English Devolution and Community Empowerment Bill (Fourth sitting) Debate

Full Debate: Read Full Debate
Department: Ministry of Housing, Communities and Local Government
Miatta Fahnbulleh Portrait Miatta Fahnbulleh
- Hansard - - - Excerpts

Moving from devolution by deal to devolution by default is at the heart of the Bill. Clause 6 and schedule 2 are essential to achieving that. The Bill ensures that strategic authorities have a consistent set of functions, and these provisions standardise how they exercise those functions. Many existing strategic authorities have complex and varied arrangements for agreeing fundamentals such as budgets and transport plans. That makes it hard for the public to understand how decisions are made and, therefore, to hold the strategic authority to account.

The provisions in clause 6 and schedule 2 would create a transparent and consistent default voting arrangement—a simple majority. It would unblock decision making to ensure that the right decision, even if it is difficult, can be made. In mayoral strategic authorities, the mayor must be in the majority for a vote to pass. Mayors are directly accountable to all voters in their area, so it is right that decisions cannot be made if they disagree. The Government expect mayors and other strategic authority members to continue to work together to build consensus. We heard time and time again in the evidence sessions that the model works well when the mayor works in partnership with its constituent authorities, but it is important that one member cannot get in the way of the right decisions being made for the entire area. It is therefore imperative that clause 6 and schedule 2 remain within the Bill to ensure that mayoral strategic authorities can operate effectively, and to provide the public with clarity on how decisions are made, so they can hold these institutions to account.

Siân Berry Portrait Siân Berry (Brighton Pavilion) (Green)
- Hansard - -

I rise to speak to new clause 48, tabled in my name. I also want to raise another issue for consideration by the Minister at a future stage.

In clause 6, the new rules for mayoral combined authorities give simple majority voting for relevant decisions by bodies to adopt budgets or policies, such as spatial development strategies, local transport plans and other strategies set out elsewhere in the Bill. For example, schedule 2 outlines that

“a resolution to adopt the strategy is to be made by a simple majority of the constituent members present and voting”.

There are other rules to do with a tied vote.

I think that the Bill should also amend the Greater London Authority Act 1999 to give simple majority voting for decisions by the London Assembly on the budget and mayoral strategies of the Mayor of London. That is for consistency of decision making across the different authorities and bodies, and for fairness to London’s democracy. Along with many Opposition Members, this is something that I have wanted for some time now, as I was a member of the London Assembly in my previous job. In these Committee debates I will frequently bring up examples from my long experience of being part of an effective scrutiny body in a devolved authority at the strategic level—I feel that I have a good handle on how it works.

Using “a simple majority” is the right way to go about this. The Minister has talked about building consensus and working in partnership. I really value it when cross-party working can result in genuine dialogue, with mayors that will listen and make changes, and bodies scrutinising or working with them to put forward their own ideas and have them taken up. Those are all really healthy things for our democracy. New clause 48 would simply amend the parts of the 1999 Act that outline how the Assembly votes. Currently, the Act requires at least a two-thirds majority for any changes to be made, and the new clause would instead insert the words “a simple majority”. It is a very simple change, which the Minister should consider.

The second issue I want to raise relates to forward plans, which are incredibly useful for the general public, or anyone who wants to influence mayoral decisions and the decisions of combined authorities or local authorities. At the moment, only local authorities have this particular requirement written into law, under the Local Authorities (Executive Arrangements) (Meetings and Access to Information) (England) Regulations 2012, which clearly set out how key decisions are to be included in forward plans. I am not talking about planning decisions but key decisions, as set out in the schemes of delegation. Those forward plans are required to be published in advance, so that people who want to influence or scrutinise those decisions can bid to change them, or for things to be taken into account at the appropriate time.

