Christchurch Council: Governance

Christopher Chope Excerpts

Wednesday 25th April 2018 Westminster Hall

[Sir Christopher Chope (Christchurch) (Con)]

I beg to move,

That this House has considered future governance of Christchurch Borough Council.

It is a pleasure to serve under your chairmanship, Mr Davies. Let me remind hon. Members of some important parts of the 2017 Conservative party manifesto. On page 9, it says:

“True Conservatism means a commitment to country and community…a respect for the local and national institutions that bind us together”.

On page 12, it says:

“Theresa May’s Conservatives will deliver…Prosperous towns and cities, underpinned by strong local institutions”.

On page 32, it says:

“We will support those authorities that wish to combine to serve their communities better.”

It is with those three commitments in mind that I invite my hon. Friend the Minister carefully to think again about the future governance of Christchurch Borough Council.

The most fundamental question that this debate raises is whether the future governance of Christchurch should be decided by its citizens and elected representatives or by the Government. The Government are seeking parliamentary approval to ignore the will of the people of Christchurch, its elected district councillors, county councillors and Member of Parliament. The issue was put before the people of Christchurch in a local referendum last December. They voted by 84% to 16%, on a 54% turnout, against the council’s being forced into a merger with Bournemouth and Poole to create a new unitary authority.

The Dorset (Structural Changes) (Modification of the Local Government and Public Involvement in Health Act 2007) Regulations 2018, laid on 29 March, are designed to make several changes to the 2007 Act and to backdate those changes so that an application for single-tier local government does not have to be made in response to an invitation from the Secretary of State. Since the laying of those regulations, I have tabled a series of parliamentary questions to my right hon. Friend, to many of which I do not think I have received a satisfactory response. I shall refer to one or two of them now.

Why has there been no specific consultation on the regulations to which I have referred? Two sets of regulations were laid on the same day. The second set of regulations were certainly the subject of consultation and discussion, but why was there no specific consultation on the first set—the ones to which I have referred? When was the need for the regulations first identified, and for what reason were they laid more than 13 months after the need for them arose? That was when the Dorset councils made the application that the regulations are designed to validate.

The chief executive of Christchurch Borough Council has told me in an email:

“There was no discussion at any point about the need for an invitation to be made. It was only when the draft Regulations were sent to each of the Councils that the matter of ‘invitation’ came to light”.

Why did the letter that my right hon. Friend sent on 27 March to me and other colleagues in Dorset state specifically that the draft regulations had been

“developed and worked up with all nine Councils”,

when that was not correct? In one of my questions, No. 136755, I asked him to explain why the retrospective effect and impact of the regulations was not set out and why he did not consult Christchurch Borough Council in making the regulations. This Minister answered that the regulations

“were shared and developed with the Chief Executives and Monitoring Officers of all nine…councils.”

It is clear from what the chief executive of Christchurch Borough Council has said that that is not correct. In a further briefing, the chief executive said:

“I don’t recall any discussion with MHCLG”—

the Ministry of Housing, Communities and Local Government—

“about this and my first knowledge of any of the details was in a letter, sent by MHCLG in the latter part of March to each Chief Executive to ask if their Council would give its consent to the making of Orders to bring about local government reform”.

I should therefore be grateful if the Minister would now correct the answer that he gave to my question, and the assertion that the regulations had been

“developed and worked up with all nine councils”.

The Minister has also failed to explain why he believes that the regulations have no impact on the costs of business and the voluntary sector and, as a result, do not require a regulatory impact assessment to be produced. One justification for the Cities and Local Government Devolution Act 2016 was to facilitate devolution so that businesses could be more involved with local authorities in achieving regeneration. To that end, all Dorset councils and Dorset local enterprise partnership collectively made a submission for the creation of a Dorset combined authority. The submission was made in July 2016, but remains undecided by the Secretary of State. In his statement of 26 February, he said that he intended

“now to ask the leaders of the Dorset councils how they would like to proceed with their combined authority proposal”.—[Official Report, 26 February 2018; Vol. 636, c. 20WS.]

