only if you have the form of local government that we tell you to have.” That is not devolution. It is certainly not what people in my part of the far north-west of England want, and I suspect it is not what people want in other parts of the country. This is an opportunity for the Government to declare that devolution is for the people and not for their own convenience.

[Rachael Maskell]

I wholly concur with the previous two speeches on amendment 26. We have to think about the people in our communities, and if we ask any of them who currently does what in governance terms— whether it is Parliament or local councils—they will often struggle to identify exactly where those powers rest. When we introduce another tier of government, people need clarity about it. Particularly if they are living on the borders of the new CCAs, they will be looking one way and saying, “Well, they have powers that we haven’t got here.” We have to be careful that we do not introduce confusion into our governance and accountability systems.

I therefore think that the point about having a more à la carte approach is right, as devolution grows and we get used to new functions of government, so that we can see what can be achieved. If the Government dictate limitations on the ability of authorities to exercise their powers in one area, and a neighbouring authority has those extensive powers, undertaking partnerships between two CCAs could be quite challenging, and it could also limit the opportunities.

We have to look further ahead. We are in this process of development and evolution, which is fantastic, but we do not want to end up with patchwork Britain. We do not want Parliament to be left legislating over a small number of authorities because not every devolved area and CCA has those powers. We could end up with two or three CCAs without the powers that all the others have, and the national Parliament will then have to legislate over certain functions. That seems ludicrous in itself. We would not see fairness in patchwork Britain. We will talk again about the postcode lottery that we see emerging. The areas of greatest deprivation are probably those that would see the fewest powers. We have to think more strategically about how we apply that. That is why the amendment does justice to the issue. It enables the CCAs to take on these additional powers, but it does not mandate that.

It was clear from the presentations from the Mayor of the West Midlands, Andy Street, and the Mayor of West Yorkshire, Tracy Brabin, that the M10 Mayors are working incredibly closely together. They are inspiring one another to address the challenges of where they can take devolved powers, and that presents opportunities to the people they represent. That will of course be an evolving picture as more people come into the M10. I guess we are heading towards the M20, or wherever it may end—not the M25, as Members are suggesting, because it would simply go round in circles.

We need to make sure we are not seeing a denial in the differentiation of the powers that emerge. Ultimately, this is about the impact that they have on locality and local areas. It is really important that we think about where it could travel to. It clearly has implications for this place—its future and what it does—but we also want local decision making. I think there is a consensus across the House that we want decisions to be made closer to people, and if we devolve certain opportunities to some areas, the intersection of those powers can create more than the sum of their parts, which is something that really stood out from the evidence we heard. There could be a real benefit in devolving those powers, because we do not want a metro Mayor or a CCA coming back to Parliament every few years, saying, “I need more powers. We need more primary legislation looking at this issue.” We want a deal that is underpinned by the flexibility to drive change, and we will see that change come about through shared practice.

--- Later in debate ---

[Neil O'Brien]

We have had asymmetric devolution in this country since 1998, when the Labour Government introduced devolution for London, Scotland and Wales, but not the rest of the country. In 2010, when we came into power, London was the only part of England that had a devolution deal; that was great for London, but the problem was that other areas of the country were not enjoying the same advantages. It was not even the case that there was symmetry between Scotland and Wales: there were differences in the name of the legislative body—Parliament versus Assembly—and in tax-raising powers, so the revealed preference of the last Labour Government was to have asymmetric devolution. I think that was justified by the different levels of readiness.

[Rachael Maskell]

We are all learning on this issue, but does the Minister acknowledge that that approach has brought us a call for an English Parliament from some quarters and, from other quarters, a greater propensity to want independence? We have to be careful that we do not break up the Union, or the federation, by what is being created in this Bill, and ensure that we maintain those ties that still bind us together.

[Neil O'Brien]

I do not want to critique the decisions of the last Labour Government; I am merely pointing out that there was an acceptance of asymmetric devolution throughout that time, for all kinds of reasons of practicality.

The hon. Member for Nottingham North said earlier in the debate that the default should be alignment. We fundamentally do not agree with that, for reasons of localism; it is not what every local area wants. He also asked why these devolution deals are different, and mentioned two examples: the West of England not having a precept, and Cambridgeshire and Peterborough not having development corporations. The reason why those areas are different from the others is that that is what local people wanted, and it is what local leaders would agree to. That was their choice. That is localism, and that is generally the case for most of the variations in devolution agreements. It is about what local political leaders wanted to agree to—it is fundamentally about localism.

However, that is not the only reason why devolution agreements differ between areas. I will be candid: there are things that make it possible to go further in some areas than in others. It is partly about geography; does an area’s combined authority—the CCA, potentially—fit with the governance of the thing for which the area is trying to devolve powers? Is there geographic alignment, or will it take time to achieve in respect of various public services? Are local partners—perhaps the NHS, in the case of Greater Manchester’s health devolution agreement—ready to work with an area? Has an area been working on it for a long time prior to the devolution agreement?

In some cases, there is a tie to whether an area has a directly elected leader. We are clear that we prefer the direct accountability and clarity that comes with the directly elected leader model, which is why the framework we have set out enables places to go further if they choose to go with that model. In some cases, in respect of things such as the functions of a police and crime commissioner, we are not legally able to devolve powers to someone who is not directly elected.

I said earlier in the debate that, fundamentally, we will not make progress and the devolution agenda will not make progress if we have to move in lockstep—if a power offered to one place has to be offered to all. To quote the great Tony Blair,

“I bear the scars on my back”

from negotiating all these devolution agreements in Whitehall. It is no small thing to get elected Ministers of the Crown to give up their powers to people in different political parties. It is the case that different places are ready to do different things, and it is important for them to do different things.

It is not the case that there is no framework—a framework is set out on page 140 of the levelling-up White Paper—but it is clear that there will be variation within that. It is a basic framework. Indeed, the White Paper includes principle three, on flexibility:

“Devolution deals will be tailored to each area”—

they will be bespoke—

“with not every area necessarily having the same powers.”

It does, though, set out what may comprise a typical devolution deal at each level of the framework. It is clear from our experience that we can add to devolution deals over time, that areas will have more ideas about the things they want to pursue, that they will get ready to do new things and that we can go further over time. It is an iterative process, not a once-and-for-all deal.

The hon. Member for Westmorland and Lonsdale asked who this is for—is it for Whitehall or for the people? I put it to him that our flexible model is for the people, not for Whitehall. Tidy-minded Whitehall officials would love nothing more than to have a rigid framework in which “Each of these things must mean exactly the same. If one’s got it, everyone must have it. We’ll put you in a grid. Oh, the matrix is not right!” I assure the hon. Gentleman that Whitehall would love that. It would absolutely adore that—it is what Whitehall would fundamentally like. Our approach rejects that bureaucratic approach and instead gives people what they want locally and what they are ready for in an area. Doing that enables us to make iterative progress.

I am not having a go at the Opposition, but we inherited a situation in which there was no devolution in England outside London. We have been able to make progress partly because we have been able to work iteratively. If we had said in 2014, “If you are offering these new and novel powers to Greater Manchester, you must offer them to every other single place in England,” we would never have got anywhere. It is as simple as that. We have to work iteratively, and by doing so we have made good progress.

--- Later in debate ---

[Rachael Maskell]

I beg to move amendment 50, in clause 19, page 15, line 37, at end insert—

“(2A) Regulations under subsection (1) must require that all CCAs impacted by a transfer of functions under this section collaborate on all routes that cross relevant CCA boundaries, including—

(a) any changes to routes,

(b) any changes to fares, and

(c) the formation of new routes.”

This amendment would require Combined County Authorities with an Integrated Transport Authority to work collaboratively on fares and routes that cross CCA boundaries with other CCAs impacted.

There must be recognition in the legislation of the challenges relating to transport routes that cross CCA boundaries. Bus routes, for example—but this could also apply to trams—often go beyond the political boundaries that we are debating. Collaboration between authorities is crucial to achieve the inter-area connectivity that is required. Rather than having long-protracted negotiations, we should encourage collaboration; it could be transformative for bus routes, fares, services, infrastructure, and even ticketing arrangements. Certainly, devolved authorities are taking inspirational initiatives to develop their transport system. They could, however, be in proximity to a CCA that takes a different approach.

The office of the Mayor of London, which is trying to extend routes, has long pleaded on this subject. The radial routes from London do not stop at the boundary of Greater London; they cross into the suburbs. Of course, the transport systems in the suburbs can be very different. A lack of flexibility at the border could have a real impact on who is able to travel across the borders. Seamless travel will encourage more people to take public transport, and to engage in active travel.

We also need to think about where there can be smoothing across boundaries and jurisdictions on issues such as fares. There can be deals on fares. I think that we are all excited to see Andy Burnham’s step forward for Manchester in his new deal on transport, how that will achieve modal shift, and draw people out of cars and on to public transport, which is absolutely necessary if we are to address the climate challenges ahead of us. Clearly, though, there will be implications for anyone who lives just over the boundary.

When it comes to transport routes, is not just what happens when a person is on a piece of infrastructure or mode of transport that matters; it is how they get there. Seamless travel is important. There will be negotiation, but will negotiation with private bus companies will be protracted? That could be what ends up happening, because a private bus company has a profit motive. It may say, “We prefer not to run that route, because we are on a different system. We are looking at profitability, so we will not send a bus into the neighbouring CCA.” A devolved authority may have objectives—on issues such as air pollution, connectivity and economic opportunity —that the neighbouring CCA does not benefit from; also, a CCA may have a model that involves a private transport provider that does not have any interest whatever in those things. The amendment considers how we achieve sound integration between the different CCAs to make sure that there is no pain at the boundaries, which is often the case.

In terms of other modes of transport, we should consider the investment in trams. In the UK we have a small prevalence of tram use compared with other European countries, but their use can be transformative in modal shift. If we see trams as the arteries of a transport system, the capillary routes that feed on to that will determine how somebody travels. Better bus connectivity at the end of a tramline is an example. In a rural CCA adjacent to a more urban-based CCA, there could be a determination that buses stop at 6 o’clock at night, whereas people want a tramline to run into the evening, because that is of benefit to people on the route. The availability of connecting buses may well have an impact on the establishment of a tramline and determine whether it is viable and value for money. Such discussions will be very important.

Such connectivity is also important to active travel. As a keen cyclist, I am excited about the Beelines network that is being developed in Manchester. That is transformative, and I want to see active travel opportunities available right across the country. For that type of travel to truly have a benefit, however, one must have good infrastructure to feed cyclists into the Beeline. That could make the difference between people jumping into their cars or engaging on those active travel routes. That choice will have an impact on the environment of, say, Manchester, should people drive into the city centre, compared with the environment of a neighbouring CCA, perhaps more rural, where there may be cleaner air, but not necessarily the same transport benefits.

We must think of the end-to-end journey. The amendment highlights that consideration, and is designed to achieve that better connectivity. That is the big challenge across our transport system. Whether we are discussing routes, fares, or future infrastructure, making those wise choices can make a real difference to personal choices about which mode of transport people select. I hope that the Minister sees the value in the amendment.

[Alex Norris]

I support my hon. Friend’s excellent amendment. The clause could be described as a “people before boundaries” clause. My hon. Friend referred to pain at the boundaries, which is always going to be a challenge and we must draw a line somewhere. It is right that there should be an expectation that where such lines are drawn, however, there must be an understanding that they are administrative boundaries set by us, rather than the public. It is our duty to seek to do whatever we can—or in this case, the leaders of CCAs to do what they can—to ameliorate the impact of such boundaries. In this case integration would obviously be a good idea, for the very benefits that my hon. Friend has outlined. I am very keen to support the amendment.

--- Later in debate ---

[Neil O’Brien]

I agree with so much of what has been said by Members on the Opposition Benches. I agree about the importance of co-operation across boundaries. I have been very pleased to see the way that the West Midlands Combined Authority has improved transport even beyond its boundaries. Places that are negotiating devolution deals with us at the moment, from the south-west to the north-east, are thinking about that very actively.

I agree with what the hon. Members for Westmorland and Lonsdale and for York Central said about the importance of integration. It is one of the reasons that we have been keen to support bus franchising where people want that. I remember it being advocated to me nearly 22 years ago by the hon. Member for Blackley and Broughton (Graham Stringer), who is a former leader of Manchester City Council. He spoke about the advantages of integration through having that London-style bus franchising, which we would be able to approach in different ways through devolution.

