Local Government Finance Settlement

Debate between Martin Vickers and John Stevenson

Tuesday 19th December 2017 Commons Chamber

[John Stevenson (Carlisle) (Con)]

rose—

[Martin Vickers (Cleethorpes) (Con)]

rose—

Mayoral Referendums

Debate between Martin Vickers and John Stevenson

Wednesday 25th April 2012 Westminster Hall

[Martin Vickers]

To be honest, I would have mayors imposed on councils. As I have said, the best form of local government is single-tier authorities headed by an elected mayor. I also favour more directly elected positions within society and fully support the introduction of elected police commissioners.

Returning to my point about councils not choosing to go down this road voluntarily, I would not go as far as Simon Jenkins who said in last week’s Guardian that mayors would replace “shadowy civic mafias.” I also do not agree with him that cities have been held back by party complacency. That may well be true in some cases, but to blame political parties per se is simply wrong. I would argue that bureaucracy and regulation at a national and EU level has had a lot to do with it. Bearing in mind Sir Simon’s recent engagement in arguments about the planning system, I would say that that system itself has something to answer for—at least until the Minister with responsibility for planning, my right hon. Friend the Member for Tunbridge Wells (Greg Clark), got to grips with it.

I entirely agree with other parts of Simon Jenkins’ article. He states:

“the London mandate secured more cash for police and transport and spattered central London with lofty towers.”

I am not so sure about that one, but he goes on to state:

“In the past four years…Boris Johnson has subsidised cycling and dug up every road. Like them or loathe them, these men have put city politics on the map. Hustings are packed. London’s civic life has never been so vibrant.”

In some respects, the campaign might not have been all that edifying, but it has certainly grabbed the interest of far more voters than a traditional council election.

It is the political process that energises and gives direction to our system of governance, whether at a national or local level. However, we can do better. We can transform politics by introducing more direct elections. Yes, many of those will be personality contests like the Boris versus Ken show. Whether we like it or not, personalities have always played a major role in politics, and leadership, in part, results from the individual personality of the person. However, from the public’s point of view, that is exactly what should happen. As I say, we must sweep away the existing cosy arrangements.

The petition threshold of 5% that is needed for the electorate to trigger a referendum is too large. If we support localism, as we all purport to, it should be made easier for voters to initiate the process. Obtaining the support of 5% of the people does not sound like a big deal—until one gets out on the streets to try to secure those genuine signatures. In the two unitary authorities that serve my constituency, that equates to more than 6,000 signatures. I can tell hon. Members that getting that number is extremely difficult. About 10 years ago I tried to do so, but local circumstances changed and the momentum was lost.

We need to reduce that threshold significantly. Councils should still have the opportunity to initiate a referendum, but we need to make it much easier for the public. Much is made of the potential downsides of having elected mayors, such as the possibility that extremists will be elected. On the whole, the British people are rather moderate in their political views. On occasion, they may elect an eccentric—some would argue that anyone who enters the political arena qualifies as being eccentric—but there is no real evidence that extremists would be elected. Electing an eccentric might seem rather British; electing an extremist is very un-British.

I welcome the fact that we have 10 referendums taking place next week in some of our major cities. That is a start, but as I have said, let us not restrict them to cities. My constituency straddles two unitary authorities, with two wards in North Lincolnshire and a larger part in North East Lincolnshire. There are three main areas of population: Immingham and Cleethorpes in my constituency; and Great Grimsby, a self-contained former borough seat soon to expand into Cleethorpes if the Boundary Commission gets its way, much to the horror of the locals.

