Cities and Local Government Devolution Bill [Lords] Debate
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Steve Reed
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Cities and Local Government Devolution Bill [Lords]
Steve Reed Excerpts(9 years, 1 month ago)
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Chloe Smith
The right hon. Gentleman tempts me to join him in the Lobby, but I would only further trash his reputation in Norfolk if I did. Joking aside, there is a distinction to be drawn between rights that people might have in different parts of the country and public services that people might have in different parts of the country. I would describe the latter as the substance of the devolution Bill—it is about how public services can be better delivered.
I wonder whether the right hon. Gentleman would permit me to extend this point to something the hon. Member for Nottingham North (Mr Allen) proposes in new clause 3, which could be argued also to create something of a patchwork. I make the distinction between rights and public services, but new clause 3 brings in another category: methods of voting. I have concern about having a patchwork in that area, too. We would want consistency there, just as we would on rights, but I can see value in having innovation in public services more locally, which is why I support the Bill overall.
Mr Steve Reed (Croydon North) (Lab)
Does the hon. Lady recognise that it is in the nature of British constitutional reform that it tends to be pragmatic and incremental and that this opportunity in the Bill is at least a foot in the door towards what she is telling the House she believes in? Does she also recognise that this has already been done piecemeal—16-year-olds had the vote in the Scottish referendum, so she would not even be innovating with this measure?
Chloe Smith
Having been a Minister with responsibility for constitutional reform, I know well that it is often done in a pragmatic way. What I regard as pragmatic in this instance is to have this debate properly and thus respect the young people whom we seek to serve by looking properly at their rights and opportunities. That is the main thrust of my comments today.
I do not want to be seen as the champion in this House for votes at 16; I want to be seen as the champion for young voters. The technicality of the voting age is a very important signal, which we ought to be able to send to young people to say that they are valued in politics. That is the way I do politics and I am sure it is the way the hon. Gentleman does them; I would like to think it is how everybody else in this Chamber also approaches this crucial matter of democratic engagement. This important topic crucially affects a generation of people, who would indeed like to be involved in politics. It is not good enough to deal with it piecemeal and not to consider the full implications of what we are talking about.
I have a few brief points to make about what this younger generation is asking of us in politics. Political engagement has indeed changed. Demos carried out research for the National Citizens Service in which it says that we should roll up our sleeves, power up our laptops and get things done, rather than rely on the state to do things for us. My colleagues on the Conservative Benches will say, “Hear, hear to that”, because that is what we believe in. We are a centre-right party that believes in getting things done. We believe in local innovation, in individuals being self-reliant, and in helping people to take the opportunities that exist. I support this Bill in its entirety, because it promotes devolution for local areas.
What we can see in Demos’ research is a certain scepticism of the state. The state comes a fairly long way down the list—after individuals, charities and businesses—when it comes to getting things done. Young people do not look to the state alone to get things done. That can be seen in the Ipsos MORI research, “Generation Strains”, which demonstrates the scepticism with which today’s youngest generation views the welfare state, compared with older generations.
What we are seeing is an opportunity for us to embrace a whole new generation of voters; dare I say it, it is the generation to which the Minister and I belong. It is that generation that we need to be welcoming in to politics. What I am saying is that we should have the opportunity to do that properly; to change our campaigning styles to meet that challenge; and to embrace those values here in this House. We also have that opportunity in this devolution Bill, but let us respect our young people by treating their democratic rights properly in a debate that looks at the matter fully rather than off the back of a single amendment that has come from the other place without the chance to look at the issue in the round.
Andrew Jones
STBs’ responsibilities will start with the development of plans for their areas, as the hon. Gentleman will know from the Transport for the North plan, which was published last year. As the STBs develop, I shall expect them to work with other bodies. A memorandum of understanding has already been signed by Transport for the North and Highways England so that they can inform each other’s plans. That is how we expect the arrangement to work. Decisions will be taken away from here and made on a more local basis, and the bodies will then collaborate in order to produce the right plans for their areas.
Subject to the Secretary of State’s agreement, affirmative secondary legislation will designate an area as an STB area. Consistent with enabling legislation, there will be no “one size fits all” approach. The governance for STBs will not be standardised across all of them, and the detail relating to each one will be set out in secondary legislation. Combined authorities and local transport authorities will make up the membership of each body. To ensure that STBs are accountable to the people whom they represent, each one will be overseen by a political-level board consisting of either metro mayors—where they have been established as part of the Government’s devolution programme—or the political leaders of the relevant constituent authorities. The Bill also specifies that the STBs will have a chair, and will enable, but not mandate, the Secretary of State to make regulations for their constitutional arrangements.
To ensure that each STB is established in a way that is right for the area for which it is working, the exact detail—such as the make-up of the board, quorums, the presence of any non-executives, and the appointment of a chair—will be left to individual pieces of secondary legislation, reflecting local plans and local need. The board will then be able to co-opt other members, such as representatives of local enterprise partnerships, to give local businesses a voice, or representatives of neighbouring authorities, to cover cross-border interests.
Initially each STB will advise the Secretary of State for Transport on strategic transport schemes and investment priorities for its own area. STBs will develop a long-term transport strategy which will set out with one voice the area’s view on transport’s role in its economic development. Within the lifetime of this strategy, the STB will then need to create shorter-term transport plans that will prioritise transport interventions to be delivered in given time periods, likely to be mapped on to road and rail investment cycles. This process is already under way within Transport for the North.
Over time, the Secretary of State may grant individual STBs additional responsibilities, through further secondary legislation, around the decision-making and delivery of transport schemes and significant cross-regional schemes, such as smart ticketing. The Secretary of State, and other public authorities including local and combined authorities, will not be able to overlook an STB’s transport strategy when developing their own transport strategies and plans. In return, this legislation requires STBs to consult with local government bodies, the Secretary of State for Transport and other interested parties within or without the STB, thereby ensuring it meets the expectations of all parties.
STBs will take a strategic-level view across an area to improve transport infrastructure and services, and address how that can support the economy. This involves assessing which transport schemes deliver most benefit from their investment, and how best to improve regional connectivity.
In creating STBs, the Government are demonstrating their commitment to work together with local areas to tackle those transport issues that cut across administrative boundaries, such as longer-distance road and rail, and find joint solutions that benefit people travelling across the region, such as smart ticketing. It is important to stress that this legislation gives all areas the opportunity to benefit from the establishment of STBs so their economies can grow. This is a key part of the work to help rebalance the economy outside London. Accordingly, I believe it is necessary for TfN, Midlands Connect and all future STBs to be enshrined as statutory bodies with appropriate statutory powers, and I commend this new clause to the House.
Mr Steve Reed
It is welcome to hear the consensus for devolution from all parts of the House this afternoon, and welcome, too, to hear the Minister tell us he is in listening mode. I hope so, because there is an awful lot still to work out across the Bill, including in the new clauses before us now. It will be important if we can build consensus around them so we have a solid foundation on which to build in the Bills that I am sure will follow this devolution Bill.
Labour wants to see the devolution of control over local transport so that trains, buses, trams and cycling can be properly integrated. I welcome the Government new clause. It is undoubtedly a step forward, but, like other parts of the Bill, it is limited by three factors: first, it does not go far enough; secondly, the funding and resourcing are not clear; and thirdly, it still keeps too much control in Whitehall. We would welcome further Government thinking on all those areas before we come to a final decision on the Bill.
Mr Andrew Turner
The hon. Gentleman listed three or four ways of getting around, but did not mention ferries. Where do they fit?
