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Mr. Andrew Robathan (Blaby): The right hon. Lady refers to accountability to the public, but many people are worried that public access to council meetings and decision making will be restricted. The Darlington Labour council leader said:


Does the right hon. Lady agree that the Bill will increase secrecy, lack of openness and lack of transparency in local government?

Ms Armstrong: As my speech continues, I shall deal with those issues. I am sure that the hon. Gentleman will enjoy that part of my speech, and he can wait for it to come.

The vast majority of local councils have already begun to modernise their working arrangements by consulting their public and devising new ways of working that empower them to tackle 21st century problems. The Bill

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will create the framework so that all citizens can be assured that they are governed locally by a local authority that is fit for the purpose for the new millennium.

Mr. James Gray (North Wiltshire): Will the Minister give way on that point?

Ms Armstrong: Which point?

Mr. Gray: I wished to intervene on the point that the right hon. Lady was making. She obviously did not gather that.

Along with all the new Labour cant words that she uses, the right hon. Lady makes great play of allowing local authorities to decide how they will run themselves and modernise themselves for the new century. Why, then, has she said specifically that most councils in the land may not do what they wish, but must conform to one of the three options that she offers them? Why has she ignored the unanimous cross-party recommendation from the pre-legislative scrutiny Committee, on which I served?

Ms Armstrong: I am coming to that point. I thought that the hon. Gentleman was challenging my saying that we are in the new millennium. Given where he is coming from, I would not have been surprised if he had.

Local councils have a vital role in exercising community leadership. They know that if they are to carry out that role effectively, they need to modernise the way in which they work to meet new demands--for example, social inclusion, community safety and sustainable regeneration--in addition to local government's historic purposes of nurturing and educating our children and protecting the vulnerable.

Only modern councils can carry out those vital roles--councils that are in touch with the people, with councillors scrutinising the work of executive members and thus ensuring that those who make the decisions locally are held accountable for those decisions locally. They will deliver better quality local services in a responsive way, and work within a strong, clear ethical framework that strengthens the bond of trust between the community and those who seek to serve it.

The Government are committed to ensuring that the devolution settlement for Wales is reflected in this legislation, and we have been working with the National Assembly to achieve that. Both the Government and the Assembly agree that it is essential to get the arrangements for local government right. We are listening to views in Wales to ensure that we get the approach right for Wales, and it is up to councils in England and Wales to listen to their local communities too.

Mr. Simon Thomas (Ceredigion): Before the Minister leaves the subject of Wales, will she say something about community planning? I appreciate the work that has gone into the co-operation between the Government and the National Assembly, but the Welsh Local Government Association has requested that the Bill impose on local authorities a duty to undertake community planning, rather than merely giving them the power to do so.

Ms Armstrong: I am becoming more and more convinced that I should not take interventions, because

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the next point in my speech is to reaffirm that the Government have already told the House of Lords that we have agreed that point with the Welsh Assembly and other bodies.

Part I gives local authorities a broad new power to promote or improve the economic, social or environmental well-being of their areas, or of the people who live there. It will give the initiative back to local authorities, enabling them to take new action to respond to the specific needs of their communities, and build new partnerships with other local bodies to deliver real improvements in local conditions.

Accountable councils in this age can do more than just deliver services. They also give clear direction to their communities, and help to ensure that local action reflects local priorities and is co-ordinated effectively. Effective community leadership means generating support for change and working with others to deliver that change. It means managing and negotiating differences and co-ordinating and facilitating action by others, not just by the council itself.

That is why community strategies are such an important part of our plans to modernise local government. With the new power to promote well-being, it will be for local authorities and their communities to determine what action should be taken. We therefore want to see strategies being prepared by "local strategic partnerships", bringing together councils, public sector agencies, local businesses, voluntary organisations and local communities. Those strategies should set out a shared vision for the community that reflects local aspirations and recognises the potential for all sections of the community to contribute ideas and resources.

Because of the importance that we attach to that role, and the potential for effective community planning to help deliver many of the changes that are essential if local quality of life is to be improved, we will table appropriate amendments to give local authorities a duty, rather than simply a power, to undertake community planning.

Sir Paul Beresford (Mole Valley): Clause 3 deals with the limits that will be put on local authorities' powers, and with the prospect that that will be done through guidance. When the Bill goes into Standing Committee, will that Committee be able to see examples of that guidance, and know where the Government intend to put the limits?

Ms Armstrong: As the hon. Gentleman knows, we have consistently sought to give the House opportunities to see guidance and regulations during the passage of legislation through the House. We certainly intend to do the same this time, and substantial draft guidance has already been issued in relation to other parts of the Bill. We have received comments on that guidance, and some of the Government amendments will reflect that process. We want to rework the proposals constantly, in the light of the ideas and views that are brought forward.

The new powers and responsibilities for local government, in addition to the new responsibilities in connection with best value and the new freedoms arising from changes in the financial regime, present both challenges and opportunities for modern councils.

The traditional council committee structure is not well placed to deal with the new responsibilities that modernisation brings--it simply cannot cope. Local people

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deserve better. That is what the reforms of the political management system will provide--a more efficient, transparent and accountable system that can meet the challenges of modern governance.

Mr. Llew Smith (Blaenau Gwent): Will my right hon. Friend give way?

Ms Armstrong: If my hon. Friend does not mind, I will finish this section of my speech, because I suspect that it deals with a matter that he wants to raise.

Amendments were carried in the other place which have contradictory effects, but which essentially could allow councils to retain the status quo. That cannot be an option. We simply do not agree that the outdated committee system can deliver. All councils will have to change to reflect the new demands on them and the expectations of local people.

Under these provisions, councils will draw up new constitutions in which the full council, meeting in public, decides the policy framework and budget, while the executive--whatever its form--is accountable for implementing the policies and delivering the services that local people want within that policy framework. The overview and scrutiny committees will hold the executive to account for what they have done and what they are planning to do. The provisions will also ensure that councils consider how the implementation of service delivery is working for the citizen.

Dr. Lynne Jones (Birmingham, Selly Oak): Will the Minister give way?

Ms Armstrong: I really should give way to my hon. Friend the Member for Blaenau Gwent (Mr. Smith) first.

Mr. Smith: The Minister said that the Government were in the business of devolving power. However, the Bill centralises power, in the hands of either a mayor or a leader with a cabinet. I accept that some local authorities may want that system, but others prefer the status quo. If the Government really are in the business of devolving power, those local authorities should have the opportunity to develop a system that reflects the problems and ambitions of their local community.

Ms Armstrong: I think that my hon. Friend has not recognised that many councils are already changing, not because we say so, but because they know that the present system simply cannot meet people's needs. If my hon. Friends will bear with me until I am further into my speech, I will develop those arguments.

We will not force councils down one route. The options available to them are far more extensive than anything for the past 150 years. I remind the House that the current system was introduced when the only people who went into local government belonged to the squirearchy--the people who owned land. [Interruption.] Friends of Conservative Members, obviously. Committee systems were set up for people to come together every now and again to agree matters--not very many--for their area. That is the basic system, and it is the only legal system that can be used today.

Three broad types of executive are set out in the Bill--mayor and cabinet, leader and cabinet, mayor and council manager. There is, however, considerable scope for

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diversity within those options to meet local circumstances. Local councils will, for the first time for more than 150 years, be able to develop different structures that reflect the different local circumstances. The options allow great variation within each framework, even though many have failed to recognise that.


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