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Maria Eagle: Is the hon. Gentleman suggesting that his party's policy is to raise more finance locally instead of the Government handing over money to local government from the centre? Is he suggesting that that should be done through the council tax?
Mr. Foster: The answer to the hon. Lady's question is yes. It is Liberal Democrat policy to rearrange local government finance so that a greater proportion of the money spent locally is raised locally. At the moment, some 80 per cent. of the money spent locally comes from Government funds. That is wrong and we need to reduce the amount of money raised through income tax and increase the amount raised through local taxation. That is a clearly stated party policy--[Interruption.] If the hon. Member for Workington (Mr. Campbell-Savours) is excited by it, I will happily ensure that he receives a copy.
Mr. Dale Campbell-Savours (Workington): For the sake of clarity, will the hon. Gentleman tell the House whether it is Liberal Democrat policy to put a penny on income tax and a penny on local government taxes?
Mr. Foster: I do not wish to delay the House for too long, but the hon. Gentleman confuses two separate issues. The Liberal Democrats believed that the Chancellor was wrong to reduce the level of income tax, because that money would have been better spent on improving public services such as education, health and support for pensions. The hon. Gentleman disagreed with us and voted with the Chancellor. The issue of the funding of local government is separate. Local government funding should be arranged so that more of the money that is spent locally is raised locally. The quid pro quo is a reduction in the amount of money raised through central taxation.
Dr. Whitehead: Is there not a contradiction between the Liberal Democrats' demand that the Government do not cut taxes but increase public spending, which mostly goes through local government, and his idea that local government should be responsible for raising its funds and should not receive grants from the Government?
Mr. Foster: I suspect that we are straying a long way from the Bill, but if the hon. Gentleman wants the full text of our policy, I would be happy to send it to him. We make it easy for the hon. Gentleman because we suggest that money should be collected locally through a form of local income tax, not through the council tax arrangements.
The most important part of the Bill is not part II, which has been the subject of most controversy, but part I, which gives additional powers to local government in respect of the so-called powers of well-being. We have long thought that local government should be given a power of general competence. In other words, local councils would be able
to do all those things that they felt were in the interests of local people, except for some things that were specifically prohibited. In part I, the Government have gone a long way in that direction and we welcome that. However, we are concerned that the Bill will still give the Secretary of State significant ability to limit those arrangements. We are also concerned that the Bill contains no mechanism to allow local councils to raise funds to pay for those activities that they develop within the new power. I hope that we will debate those issues further in Committee.I also hope that the Minister will acknowledge that arising from that power is the ability to produce community strategies and plans, which is also contained in part I. She will be aware that local government has to produce many different plans. In some cases, local authorities have to produce as many as 40 different plans, including economic development plans, civil defence plans, air quality management plans, youth justice plans, community safety plans--the list goes on. We hope that, in Committee, it will be possible to table amendments to ensure that, when a local council develops a community plan under part I, it will be able to integrate within that plan many of the other plans. The Minister is aware that, to achieve that, we would need to change the power to a duty, and I am delighted that she acknowledged that the Government intend to table amendments to that effect.
I hope also that the Minister will be willing to accept amendments that deal with the thorny issue of quangos. As we try to achieve joined-up government at local and regional level, it is vital that we find more effective ways to get local government and the various quangos to work together. That is missing in the current arrangements and is not referred to in the Bill.
Part II has been the most controversial. It is true that many councils need to streamline their decision making. Many councils have already made radical changes without legislation forcing them to do so, but the Government now want to force on all councils one of only three models. We recognise that those three models are more flexible than many people have given them credit for, but--despite the Minister's protestations--any one of the models could lead to the creation of two ranks of councillor. They could also concentrate power in the hands of too few people. All councillors should be able to represent the views of their communities equally, and we do not want to see standard-class councillors and first-class councillors.
Pilots of the models have been carried out, and the evidence in some cases shows disillusionment among the back-bench councillors. It is therefore important to recognise the pressure for a fourth option or a locally determined option. With good will on both sides, it would be possible to develop such an option in Committee, based on Baroness Hamwee's amendment in the other place. That amendment sought to provide a locally determined option that is nevertheless based on several key principles, including the vital importance of scrutiny, accountability, openness, transparency and efficiency. I hope that we will have the opportunity to develop that issue in Committee.
Mr. Simon Thomas: Does the hon. Gentleman agree that, in Wales, we have the ideal method of developing local options, because the National Assembly could develop a set of options that took into account the unique circumstances of Welsh local government?
Mr. Foster: I agree entirely, and several amendments will be needed in respect of the arrangements for Wales.
The hon. Member for Stoke-on-Trent, Central rightly raised another concern about the executive models in part II. Liberal Democrats and others have worked hard in local authorities throughout the country to move them out of the dark ages. We have fought for meetings to be held in public, for the public's right to speak or to present petitions and for papers to be available to all councillors and the public in advance of meetings. The Bill's provision to allow executives the option--I accept that some will choose not to take advantage of it--to meet in secret would take us back to those dark ages and is a recipe for concealment and corruption.Open access to all papers in advance of meetings is crucial. How will other councillors, the public and partner organisations know that they need to lobby executive members if they do not know in advance what will be discussed and when? Publishing decisions after the event is not adequate.
Parts III, IV and V are much less controversial than parts I and II. We would like to see changes to those parts and we shall introduce amendments in Committee. Part V involves the vital issue of section 28. I wish to make it absolutely clear on behalf of my right hon. and hon. Friends that we are opposed to the section. We welcome the new guidance that is being proposed by the Secretary of State for Education and Employment, but we believe that section 28 must be repealed. We shall give our support to any measures that the Government feel should be taken to ensure that that is done.
Much in the Bill needs to be amended to give real powers, including fund-raising powers, to local government. Local government should be given real choices and be subject to less prescription to ensure that there is no return to the dark ages of decisions being taken in secret. We must ensure that the work of all councillors is equally valued. Above all, we must set local councils free so that they can truly serve and meet the needs of local people. As I have said, it is with some difficulty, but in the hope that, with amendments, the Bill can move us in that direction, that we shall support Second Reading.
Mr. Deputy Speaker: Order. I remind the House that there is a 15-minute limit on Back-Bench Members' speeches.
6.11 pm
Ms Julie Morgan (Cardiff, North): I am grateful for the opportunity to speak in this important debate. I think that we all recognise the huge contribution that local authorities have made to the community, and the proud tradition of many authorities. In recognising the need for change and revitalisation, it is important also to recognise the tremendous good work that the authorities have done in their present form.
The Cardiff local authority started street lighting services. At one time, it had its own electricity company. It introduced a trolley service and bus services. All those vital services are an important part of our lives. Local authorities have provided community leadership, and I welcome the extended powers in the Bill that will enable them to continue to do so.
As my right hon. Friend Minister for Local Government and the Regions said when opening the debate, the Bill applies to England and Wales. There are separate clauses for Wales that specify that the National Assembly for Wales has the powers of the Secretary of State in England.
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