Graham Stringer
No. My hon. Friend mentioned buses. Does he share my surprise that we are discussing this Bill when the Government have still not produced the Bill that will allow these devolved authorities to reregulate the buses?
Mr Reed
I thank my hon. Friend for making that point. I hope that the Government will hear it while they are in listening mode, and that they will make the appropriate changes so that we can get maximum devolution and give local authorities back maximum control over their bus services.
New clause 34 will allow other regions to set up their own Transport for London-style models. TfL was an excellent Labour initiative but it was delivered 15 years ago. Helping other regions to catch up with London is the right thing to do, but it is a missed opportunity not to go significantly beyond that.
John Redwood
If the STB in a given area were to promote a road improvement that covered two different council areas, does the hon. Gentleman think that the STB should have the power to make one of the councils co-operate in the scheme if it did not wish to do so?
Mr Reed
That is a matter for the Government, but my view is that this should all be done through co-operation and negotiation, not through imposition. I hope that the right hon. Gentleman would not advocate any such imposition; I suspect that he would not.
The London Assembly has made the case that cities such as London need further devolved powers to integrate rail services with their surrounding commuter regions. That will apply to other regions across the country as well. It is not quite clear, however, what will be in scope in that regard. Perhaps this relates to the right hon. Gentleman’s question. It would be helpful to have clarification on that point, as we do not have long to go before the Bill reaches its Report stage. It would be helpful to have clarity before we reach the final vote on the Bill.
There is also the question of how new transport initiatives will be funded. Since 2010, local authorities have had their funding for bus services cut by 70%. The Department for Transport has recently signed up to a further 32% cut, which is likely to affect sustainable transport programmes for cycling and buses, once we see the full detail. All of this undermines the upgrades necessary to deliver effective transport integration, which is critical to making the system work efficiently and effectively for local people. Those decisions should not be taken centrally without involving the areas affected by them, and I hope that the Government will come forward with proposals to ensure that resourcing is also part of the negotiations with localities, along with the additional powers that they may or may not be able to acquire.
Significant control over STBs is to be retained, in some cases quite unnecessarily. The new clause mentions the Secretary of State 39 times, but it mentions mayors just twice. Will mayors have a significant role within these organisations or not? We would welcome further clarification from the Government on what the precise role of the mayors will be. The Government are forcing mayors on to localities whether they want them or not, as a condition of devolution deals in the metropolitan areas, but they also seem to be denying the mayors certain powers. Either they are a central point of local accountability or they are not. We would like to see their powers over transport matters extended.
Under the provisions, authorities will still have to have their proposals approved by the Secretary of State, from whom they will also still get their funding. The Secretary of State will also be able to make provisions about how an STB is to carry out various functions. That does not seem radically different from where the ultimate authority lies now. We have seen what happens when this Government try to deliver transport projects with too much centralised control. We have seen the pausing, and the un-pausing, of the electrification of the TransPennine route, and we have seen airport expansion kicked into the long grass for decades. The Great Western main line electrification announced by Labour has also been delayed by the Tories, with its costs spiralling from under £550 million in 2011 to £2.8 billion today.
Despite the Minister’s fine words and the undoubted good intentions of the Secretary of State, it appears that the Government are still too timid to really let go. I hope that the listening mode they have declared they are in today means they will think about how they can go further with these proposals by the time we reach Report.
Mr Graham Allen
Mrs Main, I understand that it is in order to talk about the other clauses remaining to the House to discuss, including new clause 29, at this point, but I am happy to stand corrected.
The Temporary Chair
With this it will be convenient to discuss the following:
New clause 29—The Local Government Independence Code—
‘(1) There shall be a Code, to be known as “the Local Government Independence Code”, the principal purpose of which shall be to define and regulate the relationship between central and local government.
(2) A court or tribunal determining a question which has arisen in connection with the functions of a local authority, or of the Secretary of State or other public authority in relation to any local authority, must take into account the provisions of the Code.
(3) Schedule (The Local Government Independence Code) which—
(a) sets out the terms of the Code,
(b) makes provision about the application of the Code, and requires public authorities, including central and local government, to comply with the Code,
(c) makes provision for amending the Code,
(d) requires that, where it is possible to do so, primary legislation and subordinate legislation must be read and given effect in a way which ensures compliance with the Code, and makes provision for the amending of legislation where it is found not to be compatible with the Code,
(e) makes provision about remedial orders to amend legislation,
(f) makes provision for Ministers to make, or refuse to make, a statement that a Bill is compatible with the Code,
(g) amends the Parliament Act 1911 so as to exclude any Bill seeking to amend this Act from the provisions of the Parliament Act 1911,
(h) provides for amendments which are consequential on the making of the Code to certain enactments relating to local authorities, and
(i) requires the Secretary of State to provide for the review of provisions in pre-commencement legislation to assess their compatibility with the provisions of the Code,
has effect.”
The intention of this new Clause is to define the independence of local government and to regulate the relationship between local and central government in England by means of a statutory Code.
New clause 30—Reduction in petition threshold—
‘(1) The Local Government Act 2000 is amended as follows.
(2) In section 34(4) (minimum number of local government electors for a local authority’s area who must support any petition presented to the authority), for “5 per cent” substitute “1 per cent”.’
This amendment would reduce the minimum number of local government electors for a local authority’s area who must support any petition presented to the authority from 5 per cent to 1 per cent.
New clause 31—Mayors of combined authorities: Further functions—
‘(1) After section 107E of the Local Democracy, Economic Development and Construction Act 2009 (inserted by section 6 above) insert—
“107F Functions of mayors: alcohol pricing
(1) The Secretary of State may by order make provision for a mayor of a mayoral combined authority to have the power to set a minimum unit price for alcohol that is sold within that combined authority area.
(2) An order made under subsection (1) above must include a provision that such a power may be exercised by a mayor only following a consultation which includes local residents on the proposed level of the minimum unit price for alcohol.”’
New clause 32—Devolution to combined authorities: the family test—
‘(1) As soon as practicable after 31 March each year a mayoral combined authority in England shall produce and publish a report setting out its performance in applying the family test headings set out in subsection (3) over the most recent year to 31 March.
(2) In applying the family test, the mayoral combined authority must consider the impact of its policies and performance under each of the family test headings set out in subsection (3) and consider any guidance issued by the Secretary of State.
(3) The family test headings are—
(a) family formation;
(b) families going through key transitions such as becoming parents, getting married, fostering or adopting, bereavement, redundancy, new caring responsibilities or the onset of a long-term health condition;
(c) all family members’ ability to play a full role in family life, including with respect to parenting and other caring responsibilities;
(d) families before, during and after couple separation; and
(e) those families most at risk of deterioration of relationship quality and breakdown.
(4) An overview and scrutiny committee of the mayoral combined authority shall review the report within four months of its publication.
(5) The Secretary of State may issue guidance to mayoral combined authorities on applying the family test and on reporting on the test.”
This new Clause would require mayoral combined authorities in England to report annually on their performance in relation to the DWP’s Family Test (October 2014) and for an overview and scrutiny committee to examine the contents of the report.
New clause 33—Parish Councils: Power of parish council to sell electricity—
‘In Section 44 (1)(b) of the Local Government (Miscellaneous Provisions) Act 1976 insert “11” between “1” and “16”.’
This amendment will allow parish councils to be able to sell electricity that it generates.
New clause 36—Regard to neighbouring authorities—
‘In exercising a devolved function, combined authorities must have regard to any significant direct impact on the population of neighbouring authorities.’
