Christchurch and East Dorset Councils: Proposed Abolition

Debate between Simon Hoare and Marcus Jones

Thursday 1st December 2016 Commons Chamber

[The Parliamentary Under-Secretary of State for Communities and Local Government (Mr Marcus Jones)]

I thank my hon. Friend the Member for Christchurch (Christopher Chope) for securing this important debate on the proposals for reorganising the governance of Dorset. I welcome the opportunity to discuss the issue. My hon. Friend’s interest in these matters is well known. I recognise his long experience of local government and his ministerial experience: back in the 1980s, he was a Minister in a Department that was a predecessor of mine.

Let me say at the outset that what Dorset councils are doing is exactly what councils should be doing. They are looking into how they can deliver better services to the towns, villages and people of Dorset, how they can provide stronger, more efficient and more effective leadership, and how they can generate significant savings to support frontline services. None of that is to say that we have concluded that any of the proposals on which the councils have consulted, and will consult further, are the right ones. What is right is that there should be consultations, discussions and analysis. The councils may then decide that it is right for them to submit a formal proposal for governance change to my right hon. Friend the Secretary of State for his consideration.

At this point, I should add that the nine councils have already submitted a formal proposal to create a combined authority for the area. They would like it to be established by April 2017. They think that it would serve as an effective mechanism enabling them to intensify their collaboration in the provision of economic development, regeneration and transport services throughout their areas. We are considering the proposal, and expect to respond early in the new year.

All this is taking place against a wider canvas of significant change throughout local government. At a time of fiscal constraint, and as the demand for services such as adult care increases, the best of local government is showing how it can improve the effectiveness and efficiency of services as well as driving the economic growth on which the prosperity of places depends, and that is what Dorset councils are doing. The Government strongly believe that local government should be as efficient, effective, transparent and accountable as possible. The right approach to any reform of local government is bottom-up: that is how councils figure out what is right for their areas and come up with locally driven solutions. It is the approach that underpins the provisions that the House considered some 12 months ago in what is now the Cities and Local Government Devolution Act 2016, and it is the approach that we are following for the purposes of both devolution and governance changes.

[Simon Hoare]

Can my hon. Friend confirm that the responses from the councils, when they discuss the consultation and indeed the recommendations, do not have to be unanimous across all nine for a submission to be made to his Department, and can he also confirm—maybe this is rather good news—that unanimity does not need to be delivered between the MPs within the county as well?

[Mr Jones]

Technically, my hon. Friend is right, but our Department is absolutely clear that we want any reforms to be locally driven, and once a local area has its blueprint for any reforms we will listen carefully, and the Secretary of State will decide whether the reforms are acceptable to him.

There are discussions about local government reorganisation across the sector. These include discussions about moving to more unitary structures, as in Dorset, and recently a detailed proposal has been put forward from Buckinghamshire to transform into a single unitary authority. We have also seen the recent research published by the County Councils Network looking at aspects of reorganisation. It has published two reports, which will contribute to discussions and debate about local government reorganisation. These point out financial benefits and savings that it is suggested may be possible if councils choose to unitarise. These reports suggest a saving of between £2 billion and £3 billion over five years net of transition costs, if all 27 county councils became single unitary authorities.

Dorset has told us that the options it is discussing, which include a reduction in the number of local authorities through unitarisation, could generate substantial savings of at least £108 million in the first six years. We are clear that appropriate governance reforms, which is what we want to have, must have the potential to deliver significant benefits, but reform, and in particular reform to include unitarisation, is not always going to be right for every area. It may not be right for Dorset, and it may not be right in Buckinghamshire, and it is certainly not going to be compulsory or imposed where there is no support for it.

The Government remain 100% committed to being open to innovative bottom-up proposals that will improve local services, enhance accountability and deliver financial sustainability. We welcome local government pursuing and discussing these ideas, particularly when done, as in Dorset, collaboratively and constructively.

