English Devolution and Community Empowerment Bill

Lord Harris of Haringey Excerpts
Baroness Scott of Bybrook Portrait Baroness Scott of Bybrook (Con)
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My Lords, I am pleased to begin the third day of Committee with this group of amendments, starting with the proposition in my name that Clause 15 not stand part, as we see no justification or real purpose for it. It is not clear why the Government seek to confer yet more powers on the Mayor of London by secondary legislation. I hope other parties will join me in my concern about this clause.

The noble Baroness, Lady Pidgeon, pointed out at Second Reading that the Mayor of London has already been given more and more areas to oversee and a budget of approximately £21 billion. I ask the Minister: what more powers does he need? What is more, rather than giving the London Assembly more powers to represent and scrutinise on behalf of the whole community, Clause 15 will give powers specifically to the mayor. This is not community empowerment but instead gives the Government a mechanism to empower an already powerful individual, without any explanation as to why. Surely this Bill’s priority should be empowering local communities to scrutinise and ensure that services are being delivered effectively and funds used efficiently by those at the top. Can the Minister explain what consultation took place to inform this clause, and with whom?

Clause 15 is further evidence that the real purpose of this Bill has not been made clear. If it is about genuine community empowerment for all England then allowing the Secretary of State to confer further powers on the Mayor of London is hardly a priority. We do not see why London should be put on an ever-higher pedestal. The Committee deserves to know the Government’s exact reasoning behind this clause.

Amendment 70, tabled by the noble Baroness, Lady Pidgeon, seeks to insert a new clause extending the category of people whom the London Assembly can require to attend its meetings or produce documents. You cannot have effective meetings if the necessary people are not there. We on these Benches welcome Amendment 71, also tabled by the noble Baroness, which would replace the current two-thirds majority required to change the Greater London Authority’s consolidated council tax requirement with a simple majority. This is entirely sensible. It would improve decision-making and may make better budget-making in London.

Amendments 72, 73, 74, 96 and 182, in the name of the noble Lord, Lord Harris of Haringey, seek to establish a London local authorities joint committee. We are hesitant about creating more committees, but I look forward to his contribution and explanation of this matter.

Amendment 75, from my noble friend Lady O’Neill of Bexley, asks us to go back to basics and initiate a review of the London governance model, covering its effectiveness, accountability and, in particular, outcomes. If the Government want to reorganise local government across the country, why not bring London in line as well? This is a perfect opportunity to cut costs and strengthen local democracy in our capital city.

The Government must come clean about their intentions for London. If reforms are made, let them strengthen local democracy and cut bureaucracy, not empower an already powerful mayor. I beg to move.

Lord Harris of Haringey Portrait Lord Harris of Haringey (Lab)
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My Lords, in speaking to this group of London-related amendments, I should declare my former roles as a London borough leader, a member of the London Assembly and a founding chair of what is now London Councils—indeed, I am one of its current co-presidents.

Before I speak to the six amendments in my name in this group—together, they seek to address a long-standing anomaly in London’s governance arrangements—I want to say a brief word about the other amendments in the group, drawing on my previous experience. In particular, I wish to comment on the interesting remarks made by the noble Baroness, Lady Scott, who seems affronted at the idea that the Mayor of London and the whole GLA network are somehow trying to accrue on to themselves—or the Government are trying to give them—more and more powers. I respectfully remind your Lordships’ Committee that London is the engine of the UK economy, that without London the UK’s economy would founder, and that it is therefore very important that London retains its status as one of the few great world cities. For that purpose, having strong and effective mayoral and governance arrangements in the capital city is crucial.

I was involved in the discussions with the then Government around the creation of a mayor and assembly for London, and then in the passage of the Greater London Authority Bill when it was in your Lordships’ House. The London devolution settlement was carefully devised by Nick Raynsford, the then Minister for London, and was the first of its type. That settlement has remained largely unchanged for over a quarter of a century.

I have some sympathy, therefore, with Amendment 75, in the name of the noble Baroness, Lady O’Neill, which suggests that there should be a review of that settlement. However, I have reservations about her amendment, as I do not see why it should be a requirement of legislation. My noble friend the Minister could simply announce today that it is going to happen. Given that extensive consultations and discussions would be needed as part of a review, a year is too short a timescale. In doing such a review, one should look at the role and number of London boroughs. Does having 32 of them, plus the corporation, really make sense more than 60 years on from their creation?