Our approach is to achieve voluntary co-operation, rather than setting a requirement or duty to co-operate. We always try to encourage co-operation wherever we can—indeed, to the point of the hon. Member for Westmorland and Lonsdale revealing that he had encouraged it across the England-Scotland border, through the wonderful borderlands growth deal.

[Rachael Maskell]

Will the Minister acknowledge that many of those negotiations can take a significant amount of time, and can be not only incredibly painful when it comes to making progress, but at times quite conflictual, because there are conflicting interests at play, depending on the model of bus ownership and franchise that is operating?

[Neil O’Brien]

I absolutely agree. That is one reason why we are resisting the amendment—there are profound choices and it should be for local areas to make those choices.

The devolution framework absolutely recognises the importance of neighbouring authorities working together. Clearly, that is very important in CCAs being able to deliver their transport functions properly and to exercise control over local transport plans, and specifically to use these powers and controls to deliver high-quality bus services, as the hon. Member for York Central and the hon. Member for Nottingham North have said.

The amendment is unnecessary. There is already extensive collaboration between local transport authorities. Under current arrangements, there is a formal duty to co-operate, but not in the way that the amendment proposes. The current framework for local transport planning and guidance issued following the national bus strategy recently encouraged the joint development of bus service improvement plans. Examples exist in the West of England Combined Authority and North Somerset—two different areas—and also in Lancashire, with Blackburn and Darwen again working across the boundary of two top-tier local authorities. Those examples offer some further positive models of collaboration between local transport authorities in relation to planning local bus service improvements, which will include fare levels and service patterns, and all the other key issues.

We would expect CCAs to take the same collaborative approach with their neighbouring authorities, and I have to say that all the signs from the discussions we have had so far suggest that they want to take the same collaborative approach. We therefore feel that the existing mechanisms are sufficient to deliver and ensure the co-operation between authorities that we are talking about. As such, this amendment is unnecessary.

I hope that, given those assurances, the hon. Member for York Central will withdraw the amendment.

[Rachael Maskell]

I thank hon. Members for their contributions. I think we have to recognise that we are on a journey around the devolution of our transport systems. What came across powerfully in the evidence sessions last week was how transport is the biggest issue the devolved areas are currently dealing with. Therefore, transport is the dominant economic opportunity for the future. My friend the hon. Member for Westmorland and Lonsdale made important points about integration being essential. Encouraging more services is at the heart of the issue. The more services we have, the more of a modal shift we will see.

My hon. Friend the Member for Nottingham North spoke of how this is about people before boundaries. These boundaries, which we will be debating more, do get in the way of conversations about natural people flows, which are crucial to ensuring that communities work in the most efficient and appropriate way. I am happy to withdraw my amendment, but I hope the Minister will reflect on the comments made in this debate and continue the conversation, not only through the devolution process but also with the Transport Secretary to ensure we get better connectivity across our transport system. I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

[Alex Norris]

I beg to move amendment 27, in clause 19, page 16, line 2, at end insert—

“(3A) The Secretary of State must prepare and publish an annual report setting out—

(a) any differences in integrated transport authority functions conferred on CCAs,

(b) the reasons for those differences, and

(c) the extent to which economic, social and environmental well-being factors were considered in coming to decisions to confer different powers.”

This amendment would require the Secretary of State to publish an annual report explaining any differences in integrated transport authority functions conferred on CCAs.

--- Later in debate ---

[Tim Farron]

I will be brief. As the hon. Gentleman has said, these issues have been discussed previously. It is worth bearing in mind that some of the infrastructure—highways infrastructure in particular—might seem to be of local consideration only, but they are of national strategic importance. I am bound to pick on my own area.

Things that are under the aegis of Highways England, which are national roads, so to speak, and supported directly by the Department for Transport, are one matter. Some of the strategic road network, the layer down from that, which is looked after by local authorities, is clearly of national strategic significance. The A591 in my constituency links the motorway from junction 36 right up to Keswick and back to the north lakes. It is not part of the national strategic network belonging to the English highways agency.

That is absolutely fine, but we need to recognise that if a local authority or a collection of local authorities is going to have responsibility for such an important road—the main arterial route through the middle of the Lake district, which is the biggest visitor destination in the country after London—it needs to be adequately resourced. It may need to be resourced across more than one CCA, depending on what boundaries are considered. This is important because I want to make sure the Government are held to account for the resource that they do—or do not—provide CCAs, so that communities such as mine are not basically providing and maintaining a road for 20 million visitors on whose behalf the Government contribute nothing.

[Rachael Maskell]

This is an important amendment. Having served as a shadow Transport Minister, I know the importance of getting a system in place to ensure connectivity and reliability, as well as modal shift. These amendments would hold the Secretary of State to account through the requirement to set out the reasons for any inequality in the transport functions conferred on CCAs. Ultimately, the public have a right to understand the Secretary of State’s thinking on such matters, particularly as it could well have an impact on them.

As we will debate further as the Bill progresses, the national development management policies will be making particular demands around transport infrastructure in our country. I am sure that will be a major area of contentious debate, but if we are looking at some authorities having the means to address their local transport system and other local authorities not having equal means, that will create even more discontent and inequality.

Ultimately, our transport system is a national system because our connectivity across the country has to connect—that might seem an obvious point. My fear is that this inequality could mean a more stop-start approach to transport planning, as opposed to the smoothing that we know the road and bus industries—and indeed the transport sector as a whole—are calling for. Accountability for any differentiation of powers is important, and that is what these amendments call for. It is also important to understand the Secretary of State’s thinking about how they are putting the transport system together across our country.

I appreciate the Minister’s role, but what happens in what I described earlier as the capillary routes, as opposed to arterial routes, is of equal importance, because people will not maximise the opportunity of those routes if they cannot reach them. There has to be joined-up thinking that stretches beyond the remit of the Minister, but which is crucial to the Bill.

[Neil O’Brien]

These amendments would require the Secretary of State to publish an annual report setting out any differences in transport, highway and traffic functions conferred on CCAs, the reasons for those differences and the extent to which economic, social and environmental wellbeing factors were considered in coming to decisions to confer different powers. The reports that the amendments seek are unnecessary as the information will already be available. The hon. Member for Nottingham North said that there should be an account, and I am happy to say that there will be.

Following a successful devolution deal negotiation, the devolution deal document and councils’ proposal will set out any transport and highways roles that the CCA will have, the intended outcome and the difference these will make to the area. Whatever functions to be conferred, including any on transport and highways, will be set out in regulations, which are considered by Parliament and must be approved by Parliament before they can be made. Parliament will have an explanatory memorandum explaining which transport powers are being conferred, and why, the views of the consultees and how the conferral meets the statutory test of improving economic, social and environmental wellbeing—the exact set of issues that the Opposition are keen to hear more about.

There will be differences, as I have said, to reflect the bespoke nature of devolution deals that address the needs of an individual area, seeking to maximise local opportunities to drive levelling up. At the moment, there are no integrated transport authorities in place, but the possibility of establishing one remains. Parliament will have all of this information available through other means; this amendment would create unnecessary bureaucracy.

Levelling-up and Regeneration Bill (Seventh sitting)

Rachael Maskell Excerpts

Committee stage
Thursday 30th June 2022 Public Bill Committees

[Tim Farron (Westmorland and Lonsdale) (LD)]

It is great pleasure, Mrs Murray, to serve under your guidance. I will say a brief few words, broadly in support of what the hon. Gentleman said about consultation.

Devolution is not devolution if it is done on the terms of central Government, by definition; nor is it really devolution if it involves hoovering up the functions of lower-tier councils. It is not devolution if it is done for the convenience of people in Whitehall and does not involve listening to the people in the communities directly affected. Setting up combined council authorities may indeed be an important building block in delivering what the Government see as levelling up, and I can see the merits in it, but although consultation needs to happen—it is right that it is written into the Bill—it also needs to be meaningful.

Twelve months ago, the Government had not settled on any kind of reorganisation for Cumbria—I speak from not bitter, but rich, personal experience—and we are now two months into a new authority, which was elected at the beginning of May and on which, I am pleased to say, the Liberal Democrats have a majority. Westmorland and Furness Council was but a twinkle in the Secretary of State’s eye only a year ago, however. There was a consultation, but less than 1% of the population of Cumbria responded to it. Generally, most people were of the view that the proposals were meddling top-down reorganisation for national, rather than local, purposes.

Remember that Cumbria itself was established in the early 1970s, when the historic counties of Westmorland, Cumberland, Lancashire over the sands, and the West Riding of Yorkshire were put together. That county kind of worked, but someone who went to Sedbergh would have to talk about cricket in a very different way from if they went to Grange. The reality of local identity is hugely significant. A consultation in which a few engaged people fill in a form on the internet is not consultation. It is a consultation in name, but the majority of people are not actually listened to.

If consultation is to be formally included in the Bill, that is fine, but I want it to be deeply embedded so that communities actually get a say about the boundaries that may be formed by any new combined council authorities. I am fortunate that every single blade of grass in my constituency is parished, but not every part of the Westmorland and Furness Council area is parished. It is important that voices in each part of the new authorities are able to express the views of those communities.

Consultation is vital, but it should be more than just a word. Arguably, as a society, we have never been more consulted but less listened to. Let us make sure not just that consultation is included in the Bill, but that it is ingrained in the practice of developing the new authorities, so that communities’ cultural identities are reflected and the wishes of the people on the ground go towards building those authorities, which should be built not for the convenience of Whitehall, but for the empowerment of communities in Cumbria and across the rest of the country.

[Rachael Maskell (York Central) (Lab/Co-op)]

I, too, will speak in favour of the amendments. Consultation is so fundamental to the Bill because it is important that the power of our communities and the public be on a level with that of Government. The public bring the expertise and know the nuances of their communities so well that they can advise Government on what is best for them. That expertise can be overlooked in a top-down approach. It is essential that there is proper consultation—not just information—because being able to participate will give people agency in the democratic structures that will be developed.

--- Later in debate ---

[Robbie Moore (Keighley) (Con)]

I appreciate that we are just on clause 7, but has the hon. Lady considered clauses 42, 44 and 45, which provide the means for public consultation?

[Rachael Maskell]

I am grateful to the hon. Gentleman for highlighting why it is so important to sew that principle right through the Bill to ensure public consultation—including in clause 7. It is an important principle which is why I hope that the Government will accept the amendments.

[Mrs Emma Lewell-Buck (South Shields) (Lab)]

With respect to the hon. Member for Keighley, clauses 42, 44 and 45 do not relate to consultation at the initial stage of CCAs, but that is what we debating now, is it not?

--- Later in debate ---

[Rachael Maskell]

My hon. Friend is absolutely right. We want communities to be involved in their own destiny before there is any ink on the paper. That consultation and working through the stage of each process to bring the CCAs together is also important. That is why we want that process to be embedded in the Bill.

We have recently been through a local government reorganisation in North Yorkshire, and that has been quite a painful process for many of the district councils as they have come together to form the new North Yorkshire County Council. York was part of the initial consultation and because we had a voice, we were able to stake our claim not to be brought into that authority. We argued that we had our own identity, going back to King John and the charter that established York as a city. If we had lost that identity, we would have lost a significant place on the global stage. The original proposal was for York to disappear and to be replaced by a North Yorkshire East and North Yorkshire West model. If the identity of such a significant city had disappeared, there would have been no heart to Yorkshire, nor any identity. That is why I am glad that we had proper consultation about that process, and that is why it must be replicated in this legislation.

To Labour, the people’s voice really matters, and we want to see people’s voices coming through so that they are involved. Nothing in a Government agency should be superior to those we represent. I trust that the Government will reconsider the amendments and see the opportunity that they present to them, if not to the people.

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Neil O'Brien)]

It is a pleasure to serve under your chairmanship, Mrs Murray. I echo the comments from those on the Opposition Front Bench about the quality of the debate on the first day of line-by-line scrutiny. I hope to continue that tenor and interesting dialogue.

We completely agree with much of what Opposition Members have said, which is why we have provided for exactly what they want in the Bill. Let me expand on that. In the levelling up White Paper, we announced a new institution that we believe can provide the strong leadership and effective and coherent collaboration needed for a strong devolution deal in certain circumstances. This new institution is the new combined county authority model, referred to in the Bill as a CCA.