Again, this certainly comes out of my experience in the London Assembly. It unanimously passed a motion in 2022 that was put forward by one of the Liberal Democrat members and me, which said that the Mayor of London should publish a forward plan. However, he did not agree to do that, as he said that he was complying with everything in legislation; so the answer seems to be for legislation to require both the Mayor of London and these new combined authority mayors to publish a forward plan along the same lines. Looking at the 2012 regulations, it would be very simple to change the current wording, “local authorities”, to “strategic and local authorities”, if the Minister wanted.

I also point the Committee to the excellent report published last month by the GLA oversight committee, a cross-party committee currently chaired by a Labour member of the London Assembly. It makes exactly the same request: for a forward plan of key mayoral decisions to be put into the 1999 Act. Because of the complexities of the different regulations, I have not tabled an amendment for such a change, but I hope the Minister would consider the question of effective scrutiny of these new bodies and the ability to influence them. I hope she could potentially come forward with a new clause at a later stage for us.

David Simmonds Portrait David Simmonds
- Hansard - - - Excerpts

The Opposition support the amendment; the principle of having a simple majority is sound. In oral evidence, we heard about why Manchester works and London does not, and there is a logic to implementing those measures consistently across the country. We support introducing that consistency.

There is a broader question, however. I understand what the Minister and the Government are trying to achieve; it would clearly be frustrating if one authority was effectively acting as a blocker. However, I asked the Minister earlier to give us some assurances about the treatment applied when financial impacts occur that affect one or more of the constituent authorities in a combined authority area. There will be cases—we have seen them in planning, for example—where an authority argues that to deliver its housing target, a site in another local authority’s area must be developed, because it does not have sufficient developable land to hit the target that it has been given; legally, it is not that authority’s decision. There will be other examples.

I am mindful of some of the Government’s amendments that introduce a lot more scope into this Bill for mayors and combined authorities to undertake their housing responsibilities. One of the main routes for funding is through borrowing against the housing revenue account, which is ringfenced. Each individual local authority has a legal duty to balance that account and the power to borrow against it; it also holds all of the legal housing duties and responsibilities. The purpose of the measures is to make mayors the vehicle for the delivery of asylum accommodation, as opposed to asylum hotels, as is the case now to some degree. Yesterday, on the Floor of the House, another Minister in the Department alluded to this in his response to a question about asylum accommodation.

Those decisions will have a significant impact on the legal obligations of the authorities that sit beneath the mayoral authority. There is a risk that being outvoted in a decision made at combined authority level would put an individual constituent authority in breach of its legal obligations to balance its dedicated schools grant, its housing revenue account or some other element of its council tax account. Will the Minister, either now or in writing, set out what arrangements will apply in the likely situation of a conflict between the legal obligations on a constituent authority to balance the budget and the strategic decisions put forward by the combined authority? How will the conflict be resolved without undue detriment to the constituent authority in particular, which is the one that will find itself in court?

Miatta Fahnbulleh Portrait Miatta Fahnbulleh
- Hansard - - - Excerpts

I will respond to the amendment to clause 48, and then I will pick up the specific questions from the hon. Member. The GLA has a different and long-established governance model. In London, the mayor is elected by the people of London to make decisions; the Assembly’s role is to scrutinise those decisions. As a London MP, I think that model has worked well for London for well over 25 years. It is tested and it strikes the right balance between the executive authority of the mayor and the scrutiny of the Assembly.

Siân Berry Portrait Siân Berry
- Hansard - -

It is notable that recently the London Assembly has, on a number of occasions, made constructive changes to the mayor’s budget at stage one of budget setting, which have simply been overturned at the second stage. This tendency, I think, is part of the growing need for a change in the threshold.

Miatta Fahnbulleh Portrait Miatta Fahnbulleh
- Hansard - - - Excerpts

We think that the model works well. We have heard representations from constituents, local authorities, Assembly members, and the mayor himself. Any model needs to evolve; as we think about how we expand the powers of the mayor, which we want to, we will also be thinking about reforming the GLA to make it fit for purpose in the 21st century. We will take into consideration some of the points that have been made in this Committee.