Although the Secretary of State said some time ago that he would reach a decision on the Dorset combined authority proposal at the same time as making his announcement on local government reorganisation, I understand that there has been no further communication on this even since 26 February. Why is that? How is it that the Government believe that their decisions on local government reorganisation do not impact on the costs of business?

To take one topical example, on 6 March Bournemouth Borough Council decided to approve an investment in the construction of a hotel on the site adjacent to the Bournemouth International Centre involving some £70 million to be borrowed by the council, and

“to make consequential changes to the budget of the Council”.

I do not know whether the Minister shares my concern that that is another example of the abuse by local authorities of the preferential loan terms that they get from the Government, which enable them to make borrowings at far lower cost than the private and commercial sectors.

In a letter sent this week on behalf of other hotel proprietors in Bournemouth, it is said that

“there would be a real, adverse impact on the provision of front-line services”

if

“this highly speculative venture were to fail”.

The authors of the letter describe the prospect of failure as “disturbingly likely” and say that, in such a scenario, Bournemouth Council

“would be left to service a significantly increased debt, backed by an asset which…would not cover the value of the ‘investment’.”

The loan being taken out by Bournemouth Council to achieve its objective is described as

“the very antithesis of prudent borrowing”.

If the Secretary of State has his way, citizens and businesses in Christchurch will be saddled with the consequences of Bournemouth’s decision for many years to come. It is ironic that the justification that the Government give for seeking local government reorganisation is to achieve better value for money. Over recent years, my constituents have watched Bournemouth with dismay—from the safety of the other side of the River Stour—as they have seen one failed project after another: the IMAX cinema, the surf reef and the £395,000 pay-off for the last chief executive.

I do not think it is an exaggeration to say that there is a well-established and, I think, well-founded loathing by many Christchurch citizens of the way in which Bournemouth Council behaves. That is now coupled with a real fear that if Christchurch is forced to join with Bournemouth and Poole, it will result in a diminution of the quality of services and Christchurch taking on responsibility for enormous debts, which have been brought together by Bournemouth Council at a time when Christchurch Borough Council has been prudent. It is debt free. It has done the right thing. It has quite high levels of council tax. A report in The Sunday Times this week said that the highest council taxes in the country are in the Dorset area. They are not so high in Bournemouth and Poole, because for many years they decided not to increase their council taxes—as was prudently required—in order to ingratiate themselves with their electors.

Now, with a gap of more than £200 a year at band D between the council tax in Poole and that in Christchurch, the people of Christchurch are really worried that in the event of a unitary authority, they will not only take on the big capital debt risks to which I have referred, but will have to subsidise people in Bournemouth and Poole who are inherently, in many cases, better off than they are. For example, Poole has residents in Sandbanks and Canford Cliffs, who are immensely better off than those in many parts of my constituency. Why should Christchurch Borough Council be expected to subsidise those people long into the future?

The Government’s proposal raises some serious issues. Recently, the Secretary of State used his existing powers under section 2 of the 2007 Act to invite proposals for structural change in Northamptonshire. By so doing, he triggered requirements for consultation, under section 7(3) of the 2007 Act, and he enabled local authorities collectively or individually to put forward their own proposals. He has also set out guidance as to what a proposal should seek to achieve and matters that should be taken into account in formulating a proposal. None of those privileges, which the Secretary of State accords to councils and people in Northamptonshire, have been accorded to my constituents. Instead, a proposal has been brought forward over a long period of time, initially by council chief officers—with the support of many of the leaders of the councils at that time, many of whom have since been replaced—on the basis of a very dubious “consultation”, which took place as long ago as the autumn of 2016. In relation to Northamptonshire, the Secretary of State says that he would expect proposals to come forward and that they should be current, so that any business plans will relate to the current financial arrangements, rather than to historic ones, which is what is proposed in Dorset.