This clause raises the concerns of some authorities which neighbour devolved authorities and ensures that combined authorities which have devolved functions give regard to the possible impact on neighbouring populations, particularly over issues such as transport and health.
New clause 37—Disqualification for election and holding office as a Member of a local authority—
‘In section 80 (1)(d) of the Local Government Act 1972, omit “for a period of not less than three months without the option of a fine”.’
This New Clause would extend the current disqualification regime to councillors sentenced to any custodial sentence (including a suspended sentence), instead of applying only to councillors sentenced to a term of imprisonment of at least three months.
New clause 38—Enabling devolution to joint committees in London—
‘(1) Following a written request from either—
(a) a voluntary joint committee of London councils, or
(b) a voluntary joint committee of London councils and the Mayor of London,
the Secretary of State may by order make arrangements for a function of a Minister of the Crown or a Government Department to be delegated to that joint committee, formed under Section 101 of the 1972 Local Government Act.
(2) The voluntary joint committee may make such provision as is necessary in relation to—
(a) voting powers required to protect minority interests;
(b) the membership and process for individual authorities to enter or leave;
(c) the executive arrangements of the joint committee;
(d) arrangements for the administration and transfer of property and other liabilities.
(3) A request made under subsection (1) above must have the agreement of all constituent members of the joint committee.
(4) In this section—
“London councils” means
(a) London borough councils, and
(b) the Common Council of the City of London;
“joint committee” has the same meaning as in the Local Government Act 1972;
“Minister of the Crown” has the same meaning as in the Ministers of the Crown Act 1975.
(5) A function is eligible for the purposes of subsection (1) above if—
(a) it does not consist of a power to make regulations or other instruments of a legislative character or a power to fix fees or charges, and
(b) the Secretary of State considers that it can be appropriately exercised by the joint committee.
(6) No delegation under subsection (1) above, and no variation of a delegation under subsection (1) above can be made without the agreement of all constituent members of the relevant voluntary joint committee.
(7) Before making or varying a delegation under subsection (1) above, the Secretary of State must consult—
(a) London borough councils;
(b) The Common Council of the City of London;
(c) The Mayor of London (in the case of a joint committee of London councils and the Mayor of London).
(8) The Secretary of State may make arrangements for the transfer from the Crown to the relevant joint committee of such property, rights or liabilities as the Secretary of State considers appropriate to the discharge of the function delegated under subsection (1).
(9) If an order made under this section would be treated for the purposes of the standing orders of either House of Parliament as a hybrid instrument, it is to proceed in that House as if it were not a hybrid instrument.’
This clause would support further devolution of Ministerial functions to London by providing for decision-making arrangements to enable operational delegation to groups of London local authorities and for the strategic governance of devolved responsibilities to be shared between London councils and the Mayor through an appropriately constituted joint committee.
New clause 39—Environmental consideration—
‘No later than three months after the passing of this Act, the Secretary of State shall prepare guidance on effective strategic planning for combined authorities including in the areas of—
(a) mitigation of and adaptation to impacts of climate change;
(b) natural resource use including water management;
(c) delivery of low-carbon energy sources and infrastructure;
(d) landscape-scale conservation, including green infrastructure.’
This new clause places a duty on the Secretary of State to set out guidance on how co-operation between combined authorities can be strengthened to mitigate environmental problems and develop green infrastructure.
New schedule 2—The Local Government Independence Code—
‘1 Chapter 4ZA and Chapter 4A of Part 1 of the Local Government Finance Act 1992 are repealed.
2 (1) This Code—
(a) defines the relationship between central government and local authorities; and
(b) makes provision about the financial independence and conduct of local authorities.
(2) For the avoidance of doubt, nothing in this Code shall affect the rights of individuals; and individuals may continue to seek judicial review of any action by a public authority which they regard as unjust or as infringing their rights.
Local Autonomy and Local Self-Government
3 (1) Local authorities’ accountability is to their electorates.
(2) Local authorities are autonomous, democratically-elected bodies which independently decide upon, administer and regulate public affairs and deal with all matters of concern within their boundaries to the extent that such matters are not the statutory responsibility of another body.
(3) Local authorities shall continue to operate within the rule of law.
(4) Local authorities shall continue to operate with full legal personality and under a general power of competence. Subject to sub-paragraph (4), local authorities may pass measures on matters affecting the affairs and interests of their area.
Scope of Local Government
4 (1) The powers and responsibilities of local authorities will continue to be prescribed by statute.
(2) Local authorities shall have power to exercise their initiative with regard to any matter which is not statutorily excluded from their competence or assigned to another body.
(3) Central government may not propose actions which are intended to, or may reasonably be regarded as being likely to, infringe the independence of local government, as defined in this Code, or affect local government generally or any local authority, unless local government generally, or the local authority concerned, consents.
Inter-Governmental Activities
5 Central government and local authorities shall establish joint inspection regimes to set and monitor the standards of services supplied or secured by them.
Territorial Autonomy
6 The geographical boundary of a local authority can be altered only by a proposal from the local authority itself or from its electorate. Local authorities must make arrangements for their electorates to put forward such proposals for consideration. Any such locally-inspired proposal for boundary changes, whether initiated directly by the authority or by the electorate of the authority, must be developed with the involvement of the Local Government Boundary Commission for England and shall be subject to approval of the electorate of the area concerned, under arrangements made by the local authority concerned and approved by the Electoral Commission.
Council Governmental Systems
7 (1) The electorate of each local authority, through methods agreed by the local authority concerned, shall have the power to choose that authority‘s internal political decision-making systems. The systems concerned shall include a directly elected mayor and cabinet, a cabinet and leader, a committee system, or any other political decision-making arrangement which the electorate may decide is appropriate.
(2) The electorate of each local authority, through methods agreed by their local authorities, may, after a process of consultation carried out by the local authority concerned, agree to and adopt any electoral system for use in elections to that authority.
Local Government Financial Integrity
8 (1) Local authorities shall be financially independent of central government, save as otherwise provided for in this Code.
(2) Central government may not place any restriction on decisions by local authorities about the exercise of their financial powers.
(3) The distribution of central government funds between local authorities shall continue on the basis of existing equalisation arrangements. Distribution will continue to be based on the principle of ensuring fairness and balance between local authorities. The basis on which this distribution is carried out must continue to be made public.
(4) Each local authority shall receive from central government a guaranteed share of the annual yield of income tax, as follows. Central government must in each financial year assign to the Secretary of State responsible for the distribution of central government funds between local authorities an amount of money equivalent to the yield from ten pence in the pound of income tax. The Secretary of State must make arrangements to inform each taxpayer in England of the amount of their income tax which makes up the central government funding distributed to English local authorities as a whole.
(5) The amount of the income tax yield referred to in paragraph 8(4) shall be re-negotiated between central and local government whenever service provision responsibilities are transferred between central government and local authorities.
(6) Local authorities may raise additional sources of income in their areas in any way they wish, and with the consent of their electorates as expressed through arrangements to be determined and put in place by the local authority concerned.
(7) Local authorities shall be able to raise any loans, bonds or other financial instruments which their credit rating allows and as independent entities will be exclusively responsible for their repayment. All local authorities shall operate “a balanced budget” so that in any one financial year all outgoings, including interest repayments on borrowings, shall not exceed income.
(8) Central government may not cap, or in any other way limit, local authorities’ taxation powers.
(9) The financial transparency standards that apply to central government shall apply to local authorities.
(10) Central government and local authorities may contract with each other in order to pursue their own policy objectives.
Local Authorities’ right to co-operate and associate
9 (1) Local authorities are entitled, in pursuit of any undertaking, to co-operate in any way with any other persons, including local authorities, public and private bodies, voluntary, charity or third-sector organisations, and financial, commercial or private enterprises.
