Local Government and Public Involvement in Health Bill


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Clause 40

Discharge of functions
Question proposed, That the clause stand part of the Bill.
Alistair Burt: I have a couple of general questions. I am not sure what is behind the substitution of the title “senior executive member” for “elected mayor” in the clause, and I would be grateful if the Minister could let us know.
Mr. Woolas: I thank the hon. Gentleman for his question. To which provisions is he referring specifically?
Alistair Burt: Throughout the clause, the term “elected mayor” is taken out and “senior executive member” is substituted. I wondered what the rationale for doing that was. It is a genuine question—I simply do not know.
Mr. Woolas: Perhaps if I explain the purpose of the clause, that will answer the question.
Sections 14 to 16 of the 2000 Act deal with how functions are discharged by the executive of a local authority. Specifically, they provide that functions that are the responsibility of an executive may be discharged by members of the executive, committees of the executive, or officers of the council. Currently, where there is a mayor and cabinet executive, the mayor can either discharge a particular function or arrange for that function to be discharged by the executive, an individual member of the executive, a committee of the executive, or an officer of the authority. By contrast, where there is a leader and cabinet executive, it is the authority as a whole that makes those decisions unless, of course, it leaves those decisions to the leader.
That means that, in future, all council leaders in England will have the same powers as mayors currently have to decide how executive functions are discharged. The arrangements in Wales, subject to the caveats that I referred to earlier, will remain unaltered. Therefore clause 40 strengthens the role of the leader and will help to deliver the conditions for the strong and accountable leadership that we have been discussing.
The provisions in the clause apply to all three models, so it is helpful to have a single term that refers to all three models, because the Bill, if Parliament allows it, will place the executive power in the leader’s office, whether that be a mayor, a directly elected leader of a directly elected executive, or an indirectly elected leader. It is simply common sense to have a single term.
Question put and agreed to.
Clause 40 ordered to stand part of the Bill.

Clause 41

Changing governance arrangements
Andrew Stunell: I beg to move amendment No. 33, in clause 41, page 24, line 16, leave out ‘move to executive arrangements’.
The Chairman: With this, it will be convenient to discuss the following amendments: No. 34, in clause 41, page 24, leave out lines 19 to 31 and insert—
‘(2) Notwithstanding the provisions of sections 33A and 33B, any principal council may submit a scheme of internal governance appropriate to its circumstances which shall stand deferred until the next election to the council.
(3) Where no recognised group has overall control, it shall be competent for the council to implement other arrangements as it may determine.’.
No. 100, in clause 41, page 24, line 26, leave out from ‘is’ to end of line 28 and insert
‘eligible for alternative arrangements if it is a district council or a metropolitan borough.’.
No. 99, in clause 41, page 24, line 28, leave out ‘85,000’ and insert ‘850,000’.
No. 101, in clause 41, page 24, leave out lines 29 to 31.
No. 35, in clause 41, page 24, leave out lines 36 to 38.
No. 36, in clause 41, page 24, line 41, leave out from ‘arrangements’ to end of line 1 on page 25.
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Andrew Stunell: I remind the Minister that he has now admonished the hon. Member for North-East Bedfordshire, the hon. Member for Ludlow and me, asking us to come out of our centralist mindset. I am not sure whether he has suggested that other Members should do the same. I am giving the Minister a chance to walk the walk, as well as talk the talk about coming out of his centralist mindset.
I shall start my remarks by saying that clause 41 is six and a half pages long. Whatever else, there should be a law against that. Consequently, the Committee should carefully consider the amendments to see precisely what I intend to achieve. I shall simplify matters by explaining that amendments Nos. 33 and 34 would give local authorities freedom to determine their own system of governance; amendments Nos. 99 and 101 would give authorities the option of having the committee system in certain circumstances; and amendment No. 100 would extend the eligibility of special arrangements to district and metropolitan boroughs without regard to their size.
The Government propose that small authorities should be able to retain what is commonly called the committee system, although most people understand that the system of 25 years ago is not what we are talking about. We are debating an enhanced committee system. My amendments would open up the options for local government of all sizes and classes, first, to decide their own system of governance entirely; secondly, to decide their system of governance and to have the committee system, if they are district councils or metropolitan boroughs regardless of size; and, thirdly, to be able to adopt the committee system if their population exceeds, not 85,000, but 850,000. Both numbers are arbitrary, but my intention is to show the direction in which I believe the Minister should be encouraged to go.
Let me deploy the arguments in favour of self-government. As I said on Second Reading, we conceded it long ago to Australia, Canada and colonies throughout the world, and it seems to work. They get on with it, so the Minister should have a little more trust in local government and its capacity to deliver and show leadership. It became clear on Second Reading that many of his colleagues share that view and feel that he is being too prescriptive, in particular by not allowing the possibility of the enhanced committee system to be an option for consideration by authorities unless they are in the smallest category. He is denying local democracy an opportunity.
