Select Committee on Office of the Deputy Prime Minister: Housing, Planning, Local Government and the Regions First Report


3  MANAGING THREE TIERS OF ELECTED GOVERNMENT

35. If elected regional assemblies are established there could be three different tiers of elected government: local, regional and national. Unless each tier has distinct roles and there is coordination between them, there is a danger that policies would be developed and implemented which, instead of complimenting, would either conflict with or duplicate the work of the other levels of government. The result could be unproductive turf wars between the different authorities. Local authorities were particularly concerned that the Government would pass their powers up to the elected regional assemblies rather than pass national powers down to the new assemblies.

Relations with local government

36. There has been a clear and consistent concern expressed by local authorities that a strengthening of regional government poses a challenge, even a threat to local government. In their evidence, they highlighted the potential for turf battles if local and regional authorities each have general powers in social, economic and environmental matters. There is also the perception that an elected regional body is more likely to draw powers up from local government than to devolve powers down from central government. To avoid turf wars and to help with coordinating programmes, witnesses urged that local authorities should have a key role in the Elected Regional Assembly.

37. Local authorities were nervous that the general powers of competence proposed for elected regional assemblies overlapped with the power held by local authorities to promote economic, social and environmental wellbeing. It was argued that having two tiers of government with such broad purposes, could result in a lack of clarity about which bodies were responsible for what and could lead elected regional assemblies to encroach upon the functional responsibilities of local governments. In the Local Government Association's view, for example:

The chairman of the LGA Sir Sandy Bruce-Lockhart said;

    The Local Government Act which was recently introduced had a power which Ministers and the Deputy Prime Minister have placed great emphasis on, in that it introduced a new power for the social, economic and environmental well-being in the responsibility of local authorities and their democratic accountability for that. Those words exactly match the purposes of the regional assemblies and therefore I think there is a duplication.[41]

Councillor Arthur Thomas warned that "there is a risk, that there are not clear distinctions of responsibility between different tiers of government".[42]

38. Professor Travers suggested that the 'reasonably benign' relations between the Greater London Authority and London boroughs was because they had distinctive responsibilities.

    I think the effort was made, as it often is in British legislation, to ensure that as far as possible there was as little overlap between the responsibilities of the London-wide authority and the responsibilities of the lower-tier boroughs. Obviously the less territory there is to squabble over overlaps in responsibilities in some ways the better.[43]

39. Local authorities proposed that the final Bill should include a clearer indication of those activities an Elected Regional Assembly should be prevented from doing. This is consistent with the Government's intention to detail restrictions on Elected Regional Assembly activities to prevent them from providing services that are the statutory responsibility of other agencies whilst at the same time allowing them to work in partnership with such agencies. The Minister, in his oral evidence, was clear that the Government intends 'to introduce additional clauses specifically to define local authority functions which would be off-limits for elected regional assemblies'.[44] We are disappointed that these clauses were not produced in time to be included in the draft Bill, but we are satisfied that this approach would be preferable to any reformulation of the proposed purposes of elected regional assemblies.

40. There are also concerns that the Government would move powers up from local authorities rather than devolve them down to the assemblies which were based on the fact that:

  • Powers held until recently at local level had already been regionalised: particularly in housing, spatial planning and fire services
  • The draft Bill made provision for the Secretary of State to allocate additional functions to elected regional assemblies (section 45). Witnesses considered that this left an open door for further regionalisation of more local functions in the future.

41. Local authority witnesses called for additional safeguards in the bill to prevent future encroachments on local functions by elected regional assemblies:

    The Local Government Association would like to see a clear statement in the bill … that the bill and the regional chambers will not draw up power from local people and local authorities.[45]

When pressed on these points, the Local Government Minister Nick Raynsford recognised local authority concerns and gave clear guarantees that "it is not our intention to take powers away from local government".[46] He explained that safeguards would apply both through processes of consultation, and through the need for parliamentary discussion of any transfers of functions.

42. It is important that legislation setting up regional assemblies should circumscribe their activities to avoid any confusion or overlap with the role of existing local government. Ministerial assurances before the Committee and in other public statements should have been supplemented by a formal statement on the face of the bill of a general presumption that local functions should not be absorbed by the regional level.

43. The Local Government Association suggested that regional assemblies could help ensure more consistent policy directions were received by those delivering services which would require participation by local authorities in the work of the assemblies.

