Cities and Local Government Devolution Bill [Lords]

Christopher Chope Excerpts

Monday 7th December 2015 Commons Chamber

[Mr Christopher Chope (Christchurch) (Con)]

I am concerned about amendment 56 and the Government’s acceptance of it, albeit subject to the proposal in amendment (a).

The reasons for my concern go back some time. Twenty years ago, before I was privileged to be a Member of Parliament, I served on the Local Government Commission, which looked at structures of local government in England, including at whether councils should switch from a two-tier structure to a unitary one. The method we adopted in those days was to invite local people and councils to submit evidence, and to hold public inquiries and hearings on the evidence. It was very much a bottom-up process. That was decided by consensus in the commission. In due course, it made recommendations to the Government, which were adopted by Parliament if changes were involved.

In Dorset, which I have the privilege of representing in Parliament, there was a lively debate about whether Poole and Bournemouth should become unitary authorities, with Dorset County Council remaining a county council and a two-tier system operating in the rest of the county. In the end, it was agreed that Poole would become a separate unitary authority, as would Bournemouth, but the remainder of the county council area would be two-tier, with Dorset County Council dealing with the main services such as education and social services, and the borough or district councils dealing with the services closest to the people.

Nothing that has happened in the 20 years since leads me to believe that people in Christchurch, East Dorset or Dorset are anything other than content with the current arrangements. When there was all this talk about the possibility of change being forced through by the Government, I was assured by my right hon. Friend the Secretary of State that nothing would happen to change things in Dorset unless it had the wholehearted consent of the councils concerned. On that basis, a half-baked proposal introduced by Poole, with support from Bournemouth, to try to set up a new unitary authority incorporating Christchurch and East Dorset, could not work. Dorset County Council understandably said that it would mean that part of its area, which enables it to provide good services and make economies of scale, would be taken away and no longer be included in Dorset county. The line, which the Secretary of State articulated to me very persuasively, was that there was no need to worry, because nothing would be imposed from the centre. It was something that would only come from the bottom up.

That is where we were until today and the inclusion of amendment 56 on the amendment paper. I assumed that the amendment did not have Government support, and I had not applied my mind to the question of opposing it. I assumed, on the basis of what I had been told, that it would be opposed by the Government. Much to my amazement, I found that a manuscript amendment had been tabled, suggesting that the Government were going to accept amendment 56, albeit on the basis that it would only be in operation until 31 March 2019, which coincides with the end of the current period for district councils. The terms of office for all the district councils that were elected last May expire at the end of March 2019.

That is the effect of the Government amendment, and they have not provided any detail about the criteria that they will use to exercise their significant power to intervene against the wishes of one or more local councils in, to take my county example, Dorset.

[Sir Edward Leigh]

I hope that the Minister is listening, because it is open to him to intervene on my hon. Friend, to make it clear that in areas such as Lincolnshire and Dorset we should only proceed towards a unitary authority by consent.

[Mr Chope]

Of course, it would be open to the Minister to do so. I understand—I have been told privately, not on the Floor of the House—that the Government are neutral on this. They do not have an agenda to try and create unitary authorities.

[James Wharton]

May I take the opportunity, as presented by my hon. Friend the Member for Gainsborough (Sir Edward Leigh), to confirm that it is indeed the Government’s intention to build that consensus? We are not going to impose change on areas that do not want it. However, we have been persuaded, that, as proposed in amendment (a), areas should not at the same time be prevented from being part of devolution deals. We are seeking to build consensus, not impose change on areas, but we should have the flexibility to ensure that we can deliver the deals that local people want.

[Mr Chope]

I am grateful for that, so far as it goes, but will the Minister explain how he will deal with the situation in, for example, Dorset? The county council wishes to retain control over the area that it currently governs. If one or more district councils in that county council area wish to enter into a unitary arrangement with, for example, Poole and Bournemouth, who will prevail? Is it going to be the will of the county council or is it going to be the will of, for example, Christchurch Borough Council? In my constituency, a number of councillors serve on the borough council and on the county council. To which group will the Government pay heed, or will they say, “Because there is no agreement, there can’t be any progress”, which I understood was the Government’s policy?

