Cities and Local Government Devolution Bill [Lords]

Anne Main Excerpts

Tuesday 17th November 2015 Commons Chamber

[Mr Graham Allen]

Mrs Main, I understand that it is in order to talk about the other clauses remaining to the House to discuss, including new clause 29, at this point, but I am happy to stand corrected.

[The Temporary Chair (Mrs Anne Main)]

I am reliably informed that new clause 29 is in the next group.

[Mr Allen]

In which case I sit corrected.

[The Temporary Chair]

Does the Minister wish to come back in at this point?

[Andrew Jones]

indicated dissent.

Question put and agreed to.

New clause 34 accordingly read a Second time, and added to the Bill.

--- Later in debate ---

[Mr Steve Reed]

I beg to move, That the clause be read a Second time.

[The Temporary Chair]

With this it will be convenient to discuss the following:

New clause 29—The Local Government Independence Code—

‘(1) There shall be a Code, to be known as “the Local Government Independence Code”, the principal purpose of which shall be to define and regulate the relationship between central and local government.

(2) A court or tribunal determining a question which has arisen in connection with the functions of a local authority, or of the Secretary of State or other public authority in relation to any local authority, must take into account the provisions of the Code.

(3) Schedule (The Local Government Independence Code) which—

(a) sets out the terms of the Code,

(b) makes provision about the application of the Code, and requires public authorities, including central and local government, to comply with the Code,

(c) makes provision for amending the Code,

(d) requires that, where it is possible to do so, primary legislation and subordinate legislation must be read and given effect in a way which ensures compliance with the Code, and makes provision for the amending of legislation where it is found not to be compatible with the Code,

(e) makes provision about remedial orders to amend legislation,

(f) makes provision for Ministers to make, or refuse to make, a statement that a Bill is compatible with the Code,

(g) amends the Parliament Act 1911 so as to exclude any Bill seeking to amend this Act from the provisions of the Parliament Act 1911,

(h) provides for amendments which are consequential on the making of the Code to certain enactments relating to local authorities, and

(i) requires the Secretary of State to provide for the review of provisions in pre-commencement legislation to assess their compatibility with the provisions of the Code,

has effect.”

The intention of this new Clause is to define the independence of local government and to regulate the relationship between local and central government in England by means of a statutory Code.

New clause 30—Reduction in petition threshold—

‘(1) The Local Government Act 2000 is amended as follows.

(2) In section 34(4) (minimum number of local government electors for a local authority’s area who must support any petition presented to the authority), for “5 per cent” substitute “1 per cent”.’

This amendment would reduce the minimum number of local government electors for a local authority’s area who must support any petition presented to the authority from 5 per cent to 1 per cent.

New clause 31—Mayors of combined authorities: Further functions—

‘(1) After section 107E of the Local Democracy, Economic Development and Construction Act 2009 (inserted by section 6 above) insert—

“107F Functions of mayors: alcohol pricing

(1) The Secretary of State may by order make provision for a mayor of a mayoral combined authority to have the power to set a minimum unit price for alcohol that is sold within that combined authority area.

(2) An order made under subsection (1) above must include a provision that such a power may be exercised by a mayor only following a consultation which includes local residents on the proposed level of the minimum unit price for alcohol.”’

New clause 32—Devolution to combined authorities: the family test—

‘(1) As soon as practicable after 31 March each year a mayoral combined authority in England shall produce and publish a report setting out its performance in applying the family test headings set out in subsection (3) over the most recent year to 31 March.

(2) In applying the family test, the mayoral combined authority must consider the impact of its policies and performance under each of the family test headings set out in subsection (3) and consider any guidance issued by the Secretary of State.

(3) The family test headings are—

(a) family formation;

(b) families going through key transitions such as becoming parents, getting married, fostering or adopting, bereavement, redundancy, new caring responsibilities or the onset of a long-term health condition;

(c) all family members’ ability to play a full role in family life, including with respect to parenting and other caring responsibilities;

(d) families before, during and after couple separation; and

(e) those families most at risk of deterioration of relationship quality and breakdown.

(4) An overview and scrutiny committee of the mayoral combined authority shall review the report within four months of its publication.

(5) The Secretary of State may issue guidance to mayoral combined authorities on applying the family test and on reporting on the test.”

This new Clause would require mayoral combined authorities in England to report annually on their performance in relation to the DWP’s Family Test (October 2014) and for an overview and scrutiny committee to examine the contents of the report.

New clause 33—Parish Councils: Power of parish council to sell electricity—

‘In Section 44 (1)(b) of the Local Government (Miscellaneous Provisions) Act 1976 insert “11” between “1” and “16”.’

This amendment will allow parish councils to be able to sell electricity that it generates.

New clause 36—Regard to neighbouring authorities—

‘In exercising a devolved function, combined authorities must have regard to any significant direct impact on the population of neighbouring authorities.’

This clause raises the concerns of some authorities which neighbour devolved authorities and ensures that combined authorities which have devolved functions give regard to the possible impact on neighbouring populations, particularly over issues such as transport and health.

New clause 37—Disqualification for election and holding office as a Member of a local authority—

‘In section 80 (1)(d) of the Local Government Act 1972, omit “for a period of not less than three months without the option of a fine”.’

This New Clause would extend the current disqualification regime to councillors sentenced to any custodial sentence (including a suspended sentence), instead of applying only to councillors sentenced to a term of imprisonment of at least three months.