As Opposition Members have said, the appropriate circumstances for that model is where a county deal covers an area with two or more upper tier local authorities. Those upper tier local authorities will be the constituent members of the CCA. Although we have not yet of course established any combined county authorities, because we are legislating for them here, we need to look to the future, as Opposition Members have said, and anticipate a scenario where an established CCA wishes to change its boundary. Since there is no benefit in a shell institution existing in perpetuity, it is only right that the legislation provides for such an institution to be abolished.

Wherever a CCA is planned to be established, its boundaries changed, or is to be abolished, we absolutely want to see the local public being consulted on the proposal, but the amendments are unnecessary, because the requirement for a consultation on a proposal to establish, amend or abolish a CCA is already provided for in clauses 42(4)(a) and (b), and 44(3)(a) and (b). Those provide an opportunity for local residents, businesses, organisations and other key stakeholders to have a say on the proposal, exactly as my hon. Friend the Member for Keighley pointed out. A summary of the consultation results must be submitted to the Secretary of State alongside the proposal and have regard taken of it.

There is a further safeguard in clauses 43 and 45, which provide that the Secretary of State has to undertake a consultation before creating, amending the boundary of, or abolishing a CCA, unless there has already been a consultation in the affected areas and further such consultation would be unnecessary. That will ensure that there has been sufficient public involvement in the consideration of whether it is appropriate to establish, change the area of or abolish a CCA. As such, I hope that I have given sufficient reassurance that the amendments would be purely duplicative for the hon. Members to withdraw them.

To touch on a specific point, the hon. Member for Nottingham North talked about initiators of devolution at the centre, we are the initiators of the devolution process in one sense. However, we are not the initiators of devolution deals for particular places. Ahead of the levelling-up White Paper, we called for expressions of interest, and we only move forward—we can only move forward—with a devolution deal if it has the support of locally elected leaders. In that sense, we are not the initiators; it takes two to tango, and that is the nature of devolution. In this Bill, it comes with what I hope for Opposition Members is sufficient requirement to engage in deep public consultation, and for that consultation to be listened to properly, as said by various people.

--- Later in debate ---

[Alex Norris]

I beg to move amendment 15, in clause 7, page 7, line 7, at end insert—

“(4A) “The Secretary of State must commission an independent evaluation of the merits of establishing CCAs as distinct from combined authorities and must lay the report of the evaluation before Parliament within 12 months of this Act coming into force.”

This amendment would require the Secretary of State to conduct an independent evaluation on the merits of the new Combined County Authorities established in Clause 7 and to report the findings to Parliament.

As we have discussed, the clause establishes county combined authorities if conditions A and B are met. The latter is the most pertinent. CCAs are different, though complementary, to combined authorities, which already exist under part 6 of the Local Democracy, Economic Development and Construction Act 2009. The clause essentially rolls out combined authorities so that all communities can have access to devolved powers, which is of course a very good thing.

That raises the question of why we need this clause, as we have the power on the statute book already. We need to be very clear, because this is a significant policy change. The Government feel that there is a need for CCAs alongside combined authorities. The decision to form such a combined authority can be decided at the upper tier, which essentially removes what the Minister termed, in the evidence session, the district council “veto”—we will get into that point more when we reach clause 16. This is a significant moment, a significant distinction and a significant divergence from current policy, which will have a significant impact for all those areas with two tiers of local government. I have no doubt that it will elicit strong feelings about whether district councils should be a formal partner in the process; the powers included here mean that, in the future, they will not be.

Amendment 15 is perhaps slightly less exciting. We will now have essentially two sets of organisations that basically do the same thing, or which will be used largely interchangeably in this place, the media and in public conversation. I expect that Ministers will engage with both types of organisation similarly—there is nothing in the White Paper to suggest otherwise. I understand the value in getting them going, but—I am leaning on the expertise that the Minister has access to—does he have no anxieties that that different legal status may lead to unintended consequences down the line in terms of what the organisations can and cannot do? We might end up with a divergence that we are not seeking. As far as I have had it explained, the only reason for divergence is for the ability and convenience of getting these things going.

The amendment asks that within a year of the Act coming into force, the Secretary of State commissions a report that establishes whether it is desirable to have this technical difference for things that are substantively the same.

[Rachael Maskell]

I can already hear what the Minister is going to say in response, because we rehearsed some of these arguments on Tuesday. The importance of the independence that the amendment points to should also be drawn out. If we are building confidence between communities and Government and establishing a new tier of power and of democracy, having rigour and independence is also important, to ensure that we can progress proposals on CCAs. Does my hon. Friend agree that that is a vital element of what the amendment proposes?

[Alex Norris]

Yes, that independence and transparency will be the theme of a lot of our discussions. I make no apology for that. In this case “independence” was carefully chosen because we need to be clear that the reason for setting up a new class of combined authorities as distinct from those cited in the 2009 Act is one of convenience, because it means that something will be done. The broad agenda has been stuck, spinning its wheels, and there are no more combined authorities in the works because those who were able to form consensus have done so and the rest, presumably, are unable to do so. The Government of the day have the right to bring forward proposals, as they have done, but the amendment is designed to provoke a clear response from the Minister that there is no danger of separate treatment for those bodies that is not intended at the outset.

--- Later in debate ---

The ICS example is pertinent here. In essence, the Health and Care Act 2022 creates bodies very similar to county combined authorities. There is the idea that, locally, partners from across the public, private and community sectors that are interested in healthcare will get to set the direction for healthcare within their footprint. However, at every stage of that Act, an asterisk says that that is the case unless the Secretary of State does not agree, in which case it can be changed. It is welcome that that idea is not as present in this Bill, because we were discomfited about that in the Health and Care Act. We spent a long time debating it together, Mrs Murray—you will remember it with the same fondness that I do. I hope to get from the Minister clarity that once the bodies are set up they will be left alone to do as they see best within the range of the law more generally.

[Rachael Maskell]

My hon. Friend is making an important point about the autonomy of CCAs to control their destiny. We recognise that we are on a journey of devolution. In her evidence, the West Yorkshire Mayor, Tracy Brabin, spoke about how she sees the intersection between her role and that of overseeing the police and taking a public health approach, which shows how things can evolve. As she does that, other authorities will be looking on and looking to replicate such opportunities. Does my hon. Friend agree that CCAs have to be given latitude so that they can make determinations about their own evolution and, as time goes by, get more powers to fulfil the aspirations and opportunities that need to come to local communities, let alone do anything to address the inequalities?

[Alex Norris]

I share my hon. Friend’s view. That point was made very clearly in Tracy Brabin’s evidence. Having said that we in this place have an interest in constitutions and the rules of the game, my strong belief, as someone who wants to see change happen in my community and to see my community improve in a vast range of areas, is that form should follow function. What are we trying to get out of these bodies? The structures—the bodies and committees that need to be in place—should then flow from that. I strongly believe that the people best able to decide that will be those who operate locally in the combined authorities.

The Government have to set the broader parameters, but I am hoping to hear from the Minister that those are likely to be de minimis involvement and that, instead, they will positively cut the link and allow county combined authorities to drive action forward without worrying about that tap on the shoulder telling them that even though they said they wanted to do that, they cannot.

--- Later in debate ---

[Rachael Maskell]

I am conscious that the most recent census information, which is just coming out, shows a significant change in the demographics of our country. It is important that we not only look at the three protected characteristics mentioned in the amendment, but consider wider protected characteristics—for example, disabled people in positions of authority. As well as reflecting communities, seeing that leadership is often an encouragement.

[Alex Norris]

Yes, that is right. The suggestions in the amendments form a basis—I would be very keen to build that out across the protected characteristics.

That provision has worked with gender pay gap reporting and has driven a public conversation. I envisage the changes we are seeking to introduce working in a similar way; at the moment of publicity, the reports would create reasoned and informed public debate about how to change some of the inequalities that exist. Diversity data is a really good way of doing that. This is about being honest and having the conversation, so that we might change things. We should start this new class of bodies, which are going to be really important in our communities, on the best footing, with best practice.

Of the Mayors who have been elected so far, only one has been a woman and only one has been from a black, Asian or minority ethnic background. We would not want any new arrangements to exacerbate existing gaps in representation. Of course, ultimately it is up to voters to select who they wish to be their Mayor, but when CCAs have the power to choose associate and non-constituent members, I hope that we would say from the outset that we want to see a diversity of representation.

[Rachael Maskell]

Does my hon. Friend agree that the act of carrying out an equality assessment and looking at the diversity of the people who are appointed focuses the mind to consider who is being appointed to these posts?

[Alex Norris]

I think that is right. That has been the experience of the provisions of the Equality Act, and would be the experience here, too. We want these issues to be at the front of CCAs minds at the outset. We want them to speak and work with legitimacy for their communities. They do that by being representative of the communities they serve.

These changes are not onerous. I dare say the report could be done quite quickly. I hope the Government think this is important, that we will hear from the Minister that he thinks it is important and that he will therefore be minded to add them to the Bill.

Levelling-up and Regeneration Bill (Fifth sitting)

Rachael Maskell Excerpts

Committee stage
Tuesday 28th June 2022 Public Bill Committees

[The Chair]

I intend to call Back Benchers first, and then the Front Benchers. You do not need to bob, but if you are a Back Bencher who wishes to speak, please catch my eye.

[Rachael Maskell (York Central) (Lab/Co-op)]

Thank you, Mr Paisley. I want to stress the importance of the legislation before us. In particular, I want to speak to amendments 3 and 5, and to new clause 1.

Clause 1 deals with the levelling-up missions, the foundation to the Bill and to building a stronger and more equal society. Representing a constituency in the north, I cannot stress enough the importance of this agenda in addressing the regional disparities that we see, and the inequality that my constituents experience. Across the House, we recognise the intergenerational lack of investment and the cost that has caused, biting particularly hard through the past decade of austerity, covid and now the cost of living crisis.

Clause 1(2) deals with levelling-up missions: what, when and how. However, the “who” is omitted. In taking evidence last week, the Committee heard leading experts repeatedly highlight the need for independent evaluation. In the very last evidence session, as my hon. Friend the Member for Nottingham North said, Mr Tanner drew attention to the importance of independence in the scrutiny of the levelling-up missions. That was a consistent theme throughout the week, with good reason.

First, no Government should mark their own homework. The Government clearly want to succeed, and therefore the matrices through which the comprehensive auditing process is undertaken could skew, or even conceal, the extent to which progress has been made. I am sure that if Government Ministers were sitting where we are, they would make the exact same argument about wanting rigour and independence through the scrutiny process of the levelling-up agenda. If the agenda is of such importance, the Government should welcome independent scrutiny of it.

Secondly, objective, independent scrutiny for such complex examination would provide Government with better insight into the progress made, and set out the path forward to address emerging inequalities or struggling areas that need concentrated focus to address those inequalities. It would give the Government the opportunity to step aside and then to invest in those areas. With the Government being so close to wanting levelling-up to succeed, there is risk of skewing the objectives.

Thirdly, I will make the comparison, as my hon. Friend the Member for Nottingham North did, to the Treasury establishing the Office for Budget Responsibility. That organisation has enabled independent scrutiny of Treasury assessments and has enabled Parliament and the public to hold the Government to account and to scrutinise the workings of the Chancellor of the Exchequer and wider Government respectively. In addition, the Climate Change Committee now has such authority that the nation looks to it: we know that academia particularly focuses on it, the Government certainly focus on and adhere to its calls, but so does industry. Having that rigour across industry enables us to see the seismic change that is necessary to meet our climate objectives. Seeing such scrutiny at work demonstrates the importance of independence. We can look at the power of COP26: had the Climate Change Committee not undertaken its vital work, we might not have seen the outcome that we did.

It is crucial that we see independent scrutiny not just of climate issues but across other national agendas. It does not matter who the Government of the day are; we want to bring about this change in order to apply that scrutiny to them. In order to tackle the inequality and injustices that we see across our communities, we must ensure that we set the right foundations for long-term measurement, and that the methodology is robust and independent, can attract cross-party support and is useful for all—not only in this place, which is often where the focus is, but across the country.

When we are dealing with such issues as those relating to criminal justice, housing and health, there are of course huge communities looking for robust measurement in order to understand how to advance those agendas. As we see more devolution in areas such as health, with the new integrated care systems, there needs to be a collective understanding of the mission that we are going on, not only through setting out the levelling-up missions but in scrutinising and measuring them as they advance. This is not just of use to the Government, or to the Opposition in scrutinising the Government; it is useful to all those parts of our society that move our levelling-up agenda forward.

