Local Authorities (Conduct of Referendums) (England) Regulations 2012

Lord Beecham Excerpts

Monday 6th February 2012 Lords Chamber

Moved by

[Lord Beecham]

At end to insert “but that this House regrets that the Government are unnecessarily compelling eleven councils to stage such referendums in May 2012, given that any English local authority, or five per cent of its electorate, can require a referendum to be held on whether to have an elected mayor; and that such referendums and consequent mayoral elections involve substantial costs at a time of acute financial stringency in local government and in the country.”

[Lord Beecham]

My Lords, I rise to move a regret Motion in the terms set out. In doing so, I declare an interest as a member of Newcastle City Council for the past 45 years. I also have to say that I have not the slightest interest in being either an elected mayor or a police commissioner—no doubt to the great relief of many of the citizens of Newcastle.

The issue before us stems from the Government’s decision to impose referendums on 11 local authorities in May with a view to determining whether they should move from their present system, which is a leader and cabinet system, to that of an elected mayor. If the local electorate, or as many of them as decide to participate, opt to change to a mayoral system, there will, as I understand it, be elections in the dark nights of November next year, to coincide with the police commissioner elections.

The Government’s decision raises two issues which fall to be debated. The first is around the merits or otherwise of the mayoral system. That is the background to the regret Motion, although, whatever view one takes about the mayoral system, there is a separate question about whether it is justifiable to impose a referendum as opposed to relying on the system which has operated for the past 10 years of allowing a referendum if 5 per cent of the local electorate choose in a petition to demand one or, indeed, if a local authority decides to hold a referendum.

With regard to the first matter—the merits of the system—it is customary for Governments to have an evidence base for radical changes that they propose. In this case, such evidence is lacking in two key areas. The first is the claim that the elected mayor system is inherently better than the leader and cabinet model—more effective leads to better governance. I would argue that cities like Manchester, Birmingham, Leeds, Sheffield, Newcastle and many others have demonstrated an ability to innovate, to promote efficiency and to drive regeneration without an elected mayor. There has been a celebration of the renaissance of some of our great urban centres over the past few years, almost all of them in places with the long-standing—certainly over the past decade—leader and executive model.

There was a long tradition of local government leading the way in social policy before elected mayors. Distinguished local government figures such as Joseph Chamberlain and Herbert Morrison and, for all his faults, Newcastle’s own Dan Smith, created enormous change, not just in their own localities, but in the politics of local government generally. Huge advances were made over many decades in social policy, in housing, the move from gas and water municipal socialism which Joseph Chamberlain was espoused in the 20th century, to housing and social care, to transport and the arts. These were signal achievements of the old system of local government and it is yet to be demonstrated that the mayoral system, now operating in a relatively small number of places, is actually any better. I would argue that there is little evidence of that either here or indeed abroad. The noble Baroness may, as she did in Grand Committee, cite examples such as Barcelona. However, as I pointed out at the time—in fact, I think that the noble Baroness pointed it out but perhaps without quite realising what she was doing, with all due respect—Barcelona has an elected mayor who is not elected in a personal capacity but is elected, in the same way that a Prime Minister is elected, as the head of his party—the party list in the case of Barcelona. This is not quite the direct electoral system that is being advocated here. So, in my view, there is not that advantage of a mayoral system.

--- Later in debate ---

With an elected mayor in each of those 11 cities, where there would also be a cabinet, and ward members, who would implement some of the powers of the Localism Act, not least around neighbourhood planning, I do not see this as simply a matter about a two-thirds vote. I see it as being about renewing democracy, and empowering ward members as part of the Localism Act. However, we will have that debate at a later stage. The question is whether we should test the public view, and in my view, we should. The noble Lord, Lord Beecham, said a moment ago that there is no apparent public support for elected mayors. I draw your Lordships’ attention to the very recent referendum in Salford which voted in favour of an elected mayor, and of course the recent decision over Leicester—

[Lord Beecham]

Would the noble Lord count a turnout of 18 per cent as a vindication of his position that there is a great public interest in this?

