Localism Bill

Alan Whitehead Excerpts

Monday 17th January 2011 Commons Chamber

[Hazel Blears]

I am grateful to my hon. Friend for that intervention. Not for a moment would I seek to miss out something that I believe has been of great assistance in empowering local communities. Success has many parents and the Bill contains some things that I support, but I want to make one central point this evening: I believe that there is a deep schism at the heart of the Government between those people who genuinely believe in this agenda and want to make the most of the skills and talents of local people, and those who see it as a convenient step in an intense political strategy to shrink the state, slash costs and provide respectability for the transfer of assets from the public sector, possibly into the private sector, using the guise of social enterprise as a respectable halfway house.

I have great concerns about that. The Secretary of State for Health is on the record as saying that what he regards as social enterprise is anything other than the public sector. That is a very wide definition, and I say to the Secretary of State for Communities and Local Government, whom I am pleased to see in his place, that I would welcome the Minister giving a cast-iron commitment in his summing up. I would like the Minister to confirm that, under the expressions of interest part of the Bill, the Secretary of State will not be using his order-making powers to change the framework to allow commercial organisations simply to bid to run services and take over assets, and that there will be a genuine commitment to real social enterprise, with asset locks, stewardship and community ownership at its heart. It is vital that we get that on the record.

[Dr Alan Whitehead (Southampton, Test) (Lab)]

Does my right hon. Friend agree that an additional element in a community takeover of assets is its having the agency to do so and the resources even to get near those assets in the first place? Does she think that the Bill fulfils the promise of communities taking over assets in a way that that might be possible, bearing in mind the finances involved?

[Hazel Blears]

Not by any stretch of the imagination could this Bill genuinely be said to be about empowerment. If people are to be given rights, they need the means to take up those rights. The Bill does not contain the back-up, support, funding and guidance necessary genuinely to give people the sense that they can take on these services.

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[Mr Jackson]

The big society is about empowering local people to make decisions at local level. It should be seen not as lots of disparate, discrete initiatives at local level, but within the context of the Bill’s provisions. I see the general power of competence, for example, as a key unlocking a huge amount of progressive development by local authorities. The New Local Government Network specifically praised the general power of competence and said:

“This represents both a significant philosophical shift towards local democracy and a practical transfer of power to the local level.”

That is something that Labour never did in its 13 years of power, although it promised to do so in its 1997 manifesto.

The other important issue—unfortunately, one cannot look in detail at the 406 pages of the Bill and its 201 clauses and 24 schedules in five minutes—is whether it is permissive, as opposed to prescriptive, as an approach to local government? On any objective test it is an extremely permissive piece of legislation. The general power of competence will give local authorities autonomy by unlocking accelerated development zones, tax increment financing, asset-backed vehicles and real estate investment trusts.

[Dr Whitehead]

In his exposition of the overall coherence of the Bill, is the hon. Gentleman in favour of stripping out of the Bill as it progresses through the House those 126 clauses whereby the Secretary of State can remove the powers that have been put into the Bill, if he so requires?

[Mr Jackson]

The hon. Gentleman makes a fair point. The TaxPayers Alliance, in its publication in March 2010 entitled “The fiscal and economic case for localism”, speaks to an issue that unites the whole House—the fact that we are too centralised in the power balance between central and local government. Clearly, that is the case. The UK has one of the most centralised systems of government, taxation and spending in the western world. Less than 20% of our revenue is raised locally, as opposed to a G7 average of 60%.

An econometric study in Germany found that Government efficiency increased in direct proportion to decentralisation and could drive it up by up to 10%. That would release in this country the equivalent of £70 billion. The Spanish institute of fiscal studies found that fiscal decentralisation could boost growth in the economy by 0.5%. The Bill speaks to that concern. If Opposition Members ask me whether we are going far enough in fiscal autonomy and decentralisation, the answer is no, but the Bill is a bigger and better start than what went on before.

Opposition Members will notice that we have been consistent from the publication of the control shift document in February 2009, which is the theoretical and philosophical basis for the Bill. We have been pushing the concept of localism. When I served on the Public Bill Committee with the right hon. Member for Salford and Eccles (Hazel Blears) two years ago, we did not oppose multi-area agreements or leaders boards because we believed in localism.

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[Dr Alan Whitehead (Southampton, Test) (Lab)]

When the Secretary of State introduced the Second Reading of this illuminatingly entitled Bill, I was reminded of Humpty Dumpty’s phrase in “Through the Looking-Glass”:

“When I use a word…it means just what I choose it to mean —neither more nor less.”

For the avoidance of doubt, I do not wish in any way to associate the Secretary of State with Humpty Dumpty, nor to suggest that the word “localism” is capable of as many meanings as one wishes to put on it. However, the Bill’s title—incidentally, this is the first time that I have come across a Bill named after a tendency—suggests to me that it is intended, to some extent, to persuade people that opposition to it is fruitless, because if one is not in favour of localism, one must be in favour of centralism, and that is a bad thing.

I am very much in favour of, and have long proposed, localism and decentralisation from central Government and to local government. However, it has to mean something. The Bill contains several things that are very much along the lines of the move towards localism and devolving power from central to local government, but for those on both sides of the House and Governments of both colours, current and previous, there has always been a tension between the extent to which power can properly be devolved from the centre and the wish of the centre to hold on to elements of reserved powers or financial control. This Bill departs not a whit from that dilemma, and that is not only because it includes 126 powers that the Secretary of State can use in order to remove its potential effects. Localism, at its heart, must have about it the idea of agency—that is, the agency of a local aim or project to achieve its end. In this context, that is akin to the consideration of whether one can dine at the Ritz or dine in the shop doorway next to it. If one does not have the agency to afford to dine at the Ritz, one dines in the shop doorway.

