Cities and Local Government Devolution Bill [HL]

Baroness Donaghy Excerpts

Monday 8th June 2015 Lords Chamber

[Baroness Donaghy (Lab)]

My Lords, in January last year we had a debate on the local government finance settlement, in which many noble Lords here present took part. I said in my speech that,

“one of the key engines for growth in an economy is strong regional government with real powers”,

and I went on to say:

“If the Government are in doubt about this, why not try an experiment and give one of our cities the independence they had 130 years ago? Call it the Birmingham Independence Bill or ... the Newcastle Independence Bill”.—[Official Report, 9/1/14; col. 1690.]

That goes to show that you should be careful what you wish for.

I understand that northern leaders are supportive of the Bill, provided that it is enabling and permissive rather than another form of central control. I accept that they have to use whatever kit is given to them, as this is the only game in town. Only time will tell whether this is a genuine attempt to pass the powers or pass the buck. It will take place in the context of the hollowing-out of local government—a 37% reduction in 2015-16, and hundreds of thousands of lost jobs. The funding gap is forecast to increase at an average rate of £2.1 billion per year until 2019-20, when it will reach £12.4 billion. Heaven alone knows where the social care bill will come into that.

The Bill, as has been said, sets out the institutional framework within which future political deals will be made between combined authorities and central government. As the Centre for Cities organisation has pointed out, the Bill does not go into further detail on what powers that might include. Can the noble Baroness the Minister tell the House whether they will be spelt out in the regulations or through announcements in Parliament, and what areas might be covered? The Bill appears to make it clear that local public bodies, such as district councils and county councils, will cede ancillary powers only by consent. Can the Minister confirm that that is the case?

The Bill also makes it explicit that, should the constituent authorities provide their consent, the combined authority can assume the general power of competence, as outlined in the Localism Act 2011. This allows for local government to pursue any activity that is not explicitly prohibited by central government. Can the Minister indicate whether this power has ever been invoked and, if so, in what circumstances?

While I am on the subject of previous legislation, the Local Government Act 2010 called a halt to local authorities exploring unitary status to avoid the short-term costs of transition. The noble Lord, Lord Heseltine, who I am glad to see is still in his place and shows his staying power in this House, as well as in his political career, said in his report, No Stone Unturned, that the 2010 Act was now redundant and should be repealed. Some of us thought that it was redundant from its inception, but what plans do the Government have to repeal that Act?

If I understand the Bill correctly, there are provisions to avoid situations where one dissenting body of an existing combined authority could block the introduction of a mayor for the area. Under such circumstances, the Secretary of State would issue an order removing the non-consenting body from the combined authority arrangement. Presumably this non-consenting body had previously consented and had reason to change its mind. What would happen if its reason was valid, such as a corrupt or a joke mayor? What would happen if more than one previously consenting body changed its mind and became a non-consenting body? Would the combined authority have to break up all that for the price of an elected mayor?

I simply fail to understand—this has been mentioned by a number of noble Lords—the obsession with elected mayors. I accept the irony that I am neither elected nor representative, just like every Member of this House. I do not know whether it is an American thing or a bloke thing to think that somehow one person can speak with more authority and that somehow this is how leaders are born. To me, it represents push-button politics. I was disappointed to hear the noble Lord, Lord Skidelsky, advocate mayors in the debate on the Queen’s Speech last week. I can see the attraction, of course. Ministers would have to meet only one person rather than 12 worthy burghers. Better still, why travel up there at all? Let us invite these chaps—and they will be chaps—down from Manchester, Birmingham, Leeds and Newcastle to talk to us in London. The hard hat and high-vis outfit can then be kept for the general election campaigns.

The noble Lord, Lord Heseltine, is strongly in favour of elected mayors but his report favoured an enabling approach, not imposition. Will the Government reconsider this centralist approach of forcing authorities to have elected mayors, even though the local population have consistently rejected them? Could this not be permissive rather than prescriptive?

I note that the Bill states that, in the absence of the mayor or a deputy discharging their duties, the combined authority leaders will take decisions on a majority-vote basis. That sounds good to me; you can then cut out the two middlemen and save the taxpayer money. The most ludicrous bit is allowing the elected mayor to take on the role of the police and crime commissioner. Combining two useless jobs does not make a useful job.

Finally, the local government puzzle can be solved only if the following pieces are there: adequate funding, a fair formula for redistribution, the right balance between responsibilities and powers, and the right balance between local accountability and a more modern streamlined structure. This Bill will not solve that puzzle, but it may provide a welcome opportunity to move some powers out of London. I look forward to the debate in Committee.