I have some sympathy with Amendments 70 and 71, in the name of the noble Baroness, Lady Pidgeon. As a member of the first London Assembly, I always felt that the role of AMs was not sufficiently defined or purposeful enough. Strengthening and widening the scrutiny role of the assembly makes a lot of sense, as does changing the two-thirds requirement for amending the mayor’s budget—a threshold that has never been passed, although I gather that the London Assembly is considering the mayor’s budget today, so perhaps something surprising will happen. However, changing that requirement might oblige the mayor to work more closely with AMs—something that has not always been evident over the first three mayoralties. Such a power might be usefully extended to assembly consideration of mayoral strategies. Such a change would, however, alter the balance of the existing governance model in London. Rather than being done in a piecemeal fashion, it should be considered as part of the putative review suggested by the noble Baroness, Lady O’Neill.

I turn now to Amendments 72, 73, 74, 96, 182 and 183 in my name. They seek to address an anomaly—an omission in the original Greater London Authority Act. My understanding is that they have the support of all three parties on London councils, as well as that of the mayor’s office. At their heart, these amendments are about addressing a simple but persistent problem: that the collective body of London’s boroughs is not recognised in statute and is unable, as things stand, to receive government funding directly.

London boroughs work together extensively. Through London Councils, they co-ordinate delivery, share expertise and engage with government on issues ranging from transport and housing to retrofitting and the charging of electric vehicles. In many of these areas, boroughs are the primary delivery agency of policies that sit squarely within the devolution agenda. Despite this, London Councils lacks a clear statutory footing. As a result, it cannot receive Section 31 grants directly from national government. Instead, funding must be routed through a nominated lead authority and then passed on—an arrangement that is administratively cumbersome, slower than it needs to be, and inefficient for both local and national government.

These amendments would provide a straightforward solution. They seek to establish a statutory joint committee, made up of London’s borough leaders and the City of London, enabling London Councils to receive and distribute funding directly and ensuring that London boroughs are properly consulted where legislation envisages consultation with local government bodies. Crucially, these changes would allow resources to flow more efficiently to the boroughs that are responsible for delivery, reducing unnecessary bureaucracy and making better use of the collective capacity that already exists within the London system. They would strengthen the clarity of consultation arrangements, ensuring that London borough voices are heard in a coherent and structured way.

I should be clear that these proposals are entirely complementary to the role of the Greater London Authority. They would not impinge on or duplicate the powers or strategic status of the mayor, the GLA or the London Assembly. Rather, they would strengthen the overall London governance system by clarifying the collective role of the boroughs within it. That is why I am pleased that the GLA is supportive of London Councils becoming a statutory joint committee, recognising that this change would improve co-ordination, efficiency and the effective delivery of devolved priorities across London.

In short, these amendments are firmly aligned with the Bill’s broader aims of empowering local government and improving the effectiveness of devolution. They would correct an anomaly that has been recognised for some time and replace it with a solution that is sensible, efficient and long overdue.

Baroness O'Neill of Bexley Portrait Baroness O'Neill of Bexley (Con)
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My Lords, I know that it was suggested that the Bill would not include London, but I wonder whether this is an opportunity to consider the future governance of London, as well as a chance to put right historic legislative changes. That is what my Amendment 75 is about.

I remind noble Lords that I am still a councillor in the London Borough of Bexley. I was leader until 5 November—no Guy Fawkes jokes, please—and was the longest serving leader in London when I stood down. Previously, I was an executive member and the Conservative lead for London Councils for many years. I am now a vice-president, as is the noble Lord, Lord Harris.

London was the first mayoral arrangement. It is more than 25 years old now, so is it time for a review? It is interesting that no other mayoral arrangement since then has involved a governance structure similar to that of the Greater London Authority. Nobody seems to be suggesting that the London model should be replicated. Therefore, could London governance be more effective and efficient for the benefit of London taxpayers? It is not lost on me that the proposed mayoral precept that is apparently being discussed today will exceed £500 per council tax payer this year. It seems sensible to consider whether that is value for money.

