Levelling-up and Regeneration Bill

Lord Shipley Excerpts

2nd reading
Tuesday 17th January 2023 Lords Chamber

[Lord Shipley (LD)]

My Lords, I remind the House that I am a vice-president of the Local Government Association. I agree strongly with what the noble Baroness, Lady Warwick of Undercliffe, said in her comments on housing. As my noble friend Lady Thornhill said, levelling up is a herculean task that we should all get behind. I therefore welcome the Bill, in so far as it could start to spread power away from Whitehall if properly implemented and expanded, and could help to drive further regeneration and more skilled jobs. However, I fear that the Bill as it stands will not achieve the Government’s stated levelling-up objective to

“grow the economy in the places that need it most”.

It will need substantial amendment to do that. There is at least to be a statutory requirement to report on progress with the 12 levelling-up missions, and I welcome that. But I hope the Minister can confirm that it will include the scale of private sector investment into those areas.

The three things that most people want from a Government are a decent home, a secure job paying a fair income and a rewarding education, and yet the number of households renting in England and Wales has doubled over the last 20 years, as revealed in the 2021 census. Inflation today is reducing the value of pay. The cost of childcare is too high for many families. ONS data has shown recently that disadvantaged pupils in schools in the north do less well than their peers in the south. Transport poverty is growing in rural areas as public transport services are cut. Local authorities are being forced to bid for extra money for key public services because the money is no longer in their baseline. This is not levelling up.

The levelling-up Bill is effectively a planning Bill. On housing, the test for the Government is whether it leads to the building of more homes, particularly homes for social rent. The Bill may help, but we will need to examine the detail of the infrastructure levy to assess that further. As our briefing from Shelter has said,

“the current planning system prioritises maximum delivery of unaffordable homes that can be sold to the highest bidder, instead of well-planned developments with homes that people can genuinely afford.”

As we have heard, there is currently a consultation on national planning policy. It ends in early March. Will the Government give us feedback before Report? We should have it.

Part 2 of the Bill is highly centralist. It does not offer devolution; it offers delegation and decentralisation, in which mayors and combined authorities compete against each other to win support from Ministers and the Treasury. Wales, Scotland and Northern Ireland all have devolved powers, but the Bill will not treat the constituent parts of England in the same way, and I do not understand why. England needs greater fiscal devolution. No Government can run England, with its population of 56 million people, out of Whitehall, and yet England will continue to be run out of Whitehall if the Bill is enacted in its current form.

We need to provide proper empowerment to the geographical areas of England, following the example of the Basque country in Spain, where public and private sectors have worked in partnership with trade unions and the voluntary sector to drive prosperity in their region. It could be done in the UK as we build capacity, but it will not happen with the degree of centralised control by Whitehall that the Bill proposes. Strangely, the Bill is far too centralist even at a local level, so we should look very carefully in Committee at the powers that will lie in the hands of mayors and at how mayors will be scrutinised on the decisions they take. There is an assembly in London but there is no such structure elsewhere in England—why is that?

I accept that the Government cannot do everything, but they can drive more and better jobs, build homes that people can afford to live in, do more in education and training, deliver better transport, and lead proper devolution throughout England with greater fiscal powers to generate growth beyond the limited financial powers planned by the Bill.

Levelling-up and Regeneration Bill

Lord Shipley Excerpts

Committee stage
Monday 20th February 2023 Lords Chamber

[Baroness Lister of Burtersett (Lab)]

My Lords, I thank the noble Baroness, Lady Pinnock, for tabling this amendment because it gives us the opportunity to pinpoint the tension at the heart of the levelling-up agenda. As the impact assessment reminds us, the problem it claims to address concerns unequal shares and opportunities, and levelling up

“is a mission to challenge, and change, that unfairness.”

It means

“giving everyone the opportunity to flourish”

and to have

“longer and more fulfilling lives”,

together with

“sustained rises in living standards and well-being”

for people everywhere. In fact, this is a statement about people, not places, as reflected in some of the missions. Yet the impact assessment states that achieving the aims of levelling up

“requires us to end the geographical inequality which is such a striking feature of the UK.”

The Minister’s levelling-up letter explains that the missions are necessarily spatial—but why are they purely spatial and geographical when inequalities of income and wealth between individuals are also striking features of the UK? A report published by the Social Market Foundation, called Beyond Levelling Up and written by a former senior adviser to recent Conservative Chancellors, argues that this approach to levelling up

“avoids the question of whether we think the gap between rich and poor is acceptable, and whether we are comfortable with the current levels of income and wealth accruing to the richest in society.”

I will leave those in poverty until a later amendment. To make matters worse, ONS data shows that inequality has worsened since he wrote the report, and it is worse still if we use alternative measures on inequality.

I ask the Minister if she thinks the gap between rich and poor is acceptable. How does she think that the levelling-up agenda’s ambitions can be achieved without addressing that gap between rich and poor?

[Lord Shipley (LD)]

My Lords, I declare, for Committee stage as a whole, that I am a vice-president of the Local Government Association and a vice-president of the National Energy Action advisory board.

I thank my noble friend Lady Pinnock for raising this issue; it is very important that we have a shared understanding of what we mean by levelling up. For me, I think it is the second option she gave, which is narrowing the gap. If we were to compare ourselves with Germany, we would find that there is a constitutional requirement in Germany for the 16 Länder to support each other, and the outcomes are assessed in terms of how well off the Länder are and using the many criteria we will be debating later today—there are so many criteria you can use. However, it is important that we understand the Government’s precise objectives with the Bill.

Levelling-up and Regeneration Bill

Lord Shipley Excerpts

Committee stage
Wednesday 22nd February 2023 Lords Chamber

Moved by

[Lord Shipley]

10: Clause 1, page 1, line 14, at end insert—
“(2A) A statement of levelling-up missions must include an assessment of geographical disparities in the United Kingdom, broken down by local authority and, wherever possible, by postcode area.(2B) An assessment of geographical disparities must consider—(a) levels of public spending, both capital and revenue,(b) levels of private sector inward investment,(c) levels of disposable household income,(d) levels of employment, unemployment, and economic inactivity,(e) levels of home ownership,(f) levels of educational attainment,(g) numbers of young people not in education, employment or training,(h) levels of child poverty,(i) success in reducing health inequalities,(j) the availability and cost of public transport, and(k) levels of fuel poverty.”Member's explanatory statement
This amendment would define criteria that could be used to evaluate the success or otherwise of levelling up policies that aim to address geographical disparities

[Lord Shipley (LD)]

My Lords, this could be a brief debate on this group of amendments. I agree with the noble Baroness, Lady Hayman of Ullock, in her conclusions on missions and metrics—and I shall come back to that in a moment. I also agree entirely with what the noble Lord, Lord Stevens, said a moment ago. I hope I quote him correctly, but I think he said, “The Bill will be useful if it forces a focus on the means of delivering levelling up”. That was particularly helpful, because it is really what these amendments in this small group are about.

In moving Amendment 10, I shall speak also to Amendment 58, to which I have added my name, and I want to support Amendment 48. There has been a lengthy debate on missions and metrics, the existing and the new ones. When I read the White Paper and then the Bill for the first time, particularly the missions and metrics, I concluded that we had to start with how outcomes would be evaluated. The metrics as set out will in most cases be impossible to interpret in the context of levelling up because they cover too large a spatial area. We need to know what exactly needs levelling up and where.

As an example, I take bus services, in the context of services in the past year being cut by 10% across the country. Yet in the document about measuring the progress in levelling up, in figure 16 there are mentions of buses—but it always assumes that there is a bus. It is about whether the bus is running late or not and whether you can get to work by bus on time, whereas the issue is actually whether there is a bus at all that will get, for example, a student in a school doing a T-level to the employer providing the 20% of work experience required for that T-level.

I concluded very early on in considering the Bill that we have to define the Bill’s use of the words “geographical” as well as “disparities”. A lot has been said about “disparities”, so I shall concentrate on “geographical”. Many statistics exist now, but not all the statistics that we would like to have. Some of those statistics that are available now are national, while some are regional and some are local, depending on which body produces them. I propose that we need to assess outcomes with independent assessment of what happens at a very local level, hence my suggestion of using area postcodes—or the first few digits, such as in mine, which are NE3. You cannot get it down to a street level, I concede, and I also concede that another way of addressing the issue is, as the noble Baroness, Lady Hayman of Ullock, said, by doing it by council area and council ward. You could do it by council ward: 40 years ago we were doing assessments and metrics of this kind at a ward level in Newcastle upon Tyne. Most local authorities were able to produce evidence like that.

We have to be much clearer about how we are going to assess outcomes, for we have to do outcomes—it cannot just be about missions. How else will we know that levelling up is actually happening? I have a proposal for the Minister, which is what the noble Baroness, Lady Hayman of Ullock, ended up saying. The Government should take back all the missions and metrics that they have put in the Bill’s documentation and then add to it everything that has been recorded in Hansard in all the excellent contributions that have been made. Then they need to reissue all those missions and metrics by the time we reach Report, which, because of recess dates, will be some weeks hence. I have absolutely no doubt that the department can easily do it in the time before we get to Report. I beg to move.

[Baroness Taylor of Stevenage (Lab)]

My Lords, it is rather a shame that this Bill appears to have become a bit of a Christmas tree Bill, with everything hung on it. As my noble friend Lady Hayman has said, in truth it is three Bills—a levelling-up Bill, a planning Bill and a structure of local government or devolution Bill. In truth, it would have been better had it come forward in that way.

If the Bill is to be true to its title as a levelling-up Bill, it must surely take the serious aspects of regional disparities as essential to making the Bill work. The amendments in this group—I support the amendment proposed by the noble Lord, Lord Shipley, as well—are tabled to ensure that the geographical differences between communities are properly assessed so that a baseline can be established and success then measured. The right reverend Prelate the Bishop of Leeds said that without evaluative processes in the Bill they are just aspirations, and I agree. We can have as many dreams as we want about what might happen but, if we do not actually say where we are trying to get to, it is like setting out on a journey without a destination in mind. You do not know where you are going to end up, and that is really key.

The evidence on disparities between and within communities in the UK is irrefutable. The Government’s own figures show that 37% of disposable household income in the UK went to just one-fifth of individuals with the highest incomes, while only 8% went to those with the lowest. The Equality Trust has demonstrated just how unequally wealth is spread across the UK, with the south-east having median household wealth that is well over twice that in the north of England. It is true to say that some of this is driven by property wealth, but with the north-east, Wales, Yorkshire and the Humber and the east and West Midlands at less than half the wealth of London and the south-east, the impact on economic opportunities is stark. The Equality Trust research states that the UK has the highest level of income inequality than any other European country other than Italy.

The right reverend Prelate the Bishop of Leeds referred to the need to have discrete attention paid to the most serious causes of inequality, which is absolutely correct. We had a debate under the previous group of amendments around health inequalities. Those key areas of disparity between our regions are stark. The Health Foundation shows, for example, that a 60 year- old woman in the poorest areas of England has a level of diagnosed illness equivalent to that of a 76 year-old woman in the wealthier areas. Children in poorer areas are much more likely to be living with conditions such as asthma and epilepsy and, as they get into their 20s, with chronic pain, anxiety and depression—and for the over-30s in those areas there is the prevalence of diabetes, COPD and cardiovascular disease. There are demographic differences, too, with people from ethnic backgrounds all having higher levels of long-term illness.

We have already commented on the missing health disparities White Paper. It is terrible that that has been scrapped, because it would have made the assessment of levelling-up needs in relation to health far easier. We need to find out from the Minister what has happened to that health disparities White Paper. We will continue to support work which means that the Bill will show how levelling up will tackle health inequalities.

There are many areas of disparity. I shall also speak about educational attainment. While educational attainment in London and the south-east outstrips much of the rest of England, evidence from the Institute for Fiscal Studies shows that a 16 year-old’s family income was more than four times as strong a predictor of GCSE attainment than their local authority of residence. Both the Sutton Trust and the Education Policy Institute have raised concerns that the pandemic has seen a widening of that educational attainment gap and that that has a lifelong impact on young people. I noted the Minister’s comments on this, but it is hard to see how the current lack of a fair funding system and the regressive nature of council tax will not continue to build in the inequalities that disadvantage those young people. As an example, I was very pleased to see that the Mayor of London used the increase in business rates he had had, which most areas of the country may not benefit from, to provide free school meals for all primary schoolchildren just this week.

As well as disparities between regions, it is important that the Bill recognises that there are also stark contrasts within areas. My noble friend Lady Hayman’s amendment refers to this. Even in London we have the classic examples of increasing levels of inequality as you go along the route of underground lines. This means that, on all measures—economic, health, education and well-being—there are great disparities. If we take the line between Kensington and Barking and Dagenham, we can see that the disparity grows as we go along that route. Similar disparities apply all across the south-east. Even in my own area, the county council division I represent has a difference of nine years in life expectancy from another area in my borough which is just three miles away. These differences are very stark.

I was very pleased to hear the noble Lord, Lord Shipley, talk about bus services. The lack of bus transport in some parts of our country is a real issue, and it affects particular groups of people who do not have access to other forms of transport—to name some, the elderly, students and those on low incomes. It effectively places them under a curfew and stops them having access to all the opportunities of work, school, college, hospital and health access, and social and welfare opportunities that they could take advantage of. It is a really big issue, depending on where you are.

I loved my noble friend Lady Hayman’s example of one bus a week. Obviously, in Cumbria, two buses a week would get us closer to London services, and that shows the difficulty with using faulty metrics: it is not helping anybody much to have two buses a week. I remember discovering, on my early visits to the Local Government Association here in London, that there was a bus literally every three minutes between Victoria and Westminster, which takes about 10 minutes to walk, if you can walk it. It was a revelation to me. Even 28 miles away, where I live, that is not the case. There are big differences and regional inequalities in those services.

I listened with interest to the powerful speeches earlier on housing, another area of inequalities between our regions, but I fear we would probably be here even later into the night if I started on housing. I shall just say that the Housing First provision we have made in my own area—where we put a roof over the head of someone who is street homeless first, in purpose-built accommodation, and then provide a package of complex-needs support—is making a real difference. That probably cannot be done everywhere, but these things make a difference and start tackling the real inequalities between our areas.

I hope the examples I have used, on the economy, health and education, demonstrate how important it is to be able to effectively measure the progress of levelling up if we are to be able to truly demonstrate its impact. The amendments in this group are key to ensuring that the Bill recognises the importance of the evaluation process, including the independent oversight which has been the subject of previous discussions in our first session on the Bill. I hope we can persuade the Minister—I know she has a lot to think about on the Bill—to reconsider some of those issues. If the Bill is truly to meet the aspirations of its title as a levelling-up Bill, we need to think about how we tackle those regional disparities.

--- Later in debate ---

[Baroness Scott of Bybrook (Con)]

I do not know whether it has any views on it at the moment, but I will ask that question.

Alongside this, my department has also established a new deep-dive team, to take a new place-based approach to policy-making. This is quite important. This team gets to know specific places. To date, these places have included Blackpool and Grimsby. It combines the granular data that we are beginning to put together with local knowledge, to identify a set of policy interventions to make a noticeable difference to the people living there.

The noble Baronesses, Lady Taylor of Stevenage and Lady Young of Old Scone, brought up individuals. We go down to council wards, but there are people. We are talking about people. The levelling-up White Paper is a plan for everyone. The focus is on the left-behind places, but the ultimate goal of levelling-up policies is to improve the living standards and quality of life of the people living in those places. This means that where individuals with certain protected characteristics are disproportionately affected, they will benefit from the whole levelling-up programme policies and systems change. For example, some ethnic minority groups have, on average, poorer health outcomes. They are more likely to be living in non-decent homes. By aiming to reduce these disparities across the UK and in places where they are most stark, levelling up will have a positive impact on the places and, as importantly, on the people.

There were a number of questions or comments on the levelling-up fund, which I would suggest are probably for the sixth group of amendments. However, I will answer a couple of them; they were all more or less the same views. The levelling-up fund index identifies those places in greatest need, as we have heard, of this type of investment. In this round 2, 66% of funding has gone to category 1. Those are the places of greatest need. Over rounds 1 and 2, 69% of funding has gone to category 1. I can also say that in investment per head of population, the highest investment went to Wales, followed by the north-west and then the north-east. The money is going to the right places but that is just as an aside because this will come up again in group six.

This approach, set out in the Bill, sets a clear, uncluttered and long-lasting framework for measuring the progress of levelling-up missions. I hope that this provides the noble Lord sufficient assurance to withdraw his amendment.

[Lord Shipley (LD)]

My Lords, I am very grateful for the Minister’s response, but the more I learn, the more worried I get. I have learned tonight that the independent assessors have met several times. I have not seen any public report about what they are doing. Parliament has a role in this. It is reasonable in the context of this Bill proceeding that more information is provided to us.

We have learned that we have a spatial data unit in the department, and that we have a deep-dive team, but what this team is doing is ill defined. I have said several times in this Chamber that you cannot run England, with its 56 million people, out of London. It is simply too much. Therefore, the question will be: what exactly is the spatial data unit doing and what exactly is the deep-dive team doing? To whom are those bodies speaking at a local level so that they are properly informed?

I was encouraged that the Minister did talk about councils and council wards. I was aiming at postcode areas, and the noble Baroness, Lady Hayman of Ullock, was aiming at councils and council wards, so at least we have some progress. There is an offer of a teach-in. A seminar, at the very least, has become fundamental. As the noble Lord, Lord Stevens, said, how about the Government starting by publishing the gaps in social care? I had not realised that those gaps have not been published, even though they are available.

There is a fundamental set of issues here about the public’s right to know. If this is a Bill which is levelling up, surely the metrics of that must be discussed by us before it gets very much further. So I repeat my suggestion that the Minister takes all the missions and metrics away, takes account of everything that noble Lords have said in this Chamber in the two days in Committee so far, and rewrites the missions and the metrics so that we can produce the outcomes that a levelling-up Bill should be producing. Having said that, I will come back to this on Report.

[Baroness Scott of Bybrook (Con)]

On the deep-dive teams, of course they are working with local people. I have said that this combines the granular data that we have with local knowledge, and works with local organisations, local councils and other organisations in areas to identify those interventions. Surely this is what your Lordships would want a good Government to do.

[Lord Shipley (LD)]

I would be very happy with that, but I did not know about, and I think that no one else in this Chamber was aware of, the deep-dive team. That raises another set of questions. Perhaps the Minister can write to us about this, explaining exactly what this deep-dive team is doing and where it is working. I have a fear that we are going to see the regional directors for levelling up appointed at some point. There has been mention of having regional directors. Can you imagine in a country of 56 million people having regional directors for levelling up? It is an absurdity as a concept. I hope that the Minister is willing to tell us that this will not be actioned. That was reported in the i newspaper about 10 days ago. However, somebody has decided where the deep dives are taking place. It may well be that all kinds of bodies are being talked to, but this information needs to be more publicly shared. With that, I beg leave to withdraw my amendment.

Amendment 10 withdrawn.

Levelling-up and Regeneration Bill

Lord Shipley Excerpts

Committee stage
Monday 27th February 2023 Lords Chamber

[Baroness Bennett of Manor Castle (GP)]

My Lords, I rise to speak to Amendment 127, which appears in my name in this group, and to make a couple of brief comments on the amendments so clearly and comprehensively presented by the noble Baroness, Lady Taylor of Stevenage.

I refer back to the terminology the noble Baroness used in the previous group when talking about what the spirit of devolution should be: it should surely be a democratic spirit. The decision about the shape of devolution should rest with the local people, the people who are actually affected. Historically, the perception and the reality of some instances of devolution has been deals done un-transparently, in the dark, in what would once have been smoke-filled rooms. The smoke may have gone, but that lack of transparency remains.

What we are seeking here is a different idea of devolution—devolution that is truly transparent and open, with local people in control of the process rather than having it inflicted on them. With that in mind, my Amendment 127 calls for a referendum to be conducted on whether a combined county authority should be established in a given area. It occurs to me, having listened to the debate on previous groups of amendments, that the amendment should say “established or disestablished”, but we are in Committee so we can explore these things as we go along.

I see that the noble Lord, Lord Scriven, is in his place, so we might have already had extensive discussion about what happened in Sheffield, South Yorkshire and north Derbyshire. I will not, therefore, go into great detail on that, but it is worth noting that Sheffield voted against having a mayor and then, not long afterwards, found itself with a mayor.

I will also give a more positive, more recent example from Sheffield. Sheffield is the largest local authority to convert, through a referendum, from a cabinet-based system to a modern committee-based system of government. I know many of the people who were involved in that campaign, which was led not by political parties but by a local community group. Many people said, “You’ll never get this referendum through. It’s all too technical, difficult and complicated, and people won’t understand.” But the referendum was voted through. It was a real vehicle for a huge amount of debate and discussion in the city about how it was run and administered, and how that could be done better. Putting a referendum in for CCAs would be a chance to have a discussion and a debate, and to really engage local people, which is what we need in our local areas to improve the quality of local governance.

Of course, the other recent example of such change, driven at the local level with decisions made by local people, is the city of Bristol deciding to get rid of its mayor. That was the decision that the people of the city made. Again, some said, “You’ll never get this referendum through; everyone is just going to shrug and it will all be too difficult.” But people were engaged and involved and they made the decision for themselves. Surely, that is what democracy means, and that is why I have tabled this amendment.

[Lord Shipley (LD)]

My Lords, I will make just one or two comments on this group. I have listened very carefully to this and the previous group and I think we have an opportunity for the Government to clarify a number of issues around consultation and, indeed, referendums. I listened carefully to what the noble Baroness, Lady Bennett of Manor Castle, said about referendums. What is needed is a statement from the Government, hopefully before Report, on what the nature of consultation should be. What would be deemed to meet a minimum requirement or threshold for there to be an official consultation?