[Lord Shipley]

It is too low, but of course, local elections and leaders of councils are being elected in practice on similar numbers. So no, the point is not material. The fact is that the people of Salford have voted for an elected mayor. It is simply not the case that there is no apparent public support for elected mayors. I believe that we should test the public view. That was agreed as part of the Localism Act, and we should not regret that but should test the public opinion.

--- Later in debate ---

[Baroness Hanham]

My Lords, when we have had the referendums we will know whether or not people want to have a mayor, or whether they want changes to their local governance system. This is in 12 cities, that is all: the 12 largest cities. It is not in the rest of the country, which, as the noble Lord, Lord Beecham, said, can already have those referendums if they can get enough people to sign the bits of paper under the Act passed by the previous Government.

The value of large cities effectively led by powerful mayors is demonstrated by international and domestic experience. I am not going to quote Barcelona. There is, not least, the Mayor of London: the capital has benefitted from having a strong voice and leadership. As a result it has been possible to start devolving powers from the centre to the mayor, who is then able to work in conjunction with local government and see major infrastructure projects, such as Crossrail, implemented. It is exactly because of these and similar benefits which we believe that mayors will bring to other large cities that, in our view, those large cities should all have the opportunity to be governed by elected mayors. Evidence shows that, on average, local authority mayors are known to 57 per cent of local people—over twice the percentage for a council leader. I will not tempt the noble Lord, Lord Beecham, to tell me what percentage of people recognised him on the streets of Newcastle. I am confident that it might be a smidgen under 57 per cent, but I am not going to make a bet on it.

Noble Lords on both this and a previous occasion have argued against these orders, and against what they see as being compulsion, citing the current provisions under the Local Government Act 2000, which include the petition trigger and the ability for a council to resolve to change its governance arrangements, as being sufficient. This is consistent with the approach taken by the previous Government, who legislated to hold a referendum in 1998 on an elected mayor for London, which has also already been referred to by my noble friend Lord Tope.

However, I would like remind noble Lords that, under the Local Government Act 2000, which was enacted by the previous Government, there were two further triggers for a referendum. Section 35 of the 2000 Act provides that the Secretary of State may make provision enabling him or her, in circumstances set out in the regulations, to direct a local authority to hold a governance referendum. Section 36 of that Act provides that:

“The Secretary of State may by order make provision requiring every local authority, or every local authority falling within any description of authority specified in the order, to hold a referendum”,

on whether those authorities should operate a specific form of governance, which could include the mayoral form of governance. We are not on a unique path here. In fact, the previous Government used the power under Section 35 of the Act to compel the London Borough of Southwark, which I think the noble Lord mentioned, to hold a referendum on its governance model in January 2002. Indeed, this compulsion was in the form of a direction and was not even subject to parliamentary scrutiny, as this legislation is. The provisions in the Localism Act 2011 are therefore not new or confined to this Government, who are concentrating, as I have said, on just 12 cities—but that is now 11, following Leicester’s decision to adopt the mayoral form of government.

It has also been argued that there is no appetite for a mayor or, indeed, for a referendum but I would like to be clear that a case for a referendum under these circumstances is not about whether there is a clamour for one. It is about the governance of our big cities and their contribution to the country as a whole, and about how a mayor can help their city to perform even more strongly economically, socially and environmentally. That is why we believe, at the very least, that the people of the city should have the opportunity to address—and seriously address—the question of whether to have a mayor. The choice is theirs.

In the next few months, discussions and arguments will take place about the strengths and weaknesses of a mayoral model—I am saying “mayoral” because I am not sure that it is “mayoreal”, as I do not think there is an “e” in it. It is exactly this type of debate and discussion that points to the validity of an exercise in giving local people the opportunity to address the question of whether to move to that. Let us be clear; we see mayors as being better able to deliver growth and prosperity to our larger cities, something which I know that we all want.

During Grand Committee, and indeed today, noble Lords asked about the cost of a mayor against other governance structures, and about internal administrative costs and savings or allowances. As we made clear in the impact assessment, which I am sure noble Lords have all studied, and as I said in Committee, any costs or savings will depend on how much reorganisation a city council decides to undertake to accommodate the mayor. In order to do so, it may of course reallocate resources internally in a variety of ways. However, based on the 11 authorities which have adopted an elected mayor since 2000, there does not appear to be any substantial difference in the corporate and democratic core costs of having a mayor compared with a leader. Perhaps that underlines my reply to the noble Lord, Lord Grocott, last time. In the light of the current financial position, I am sure that any elected mayor would want to keep their costs and allowances down to ensure that they remain within budget.