There is plenty of anecdotal evidence of the dissatisfaction in local government about the executive arrangements. I tried to follow the 69 per cent., the 74 per cent. and the 89 per cent. figures that the Minister rattled off when referring to various studies. I do not know what the sample groups were when those were undertaken, but I have yet to find outside the membership of the executives themselves councillors who would agree with that analysis. Most of them consider that they have been excluded to some degree by the new arrangements. Many councils believe that they should have the option of the committee structure, one that is much more inclusive and inclined to consensus building than the executive model and much less remote from the communities that they serve.
I am not an unadulterated supporter of the committee system. I am far from saying to the Minister that every local authority should have it. I am certainly not arguing that we should go back 20 years and start all over again. However, if what he says about opening up local government and giving it more choices and options really means anything, he has a simple, practical way of doing that, which is by extending a system of governance that is tried and tested—and certainly not failing—into other council areas.
I want to make the pure gospel point that governance should be entirely a matter for local councils, but I listened carefully to what the Minister said on Second Reading and to what has been said in Committee and I know that his Department has struck a deal with other Government Departments about devolving functions and decision making to local government. To some extent, that deal is dependent on the Department for Communities and Local Government being able to show other Departments that the bodies to which it will be transferring powers and decision making have the substance and the effectiveness to carry out those functions. Therefore, a deal has been struck, and perhaps the governance issue is one of the prices that local government is expected to pay to achieve that.
I think that the whole Committee would benefit from a clear exposition by the Minister of exactly why neither he nor his Department is prepared to give any flexibility for the enhanced committee system. The amendments explore different options and different ways of achieving essentially the same thing, which is to widen the choices available to local government. They are not looking to bring in a system that is untried, untested and clearly dysfunctional, but to bring in something that is tried, tested and that demonstrably produces leadership results now in small authorities and which historically has done the same for more than 100 years in the largest authorities in the land. I am very happy to speak to the amendments and to listen to what the Minister has to say.
Alistair Burt: I am pleased to support the tenor of the amendments and to thank the hon. Gentleman for introducing them. Although we might be covering some old ground, I hope that they will encourage Committee members to reaffirm their commitment to the importance of choice in local government and to express again their concerns that a key manifestation of that choice in the present context would be to allow councils that so wished to propose and maintain an enhanced committee system.
The witnesses whom we heard expressed no doubt that that option would be broadly welcomed. Let me give some examples from their evidence. We had a debate that involved the three representatives of the Local Government Association. Jeremy Beecham was not keen to go back, so that is one vote against an enhanced committee system. When asked about his position on the options, Richard Kemp, the Liberal Democrat representative, said that
“it would be an option that I would support. I do not think that anyone wants to go back to the old committee system”—
the point made by the hon. Member for Hazel Grove—
“I do not think that anyone pines for that system, but an enhanced committee system, based on the experience that we have now, would be possible.”
So, that is one each. However, Simon Milton, representing the Conservatives on the LGA, said:
“I regretted the fact that councils were not given the option to have a committee system under the original Local Government Act. To be consistent, I would welcome that option, although I am not sure whether my council would go back to that system.”——[Official Report, Local Government and Public Involvement in Health Public Bill Committee, 30 January 2007; c. 20.]
That is two votes in favour of choice.
I will return to a familiar theme that the Minister must now hear echoing in his dreams. I do not know whether he caught that wonderful programme “Sleep Clinic” on the television last night that looked at the extraordinary contortions that people go through when their sleep is disturbed, what they hear and what they do not hear. I hope that the hon. Gentleman is hearing in his dreams, “choice, choice,” and at some stage tonight that he will share again that champagne moment that he gave to the Committee earlier when, as members of the Committee will recall, he spread open his arms and said, “I am a devolutionist, let them have the choice.” He said that in relation to a different part of the Bill, but, as the hon. Member for Hazel Grove said, all we are asking is that the Minister finds again in his soul that moment. He made that comment in relation to offering the choice of a committee system. He was not talking about forcing it upon anyone, not demanding that anyone has to have it, but simply giving people at local level their opportunity to choose a committee system for themselves.
Another voice from one of our witnesses was that of Gordon Keymer. The very name strikes a chord in all our hearts. Asked about the committee system and the problem of involvement, he said:
“What is happening too much at the moment in the executive system is that council meetings are dominated by two or three people and the rest are spectators. The figures speak for themselves—note the turnover of people who stay for only one term and leave because they are frustrated. The trouble is that we are trying to produce a whole lot of mechanisms to keep them happy by extending scrutiny and so on. If you look at it quite cold-bloodedly, all those things could be covered by active membership in the committee system. It is a great shame. People are not easily fooled.”
He said that when he goes down to watch his local council committees at work of an evening he thinks,
“Here are people who, from the very beginning, can involve themselves in local government, learn to speak and debate with officers and graduate to the council chamber and the full council meeting.”——[Official Report, Local Government and Public Involvement in Health Public Bill Committee, 30 January 2007; c. 41.]
