Cities and Local Government Devolution [Lords] Bill

Debate between Natascha Engel and Lord Wharton of Yarm

Wednesday 21st October 2015 Commons Chamber

[The Parliamentary Under-Secretary of State for Communities and Local Government (James Wharton)]

I beg to move amendment 29, in page 1, line 14, leave out “under section 2”

This amendment would be consequential on leaving out clause 2.

[The Second Deputy Chairman of Ways and Means (Natascha Engel)]

With this it will be convenient to discuss the following:

Clauses 1 and 2 stand part.

New clause 1—Competences of local government—

‘(1) The Secretary of State must, after consultation with representatives from local government, publish a list of competences of local government.

(2) After the list has been published, the Secretary of State may not publish any amended list of competences of local government without first obtaining approval of the revised list consent from—

(a) the House of Commons, with two-thirds of its membership voting in favour of the amended list, and

(b) the Local Government Association.”

This new clause would define the independence of local government, and entrench it beyond easy repeal.

New clause 13—Double Devolution statements—

‘(1) A Minister of the Crown who has introduced a Bill in either House of Parliament having the effect of devolving functions or powers of the United Kingdom Parliament or the Secretary of State to a combined authority must, before the second reading of the Bill, make a double devolution statement on the arrangements for further devolving those functions or powers to the most appropriate local level except where those powers can more effectively be exercised by central government or by a combined authority.

(2) The statement must be in writing and be published in such a manner as the Minister making it considers appropriate.”

The intention of this new clause is to make clear what double devolution to smaller councils and neighbourhoods will occur in the wake of big city deals being agreed by combined authorities when giving powers to cities and/or combined authorities.

New clause 18—Independent Review, Support and Governance—

‘(1) It shall be the duty of the Secretary of State to lay before each House of Parliament each year a report about devolution within England and Wales pursuant to the provisions of this Act (an “annual report”).

(2) An annual report shall be laid before each House of Parliament as soon as practicable after 31 March each year.

(3) The Secretary of State may by order make provision for an Independent Commission or Advisory Board to undertake a review, challenge and advisory role in relation to:’

(a) reviewing orders and procedure arising from the Secretary of State’s decisions; and

(b) requests for orders received from combined or single local authorities.”

This new clause would ensure the Secretary of State has the necessary power to create an Independent Commission or Advisory Board to scrutinise the work of the Secretary of State relating to devolution, Annual Devolution Report and handle requests from local government about the decisions made by the Secretary of State.

New clause 22—Devolution in London—

‘(1) Within six months of the passing of this Act, the Secretary of State must publish a report on a greater devolution of powers in London, including on whether to make provision for the Secretary of State to—

(a) transfer a public authority function to a joint committee of London councils, and

(b) establish a joint board between London boroughs and the Mayor of London to support further devolution in London, and

(c) devolve responsibility on fiscal powers, including but not limited to, setting and revaluating local tax rates, banding and discounts.”

This new clause makes it a requirement for the Secretary of State to report on further devolution options for London, including fiscal devolution (e.g. council tax revaluation, etc) which has been called for by the Greater London Assembly and the Mayor of London.

New clause 23—Fair funding settlement: report—

Within six months of the passing of this Act, the Secretary of State must publish a report on the impact on the functions of combined authorities of the fairness of the distribution of funding from central government to local authorities, particularly with regard to levels of deprivation.”

This new clause would require a report linking the impact of devolution with the level of funding.

New clause 25—Public authority functions—

Within one month of the passing of this Act, the Secretary of State must publish a list of public authority functions which may be the subject of a transfer of functions under the provision of this Act.”

This new clause would require the Government to be more specific about the functions which it intends to developed to mayors, combined authorities and other local authorities.

Government amendment 4.

Amendment 51, in clause 3, page 2, line 19, at end insert—

‘(2A) An order under subsection (1) may not be made unless the proposition that the combined authority have a mayor is approved by a referendum of the electorate in that combined authority.”