Harmonisation is a fraught issue. Given the gap of over £200 in the current level of council tax between Bournemouth and Poole, on the one hand, and Christchurch on the other, a new authority will need to levy a council tax that is ultimately the same across the whole of the new unitary authority area. Christchurch Borough Council has been insistent that in such a scenario harmonisation or equalisation should take place from the outset. A similar proposal has been accepted by the joint committee in the rural part of Dorset. However, in order to try to demonstrate that local government reorganisation would be good value, the consultation with the people was carried out on the basis of a harmonisation period of 20 years. Where did that figure come from? It came from a discussion that was held between section 151 officers from Dorset and departmental officials in June 2016. I have asked for notes of that meeting, but I have been told that no notes were kept. However, that meeting was really crucial, because on the basis of what was said at it, the consultation that was carried out in Dorset—designed to secure the approval of the people for a change from two-tier local government to unitary local government—was based on a 20-year harmonisation period.

In November 2017, the official in charge of this, Paul Rowsell, told me that the harmonisation period of 20 years was certainly off the agenda completely; that the maximum period for harmonisation would be five years, but more likely in the range of zero and two to three years; and that up until now there had never been a situation where councils had been abolished or restructured and the harmonisation period had been longer than two years.

So what happened? This relates to the issue of governance. When Christchurch Borough Council went to the joint committee, which it has joined to try to show good faith and co-operation, it insisted that the committee should accept the fairness and equity of having everybody paying the same council tax in a new area from day one, but that committee has shown absolute contempt for the council’s representations. Of course, that is not surprising, because in a new unitary authority Christchurch would only comprise 13% of the councillors and resources of that authority. Therefore, Christchurch’s interests will be in a permanent minority. This issue of harmonisation is symptomatic of the high-handed way in which Christchurch people will be dealt with in the future, were this unitary authority to come about.

That point is also emphasised by the fact that Christchurch Borough Council has at the moment 24 councillors and there are five county councillors in Christchurch. In the proposals that are being considered, the number of councillors would fall to about 10 or 11, which would be a significant diminution of democratic representation of the people of Christchurch. That means that Christchurch people would have much less influence in the future.

The fear and loathing I have spoken about is coupled with the fact that it is well known that Bournemouth Borough Council is keen to take advantage of the fact that Christchurch has a lot of land in the green belt. Under the Government’s new relaxed arrangements, if the council as a whole were to bring forward a plan seeking to remove that land from the green belt, all the protections that the people of Christchurch thought that they had in relation to green-belt land would be swept away. That is another cause for concern.

The Government have dealt with all this in a thoroughly asymmetrical way. In Christchurch’s alternative submission to the Government, it suggested that one way out of all this would be for Bournemouth and Poole to merge together and leave Christchurch as it is. That was ruled out by the Government as not permissible under the rules, because they cannot force Bournemouth and Poole to merge together if they do not wish to do so. Amazingly, Bournemouth and Poole do not want to merge together to achieve significant savings, because both of them have a common interest in getting their hands on Christchurch and its assets. Although Christchurch cannot suggest that Bournemouth and Poole merge together, Bournemouth and Poole can not only object to their own merging together, but insist that they would like to merge with Christchurch in a new unitary authority.

According to the Government’s rules, that is perfectly hunky dory and fair, but it is certainly not fair as far as my constituents and I are concerned. I fought the general election hard on this issue. Ironically, we face the prospect that one issue on which I fought hard, namely leaving the European Union, will be delivered on 29 March next year, thereby bringing back sovereignty to the United Kingdom to the delight of myself and my constituents, but two days later, the other issue on which I fought hard, namely that Christchurch Borough Council should retain its sovereignty and independence, will not be delivered, because Christchurch will lose the sovereignty that it has had, in one form or another, since 1216 or thereabouts—a long time.

When I refer back to the Conservative party manifesto, which talked about the sense of community, I have in mind the sense of community that can come only from a strong, historic association. Christchurch was around a long time before Bournemouth was ever invented, and it resents enormously my Government’s proposals to abolish it against the clearly expressed will of the people. I recently saw in the paper that the Secretary of State has said that it would be wrong for Parliament to reject the people’s verdict in the EU referendum. Likewise, the people of Christchurch think it is totally wrong for the Government to reject their verdict, which was delivered by more than 17,000 people in their local referendum last December.