That is what Gordon Keymer used to see on the committees on his council that he oversaw. That opportunity to learn and grow is not there now.
Tom Levitt (High Peak) (Lab): I get the impression that the hon. Gentleman is talking about the difference made by a well run council that engages councillors, be they there principally to make decisions or to scrutinise. That is the real difference that he is describing. Is there not a great danger of assuming that scrutiny is a lesser role and therefore less satisfying when, in fact, scrutiny is an important role when it is done and managed well?
Alistair Burt: The hon. Gentleman makes a fair point, but a slightly distracting one. I am not seeking to prioritise the business pursued by committees over the functions of scrutiny and overview. The point is that local authorities should be allowed to make a choice about the structure that they believe is right for them, so that well run councils can make a judgment about the allocation of functions and their efficacy. The question asked by the amendments, following the points raised by hon. Members on both sides of the House on Second Reading and by the witnesses who came before us prior to the formal Committee stage of the Bill, is: why not give people the choice? That is all. A committee system may not be right for all councils. For example, it may not suit councils that have moved on to a different system and do not want to go back.
The overwhelming impression I had was that while it suits the leadership of a council to have a tightly controlled system, and a leadership will naturally support and understand an executive system that concentrates power, those who see the other purpose of a council as involving councillors so that they have more of a role than that of back-bench councillor—a role that people warmly welcome, but which keeps them out of the loop in the system—want the chance to do something more. I am sure that grass-roots resentment does not necessarily surface in those councils in which the executive and cabinet system works well, and which have mechanisms to get people involved, but to deny that there is resentment would be to shut one’s eyes to what is going on in local authorities.
I come back to the point made so well by Gordon Keymer about the frustration of people who come on to councils and feel trammelled in what they can do. We have enough evidence from over the years of people who have gone on to councils and then complained that they get told what to do by central Government too much and that they are frustrated by it. They then go into a system in which they cannot even express themselves through committees, and they feel constrained. No wonder people are walking out the door.
There is a simple mechanism that we can use. It is not to force councils to go down a particular route, nor to demand that there is a particular structure of local governance that they should all follow; it is to add another element to the mix for effective government. If the Minister is going to argue that he cannot in any circumstances foresee that a committee structure could provide effective leadership in the manner of the models already presented, I have to say that I doubt that such an argument will be supported by the broad mass of people who have been involved with local government over the past few decades.
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Earlier, the Minister made the point that the issue is about quality of leadership and individual powers of persuasion in many cases, but the right people, the right structure and the right officers can make a local authority work. I do not see any reason why the Bill should not contain the option for authorities to have the opportunity to run the committee system if that is what they want to do.
The matter that we are debating is one of the strongest arguments against the Minister’s belief that he is a devolutionary Minister of a non-centralising Government who are prepared to take a risk in local government. If the Minister is true to the moment that he gave us with such splendour before lunchtime, this is the opportunity for him to relive that moment, to confess himself to be a true devolutionist and to say in a heartfelt manner, “Let them choose.” I am therefore delighted to support the amendments, and I hope that we can hear something from the Minister and indeed from his Back-Bench colleagues that will echo the sentiment of setting our local councils free.
Mr. Burrowes: I rise to support my hon. Friend and the hon. Member for Hazel Grove. I have the benefit of 12 years’ experience as a local councillor, first as an opposition councillor under the old committee system in Enfield, then in control as a cabinet member. Having been on two sides of the fence, I can give my view, both as a new councillor who was one of the youngest councillors elected in a committee structure and as a cabinet member.
The benefit of the committee format was that, at the very least, one knew where to go for information. The Minister has put forward in favour of an executive type arrangement the benefit of strong leadership. As a cabinet member, I certainly saw that, but there was a concern about those who were left behind. There was a feeling among other councillors who were newly elected under the cabinet model, which Enfield council adopted at an early stage, that they were left behind. Many well qualified councillors felt that they were not able to access information and were not party to decision making. They had to play catch-up to find out where the decision had been made and then subject it to scrutiny. New councillors do not feel sufficiently part of the scrutiny arrangements that form part of cabinet-style government. Councillors in Enfield often felt disfranchised and inadequately served by the scrutiny process. For all its imperfections, I say that the committee system suits every model of governance. It was certainly of value in Enfield, because people knew where to receive information.
When the Minister talked about sample groups that support the new executive arrangements, he did not mention the public. One should not forget that turnouts for local government elections have not dramatically increased across the board, despite some steps having been taken to improve leadership. There is still a major issue concerning community engagement, both of the public and of individual councillors on their behalf. When one talks about leadership, it is not only about executive leadership; it is about community leadership.
