Cities and Local Government Devolution Bill [Lords]

John Bercow Excerpts

Monday 7th December 2015 Commons Chamber

[The Parliamentary Under-Secretary of State for Communities and Local Government (James Wharton)]

I beg to move, That the clause be read a Second time.

[Mr Speaker]

With this it will be convenient to discuss Government amendment 51.

[James Wharton]

First, I should put on the record my gratitude and that of my colleagues for the representations made by hon. Members who were keen to see the new clause included in the Bill, and to support and empower their local national parks authorities to do the best job they can and to continue to contribute to the communities they represent. In particular, I am grateful to my right hon. Friends the Members for New Forest East (Dr Lewis) and for New Forest West (Mr Swayne) and my hon. Friends the Members for Thirsk and Malton (Kevin Hollinrake), for Penrith and The Border (Rory Stewart), for Berwick-upon-Tweed (Mrs Trevelyan) and for Richmond (Yorks) (Rishi Sunak). I would like to add Councillor Gareth Dadd of North Yorkshire County Council, who made strenuous efforts to convince us of the merits of these changes and kindly arranged for me to meet representatives of the North Yorkshire national park authority and National Parks England.

In the light of this weekend’s flooding, I think it important to reiterate the comments of my right hon. Friend the Secretary of State for Environment, Food and Rural Affairs in the statement that we have just heard, and I offer my sympathy to the people of Cumbria and other affected areas in recognition of the significant impact of what has happened there as a result of the unprecedented weather events.

Before speaking expressly to the content of the new clause and amendment, I would like to say a few words about the role of the national park authorities in water management in the context of what has happened this weekend, and about how the changes might assist them in further performing that role. Although national park authorities do not have responsibility for emergency planning, the planning decisions they make and the development control conditions they enforce can make a big difference to the demands placed on those who do have to respond during an emergency.

National parks have an important role to play in managing the water environment and helping with restoration work. For example, the floods of November 2009 caused severe damage to the rights-of-way network in Cumbria and the Lake District national park. Over 250 bridges were damaged or destroyed and 85 paths needed repair. The function-specific general power of competence that we are discussing with these amendments could be used to enhance the national park authorities’ ability to respond to flood emergencies by enabling them to enter into partnerships, to develop skills and capacity within small rural communities and businesses to assist with the responses needed, to develop specific skills to combat future flood management, and to adapt the network to improve flood resilience.

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[Dr Julian Lewis (New Forest East) (Con)]

rose—

[Mr Speaker]

Ah, what a rich and delicious choice! I call Mr Robert Neill.

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[Peter Heaton-Jones]

rose—

[Mr Speaker]

Order. The right hon. Member for New Forest East (Dr Lewis) has for some minutes now been poised rather like a sprinter, but he suffers from one disadvantage relative to the hon. Member for North Devon (Peter Heaton-Jones), whose constituency houses Exmoor, namely that the right hon. Gentleman beetled into the Chamber a little after the hon. Gentleman. We will reserve the right hon. Gentleman as a specialist delicacy and reach him in due course.

[Peter Heaton-Jones]

Thank you, Mr Speaker, and I have never felt disadvantaged by my right hon. Friend the Member for New Forest East (Dr Lewis).

As you correctly point out, Mr Speaker, one third of Exmoor national park is in North Devon, and a beautiful part of the world it is. Before I go on with my prepared remarks, which I admit are pretty much a verbal tourist brochure, let me say that I do not recognise a lot of what was said from the Opposition Front Bench about the new clause, particularly the comments about its being slipped in and about insufficient time being given to speak to national park authorities. I, in common with all my hon. Friends, I am sure, had no notice at all. I was first alerted to the wording of the new clause on Thursday afternoon, and since then I have had time to have a detailed email correspondence with the chairman of Exmoor national park, Councillor Andrea Davis, my office has spoken at great length to managers at National Parks UK and two hours ago I came off the phone from a lengthy conversation with the chief executive of Exmoor national park, Dr Nigel Stone. If I can do that, I am sure that with all the voluminous resources available to them, those on the Opposition Front Bench should surely have been able to make some cursory inquiries about what the new clause is all about. It appears that they failed to do so.

