Levelling-up and Regeneration Bill

Baroness Scott of Bybrook Excerpts

Committee stage
Monday 13th March 2023 Lords Chamber

Finally, I agree with the noble Lord, Lord Carrington, on the issues he raised. One of the challenges of combined authorities, which I see happening even in my own combined authority in West Yorkshire, which everybody will think is a big urban area but is not—it has substantial rural areas—is that the rural areas and issues are largely ignored, because of the challenges of economic development, housing and transport in big urban areas. A proposal or suggestion—in this case, an amendment—to enable specialist sub-committees of a CCA to focus on rural issues is very positive, and I certainly support it. With those comments, I look forward to the Minister’s response.

[The Parliamentary Under-Secretary of State, Department for Levelling Up, Housing & Communities (Baroness Scott of Bybrook) (Con)]

My Lords, the amendments in this group relate to scrutiny of combined county authorities. I think that we all agree that effective scrutiny of a combined county authority, as with any other local authority, is a key aspect in providing the strong accountability that we all wish to see. The noble Baroness, Lady Pinnock, is absolutely right: it is about not just scrutiny after the event but overview before the event as well, as any good local authority would be doing at the time. I also say this to her: the Bill makes provision for payments of allowances to local authority members who sit on overview and scrutiny, and audit, committees.

Noble Lords will be aware that Schedule 1 provides the underpinning processes for holding a combined county authority to account. Through Amendment 77 the noble Lord, Lord Shipley, wishes to put provisions in the Bill requiring a combined county authority to publish a report of an overview and scrutiny committee if that committee believes that publication of that report is in the public interest.

I reassure the noble Lord that Part VA of the Local Government Act 1972 provides powers to require the publication of reports of a committee or sub-committee of a principal council, including overview and scrutiny committees. Schedule 4 to the Bill amends Part VA of the Local Government Act 1972 to apply these provisions to combined county authorities. I hope that this provides sufficient reassurance to the noble Lord that further amendments in this area are not necessary.

Amendment 78 was tabled by the noble Baroness, Lady Taylor of Stevenage. We absolutely agree on the importance of overview and audit, as I have said. We recognise that it could be appropriate for representatives from district councils within a combined county authority’s area to be members of a CCA’s overview and scrutiny committee. However, our approach is that this issue of representation is best decided locally. The Bill provides for combined county authorities to invite representatives of district councils, along with other appropriate persons, to be members of their overview and scrutiny committees. The powers are already available to achieve what she seeks.

I recognise that the noble Baroness is perhaps seeking to place a requirement on combined county authorities to ensure that chairs of overview and scrutiny committees of district councils in the CCA areas have to be members of the CCA overview and scrutiny committees. As we have said many times, we prefer a localist approach of enabling those in the area the ability to form their scrutiny committees, rather than dictating this from central government.

Amendment 79 tabled by the noble Lord, Lord Shipley, seeks to prevent a combined county authority restricting the work of an overview and scrutiny committee without good reason. The provisions in this schedule mirror exactly for the combined county authorities the overview and scrutiny arrangements in place for combined authorities. It is important to ensure consistency in approach to robust accountability across all those authorities that have functions and funding conferred to them from the Government.

As with combined authorities and local authorities, combined county authorities are public bodies required by public law to act reasonably in making decisions. It is only right that each combined county authority should be able to decide its own overview and scrutiny committee operational arrangements which best match its local circumstances. This is what this provision in the schedule does.

These operational arrangements will be set out in a combined county authority’s local constitution, to which it and all its members are bound. As such, there is no requirement for this amendment. A CCA cannot withhold an overview and scrutiny committee’s powers. Without such proposals in place that have been consented to by all parties, overview and scrutiny committees will not be able to undertake their role effectively.

Amendment 80 was tabled by the noble Lord, Lord Carrington, who I thank for being the voice of rural committees, which are extremely important. This amendment seeks to give combined county authorities’ overview and scrutiny committees the ability to establish a rural sub-committee. I see that is very important for many county authorities, and I can confirm that the existing provisions enable a combined county authority’s overview and scrutiny committee to do this, should it wish. Paragraph 2(1) of Schedule 1 allows a CCA’s overview and scrutiny committee to appoint one or more sub-committees, and they could, of course, be rural sub-committees.

Amendments 82 and 83, tabled by the noble Lord, Lord Shipley, are about the chairs of overview and scrutiny committees and sub-committees. Schedule 1 sets out that a chair of a combined county authority’s overview and scrutiny committee has to be of a different political party than the mayor in the case of a mayoral CCA and of a different political party to the majority of members in the case of a non-mayoral CCA or an independent person. These amendments seek to provide an additional criterion that the chair cannot have been a member of the same political party as either the mayor or majority of members for a non-mayoral combined county authority for a period of five years prior to appointment.