    The Audit Commission has characterised the difficulties facing local authorities as the "humpty dumpty" effect and this has also been recognised by the ODPM in its recent publication "local area agreements: a prospectus". The effect on local authorities is that they must endure fractured messages from central Government down various separate silos to different local partners which then requires local government to put them back together again. The LGA believes that if a region votes "yes" then the elected assembly needs to play a part in ensuring clear and consistent messages are provided to those on the front line.[47]

44. Despite this potential role for elected regional assemblies, the LGA complained that "in this current legislation and in the Government's wider regional agenda there is still not a clarity or direction that allows for optimum joining up of services and strategies at the local level."[48] It explained that "it is still not clear how the regional agenda is going to be operationalised by the Government Offices and various Government agencies" and urged for greater "clarity on the roles and remit of the different governance actors".[49]

45. In particular, local government representatives stressed the importance of local government participation in the work of elected regional assemblies:

    There must be adequate arrangements for bringing in the expertise and innovative capacity of local government. Expertise in delivery inevitably translates into expertise on designing the policies to be implemented … This involvement should extend beyond reactive scrutiny and must include a policy function … a more systematic input from local government [will] help build a mutual relationship of local and regional government which strengthens the region's policy capacity and effectiveness.[50]

Local government representatives also expressed concern that if regional assemblies have a democratic mandate there could be less real partnership working with local government than exists with non-elected assemblies at present. The County Councils' Network, for example, commented that:

    One of the biggest concerns of those in local government who are sceptical about elected regional assemblies is that the current partnership Assembly arrangements have brought significant benefits in joint working at the regional level. There is a perception that the practice of 'partnership' may be neglected once Elected Regional Assembly members have a democratic mandate.[51]

46. Clause 53 of the draft Bill included "local authorities in the region" in the list of assembly participants (i.e. those bodies which elected regional assemblies should seek to engage in their work). Representatives of local government have argued that these provisions are inadequate and that local authorities should be accorded a different role in regional government to that of other stakeholders:

    We … do not regard local government as just another stakeholder; local government provides the services which are required by the strategy set by the region and, therefore, a much clearer link between local government and government in the region is required; it is not just another stakeholder.[52]

Councillor Sir Sandy Bruce-Lockhart of the LGA explained that "because they have the democratic accountability and the service delivery role … there should be a separate section about engagement and working with local authorities [in the draft Bill], not just in the list in [Clause] 53."[53]

47. Tim Byles of Norfolk County Council explained that the Bill "needs to be very much clearer on the way in which local authorities engage directly with the work of elected regional assemblies".[54] He argued that the language of the Bill should show that the relationship between these two levels of elected government should "not be some kind of informal, consultative relationship" but should be "much more interactive".[55] The CCN suggested a number of ways in which the Bill could be amended to address such concerns:

      Any statutory duty on elected regional assemblies to consult with 'stakeholders' has to guarantee meaningful and substantive involvement (no 'box-ticking exercises'!);

      Different regions have different experiences and cultures of partnership working. These must be respected and find their own organisation forms; any statutory guidance must allow different regional solutions; and

      Involvement must bring real influence on decision making and guarantee local government a role in setting priorities and creating structures of governance.[56]

We were told that local government would "want to see direct engagement with the local authorities, working with the local authorities, recording their views and taking their views into account".[57]

48. We were also referred to the positive experience of cooperation and coordination between local government in Wales and the Welsh Assembly. The Local Government Association commented:

    Both local government and elected regional assemblies have much to learn from the devolution that has taken place in the UK. There are positive lessons of local government - Elected Regional Assembly interaction that can be utilised in terms of allowing better access to regional decision-making, allowing local input to regional policy and building effective structures for co-operation. For example, in Wales the establishment of the Welsh Partnership Council and the spirit of co-operation between the Assembly and the WLGA in the formative stages of the Assembly highlights positive devolution and the benefits of central government letting go. The experience in a region that votes 'yes' should be a positive one that represents true devolution and allows for experimentation.[58]

The County Councils Network also told us:

    Wales provides a model in the form of the Partnership Council for local government, combined with 'policy agreements' between assembly and local government. The former meets on a quarterly basis (not just in Cardiff), and is supported by groups of policy specialists from the assembly and local government which conduct a more systematic exchange of views.[59]

49. The elected regional assemblies would offer an opportunity to coordinate services across regions. The assemblies would need to work closely with local authorities to provide services. Any new legislation proposing elected regional assemblies should include a requirement that they have a formal structure for involving local authorities in their work.

Central government

50. The draft Bill proposed to give general powers to elected regional assemblies but it is clear that central government would have continued to play a role in the development of regional policy, even in regions where devolution was proposed. There were concerns that elected regional assemblies should not simply be implementation agencies for central government but should have a role in moulding national priorities. Witnesses also pointed out that not all Government departments seemed committed to devolving responsibilities to elected regional assemblies, which would have limited their functions.