The assurance I can give my hon. Friend the Member for Christchurch is that if Dorset does come forward with proposals we will consider them very carefully and fully. We will want to see evidence that any proposal submitted offers a better local service, greater value for money and stronger leadership, as well as putting in place a more financially sustainable structure and delivering significant savings.

Local Audit (Public Access to Documents) Bill

Debate between Simon Hoare and Marcus Jones

2nd reading: House of Commons
Friday 25th November 2016 Commons Chamber

[Simon Hoare]

My hon. Friend is clearly exploring the opportunity for another career; I will leave it to the House to consider what it might be.

This important Bill is required because, as was said when we discussed Lords amendments to the Investigatory Powers Bill and section 40 of the Crime and Courts Act 2013 on freedom of the press and Leveson, we are seeing a big diminution in local and regional media, and that is having a significant and damaging effect on how information is shared nationally. The days when the local newspaper reporter, with his or her pad and pencil, attended the finance committee, full council, cabinet or the planning or housing committee have, regrettably, gone. It is now often the case that one journalist covers a very large geographical area, and that is not restricted to rural areas; it is also a phenomenon in town and cities.

My own part of the world, North Dorset, does not have a daily or weekly newspaper. We have the most excellent publication, Blackmore Vale Magazine, and Valley News. The first is weekly, the second monthly. Those free publications are available to the subjects of North Dorset—if you live by the sword, you have to die by the sword when you make those sorts of remarks—and they are excellent. That is how people get news, but they do not have the staff or the journalists to cover district or council meetings.

[The Parliamentary Under-Secretary of State for Communities and Local Government (Mr Marcus Jones)]

My hon. Friend has hit the nail on the head. If the journalist behind a small publication lived in Poole in Dorset, that person—or subject, as my hon. Friend puts it—would not be able to get the information under discussion. He is showing why the Bill is so important.

[Simon Hoare]

My hon. Friend demonstrates his perspicacity, and that is why he is a Minister of the Crown and I am not. He gets my point entirely. A vacuum is being created and it needs to be filled, if for no other reason than democratic accountability.

In all seriousness, we need to consider a couple of caveats, if and as the Bill proceeds, which I hope it will. When the Freedom of Information Act went through this place, it was said that it would not represent a financial burden to local authorities, but it has and it does. We have to consider the Bill against the backdrop of a prevailing picture of a change in local authority funding and a reduction in the direct grant, as we continue to hoover and shovel up the mess left by the Labour party at the end of its period in office.

We also have to take into account the fact that there has been—I welcomed this when I was a local authority member and championed it hugely—an enormous local government reorganisation of shared and combined services. It is also the case—I am sure that this will resonate with the hon. Member for Oldham West and Royton, given his experience of local government—that there are far fewer local authority officers who are able to deal with requests from the public. Moreover, local government reorganisation—this is certainly the case with my own council in Dorset—will involve unravelling, over probably the next three to 10 years, the financial meshings and harmonisations of council taxes.

Local Government Reform

Debate between Simon Hoare and Marcus Jones

Tuesday 6th September 2016 Westminster Hall

[The Parliamentary Under-Secretary of State for Communities and Local Government (Mr Marcus Jones)]

It is a pleasure to serve under your chairmanship, Mr Howarth. I thank my hon. Friend the Member for Elmet and Rothwell (Alec Shelbrooke) for securing this important debate and note his report on local government reform. I certainly welcome the opportunity to discuss this matter. My hon. Friend said that he wanted to trigger a debate on how local authorities are governed, and he certainly has triggered debate in this Chamber. There have been many, varied views from hon. Members and colleagues who have considerable experience in local government, including my hon. Friend.

Local authorities play a vital part in all our lives. They deliver local services, from collecting our bins to caring for some of the most vulnerable citizens in our society. At a time of wider public sector fiscal constraint, and as demand for many of the services increases, the best of local government has shown itself to be agile and enterprising. Government too are focused on ensuring that wherever people may live, they benefit from effective and efficient services. We committed to that in our manifesto and we will continue to set the right conditions for that to happen. We have committed to giving councils greater flexibility and control over their budgets, introducing the ability to retain 100% of business rates in their areas, giving them greater certainty through offering guaranteed funding across this Parliament, rather than annual budgets, and offering the ability to use capital receipts from sales to fund innovation and reform of local authority services.

