Localism Bill

Lord Shipley Excerpts

Monday 20th June 2011 Lords Chamber

[Lord Shipley]

My Lords, I support the amendment moved by my noble friend Lord Greaves because I believe that defining the principles and the culture of this Bill matters profoundly to our understanding of the debates that we will have on each of its parts. I declare my interest as a member of Newcastle City Council.

The coalition agreement is helpful because it underpins where the Bill has come from. It says:

“The Government believes that it is time for a fundamental shift of power from Westminster to people. We will promote decentralisation and democratic engagement, and we will end the era of top-down government by giving new powers to local councils, communities, neighbourhoods and individuals”.

That is a powerful, clear statement and it should be the test by which we examine the Bill in Committee. However, I think that it would help us to have a closer definition of terms. The definition of “local councils” is clear to us all, because local councils have a statutory role. However, a community can be both a community of interest and a community of place and it is important that we do not confuse the two. Neighbourhoods are clearly places; one or more neighbourhoods, when joined together, make a community. Ultimately, neighbourhoods form the electoral base—the ballot box base—on which democratic decisions can be made. Those neighbourhoods joined together create a ward, through which councillors are elected. As for individuals, these are the people who work in, live in or visit the area, but I think that this predominantly relates to those who have a vote and therefore are residents in their council area.

My noble friend Lord Greaves talked about the importance of the principle of subsidiarity and devolving decision-making to the lowest level possible. I hope that we would all agree with that aim. One of my worries, which I have expressed before in your Lordships’ House, is that we as a country are in grave danger of confusing localism with atomisation. Government and Whitehall departments create thousands upon thousands of little platoons. Those may be in the health service, schools or a whole range of organisations operating at a local level, but they are not co-ordinated by their local council—they are not strategically led by a democratically accountable body. They are run in and out of Whitehall and they are not ultimately accountable to the test that I said should be applied—the ballot box. These issues of principle are vital, which is why I believe that my noble friend’s amendment is exceedingly important. It is about subsidiarity and the power of the ballot box—it may be through referendums or through the election of individuals—but it has to be about reducing, not increasing, the powers of the Secretary of State on local matters.

In Committee, we will come on to an interesting test. In the council tax referendum, people will have the power only to reduce the council’s recommended council tax. With true localism, there would be a power to increase council tax as well as to reduce it—that, too, should be the subject of a referendum if people want it to be. It also implies that we have got a representative system in place in which the ballot box can operate. We do in rural areas, through parish councils. It is a great deal more difficult in urban areas, where the only democratic system based on the ballot box is the ward in which councillors, one or more, have been elected. It is important, as we go through the Bill, to make sure that we tie that democratic accountability through the ballot box to the decisions that are being made. That is particularly important in discussions on planning matters.

Finally, I hope that all Whitehall departments will understand that they have to be integrated into the localism agenda. It will not be enough for DCLG to be the Whitehall department that is pressing the localism agenda along with local councils throughout the country if it then finds that other Whitehall departments wish to retain direct budgetary control and control through the atomisation of public services.

[Lord Ouseley]

My Lords, I welcome the discussion on this amendment, which gives us an opportunity to consider the guiding principles of this legislation. It is quite clear that there is much confusion in the Bill about what localism is and whether we are being offered localism or greater centralisation. The opportunities to shift power to the people, so to speak, may in fact be giving greater opportunities for those local groups that are already well organised and sufficiently competent to challenge local authorities and other local service providers. Therefore, it is important that we establish some understanding of the principles of the Bill, to try to remove some of those confusions as we consider the detail of the clauses, as we inevitably will—some to a greater extent than others.

I particularly welcome the amendment because, if we are genuinely going to shift power to people, it provides us with an opportunity to consider how we become much more inclusive. Paragraphs (b) and (c) in the proposed new clause offer us the opportunity to consider how we can ensure that all have the opportunity to share in the power that is being shifted to local people.

Secondly, we need to reinforce local democracy. The confusion in the Bill may almost enable us to weaken our current system of local government, whereas we should be looking to strengthen it. Local government is the one area where we have proper accountability, even if it is not as effective as it should be; there is no basis on which we are able to demonstrate that we are seeking to engage with people more, getting them to participate in those local democratic processes. In talking about localism, we miss an opportunity if we do not also look to engage people and strengthen local democracy by getting them to engage in the current processes.

If we are to establish a culture of inclusion as the amendment suggests, it is important that we state these principles right at the heart of the beginning of the Bill, so that we have them as a guide to facilitate our detailed consideration.