The structure we currently have is quite costly. While some call for greater powers for the GLA, it often frustrates progress. Due to the two-thirds voting rule around the budget, which is referenced in Amendment 71, it is unlikely that the GLA will ever be able to override the mayor’s budget proposals. If you watch some of the question time sessions, it is pretty clear that the mayor does not consider that he is being held to account by the assembly. Some of those frustrations can be seen in Amendments 70 and 71, from the noble Baroness, Lady Pidgeon, and my noble friends Lord Gascoigne and Lord Moylan.

The current structure does not encourage the mayor to work with the boroughs. Elsewhere, the relationship between the mayor and borough leaders has been more productive in achieving better outcomes. As a borough leader, especially in outer London, I often thought that the mayor would be more effective if there was a grown-up conversation about what matters to London. London is a very diverse city and not all 33 boroughs are the same, although unfortunately some do not recognise that. The involvement of the borough leaders would allow them to bring to the table their invaluable knowledge of their borough. We should be learning from other mayoral structures. The noble Lord, Lord Harris, has suggested the importance of London, and I would not disagree with that, but there is no reason why London should not be efficient and effective.

We know that London leaders recognise that the world does not end at their borough boundaries. There have been many examples over the years when leaders have made pragmatic decisions that are beneficial to London, following debate. Those of us in outer London also have relationships with the councils outside London, especially those on our borders. Amendment 72, from the noble Lords, Lord Harris of Haringey and Lord Pitkeathley of Camden Town, and the noble Baroness, Lady Hayter of Kentish Town, seeks to establish a London local authorities joint committee. I would suggest that this would just bring about another layer of governance which will no doubt have cost implications and which seems shortsighted when we can learn from other governance structures since the inception of the London model. Surely we do not want to impose more costs on council tax payers. If learning suggests that a revised structure would be less costly in addition to more effective, the taxpayers and councils could benefit. Would not we all like to see vital money being spent on services rather than on structures?

English Devolution and Community Empowerment Bill

Lord Harris of Haringey Excerpts
If the Government believe in devolution, I hope they will support these amendments. If the Minister is unable to offer reassurance on these points, I may wish to test the opinion of the House.
Lord Harris of Haringey Portrait Lord Harris of Haringey (Lab)
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My Lords, I remind the House of my interest as co-president of London Councils and, like the noble Baroness, Lady O’Neill, as a former borough leader. I think I was also the longest-serving leader in my particular borough at various times, and I am a former member of the London Assembly.

I rise particularly to address government Amendment 243, to welcome it and to say how grateful I am to my noble friend the Minister for the consultations that she had with me and also with London Councils about the content of it. The amendment that has come forward is a welcome compromise. Obviously, there is a desire from London Councils that perhaps written in somewhere should be a formal requirement to consult. But I am very pleased that the Minister and the department have been able to respond in this way, and I am pleased that it is now going to be in the Bill.

To underpin the comments made by other noble Lords in respect of the other amendments, I think that what is being forgotten is that the basis of the settlement in London was that people should work together. I do not know whether that is a criticism of the three mayors that have been, the various iterations of London Councils or the relationship with government, but I suspect that that could be improved. Whether it requires the sort of review that the noble Baroness, Lady O’Neill, has suggested, I do not know. But all I would say is that noble Lords should be careful what they wish for in such a review, because it might produce outcomes that they do not like.

I will sit down by concluding again with my thanks to my noble friend the Minister for bringing forward Amendment 243.

Baroness Taylor of Stevenage Portrait The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government (Baroness Taylor of Stevenage) (Lab)
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My Lords, I thank the noble Baronesses, Lady Scott, Lady Pidgeon and Lady O’Neill, for their amendments on the functions and governance of the Greater London Authority and London boroughs.

I turn first to Amendments 81, 154 and 156. This Government are committed to delivering a permanent transfer of power from Whitehall to our regions. Strategic authorities, including the Greater London Authority, will not be able to deliver for their residents if they fear that a future Government will be able, on a whim, to easily remove functions that have been devolved. Parliament is, of course, sovereign. The Government will always be able to introduce primary legislation that changes which functions should sit with which level of authority. However, this Bill makes sure that the Government will have to make that argument through the various stages of a parliamentary Bill; it must not be easy to take devolved powers away from strategic authorities. That is why this Bill limits the ability of this Government and future Governments to remove functions from strategic authorities using secondary legislation so that they can be exercised again by central government. It would be wrong to single out the Greater London Authority and allow its functions, and only its functions, to be removed by secondary legislation.

