Baroness Keeley
Main Page: Baroness Keeley (Labour - Life peer)(13 years, 10 months ago)
Commons ChamberRead Full debate Read Hansard Text
Mr David Burrowes (Enfield, Southgate) (Con)
I am grateful for this opportunity to speak in this important debate, having had to leave it earlier to attend a meeting with my noble Friend Baroness Hanham to discuss the local government finance settlement for the borough of Enfield. The issue of finance would normally dominate our debate on local government, as it has a significant impact, but, having been a local councillor and a Member of Parliament for a number of years, and a resident of the borough of Enfield all my life, I believe that this Bill will have a very significant impact on the quality of life of the people there. It contains the most significant devolutionary and localising measures that the House has ever had the opportunity to pass.
I listened with some regret today to the hon. Member for Sheffield South East (Mr Betts) and others who have been involved in local government and who often speak loudly about localism. I can think of pamphlets published by the all-party group on local government—I co-signed one on primary justice, which was looking for greater devolution and localism—and in Adjournment and other debates Members often pray in aid the activism of local groups and express the need to give them more power, but when it comes to the crunch and we can vote in favour of localism tonight by supporting this Bill’s Second Reading, when we have the chance to side with local people, local groups and those who want to take greater control over their lives and those of the people around them, and when we can not just talk about localism but deliver it, in which Division Lobby will Opposition Members vote?
Barbara Keeley (Worsley and Eccles South) (Lab)
The hon. Gentleman is talking about the stance that Opposition Members will take, so would he like to comment on the four clauses that give immense powers to the Secretary of State over the general power of competence? If the hon. Gentleman is comfortable with the extent of the powers accorded to the Secretary of State to control that general power, I have to tell him that we are not.
Mr Burrowes
I took part in Committee proceedings on the Local Government and Public Involvement in Health Bill—a Bill of over 200 clauses, so I bear the scars of considering them—and although there was some tinkering around the edges to give greater power to local people, at its heart and at the heart of the previous Government was big government and a big Secretary of State. I shall not go into the issue of size when it comes to the current Secretary of State, but he wants to replace a big Secretary of State in terms of powers with a big citizen.
Mr Slaughter
I agree entirely with my hon. Friend. I hope that Government Members have read the comments of Shelter, which has said:
“The proposed changes sever the link between homelessness and recognising the need for a settled home by allowing councils to discharge homeless households into the insecure PRS”
—the private rented sector—
“rather than find them a settled home.”
It is a shameful day for the country when a tradition that all parties have supported for many decades is abandoned: the tradition of ensuring that poorer families have stable and affordable homes. Given all that they have said over the past five years about the need to provide more good-quality affordable housing, the Liberal Democrats above all should not vote for provisions that will destroy security of tenure and the opportunity for people to live in stable homes.
Let me end by making two points that I shall have no time to amplify. The Bill’s provisions for Gypsies and Travellers are also shameful, because they constitute a cynical way of not providing Gypsy and Traveller sites. That is dog-whistle politics.
Barbara Keeley
I believe that the Bill contains the first indication of cuts in Sure Start, which we expected despite what the Prime Minister said about protecting it.
Mr Slaughter
I am grateful for that intervention, because it has given me a little more time to amplify the point that I was making.
In view of what has been said today about provision for Gypsy and Traveller sites, I think that Members should sometimes examine their rhetoric. The single most important issue is that the Secretary of State for Environment, Food and Rural Affairs wishes to cut all provision for Gypsies and Travellers: both the capital funding and the requirement for local authorities to provide sites for them. If there were enough sites, there would not be unlawful encampments. It is shocking that the Government should wilfully close their eyes to that fact and simply introduce civil and criminal penalties for Gypsies and Travellers, and they should examine their conscience.
Finally, let me echo the words of Sir Christopher Kelly, who said that the end of the standards regime allowed councils, such as Hammersmith and Fulham, to get away with what they were doing. That provision should also be rejected.
Martin Vickers (Cleethorpes) (Con)
I must first declare an interest: I remain, until May, an elected member of North East Lincolnshire unitary authority, having previously spent 14 years as a member of the former Great Grimsby borough council. The total amount of time I served is 26 years, during which I would like to think there was a certain amount of modest success, but I can assure Members that there was also a lot of frustration caused by the gradual drift towards increasing centralisation. Needless to say, I welcome the Bill’s general thrust to reverse that, but I wish to draw specific attention to the proposals for local referendums and elected mayors, and to express one or two reservations in respect of tenancies and the proposed fines in the context of air quality issues.
