Levelling-up and Regeneration Bill

Tim Farron Excerpts

Report stage
Wednesday 23rd November 2022 Commons Chamber

[Ben Bradley]

As I just said, as far as I can see, the provision is already there and therefore the new clause is unnecessary. Our conversations about devolution within the region have revolved massively around adult skills. In the future, I would like to see Government further devolve powers in related areas, particularly around provision delivered by such organisations as the Department for Work and Pensions, so that there will be a chance to engage in employability conversations and boost basic skills. I look forward to conversations about that in the future.

From conversations with officials and Ministers, it is clear that once we have the framework and structure, we can come back and talk about new things we would like to see devolved down to our region. That is an example of an area where Whitehall struggles to join things up and where such matters can fall through the gaps in a siloed system. One of my favourite examples of that is youth work, which sits across about six Departments so a joined-up strategy is difficult to achieve. If we can devolve such matters to a regional level, we will be able to share budgets and strategies and do things more effectively. I hope we will be able to have those conversations with Government in the future.

My final point is about flexibility in local budgets. I had the honour of hosting the local government Minister, my hon. Friend the Member for North East Derbyshire (Lee Rowley), in Nottinghamshire a few weeks ago. We went into great detail about the council budget, the opportunities and risks of it, and some of the things that could be done that do not cost the Government any money. In the spirit of empowering local leaders and devolving powers to local areas, it is key to give them more flexibility over existing budgets.

If I had the same budget in my local authority but all the rules and ringfences about what I could spend it on were removed, I would have a surplus and I would not have a problem. The lack of flexibility in the system means that I can spend the budget only on certain things that are not always the priority. There is a good opportunity, whether in the upcoming local government settlement or in the 2023 devolution deals and beyond, to genuinely empower local council leaders to be able to take decisions on funding key priorities.

I will point to one example. In common with many people, I have a bus service improvement fund in Nottinghamshire County Council that allows me to build bus lanes. At the same time, I have a shortfall in the funding that I need to keep the buses running. I could end up in a scenario where I have to build bus lanes, but I have no buses to run in them, even though the money is already in my bank account and if I were allowed to do so, I could spend it on keeping the buses. That is just one example, and there are many more. Flexibility and empowerment of local councils and leaders is hugely important. I am pleased that the Government have committed to that through devolution, but there is more that could be done to support the sustainability of local councils too.

In conclusion, the timescales of the Bill are hugely important. It needs to be completed on time in the spring or early summer if we are to pass statutory instruments and stick to timetables and targets for elections in 2024. I urge the Government to push the Bill through and ensure that we meet those timescales, otherwise my region will be stranded: the deal will be done, the structures will be in place and everything will be ready to go, but we will have to wait another year for another set of elections. That seems arbitrary and would be incredibly frustrating. We are at the front of the queue and we just want to be let in the door. I trust that the Government will recognise the importance of delivering on those commitments. I look forward, of course, to speaking to the Minister in due course about the success of Mansfield’s levelling-up fund bid—she may hear that from a few hon. Members in this debate—so there are many conversations still to have.

[Tim Farron (Westmorland and Lonsdale) (LD)]

It is a pleasure to take part in the debate and to have heard the contributions so far, and an even greater pleasure to have been involved in all but two of the 27 Committee sittings—I missed them for the Westmorland county show, which is permissible in my opinion. I confess that I have not sat on a Committee for many years and I genuinely enjoyed it, which may be a peculiar thing to say. I enjoyed the civility of it, the way that we could go through the Bill line by line, and the fact that we could disagree—we disagreed pretty much politely throughout.

As has been observed by other hon. Members, the turnover of the ministerial team was rather like Mark E Smith’s The Fall—the Secretary of State was Mark E Smith in that characterisation, although even Mark E Smith never managed to sack himself. The turnover was remarkable, but all the Ministers were pleasant and well engaged, so I enjoyed the process.

The Bill is complex—there is a lot of it and a lot of detail—but I would argue that some of it is totally unnecessary, because levelling up the country needs not legislation but will. The phrase “levelling up” recognises that some regions of the United Kingdom, particularly in England, are behind others. Generally speaking, only London and the south-east tend to make a positive net contribution to GDP. The eastern region’s contribution is occasionally fractionally positive, but the rest of us technically make a negative contribution. That is not our fault; it is because of the way this country operates as a unipolar country, where all the resources are centred on London and its environs.

