Local Government Finance Bill

Earl of Lytton Excerpts

Monday 16th July 2012 Grand Committee

[The Earl of Lytton]

I rise simply to refer to the points that the noble Lord, Lord Jenkin, made. I attended the excellent meeting that he convened with London Councils. Its views on the problems of the lead-in time for dealing with IT have been corroborated by the views of the Institute of Revenues Rating and Valuation. Larger authorities might well have significant IT capability in their own right, but that cannot be said of all authorities, and I think that the noble Lord, Lord Jenkin, was saying that while some authorities are clearly getting on with the work, others will lag behind until a package is available to them. That is where the fear is.

In the period leading up to when an authority has a useable IT system, there is a question of a brief, and possibly of tendering and commissioning. A programme has to be written, or there has at any rate to be some sort of alteration to an existing programme, which has to be tested, and the staff have to be trained. At the moment, we are right on the edge of the summer holiday period when a lot of people are likely to be away and capacity in all areas of commercial endeavour, not least in the IT world, will be challenged. I simply echo what the noble Lord, Lord Jenkin, said and ask the Minister whether any investigation has been done on the realities of preparing the IT, bearing in mind that all local government finance is heavily dependent on it. What reassurances can the Minister give the Committee?

[Lord Tope]

My Lords, my name originally appeared on Amendments 78 and 79, and I am concerned that it still appears on Amendments 85 and 88A. That was a mistake. To the extent that I may have had a part in that, I apologise to your Lordships. I do not support postponement and had never intended my name to appear on amendments in this group. I want to say why. I am pleased that we are having the debate. This is important, so a debate on the amendments is necessary.

Had the Government been minded in, say, May or April, while the Bill was in the other place, to postpone the implementation day, I would not have been too unhappy. Indeed, I would probably have been happier if they had abandoned this part of the Bill altogether, but that was not to be. I might have been happier for that to happen provided that the £500 million reduction was also going to be postponed. That, of course, was never going to happen—and we knew that. I have therefore always been at best ambivalent about postponement. That was certainly an earlier view generally across local government. I do not for one moment claim to speak for all local government, but that of which I have any knowledge and contact broadly does not support postponement, for some of the reasons that the noble Lord, Lord Jenkin, alluded to when speaking to the amendments in his name.

Let us deal first with the issue of software. Back in February, when the Local Government Chronicle article was written, there was certainly considerable concern, not least among the suppliers, about whether the software could and would be completed in time. We all know that the record on IT systems has not always been perfect. I hope that the Minister, who must be better informed than me, will be able to comment on this, but my understanding—both from my direct knowledge of my own authority and one or two others that I know a bit about, but more particularly through the LGA, which has been in discussions with the software suppliers—is that that concern is considerably less now than it was in February or more recently. As much as anyone is brave enough to be confident before these things are done, there is no longer the level of concern and alarm about the issue that there once was. However, I speak only with limited knowledge and not with any personal authority. I hope that the Minister can assure us on that very particular point.

The other concern, quite rightly, is whether local authorities would have all the information that they needed before preparing and consulting on their draft scheme. I hope, as the noble Lord, Lord McKenzie, said, that the Minister will reassure us about the information that is not yet published. Much of it is already published and more is to be published this week, perhaps even today, but I have not been able to keep up with that. The noble Lord referred to the autumn. Let us say that by the time we return in October, all the necessary information will have been published as completely as it can be before enactment.

In view of that, we once again look at being where we are rather than where we might wish we were. Quite a number of authorities, including my own, have accepted that it is going to happen in April and have drawn up a consultation scheme. My own authority agreed its consultation scheme in June with all-party agreement—which, in my authority’s case, is both-party agreement—and is now out to consultation on that scheme. Later, our neighbouring authority of Kingston did the same and drew up a slightly different scheme, and that scheme is out for consultation.

I know that many other local authorities are in a similar position—we might wish we were not, but we are. The process is now under way. The considerable work under pressure that has been alluded to, quite correctly, is now under way. My personal view, and the impression I have from those with whom I am in touch, is that at this stage we would not welcome postponement. We might have done a month or two ago or even a few months ago, but at this stage we are so far down the road that we need to accept that this is going to happen. There are different views about that, but we are well down the road on it and we need to get on and make the best we can of it.

Local authorities of all political persuasions generally have a very good record of coping with what is often thought to be impossible, or certainly very difficult, whether that is the front-loading of the budget reductions that we have all experienced or the many other difficult measures. The fact that local authorities quite rightly protest when these measures are proposed and implemented, but when the time comes have to buckle down and deliver, does not mean that they were wrong to protest in the first place. It simply means that local government actually has a very good record of achieving these things. I therefore hope that if this is going to happen in April and proceeds with few, if any, problems, it will not be thought by central government that local government is again crying wolf. It is not; local government is actually getting on and delivering in the way that it always has.