[James Wharton]

Of course we want to find consensus. Tempted as I am to go down the route of discussing individual proposals in too much detail, there is no intention to set out here or at any other time some sort of rule that would allow districts always to determine what happens, or counties always to determine what happens. We want to talk with local areas, take representations from those local authorities and local people, from local enterprise partnerships and, of course, from hon. Members representing those areas to build a consensus as to how best we should go forward with this process. The Secretary of State will apply a statutory test, which I will talk about later, but I hope I can at least give my hon. Friend that reassurance.

[Mr Chope]

I am grateful to my hon. Friend, so far as it goes, but basically he is saying that the Government will now decide. A few months ago the process was to be bottom-up, driven by the local councils: if they wanted change, they would be able to introduce change. Now we are told that nobody will be able to dictate, neither a borough council nor the county council, but ultimately the Government will decide. This is a significant change of Government policy, announced in the form of a manuscript amendment to amendment 56.

[Sir Edward Leigh]

This is an interesting triangular discussion and it is terribly important. What I think my hon. Friend is looking for, and what I am looking for—again, the Minister can intervene on my hon. Friend—is an assurance that if either Dorset County Council or one of the district councils does not want change, that would effectively be a veto, and the same would apply to Lincolnshire and other rural areas. In other words, change would proceed only by consensus. The Minister says he wants to proceed by consensus, as I understand it, and that is extremely important. Again, he can intervene on my hon. Friend.

[Mr Chope]

I am grateful to my hon. Friend for his intervention and for his suggestion that we might be able to find a modus operandi between the two of us, who are very concerned about this, and the Minister, who I know is doing his best to give us assurances which will enable us to support amendment 56, as amended by the Government, rather than dividing the House on it. I am happy to give way once more to the Minister if he is able to give the sort of undertaking that my hon. Friend the Member for Gainsborough was suggesting he might like to give.

[James Wharton]

I thank my hon. Friend for giving way. I will talk more about this issue when I speak to the new clause and amendment later. It is important to be clear that this is not about allowing areas to veto. We want to allow flexibility to build that consensus. The Government’s intention is to work with local areas to deliver economically sensible areas of devolution, with structures that sit beneath them that allow those things to be delivered and that potential to be realised. So it is not about giving one area or another a veto or taking a particular mandated approach; it is about having the flexibility to deliver what different areas need. That is what the amendment allows, which is why we are looking at it so closely and are keen to see it discussed further and delivered as part of the Bill.

[Mr Chope]

I am grateful to my hon. Friend for that intervention, but I am afraid that what he said goes against the position that we have already established, which was explained to me by the Secretary of State—namely, that the Government were not pushing any of this agenda, but that this agenda could be promoted by individual councils if they wished and if they had the agreement of their neighbouring councils. Now we are told that it no longer depends on their having the agreement of their neighbouring councils, but that the Government will intervene if they think the consent of a neighbouring council is, for example, being unreasonably withheld. That has not been spelled out yet in the legislation, but it is implicit in what the Minister says—a completely different proposition from what we had before.

This is a sensational change in the Bill, because up until now we had been told that the Government were neutral and that they were enabling councils to do what they want. If this measure goes through as the Government obviously want it to do, one of the consequences is that between now and 2019, in counties such as Dorset, instead of getting on and running local services for local people, the councillors and their officers will be preoccupied with arguing the toss about new structures—structures which, as I have already said, were established 20 years ago and have not been criticised at all. Small councils such as Christchurch Borough Council—the ancient borough—are threatened with losing their independence. Likewise, East Dorset District Council is threatened with losing its independence, ultimately at the whim of the Government.