[Mr David Ward (Bradford East) (LD)]

Does the hon. Gentleman agree that it is possible that those on both sides of the House are right and wrong, in that some communities will flourish and fly with new-found freedoms and rights, while others without resources, leadership capacity and social capital may be left untouched and probably further behind?

[Dr Whitehead]

I do agree with that difference. Also, however, if the agency is not there in order to make those changes, if there is not the necessary financial devolution, and if there is the current extent of cuts to local government services, then many of the aims and wishes for devolution of power to local government are meaningless. The Bill provides for no financial devolution away from the current system of considerable centralism as regards council tax raising, and the Secretary of State has the power to change any figures that the local authority comes up with in the way that it defines council tax.

Localism means ensuring that decisions are made at the right level. Under the Bill, there appear to be two types of decision on planning—the neighbourhood decision or the national decision, with nothing in between. The truth about localism is that decisions do not always have to be taken at the very lowest level, but they should be taken at the appropriate level. I, for one, want to live in a sustainable community. I want my waste to be dealt with efficiently and my transport to be run efficiently. All those things involve decisions planning and operation that are larger than local. Bearing in mind that the regional spatial plans and the national plans have been removed for everything but national infrastructure proposals, unless the Bill contains effective measures that enable effective co-operation to take place between local authorities, that gap will exist, and I am afraid that people will come to regret it in future years.

[Barry Gardiner]

Does my hon. Friend agree that in order to resolve that issue it is important that the Bill should have a presumption in favour of sustainable development within the national planning framework?

[Dr Whitehead]

Indeed, I completely agree. There should be such a presumption in the Bill and there should be considerable strengthening of the requirement to co-operate between local authorities, because the requirement in the Bill merely means that people have to talk to each other a bit.

If we are really localists in what we are doing, it is essential to get the different levels of planning right. It is not just about a neighbourhood decision or a national decision, but about getting the decision right in terms of what it means. If we come back to this House in a few years’ time having not built the houses and not given ourselves sufficient capacity to deal with this new era of waste and resource management, and if we have found that some of the decisions that we have taken at very local level mean that we have moved away from our climate change targets instead of making the necessary concerted effort to move towards them, we will seriously live to regret that gap in the Bill.

At the very least, we should ensure that this Bill is not enacted until a national planning framework is in place and the national planning statements have been discussed and sorted out by this House. The Bill must sit in a proper framework that means that local, regional and national planning work together for the benefit of the people who stand to gain most at local level.

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[Barry Gardiner (Brent North) (Lab)]

The Bill draws two important aspirations of the Government into conflict. The Government have said that they want to be the most decentralising Government ever, and that they want to be the greenest. Those two aspirations are difficult to reconcile. To meet the renewables obligation and keep the lights on in the United Kingdom, the Government will have to deliver £200 billion of investment in energy infrastructure in just nine years. To meet their obligations under the waste directive, they will have to deliver up to £20 billion of investment in plant and equipment for new waste and recycling infrastructure in the same period.

Of course, it is right that local people have a say in local planning issues. However, the flaw in the Bill is that it peddles a myth that thousands of decisions taken by atomised local communities up and down the country will somehow amount to a coherent vision for the national and regional infrastructure that we all require. There is a false parallel between the responsibilities of elected parish councillors and Government Ministers. Parish councillors and the people who may constitute neighbourhood forums have an obligation to secure the best outcomes for their local community. Their vision is rightly limited to the immediate boundaries of their neighbourhood; so should be also their powers. Clause 90 specifies a duty on local councils to co-operate on the planning of sustainable development. I welcome that, but there is no obligation on them to co-operate positively to bring about sustainable development infrastructure.

The Government must take a wider purview. To relinquish that responsibility is not to devolve decisions about strategic infrastructure to local neighbourhoods, but to ensure that no one takes those decisions. It is not devolution of power, but abrogation of responsibility. My hon. Friend the Member for Islington North (Jeremy Corbyn) spoke eloquently of the inequalities that may result in housing and the provision of other services across the country as a result of the Bill.

[Dr Whitehead]

Does my hon. Friend accept that the cumulative impact of the proposals on sustainability must inevitably be considered outside particular areas? Does he propose that a mechanism be placed in the Bill to reconcile local decision making, the duty to co-operate and the cumulative impact of the developments on sustainability?

[Barry Gardiner]

That is exactly what I propose.

My hon. Friend the Member for Islington North made a powerful point about the inequalities that will accrue across the country, but my point is different. The failure of Government to take strategic decisions will not simply result in inequality, but will be to the detriment of us all. Regional strategies were abolished by the Secretary of State. A duty to co-operate is no substitute.

The national planning framework must provide a clear direction to councils to enable a network of energy and waste management sites and facilities. Such a direction should not be left to secondary legislation. The Government should introduce in the Bill a presumption in favour of sustainable development that accords with the national planning framework. The Bill will create uncertainty in the business plans of those who want to invest in our country’s infrastructure. That will be as devastating a block on development as the increased voice for those whom outsiders sometimes call nimbys.

The Bill suggests that a neighbourhood forum could be constituted by as few as three individuals, and that such individuals need not live in the area. Does the Secretary of State not think that giving membership to those who merely want to live in the area is, even by his standards, a rather slack criterion?