In the light of the complexities of measuring levelling-up missions, it is of course necessary for measurement not just to be placed on the Government. There needs to be inclusion of, for instance, ICSs, local government, mayoralties and so on, so that there can be robust determination of how they feed into the levelling-up missions and how their work is scrutinised, given their arm’s length role in delivering many of these functions and the missions and aspirations of Government. As my hon. Friends on the Front Bench have set out in amendment 4, with proposed new subsection (4A), the Government must also publish an action plan to enable objective scrutiny of the missions’ impact. This is about not just looking backwards but projecting forwards, which helps to set the rhythm of Government but also of our nation.

The regeneration community—the professionals who will implement many elements of the Bill—talk about those golden threads where analysis is required not just in the silos of individual missions or Departments, but across them, to determine how they will intersect and work together so that, together, they are more than the sum of their parts. I am talking about drawing in multiple Departments to address inequality. We know that many of these issues are intersectional, so we need a body that can hold everything together and highlight the opportunities, because the Government are often too close to them to identify them.

It might be worth noting that the Hackitt report in relation to Grenfell takes that approach. It looks at intersectionality, which is so important for a robust response. Clearly, with such complexity as levelling up presents, having a space for independent scrutiny is all the more important. The independence will then, of course, build confidence across the country. This will not just be seen as a headline, a tweet or the next moment to talk about levelling up; it will gain public recognition and will bring focus across Government and beyond. Independence will take away suggestion of unconscious bias in Government decisions, and will give delivery partners greater confidence in the process and in Government. It will restore trust, which the Government are seeking and we all want to see. It will thus reduce conflict and increase motivation.

We have independent scrutiny across most functions in society. We have heard about the OBR and the Climate Change Committee, but I draw the Minister’s attention to Ofsted, Ofcom, Ofgem and the Care Quality Commission—independence is absolutely at the heart of all they deliver, so why not have it for something as fundamental as levelling-up missions? This is now recognised as the mechanism by which performance can be judged nationally, regionally and locally. A mature Government therefore have to understand the rigour of independence.

I move on to proposed new subsection (2)(c). We have had the what, the when, the how and the who, and we now need to talk about how much. It is vital that the Government quantify the resources available for investment in the nation’s regions, sub-regions and local areas. The entrenched disparities we see across the country are not due to a lack of aspiration or ability but are in large part down to a failure to invest in more than a generation. The Resolution Foundation has spoken in the past 24 hours about the importance of the scale of investment. When resources are concentrated, their impact is multiplied and we see decades of inequality being addressed.

As we know, London and the south-east suck in the lion’s share of resources. We have seen the evolution of the booming south at the cost of the north; that is what this agenda is all about. In the evidence sessions, Professor Leyser and the Mayor of the West Midlands, Andy Street, highlighted how to build a cluster economy to invest and create wider opportunities. Although the mission of levelling up is to address regional disparities, reviewing the impact it has on local inequity is so important, which is why independent scrutiny is vital.

If all that is achieved in the most affluent areas, then clearly, in order to extend opportunities for wealth, health and education, levelling up will need to be translated across the board. I truly recommend that we focus on opportunities to level up under the purview of an independent body, as opposed to the internal scrutiny systems of Government.

[Tim Farron (Westmorland and Lonsdale) (LD)]

It is a pleasure to serve under your chairmanship, Mr Paisley. I will not say very much, except to express my support for the amendments tabled by the hon. Member for Nottingham North.

It seems to me that it is entirely appropriate to push much of what is in the Bill through legislation—that would be normal for any Government—but for certain aspects, particularly those in part 1, it is quite unusual for a Government to choose this means to achieve their aim. If they want to level up, invest in regions and improve the quality of life in rural and urban communities in the north, the south-west and other areas where we feel that there has been a disparity of opportunity, they could simply do it. It does not take a Bill for us to invest and choose to act differently. The Government could just do something very novel: govern. They could invest and choose priorities to get behind.

Given that the Government have chosen this route, it seems odd that they should want to have their cake and eat it. They want to go down the legislative route but then not do anything commensurate with it—in other words, they do not want to allow themselves to be scrutinised and held to account. It seems entirely appropriate to me that there should be an independent body that is able to judge the success—or otherwise—of the levelling-up missions. It would see whether, for example, we are tackling the huge disparity, in every region of this country, between different age groups’ and income groups’ access to affordable housing, to allow them access to all other parts of society—that is what a decent, affordable, secure home does.

--- Later in debate ---

[Neil O'Brien]

The hon. Lady raises a really important point. The last Labour Government had a statutory child poverty target; that target was literally locked into legislation. Was it hit? It was not hit, no. That is why we have adopted the approach that we have; just writing something into law does not mean that it happens, unfortunately. That is why we have created the independent architecture around levelling-up missions: to provide both really serious external expertise in the work that we are doing—I do not think anybody disputes the fact that these are really independent, serious people; and an unprecedented level of detail, to give everybody who wants to criticise the programme all the resources and exact detail they need to do just that. I do not remember any of those things happening under previous Governments.

Missions are intended to anchor Government policy and decision making to level up the UK. However they should not be set in stone. As the economy adapts, so too might the missions, to reflect the changing environment and lessons learned. Of course, some of these things can be tightened over time; we have made remarkable progress on our missions to roll out Project Gigabit and the Shared Rural Network, which are a £5 billion intervention and £1 billion intervention respectively. Over the course of just the last two years, they have transformed the availability of gigabit internet and rural 4G.

Opposition Front-Benchers said, “Why do you have to change some of the missions? That seems very dodgy to us.” Some of the missions will literally have to change. For example, one of the missions that I am very proud of is the one to increase domestic public R&D spending outside the greater south-east of England by a third over the period covered by the spending review. Of course, that prompts the question, “What will happen after the spending review?” We will have to change that mission, otherwise it will just become meaningless. Things have to adapt over time, of course, and I think that everyone recognises that levelling up is a long-term mission; nobody thinks that any of these things, some of which are century-long problems, can be solved in the course of one or two years.

However, the Opposition Front-Benchers made a very important point: the Bill sets out that any changes to missions should be—indeed, have to be—fully and transparently explained and justified through a statement to Parliament where they occur. Nothing will happen without Parliament knowing about it.

Hon. Members on the Opposition front page—Freudian slip; Front Bench—would recognise that some of the missions will just have to change over time; there is no point locking in a three-year mission for the next 30 years. This layer of transparency enables the public and civil society at large to comment on the Government’s decisions. It is unclear what additional benefit an independent body would bring. The Bill sets out that any changes to missions should be fully and transparently explained and justified where they occur. The missions will be rolling endeavours.

[Rachael Maskell]

The big challenges facing our society, such as climate and the economy, have independent bodies, but inequality and the injustices that come from it will not. What do the Government see as the value of independence when it comes to the Office for Budget Responsibility and the Climate Change Committee that they do not see with this particular agenda?

[Neil O'Brien]

That is an extremely good and useful question. Everyone remembers the backstory about why we created the OBR. As Chancellor, Gordon Brown changed the assumption about how fast the UK economy would grow, to prop up and justify to the public extraordinarily high levels of public spending. When the financial crisis happened, his decision to change the assumption about how fast the UK economy would grow proved catastrophic, and we ended up with the largest structural deficit of any major developed economy in the world going into the financial crisis, with catastrophic effects on public spending and public services that lasted for a generation.

We changed that because it is very difficult for anyone outside the Treasury to challenge or see some of the forecasting assumptions being made; the macroeconomic and technical work that was happening only within the Treasury prior to the OBR was difficult for anybody to scrutinise externally. Anybody, even Opposition Front-Benchers, could tomorrow update every single bit of data in this document. All these things are public sources; it is straightforward for anybody to hold us to account for them.

However, when it comes to the OBR, it is not quite so straightforward to say, “No, I think the output gap should be different. I think that your assumptions about the fiscal impact of excise duty changes interacting with changes in consumer behaviour are wrong.” That is a fundamentally more difficult thing to do. Ultimately, the OBR was created to protect the Treasury from the kind of behaviours that, I am afraid, we saw under the last Labour Government.

[Rachael Maskell]

Will the Minister give way?

[Alex Norris]

Will the Minister give way one more time?

--- Later in debate ---

[Rachael Maskell]

Thank you, Mr Paisley. I want to develop the argument on what the Minister was saying about the Office for Budget Responsibility. The reality is that, over generations, we have seen entrenched inequality that successive Governments have been unable to address. It was the same with climate challenges, on which successive Governments have not placed a focus. Yet through the OBR and the Climate Change Committee, that focus has started to bring about change.

The Government’s determination to have a levelling-up framework through which to assess the levelling-up missions does not meet the same kind of scrutiny that will pivot society towards seeing the importance of levelling up. That is why I want to hear from the Minister why inequality, which is so entrenched in our society, and regional disparities, which are so well known and yet have not shifted for generations, do not deserve the importance given by Government to other elements, such as the climate and the economy. Surely, inequality and people’s lives are of equal importance.

[The Chair]

Before I call Matthew Pennycook, I remind Members that this is line-by-line scrutiny; it is not like the Chamber. We have time to go through these issues and we are not under any pressure in that regard. If there are matters that need to be raised, please let us consider them. That is what the Committee is for and what the public expect.

--- Later in debate ---

[Alex Norris]

Exactly, so I am very much enjoying it at the moment because we can fight these battles outside the rarefied atmosphere of the Chamber. However, one consequence of my liking these Committees is that I have frequently volunteered to take Bills on—something is not quite right with me, probably. The one thing I have learned from them, which is particularly interesting for a Bill with 200 clauses, is that a person can tell from the first amendment to the first clause how the rest of the discussions are going to go and how minded to take on change the Government are going to be. With that in mind, I am disappointed to hear that the Minister is not minded to accept the amendments.

Our discussion has been good. My hon. Friend the Member for York Central made excellent points about the impact of the Climate Change Committee and COP26. The points about arm’s length bodies and the broader partnership involved in levelling up are important. This legislation is not just about holding the Government to account, but holding to account all parties involved in levelling up, including all of us in this room, in whatever guise—be it as Members of Parliament, as volunteers in our communities, or in local government, as a number of us have been. We all have different stakes in and must hold each other to account on what is a shared endeavour rather than an endeavour of the Government of the day.

[Rachael Maskell]

My hon. Friend is making an excellent point. This is not just about Government, but about the whole of our society, across party lines, including mayoralties and local government. Does it not make sense therefore to have a framework that all partners can buy into and have confidence in when scrutinising their functions?

[Alex Norris]

That is very much the spirit in which I tabled the amendment, which is the first Opposition amendment to the Bill. That might be construed as the Opposition wanting to make life hard for the Government or wanting a stick with which to beat them, but far from it. The amendment would ensure that partners all have a mutual responsibility to each other, and that is partly about holding each other to account and having difficult and supportive conversations about why we have not been able to do things that we have sought to do.

The Minister made a point about unconscious bias being woven out with independence, and that is important. The listed regulators—Ofsted, Ofgem, Ofcom and so on—are good comparisons for this space. We have offered the Government a kind of menu of comparisons, and I am surprised that none of them is seen as the right one. My hon. Friend the Member for York Central finished her remarks by addressing the particularly pertinent point about inequalities. It is hard to understand why those inequalities are not considered to have same level of importance as the other agendas. That is disappointing.

The hon. Member for Westmorland and Lonsdale made an interesting point, which I hope will come up later in the debate. Part 1 of the Bill is a bit unusual. We have not yet had the clause 1 stand part debate, but I am not sure why those provisions have to be in the Bill. Usually, Ministers argue that things do not need to be in the Bill and the Opposition argue that they do. I will not argue against them, but it is unusual that the Government should have chosen to include the provisions.

I dare say that what is involved is the trick of planting a stake in the ground and saying, “We are going to deliver on these important things.” However, when we consider the point made by the hon. Member for North Ayrshire and Arran, we see that there is an asterisk against this part of the Bill: the Government still want the flexibility to mark their own homework and change it if they want. Those two things are a little oddly juxtaposed. The Government want to put their head above the parapet and make the legislation central to what they want to do. That is quite a brave and risky thing to do, so I am surprised that they are not able to go a tiny bit further.