New clause 38—Enabling devolution to joint committees in London—

‘(1) Following a written request from either—

(a) a voluntary joint committee of London councils, or

(b) a voluntary joint committee of London councils and the Mayor of London,

the Secretary of State may by order make arrangements for a function of a Minister of the Crown or a Government Department to be delegated to that joint committee, formed under Section 101 of the 1972 Local Government Act.

(2) The voluntary joint committee may make such provision as is necessary in relation to—

(a) voting powers required to protect minority interests;

(b) the membership and process for individual authorities to enter or leave;

(c) the executive arrangements of the joint committee;

(d) arrangements for the administration and transfer of property and other liabilities.

(3) A request made under subsection (1) above must have the agreement of all constituent members of the joint committee.

(4) In this section—

“London councils” means

(a) London borough councils, and

(b) the Common Council of the City of London;

“joint committee” has the same meaning as in the Local Government Act 1972;

“Minister of the Crown” has the same meaning as in the Ministers of the Crown Act 1975.

(5) A function is eligible for the purposes of subsection (1) above if—

(a) it does not consist of a power to make regulations or other instruments of a legislative character or a power to fix fees or charges, and

(b) the Secretary of State considers that it can be appropriately exercised by the joint committee.

(6) No delegation under subsection (1) above, and no variation of a delegation under subsection (1) above can be made without the agreement of all constituent members of the relevant voluntary joint committee.

(7) Before making or varying a delegation under subsection (1) above, the Secretary of State must consult—

(a) London borough councils;

(b) The Common Council of the City of London;

(c) The Mayor of London (in the case of a joint committee of London councils and the Mayor of London).

(8) The Secretary of State may make arrangements for the transfer from the Crown to the relevant joint committee of such property, rights or liabilities as the Secretary of State considers appropriate to the discharge of the function delegated under subsection (1).

(9) If an order made under this section would be treated for the purposes of the standing orders of either House of Parliament as a hybrid instrument, it is to proceed in that House as if it were not a hybrid instrument.’

This clause would support further devolution of Ministerial functions to London by providing for decision-making arrangements to enable operational delegation to groups of London local authorities and for the strategic governance of devolved responsibilities to be shared between London councils and the Mayor through an appropriately constituted joint committee.

New clause 39—Environmental consideration—

‘No later than three months after the passing of this Act, the Secretary of State shall prepare guidance on effective strategic planning for combined authorities including in the areas of—

(a) mitigation of and adaptation to impacts of climate change;

(b) natural resource use including water management;

(c) delivery of low-carbon energy sources and infrastructure;

(d) landscape-scale conservation, including green infrastructure.’

This new clause places a duty on the Secretary of State to set out guidance on how co-operation between combined authorities can be strengthened to mitigate environmental problems and develop green infrastructure.

New schedule 2—The Local Government Independence Code—

‘1 Chapter 4ZA and Chapter 4A of Part 1 of the Local Government Finance Act 1992 are repealed.

2 (1) This Code—

(a) defines the relationship between central government and local authorities; and

(b) makes provision about the financial independence and conduct of local authorities.

(2) For the avoidance of doubt, nothing in this Code shall affect the rights of individuals; and individuals may continue to seek judicial review of any action by a public authority which they regard as unjust or as infringing their rights.

Local Autonomy and Local Self-Government

3 (1) Local authorities’ accountability is to their electorates.

(2) Local authorities are autonomous, democratically-elected bodies which independently decide upon, administer and regulate public affairs and deal with all matters of concern within their boundaries to the extent that such matters are not the statutory responsibility of another body.

(3) Local authorities shall continue to operate within the rule of law.

(4) Local authorities shall continue to operate with full legal personality and under a general power of competence. Subject to sub-paragraph (4), local authorities may pass measures on matters affecting the affairs and interests of their area.

Scope of Local Government

4 (1) The powers and responsibilities of local authorities will continue to be prescribed by statute.

(2) Local authorities shall have power to exercise their initiative with regard to any matter which is not statutorily excluded from their competence or assigned to another body.

(3) Central government may not propose actions which are intended to, or may reasonably be regarded as being likely to, infringe the independence of local government, as defined in this Code, or affect local government generally or any local authority, unless local government generally, or the local authority concerned, consents.

Inter-Governmental Activities

5 Central government and local authorities shall establish joint inspection regimes to set and monitor the standards of services supplied or secured by them.

Territorial Autonomy

6 The geographical boundary of a local authority can be altered only by a proposal from the local authority itself or from its electorate. Local authorities must make arrangements for their electorates to put forward such proposals for consideration. Any such locally-inspired proposal for boundary changes, whether initiated directly by the authority or by the electorate of the authority, must be developed with the involvement of the Local Government Boundary Commission for England and shall be subject to approval of the electorate of the area concerned, under arrangements made by the local authority concerned and approved by the Electoral Commission.

Council Governmental Systems

7 (1) The electorate of each local authority, through methods agreed by the local authority concerned, shall have the power to choose that authority‘s internal political decision-making systems. The systems concerned shall include a directly elected mayor and cabinet, a cabinet and leader, a committee system, or any other political decision-making arrangement which the electorate may decide is appropriate.

(2) The electorate of each local authority, through methods agreed by their local authorities, may, after a process of consultation carried out by the local authority concerned, agree to and adopt any electoral system for use in elections to that authority.

Local Government Financial Integrity

8 (1) Local authorities shall be financially independent of central government, save as otherwise provided for in this Code.

(2) Central government may not place any restriction on decisions by local authorities about the exercise of their financial powers.

(3) The distribution of central government funds between local authorities shall continue on the basis of existing equalisation arrangements. Distribution will continue to be based on the principle of ensuring fairness and balance between local authorities. The basis on which this distribution is carried out must continue to be made public.