Secondly, the Government need to be absolutely clear what their own powers should be in relation to a consultation: what they can require of a local authority or set of authorities. I welcome the fact that this discussion is taking place; it is really important. We have discussed before in recent years during the passage of previous Bills what local people have a right to expect of their consultation. I, too, in Newcastle, have been through a mayoral referendum, and the same thing happened. The decision was not to have a mayor, but, of course, we now have a mayor of the North East Combined Authority—for which, in fact, there was no referendum. Our referendum was within scope; I ask the Minister: are referendums out of scope?

Turning to Amendment 62, I was struck by one or two other very important issues raised by the noble Baroness, Lady Taylor, which the Government need to be a bit clearer about. The first was also raised by the noble Baroness, Lady Hayman of Ullock: travel-to-work areas. It all depends how big your CCA or other combined authority is geographically. A very important issue is raised in Amendment 62: whether the Government are thinking in terms of each CCA having a single economic hub. In a number of areas that would not be suitable. In my own part of the country, several travel-to-work areas apply. Hopefully, that point will not be forgotten by the Government.

Lastly, on Amendment 63, the noble Baroness, Lady Taylor of Stevenage, made another very important point about the duty to co-operate. When during previous Bills we have debated the duty to co-operate, the Government have always been very positive about having that duty placed clearly on the face of the Bill. But a CCA is not just being required to co-operate with a neighbouring CCA, but with all the other bodies that may relate to it. Given the ability of the public sector to operate across boundaries, both geographical and in terms of responsibilities and powers, it matters that the duty to co-operate is made absolutely clear at the outset.

[Baroness Pinnock (LD)]

My Lords, I will just make one or two additional comments to those of my honourable friend Lord Shipley, the main one concerning Amendment 126 in the name of the noble Baroness, Lady Hayman of Ullock, about public consultation. I have been involved in a number of statutory instruments on the establishment of metropolitan combined authorities where the public consultation involving “the public” has been minimal, but it was agreed to be satisfactory because it enabled other local institutions—be it businesses, local council representatives or the LEPs—to respond. That has been labelled “public consultation”.

Levelling-up and Regeneration Bill

Lord Shipley Excerpts

Committee stage
Monday 27th February 2023 Lords Chamber

[Baroness Hayman of Ullock (Lab)]

My Lords, in moving Amendment 66 I will speak also to a number of amendments in this group in my name and that of my noble friend Lady Taylor of Stevenage.

Amendment 66 would require an environmental impact assessment to be published following the establishment of a CCA. We have heard in previous debates that the Bill will create a new model of combined authority through county deals, which will provide local leaders with powers to enhance local accountability, join up services and provide transparent decision-making to rejuvenate their communities. Although this is clearly an excellent ambition, previous debates have also demonstrated that there are many unknowns about how things are going to happen, particularly in a practical way, and what the impacts will be.

An environmental impact assessment would ensure that the likely environmental effects of any decisions are fully understood and then properly considered. An EIA would assess the direct and indirect impact based on a wide range of environmental factors—and it is a wide range, which is why an EIA must be considered and published. It could cover population and human health, biodiversity, land and soil, water, air, climate, landscape, material assets and cultural heritage. There is a lot here to be thought about. It is important, particularly given that we do not believe, as others have said in the previous debates around emissions, that the environment has been properly considered as one of the missions; it is not properly built upon throughout the Bill.

Amendment 74, tabled by my noble friend Lady Taylor of Stevenage, asks the Government to define and clarify the purpose of non-constituent members under Clauses 9 and 10, which relate to the appointment of the non-constituent and associate members of a CCA respectively. Our concern is that it is not clear whether there is to be any further guidance on whether certain types of non-constituent or associate members will be prescribed by the Secretary of State or recommended in further guidance, or whether it is entirely for the CCA to determine this class of membership according to what it believes local needs to be; for example, whether an ICS or a hospital trust is invited—because a major priority is to tackle health inequalities—or whether it is felt to be important locally that the local enterprise partnership be a non-constituent member to make a link with economic growth. Clarification on that from the Minister would be very helpful.

We have concerns that Clauses 9 and 10 appear to be qualified by Clause 11, which gives significant powers to the Secretary of State to make regulations in relation to non-constituent members. These include the number of non-constituent members; the appointment, disqualification and resignation, or even removal, of non-constituent members; the appointment of a substitute member to act in place of a constituent member; the maximum number of non-constituent members; and the things that may or may not be done by a non-constituent member. There are also equivalent Secretary of State powers relating to associate members. A circumstance could be imagined where, if the Secretary of State took such powers, the outcomes could end up being the exact opposite of the localism and devolution that the Bill purports to enshrine.

That is our big concern with these clauses, and why the amendment seeks clarification and further definition relating to the role of non-constituent and associate constituent members of the CCA. It is important to understand this properly. We do not want any part of the Bill to start pulling powers back centrally when the Government appear to want the exact opposite.

Amendment 76 in my name carries on from this. It would mean that a CCA could request that regulations are introduced in relation to it. Again, it is about the control that the CCA itself has when looking at regulations and at how it needs to operate and behave effectively for its local community, rather than everything being driven centrally by the Secretary of State.

Amendment 86, from my noble friend Lady Taylor, means that an annual statement must be published to show how much funding is given to each CCA. This should include a cost-benefit analysis. We have talked a lot about funding today and last week. It is a critical central part of achieving success from these clauses and the proposed devolution for England.

Clause 14 specifies the process by which the Secretary of State may draw up regulations for the funding and costs of a CCA to be met by its constituent councils, and how that amount payable will then be determined. While the clause specifies that this has to be done with the consent of constituent councils and the CCA, it does not tell us how any additional funding that may be provided by the Secretary of State, for example through the different competitive bidding pots that exist or any grants that may be given, will be included in the accountability process for the CCA. Clarification around that would be very helpful.

We also cannot ascertain from the clause how the overview and scrutiny committee—or the general public, for that matter—would be able to determine by cost-benefit analysis just how effective, with the funding being contributed to it, the CCA is at then delivering against its objectives for the area. We believe that our amendment provides a simple, straightforward way to provide that accountability through an annually published statement.

Amendment 100 in Clause 23, in the name of my noble friend Lady Taylor, would require the Secretary of State to explain how a local government area will, in future, have access to the powers that it has lost through removal from a CCA. My noble friend referred to this earlier. If the Secretary of State exercises the powers set out in Clause 23 to change the boundary of a CCA and remove a local government area from the existing area of the CCA, they can either transfer those functions to another public authority or remove a particular function of the CCA altogether for that area. While there is provision that the relevant councils must consent to this removal, there is nothing in the Bill as it stands that requires the Secretary of State to specify how any powers or functions will be delivered in future once that membership of the CCA has been terminated. So, again, it would be very helpful if the Minister were able to explain how that would move forward.

Clause 23(8) refers to consent being required from only the county council and not from any district councils that may be constituent members. My noble friend spoke earlier about the important role that district councils should play. They should not be seen just as a stakeholder, a secondary authority that does not have a say in such matters. This would mean that, in effect, an area could be removed from the CCA with the consent of only the county council but not of the constituent district councils that make up the area of the CCA being removed from its boundary. Surely they should have some kind of say in this. Is this what the Bill is intending or is this an oversight? If it is what the Bill is intended to do, would the consent vote required in Clause 23(9) specifically exclude the votes of district council members of the CCA? This is a really important area that we need to clarify.

Amendment 129, again in the name of my noble friend Lady Taylor of Stevenage, would require the Secretary of State to produce guidance on the establishment and operation of CCAs within six months of the Bill receiving Royal Assent. The current clause simply states that the Secretary of State,

“may give guidance about anything that could be done”

in relation to this chapter. Well, in view of the fundamental changes to the structure of local government that this chapter on CCAs is introducing, we believe that that is far too vague, and very likely to leave local government with a cloud of uncertainty hanging over it. In view of the fact that there have already been many iterations of the devolution agenda in recent years, we do not believe that it is unreasonable to expect that the Government will work with the sector in order to have, very quickly, clear and detailed guidance in relation to the establishment and the operation of CCAs as soon as possible after Royal Assent. That is why we have asked for this to happen within six months.

I turn finally to Amendment 130, which aims to probe whether the public will be informed of their CCA’s functions. With this amendment, we want to determine whether the Secretary of State will be responsible for setting out the purpose and aims of the CCAs, and how they are to be established and operated; or whether that responsibility will fall to local government. If the latter is the case, will there be new burdens that will require funding in relation to the communications aspects of informing the public about the functions of a CCA? Will any such new burdens extend to any public consultation funding? This may well be required when an area decides to proceed with the establishment of a CCA. We discussed consultation a lot in the last group but one, and the Minister seemed to believe that there was going to be support for any new burdens—so, again, clarification on that would be very welcome. With that, I beg to move.

[Lord Shipley (LD)]

My Lords, I want to give very substantial support to what the noble Baroness, Lady Hayman of Ullock, has said. She has made several very powerful points. I hope that the Minister will be able to respond to those, because I am as concerned as the noble Baronesses, Lady Hayman and Lady Taylor, are about some of these issues. Some of what I want to say I will cover in the next group, so I will try to avoid getting on to the issue of voting powers.

It really is very telling. Amendment 74, in the name of the noble Baroness, Lady Taylor of Stevenage, says:

“Within 30 days of this Act receiving Royal Assent, a Minister of the Crown must publish a statement including a definition of ‘non-constituent member’ and a description of their purpose”.


If I may be so bold, I think that is really late. I had expected that we would have this before Report. With the concept of an associate member and the concept of a non-constituent member, I really think that, before this Bill gets any further, we have to understand what the Government are thinking of with those definitions. We can all hazard a guess. I can hazard a guess. Some things have been said and occasionally written, but we have to do better than this.

On page 10 of the Bill, in Clause 11, the Secretary of State is going to make provision by regulations for a whole set of matters about membership. Then, as the noble Baroness, Lady Hayman of Ullock, rightly identified, it is almost a whole side of the Bill which includes provisions on just about anything you could think of. I am at a loss to understand why these matters are not public at this stage in the consideration of a Bill.

Clause 11(4), “Regulations about members”, says:

“In this section ‘constituent member’, in relation to a CCA, means a member of the CCA (other than any mayor for the area of the CCA) appointed by a constituent council.”


I am sure that is correct, but that is the only definition we have. We have no definition of an associate member or a non-constituent member. Yet, as we will discover in the debate on the next set of amendments, the CCA will have discretion to give those people full votes. There is a big issue here, and I intend to take it further when we get to Report.

All I am trying to do is to support the noble Baroness, Lady Hayman of Ullock, and say to the Government: here we have a number of very serious proposals that, as they stand, are unacceptable.

--- Later in debate ---

[Baroness Hayman of Ullock (Lab)]

My Lords, I am going to lose my voice at this rate. I will introduce my amendments in this group and briefly comment on those in the names of other noble Lords.

My Amendment 67 to Clause 8 means that regulations can relate only to the initial constitutional arrangements, and my Amendment 68 means that the regulations relating to the constitutional arrangements of a CCA can be made only after consultation with the CCA. Clause 8 allows the Secretary of State to establish constitutional arrangements, and we do not have a problem with that at all. These are defined as

“membership ... voting powers ... executive arrangements”

and

“functions of any executive body”.

The executive arrangements include government appointments, the functions by which the executive operates, the functions of the executive that might be delegated to the committee, the “review and scrutiny” of the executive, “access to information” about the executive and the disapplication of Section 15 of the Local Government and Housing Act 1989—plus the keeping of records. These are important aspects of establishing who will be on a CCA, where decisions will be made and what will and will not be in the public domain.

We believe that, once the Secretary of State sets up the bodies, they really ought to be allowed to get on with the job without undue interference. We believe that we should be able to trust them to exercise the significant power and money functions that will be devolved to them from the centre by this clause. So, if we trust them to do that, we should also trust them to be able to operate their own constitutional arrangements.

My Amendment 67 would insert the word “initial” to demonstrate that the Secretary of State may make provisions about the first set of constitutional arrangements only, and then the CCAs can carry on and do it themselves. Amendment 68 would further ensure that CCAs are consulted on any further regulations that would relate to their constitutional arrangements.

I will speak briefly to my Amendment 88 to Clause 16, which would mean that the

“regulations can only be made with a majority of members of the constituent councils”.

If all the constituent councils are going to feel on a level footing, as it were, with the rest, it is important that they all have that say and that things can change only once there is a majority who actually wants to make that change. It is then more likely to be accepted and moved forward in a constructive manner.

I will comment on a few other amendments. The deletion of the paragraph that the noble Lord, Lord Shipley, has asked for in his Amendment 69

“would reduce the risk of single party control of the executive of a CCA or its committees”.

We strongly agree with the noble Lord on that. It is an important amendment, because the Secretary of State should not be able to make regulations which disapply the political proportionality rules for an executive or committee of a CCA; we believe that that is for the electorate to decide.

We also agree completely with the noble Lord, Lord Foster of Bath, in his Amendment 71, which means that a constituent council can include

“a district council in a two-tier county council for an area within the CCA’s area or proposed area”.

We believe that this is one of a number of places in the Bill where district councils must be allowed to be included as constituent councils in two-tier areas.

The noble Lord, Lord Shipley, has also tabled Amendments 72 and 75, which, again, reduce the risk of one-party dominance. I absolutely understand his point: if you allow voting members to resolve that non-constituent members can vote on a CCA, you could end up with the situation where this class of member is appointed specifically to boost the voting majority of one party. This comes back to us saying earlier that, if you are not careful, you could end up with a situation where things could be manipulated, even if that is not the Government’s intention. We have to be very careful about that, so we strongly support those amendments.

The amendment to Clause 26 in the name of the noble Baroness, Lady Bennett, would require a referendum. I see that she is very keen on referendums today. I am not sure whether this is subject to prior legislation, but I am sure that she can enlighten me. The consultation to which we referred in our amendment in relation to setting up the CCA could carry a requirement that it also determines the nature of that CCA: for example, whether it is to be mayoral-led or indirectly elected, appointed by the CCA. In any case, it is probably good practice to consider a referendum on whether there should be a mayor and whether a CCA is indirectly elected. However, the one concern we have—I am sure that the Minister will refer to this—is the considerable cost of running any referendum; that is the sticking point for us.

Amendment 114, in the name of the noble Lord, Lord Shipley, ensures that appointments cannot be imposed without scrutiny and without the CCA’s agreement. Again, this is around the appointment of a deputy mayor, in particular. If we assume the current system will continue as it is—that is, where deputy mayors are appointed—I would certainly agree with the noble Lord that this should not be without the scrutiny and agreement of the CCA. The question here is whether a powerful position such as that of deputy mayor should even be appointed in the first place, or whether we should undertake some kind of democratic process for these powerful positions.

Amendment 116A in the name of the noble Lord, Lord Stunell, seeks to probe the circumstances in which political balance might be inappropriate. This is a very helpful amendment where the noble Lord, Lord Stunell, is seeking to explore the nature of political balance in bodies that exercise joint functions. In effect, these have usually worked without political proportionality being applied, but it would be interesting to hear the Minister’s view on how this might operate going forward.

Finally, the noble Lord, Lord Shipley, has another two amendments. Amendment 120

“would ensure that the CCA is confident that powers being delegated by the deputy mayor are appropriate.”

Sensibly, it seeks to add an extra protection, which we would support—we would not want to see any deputy mayors going rogue, for example. Amendment 122

“would ensure that the views of a majority of the CCA are fully considered”.

Again, we think this is absolutely appropriate. There are important matters that this could cover—for example, the transfer of fire and rescue powers to the chief constable, which is of course a possibility. With that, I beg to move.

[Lord Shipley (LD)]

My Lords, I would like first to welcome the offer from the noble Earl, Lord Howe, of a meeting. I suggest that plenty of time be allowed for us to discuss some of the issues that we have been trying to get to the bottom of in our debates so far.

I have six amendments in my name, and they all derive from a first reading of the Bill and the Explanatory Notes. Going back and reading it all again, you realise you actually need to place amendments on these matters. In this group, there are Amendments 69, 72, 75, 114, 120 and 122, and they all have a common theme, which is the centralisation of power and the need for checks and balances in the decision-making process.

Amendment 69 would delete Clause 8(3)(f), which says that

“section 15 of the Local Government and Housing Act 1989 (duty to allocate seats to political groups) in relation to an executive of the CCA or a committee of such an executive”

is disapplied. Therefore, it will not any longer be in place. That says to me that the deletion seems to encourage single-party control of a committee structure of a CCA. I just ask the Minister whether that is wise. It seems to centralise a power to an inner group of the CCA.

There has been a lot of discussion in the last group and then this one about district councils and their rights—clearly the meeting we are going to have will address some of those issues. Amendment 72 is a probing amendment and would prevent non-constituent members of the CCA voting. I say that to draw an explanation of why a non-constituent member of a CCA should have a vote. Why should the non-constituent members of the CCA become voting members? Will they all have a vote, or will it be only some non-constituent members? There is a big issue of principle here. Is it not enough for a non-council-nominating member to be in attendance? It is a simple issue. If you are a full member, you have a vote, and if you have a vote, you must be a full member. In other words, we have to have a discussion about the rights of district councils to be full members and have full votes.

Amendment 75 then addresses the issue of associate members of a CCA having a vote at the discretion of the CCA. I would like the Minister just to explain in what circumstances an associate member would qualify for a full vote. Again, the process could encourage one-party domination, by giving a majority party the right to give a vote to an associate member of their choice—or do I misunderstand? I am very happy to have misunderstood, but I am probing to know what the intention actually is.

--- Later in debate ---

[Earl Howe (Con)]

My Lords, this group of amendments considers various aspects of a combined county authority’s constitution and its day-to-day working. Although I appreciate it is a probing amendment, Amendment 67, tabled by the noble Baroness, Lady Hayman, would remove the ability of the Secretary of State to amend the regulations on the constitution of a combined county authority. These regulations include the membership of the combined county authority, which must be amended if, for example, another area wished to join a CCA. Members of the new area would need to be added to the CCA. If no such change were possible, there could be no change to the make-up of an established combined county authority, regardless of the wishes of the local area. CCAs must retain the flexibility to include a new area or for an area to leave, or to reflect other such changes.

Turning to Amendment 68, I completely agree with the noble Baroness on the need for consultation with combined county authority members on regulations regarding the constitution of a CCA. Clause 44 of the Bill already goes further than this amendment by providing that the consent of all the constituent councils is required if the Secretary of State is to make any such regulations. It is worth my making the point that these clauses should not be read in isolation, but rather in the round.

I noted the noble Baroness’s position that CCAs, once established, should just be allowed to get on with it, without the involvement of or interference by the Secretary of State. I look at the issue from the other perspective. The clause enables constitutional arrangements for a CCA to be established in the regulations that will also establish the CCA. These arrangements are the fundamental working mechanisms of the CCA; they include aspects such as the membership of the CCA. As such, it is appropriate that they are set out in secondary legislation to ensure the establishment of a stable institution with good governance. A CCA can set out its own local constitution or standing orders with additional local working arrangements. This is done locally and does not require secondary legislation. However, the local constitution cannot be allowed to contravene primary or secondary legislation. There has to be consistency, and we believe that this is the right way to ensure that.

Amendment 69, tabled by the noble Lord, Lord Shipley, and spoken to by the noble Lord, Lord Kennedy, would prevent the Secretary of State making provision for the executive of a combined county authority to represent the political make-up of its members. A combined county authority is to be made up of members from each of the constituent councils on a basis agreed by those councils through their consent to the establishing regulations. These regulations will also provide for the make-up of the CCA’s executive. It is essential that the constituent councils can agree together the make-up of the combined county authority’s executive that properly reflects the local political membership of the CCA. This is essential to underpin the collaborative working required to make a CCA work in practice.

The amendment would, in effect, impose on a combined county authority an executive that did not reflect the make-up of CCA members, which could negatively impact on the working of the CCA. It would also place the executive of a combined county authority in a different position from that of either a local authority or a combined authority, neither of which requires political balance.

Amendment 71, tabled by the noble Lord, Lord Foster, would enable a two-tier district council to be a constituent member of a combined county authority. As I said, the combined county authority is a new institutional model made up of upper-tier local authorities only. Only two-tier county councils and unitary councils can be constituent members of a CCA. We contend that this model will provide the flexibility required for devolution to areas with two-tier local government, which has proved a challenge to date. It allows a combined county authority to be established with agreement from the councils across the area that will be the constituent members of the CCA; that is, the upper-tier local authorities.

I realise that some noble Lords are sceptical about this, but this model removes the risk of one or two district councils vetoing the wishes of the great majority for devolution, as has happened with some two-tier local government areas wishing to form combined authorities, where unanimous consent from all councils in the area, including upper- and lower-tier councils, is needed.

I come back to a point I made earlier. While they cannot be constituent members of a combined county authority and, as such, cannot consent to its establishment, district councils can have a voice in a CCA via the non-constituent member model, as set out in Clause 9. As stated in the levelling-up White Paper, we expect CCAs and their upper-tier local authorities to work closely with their district councils, and have been pleased to see this happening in deal areas. This flexible model will enable the county, district and unitary councils to work together in the way that best meets local needs and wishes. The bottom line, I contend, is that this amendment would defeat those objectives.

It is important for me to say to the noble Lord, Lord Foster, that we are not taking away district council powers. Devolution is about giving power from Whitehall to local leaders. We expect the upper-tier local authorities we are agreeing devolution deals with to work with district councils, as I have said, to deliver the powers most effectively being provided. In discussions thus far, we have been pleased to see collaboration of the kind I have mentioned.