Having spoken to those people, I can say that it is the national park authorities and managers who want this to happen. Opposition Members do those national park managers a great disservice by alleging some of the things that they are. They imply that in asking for the new clause those managers will in some way use the powers for nefarious purposes. Nothing could be further from the truth. Opposition Members need to be careful about what they are alleging because in my experience national park managers have nothing but the best intentions for managing our national parks, particularly in Exmoor.

That leads me on to extolling the virtues of Exmoor and why new clause 7, in particular, will be so valuable. One third of the national park is in my constituency and it includes the beautiful, rugged coastline that not only provides opportunities for many leisure activities but is very important for our environment and ecosystem. In the conversations I have had with them, the chairman and chief executive of Exmoor national park have been absolutely adamant that Exmoor in particular would benefit from the measures included in the new clause. Let me give some specific examples of why they believe that it would be beneficial and why they welcome it.

First, there is great pressure on the provision of housing for local communities in Exmoor and other areas of North Devon. Until now, national park authority managers have been hamstrung in the conversations they have been able to have with developers to ensure arrangements for local, affordable housing. Nevertheless, the new clause is not a carte blanche to say that all development will be allowed, and, as the Minister rightly said, nothing in it will allow that to happen.

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[Mr Graham Allen (Nottingham North) (Lab)]

I beg to move, That the clause be read a Second time.

[Mr Speaker]

With this it will be convenient to discuss the following:

New clause 2—Local Government Constitutional Convention: terms of reference—

“The convention must consider the following terms of reference—

(a) the devolution of legislative and fiscal competence to local authorities within the United Kingdom;

(b) the reform of the electoral system for local government;

(c) constitutional matters relating to local government to be considered in further conventions; and

(d) procedures to govern the consideration and implementation of any future constitutional reforms in relation to local government.”

This new clause creates the means by which every UK citizen can engage in a national public discussion of devolution, local government, governance and electoral systems and make recommendations and receive a response from government and parliament to that national debate.

New clause 3—Local Government Constitutional Convention: recommendations—

“(1) The Local Government Constitutional Convention must publish recommendations within the period of one year beginning with the day appointed under section (Local Government Constitutional Convention).

(2) The Secretary of State must lay responses to each of the recommendations before each House of Parliament within six months beginning with the day on which the recommendations are published.”

This new clause creates the means by which every UK citizen can engage in a national public discussion of devolution, local government, governance and electoral systems and make recommendations and receive a response from government and parliament to that national debate.

New clause 4—Local Government Constitutional Convention: composition—

“(1) The Local Government Constitutional Convention must be composed of representatives of the following—

(a) registered political parties within the United Kingdom,

(b) local authorities, and

(c) the nations and regions of the United Kingdom.

(2) At least 50% of the members of the convention must not be employed in a role which can reasonably be considered to be political.”

This new clause creates the means by which every UK citizen can engage in a national public discussion of devolution, local government, governance and electoral systems and make recommendations and receive a response from government and parliament to that national debate.

New clause 5—Commission on devolution of fiscal powers and taxation—

“(1) The Secretary of State shall appoint a commission on devolution of fiscal powers and taxation to local authorities.

(2) The Commission shall consider the following issues—

(a) the desirability, impact and process necessary to implement an Income Tax rate of 10p in the pound on English tax payers;

(b) the desirability, impact and process necessary to give English Councils the same fiscal and taxation powers as those devolved to the Scottish Parliament in the 2012 Scotland Act, and

(c) any other issues that the Commission considers relevant.

(3) The Commission shall produce a report covering the issues listed in subsection (2) no later than 31 December 2017, and shall make such recommendations to the Secretary of State as it deems necessary.”

This new Clause would establish a Commission to consider the possibility of England local authorities being granted the same fiscal and taxation powers already devolved to Scotland in the Scotland Act 2012.

New clause 8—Combined authority functions: cool off period—

“(1) The Secretary of State shall amend any order made under a provision of this Act which transfers a power to exercise of a function from a constituent part of a combined authority to a combined authority, to devolve responsibility for that function back to a constituent part of that authority, if the following conditions are met—

(a) A constituent part of a combined authority requests that the Secretary of State amend an order to return responsibility for the exercise of a function to the constituent part of the combined authority from the combined authority, and

(b) Such a request is made within one year of the first local government election held in the constituent part of the combined authority since the original order was made.”

