Localism Bill
Lord Shipley Excerpts(14 years, 8 months ago)
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Lord Shipley
Lord Shipley
My Lords, this group of amendments relates to scrutiny. In my view, scrutiny is best achieved by a committee system. A committee system is better at delivering good decisions than a scrutiny system which scrutinises those decisions after they have been made. In other words, you scrutinise as you go.
This is a probing amendment. As we do not have a voting system for local government in England based on proportional representation, some councils can have very large majorities held by one party. This may not be reflected in the votes that were cast but is very often reflected in the number of seats that are won. Good scrutiny requires constant challenge. Scrutiny committees are proportional in their overall membership but it would be advantageous for them to be chaired by a member of the authority’s largest opposition party.
Members of your Lordships' House are aware that I am a councillor in Newcastle upon Tyne. In 2004, when my party took control of Newcastle City Council, we altered the system to ensure that the Labour opposition chaired all our scrutiny committees. I am pleased to say that this year, when control of Newcastle reverted—temporarily, at least—to the Labour Party, chairmanship of the scrutiny committees passed to the Liberal Democrat opposition. Public scrutiny and public confidence in the system of local government would be improved if scrutiny committees were chaired by opposition councillors. That does not mean that a scrutiny committee has to be proportional in any regard other than the number of seats held by each party. However, public confidence in the system would be improved if the person constructing the agendas was an elected councillor of a party other than the one that was in control of the council. I beg to move.
Lord True
My Lords, I understand where the noble Lord is coming from but there are obvious difficulties with the amendment quite apart from whether or not it is tending towards prescription. For example, I recall a not very happy election in 1986 when I was one of three members of my party on our local authority—
Baroness Hanham
I will happily do that and I will lay a copy of the answer in the Library.
Lord Shipley
My Lords, before I formally withdraw my amendment, I would like to make two brief points. First, I agree entirely with my noble friend Lord True that in scrutiny there has to be a clear role for back-benchers, particularly those of the controlling party, but there can of course be vice-chairs, and that system works well. Secondly, I hope that the Minister is right that legislation here is unnecessary and will simply bear in mind my amendment should it prove not to be the case. I beg leave to withdraw the amendment.
Lord Beecham
My Lords, the amendment touches on the question of transparency and the openness to the public of meetings. It seeks to reflect what I understand to be the present position, which is that meetings are open unless council committees or executives decide to exclude the press and public, usually on grounds of confidentiality. This might be commercial confidentiality or sensitive staff issues and the like. The amendments in my name create a presumption that the meetings will be open to the public unless there are good reasons for not having them as such. Those reasons clearly would have to be enunciated. It is difficult to find a form of words that fully meets the case. The noble Lord, Lord Shipley, will speak to his amendments, which import the term “necessarily”. However, the question then arises of how one defines what is necessary. There is no simple answer, but it is important to have the presumption in the Bill if we can get it, and I look forward to hearing from the Minister in due course.
Lord Shipley
My Lords, I will speak to Amendments 53, 54 and 55 in my name. Each is a probing amendment to get confirmation from the Minister that there will be no deterioration in the access of the general public, the press and opposition councillors to meetings and to information. I seek that reassurance because, as the noble Lord, Lord Beecham, says, it is quite difficult to get the right wording. The overriding intention must be that there should be no deterioration in what currently pertains in local government for individuals—the public, the media or other councillors—seeking access to meetings and information. The Bill confers an awful lot of powers on the Secretary of State to make decisions in that area. I understand why that is, but I would be more comfortable if it was absolutely clear to the general public that there will be no diminution in their access to information and meetings.
Baroness Byford
Perhaps my noble friend would clarify the position. I would like to see a presumption that the meetings will be open, but obviously under certain circumstances access will be restricted. As things stand, it is a case of either/or; there is no presumption that open meetings will be the norm and that meetings held in private will be exceptional. Perhaps the Minister will comment on that.
Lord Shipley
My Lords, perhaps I may comment briefly on the standards issue, not least because I tabled an amendment yesterday about standards committees that unfortunately has been printed as part of the amendments to the Education Bill. Members of your Lordships’ House will, therefore, not have seen it. I fully understand the predicament that that puts us all in. However, this relates directly to what the noble Lord, Lord Beecham, said. Perhaps I may express some views on the Standards Board and standards committee issue.
For a number of years, I have been deeply concerned about the performance of the Standards Board and that whole standards structure. After a lot of thought about how you might actually make it work better, my amendment proposes a prescriptive way forward that might avoid some of the problems that we have experienced in recent years. We have had problems because the structures of the Standards Board for England and the standards committee under it have worked badly. There have been too many spurious references to it, often followed by detailed press interest in the accusation that has been made. There have been some very poor decisions, many of them reported in the media, and a number have been successfully challenged in the courts. There should not be a structure that ends up with successful challenges in the courts, in a quasi-judicial system, being pursued by local authority standards committees. People’s reputations are at stake here, and we have to do it a bit better.