I realise that Amendment 72 is, in essence, a probing amendment. It will not surprise noble Lords to hear that I cannot accept it, because it would prevent a combined county authority resolving that non-constituent members could exercise a vote on matters where the CCA considered this to be appropriate. Non-constituent members are non-voting members by default. As I tried to make clear earlier, the combined county authority can give them voting rights on most matters, should it wish to. For example, a combined county authority may have provided for there to be some non-constituent members from the area’s district councils to enable their input on matters of importance to district councils in the CCA’s area. The CCA may wish to maximise this input by allowing in certain circumstances for these non-constituent members to vote. This amendment would prevent these non-constituent members being given a vote and would risk undermining the CCA’s ability to work in collaboration with its district councils and other non-constituent members.

Amendment 75, also tabled by the noble Lord, Lord Shipley, would prevent a combined county authority resolving that associate members could exercise a vote on matters where the CCA considered this to be appropriate. I am afraid that this is another proposal that I cannot accept, for reasons similar to those I have just outlined for Amendment 72.

Associate members are non-voting members by default, but the combined county authority can give them voting rights on most matters, should it wish to. For instance, a combined county authority may have provided for an associate member who, for example, may be a local business leader or an expert on a local issue to enable the member’s input on matters on which they have relevant expertise in the CCA’s area. The CCA may wish to maximise this input—

[Lord Shipley (LD)]

May I ask for a point of clarification on the associate members? Is it possible that a CCA can decide to give an associate member a vote, but not other associate members, and on what basis would that decision be made?

[Earl Howe (Con)]

I think the answer to that is yes. CCAs can distinguish between associate members in that way. But they would need to justify to themselves why they were according that difference of treatment. Circumstances would dictate a different course in different circumstances.

I come back to saying that the CCA may wish to maximise the input of associate members by allowing—

--- Later in debate ---

[Lord Kennedy of Southwark (Lab Co-op)]

I will just come back to one point. I was a bit puzzled by the Minister’s response to Amendment 69 in the name of the noble Lord, Lord Shipley. The Government are taking the power in the Bill to disapply the duty to allocate seats on the basis of political proportionality in the combined authority; they are disapplying that power. The noble Lord, Lord Shipley, was seeking to remove that provision so that, if a party had a third or a quarter of the seats, it would expect something similar on the Executive. When the Minister answered the noble Lord, Lord Shipley, he gave an answer that seemed to agree with what he was suggesting while justifying the position of the Government. It seemed perverse.

I know that there are to be proposals for a Nottinghamshire/Derbyshire combined authority. At the moment Derbyshire County Council and Nottinghamshire County Council are controlled by the Conservatives, and Derby City Council is led by the Conservatives. The only Labour council is Nottingham City Council. On the basis set out in the Bill, the three Conservative councils could get together, gang up on the Labour council and throw it out of the committee structure. That surely cannot be right. Why would a minority council join something if it could be ganged up on and removed from the executive? It would not; we want to bring people together. I know that the noble Lord, Lord Shipley, is trying to ensure that this problem could not happen. I do not follow the Minister’s arguments, which were in support of the noble Lord, Lord Shipley, but were used to say that we cannot have the amendment.

[Lord Shipley (LD)]

My Lords, perhaps I could help the Minister at this point by simply suggesting that we add this to the agenda of our meeting, which gets longer and longer as we speak. It is a very important issue, to which we should add the issue of whether the calculation of political proportionality applies to the membership of the CCA—those who are there—or the bodies that each of those members represents, on behalf of which they have been nominated to attend the CCA. You might get a different answer depending on which it is. To avoid a lengthy evening and discussion at cross purposes, perhaps the Minister will agree that we can talk about it around the table; it might be easier.

[Earl Howe (Con)]

I am very grateful to the noble Lord, Lord Shipley, because the last thing I would wish to do is mislead this Committee or lead it down a path that led nowhere. Rather than go round in circles, as I suspect we might if I continued, I would be very happy to take up that suggestion and add it to the agenda of this rather lengthy round table we are planning.

Moving on to the amendment tabled by the noble Baroness, Lady Hayman, I completely agree with her on the need for the constituent members of a combined county authority to agree to the conferral of local government functions on a CCA. This is recognised in Clause 16, which provides that the consent of all the constituent councils is required if the Secretary of State is to make regulations conferring any such functions on a CCA. It is essential that all the constituent councils have agreed to the regulations that establish and confer powers on the new institution to support the collaborative working that is essential for a successful CCA.

I turn to some of the broader issues raised by the noble Baroness, Lady Bennett of Manor Castle, on Clause 25 standing part. I take on board her instinctive antipathy to the concept of having elected mayors, but let me outline the case in their defence. We have seen from our existing mayors how strong local leadership can enhance economic and other opportunities. Mayors act as champions for their areas, attracting investment and opportunity to their places. They provide that single point of accountability to local citizens. Our devolution framework in the levelling-up White Paper places a strong emphasis on the importance of high-profile, directly elected local leadership, strong local institutions, and joint working across sensible and coherent economic geographies. We believe that high-profile, directly elected leaders—such as a mayor—will be most effective in driving levelling up in an area. Such strong local leadership is essential for delivering better local outcomes and joined-up public services.

As such, level 3 of the devolution framework in the White Paper, which is the highest tier, requires an institution to have a directly elected mayor to access the fullest range of functions and funding. In the case of a combined authority, we have seen that directly elected mayors are the clearest and lightest-touch way to provide that single point of accountability that I have referred to, which enables greater risk taking in decision making. In the case of a local authority, a directly elected mayor increases the visibility of leadership and helps create a greater convening power to delivery place-based programmes. That visibility is not to be derided. The Evaluation of Devolved Institutions report in 2021 found that nearly three-quarters of respondents —72%—across all combined authority areas reported that they were aware of who the mayor of their local area was. London, with 97%, and Manchester, with 88% of respondents, reported the highest level of awareness of who their mayor was.

Many noble Lords will be aware of mayors around the country who are already playing an incredibly powerful role in driving economic growth, as well as improving public services and giving local areas a real voice on the national stage. West Midlands would be a good example, where Andy Street has led work to form Energy Capital with the aim of creating a competitive, secure modern energy system that provides low-cost, clean and efficient power, while Andy Burnham and the Greater Manchester Combined Authority have created Our Pass, a membership scheme to provide free bus travel across Greater Manchester for young people. It greatly improves their ability to take advantage of the city-region’s amenities.

Clause 25 enables regulations to be made for a combined county authority to be led by a mayor. It introduces Schedule 2, which sets out the detail of the electoral arrangements. As I have said, this opens the way for a combined county authority area to benefit from the strongest devolution offer available. As I also mentioned earlier, combined county authorities do not have to have a mayor; they can choose to be non-mayoral. We believe that that choice should be made by the local area, in line with our localism principles. Non-mayoral CCAs can access level 2 of the devolution framework, which in itself is valuable and powerful. This clause provides the mechanism for delivering our aim of having strong, visible and accountable leaders to take devolved powers and budgets, and drive the levelling up in their areas.

Amendment 113, tabled by the noble Baroness, Lady Bennett of Manor Castle, seeks to insert a requirement into Clause 26 for there to be a referendum before the Secretary of State may make regulations to provide that a combined county authority should have an elected mayor, and for this question to be approved by a majority of local government electors. I have probably said all I can on the pros and cons of referenda. I am, generally speaking, not a fan, and I have to say that I agree with the point made by the noble Baroness, Lady Hayman, about the cost of putting on a referendum.

Lest there be any doubt about local public involvement, however, I absolutely agree that it is important that the public are consulted on a proposal to introduce a combined county authority mayor in their area, hence the requirement for public consultation in Clauses 43 and 45. For the record, again, Clause 43(4) states that, prior to submitting a proposal for establishing a combined county authority to the Secretary of State, the local authorities proposing to establish it must undertake a public consultation on the proposal in the area that the CCA will cover. If those local authorities are proposing that there is an elected mayor for the CCA, that will be set out in the proposal.

Clause 45(3) includes similar provisions for a proposal from a combined county authority to make changes to existing arrangements relating to that CCA, including introducing an elected mayor for the CCA’s area if moving from a non-mayoral CCA. The authorities or the CCA must undertake a public consultation in those circumstances and submit a summary of consultation responses to the Secretary of State alongside their proposal.

When deciding whether to make the regulations to establish or change a combined county authority for an area, including introducing an elected mayor, one of the tests that the Secretary of State must consider is whether the area’s public consultation is sufficient. If they conclude that it is not, Clauses 44 and 46 provide that the Secretary of State must himself or herself undertake a public consultation before any regulations can be made. So we believe that the existing clauses provide for sufficient local consultation on the introduction of a mayor or a CCA. I know that that reply will not make the noble Baroness, Lady Bennett, any happier, but I believe we are closer to her position than perhaps she thought we might be.

Levelling-up and Regeneration Bill

Lord Shipley Excerpts

Committee stage
Monday 13th March 2023 Lords Chamber

[The Earl of Lytton (CB)]

My Lords, I support Amendment 81, spoken to so eloquently by the noble Baroness, Lady Scott of Needham Market. In doing so, I draw attention to my vice-presidency of the National Association of Local Councils, which I had the privilege of serving as president for many years, and my current joint presidency of the West Sussex Association of Local Councils.

It is regrettable that, notwithstanding the status of neighbourhood plans as a material consideration in local planning structures, principal authorities often seem to be obliged to disregard them, despite having considerable agency in the production of these plans. I refer to the calling of referenda or, as sometimes seems equally likely, delaying of the calling, which I can only assume has sound reasons. It creates great problems, given that there is substantial commitment of time and no small amount of public money to the neighbourhood planning process.

As we move into other areas that will involve multiple local authorities, such as biodiversity net gain and water neutrality, I can see that it is perfectly legitimate for these to be dealt with at what you might call a superior level. But it remains absolutely essential that communities still have a voice, a view and a role in that particular decision-making format. If the Secretary of State’s comments mean anything when he refers to strengthening the role of communities, as I understood him to say some while back, it must be something other than lip service—something other than parishes and town councils being somehow left behind. When I say that neighbourhood plans are being disregarded, I think of the neighbouring parish to the parish in which I live, where precisely this has happened.

It is very important to understand the structure of town and parish councils, as alluded to by the noble Baroness, Lady Scott, with their knowledgeable, highly engaged and often very effective interventions in local planning processes through their structure of county and district associations as well as the individual parishes. They should not be underrated. They have access to resources you would not believe. I have come across parishes in which top planning consultants happen to be residents. These people are highly engaged, highly knowledgeable and should be listened to. Parishes have moved along massively in the past 20 or 30 years. They really are the only structure that represents the community at this level. When you think about it, there is no other authority that extends down to that level of where people really live and do things in their work/life balance. If people feel disregarded, as do many residents in my part of West Sussex, it bodes ill for engagement, cohesion and, ultimately, the efficacy of national policies. I would not want that to go unstated in the context of the Bill.

[Lord Shipley (LD)]

I rise to speak to Amendments 155 and 156 in my name. These are probing amendments because I think it is very important that the Government explain their intentions. Amendment 155 provides that non-constituent members of the combined authority are not able to vote, given their status, and Amendment 156 provides that associate members of a combined authority are not able to vote, given their status. On a previous day in Committee we addressed this issue, in part. However, the Government need to undertake some mature reflection about what is proposed here.

Giving a vote to somebody who is not a full member of a combined authority is unwise. My amendments provide that there should be no vote for anybody who is not a full member of the authority. The principle is that full members are voting members, and voting members are full members, but you cannot have full voting members when they are not full constituent members, as opposed to associate members, of the authority.

The voting structure between counties and districts as explained in the Bill would provide a route for resolving any impasse that might arise if votes were allocated on the basis of population. Of course, a county would have exactly 50% of the votes. If all the district councils voted against the county—one hopes it does not come to that—there would have to be some kind of system for a casting vote. The mayor would seem to be the way forward.

After reflecting on what we have been saying on previous days in Committee, to me it seems that district councils, which are responsible for planning and economic development matters, ought to be full members of a CCA. That seems to me to be the principle. It should not be at the discretion of the CCA, which does not have a district council member, to simply award a vote to that district council member when other district council members may not have a vote because, as the noble Earl, Lord Howe, said on the previous day in Committee, when giving a vote to one non-constituent member or to an associate member, it does not follow that other associate or non-constituent members would have a vote.

So this is a probing amendment. It is complicated; I understand that. When in due course we reach Report, I just hope that the Government will be prepared to examine the structure they have proposed here. I have come to the conclusion that they should permit district councils within a CCA area to become full members. At that point, those full members would have a right to a full vote under their own terms of membership. I hope very much that the Minister will be able to respond to that, so that we can get a better feel of what we need to do on Report to bring in further clarification on this matter.

[Baroness Hayman of Ullock (Lab)]

My Lords, we have a couple of amendments in this group, one in my name and one in the name of my noble friend Lady Taylor of Stevenage. First, Amendment 73 in my noble friend’s name would mean that a non-constituent member ceases to be a member when they form part of a different CCA.

We are aware that the Local Government Association has expressed concerns about this amendment. It has said that local areas should be able to “look both ways”—in other words, be a non-constituent member of more than one authority—if they have close economic or cultural ties with more than one combined authority or devolution deal area. It has also expressed concerns about the fact that it would set a precedent, contrary to the current plans for the city of York, which is currently a non-constituent member of the West Yorkshire Combined Authority but would become a member of the new York and North Yorkshire mayoral combined authority.

I want to explain the thinking behind why we tabled this amendment, which is, of course, a probing amendment. It is of course understandable that local authority non-constituent members may wish to be part of more than one CCA. However, we believe, first, that district councils should be constituent, not non-constituent, members of a CCA, to ensure that they can play a full part in decision-making for their area—as other noble Lords have just said—and that this would include any budgetary and spatial development issues, and, secondly, that therefore they could then be a non-constituent member only in a CCA that was not their primary CCA.

We believe it must surely be the case that membership of a CCA is implicitly determined by the geography of an area. If it is the intention of the Secretary of State to have a pattern of overlapping CCAs across the country, will this not complicate the structure of local government rather than simplify and declutter the picture, which the Government have said they want to achieve?

Further to this, if we then have overlapping areas that are both combined mayoral authorities, to which mayor do the people of an area represented on more than one CCA relate? Can the Minister in his response clarify whether the population of that area get a vote in both mayoral elections, which of the mayors is responsible for delivering the economic development and/or regeneration of their area, and who is accountable?

This clause is predicated on the assumption that district council members are simply co-opted, junior partners in CCAs with no voting rights and only a passing interest in sitting in on meetings that they are not actively participating in. As has been said in debates on earlier amendments, we feel that this is, frankly, an insult to district councils.

As I said, my noble friend’s amendment is intended to probe why the Government appear to have set their face so firmly against the inclusion of district councils. Instead, we believe they should be at the heart of decision-making in CCAs since, as the noble Lord, Lord Shipley, said, they have powers over planning and economic development, not to mention that they are the councils with the highest percentage of public support. We strongly believe that they should be able to be full members.

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[Earl Howe (Con)]

It may be helpful if I cover the issue of district councils in a moment when I come to Amendments 155 and 156. I will do my best when I do so.

Amendment 127A, tabled by the noble Baroness, Lady Hayman of Ullock, addresses the requirements in relation to public consultations on proposals to change a combined county authority. We are in complete agreement that public consultation on a proposal to change a combined county authority is important. However, the amendment questions an important part of the safeguard that Clause 46 has in place to ensure that such a consultation is sufficient.

I will explain. As the provision is currently written, the Secretary of State must carry out a public consultation on changing a combined county authority unless three factors are met: first, that a proposal has been prepared under Clause 45; secondly, that a public consultation on the proposal has been carried out and a summary of it submitted to the Secretary of State; and, thirdly, that the Secretary of State considers that no further consultation is necessary—namely, that the consultation which has been carried out is sufficient. The amendment, as I take it, probes the process involved in the third factor. I tried my best to cover that in the letter I sent to all noble Lords who spoke in our previous Committee session.

In essence, the issue here is that the Secretary of State, in deciding whether a prior consultation has been sufficient or insufficient, has to look at several things: what the consultation consisted of; whether it followed the Cabinet Office guidance for public consultations sufficiently well; and, in that regard, whether it covered the necessary groups of people that it should cover, which is one of the principles set out in the Cabinet Office rules. So the public consultation would involve not only residents but key stakeholders, such as district councils, local businesses, public sector bodies, and voluntary and community sector organisations. A summary of those responses has to be presented to the Secretary of State when the proposal is submitted, together with any amendments that the proposing councils wish to make to the proposal in the light of the consultation. So the consideration the Secretary of State has to undertake is a combination of making sure that the principles laid down for consultations have been followed and looking at the evidence that has been presented. I hope that is of help to the noble Baroness.

I turn now to Amendments 155 and 156, tabled by the noble Lord, Lord Shipley, which have similar effects, as he explained. Amendment 155 would remove the ability of a combined authority to resolve to allow non-constituent members voting rights on certain matters. Amendment 156 would apply the same restriction to a combined authority’s associate members. Both non-constituent and associate members are non-voting members by default, but we have enabled the combined authority to give them voting rights on most matters, should they wish to do so. For example, a combined authority may have provided for there to be a non-constituent member of a neighbouring council to enable their input on matters which may have cross-boundary effects.

I listened with care, as I always do, to the noble Lord, Lord Shipley, who expressed some severe reservations about this idea. However, it is entirely possible that a combined authority may have provided for an associate member—for example, a local business leader—to enable their input on matters which may have an impact on businesses in the combined authority’s area.

The combined authority may wish to maximise this input by allowing both non-constituent and associate members to vote on such relevant matters. The process for doing this would be set out in the combined authority’s local constitution, with the decision being made by the authority. As I have alluded to, there is a good example of this. The noble Lord, Lord Shipley, expressed the view that district councils should be allowed a seat at the table and a vote. The Government have allowed for this to happen, albeit not in the way that the noble Lord has suggested, but as a non-constituent member.

We will be coming to a later group, consisting partly of Amendment 125A in the name of the noble Lord, Lord Hunt of Kings Heath, when we can perhaps discuss the issue of district councils in a little more depth. But it is also one of the topics that I suggest to noble Lords we cover in the round-table discussion which I proposed in our last Committee session, and which is now in the course of being arranged.

I should add that, very importantly, the decision by a combined authority to give any non-constituent members and/or associate members voting rights could be scrutinised by the authority’s overview and scrutiny committee to ensure due process is being followed. I suggest to the noble Lord that what we are proposing will not be without checks and balances.

[Lord Shipley (LD)]

The Minister has given one example of a constituent council—a council outside the area of the CCA becoming a constituent council because there are cross-boundary issues. But that is the only one I have heard him come up with, and I had assumed there would many other examples of why this structure is being created.

I also have concerns about the associate member category. The Minister said, and I hope I understood him correctly, that a business leader in the area might be co-opted as an associate member, who would then be given a vote. Do the Government think that wise, in terms of public perception? I suspect that the public might have some doubts. I do not understand why giving them the vote is so important. I can understand a business leader advising as an associate, or simply being in attendance, which is a common category in meetings, but not actually having a vote.

I will not extend this debate, but I hope that when we have the round-table discussion we can get to the bottom of the reasons for votes being given to those who are not full members of the combined authority.

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Moved by

[Lord Shipley]

77: Schedule 1, page 253, line 18, at end insert—
“(d) to make its reports public whenever the overview and scrutiny committee believes publication to be in the public interest.”Member’s explanatory statement
This would ensure that the CCA cannot refuse to publish a report of an overview and scrutiny committee.

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[Lord Shipley (LD)]

My Lords, I shall speak also to Amendments 79, 82, 83, and 84. All these amendments relate to audit and scrutiny, and issues that I think are extremely important if the public are to have confidence in the combined county structure, but those principles, of course, apply to any structure in local government and to any combined authority structure.

Amendment 77 would ensure that the combined county authority cannot refuse to publish a report of an overview and scrutiny committee. This is a probing amendment, for the Minister to explain that indeed it is possible, as I propose in Amendment 77, that an overview and scrutiny committee can

“make its reports public whenever the overview and scrutiny committee believes publication to be in the public interest”.

I simply seek the Minister’s confirmation that is actually what is intended, because I do not think it is actually in the Bill—maybe the words are there and I have simply missed them.

Amendment 79 in my name would prevent a CCA restricting the work of an overview and scrutiny committee without good reason. I think this is really important because an overview and scrutiny committee must have independence to operate without undue influence by the parent committee. Therefore, my amendment simply says that a CCA cannot unreasonably withhold permission for some work of the overview and scrutiny committee taking place.

Amendment 82 relates to whether recent members of a political party can qualify as “an appropriate person”. Amendment 83 is on the same subject or principle. It seems to me that the Bill actually permits someone to be appointed as “an appropriate person” the day after they have resigned from a political party. I have proposed five years: if you are really going to be “an appropriate person”, surely you can be appropriate only if you are not recently associated with an individual political party—five years is a probing proposal; some other period might be relevant. I feel very strongly that you cannot have people appointed as an appropriate person who have very recently been a member, perhaps a prominent member, of any political party. I hope the Minister will be able to put my concerns at rest.

Amendment 84 would enhance public confidence in the audit process by increasing the number of independent people on the audit committees. At the moment, the Government have put one person in the Bill. I think one person is inadequate. What if there were one person and that person’s only contribution to a meeting was to apologise for their absence? I have proposed three people: then if somebody is not present at a meeting, at least somebody is more likely to be present. The general public are now increasingly aware of some of the problems around the audit process in local government: I think that six local councils are now in special measures under the Treasury.

One of the reasons the public have concern is that they are being asked, in some places, to pay much higher levels of council tax to make up for losses that the council has created. The audit function—as opposed to just the overview and scrutiny function—really does matter. To have only one person appointed as an independent person seems to me to be insufficient. Given the concerns that can arise so very quickly about investments and the administration of current expenditure that may go wrong, audit committees play a very important role in giving the public confidence that the taxes they pay are being properly spent. I hope very much the Minister can indicate that the Government understand why just a single independent member of an audit committee is not sufficient. I hope she will confirm that there will be at least two independent people—though I would prefer three, it could be that there should be four or five—for that is the basis of audit. It is and should be run on the basis of independence. I beg to move.