There is absolutely a need to level up, in the phrase that the Government have chosen, but the action seems starkly missing. Let us be honest: as we go through the process of public services and public spending cuts now, there is no doubt that the poorest regions of the country that are most in need of levelling up will, as always, be hardest hit, because those are the communities in which people most need public services. In my view, therefore, much of the Bill—for all that it has been a joy to discuss—is navel contemplation over action.

The part of the Bill that we are discussing that relates to devolution and the settlements and deals for local communities is thoroughly patronising. We are not actually being offered devolution at all, are we? We are being offered delegation. I am pleased to support new clause 71 in the name of the right hon. Member for Camborne and Redruth (George Eustice), whose kind words about my former and current colleagues are genuinely well received and I am grateful on their and my behalf. He talked about the importance of Cornwall being able to choose its own destiny, which I fully support and which, surely, is what we want for everywhere else as well if we believe in devolution and empowering local communities.

The various Ministers who we spoke to in Committee consistently reinforced the position that level 3, the highest tier of devolution, will be available only to those communities that choose a Mayor. That is not devolution but delegation to neaten up the system for the benefit of the Government rather than to empower local communities. If rural and diverse communities such as Cumbria, which is not dissimilar to Cornwall, decide that they want devolution, but do not want to choose the model the Government tell them to have, who the heck are the Conservative Government in Westminster to dictate either to Cornwall or Cumbria that it must have such a system? We would like devolution—we demand devolution—and we demand not to be told the format that it must take. An obsession with symmetry is typical of all parties that end up in office—sometimes.

[Ben Bradley]

Does the hon. Member not accept that, if we allow every area to dictate the way it has devolution in the way it would like to have it, we would end up with a ridiculous hotchpotch of systems across the country that makes no coherent sense? Our system of local government and local governance is already incredibly mixed and complicated, and surely this is a chance to have some consistency across the board so that his area, just like my area, can have a positive and consistent relationship with Government and equal access to Government.

[Tim Farron]

I see the point, and I understand that the hon. Gentleman is a local government leader himself. Nevertheless, that is what people would say if they were sitting in Westminster, because it is neat and useful for them. The reality is that, in Cumbria, Cornwall, Northumberland or Shropshire, having the ability to choose our own style of government might be complicated for the Government, but it is not complicated for us. Do we believe in devolution, or do we want the Government to have things just as they want?

I feel—I fear, even—that what we are seeing is not devolution, but delegation. The Government are seeking neatness and convenience for their own sake, rather than the empowerment of communities. It is an obsession with symmetry, rather than the empowerment of such communities. With the exception of the right hon. Member for Camborne and Redruth and perhaps one or two others, the Government are playing to their stereotype of being out of touch with local communities. So, Mr Deputy Speaker, if you will allow me, I will play to my stereotype and talk about electoral reform. You would be very disappointed if I did not.

New clause 45 offers local authorities the opportunity to choose their own electoral system. Unsurprisingly—I will absolutely stagger you now, Mr Deputy Speaker, and predict this—a commitment to electoral reform will be in the next Liberal Democrat manifesto. There, I have said it. The point is that communities should be allowed to choose, and since the last election the Government have removed the ability to use the supplementary vote—not an electoral system I favour, but nevertheless one fairer than first past the post—for mayoral elections and police and crime commissioner elections, which I think removes choice from local communities.

I would also suggest this in support of my amendment. The Government choosing to make a change to the electoral system, as they have done in local government, without reference to a referendum is an interesting precedent for what might happen under a future Government. It is a precedent the Government will wish they had never set, because if a party or parties go into a future election committing to electoral reform in their manifestos and find itself or themselves in government, we now have the precedent that electoral reform can be delivered without reference to a referendum. The Government will rue the day, and they might rue it soon.

New clause 45 gives local authorities the opportunity to choose to elect their mayors, councillors and police and crime commissioners in the way they choose. If this really was a levelling-up and devolution Bill, of course the Government would permit local authorities to do that. They do not need to approve of what a local government area does, within obvious parameters, to be able to permit them to have that power.

