Draft Somerset West and Taunton (Modification of Boundary Change Enactments) Regulations 2018 Draft Somerset West and Taunton (Local Government Changes) Order 2018

Rishi Sunak Excerpts

Wednesday 16th May 2018 General Committees

[The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Rishi Sunak)]

I beg to move,

That the Committee has considered the draft Somerset West and Taunton (Modification of Boundary Change Enactments) Regulations 2018.

[The Chair]

With this it will be convenient to consider the draft Somerset West and Taunton (Local Government Changes) Order 2018.

[Rishi Sunak]

It is a pleasure to serve under your chairmanship, Ms Buck. I thank the other members of the Committee for joining us here early in the morning. The statutory instruments were laid before the House on 29 March. If approved and made, they will provide for the abolition on 1 April 2019 of Taunton Deane borough and West Somerset district, together with their councils. They will also provide for the establishment of a new Somerset West and Taunton district covering the same geographic area, together with a new council for that district.

The Government, as our manifesto made clear, are committed to supporting local authorities that wish to combine in order to serve their communities better. The Government have announced to the House that we will consider any locally-led proposals for district mergers that are put forward by the councils concerned and that meet three criteria—namely, that the proposals will improve local government and service delivery, create structures with a credible geography, and command a good deal of local support.

Let me turn to the proposal that these two district councils developed and submitted to us for the creation of a new district of Somerset West and Taunton. The councils have a history of shared service partnerships. They are clear that the savings in that respect will be safeguarded by implementing the merger and that the merger itself will secure savings of some £3.1 million per annum. That includes safeguarding the £2.6 million of savings already secured through partnership working, and saving an additional £500,000.

In bringing forward their proposal to merge, the two councils have undertaken an engagement programme, actively engaging with residents and stakeholders from December 2016 until February 2017. The programme included an independent, demographically representative phone poll; a dedicated website with background information and an online questionnaire; a series of eight public roadshow events throughout the area; a series of nine consultation events involving groups of parish and town councillors and representatives of community groups; and various meetings with key stakeholders—businesses, partners and other local bodies. The independent phone poll was undertaken to assess local residents’ awareness of West Somerset’s financial position and of the merger proposal. By the end of the consultation period, more than 60% of the population of the two areas were aware of both.

Following their period of engagement, the two councils submitted their joint proposal to merge to the Secretary of State for Communities and Local Government on 27 March 2017. On 30 November, the then Secretary of State, my right hon. Friend the Member for Bromsgrove (Sajid Javid), told the House that he was minded to implement the proposal made by West Somerset Council and Taunton Deane Borough Council.

There followed a period for representations until 19 January 2018. The Secretary of State received a number of representations, of which 114 supported the proposal, 14 were neutral and 123 were opposed. On 22 March, the Secretary of State announced that he was satisfied that the previously announced merger criteria had been met and that he intended to implement the proposed merger and to lay before Parliament the necessary secondary legislation. That was not just the Secretary of State’s view. It was shared by the two district councils and the county council; a significant majority of councillors in the area; all public bodies that made representations to the Secretary of State—all were either supportive or neutral—the local enterprise partnership and a majority of the businesses and voluntary sector organisations that made representations; and a majority of the town and parish councils that made representations. In addition, my hon. Friend the Member for Taunton Deane (Rebecca Pow) remains supportive of the proposal. Of course, that view is not shared by all, and I am sure that we will hear later from my hon. Friend the Member for Bridgwater and West Somerset.

Let me turn briefly to the statutory framework. The Somerset West and Taunton (Modification of Boundary Change Enactments) Regulations 2018 vary the Local Government and Public Involvement in Health Act 2007 in its application to West Somerset and Taunton Deane councils during the period from when the regulations come into force until 31 March 2020. Section 15(4) and (5) of the Cities and Local Government Devolution Act 2016 provide that such regulations,

“may be made only with the consent of the local authorities to whom the regulations apply”.

In this case, both councils have consented to the regulations.

The Somerset West and Taunton (Local Government Changes) Order 2018, if approved, will be made under section 10 of the 2007 Act and makes provision for various items: abolishing the existing local government areas for West Somerset and Taunton Deane; establishing a new district coterminous with the previous areas of West Somerset and Taunton Deane, named Somerset West and Taunton; winding up and dissolving the district councils of West Somerset and Taunton Deane and establishing a new council, Somerset West and Taunton District Council; providing appropriate transitional arrangements, such as a shadow authority and shadow executive; and establishing, in agreement with the councils, any necessary electoral arrangements. We expect the Local Government Boundary Commission for England to be able to undertake a full electoral review of the new area before the elections in May 2019.