(4) Each local authority shall receive from central government a guaranteed share of the annual yield of income tax, as follows. Central government must in each financial year assign to the Secretary of State responsible for the distribution of central government funds between local authorities an amount of money equivalent to the yield from ten pence in the pound of income tax. The Secretary of State must make arrangements to inform each taxpayer in England of the amount of their income tax which makes up the central government funding distributed to English local authorities as a whole.

(5) The amount of the income tax yield referred to in paragraph 8(4) shall be re-negotiated between central and local government whenever service provision responsibilities are transferred between central government and local authorities.

(6) Local authorities may raise additional sources of income in their areas in any way they wish, and with the consent of their electorates as expressed through arrangements to be determined and put in place by the local authority concerned.

(7) Local authorities shall be able to raise any loans, bonds or other financial instruments which their credit rating allows and as independent entities will be exclusively responsible for their repayment. All local authorities shall operate “a balanced budget” so that in any one financial year all outgoings, including interest repayments on borrowings, shall not exceed income.

(8) Central government may not cap, or in any other way limit, local authorities’ taxation powers.

(9) The financial transparency standards that apply to central government shall apply to local authorities.

(10) Central government and local authorities may contract with each other in order to pursue their own policy objectives.

Local Authorities’ right to co-operate and associate

9 (1) Local authorities are entitled, in pursuit of any undertaking, to co-operate in any way with any other persons, including local authorities, public and private bodies, voluntary, charity or third-sector organisations, and financial, commercial or private enterprises.

(2) Where more than one local authority is responsible for services in a geographic area, those local authorities shall co-operate so as to maximise the well-being of those living or working in that area.

(3) Local authorities may join any association for the protection and promotion of their common interests and may belong to an international association of any sort.

Decision-making

10 The administration of any local referendum or other vote on proposals put forward by the electorate of any local authority, or other local decision-making processes involving a public vote, shall adhere to standards set by the Electoral Commission; and those responsible for the conduct of any such decision-making processes shall be accountable to the Electoral Commission for their performance against those standards.

Legal Protection of Local Government

11 Local authorities may seek a judicial remedy in order to secure the free exercise of their powers, and any other principles of local self-government or individual rights contained within this Code or otherwise enshrined in law.

Application of and Compliance with the Code: acts of public authorities

12 It is unlawful for a public authority to act in a way which is not in compliance with the Code.

13 Paragraph 12 does not apply to an act of a local authority if—

(a) as the result of one or more provisions of primary legislation, the authority could not have acted differently; or

(b) in the case of one or more provisions of, or made under, primary legislation which cannot be read or given effect in a way which is compatible with the Code, the authority was acting so as to give effect to or enforce those provisions.

14 In this Schedule “public authority” includes central government, local authorities and any other person certain of whose functions are functions of a public nature, but does not include either House of Parliament or persons exercising functions in connection with proceedings in Parliament; and “an act” includes a failure to act.

Proceedings

15 (1) A person who claims that a public authority has acted (or proposes to act) in a way which is made unlawful by paragraph 12 may—

(a) bring proceedings against the authority under this Act in the appropriate court or tribunal, or

(b) rely on the Code in any legal proceedings.

(2) In sub-paragraph (1)(a) “appropriate court or tribunal” means such court or tribunal as may be determined in accordance with rules; and proceedings against an authority include a counterclaim or similar proceeding.

(3) If the proceedings are brought on an application for judicial review, the applicant must have a sufficient interest in relation to the act.

(4) Proceedings under sub-paragraph (1)(a) must be brought before the end of—

(a) the period of one year beginning with the date on which the act complained of took place; or

(b) such longer period as the court or tribunal considers equitable having regard to all the circumstances, but that is subject to any rule imposing a stricter time limit in relation to the procedure in question.

(5) In sub-paragraph (1)(b) “legal proceedings” includes—

(a) proceedings brought by or at the instigation of a public authority; and

(b) an appeal against the decision of a court or tribunal.

(6) Nothing in this Act creates a criminal offence.

(7) In this paragraph “person” includes a local authority.

Judicial remedies

16 (1) In relation to any act (or proposed act) of a public authority which the court finds is (or would be) unlawful, it may grant such relief or remedy, or make such order, within its powers as it considers just and appropriate.

(2) But damages may be awarded only by a court which has power to award damages, or to order the payment of compensation, in civil proceedings.

(3) No award of damages is to be made unless, taking account of all the circumstances of the case, including—

(a) any other relief or remedy granted, or order made, in relation to the act in question (by that or any other court), and

(b) the consequences of any decision (of that or any other court) in respect of that act, the court is satisfied that the award is necessary to afford just satisfaction to the person in whose favour it is made.

(4) In this paragraph—

“court” includes a tribunal;

“damages” means damages for an unlawful act of a public authority; and

“unlawful” means unlawful under paragraph 15.

Amendment of the Code

17 (1) The Secretary of State may by order make such amendments to the Code as the Secretary of State considers appropriate.

(2) Before making an order under sub-paragraph (1), the Secretary of State must consult—

(a) such local authorities,

(b) such representatives of local government, and

(c) such other persons (if any), as the Secretary of State considers appropriate.

(3) Any orders for amendments made by the Secretary of State are subject to the procedures set out in paragraphs 17 to 19 of this Schedule.

Limits on power of Secretary of State to amend the Code

18 (1) The Secretary of State may not make provision under paragraph 16(1) unless the Secretary of State considers that the conditions in sub-paragraph (2) are satisfied in relation to that provision.