I share my hon. Friend’s desire for local government to be efficient, effective and accountable. As I know many councils believe, more can be done to improve local government and service delivery, and to provide accountable and stronger local leadership. However, I do not believe that change should be centrally mandated. The right approach is bottom-up, where the initiative is taken locally. When I come to mention my hon. Friend’s comments in more detail, I will elaborate on that.

That is the approach underpinning the Cities and Local Government Devolution Act 2016. It is the approach that we are following for devolution and bringing about governance changes, whether as part of a devolution package, in anticipation of a devolution package, or free-standing to give local people and taxpayers a better deal. Government enacted the Cities and Local Government Devolution Act to enable us to take proposals forward and to implement them where we, and Parliament, are satisfied that they will deliver the better local governance that an area is seeking. There must be a good deal of local consensus. Any new structures must be sustainable and facilitate public service delivery, including effective partnerships with other public agencies, and they must also avoid any unnecessary fragmentation of local services.

Our manifesto set out the need to

“devolve far-reaching powers over economic development, transport and social care to large cities which choose to have elected mayors.”

We have already achieved significant success with 10 devolution deals agreed, nine of which either have established or will establish mayoral combined authorities, covering 30% of England’s population. We remain open to discussing credible proposals from other areas. I will go on to clarify some of the points raised, in particular by my hon. Friends the Members for Isle of Wight (Mr Turner) and for Cleethorpes (Martin Vickers).

The deals that we are talking about are to give local leaders the power to drive growth in their areas, but I would reiterate a comment that I have made many times before: there is not a one-size-fits-all solution. Devolution is not just about our largest cities; it is for the whole country—cities, towns and rural areas of all sizes. I have also said many times before that each deal will be negotiated to meet the needs of the area in question. However, devolution must include effective, efficient and accountable governance arrangements commensurate with the size and scope of the powers to be exercised. In some areas, that might mean that local areas may wish to look again at their governance structures.

The report by hon. Friend the Member for Elmet and Rothwell also recommends changes to local election arrangements, including moving to whole council elections and single member wards. This is generally for the Local Government Boundary Commission to consider, but that does not mean councils cannot approach the commission to request a review of their electoral arrangements, should they wish to. My hon. Friend’s comments today may well stimulate significant debate in that regard.

The role of a councillor has been discussed, but I would certainly say that a councillor is a community champion, and that the role is a vocation and not necessarily a profession. That is not to say that councillors do not bring significant professionalism to their roles; they make complex decisions that impact on the lives of tens of thousands of people in their areas. They do that repeatedly and successfully and, in my experience, the vast majority of councillors do it in an extremely professional way. In keeping with that vocational role, councillors receive not a salary but an allowance to ensure that they are not left out of pocket as a result of performing their public duty. Standardising a scheme of allowances, as my hon. Friend mentioned, would go against the principles of localism and devolving power to local authorities. We should trust councillors to ensure that the scheme of allowances they set is fair and proportionate.

Certainly, having a full-time job and being a councillor can be a challenge. I know that a number of hon. Members in this room have experienced the challenge of juggling different roles. My experience is that I was the leader of a district council, I had a full-time job and, latterly in that role, I was also the parliamentary candidate. I did feel as though I was spinning lots of plates and trying to run from one end to the other to keep those plates in the air. I do think there are benefits, as one or two hon. Members have mentioned, in having councillors that can bring their employment experiences to the council chamber. There are also benefits to people being able to take their experiences of the council chamber and the council back to their workplaces. That can benefit businesses and the roles that they undertake in their private capacity.

At this stage, let me pick up a few points that have been made. My hon. Friend gave us a very eloquent run-down of the history of local government. This Government have used that history to learn significantly from what has happened, which is why we have gone for a bottom-up, rather than a top-down, approach.