I understand that part of the intention of the 2000 changes was that community leadership should be upheld also by local councillors, as community advocates, who are not necessarily part of the executive. Without the option of a community system, they have felt increasingly disengaged. Without such a system, when the public are looking for information and seeking to find out about debates before decisions have been made, they are left to encourage councillors to call in a decision or to be part of a scrutiny process, which often feels inadequate. An option for a local authority to have a local community system should be provided.
One looks in desperation for consistency in the Bill. If the Minister is consistent, when he says there needs to be a stronger local voice for councils serving a population of more than 85,000 I presume he also thinks there should be a stronger local voice for populations of fewer than 85,000. What is the logic of not allowing a committee system for populations of fewer than 85,000? Why does it come down to the size of the population? Surely that stronger local voice should be there for them. If the logic of the Minister’s argument is that the option of a committee system should be taken away from those smaller population communities, it does not make sense.
Certainly the committee option available to populations of under 85,000 should also be there for those over 85,000. The option should be there for the sake of not just executive leadership but community leadership. It is important for individual councils to feel properly empowered and engaged in the process. If that means an option of a committee, so be it. Let the Minister take off the shackles of the centralising tendencies he sees in us and ensure that there is true choice for local communities. I support the amendment.
Sir Peter Soulsby (Leicester, South) (Lab): It was clear from the way that my hon. Friend the Minister spoke about the Government’s intentions in bringing forward this range of governance options that they are rightly concerned that local authorities should be capable of strong leadership. That strong leadership should be stable and visible. Those were the words that the Minister used to describe the sort of leadership we would want to see. He also spoke convincingly about the need for local authorities to provide, as many already do, strong leadership not just within their organisations but in the wider communities that they represent.
I am convinced that all hon. Members share the desire that local authorities should provide that leadership both internally and externally. I am also sure that no hon. Member would wish to see a return to the committee structure that many of us used to know, with all its frustrations and its inability to provide the sort of leadership that we would all wish for in local government, or, in many cases, to provide the accountability which we would also wish to see strengthened. It was often difficult to tell who was responsible for taking decisions within the committee structure, with each committee often able to blame another for the byways and alleyways that decision making was going down.
Dr. John Pugh (Southport) (LD): The hon. Gentleman might be exaggerating a little. I can recall things called policy and resources committees that used to make all the hard decisions that other councillors feared to make. It was very similar to the modern cabinet.
Sir Peter Soulsby: I do indeed recall the strengths of that system as well as its weaknesses. I am convinced that those strengths can be used to produce a reformed committee structure and a system that would enable the leadership and accountability that we have all said we would wish local government to deliver. The two great advantages of the committee system were that it enabled a wide range of members to become engaged in the decision-making process in a useful way and, equally importantly, that it enabled opposition members to sit around the table to debate and to vote on matters on which decisions were being taken.
One of the great frustrations of the present structure for councillors, whether in opposition or part of a controlling group, is that they cannot directly participate in the decision-making process. They cannot speak and vote at cabinet meetings in many situations. Obviously the political make-up of many councils occasionally enables them to take part, but in many it does not.
5.24 pm
Sitting suspended for a Division in the House.
5.39 pm
On resuming
Sir Peter Soulsby: I stress again that I am not arguing for a return to the committee structure as it was 20 or 30 years ago, but for the committee structure, much modified and modernised, to be included in the range of options open to local government. We do not need to think very hard to come up with some excellent examples of powerful leadership in councils with a committee structure and we do not need to think too hard about examples of effective community leadership being provided by councils with a committee structure. That leadership can be provided externally as well as internally.
The committee structure, much modified and much modernised, is not a panacea, but it ought at least to be an option. I also argue that the governance options that have been put forward by the Minister and the Government in the Bill are not a panacea either. They, too, are capable of being expanded to increase the range of opportunities open to local councils.
There is no doubt at all that it is vital for councils to be able to provide leadership to their local communities and for there to be strong and effective leadership within local authorities. There is no doubt at all that it is vital that whatever governance structure is adopted, it is accountable both internally and externally to the wider community and that the major issue of how the majority of members are engaged in the council’s process needs to be addressed.
Dr. Pugh: The hon. Gentleman is making me quite nostalgic for the committee system. One of its advantages for scrutiny and accountability was that officers’ recommendations, which often turn out to be what the council actually does, were subject to extensive examination from back-bench and opposition councillors, which simply does not happen today. I find that there are few pleas from officers to go back to the committee system, and there could be a good reason for that.
Sir Peter Soulsby: I certainly believe that when opposition members, if there is overall control, or coalition members if there is not, sit round a table in public discussing recommendations put in front of them by officers and are required to debate them and answer questions about their attitude towards them and the reasoning behind their position, that provides a degree of clarity and accountability that is not always provided in the current system. In at least some authorities, cabinet meetings are little more than a staged ritual in front of the present public, with decisions in fact being taken elsewhere.