The ability of local people, as well as individual councillors, to initiate local referendums already exists, of course. I succeeded in achieving one after a long campaign, and in getting a two-to-one vote in favour of abolishing a town council that was precepting band B properties in excess of £100 per year, only to see that result overturned by the top-tier authority. Bearing in mind that frivolous proposals for referendums will be eliminated at an early stage, I hope that we will eventually come to the conclusion that the result of such referendums should be binding. The people did have a modest amount of success, however, as Immingham town council has reduced its running costs, and in 2008 reduced its precept by 20.9%. I rather suspect it would not have done so had it not been under threat of abolition.
I strongly support the moves towards the introduction of elected mayors, but why only 12? If, as stated, the Government consider elected mayors to provide strong leadership and improved clarity in municipal decision making and to enhance the prestige of their cities, why limit the number to 12, and why only for cities?
Barbara Keeley
Will the hon. Gentleman comment on the fact that mayors are going to be imposed? Indeed, another power that the Secretary of State is taking is the power to impose this on any city or local authority. The current power to have mayors was brought in by the Labour Government, and it can be by resolution or referendum.
Martin Vickers
Personally, I would always support the decision of a referendum over an imposition.
Why only 12 mayors? Why are the provincial towns not being given the opportunity to have an elected mayor? Local councillors are not generally enthusiastic about elected mayors, as that is seen to risk breaking up the cosy arrangements that exist, particularly if there are two strong parties in an authority. It needs to be made easier for the electorate to kick-start a referendum. Obtaining the support of 5% of the people does not sound like a great deal until one gets out on the streets to try to secure those genuine signatures. In the two unitary authorities that serve my constituency, that equates to about 6,000 people and I can tell hon. Members that getting that number is extremely difficult, because I have tried it.
Pat Glass
The hon. Lady has obviously read my mind. The leader of Durham county council has told me that, had the reductions in grant funding been limited to the level that Labour would have made, all the cuts to the council could have come from existing back-office services without hitting front-line services. However, cuts of the magnitude and scale of those proposed by the Government simply cannot come from anything other than front-line services. Front-line services will be hit, and hit hard.
Barbara Keeley
In answer to the point about Labour’s policy, one of the key points is that we would not have front-loaded the cuts. Salford city council has two to three months in which to deal with £47 million of cuts and is struggling, and I am sure that Durham county council is in a similar boat. I am sure my hon. Friend agrees that it is impossible to make structural changes that can help with that situation.
Pat Glass
Yes, I agree. The Association of North East Local Councils has issued figures that show clearly that the pound per person cut in spending power for those who live in the north-east will be significantly higher this year and in the following three years than it will be for those in the south-east. We have already heard today that in Hartlepool the cut per person will be £113. In the Lib Dem-led local authority of Newcastle, the figure is £99 per person, and for those who live in Durham it will be £70 per person. However, those who live in the deprived community of Richmond upon Thames will be hit by a massive cut of £5 per person, and those who live in Buckinghamshire, that well known centre of deprivation and poverty, will be hit by a cut of £4 per person. Sadly, those who reside in deepest poverty-ridden Surrey will find their council spending cut by a crippling £2 per person. How is that fair, and how will that support localism? It is Robin Hood in reverse; it is unashamedly taking from the poor to give to the rich. It is not fair and not progressive. Quite frankly, it is not fooling anyone.
My community already organises and runs many local projects, but it cannot do it alone. The voters of North West Durham, and voters generally, are already working out that the big society is nothing but a big sham. Public and community services simply cannot run on empty. They need investment and support as well as reform. People are realising that the only real choice they are being given is to run services themselves or watch them be cut to shreds. It is all very well in theory to say that local services should be delivered by local citizens, which I agree with, but what happens when those vital services fail?
Services such as talking books are vital to the elderly and the visually impaired, and the careline services are vital to the elderly and disabled. What happens if those services fail or those volunteering to run them simply walk away, get another job or move elsewhere? Such services cannot be left to God and good neighbours. There must be safeguards for when things do not work out.
I welcome parts of the Bill, but I have real concerns about other parts. It could result in a postcode lottery, with some communities able to support a higher level of social services than others, and the poorest and most vulnerable in challenged communities being left to fend for themselves.
