Toby Perkins
Main Page: Toby Perkins (Labour - Chesterfield)(13 years, 7 months ago)
Commons ChamberI have to say that I have great affection for Lord Prescott, and I am particularly enjoying his current advocacy of insurance on television.
The Bill is based on a simple premise: we must trust the people who elect us and we must ensure that we trust them to make the right decision for their area. To misquote Clint Eastwood: “A Government needs to know its limitations.” We do not have all the answers but we have to have the courage to encourage local solutions. The Bill is made up of four main elements: London governance, planning, localism and housing. The London element is relatively straightforward and redistributes power away from quangos and back to elected officials and communities. The settlement has been agreed by the Mayor of London, the London assembly and the boroughs, and it is based on consensus across the political parties. I would like to pay tribute to the constructive way in which the Mayor, the assembly and the London boroughs, regardless of their political persuasion, have worked together on these arrangements.
If this is all about giving away powers from Whitehall, why does the Bill transfer 126 new powers to the Secretary of State?
I do not know whether the hon. Gentleman was distracted by something in the Chamber more interesting than my speech, but I have already dealt with that. I politely pointed out that in previous, much smaller Bills introduced when the Labour party was running these matters, the proportion of delegated legislation was much higher. I am here to be helpful.
In some cases, there was an argument for some ring-fencing, and I am not going to step away from that. I am glad to say, however, that as we moved through from ring-fencing to local area agreements, we encouraged local councils and their partners in the police, health and elsewhere to come forward with plans of their own. That is what was happening. I think I am right in saying that the present Administration agree with the work on Total Place. They were going to give it another name, but they still agreed with the principle of partners coming together in that way. However, there is nothing in the Bill to help Total Place, or whatever it was going to be called under the coalition Government, and that is a crying shame.
My right hon. Friend is being very generous in taking interventions, and I thank her for taking one from this side of the House. Do the councils that she meets think that they are better off now that, instead of getting ring-fenced funds, their funds are being abolished by the Secretary of State?
I do not think that the many councils that have had their area-based grants removed are singing from the rooftops about the end of ring-fencing. This is robbing Peter to pay Paul, but it is not the most deprived communities that are being paid; they are losing out hand over fist.
Rebuilding trust in politics and engaging people in the political process is vital, but the Bill could undermine standards in public life by making codes of conduct for councillors voluntary. Good standards are surely not optional. Every community expects its elected representatives to adhere to certain standards.
There was a problem with the initial design of the board, but it was subsequently reformed and now works an awful lot better. My concern is that if a local authority chooses not to have one, there will be nothing between the action of pulling a local councillor up and questioning their actions in some way and taking criminal action against them for failing to deal properly with an issue in relation to which they have a registered interest. There could be a real problem there with a void in the system.
I have other real concerns. The Government are embarking on a fundamental change to the planning system in this country, which Government Members cheered because that is what they believe in. With regard to the abolition of the regional spatial strategy and the development of neighbourhood plans, my concern is that change of this kind brings uncertainty and, to an extent, a lack of clarity, and that it could bring delays and, potentially, unintended consequences.
What will happen ultimately? The Government say that their policy is to build more homes than we were before the recession. They have obligations on renewable energy and ensuring that wind farms are developed to meet them, but what will happen if the sum total of all those local decisions is that fewer homes are built and not enough wind turbines are built to meet our renewables obligations? What is their fall-back position? Is it at that point that the Secretary of State will intervene, or is it that they will accept the sum total of local will across the country and fall down on their national house-building targets and their renewables obligations? What is the Government’s position? I have not heard a coherent explanation of it.
It was a tremendous privilege to be a member of the Select Committee alongside my hon. Friend for a short time. During one of its meetings that I attended, a number of witnesses expressed different views on the strength or otherwise of regional spatial strategies, but every one of them, to a man, agreed that the proposals being produced by this Government would lead to fewer houses being built, not more.
Ultimately, the test will be whether the policy works. My question is this: if the policy does not work, what is the Government’s fall-back position? The Bill includes a duty on local authorities to co-operate on a range of issues, and it is important that they do so, because many of those decisions will have an impact beyond the boundaries of an individual authority. What will happen if local authorities do not co-operate? The Bill is vague about what will happen in that case.
I have mentioned that local authorities stand at the heart of localism. I believe in elective, representative democracy, so I do not understand why it is necessary for the Bill to spell out what the Secretary of State thinks is a proper increase in council tax and for there to be the power to have a referendum in such cases. Rather than a referendum on whether local authorities should cut services, there can be only a one-way referendum if a Secretary of State thinks that a council tax increase might be excessive, as defined by him. Why can we not just leave it up to elected local representatives to make such decisions? I continually refused to vote for the previous Government’s proposals on capping council tax because I did not think that they were right either.