(2) Where more than one local authority is responsible for services in a geographic area, those local authorities shall co-operate so as to maximise the well-being of those living or working in that area.
(3) Local authorities may join any association for the protection and promotion of their common interests and may belong to an international association of any sort.
Decision-making
10 The administration of any local referendum or other vote on proposals put forward by the electorate of any local authority, or other local decision-making processes involving a public vote, shall adhere to standards set by the Electoral Commission; and those responsible for the conduct of any such decision-making processes shall be accountable to the Electoral Commission for their performance against those standards.
Legal Protection of Local Government
11 Local authorities may seek a judicial remedy in order to secure the free exercise of their powers, and any other principles of local self-government or individual rights contained within this Code or otherwise enshrined in law.
Application of and Compliance with the Code: acts of public authorities
12 It is unlawful for a public authority to act in a way which is not in compliance with the Code.
13 Paragraph 12 does not apply to an act of a local authority if—
(a) as the result of one or more provisions of primary legislation, the authority could not have acted differently; or
(b) in the case of one or more provisions of, or made under, primary legislation which cannot be read or given effect in a way which is compatible with the Code, the authority was acting so as to give effect to or enforce those provisions.
14 In this Schedule “public authority” includes central government, local authorities and any other person certain of whose functions are functions of a public nature, but does not include either House of Parliament or persons exercising functions in connection with proceedings in Parliament; and “an act” includes a failure to act.
Proceedings
15 (1) A person who claims that a public authority has acted (or proposes to act) in a way which is made unlawful by paragraph 12 may—
(a) bring proceedings against the authority under this Act in the appropriate court or tribunal, or
(b) rely on the Code in any legal proceedings.
(2) In sub-paragraph (1)(a) “appropriate court or tribunal” means such court or tribunal as may be determined in accordance with rules; and proceedings against an authority include a counterclaim or similar proceeding.
(3) If the proceedings are brought on an application for judicial review, the applicant must have a sufficient interest in relation to the act.
(4) Proceedings under sub-paragraph (1)(a) must be brought before the end of—
(a) the period of one year beginning with the date on which the act complained of took place; or
(b) such longer period as the court or tribunal considers equitable having regard to all the circumstances, but that is subject to any rule imposing a stricter time limit in relation to the procedure in question.
(5) In sub-paragraph (1)(b) “legal proceedings” includes—
(a) proceedings brought by or at the instigation of a public authority; and
(b) an appeal against the decision of a court or tribunal.
(6) Nothing in this Act creates a criminal offence.
(7) In this paragraph “person” includes a local authority.
Judicial remedies
16 (1) In relation to any act (or proposed act) of a public authority which the court finds is (or would be) unlawful, it may grant such relief or remedy, or make such order, within its powers as it considers just and appropriate.
(2) But damages may be awarded only by a court which has power to award damages, or to order the payment of compensation, in civil proceedings.
(3) No award of damages is to be made unless, taking account of all the circumstances of the case, including—
(a) any other relief or remedy granted, or order made, in relation to the act in question (by that or any other court), and
(b) the consequences of any decision (of that or any other court) in respect of that act, the court is satisfied that the award is necessary to afford just satisfaction to the person in whose favour it is made.
(4) In this paragraph—
“court” includes a tribunal;
“damages” means damages for an unlawful act of a public authority; and
“unlawful” means unlawful under paragraph 15.
Amendment of the Code
17 (1) The Secretary of State may by order make such amendments to the Code as the Secretary of State considers appropriate.
(2) Before making an order under sub-paragraph (1), the Secretary of State must consult—
(a) such local authorities,
(b) such representatives of local government, and
(c) such other persons (if any), as the Secretary of State considers appropriate.
(3) Any orders for amendments made by the Secretary of State are subject to the procedures set out in paragraphs 17 to 19 of this Schedule.
Limits on power of Secretary of State to amend the Code
18 (1) The Secretary of State may not make provision under paragraph 16(1) unless the Secretary of State considers that the conditions in sub-paragraph (2) are satisfied in relation to that provision.
(2) Those conditions are that—
(a) the provision does not reduce the powers or discretion of local authorities unless the Secretary of State objectively considers that the effect of the provision is proportionate to the policy objective intended to be secured by the provision;
(b) the provision does not remove any necessary protection for local government or breach the obligations arising under the European Charter of Local Self-Government; and
(c) an order under paragraph 16(1) may not make provision to abolish or vary any tax.
Procedure for orders under paragraph 1
19 (1) If, as a result of any consultation required by paragraph 16(2), it appears to the Secretary of State that it is appropriate to change all or any part of the Secretary of State‘s proposals, the Secretary of State must undertake such further consultation with respect to the changes as the Secretary of State considers appropriate.
(2) If, after the conclusion of the consultation required by paragraph 16(2), the Secretary of State considers it appropriate to proceed with the making of an order under paragraph 16(1), the Secretary of State must lay before Parliament—
(a) a draft of the order, and
(b) an explanatory document explaining the proposals and giving details of—
(i) the Secretary of State‘s reasons for considering that the conditions in paragraph 17(2) are satisfied in relation to the proposals,
(ii) any consultation undertaken under paragraph 16(2),
(iii) any representations received as a result of the consultation, and
(iv) any changes made as a result of those representations.
Super-affirmative resolution procedure
20 (1) A super-affirmative resolution procedure shall apply in relation to the making of an order pursuant to a draft order, as follows.
(2) The Minister must have regard to—
(a) any representations,
(b) any resolution of either House of Parliament, and
(c) any recommendations of a committee of either House of Parliament charged with reporting on the draft order, made during the 60-day period with regard to the draft order.
(3) If, after the expiry of the 60-day period, the Minister wishes to make an order in the terms of the draft, he must lay before Parliament a statement—
(a) stating whether any representations were made under sub-paragraph (2)(a), and
(b) if any representations were so made, giving details of them.
(4) The Minister may, after the laying of such a statement, make an order in the terms of the draft if it is approved by a resolution of each House of Parliament.
(5) However, a committee of either House charged with reporting on the draft order may, at any time after the laying of a statement under sub-paragraph (3) and before the draft order is approved by that House under sub-paragraph (4), recommend under this subsection that no further proceedings be taken in relation to the draft order.
(6) Where a recommendation is made by a committee of either House under sub-paragraph (5) in relation to a draft order, no proceedings may be taken in relation to the draft order in that House under sub-paragraph (4) unless the recommendation is, in the same Session, rejected by resolution of that House.
(7) If, after the expiry of the 60-day period, the Minister wishes to make an order consisting of a revised version of the draft order, the Minister must lay before Parliament—
(a) a revised draft order; and
(b) a statement giving details of—
(i) any representations made under sub-paragraph (2)(a); and
(ii) the revisions proposed.
(8) The Minister may, after laying a revised draft order and statement under sub-paragraph (7), make an order in the terms of the revised draft if it is approved by a resolution of each House of Parliament.
(9) However, a committee of either House charged with reporting on the revised draft order may, at any time after the revised draft order is laid under sub-paragraph (7) and before it is approved by that House under sub-paragraph (8), recommend under this subsection that no further proceedings be taken in relation to the revised draft order.
(10) Where a recommendation is made by a committee of either House under sub-paragraph (9) in relation to a revised draft order, no proceedings may, be taken in relation to the revised draft order in that House under sub-paragraph (8) unless the recommendation is, in the same Session, rejected by resolution of that House.