Who will be the localists running the big society? They will be those with the time and money to get involved. Wealthier and more middle-class members of society will run services on behalf of the less well-off or the less able. What will happen to the concepts of fairness, entitlement, inclusion and standards? We have already witnessed in some Sure Start centres what happens when more middle class parents get involved: the families that those services are targeted to support—the disadvantaged—are simply overwhelmed, turned off or stay away. That is the danger of having a wealthy, middle class volunteer running vital public services targeted at the most disadvantaged.
There are things in the Bill that I approve of, but they are masked by a Government who are using them as cover for massive public sector cuts, the dismantling of local democracy and a methodology for shifting resources from the poor to the sharp-elbowed better-off.
Barbara Keeley (Worsley and Eccles South) (Lab)
We have had a lively debate, with some 40 speakers. There is a clear division between the Government and the Opposition on the Bill, and some Government Members have expressed concerns. There have been some excellent speeches.
My hon. Friend the Member for Sheffield South East (Mr Betts) put it well when he said that the Bill was a missed opportunity. He said that the general power of competence should sit within a constitutional framework —of course it should—and that there would be a void in the standards of conduct for councillors. He questioned the powers that the Secretary of State wants to take for himself, in particular the power to impose shadow mayors, which many hon. Members have spoken about. He said that the Bill signalled the end of the provision of social housing.
Similar concerns were raised by my hon. Friend the Member for Birmingham, Ladywood (Shabana Mahmood) and my right hon. Friend the Member for Tottenham (Mr Lammy), who said that the Bill was atrocious. My hon. Friend the Member for Mitcham and Morden (Siobhain McDonagh) reminded us of the era of “Cathy Come Home”. She said that her test was whether it was a hand-up or a handout, and that the Bill failed the test. Similarly, the housing section of the Bill was the main concern of my hon. Friend the Member for Islington North (Jeremy Corbyn). Opposition Members think that the Bill has the potential to raise levels of homelessness, which is a serious concern. My hon. Friend the Member for Stretford and Urmston (Kate Green) feared that the disadvantaged had no voice and said the Bill was bad on many levels for the poorest in our communities.
Hon. Members raised concerns about other aspects of the Bill. My right hon. Friend the Member for Greenwich and Woolwich (Mr Raynsford) made it clear that although we understand the aspirations of the Bill, we have suspicions about the outcomes. There are problems with the drafting of the Bill. A big issue is that it is silent on how to settle competing claims. How will claims be settled among the views of a neighbourhood forum, a local authority and a mayor? My hon. Friend the Member for Stoke-on-Trent North (Joan Walley) warned that mayors could undermine local communities and councillors. The hon. Members for Cleethorpes (Martin Vickers) and for Keighley (Kris Hopkins) and a number of other hon. Members disagreed with the imposition of shadow mayors. We heard a bid for the independence of Keighley. Unfortunately, that will not come about through a local referendum, as such referendums will only be advisory. Another matter of concern to hon. Members from all parts of the House was EU fines.
For many Opposition Members, the key issues that underlie the Bill are the unfairness of the local government settlement and the absence of the resources necessary to build capacity in communities. My hon. Friends the Members for Birmingham, Ladywood, for Chesterfield (Toby Perkins), for Hammersmith (Mr Slaughter) and for North West Durham (Pat Glass), my right hon. Friend the Member for Tottenham, and my neighbour, my right hon. Friend the Member for Salford and Eccles (Hazel Blears), spoke eloquently about the problems caused by cuts.
Barbara Keeley
There is not time, I am afraid.
The Secretary of State told council leaders that they were in charge of about £38 billion each year, no strings attached. Since then, the Conservative-led Government have subjected council leaders to savage front-loaded cuts and to a stream of exhortations on what they should and should not do with their budgets. Ministers have told councils that they have a duty to preserve library services, that they should treat voluntary organisations fairly, that they have no justification to tighten eligibility for social care and that they should not issue redundancy notices immediately. Department for Communities and Local Government Ministers are telling councils to cut senior management posts, merge services with other councils and cut posts that Ministers see as non-jobs.
My hon. Friend the Member for Hammersmith told us that senior executive pay cuts and shared service cuts each contribute only 1% of the cuts that are needed, whereas 50% of the savings will be made by cuts to adult services and children’s services, including a disturbing 60% cut in funding for Sure Start—a service that the Prime Minister said the Tories would protect. My hon. Friend told us about an individual who was paid £700,000 in consultancy fees over four years, while drawing a £50,000 pension from the same council. On hearing such facts, we have to question why Hammersmith and Fulham is the apple of the Secretary of State’s eye. Indeed, the Secretary of State has called any council leader who could not predict cuts of £40 million to £100 million negligent
“to the point of stupidity”.