I think it is correct that the version of the question which the noble Lord, Lord Grocott, was kind enough to tell the department that he would ask is not entirely the question that he asked in the Chamber. I am going to reply as on the first, if I may. He had asked what the costs were in the administration of the Greater London Council in its last year, if that is correct, and what the costs are now that we have a mayor and Assembly. The noble Lord is nodding his head, so I assume that is right. I can tell him that the GLC and GLA are not directly comparable in terms of function, particularly since information on the GLC is now historic. The combined component budget for the GLA—that is, the mayor and Assembly—for 2011-12 is £155.1 million. That is net of any specific grants of council tax and is the closest publicly available figure to an administrative budget that we can find. The noble Lord may wish to note that the current Mayor of London has in fact frozen council tax during his last four years in office, helped in part by this Government’s two-year council tax freeze. By contrast, under the previous Mayor of London the Greater London Authority's council tax levy almost trebled.

Finally, my honourable friend the Minister for Cities in the other place, Greg Clark, recently announced the Government's intention that the first election of a mayor will take place on 15 November of this year, fulfilling the Government's commitment that mayoral elections would take place shortly after any referendum which resulted in a yes vote. I am sure that there will be vigorous debate between 3 May and then if there are to be any elections.

We are clear as to why we believe that elected mayors would enhance the leadership of the 11 major cities, delivering greater growth and prosperity. We cannot compel an outcome but we can give local people the option of a change of governance. I am grateful to my noble friend Lord Shipley for his comments, and, indeed, to my noble friend Lord Tope. I hear what he says. It will be interesting to see the outcome.

In response to the amendment of the noble Lord, Lord Beecham, I simply add that these orders will give the people of the cities involved an opportunity through a referendum to consider and decide on their future governance without the cost falling on the cities themselves. I commend the orders to the House.

[Lord Beecham]

My Lords, I am grateful to noble Lords for what has been a lively debate. I am particularly grateful to my noble friends. To reassure my noble friend Lord Grocott, I think that three local authorities are seeking to undo the mischief of the mayoral system, as he and I and perhaps some of those would see it, although it remains to be seen what will happen in the referendums which will no doubt take place in those authorities.

I entirely share the view of the noble Lord, Lord Tope, about the original referendum in London. I opposed the proposition at the time, as, indeed, did Ken Livingstone, who was not at all keen on the idea until he was a candidate and was elected. However, such things happen in politics.

The Minister referred to the cost of the referendums and made the point again that that is being paid for by the Government. However, the cost of any subsequent elections will not be borne by the Government. They will be roughly the same figure and will fall on the relevant local authorities in November if the referendums lead to an affirmative vote. She also referred to Southwark, where a referendum was apparently imposed in 2002. That achieved the amazing turnout of 11 per cent and rejected the concept of having a mayor, which my noble friend Lord Grocott mentioned. That is surely evidence that there is no appetite for these elections, about which I spoke in moving the regret Motion.

However, the Minister did not respond to my question about what is to happen after this round of referendums. There are some 300 other councils. Is it the Government’s intention to roll this out across the country? What about the flagship Tory councils, such as Westminster and Wandsworth, which she apparently believes are less good performers than those with mayors? Those are Tory councils with substantial populations and responsibilities. Apparently, there is no proposal at the moment for referendums in those places. We have to learn eventually—

[Baroness Hanham]

With respect, I have answered that question. I drew noble Lords’ attention to the fact that the Localism Act allows for referendums to be held only in the 12 cities. There was no question of there being referendums elsewhere. However, as the noble Lord knows, they can be held, if that is what is required, under the Local Government Act 2000.