The Minister mentioned the Levelling Up Advisory Council and the esteemed people on it. We are lucky that they have chosen to take part in public life in that way, and we are grateful to them. I completely agree with all that has been said about their independent-mindedness and capability to speak for themselves, but I say gently to the Minister—this is not a point against him personally, but against the Government—that it is not those people who we do not trust. Of course we trust their independence, but how on earth can we know what they are saying and what their views are? That is the problem.

As we have seen before with various such advisory bodies, in reality the Government will sit on the difficult things and trumpet the good things. Perhaps there is an element of human nature in that—there is huge element of sadness in it—but that is what will happen. If the Government are really committed to delivering on this matter, why not go that little bit further?

I accept the point about the technical annex and, as the Minister put it, the unprecedented detail. This is a saddening thought in many ways, but I would probably go so far as to say that if I thought he was going to remain in his Department until 2030, a lot of my anxieties would disappear—although, I would have anxieties about how we had managed to lose another two elections. Putting that to one side, because I do not think it is likely to happen, I have no doubt about the Minister’s personal commitment to the agenda, his personal probity, and his willingness to have difficult conversations and to explain on the record where things have not gone as they ought to. However, I would argue strongly that that is not a characteristic that applies across Government—I do not think anybody could say that is really a feature of this Government. He says that I could go through and update each technical annex every year—I am surprised that I should have to do that on the Government’s behalf. The problem is that what we will see overtime is the booklet getting thinner, because the difficult ones will drop out or they will be replaced by another one—that is what we normally see. The Government will say, “We have got advanced metrics now that better understand the nature of life in the UK.”

--- Later in debate ---

[The Chair]

Do any Back Benchers wish to catch my eye before I go to the Opposition spokespeople?

[Rachael Maskell]

Thank you, Mr Paisley, and I thank my hon. Friend the Member for Nottingham North for his excellent speech; I will continue his theme about making the right judgments on investment.

During the seven years that I have been in this place, we have seen little pockets of money being distributed in different ways to different parts of the country. Some of that will have had value, but essentially it is about addition rather than multiplication and is not necessarily getting the best out of public resources. As we have seen, the high street fund has gone to various places in the country, as opposed to investing to achieve the economic growth that would benefit a community in the long term, which is what the levelling-up agenda is about.

We have seen competitions for funding being set out and we know the level of resource that local communities are putting into them. For example, the headquarters of Great British Railways was going to come to York because of the high-tech economy on rail there, and to develop that rail cluster. Suddenly we had a competition and local authorities are now spending hundreds of thousands of pounds of public money in order to try to win the bid. At the end of the process there will be only one winner, which I trust will be York, but hundreds of thousands of pounds of public money has been spent on those bids and disappeared from the wider economy. That cannot be a wise way of spending public money—our constituents’ taxes—whether locally or nationally. They want greater value for money out of the Government.

A more consistent approach to growing the economy is important when it comes to where Government place their investments. The drawdown—this is what the whole agenda is about—in London and the south-east, has a cumulative impact, with the heating up of the economy there at the expense of similar interventions in the north. That is the powerful point that Professor Leyser and Andy Street, the Mayor of the West Midlands, made about the importance of the cluster economy.

I congratulate the Department for Business, Energy and Industrial Strategy on pouring its focus into that and on working with UK Research and Innovation to ensure that we bring together the components of an economy for the future, making sure the investment goes in the right place and building on the assets of a local community—the skills base, the industry, and what academia can bring. That can create the jobs and the skills for the future, to address the inequality that is so entrenched in our communities.

In my city of York, we are looking at the biotech industry, the rail and transport cluster, and the creative arts and digital creative sectors. Investment in those areas brings not just addition but multiplication—we are seeing inward investment, international investment and academia coming from overseas. The amendment is about putting the investment in the right place, ensuring that it goes to the nations, regions, sub-regions and local areas to ensure that we truly get the levelling up required, which will reach the Government’s objectives.

I believe that the amendment is important to ensure that the resources are available in the right place. We will then see economic disparities dispelled, health inequality reduced, educational attainment gaps closed and a better society as a result. I certainly see that getting this wrong has a significant cost. There are areas of York that need levelling up. While looking at regional disparities, we cannot ignore the local disparities.

My question for the Minister is this: does levelling up address all those socioeconomic inequalities? If there is investment in a particular region, city or town, but the affluent people get the gains rather than the people living in deprivation, we will not have levelled up the country; all we will have done is level up parts of it. We see that today in London: the greatest affluence in this city is just across the river, but we do not have to go far to see some of the greatest deprivation. We must ensure that levelling up is not just about the sum of the regions but the parts of the regions, to ensure that those individuals get a share of the wealth. I see how that can happen.

BioYorkshire, a project in York that we are taking forward as a green new deal, will see the upskilling of 25,000 people and the creation of 4,000 new jobs, getting people out of low-paid, insecure jobs and into good-quality jobs, which will bring significant benefit to my city and my region. We have to ensure that no one is left behind and that the impact is on everyone. Therefore, the investment is foundational. Where it goes, and how it goes, has to be a strategic decision, which is why the amendment is so significant, because otherwise we will see widening inequalities. I certainly see that in many places across the country.

I would also like to point out how investment in the right places can address other forms of inequality. We know, for instance, that single-parent families experience the greatest deprivation. How will the missions address that? How will the missions relate to disabled people, women and ethnic minority communities? We need to make sure that the methodology applied is robust, and that it looks not only at geography but at other areas, to ensure that investment is right and that it is measured. That goes back to our previous debate about independent scrutiny.

--- Later in debate ---

It is not the case that we ignored or had pause, as the Opposition said, when we got the PAC report. It is just that there is an inescapable choice here. We have tried to have a balanced diet of some competitive funding, with the advantages that that has, and some non-competitive funding, which has a different set of advantages.

[Rachael Maskell]

I am listening carefully to the Minister, who has talked about input as opposed to outcomes. In the light of our seeing gross inequalities and life expectancy for some people in our poorest communities decreasing, there is clearly something that is not working in the Minister’s methodology to deliver the outcomes we want to see to close the inequality gap. Will he expand on how he sees the shifting of the dial, as opposed to what we on the Opposition Benches perceive as more of a scattergun approach in terms of where the money still seems to be going through the methodologies he has described?

[Neil O’Brien]

We are the Government who are creating—literally, through the Bill and the clauses we are debating this very morning—a mission to close the gap in healthy life expectancy between local areas, and between the highest and lowest areas, and to raise it by five years by 2035. These are the missions that the Bill will be getting us to report on every year to Parliament, so we are addressing the hon. Lady’s point. Through the health disparities White Paper and the other things the Government are doing, we are addressing as one of our central priorities the underlying causes of lower life expectancy and the inequalities she mentioned.

To summarise, while we are completely with the spirit of the Opposition’s amendments—we are trying to get better data and have processes in place that are generating better data, because we recognise its importance to the levelling-up agenda—there is, in truth, no hard and fast difference between levelling-up resources and the rest of Government resources. Indeed, philosophically, it is important to recognise that one should not think just about levelling-up funds. Much as one can rattle off an impressive list, one should think about how we reform the totality of Government spending.

That is one of the novel aspects of the White Paper’s approach. For a long time, people thought of science funding in a science policy silo, and thought that it should be allocated to science excellence, with no spatial dimension. We are the first Government to set regional targets for science spending, recognising its importance to potentially addressing some of the inequalities that the Opposition have mentioned this morning. We have changed the Treasury Green Book. We have started to allocate housing and regeneration spending differently so that we can get out of the cycles that Tom Forth and other regional economic policy experts have talked about: some bits of the country are overloaded and people cannot get on a train or buy a house, while other parts are crying out for investment and have lots of scope to take on growth.

I hope that I have given the Opposition at least an honest account of why we are resisting the amendment, even though we absolutely agree with its spirit.

--- Later in debate ---

[Alex Norris]

The Minister knows that is unkind. I am not going to stand here and pick at one. We could go down the entire list of 157 local authorities, virtually all of which are significantly worse off, by tens of millions of pounds; I am not going to turn around and say that one of their projects should not happen. Please—of course I am not going to say that. The Minister says that the Public Accounts Committee picked up on the levelling-up fund, but that is not true: it has reported on the towns fund, too. This is a long-running issue and there are more than three years-worth of reports.

[Rachael Maskell]

It is not just about money that is coming from the centre into individual projects. The Government need to take note of the point that it is surely about enabling and empowering local authorities and bodies to make their own determinations about where the money is best prioritised. Whether it is from the shared prosperity fund, the levelling-up fund or the future high streets fund, a local authority might be in the best position to determine how the pot is spent in its local economy to drive up and level up, as opposed to the Government making a central determination about the governance of that funding.

Levelling-up and Regeneration Bill (Fourth sitting)

Rachael Maskell Excerpts

Committee stage
Thursday 23rd June 2022 Public Bill Committees

[Rachael Maskell (York Central) (Lab/Co-op)]

Q Thank you, Mr Bone. I would like to ask about site viability and how the legislation can help, particularly with brown site regeneration developments, and about how the aspiration of local communities around economic generation—particularly on the back of talking about cluster economies—can lead to that opportunity to build out, versus the demand to get viability on the site and capital receipts, with people therefore opting for high-cost housing, which often does not meet the needs of the community.

Andy Street: It is a really interesting question. I think the trade-off you are implying comes most acutely in the dispersal of public land and indeed any land where the public sector has to offer a subsidy. So what we have just done recently is launch what we call our “public land charter”. It is looking at some of the principles that will apply to how that is disposed. I am pleased to say that the Cabinet Office was very involved with us, as were some of the big private sector landlords and our local authorities. What we have come down very firmly on is this whole notion of an economic assessment that addresses what we might call the “greater good”—just as you have described, long-term value to the regional economy, not just the short-term transactional value. So we are trying, in terms of the principles by which we will guide the use of the funding we have to make this happen, to address exactly the point that you are drawing out.

[Rachael Maskell]

Q I really appreciate that answer; it is incredibly helpful. If I may, I will just ask a further question about that. How do you believe the infrastructure levy will help with bringing forward affordable housing and vital infrastructure on to sites? Do you have any concerns over the timing of the delivery of those funds?

Andy Street: I do not know the answer to this. I was honest enough to say earlier that I was not sure, but I am genuinely not on this one, because the huge advantage of the current variable system is that it can be waived where it is going to make a difference. I do worry, if I have understood the proposal correctly, about the absence of that ability. I know that that is not transparent and it does not pass some tests, but I think there is clear evidence that it can be used judiciously, for and against, when there is a marginal development. So my straight answer is that I do worry about that, but I can see, on the other side, the simplicity argument, which, as I said earlier, was valuable. I think that that is what has to be weighed.

[Rachael Maskell]

Thank you.

[The Chair]

Thank you. I call Greg Smith.

--- Later in debate ---

[The Chair]

Anybody else?

[Rachael Maskell]

Q Thank you ever so much to the witnesses. In representing York, I certainly understand the importance of archaeology, so I emphasise the point that has been made. Will you elaborate further on whether there are any omissions from the Bill or anything that could be added to help protect our archaeology? If I may, I will go to you, Ms Glithero-West.

Lizzie Glithero-West: Excellent—yes, of course. I have mentioned a list, particularly in relation to clause 92. There is always more that we can do. It is not an omission but an opportunity—that was the point about sites without structure and the list that is in our briefing.

What I would like to turn to, which is very much related to this—and which is less an omission and more an area that we think needs scrutiny—is the environmental outcomes reports. We are pleased that the relevant clause recognises that “environmental protection” should include protection of the cultural environment and landscape, as well as the natural environment. The historic environment often forms part of the habitat for nature, and it is vital that that symbiotic relationship is recognised. It is important to archaeology, which I know is your area, too.

However, we have some questions about how the proposed EORs will differ from the current environmental impact assessments. It is good that cultural heritage is included, but we need a bit more information on how they will work, and it is important to ensure that the definition of cultural heritage in the Environment Bill is not used in this legislation. We were not happy with the Environment Act, because it excluded built heritage. If that were translated across to this Bill, that would become problematic for heritage and archaeology.

There are particular concerns about an inadvertent drop in the protection currently offered by EIAs and SEAs—strategic environmental assessments. The sector seeks reassurance that that will not be the case. Those concerns arise, as it is difficult to see the detail. We are concerned that the delivery through regulations might mean that there is not the same opportunity to scrutinise the details as would be the case through primary legislation. We want to ensure that the new EORs have the same scope as the current EIAs, which include protection of cultural heritage and landscape. We want those aspects to be given the same weight as the natural environment.