On Amendment 82, I thank the noble Baroness, Lady Pidgeon, for meeting me to discuss this issue. Her insight into the governance of London was very valuable to me. First, I would note that the Mayor of London is already required to appear before the assembly 10 times a year for Mayor’s Question Time. This affords assembly members an opportunity to question the mayor on a regular basis. It is a tried and tested mechanism for questioning the mayor, and is backed up by a strong incentive for the mayor to attend, in that generally, if they fail to attend six consecutive meetings, they will be removed from office. This amendment would not remove the existing mayor’s Question Time mechanism; rather, it would represent an additional burden on the mayor of London potentially requiring them to appear before the assembly multiple times within a given month.

Secondly, this amendment would enable the assembly to summon witnesses who are not connected to the Greater London Authority or work on its behalf. In using a broad definition, it could allow the assembly to require attendance from virtually any entity linked to activity in, or related to, Greater London. The assembly’s power is backed up by powerful enforcement mechanisms. A person who fails to comply with the assembly’s request can be liable for a fine or even imprisonment for not more than three months. I am sure noble Lords can appreciate that the expansion of a power with such an enforcement mechanism needs to be considered very carefully. In London, the assembly has broadly either the same or similar powers to those being introduced for local scrutiny committees. As London’s devolution settlement continues to evolve, the Government will continue to work with relevant partners, including the noble Baroness.

I turn to Amendment 83, for which I am very grateful to the noble Baroness, Lady O’Neill. I recognise her very long and dedicated service to Bexley and to London. The Mayor of London is directly elected by the people of London every four years, alongside the London Assembly, which scrutinises the mayor’s work. This model is unique among strategic authorities, and it has successfully served the people of London for the last 25 years. The Government are regularly in contact with the GLA to understand how its governance, scrutiny, arrangements and partnership working arrangements are delivering for London and Londoners. As London’s devolution settlement evolves, we want to continue to see positive working between the GLA and its partners, including London borough councils, to deliver on shared priorities.

With this ongoing conversation already happening, it is not necessary to impose a formal review of London governance to be reported on at an arbitrary point. Indeed, it would be unusual to put such a requirement into primary legislation. The accountability arrangements for all mayoral strategic authorities, including the Greater London Authority, will also be strengthened by revised guidance, such as new iterations of the English Devolution Accountability Framework and scrutiny protocol.

I turn to Amendment 84 from the noble Baroness, Lady Pidgeon. Simple majority voting in London would make it harder for the mayor to exercise executive authority and deliver for Londoners in areas where other mayors are being empowered. As I have said, London’s devolution settlement has served Londoners well for 25 years, striking the balance between the executive authority of the mayor and the scrutiny of the assembly. Mayors in combined authorities and combined county authorities can have their budget amended only by a two-thirds majority, and there is no reason why London should be different.

Finally, my Amendment 243 would enable central government to pay grant funding directly to a London joint committee, such as that run by London Councils. This will address a long-standing anomaly in London’s governance. I am very grateful to the noble Lord, Lord Harris, among others, for bringing this issue to my attention, and I also thank him for his very long service to London government.

Where there are cross-borough initiatives which are outside the remit of the Greater London Authority, the committees established by London Councils are best placed to receive and direct related funding on behalf of boroughs. Among many other examples, this is evident in the Freedom Pass, which the London Councils transport and environment committee negotiates with Transport for London and pays for on behalf of boroughs. At the moment, when central government wishes to pay funding for initiatives co-ordinated by London Councils, it must use cumbersome workarounds, such as paying to a nominated lead borough or routing it through the GLA. This creates additional barriers in time and complexity to getting money where it needs to go. It also lacks transparency, making it hard for citizens to follow who is involved in the spending of their money.

This amendment is a simple yet significant change that will allow money to flow directly from central government to joint committees established by London Councils, speeding up and simplifying delivery for Londoners. It is important that any entity receiving public money has the appropriate governance and oversight in place. Therefore, this amendment enables payment to take place only once the Secretary of State has made regulations setting out eligibility requirements. Those regulations will be approved by resolution of this House and the other place.

I commend my own amendment to the House and ask the noble Baronesses, Lady Scott, Lady Pidgeon and Lady O’Neill, not to press their amendments.