Select Committee on Communities and Local Government Committee Minutes of Evidence


Examination of Witnesses (Questions 20-39)

DEPARTMENT FOR COMMUNITIES AND LOCAL GOVERNMENT

12 JULY 2006

  Q20  Lyn Brown: I am glad to hear you talk about some of the views coming forward, obviously, as a representative of the Muslim community. There are two things I want to say. My own constituents talk to me about their concerns about the representative nature of the groups that were established, not least because we have a very, very large Muslim community in West Ham and East Ham, in the borough that I come from; and there did not appear to be anybody from any of those Muslim communities from Pakistan, India or African Muslim communities represented there at all. It was difficult for them to engage, given that they were such a large community with those working groups because they did not have somebody there that they could go and talk with. We have moved on as well from when those groups were established. We have now had concerns raised with us about the way in which the anti-terrorist legislation is being implemented and the impact that it is having on some of our communities. I wondered whether or not, in your community cohesion work, you will be looking at that area of work and seeing what we can do to take a different step or an additional step forward. Will you be involving local government in that?

  Ruth Kelly: They are very important questions. First, the work we did in the working groups in Preventing Extremism Together was a major step and the start of an ongoing conversation that we have not just with the Muslim community but with other faith groups and people of no faith as well, in how we create cohesion at local level and prevent extremism. There may be extremism in the Muslim community, but there is also concern about the rise of the far right and other forms of extremism which society also has to grapple with. You are right that the concerns presented by the working groups are not the only ones of concern to Muslim communities—and in fact the Muslim community—even the expression is quite difficult—because they are so diverse and vary from some of the poorest groups in the country to some of the wealthiest. We have to be quite careful about how we deal with these issues. You are right that we need to continue that dialogue and work with other departments within government, particularly the Home Office, on some very sensitive issues on policing and so forth; but local government increasingly has a really important role to play in this. That is why bringing these different responsibilities together under this new Department of Communities and Local Government, is a really important step. I think that a lot of what really works in terms of community cohesion is determined by what is delivered by civic leadership at the local level. The new Commission on Integration and Cohesion led by Darra Singh will be finding out practically, in a hands-on way, what is working in communities, where they have best coped with change, and what brings problems as well so that we can learn from what works.

  Q21  Martin Horwood: I was interested in your opening remarks, when you mentioned inclusion. Until very recently, social exclusion was a key remit of the Department, and this is still listed on your website as a key remit. Obviously, there is now an overlapping of responsibility with the Cabinet Office and with the new task force on social exclusion. I am just concerned that in that reshuffle of responsibilities nothing is lost in the wash. Is there any residual part of the old Social Exclusion Unit still in your Department; and, if not, what has happened to the long list of quite interesting reports we were told about in the annual report of ODPM last year, including young adults with troubled lives, service delivery for people who move frequently, excluded older people and so on? Can you assure us that none of that very important work has been lost?

  Ruth Kelly: I think the reorganisation makes an enormous amount of sense. It is right to think specifically about problems of groups facing particular issues of social exclusion, for example children in care, or young women who become pregnant—teenagers, or individual families with an extraordinary degree of associated and complex problems.

  Q22  Martin Horwood: I am sure that is true, but I asked you a specific question.

  Ruth Kelly: I am coming on to that. It is important to give the context. It is right to have that, and a sharp focus on that, together with our role as the department of place thinking about social exclusion and deprivation in places. That is how we have split the responsibilities, with the Cabinet Office and Hilary Armstrong thinking about groups and individuals and how they fare in society, recognising that more than 50% of the socially excluded do not live in deprived areas, with our Department thinking about social exclusion and policy for social exclusion in areas, and area-based policies. I think that that makes sense. That means that we have some of the individuals who were in the Social Exclusion Unit still working in our Department. In fact it has been split 50/50.

  Q23  Martin Horwood: That answers the first question. The second was the list of reports we had in the annual report last year. What has happened to all of those?

  Ruth Kelly: The individual policy recommendations are owned by the Department that has direct policy responsibility. That has always been the case and will continue to be the case.

  Q24  Martin Horwood: So you are confident that none of them have been lost.

  Ruth Kelly: Yes.

  Q25  Alison Seabeck: With the White Paper fairly imminent, will it reflect on the effectiveness of local government scrutiny, and obviously its accountability and moving that agenda forward? Are you confident that you can measure its effectiveness?