In conclusion, in considering the two draft instruments, we are assessing the merits of merging the West Somerset and Taunton Deane districts and councils to become Somerset West and Taunton, with a new district council. In this instance, it is clear that the two councils have come together to work on a locally-led proposal that, if implemented, will improve local government and service delivery in the area and command a good deal of local support. The council area also represents a credible geography. The proposed new council of Somerset West and Taunton has wide support, and both councils have consented to the making of the regulations. I have confidence that the local area will implement the district council merger by next April, to allow the good people of Somerset West and Taunton to elect their new council in May next year. On that basis, I commend the regulations and the order to the Committee.

--- Later in debate ---

[Rishi Sunak]

It is a pleasure to have the opportunity to respond to the comments made by the hon. Member for Makerfield, my right hon. Friend the Member for South Holland and The Deepings, and my hon. Friend the Member for Christchurch. I hope that I can address all the points that they raised and, of course, those of my hon. Friend the Member for Bridgwater and West Somerset, whom I fully respect for representing his constituents in the way that he sees fit.

I shall start with the misconception, which ran through comments from hon. Members on both sides of the Committee, that in some way central Government are, as my hon. Friend the Member for Bridgwater and West Somerset said, riding roughshod over local government. My right hon. Friend the Member for South Holland and The Deepings referred to a delicate relationship between central and local government, and I agree with him. It is important that central Government do not ride roughshod over or dictate to local government, which is why the Government have been exceptionally clear that we want to see locally-driven proposals and will consider locally-driven, locally-originated proposals against a set of criteria, which the previous Secretary of State reiterated in the House. That speaks to the very nature of what we are talking about here. I want to remind hon. Members on both sides of the Committee that this was a locally-driven process. The Government received a proposal that had been generated, researched, engaged with and consulted on by the local councils in question, both of which have consented to the making of the statutory instruments.

My hon. Friend the Member for Christchurch talked about an invitation. There was no invitation from central Government to the councils to put the proposal forward. It was entirely a result of their own work.

The hon. Member for Makerfield talked about the narrow council majority. I think it would be helpful for hon. Members to know the results of the council votes that were held in both areas. When the proposal was considered in Taunton Deane, 32 councillors were in favour and 16 against, with two abstentions. That is a majority of more than 64%. When West Somerset Council voted on the matter in December, 20 councillors were in favour and just three against, with one abstention. That is an 83% vote in favour. In aggregate, that combines to 70%. I will leave hon. Members to make up their own minds as to whether that it is a significant or a narrow majority.

Not only are local councillors in support, but the local area is too, including the county council, all public bodies, businesses, the voluntary sector and a majority of the parishes.

[Mr Liddell-Grainger]

I gently say to the Minister that that is not the case. I represent one of the areas, although I admit that I do not represent the other. When I talked to the local enterprise partnership, it had been asked whether it thought it was a good idea. Well, if people are asked whether they like blueberry pie, they tend to say yes. It was not given any facts; it was just asked whether it was a good idea. One of the reasons that it said so was that Hinkley Point C nuclear power station is in west Somerset. A lot of it has been predicated on that. I therefore say to the Minister that I am not sure that is correct.

[Rishi Sunak]

It is not just the local enterprise partnership. On my understanding, all businesses, voluntary organisations and public bodies that submitted formal representations were in support or not against the proposals, so I do not think what my hon. Friend says is accurate in that sense. Obviously, he is against the proposals, but my hon. Friend the Member for Taunton Deane (Rebecca Pow), who represents the other area, is firmly in favour of them.

The key point is about respecting the views of local government and the local area. As I hope I have adequately demonstrated, not only did central Government not impose anything; we did not initiate anything. We responded to a proposal that was put forward and strongly supported by the local councillors and local councils involved.

We have also heard about the so-called democratic deficit and whether people of both districts would have an adequate voice in the new electoral arrangements. As hon. Members have said, that is a misperception in the minds of the constituents who wrote in about that. Again, I will give hon. Members the facts and leave them to make up their own mind. There will be a reduction in the number of councillors across the entire area from 83 to 58, but the number of electors per councillor for the new council is 1,927. To put that in context, the average for the country for two-tier district areas is 1,925. I would argue that that lies squarely in the average for the rest of England in terms of democratic accountability and representation for ordinary people. People should be assured by that.

I was asked about service delivery, the reasons for the merger and the financial savings. In the first instance, it is important to note that the merger will safeguard the existing savings that are in place between the two councils, which are in excess of £2 million. Financially, West Somerset Council is not in the best of shape. That is not my view, but the view of the council’s leadership, the statutory section 151 officer, the independent auditor and the county council. They all make the point that if West Somerset Council finds itself in further financial straits, that would jeopardise the entire shared partnership structure in place between the two councils, which generates savings and saves people money on their council tax bill. Therefore, in the first instance, the merger safeguards an existing way of working and an existing amount of savings.