This is all done, supposedly, in the name of devolution, but a district council is a highly devolved body because it is close to the local people. It decides those all-important planning applications in accordance with the wishes of the local people. I see my hon. Friend the Member for Bournemouth West (Conor Burns) in his place. He will know that one of the reasons that Bournemouth has great tower blocks on its clifftop is that for many years it has had a different planning policy from that of Christchurch, which has an equally delightful clifftop but has not wrecked it by allowing enormous tower blocks on it. That is why Highcliffe is still an attractive place in which to take a holiday, like Friars cliff and other places in Christchurch, which are gems on the south coast.

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[Mr Chope]

It is interesting that the opposition leader on Poole unitary authority said he thought it was important that this issue should be dealt with by the people of Poole and that there should be a local referendum. That was pooh-poohed by the leaders of Poole and Bournemouth. My hon. Friend refers to leaders, but we must ensure that the leaders accurately reflect the wishes of local people. At present they have no plans properly to consult the people of Christchurch, East Dorset, Bournemouth or Poole. They are just rushing into some discussions. If those discussions are given the extra momentum that the Minister wants to give them by accepting amendment 56, they will create enormous anxiety among the people in my area.

Christchurch and East Dorset have recently had a local plan inquiry. They now have a new local plan, under which they are able to preserve most of the green belt in their area. My constituents are very jealous of the green belt. Why is it that Poole and Bournemouth want to get their hands on the land in East Dorset and in Christchurch? It is so that they can impose their planning policies on the green belt and expand outwards into our area. That is the perception of my constituents and that is why they are so concerned about it. Up until today, I have been able to say, “Don’t worry. That is never going to make any progress,” because I know for a fact that Dorset county council regards as anathema the idea that it should have two boroughs within its two-tier system taken away from it, because that would make Dorset county council less viable. I had assumed up until now that that would give Dorset county council a veto and therefore that none of these half-baked ideas would make any progress.

[Mr Skinner]

The situation is very difficult, and it is pretty clear that the Government are making decisions on the hoof. It is almost a fag packet job. I live in and represent an area that is involved in two of these structures. One of them is dominated by Sheffield and the four adjoining council areas of Barnsley, Rotherham and so on. That is now attracting the attention of at least three, maybe four, councils in north Derbyshire—Bolsover, Chesterfield, North East Derbyshire and possibly Derbyshire Dales. On top of that, there is the D2N2 power structure which covers Nottinghamshire and Derbyshire. It is time that the Minister got to his feet and explained precisely what will happen if Sheffield demands the powers that currently reside with Derbyshire County Council around transport and takes them away from the county. We have got two power structures both vying for the same thing. Although Dorset is complicated, this is even worse.

[Mr Chope]

I instinctively think that the hon. Gentleman is right. I say that not only because I have on my wall at home a picture of his constituency that was presented to me by his council when I was a junior local government Minister—a picture that I chose—but because I think that his experience means that he understands the complexity of these issues and their potential impact on ordinary people.

The Government can sometimes give the impression that they get rather intolerant of those us who want to raise issues such as this.

[Graham Stuart]

I have tried to follow this closely but I may not have understood amendment 56, which I am trying to square with the assurances from the Minister. If his assurances are right, why would the Government support amendment 56, which will allow the imposition of this if only one affected local authority says so?

[Mr Chope]

My hon. Friend makes a good point, and perhaps the Minister will reply to it. If we are talking about genuine consensus—in other words, agreement between local authorities—then we do not need amendment 56, which is designed to enable the Government to intervene when some local authorities do not do as the Government think they should be doing. That is essentially what this is about. We might as well face up to the reality that this is a very centralising part of the Bill because it brings power back to the Government to enable them to change the structures of local government boundaries in areas such as Dorset.

[Sir Greg Knight (East Yorkshire) (Con)]

Further to the point made by my hon. Friend the Member for Beverley and Holderness (Graham Stuart), if amendment 56 is accepted, could it not, despite the promises from the Minister, be used as a lever against a recalcitrant council to say, “You’d better fall into line or amendment 56 will be brought into play”?