I am afraid that that is a rather poor attempt at hiding the deep unfairness of the settlement imposed on local government by this Government. That was a choice that could have been made differently, but was not.
On the basis of what the hon. Member for Plymouth, Sutton and Devonport (Oliver Colvile) has just said, is it not surprising that a council such as Dorset should have a rise this year, when most councils in the most deprived areas have seen massive cuts? If the problem is a lack of money, why is it that the authorities that are most able to bear that burden are the ones that are better off under this Government?
I agree with my hon. Friend entirely, and I was just coming to that point.
I fear that it is the cuts that will define the future shape, life chances and success, or lack thereof, of Birmingham residents, not the Localism Bill. The provisional local government settlement for Birmingham was a confirmation of the worst-case scenario. Birmingham has to make savings of approximately £170 million in the next two years, and is one of the hardest hit local authorities. In fact, “one of the hardest hit” is a depressing and hideous phrase that the people of Birmingham are having to get used to, after being one of the hardest hit areas in the police settlement.
The sheer size of the cuts in Birmingham will prevent the people of Birmingham from getting the most out of the localism agenda. More affluent areas, which have perversely done better out of the local government financial settlement, have greater scope to gain more from localism. I fear a prevailing culture where those with the deepest pockets will be more able to make themselves heard. If the Government truly want localism to be a success, and want strong local communities up and down the country, they first need to revisit the unfair settlement for local government. Anything less than that is a hollow and unworkable localism, which will not deliver for every community.
The Bill also creates arrangements for directly elected mayors in 12 major English cities, including Birmingham. I am in favour of giving local people a choice as to whether they want a directly elected mayor for their area. An elected mayor could offer highly effective local leadership, and I supported the introduction of this model of local government when it was introduced by the Labour Government. However, I am against imposition. The Bill imposes a shadow mayor on the people of Birmingham, subject to a confirmatory referendum. That aspect needs to be considered again. The people of Birmingham are quite capable of deciding for themselves whether they want a directly elected mayor, rather than having one imposed from the centre by the Secretary of State, subject to later endorsement. Where, may I ask, is the localism in that? If the Secretary of State truly trusted local people to exercise their own judgment about what is right for their area, he would not choose this path.
Earlier, the Secretary of State was asked about his motive for introducing shadow mayors. He said that it was so that people could get ready for having a mayor. People are not stupid. They do not need a practice run dictated to them by the Secretary of State. Let them make their decision and simply get on with it. I am concerned that the shadow arrangements—making the leader of the local authority in the 12 cities the shadow mayor—will create a systemic bias in favour of the shadow mayor, and will make it more difficult for people from all walks of life to put themselves forward for mayorship. That creates an imbalance in favour of the shadow mayor and, regardless of whether that individual is a Labour, Tory or Liberal Democrat councillor, the principle is not sound and is anti-democratic.
The Bill also makes a number of changes to the duties of local authorities in relation to housing. Every single week since I was elected in May, I have met constituents at my advice surgeries who are desperate for housing: people who are on the waiting list for social housing; people who have been waiting many years for a transfer to more suitable social housing accommodation; people on the verge of being made homeless; and young people despairing of ever getting on to the social housing ladder. I am therefore reminded every week of the urgent need to increase the stock of social and affordable housing.
Given that, I wish to make two points about the current changes. First, the changes to the current system are not taking place in isolation. They are doing so with huge changes to housing benefit rules, and therefore councils and social landlords will be under huge pressure. I am not convinced that the changes introduced in the Bill will do anything to alleviate that pressure. The proposals will have to be looked at carefully in Committee.
Secondly, the real challenge is to ensure that more homes are being built. I am alarmed at the reduction in funding for new social homes, and the warnings and figures from various groups involved in building homes. Research recently published by the National Housing Federation shows that, since the general election, local authorities have ditched plans for 160,000 new homes. It believes that, once the homes that Labour started building are complete, no new social homes will be built for the next five years. That would be a complete disaster and I suggest that that should be looked at urgently. No amount of changes to the current system can compensate for the lack of available social and affordable homes. Getting to grips with that should be the priority at this stage.
In conclusion, the Bill has promised much, but the scale of the cuts being imposed on local government, and the deficiencies in some of the Bill’s proposals, will mean that it delivers very little.
That is an incredibly valid point. I shall say more in a moment about the problems experienced by the city of Leeds.