(11) For the purposes of sub-paragraphs (4) and (8) an order is made in the terms of a draft order if it contains no material changes to the provisions of the draft order.
(12) In this schedule the “60-day period” means the period of 60 days beginning with the day on which the draft order was laid before Parliament under sub-paragraph(4).
(13) In calculating any period of days for the purposes of this section, no account shall be taken of any time during which Parliament is dissolved or prorogued or during which either House is adjourned for more than four days.
21 A resolution of either House is valid for the purposes of this schedule if, and only if, the motion for the resolution—
(a) is agreed without a division; or
(b) is passed on a division in which the number of members who vote in favour of the motion is a number equal to or greater than two-thirds of the number of seats in the House (including vacant seats).
Interpretation of Legislation
22 (1) So far as it is possible to do so, primary legislation and subordinate legislation must be read and given effect in a way which is compatible with the Code.
(2) This paragraph—
(a) applies to primary legislation and subordinate legislation whenever enacted;
(b) does not affect the validity, continuing operation or enforcement of any incompatible primary legislation; and
(c) does not affect the validity, continuing operation or enforcement of any incompatible subordinate legislation if (disregarding any possibility of revocation) primary legislation prevents removal of the incompatibility.
Declaration of Incompatibility
23 (1) Sub-paragraph (2) applies in any proceedings in which a court determines whether a provision of primary legislation is compatible with the Code.
(2) If the court is satisfied that the provision is incompatible with the Code, it may make a declaration of that incompatibility.
(3) Sub-paragraph (4) applies in any proceedings in which a court determines whether a provision of subordinate legislation, made in the exercise of a power conferred by primary legislation, is compatible with a provision of the Code.
(4) If the court is satisfied—
(a) that the provision is incompatible with the Code, and
(b) that (disregarding any possibility of revocation) the primary legislation concerned prevents removal of the incompatibility, it may make a declaration of that incompatibility.
(5) In this paragraph “court” means the Supreme Court; the Court of Appeal; and the High Court.
(6) A declaration under this paragraph (“a declaration of incompatibility”)—
(a) does not affect the validity, continuing operation or enforcement of the provision in respect of which it is given; and
(b) is not binding on the parties to the proceedings in which it is made.
Power to take remedial action
24 (1) This paragraph applies if—
(a) a provision of legislation has been declared under paragraph 22 to be incompatible with the Code and, if an appeal lies—
(i) all persons who may appeal have stated in writing that they do not intend to do so;
(ii) the time for bringing an appeal has expired and no appeal has been brought within that time; or
(iii) an appeal brought within that time has been determined or abandoned; or
(b) it appears to the Secretary of State that, having regard to any finding of his under section 5(1) of the Localism Act 2011, a provision of legislation is incompatible with the Code.
(2) If a Minister of the Crown considers that there are compelling reasons for proceeding under this section, he may by order make such amendments to the legislation as he considers necessary to remove the incompatibility.
(3) If, in the case of subordinate legislation, a Minister of the Crown considers that—
(a) it is necessary to amend the primary legislation under which the subordinate legislation in question was made, in order to enable the incompatibility to be removed, and
(b) there are compelling reasons for proceeding under this paragraph, he may by means of a remedial order make such amendments to the primary legislation as he considers necessary.
(4) This paragraph also applies where the provision in question is in subordinate legislation and has been quashed, or declared invalid, by reason of incompatibility with the Code and the Minister proposes to proceed under paragraph 25(b).
(5) If the legislation is an Order in Council, the power conferred by sub-paragraph (2) or (3) is exercisable by Her Majesty in Council.
Remedial Orders
25 (1) A remedial order may—
(a) contain such incidental, supplemental, consequential or transitional provision as the person making it considers appropriate;
(b) be made so as to have effect from a date earlier than that on which it is made;
(c) make provision for the delegation of specific functions;
(d) make different provision for different cases.
(2) The power conferred by sub-paragraph (1)(a) includes—
(a) power to amend primary legislation (including primary legislation other than that which contains the incompatible provision); and
(b) power to amend or revoke subordinate legislation (including subordinate legislation other than that which contains the incompatible provision).
(3) A remedial order may be made so as to have the same extent as the legislation which it affects.
(4) No person is to be guilty of an offence solely as a result of the retrospective effect of a remedial order.
Procedure
26 No remedial order may be made unless—
(a) a draft of the order has been approved by a resolution of each House of Parliament made after the end of the period of 60 days beginning with the day on which the draft was laid; or
(b) it is declared in the order that it appears to the person making it that, because of the urgency of the matter, it is necessary to make the order without a draft being so approved.
Orders laid in draft
27 (1) No draft may be laid under paragraph 25(a) unless—
(a) the person proposing to make the order has laid before Parliament a document which contains a draft of the proposed order and the required information; and
(b) the period of 60 days, beginning with the day on which the document required by this sub-paragraph was laid, has ended.
(2) If representations have been made during that period, the draft laid under paragraph 25(a) must be accompanied by a statement containing—
(a) a summary of the representations; and
(b) if, as a result of the representations, the proposed order has been changed, details of the changes.
Urgent cases
28 (1) If a remedial order (“the original order“) is made without being approved in draft, the person making it must lay it before Parliament, accompanied by the required information, after it is made.
(2) If representations have been made during the period of 60 days beginning with the day on which the original order was made, the person making it must (after the end of that period) lay before Parliament a statement containing—
(a) a summary of the representations; and
(b) if, as a result of the representations, he considers it appropriate to make changes to the original order, details of the changes.
(3) If sub-paragraph (2)(b) applies, the person making the statement must—
(a) make a further remedial order replacing the original order; and
(b) lay the replacement order before Parliament.
(4) If, at the end of the period of 120 days beginning with the day on which the original order was made, a resolution has not been passed by each House approving the original or replacement order, the order ceases to have effect (but without that affecting anything previously done under either order or the power to make a fresh remedial order).
Definitions
29 In this Schedule—
“representations” means representations about a remedial order (or proposed remedial order) made to the person making (or proposing to make) it and includes any relevant Parliamentary report or resolution; and
“required information” means—
(a) an explanation of the incompatibility which the order (or proposed order) seeks to remove, including particulars of the relevant declaration, finding or order; and
(b) a statement of the reasons for proceeding under paragraph (23) and for making an order in those terms.
Calculating periods
30 In calculating any period for the purposes of this Schedule, no account is to be taken of any time during which—
(a) Parliament is dissolved or prorogued; or
(b) both Houses are adjourned for more than four days.
Statements of Compatibility
31 (1) A Minister of the Crown in charge of a Bill in either House of Parliament must, before Second Reading of the Bill—
(a) make a statement to the effect that in his view the provisions of the Bill are compatible with the provisions of the Code (“a statement of compatibility”); or
(b) make a statement to the effect that although he is unable to make a statement of compatibility the government nevertheless wishes the House to proceed with the Bill.
(2) The statement must be in writing and be published in such manner as the Minister making it considers appropriate.
Amendment to the Parliament Act 1911
32 In section 2(1) of the Parliament Act 1911 the words “or a Bill seeking to amend the Local Government Independence Code Act” shall be inserted after the words “maximum duration of Parliament beyond five years”.
Amendments to other Enactments
33 (6A) The general power of competence includes the power to raise revenue through any method including although not limited to local taxation, levies and duties.”
34 Schedule 6 of the Localism Act 2011 is repealed.
Duty to review provisions in primary and subordinate legislation
35 (1) The Secretary of State shall, within six months of the passing of this Act, make provision by Order to provide for the review of all provisions in pre-commencement primary and subordinate legislation to assess their compatibility with the provisions of the Code.