As the Minister found out when he paid his first visit there a few weeks ago, Grimsby and Cleethorpes are joined at the hip, or certainly at the Park street border where we position sentries alongside the passport control barriers. More seriously, they are in effect one town, though with distinct identities. It is these provincial towns such as Grimsby and Cleethorpes, and many others—Huddersfield, Halifax and Scunthorpe, to name but a few—that are at risk of being left behind if we concentrate too much on cities. Cleethorpes, Grimsby and similar towns think that big cities get far more than their fair share as it is. We would like another advocate for our communities. Perhaps elected mayors in provincial areas, working in tandem with Members of Parliament, would be more of a thorn in the side of Governments of whatever complexion than a council leader. We must hope that that would be beneficial to such local communities. If, as is the case, the Government believe that elected mayors are desirable, then I say to them: get on with it and do not dawdle. Make it easier for my constituents and others to initiate the process of a referendum and let us see what the people think. I suspect that in many areas, particularly with a local push, they would go for it.

Of course, local councillors are not over-keen. It is a potential threat, a step into the unknown, and it introduces an element of uncertainty into the often predictable world where Labour win when there is a Tory Government and the Tories win when there is a Labour Government. But I say to them: take up the challenge. After all, many candidates for mayor will come from the ranks of existing councillors. I can think of half a dozen or so in my constituency who would be real contenders for the position.

Elected mayors would not be drawn just from the ranks of our existing politicians; representatives of the voluntary sector, business leaders, trade unionists and many more would be drawn in. The attraction of an executive position will have far more appeal to more people than the traditional role of a councillor. We need more individuals to become involved with our local parties, so that they can be considered for candidacy. Open primaries would help to bring more people into the process of selecting candidates. Too often, selection is by a small group—I know, as I have been one of them. Whatever can be said in its favour, it is certainly not open and transparent.

As I have said, we need to reduce dramatically the threshold for initiating a referendum. Let us put real power back into the hands of local people and make it much easier for the population at large to kick-start that referendum. In no way do I wish to play down the role of the traditional councillor—I would not have stuck at it for 26 years otherwise. There will still be an important job to do. Individual wards and communities need their advocates to argue not just in favour of things, but against them, too. With neighbourhood plans to produce and the opportunity for elected members to work more closely with our voluntary and charitable groups, churches and others, public satisfaction would increase.

Importantly, executive mayors need effective scrutiny. Scrutiny in its present form does not work, as I think many who have served on local authorities would agree. It is not sufficiently detached from the decision-making process. Scrutiny is seen as a necessary evil by any administration. Even when serviced by able officers, they will almost certainly be junior to the senior managers who are involved in the decision-making process. I have previously proposed that local authorities need an officer at director level who is not a part of the established service, but who is appointed by, and responsible to, a group of chairmen of scrutiny panels.

I digress. To return to my main theme, mayors can be passionate advocates for economic investment, but equally they can be powerful voices against developments that their local communities oppose. That allows me to put forward the thought that, although I favour unitary authorities headed by an elected mayor, that does not preclude smaller towns in that authority area having their own elected head. I know that my hon. Friend the Member for Penrith and The Border (Rory Stewart) favours that and will no doubt speak on it in a few minutes. Currently, in effect we have a two-tier mayoral system in parts of London, so we should not rule it out elsewhere. The elected mayors in London seem to rub along with the Borises and Kens of this world reasonably well. There will be tensions, of course, and these changes will alter the dynamics between various councils and individuals, just as another constitutional change that I favour, an elected House of Lords, will change the dynamics between the upper and lower Houses.

I will now expand on what I see as the key functions of the mayor. I mentioned economic development and regeneration earlier, and they are certainly vital ingredients. Infrastructure and transport are essential. They are all part of a growing local economy. What is certainly essential is forceful political leadership—someone in charge. As MPs, we are all well aware that we live in a global economy. Business leaders travel from all over the world to consider investment decisions. In many of our overseas competitor towns and cities, they can meet with the top man or woman because they can be decisive and offer clear direction. Here, it is somewhat different—our decision-making process is often tortuous. Our mayors could be as decisive.

[John Stevenson (Carlisle) (Con)]

Does my hon. Friend agree that it is incumbent on central Government to decentralise further powers to the local authorities, particularly to elected mayors?

[Martin Vickers]

Yes, I favour my hon. Friend’s suggestion. The process of devolution and localism has only just started, and has a long way to go.