[Lord Carrington (CB)]

My Lords, I declare my interest in farming as set out in the register.

I rise to speak on Amendment 80, and I will continue with my theme I brought up on Amendment 33 in Clause 2 about rural proofing. The levelling-up Bill is an opportunity to correct the systemic failings in the Government’s rural policy development. Defra is often seen as being responsible for rural policy but does not actually have the remit to change economic and social policies in the countryside other than on the environment, farming, fishing and forestry. The cross-departmental objectives set out in this Bill should now enable serious rural policy-making to level up that part of our community in both social and economic terms.

The purpose of this amendment is to ensure that the combined county authorities are structured in a manner that enables them to review or scrutinise decisions which have rural implications, with relevant and experienced knowledge at their disposal. A lack of awareness and understanding of the special challenges facing rural communities is very much exemplified in the development and implementation of the rural England prosperity fund. Local authorities’ strategies for using this fund to exploit the potential of the rural economy are not clear, and their engagement with rural businesses has been scant. By ensuring that the overview and scrutiny committees of combined county authorities have the power to appoint rural sub-committees, a better understanding of the needs of rural challenges—from housing to education to transport to connectivity—will be embedded at the grass roots. This would lead to better local authority engagement with rural households and businesses, enhancing their understanding of the workings of the rural economy and rural livelihoods. Please can the Minister give her support to this amendment in the interests of confirming that and enabling rural issues to be properly considered in wider policy-making.

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[Lord Shipley (LD)]

I thank the Minister for her reply. I think the issues raised across the Committee on this group have been understood by the Government, including the concern that audit and scrutiny are seen by the general public to have been properly and appropriately carried out; that is a joint objective that we have. I would now, simply, like to read Hansard tomorrow and see exactly what has been said by everybody. We may have something further that we want to address on Report but, for the moment, I beg leave to withdraw my amendment.

Amendment 77 withdrawn.

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[Baroness Taylor of Stevenage (Lab)]

My Lords, with the current local authority funding gap running at over £7 billion a year and much of the supposed increase trumpeted by the Government having to come from the pockets of already hard-pressed council tax payers, it is somewhat disappointing, as I have said before in this Chamber, that the Bill seems largely to overlook the underlying issues of the underfunding of local government generally and the fact that funding is not distributed fairly according to need.

That is key to the Bill, because those financial issues represent a barrier to the Government achieving their ambitions of levelling up. Indeed, the current rounds of bidding to get funding for levelling up only further add to the problem, because the authorities with the resources to put together the shiny bids that appear to be favoured are not always the ones with the most need. In that respect the Government are, at worst, turning the whole concept of levelling up upside down, and, at best, are applying sticking plasters to the gaping wounds of underfunding in our communities.

As a local government leader for 17 years, I can say from first-hand experience that the drastic savings that have been imposed on local authorities since 2010 mean that what has been achieved is all the more impressive. All major projects coming before any council are subject to detailed analysis of how the outcomes will be measured and monitored. That includes environmental, legal and equalities impacts and, especially, financial costs. At a time when even our Conservative County Council are announcing that it has exhausted all options in meeting its budget deficit, I hope the Minister will reflect on how we can better enable local councils to level up our areas. We are proposing a number of amendments in an attempt to address this deficit, and the amendments in this group would be the start of that process.

On Amendment 87, with a local government regime that is already incredibly regressive—from the benefit from council tax being skewed to those areas that are already better off to the many recently introduced funding pots which, as I said, enable those authorities with the resources to prepare the best bids regardless of the needs of the area—it is vital that there is a process to ensure the accountability and integrity of funding directed to CCAs. The publication of an annual statement would enable clear scrutiny to take place, both between and within CCA areas. It would also have the effect of making the funding of CCAs far more transparent for public purposes, as it would enable the CCA and the Government to demonstrate what funding had been allocated.

The second part of the amendment would take that transparency one step further, in that it asks for the annual statement to have a cost-benefit analysis to demonstrate whether the funding allocated to the CCA is achieving the stated aims. Again, that would provide a good opportunity for internal scrutiny via the overview and scrutiny committee, which we discussed earlier this afternoon, and for the public to be assured that the funding provided to the CCA was achieving the aims of levelling up and the strategic objectives that the CCA had set for itself.

The national benefit of these statements would be that, once consolidated, they would provide a national picture of funding, the way that funding was allocated and why, and the benefits that were being delivered through that funding. I would like to think that the discipline of reporting on an annual basis would also ensure that, where bidding pots still got allocated—much as I might prefer funding to be done in a different way—there would be clear criteria for and assessment of those bids, with measurable outcomes, so that these could be reported in the annual statement.

On Amendment 123, in the name of my noble friend Lady Hayman of Ullock, while the clause in the Bill sets out that the Secretary of State may make regulations in relation to requiring the mayor to maintain a fund in relation to receipts arising from, and liabilities incurred in, the exercise of general functions, and about the preparation of an annual budget, it is not clear whether that power for the Secretary of State extends to subsequently scrutinising that budget and fund in Parliament. Our contention is that local government, including any CCAs set up under this Bill, is already subject to extensive scrutiny through the overview and scrutiny committees internally, and externally through the audit process. So we would be grateful for clarification from the Minister on whether there is to be a further layer of scrutiny set up in relation to CCA budgets.

Amendment 172, submitted in my name and in the name of the noble Lord, Lord Shipley, talks about this fair funding review—and I feel fairly strongly about this. The fair funding review has been under discussion for at least five years to my knowledge, and probably longer than that. It was delayed again in October 2022. The methodology we currently have for allocations is both flawed and completely out of date. For example, it takes traffic flows from 2011, unemployment data which is 10 years old, highways data which is 20 years old, and census data—and, as we all know, the census is undertaken only every 10 years and so is nearly always too out of date for allocating funding via that formula. Additionally, we all know about the failure to reset property values, which means that we are using property values from 1991.

Average council tax as a share of disposable income in London is the lowest in the UK. That does not mean that there are not areas of deprivation in London, of course—some of the most deprived areas in the country are there—but it is just over half of that in Yorkshire and the Humber, and in the north-east. So, in a dynamic economy and at a time of a cost of living crisis, this outdated and flawed approach, which penalises and exacerbates economic equalities, will not do—it is the exact opposite of levelling up. Our amendment is there to suggest that we need to get on with this fair funding review and get it enacted quickly, because we have got no chance of levelling anything up unless we get this fair funding review completed.

There have been comments from the LGA, which supports the fact that the fair funding review needs to be done. It makes a very good point that there needs to be enough time to allow formal consultation with local authorities, but I cannot believe that, after five years of working on this, that could not be done fairly quickly. When the review does happen, it needs to consider both the data and formulae used to distribute funding, and the Government need to ensure that overall local government funding is sufficient when the new-needs formulae are introduced. That will ensure that no council sees its funding reduced and that there are transitional arrangements for any business rates reset. I beg to move.

[Lord Shipley (LD)]

My Lords, I think that these are three very important amendments, and my name appears on Amendment 172. It goes without saying that the fair funding review has been undertaken for too long and that it is reasonable that within one year of this Bill being enacted the publication of the fair funding review should happen. I also think that the other amendments are very important, but Amendment 87 really matters because it says that

“a CCA may request that the Secretary of State publishes an assessment of their funding, including in relation to any new functions”.

In other words, is the right amount of money being given to undertake the tasks which the CCA is due to undertake?

All of this relates to the amendment in the names of my noble friend Lord Scriven and myself that relates to fiscal policy. There is an issue that we need to debate about fiscal policy and the powers of CCAs—we have the concept now of “trailblazer authorities” and I think the trend is a good one. Nevertheless, I want to be reassured that Ministers understand that local authorities cannot be expected to undertake things, and nor can CCAs, unless the local authorities or CCAs are able to fund them. For that reason, all three amendments in this group seem to me to be particularly important.

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I saw how it works recently. I was the non-executive director of Chesterfield NHS Hospitals Trust. Even at budget level, the way that the levers are pulled from the regional level to determine what hospitals do is quite startling. Therefore, unless the Government look at what has happened in Manchester, which I think was called “devo max”, where at least some of the levers—not all, but some—come down to a local level, so everybody looks out at NHS level and at local government level to be able to deal with local needs, rather than somebody sitting in Whitehall making a decision for the whole country and everybody in the NHS having to march in the same direction, we will not get a significant change in improving health and reducing health inequalities at a local level that is systematic and can work. That is why I think these two amendments are important, and the Government will ignore them at their peril.

[Lord Shipley (LD)]

My Lords, very briefly, because time presses, my name is attached to the stand part debates on Clauses 58 and 59. I do not seek to repeat what has been said already about those two clauses, but I hope the Minister will give clear evidence for the need for both clauses, because I am unconvinced that they are necessary. I will make a further point in relation to what the noble Lord, Lord Bach, said a moment ago: that the whole principle behind police and crime commissioners was that they were directly elected. If the ballot box is the main means for a police and crime commissioner to be appointed to their job, I do not think that that system can be meddled with in the way that the Government appear to want to meddle with it.

Indeed, to develop what the noble Lord, Lord Bach, said, of course a mayor with PCC powers can appoint a deputy mayor to have the PCC powers on behalf of the mayor. Actually, when we read the Bill very carefully—indeed, we debated this in earlier stages of consideration of the Bill—the deputy can also pass powers on to “any other person”. There are some restrictions in the Bill as to what that might mean, but the fact is that the words “any other person” simply take away the power of the electorate to make a decision as to who is the police and crime commissioner. For that reason, I support the propositions on Clauses 58 and 59 not standing part.

[Baroness Pinnock (LD)]

My Lords, this is another really important group of amendments to do with the extent of devolution: what are the limits that the Government are putting on that? The only areas we have explored, very important though they are, are the National Health Service, policing, transport services—buses, in particular—and general functions. I have great sympathy with all the amendments in this group, particularly those introduced by the noble Lord, Lord Hunt of Kings Heath, asking where the National Health Service fits in with the notion of devolution to local areas.

As the noble Lord explored, currently the NHS does not fit in. A move was made in the Greater Manchester Combined Authority for the mayor to take the provision of health and care services—which we have not referred to so far—under his powers. That was accepted but has not made much progress. One of the biggest challenges, as has been said time and again in this Chamber in debates relating to other Bills, is the absolute importance of connecting the National Health Service and the social care system. Enabling devolution of NHS services to a mayoral combined authority would enable social care and NHS services to be properly linked. The result of no progress being made in this area is before our eyes; we have too many older people staying in hospital for too long, which harms their health, and they are not discharged into the social care service because the two are not linked. The Government have failed to do this time and again. Well, okay, devolve it—pass it on to local mayoral authorities so that we can see what progress they can make. I repeat every sympathy, and support what has been said. I do hope it will be pursued at later stages of consideration of this Bill because it is so important for the health and well-being of the people we serve.

I will also wholeheartedly support the Clauses 58 and 59 stand part notices, for the reasons that have been said. I will give the example of West Yorkshire, where it was determined that the police and crime commissioner role would be combined with that of our elected mayor. Now we no longer have an elected police and crime commissioner because that role is unelected; they are appointed by the West Yorkshire mayor. That was her right; I am not saying she has done anything wrong. But who is now called to account for failings in policing in West Yorkshire? There have been a number of examples across the country where police and crime commissioners have, for various reasons, been found wanting and have been held accountable for their actions. How does that work in a combined mayoral authority where the mayor appoints the police and crime commissioner? Does the mayor have to be held accountable for the decisions and actions of their appointed deputy? That is the only way that accountability can take place. The attempt by the Government to undermine an elected process is undemocratic. How do the Government think that local people will feel about the very important role of holding policing in the West Midlands to account when an elected police and crime commissioner there is somehow unelected? Those two big issues are very important. It is about whether we are talking about devolution to local areas or still talking about centralised systems where there is delegation to combined authorities—which leads nicely to buses.

I cannot add to my noble friend Lady Randerson’s description of what has happened to the bus services and how important they are to any hope of levelling up for many parts of the country. As she said, if you cannot get a bus in order to access employment then, for many people, it is financially impossible to do other than stay at home. Mayoral authorities need to be given the powers to control bus services, as bus services should be encompassed in mayoral authorities. In giving another local example, I should point out that it was done before the mayoral authority was set up. Nevertheless, it comes from the centre of West Yorkshire where, in my own area, we have a number of small villages where the bus services were poor and people could not get about. Fortunately, there was not only one bus a week—like the noble Baroness, Lady Hayman of Ullock, has, I think—but services were poor throughout the day. We managed to get a subsidy for what I call a small hopper bus—a 15-seater—to go around the various parts of the Spen Valley area and pick up older people, take them into town to do their shopping, collect them and go back again. After a bit, because it was so popular, it has become a self-financing bus service. With local initiatives comes success because local areas know what would probably work for their patches. That is why enabling mayoral combined authorities to have control over bus services is so vital.

Any notion of levelling up will not work without the aspect of transport. There has been too much focus on rail services, which are very important but do not feature in a lot of people’s options for transport. I repeat that my noble friend Lady Randerson made a powerful case for ensuring that mayoral combined authorities can run bus services. Without that, many people—especially in rural areas, but not only in rural areas—will find that they cannot access the services and jobs they need to if levelling up is to be anything other than a slogan.

Levelling-up and Regeneration Bill

Lord Shipley Excerpts

Committee stage
Monday 13th March 2023 Lords Chamber

[Baroness Taylor of Stevenage (Lab)]

My Lords, I shall speak also to my Amendments 115, 118 and 119 and Amendments 116, 117 and 125 in the name of my noble friend Lady Hayman of Ullock.

In general terms, these amendments have been tabled to probe some of the issues around what appears to be a democratic deficit in both the existing elected mayoral system and the new provisions proposed in the Bill. They also consider how the Secretary of State will deal with the financial consequences of the powers given to him or her in the Bill to transfer functions to the mayor, as well as some further issues around the communication of issues relating to the mayoral system to members of the public in the area that he or she represents.

I know that communication has been covered extensively in our previous debates in Committee—we have heard extensive responses from the Minister and the noble Earl, Lord Howe, on that subject—so I will be brief. However, if the new CCAs that choose to go down the route of an elected mayor are to be successful, it will be vital that all matters relating to the mayoralty are set out clearly and communicated effectively to the public in the area concerned.

Amendment 103 is intended to probe the possibility of mayoral by-elections. We need clarity in relation to what would happen in the event that a CCA mayor resigned or left office for any reason. Does there need to be specific provision in the Bill to enable a mayoral by-election should this happen? As the current proposal seems to be that the deputy mayor is simply appointed by the mayor, it does not seem appropriate for an unelected deputy mayor to step in and take over until the next cycle of mayoral elections is due. Can the Minister clarify whether it is the Government’s intention that a mayoral by-election should possible if the mayor is unable or unwilling to carry on in their role in a period that is not close to the date in the normal cycle of mayoral elections?

Amendment 115 would insert:

“The Secretary of State may by regulations make provision as to the scrutiny of deputy mayor appointments.”


This amendment has been supported by the Local Government Association, which thinks it gives greater power to combined authority members to hold the mayor, and the mayor’s choice of deputy mayor, to account. We heard a great deal earlier this afternoon about the flaws in the process for appointing deputy mayors. The current system of appointment by the mayor to the role of deputy mayor seems to leave a gaping hole in any democratic process in this respect. Deputy mayors have powerful roles within the executive and administration of the CCA. As we have heard, they could potentially take the role of the current police and crime commissioner. They also receive remuneration from the CCA, which can be at a significant cost to the taxpayer. But this can be done without any provision in the Bill for scrutiny either by the overview and scrutiny committee or by an equivalent body, let alone any external scrutiny, which seems to set those roles apart from both the democratic process, in that they are not elected by the public, and the provisions that would be made in a local authority, for example, for the appointment of a senior member of staff. Would the Minister give consideration to any further provisions and safeguards that could be built into the Bill to ensure that CCA members and the public can hold the mayor to account for the appointment of deputy mayors?

Amendment 116, tabled by my noble friend Lady Hayman of Ullock, would mean the Secretary of State must publish a statement confirming what additional funds will be made available to a mayor when making regulations under Clause 28, so we are back to funding again. This amendment is supported by the LGA. The clause gives the Secretary of State significant powers to transfer responsibilities for certain functions and activities to the mayor and the CCA. In some circumstances, we accept, this may be subject to the normal process of new burdens funding, although that process in itself has its own challenges. We would be more concerned that devolution may be used as an excuse to reduce funding for services, particularly core services. We absolutely support the transfer of powers from central government to local leaders, but of course these powers must be accompanied by appropriate funding levels. Our amendment would ensure that the Secretary of State would confirm what funding was being allocated along with any new powers that are conferred. The LGA agrees with that opinion, saying that

“powers must be accompanied by appropriate funding levels, and devolution should not be used as an excuse to reducing funding”.

So, on that amendment, we have the support of the LGA.

Amendment 117, again in the name of my noble friend Lady Hayman of Ullock, is on an annual summit of CCA mayors. This is similar to earlier amendments we laid down around the sharing of good practice. It is a probing amendment designed to explore how CCA mayors will share information on the implementation of the new types of combined authorities and best practice. It would give them a forum to enable them to discuss any issues arising from the operation of the CCAs, and liaison and co-operation between them and the Government, and to understand how different models of CCA are working—for example, those that have taken the powers of police and crime commissioners. We appreciate that there may be a role for the LGA. We discussed that earlier this afternoon; we can discuss it further in later stages of the Bill. Other bodies may have an interest in this area in relation to CCAs, but it is certainly not clear from the Bill how joint working, sharing of good practice and achieving an agreed stance where issues arise on policy matters around the structure of CCAs and so on would happen.

Amendment 118 is a probing amendment which would prevent the Secretary of State from conferring only partial police and crime commissioner functions on the mayor. This relates very much to the discussion that we had earlier under other amendments. I hope that it is not related to the issue raised by my noble friend Lord Hunt earlier, where a mayor does not agree with decisions made by a PCC of a different political persuasion—or even the same one, if you are in one of those types of political arrangements and they have had a fallout. It seems strange to have provision in the Bill which could lead to the possibility of a patchwork of different policing responsibilities being conferred on CCA mayors. This begs a further question about the role of police and crime commissioners in those circumstances.

This probing amendment seeks to understand the Government’s view on whether they would prefer the default position to be to transfer all the functions of police and crime commissioners to mayors in most circumstances, except where the CCA particularly expresses a wish not to transfer any of those powers, or whether it is to be left to CCAs at local level to determine which functions will be transferred to the mayor. Can the Minister please clarify this point? Policing is just too important in our communities to see it haggled over between different bits of local authorities. I hope we can have a clear line on this.

Amendment 119 is a probing amendment to allow the person appointed deputy mayor to be appointed as the deputy mayor for policing and crime. Again, we had a very long discussion about this earlier today, but it is certainly not clear in the Bill whether it is the intention that a deputy mayor should never take the function of a deputy mayor for policing and crime. We have raised other amendments, and under those is our concern about the democratic deficit in the appointment of deputy mayors. However, if and only if the issues around accountability for those appointments can be resolved, it would seem perverse for the mayor not to be able to delegate this part of their responsibility. Indeed, in practice, it almost certainly would happen. Can the Minister comment on how this aspect of the Bill might be clarified to make that issue clearer?

Lastly, Amendment 125, in the name of my noble friend Lady Hayman of Ullock, would mean that a change in the mayoral title must be communicated to residents. We agree with Amendment 124 by the noble Lord, Lord Shipley: a list of possible alternative titles for mayors is really unnecessary, as the CCA already has powers to choose alternative titles if it wishes. My noble friend’s amendment is intended to make sure that, if there is a change to the title, that is communicated to the public—to residents—and that that should be written into the process for any mayoral change of title. I beg to move.

[Lord Shipley (LD)]

My Lords, my name is attached to Amendment 124 in this group, which relates to Clause 40, “Alternative mayoral titles”. I challenge the notion that a choice of titles is required on the face of the Bill. Powers to decide a title already lie with the CCA, under Clause 40, in line 25 of page 35, and to attempt to define possible titles is an unnecessary addition.

The titles suggested are,

“county commissioner … county governor … elected leader … governor.”

I am not clear where those four titles came from. I guess we could all add some more, but it is confusing since everybody else is using the word “mayor”. I do not understand why another title is necessary. If I look at the word “governor”, I immediately think of a school governor, the governor of a US state or the governor of a prison. I am not sure it helps public understanding of what is proposed with a combined county authority to have a mixture of titles for roles. The public will have great difficulty engaging with them, because the titles could be different in one place from another. The power is there for people on the CCA to decide what title they want but, frankly, if I had my way it would be “mayor” because that has become the term. For the West Midlands, Greater Manchester, Merseyside, Tees Valley and so on, the word is “mayor” and I am not sure it helps to have suggestions that they could be called “governors” or “county commissioners.” I hope the Minister may be able to look at that and come up with an explanation about why the Government want to confuse things so much.

[Baroness Pinnock (LD)]

I thank my noble friend Lord Shipley and the noble Baroness, Lady Taylor of Stevenage, for raising issues in detail regarding mayoral names—or not—and some aspects of elections and powers, because that points to the fact that although we have a very long Bill with a huge number of clauses, a lot of the detail is insufficient for us to understand completely what the Government seek to do and how they hope these new CCAs and mayors—or not mayors—will operate.

An important issue is in Amendment 103, about what happens if the current mayor stands down for whatever reason. That would be worth knowing for all of us who live in combined authorities.