The intention of this amendment is to create a cooling off period for the transfer of any power to the level of a combined authority. If a constituent part of a combined authority requests that a power is returned to it within one year of next elections held in the constituent part, then the Secretary of State must amend the relevant order to return power to the constituent part.

New clause 10—Governance arrangements for local government: entitlement to vote—

“In section 2 of the Representation of the People Act 1983 (local government electors), in subsection (1)(d) for “18” substitute “16””

This Clause would re-instate the provision in the Bill, as brought from the Lords, allowing votes for 16- and 17-year olds in local government elections.

New clause 11—Review of fire and rescue services in combined authorities—

“(1) The Secretary of State must, within 15 months of this Act being passed, publish a review of the fire and rescue services affected by the provisions of this Act.

(2) The review must make an assessment of the extent to which the provisions of this Act affecting fire and rescue services have worked safely and efficiently for the protection of the public over the first 12 months from this Act being passed.”

This Clause would require a review, after 12 months of the Bill being passed, of the fire and rescue services to make sure the new system is working safely and efficiently for the protection of the public.

New clause 13—Fiscal and financial powers—

“Within six months of the passing of this Act, the Secretary of State must publish plans for further devolution of fiscal powers to local authorities in England, including—

(a) an equalisation model related to the retention of business rates, to ensure local authorities with lower business rate income are not negatively impacted;

(b) greater local authority control over local tax rates and discounts;

(c) provision for combined authorities to set multi-year finance settlements.”

This new clause allows the Secretary of State to ensure devolution continues beyond current devolution deals by setting out plans for further fiscal devolution and greater local freedom and stability in relation to budgets and tax rates. The clause also ensures a model is put in place to ensure authorities with lower business rate income do not lose out from the phasing out of central government grants.

New clause 14—Cooperation with peripheral authorities—

“No later than three months after the passing of this Act, the Secretary of State shall publish guidance to be considered by combined authorities while exercising a devolved function, in order to—

(a) have regard for any significant direct impact of decisions taken by the combined authority on neighbouring authority populations;

(b) encourage cooperation between combined authorities and their neighbouring authorities so as to encourage local growth;

(c) enable greater economic cooperation between combined authorities and their neighbours within a travel-to-work area.”

This new clause asks the Secretary of State to publish guidance to ensure neighbouring authorities are considered when devolved functions are exercised, and encourage economic cooperation between authorities within a regional economy or travel-to-work area.

Government amendments 4 to 6.

Amendment 58, in clause 2, page 2, line 10, at end insert—

“( ) The transfer of local or public authority functions to combined authorities shall not be dependent on an order being made under subsection (1).”

This amendment makes clear that devolution deals must not be dependent on a combined authority having a mayor.

Amendment 2, page 2, line 13, at end insert—

“(2A) An order under subsection (1) may not be made unless the proposition that the combined authority have a mayor is approved by a referendum of the electorate of that combined authority.

(2B) The Secretary of State shall, by regulations, establish the procedures to be followed in conducting a referendum under subsection 2A.

(2C) Before making a regulation under subsection 2B, the Secretary of State must consult the Electoral Commission.”

The intention of this amendment is that elected mayors will be introduced only if that proposal has been approved by a referendum of the residents of the combined authority. The rule for the conduct for such a referendum shall be made by the Secretary of State, in consultation with the Electoral Commission.

Amendment 57, page 2, leave out lines 21 to 26 and insert—

“(7) An order under this section providing for there to be a mayor for the area of a combined authority may be revoked or amended by making a further order under this section; this does not prevent the making of an order under section 107 abolishing the authority (together with the office of mayor) or providing for a constituent part of the combined authority to leave the combined authority and to resume its existence as a separate local authority.

(7A) An order under this section providing for a constituent part of the combined authority to leave the combined authority and to resume its existence as a separate local authority must make fair provision for a reasonable and proportionate division of resources between the former combined authority and the seceding local authority.

(7B) Where a combined authority has entered into a contractual arrangement with a third party and an order under this section is made to enable a constituent part of a combined authority to resume its existence as a separate local authority, that separate local authority shall be deemed to be a contracting party to that agreement unless an alternative agreement is reached with the third party.”

The intention of this amendment is allow for a constituent part of a combined authority to leave a combined authority without the combined authority being dissolved, with provision for “fair terms” for the leaving party (i.e. their resource is calculated on a per capita basis, or similar.) and the impact this may have on contractual arrangement with third parties.