I note that those trying to undermine the elected mayor project have been saying that not enough high-profile potential candidates have come forward. That is perfectly understandable, until we know the outcome of the various votes next week.

Local Authorities (Procurement)

Debate between Martin Vickers and John Stevenson

Tuesday 24th April 2012 Westminster Hall

[John Stevenson]

I take the hon. Gentleman’s point. Local economies and local businesses are the way to drive our economy. They are a key player, and we underestimate their importance. We must take into account the European dimension, and if that frustrates local businesses, we must try to do something about it.

I have taken the opportunity to look at Government advice on procurement policy, and the key point is that procurement must be value for money, normally through competition. I accept that that is generally the correct approach, and will often be the one that authorities will follow, but how we interpret the definition of “value for money” is a much wider issue. My hon. Friend the Member for Warwick and Leamington (Chris White) successfully navigated through Parliament the Public Services (Social Value) Act 2012. It requires local authorities, when they enter into procurement contracts, to give greater consideration to economic, social and/or environmental well-being during the pre-procurement stage. That is hugely welcome, and it is extremely important that councils are made fully aware of the Act’s provisions, and the potential benefits for their areas.

I firmly believe that it is incumbent on councils to take into consideration the impact that their procurement can have on their local economy, and the success or otherwise of local businesses, especially small ones. Local government procurement can be beneficial in giving local businesses the ability to grow and expand. That creates jobs, skills and investment in areas throughout the country, particularly those that are badly in need of investment. However, a negative effect can be created as easily, and can go beyond having a direct impact on a local business. It can spread into the wider community, lowering employment, and preventing money from being recycled through the local economy, leading to less money being invested in businesses in that area. It is clear how local government procurement has the ability to create a much less vibrant and successful local economy very quickly.

I want to be parochial for a moment. In 2010, the university of Cumbria produced a paper entitled “The Impact of Local Authority Procurement on Local Economies, The Case of Cumbria”. It found that increasing pressures on local authorities to be efficient and effective in their use of public resources may contradict the need to support local communities, particularly during a period of economic downturn. The findings suggested that many small and medium-sized enterprises throughout Cumbria relied on local authority contracts for business stability. Those interviewed throughout the county confirmed that when a more formal approach to public procurement is taken, coupled with a more defined definition of “value for money”, SMEs become more vulnerable.

To its credit, Cumbria county council's procurement strategy aims to increase the proportion of suppliers based in the county from 60% in 2010 to 65% in 2012. Collectively, the Cumbrian authorities have an annual procurement spend in excess of £300 million, more than half of which is spent locally. That sort of money can have a profound effect on any local economy, so I want to ensure that local authorities have the appropriate power and tools to ensure that they can promote and support local business through their individual procurement policies. I therefore ask the Minister to consider three key issues.

First, does he believe that the power of general competence for local authorities, which was granted by the Government in recent legislation, gives them sufficient additional powers to introduce or pursue a procurement policy that can examine the wider effects of their current policy beyond best practice? Secondly, to what extent does the Minister feel that the Public Services (Social Value) Act 2012, which was promoted by my hon. Friend the Member for Warwick and Leamington, is on the radar of local authorities; and how widely is it being used across the country? Finally, what measures does the Minister intend to pursue to help with the issue and to ensure that local authorities have policies that truly benefit their own locality?

I want Carlisle to have a vibrant, local economy, creating jobs and prosperity for local people.

[Martin Vickers (Cleethorpes) (Con)]

My hon. Friend makes a powerful case, and the circumstances that he outlines as affecting his part of Cumbria are replicated in my constituency, in northern Lincolnshire. Does he agree that the important thing about encouraging and supporting local businesses is that they transmit skills to the younger generation and help with youth unemployment? Only last week I was at a business that had taken on apprentices, and that must surely be an important part of any local economy.

[John Stevenson]

I completely agree. If the contracts from the local authority are with local businesses, those businesses clearly have an incentive to invest and create jobs, apprenticeships and opportunities for future generations.