Does the hon. Gentleman believe that fewer houses will be built in his constituency as a result of the abolition of the regional spatial strategies, and, if so, does he think that that is a good thing?
We will have the number of houses that we can cope with. In Leeds, we recognised that certain areas needed more social housing, and the local council increased its target from 25% to 35% of all new houses being social housing. That showed that local people could respond better to local needs, and that is what is important about the Bill.
All the problems that we have experienced have pitted residents against developers, leaving the residents feeling powerless to plan the direction of the towns and villages that they know so well. The recognition of this fact at the heart of the Bill is precisely why I welcome it so much. At long last, the Government here in Westminster recognise that local people are best placed to understand the needs of their towns, as well as the impact of any developments on their communities. Trusting and empowering local people by introducing a neighbourhood planning regime and allowing local knowledge to develop neighbourhood plans and development orders are to be welcomed.
My constituency has a vibrant set of community groups that have joined forces to campaign on this very subject. The Wharfedale and Airedale Review Development —WARD—has already produced an excellent document that highlights the specific issues that need addressing in the local area. I believe that the group will welcome the Bill, which will give it an opportunity to get its voice heard and set the future direction for the area for the first time.
Sadly, the Bill comes too late for some greenfield sites in my constituency. We have already lost fields in Farsley and Yeadon. Both those applications were turned down by the local council, but the decisions were overturned by the inspector, who cited the regional spatial strategy as the reason for allowing them to go through. The planning policies and top-down targets of the past have had a detrimental effect on many of my local communities, and the loss of confidence in the planning process has left many feeling angered and powerless. With this Bill, I hope that we can start again, trusting local people to deliver local planning that understands local needs.
It seems almost an exaggeration to call the Localism Bill a Bill. It is really 400 pages of the Secretary of State’s incoherent streams of consciousness, largely unconnected and all focused on different parts of local government legislation. In so much as it is a Bill, it is a sham.
In the context of the massive cuts to local authority funding, it is disgraceful to suggest that local authorities now have more powers. Authorities know that the only power they have been given is the choice of what to cut. Whether they slash the voluntary sector or refuse collection, planning services or housing, the only authority that they will have is, as I say, the choice of what to cut. The poorest will be hit hardest by cuts to local authority spending—both because they use the services most and because the poorest councils have been the hardest hit.
I should be fascinated to learn why Labour Members simply do not trust local people. In France and Holland there is strategic planning at one level, but at local level people have a huge amount of capacity and ability to shape their environment. I know France well, and I know Holland well. I have seen how the system works in those countries, and I do not understand why you do not believe that it can work here as well.
I do not know why you were the recipient of that attack, Madam Deputy Speaker, but, assuming that the hon. Gentleman was talking about the Labour Government, I think that he should have listened to what I was saying. What I was saying was that local authorities will not have the capacity to influence their areas when faced with spending cuts as great as those with which they have been hit at this point. That is the fundamental difference.
As we have heard today from speaker after speaker, the removal of the housing targets will mean the building of less housing. In the context of a massive housing crisis and a growing population—
Does my hon. Friend agree that it is ridiculous to suggest that transferring the cost of new housing from the state to the tenant will give councils and housing associations more money with which to build houses?
Absolutely, but that is by no means the most ridiculous suggestion that we have heard today. According to the hon. Member for Meon Valley (George Hollingbery), there is to be an affordable housing boom. He believes that tons more houses will be built, although successive Conservative speakers have rejoiced in the fact that local authorities will now be able to tell developers to clear off and prevent the increase in housing provision that we so clearly need.
In the face of a savage housing crisis, when local authorities are being hit by the toughest funding settlement in living memory, we are expecting the enactment of legislation which—as the Under-Secretary of State for Communities and Local Government, the hon. Member for Bromley and Chislehurst (Robert Neill) made clear—ensures that, ultimately, those in the greatest need will bear the greatest burden of paying off the debt. What the hon. Gentleman said at Question Time at the beginning of the current Parliament is coming true, and the Bill is just one example of the way it will do so. We are seeing the Government abdicating all responsibility for housing targets. We are seeing—
I have already taken a couple of interventions, and I know that a number of other Members wish to contribute.
We are seeing a Government who are no longer making housing provision a priority. Largely owing to the toxic legacy of a previous Tory Government, the last Labour Government spent their early years clearing up the disgraceful state of our social housing. As a result, so much money was invested in the decent homes programme that the housing shortage was allowed to become worse and worse. Only during the last three or four years could major social housing developments take place.
I thank the hon. Gentleman for giving way so graciously, but, notwithstanding his comments about social housing, does he accept that, according to Shelter, seven of the top 10 providers in the country are Conservative-controlled councils?
