Localism Bill

Debate between Simon Hughes and Douglas Carswell

Monday 17th January 2011 Commons Chamber

[Simon Hughes]

Tempting, but completely irrelevant to the Bill. I will talk to the right hon. Gentleman about that on another occasion.

The Bill has six substantive parts and one additional part which is about EU fines, a slightly esoteric subject about which I know there is controversy. I shall deal briefly with what seem to me to be the good things and make the occasional plea for the Government to go further.

On local government, the power of general competence is welcome, but I hope the siren voices suggesting that there should be frequent exceptions are resisted. We need to make sure, as I have heard the Secretary of State say, that we give councils the power to act except when the law says they cannot. That is what the measure should be about. Getting rid of the Standards Board is popular and right. Introducing a better system for making public how senior pay is decided will raise confidence among local communities. The right of councils to choose their own committee structure is welcome: many councils will want to go back to a committee system to involve their back benchers more. Making sure that councillors play a full part is especially welcome.

One thing about which we on the Liberal Democrat Benches have some concern is the shadow elected mayor proposal. I know what the coalition agreement says and I know that the coalition is committed to holding a referendum in the 12 largest cities outside London. I am not dissenting from that, but we ought to allow those cities to have that debate and then, if they vote for directly elected mayors, so be it. There are arguments on both sides.

On local government finance, the Government are starting down the right road. I welcome the fact that there is to be a much greater power of discretionary relief for businesses, and a new power for small businesses. Those are important matters. The big change has not yet happened and is far too controversial to be hidden away in such a Bill, but eventually I hope we will come to a much better form of local government finance generally. The Secretary of State knows that my colleagues and I believe that something like local income tax and, for land, something like site value rating, will be a much fairer system. I realise that that is too much to bite off and chew in the first Bill, but progress is being made in the right direction.

[Mr Douglas Carswell (Clacton) (Con)]

Will the right hon. Gentleman give way?

[Simon Hughes]

One more time, then I will press on to the end.

[Mr Carswell]

I do not wish to intrude on that celebration of the Bill’s sound localist credentials, but might the Bill be more effective—and offer more real localism, rather than lip service to it—if it offered to devolve control over revenue, something that has been Lib Dem policy for many years? Does my right hon. Friend not agree that the Bill should disperse power over local government finance to the same extent that it does the power over planning?