(2) The order must include—
(a) provision requiring the review of the compatibility of pre- commencement legislation to be completed within a five year period, commencing with the date of passing of this Act;
(b) provision for incompatible pre-commencement legislation to cease to have effect no later than the end of a seven year period, commencing with the date of passing of this Act.
(3) The provision that may be made by virtue of subsection (2)(a) includes provision requiring the person to consider whether the objectives which it was the purpose of the legislation to achieve remain appropriate and, if so, whether they could be achieved in another way.
36 (1) In this schedule, “pre-commencement legislation” means a provision that—
(a) is contained in any other Act passed no later than the end of the Session in which this Act is passed, or
(b) is contained in an instrument made under any other Act and comes into force before the commencement of section 1 of this Act.
(2) Subordinate legislation under paragraph (35)1 may make transitional, consequential, incidental or supplementary provision or savings in connection with such provision.’
This new Schedule provides details relating to implementation of the new Clause on the Local Government Independence Code.
Mr Reed
I understand that it is appropriate briefly to mention the issue of Sunday trading when talking about this group. Last month, the Prime Minister declared at the Dispatch Box:
“we will be putting”—
it—
“in front of the House, in the Cities and Local Government Devolution Bill”—[Official Report, 21 October 2015; Vol. 600, c. 947.]
That was despite the fact that in April he wrote that he had no plans to change the Sunday trading laws and that
“the current system provides a reasonable balance.”
That measure is not before us today; the Government clearly could not get the support that they need. Could we hear from the Minister whether the Government are now ruling it out in this Bill entirely?
The Temporary Chair
I suggest to the hon. Gentleman that the provision is not there and that we cannot debate what is not before the Committee.
Mr Reed
Absolutely, Mrs Main, although the Minister was courteous enough to respond to a point on this issue earlier in the debate and it would be helpful to know that the Government are not proposing to bring it back on Report next week.
New clause 24 stands in my name and those of my hon. Friends. Devolution without fiscal powers is not ambitious enough. As Labour said on day one of this Committee, allowing councils greater fiscal powers would allow them to build greater stability into the system. The Government should commit to providing devolved regions with the resources they need, so that they are not being set up to fail. The Bill cannot just be a means of devolving the blame for cuts made in No. 11 Downing Street; devolution is a much bigger agenda than that, and we have heard support for that view from Members in all parts of the House during this afternoon’s debate and during the passage of this Bill. There are problems with the funding of regional economic growth: local enterprise partnerships can be inefficient; and local areas need long-term commitment and resources from the Government. Regional development agencies, which LEPs replaced, were able to make single three-year funding agreements.
James Wharton
I am responsible for LEPs, and I recognise that there are some great LEPs and others that can be improved. The hon. Gentleman says that they can be inefficient, but will he say which ones he is talking about, because I will then have a look?
Mr Reed
I am not going to name individual LEPs at this stage in the debate. If the Minister talks to LEPs, he will find that they agree with my view. I used to sit on the board of a LEP until three years ago. They have access to much smaller budgets than RDAs could have and to far too many small funding pots. The model is too fragmented and too short term. I suggest that he speaks to some of the LEPs if he does not think that there is room for improvement along those lines, because I think he will hear from them what he has been hearing from me this afternoon. What the LEPs are looking for and what they need is longer-term horizons if they are to act more strategically. The Government need to understand the need for more local decision making and fewer centrally imposed constraints, and making these changes to LEPs would be a step forward in allowing that to happen.
England’s local government finance settlement is one of the most centralised anywhere in the world. Councils lack the freedom they need to innovate to the maximum and to spend as much as they would like on local priorities. Even London, which is currently more devolved than anywhere else in the country, is reliant on central Government for three quarters of its funding. That compares with figures of just 30% in New York and 25% in Berlin. London is a world city and it is competing with other world cities that have much more control over their own destinies. London does not need to be kept on such a tight leash, and nor do the other cities and regions across the United Kingdom that also hope to grow their roles in the future.
The Communities and Local Government Committee concluded that local authorities in England have limited control over local taxation and, as a consequence, rely by comparison disproportionately on central Government funding. New clause 24 does not prescribe a particular settlement, but calls on the Secretary of State to publish a framework for further devolution of fiscal powers that is in keeping with the approach that the Government have taken throughout this Bill including, but not limited to, setting and re-evaluating local tax rates banding and discounts. We would like the Government at least to consider allowing councils to add additional council tax bands at the top and the bottom of the scale. That would allow for very large properties to be charged more and for smaller properties to be charged less, which is a move towards a more progressive model of taxation.
I have some experience in this area. Before I came to this House, I was leader of Lambeth council. We froze council tax for six years after taking over from a Tory-Liberal Democrat administration that had pushed up council tax by 24% in a single year. The Government need not worry about profligate Tory or Lib Dem councils behaving in that way, because they are accountable to their local electorate. However, that should not be used as an excuse to prevent more localisation together with a fair equalisation mechanism operating across the country. I hope that we will hear more about that during the autumn statement in just a few weeks’ time. The Bill strikes me as another appropriate place to be putting in some of those measures to drive forward the devolution agenda and the ability of local councils to ensure that they have the resources that they need to exercise fully the powers that they will increasingly be acquiring.
The Government can and should go further. They are devolving some of the powers, but little of the money. Devolution without the resources to make it work is not ambitious devolution; it is devolution where the Secretary of State remains the puppet master pulling all the strings, too often afraid to let go.
On new clause 34, we welcome the fact that new sub-national transport bodies must consult adjoining authorities before making a proposal. On transport, the Government have recognised that the devolution of powers to combined authorities concerns neighbouring authorities that are not part of those combined authorities, but are affected by their decisions. I am thinking about areas such as Plymouth in relation to Cornwall, Chesterfield in relation to Sheffield, and Warrington in relation to Greater Manchester. This is an important principle, but it extends to other areas beyond transport.
Decisions made over health, for example, could have an impact on neighbouring populations. I am thinking about proposals for hospital closures, new hospitals, and reconfiguration of regional or strategic health services. Decisions over Sunday trading could also have an effect should those plans go ahead—of course I hope that they will not.
New clause 36 would ensure that regard is given to neighbouring authorities affected by devolution deals. It would be on the same principle as the Government’s new clause 34, so I cannot imagine what objection the Government might have to it. If we want to build support for devolution and not to fuel resentment, this clause needs to be included, and we intend to test the will of the Committee on it by pressing it to a vote.
Finally, let me turn to new clause 39 on environmental considerations. This new clause places a duty on the Secretary of State to set out guidance on how co-operation between combined authorities can be strengthened to mitigate environmental problems and develop green infrastructure. The Royal Society for the Protection of Birds has carried out an assessment of the current devolution proposals and found that there is an appetite among local councils for greater co-operation on environmental priorities.
The duty to co-operate is not currently strong enough, and local planning can fail to take into consideration the ability of the community to build a positive vision for the local environment. Such changes would strengthen and improve this Bill. I am interested to hear the Government’s position on them when the Minister has an opportunity to respond.
Robert Neill (Bromley and Chislehurst) (Con)
I commend the hon. Member for Croydon North (Mr Reed) on the sentiments of his speech, if not entirely on the detail, because many of us have some sympathy for the need for further fiscal devolution and will be interested to see what form that can eventually take. With no disrespect to those broader issues, I shall refer to new clause 38, which stands in my name and those of my hon. Friend the Member for Ruislip, Northwood and Pinner (Mr Hurd) and the hon. Member for Brentford and Isleworth (Ruth Cadbury) and which relates specifically to enabling devolution to joint committees in London. That might sound technical, but it is actually important. I stress that new clause 38 is signed by the three of us on a cross-party basis. In fact, it is supported by the all-party parliamentary group for London, by London Councils on a cross-party basis and by the Mayor of London. So this is a London ask to the Government.