[Mr Chope]

My right hon. Friend knows all about levers, having been a deputy Chief Whip. That is exactly how I envisage this power being used. I am sure that that is why there was an attempt to smuggle it through at the last minute. Now we are, I hope, exposing it for what it is, which is a power grabbed by the Government to try to ensure that they can have the final word and beat their stick against a council that is not doing as they wish it to do.

[Bob Stewart (Beckenham) (Con)]

I am making the assumption that my hon. Friend would support the amendment proposed by my hon. Friend the Member for North East Somerset (Mr Rees-Mogg) to have a referendum.

[Mr Chope]

Absolutely. I am very supportive of that amendment, but I have not yet had a chance to talk about it because I am so concerned about amendment 56 and amendment (a). I am not going to restate the case about the referendum, but I think it is a necessary safeguard.

If we look at the history books we see the unintended consequences that can flow from local government reorganisation. It was only because Wandsworth council started a campaign to abolish the Inner London Education Authority that education was given back to the inner-London boroughs, which were then able to gain economic growth as a result of having good-quality education within their boundaries. The same thing happened with the Greater London Council. The Greater London Council was interfering in the lives of the boroughs in inner London and outer London, so those in charge of the boroughs at the time persuaded the Conservative Government to abolish it. As a result, parks such as Battersea park are run by the local authority—Wandsworth council—rather than by a remote authority for Greater London.

If we are not going to put proposals like this to the electorate, we must have the necessary safeguards. None of this stuff was in our manifesto. There was no suggestion that a Conservative Government were going to restructure local authorities so as to try to squeeze out small councils that are closest to the people. If we are not going to test this in a general election and amendment 56 is going to be on the statute book until the end of March 2019, it is all the more important that we should be able to have the safeguard of a referendum—the very safeguard that the Poole People party and the Liberal Democrats have sought, in vain, from the leaders of Poole, Bournemouth, East Dorset and Christchurch Borough Councils.

We are on the threshold of a big spat at local government level between different councils at different tiers and different councillors with different personalities and political parties. This threatens completely to preoccupy local government for the next three or four years. We will look back and say that this all started with the Government wanting to interfere in areas where they should not be interfering at all. They should be trusting local councillors and local people to decide what is best for them. They should not be taking away from Dorset County Council or East Dorset District Council, for example, the power to veto any proposals to change the boundaries in which they operate.

I very much hope that the House will not accept amendment 56 as proposed to be amended by the Government but will push them back to their previous position, which was that this is genuinely for local councils and local people to decide, and the Government are not going to interfere.

[Graham Stuart]

I will try to keep my comments brief, because contrasts are always a pleasant thing. It is a pleasure to follow my hon. Friend the Member for Christchurch (Mr Chope), who spoke powerfully about this issue.

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[Graham Stuart]

It leaves me in a position of having profound doubts about amendment 56. I really appreciated the Minister’s interventions setting out what the Government want to do. The police reorganisation under the previous Labour Government was top down and people did not like it. It is not that we are neutral—my hon. Friend the Member for Christchurch was wrong to say that the Government have always said they would be neutral. The Government have a position and a vision, but I think it is much smarter to offer reassurances and tell people that, whatever we think, we are not going to push it on them, because we have seen that that does not work. People have to consent to it. There will be difficult council leaders who we will think are being a pain because of their own individual interests, but we should bind our hands and restrain ourselves from just pushing them aside. We need to listen and say to everybody, “Unless you can bang heads together yourselves and get a consensus, we’re not going to come piling in, because we’ve seen where that ends up.”

It might be a Labour Government’s instinct to think that they know better than the people, but it should be a Conservative Government’s instinct to recognise that they do not know better and that even if, in their opinion, the people are wrong—and history might show that they were wrong—it is the people who get to decide, and if they feel strongly about something that should be respected.