Patrick Hall: When I was on Bedfordshire county council there were many advantages to the committee system. However, one of the disadvantages was the amount of time that it sometimes took for a decision to be taken because of the interminable sub-committees and perhaps sub-sub-committees—I cannot remember how many there were. I invite my hon. Friend to elaborate a little on what some call an enhanced committee system or, as I believe he called it, a modernised committee system. We need to know more about that because I do not believe that any suggestion of returning to the old system is credible.
Sir Peter Soulsby: I thank my hon. Friend for that intervention, which gives me an opportunity to re-emphasise that I am not seeking a return to the system as we used to know it. I envisage a system with a much reduced number of committees and an enhanced central committee, be it called a policy and resources committee or a policy committee, that is clearly in control of the overall direction of the authority, with perhaps a limited number of sub-committees reporting to it. Such an arrangement would enable a local authority to have both the leadership role whose importance we have stressed and the accountability that is made possible by members debating across a table the direction of the authority’s policy.
To conclude, I am arguing that there should be a wider range of choices than is included in the Bill. I do not support the amendments, because there are a number of arbitrary elements to them, as the hon. Member for Hazel Grove acknowledged, which make them unsatisfactory. I hope that the Government will recognise that it would benefit good local government if there were a wider range of choices of governance than is currently offered. I hope that the Minister will agree to reconsider the proposals and recognise that the range to be offered is too limited and prescriptiveto local government. We have an opportunity to allow local government greater freedom in how it responds to local circumstances, to the local political environment and to local communities.
5.45 pm
Robert Neill: I want to pick up where the hon. Member for Leicester, South left off. I agree with him and I commend much of what he said to Ministers. His experience as a former leader of a large local authority should weigh heavily with them, especially given the Minister’s comment when he intervened on an observation by my hon. Friend the Member for North-East Bedfordshire who said in the context of the Gordon Keymer scenario that the key test is contrasting a well run authority, whatever its structure, with a badly run authority. As my hon. Friend the Member for Enfield, Southgate said, we should not work on the assumption that the committee system can work only in small authorities. There is no reason why it should not be applied in large local authorities in its enhanced form.
The point was made about clear political leadership and we all sign up to that. There was never a larger local authority in English history than, first, the London county council and then the Greater London council, nor were there local authorities with a stronger tradition of clear political leadership and direction. Herbert Morrison was as strong a local government leader as one could find operating under the old committee system, so were Ike Hayward, Desmond Plummer, Horace Cutler and—dare I say it— Ken Livingstone.
My experience chimes with that of my hon. Friends and others. If we want to keep good quality people in local government, they have to think that there is a worthwhile role for them. I do not denigrate scrutiny and I take the point, but if people believe that the only time that they will be able to take a decision and make a difference in a substantial and meaningful way is by waiting to become a member of the executive, it will put a lot of very good people off—hence the turnover, which is a real concern.
Some local authorities try to get around the problem because they want to be involved in scrutiny but a good council wants to be involved in policy development too. In Bromley, we call our scrutiny committees policy development scrutiny committees, which is an attempt to get members involved at an earlier stage. We could do that in the context of the leader and cabinet system and of the enhanced committee system too.
As I said, I spent 16 years as a member of a London borough council and for eight of those years I was chairman of one of the large service committees—first the environment committee and then the social services committee. It was under the old structure, but we gave a pretty clear political steer. We had a leader, who chaired the policy and resources committee; the chairmen of the five or six service committees were on the policy and resources committee and the opposition were also represented on it.
We had a system of delegation that enabled urgent decisions to be taken and we should look again at the legal problems that sometimes get in the way in that respect. We made sure that members—usually the chairman or the vice-chairman of the committee—were involved if urgent action had to be taken,. We also had a system whereby the leader and the service committee chairmen could meet senior officers and give them a steer, or direction.
The point is well made that, in the policy resources committee, not only could the opposition debate the issue and question the officers on their recommendations, but the officers had to account for them. That worked in a very large local authority—London boroughs were almost the same size as the city of Leicester, for example—and it worked on a bigger scale for the London county council and the Greater London council, so I do not understand why we are closing that option off.
I say to the Minister that there is a contrast between the Government’s approach to this clause and to the previous one. If we accept that the option can work for small local authorities, why close it off arbitrarily for larger local authorities? Would not the decentralising, localist option be to leave it open for all classes of local authority and, as the Minister said earlier, let them decide?
Andrew Gwynne (Denton and Reddish) (Lab): I rise to offer my comments on this part of the Bill, on which we have had an interesting debate.
Only the first two of my 11 years as a local councillor—between 1996 and 1998—were spent under the old committee system. So my experience of the old system is very limited. I grew up politically with the new cabinet system and its birth pains when first introduced. However, I must say from my two years’ experience that I think that we tend to hark back to a golden age that never existed. That was not my recollection of how the committee system worked. Members certainly felt more involved; that is correct. They had all the reports and tended to discuss issues with other members on different committees in the members’ room or at other meetings. Therefore, they had a general overview of what was happening in the council that perhaps they do not have now.