I certainly accept a comment made by Campbell Robb, Shelter’s chief executive, who said:
“It is unbelievable that at a time when every two minutes someone faces the nightmare of losing their home, the government is proposing to reduce the rights of homeless people who approach their local authorities for help.”
What I also understand about the housing crisis is that the state of the rebuilding programme that was beginning to be implemented is being fundamentally eroded by the Bill. The Government’s policies are leading to confusion and chaos and, according to the National Housing Federation, to the loss of 160,000 desperately needed new homes.
I am afraid that I am going to carry on now.
During the final sitting of the Communities and Local Government Committee that I attended, we interviewed eight witnesses about the regional spatial strategies. The opinions of those witnesses were diverse; some were deeply hostile, while others thought the measures were a step in the right direction. However, those eight people of different opinions were united on one thing: the strategies for house building proposed by this Government will, in fact, lead to a reduction in the number of houses being built, and to the homeless crisis getting worse.
These proposed Government policies have therefore united opposition from both ends of the spectrum of interested parties. Shelter says that the housing crisis will get worse and Derbyshire and Nottinghamshire chamber of commerce has written to me today saying that, while it welcomes the Minister’s intent to simplify and speed up the planning system, it has significant concerns that the Bill as currently drafted will act as a barrier to development and economic growth. It is therefore a concern not only of those who are most concerned about the housing crisis, but of those who are interested in development and commerce, that under the nimbyish aspects of the Bill we will see a reduction in house building, even though the building of more houses is required to end the housing crisis.
This Bill is a shambolic cover-up. It will mainly devolve to local government responsibilities on what to cut and who to target. It is a missed opportunity that will do nothing to boost the morale of the beleaguered local government sector, and it will inevitably make the housing crisis worse.
You would not know it, Mr Deputy Speaker, but this is an historic day for the House. Opposition Members should have tuned into the TV this weekend to see the Leader of the Opposition say that he was abandoning the tradition of Fabianism in his party and adopting localism. There was precious little of that in the speeches of the hon. Member for Worsley and Eccles South (Barbara Keeley) and her hon. Friends.
The two parties in the coalition see the Bill for what it is—the first of many measures that will do something very different from those introduced by the previous Administration. We are using the powers of the Government and Parliament to give power away rather than to increase it for ourselves. That is the direction in which this Government will continue to go. We will give more and more power to the people.
Successive Governments have increased the power of the centre, which has led to Britain becoming one of the most centralised and rule-bound societies in the world. French local councillors would be astonished if we told them that local councillors here would be in breach of the rules if they passed a view on a local planning application—they would think that that is nuts. In America, they would think it ridiculous and barmy if a member of President Obama’s cabinet set the local taxation in a small American town; and in Australia, they would wonder what planet someone was on, if they told them that to judge a planning application one has to wade through planning guidance longer than the complete works of Shakespeare. This is the time to reform and bring us back in touch with the rest of the world.
The response from Labour Members made it clear that were it not for the election of this coalition, which is united in wanting to return power to the people, they would have continued in the direction they had previously taken us. That degree of centralisation did not work, of course, and we know why: there is something about the British people that means they do not like being told what to do; they have a quality that makes them want to push back when people try to boss and bully them, as the previous Administration did. It is costly, too. We can imagine the bureaucracy of enforcement that needs to be put in place to impose and send out the directives, to gather the statistics and to send in people to ensure that others comply. We cannot afford that in the circumstances left to us by the Labour party.
More than that, Government Members know in their hearts that the best way to improve society is to give people their heads, and to allow them to follow their vocation and use their initiative, rather than to suppress it with top-down impositions that merely demoralise people.
The right hon. Gentleman is telling us about how many powers the Secretary of State is giving away, but which of the 126 new powers that he is taking under the Bill does he think local people cannot look after for themselves?
If the hon. Gentleman is under any illusion that this is not a Bill that transfers power to people, he should talk to the coalition of voluntary and community organisations that this very day launched a campaign to ensure that the Bill is not watered down by the amendments he would suggest.
If this is the occasion when the Labour party converts to the cause of localism, it has a long way to go. The right hon. Member for Don Valley (Caroline Flint) implied—breathtakingly—that when in government her party had tried to localise power. Even the Leader of the Opposition does not believe that. He said in his leadership campaign that the Labour Government looked down their nose at local government. So much for conversion! The hon. Member for Birmingham, Erdington (Jack Dromey) said that the Labour party downgraded the role of local government when in office. First base for the right hon. Lady is to admit that her party got it wrong in the past—I thought that was what her leader tried to do this weekend—in order then to point in the right direction.