The second important thing is about the scrutiny of deputy mayor appointments. One would hope that a panel of members who are not of the same party as the mayor would interview and scrutinise the appointment of the person, who will have significant powers conferred on them simply because they are a mate of the mayor; that never seems appropriate. There are a number of other probing amendments in this group, including that of my noble friend about “governors”. It will be interesting to hear what the Minister has to say, but it points to the fact that the Bill has not been as well thought through as it might have been.

--- Later in debate ---

[Baroness Scott of Bybrook (Con)]

All the powers will go. There will not be half a PCC left. Does that make sense?

Amendment 119, tabled by the noble Baroness, Lady Taylor of Stevenage, seeks to allow the person appointed as statutory deputy mayor of the combined county authority to also be appointed as the deputy mayor for policing and crime. Schedule 3 prevents this because the deputy mayor and deputy mayor for policing and crime are two distinct, separate, and weighty roles. The role of the statutory deputy mayor is to step in and act as mayor should the mayor be unable to act or if the office of mayor is vacant for a time, as well as assisting across a whole range of general mayoral functions where applicable.

The deputy mayor of a combined authority is typically also a council leader, and we anticipate this will likely also be the case in combined county authorities. This would mean that this person is already accountable for the decisions and activities of the council they lead, in addition to their combined county authority responsibilities, where they will be accountable collectively, and possibly personally, for some of the CCA decisions, including personally for the mayor’s functions if the mayor cannot act. The role of the deputy mayor for policing and crime is to dedicate constant focus and attention to crime and policing and is usually a full-time role. Clearly, both the roles of deputy mayor and deputy mayor for policing and crime are significant and we believe that they should remain separate and distinct.

Amendment 124, tabled by the noble Lord, Lord Shipley, seeks to allow CCA mayors to be called by their choice of alternative title. Clauses 40 and 41 already enable mayoral combined county authorities to resolve or choose to use an alternative title to “mayor” for their directly elected mayor. They can choose from a shortlist of titles listed in the Bill, or a different title not on the list, having regard to other titles used in the area. I understand where the noble Lord is coming from regarding the fact that the title “mayor” is beginning to take on some level of credence within the country, but if you come from a particularly rural county area—I counted last night that where I was leader of a council, we already had 16 mayors—an elected mayor would be confusing for some people. The role of a mayor in some rural areas is seen as a civic role, rather than a leadership role, which is very different.

[Lord Shipley (LD)]

I say to the Minister that the problem applies in urban areas too; it is not specifically a rural issue. If you look at Merseyside and Liverpool, you will see a mayor, a ceremonial mayor and a combined authority mayor—you have three already. The public work with that, but what I am challenging is whether people being able to choose their own title for their area will not be more confusing, because if you use the word “governor” or a variation on that theme, the question then arises: “What are those powers?”. People at least have some idea what a combined authority mayor is actually about.

[Baroness Scott of Bybrook (Con)]

These decisions, as with many, have to be taken locally because local people will understand better than anybody what is right for their area. I have given the Committee my personal views from when we were considering mayors—I just thought it would be confusing.

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Lord Shipley Excerpts

Committee stage
Wednesday 15th March 2023 Lords Chamber

[Lord Jackson of Peterborough (Con)]

My Lords, I wish to speak briefly to this very good and interesting probing amendment from the noble Lord, Lord Scriven, and it is a pleasure to follow my noble friend Lord Young, who I know has great expertise in local government. We represented different parts of the London Borough of Ealing in different capacities over many years.

The noble Lord, Lord Scriven, has not compared apples with apples but apples with pears. We are a unitary state—we are not a federal state like Australia, Canada, Germany, Italy or France, where they have regional government and a culture of accretion of power to the local level. Therefore, we have to have some central sanction and control of the disbursal of funds. So I do not think that the noble Lord is necessarily comparing the situation that we are in wholly accurately.

However, the noble Lord makes a very astute point about the hoarding of power, particularly financial power, by the Treasury. Any Minister will tell you that, over the years, the Treasury has not wanted to give power away and has wanted to bring in power. The noble Lord is absolutely right that far too much of the funding of core local services is in effect subject to the begging-bowl approach, as enunciated by Andy Street, the executive mayor of the West Midlands.

The problem with the situation that we now have—the disparity of local councils being responsible to their electorate for decisions, in effect, taken centrally—is that central government of whatever party is in power gets the income in and can make those judgments based on its manifesto, but it is local councillors and officers who are accountable and often take the brickbats for failures. For instance, many people have argued for many years about residential real estate investment trusts leveraging private sector money to provide new, good-quality housing for young people in particular. The Treasury has never really advanced that properly, and local government could be very much involved in it. Social care is another area. All Governments should look at tax breaks for providing extra care facilities—in terms of nutrition, housing, exercise and so on—for old people from the age of 60 all the way through to death, as many countries have across the world. That is an example of a central government policy that could also help local government.

I have great sympathy for the amendment from the noble Lord, Lord Scriven. I hope there is further debate on it. It cannot be right that we cannot follow other modern liberal democracies such as the United States where local authorities and mayors have the capacity, for instance, to raise funds for the issuance of bonds, local infrastructure and capital projects. We have very restrictive financial and legal rules in this country that prevent us doing the same. On that basis, we have begun a good debate and I look to my noble friends on the Front Bench to run with it and, as my noble friend Lord Young of Cookham said, show some ankle, as it is long overdue.

[Lord Shipley (LD)]

My Lords, in the words of the noble Lord, Lord Jackson of Peterborough, we have begun the debate. That is the intention of this probing amendment, because we must have it.

Today’s Budget decentralises—but does not devolve—some powers, although not fiscal ones, to combined authorities, which is welcome but comparatively minor. In other words, if a combined authority was able to adjust a block grant and make different decisions on how to commit expenditure from it, that would be welcome. However, it is not a fiscal policy. As the noble Lord, Lord Young of Cookham, said, it would be helpful if the Government could explain their thinking on devolving real fiscal powers.

I would pick up the noble Lord, Lord Jackson, on one statement. He said that we are not a unitary state. That would be hard to explain in Edinburgh, Cardiff and Belfast, and it goes to the heart of the problem as I see it. Substantial devolved powers, including fiscal ones, reside in Scotland, Wales and, theoretically, Northern Ireland that do not apply in England. Yet England is a country of 56 million people. It is far too big to operate out of centralised control in Whitehall, but there is a very strong argument for saying that, in terms of Treasury control and the Government’s desire to do things on a hub and spoke model in which all the financial resources are controlled in London, England is a unitary state.

I want to add one thing to the excellent contribution from my noble friend Lord Scriven and the other contributions from the noble Lords, Lord Young of Cookham and Lord Jackson of Peterborough, which I really appreciated. Can the Government explain why Scotland and Wales can have fiscal powers but no constituent part of England is permitted to have them? That is the nub of the problem, and it is why starting the debate on this issue is very important.

[Baroness Bennett of Manor Castle (GP)]

My Lords, I rise to add to the political breadth of this debate and to offer Green support for the introduction of this amendment from the noble Lords, Lord Scriven and Lord Shipley. Localism is at the absolute heart of Green politics, but I think we have seen right across your Lordships’ Chamber a great desire for an end in England to the incredible concentration of power and resources in Westminster.

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Lord Shipley Excerpts

Committee stage
Monday 20th March 2023 Lords Chamber

On short-term lets, it is worth noting some figures that I found: in some areas, renting a home for 10 weeks through Airbnb can pay as much as a full-term year-long let to a normal local tenant. So we have an absolute market failure, and we need to intervene here to ensure that we get the kind of outcomes that we need, which surely should be homes being regarded as secure and affordable places for people to live, not primarily as financial assets. Of course, getting to that ideal scenario will require a lot more change than is proposed in this group, but at least here we are heading in the right direction. I very much agree with the noble Lord, Lord Young of Cookham, that some steps are being made, but they are not nearly fast enough.

[Lord Shipley (LD)]

My Lords, I will speak very briefly about saturation areas and Article 4 directives that already exist under the planning system. I support the amendment in my name and that of my noble friend Lord Foster of Bath. It is important because it would enable neighbourhood plans to include policies relating to the proportion of dwellings that may be second homes and short-term holiday lets under a use classes order proposed by other new clauses in this set of amendments.

Saturation areas already exist and can be defined under the licensing system—for example, for outlets serving alcohol. They operate under the licensing system. Houses in multiple occupation are also subject to a licensing system, but, in my city of Newcastle upon Tyne, they now use the planning system as well, following a lot of work that the administration that I led undertook. Under the Article 4 directives, permitted development rights can be restricted where the conversion of a family home into a house in multiple occupation would continue a trend of making family homes very expensive to buy and not easy to obtain. Without those Article 4 directives, the nature of a neighbourhood can change significantly.

So I ask the Minister what the difficulty is, in principle, over second homes and short-term holiday lets. As we have heard, there is fairly widespread support now for giving local councils and local planning authorities greater powers to restrict long-term residential homes being converted into short-term lets or second homes. There is a range of principles that I think local authorities should be able to decide for themselves. They may decide that they want to encourage short-term lets and second homes because it might increase the number of people who are buying services from local retail outlets and local leisure outlets—restaurants, pubs and so on. There is some evidence in some places that I know that that may be the case, but surely it should be for the local planning authorities themselves to be making those decisions.

The simplest way is through the use classes orders that we have heard about, but the principle already exists within existing legislation, both within the licensing system and within the planning system. My noble friend Lord Foster said that more needs to be done, and that is absolutely the case. Whereas I would support a higher council tax payment for second homes—I think there is justification for that—I am not actually convinced that it will solve the problem. I think we have to use the planning system to resolve the difficulty we face, so I hope very much that the Minister will give further consideration to this issue, which is affecting so many small communities, particularly in rural and coastal areas. The time has come for the Government to act.

--- Later in debate ---

I am sure that many noble Lords have ideas about how this could be achieved. Clearly, we are not going to propose a new model for business rates in this Bill. The noble Baroness, Lady Hayman, set out some of the key areas of business rates reform which need to be looked at. The right way forward is a wide-ranging consultation, expanding on some of the evidence heard from noble Lords today, which proposes a new model for rates to make them fairer for businesses and to end the problems we have on high streets in the regions. I hope that the Government will seize this opportunity to bring back vibrancy, purpose and pride to many of our struggling high streets and town centres.

[Lord Shipley (LD)]

My Lords, my name appears on Amendment 428, together with that of my noble friend Lady Pinnock. I just want to say two things. First, I hope the Minister understands the seriousness of this issue. Proposals for the reform of business rates have been regularly promised in the past, and there is clear evidence that reform is needed.

Secondly, I draw the House’s attention to the announcement this morning, which will be furthered at a conference in Liverpool tomorrow, of the launch of the fiscal devolution report of the Northern Powerhouse Partnership. It makes five key recommendations: first, devolution of reform of the business rates system to all mayoral authorities; secondly, the creation of three new council tax super-bands; thirdly, devolution of stamp duty to local councils; fourthly, devolution of 1p of existing employers’ national insurance contributions for local transport services and infrastructure, as is done in France; fifthly, a tourism tax on hotel stays to support culture, protect the environment and improve visitor experiences.

There will be a debate about that and, as we have heard, consultation will be needed on how to reform business rates. The time has come for this to be taken very seriously and for proposals to be initiated. I hope the Minister can tell the Committee that that is what the Government intend to do.

[The Parliamentary Under-Secretary of State, Department for Levelling Up, Housing & Communities (Baroness Scott of Bybrook) (Con)]

My Lords, I thank the noble Baroness, Lady Hayman of Ullock, for setting out in Amendment 168B her suggested redistribution of the income raised by the council tax premium from upper-tier councils to district councils. The proposed premium will provide all councils, including district councils, with the opportunity, where they set a premium at the maximum level of 100%, to raise double the revenue from each second home in their area.

Revenue from council tax is essential for a wide range of councils, providing them with funding to make available a range of public services which best fits the needs of the local area. Under this amendment, in an area with two tiers of councils the district council would be able to retain all the income raised by the council tax premiums. This would disturb one of the key components of the council tax system—that local authorities should calculate their council tax charge for local services on the same basis as each other, with equal access to the revenues generated. The long-term empty homes premium has been in place since 2013 and has followed this long-established principle. We trust councils to make their own decisions on where their funding should be spent, and we do not consider it appropriate to engineer the system to direct part of the proceeds of council tax to one particular type of authority in some parts of the country.

Different communities will have their own set of challenges and solutions to second home ownership and empty properties. For instance, this may be through additional funding for transport or education, which falls within the remit of county councils. The current approach provides flexibility for a range of councils and other authorities to generate additional income, which can be used as they see fit. If a council feels that funding should be put towards a particular goal such as housing, this should be discussed with the other authorities in the usual way.

A change in the distribution method for the council tax premiums would also create an imbalance between two-tier areas and areas covered by unitary authorities. For example, in a single-tier area with a high number of second homes, such as Cornwall, the council would be required to share the proceeds of the premiums with the other precepting authorities, such as the PCC or the fire and rescue service. However, in a two-tier area with a high number of second homes, such as Norfolk, the amendment would mean that all additional income was retained by the district council. Notwithstanding the second part of the noble Baroness’s amendment, there would be no obligation to enable precepting authorities to benefit from the increased income. This may be advantageous to the district but would prevent the income being spent on services provided by other authorities in the area that can benefit the local community, such as road maintenance and better care for the elderly.

I turn to Amendment 169, in the name of the noble Baroness, Lady Hayman. We discussed earlier in Committee that the purpose of Clause 76 is to provide councils with an opportunity to apply a council tax premium on second homes. As with all properties, second homes may be in a variety of different conditions. For the purposes of Clause 76, however, a second home would be caught by the provision only if the property was substantially furnished. Indeed, this is an important factor in differentiating such properties from those that might be impacted by the long-term empty homes premium, as set out in Clause 75. Where such properties are substantially furnished, I would not envisage that they are likely to be in a condition to require significant work as a result of dilapidation. Therefore, the premium council tax on a second home applies only where it is furnished. However, in specific circumstances the local authority has tax relief powers as well.

Notwithstanding that potential distinction, I can reassure the noble Baroness that the clause already makes provision for the Secretary of State to make regulations that exempt certain classes of property from the effects of the second homes premium. Similar powers are already in place for the long-term empty homes premium. Obviously, before making any regulations the Government would wish to consult on any exemptions and to provide everyone with the opportunity to say what should—and, perhaps, what should not—be exempt from the effect of the premium.

The noble Baroness’s amendment also proposes a right of appeal against the imposition of a second homes premium. I can reassure her that, under Section 16(1) of the Local Government Finance Act 1992, council tax payers already have the right of appeal against any calculation of amounts they are liable to pay, including any premiums.

Finally, Amendments 428 and 474 were tabled by the noble Baroness, Lady Pinnock, and the noble and learned Lord, Lord Etherton. The Government are of course aware of the pressures facing businesses, including those on the high street, and have acted to support businesses up and down the country. As noble Lords are no doubt aware, the Government have only recently concluded a comprehensive review of the business rates system. A final report on the review was published at the Autumn Budget 2021, alongside a package of reforms worth £7 billion over five years. The review recognised the importance of the system in raising funds for critical local services in England, worth around £22.5 billion in 2022-23, and concluded that there was no consensus on an alternative model that would be of sufficient scale to replace business rates.

At the Autumn Statement 2022, the Government went even further and announced a range of business rates measures worth an estimated additional £13.6 billion over the next five years. As part of that package the Government announced that the tax rate will be frozen for a further year. This is a real-terms cut to the tax rate, worth around £9.3 billion over five years.

In addition, the retail, hospitality and leisure relief will be extended for a further year and made more generous. In 2023-24, it will provide eligible businesses with 75% off their bills, up to a maximum of £110,000 per business. This is worth an estimated £2.1 billion to ratepayers, many of which are on our high streets.

Furthermore, in response to the concerns of businesses in England, the Government will, for the first time and subject to legislation, introduce a transitional relief scheme for the 2023 revaluation. This will be funded by the Government and is expected to save businesses £1.6 billion. This will mean that the 300,000 ratepayers—

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Committee stage
Wednesday 22nd March 2023 Lords Chamber

[Lord Lansley (Con)]

My Lords, I nearly lost that chance, having sat here for several days waiting for this. I agree with everything my noble friend Lord Young said on the amendments he and I have jointly tabled in this group, except for one word: he referred to his “chequered” career, but I would say “distinguished”. We will replace “chequered” with “distinguished”, but otherwise I agree with everything he said. That helps, because it means that I do not have to repeat the arguments he made.

I want to speak to Amendments 184A and 187A very briefly. I will also explain Amendment 185, which my noble friend did not dwell on, and say a word or two about Amendment 183—the lead amendment in this group, in the name of the noble Baroness, Lady Taylor of Stevenage—which he did refer to. As my noble friend said, the issue we are turning to now is the plan-led system. How local plans are to be made and what the relationship is to be between the local plan and the national development management policies are very important questions.

To paraphrase one of the key questions that arises out of this, which I think we need to understand now in order to address these issues in the Bill at a later stage, would the Government be kind enough to explain to what extent the provisions presently in the National Planning Policy Framework are going to be national development management policies in the future? They will then acquire a different status—although, I have to say, it is quite difficult in many cases for a local planning authority to proceed on the basis of operating with the guidance in the NPPF, because inspectors will look to the NPPF as a basis for the judgments they make on whether a plan is sound, and indeed whether determinations in themselves are sound on appeal. We may be looking at distinctions or differences between the NPPF and NDMP without there being that much of a difference between them. In practice, the legal differences are clear, and the extent to which the NPPF is going to be turned into NDMP and given that status is important, and we need to know that.

As my noble friend Lord Young said, the revised draft of the NPPF, which the Government have consulted on and have yet to tell us the final outcome of, states:

“Policies in local plans and spatial development strategies should be reviewed to assess whether they need updating at least once every five years”.


My noble friend referred to the loophole or the issue here, which is that local planning authorities decide for themselves whether that review turns into an updated local plan. I give him and the House one very specific example, which is close to me. I should remind the House, as I have mentioned previously, of my registered interest as chair of the Cambridgeshire Development Forum. East Cambridgeshire adopted a local plan on 21 April 2015, which covers the period up to 2031. In April 2020—five years later—the authority conducted a review and decided that it did not need to update the plan, save with respect to the housing supply numbers. So, it conducted a single-issue review.

I will not dwell on some of the issues, but I have various complaints about this. First, there is the idea that the housing number is unrelated to other issues in the plan—that the housing supply in the decade ahead is unrelated to issues of environmental concern or whatever. That seems to have been ignored by them. However, I make the point that the inspector, who conducted an examination in public in the latter part of last year, said that it was not in his remit at all to look at whether the plan should be updated or not, whether anything other than housing should be updated or not, and indeed whether the final date of the plan should be beyond 2031. Of course, what the local authority is planning to do in this case is to update its housing figures, but when it has done so, it will extend for only about six years rather than the 15 years that the NPPF would imply. Notwithstanding that, they got away with it. So I very much agree with my noble friend and hope that the Minister will think hard about how we might make sure that we have local plans.

However, our Amendments 184A and 187A go precisely to the issue of requiring local plans to be up to date. If they are not up to date, in our view it cannot be right that the same principles apply in terms of the compliance or otherwise of determinations made on planning applications if the local plan to which they relate is out of date. There must be a distinction. Our amendments simply add “up-to-date” in front of “development plan.” They do not say, “What’s the relationship between a planning application and a determination on that planning application in relation to a local plan that is no longer up to date?” We need to resolve that. I suggest to my noble friend on the Front Bench that Ministers should think about whether there is as yet something they can do to distinguish between the proper relationship between development plans and in this particular instance determinations of planning applications, which should be made according to an up to date local plan, and local plans that had been adopted but are now out of date. They need to address the question of whether they are proper material considerations but not necessarily determinative. That seems to be the right way to go.

Amendment 185, which is in my name, that of my noble friend, and in the name of the noble Baroness, Lady Hayman of Ullock, relates to the question of a determination on a planning application and that it should be made in accordance with the local plan. The Planning and Compulsory Purchase Act 2004 says in Section 38(6):

“If regard is to be had to the development plan for the purpose of any determination to be made under the planning Acts the determination must be made in accordance with the plan unless material considerations indicate otherwise”.


It has said that since 2004, so there is considerable case law relating to this, and those working in the planning system have experience of working with that. They know that it means that, in making a determination on a planning application, local planning authorities have to weigh material considerations. However, courts pretty much do not second-guess the weight that planning officers and planning committees give to various considerations in considering an application. We have had nearly 20 years of that.

The Government have rewritten this bit and inserted the word “strongly”—

“unless material considerations strongly indicate otherwise”.

That says to me that two things are going to happen. First, it is the Government’s intention to limit and restrict the circumstances in which decisions are made other than in accord with a local plan or with national development management policies. That means—which goes to the point that we have been debating in this group—that it reduces the role of the planning committee and the local planning authority, because they do not balance the weight any more. Most of the material considerations, almost by definition, will not be enough to indicate that they should do other than what would be demanded by the local plan and the NDMP.

The second thing that will inevitably result from this is that there will be a large amount of litigation, because the question of what “strongly” means in this context will be hard to determine. There will not be case law or precedent—a large number of decisions will not previously have been made. Where does “strongly” change the balance? How is that weight to be shifted? It is very unwise for the Government to be proceeding down this path. It would create a better balance across the Bill generally and we would be better off in many cases just to leave things as they are if they cannot demonstrate that there is a mischief to which this is the answer.

I will stop there, but I just want to refer to one other thing. I thought that Amendment 216, which is not in my name but in that of the noble Baroness, Lady Taylor, rather pointed to an issue. Schedule 7 on page 294, which is about plan making, would take out a rather curious few words where the Government say that local plans must not

“be inconsistent with or (in substance) repeat any national development management policy”.

