Levelling-up and Regeneration Bill

Lord Naseby Excerpts

Committee stage
Monday 20th March 2023 Lords Chamber

Moved by

[Lord Naseby]

178A: After Clause 77, insert the following new Clause—
“Voting restrictions in local authority housing matters relating to City of LondonIn section 618 of the Housing Act 1985 (Common Council of the City of London), omit subsections (3) and (4).”Member's explanatory statement
This Clause removes a restriction applying uniquely to the City of London Corporation’s Common Council members which prevents them from voting in local authority housing matters where they have a pecuniary interest. It brings them into line with the regime for such interests which applies to councillors of local authorities under the Localism Act 2011.

[Lord Naseby (Con)]

My Lords, I apologise for not being able to take part at Second Reading.

Amendment 178A, in my name, is about the City of London, where local authority housing functions are carried out by the City of London Corporation through its Court of Common Council. The City is subject to the same member rules governing participation in discussion or voting on local authority housing matters, where a member has a pecuniary interest, as those which apply to councillors of local authorities. These rules are contained in the Localism Act 2011.

The rules include an ability for local authorities to issue dispensations to allow councillors to participate and vote where it is right for them to do so to fulfil their democratic responsibilities. However, this ability to issue dispensation does not apply to the City because an additional provision, contained in what is now Section 618(3) and (4) of the Housing Act 1985, bans City members outright from voting on such matters. The contravention of this ban constitutes a criminal offence.

The history of the Housing Act provisions have been examined by the City’s law officers and discussed with officials, but their origin remains unexplained. They have simply been repeated without comment in successive consolidations of housing legislation over the years. My amendment seeks to address this anomaly by removing them. This will make the City of London subject to the same regime as local authorities. It is clearly only right that City residents should have the same entitlement to be represented in housing matters as applies elsewhere. I hope that my noble friend will agree. I beg to move.

[Baroness Bennett of Manor Castle (GP)]

My Lords, with apologies, and being aware of the hour, I will be brief. I oppose in the strongest terms the amendment moved by the noble Lord, Lord Naseby.

The City of London is the last rotten borough. The elections to the City of London can in no way be described as democratic. There is also the City of London cache, a massive fund amassed over many centuries and explicitly excluded from freedom of information. The last figure that I have, from 2012, is of a £100 million per year income.

The rights of the City of London go back to William the Conqueror, who said that he would maintain all the rights and privileges that the citizens had hitherto enjoyed. It is about time that we finally modernised and got past that. In 1894, it was recommended by a royal commission that the City of London Corporation be abolished. I put on the record my desire to work with any noble Lord who wishes finally to reach that obvious conclusion.

[Earl Howe (Con)]

My Lords, as my noble friend has explained, Amendment 178A seeks to remove voting restrictions on either housing issues or related planning decisions applying uniquely to members of the common council of the City of London who are also tenants of the City of London Corporation. Sections 618(3) and (4) of the Housing Act 1985 mean that, while an individual can be a councillor of the City of London if they are a housing tenant of the corporation, they cannot apply for a dispensation to vote on housing or related planning decisions. Voting in breach of Section 618 is a criminal offence. This is not dissimilar to the regime that applies under the Localism Act 2011 which also creates a criminal offence where a member fails, without reasonable excuse, to comply with the requirements to declare their disposable pecuniary interests, and takes part in council meetings.

Councillors in any authority elsewhere in England, operating under the disposable pecuniary interest regime in the Localism Act 2011, can apply for a dispensation to vote on matters where they have a declared interest—but there is no such discretion for the City of London to grant a dispensation where Section 618 applies. In short, this means that City of London councillors are being treated differently from all other councillors in England. I am aware that the City of London has raised the issue on previous occasions. I am grateful to my noble friend for his amendment. Between now and Report, I undertake to give the matter proper consideration and would be happy to arrange a discussion with my noble friend if he would find this helpful.

[Lord Naseby (Con)]

My Lords, I am extremely grateful to my noble friend on the Front Bench. I willingly accept his kind offer of further discussions. I beg leave to withdraw my amendment.

Amendment 178A withdrawn.