Local Government: Reinvigorating Local Democracy

Baroness Eaton Excerpts

Thursday 15th June 2023 Lords Chamber

[Baroness Eaton (Con)]

My Lords, it would be easy to begin my remarks by saying that this debate comes at a uniquely critical time for local government, but throughout my time as a Bradford councillor, leader of the council and chairman of the Local Government Association, I cannot think of a time when it has not been a critical time for local government. From the civic unrest we saw in Bradford in 2001 to the collapse of the Icelandic banks in 2008 to the years of austerity when the global downturn necessitated a tightening of public sector belts, there has never been a quiet year. However, it seems to me that we are at a truly pivotal point, so I am very grateful to the noble Lord, Lord Shipley, for calling the debate and reminding us of his wealth of experience as a councillor, leader and long-standing and wise champion of local government for nearly 50 years.

First, it is important that we do not get entirely mired in the challenges facing local government. We must also take time to celebrate its successes. Local government is efficient; it supports communities across the country and delivers services that so many vulnerable people rely on. Local councillors are passionate, committed to doing the best for their areas and work often-gruelling hours on local projects that can create huge, positive legacies. Our councils build houses, provide care, make people feel safe and are fundamental in creating a sense of pride in place. These are the underpinnings of the levelling-up agenda that we hear so much about.

However, it would be remiss not to acknowledge the huge challenges facing local government, some practical and others existential. One of my biggest concerns is what seems to me to be a growing disconnect between local people and the decisions being made about them. Questions around the value of elected mayors have swirled as long as I have been in local government. In some cases, they are doing great, strategic work—such as the regeneration of Teesside and of the West Midlands under Andy Street—but, equally, we see the Mayor of London making sweeping decisions about the scope of the ultra-low emission zone against the wishes of not only many Londoners but some elected representatives of his own party.

I am worried that pressure from government is pushing the establishment of new elected mayors and combined authorities against people’s wishes. Areas without mayors are being held back from getting new powers and funds, even when the geography and the economies just do not make sense.

The debate about mayors and combined authorities is sucking so much oxygen out of the room, when that oxygen should be fuelling serious discussions about the relationship between Whitehall and local and regional government. People care about delivery. They care about being able to travel easily around the local area. They care about seeing their neighbourhoods well planned, well lit and clean. They care about knowing their loved ones are well cared for. All these require long-term, strategic and joined-up thinking. But we are still stuck in a mindset that sees local government in the thrall of Whitehall, as the noble Lord, Lord Shipley, has demonstrated, constantly being asked to bid for new pots of money, council in competition with council, to supply the new infrastructure and support the services that are so desperately needed.

The levelling up fund, and the process to create new investment zones, are just two cases in point where councils are required to expend time, effort and money in filling in forms to try and get funds for projects that are clearly local priorities. And then, in a turn of the electoral cycle, those priorities vaporise and the next set of hobby-horses emerge from the ether. And councils once again sigh, read the guidance, fill in the reams of paperwork and hope that distant, remote Whitehall will see fit to bestow more funds from the benevolence of its chest—another example of decisions being made too far away from the people they affect. We can do better, and we must do better if we want strategic long-term planning and delivery of the infrastructure and services people want.

The London Finance Commission, established by the then Mayor of London, Boris Johnson, and chaired by the LSE’s Tony Travers, took a deep dive into the opportunities for serious, tangible, fiscal devolution to the capital. Its conclusions remain applicable not only to London but across the country. Primarily, the commission recommends the full devolution of the full suite of property taxes—council tax, business rates, stamp duty, land tax, annual tax on enveloped dwellings and capital gains property development tax—to allow local and regional government the stability and predictability of income to plan beyond the political cycle. I urge this Government to build on their existing commitment to devolution—such as through the business rates retention scheme—to consider how further fiscal devolution can allow local areas to determine, and achieve, their individual levelling-up ambitions.

Enhanced devolution will free local government to better meet one of the most pressing challenges facing the country: lack of housing. There is little that is more immediately of concern to young people, who, thanks to a lack of supply, often can but dream of owning their own. We are a far cry from Mrs Thatcher’s vision for a nation of home owners. Rents are skyrocketing, prices are rising much faster than incomes, and we urgently need a solution. This Government have recognised the gravity of the situation and, in 2018, lifted the housing revenue account borrowing cap, which has seen an increase at least in social housing ambitions and the scaling up of existing sites. With increased and secure funding, local government can deliver—and it does. But it is simply not enough: the HRA reform frees nowhere like the transformative amount of money required to increase stock.

In town halls across the country, one of the most pressing concerns councillors hear from their residents is the increasing reach of the net-zero agenda. Many farmers, business owners, young families and rentees cannot say exactly what it means for them but they are worried. They are worried that government will be making decisions on their behalf, often hundreds of miles away, that new policies will damage their livelihoods, and that new funding streams will bypass them. They are also worried about their businesses and their livelihoods. Yes, there is a broad agreement that changes are needed, but there are broad concerns about where those changes can come from and the remoteness of support that may be available.

Responsibility for local climate action, the management of risk and the focus on the creation and guiding of new green skills and jobs should naturally sit at the local level, ensuring that local voices and needs are taken into account, and that local ambitions are understood, and met. If local aspirations are linked to real local powers and real local responsibilities, that is when you see opportunities being truly levelled up. Maintaining complicated, unstable and centralised funding pots, coupled with a lack of clarity about responsibilities, means those worries will remain, and they will grow.

I want to finish by briefly mentioning one of local government’s most emotive and vital roles: delivering care to our loved ones. There is no doubt that delivering social care in an ageing society is one of the biggest challenges facing councils. I was very pleased that the Government recognised this, and in the Autumn Statement the Chancellor provided an additional £7.5 billion to 2025 to support adult social care. This was an important and necessary acknowledgement but it is not a long-term strategic solution. This funding will not address the underlying gaps, unmet and under-met need, market fragility and workforce pressures. Neither does it provide sufficient long-term certainty for social care to invest in different models of care which prevent ill health and promote well-being, resilience and independence.

LSE research from the Centre for Analysis of Social Exclusion has exposed significant inequalities in provision and access to social care across the country. Making sure everyone has access to the care they need will require funding: according to the Local Government Association, an additional £13 billion will be necessary. However, it needs far more. It needs a revitalised relationship between local and central government. We need a jointly agreed early intervention strategy and a far-sighted plan for the workforce of the future—a workforce that can be skilled up and supported at the local level. Without sustained long-term and reliable funding streams granted by true devolution, social care will remain caught in the political cycle, to no one’s benefit.

To end, I want to strongly reiterate the passion, vision and talent of councillors and local government officers across the UK. They are embedded in communities, and their commitment is helping their communities thrive. It is time that all that talent and energy is fully embraced by Whitehall if it wants to deliver on its national growth ambitions. That is the pivotal point we are at, and one that I am sure the Minister will recognise. I want to thank Councillor James Jamieson for his six years of service to local government as the chairman of the Local Government Association. He has been a fantastic and thoughtful advocate for the sector. I also wish the very best of luck to the incoming chair, Councillor Shaun Davies, who will certainly have his work cut out.

As I said at the start, there are going to be many uniquely critical years for local government ahead, and I remain convinced that local politicians of all parties can—and should—be empowered to deliver for their residents.