New clause 38 essentially relates to the fact that, as certainly I and a number of right hon. and hon. Members on both sides of the House said on Second Reading, it is sometimes thought that devolution in London is a job done. Well, it is not; more remains to be done on devolution in London. The Government recognise that fact—potential means of devolution to the Mayor and to London boroughs have already been discussed—but the purpose of new clause 38 is to probe the Government’s thinking a little, and I shall be interested to hear the Minister’s response on precisely what legislative framework is required to achieve devolution to the Mayor and to London boroughs, either for all of London in some cases or specifically, as would be allowed under these proposals, to parts of London.
We have been talking about the various devolution deals. I was delighted to hear two of them announced today. Of course, they are important and they rightly vary from place to place. Well, the same applies to London. By its very nature and size, London is infinitely bigger than any other city and any other potential devolution deal. For that reason and because of its nature and complexity—although with the directly elected Mayor and the Greater London Authority, it was the first to have a form of devolution of the kind that the Government envisage, which we welcome being rolled out elsewhere—it has different governance arrangements. In particular, we must recognise the role of the 32 London boroughs—far more than in any other proposed combined mayoral authority—as well as that of the London Assembly.
Robert Neill
My hon. Friend makes an entirely fair point, and I recognise his long experience in local government and his interest in the matter throughout his time in the House. It is perfectly true that we must look at the situation in the shire counties, particularly where two-tier arrangements apply. I very much hope that we will see county devolution deals as well, because the strategic counties of England are potentially just as much economic drivers as our great cities, but we will need tailored governance arrangements to recognise the two-tier nature, which differs in its competence from that within the London boroughs or the metropolitan authorities.
Mr Steve Reed
May I associate myself with the very welcome proposals being made by my fellow co-chair of the all-party parliamentary group for London? Given the complexity of London’s governance, it will be difficult for further devolution to happen if such proposals are not accepted by the Government. I endorse the view that is being expressed, and I hope that the Government will listen to it as a means to promote further sensible devolution in London.
Robert Neill
I am grateful to the hon. Gentleman for his support for the new clause. It is not intended to be the definitive text, but I hope the Minister will take heart from the fact that any text brought forward by the Government is likely to enjoy cross-party support and is unlikely to impede the progress of the Bill, but will enhance the opportunity for devolution deals within London as a whole.
Mr Steve Reed
As I understand it, the Local Government Association estimates that the Housing and Planning Bill includes some 30 new centralising measures. Given that that Bill is being sponsored by the same Secretary of State as the devolution Bill, does that not cast doubt on his commitment to devolution?
The Temporary Chairman (Mrs Anne Main)
Order. I think the hon. Gentleman was trying to make a fair point about devolution and taking back powers, but the shadow Minister is straying down a path that will not be fruitful.
James Wharton
We have had an interesting and wide-ranging discussion on this group of amendments. I have listened to the debate and, while I understand a number of the points raised, I am afraid I cannot support any of the new clauses, as I will endeavour to explain.
I will begin with new clause 24, which would require the Secretary of State to set out a framework for further devolution of fiscal powers. By the end of this Parliament the local government sector will retain 100% of local taxes to spend on local government services. For the first time in decades, local areas will see the full direct benefit of business rate growth in their area. We wish to end the merry-go-round of clawing back local taxes to Whitehall and handing them out again in the form of grants. We will, of course, however, maintain redistribution between councils so that local authorities do not lose out.
We will be working with local authorities over the coming days and weeks on this ambitious agenda. It is our intention to devolve far-reaching powers within a framework of strong, accountable, transparent governance, and strong delivery capability. We will be setting out our detailed proposals in due course and, in light of this, I hope all parts of the House would agree that this new clause, which would require the Secretary of State to set out a framework for further devolution of fiscal powers, is unnecessary. I recognise the comments of the hon. Member for Sheffield South East (Mr Betts) on this new clause, and his desire to see at the end of this process a period of reflection and consideration. I think there is merit in what he says. We will see how things progress, but certainly we will need to look at the totality of what has been done before deciding what next steps may ultimately then follow.
New clause 29 and accompanying new schedule 2 would provide for a local government independence code, defining the relationship between central Government and local authorities, and would make provision about their financial independence and conduct. Such codification is somewhat contrary to our constitutional traditions, and I do not think we need to go down the route set out by this new clause. We always want clarity in the deals we do—we always want to have discussions with local government about the future they see for themselves—but we see no need for what would be a very restraining and unnecessarily legalistic approach to the relationship between central and local government. We will, of course, look to the future, as the hon. Member for Nottingham North (Mr Allen) asked. He is an ambitious advocate of devolution in all its guises and where it can go, and I look forward to having, I am sure, many more debates in future about this topic with him.
New clause 30 seeks to reduce the minimum percentage of local government electors in a local authority area required for a petition to trigger a referendum on its governance model. My hon. Friends the Members for Carlisle (John Stevenson) and for Cleethorpes (Martin Vickers) have spoken eloquently on this issue. It is an issue that I know they care about. The hon. Member for Cleethorpes, famed for his consistency, is of course someone who stands by his beliefs and is, I think, in line and in tune with the sentiment of what the Government are doing in this area on this occasion. However, I cannot suggest we should support his new clause because the Local Government Act 2000 gives both the Secretary of State, and Welsh Ministers where relevant in Wales, a power to make regulations concerning public petitions in relation to whether a local authority should hold a referendum about changing its governance arrangements, for example to adopt a directly elected mayor. The regulations can already specify the minimum number of electors who must sign a petition for it to be valid, and the default position if the regulations do not specify any such threshold is 5%, which is also the current threshold for England. I have listened to hon. Members’ arguments, and I am happy to have further discussions about the actions the Government should take in the exercise of those powers, but I do not think it necessary to make this amendment to the Bill at this time.
New clause 31 would allow the Secretary of State, by order, to give power to the mayor of a combined authority to set a minimum unit price for alcohol sold in the combined authority area, with the mayor’s power being exercisable only following consultation on the proposed level of that price. The Government have recently undertaken a nationwide consultation on the introduction of a minimum price for alcohol, which raised a number of issues, including the potential economic impact of minimum unit pricing and the possibility of unintended impacts on businesses. The new clause’s proposed piecemeal, localised minimum alcohol pricing would risk consumers simply travelling outside the area of the authority to purchase cheaper alcohol in a neighbouring area.
I understand that in Scotland the policy of minimum unit pricing for alcohol has been legally challenged, and that the European Court of Justice has yet to express a final view. The introduction of a minimum unit price therefore remains under consideration. My hon. Friend the Member for Enfield, Southgate (Mr Burrowes) has made clear his desire to see the policy pursued, but for the reasons I have outlined we have no plans to devolve the matter at this time. We will therefore oppose the new clause.
New clause 32 seeks to introduce a requirement for mayoral combined authorities to publish annual reports about their performance in applying elements of the family test. The family test applies to the development of central Government policy. It recognises the fundamental impacts that central Government decisions can have on families and introduces an explicit family perspective into the policy-making process. However, it would not be devolutionary to start prescribing in detail how mayors or combined authorities should go about exercising their functions. We therefore have no plans to require mayoral combined authorities to apply a family test—a test that was in fact designed to be applied to policy decisions with national impact.