I just have a question: what is the point of national development management policies if it is not essentially to write for local planning authorities large amounts of their local plan? If the local planning authority then puts that language into its local plan, does that mean it is repeating it or incorporating it? What does “repeat” mean in this context? I thought the whole point was that local plans would “repeat” national development management policies, yet we are being told in the legislation that that is not what they are to do. That is a genuine question to which I really do not know the answer, but I hope we can find out a bit more from my noble friend later.

[Lord Shipley (LD)]

My Lords, my name is on Amendment 191A, tabled by my noble friend Lady Thornhill, as is that of the noble Baroness, Lady Jones of Moulsecoomb. It stipulates the process for the Secretary of State to designate and review a national development management policy, including minimum public consultation requirements and a process of parliamentary scrutiny based on processes set out in the Planning Act 2008, as amended, for national policy statements. It is an amendment to Clause 87.

Clause 87, which is a matter of only 20 or so lines, defines the meaning of “national development management policy” as

“a policy (however expressed) of the Secretary of State in relation to the development or use of land in England, or any part of England, which the Secretary of State by direction designates as a national development management policy.”

It then says that the Secretary of State can revoke a direction and modify a national development management policy. It goes on to say:

“Before making or revoking a direction … or modifying a national development management policy, the Secretary of State must ensure that such consultation with, and participation by, the public or any bodies or persons (if any) as the Secretary of State thinks appropriate takes place.”


In planning terms, this is the most gross act of centralisation that I can recall from the various Bills we have had relating to planning policy.

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Committee stage
Thursday 20th April 2023 Lords Chamber

Other than that, I strongly support these amendments. I hope that they will be acceptable to the Government and to the House, and I look forward to our heritage, our streetscapes and our towns being better protected as places of beauty, history and community than they are at present.

[Lord Shipley (LD)]

My Lords, I agree strongly with what the noble Lord, Lord Carrington of Fulham, just said about Amendments 312G and 312H, as well as with what the noble Baroness, Lady Andrews, said about them. This is a particularly serious matter and I hope that the Government will pay due attention. A range of issues has been raised in this group, the comments made by the noble Lord, Lord Carrington, on timelines might be a possible way forward for discussion and prove productive.

I have had concerns for some time about permitted development rights, feeling that in some cases they are simply too loose. My previous concerns have related, for example, to conversions of offices to residential flats for sale, which often reduces the total number of places where people can go to work and increases the distances to where their place of work may then have to be. Very often, permitted development rights are used for short-term development reasons but where those reasons may not be in the long-term interests of a local area, and we need to remember that long term.

I have put my name to Amendments 312G and 312H alongside those of the noble Baroness, Lady Andrews, and the noble Lord, Lord Carrington of Fulham, because there is another aspect of permitted development rights that I believe needs reform in the interests of maintaining our heritage. According to the Royal Institute of British Architects, approximately 50,000 buildings are demolished each year. Many of them may well be unfit or unsuitable for the modern age, and demolition is understandable in those cases where they are going to be replaced with something better.

However, that is not always the case, as we have heard from previous speakers. The Victorian Society has produced evidence that high-quality historic buildings are being demolished when they still have a useful purpose. Many buildings are not listed when they could be. I have concluded that there is a gap in our regulations, which should require that older buildings, at least, that are not listed, should have to undergo a further test. That test is, I suggest, the planning system, which could consider demolition as part of a redevelopment application. If there is no redevelopment application, there is no obvious reason to demolish the building, where it is safe. That could end up with an empty site for a long time, or a later application for a worse development than the building demolished.

These arguments relate to Amendment 312G, but Amendment 312H is also critical. It requires planning permission to demolish locally listed buildings. These lists exist for a reason, and demolition should not be treated lightly. Strangely, not all local councils have local lists anyway, which is another concern.

It should not be possible for buildings on a local list to be demolished without planning permission if they are outside a conservation area—rules currently apply if they are inside a conservation area. I ask the Minister: what is the point of a local list otherwise? Local lists need protection from poor, short-term decisions on demolition which are contrary to our long-term heritage interests. This is about buildings that matter to local people and future-proofing our heritage, and I very much hope the Minister will concur.

[Lord Thurlow (CB)]

My Lords, first, I simply put right a matter of record. I failed to declare my interests in our debate before lunch. I have two buy-to-let properties, as marked on the register.

I now briefly reference Amendment 247B from the noble Lord, Lord Cormack, ably introduced by the noble Lord, Lord Carrington of Fulham. I refer to our heritage assets in the context of properties, as well as statues and artwork. In the UK, a disproportionately small minority can cause heritage assets to be removed from public view, whether they are in public or private ownership or locations.

Furthermore, the world we live in of modern development seldom includes a requirement on developers to contribute to what I think is referred to as the public realm. Most larger developments, as we have heard from the noble Lord, Lord Carrington, are built to minimum cost. We must not forget that good architecture and good design—itself expensive—is a great contribution to the public realm. The presence of statues and monuments, and good building design is a really important contribution to society. Planning applications should have a public realm box, simply to ask whether they are making any contribution to the public realm and heritage assets. The amendment of the noble Lord, Lord Cormack, should also refer to heritage assets which are stored out of sight and yet are in public ownership.

Levelling-up and Regeneration Bill

Lord Shipley Excerpts

Committee stage
Monday 24th April 2023 Lords Chamber

This measure will enable the establishment of a system that allows key statutory consultees to recover costs for the planning advice they give to applicants on a wide range of applications and related activities. I hope that noble Lords see how important this is to enable more effective and self-sufficient statutory consultees within the planning application process, and that they will support this important amendment.

[Lord Shipley (LD)]

May I ask the Minister to clarify one issue? I have listened very carefully to this debate but there is an issue that I have not fully understood. I heard her say that prescribed bodies will be able to secure cost recovery, but she has not said that local planning authorities will be able to recover their costs. She said that there could be an increase in the fees they are allowed to charge following the consultation, but that is not the same thing as permitting cost recovery; indeed, a lack, as yet, of a definition of cost underpins this whole debate. To my way of thinking, there is the immediate cost of administering and managing a planning application, with all the costs that may apply to that application. However, there is also the cost that a local planning authority might have in terms of the provision of IT services to the planning system, web services, office costs, heating, lighting, and so on—essentially, the overhead cost. As the Minister is going to think about all these issues, I hope very much to hear that the Government will consider full cost recovery for local planning authorities. However, as I say, I have not yet heard that during this debate.

[Lord Young of Cookham (Con)]

My Lords, I am grateful to everyone who has taken part in this debate. There have been a lot of Youngs involved, and I will try to respond on behalf of both of them. Let me say straightaway that I very much welcome the government amendment, and I am sure that, in her absence, the noble Baroness, Lady Young of Old Scone, would also do so.

On the rest of it, I had hoped that, with this group of amendments, we might have found a chink in the Government’s armour that has been deployed throughout our debates. I am disappointed that we have not been able to make progress, and I know that the Local Government Association will also be disappointed.

I am grateful to all those who took part. The noble Baroness, Lady Pinnock, made the valid point that the flat rate prescribed by the Government simply does not reflect the costs to a local authority of a complex planning application that spans a number of years; that point was not adequately dealt with.

I was most concerned to hear what my noble friend Lord Moylan said about developers offering to second to an overstretched planning department a planner who might assist them. That is rather like me saying to Test Valley Borough Council, “I understand your electoral department is under some pressure; I would like to second a returning officer to the forthcoming election”.

Levelling-up and Regeneration Bill

Lord Shipley Excerpts

Committee stage
Monday 22nd May 2023 Lords Chamber

[Lord Shipley (LD)]

My Lords, the noble Baroness, Lady Taylor, is absolutely right about the importance of the amendments on regeneration in this group. I want to bring together two of them that I think are very important. The noble Lord, Lord Ravensdale, refers in Amendment 504GG to town centre investment zones. That is a highly original and very important suggestion, so I hope the Minister gives it government support.

The other is Amendment 503 in the name of the noble Baroness, Lady Hayman of Ullock, which is about Civil Service redistribution. It calls for a review into whether redistributing Civil Service jobs to different locations throughout the UK will support implementation of the Bill. That seems an important outcome that the Government should assess.

I suggest that, when Civil Service jobs are redistributed, they should be redistributed to town centres and locations close to high streets. We had a long debate earlier about the importance of investing in high streets, and here is a classic example of how the Government can use public money to bring jobs closer to where those employees will then shop. The Government have an active travel plan at the centre of their transport thinking. If they were to apply that rule to the relocation of Civil Service jobs, they would not relocate any Civil Service jobs to business parks out of the centres of our towns and cities. In other words, if there are proposals from those undertaking town centre investment zones and those in Whitehall who are redistributing jobs out of London to elsewhere in the UK, ensuring that they help generate jobs in high streets and town centres seems a very helpful way of proceeding.

This group contains a number of suggestions for regeneration. I just hope that the Government see the opportunity we have here and ensure that, when they redistribute Civil Service jobs, they do so in existing town centres and high streets.

--- Later in debate ---

[Lord Young of Cookham (Con)]

My Lords, I will add a very brief footnote to the speech we have just heard from the noble Baroness, Lady Taylor. Amendment 477 asks for a devolution Bill. In a sense that takes us back to the beginning.

In September 2019, at my party conference, the then Chancellor announced that there would be a White Paper on English devolution. The Queen’s Speech in 2019 said that the Government would publish a White Paper on

“unleashing regional potential in England”.

The following year the then Minister, Simon Clarke, said in answer to a Parliamentary Written Question on 9 July that

“our English Devolution and Local Recovery White Paper will set out our plans for expanding devolution”.

It was hoped to publish that in autumn 2020.

After that, the line went dead. In 2021, it was announced that the plans for strengthening local accountable leadership would be included in the levelling up White Paper—so what was initially going to be about devolution morphed into being about levelling up. There is inevitable tension between devolution, on the one hand, and levelling up, on the other. Devolution is about pushing decisions down to the local level; levelling up is about ironing out the differences between regions, which, inevitably, means more central control. This dilemma has gone all the way through the Bill, and indeed through the White Paper—it was not the White Paper on devolution, it was the White Paper on levelling up. There are some powerful words in the foreword by the then Prime Minister:

“We’ll usher in a revolution in local democracy”.


But we have not seen that.

To take a very small example, I proposed a very modest amendment that would enable local planning authorities to recover the costs of running the planning department—something that at the moment is set nationally. Far from ushering in new local democracy, that decision has to rest in Whitehall. Instead of pushing spending down to the local level and letting local people get on with it, we have all the pots people have to bid for: the levelling up fund, the pothole action fund—which, I think, has now been added to that list—the future high street fund and the towns fund. The thing about all those funds is that the final decision is taken centrally, not locally. So the question I pose to my noble friend is: when it comes to devolution, is this it? Is this all we are going to get?

We are approaching the end of a Parliament, and there may not be time for fresh thinking, but I agree with the thrust of what the noble Baroness, Lady Taylor, said: we are overcentralised and need to push decisions down locally. To do that, we need a buoyant source of local revenue, which local government does not have at the moment. When I looked at Amendment 477, the word “devolution” caught my eye. I felt that somebody ought to draw attention to the tension between levelling up, on the one hand, and devolution on the other. To my mind, there is too much about levelling up but not nearly enough about devolution. I suspect that, at some point, whoever is in control in the next Parliament will have to come back to devolution.

[Lord Shipley (LD)]

My Lords, I am very grateful to the noble Lord, Lord Young, for reminding us how we got to where we are. He was absolutely right on every single point he made. This is terribly important, and I am very grateful to the noble Baroness, Lady Taylor of Stevenage, for giving us the amendment. If I have one criticism, it is that I am not sure we are yet at a Bill stage. Although it says “draft legislation” in subsection (1) of the proposed new clause—I understand that—I personally favour a royal commission or something that would actually look at the nature of local government and central government powers.

The noble Lord, Lord Young, has rightly identified the difficulty of devolving and at the same time levelling up, which, as he said, requires a greater element of centralised control. I have said several times over the course of this Bill, and before, that you cannot run England out of London; with 56 million people, we are steadily learning that. One of the reasons we are having these constant changes in the Government’s intentions for Bills is that they do not know either what they want to do—so, in the end, the Civil Service carries on and Ministers carry on trying to move forward.

There are elements in the Bill which are very important in assisting us down the road of greater devolution, and they lie in the combined county authorities. The more we have combined county authorities—much though I do not like the centralisation which can result, because they do not have, for example, a Greater London assembly; they do not have a structure such as that to underpin them—the more we will have a move away from Whitehall.

I do not want to say any more about that; I welcome what the noble Baroness, Lady Taylor, has proposed in this amendment. I think we should note what the noble Lord, Lord Young, said about the overall situation that we are in, but I hope that the Government and the Minister will see the importance of trying to bring all this together, because inevitably we are going to come back to this on Report anyway, as we look at the first parts of the Bill that, in Committee, we debated many weeks ago. I welcome the amendment and I hope the Government will see that there would be benefit in moving us forward, not just with structures like the combined counties but actually with real devolution of real things.

[Baroness Scott of Bybrook (Con)]

My Lords, this amendment, in the name of the noble Baroness, Lady Taylor of Stevenage, seeks to place an obligation on a Minister of the Crown to publish draft legislation for a devolution Bill within 120 days of this Bill receiving Royal Assent. We support the principle behind this amendment—that combined county authorities can request further powers which would enable activity to help drive economic growth and support levelling up.

In fact, we have already gone further than this in the devolution offer set out in the levelling up White Paper. This sets out a clear menu of options for places in England that wish to unlock the benefits of devolution, whether that is moving towards a London-style transport system to connect people to opportunity, improving local skills provision or being able to act more flexibly and innovatively to respond to local need. Any area, including those considering a combined county authority, is welcome to come forward and ask government to confer local authority and public authority functions as part of devolution deal negotiations. The levelling up White Paper has confirmed that the devolution framework is not a minimum offer. These asks are typically made as part of devolution deal negotiations.

We recognise that our existing mayors are already playing a powerful role in driving local economic growth and levelling up. That is why the Government plan to deepen the devolution settlements of the most mature institutions. The White Paper committed to trailblaze deeper devolution deals with the Greater Manchester and West Midlands combined authorities. These agreements were announced on 15 March 2023 and include many areas which will support these regions to drive growth and prosperity, including on skills, transport, housing and net zero, alongside single funding settlements and stronger accountability focused on outcomes.

These deals will act a blueprint for other areas with mature institutions to follow. This will include combined county authorities, once established. Ultimately, our aim is to achieve the local leadership levelling-up mission: that, by 2030, all parts of England that want one will have a devolution deal with powers at or approaching the highest level of devolution and a simplified, long-term funding settlement.

I say to my noble friend Lord Young of Cookham that, actually, devolution is what we want to deliver the local leadership that is required to level up this country. Devolution is part of the levelling up in the Bill, along with many other things to enable the levelling up of the United Kingdom. As such, I hope the noble Baroness agrees that this amendment is unnecessary and feels she can withdraw it.

Levelling-up and Regeneration Bill

Lord Shipley Excerpts

Report stage
Tuesday 11th July 2023 Lords Chamber

[Lord Lansley (Con)]

My Lords, in this group Amendment 2 in my name returns to an issue that we debated in Committee. Noble Lords who were present on that occasion will recall the debate and I will refer to it again in a moment, but I think it is useful to return to it, because it touches upon the broader question of the relationship between the laying of a statement of the levelling-up missions and parliamentary scrutiny of that—or indeed, parliamentary scrutiny of subsequent reports.

We just touched on the timing of all of these. For the benefit of the House, as it happened, I was looking at the timing of the reports and the statements. We are in a position now where we are 17 months on from the Government having published their levelling up White Paper. Technically speaking of course, when this Bill is enacted, the mission periods for the levelling-up missions will restart, since under the Bill as it stands the mission period for the levelling-up missions cannot be dated back to before the enactment of the Bill itself. As far as I can see, we are going to have a new statement of levelling-up missions at that point, and the mission period will clearly run to 2030, since all the levelling-up missions in the White Paper run to 2030. That satisfies the provision that it cannot be less than five years for the mission period.

My amendment relates to what Parliament does when it receives a statement of levelling-up missions. Under the Bill, strictly speaking, it does nothing; it waits until it receives a report. Let us imagine what happens to this Parliament in relation to such a report. The mission period starts two months after enactment—let us say, for the sake of argument, that it will be January 2024. The mission period could be delayed up to a month later under the provisions of Clause 1, so that gets us to February 2024. The 12-month report, therefore, takes us to February 2025, and the report could be received up to 120 days after the end of that 12-month period. So, the first report on levelling-up missions is already certain to take place after this Parliament has been dissolved and is likely not to be received by Parliament until the middle of 2025. That is the first point at which a report is likely to be received.

There is an interesting amendment in this group—Amendment 12, if I recall correctly—which relates to evaluating the levelling-up missions, in relation not only to Ministers’ assessments but to the assessments of the independent advisory council. We discussed the independent advisory council previously; we do not have its view formally on the levelling-up missions and progress. However, as we discussed previously, I think there is some merit in that amendment and that the independent advisory council should provide detail on the report.

The point of my amendment is to say that, when a statement of levelling-up missions is laid before Parliament, Parliament should have an opportunity to debate it if it feels strongly about it. That is not quite what my amendment says. I have adapted a legislative provision which Ministers introduced into the Procurement Bill—which is now in the other place—that, if the national procurement policy statement is the subject of a Motion critical of it within 40 days, Ministers would withdraw that statement. My amendment shortens the time period ever so slightly, the implication being that if Parliament has a problem with a statement of levelling- up missions, the time to do something about it would be when the statement is laid, not to wait what could be 15 months to look at the first report and express reservations about that.

From Ministers’ point of view, my noble friend Lord Howe, in the debate we had in Committee on 20 February—time has passed, has it not?—said that

“it would be extremely unlikely for any government to ignore the view of either House of Parliament if that view had been expressed in the form of a Motion that had been widely supported”.—[Official Report, 20/2/23; col. 1467.]

My difficulty is this: as a former Leader of the House of Commons, I can see that if the Opposition had a problem with a statement of levelling-up missions in the other place, the likelihood is that they would have time within 30 working days to lay a Motion and to debate it. It is not so straightforward here, and there are no formal processes associated with a statement of levelling-up missions. If we were to include my amendment, we would create an expectation that, if such a Motion were tabled, it should be debated within a short period of time.

That is necessary because the statement of levelling-up missions is, of itself, of importance. It is a major statement of government policy. I am assuming that the statement that will be laid, potentially at the end of this year, will be the same as the statement of levelling-up missions published on 2 February 2022. It may not be—there is nothing in the Bill that requires it to be.

My point is that what is in the statement of levelling-up missions is the Government’s responsibility. I am afraid that I do not agree with the other amendments in this group and the next which try to substitute the view of Parliament about what government policy should be for the view of the Government themselves. The statement of levelling-up missions is a central statement about government policy on the reduction of geographic and other disparities across the nation, and it is for government to set out what they are. My principle is very straightforward: government propose; Parliament disposes. By what mechanism will Parliament dispose of the statement of levelling-up missions? At the moment, the implication is that it does not do anything about them; it just waits for a report, which may be some time off in the future.

Amendment 2 is very simple. It says that when the Government publish a statement, Parliament should have an opportunity—not a requirement, but an opportunity—to look at the statement and, if it objects, table a Motion and express its disapproval, which is exactly what my noble friend Lord Howe said. However, we have to create an opportunity for that to happen. If such a Motion were supported by either House, it would be right for Ministers to withdraw the statement and revise it. The amendment does not tell them what to put into their statement; they could carry on with the same statement and try to reintroduce it with the same missions, or they could adapt the missions. However, I do not think it correct that they should proceed without any reference to Parliament or any opportunity for Parliament to express a view about the statement of levelling-up missions.

I hope my amendment is supported. I have sympathy with Amendment 12, on the independent advisory council, but I do not agree with amendments that are trying to substitute the view of this House at this moment for the Government’s view on what the policy on levelling up should be. That is for government to do. On that basis, I beg to move Amendment 2.

[Lord Shipley (LD)]

My Lords, I rise to speak to Amendment 6 in my name, but first, I point out that the noble Lord, Lord Lansley, has raised a number of important issues of process and timing. I look forward to hearing the Minister’s response, because Parliament will have to work around them. The noble Lord pointed out that that it is now 17 months since the White Paper was published and that the way things are, with a general election pending, we are likely to hear more about the levelling-up missions in 2025. As I understood it, he said that it would be useful if Parliament could debate the missions earlier, and he is right.

However, I do not agree with the noble Lord regarding my Amendment 6, on which he poured a little cold water. It is actually about indicators, not missions: it is about how you measure, through missions and metrics, how successful the Government have actually been in delivering on their objectives.

I remind the House as we start Report that I am a vice-president of the Local Government Association. My amendment would define the criteria that should be used to evaluate the success or otherwise of levelling-up policies across all government departments. I emphasise the obvious point that that levelling up is not just for the Department for Levelling Up, Housing and Communities to pursue. Indeed, as the noble and learned Lord, Lord Thomas, said in the previous group, we must tie funding to the levelling-up missions across Whitehall. By implication, that is fundamental, because all departments are supposed to be driving levelling up, so we need to be able to assess how successful they have been in doing that.

My amendment states:

“A statement of levelling-up missions must include an assessment of geographical disparities in the United Kingdom, broken down by local authority and by postcode area and council ward”.


Let me be clear: “postcode area” means the first three or four digits of a postcode, not the second half. Otherwise, I do not see how, if we talk only in terms of regions of England, we ensure that all parts of England are being considered for those outcomes. We have to cover urban, rural and coastal areas—all parts of England. We therefore have to have systems that will produce the evidence we need.