Local Government Funding

Christopher Chope Excerpts

Wednesday 28th March 2018 Commons Chamber

[Sir Christopher Chope (Christchurch) (Con)]

I listened carefully to the words of my right hon. Friend the Secretary of State, and I must say that his claims that the Government support local government and that they believe all changes should be led from the ground up will ring very hollow in Christchurch, where he has announced his decision to abolish an independent sovereign council, which has been in existence effectively since 1216, against its will. Back in November, he said that there was insufficient local consent. The local council then decided to hold a local referendum, in which 84% of the people voting were against the council’s abolition and the enforced merger with Poole and Bournemouth. Yet, despite that, the Secretary of State decided, after the poll had been announced, that there was now sufficient local consent.

The Secretary of State has asserted, incorrectly, that savings will be made all across Dorset as a result, yet we know that just on the issue of the negative revenue support grant, Dorset stands to lose over £10 million a year. Despite having received assurances in private from him that that would be sorted out, we have still to see the detail and see whether he will deliver on that assurance.

Back in December 2015, my right hon. Friend’s predecessor, who is now the Secretary of State for Business, Energy and Industrial Strategy, assured the House that the Government would not abolish councils against their will. The Government have reneged on that promise, to their eternal shame, and have in so doing encouraged council chief officers to be distracted from their responsibilities to deliver good-quality local services.

One of the perverse consequences of the Government’s policy drive towards unitarisation is the destruction of small local councils that have been prudent and are debt-free, as is Christchurch. Christchurch has raised from local tax payers the money that is necessary, while the neighbouring authorities—Poole and Bournemouth—that are now going to take it over, together with its assets, artificially held down their council taxes for many years. The consequence is that the council tax in Bournemouth and in Poole is about £200 less at band D than it is in Christchurch. Those authorities are being rewarded for putting forward false budgets, while Christchurch is being penalised for having been prudent and responsible.

The Secretary of State is intent on adding insult to injury by forcing tax payers in Christchurch to carry on cross-subsidising those in Poole and Bournemouth even after the unitary authority is established. That will, for example, force my constituents in one of the poorest council estates in the whole of the west country to subsidise people living in Canford Cliffs and Sandbanks.

It is totally unacceptable and, frankly, a cause for shame that I, as a Conservative Member of Parliament who campaigned against this, have been let down very badly by my own Government. This has not been helped by the fact that the Department has kept on moving the goalposts. Originally, officials at the Department assured section 151 officers across Dorset that harmonisation, as it is called, over 20 years would be perfectly acceptable. Last autumn, they changed their view, and their advice then was that it would be for a maximum of five years, while I was told by a departmental official that it would be two years at the longest, and that it might be less.

We still cannot get any firm information from my right hon. Friend or his Department about the period of harmonisation they have in mind. However, it seems that the consultation that went out some 18 months ago, based on a 20-year harmonisation period, was a false prospectus. It has caused people across Dorset to reach a conclusion on the basis that they would all be much better off financially, when in fact they will not be; that particularly affected people in Poole.

My right hon. Friend has told me that he will try to limit exit payments for local government officers to £95,000, in accordance with the Government’s pledge. At my behest, he did go off and ask council officials in Dorset about that, and the response from them was, “Bollocks!” and “We have worked our bollocks off—no way are we going to allow our exit payments to be limited to £95,000.”

The savings being suggested are unreasonable, and this is all leading to a failure and breakdown in good-quality local government. As I think I have probably made clear during my speech, I am an extremely dissatisfied bunny as Easter approaches, because I believe in localism.

--- Later in debate ---

[Jack Lopresti (Filton and Bradley Stoke) (Con)]

I welcome the funding settlement approved by this House last month, which will see my own local authority of South Gloucestershire given an additional £3.2 million in funding. This will have a number of positive consequences, based on the budget agreed a week after this funding was announced.

The school improvement fund will double, meaning that more help will be available to ensure our children get the most out of their education. I am most proud of the fact that the extra £3.2 million will allow the council to act to help care leavers, meaning that they have increased opportunity to meet their own potential. As well as receiving council tax relief, care leavers will benefit from a programme to encourage apprenticeships. I have spoken many times before about the power of apprenticeships to encourage social mobility. I am very proud to see the money being put to such good use, so our youngsters can fulfil their true potential.