51. The functions of elected regional assemblies would have been subject to directions issued from the centre, in the form of statutory guidance and delegated legislation. In many key areas where power is devolved, central government would have remained the dominant party in the relationship with elected regional assemblies. North East Says No explained:

52. Evidence to the Committee suggested that elected regional assemblies should have a clear role in developing regional policy that can be fed into national programmes rather than acting as implementation agencies for national priorities. In its evidence, the New Local Government Network expressed concern that central government could use its relationship with elected regional assemblies in order more successfully to impose its own will on local government and the regions:

    What we do not want is for elected regional assemblies to simply become the policemen for central government, monitoring and enforcing policies and financial allocations decided by the centre.[61]

Some evidence suggested that the main function of elected regional assemblies should be to convey local and regional concerns to central government. Dan Corry from the New Local Government Network said:

    There is an issue about whether we are ever going to sort out the relationships between central government and local government if we do not have an intermediate tier, which just about every other country in the world has. There is a question about whether the voice of some of our less well off regions are getting heard enough in Whitehall and whether these bodies would play a role.[62]

The Minister also stressed the importance of this role for elected assemblies, which he explained:

    may well have a very powerful voice in advocating key priorities for their region, a voice that is possibly going to be more influential in Westminster, in Brussels and in other areas where decisions are made that will impact on the economy and the life of those regions and that this, as I say, will give a competitive edge to a region with an elected regional assembly.[63]

THE GOVERNMENT OFFICES IN THE REGIONS

53. Although the draft Bill proposed that the Government Offices in the Regions with elected regional assemblies would be scaled down they would continue to play a role.[64] This was explained in Your Region, Your Choice:

    Where an elected assembly is established in a region, there will be a clear transfer of responsibility for a range of policy functions from central government and its agencies to the assembly. This will reduce the size of the Government Office and other government-funded bodies in the region … But the Government Office will continue to have a role, both on policy areas not transferred to the assembly and as the primary means by which central government will work in partnership with the assembly. In London, for example, the Government Office is now a key player in the Governments relationship with the Greater London Authority.[65]

The continued role of the government offices, as a means of maintaining the relationship between elected regional assemblies and Whitehall, was stressed in the oral evidence we received from ODPM officials, who described the offices as "a conduit into government". [66]

54. Mr Machin of the North West Regional Assembly expressed concern about the ability of the government offices to play this role:

    The problem is not with the Government Office and the regions, it is the point at which their schizophrenic role being a support of the region but also the Government's watchdog comes into play.[67]

In its discussion of the transfer of staff from the Government Offices in the Regions to elected regional assemblies ONE North East wrote that "[t]here is a risk that the regional vision will be developed more in response to national priorities rather than by Regional Authority officers following regional priorities".[68]

55. Guidance to elected regional assemblies and the Government Offices in the Regions should emphasise the assemblies' role in overseeing the work of Government Offices in the Regions. Rather than overseeing the assemblies' work and ensuring they pursue national priorities, the Offices should support the assemblies in developing regionally specific policies which could then be fed into national policy.

CROSS DEPARTMENTAL INVOLVEMENT

56. Much of the evidence to the inquiry was concerned that the setting up of elected regional assemblies was not a Government-wide initiative, and that it was being championed by the ODPM without the full support of other Government departments which proposed to devolve few powers to the elected regional assemblies. Evidence to the Committee suggested that the draft Bill was the outcome of a very uneven, ODPM-inspired process of 'horse trading' with other Government Departments rather than a concerted, Government-wide attempt to define, in principle, what elected regional assemblies should do and then secure the necessary powers and resources to enable them to do it.

57. Mr Skellett of the South East County Leaders' Group suggested that:

Similarly, Mr Strachan, representing the Association of Chief Police Officers, in an answer to a question from the Committee Chairman asking whether the Home Office needed to make a clearer and more precise input into the draft Bill told us:

    I would agree with that one….The only thing I would say is that if you were to have representatives here from local health practices dealing with this from a different aspect, they might well say the same about the Department of Health.[70]

Mr Donnelly, of Yes 4 the North East, summarised this strand of opinion and suggested that the current devolution of powers and resources to elected regional assemblies from Whitehall is unlikely to prove stable:

    [T]here is genuinely a reluctance in the culture in Whitehall to see the whole process of devolution take place, and that is because I do not think they are properly engaged in this process. The fact that….you have got the draft Bill, there will be the referendum in the North East and then you will actually have to consider the legislation (assuming that the referendum is a positive vote in the North East), I suspect, will act as a catalyst for some of the government departments to realise that this is actually going to happen and they have got to get involved in the process.[71]

58. The West Midlands Constitutional Convention, in its written evidence, articulated the suspicion that not all Government Departments had 'played ball', most simply arguing that the Bill "probably goes as far as ODPM has been allowed by the conservatism of Whitehall".[72]

59. Any proposals to develop effective elected regional assemblies would require the full involvement of all Government departments that fund or deliver services at a local or regional level. The fact that limited powers and resources that were to be devolved under the draft legislation were mainly to come from the ODPM suggested that the other departments were not signed up to the proposals.