While we agree with the noble Lord that overview and scrutiny committees are an important part of the accountability process, we believe this amendment to be an unnecessary extra hurdle. Potential chairs’ credentials should be treated on the basis of their current political membership, or lack of it in the case of an independent chair. This is a consistent approach throughout local government. There are no requirements to look back over previously political membership, and we do not think there should be one in these new arrangements.

Amendment 84, tabled by the noble Lord, Lord Shipley, looks to increase the minimum number of independent members of a combined county authority’s audit committee to three. The Government believe that devolution should be locally led, as I have said many times, and recognise that greater functions and funding must come with strong accountability. The Government’s policy approach is to allow each combined county authority the flexibility to decide its own operational arrangements for its audit committee to best match the arrangements to local circumstances. Currently, this allows CCAs to decide how many independent persons should be appointed to an audit committee, providing that there is at least one independent member.

The noble Lord, Lord Shipley, and the noble Baroness, Lady Taylor, brought up the issue of who will be the members of audit committees. The regulations that will establish combined county authorities will set out audit committee arrangements. They will provide that, where practical, the membership of an audit committee reflects the political balance of the constituent councils of the combined county authority. Membership may not include any officer from the combined county authority or the combined county authority’s constituent councils. We await that further information on membership. The amendment that the noble Lord seeks to introduce would take away some of this flexibility, which might not best fit the local circumstances of the combined county authority.

Finally in this group, the noble Baroness, Lady Taylor of Stevenage, tabled Amendment 85, which would place a duty on the Secretary of State to facilitate the sharing of best practice between overview and scrutiny and audit committees of combined county authorities. We recognise that sharing best practice makes an important contribution to the delivery of effective scrutiny functions across the local government sector as a whole. However, we believe that this works best where best practice sharing is locally led rather being a diktat from above.

When they are established, combined county authorities will become part of a broader local government framework and will receive support in developing and improving scrutiny functions. The existing combined authorities are already working together to share best practice between their organisations, including considering effective scrutiny. This includes via the M10 network, which is led by the combined authorities but which government engages with regularly.

Combined authorities are also supported in their work on scrutiny by the Centre for Governance and Scrutiny, which looks at specific challenges across all local government, including combined authorities, and works with them to enhance the effectiveness of their scrutiny. Once established, combined county authorities will also be able to operate and share best practice in a similar way to those authorities already in place. I hope the noble Baroness agrees that—

[Baroness Taylor of Stevenage (Lab)]

I hope the Minister will excuse me. I find that response about the sharing of best practice a little confusing. What we were trying to understand was how the work across the CCA picture nationally would be shared. I am not clear how that will work across the piece—across the country. There will, clearly, be the development of good practice in audit and scrutiny. Is it intended that that will sit within a framework such as, for example, the Local Government Association? Where will it sit, and how will those authorities be able to share what they are doing properly and effectively?

[Baroness Scott of Bybrook (Con)]

For a start, they will still be members of the Local Government Association, I assume, as will their members; so there is that route. As we have said, the combined authorities already in existence are already joining together themselves and sharing good practice. I would imagine that the CCAs and further combined authorities will also be doing that sort of sharing of best practice. The department will obviously keep a close eye on a new structure, work with those local authorities and be able to share any good practice from that as well. As usually happens with change, everybody wants to get together to see how it is going. I can give your Lordships an example of when I took a local authority to a unitary authority, and other authorities were going to unitary authorities at the same time. We all joined together and shared best practice. It did not have to be imposed on us; we did it as a matter of course. I think local government is good at doing that and will continue to do so into these new ways of working.

I hope the noble Baroness will agree that, as the work currently undertaken elsewhere should be locally led, there is no need to place a duty on the Secretary of State to facilitate the sharing of best practice between combined county authorities.

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[Baroness Scott of Bybrook (Con)]

My Lords, this group of amendments covers a number of matters relating to combined county authorities, combined authorities and local authorities, including NHS functions, the conferral of additional functions on combined authority mayors, the fair funding review, trade union liaison and bus services.

I start with Amendments 89 and 90, tabled by the noble Lord, Lord Hunt of Kings Heath. Together, they would require the Secretary of State to publish reports on proposals for the devolution of health functions to authorities and subsequent reports at 24-month intervals. I hope I can reassure the noble Lord and other noble Lords that the existing provisions for reporting on the conferral of health functions on to a local authority, combined authority or combined county authority are sufficient. The regulations that would confer health functions on to a local area would be accompanied by an Explanatory Memorandum setting out why the functions are to be conferred. The regulations also require parliamentary approval, giving Parliament the opportunity to consider the impact of such a conferral of functions. Also, under Section 1 of the Cities and Local Government Devolution Act, the Secretary of State has to publish an annual report about devolution, including listing any functions—including health functions—devolved to areas in the preceding 12 months.