Also, there is a question about clarity. It would be useful and helpful to have clear confirmation that cultural heritage includes underwater cultural heritage—that is particularly important for archaeology as well—and clarification of what “relevant offshore area” will mean in the context of the Bill.

Rachael, I hope that that is a couple of points in addition to the points about clause 92.

[Rachael Maskell]

Thank you.

[The Chair]

Nicholas, do you have anything to add?

Nicholas Boys Smith: Again, I could add something on wider things, but not on that particular point.

[The Chair]

Adrian?

Adrian Dobson: Interestingly, Lizzie has made the connection between the new, so-called EORs and their impact on the heritage environment, and she has made the point that there is a lot of detail still to be developed. I think you could apply that to the Bill generally, so I just make a plea for the various sectors—the heritage sector and the architectural sector—to continue to be engaged, because there is a whole level of detail that we cannot really comment on today, because the ambitions and powers are there, but quite how they will be evolved and enacted is not so clear.

[Rachael Maskell]

Thank you very much.

[The Chair]

I call Greg Smith.

--- Later in debate ---

[The Chair]

Richard, you have been very patient.

Dr Benwell: Thank you, Chair. I have been expansive on other questions, so it is no problem.

I will make two points very quickly. First, it would be great if we could always preface “brownfield” with “low-biodiversity value”. My friends at Buglife would send a plague of spiders my way if I did not point out that sometimes brownfield can be really important for nature. That has a really important link through to localism, because it is often local communities—our brilliant heritage of amateur ecologists—who know about these things. It is really important for the planning system to keep being able to investigate and interrogate what is on individual sites.

It was welcome, in this version of the Levelling-up and Regeneration Bill, to see the move away from the previous proposals in the planning White Paper, which would have taken a broadbrush zoning approach, taking away some of the granularity of local information. It is really important that we keep doing those site-based surveys and that, as we move to digitisation, for example, we do not do everything from a laptop computer and assume that there is nothing important there.

Quickly, on another aspect of devolution, on the environmental outcome reports, it is noteworthy that the outcomes can be set for the devolved nations as well, after consultation. I do not know anything about devolution politics, but it would be great if it can be clear that whatever is set by Westminster is a base, not a cap. If other countries wanted to move further and set bolder outcomes, it would be unfortunate if a new power that enables those things to be set from Westminster prevented Wales, Northern Ireland or Scotland from being able to go further if they wanted to.

[Rachael Maskell]

Q Communities are facing multiple challenges, and not just on flooding but on drought. How could the legislation be strengthened to mitigate those climate risks?

Dr Benwell: It would be wonderful if climate and nature were at the forefront of the Bill. A modern planning system ought to have environmental recovery embedded in its very purpose. Some of the things in the Environment Act 2021 moved us forward in thinking about compensating for environmental harm, and indeed things like biodiversity gain set a precedent, but actually some of those big sectors have a role not just in offsetting the harm that they do, but in contributing to improvement.

I know that there is some suspicion about purpose clauses in Bills, and that those are not something we do in UK law, but what you could do is to set a requirement that plans and individual decisions are compatible with nature’s recovery under section 1 of the Environment Act and with climate change mitigation under section 1 of the Climate Change Act 2008.

More locally, you could take a real step forward by bringing into statute some of the things that the Government have already promised. For example, we have this excellent commitment to protect 30% of land and sea for nature. Would it not be great if the Bill were to bring that into statutory form by setting an aspiration, or a requirement on Ministers, to ensure that all sites of significant importance for nature are properly designated by 2030; and to bring in some of the exciting new proposals for things like a wild belt, a new planning designation not just to protect what we already have for nature, but to provide areas where nature could recover?

On your question about the growing environmental risks that come from climate change and nature degradation, that comes back to the question of natural capital. Really, we ought to be thinking about levelling up not just geographically, but temporally: we ought to be thinking about the concerns of future generations. This is about making sure that geography does not define destiny. If you are more likely to be flooded, less likely to breathe clean air, or going to be in a place where you cannot access clean rivers or access a positive natural environment, there ought to be something of the past; that the length, quality and happiness of your life are defined by the physical environment around you. Surely that gap, having natural capital and a healthy natural environment as one of the missions that came in the White Paper, should be filled by a clear duty in the Bill—to set that as one of the missions, when they are formally set in statute.

My final point is that with some of the questions about, for example, flood risk mitigation versus housing development and space for agricultural land, there are inevitably trade-offs. It is really difficult. We know that if we are to meet net zero, a third of that effort has to be delivered by nature-based solutions—so, finding space for land to sequester more carbon through better agricultural soils, and through more trees and wetlands.

If we are going to do that at the same time as ensuring that we have space for business and development, and space to grow enough food, we have to improve how we do spatial planning and we have to make those trade-offs explicit, and a planning system that is still weighted towards housing numbers over those other considerations is one that will never make those choices properly. A spatially explicit planning system that has nature’s recovery and climate change mitigation at its heart is one that would make a real boon of this Bill.

[Rachael Maskell]

May I have a supplementary question?

[The Chair]

I am afraid that we are going to be caught by the clock, because I now have another Member who wants to come in. Paul and Carolyn might want to come in too. We could have gone on with this session for ages. Quickly.

[Rachael Maskell]

Q I will be brief. There has been a lot of talk about brownfield development first, and I understand that, but if are we talking about levelling up—you referred to the whole wellbeing of an individual—should we not also be looking at how brownfield could perhaps be swapped with some greenfield, in order to ensure that we do not build such density in urban areas, which is actually quite harmful to personal wellbeing and health?

Dr Benwell: It is hugely important, and we need to make sure that those existing green spaces are not just little patches of grass that are full of litter and dog mess. They need to be thriving natural abundant places that people can go and enjoy and find solace in nature. You are absolutely right; we need a system that can identify those spaces that really matter to local communities, whether they be notionally brownfield or not. We have seen an 11% loss in urban green space over the past 15 years. Were that trend to continue, you would find more people left bereft of nature. You would find productivity falling and ill health growing, so these things are hugely important. Things like—

[The Chair]

Sorry, I am just going to have to stop you there and move on.

--- Later in debate ---

[Stuart Andrew]

Q I thank you both for your time this afternoon. We know that protracted section 106 negotiations can sometimes result in a reduction in the amount of affordable housing from what was originally intended to be delivered. We are introducing the right to require, so we can get as much, if not almost all, of our ambition to achieve that. Are there any specific points you would like us to look at as we develop that side of the policy? More broadly, how do you see the proposals on access to information on land helping housing associations to look at opportunities to deliver more affordable housing?

Kate Henderson: Taking the second part first, transparency on land ownership is hugely welcome, as are the clauses in part 7 on compulsory purchase. I know this is not the same thing, but they are interlinked. Being able to access land at the right price to capture that land value is a really important mechanism for ensuring that we are able to deliver affordable housing. The best section 106 agreements do that because they understand the infrastructure need in a local area and those policies are in the local plan, so that when you go in for your planning application it is all costed in. I think the main principle of the infrastructure levy is that the cost of the levy is costed in so it can be factored into the price, which factors into what you are willing to pay for the land.

Land transparency is welcome, as is part 7 on compulsory purchase, regeneration and the enhanced role of Homes England, not just as a housing agency but as an agency involved in regeneration and place making.

Gavin Smart: I support much of what Kate says. I do not want to repeat her, but I have a couple of observations. Some of this is about the creation of a new planning system and some of it is about the resourcing of local authorities. Some of what characterises good section 106 negotiations is the ability to negotiate effectively. It is quite hard to design either a section 106 or a levy system in which developers may not come back, either legitimately or less legitimately, to argue that the situation has changed and needs to be looked at again. We have to accept that as a fact of life in these negotiations. It is not done until it is done.

I agree with Kate that land transparency is very helpful. Considering whether compensation needs to be paid in quite the same way as it has until now, and addressing hope value, is a very sensible proposition that we would support.

[Rachael Maskell]

Q In areas of high land value, how do we bring forward sites that are not built just for investment—Airbnb, asset homes and second homes—but are built to meet local need? What measures would you add to the Bill?

Gavin Smart: I do not know about adding measures to the Bill, but it is about the quality of local plans and the quality of local decision making. Going back to Kate’s point, it is about making sure we are operating on an objective assessment of need. We need to be sure that in our plans we are delivering the housing that is required for the whole community, rather than simply housing that can make the best return. In that sense, the planning system is something of an intervention to prevent what one might describe as a kind of market failure, which is that the housing market will not deliver the housing we need without being provided with a degree of direction. It is as much about what happens in implementation as what is actually in the Bill and the quality and strength of local plan-making behaviour.

Kate Henderson: There are already tools in the planning toolbox that enable local authorities to deliver different types of development that are right for their area. One example is rural exemption sites. I know your constituency is in York, so you are not necessarily rural, but our rural areas often have high land values and pressing affordability issues. The rural exemption policy enables affordable housing to be developed in perpetuity. A local landowner might be more likely to put forward a piece of land for affordable housing if they know it is going to stay in the community, for the community, so there are policies such as those that can be used. I agree with Gavin: it is really important that the local authority has a good evidence base of what is actually needed, so that when it is making decisions on schemes coming forward, there is an opportunity to argue for the social mix that it wants to see, including affordable housing.

I also think there is a role for different actors in the housing market: who is actually coming forward with proposals? What is the role of Homes England in terms of its land assembly role and its partnership role with local authorities, and how do we get HE more in the mix in its place-making role, as well?

[Rachael Maskell]

Q How do we ensure the viability of a site for development? Are measures just too short term, and should we be looking longer term? Is there anything we can put in the Bill to ensure we do that, to get the right kind of housing into the future? I am particularly cognisant of the comment made about maintaining the target of housing developed, as opposed to looking at what is actually needed within a particular community, the type of affordability or social housing.

Kate Henderson: That is a great point: the point about how we define current levels is vitally important. The commitment to deliver and protect housing delivery at current levels should reflect objectively assessed housing need for affordable housing, so having that in the Bill would be hugely welcome, ensuring that we enshrine that protection for the delivery of affordable housing.

On the practicalities of viability, this is not about legislation; there is a really important resource point. Local authorities need to have the skills around the table that put them on an equal footing with the private sector when they come in and negotiate on viability, which has been a real challenge for overstretched, under-resourced local authorities in some parts of the country. They have not been able to have an equal footing in those negotiations on viability. That is not about the legislation piece, but about how we upskill and empower local government to make sure they are getting the best possible deal for the community.

Gavin Smart: Without wishing to repeat myself, I support what Kate said. When working up an objective assessment, need is a very important place to start from, because it gives robustness to local planning. I have made the point about local authority capacity already, but Kate is right that they need to be able to compete on an equal footing with the developers they are negotiating with. That is where the really hard discussions about scheme viability take place, and you want local authorities to be approaching that with the same skillset, the same ability and the same resource, because if they are not, it is not an even playing field. Many developers are very socially responsible, but those who choose not to be can use the viability assessment process to drive affordable housing out of new housing schemes, which is not something that we would want to see.

[Rachael Maskell]

Thank you.

[The Chair]

Q Witnesses, you have been very good and very kind and answered all the questions; now it is your chance, just before we finish. The Members around this table will deal with line-by-line consideration of the Bill next week, which will in due course become an Act of Parliament. I will start with you, Kate: what is the one thing they should do, and what is the one thing they should not do?

Kate Henderson: The thing that would be fantastic would be to have real protection for affordable housing delivery on the face of the Bill, defining what current levels are. If I am allowed, rather than saying something that they should not do, I am going to ask for a second, which would be exemption from the levy for 100% affordable housing schemes.

Levelling-up and Regeneration Bill (Third sitting)

Rachael Maskell Excerpts

Committee stage & Committee Debate - 3rd sitting
Thursday 23rd June 2022 Public Bill Committees

[Stuart Andrew]

Q My final question returns to the community infrastructure levy. We have said that we want to take a test-and-learn approach, trialling it with a number of authorities, so I welcome the fact that you want to engage in that process. Do you agree that planning authorities often spend a considerable amount of time in negotiation on CIL or section 106, and often find the negotiations going downwards in terms of investment for the local community? That further erodes trust in the process in respect of what will be delivered on the ground for communities. Will this legislation help to free up the time of some of the planners to do some of the more important strategic stuff? I will go to David first.