On the specific question about decisions at the strategic authority level putting an individual local authority in breach of its legal obligations or jeopardising its financial viability, all our experience of combined authorities is that they always operate within the legal duties of constituent authorities. I struggle to think of an example where constituent authorities have been put in such a position by their mayor and the decisions of the collective. There are sufficient safeguards in place to mitigate that risk.

I hope that majority working will benefit the collective area. This Government will make sure that clear legal obligations on constituent authorities are not breached. I am happy to write to the hon. Member to provide further reassurance on that point. I think we agree that we want clear and effective decision making with a democratic mandate, that will not jeopardise individual authorities by forcing them to breach their legal requirements and/or putting them in financial distress.

--- Later in debate ---
David Simmonds Portrait David Simmonds
- Hansard - - - Excerpts

The Opposition have some sympathy with the points that have been made in the debate. It is an area in which there is scope to move towards a degree of consensus. I think that we all recognise that part of the underlying thinking behind the mayoral combined authority is that it brings a new element of leadership, and from those models where they are established, such as in London, we can identify some of the issues. As we heard at the start of the Committee, there is clear evidence about accountability.

One of the issues that persists in London is that there are a number of advisers—whether they are commissioners or not is a moot point—who undertake sometimes quite highly paid roles on behalf of the mayor, but they are not visibly accountable to the GLA, the boroughs or anybody else. That begins to undermine public confidence, and it clearly creates a sense of distance between those who are elected and those who they are there to serve.

While I agree that there is no reason why somebody who is elected should not occupy those roles, one of the issues with the proposed amendment is that there is clearly a risk of constraining them—in particular, in relation to the wording of the proposed amendment. When we consider some of the statutory roles that might be occupied—directors of children’s services, statutory directors of social care, monitoring officers, section 151 officers and others who have legal duties—there is a risk that by defining it as narrowly as the amendment does, we create some concerns about the interaction between those who are part of the professional officer corps that serves local government and those who are political appointees. I do not think that that is intentional; it is simply a risk that arises from the way in which it is drafted.

We will not be supporting the amendment, but I am mindful of the comments that have been made by those on the Government Benches about the need to ensure that those who occupy the roles are fit to do so, and that they are publicly accountable, because they will be public servants and they need to be answerable to effective scrutiny measures for the work that they do.

Siân Berry Portrait Siân Berry
- Hansard - -

I want to participate in this debate, despite having not tabled any amendments. I am grateful to the Members who have done so. The issue of commissioners is interesting. It is also interesting that the Government have chosen this model to codify in the Bill. From my experience, I believe that the London model of how this is done is far ahead of other combined or strategic authorities that already exist, and of the Government’s imagination in terms of the Bill. London Assembly members are used to having the equivalent of commissioners—deputy mayors—to scrutinise. The Assembly members do that effectively, not only by asking the deputy mayors questions and making them accountable, but also by providing them with evidence and new ideas, and by highlighting problems across the strategic area. Many effective changes have been brought through in that way.

However, to have those kinds of commissioners without that level of scrutiny is a mistake. In that respect, I am not in favour, and I am not convinced by the argument from my Liberal Democrat colleagues that people who are separately responsible for running services—many of them statutory services—and who have a lot of other responsibilities and duties in the constituent part of the strategic area are the right people to be given those kinds of roles. It is a really interesting question.

I have also found that, aside from a very short period when a Green deputy mayor was appointed to serve under an independent mayor in London, most mayors seem to be allergic to appointing anyone from an opposition party to any of those roles. There are examples of independently minded, effective, delivery-focused people. Chris Boardman, in Manchester, was mentioned. However, there does seem to be a party political element to the appointment of the roles, if the Minister and the Chair were to look at the record.