The intention of this amendment is that elected mayors will be introduced only if that proposal has been endorsed, in a referendum, by 50% of the population.

Amendment 43, in page 2, line 31, leave out subsection (8) and insert—

‘(8) An order under this section providing for there to be a mayor for the area of a combined authority may be revoked or amended by making a further order under this section; this does not prevent the making of an order under section 107 abolishing the authority (together with the office of mayor) or providing for a constituent part of the combined authority to leave the combined authority and to resume its existence as a separate local authority.

(8A) An order under this section providing for a constituent part of the combined authority to leave the combined authority and to resume its existence as a separate local authority must make fair provision for a reasonable and proportionate division of resources between the former combined authority and the seceding local authority.”

The intention of this amendment is that a constituent part of a combined authority can leave a combined authority without the combined authority being dissolved, with provision for “fair terms” for the leaving part (i.e. their resource is calculated on a per capita basis, or similar.)

Amendment 46, in page 2, line 38, at end insert—

‘(10) This section does not apply to the County of Somerset, as defined by the Lieutenancies Act 1997.”

Amendment 39, in page 3, line 2, at end insert—

‘(1A) For an area of a Combined Authority where for any part of that area there exists both a County Council and District Council, no order may be made under section 107A unless either the Secretary of State or the existing combined authority has carried out a consultation with local government electors on replacing the existing County Council and District Councils with one or more unitary authorities.”

Amendment 44, in page 3, line 14, at end insert—

‘(4A) A constituent council may withdraw consent after the creation of a combined authority and a mayor for that authority.

(4B) Where one or more constituent councils have withdrawn their consent under subsection (4A), the Secretary of State must make an order either:

(a) abolishing the combined authority and the office of mayor, or

(b) reconstituting the combined authority without the non-consenting council or councils concerned”.

The intention of this amendment is that a constituent council may withdraw its consent to the creation of a combined authority, in which case the Secretary of State must either abolish the authority and mayor or re-constitute the authority without any non-consenting council.

Amendment 53, in page 3, line 27, at end insert—

‘(2A) The Secretary of State may make an order under section 107A in relation to a combined authority‘s area if a proposal for other appropriate governance and accountability structures for the authority’s area has been made to the Secretary of State by the constituent authorities.

(2B) The Secretary of State may set out accountability and governance tests in respect of other appropriate governance structures.

(2C) Orders may allow for a mayor or other appropriate governance structure to enter into collaborative working arrangements with more than one combined authority, or local partnership board covering for example rural areas.”

This amendment would allow for a mayor to work with more than one Combined Authority, or partnership board covering, for example, rural areas.

Clause 3 stand part.

Government amendments 18 to 22.

That schedule 1 be the First schedule to the Bill.

Amendment 57, in clause 4, page 3, line 33, at end insert—

‘(1A) Where the mayor for the area of a combined authority appoints a deputy, regard to gender balance must be given”

This amendment is intended to make sure that gender balance is taken into account in mayor/deputy teams

Clause 4 stand part.

New clause 21—Consultation with local community—

The Secretary of State must make an order to determine the consultation processes which will be used with the local community.”

This amendment is intended to ensure that mayors are provided only where the local resident population has been properly consulted.

Amendment 56, in clause 6, page 6, line 24, at end insert

“which is not restricted to a specific governance structure”

This amendment will allow a council to choose any form of governance and would be defined as a local authority according to the 1992 Local Government Finance Act.

Amendment 42, in clause 8, page 10, line 12, at end insert—

‘(2) The Secretary of State must lay before each House of Parliament at least once in each calendar year a report on the exercise by the Secretary of State of powers which have been devolved to the mayor of a combined authority.”

The intention of this amendment is that the Government should publish every year publish a report that shows that it has not exercised a power that has been devolved to a combined authority mayor.

Amendment 59, in clause 11, page 11, line 27, at end insert—

‘(1) Within 12 months of the passing of this Act, the Secretary of State must publish a report on the performance of the Localism Act 2011 and a review of the general power of competence provision.”

This amendment requires a review of the Localism Act and local authority innovation.