I want to move on to new clause 46, in my name and that of my hon. Friend the Member for St Albans (Daisy Cooper), which, with your permission, Mr Deputy Speaker, I will seek to push to a vote. It is on the reform of the business rates system, to which my hon. Friend the Member for North Shropshire (Helen Morgan) has already rightly and powerfully made reference. Business rates are an outdated and completely counterproductive system of taxation. They are harmful for our high streets and the economy because they directly tax investment in structures and equipment, rather than taxing profits or the fixed stock of land.

The 2019 Conservative manifesto committed to doing exactly what I am suggesting and proposing that the Government should do, so they should have no problem whatsoever in adopting new clause 46. It should be a piece of cake for them to do so, because in their manifesto they pledged to

“cut the burden of tax on business by reducing business rates. This will be done via a fundamental review of the system.”

Where is it? My amendment gives them the opportunity to do just that. This is the opportunity for them to show that they meant what they had in their manifesto.

Since the 2019 election, the Government have repeatedly tinkered with business rates but failed to bring forward that fundamental review. We often approve of that tinkering, but the fact that they are constantly tinkering is a living admission that the system is broken, so let us fix it. The fact is, business rates do not reflect the value of properties, particularly in the north and the midlands—areas outside of London and the south-east—and do active damage to our high streets, which are already under enough pressure.

--- Later in debate ---

[Dehenna Davison]

While I understand the intention behind the new clause, we consider it unnecessary on the basis that a review has been concluded only recently, and we have put in place an incredibly robust support package.

[Tim Farron]

I am grateful to the Minister for what she is saying. To add to what my hon. Friend the Member for North Shropshire said, there may be much to commend that particular part of the autumn statement, but is the very package not an admission that the system is broken? Tinkering on the edges will not help. Surely it needs full reform and replacement if we are to support our town and village centres.

[Dehenna Davison]

I am grateful to the hon. Member, and indeed all colleagues who have engaged with us on business rates reform. I will not go over arguments that I have already made. We will not accept the new clause, but I hope that hon. Members recognise that we are very much committed to ensuring that business rates are not an impediment to businesses investing in and residing within our high streets.

The hon. Member for Westmorland and Lonsdale also spoke to new clause 45 on electoral system reform. It was no surprise to hear the Lib Dems talking about electoral reform, and I do not want to rehash debates from Committee. I know that he and his party are passionate about this subject, but he will not be surprised to learn that the Government will not accept the new clause.

Turning to my hon. Friend the Member for Cities of London and Westminster (Nickie Aiken), I want to put on record my sincere praise for her campaigning on the repeal of the Vagrancy Act. She is so passionate on this issue and I am grateful to her for her positive engagement. I look forward to working with her as this progresses. On her new clause 4, I have to admit that I would not want to make a commitment today, but I am keen to work with her to understand the issue of local voting rights in her constituency more fully. I would love to get a meeting in with her in due course to see whether this is something that we can review.

The hon. Member for Brighton, Pavilion (Caroline Lucas) made an impassioned case on an issue on which I know she is very passionate. It was great to find agreement with her, as we both believe in devolving power to a local level to tackle local challenges. In the White Paper we set out a skills mission which set a target to increase the number of people completing high-quality skills training in every area of the UK by 200,000, with 80,000 more people competing skills training in the lowest skilled areas of the UK. The White Paper also highlighted the importance of the Government’s net zero target in helping to achieve that mission. The Government’s net zero strategy also makes a commitment to ensuring that the skills system is incentivised and equipped to deliver the skills necessary for the transition to net zero, as well as a commitment to growing post-16 training programmes such as green skills boot camps, apprenticeships and T-Levels. We will not be accepting the hon. Member’s amendment today, but I hope she recognises that there is a commitment from the Government, through the White Paper and other strategies, to ensure that we hit those net zero targets.

I want to make two quick final points. First, I want to say how grateful I am to my hon. Friend the Member for Gosport (Dame Caroline Dinenage) for her positive engagement on the issue of council tax for houses of multiple occupancy. We have reached a good position and I look forward to working with her and her constituent Mr Brewer throughout the consultation and beyond to ensure that we get it right.

Finally, the hon. Member for Sheffield South East (Mr Betts) raised points on the standards board and compulsory purchase orders, but I want to latch on to something he said about his belief in devolution—something that he and we in the Government absolutely share. He talked about brownfield land, and he will know about the brownfield land release fund, which has been so crucial in helping to support and regenerate brownfield areas. I would be happy to engage with him and I look forward to working with him and the Committee in my wider ministerial role.

