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We strongly feel, as did the Local Government Commission, that Leicester city has the right qualities to be an effective unitary authority. Following his announcement on 21 March, my right hon. Friend the Secretary of State has written to Leicester city council confirming that he intends that there should be a unitary authority for Leicester. Some have suggested that our caution over unitary status for Rutland also meant that we were uncertain as to Leicester city's future status. I should like to confirm that that is not the case.

The city of Leicester has a population of 285,000. As such, it is the second largest non-metropolitan district in England and is bigger than all but four London boroughs and the majority of the metropolitan boroughs. Most of the local authorities in the county would support a unitary Leicester, as would many of the local people. The individual responses to the commission's questionnaire and the results of its MORI poll, which I believe is rather more reliable statistically, suggested that there was strong support in the city for the various options involving a unitary Leicester. The MORI poll suggested that 41 per cent. supported a unitary authority while 17 per cent. supported no change.

In addition, Leicester has a tradition of strong civic government and was a county borough. We believe that it has all the right ingredients to make it a successful unitary authority.

The point was made in some representations following the commission's final report, not least those of my hon. and learned Friend the Member for Harborough, that Leicestershire was unique because of the central position of Leicester in the county, geographically, administratively and culturally. We considered those points very carefully before reaching a decision on the structure of the county, but we do not consider that they negate the case for a unitary authority in Leicester.

My hon. and learned Friend suggested other reasons why there should be no structural change in Leicester. However, I believe that in making decisions about the structure of local government in England it is important to draw a distinction between local authorities and the councils and councillors who serve them. We in Government and Parliament can determine the size, shape, structure and services provided by a local authority, as a local authority's powers and duties are derived directly from Parliament, but we should do so with reference to the objective arguments for and against the various options for that particular area, not on the basis of whether we approve or disapprove of the activities of any existing council or group of councillors.

Councillors are, and should be, responsible to their local electorate. It is up to the people in each authority to elect the people who they think will best be able to make the decisions that will directly affect the quality and cost of local services. In this way, it is up to the people in

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Leicester city--as, indeed, in any other part of the country--to determine whether their existing councillors are doing a good job. If there are real concerns about how a local authority is running its affairs, they should be taken to the district auditor or even to the police. Councils need to satisfy district auditors that their functions are carried out in accordance with statutory requirements. This is, and always has been, the main safeguard against irresponsible action. It is also open to local people to draw to the district auditor's attention any evidence of mismanagement, be it financial or otherwise.

We intend, therefore, to put an order to Parliament for its approval, creating a unitary authority for the city. Assuming that the relevant order for Leicester city is approved by Parliament, local people in the city will have the opportunity to select their new councillors. I am sure that, as part of the campaign for those elections, a debate will ensue on the government of the city, past and present. I hope that the debate will be constructive and will aid the cause of good unitary local government for the city.

My hon. and learned Friend suggested that reorganisation would lead to financial resources being diverted into Leicester from the rest of the county because an "envelope" around the county would mean that gains by one authority would have to be paid for by reductions elsewhere in the county. I hope that I can reassure my hon. Friend on this point. The standard spending assessments will be calculated afresh on the basis of the objective indicators for each service that an authority is providing. I cannot predict at this stage what the effects of that recalculation might be, but I can say that there will be no ring fence or envelope surrounding Leicestershire or any other county affected by reorganisation.

I should also like to say a few words about Rutland, which is ably represented by my hon. Friend the Member for Rutland and Melton who speaks with sincerity and knowledge of his constituents. We realise that Rutland has a strong local identity. Indeed, it has a tradition as a separate county. We should like to see that return, but not to the detriment of local services and financial prudence. My Department has asked Rutland council to supply the assurances that we need that a unitary Rutland will be able to make good practical arrangements for the delivery of local services and that, having considered fully the financial implications, the costs can be paid for within the same financial arrangements and constraints as apply to other reorganised authorities. We shall not bring an order before the House until we are satisfied on those points.

In every county that it has been considering, the Local Government Commission's work has created a great deal of interest. Many hon. Members have been very involved in representing the interests of their communities and will continue to be--

The motion having been made after Ten o'clock, and the debate having continued for half an hour, Mr. Deputy Speaker-- adjourned the House without Question put, pursuant to the Standing Order. Adjourned accordingly at seven minutes to Eleven o'clock.

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