--- Later in debate ---

[Baroness Scott of Bybrook (Con)]

My Lords, Amendment 2, in the name of my noble friend Lord Lansley, would require a Minister to withdraw the statement if either House of Parliament resolves not to approve it. The statements of levelling-up missions, the annual report, the revisions to the missions and revisions to the metrics supporting missions will already be laid before both Houses of Parliament. This already provides numerous opportunities for Parliament to scrutinise the activity of the Government on levelling up. Going further in this way could take up significant parliamentary time and giving a veto to Parliament on a statement of government policy, which is fundamentally different from legislation or guidance, would not in our opinion be appropriate. Of course, as my noble friend said in Committee, Parliament can at any time put a Motion for debate on any issue. That is always possible for both Houses to do.

Amendment 6, in the name of the noble Lord, Lord Shipley, would require the Government to publish an assessment of geographical disparity, with reference to defined criteria, alongside the statement of missions. But as set out in the levelling up White Paper, the missions are already supported by a range of clear metrics to assess different aspects of geographical disparities and measure progress in addressing these. These metrics take account of a wide range of inputs, outputs and outcomes and, in the vast majority of cases, they draw upon publicly available datasets. An additional assessment of geographical disparities risks being duplicative.

Further, as with the missions themselves, specifying reporting metrics in legislation would make reporting far too rigid. While disparities exist at regional, local authority, ward and even street level, the appropriate unit of comparison will vary depending on the mission or policy area. Governments must be able to adapt reporting to reflect changing contexts, without cumbersome revisions to primary legislation. The statement of levelling-up missions is intended as a statement of government policy, which will set out those admissions and metrics, while the annual report will report against those metrics. Having requirements to assess disparities according to specific criteria in the statement would pre-empt that annual report.

Amendment 10, in the name of the noble Lord, Lord Foster of Bath, would require the Government to publish a rural-proofing report alongside the first statement of levelling-up missions. The noble Lord is right to highlight the challenges facing rural communities, as are the noble Lords, Lord Curry of Kirkharle and Lord Carrington, but the annual rural-proofing report is the key tool in highlighting this work. The second of those reports, Delivering for Rural England, is out. It sets out further details on the Government’s approach to levelling up rural areas.

In addition, last month the Government published an action plan detailing their ongoing work and future plans to support rural areas. The noble Lord, Lord Foster of Bath, mentioned that, coming out of that, we are providing £378 million in ring-fenced grants for rural areas, to fund energy-efficiency and clean heating upgrades for low-income households living off the gas grid in England. We also announced a £2.5 million fund to boost the supply of new affordable housing to rent or buy in rural areas, by creating a network of new rural housing enablers. As noble Lords said, we are also supporting community ownership of vital rural assets, such as pubs and shops, through the £150 million community ownership fund. These are areas across government where we are supporting the rural economy and rural England, and this will come out of those rural- proofing issues. I will mention more of this in a minute.

Amendment 12, in the name of the noble Baroness, Lady Hayman of Ullock, seeks the publication of a report by an independent advisory body on progress against the levelling-up missions. Through the provisions we seek to put in statute in the Bill, we are committed to enabling Parliament, the public and experts to scrutinise our progress against our missions and in reducing geographic disparities, and to hold the Government to account. Many think tanks and academics are already scrutinising our performance on levelling up. Through my department’s spatial data unit, we are embracing and seeking to build on this engagement, including through work to improve the way in which government collates and reports on spending and outcomes and considers geographical disparities in its policy-making. That is not just in my department but across government.

As noble Lords will know, we also established the independent Levelling Up Advisory Council, chaired by Andy Haldane. The council, which provides very candid advice to Ministers and conducts independent research for the levelling-up agenda, has met nine times already. I am confident that these provisions and commitments will ensure transparency, scrutiny and accountability on the levelling-up missions, and on the way in which geographical disparities are defined, measured and addressed, without adding any unnecessary proliferation of public bodies.

Amendment 14, in the name of my noble friend Lord Holmes of Richmond, would oblige the Government to publish a report that considers establishing a task force to help increase the effective use of robotics and automation and to consider the impact on regional disparities. The Government are hugely committed to reducing barriers to innovation, which is why we committed almost £200 million in funding to manufacturers through the Made Smarter programme, and we are already convening a Robotics Growth Partnership with leaders across academia and industry. The Levelling Up Advisory Council is considering how to improve the uptake of productivity-enhancing technologies. Given the work that is ongoing already, we do not believe that a task force is necessary. Should government find it desirable to establish a task force in the future, I assure my noble friend that it will not be necessary to legislate to establish one.

Amendment 303, in the name of the noble Lord, Lord Foster, would require a rural-proofing report on how

“the measures contained within the Act will address the needs of rural communities”.

As I highlighted, the Government already have extensive rural-proofing mechanisms which ensure that the unique challenges of rural communities are considered in all our policy-making. The Government undertake robust impact assessment processes when introducing any new policy. The Bill is subject to the same scrutiny and therefore has been assessed accordingly to ensure that all communities, including rural ones, are sufficiently considered. Given the existing mechanisms in place, we do not believe it is necessary to impose a further condition on the provisions of the Bill.

I hope that this provides the necessary reassurance for my noble friend Lord Lansley to withdraw his amendment and for the other amendments to not be moved.

[Lord Shipley (LD)]

Before the Minister sits down, perhaps she might explain a little further about the Levelling Up Advisory Council. I think I heard her say that is has now met nine times. Is the advisory council publishing its papers and the minutes of its meetings? I am led to believe that it has not been doing so. Is that the case and, if so, would it not be better if the papers and minutes of its meetings were published?

--- Later in debate ---

Moved by

[Lord Shipley]

6: Clause 1, page 2, line 3, at end insert—
“(2A) A statement of levelling-up missions must include an assessment of geographical disparities in the United Kingdom, broken down by local authority and by postcode area and council ward.(2B) An assessment of geographical disparities must consider—(a) levels of public spending, both capital and revenue,(b) levels of private sector inward investment,(c) levels of disposable household income, (d) levels of employment, unemployment, and economic inactivity,(e) differences in housing supply and tenure,(f) levels of educational attainment,(g) numbers of young people not in education, employment or training,(h) levels of child poverty,(i) success of government policies in reducing health inequalities,(j) the availability and cost of public transport, and(k) levels of fuel poverty.”Member's explanatory statement
This amendment would define criteria that should be used to evaluate the success or otherwise of levelling up policies across all government departments.

[Lord Shipley (LD)]

My Lords, I listened carefully to the Minister’s reply on my amendment, in which she said that there are clear metrics. I wish to disagree. We learned a moment ago that there is no rural-proofing in the metrics. Indeed, if one takes bus services as an example, the metrics talk about the

“average excess waiting time for frequent (bus) services … the percentage of non-frequent bus services running on time”,

and so on. The metrics actually need to ask: “Is there a bus service at all in my area?” So I do not accept, I am afraid, that the metrics are clear.

My amendment would help to solve the problem of having a standard so that trend analysis can be done on the metrics. If the Government can change metrics, that can make it difficult to achieve sustainable, long-term trend analysis. My amendment would meet that problem; I very much hope that the House agrees. I therefore beg leave to test the opinion of the House.

--- Later in debate ---

[Lord Shipley (LD)]

My Lords, I have learned a lot in the last 10 minutes. I did not know all of that detail.

[Lord Hunt of Kings Heath (Lab)]

There is more.

[Lord Shipley (LD)]

Well, I just hope the Minister might be able to put our minds at rest. The word “gerrymandering” springs to mind. I sincerely hope the Minister can allay any concerns we might have about that. I think the words “sham consultation” were used. I hope the Minister will be able to put our minds at rest on that. It might be helpful if she just said that there was no truth in these rumours at all and that there will not be any overfast consultation on this matter.

That leads me to say that, although I am not a signatory to Amendment 53A, I very much support it. I hope the Minister will be able to explain a little more what the Government’s thinking is on that. However, I am a signatory to Amendment 52. This is all related; there is a serious issue to address. Had I realised that this was going on when I signed Amendment 52, I would have signed Amendment 53A as well.

I have three amendments in this group, Amendments 37 to 39, which would all do the same thing. I will keep this very short because I have no intention of pressing anything to a vote, but I am still surprised that the Government have these clauses in the Bill. I have never understood them. Those of us who have been in combined authorities or have worked in or around them, sometimes with mayors, know that the public have got used to the title “mayor”. I want to eliminate these clauses because the titles that the Government propose as options are confusing to the general public. The reason given comes at line 25 of page 35 of the Bill, which says that the CCA can consider having a title that it feels is more appropriate than other titles that are offered as options,

“having regard to the title of other public office holders in the area of the CCA”.

I recall the Minister explaining in Committee that that was because there were other public officeholders called “mayor”: the mayor of a county, or a lord mayor. Those areas that have been working with the mayoral model for a combined authority for some time have got used to it.

I find the alternative titles offered in Clause 40 confusing. The mayor could become a “county commissioner”, which is used in other countries but is not part of British constitutional thinking. They could be a “county governor”. Of course, if these are combined counties, presumably they would be the governor of two counties. Equally, you could have a “governor” without their being a “county governor”. I find this very confusing.

[Lord Hunt of Kings Heath (Lab)]

My Lords, perhaps Mr Street could be called the Governor-General?

[Lord Shipley (LD)]

Governor-General of the West Midlands—there, my Lords, is a thought. We are now starting to laugh, and I think there is a danger here that the general public will just not understand what all these titles are for. I would immediately say a school governor, a prison governor or the governor of a US state. We can think of various possibilities, but a governor of a combined county? I really do not think that fits with the structure of local and subregional government that we are talking about.

Under Clause 40(2)(c) the title could be “elected leader”. This is very strange, because councils have leaders and those leaders are elected—so I am not clear what the difference is between the “elected leader” of a CCA and the leader of a council. The constituency may be different: that is, it is the whole electorate for the mayor, but for the leader it is the councillors of that council who have to vote to elect that person as the leader of the council as well as leader of the group. This is getting too confusing.

The next thing could well be that if a mayoral CCA is entitled to call its mayor something else, can other combined authorities that have been in existence for a number of years change the title of their mayor? I just do not know why we are going down this road at all. I just say all that to the Minister. There may be something that I have not thought of that she can alleviate my concerns with, but I just wish that this clause and the associated clauses would just go away. It is not something that I want a vote on; I just hope that I will not have to stand up when the statutory instrument comes through for the creation of a CCA and ask why it is that the name has altered to something like a “county commissioner”, which the general public do not comprehend.

[Baroness Scott of Bybrook (Con)]

My Lords, Amendments 25, 27, 35 and 53, tabled by the noble Baroness, Lady Hayman of Ullock, regard the boundaries and memberships of CCAs and combined authorities. The Bill includes our intended criteria for establishing and changing boundaries of CCAs and CAs in Clauses 44, 46, 62 and 63.

Proposals to change the area of a combined county area are generated locally in line with our principle of locally led devolution. The process to propose a boundary change must include a public consultation being undertaken. The Secretary of State has to assess any such proposals, including the results of the consultation, against a set of statutory tests and will consent to making the requisite secondary legislation only if they are content that the statutory tests are met. The legislation is therefore subject to a triple lock of agreement from the Secretary of State, the consent of the local area and parliamentary approval. I think it is important that we look at that as a triple lock.

Any proposal from the local area has to demonstrate that it will improve the economic, social and environmental well-being of some or all of the people who live and work in the area, suitably reflecting their identities and the interests of local communities, and will deliver effective and convenient local government. As such, the expansion of a CCA or CA cannot be pursued for political advantage. It must benefit the local area.

Levelling-up and Regeneration Bill

Lord Shipley Excerpts

Report stage
Thursday 13th July 2023 Lords Chamber

Moved by

[Lord Shipley]

26: Clause 8, page 8, line 4, leave out paragraph (f)
Member's explanatory statement
This amendment would ensure that the duty to allocate seats to political groups to the executive of a CCA or to a committee of such an executive would continue to reflect the requirement for political balance defined in the Local Government and Housing Act 1989.

[Lord Shipley (LD)]

My Lords, I shall speak also to Amendments 30, 31 and 43 in my name. On Tuesday, I spoke on Amendment 51; I share the concerns expressed on that occasion by the noble Lord, Lord Hunt of Kings Heath. I am a signatory to that amendment, in the name also of the noble Lord, Lord Bach.

I have a particular concern in relation to Amendment 30. I should give the Minister notice that, assuming that the response I get is similar to the one I got in Committee, it is my intention to test the opinion of the House.

On Amendment 26, I expressed concern in Committee that the Local Government and Housing Act 1989 will be disapplied in so far as political balance is concerned on a combined county authority. All this group is about power structures in combined county authorities. Some of the proposals in the Bill are worrying because they will centralise power within a CCA. The disapplication of the Local Government and Housing Act 1989, because it eliminates political balance on a CCA, could lead to dominance by one party in the combined county authority and encourage a further centralisation of power.

I also have a concern about centralisation of power away from CCAs into the Treasury. With Amendment 43—I raised this matter too in Committee—I am concerned that, in terms of the Government’s ambitions for devolution, of which a great deal is claimed, no further devolution of fiscal powers is planned that I can see. For example, in the recent West Midlands deal, there is provision for the collection of local business rates locally for 10 years, but other fiscal powers are missing from that devolution agreement. I therefore have a concern in respect of Amendment 43 as well. I do not plan to test the opinion of the House on it but I hope that the Minister will understand that it is important to have a system for power structures that will stand the test of public scrutiny. I fear that these do not.

The noble Baroness, Lady Taylor of Stevenage, has two amendments in this group. I shall say nothing about those other than these Benches will support her if she decides to seek a vote on either Amendment 28 or Amendment 29.

Amendment 31 raises a fundamental issue of principle that the amendments in the name of the noble Baroness, Lady Taylor, also address: the concept of a non-constituent member of a combined county authority. That is a body, not an individual member; I will come to associate members, which are about individuals, in a moment. It refers, of course, to district councils. My Amendment 31 tries to make it clear that, where a council is the local planning authority, it really ought to be a full member of a CCA. I do not understand why that principle is opposed by the Government. I can hear the objection to what I am saying, which is, “Well then, a county will be dominated by the districts”, but there is a power in the Bill to organise a voting system, weighting it appropriately by population, to solve that problem. As a matter of principle, a district council that is a local planning authority should not be excluded from full membership of a CCA.

I move briefly on to Amendment 30. As I have said, I have a concern about the centralisation of power. There should be a principle, understood and agreed by all parties, that voting members in a CCA should be full members of the CCA and not part-time or temporary members. For that reason, I am in favour of non-constituent councils being full members of a CCA, which I have tried to explain in the context of the local planning authority.

Amendment 30 in my name seeks to prevent one party with majority control of a CCA appointing individuals as associate members then giving them a vote when those individuals are not full members of the CCA. I cannot think of any parallel. I understand why there may be a category of associate member; what I have not understood is why a CCA would have the power to permit an associate member, an individual, to have a vote on an issue. I raised this matter in Committee. The noble Earl, Lord Howe, will forgive me if I quote to the House what he said on that occasion because I got very worried about this. He said:

“For instance, a combined county authority may have provided for an associate member who, for example, may be a local business leader or an expert on a local issue to enable the member’s input on matters on which they have relevant expertise in the CCA’s area”.—[Official Report, 27/2/23; col. 113.]

--- Later in debate ---

[Earl Howe (Con)]

I simply remind the noble Lord, in answer to his first point, that there has to be a public consultation. That is when the views of all interested parties can be taken into account. Retaining the present arrangements, which I guess the noble Lord would like to do, could mean that the expansion of a combined authority—where the evidence shows that would be likely to improve outcomes across the proposed whole new area—could end up being vetoed by one existing constituent council if the combined authority’s local constitution requires unanimous agreement from its members on this matter. That could happen, irrespective of support from the potential new member, the mayor and the great majority of constituent councils.

I hope the noble Lord appreciates why these provisions are framed as they are. I know that he believes there is an underlying malign motive. Again, I emphatically repudiate that idea. The current regime acts as a barrier to the expansion of an existing combined authority, even when there is a clear economic rationale in favour of it. The Bill will make it less difficult for combined authorities to expand into more complete and stronger economic geographies. For that reason, I ask him not to press his amendment when it is reached.

[Lord Shipley (LD)]

My Lords, I am grateful to the Minister for his reply. He has not allayed my concerns about the dangers of greater centralisation of power in a CCA, and I am unconvinced by his argument about local planning authorities. I still think that a district council which is a local planning authority ought to have an absolute right to membership of a CCA. It should not be at the discretion of existing members of a combined authority. We may come to that issue in a moment, but for the time being I beg leave to withdraw Amendment 26.

Amendment 26 withdrawn.

--- Later in debate ---

Moved by

[Lord Shipley]

30: Clause 10, page 9, leave out line 35
Member's explanatory statement
This amendment seeks to ensure that only full members of a CCA would have the right to vote.

[Lord Shipley (LD)]

My Lords, I find myself unconvinced by the Minister’s reply on associate members’ right to vote. I wish to test the opinion of the House.

--- Later in debate ---

Moved by

[Lord Shipley]

32: Schedule 1, page 280, line 33, leave out “at least one member of an audit committee is” and insert “a minimum of three members of an audit committee are”
Member’s explanatory statement
This amendment would help ensure a strong presence of knowledgeable, independent persons on an audit committee thus avoiding too great a dependence on members of constituent councils.

[Lord Shipley (LD)]

My Lords, I have two amendments in this group. It is not my intention to speak at length about them or to test the opinion of the House.

I have a great concern about the role of audit. I do not think that the existence of Oflog is sufficient to address the problems that we have experienced recently around processes in local government being inadequate to prevent excessive expenditure—particularly capital expenditure—which has spiralled out of control. There is a big issue for local authorities and combined authorities to address in terms of their ability to undertake an audit effectively. We are aware that a number of local authorities have not had their audits signed off for some time. There seems to be a capacity problem across local government in terms of the audit function.

All that said, my amendment is not a matter on which I will divide the House. I just hope that Ministers will try to address the issue of capacity in the audit function on audit committees where they exist. There will be audit committees for a CCA. I would like to think that enough expertise will be there to do the job properly. Simply to have at least one member is not enough. I have proposed a minimum of three. This is very important. When councillors are members of an audit committee, they have many demands on their time. What is required is a more professional focus of those who are trained in the area.

The second amendment relates to the ability of an audit committee, where it exists, to publish a report. At the moment, it is required to report to the CCA. I do not know what will happen if the CCA decides that it does not like it or does not want to publish it. Does the CCA have the power to prevent publication? I hope to hear from the Minister that something can be done to reassure me that an audit committee of a CCA can publish a report, even if the CCA does not wish it to do so, where the audit committee believes it to be in the public interest.

These two amendments are as simple as that. I am very happy for the Minister to take the issue away, to see what might happen when some of these statutory instruments start to come through your Lordships’ House. I beg to move Amendment 32.

[Baroness Hayman of Ullock (Lab)]

My Lords, I shall be very brief. I want to express our support for the amendments of the noble Lord, Lord Shipley, and to reiterate our concerns around audit and Oflog and how that will operate within its responsibilities. We need to ensure that there is a sufficient set-up to deal with the huge problems facing local authorities regarding audit. We know that some authorities have not had an audit for years, so this is clearly a real problem. We thank the noble Lord for tabling the amendments and hope that the Minister and the department will look carefully at his concerns and constructive suggestions, as we really need to resolve this issue.

[Earl Howe (Con)]

My Lords, Amendments 32 and 33 in the name of the noble Lord, Lord Shipley, seek to increase the transparency of CCAs. Greater functions and funding must come with strong accountability, but that must go hand in hand with decisions being made at the most local level possible. I can deal with this quite briefly and, I hope, to the noble Lord’s satisfaction.

As the Bill is drafted, a CCA’s audit committee can appoint three independent members, should it wish to, but it should be a matter for the CCA to decide exactly how many above one. The regulations that will establish the combined county authorities will set out the audit committee arrangements. They will provide that, where practicable, the membership of the audit committee reflects the political balance of the constituent councils of the combined county authority. Membership may not include any officer from the combined county authority or the combined county authority’s constituent councils. The regulations will provide for audit committees to appoint at least one independent person.

As regards transparency, in addition, Part VA of the Local Government Act 1972 provides powers to require the publication of reports of a committee or sub-committee of a principal council, including audit committees. Schedule 4 to this Bill already includes a consequential amendment to apply Part VA to CCAs.

I hope that that is helpful. The noble Lord has already kindly said that he will not press his amendment, but I hope that what I have said will reassure him.

[Lord Shipley (LD)]

I thank the Minister for his assurances. I think there may be a way forward here—I hope very much that, at the very least, we will have strong guidance. When the statutory instruments come before the House—assuming that they do—I hope they will ensure that the ability to have three members is translated into having three, as opposed to having at least one person. There has recently been developing concern among the public as to what has happened in some local authorities whose audit systems simply do not seem to be strong enough to prevent capital investment going wrong. With that, I beg leave to withdraw the amendment.

Amendment 32 withdrawn.

Levelling-up and Regeneration Bill

Lord Shipley Excerpts

Report stage
Thursday 13th July 2023 Lords Chamber

Devolution is a process, not a moment, and the country continues to see the model evolve and the benefits it brings. Let us take that on to its next steps and give local authorities all the powers and encouragement they need to do their best to deliver everything, everywhere, if not quite all at the same time.

[Lord Shipley (LD)]

My Lords, my name appears on Amendment 62 in this group. I am grateful to the noble Baroness, Lady Taylor of Stevenage, for referring to the debate I moved a few weeks ago on the importance of local government and of renewing it, reviving it and devolving more to it.

The problem is that the Government think that they are doing devolution within England, but they are not; they are effectively replacing with combined authorities, combined counties and mayoral combined authorities all the different forms we had of devolution, such as the regional development agency structure that we had until some 11 years ago. We have seen the problems caused by the fact that no comparable structure exists. The combined authorities are effectively doing spatial planning, strategic housing policy and strategic transport policy, but what we have not got is devolution to local government. The amendment moved by the noble Baroness, Lady Taylor of Stevenage, is terribly important; I could add to the list in subsection (2) of the proposed new clause—we could all do that.