In my experience on the committee, however, decisions were made at the chairs’ briefing, which were bounced through the group meeting, sometimes with a row behind closed doors. Nevertheless they were bounced through and were rubber-stamped at the committee meeting open to the public and opposition often under the hard stare of the whips if there had been a row in the group meeting. I am all too familiar with hard stares from Whips, because I have been told to be brief. However, that was my experience of the old committee system.
The new system was undoubtedly a culture shock for those who had lived with the old one for a number of years. They had become familiar with it. It was very comfortable. The new one has taken time to bed down and in some authorities it is still not there. But where it is working, scrutiny and support for members not in the cabinet is certainly in place and working well. I take the point of the hon. Member for Bromley and Chislehurst about pre-decision scrutiny. When I was a scrutiny chair in Tameside, we took the decision to lead the way on scrutiny in our borough. Afterwards, it was perceived to be a success and the executive asked us to do more of it. So where it works, it works well. However, I accept that it has taken time to bed down.
I shall turn to the information, which is there. Any councillor can ask for the background information to a cabinet decision in advance of it being taken. Information on the officers, who to contact and so on is all there in the forward plan. Certainly in Tameside—although it might be different in other authorities—the forward plan is debated at full council so there is the opportunity for all members, including back-bench members in the controlling group and all opposition members, to debate issues before the cabinet makes a decision.
Finally, I shall turn to amendment No. 99 tabled by the Liberal Democrats. I accept that the hon. Member for Hazel Grove said that the upper limit of 850,000 was arbitrary, but if it is right that some metropolitan district councils, which are currently prevented from having a streamlined committee system, should adopt one, it should be available to all of them. It should not be discriminatory. Of course, setting the target at 850,000 would mean that 35 out of the 36 metropolitan district councils in England could opt for the committee system—poor Birmingham would be left out. So if someone is going to argue that it is right for metropolitan councils to have that facility, it should be for all of them, and not all except Birmingham.
Mr. Dunne: I, too, do not wish to detain the Committee, but to make one point. I rise in support of the amendment in the name of the hon. Member for Hazel Grove. The point that has just been made is a telling one, however, and I hope that he will comment on it before he presses the amendment, if he chooses to do so.
We are looking at rearranging certain local government structures on a unitary basis, which means that a very many councillors will be participating in a new structure for the first time. In my view, it is likely that a number of councillors will not have participated nor had previous experience of either structure. I am delighted to have the opportunity to mention the possible restructuring in Shropshire where, as I told the Minister last night, we are possibly looking at a council of 96 councillors. One has to ask oneself what all those people are going to do in a council of that size that does not have any committee structure other than for overview and scrutiny. How are they going to get engaged and participate in decision making?
The points that have been made by other hon. Members are valid, so I shall not rehearse them—councillors will have a lack of opportunity to develop and grow and to participate in debate. So it is entirely appropriate to have a committee structure option on a hybrid basis.
Mr. Woolas: The debate is important, and it is being echoed in council chambers, in members’ rooms and in the wider local government family, so it is important that the Government present the arguments clearly. I hope to persuade the Committee that the ideas on which the amendment is based are ill-founded and would not achieve what the mover of the amendment intended.
I hope that I have already explained in our debates on previous clauses the Government’s intention and thinking in relation to the executive arrangements that we have proposed. However, let me repeat one point for emphasis. If one is truly ambitious for local government, one believes that local government can take up a strategic leadership role and a delivery role across the range of services, across the portfolio of economic regeneration of an area, across crime and disorder partnerships, across the children and young people’s agenda and the health and elderly people’s agenda. However, even medium-sized local authorities are being asked to give strategic direction over hundreds and hundreds of millions of pounds of public money, so the limit on the Government’s willingness to devolve power is that we can do so only when we are convinced that decision-making arrangements are in place by which responsibility for such matters can be taken. If people wish to portray that as an anti-devolutionary or centralist policy, I will have to live with that, but we are debating the subject of the barriers to devolution. The hon. Member for Hazel Grove takes an entirely consistent position—that councils should decide, but I want to persuade him that that is not in their interests.
On Second Reading, the hon. Member for Brentwood and Ongar (Mr. Pickles) said that if one is serious about devolution, one has to talk about money, because power flows from it. It is precisely because we are serious about devolving power over public money that one has to have confidence in the executive arrangements.
I have referred often to the 2000 Act, which we are building on by way of the Bill. That Act provided the types of executive arrangements, and separated the role of back-bench councillor from the executive councillors. As we are doing now, the Government took a devolutionary and pragmatic approach in 2000. That is the answer to the points made by the hon. Member for Enfield, Southgate, who asked why there should be smaller councils. Ultimately, the figure of 85,000 for population—it is population that counts, not the electorate—is an arbitrary one. The cut-off date was 30 June 1999. If an area had a population of fewer than 85,000, it could adopt what were referred to as alternative arrangements, also known as the committee structure. In the event, of the 86 eligible authorities, 59 adopted the alternative approach. Since then, three authorities—Cotswold, Fylde and Rossendale—have moved from alternative arrangements to executive arrangements, and have adopted a leader and a cabinet. I have looked in vain for a common thread between them but I could not find one.