In conclusion on this clause—and it will come up in relation to other parts of the Bill—we collectively need a wider discussion about scrutiny and governance of the new roles. Some of the comments earlier from the hon. Member for Ruislip, Northwood and Pinner suggested that if we all got together in a room, we might be able to come up with a better idea than what is being proposed. I very much agree with that. There are things that we should be discussing.

It was pointed out to us in evidence that we will lose something like 90% of our elected representation in certain areas. In certain parts of the country, people will end up with somewhat of a deficit of overall elected representatives—people to come to with casework. More should be looked at on whether or not a model more like the London Assembly could be adopted, where people are separately elected with strategic responsibilities. In London, there are constituency Assembly members, and Assembly members who are London-wide and take a more strategic view. Those are good models that have worked, and the Government and others should look at that. It is not up for debate today, but my new clause 15 proposes a review of scrutiny, which I will argue for later. When the Government come to look at this in review, which inevitably they will have to do, I hope they will look again at potentially having more directly elected—

David Simmonds Portrait David Simmonds
- Hansard - - - Excerpts

Will the hon. Member give way?

Siân Berry Portrait Siân Berry
- Hansard - -

I will.

David Simmonds Portrait David Simmonds
- Hansard - - - Excerpts

I am listening attentively to what the hon. Lady described. We heard in evidence from Councillor Sam Chapman-Allen of the District Councils’ Network that under these proposals, shire England stands to lose 90% of its elected representation, which the hon. Lady referred to. There is not anything really concrete in the Bill that sets out what scrutiny should look like—what those minimum standards should be. There are elements about conduct and things like that, but that is very basic. Does the hon. Lady have a view about what a good model should look like, so that local residents can exercise their control over what happens in their neighbourhood effectively?

Siân Berry Portrait Siân Berry
- Hansard - -

I am attempting in my speech not to be too biased towards what I am used to, because that is a failing as well. We should discuss this in a very open way. Other new clauses I have tabled contain proposals for things such as a citizens assembly. We should look at international examples as well. When there are proposals to spend a significant amount of money on the commissioners, there is value in spending an appropriate amount on decent scrutiny and elected representatives. Again, I am biased—I am an elected representative. I think we are good value, but that is a case to be made.

Finally, I cannot find any mention in schedule 3 about guidance that the Secretary of State may issue to commissioners about conduct, standards and transparency. I would like some reassurance from the Minister about guidance on those aspects of the job. Even if they are not elected, they are accountable to the public and must be given a process and regime of standards, and potentially be brought into existing standards systems. Without scrutiny, standards and regulations to govern their behaviour, I worry about this in the same way as several other Members today have.

Miatta Fahnbulleh Portrait Miatta Fahnbulleh
- Hansard - - - Excerpts

Commissioners can and will support mayors in getting the job done for their communities. They are not compulsory. There is no obligation on a mayor to appoint commissioners, but it gives the mayor the option of increasing capacity and expertise to do that. The hon. Member for Brighton Pavilion talked about the example of Greater Manchester, where they have council leaders who are portfolio leads. It is worth pointing out that Manchester also uses commissioners—for example, on active travel—so it can be complementary or can supplement. It is just giving them an additional set of levers in order to respond.

It is also worth pointing out that there will be some roles that the mayor has accountability for that they simply cannot delegate to councillors—for example, strategic planning powers, where direct delegation to a commissioner might expand the mayor’s capacity to dispense with that responsibility. However, to the point about checks and balances, which has been made time and again, it is important to be clear that we completely agree on the need for accountability for commissioners. They will be accountable to the mayor for their performance, who has the power to terminate their appointment, and the combined authority or combined county authority must also agree before any non-mayoral functions are delegated to the commissioner. Critically, the combined authority or combined county authority overview and scrutiny committee will also have the power to recommend the termination of commissioners if they think the commissioner is not performing or delivering. A two-thirds majority of members of the authority is required to accept that recommendation.