(2) Those conditions are that—

(a) the provision does not reduce the powers or discretion of local authorities unless the Secretary of State objectively considers that the effect of the provision is proportionate to the policy objective intended to be secured by the provision;

(b) the provision does not remove any necessary protection for local government or breach the obligations arising under the European Charter of Local Self-Government; and

(c) an order under paragraph 16(1) may not make provision to abolish or vary any tax.

Procedure for orders under paragraph 1

19 (1) If, as a result of any consultation required by paragraph 16(2), it appears to the Secretary of State that it is appropriate to change all or any part of the Secretary of State‘s proposals, the Secretary of State must undertake such further consultation with respect to the changes as the Secretary of State considers appropriate.

(2) If, after the conclusion of the consultation required by paragraph 16(2), the Secretary of State considers it appropriate to proceed with the making of an order under paragraph 16(1), the Secretary of State must lay before Parliament—

(a) a draft of the order, and

(b) an explanatory document explaining the proposals and giving details of—

(i) the Secretary of State‘s reasons for considering that the conditions in paragraph 17(2) are satisfied in relation to the proposals,

(ii) any consultation undertaken under paragraph 16(2),

(iii) any representations received as a result of the consultation, and

(iv) any changes made as a result of those representations.

Super-affirmative resolution procedure

20 (1) A super-affirmative resolution procedure shall apply in relation to the making of an order pursuant to a draft order, as follows.

(2) The Minister must have regard to—

(a) any representations,

(b) any resolution of either House of Parliament, and

(c) any recommendations of a committee of either House of Parliament charged with reporting on the draft order, made during the 60-day period with regard to the draft order.

(3) If, after the expiry of the 60-day period, the Minister wishes to make an order in the terms of the draft, he must lay before Parliament a statement—

(a) stating whether any representations were made under sub-paragraph (2)(a), and

(b) if any representations were so made, giving details of them.

(4) The Minister may, after the laying of such a statement, make an order in the terms of the draft if it is approved by a resolution of each House of Parliament.

(5) However, a committee of either House charged with reporting on the draft order may, at any time after the laying of a statement under sub-paragraph (3) and before the draft order is approved by that House under sub-paragraph (4), recommend under this subsection that no further proceedings be taken in relation to the draft order.

(6) Where a recommendation is made by a committee of either House under sub-paragraph (5) in relation to a draft order, no proceedings may be taken in relation to the draft order in that House under sub-paragraph (4) unless the recommendation is, in the same Session, rejected by resolution of that House.

(7) If, after the expiry of the 60-day period, the Minister wishes to make an order consisting of a revised version of the draft order, the Minister must lay before Parliament—

(a) a revised draft order; and

(b) a statement giving details of—

(i) any representations made under sub-paragraph (2)(a); and

(ii) the revisions proposed.

(8) The Minister may, after laying a revised draft order and statement under sub-paragraph (7), make an order in the terms of the revised draft if it is approved by a resolution of each House of Parliament.

(9) However, a committee of either House charged with reporting on the revised draft order may, at any time after the revised draft order is laid under sub-paragraph (7) and before it is approved by that House under sub-paragraph (8), recommend under this subsection that no further proceedings be taken in relation to the revised draft order.

(10) Where a recommendation is made by a committee of either House under sub-paragraph (9) in relation to a revised draft order, no proceedings may, be taken in relation to the revised draft order in that House under sub-paragraph (8) unless the recommendation is, in the same Session, rejected by resolution of that House.

(11) For the purposes of sub-paragraphs (4) and (8) an order is made in the terms of a draft order if it contains no material changes to the provisions of the draft order.

(12) In this schedule the “60-day period” means the period of 60 days beginning with the day on which the draft order was laid before Parliament under sub-paragraph(4).

(13) In calculating any period of days for the purposes of this section, no account shall be taken of any time during which Parliament is dissolved or prorogued or during which either House is adjourned for more than four days.

21 A resolution of either House is valid for the purposes of this schedule if, and only if, the motion for the resolution—

(a) is agreed without a division; or

(b) is passed on a division in which the number of members who vote in favour of the motion is a number equal to or greater than two-thirds of the number of seats in the House (including vacant seats).

Interpretation of Legislation

22 (1) So far as it is possible to do so, primary legislation and subordinate legislation must be read and given effect in a way which is compatible with the Code.

(2) This paragraph—

(a) applies to primary legislation and subordinate legislation whenever enacted;

(b) does not affect the validity, continuing operation or enforcement of any incompatible primary legislation; and

(c) does not affect the validity, continuing operation or enforcement of any incompatible subordinate legislation if (disregarding any possibility of revocation) primary legislation prevents removal of the incompatibility.

Declaration of Incompatibility

23 (1) Sub-paragraph (2) applies in any proceedings in which a court determines whether a provision of primary legislation is compatible with the Code.

(2) If the court is satisfied that the provision is incompatible with the Code, it may make a declaration of that incompatibility.

(3) Sub-paragraph (4) applies in any proceedings in which a court determines whether a provision of subordinate legislation, made in the exercise of a power conferred by primary legislation, is compatible with a provision of the Code.

(4) If the court is satisfied—

(a) that the provision is incompatible with the Code, and

(b) that (disregarding any possibility of revocation) the primary legislation concerned prevents removal of the incompatibility, it may make a declaration of that incompatibility.

(5) In this paragraph “court” means the Supreme Court; the Court of Appeal; and the High Court.

(6) A declaration under this paragraph (“a declaration of incompatibility”)—

(a) does not affect the validity, continuing operation or enforcement of the provision in respect of which it is given; and

(b) is not binding on the parties to the proceedings in which it is made.