  Ruth Kelly: That is a very interesting question. The answer is that scrutiny is hugely important and I think under-developed. I think it could be taken to a new level. The last Local Government Act talked a lot about the role of the executive member and the leadership in local authority areas. I think there is potential for a new re-invigorated role for the ward councillor as advocates in their communities, championing their communities, bringing different parties together, and making sure that services respond to the needs of individuals and the communities themselves. They also should have a stronger role in scrutinising what is happening at local authority level. It may go beyond the level of what is directly delivered by local authorities to what is happening in a particular place. That is something I want to explore in the White Paper.

  Q26  Alison Seabeck: Would you consider drawing people from outside the local authority into that scrutiny process—bringing outside bodies in?

  Ruth Kelly: How you develop the scrutiny role is one of the issues we will think about over the summer in the run-up to the White Paper. There is a huge potential here to improve the way scrutiny is carried out, what sort of services are scrutinised and who does it.

  Q27  Alison Seabeck: The issue of accountability links into the ODPM's agenda of double devolution. What priority has that had, and are you close to understanding how this idea, if you like, will work on the ground in terms of the way communities would understand it? Are you getting closer to getting to understand how you think it might work?

  Ruth Kelly: What I have seen is some incredibly exciting innovations in different parts of the country. Yesterday or the day before I was in Lewisham looking at some situations in which, for example, the community was able to manage or even own assets themselves and run them in a way that met the needs of the community. That is the sort of thing that I think we can make much easier to happen than the case at the moment. There is a huge tier of bureaucracy surrounding that sort of local management of ownership of assets. First, you need to know how well a local service is performing relative to other services in different local authority areas and different parts of the borough. You then need a mechanism that says that if you have a problem it needs to be much easier to fix it than at the moment. Third, it should be possible, where a community has the capacity and the desire to want to manage that particular community asset, for that request to be seriously considered by the local authority.

  Q28  Alison Seabeck: There are all sorts of models out there, and I have some on my own patch, where you can see they are working towards developing this sort of idea, and they are all quite varied and different. But overlying all that is a concern both from the general public as well as local authorities, and I suspect central government, that there are issues around standards, probity where assets and money are concerned. If you are going to devolve sums of money to some of these groups, what discussions do you have in the Standards Board for example about how they would be involved—or would they be involved?

  Ruth Kelly: Again, the local authority would have to be confident in the capacity of the local community to run or own an asset. I think this comes down to how the local authority exercises its commissioning role in general. Of course, it has to have confidence in the way that it does that and the way in which standards are being met. This is something we need to think through in the run-up to the White Paper but beyond that as well, even getting to the point where we have the community's roles seriously considered by the local authority is quite far ahead of where we are at the moment. Trying to cut back some of that bureaucracy is quite important. The detail of how that would work in practice will have to be developed after that.

  Q29  Clive Betts: Can I get an assurance that in devolving powers to the local level and asking local authorities to devolve power to the neighbourhood level, that we are not going to be prescriptive from the centre about how that should be done; in other words we are not going to say, "we will devolve power to the local authority as long as you take advantage of our wonderful offer again to have elected mayors, which you have not taken up in the past, or that you can have powers as long as you devolve to a specific form of neighbourhood government", rather than allowing each local authority to work through its communities and how it wants to do that?

  Ruth Kelly: What really matters to me here is the principle that there is neighbourhood engagement. Quite how that is carried out, I think there is a strong argument for looking at local authorities and allowing innovation in relation to that. We will set out in the White Paper the way forward, that there may be some role for prescription—I am not saying there is no role for prescription. But it will probably be more enabling than a precise form as to how it should happen. I cannot answer all your questions now because that is the policy-making process that will go on in the run-up to the White Paper. You are also interested in whether there is some sort of deal here where we would say to a local authority, "you have to have a certain form of leadership in relation to certain powers". My answer here again is based on principle: I think that the more powers that are devolved to the local authority level, the more important it is that there is strong stable leadership, which is accountable to people. That could be through a mayor but it could be through a number of other forms. Again, we have not prescribed the approach; I have not said that there is a fixed blueprint that I would adopt in that area.

  Q30  Clive Betts: You talked before about other departments being engaged to trust local authorities. Given the importance of local transport for sustainable communities and particularly in terms of public transport trying to deal with the issue of social exclusion, are you having discussions with the Department for Transport about how local authorities could have more powers to influence and determine local bus services?