Siân Berry Portrait Siân Berry
- Hansard - -

Does the Minister believe that the people who are able to recommend that the commissioner be terminated have sufficient ways to discover whether or not they should be?

Miatta Fahnbulleh Portrait Miatta Fahnbulleh
- Hansard - - - Excerpts

The hon. Member made the point about the scrutiny of commissioners, which is a fair and valid point, and my hon. Friend the Member for North West Cambridgeshire made the point about flexibility in different contexts, particularly for smaller strategic authorities. We have come at this in such a way as to allow local areas as much flexibility as possible, but these are valid points about making sure that the model is flexible enough to respond to specific contexts. We will provide further detail in statutory guidance on the selection and appointment of commissioners, as well as other operational matters that the combined authority or combined county authority will need to consider, and we will take some of the points that have been raised as we do that in due course.

--- Later in debate ---
David Simmonds Portrait David Simmonds
- Hansard - - - Excerpts

That was a fairly shameless political pitch, but we should just reflect on the debates that took place across the Dispatch Boxes yesterday during Housing, Communities and Local Government questions, when it was highlighted that we have a Mayor of London who is quite happy to issue precepts to indulge his personal political priorities but is an abject failure in discharging his mayoral functions around housing. Thousands of people are unable to find homes in the capital because the mayor is failing to build out more than 300,000 planning permissions that have already been granted by the local authorities. That is an injustice that is being inflicted on the citizens of our capital, and this provision, as envisaged by this Labour Government, potentially inflicts the same, or an even greater, injustice on other areas of the country. For those reasons, we remain deeply concerned about it.

Particularly in an environment where, as we heard earlier, local authorities were left £1.5 billion worse off—net—by the Government’s decision to introduce additional taxes on their employees, the temptation will be for the mayoral precept to be seen as the catch-all or safety valve through which additional taxes can be extracted to meet whatever demand central Government choose to impose, without central Government being accountable for it. That is why we oppose the measures.

Siân Berry Portrait Siân Berry
- Hansard - -

I had not previously heard the Conservatives’ argument on this issue, and I have to say that I disagree. The Minister said that the original intention of the policy was to allow for a wide range of precepting, and if there is one thing that directly elected mayors are really accountable for, it is the level of precept that they set.

I am in favour of creativity in conversations with the electorate about what initiatives, appropriate to the local area, might be funded by precept on a short-term basis or just in the local area. The way that the provision is set up allows mayors to be properly accountable for that. I worry less about it resulting in huge tax rises without consent, because consent is built in at election time.

I appreciate the concerns about austerity continuing in councils that are underneath and part of the combined authority if mayors are taking up available taxpaying powers. In every debate in this Committee, I would love to bring up the fact that all this reorganisation is happening in the absence of an end to austerity. The Government need to provide more funding to local councils so that this is not all being taken in council tax, which is a very unfair tax.

Vikki Slade Portrait Vikki Slade
- Hansard - - - Excerpts

I have no principled objection to the mayor setting a precept. I found it confusing when I heard Mayor Houchen explain how he had a zero precept. How does anything get done? Where does the money come from? [Interruption.] I am sure he has a salary, and I am sure he has an extensive office that is paid for by someone. I accept that the principle of a precept is, in some respects, self-limiting, but what bothers me is that the combined authority mayors have no referendum cap, unlike upper-tier, lower-tier, police and crime or fire authorities.

It is fire authorities I particularly want to speak to, because although some Government amendments have been tabled on the role of the mayor in terms of fire and rescue, there is almost silence in the Bill about the role of the fire and rescue service, while embracing it completely and almost making the whole service disappear. I am really concerned that fire authorities are already desperately under-resourced. Dorset and Wiltshire Fire and Rescue Service gets £1.76 a week per household. It has desperately been trying to get a 20p per week increase, but has been told, “No, you can’t have that.” There is nothing in the Bill that protects and ringfences any money for fire services, whereas there is more talk about police services. I am looking for some reassurance and commitment about how fire services funding will be properly resourced and ringfenced to make sure that no area suffers as when we had those horrendous wildfires, where fire services had to beg, borrow and steal equipment.