[Mr Liddell-Grainger]

I am sorry to be so boring about this. The Minister covers a very rural area as well. He just said, “If West Somerset has a problem,” but it does not. It has balanced its books for this year, next year and the year after. It is doing well, but yet again we are being told that that is not the case.

[Rishi Sunak]

I tell my hon. Friend that that is not just my view, but the view of his own council and the statutory section 151 officer, who believes that without this merger, the future of West Somerset Council is “not viable”. It is also the view of the independent auditor in the comments they have made and of the county council. I know that my hon. Friend has corresponded with the Department over several months. We remain of the view that the opinion of all the people locally involved with the council believe that this merger will safeguard the savings and that without the merger the financial situation will be extremely difficult.

On the future relationship and service transformation, I was asked about employees. That will obviously be a matter for the new council but it is worth pointing out that the two councils already operate a relatively deep shared partnership structure and use common employees in a single area. It is unlikely that there would be significant changes but that will be a matter for them.

[Yvonne Fovargue]

Will the Minister comment on the view that at least 80 redundancies will be necessary to achieve the savings that are predicted for the first year?

[Rishi Sunak]

I have not seen that number; I am not sure where that has come from.

[Mr Liddell-Grainger]

That has come from the councils themselves. The unions have done a lot of work on this. It is one in three jobs; that is where the savings are coming from—by getting rid of people. It is not a real saving; it is imaginary because it is necessary to get rid of people to make the saving.

--- Later in debate ---

[Rishi Sunak]

It is important to note that when we talk about savings of £3.1 million, only £0.5 million comes from the merger we are considering today. The remainder is already in place through the joint working and will be safeguarded by the merger. In terms of the incremental change, £0.5 million as a percentage of £3.1 million is relatively small. We are talking about safeguarding the existing joint working between these two councils, where there is not enormous duplication of staff, because in most instances there is already one set of staff delivering for both councils.

More broadly, the larger district council will be better at joined-up proposals for growth, whether it is Hinkley or developing a new university. It feels it will better execute its function as a strategic housing authority and dealing with stakeholders, all of whom prefer the efficiency and productivity of dealing with one entity. It also believes it will strengthen its hand when applying for various types of funding.

Turning to a couple of specific points raised about a unitary proposal, the Department has not received any formal unitary proposal for Somerset. Of course, should one emerge—

[Mr Liddell-Grainger]

Could I help the Minister again? I feel I am being too helpful. On the reason the county wants a unitary body, the leader of the county council came to see me and I will quote him next week in Westminster Hall. He said, “I’m going bust and want to take over the districts to balance my books.” Minister, we have a problem; let us not be cavalier.

[Rishi Sunak]

Far from being cavalier, the Government believe in doing things properly by due process. Should a proposal emerge from the county, of course we will consider it alongside the criteria that the previous Secretary of State laid out in Parliament. As I reiterated at the beginning, central Government will, as committed to do in our manifesto, support local areas that bring forward locally-driven proposals and consider them fairly and appropriately.

[Mr John Hayes]

The salient point is that the Minister has persuasively made the case that this proposal has emanated from the locality. If the locality, with the communitive interest I described at its heart, has requested that the Government consider these matters, then the Government are doing entirely the right thing in doing so. If the Minister is right—it seems from his evidence that he must be—he has satisfied my concern that these things must be driven by local people and local interests.

[Rishi Sunak]

I thank my right hon. Friend on one of the rare occasions that someone has changed their mind during a debate. I agree with him that not only have proposals been driven by the local area but they have been formally consented to by the two councils involved.

My hon. Friend the Member for Bridgwater and West Somerset made a detailed point about the definitions in the regulations and order we are considering. Of course, Taunton Deane is a district with borough status. That is very clear in the interpretation section of the order, which defines district councils for the purposes of the order. The definition is:

“‘the District Councils’ means West Somerset District Council and Taunton Deane Borough Council”.

I hope I have assured him that that was not missed.

Lastly, unfortunately my hon. Friend the Member for Bridgwater and West Somerset has raised some very personal allegations against the leader of another council, as he has in the past.

[Mr Liddell-Grainger]

Many times.

[Rishi Sunak]

Indeed. It is fair to raise those things if that is what my hon. Friend wants to do, but he has been told multiple times by the former Secretary of State, the Minister responsible for local growth, my hon. Friend the Member for Rossendale and Darwen (Jake Berry), and the Prime Minister that if he has serious allegations of any criminal or fraudulent activity, he should bring those to the police. He was told that as early as November last year, and also before that. Six months later, no one has received anything. I again urge him that if he has evidence, the appropriate course is to take it to the police.

In conclusion, I thank all Members for their spirited contributions this morning. At this point, we should wish the councils in West Somerset and Taunton Deane all the best as they embark on a new, bright future together as a new entity—Godspeed.

Question put.