6 pm
The 2000 Act also provided for alternative arrangements as a fall-back position in case of a no vote in a mayoral referendum. That is the situation in Brighton and Hove, and I know that it will listen closely to this debate. But—and this is where we come to the core of the argument—the amendments would not allow the enhanced committee function to which my hon. Friend the Member for Leicester, South referred. Indeed, under the existing arrangements, it is possible for an executive to devolve executive powers to sub-areas. That is an important part of the devolutionary approach and of involving people and bringing them closer to their local authorities. An executive can already devolve executive powers by area.
In other authorities—the hon. Member for Bromley and Chislehurst mentioned his own—the role of overview and scrutiny involves policy development and what are commonly called task and finish groups, through which recommendations can be made not just about traditional areas of council activity but about the wider activity of the area, the local authority and its partners. That is the nub of it.
I shall comment on the rose-tinted glasses that my younger colleague the hon. Member for Denton and Reddish mentioned, but the old internal decision-making committee structure, whatever its strengths and weaknesses, was a decision-making structure for the council as an institution and not for the area as a whole. It would not be able to take responsibility for the strategic direction of health, crime and disorder and children and young people, never mind social care or other responsibilities. One should see decision-making executive structures in the context of the wider, enhanced role that we are increasingly inviting local authorities to take. I think that that answers the point, because smaller areas do not take on the responsibilities.
A number of other points were made, which I shall try to answer. The hon. Member for Ludlow asked what the other councillors should do, as those who are not on the executive can feel excluded from decision making. It is precisely because councillors across the political spectrum too often spend more time in committees in the town, city or county hall—or, to be fair, in districts—and not as champions of their wards that we are in a situation in which too many councils have become distant.
The new functions that I have mentioned of overview and scrutiny and of policy development and reports across the whole range of services provide a fantastic opportunity for local authority back-benchers to be involved in decision making. Indeed, if one attends the overview and scrutiny committee, which is now a major annual event in the calendar of local government, there is excitement and a buzz about the potential role of overview and scrutiny.
I endorse strongly the point that my hon. Friend the Member for Denton and Reddish made. Inadvertently, the hon. Member for Bromley and Chislehurst backed up his point when he mentioned a policy and resource committee made up of the deputy leader and chairs of the committees. What is that if not an executive by another name?
Sir Peter Soulsby: It is precisely right to liken that to a cabinet. The difference, however, is that opposition members were able to question directly both the executive and the officers on the thinking behind their recommendations to the committee. Surely, that was its great strength—and that is lacking in the cabinet system.
Mr. Woolas: I disagree with my hon. Friend on two counts. First, a functioning overview and scrutiny committee allows such questioning to be carried out in a way that is similar to the process in the House, although I would not take the analogy too far. Secondly, and more importantly, the public did not know what the policy and resources committee was. Because of the local government decision-making process that existed, the chairs of the committee took decisions, often in private, often involving two or three people and often not in the council building. The hon. Member for Bromley and Chislehurst looks perplexed, but he cannot, with his experience of local government, believe that Herbert Morrison took his decisions openly in committees in every instance and debated them and did not have a preconceived idea of what he wanted.
Robert Neill: I am perplexed about the Minister thinking that Londoners do not know who Herbert Morrison was. That surprised me.
Mr. Woolas: If I did not know who Herbert Morrison was before I arrived in London, his grandson certainly taught me about him. I invite the hon. Gentleman to name one other chair of the committee from the London county council at the time of Herbert Morrison. Unless he is a complete local government anorak, which he is not, he will not be able to do so.
Robert Neill: Freda Corbett.
Mr. Woolas: The legendary Freda Corbett is called in aid of an argument to return to the committee system. At least the hon. Gentleman is a conservative with a small ‘c’. I commend him for wanting to go backwards.
In answer to my hon. Friend the Member for Leicester, South, there is a serious point to be made about accountability and visibility. The amendment does not take us back, as he says, to the old committee system. Nobody has spoken in favour of the old committee system, which leaves we Committee members with the difficulty of not having a definition of what an enhanced committee is. I believe strongly that those councils that have grasped the executive arrangements and the overview and scrutiny opportunities are already finding ways to involve newer, and often younger, members in the decision-making process—Tameside is a good example—and are getting the benefits of that strong, speedier decision making.
I think that I have answered the points that have been made, if not to the satisfaction of hon. Members.