CROSS REGIONAL CO-OPERATION

60. If different regions developed individual strategies and took on functions, it would be important that their priorities and programmes were coordinated. The draft Bill only required regions to work with each other in the context of a few specific matters. For example, when preparing a draft revision to its regional spatial strategy, an assembly would be required to have regard to the strategy for neighbouring regions.[73] By focusing on the role which elected regional government would play in encouraging coordination within a region, these documents play down the importance of coordination and consultation between the regions.

61. A coordinated approach across regions would often be vital to developing and implementing good policy. This is illustrated by the ODPM's Northern Way initiative, which focuses on the three northern regions: Yorkshire and the Humber, the North West and the North East.[74] In the foreword to that report, the Deputy Prime Minister highlighted the importance of a joined-up strategy for the whole of the North, rather than to separate strategies for each of the three Northern regions:

    To support that step change in development, we need a long-term vision that can fully exploit the economic and transport corridors that connect the North - a "Northern Way" which looks east to west as well as north to south. A new northern growth strategy which promotes greater inter-regional collaboration and boosts connectivity and transport links so that the sum of activity and investment is greater than the parts.[75]

62. Transport is one key area in which it would often be inappropriate and ineffective for a single region to develop and implement its own policy without reference to other regions which would be affected. This was highlighted by the Minister in oral evidence to us:

    We have had fairly lengthy discussions with the Department of Transport about the appropriate model to ensure that there is real power and influence in the regions, but within a framework that recognises that many of the transport networks are national and have to be coherent nationally. You cannot have individual regions responsible for sections of the rail network. Clearly you have got to link, if you take the North East region, beyond Berwick into Scotland and south of Darlington into Yorkshire and other regions. That is the balance we are trying to achieve.[76]

Where a policy needs to be developed and implemented beyond the boundary of a single region, the Government seems to have taken the approach that the power to implement those policies must be retained within central government, hence little power with respect to transport would, under the current proposals, be devolved to elected regional assemblies.

63. The successful development and implementation of some policies, for example the maintenance and development of cross-country railway networks, obviously requires coordination across regions. An over-emphasis on the importance of central government in coordinating inter-regional policies and externalities could act as a brake on devolution, as it has in the context of transport. The fact that an issue cannot be addressed adequately by an individual region working in isolation does not necessarily mean that it is most appropriate to resolve the issue within Whitehall. Further thought should be given to ways of addressing inter-regional issues within the context of devolution. It might, for example, be possible to devolve transport responsibilities to the regions on the condition that all regions affected by a major development are required to work together to design, approve and implement the policy. Central government could usefully retain a role in facilitating such an inter-regional approach, but need not necessarily retain overall control.


40   Q 118 Sir Sandy Bruce-Lockhart, LGA Chair Back

41   Q 118 Back

42   Q325 Back

43   Q56 Back

44   Q458 Rt Hon Nick Raynsford MP  Back

45   Q118 (Sir Sandy Bruce-Lockhart) Back

46   Q458 Back

47   Ev 73 Back

48   Ibid. Back

49   Ibid. Back

50   Ev 72 Back

51   Ev 154 Back

52   Q 490 (Mr Skellett) Back

53   Q 121 Back

54   Q 147 Back

55   Ibid. Back

56   Ibid. Back

57   Q 121 (Sir Sandy Bruce-Lockhart) Back

58   Ev 72 Back

59   Ev 154 Back

60   Ev 188 Back

61   Ev 114 (New Local Government Network) Back

62   Q 75 (Mr Corry) Back

63   Q 443 Back

64   Policy Statement, paragraph 92 Back

65   Your Region, Your Choice, page 59 Back

66   Q 159 (Mr Blackie) Back

67   Q 342 Back

68   Ev 175 Back

69   Q486 Back

70   Q240 Back

71   Q509 Back

72   Ev 142 Back

73   Clause 100(2) Back

74   ODPM, Making it happen: the Northern Way, February 2004, Foreword Back

75   Ibid, page 3 Back

76   Q451 (The Minister) Back


 
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