Government amendments 7 to 25.

Amendment 59, in clause 10, page 12, line 32, at end insert—

“(1) Within 6 months of the passing of this Act, the Secretary of State must publish a report on the performance of the Localism Act 2011 and a review of the general power of competence provision in relation to its use by combined authorities.”

This amendment introduces a review of the use of the general power of competence by combined authorities.

Government amendments 26 to 29.

Amendment 1, in clause 15, page 17, line 7, at end insert—

“( ) all local authorities in a mayoral combined authority commencing a community governance review of their whole local authority area within two years of this Act coming into force.”

This amendment introduces further measures to support the creation of new local councils with mayoral and combined authorities required to conduct a community governance review within two years of the Act coming into force.

Amendment 56, page 17, line 23, at end insert—

“(4A) Regulations under this section, so far as including structural or boundary provision in relation to a non-unitary district council area, may be made if at least one relevant local authority consents.

(4B) Local authority in this case is defined as—

(a) a non-unitary district council whose area is, or forms part of, the non-unitary district council area;

(b) a county council whose area includes the whole or part of the non-unitary district council area.

(4C) Relating to 4a and 4b

(a) “non-unitary district council area” means the area or areas of one or more non-unitary district councils;

(b) “non-unitary district council” means a district council for an area for which there is also a county council;

(c) “structural or boundary provision” means provision about the structural or boundary arrangements of local authorities in regulations made by virtue of subsection (1)(c).”

The intention of this amendment is to allow the government to make changes to boundaries of local authorities if it has the consent of at least one relevant local authority.

Government manuscript amendment (a) to amendment 56, after subsection (4C), insert—

“(4D) Subsections (4A) to (4C) expire at the end of 31 March 2019 (but without affecting any regulations already made under this section by virtue of subsection (4A)).”

This amendment provides for the provisions in subsections (4A) to (4C) of clause 15, allowing structural and boundary provision in relation to a non-unitary district council area if at least one relevant local authority consents, to expire at the end of 31 March 2019.

Government amendments 30 to 33 and 36.

Amendment 3, in schedule 1, page 37, line 3, leave out paragraphs 4 and 5 and insert—

“4 (1) The mayor is to be returned under the simple majority system.”

This amendment would require the mayors of combined authorities to be elected using the simple majority system, also known as “first past the post”.

Government amendments 37 to 45, 50 and 52 to 55.

[Mr Allen]

One of the difficulties involved in the debates we have had on this so-called constitutional Bill is that they have taken place on the Floor of the House. If we were upstairs in Committee and having detailed debates about particular places and particular boundary issues, the Minister could say, “The hon. Gentleman has made a very good point. I will take it away, talk to one or two authority leaders and issue a few words of reassurance.” On the Floor of the House, however, given the rather clunky weapons at our disposal—such as a Division of the House—they become much bigger issues. I congratulate the Secretary of State and his team on bringing the devolution process to the House, but rather than it being seen as the first step of many, it is lapsing into the good old confrontational stuff that we seem to enjoy so much on the Floor of the House.

Even under that structure, however, we can do a number of things in the Chamber this evening. We need to seek a more consensual way forward and understand that devolution is an organic process and that it will evolve. Once the deals in England have been concluded, they will make progress and other demands will be made. People will see that they can do things that they could not do before. They will look at neighbours who have concluded deals and say, “I’d like to try a little bit of that. I think I’ll talk to the Secretary of State.” The Secretary of State may well suggest to some places, “Things have been done by another place that you could also do.” To other areas, the Secretary of State and/or councils may say, “Perhaps we bit off a little more than we could chew. Let’s take half a pace back, let this settle and then come forward with other proposals in the future.” That process is not very amenable to debate on the Floor of the House of Commons. Almost by definition, it is better done, first, in Committee, and secondly, by the key players—council leaders and Ministers—talking openly and transparently to take forward the process.

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[Mr Allen]

I am delighted to hear the Liberal Democrats proposing something in opposition that, sadly, they did not propose when they were a key member of the coalition Government during the past five years. Before Labour colleagues smile too much, however, the previous, Labour Government also did very little on this matter. [Interruption.] My hon. Friend the Member for Blackley and Broughton (Graham Stringer) says that they did. Obviously, I would never be so disloyal as to underline such remarks by repeating them on the Floor of the House, but—

[Mr Speaker]

Order. At any rate, the hon. Gentleman would certainly not have done so in those almost forgotten days when he was a Whip.