[Lord Beecham]

I am not sure that that is right. However, in any event, irrespective of whether or not the Government have the power to require referendums—I think that they do, but I may be wrong—what the noble Baroness has said constitutes a pretty substantial disparagement of the record of her political colleagues in significant authorities not unadjacent to where we are debating these matters, among others. I find it rather strange that apparently only mayoral authorities are capable of delivering regeneration and economic prosperity. The case that has been advanced is that you need a mayor to make that progress. Frankly, I do not accept that. However, in general there is a continuing lack of evidence in support of the mayoral system. I say with all due respect to the noble Baroness that affirmation is not evidence.

I turn to the noble Lord, Lord Shipley. He gives as a reason for supporting elected mayors that there are to be police commissioners. In November people will have the opportunity of buying one and getting one free because there will be two votes on the same day. But, of course, it will not be free; it will presumably be double the cost. If there is a mayoral referendum, that will cost roughly £250,000 and there will be separate costs for the police commissioner elections, which would also clock up to the same figure in individual authorities. If they are buying two, they will have to pay for two. They do not get one free.

Why the existence of a police commissioner should make it all the more desirable to have an elected mayor, I do not understand. But then few people understand why we should have police commissioners in the first place, including quite a lot of Members on the government Benches in this House and in the other place. Certainly it is not understood by the Prime Minister’s favourite police officer, Mr Bratton, whom he wanted to appoint as Metropolitan Police Commissioner, who could not understand why the American system should be imported into this country.

The noble Lord also welcomed the powers to be given to elected mayors but without explaining why only elected mayors should get them. In fact, it is not only elected mayors who are likely to get them because discussions are going on with other authorities. There is an interesting development around Greater Manchester with the Association of Greater Manchester Authorities, which is not predicated on the existence of a mayor either from Manchester or the area as a whole.

I must tease the noble Lord somewhat. It is only a few months since he and I were jointly discussing how we might campaign together against the idea of an elected mayor. This gives rise to the Paul Daniels question. Your Lordships will remember the magician and television personality Paul Daniels and his attractive young wife. She was asked: “What is it about balding millionaire Paul Daniels that persuaded you to marry him?”. I gently put to the noble Lord, “What is it Lord Shipley, recently appointed government adviser on cities, that has led you to change your mind about elected mayors?”.

[Lord Shipley]

I have read a lot of the research evidence in that context as a large amount of research has been done on the role of elected mayors. The noble Lord, Lord Grocott, said that a number of countries in Europe do not have our system and that you cannot build an elected mayoral system on to our democratic system of local government. I do not agree. I have read research produced by the noble Lord, Lord Adonis, and I have read the report of the noble Lord, Lord Heseltine, and Terry Leahy on Liverpool and Merseyside. There is also the Warwick commission on elected mayors. There is a body of research demonstrating that you could have stronger economic growth by having a stronger governance system. I remind the noble Lord, Lord Beecham, that he was talking to me about the importance of campaigning against elected mayors. I was not talking to him about that.

[Lord Beecham]

I do not recall the conversation being as one sided as that, but I shall allow the noble Lord to get away with his disavowal of those discussions. I was really only teasing him.

The issue is not who exercises the powers but what the powers are. They do not have to be conferred on a single individual with all the disadvantages to which I referred. Experience around the world is extremely variable. There are appointed mayors, as in Holland. The Labour Party, as I told the Grand Committee, once sent people to see the mayoral system in Holland without realising they were appointed rather than elected—not untypical. There are elected mayors. There is the Barcelona model. There are mayors in jail, as the noble Lord, Lord Tope, rightly said. There are mayors who are very successful. There are leaders of councils in both categories no doubt as well. The crucial thing about economic development is having the necessary powers and being able to co-operate with other authorities. In that context, of course, that opportunity has been rather dismantled by the abolition of regional development agencies and the lack of a proper system for ensuring co-operation.

However, we are where we are. I will certainly be campaigning against an elected mayor in my own authority. I shall be happy to quote the noble Lord, Lord Tope, in support of a bipartisan approach. I look forward to seeing the noble Baroness campaigning up and down the country in Conservative authorities—while we still have Conservative authorities—for referendums and elected mayors too. That is something she has not yet found time to do. Perhaps she has not really had the inclination, but maybe that will follow after May. I beg leave to withdraw the amendment.

Amendment withdrawn.