However, the time is not right for a wholesale change in the standards system, because the general public have a right to expect that a council has a code of conduct, and, in my view, that should not be voluntary. It should be statutory and there has to be a standards committee that can look into any allegations or complaints that the code has not been followed. However, this is quite different from the register of interests and, for example, a failure to declare an interest. Indeed, a potential example was discussed a moment ago.
My solution is simply to propose that we might consider, between now and Report, a provision that a relevant authority should have a standards committee, but that such committees might be established jointly between relevant authorities, which is particularly important for parish councils. That is because the structure of a standards board for an individual parish council is hard to deliver. It would cost a great deal, for one thing. The role of the standards committee is to assess cases brought before it against the code of conduct of that relevant authority, but the membership must have a majority of independent members. They would be appointed against known principles, and have an independent chair. Those councillors who currently serve on such a committee, coming from their own local authority, would no longer do so, because otherwise there would be a real doubt in the mind of the general public as to whether there is any real or perceived bias in a judgment that is reached. I would have other members in a minority who have been elected members of a local authority, I propose for at least four years, but they should not currently be members of a local authority and would not have been a member of the relevant authority to which the committee relates. In other words, you put a barrier between those who make the decision of a standards committee and those whom it is investigating. You would have to have an appeals system. My amendment suggests that the Secretary of State should establish by regulation an appeals system at a national level, and I propose that members would be former chairs of standards committees, all of whom at present are independent.
Maybe we will come back to that issue on the third day but I hope that there may be a way for us to preserve some form of standards committee. Even in this structure, most councils are going to want to do so; otherwise, they do not have a means of investigating a complaint on the voluntary code of conduct. It is a very serious matter because the public perception has to be that everything is being done properly and is above board. So I do not support a voluntary code of conduct and I do think that there is a very strong case for a standards committee for each relevant authority—but possibly combined across several—to be considered.
Lord Taylor of Holbeach
My Lords, the coalition has considered the whole issue of standards boards and standards committees. We must recognise that there are different arguments in this case between the Benches opposite and ourselves. Amendment 96A seeks to remove the amendments that the Government are proposing to the Local Government Act 2000, which are needed to remove the requirement for local authorities in England to have standards committees. Of course, this applies only to England.
Rejecting the coalition’s changes to the standards board regime will remove local choice and retain a key aspect of a costly conduct regime which, as my noble friend Lord Shipley has said, has led to vexatious and politically motivated complaints against councillors. However, my noble friend would admit that if we are going to instil a full sense of responsibility in local government, we need to vest in those local authorities the responsibility for the standards of their members. Local authorities may well wish to adopt a voluntary code of conduct for members and co-opted members and determine for themselves what should be in that code; or they may choose to ensure high standards in another way, for example, through a statement of clear principles against which members can be judged by the electorate. The key element is that the choice about how to promote good conduct should be for local authorities to make, rather than for Government to impose on them the requirement for a code of a conduct or standards committees if they do not wish to go down that route.
I know that the noble Lord, Lord Beecham, will disagree with this because he disagrees with the purpose of this amendment but I have to state the position of the coalition, which is quite clear, that this is a matter for local authorities themselves.
Localism Bill
Lord Shipley Excerpts(14 years, 8 months ago)
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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.
Sustainable Local Transport
Lord Shipley Excerpts(15 years, 1 month ago)
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Lord Shipley
My Lords, perhaps I might press the Minister on the issue of the Highways Agency, and the powers on the classification of roads—particularly A-roads—that will be passed to local authorities. Trunk roads controlled by the Highways Agency run through urban areas but are treated in practice as local roads. I declare an interest as a member of Newcastle City Council, but I am talking in particular about our western bypass. Issues arise over the powers of the local authority, particularly where the council's roads dissect the Highways Agency's trunk roads. I would appreciate guidance from the Minister on what additional powers local councils might have over the Highways Agency in situations such as that.
Earl Attlee
I do not think local transport authorities will have powers over the Highways Agency. I do not think that there is any superiority issue with the Highways Agency or the local transport authority. We would expect them to consult each other, particularly when the local transport authority is reclassifying a road. Sometimes it may be considering reclassifying a road that is nowhere near a Highways Agency road, and I am not sure that it has to consult the Highways Agency. Clearly, when it could affect a Highways Agency route—routes on the strategic road network—I am sure it would consult.
Transport: Bus Industry
Lord Shipley Excerpts(15 years, 4 months ago)
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Lord Shipley
My Lords, local bus services have three essential economic and social functions: they get people to work and education in support of economic growth; they help to reduce congestion and carbon emissions; and they improve social inclusion for those without a car by providing them with links to local services and access to work and leisure. However, there is a conflict today between the important role that bus services play and the unregulated way in which they are operated outside London.