  Ruth Kelly: Yes, we are having discussions both at official level and also at political level about how to respond to the cases that have been made by local authorities in city regions, which include a vast array of issues, but of course also transport.

  Q31  Dr Pugh: Reading from your speech, the sentence which says, "at the crucial local authority level we need stronger accountability to citizens", I am not sure who "we" is in this case: do you mean stronger accountability to citizens? I think that in your neck of the woods, and certainly in mine, the local authority has to put itself up for election three out of four times—but central government, we ourselves only head up to the electorate once every four years or five years or whatever. Can you anticipate that in a local authority the test that they need stronger accountability to citizens would turn back on you and say, "why do they need it when we here, in this place, do not?" Do we want more elections for local government, fewer elections to local government? What are we talking about here?

  Ruth Kelly: You are not asking me about national government here, are you?

  Q32  Dr Pugh: No. You have made the case saying we need stronger accountability to citizens, and I was aware that in an awful lot of local authority areas, they have elections and they take place more often than not; and that seems a strong form of accountability. Presumably, that is not what you are talking about, and it is a greater form of accountability than we have here.

  Ruth Kelly: There are several forms of accountability of course. What I think is important is that the citizens know who is taking the decisions. It is pretty fundamental. If they know who is taking the decisions, then they can vote for them at an election, praise them if things go well or indeed blame them if things go badly. That is just one issue that I am very concerned about.

  Q33  Dr Pugh: And they do not know locally who is making decisions?

  Ruth Kelly: The other issue I am concerned about is that local leaders of places ought to be able to develop a vision for the future for their place. That means having some sort of mandate which is strong enough for them not only to develop a vision but also—

  Q34  Dr Pugh: Is that not what an election is supposed to do? Is that not what happens at central government—

  Ruth Kelly: There are all forms of elections: direct elections, indirect elections, annual elections, non-annual elections, elections for leaders, elections for ward councillors—they provide different forms of accountability.

  Q35  Lyn Brown: Crudely, if you are going to ask local government to give up stuff to the control of local people rather than under their control—and in London one presumes the additional powers asked for by the elected mayor will take some powers away from London boroughs—I am just wondering if you were thinking of giving them anything juicy, and whether or not that might be in the White Paper?

  Ruth Kelly: I am obviously not going to comment on the GLA Review, which is being announced tomorrow—I am sorry to disappoint you! The principle of devolving more to the borough level and devolving more from government to perhaps the city regional level, is a good one. I think there is scope there for us to think really seriously about where powers should be located and what would be the appropriate level; or whether it should be at neighbourhood level. I want the White Paper to think through those questions.

  Q36  Anne Main: This is very important. When we are talking about people needing to know who is making decisions, it would be disingenuous if we did not accept that there are levers and carrots and sticks and all the other things that trigger decision-making at local level. It might be looking at the local authorities making that decision, but it is put in an invidious position where it has to make a decision. I think we have got to be a bit more open and honest about what pressures are put on local authorities, and not just say they need more say about what they so, if we do not actually give them the wherewithal to do it. Would you agree with that?

  Ruth Kelly: The question is, should we devolve them?

  Anne Main: No, funding. It has got to accompany it.

  Q37  Sir Paul Beresford: It is not just funding; it is funding and freedom. It is no good saying to them, "you have got the opportunity here of going for it; and by the way we need to see your plans and approve them before you do anything": that is what is happening.

  Ruth Kelly: I think we have moved in the direction of giving local authorities more flexibility, but not sufficiently. The advent of the local area agreement process was a big ambition for the Government but has not yet transformed things at the local level. People say that it is quite bureaucratic. There is an opportunity therefore through the new annual rounds of negotiation to make it less bureaucratic, to give local councils more flexibility over their duties and to streamline the management system as well.

  Q38  Anne Main: Ambitious—

  Ruth Kelly: That is what I am talking about. All of these things fit together.

  Q39  Martin Horwood: In the answer you have just given you were skipping deftly from the devolution of power to local government to devolution of power to regional government and back again. I think you are absolutely right; it is critical that people know where decisions are being taken; but is it not a problem that the answer in a lot of cases now is regional government where there is no democratic accountability?

  Ruth Kelly: There is some democratic accountability at local level and another form of accountability which is indirect accountability. Something like 60-70% of the regional assembly members are councillors, so there is a form of democratic accountability. There are appropriate powers at that level, and appropriate powers devolved to others as well.


 
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