The noble Lord’s explanatory statements say that these amendments are intended to probe our

“commitment to transferring NHS responsibilities to local government”.

To clarify, our devolution legislation is enabling legislation. Where an area is interested in the conferral of health functions on to a combined authority, local authority or combined county authority, it is possible to do this via secondary legislation. To date, the only area that has taken up this opportunity is the Greater Manchester combined authority, as we have debated; however, in principle, other devolution bids can include these same requests.

Section 18 of the Cities and Local Government Devolution Act 2016 sets out which health functions can and cannot be devolved. As noble Lords have mentioned, the kinds of functions that can be devolved include the joint local commissioning of health services. In contrast, the kinds of functions that cannot be devolved include, as noble Lords might expect, health service regulatory functions vested in national regulatory bodies responsible for such functions. Let me be clear: the devolution of health functions does not alter the Secretary of State’s core duties in relation to the NHS. As this Government have consistently made clear, they are and remain a priority for us.

Amendment 91, tabled by the noble Baroness, Lady Hayman of Ullock, would require the Government to co-operate with trade unions representing employees of combined county authorities that have responsibilities for transport. I support the noble Baroness’s sentiment here that it is important that we engage with trade unions representing transport employees of CCAs. It will, however, be the combined county authority itself as the employer that will be involved in recognising and collectively bargaining with any trade union representing staff at that workplace.

The Secretary of State will not be party to that relationship. Therefore, placing an additional requirement on the Secretary of State to co-operate with a trade union representing those staff risks undermining the relationship between the combined county authority, as the employer, and the trade union. I do not think that this would be appropriate; it is for local agreement. More generally, the Secretary of State consults with a large number of groups, including trade unions, on issues that affect local transport in combined county authority areas.

I shall move on to the Clause 58 stand part debate. Turning to the issues raised by the noble Lords, Lord Hunt of Kings Heath, Lord Shipley and Lord Bach, and other noble Lords, including the noble Baroness, Lady Hayman of Ullock, Clause 58 introduces a new process enabling mayors of combined authorities to take on new public authority functions via a request to the Secretary of State to deepen devolution, in order to remove barriers and give our local leaders more powers to drive the economic, social and environmental improvements locally that their residents, businesses and areas need. It is, however, deliberately limited in scope.

The provision relates only to the transfer of other public authority functions; namely, those currently carried out and funded by organisations other than local authorities such as government departments or their agencies. It makes no change to the consent regime for the transfer of local authority functions, as set out in the Cities and Local Government Devolution Act 2016, because we fully recognise that local agreement is key to successfully transferring such functions either to be delivered across a wider geographical area by a combined authority or, in some circumstances, to be exercised by the mayor individually.

We have also included an additional safeguard on the use of this provision to make sure that the voice of local authorities is still heard. In making any request for new functions to the Secretary of State, mayors will need to set out the views of their constituent councils and then provide a rationale for proceeding, if any of them disagree. More broadly, this clause also retains the long-established principle that we have had for all combined authority legislation that deepens devolution through new powers; that is, that it must be subject to what has often been referred to as to the triple-lock of consents. It must be consented to locally—in this case, by the mayor with the input from the constituent councils—agreed by the Secretary of State and approved by Parliament. I hope my explanation provides noble Lords with further information such that they could reconsider their opposition to this clause.

On Clause 59, raised by the noble Lords, Lord Bach, Lord Hunt of Kings Heath and Lord Shipley, and many others, the levelling up White Paper, which was consulted on widely, included reference to mayors of combined authorities taking on police and crime commissioner functions where policing boundaries were coterminous with those of the combined authority. It also committed the Government to taking steps to remove the barriers to more combined authority mayors taking on PCC functions. Clause 59 amends the existing provision by removing the requirements of consent from the combined authority and its constituent councils to the transfer of the PCC functions to be exercised by the mayor. This will enable the Secretary of State to make an order providing for a combined authority mayor to take on PCC functions for the combined authority’s area, subject to mayoral consent only.