Subsection (3) of the proposed new clause really matters. It states:

“The Bill must also include provisions for a new framework of cooperation between local authorities and the Government based on mutual respect”.


I think that is really important. What we have at the moment is an attempt by the Government to run England out of Whitehall, and it simply cannot be done with 56 million people in England; it must be done through devolved structures.

So far, with the replacement of the regional development agency structure, in practice what we have is now a hub-and-spoke model in which schools are effectively being run through a regional structure and, more and more in Whitehall, one can see structures being created which are its attempt to manage the delivery of services across England. Whitehall is undertaking the management of services—as opposed to the policy which underpins those services, which is the role of Whitehall in the main—when it should not be managing the delivery of the service.

That met a major problem with Test and Trace. You simply cannot operate something as big and fundamental as that centrally out of one of the Whitehall departments. I hope the Government will understand that this really matters. It is not just a question of fair funding, money or, indeed, powers in some areas but about a fundamental reset of the relationship between central and local government across England.

If there were to be a change of government, I really hope that I would hear from the Opposition Front Bench that they would keep to the commitments that they have prioritised, that the new Government would do the same thing by producing a devolution Bill within 120 days of being elected, and that that would

“include provisions for a new framework of cooperation between local authorities and the Government based on mutual respect”.

We are here having a preliminary debate about what might happen over the next two or three years, but I sincerely hope that the Government understand the seriousness of this situation. With all the funding problems there are now, I do not think the situation can last that much longer.

[Earl Howe (Con)]

My Lords, Amendment 62 from the noble Baroness, Lady Taylor of Stevenage, seeks to place a requirement on the Minister of the Crown to publish a draft devolution Bill within 120 days of this Bill gaining Royal Assent. I understand and agree with noble Baroness’s desire to ensure that local authorities can request powers from central government. However, this is already possible for any principal council under our existing devolution legislation. Any such council could ask for functions to be conferred on it, and the Cities and Local Government Devolution Act 2016 provides that public authority functions can be conferred on local authorities by statutory instrument where the statutory requirements are met. These include consent from the local authority and approval from Parliament.

The devolution framework in the levelling up White Paper sets out our policy offer. It provides a comprehensive menu of options for devolution within a functional economic area or whole-county geography, underpinned by four key principles. The options are multifarious, whether that is moving towards a London-style transport system to connect people to opportunity, improving local skills provision, or being able to act more flexibly or innovatively to respond to local need. There is not a one-size-fits-all approach to English devolution, and areas will want to choose the right model for them.

There is no need for this to be set out in a new Bill: these functions all already exist in primary legislation and, as I said, can be conferred on a local authority via secondary legislation under the 2016 Act. I hope that that is of some help to the noble Baroness and that she will not feel the need to move this amendment when it is reached.

--- Later in debate ---

[Baroness Hayman of Ullock (Lab)]

My Lords, we have one amendment in this group, on the fair funding review. The review document was first published some time ago, back in December 2017. We are concerned that virtually nothing has happened in those five, nearly six, years to bring about its implementation.

We know that local government needs its core funding to have long-term security in order to make proper budgetary decisions and to ensure that it can meet all its obligations. So, the fact that reforms to local government funding have been delayed time and again is of great concern. We are particularly concerned now—we were initially told that they were being delayed until April 2023, but they now seem to be delayed beyond the next general election. For some authorities, the delay will simply postpone an inevitable reduction in funding, which is concerning in itself, but for others it could mean waiting up to at least two more years for funding to come close to catching up with their needs.

I stress that what we are talking about here is the critical core funding; it is not related to the other different pots the Government have for councils to bid and apply for. It is the central, critical core funding that councils receive.

What is the Government’s expectation about when these funding reforms will be implemented? Is it going to be in 2026-27? Is it likely, by any chance, to come in earlier, or could it even be later? It is important that local government has some sort of clear idea about when to expect it. Is the Minister able to give any oversight on the factors likely to govern and influence the timing of implementation? What kind of package of funding reforms is currently under consideration within the fair funding review?

Given that it has been quite a long time—more than five years, coming up to six—do the Minister and his department believe that the proposals which came out then are still fit for purpose? Are they flexible enough to deal with the shifts in available data and the different council service models that have come forward as a result of Covid-19? There have been quite a number of changes and responses to the pandemic.

We tabled this amendment because we feel that the Government need to act urgently in this area and to basically just get on with it. Our amendment would ensure that within a year of the passing of this Act, the Secretary of State must publish the fair funding review, which would include setting out the baseline funding allocations for local authorities. We believe this is necessary to bring to an end so much uncertainty for local authority budgeting and to allow our councils to plan and deliver the services our communities need. I look forward to the Minister’s assurances.

[Lord Shipley (LD)]

My Lords, my Amendment 66 would repeal Section 13 of the Elections Act 2022. Its aim is to reinstate the supplementary vote system for police and crime commissioners in England and Wales, the Mayor of London, combined authority mayors and local authority mayors in England. I said earlier today that there was an excess of centralisation in this Bill and other structures that have been created around combined authorities.

Levelling-up and Regeneration Bill

Lord Shipley Excerpts

Report stage
Wednesday 6th September 2023 Lords Chamber

There is a lot of good in this group of amendments, and I am very glad that we have been able to discuss them this evening.

[Lord Shipley (LD)]

My Lords, the noble Earl, Lord Lytton, has made a very important point about Amendment 204A, which I will speak to, as well as Amendment 204B tabled by the noble Baroness, Lady Andrews. I spoke on those amendments in Committee, and wish to do so again. The point that the noble Earl made is important because Amendment 204A calls for a public consultation. I think there would need to be one, given the potential scale and scope. I think that point has been taken; there have been discussions as to whether you might take 1948 as the date. It could be that you take a much earlier one, in the Victorian or pre-Edwardian period; you might wish to consider that. There needs to be a debate about that very issue, so I take the noble Earl’s point.

Nevertheless, I strongly support the principle behind Amendment 204A and the detail of Amendment 204B, as I did in Committee. It is particularly important now because of the huge public interest in the way that demolition is permitted development, enabling buildings of local historical value to be knocked down. The example of the Crooked House pub has really energised public opinion, and I very much hope that we hear something from the Minister that would be helpful in preventing that sort of situation arising. That would lie in Amendment 204B, because it would

“remove permitted development rights relating to the demolition of a heritage asset which has been placed on a local planning authority’s local list of assets which have special local heritage interest”.

It is clear to me that, in the case of the Crooked House, that would apply, but of course it would have to be placed on the local list.

I am grateful to the Minister for the meeting we had just before we went into recess, when we discovered that quite a lot of local planning authorities do not have local lists. Of course, you need to have a local list if you are to use it. One of my motives now in supporting Amendment 204B is that it may encourage many more to have local lists because, as the noble Baroness, Lady Andrews, said, not everything that you want to protect will be nationally listed. It is not like that, and yet many buildings have strong local support.

This is a way forward that would not be a bureaucratic scheme but would give local control. It could be led by civic society; it would not have to be done by the planning departments. The authorisations and so on with committee approval would have to be done by them, but you could use voluntary organisations to do a lot of the work in identifying the buildings that should be protected.

The point here is that we have a dysfunctional system. The noble Baroness, Lady Andrews, said that we have a gap in the law. We do. The current system is dysfunctional, and I think the general public have now acknowledged that fact. I hope the Minister is going to take advantage of the huge opportunity that he has now been given and that, when he replies to the House, we will hear something hopeful.

[Lord Carrington of Fulham (Con)]

My Lords, I add my support, as I did in Committee, to Amendment 204A by the noble Baroness, Lady Andrews, and, with a little more reluctance, to Amendment 204B, which is a compromise that is better than nothing but not as good as the original amendment.

We discussed this amendment considerably in Committee. I spoke on it then and do not intend to repeat what I said. However, it is important to remember that what we are talking about are not buildings and structures that are listed or currently protected but those that fall outside the normal protection system, though they nevertheless have streetscape value and are important, given their location and interaction with the buildings that surround them. They are also buildings that people feel emotionally attached to and which have a historic significance in the local community.

Why are those buildings under threat? Because if you are a developer and you buy a property that is going to be more valuable if you can rebuild it, the first thing you will do is to knock it down. You then have a vacant site—ideally, from the developer’s point of view, in an eyesore location—and you can then go to the planning department of a local authority and say, “I want to build this building that you do not like but which would replace an eyesore that I have created. Give me my planning permission, please”. Sadly, that happens all too often.

The noble Baroness, Lady Andrews, mentioned the Crooked House pub in the Black Country. Curiously enough, I know the Black Country rather well. That type of building is very common in the Black Country—there are a lot of them that look like that. A lot of those have been destroyed, but they have a local community value for the very closely structured communities in the Black Country that have been there for several hundred years.

As I understand it, the Crooked House pub was up for listing. It is quite clear that, if you are a developer and you buy a building that is up for listing, you are likely to get it cheaper than if it were not up for listing, because other potential purchasers will look at it and say, “I won’t be able to do what I want to do to maximise its economic value if it’s listed”. So you as a rogue developer buy the property; then, under permitted development, you knock it down so it cannot be listed. You have bought it cheap so, when you redevelop it, your profits are that much bigger. The current system actually encourages you to behave in an outrageous manner. That is the problem.

Levelling-up and Regeneration Bill

Lord Shipley Excerpts

Report stage
Wednesday 13th September 2023 Lords Chamber

Moved by

[Lord Shipley]

247YYE: After Clause 218, insert the following new Clause—
“Second homes for council tax purposesThe Secretary of State may by regulations permit, through a licensing scheme, local authorities to set a limit on the proportion of dwellings which, at the point of sale, become second homes for council tax purposes.”

[Lord Shipley (LD)]

In moving Amendment 247YYE, I will speak also to Amendment 288B; both are in my name and that of my noble friend Lord Foster of Bath and relate to second homes. They would give a power to the Secretary of State by regulation to permit local authorities, through a licensing scheme, to set a limit on the proportion of dwellings which, at the point of sale, become second homes for council tax purposes.

We have heard about deal on Report on the Bill about the housing crisis, not least a crisis in the availability of truly affordable homes. Government data shows that 7,644 social homes were built in England in 2021-22, while 24,932 were sold under right to buy and 2,757 were demolished. The crisis is particularly bad in rural and coastal areas.

In 2019, the Rural Economy Select Committee, chaired by my noble friend Lord Foster of Bath, noted that, in rural areas, house prices—and so, in turn, rents—are higher than in urban areas, while incomes are lower. That disparity is widening. In Cumbria, for example, average house prices are 12 times average household incomes. As a result, it is ever harder for people of working age to live and work in rural and coastal areas, with an inevitable impact on their local economies.

There are three principal causes: too few genuinely affordable homes being built; second homes taking over full-time residential homes; and, the most rapidly increasing problem, short-term lets taking over the long-term private rented sector. In Cumbria, for example, there are currently 232 long-term rental properties available, compared with 8,384 short-term lets.

My noble friend Lord Foster of Bath, who is unable to be here today, lives in Suffolk, close to the popular seaside town of Southwold. With the recent growth in second home ownership and the rapid rise in short-term lets, of the 1,400 properties in Southwold, only 500 have full-time residents, while 500 are second homes and 400 are short-term lets. Two-thirds, therefore, are not permanently lived in.

House prices and long-term rents have risen steeply. Local families are being forced out and those working in the local tourism industry cannot find or afford local accommodation. As a result, many of the bars, restaurants and hotels now have staff vacancies. As a local councillor said recently, soon people will not

“want to visit the soulless toy town where no one lives any more”.

In Committee, my noble friend Lord Foster of Bath and I proposed amendments to address the issues of short-term lets and second homes. In particular, we proposed separate use categories for both. Other noble Lords also addressed these issues, with a range of similar proposals. In response, the Government promised to take action. Indeed, as a result, consultation has been taking place on proposals to introduce a short-term let registration scheme, which would allow councils to apply health and safety regulations across the guest sector.

Consultation has also been taking place on establishing a separate use class, C5, for short-term lets. I welcome these proposals and the intention of using permitted development rights so that areas of the country where short-term lets are not an issue are not impacted. Where they are, a planning application will be required for change of use to a short-term let and councils can decide whether, given local circumstances, it should be approved.

Clause 218 of this Bill provides for the implementation of the registration element of these proposals. These Benches welcome the proposals and hope they will be implemented quickly. However, this completely ignores those second homes not being used as short-term lets. They should be known as “second homes for council tax purposes”. On the latest figures, there are some 257,000 such properties in England; although not as rapidly as short-term lets, the numbers are growing year on year.

I expect that the Minister will point to the way in which neighbourhood plans can be used to address this issue and the new power for councils to further increase council tax on second homes. While undoubtedly welcome, these measures do not give affected local councils sufficient powers to address the problem. Can the Minister explain why the Government, having belatedly agreed to address the short-term lets problem, are failing to do the same for the second home problem?

The two amendments in this group in my name and that of my noble friend Lord Foster of Bath propose a solution. We could have adopted a similar approach to the one the Government have proposed for short-term lets and if, in response, the Minister suggests the Government plan to explore that route, we will be happy to support it. However, following a substantial discussion with local councils and councillors, we propose a new approach: a licensing approach available for those councils which choose to adopt it.

It is a simple approach. By restricting its application to the point of sale, it does not impact existing homes. We recognise that it would require a person seeking to buy a property to be used as a second home—not intended to be a short-term let—to conduct inquiries into the likelihood of a council agreeing to a licence. That is no more onerous than many other pre-purchase searches and no different to that required for a use class order change to short-term let. But it would give much-needed powers to councils which face problems caused by second homes. I hope the Minister is in listening mode on this matter.

Finally, on second homes and council tax, can the Minister explain what steps the Government will take to resolve their failed attempt to close the tax loophole? For some years many of us have been drawing attention to the situation whereby second home owners avoided paying either council tax or business rates. They did this by claiming their property was available for rent—and so eligible for business rates—but then ensured that little rental took place and so the business income fell below the threshold, so no tax was paid.

Last January, so-called tough new measures were introduced for eligibility requirements: making the property available for rent for 140 days a year and proving it had been for at least 70 days. However, as the Daily Telegraph reported earlier this month:

“Holiday let council tax crackdown backfires—costing local authorities millions”.


The tough measures have not prevented more and more second home owners registering as a business and then claiming 100% business rate relief. Two years ago, 73,000 such properties were on the business rates list in England; the figure now stands at over 85,000. Can the Minister tell the House what further steps will be taken to address this problem? I beg to move.

[Baroness Taylor of Stevenage (Lab)]

My Lords, the percentage of second homes in so many parts of the country has had such a devastating impact on communities. We heard about that in great detail in Committee and had many examples from all sides of the House. We noted that it particularly impacts on rural and coastal communities. I am also concerned about the tax loophole and that so many second home owners avoid paying either council tax or business rates. This is clearly an anomaly and needs to be resolved.

The amendments in the names of the noble Lords, Lord Foster and Lord Shipley, would be an important next step in tackling this. We too welcome the licensing steps already taken but, if we are going to tackle this, we need to go one step further. We look forward to hearing the Minister’s response to the amendments proposed.

--- Later in debate ---

In my judgment, it is imperative that we allow time to assess the impact of the actions I have described that the Government have already taken. It is for that reason that we are resisting the amendment. However, I hope I have provided sufficient reassurance that we are already taking action to address the issues raised, and I hope the noble Lord, Lord Shipley, will feel able to withdraw the amendment.

[Lord Shipley (LD)]

My Lords, I thank the Minister for his reply, which was as I anticipated. It is clear that we are going to be returning to this issue again and again while the Government fail to build enough affordable housing for people to live in, particularly in coastal and rural areas under great stress. For the moment, though, I beg leave to withdraw the amendment.

Amendment 247YYE withdrawn.

Levelling-up and Regeneration Bill

Lord Shipley Excerpts

Consideration of Commons amendments
Monday 23rd October 2023 Lords Chamber

[Lord Foster of Bath (LD)]

My Lords, I shall speak briefly to Motion D, which relates to rural issues, and my concern about the absence of rural issues in the Bill. Indeed, at Second Reading I made reference to this issue and pointed out the enormous disparities between urban and rural communities. I gave a range of examples from the way in which, for instance, housing costs are higher and yet wages are lower, to that the cost of delivering services such as education, health and policing is higher, yet government funding is lower. There were many other examples. These disparities have been referred to in your Lordships’ House and the other place on many occasions over very many years. Indeed, proposals were made several years ago by the noble Lord, Lord Cameron of Dillington, and were responded to by the then Secretary of State, Liz Truss, who said:

“This Government … is committed … to ensuring the interests of rural communities and businesses are accounted for within our policies and programmes”.


More recently, I had the opportunity to chair your Lordships’ special Select Committee on the Rural Economy. Again, we made a number of proposals, in response to which the Government said:

“Without doubt, these distinct characteristics”


of rural areas

“must be recognised in policy making and the government believes that rural proofing is the best”

way of doing it.

The most recent handbook on how to carry out rural-proofing—the Government’s Rural Proofing: Practical Guidance to Consider the Outcomes of Policies in Rural Areas—makes it abundantly clear that the rural-proofing process must take place before the presentation of legislation for consideration in your Lordships’ House and the other place. Yet, looking through the Bill as it was presented to us, I saw an absence of any reference to the distinctive nature of rural communities and the differences between them and urban communities. I also saw no evidence that a rural-proofing process had been done in advance of the Bill being presented to us. So, with the support of the noble Lord, Lord Carrington, I proposed a couple of amendments.

The first said that, in developing the mission statements, the Government must have regard to the specific needs of rural communities. That has been rejected time after time at various stages in the passage of the Bill. However, as we have just heard from the Minister—I am enormously grateful to him for the meeting that we had to discuss this issue—the Government have now conceded that amendment. It is now to be included within the Motion brought forward by the Minister. Again, I am enormously grateful to him.

My second amendment proposed that evidence of rural-proofing should be presented to your Lordships’ House before the Bill is able to be enacted. That has been rejected and, as we have just heard from the Minister, it is to be rejected again. In his opening remarks, the Minister said that I need not be concerned because there is clear evidence that the Government have gone through a rural-proofing process in relation to all government legislation. I will not argue with the Minister, but I gently say to him that, when independent experts have looked at this matter—for instance, the Rural Services Network looked at the most recent government report on rural-proofing—they have made it absolutely clear that, in their view, there is no evidence of rural-proofing processes having been carried out. There are a lot of mentions of some good things that the Government are doing to support rural communities but not of a specific process having been carried out. The precise conclusion of the Rural Services Network was:

“Nowhere … is anything evidenced anywhere to show if these processes were followed”.


I will take the Minister’s word for it that he has been given total assurance that this procedure was adopted for the passage of the Bill. For that reason, I will not press and have not put down an amendment to repeat what my earlier amendment said. But it would be enormously helpful if, for the sake of those of us who are still somewhat sceptical, he could provide written evidence of the procedure having been carried out.

As I have said, I am enormously grateful that—through the amendment he has brought, repeating the one I originally proposed—we now have reference in the Bill that the specific needs of rural communities will be taken into account in drawing up the mission statements. I am enormously grateful for the work he did to ensure that this happened, so I end by once again expressing my thanks to the Minister.

[Lord Shipley (LD)]

My Lords, I will make a brief comment in response to the Minister’s Motion C in relation to Amendment 3, which I moved on Report. I want to put on the record that I understand the line that the Government have taken. It is difficult to make statutory geographical disparities. What matters is the assurance that the Minister has given on that issue. It will really matter, in respect of policy formulation to address geographical disparities, for the evidence to be constantly collected to identify what those disparities are. I accept the assurances that the Minister has given and I have no intention of pursuing the matter further. I am grateful to the Minister.

[Baroness Pinnock (LD)]

My Lords, I remind the House that I have relevant interests as a vice-president of the Local Government Association and as a councillor in West Yorkshire.

I will speak specifically to Motion B1 in the name of the noble Baroness, Lady Lister of Burtersett. The finest achievement of the levelling-up Bill could be putting the reduction of child poverty and health inequalities at its heart. After all, it is levelling up that we have been talking about during the many hours that we have debated the Bill. Unfortunately, the government amendment fails to make it absolutely specific that that is what the Bill is going to try to achieve.

--- Later in debate ---

[Lord Shipley (LD)]

My Lords, I agree entirely with the noble Lord, Lord Bach, and if he decides to press this matter to a vote, he will have the support of these Benches.

I remind the House that I am a vice-president of the Local Government Association. I want to comment on Motion G, which related to Lords Amendment 14 on Report. On the issue of associate members who are co-opted to a CCA and could have been given the right to a vote by the existing members of the CCA, I am very glad that the Minister has made it clear that the Government have had a change of heart on that matter. I record formally that I am content with Amendments 14A to 14R which the Government are now moving at this stage.

I want to ask for reassurance from the Minister on non-constituent members. Some clarity is needed on the role of district councils. In a letter to the leader of South Cambridgeshire District Council dated 17 October, the Levelling Up Minister said

“we remain of the strong view that combined county authorities must engage all relevant stakeholders and we would wish for district councils to have voting rights on issues pertaining to them”.

The letter goes on to say that

“we expect devolution deal documents to set out the involvement of district councils”

but that these matters

“must be established at a local level”.

I understand the argument that the Minister is making, but it would be very helpful if he could confirm at the Dispatch Box that that letter is absolutely accurate and that, given the Government’s refusal to accept Amendment 13B in Motion F1, it is a firm statement of the Government’s intention.

[Lord Lexden (Con)]

My Lords, I have one comment in relation to the amendment tabled by the noble Lord, Lord Bach. He has made a very powerful case for believing that, in this instance, proper democratic standards are not being upheld. The House should take note of that.