Government amendments 27 and 28.

[James Wharton]

As well as amendment 29, I will speak to Government amendments 4, 18 to 22, 27 and 28, and to the stand parts for clause 1, clause 2, clause 3, schedule 1, and clause 4. I will also comment, if time and the mood of the Committee permits, on new clauses 1, 13, 18, 22, 23 and 25, amendments 51, 43, 46, 39, 44, 53 and 57, and new clauses 21, 56, 42 and 59, which have been placed in the same group.

The range of interest that has been shown in this Bill speaks for itself. On Second Reading 76 colleagues made contributions, and there was a great deal of consensus. This Bill is of a consensual nature, and while there are issues that we will be discussing in Committee, it is important to put that on record. My intention and that of the Government today is to reflect on the debate that is now to take place and take that into account going forward. We hope this debate can continue in this consensual tone and that it will characterise the passage of this Bill.

Clauses 1 and 2 were inserted into the Bill in the other place. We have considered carefully the arguments in support of the clauses. We share the views of those who supported the clauses about the importance of the Government’s accountability to Parliament for the devolutionary measures and deals they pursue.

Clause 1 places a statutory duty on the Secretary of State to provide annual reports to Parliament setting out information about devolution deals. We recognise that the effect of this clause will be to bring together in an annual report to Parliament details about the whole range of devolutionary activity. While some, if not most, of this information will have been made available to Parliament in the ordinary course of business, we accept that there can be value in such a comprehensive annual report, enhancing transparency and accountability. The Government therefore accept that clause 1 should stand part of the Bill.

Amendments that hon. Members have now tabled seek in various ways to extend the reporting requirements. We are not persuaded that these are needed to ensure the transparency and accountability that we all wish to see, but I will listen carefully to the debate and we will consider further expanding the reporting requirements on devolution in due course subject to the arguments hon. Members put forward.

The hon. Member for Nottingham North (Mr Allen)—whom I may refer to occasionally throughout today’s discussion—has tabled new clause 18, which would require the Secretary of State annually to lay before Parliament a devolution report and enable the Secretary of State to establish an independent body to provide advice on devolution of powers. I think the reporting requirement he has in mind is already covered by clause 1, and while we accept the importance of reports, I do not believe a case can be made to establish some new independent body to provide advice. I fear that any such step would simply lead to additional costly bureaucracy.

The hon. Gentleman has also tabled new clause 13, which would require the publication of a report about how powers devolved to combined authorities are being further devolved. I know he takes great interest in that issue, in line with the devolution agenda more broadly, and wants that taken forward. The Government attach importance to such further devolution. In the Localism Act 2011 we have recognised the importance of neighbourhoods and of neighbourhood planning, and of communities being able to take ownership and management of community assets or take on the provision of local services. This is an important element of devolution and I can see the case for any comprehensive report about devolution covering these matters.

Amendment 42 was tabled by my hon. Friends the Members for Altrincham and Sale West (Mr Brady), for Hazel Grove (William Wragg) and for Bury North (Mr Nuttall). It would require the Government to publish an annual report about powers that have been devolved to a combined authority mayor. This again is an important matter and there is a case for information about this to be included in any comprehensive annual report on devolution. The Government recognise that and want to find the right solution for the concerns hon. Members have.

The shadow Secretary of State and the hon. Members for Heywood and Middleton (Liz McInnes), for Croydon North (Mr Reed), for Dewsbury (Paula Sherriff), for Easington (Grahame M. Morris) and for Stretford and Urmston (Kate Green) have tabled new clause 22 which would make it a requirement for the Secretary of State to report on further devolution options for London, including fiscal devolution which has been called for by the Greater London Authority and the Mayor of London. As we made clear in the other place, we are open to discussing with London plans for the devolution of wider powers. Indeed, the Mayor and London Councils have already sent in formal devolution proposals and the Government are engaged in discussions regarding these. We are committed to taking forward these discussions and I doubt whether there is a need for some further reporting requirement therefore to be included in this Bill.