I believe that local decisions that affect local communities should be made by local people, away from central Government. If local authorities were to adopt a more flexible but robust procurement policy, local economies throughout the country would reap enormous benefits. It would also be beneficial to the national economy.

Elected Mayors

Debate between Martin Vickers and John Stevenson

Wednesday 27th October 2010 Westminster Hall

[Martin Vickers (Cleethorpes) (Con)]

I, too, congratulate my hon. Friend the Member for Carlisle (John Stevenson) on securing the debate. It is only proper that I should declare an interest in the sense that I am, and will remain for a few months longer, an elected member of North East Lincolnshire unitary council. As background information, I should say that I have served as a councillor for 25 years—and it don’t seem a day too long. I have served both in a two-tier system as a former member of Grimsby borough council and, more recently—in fact, for the past 11 years—as a representative on North East Lincolnshire council. That experience has certainly taught me that single-tier authorities are ultimately the way forward and that they should be led by elected mayors.

[John Stevenson]

Does my hon. Friend think that we should ultimately move to unitary authorities across the country and get rid of the two-tier system? That would allow elected mayor systems to develop in the various unitary authorities.

[Martin Vickers]

That is my personal preference. I accept the fact that there are geographical difficulties in large counties, in the sense that individuals find it more difficult to become local personalities when parts of the county could be 70 or 80 miles apart. For example, within Lincolnshire county council, the distance from Gainsborough in the north to Spalding in the south is about 60 or 70 miles. I can understand the difficulties, although far be it for me to suggest that Lincolnshire should be broken up into unitaries. That debate is for another day.

As politicians, we are here to articulate the concerns of our local communities. In recent years, there has been much talk of new politics. In the same way as beauty is in the eye of the beholder, “new” can mean whatever an individual chooses it to mean. However, we can transform politics by introducing more direct elections. As my hon. Friend said, there will be personality contests—he mentioned the Boris versus Ken show, which transfixed the nation—and whether we like it or not, personalities have always played a major role in politics. Leadership, in part, results from the individual personality of the person concerned.

I welcome the fact that moves are being made to introduce elected mayors into our big cities; but, like my hon. Friend, I would like to know why it is only happening in those places. In Lincolnshire—in the provincial towns of Cleethorpes, Grimsby and so on—we think that the big cities get more than their fair share as it is. We would like another advocate for our communities, and perhaps elected mayors in provincial areas, working in tandem with Members of Parliament, would be more of a thorn in the side of Governments, of whatever complexion, and we hope that that would be beneficial to local communities.

Much is made of the potential downsides of having elected mayors, such as the possibility that extremists would be elected, but why do we assume that the electorate would vote for extremists? The British people, on the whole, are moderate in their political views, and there is no real evidence that extremists would be elected. If they were, they would soon be found out and lose favour with the electorate. With regard to claims that individuals could be corrupt, I am sure that sufficient reserve powers could be included in any Bill to take care of that.

We have an opportunity to give our politics back to the people by having more direct elections. We need to break down the barriers. As both Members who have spoken in the debate acknowledged, there is an inertia in local authorities, and most councillors are particularly opposed to the concept of elected mayors because that would break down the rather cosy current arrangements. From the general public’s point of view, that is exactly what should happen; we need to break down those cosy arrangements and bring in people who truly represent their communities. We need more individuals to be elected as party candidates through open primaries, bringing more people into the electorate’s choice. We need to reduce dramatically the threshold for initiating a referendum. Councils should still have the opportunity to initiate a referendum, but we need to make it much easier for the population at large to kick-start that process.

There is a fair amount of unanimity in the debate, and I agree that the present arrangements for scrutiny within councils have not worked. That is understandable, as back-bench councillors, under the present cabinet arrangements, really have only one opportunity to speak on behalf of their constituents, so they use meetings that should be for scrutinising the executive to bring up, for example, why the bus stop in the high street has been moved. I do not blame them for that, as I have done it myself. The proposal for directly elected mayors is an opportunity to transform local government, and I hope that the Minister will offer my hon. Friend and I some encouraging words.