David Jackson: On replacing CIL with the infrastructure levy, the simplification of the infrastructure levy based on value is certainly advantageous. In our experience, we were very engaged in the preparation of CIL on behalf of the Home Builders Federation. We engaged with many local authorities on that basis, and it was indeed a very complex process, looking at viability and trying to project that over a period of time and for a range of development scenarios. That simplification is welcome.

I take a slightly different view on section 106. It goes without saying that where section 106 is engaged, we are dealing in large part with complex, difficult, challenging projects. We have to ensure that local communities have trust in the process and that it will deliver the outcomes they expect to see. Inevitably, there is an element of commercial negotiation, because viability can often be engaged where we have multiple demands on investment in a local community, so it is right that we go through that complex process. I think CIL helps in terms of taking—[Inaudible.] The complexity of section 106 is merely a reflection of the complexity of the projects we are dealing with and the wish on both sides—both the community and the developer—to ensure that the infrastructure that is required to make the project work is actually delivered.

Victoria Hills: We have been very clear that anything that comes in needs to not overcomplicate an already quite complicated system. As proposed, the infrastructure levies will all go through PINS—the Planning Inspectorate —which we think will add more delay and cost to the system. We are advocating for the new infrastructure levies to get directly agreed by local authorities with the Secretary of State or the Department, to take out some of what I think you are alluding to—the horse trading, the negotiation and all the rest of it. Then, there is one discussion between the directly elected authority and the Department, and that gets agreed. You can take months and significant cost out of the whole system by not running it through PINS.

Another important point, which I could not make earlier, is that it is really important to understand how, in simplifying the system, the new infrastructure levy will sit alongside other statutory requirements—not least biodiversity net gain and affordable housing—and how, in simplifying it, it will balance out those quite complex aspects. The requirement for affordable housing has always been the case, but biodiversity net gain was not a thing before.

At the moment, until we see the detail, we are not convinced that it will all be simplified. There are some important complexities to take on board.

[Rachael Maskell (York Central) (Lab/Co-op)]

Q In the light of the Government’s proposals and commitment to building 300,000 homes by 2025 and real revision of the planning process, do the witnesses believe that is deliverable? Do they believe we will see homes that are predominantly assets, investments, second homes and Airbnbs?

Victoria Hills: We have always been very clear that the way to deliver great places and great communities is through a robust local plan and framework where the local authority has the opportunity to set out their priorities, which could include some of the aspects you referred to. The elevation of the importance of the local plan in all this is welcome. The detail, which we do not yet have, is on to what extent local authorities will be able to carry on delivering priorities through policy, and to what extent they will get pulled out into the national framework.

We support the principle of the local plan being elevated. We recognise that it is the only way you can move ahead with delivering on agendas including net zero, affordable housing and well-designed, healthy homes. If you are going to have policies against second homes, that may well be something to prioritise in your local plan, or in national guidance—the detail is yet to be seen on that.

Whether or not it meets the housing numbers is still an area for debate. The Government are on the record saying that is very much the plan in action. We will be advocating for local authorities to be well resourced, without delay to the national framework, to enable them to get on with the business of producing local plans as quickly as possible, in order to provide certainty for local communities and the development sector, so that it can get on and start planning and then building. It really just relates to the earlier theme of resourcing.

However, there also needs to be no further delay. There is an urgent need to deliver more homes, as we know. The housing waiting list continues to rise, and more and more people are still desperate to have a place of their own. The need continues to grow, so it is important that we move forward quickly on any regulatory reform and that we move forward with a resourcing package—which surely must include bringing up the planning fees as well, to help to move those things forward as quickly as possible.

Tony Mulhall: I totally agree with Victoria’s point about the importance of having up-to-date local plans, and the important aspect in the Bill of being able to combine local authorities so that they better match their functional urban region or their socioeconomic hinterland. That is important because we are spending a lot of time and money squeezing the carbon out of our buildings, but there will not be much point in doing that if we have to drive miles to get to our jobs and schools. It is critical that we have a proper planning system linked with the standards of quality construction that will achieve climate change.

On the point as to whether the measures in the Bill will deliver the target of 300,000 houses per annum, the feedback that I get from our members is “No.”

[Rachael Maskell]

Q Could you expand on that?

Tony Mulhall: There are many other factors besides planning that have an impact on the delivery of housing. The market has typically provided a certain level of housing delivery. It has fallen to housing associations and Government to supply what is actually needed. There is a big danger here—we raised this during Sir Oliver Letwin’s review—that if you allow house prices to increase to a certain level, there is nobody who is in favour of them falling. Everybody is invested in them staying at that level. If we continue to have a shortage of supply, which is resulting in price rises, then that is what is pulling up land values. It is the price of the house that is pulling up the value of the land, not the value of the land pushing up the house price.

Those are very important things to understand, because once a certain price level is arrived at in the housing market, nobody is in favour of that falling. Every metric that we are relying on extols the increasing value of property. We need to be very careful about what our expectations are with the affordability of housing if we allow there to be a very tight supply, like there is at the moment. The lending industry is not going to welcome a managed reduction in values. Those are really big issues that are outside of the planning Bill, but are crucial to the delivery of housing.

[Rachael Maskell]

Q Thank you for that answer. Could I ask Mr Jackson and then Ms Hills, is there anything that you think is missing from the Bill that would address housing inequality?

David Jackson: I will just comment quickly on the target of 300,000 and then come to your question. The 300,000 target is correct; we are in the midst of a housing crisis, so it is right to set that as a national ambition. If we look at vacancy rates for residential property across the country, they are typically very low—between 1% and 2%. That ties in well with what the levelling-up agenda is trying to achieve. If we are seeking to create a stronger economy, then the availability of homes near to the jobs that we are creating is an essential component part of that. Tony was talking about creating sustainable relationships between jobs and homes. We have to boost the delivery of homes, but they have to be related to the availability of jobs and the growth in the economy. As Victoria was saying, the fundamental requirement of the local planning process is to get those balances right and to put in any checks that need to be in place to control the downsides of that—be those downsides secondary homes or whatever else.

[Rachael Maskell]

In view of the time, can I just move quickly over to Ms Hills—[Interruption.]

[The Chair]

Order. I am afraid that brings us to the end of the allotted time for the Committee to ask questions. May I thank the witnesses on behalf of the Committee for their evidence? We now move on to the next panel.

Examination of Witnesses

Jonathan Owen and Tony Burton CBE gave evidence.

--- Later in debate ---

[The Chair]

The final question is from Rachael Maskell.

[Rachael Maskell]

Q How do you think the Bill could be strengthened to better support neighbourhood planning? What kind of governance structures would you want to see to achieve that?

Tony Burton: We would like to see a Bill that gives more incentives to produce neighbourhood plans and ensures that neighbourhood forums have access to and can make decisions on the spending of the community infrastructure levy. We would like to see a Bill that removes some of the obstacles to neighbourhood plans coming forward where there are obstructive local planning authorities—principal authorities—by strengthening the legal duty on them to support neighbourhood planning and by putting more time limits and appeal mechanisms in place to navigate the process accordingly.

We would like to see the neighbourhood priorities statements being given more weight where they are to be taken forwards, so they cannot just be ignored, and to see them piloted. We would like to see the Bill come forward with a package of support that would scale up what has been learned from the experiences of the last 10 years, and a programme of support, with an emphasis on more funding but also better use of the existing funding, that was designed to enable those communities to come together to produce plans and tap into the expertise that they need at certain key stages. Above all, the support should enable them to learn from each other and build the neighbourhood planning movement, so that that becomes the norm across the country.

Jonathan Owen: I agree very much with what Tony has said. I would offer a couple of additional points. First, recipients must be able to use the infrastructure levy flexibly for a range of uses. Linked to that, I would like to see in the Bill the extension of the general power of competence, which is proposed for the county combined authorities, to parish and town councils too, so that they can use some of that to support a range of things that they might not otherwise be able to support. That should make it easier for local councils to deliver for their communities and to ensure that they are spending money wisely on the right things locally.

[Rachael Maskell]

Thank you.

[The Chair]

If there are no further questions from Members, I thank the witnesses for their evidence. The Committee will meet again at 2 pm in this room to hear further evidence on the Bill.

Ordered, That further consideration be now adjourned. —(Miss Dines.)

Levelling-up and Regeneration Bill (First sitting)

Rachael Maskell Excerpts

Committee stage
Tuesday 21st June 2022 Public Bill Committees

[Tim Farron]

Q Thank you. I represent a rural community in Cumbria. The problems there are specific. As a member of the advisory board, do you think there is room for different rules to apply in different parts of the United Kingdom, so that certain local authorities might have different powers from others to, for example, control the number of holiday lets and second homes, so that there is a decent number of affordable and available properties for a permanent population?

Professor Dame Ottoline Leyser: Again, the specifics of that question are well outside my area of my expertise. From an R&D point of view, I hope I have been stressing all along that the key to success is specificity—it is understanding local regions and therefore understanding what the bottlenecks are to their growth and targeting investment very specifically in the context of those bottlenecks. That obviously requires really deep local knowledge and local empowerment.

I am absolutely in favour of careful consideration of local needs in the investments that are made. That is very much how UKRI is going about thinking about our R&D investments. I would hope that that approach is considered more widely, because I do not see how one can tackle these problems unless it is through putting in place specific, targeted, well thought-through locally aligned interventions.

[Rachael Maskell (York Central) (Lab/Co-op)]

Q Professor Leyser, given that economic cluster development grows exponentially, what risks do you foresee of the legislation choking off development space for the growth of economic clusters, particularly inward investment on key strategic sites? Housing developers getting a quick return and receipt, for example, could choke off the opportunity to grow a cluster outwards.

Professor Dame Ottoline Leyser: As I have said, this careful alignment of multiple interventions is crucial precisely because if one rushes in with a particular input, its knock-on consequences are not always foreseen, and we need to be able to respond to them and adjust accordingly. It is critical to think hard upstream about the aligned series of investments being made, and to monitor and feed back, so that where the evidence begins to grow and the chosen interventions have some of those knock-on and unforeseen consequences, they are identified and rectified before things get dug in too deeply. Exactly as you say, growing those clusters is very much about creating the right ecosystem and the right sets of interactions between the different parts. That drives positive feedback and sucks in additional investment in the virtuous cycle that we are all seeking to build. That is critical.

The answers are very specific and depend on the particular element of the overall system that you are looking at. From our point of view, we are really keen to ensure that our investments build synergy between local specialisations and growth, and national capability and capacity. It is important that our investments outside the greater south-east do not in any way undermine the extraordinary powerhouse that the greater south-east is for our R&D activity, and that, rather, those two things are synergistic with one another and that the skills and specialist areas developed in particular parts of the UK work in synergy with activity in other parts of the UK. That local-national map is critical to ensure that we do not drive the negative consequences of interventions, which, as you have highlighted, are a risk.

[Rachael Maskell]

Q Do you believe that there is anything missing from the legislation that could enhance economic opportunity?

Professor Dame Ottoline Leyser: These are long-term problems to fix, and they need multiple concerted and co-ordinated interventions. To me, a critical element is getting long-term cross-Government commitment to drive this through to completion. That is a very hard thing to achieve in the context of our parliamentary democracy, because those interventions will last over multiple Parliaments and everybody has to be behind them. That challenging aspect is, I hope, deliverable through the combination of the Bill and the mission statements, but, as we discussed earlier, it will require relentless focus on the missions, and accountability for delivering them through successive Parliaments.

[The Chair]

Professor Leyser, thank you so much for your evidence, and in particular for the kind things you said about Northern Ireland—not that I am biased in any way whatsoever.

Examination of Witnesses

Tracy Brabin and Ben Still gave evidence.

--- Later in debate ---

[Tim Farron]

Q A quick follow-up: which powers relating to housing stock would you like in the Bill so that you can ensure sufficient affordable and available homes for people in every part of your region?

Tracy Brabin: What may help more is the strategic planning, which I understand has not been agreed because the planning was going to be changed from Government, so we do not have clarity on our strategic planning powers. It would be incredibly helpful if we got some conclusion on that.

Ben Still: I might add that the common theme in many of our answers is that what is needed is not necessarily additional powers, but the freedom to work with local authorities to deliver the right solutions in the right areas. That is what we will be looking for in the Bill as it progresses, namely the ability to take local decisions within a guiding framework.