The Conservative leaders of South Gloucestershire Council have ensured that the budget is balanced for this year. It is regrettable, however, that that balance was achieved with a 5.99% increase in council tax. The introduction of council tax referendums from 2012 was the expression of a key Conservative principle that taxation should be by consent, with a mandate and as low as possible. It is, however, no surprise that when the threshold for a referendum is a 6% increase, we see a number of councils raising tax by 5.99%. A cynical observer may suggest that they do not want the public scrutiny that would come with a debate and a referendum. The lesson of Northamptonshire County Council is that financial obligations cannot be dodged and that the political leadership of our councils cannot be abandoned.

[Sir Christopher Chope]

Will my hon. Friend give way?

[Jack Lopresti]

With pleasure.

[Mr Deputy Speaker (Sir Lindsay Hoyle)]

Order. Just one second. We are not going to be able to get Members in. Members have had six minutes each and I have now dropped the limit to four minutes. We are in danger of being self-indulgent if we are not careful. Some people will not get in and that is unfair when this issue matters to every constituency.

[Sir Christopher Chope]

I withdraw my intervention.

[Jack Lopresti]

Apologies, Mr Deputy Speaker. I was just being polite.

South Gloucestershire Council managed to balance its budget, but if councils are struggling to balance their books and need more money, they should not be afraid to make that case to their residents and ask them to fund the services they need. That would require real political leadership and potentially expose some uncomfortable facts, but it would be the responsible course of action. I sincerely hope that, buoyed by the funding increase this year, South Gloucestershire Council takes this opportunity to look carefully at the governance of the council and how effectively it works.

Local Government Finance

Christopher Chope Excerpts

Wednesday 7th February 2018 Commons Chamber

[Sajid Javid]

The hon. Lady’s local authority, Bath and North East Somerset, was part of a business rates pilot in 2017-18. As I said, we have extended that pilot, which gives the local authority the ability to take advantage of that and put in place incentives for local businesses to see growth. The council estimates that it can see millions of pounds of extra income from that, which I would have thought she would support for her local community.

The business rates pilots will help to test the system, to see how well it works in different areas and different circumstances. The purpose of the pilots was to have a broad distribution across north and south, urban and rural, and small and large. The pilot areas will keep 100% of the growth in their business rates if they expand their local economies, which is double what they can keep now. I can confirm that I will open a further bidding round for pilots in 2019-20 in due course. In expanding those pilots, we have responded to what councils have told us, and we are doing the same in other areas.

Rural councils express concern about the fairness of the current system, with the rural services delivery grant due to be reduced next year. In response, I can confirm today that we will increase that grant by £31 million in 2018-19. That is £16 million more than was proposed in the provisional settlement, taking the total figure to £81 million—the highest amount ever paid in rural grant, at a little over the sum paid in 2016-17.

We recognise that the so-called negative revenue support grant is causing concern. Changes in revenue support grant have led to a downward adjustment of some local authorities’ business rates top-up or tariff for 2019-20. We know we must address that problem, and we will consult formally on a fair and affordable set of options for doing so, with plenty of time to reflect on the findings before next year’s settlement.

Following discussions with the sector, we are continuing with the capital receipts flexibility programme for a further three years. That scheme gives local authorities continued freedom to use capital receipts from the sale of their own assets, to help fund the transformation of services and to release savings.

[Sir Christopher Chope (Christchurch) (Con)]

May I ask the Secretary of State about the negative revenue support grant? He has not actually said expressly that there will no longer be a negative revenue support grant. My local councils are saying that the Government cannot be trusted on this, and unless and until the Government commit themselves to saying there will not be a negative revenue support grant, they will have to budget on the basis that there may be one.