Power to take remedial action

24 (1) This paragraph applies if—

(a) a provision of legislation has been declared under paragraph 22 to be incompatible with the Code and, if an appeal lies—

(i) all persons who may appeal have stated in writing that they do not intend to do so;

(ii) the time for bringing an appeal has expired and no appeal has been brought within that time; or

(iii) an appeal brought within that time has been determined or abandoned; or

(b) it appears to the Secretary of State that, having regard to any finding of his under section 5(1) of the Localism Act 2011, a provision of legislation is incompatible with the Code.

(2) If a Minister of the Crown considers that there are compelling reasons for proceeding under this section, he may by order make such amendments to the legislation as he considers necessary to remove the incompatibility.

(3) If, in the case of subordinate legislation, a Minister of the Crown considers that—

(a) it is necessary to amend the primary legislation under which the subordinate legislation in question was made, in order to enable the incompatibility to be removed, and

(b) there are compelling reasons for proceeding under this paragraph, he may by means of a remedial order make such amendments to the primary legislation as he considers necessary.

(4) This paragraph also applies where the provision in question is in subordinate legislation and has been quashed, or declared invalid, by reason of incompatibility with the Code and the Minister proposes to proceed under paragraph 25(b).

(5) If the legislation is an Order in Council, the power conferred by sub-paragraph (2) or (3) is exercisable by Her Majesty in Council.

Remedial Orders

25 (1) A remedial order may—

(a) contain such incidental, supplemental, consequential or transitional provision as the person making it considers appropriate;

(b) be made so as to have effect from a date earlier than that on which it is made;

(c) make provision for the delegation of specific functions;

(d) make different provision for different cases.

(2) The power conferred by sub-paragraph (1)(a) includes—

(a) power to amend primary legislation (including primary legislation other than that which contains the incompatible provision); and

(b) power to amend or revoke subordinate legislation (including subordinate legislation other than that which contains the incompatible provision).

(3) A remedial order may be made so as to have the same extent as the legislation which it affects.

(4) No person is to be guilty of an offence solely as a result of the retrospective effect of a remedial order.

Procedure

26 No remedial order may be made unless—

(a) a draft of the order has been approved by a resolution of each House of Parliament made after the end of the period of 60 days beginning with the day on which the draft was laid; or

(b) it is declared in the order that it appears to the person making it that, because of the urgency of the matter, it is necessary to make the order without a draft being so approved.

Orders laid in draft

27 (1) No draft may be laid under paragraph 25(a) unless—

(a) the person proposing to make the order has laid before Parliament a document which contains a draft of the proposed order and the required information; and

(b) the period of 60 days, beginning with the day on which the document required by this sub-paragraph was laid, has ended.

(2) If representations have been made during that period, the draft laid under paragraph 25(a) must be accompanied by a statement containing—

(a) a summary of the representations; and

(b) if, as a result of the representations, the proposed order has been changed, details of the changes.

Urgent cases

28 (1) If a remedial order (“the original order“) is made without being approved in draft, the person making it must lay it before Parliament, accompanied by the required information, after it is made.

(2) If representations have been made during the period of 60 days beginning with the day on which the original order was made, the person making it must (after the end of that period) lay before Parliament a statement containing—

(a) a summary of the representations; and

(b) if, as a result of the representations, he considers it appropriate to make changes to the original order, details of the changes.

(3) If sub-paragraph (2)(b) applies, the person making the statement must—

(a) make a further remedial order replacing the original order; and

(b) lay the replacement order before Parliament.

(4) If, at the end of the period of 120 days beginning with the day on which the original order was made, a resolution has not been passed by each House approving the original or replacement order, the order ceases to have effect (but without that affecting anything previously done under either order or the power to make a fresh remedial order).

Definitions

29 In this Schedule—

“representations” means representations about a remedial order (or proposed remedial order) made to the person making (or proposing to make) it and includes any relevant Parliamentary report or resolution; and

“required information” means—

(a) an explanation of the incompatibility which the order (or proposed order) seeks to remove, including particulars of the relevant declaration, finding or order; and

(b) a statement of the reasons for proceeding under paragraph (23) and for making an order in those terms.

Calculating periods

30 In calculating any period for the purposes of this Schedule, no account is to be taken of any time during which—

(a) Parliament is dissolved or prorogued; or

(b) both Houses are adjourned for more than four days.

Statements of Compatibility

31 (1) A Minister of the Crown in charge of a Bill in either House of Parliament must, before Second Reading of the Bill—

(a) make a statement to the effect that in his view the provisions of the Bill are compatible with the provisions of the Code (“a statement of compatibility”); or

(b) make a statement to the effect that although he is unable to make a statement of compatibility the government nevertheless wishes the House to proceed with the Bill.

(2) The statement must be in writing and be published in such manner as the Minister making it considers appropriate.

Amendment to the Parliament Act 1911

32 In section 2(1) of the Parliament Act 1911 the words “or a Bill seeking to amend the Local Government Independence Code Act” shall be inserted after the words “maximum duration of Parliament beyond five years”.

Amendments to other Enactments

33 (6A) The general power of competence includes the power to raise revenue through any method including although not limited to local taxation, levies and duties.”

34 Schedule 6 of the Localism Act 2011 is repealed.

Duty to review provisions in primary and subordinate legislation

35 (1) The Secretary of State shall, within six months of the passing of this Act, make provision by Order to provide for the review of all provisions in pre-commencement primary and subordinate legislation to assess their compatibility with the provisions of the Code.