[Mr Chope]

Will my hon. Friend give way?

[Graham Stuart]

My hon. Friend has had a fair crack and I am going to sit down.

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[James Wharton]

I hear what my hon. Friend says, but it remains the case that a council or group of councils can now, regardless of the Bill, ask the Secretary of State to implement a proposal for structural change through the traditional processes of the Local Government and Public Involvement in Health Act 2007, even where not all councils agree or where there are competing proposals for different councils. He has those powers, but only as part of a convoluted and lengthy process. This is not about forcing unwanted change on areas just because we have the power to do so; it is about enabling the flexibility to deliver the right devolution deals for areas and in a timely and flexible way. I know that hon. Members have raised concerns, but there are none the less statutory tests that have to be satisfied in doing that. This place would need to approve any change, but the fast-track process, with its significant safeguards, is a welcome one.

The new process would still require the Secretary of State to lay before Parliament a report on the fast-track process, including on matters he has taken into account when deciding to use it, and I reiterate that it could not be used without Parliament’s approval. Having carefully considered and weighed the arguments; having listened to the comments of my hon. Friend the Member for Carlisle and others; and having considered the need to ensure flexibility if we are to make devolution last, we have decided to support the amendment. We have tabled a manuscript amendment so that it is for a trial period and not something that would necessarily last in perpetuity; none the less we welcome the flexibility in the amendment.

[Mr Chope]

Will my hon. Friend confirm that the Secretary of State would not, under any circumstances, force change on a local authority against its will, and is really only interested in encouraging local authorities to talk to each other? He said, at the beginning of his remarks, that the starting point remains that change will not be forced on any one but suggested that ultimately the Government wished to have the power to force it.

[James Wharton]

I remind my hon. Friend of my earlier comments: those powers already exist. The Government’s intention is to find consensus, to build on the local desire for devolution and to deliver lasting devolution to areas that will benefit from it. Those powers are already there. This is about ensuring we can deliver, in a timely way, the devolution that local areas want, but I can absolutely reconfirm the Government’s commitment to seeking and building on consensus. That is how devolution will stand the test of time.

Amendments 16, 30 and 55 ensure that criminal liabilities of a public authority can be transferred to either a local government or combined authority on the same basis as other liabilities when public authority functions are conferred. Amendments 17 and 31 amend clauses 7 and 16 respectively and allow references in a transfer order or regulations to be made to a formal document, such as guidance, which can be amended from time to time.

Amendment 36 is a technical amendment substituting the original word “jointly” with the new word “concurrently”. The change is necessary to ensure that certain transport functions being carried out by strategic transport bodies and local authorities can be undertaken concurrently rather than jointly. Amendment 3 would change how mayors for combined authorities should be elected. We have debated this matter at length. We believe that, where we are electing an individual to exercise significant executive power, the voting system for which we have made provision is the right one, and that therefore the amendment should be rejected. Finally, amendments 10, 37 to 43, 45 and 44 are necessary to bring the Bill into line with the arrangement in London. They provide clarity and consistency in respect of mayoral deputies with police and crime commissioner functions.

I hope that hon. Members will accept the Government amendments and reject Opposition amendments and that the House will continue broadly to support the delivery of devolution, on which there is so much consensus and support.

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[Greg Clark]

I thank all hon. Members from both sides of the House who have contributed to the development of the Bill, particularly those who participated in the extensive scrutiny on the Floor of the House both in Committee and on Report. The House will observe that we have followed the principle of listening to the views of Members, both in Committee and on Report. We made several improvements to the Bill after having heard serious representations from those across the House. I want to put on the record my thanks to my officials and to the Clerks, who have guided us adroitly through every clause.

I also want to thank councillors of every party and business leaders from across the country who have helped to give this Bill the momentum it deserves by embracing the localism agenda that began in the last Parliament. Important though the Bill is, it is worth noting that it is not the only means by which devolution is being advanced. For example, the Chancellor’s announcement that 100% of business rates would be retained by local government, rather than sent to the Treasury, is a significant step forward for the greater independence of local government.