My hon. Friend mentioned the importance of parish councils and town councils, and the Government recognise that. He said that one or two areas in his constituency may benefit from having a town council, and I would direct him to have a look at Sutton Coldfield Town Council, one of the latest town councils to come into being. It is in a district of Birmingham, which is the largest local authority in the country, so he may want to look at that example.

My hon. Friend made an important point about how we conduct local government elections. He and I are absolutely on the same page, as are the Government, on retaining first-past-the-post elections as the best way to hold elected representatives to account.

[Simon Hoare]

The Minister mentioned town and parish councils. Clearly, with devolution there is a flow down to a more granular level, and we all welcome that. May I invite him to give some departmental thinking time to the codes of conduct and standards? They are very clear on the lines of communication at a county, district or borough level, but are less so at lower levels of local government. As they are going to be handling more money and be more involved in the delivery of often complex local infrastructure and facilities, we need to have a little think about that, because there is a lot of confusion about which rules cover town and parish councils and which do not.

[Mr Jones]

As ever, my hon. Friend makes an excellent point. Parish and town councils are there to serve local people; they should have transparent arrangements and be accountable to local people. That can obviously be done through the ballot box and through parish polls. Generally, when there is an issue of standards, the person with that issue can seek redress through the monitoring officer of that local authority, which is usually the principal council for that area. That said, my hon. Friend makes an important point and the arrangements in that regard are something that we constantly look at. We will continue to do so.

Let me mention an issue raised by my hon. Friend the Member for Cleethorpes, who welcomed the devolution agenda and having a strong and accountable elected mayor. I reassure him that there is no change in policy in that regard. The choice about whether a local area wants an elected mayor is very much one for that area, but when significant and ambitious powers are to be devolved from Whitehall and from Secretaries of State, who are currently accountable in the Chamber to Members of this House as the local representatives, we— understandably, in my view—require a strong figure who would be locally elected and locally accountable.

Local Government Funding: Rural Areas

Debate between Simon Hoare and Marcus Jones

Monday 11th January 2016 Commons Chamber

[Mr Jones]

Let me make some progress, before I take any more interventions.

[Simon Hoare]

rose—

[Mr Jones]

Yes, I will give way.

[Simon Hoare]

I am enormously grateful to my hon. Friend. The four-year period to reduce and remove the RSG is understood across the local government piece. Will he advise me what I can say to Dorset County Council, and indeed what colleagues from Buckinghamshire can say to their county council, about what happens in two years’ time when the RSG disappears? All their budgetary planning is now shredded.

[Mr Jones]

That brings me back to why we introduced a four-year settlement. In a moment, I wish to talk about the move to full business rate retention. Hopefully, within those comments, I will be able to reassure Members that, at this point, it is by no means a done deal.

We have given careful consideration to the challenges that rural areas face. That has led us to propose an increase in support for the most sparsely populated rural areas by increasing the rural services delivery grant from £15.5 million this year to £65 million in 2019-20.

As hon. Members know, the new homes bonus was due to come to an end, but our view is that it has been a useful contributor to the increase in planning permissions being granted, with payments since its introduction in 2011 totalling just under £3.4 billion, reflecting the building of more than 700,000 new homes and the bringing back into use over 100,000 empty homes. We have been able to retain the new homes bonus, subject to reforms on which we are consulting and on which views are being encouraged.

Overall, our proposals are fair. Core spending power for councils will be virtually unchanged over the Parliament—£44.5 billion in 2015-16, and £44.3 billion in 2019-20. This is a substantially slower pace of spending reductions than councils had to deliver between 2009-10 and 2015-16.

The rural-urban funding gap has been falling year on year. Between 2012-13 and 2015-16 it went down by over £200 million, decreasing from 11% to 6% for unitary authorities and from 19% to 11% for districts. Our proposals mean that it will continue falling throughout this spending period, and core spending power will increase by 0.2% for rural areas, compared with a 0.7% reduction for urban areas, by the end of the Parliament.