PCC functions can be exercised only by the mayor. Combined authorities and their constituent councils have no role in the exercise of PCC functions. Therefore, the clause makes it clear that only mayoral consent is required for a transfer. These changes are designed to enable more mayors to take on PCC functions where this has been agreed; for example, within a devolution deal, in line with our White Paper commitment. The transfer of PCC functions to a combined authority mayor would not only preserve the democratic accountability established by the PCC model but can also offer wider levers to prevent crime. Powerful local mayors—

[Lord Bach (Lab)]

I am sorry to interrupt the Minister. I thank her for what she has said so far, but I want to ask her why there is no need for consultation of any kind under Clause 59. She praised the consultation that was necessary under Clause 58 and made it part of her argument. Why is there none in Clause 59?

[Baroness Scott of Bybrook (Con)]

My Lords, that is because, as I said, the role of the PCC does not impinge on the roles of the constituency councils. It is purely a role for the mayor. When you are looking at things to do with health, you are probably including the care roles of many councils.

[Lord Bach (Lab)]

Each district council has to have a community safety committee, which is made up of district councillors, others and the local police—it is very much involved in policing. As has been said earlier, and used as an argument by the Government, every police and crime panel must have someone from each district council in the police force area. There is a clear link between the constituent councils. Given that link is so important, how can the Minister really argue that on Clause 58 consultation is necessary but on Clause 59 it has nothing to do with the districts or the county?

[Baroness Scott of Bybrook (Con)]

I did not say it has nothing to do with the districts or the county—

[Baroness Pinnock (LD)]

I apologise to the Minister. I just thought I would add to the questions now and not interrupt further.

Is this an admission by the Government that the current system of independently elected police and crime commissioners has not been effective? I cannot think of any other reason why the two separate roles should be combined unless it is felt that the separate role of the police and crime commissioner has not been as effective as the Government wished.

[Baroness Randerson (LD)]

In the interests of making life easier for the noble Baroness, perhaps I could add my question. What assessment have the Government done of the crossover of funding between local authorities and police services for community safety work and partnerships? That is a frequent model. When the noble Baroness says that the police and crime commissioner role has no impact on local authorities, surely, that funding flow is relevant.

[Baroness Scott of Bybrook (Con)]

I did not say that the councils do not have any concerns or interest in the role of the PCC. Of course, they do, as we have heard, with community safety committees et cetera. What I said was that the councils do not deliver any of the services required by the PCC. That is the job of the local police. Therefore, there is no crossover in that way.

[Baroness Taylor of Stevenage (Lab)]

I do not know where that information has come from about councils not delivering community safety-related services. It is just not the case. We look at anti-social behaviour; we look at domestic abuse. In my own local authority, we have a very big and effective domestic abuse service, and we work with our colleagues in the police. We have issues related to local area policing. We set our priorities with our local policing teams and deliver services jointly to address those priorities. I could go on—I know the noble Baroness will know some of this from her own experience in local government. It is just not the case that local government does not deliver community safety services in the same way that we deliver health prevention services and so on.

[Baroness Scott of Bybrook (Con)]

I think we are going to disagree on this, and there is a fine line. I also want to answer the questions from the noble Lord, Lord Bach, that I did not answer at Second Reading, for which I apologise—I am conscious of that—but because the amount of information I have is not sufficient to answer them today, I will write to him and talk to Home Office colleagues as well, because I think it is important we get their views. I will also write more about the responsibilities of the PCC and the local authorities, because it is important that we get this right and that noble Lords understand the reasons why we are doing this.

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[Baroness Pinnock (LD)]

I am struggling with this logic. The combined authority mayor can appoint a deputy to be responsible for police and crime, but the elected mayor will take the accountability if things go wrong. Why, then, can we not have an elected police and crime commissioner? That is the logic of what the Minister is saying.

[Baroness Scott of Bybrook (Con)]

That is not the logic. It is an opportunity for the directly elected mayor to be able to join up all these issues within their geographic area and deliver more joined-up services by working with others.

[Lord Scriven (LD)]

Do the Government therefore suggest that, at a local level, a council leader could appoint their own cabinet rather than taking from elected councillors? That is the logic of what the Minister is saying.

[Baroness Scott of Bybrook (Con)]

That is not the logic. It takes the whole issue too far. Cabinet members will come from the elected members. That is required in the legislation.

[Baroness Hayman of Ullock (Lab)]

The one thing that this has not answered is the issue of the politics, looking at the West Midlands. Does the Minister not think that, if a mayor can appoint a deputy mayor to take over the PCC functions and the existing PCC is then not there, that deputy should be of the same political persuasion as the elected PCC? The people voted for someone from that party, that part of the spectrum. Should it not be specified if that is the direction that the Government are going in?