I want the Bill to commence several things. I want it to allow the often latent potential for economic growth across all parts of the country to be better unleashed. The Bill and the process that we have introduced have brought businesses right across the country into close collaboration with their local authority leaders. The degree of enthusiasm for this has been gratifying.

The Bill allows reform where civic leaders and councillors desire it. It is a Bill that proceeds from the bottom up, rather than the top down. That makes it a novel Bill in the history of legislation concerning local government that this House has considered. It is a Bill that does something that previous Governments have baulked at, which is to transfer deliberately powers that Ministers and Governments have held and exercised in Westminster and Whitehall to authorities across the land. The insight of the Bill is that those objectives can be achieved together if local people are given their voice and allowed to set their arrangements in their own way.

The breakthrough is the recognition that not all places need to be the same. One of the glories of this House is that we know that each of our constituencies is very different from the others. No two places are the same. A world in which policy is identical in every part of the country is a world in which policy is not well set for particular parts of the country. Each place has a different history, different strengths and different capacities.

In the past, proceeding at the speed of the slowest has hampered efforts to devolve. Therefore, the approach that we have taken has been to invite every part of the country to make its proposals to the Government from the bottom up and to encourage those with the most ambitious proposals to advance them, while encouraging other places to find their feet and take the powers that they want for themselves and their people.

[Mr Chope]

Will my right hon. Friend give the House an assurance that amendment 56 will not be used by the Government to force change on any local authority?

[Greg Clark]

I will indeed. My hon. Friend raises an important point. The whole process by which we have operated and negotiated with places has recognised that the best ideas come from local places themselves. Previous local government Bills have attempted, with unhappy consequences, to impose a Government view of how local government should be organised on reluctant local authorities. This Bill does not do that and the amendment that he mentions will not be used for that purpose either. Rather, it will bring local communities and local authorities into a discussion about what is best for their area.

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[Mr Chope]

I thank my right hon. Friend the Secretary of State for the thoughtful way in which he responded to the concerns that were expressed about amendment 56. I think that what he said will be very helpful in ensuring that the Bill is not just about devolution but evolution, and that changes happen gradually and work with the grain of what the people want locally, rather than being imposed top-down and from the centre.

What concerns people about local government—apart from the level of local taxes—is their wish to have some control over the way in which their own communities develop, and to control planning in particular rather than its being controlled by much more remote communities. For a short time I was a member of the Inner London Education Authority, which purported to make decisions on education matters throughout the inner-London boroughs. Most of its members had never ventured outside their own local authority areas, let alone visited all the other parts of London that were covered by ILEA. The danger with very large authorities is that they can lose touch with the sensitive issues that cause the greatest concern to our constituents and to local residents. I hope that as we evolve different administrative and representational models for local government we will bear in mind the need to retain the very powerful local involvement in planning. I speak on behalf of the people of Christchurch, an ancient borough with a priory church that goes back over 900 years where people enjoy the opportunity to elect their own local mayor. One of the downsides of some of the proposals is that they could result in people losing the power to be able to elect their own local mayor for their council—the person who could speak on behalf of the town. Councillor Spreadbury, who, sadly, died about a year ago, had the privilege of being the mayor of Christchurch in five successive decades, having welcomed Her Majesty in 1966 and then had four successive terms. He was typical of a local person brought up in the area and truly representing what the community felt.

Why not retain the distinctions between the different parts of our country? Why try and merge and homogenise the New Forest with Christchurch or Christchurch with East Dorset? A lot of change could be achieved by allowing back office services to be worked out together and by having single chief executives instead of multiple chief executives, but we must not lose sight of the fact that ultimately local government is for most people the body to which they look to take decisions in the best interests of the local citizens.

Question put and agreed to.

Bill accordingly read the Third time and passed, with amendments.