[Sajid Javid]

My hon. Friend makes a very good point. Such certainty is of course very important for many local authorities, including his own, and I hope I can now make the situation clearer. It is our intention to deal with the problem of the negative RSG, but we have yet to determine exactly the best way of doing so and providing support to the local authorities affected, and that is why it is right to consult on it. I absolutely commit to him that we will do so, and when we do—our plan is to do it in the spring—I hope that he and others will make an input to make sure that we get it right and really deal with this problem for his authority and many others.

Parking (Code of Practice) Bill

Christopher Chope Excerpts

2nd reading: House of Commons
Friday 2nd February 2018 Commons Chamber

[Sir Greg Knight]

I certainly would condemn that, and I will share an example with the House shortly of a similar case that I regard as outrageous.

Today, we have the opportunity to tackle this issue. I know that the worst abuses feature in the emails and postbags of all Members of Parliament. Not only my constituents in East Yorkshire but motorists right across the country are angry and calling for action.

One such motorist is Mr O’Keefe. He was driving in a private industrial estate, searching for a particular outlet that he was having difficulty finding, when he stopped in an empty lay-by for 15 seconds to check his satellite navigation settings. It transpired that he was caught by a passing security van equipped with a camera, and a week later he received a ticket for £100 for stopping in breach of a sign situated further back on the road that he had passed at 30 mph. The parking company agrees with his version of events—it accepts that he was stationary for only about 15 seconds—but when he made a complaint and then appealed to the Independent Appeals Service, he was fobbed off in both cases and he continues to receive threatening letters.

Even homeowners have been hit, as the hon. Member for Cardiff South and Penarth (Stephen Doughty) said in his intervention. A case was brought to my attention concerning residents in a Salford block of flats to whom over 200 tickets were issued for parking in their own car park in just one month. They were given a day’s notice to display a newly designed permit by the management firm, which posted warning letters and the new permits through residents’ letter boxes only one working day before it enforced the new regime. Some of the residents were away on holiday and others did not receive the new parking permit, but they found that their vehicles, parked in their own dedicated spots, had a penalty of £100 stuck to the windscreen. At least one resident who had been away on holiday came back to find tickets to the value of £2,000 on his car. The dispute is ongoing.

[Sir Christopher Chope (Christchurch) (Con)]

Does my right hon. Friend accept that all this injustice is being facilitated by the Driver and Vehicle Licensing Agency, which enables these rogue parking enforcers to find out the identity of the owners of such vehicles?

[Sir Greg Knight]

That is a fair point. My Bill seeks to deal with that, and I will come on to it in a moment. If we have a statutory code of conduct, certainly consequences will flow for a company not adhering to it.

--- Later in debate ---

[Sir Christopher Chope (Christchurch) (Con)]

I have two or three questions for the Minister.

I have already mentioned to my right hon. Friend the Member for East Yorkshire (Sir Greg Knight) my concern about the DVLA’s inadequate behaviour in this respect. I do not see why the DVLA itself does not stop giving access to its database to rogue parking companies. This Bill proposes to deal with that indirectly through members of parking associations rather than directly with the parking companies concerned.

[Sir Greg Knight]

May I correct my hon. Friend? My understanding is that the DVLA does refuse to give access to rogue parking companies, so the threshold beyond which a company is regarded as “rogue” is perhaps what needs changing. That is the point.

[Sir Christopher Chope]

I am grateful to my right hon. Friend for correcting me. In that case, may I challenge the Minister to explain why so many of these rogue parking companies are continuing to operate in the disgusting way that we have heard about during this debate?

Will my hon. Friend the Minister ensure, when this Bill goes forward, that we also introduce a provision ensuring that there should be equal treatment of all vehicles in private car parks? In my local authority area of Christchurch there is a lot of resentment about the fact that when, for example, Travellers invade the car park, they are treated with impunity, whereas people who may have just overstayed by 20 minutes find themselves having the book thrown at them. Can we ensure that the Bill is used as a vehicle for getting equal treatment for all motorists who park in private car parks? Will my hon. Friend say when he expects the provisions of this Bill, and the secondary legislation, to be enacted, so that people who are concerned about this issue know the deadline for implementing what we in this House want to do?

If my hon. Friend gives satisfactory answers to those questions, I hope that the Bill can make progress.