[Baroness Scott of Bybrook (Con)]

No, I do not think so. I will make it very clear: these amendments are nothing to do with the West Midlands. These amendments were in the White Paper a number of years ago and were fully consulted on. I will take the noble Baroness’s point, but that is not what normally happens. You would normally have one of your team as a deputy mayor responsible for one thing or another, as you do in London. In this case, it could be for police and crime. I do not know what West Yorkshire will do.

I would also add that Parliament’s approval is needed for a combined authority to take on any new function. PCC functions can be conferred on a combined authority mayor by secondary legislation only, which needs parliamentary approval before it can be made.

Finally in this group is Amendment 469, tabled by the noble Baronesses, Lady Pinnock and Lady Randerson. This would confer new powers on local authorities to run their own bus services, which we believe is premature. The national bus strategy states that the Government would review whether it remains right that local authorities cannot set up new bus companies. Any consideration of change to the operation of the local bus market needs to be conducted in an orderly manner, with all views and potential impacts, positive and negative, considered. We therefore intend to wait until the review of the bus strategy comes out.

[Baroness Pinnock (LD)]

Following the Minister’s earlier remarks about the mayor being able to appoint a deputy to be responsible for policing, I was wondering: are there powers for them to appoint a deputy to be responsible for buses?

[Baroness Scott of Bybrook (Con)]

I do not know about buses, but I imagine that there may be the ability for a mayor to appoint somebody to be responsible for transport in a large area. I will check that, but I am sure that it is within their powers. It is probably a very good thing to have in large geographical area, as the mayor cannot do everything in detail there. I hope that that satisfies noble Lords.

[Baroness Taylor of Stevenage (Lab)]

I have a question on the issue of buses. We have seen millions of bus miles removed from the system altogether. The noble Baroness, Lady Randerson, has very carefully and thoroughly articulated why they are so essential. It is really important that we get this bus strategy as quickly as possible so that we can start to get a sense of how local authorities can play a part in restoring some of the bus services that we have lost. Can the Minister give us any idea of how quickly that will come about? It would seem that the Bill is an ideal opportunity to put that into place. Otherwise, we will have to go through the same discussions again in a few months, a year or two years’ time to give local authorities that power. Why not use the Bill as the ideal opportunity to reinstate what we used to have back in the day? I remember a very good bus service in my own area before the powers were taken away from councils.

[Baroness Scott of Bybrook (Con)]

This is the responsibility of the Department for Transport. I will be in touch with the relevant Minister to explain the Committee’s deep concern about the issue of bus services and say that an early solution to this would be considered appropriate by the Committee. I will also find out how long it will be before we get this strategy in place. I will write that at the end of the letter, which will go to all noble Lords in Committee. I hope that noble Lords will withdraw their amendments.

[Lord Hunt of Kings Heath (Lab)]

My Lords, this has been an interesting debate. The Minister made an interesting comment at the end when she said that basically a lot of the services we are talking about are the responsibility of other government departments. That seems to me to go to the heart of one of the problems of this legislation: is it not about devolution at all. If it were really about devolution, the Government would have a concerted approach to widespread devolution, which of course would involve bus services. It is a ludicrous proposition that under this grand new devolution and regeneration system you cannot run your own buses.

On health, what the Minister said was helpful up to a point in that she said there is no legal impediment to what is happening in Greater Manchester being extended, but I do not see any drive whatever. What I see is her own department taking a depressingly narrow view of what local government should do instead of embracing the whole government machinery to say, “We are serious about this.”

The clarification on Clause 58 was very helpful, and I am very grateful to the Minister. On Clause 59, I am pretty speechless. I spoke for the Opposition when the concept of police commissioners was coming through. We opposed it. Frankly, I still have great reservations about the system. My noble friend was an excellent example but, my goodness me, the evidence of poor behaviour by some police and crime commissioners is legion. None the less, we were promised directly elected police commissioners, that the public would decide who was going to be the police commissioner and there would then be accountability through the ballot box, but it seems that this is not to apply now in a number of places. From what the Minister said, it seems that the principle of coterminosity applies to many parts of the country in terms of future mayors and police commissioner areas.

I shall make two points. You cannot exclude local authorities. They form the police and crime panel. They have a direct interest in the precept which is set and have to consult on it. It is a big move to get rid of the police and crime commissioner and simply give it to the mayor—we know the mayor will appoint a deputy and will not really be accountable because the mayor has got other things to do—without consulting the constituent local authorities which play an important role in this whole area, not just in sitting on the police and crime panel. If we are serious about wanting our criminal justice system to be more effective, the local authority has a pivotal role to play in working with the police at local level.

I urge my noble friend on the Front Bench to bring this back on Report because I believe we should take out this clause. Having said that, I beg leave to withdraw the amendment.