In closing, I hope that hon. Members can see from the amendments that the Government have tabled today that we have listened to the concerns that have been raised since the Bill was introduced and that we are determined that the Bill will make a tangible difference in communities up and down the country.

Question put and agreed to.

New clause 61 accordingly read a Second time, and added to the Bill.



New Clause 62

Functions in respect of key route network roads

(1) The Local Democracy, Economic Development and Construction Act 2009 is amended as follows.

(2) In section 104, in subsection (10), for “An” substitute “Except as provided for by section 107ZA(7), an”.

(3) In section 107D, in subsection (9), for “An” substitute “Except as provided for by section 107ZA(7), an”.

(4) After section 107 insert—

“Combined authorities: key route network roads

107ZA Designation of key route network roads

(1) A combined authority may designate a highway or proposed highway in its area as a key route network road, or remove its designation as a key route network road, with the consent of—

(a) each constituent council in whose area the highway or proposed highway is, and

(b) in the case of a mayoral combined authority, the mayor.

(2) The Secretary of State may designate a highway or proposed highway in the area of a combined authority as a key route network road, or remove its designation as a key route network road, if requested to do so by—

(a) the combined authority,

(b) the mayor (if any) of the combined authority, or

(c) a constituent council.

(3) A designation or removal under this section must be in writing and must state when it comes into effect.

(4) The Secretary of State must send a copy of a designation or removal under subsection (2) to the combined authority in question at least 7 days before the date on which it comes into effect.

(5) A combined authority must publish each designation or removal under this section of a key route network road within its area before the date on which it comes into effect.

(6) A combined authority that has key route network roads in its area must keep a list or map (or both) accessible to the public showing those roads.

(7) The requirements in section 104(10) and section 107D(9)(a) do not apply to provision under section 104(1)(d) and section 107D(1) contained in the same instrument so far as that provision—

(a) confers a power of direction on an existing mayoral combined authority regarding the exercise of an eligible power in respect of key route network roads in the area of that combined authority,

(b) provides for that power of direction to be exercisable only by the mayor of the combined authority, and

(c) is made with the consent of the mayor after the mayor has consulted the constituent councils.

(8) When a mayor consents under subsection (7)(c), the mayor must give the Secretary of State—

(a) a statement by the mayor that all of the constituent councils agree to the making of the order, or

(b) if the mayor is unable to make that statement, the reasons why the mayor considers the order should be made even though not all of the constituent councils agree to it being made.

(9) In this section—

“constituent council” has the meaning given in section 104(11);

“eligible power” has the meaning given by section 88(2) of the Local Transport Act 2008;

“key route network road” means a highway or proposed highway designated for the time being under this section as a key route network road;

“proposed highway” means land on which, in accordance with plans made by a highway authority, that authority are for the time being constructing or intending to construct a highway shown in the plans.””—(Dehenna Davison.)

This new clause provides for designation of “key route network roads” in combined authorities and makes provision about consent requirements for orders that both confer a power of direction concerning such roads and make the power exercisable only by the mayor. It will be inserted after clause 58.

Brought up, read the First and Second time, and added to the Bill.

New Clause 65

Participation of police and crime commissioners at certain local authority committees

In section 102(9) of the Local Government Act 1972 (appointment of committees), for “to which the commissioner is appointed in accordance with this section”, substitute “described in subsection (6)”.”—(Dehenna Davison.)

This new clause makes clear that the restriction in section 102(9) of the Local Government Act 1972 applies only to participation at meetings of the committees described in section 102(6) of that Act. The new clause will be inserted after clause 68.

Brought up, read the First and Second time, and added to the Bill.

New Clause 41

Duty to provide sufficient resources to Combined Authorities and Combined County Authorities

“(1) This section applies where the Government has committed funding to a Combined Authority or a Combined County Authority in order to deliver a specific project.

(2) The Secretary of State must provide commensurate financial resources to a Combined Authority or a Combined County Authority to enable the delivery of the project mentioned in subsection (1) as agreed in full.

(3) The Secretary of States must, by regulations, amend the value of this funding to reflect inflation.”—(Alex Norris.)

This new clause would commit the Government to fully funding combined authority and combined county authority projects they have committed to in the case that costs rise due to inflation.

Brought up, and read the First time.

Question put, That the clause be read a Second time.