Local Government Finance Bill

Debate between Robert Neill and Richard Fuller

Wednesday 31st October 2012 Commons Chamber

[Robert Neill]

I do not see it as a problem; the issue can be grappled with and dealt with. The right hon. Gentleman and I have debated unitary restructuring on more than one occasion over the years, and we end up on different sides of the fence. My point is that through co-operation it is possible to ensure that the economic development levers, which generally sit with the county council, can be sensibly allied to the development levers, which sit with the district council. A good example can be found in Essex, as Chelmsford has a successful local planning authority in Chelmsford borough council—it might now be Chelmsford city council since the town has been given city status—and has not experienced the friction that is sometimes used as an argument to justify unitary authorities. Both the county and its county town have recognised that it is in both their economic interests to grow Chelmsford as a significant hub in that part of the world. In that case, unitary reorganisation was not necessary to achieve significant economic regeneration in Chelmsford.

I have to say that some of the downsides of unitary reorganisation that we saw under the previous Government, when it was enforced against the wishes of the local authorities, were a distraction from the serious job of getting on with economic development, promotion of the area and encouraging investment by sensible planning decisions. These issues can never be seen in isolation. The incentives in the Bill, linked with the duty to co-operate in planning terms, provide a further incentive for sensible arrangements not only between adjoining local planning authorities, but with the county authority as a highway authority, as highway considerations are often important in determining where development is acceptable and therefore where the investment might come from.

[Richard Fuller (Bedford) (Con)]

rose—

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[Robert Neill]

There is a bit of queue. I shall give way to my hon. Friend the Member for Bedford (Richard Fuller) first, as he rose first.

[Richard Fuller]

I am grateful for my hon. Friend’s generosity in giving way, first because I know that he is eager to deal with other matters in his speech and I do not wish to delay him unduly, and secondly because to describe myself as a novice when it comes to local government finance would be an insult to novices throughout the country. I have learned more about the subject as a result of listening to my hon. Friend, who exhibits the patience of Aristotle teaching one of his slower students.

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[Robert Neill]

As you know, Mr Deputy Speaker, the last thing I would ever wish to do is filibuster. I have spent a large proportion of my life dealing with local government finance, and I wish we could explain things in one simple sentence, as that would make life a lot easier for many of us.

I have outlined the essence of the issue, and the reasons why we have references to billing authorities and major precepting authorities. There are other precepts; the parish council can levy a precept, but it is not a major precepting authority. Very occasionally, there will also be certain levies put on top, but for our current purposes we need not discuss that and add further confusion.

Usually the district council in a two-tier area is the planning authority, and it is also the billing authority. Importantly, however, for investment purposes—this is where this point links in with the question of business rates retention—the highway authority will tend to be the county council, which often has significant economic development resources that district councils do not have, and the education authority will be the most significant body for the skills agenda and in attracting the required work force. That is why pooling makes sense. It links the pooling of resources with pooling and collaboration on a raft of issues, which is essential in the modern world.

[Richard Fuller]

For many of us, Mr Deputy Speaker, my hon. Friend’s speech is not a filibuster; it is a master class in explaining some of the intricacies of non-domestic rates and pooling. Having listened to his account of the complex relationship between different authorities, I think I may be slipping from my novice ranking. I ask my hon. Friend to return to his response to the hon. Member for Hartlepool (Mr Wright), who referred to today’s report by Lord Heseltine. Does my hon. Friend agree that there are some valid arguments in Lord Heseltine’s suggestions on unitary authorities, as they will help to simplify the relationship between businesses and local authorities? This is an extremely important point. As this is a master class, I think all of us would like to hear a very full response from my hon. Friend.