Tracy Brabin: May I add a supplementary point? The city region sustainable transport scheme—the big transport fund of nearly £900 million—has felt as if it is really heading in the right direction. It is really progressive that it is multi-year. It is money that we can really deliver; it is long term, and it is about local freedoms. However, in implementing it, we are getting check and challenge from Government about, for example, whether we can have silver bins in a particular project or a grass roof on a train station.

It is really important when the Committee is looking through the Bill to identify how Government can enable Mayors to make those decisions and trust them to deliver, because if we focus on outcomes rather than processes, then I think we can deliver for Government and be challenged as to whether we have delivered against the 12 missions once those schemes have been approved.

[Rachael Maskell]

Q Tracy, it is nice to see you again. This Bill is about levelling up, yet the different mayoralties have different powers and cover different geographical spaces, and therefore have different economic inequality between them. How do you think that real levelling up can come across all regions and indeed all nations through this legislation?

Tracy Brabin: Thank you, Rachel. I would say that poverty is everywhere. It is not one region over another; it is everywhere. And poverty is expensive. Our mission in West Yorkshire—I know that other Mayors share this mission—is to close that disadvantage gap, to close the wage gap between the highest earners and the lowest, and to close the health inequalities that blight some of our communities. Some of our communities were extremely badly hit by covid, particularly in West Yorkshire, because of various circumstances, and it will take us a long time to recover.

However, Rachel, in direct response to your point, I would say that transport really preoccupies most of the Mayors—how can we make sure that we can get our talented people to opportunity? We have seen the HS2 Bill being laid before Parliament, and how frustrating it is for the people of West Yorkshire to see so much investment going into one side of the country, when we know that levelling up and tackling poverty are both absolutely about making sure that people can get to good jobs, and to colleges and to skills training, and so on.

As the M10, we work together to try to improve transport. Collectively, for example, Andy Burnham, Steve Rotheram and I work on buses, which is the transport system that the majority of people in West Yorkshire use. We are reducing bus fares, capping single trips to £2 and making it £4.50 for a daily pass. We are doing what we can to make sure there is more money in people’s pockets and that transport works. However, it is more than a structural problem, Rachel, in that transport has to work, and Government must invest. I know that it is one of the mission statements, and I know that Government want to do it, and we can help them to do it.

[Rachael Maskell]

Q Do you believe that having West Yorkshire as a combined authority provides sufficient leverage to bring about the economic regeneration that you seek, or do you believe that the unit is perhaps too small and there should be a Yorkshire-wide, more combined authority? Some will be much smaller—for instance, North Yorkshire.

Tracy Brabin: That is right. When there is a mayoralty in North Yorkshire, I think it will be really powerful for us all to work together collectively for team Yorkshire. It is something that I am really looking forward to. On whether that delivers more, perhaps Ben wants to come in.

Ben Still: Only to say that the legislation that underpins the creation of CAs was based around the model of the functional economic area. Yorkshire and the bigger geographies have more complex overlapping functional economic areas. In our devolution deal we looked at broader options, including looking at the Yorkshire level, but ultimately the discussions with Government came back to focusing on the functional economic areas around the metropolitan area of West Yorkshire. That is the geography that the legislation works most effectively on.

Tracy Brabin: But we do work with and fund a number of schemes with York.

Ben Still: Which is why I suspect the county combined authority model is not based on that legislation.

[Rachael Maskell]

Q If I may ask one more question, what additional fiscal powers would enable you to have better leverage in being able to deliver your programme?

Tracy Brabin: It is not necessarily about further fiscal powers. It is about being free to deliver what our community needs with the powers that we have currently without continually having to go back to government for sign-offs and cheques and challenges when government can give us the money to deliver.

There are other powers that I would need. For example, we were talking just before this call about the precept and how Mayors have the opportunity to impose a precept, but it does feel that it has to be around something that impacts on people’s lives and around policy. For example, Andy Burnham uses his precept to have free bus travel—I think it is for the under-25s or under-19s. A precept adds cost for local people and the mayoralty. What we should be doing in the MCA is saving Whitehall money, because we are delivering on the things that it would normally deliver from Whitehall and Westminster.

Going forward, there are lots of discussions about fiscal powers, and there is work that we are doing in the M10 to look at that. Do you want to come in, Ben?

Ben Still: Only to say that the move towards an outcome framework, as the Mayor has previously mentioned, with a multi-year funding settlement—perhaps through a spending review process directly with Treasury, rather than through individual grants agreements with individual Departments—would be a significant step forward for us and a better reflection of proper devolution.

[Robbie Moore (Keighley) (Con)]

Q Morning, Tracy; it is good to see you. I want to touch on the point around accountability. You mentioned the role of accountability with Government, but do you think the Bill will improve your accountability or the role of a Mayor directly with the electorate?

Tracy Brabin: The accountability is the election, so I suppose it depends on whether people believe that I have delivered on my 10 manifesto commitments. More seriously, I think I would be open to more accountability from Government. If you give us the freedom to work directly with the Treasury and then focus on outcomes, we will be accountable to Government. In this Bill, it does not feel like there is that focus on outcomes and assessment of delivery against expectations.

Ben Still: When we became a mayoral combined authority from a combined authority, one of the things that we did in preparation was to increase the number of scrutiny committees that exist in the CA, so we have three—up from one—scrutiny committees that look at the work of the combined authority and have both pre-decision and post-decision scrutiny capabilities. The Bill mentions paying scrutiny members to get better attendance and so on, which we welcome, but we already do that in West Yorkshire. The issue for us is the high levels required for scrutiny committees to be quorate, so we would welcome more flexibility in that regard.

Levelling-up and Regeneration Bill (Second sitting)

Rachael Maskell Excerpts

Committee stage
Tuesday 21st June 2022 Public Bill Committees

[Alex Norris]

Q I have one more brief question, if I may—a final point on compulsory purchase orders, to ensure that I understood what was said in the previous answer. Notwithstanding issues of cost and capacity, which link to what Joanne just said, given what is on the face of the Bill on CPO, would you like to see anything further in the Bill, or do you think anything needs to be added or subtracted? Eamonn, you mentioned permitted development. That question is to any or all of the panellists.

Eamonn Boylan: The measures contained in the Bill in respect of CPO are eminently sensible and supportable. There will always be issues—this goes back to Joanne’s point about certainty of funding—with the availability of funding and the ability to manage what is still a complex legal framework, but the reforms set out in the Bill are an essential prerequisite for making CPO more applicable and useful in delivering place-based regeneration.

[Rachael Maskell (York Central) (Lab/Co-op)]

Q To start, I have a question for Ms Roney. There are proposals to move from section 106 funding to a new infrastructure funding model. How will that be helpful in releasing funding to generate affordable and social housing? Where do you see the risks in that funding proposal?

Joanne Roney: We have gone around the loop on a number of these different measures for a considerable time. If the outcome is to deliver more affordable housing, I think the challenge is still the variances between different parts of the country and the ability to deliver affordable housing because of the value of the land and the cost of build. So I am not sure that that will necessarily fix it, but then I am not sure that section 106 fixed it either. I think we should be having a different conversation—about how we provide affordable housing in different areas.

I will call on my colleague Eamonn to help me here, because one of the successes of the combined authority has been the revolving housing investment fund that we have used and the different models we have created to try to get better value out of all our developments and translate that into affordable housing numbers. We have had a range of success, but some of that has come from the ability to use flexible funding that we already have to support some schemes.

Overall, I think we would support the proposal in the Bill, but we need to do more to look at affordable housing provision in different parts of the country, and different innovative and flexible ways to drive value in order to provide truly affordable homes.

Eamonn Boylan: I echo Joanne’s comments, but I will just make the point—I know a number of Committee members will be well aware of this—that section 106 is far less potent in northern parts of the country than in others because of the issues around viability, particularly where we are dealing with brownfield land. Most of my brownfield land has the periodic table underneath it, and therefore the costs of remediation are significant.

We really welcome the Government’s initiative on the brownfield land fund, which has really helped us to unlock development, but section 106 or a replacement levy will not provide us in the north with sufficient resource to deal with the challenge of affordable housing. We need to go beyond that. That is part of the devolution ask that we will be making around how we might work more effectively with Homes England in delivering programmes—particularly on affordable housing, and particularly on affordable low-carbon or zero-carbon housing, which is a very significant challenge.

Laura Shoaf: I mentioned earlier that one of the things we wanted to do in a trailblazer devolution deal was to look at how we can use the housing and brownfield funding that we have more flexibly, to address some of the wider regeneration challenges but also to help us to increase levels of affordable housing. The brownfield funding, as Eamonn said, has demonstrably made a difference in our ability to assemble sites, to remediate sites, to bridge the viability gap and then, ultimately, to do what we all want to do, which is to deliver more housing, affordable included.

[Rachael Maskell]

Q Thank you. May I move on to the issue of viability appraisal, stacking up and being able to deliver projects? Clearly, there are multiple challenges with being able to deliver viable economic/residential projects, particularly in the north. What changes do you want to see to the Bill to make sure that such projects, which really do regenerate local communities, can be delivered?

Eamonn Boylan: At the risk of repeating myself, one of the keys to unlocking significant urban regeneration is certainty of funding and confidence in the longevity of any funding source. I will use the example of Ancoats, which used to be a no-go area in Manchester but is now regarded by some as the coolest urban neighbourhood in western Europe. The platform for delivering that was laid by investing public money through derelict land grant 15 years before the major acceleration in housing development took place; the market took that time to recover post-recession and to move forward. It is not only the availability of resource; it is our ability to invest at the right time in order to trigger affordable and sustainable growth and leverage very significant private sector investment.

In answer to your question about whether we think there are places where the Bill could go further, we think the review of Green Book evaluation methodology needs to be pushed forward in order to take more account of some of the affordability and viability challenges we face. I have a long catalogue of projects in both housing and other areas where we have failed the Green Book benefit-cost ratio test at individual project level but not been allowed to apply it at the programme level, where overall we could have made it stack up. I think flexibility around the application of some of those rules would be really helpful in enabling us to move forward.

Joanne Roney: May I can come in on the back of that to give an example? Ancoats, as Eamonn said, is one of the successes in Manchester. I am currently dealing with the north and the east of the city. The north of the city has 15,000 homes to be built across a range of sites involving a range of different Government Departments.

I completely support the idea that the Bill could go further in helping us with land assembly and doing more to encourage, through grants, brownfield land to be acquired and remediated, but there is also something about simplifying the process through a partnership with Homes England so that I do not have to produce a business case for Homes England, for the Treasury and to access individual grants. There has to be a more efficient way to do large-scale regeneration of swathes of land that needs to be brought back into use and put to greater purpose. That is key for the devolution asks for Greater Manchester, particularly in respect of that partnership with Homes England.

[The Chair]

Rachael, do you have any more questions?

[Rachael Maskell]

Q I have a couple more, if I may. On the planning changes proposed in the Bill, there is a sequencing around national infrastructure projects and local development plans. What do you consider to be the implications of the interruption of local development plans as a result of national infrastructure projects? What does that mean for your ability to pursue your housing and economic aspirations locally? I am talking about the Secretary of State’s powers.

Eamonn Boylan: We have had to deal with sequential challenges in terms of development, control and planning for a number of years. It is fair to say that we would need to be reassured that there was sufficient cognisance of the timing of the planning of projects at a major or national level so that they can be properly accommodated in local plans and so that local plan considerations can inform the way in which those plans are brought together.

One thing in the Bill that is of slight concern to us is the reference to it being possible to have only one local plan at any one time. We have done a lot of work over the past six years to develop a spatial framework for all of Greater Manchester, incorporating nine of the 10 boroughs. That was supported by the development of local plans that were entirely consistent with it but overarchingly governed by that strategic framework. We just want to make certain that there is a transitional arrangement that will enable us to protect that position as we move ahead, because it has held us in good stead as we have moved forward over recent years.

Laura Shoaf: I do not know that I have much to add. We do not have a regional spatial framework in the West Midlands and we are not a planning authority, so this might not be the best place for me to make a useful comment. Joanne might have a view.

Joanne Roney: I am not sure that I disagree with anything Eamonn said. Broadly, we welcome the introduction of additional tools and powers that help us to deal with compliance and anything that can help existing sites to be built out. I think Eamonn has mainly covered the other points that I would have made about seeking the approach to continue to get the complexity out of the system, particularly in respect of the production of local plans.

[Rachael Maskell]

Thank you.

[The Chair]

Are there any further questions before we move on to the next panel?