Turning to new clause 33, I want to start by saying that we value the important role of parish councils and that we support local government in innovating and achieving value for money, especially when such money is reinvested into communities. The hon. Member for Nottingham North asked some specific questions, which I shall now answer, on the powers of parishes to sell electricity that they generate. A specific example would involve electricity generated from renewable sources.
There is no need to amend the Local Government (Miscellaneous Provisions) Act 1976 to enable the sale of electricity generated by parish councils. Through the general power of competence in section 1 of the Localism Act 2011 and through section 111 of the Local Government Act 1972, it is already possible for parish councils to sell the electricity they generate, depending on the circumstances. I suspect that the new clause was tabled to seek clarity, and should my comments not provide sufficient clarity I shall of course be happy to speak to interested Members after the debate to ensure that any concerns are properly addressed.
I turn now to new clause 36, tabled by Labour Members, which would require a combined authority with devolved functions to consider the impact on neighbouring local authority areas. I do not believe that this amendment is necessary or appropriate. The statute provides that combined authorities must exercise their functions in relation to their area. That area, of course, is the area that Parliament has approved when establishing the combined authority. It is an area that equally has enabled the combined authority to satisfy the statutory tests—that is, it is an area in which, if functions are exercised, that exercise of functions will result in an improvement compared with what would otherwise be the case. Indeed, the Bill provides that functions cannot be devolved to a combined authority if the Secretary of State does not consider that that would lead to an improvement in the exercise of statutory functions in the combined authority’s area.
The new clause seeks to provide some further requirement about how, once established, a combined authority should go about the exercise of the functions devolved to it. As with local authorities, combined authorities must take their decisions having regard to all relevant considerations. Just as local authorities cannot be blind to the impact of their decisions beyond their boundaries, nor can combined authorities; and just as local authorities are able to form joint committees with neighbouring authorities to manage activities that could have an impact beyond their areas, so can combined authorities. Hence, as I have said, the proposed new clause is neither necessary nor appropriate for inclusion in the Bill.
My hon. Friend the Member for Enfield, Southgate has also tabled new clause 37, which would amend section 80 of the Local Government Act 1972 so that a councillor who received any sentence of imprisonment, including a suspended one, would be disqualified. At present, a councillor is disqualified only if they have received a sentence of imprisonment, suspended or not, of not less than three months without the option of a fine.
Previous Governments have recognised that section 80 needs to be updated, not least to take account of modern sentencing guidelines, and we agree that change is necessary. Many things have changed since 1972, and this section is in need of amendment. At the beginning of this year, the Electoral Commission’s report “Standing for election in the UK” recommended that the Government clarify and update the law relating to the qualifications for local government elections. Our strong preference is to consult on change, and to work with colleagues in the local government sector and the Electoral Commission in considering the scope of section 80, rather than make piecemeal amendments through this Bill. This work will include not only reviewing and possibly amending the rules of disqualification relating to sentencing, but reviewing other rules about the qualification for standing for election, including rules about employees standing for election and about residence. I would like to thank my hon. Friend for bringing this proposal to the attention of the Committee. I know that he has a pressing constituency issue, which he explored in his comments and which highlights the need to make progress. I hope, however, that he will recognise that it is important that that is done in a considered and sensible way, as well as in a timely way, and that an amendment to this Bill is not the appropriate way to do that at this time.
New clause 38 was tabled by my hon. Friend the Member for Bromley and Chislehurst (Robert Neill) and it relates to London. I recognise the work that has gone into it. It is an interesting clause that clearly seeks to raise an important point that matters not only to him but to Members from across the House who take an interest in devolution and such matters in London. If accepted, the clause would enable ministerial functions to be devolved to voluntary joint committees of London councils and to such committees acting jointly with the Mayor of London. I understand from his explanatory statement that the purpose of the amendment is to provide
“for decision-making arrangements to enable operational delegation to groups of London local authorities and for the strategic governance of devolved responsibilities to be shared between London authorities and the Mayor through an appropriately constituted joint committee.”
We have always made it clear that for functions to be devolved to local authorities arrangements ensuring strong and clear accountability must be put in place. The new clause appears to be an attempt to formalise joint committee arrangements, while making it clear that London authorities will have the freedom to enter into their own constitutional arrangements for joint committees, including arrangements involving the Mayor of London. We do not believe that the informal nature of the proposed arrangements provides the strong and clear accountability that would support the devolution of the functions of either a Minister or a Department to a joint committee. However, I do recognise that giving more substance to multi-borough partnerships, which are already delivering innovative pilots in the areas of health, employment and skills, could help provide clearer lines of accountability and enable them to take on more ambitious programmes in the future. I am happy, therefore, for departmental officials to work with London further to explore options and I am of course happy to discuss the matter further with my hon. Friend after the progress that we hope this Bill will have made today.
Finally, new clause 39 seeks to place in the Bill a specific requirement for the Secretary of State to prepare guidance for combined authorities on effective strategic planning for environmental problems and green infrastructure no later than three months after the passing of this Act. As with some of the other amendments we have discussed today, providing for central prescription in this way goes against what this Bill is about; we are engaged in the business of reversing many years of centralisation.
With that, and the explanations I have given on the other provisions in this group, I hope that hon. Members will not push their amendments to a vote. The Government intend to resist them. We have had another interesting, useful and productive discussion on a wide range of issues in this group. It has informed the debate about devolution more generally in a helpful and productive way. On that basis, I hope we can continue to build consensus, can deliver this Bill and can deliver on our commitments.
Mr Steve Reed
I agree with the Minister that this has been a good, interesting and productive debate. He says he is in listening mode. I am not sure he is hearing quite as much as we might have hoped, but I recognise his intention to build consensus, which is necessary for the important, incremental, constitutional change we have before us this afternoon.
The hon. Member for Bromley and Chislehurst (Robert Neill) put forward some proposals that have cross-party support and that would enable further and faster devolution for London. I hear what the Minister says, and I welcome his intention to work with London government and London councils to find a way to make these proposals work, because otherwise the complexity of London government will pull London back from the forefront of progress towards devolution across the country. We cannot consider London as a job done just because London was out there first.
My hon. Friend the Member for Nottingham North (Mr Allen) made some very important points about fiscal devolution, which must be a central part of any devolution package; otherwise, what we are doing is merely a charade. Even if the Minister is not able or willing to bring forward proposals in this Bill, we hope that the matter forms part of future legislation as we move towards a more devolved settlement across the country.
I regret the Minister’s comments on new clause 36. Our proposals aim to help devolution to work better. Areas on the periphery of combined authorities should not be excluded from decisions that directly affect them. Our proposal merely creates the right to be consulted, which the Government have conceded when it comes to transport. They should consider it for matters of equal importance such as health. We will seek to push that new clause to the vote, but not new clause 39.
I note that the Minister did not respond to the issue of whether he would rule out Sunday trading from any future stages of this Bill. His silence will lead Members to draw their own conclusions about what is coming.
Having reflected on all the comments in the debate, I beg to ask leave to withdraw new clause 24.
Clause, by leave, withdrawn.
New Clause 36
Regard to Neighbouring Authorities
In exercising a devolved function, combined authorities must have regard to any significant direct impact on the population of neighbouring authorities.” .—(Mr Steve Reed.)
This clause raises the concerns of some authorities which neighbour devolved authorities and ensures that combined authorities which have devolved functions give regard to the possible impact on neighbouring populations, particularly over issues such as transport and health.
Brought up, and read the First time.
Question put, That the clause be read a Second time.