(2) The order must include—

(a) provision requiring the review of the compatibility of pre- commencement legislation to be completed within a five year period, commencing with the date of passing of this Act;

(b) provision for incompatible pre-commencement legislation to cease to have effect no later than the end of a seven year period, commencing with the date of passing of this Act.

(3) The provision that may be made by virtue of subsection (2)(a) includes provision requiring the person to consider whether the objectives which it was the purpose of the legislation to achieve remain appropriate and, if so, whether they could be achieved in another way.

36 (1) In this schedule, “pre-commencement legislation” means a provision that—

(a) is contained in any other Act passed no later than the end of the Session in which this Act is passed, or

(b) is contained in an instrument made under any other Act and comes into force before the commencement of section 1 of this Act.

(2) Subordinate legislation under paragraph (35)1 may make transitional, consequential, incidental or supplementary provision or savings in connection with such provision.’

This new Schedule provides details relating to implementation of the new Clause on the Local Government Independence Code.

[Mr Reed]

I understand that it is appropriate briefly to mention the issue of Sunday trading when talking about this group. Last month, the Prime Minister declared at the Dispatch Box:

“we will be putting”—

it—

“in front of the House, in the Cities and Local Government Devolution Bill”—[Official Report, 21 October 2015; Vol. 600, c. 947.]

That was despite the fact that in April he wrote that he had no plans to change the Sunday trading laws and that

“the current system provides a reasonable balance.”

That measure is not before us today; the Government clearly could not get the support that they need. Could we hear from the Minister whether the Government are now ruling it out in this Bill entirely?

[The Temporary Chair]

I suggest to the hon. Gentleman that the provision is not there and that we cannot debate what is not before the Committee.

[Mr Reed]

Absolutely, Mrs Main, although the Minister was courteous enough to respond to a point on this issue earlier in the debate and it would be helpful to know that the Government are not proposing to bring it back on Report next week.

New clause 24 stands in my name and those of my hon. Friends. Devolution without fiscal powers is not ambitious enough. As Labour said on day one of this Committee, allowing councils greater fiscal powers would allow them to build greater stability into the system. The Government should commit to providing devolved regions with the resources they need, so that they are not being set up to fail. The Bill cannot just be a means of devolving the blame for cuts made in No. 11 Downing Street; devolution is a much bigger agenda than that, and we have heard support for that view from Members in all parts of the House during this afternoon’s debate and during the passage of this Bill. There are problems with the funding of regional economic growth: local enterprise partnerships can be inefficient; and local areas need long-term commitment and resources from the Government. Regional development agencies, which LEPs replaced, were able to make single three-year funding agreements.

--- Later in debate ---

[Mr Steve Reed]

As I understand it, the Local Government Association estimates that the Housing and Planning Bill includes some 30 new centralising measures. Given that that Bill is being sponsored by the same Secretary of State as the devolution Bill, does that not cast doubt on his commitment to devolution?

[The Temporary Chairman (Mrs Anne Main)]

Order. I think the hon. Gentleman was trying to make a fair point about devolution and taking back powers, but the shadow Minister is straying down a path that will not be fruitful.

[Mr Betts]

I will try to get back on to the straight and narrow, Mrs Main.

My point is that we need a time of reflection, with a discussion between Government, local government and this House about the framework for the constitutional relationships between the centre and local authorities of whatever kind, including combined authorities, so that we can look at the balance of powers and perhaps put down some markers or mechanisms for ensuring that the devolution we all support today is not taken back tomorrow. We need something of that kind. A constitutional convention has been mentioned—the Government may not like those words, but we need some mechanism to enable that to happen.

My second point is about fiscal devolution. My hon. Friend the Member for Croydon North (Mr Reed) quoted the report from the Select Committee in the last Parliament, and the hon. Member for Carlisle (John Stevenson) was a member of the Committee. We produced the report on an all-party basis. We followed the London Finance Commission, which was promoted by the Mayor of London and supported by the London boroughs. By and large, we agreed the report, albeit with some embellishments, with the London Finance Commission, and we had support from the core cities, but it was almost dismissed by the Government as an irrelevancy—something that they did not want to pursue.

I am pleased that the Government are looking at the total localisation of business rates. How they do that will be critical, including dealing with the issue of rewarding councils that get more development in their areas and at the same time protecting those areas where development is not as easy to achieve. Achieving some element of redistribution in the mechanism will be key. Nevertheless, the Government have accepted the need for some more fiscal devolution in principle. They now need to consider how it can be right that any increase in the one tax over which local government has total control—the council tax—is restricted by the need for a referendum. No other tax raised by central Government requires a referendum on any increase. I did not agree with the previous Government’s policy on council tax capping—I refused to vote for that on several occasions, as it is a very centralist policy.

The tax also has not been revalued for 25 years. That is nonsense. The council tax is the one tax over which local government has some degree of control, but it does not control the bands. There must be some flexibility there to recognise the extraordinary difference between amount of tax paid and the value of houses in the top and bottom bands. The difference in the values of the houses is much wider than the amount of council tax paid. Local councils need more flexibility and the ability to control that. As the London Finance Commission said, and the Select Committee agreed, let us also look at stamp duty and other property taxes. Let us consider giving local councils freedom to set business rates. I know that the Government want to bring in some freedoms, but they could go wider. Could local government have a right to be allocated a certain percentage of income tax?

Those are all ideas. All I am saying to the Government is that once this wave of devolution is going through, with cross-party support and local councils entering into it and putting in bids, can we at least have some indication that they will step back at some point and have a serious look at wider fiscal devolution? Ultimately, simply giving to local councils the power to spend money that has been handed out from the centre is not real devolution at all. It is power to spend the money the Chancellor gives out. What councils need for real devolution is the greater power to raise that money in the first place.