DCLG Ministers also want to direct councils on small details. They want to tell them how often they should empty their bins, ban them from putting out newsletters and tell them to reduce street signs and bollards. That is the background to the 126 new secondary powers that the Secretary of State wants to take in the Bill.
The general power of competence should give councils the freedom to act ambitiously on behalf of local residents, but the Secretary of State wants to take major powers to restrict how councils may use it and attach conditions to its use. He also wants the power to
“amend, repeal, revoke or disapply”
any statutory provision affecting or overlapping with the general power. That is a very broad power for a Secretary of State to ask for, and it undermines the concept of localism. It raises serious concerns, particularly because, as we have heard, he wants to direct councils on every aspect of their work, from how they manage their budgets through to what they should do about street signs.
The Secretary of State wants to order 12 of our cities to change their governance model to the mayoral model, and to appoint their current leaders as shadow mayors. Furthermore, he wants the power to order any local authority to start operating a mayoral governance model, subject only to a later referendum. Where is the belief in localism in all that?
The Under-Secretary of State for Communities and Local Government, the hon. Member for Hazel Grove (Andrew Stunell), said in September:
“This Government will let councils and communities decide how to organise themselves. We don’t presume to know more than local people about how their area should be run.”
However, the Government do presume to know more than local people, because the Secretary of State wants the power to dictate to councils exactly which model of governance they must adopt. Also, there is no level playing field for councils that opt to retain cabinet or committee systems, as they will not be able to bid for new powers in the same way as elected mayors using the new provisions in the Bill.
To Labour Members, the scrutiny powers of local government are a key aspect of democratic accountability. In the context of the Government’s massive and unnecessary reorganisation of the NHS, about which much has been said today, powers for local councils to scrutinise new health commissioning arrangements are more important than ever, and councillors should be given adequate powers to do that. It was interesting to hear hon. Members of all parties refer to that matter. Councils opting for the committee governance system will not even be required to have a scrutiny committee. We believe that to ensure accountability, those councils should have at least one scrutiny committee, in line with councils that have a mayor or council leader.
The Bill proposes local referendums, a community right to challenge, a community right to buy and a duty on councils to maintain lists of assets of community value. As we have heard, Labour would welcome some of those proposals if the legislation introducing them were better thought through. As it stands, the Bill provokes more questions than it answers. It will lead to extra burdens on local councils, which are already struggling to maintain local services in the face of the Government’s swingeing, front-loaded budget cuts. My hon. Friend the Member for Edinburgh East (Sheila Gilmore) highlighted how the community right to buy, which has been tried in Scotland, is an empty gesture if it is without funding.
On local referendums, we support greater public engagement in the political process, but much more should be decided locally. For instance, we do not understand how it can be up to the Secretary of State to decide what is a local matter. The proposals on the new community right to challenge and the duty on local authorities to maintain a list of assets of community value are ill thought through. Despite there being no definition of the term “assets of community value”, 10 powers are proposed for the Secretary of State to make regulations on those lists.
The DCLG note on the extra powers proposed in the Bill, is a fascinating document and it states that the debates during the passage of the Bill will constitute the principal initial scrutiny of the scheme, and I have to ask Ministers why that is the case. There could have been pre-legislative scrutiny, and my right hon. Friend the Member for Greenwich and Woolwich said that it cried out for it. That would have been preferable to giving the Secretary of State powers to regulate, order and specify matters that would be better decided locally.
The Bill aims to allow communities a say on developments in their area through the planning system, but those measures are particularly poorly thought through. Indeed, the Royal Town Planning Institute says that work is needed on the Bill
“to remove those barriers in its drafting that deaden its effectiveness and hinder the ability of Government to achieve its own objectives”
and that
“the lack of a coherent strategic planning system combined with the complexity of the neighbourhood planning system”
that the Bill proposes will
“hinder…economic recovery…addressing climate change and enhancing the environment”.
On that last point, 17 organisations in the Wildlife and Countryside Link say that the Bill must:
“Introduce…strategic planning across local authority boundaries”.
They feel that the Bill risks creating a two-tier system in which
“only well-resourced neighbourhoods can take part”,
which echoes the comments that we have heard from many hon. Members.