[Mr Allen]

Indeed, Mr Speaker. We all have scars and sins that are best left unrevealed; otherwise that can turn into rather a destructive process. If we look at the constructive process initiated by the Secretary of State, there is a way forward. To finish my answer to the right hon. Member for North Norfolk (Norman Lamb), double devolution has repeatedly been raised by colleagues from all parts of the House in different ways. Let me restate that it would be ludicrous for England to go the way of Scotland, where there is devolution down to Holyrood, but we can hear the sucking sound—Ross Perot used to hear a “sucking sound” in the United States from Mexico—of powers being sucked up from the localities in Scotland into Holyrood. We do not wish that to be repeated in England, which means, as the right hon. Gentleman said, that there must be a proper localisation of power if the devolution bandwagon and evolution are to continue.

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[Mr Graham Brady]

I beg to move, That the clause be read a Second time.

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

With this it will be convenient to discuss the following:

New clause 12—Review of devolution of health services—

‘(1) The Secretary of State must, within 15 months of this Act being passed, publish a review of health services devolved under the provisions of this Act.

(2) The review must make an assessment of the extent to which the health services devolved under any of the provisions of this Act have maintained standards and, in particular, of the quality of services and outcomes achieved by those devolved health services over the first 12 months from this Act being passed.”

This Clause would require a review, after 12 months of the Bill being passed, of the impact of devolving health services in order to make sure that standards and the quality of services and outcomes have not declined.

Government amendment 34

Amendment 60, in clause 17, page 19, line 30, at end insert—

‘(2C) The Secretary of State may revoke health functions from the relevant local authority under subsection (2A) only following advice from an independent panel, whose membership must include representation from local government and the NHS and which is to be convened as and when necessary.”

This amendment would safeguard the devolution of health functions by ensuring that any revocation of these functions is done under the advice of an independent panel, whose membership includes representatives from local government and the NHS.

Government amendments 35 and 46 to 49.

[Mr Brady]

It might help if I indicate now that at the appropriate time I shall seek the leave of the House not to press new clause 8 and amendment 57. Ministers should not take that as indicating that I am entirely satisfied with the responses I have received, but I may be able to find other ways of expressing that dissatisfaction.

The immediate reason for tabling new clause 9 and why I am so concerned about this aspect of the Bill is that we already have a live example in Greater Manchester. I shall not go into huge detail, but because of the difficulties relating to the Healthier Together proposals for the reorganisation of hospital services, the matter will be decided by judicial review this week.

The new clause was tabled in the hope that we can frame the legislation in such a way that proper protection can be given to local authorities and local communities to ensure that this sort of development is not necessary in future. Should, furthermore, the judicial review overturn the existing proposals, it is important to ensure that they cannot simply be imposed in a different way.

The crucial problem is that the existing combined authority arrangements have combined the overview and scrutiny functions of individual local authorities. With the potential downgrading of the University hospital of South Manchester, for example, the usual route of going through Trafford’s or Manchester’s overview and scrutiny committee and referring the matter to the Secretary of State, asking for it to be put to an independent reconfiguration panel, was not available because the overview and scrutiny function was exercised not at the individual local authority level but at the combined authority level.

The Minister for Community and Social Care looks confused, but I assure him that when I had discussions with the Secretary of State he advised me that this was the route to be taken. I then took it to Trafford council, which said that it did not have the overview and scrutiny function and that it was exercised at the combined level. That is the nub of the problem. Significant parts of a conurbation such as Greater Manchester, which may in due course become a mayoral authority, might have no recourse, should a significant reorganisation of health services be proposed that was evidently not in the interest of the local community.

It is a simple proposition that I make in new clause 9. The Minister and I have had some extremely constructive conversations prior to this point, and I hope that he will reassure me that some measure will be introduced—if not today, via a Government amendment in the House of Lords—given that changes to these aspects of the Bill might be made through Government amendment 34. There is, I understand, a peg on which to hang that provision. All I am looking for is the simple reassurance that the Government will ensure that there will always be a route for an individual local authority to make the kind of reference that would have saved enormous cost, uncertainty and trouble in Greater Manchester had it been in place as of today. I very much look forward to hearing the Minister’s response and any reassurance that he might give.