--- Later in debate ---

[James Wharton]

I beg to move amendment 16, page 19, line 8, after “of” insert “, or made under,”

This amendment provides that the power to make regulations under clause 22 of the Bill includes a power to make provision that is consequential on instruments made under the Bill.

[The Temporary Chair (Mrs Anne Main)]

With this it will be convenient to discuss clause 22 stand part.

Schedule 4 stand part.

Clause 23 stand part.

Clause 24 stand part.

Government amendment 17.

Clause 25 stand part.

[James Wharton]

Knowing as I do that hon. Members are familiar with the content and scope of the amendments and that there is, I believe, broad agreement across the Committee, I have no desire to speak at length unless Members wish me to do so. I hope that the amendments will secure the approval of the Committee.

Amendment 16 agreed to.

Clause 22, as amended, ordered to stand part of the Bill.

Schedule 4

Minor and consequential amendments

Amendments made: 26, page 34, line 22, at end insert—

“Local Government Act 1972

A1 The Local Government Act 1972 is amended as follows.

A2 In section 100E (application of Part 5A to committees and sub-committees), in subsection (3) after paragraph (b) insert—

“(bba) a committee in place by virtue of section 107D(3)(c)(ii) of the Local Democracy, Economic Development and Construction Act 2009;

(bbb) a joint committee in place by virtue of section 107DA of that Act;”.”

A3 In section 101 (arrangements for discharge of functions by local authorities)—

(a) after subsection (1C) insert—

“(1D) A combined authority may not arrange for the discharge of any functions under subsection (1) if, or to the extent that, the function is a mayoral function of a mayor for the area of the authority.

(1E) “Mayoral function” has the meaning given by section 107F(7) of the Local Democracy, Economic Development and Construction Act 2009.”;

(b) after subsection (5B) insert—

“(5C) Arrangements under subsection (5) by two or more local authorities with respect to the discharge of any of their functions cease to have effect with respect to that function if, or to the extent that, the function becomes a general function of a mayor for the area of a combined authority.

(5D) Subsection (5C) does not prevent arrangements under subsection (5) being entered into in respect of that function by virtue of section 107DA of the Local Democracy, Economic Development and Construction Act 2009 (joint exercise of general functions).

(5E) In subsection (5C), “general functions” has the meaning given in section 107D(2) of that Act.”

This amendment provides for the cessation of existing joint committee arrangements where a combined authority function becomes a mayoral function in the combined authority, and for a committee established by section 107D(3)(c)(ii) or 107DA of the Local Democracy, Economic Development and Construction Act 2009 to be treated as a committee of a principal council for the purposes of Part 5A of the Local Government Act 1972.

Amendment 62, page 34, line 22, at end insert—

“Local Government Act 1972

A1 The Local Government Act 1972 is amended as follows.

A2 In section 100J (application of Part 5A to new authorities etc)—

(a) in subsection (1) after paragraph (be) insert—

“(bf) a sub-national transport body;”;

(b) in subsection (3), after “(be),” insert “(bf),”;

(c) in subsection (4), in paragraph (a) after “joint authority,” insert “a sub-national transport body,”.

A3 In section 101 (arrangements for discharge of functions by local authorities), in subsection (13) after “combined authority,” insert “a sub-national transport body,”.

A4 In section 270 (general provisions as to interpretation), in subsection (1) after the definition of “specified papers” insert—

““sub-national transport body” means a sub-national transport body established under section 102E of the Local Transport Act 2008;”.

Local Government Act 1985

A5 The Local Government Act 1985 is amended as follows.

A6 In section 72 (accounts and audit), for subsection (5) substitute—

“(5) Any reference in this section to a new authority includes a reference to—

(a) the London Fire and Emergency Planning Authority;

(b) a sub-national transport body established under section 102E of the Local Transport Act 2008;

(c) a combined authority established under section 103 of the Local Democracy, Economic Development and Construction Act 2009.”

A7 In section 73 (financial administration), in subsection (2) after “reference to” insert “—

(a) a sub-national transport body established under section 102E of the Local Transport Act 2008;

(b) ”.”

This amendment makes consequential amendments regarding Sub-national Transport Bodies to make provision about the admission to the meetings of these bodies; to allow them to make arrangements for the discharge of their functions; and to impose a requirement to keep a general fund and to appoint a chief finance officer.

Amendment 63, page 34, line 31, at end insert—

“Local Government and Housing Act 1989

1A (1) The Local Government and Housing Act 1989 is amended as follows.

(2) In section 4 (designation and reports of head of paid service), in subsection (6)(a) for “, (ja) and (jb)” substitute “and (ja) to (jc)”.

(3) In section 13 (voting rights of members of certain committees: England and Wales), in the definition of “relevant authority” in subsection (9), for “(jb)” substitute “(jc)”.

(4) In section 20 (duty to adopt certain procedural standing orders), in subsection (4)(a) for “(jb)” substitute “(jc)”.

(5) In section 21 (interpretation of Part 1 of Act), in subsection (1) after paragraph (jb) insert—

“(jc) a sub-national transport body established under section 102E of the Local Transport Act 2008;”.

Railways Act 1993

1B (1) Section 24A of the Railways Act 1993 (Secretary of State franchise exemptions: operator agreements) is amended as follows.