The Government have made the wrong choices in their proposals on social housing and the rights of people who depend on it. On that and other proposals in the Bill, there has been scarce opportunity for scrutiny—indeed, a rushed consultation closed only today. Housing and homelessness charities have rightly criticised the desire of Lord Freud, the Under-Secretary of State for Work and Pensions, to weaken the rights of homeless families. The Bill proposes to strip them of the right to any say over the accommodation that they are offered.
Many of my right hon. and hon. Friends spoke about the fact that the Bill will mean that social tenants lose their right to social housing if their circumstances change. Families who play by the rules and improve their lot could be at risk of losing their homes. The Conservative party said in April that it had no policy to change the current or future security of tenure of tenants in social housing, but the Bill contains provisions to do that. The Government have a record of breaking their word—on VAT, on the education maintenance allowance and on tuition fees—and now council and housing association tenants will see whether the Government keep their word.
If the Secretary of State were a true champion of localism, he would have proposed real freedoms for councils, rather than give himself wide-ranging new powers to direct them. He would have produced a Bill that engaged local people in planning their neighbourhoods at the same time as promoting sustainable development and protecting the environment, and he would have fought for a fair and manageable financial settlement for local councils. Had he done so, councils could work on giving their residents a real say in how their local areas are run, rather than focus all their energy on making cuts.
My hon. Friends said that the Bill is the worst of all worlds, that it will set community empowerment back years, that true localism will not emerge without a fair settlement for local government, that the Bill gives rights but no resources to back them up, that it is a shambolic cover-up, that it is not fair and not progressive, and that it fools no one. I urge hon. Members with concerns about the Bill to join us in supporting the amendment tonight.
Greg Clark
The Bill was drafted deliberately to express that. This is a community right to challenge to allow community organisations to do something that Labour, during 13 years in government, failed to do, which is to let them have the chance to deliver services.
Let me refer to some of the speeches made by right hon. and hon. Members. My hon. Friend the Member for Mole Valley (Sir Paul Beresford) brought his considerable experience in local government to bear. My right hon. Friend the Member for Bermondsey and Old Southwark (Simon Hughes), my hon. Friends the Members for Carlisle (John Stevenson), for Cleethorpes (Martin Vickers), for Crawley (Henry Smith), for Peterborough (Mr Jackson), for Filton and Bradley Stoke (Jack Lopresti), for Milton Keynes South (Iain Stewart), for Morecambe and Lunesdale (David Morris), for Ealing Central and Acton (Angie Bray), and for Oxford West and Abingdon (Nicola Blackwood), and the hon. Members for Birmingham, Ladywood (Shabana Mahmood) and for Sheffield South East (Mr Betts), the Chair of the Communities and Local Government Committee, made passionate speeches about local government. They should not be concerned about the Secretary of State’s powers. The key power is the general power of competence. We thought very carefully about whether it was right to set out pages and pages of restrictions in the Bill on that general power of competence. We concluded that the better thing—the more empowering thing—was to change completely the default, so that the powers that a local authority wants to take should be available to it, and it should not have to go through pages of guidance on the Bill. We think that that is the right approach. I look forward to the scrutiny from the Select Committee, but that is the approach that we took.
One of the other powers states that if a council is in danger of becoming insolvent, it is reasonable for the Secretary of State to suspend the requirement to have a referendum for a council tax increase to cover that. Therefore, the Committee, when it scrutinises the Bill, will find that it is content with that.
Greg Clark
There is no time, I am afraid.
Let me address the argument, which was depressingly common on the Opposition Benches, that communities are not capable of taking up such rights. What a bleak and miserable picture of communities the Opposition have. I believe in local government; indeed, I am a fan of it. The track record of local government in recent years certainly bears comparison with the track record of central Government, at least under the previous Administration, so it is absolutely right that we should give local government these powers and trust it. Of course we should give help to the most vulnerable communities to ensure that they can take advantage of the powers, just as everyone else can. However, the argument that people in local communities are so mean-minded that they will exercise their powers only in a way that Opposition Members have described as nimbyish, or that people who love their communities, and want to bring up their children and see them prosper in their areas are not capable of having the interests of their communities at heart is a bleak reflection on the Opposition’s world view. It is not a view that we share.
The Bill will put our politics on a different course. It will bring an end to the history of using power to take more power. It will give power to councils, power to communities, power to voluntary groups and power to the people, in the knowledge that the more powerful the people are, the stronger our society is.
Question put, That the amendment be made.