--- Later in debate ---
Miatta Fahnbulleh Portrait Miatta Fahnbulleh
- Hansard - - - Excerpts

Clause 16 will prevent individuals from being a Member of Parliament, or of the devolved legislatures in Scotland, Wales or Northern Ireland, and a mayor of a strategic authority at the same time.

The Government are clear that mayors are central to delivering the growth, economic prosperity and change that local communities want. Already, the impact of our mayors, from West Yorkshire to the North East, from Greater London to the West Midlands, is being felt clearly. However, their responsibilities will only increase once this Bill is in law.

It is right that the role of mayor receives the officeholder’s full time and attention. Both MPs and mayors have a duty to represent the constituents that elected them. Fulfilling two different democratic roles could lead to conflicts of interest, given the differences in public expectations for each role and the differing responsibilities of a mayor and an MP. Clause 16 prevents that conflict and will ensure that regions benefit from their mayor’s full time and attention.

Siân Berry Portrait Siân Berry
- Hansard - -

I agree with the principle of not having too many people able to do double-hatting, but it is a fact that there have been overlapping periods when mayors of different combined authorities and London have also been MPs, either at the beginning or end of their term. That has been dealt with in a pragmatic way, with nobody overextending those kinds of double-hatted jobs.

As I understand it, and I would like the Minister to clarify this, writing this rule into statute would mean that, while nobody would be prevented from campaigning to be a mayor or an MP while in either of these jobs, at the moment they are elected, the situation then becomes illegal. An instant resignation takes place on that day. There would be immense disruption across a wide area—perhaps not so much for one constituency, as we have got used to having by-elections for various reasons, but in holding a mayoral by-election.

I wanted to check whether the Government’s intentions here, in making that resignation statutory and instant, are not a bit too much, when these issues have been previously worked out. Does there need to be more detail in the clause to allow for a transition period?

David Simmonds Portrait David Simmonds
- Hansard - - - Excerpts

The Opposition have a high degree of sympathy with the points made by the hon. Member for Brighton Pavilion. It is very striking when we compare our local and regional democracy with those of other countries: in our nearest neighbour, France, with the cumul des mandats, there is almost an expectation enshrined in their politics that, for someone to become Member of the national Parliament, they will have represented their area as a mayor. Indeed, when President Chirac cast around to find someone who was eminently qualified to become Prime Minister of that country, he took the view that there was nobody within the National Assembly who could possibly meet that standard; it needed to be somebody from local or regional government. He lighted on Alain Juppé, the well-reputed mayor of Bordeaux, who served with great distinction as Prime Minister. If we begin to introduce restrictions of this nature, it will significantly constrain the ability of our politics to rise to the challenges that our communities and our areas face.

--- Later in debate ---
Miatta Fahnbulleh Portrait Miatta Fahnbulleh
- Hansard - - - Excerpts

If I may finish, I will give way to hon. Members. The point about transition is a fair one. To clarify, we are setting out in legislation that, at the point someone is elected as a mayor, they resign as an MP, and vice versa. It is at the point of gaining office that this comes into effect. In response to the hon. Member for Brighton Pavilion’s example of the transition period when campaigning, there are flexibilities within that.

Siân Berry Portrait Siân Berry
- Hansard - -

I appreciate that, but these are two things in different directions. A sitting mayor who becomes an MP would need to resign as mayor that day, given what the Minister has just outlined for us. A mayoral by-election across a large area is a much bigger thing than a parliamentary by-election, and I am not sure that making it instantly statutorily illegal has been properly thought through.

Miatta Fahnbulleh Portrait Miatta Fahnbulleh
- Hansard - - - Excerpts

I will take the other interventions.