(2) In subsection (4)—

(a) in paragraph (a), after sub-paragraph (i) insert—

(ia) an STB,”;

(b) in paragraph (b), after “Executive” insert “, an STB”;

(c) in paragraph (c)(i), after “Executive” insert “, STB”;

(d) in paragraph (c)(ii), after “Executive” insert “, STB”.

(3) In subsection (5)—

(a) in paragraph (a) of the definition of “relevant company”, after “Executive” insert “, an STB”;

(b) in paragraph (b) of that definition, after “Executive” insert “, an STB”;

(c) after that definition insert—

““STB” means a sub-national transport body established under section 102E of the Local Transport Act 2008.”

Local Government Act 1999

1C In section 1 of the Local Government Act 1999 (best value authorities), in subsection (1) after paragraph (hb) insert—

“(hc) a sub-national transport body established under section 102E of the Local Transport Act 2008;”.

Freedom of Information Act 2000

1D In Schedule 1 to the Freedom of Information Act 2000 (public authorities), in Part 2 (local government: England and Wales), after paragraph 28 insert—

28A A sub-national transport body established under section 102E of the Local Transport Act 2008.””

This amendment makes consequential amendments regarding Sub-national Transport Bodies so that the requirement to designate a head of paid service and a monitoring officer, and in relation to political balance of committees, will apply to these bodies; to make provision in connection with railway asset protection etc; and to provide for these bodies to be best value authorities and to be subject to the FOI regime.

Amendment 30, page 34, line 35, leave out “In section 91 (exercise of local authority functions),” and insert “(1) Section 91 (exercise of local authority functions) is amended as follows.

‘(2) ”

This makes a technical drafting amendment to the provision in paragraph 3 of Schedule 4 to the Bill which amends section 91 of the Local Democracy, Economic Development and Construction Act 2009.

Amendment 31, page 34, line 36, at end insert—

‘( ) In subsection (4)—

(a) omit “or” at the end of paragraph (a);

(b) after paragraph (b) insert—

“(c) for the function to be exercisable by the EPB and the local authority jointly, or

(d) for the function to be exercisable by the EPB jointly with the local authority but also continue to be exercisable by the local authority alone.”

This amends paragraph 3 of Schedule 4 to the Bill to add new provision in subsection (4) of section 91 of the Local Democracy, Economic Development and Construction Act 2009. The amendments enable an order under Part 6 of the 2009 Act conferring local authority functions on a combined authority to require that both authorities exercise the functions concerned jointly.

Amendment 27, page 35, line 43, at end insert—

‘( ) After subsection (1) insert—

(1A) In relation to an order under Schedule 5B, subsection (1) has effect as if the reference to the Secretary of State were a reference to the Secretary of State or the Chancellor of the Duchy of Lancaster.”

This amendment provides for an order made by the Chancellor of the Duchy of Lancaster under Schedule 5B to the Local Democracy, Economic Development and Construction Act 2009 to be able to make incidental, consequential, transitional or supplementary provision in support of such an order.

Amendment 28, page 36, line 2, at end insert—

10A In section 116 (consequential amendments), after subsection (1) insert—

(1A) In relation to an order under Schedule 5B, subsection (1) has effect as if the references to the Secretary of State were references to the Secretary of State or the Chancellor of the Duchy of Lancaster.”

This amendment provides that the Chancellor of the Duchy of Lancaster can, in consequence of an order made under Schedule 5B to the Local Democracy, Economic Development and Construction Act 2009, make provision in consequence of any provision made.

Amendment 64, page 36, line 27, at end insert—

“Equality Act 2010

12A In Schedule 19 to the Equality Act 2010 (public authorities), in Part 1 (general), after the entry “A joint authority established under Part 4 of that Act for an area in England (including, by virtue of section 77(9) of the Local Transport Act 2008, an Integrated Transport Authority established under Part 5 of that Act of 2008)” insert—

“A sub-national transport body established under section 102E of the Local Transport Act 2008.””

This amendment makes a consequential amendment regarding Sub-national Transport Bodies so that these bodies will be subject to the public sector equality duty.

Amendment 65, page 37, line 8, at end insert—

“Local Audit and Accountability Act 2014

18 (1) The Local Audit and Accountability Act 2014 is amended as follows.

(2) In section 40 (access to local government meetings and documents), in subsection (6) after paragraph (j) insert—

“(ja) a sub-national transport body,”.

(3) In section 44 (interpretation of Act), in subsection (1) after the definition of “special trustees for a hospital” insert—

““sub-national transport body” means a sub-national transport body established under section 102E of the Local Transport Act 2008.”.

(4) In Schedule 2 (relevant authorities), after paragraph 28 insert—

28A A sub-national transport body.”” —(James Wharton.)

This amendment makes a consequential amendment regarding Sub-national Transport Bodies so that the transparency requirements for accounting and auditing and access to meetings and documents will be applied to these bodies.

Schedule 4, as amended, agreed to.

Clauses 23 and 24 ordered to stand part of the Bill.

Clause 25

Short title

Amendment made: 17, page 20, line 3, leave out subsection (2)—(James Wharton.)

This amendment removes the privilege amendment inserted by the Lords.

Clause 25, as amended, ordered to stand part of the Bill.

Title

Amendment made: 66, line 5, after “functions;” insert

“to confer power to establish, and to make provision about, sub-national transport bodies;”—(James Wharton.)

This amendment makes consequential amendments to the long title of the Bill to incorporate a reference to establish and make provision regarding Sub-national Transport Bodies.

The occupant of the Chair left the Chair (Programme Order, 14 October).

The Deputy Speaker resumed the Chair.

Bill, as amended, reported; Bill, as amended, to be considered tomorrow.