Bus services here in London are wonderful. I am impressed by their frequency, the reasonableness of the fares, the newness of the vehicle fleet and the wide range of routes which extend access and availability. While commercial operators do a good job in some other parts of the country, the overall picture is nevertheless mixed. Investment in modern, cleaner and more accessible vehicles varies from region to region, as does the extent of networks, reliability of services and maintenance standards. I regret in particular that there is no public service obligation on bus operators as there is on other public utilities. Unlike a domestic electricity or gas supply, a neighbourhood’s bus service can be cut off at 56 days’ notice, without consultation, by its commercial operator.
The context today is one in which bus services will come under greater strain in the years ahead as a result of the reductions in public spending, as 47 per cent of bus company income is derived from national and local government in various grants and subsidies that now amount to some £2 billion. As this is reduced, there is a real danger that services will decline in some areas. This is already the case with shire counties cutting the number of routes that they subsidise. As examples of cuts to bus services starting to take effect, North Yorkshire County Council is consulting on plans to save £600,000 by withdrawing its subsidy for evening and weekend bus services, and Durham County Council has been consulting residents on which of the bus services that it subsidises—20 per cent of all routes in the county—it should cut as it seeks to reduce spending.
According to Spending Review 2010, the 20 per cent reduction in bus subsidies paid directly to operators will save over £300 million by 2014-15. That, coupled with a reduction of 28 per cent in overall local authority funding over the next four years, will inevitably put pressure on to the subsidy system. In addition, the special grant top-up for concessionary travel funding is being withdrawn and, from next April, that funding will be subsumed into the formula grant alongside the rest of the funding for concessionary travel.
It is interesting to note that the total cost of subsidising bus services has grown since 1986 from £850 million to around £2 billion. This subsidy includes bus service operators grant, public transport support and concessionary fare reimbursement by local authorities. There is now a very real danger of a salami effect on bus services, with bus companies withdrawing their own marginal routes as the bus service operators grant is reduced at the very same time as councils are forced to reduce subsidised routes. This attrition of an essential public service must be curtailed, given that in the UK the total number of bus trips today is still twice the number of rail and underground trips.
So, what should we do? Local authorities need to be encouraged to look at new models of service delivery, including forming strategic partnerships with operators and introducing quality contract arrangements with local franchises offered to a single operator in a particular area. As part of that, the Government should ensure that local authorities and passenger transport executives retain the powers to determine how bus services are delivered in their communities, using the full powers of the Transport Act 2009, and are incentivised to do so, where possible, by secondary legislation and government guidance.
Under quality contract franchising, private sector companies would be invited to bid to operate a specified network. Once a company was appointed, it would face no on-road competition and would be free to concentrate on developing the local market for bus travel. With franchising, you get what you are prepared to pay for, but a market testing exercise by passenger transport executives has shown that, even with the existing level of public subsidy to the industry, franchising should provide a better network than currently exists. At a minimum, those networks would be: more stable, with less frequent changes to fares, times and frequencies; possibly more reliable, because services would be monitored and good performance would be incentivised; better integrated, with one brand, one network, one ticket and simpler fares; and cleaner, because dirty old buses would be sent to the scrapyard and contracts would require bus operators to provide newer, cleaner buses and to maintain them to a high standard.
If in time more resources became available, whether from national government or from the local authorities themselves, quality contracts could be used to make a further step change with more state-of-the-art low-emission or no-emission buses. Fares could be simplified and held at current levels, or even reduced. The network could be made more accessible more quickly by making every bus low-floor, with easy access for wheelchair users. New services could be added to help link people to vital destinations like jobs and hospitals. More buses could be provided in rush hours to help reduce traffic congestion. This would all help reduce car dependency, improve air quality and contribute to the quality of the environment.
We should note that franchising of services, with the public sector specifying and regulating and the private sector delivering, is now the norm in the rest of public transport provision in Britain and across Europe. It is time that it became the norm with our bus services. Indeed, a growing number of bus operators, particularly those who have forged a good reputation in providing franchised public services at home and abroad, are supportive of franchising proposals. For the private sector, the advantage of franchising is an open, competitive framework and a long-term and stable return on investment with which they can invest in new vehicles and build customer numbers. Those in the private sector know that bus ridership can be increased because latent demand exists, and that is what has to be generated.
We can see from Transport for London how ridership can be increased. First, in the 20 years from 1986 when bus services outside London were deregulated, bus patronage in urban areas has declined by 46 per cent, while London has seen bus patronage increase by 81 per cent. In the past year, while ridership dropped 3 per cent outside London, London’s buses saw 0.5 per cent growth. Secondly, in the same period bus fares in urban areas have increased by 94 per cent in real terms, but in London fares have risen by just 54 per cent over the same period. Thirdly, even though local bus service vehicle kilometres fell by 13 per cent in the 10 years to 2008 in urban areas, they rose 31 per cent in London. Crucially, the higher load factors achieved in London have led to a significant fall in operating costs per passenger journey, by 22 per cent in real terms since 1985 compared with an increase of 7 per cent outside London.
It is all about generating new customers on our bus services. London has shown what can be achieved, and the rest of the UK must be empowered to follow.