Dr. Pugh: The Minister made some pertinent, relevant assertions, including that cabinet members are far more visible than committee chairs ever were and that there is enthusiasm throughout the land for scrutiny and overview. Those are contestable assertions. It would be sensible to do some polling or evidence-based research to justify those claims and find out whether cabinet members were any better known to their local communities than committee chairs were and whether there is enthusiasm among back-bench councillors. The evidence is probably to the contrary, but has his Department commissioned any research to find out whether the Minister is right?
Mr. Woolas: The hon. Gentleman asks a legitimate question. I have mentioned some of the surveys relating to this matter. Of course, the Department has taken up such research, as has the Improvement and Development Agency, the Leadership Centre for Local Government and, I think, the Local Government Association. One has to test the whole circumstance, including the overview and scrutiny and the executive arrangements. My real evidence is in the improvement of performance of local authorities. There is a correlation, which the research tends to show, between better executive decision-making structures and the enhanced performance of local government. I could throw in the 39 per cent. real-terms increase in grant as well, but Mr. Benton might accuse me of point scoring. I am not saying that there is always, necessarily cause-and-effect between the two things. I concede the point that the hon. Gentleman made reasonably. Strong leaders can emerge under any structure, but I am concerned with what is most likely to achieve that objective.
Mr. Burrowes: I am struggling to understand the Minister’s logic when distinguishing between those smaller councils that have alternative arrangements and the larger councils. He suggests that councils with a population under 85,000 do not necessarily involve themselves in strategic issues. I question that, and I am sure that those authorities would question whether he is right that they are not involved in strategic issues about children and young people, crime and disorder and social care. They fundamentally are, and they would question and challenge the idea that they do not have a role to play in the strategic leadership of their local authority just because they are smaller.
Is it not true that the Minister is more worried about the budget and how much central money councils have to deal with? One answer would be to make them fully accountable and autonomous and to make them raise their own revenue. The other option would be to have a cut-off link of 85,000 based not on numerical population, but on the budget that it receives.
Mr. Woolas: The hon. Gentleman tempts me down the road of the other clauses on finances and on money-raising powers. If he will forgive me, I shall resist.
I said that, to some extent, the 85,000 figure was arbitrary. The hon. Gentleman rightly says that it is based on population not on electorate. All such councils, with the exception of one, are lower tier authorities. They are not involved in the big strategic issues to which I referred, although they are involved increasingly through enhanced two-tier working and under the auspices of the local area agreement. It boils down to a pragmatic approach. The one exception is the county of Rutland, re-created by a former Prime Minister out of—probably worthy—nostalgia. Rutland certainly has not asked for executive arrangements.
I concede to the Committee that the question is where one draws the boundary and how far one involves executive arrangements. I recognise that point, but it is right that the Government, and indeed, Parliament should draw the line at some point. Otherwise chaos would ensue.
The amendment that the hon. Member for Hazel Grove has tabled would not achieve what he wants, and that is because of the way in which it is written. Crucially, it would not achieve what my hon. Friend the Member for Leicester, South would like. What it describes as the enhanced committee structure can be achieved under existing executive arrangements in the 2000 Act. If I have the opportunity, I shall put into context those arrangements, particularly the points about Brighton and Hove, which is I imagine waiting with bated breath to find out how it fits into the clause. On that point, I ask the hon. Gentleman to withdraw his amendment.
Andrew Stunell: I said at the beginning that the clause is six-and-a-half pages long. Perhaps I made it more difficult for hon. Members by offering three different options, but some criticism of the amendments did not, perhaps understandably, appreciate that.
6.15 pm
I started by saying that I should like the Minister to come out of his centralist mindset, seeing as he has talked to the rest of us about doing so, and I am disappointed that he has not. The debate has brought out some accurate points. It is certainly true that my amendment does not define an enhanced committee system, but if close definition of the outcome had been intended in the Bill, we might have expected from the Government a little more precision on the directly elected executive. Given the response to the last debate, a lack of precision should not be a reason for ruling such a system out.
The Minister set aside 100 years of local government performance—until at least 1948, although we could take it further forward—when local authorities in places such as Birmingham, which has been mentioned, and Manchester were controlling utilities, transport and health as well as all the services that they now control. They did that using the committee system and, on the whole, they did it well.
I am disappointed by the Minister’s response. He recognised that the debate is important and crucial, but unfortunately he has come down on the wrong side of it. Once again, he has raised the red herring that there is some connection between performance or outcomes and the governance system. In a previous debate, I think I heard him accept that there was no connection; that is certainly the view of the Audit Commission, which believes that there is no connection between the governance system and outputs and outcomes.
Mr. Woolas rose—
Andrew Stunell: I shall be happy to give way to the Minister, but just now he seemed to resile from what he had conceded in the previous debate and to be saying that there was a difference in performance.
Mr. Woolas: I said that there was no necessary cause and effect and that it was, in my view, more likely that stronger executive arrangements would lead to enhanced performance. That is the view that the Department’s research has backed up. It is also a common-sense view, given the increase in the performance of local authorities as measured by the Audit Commission over that period.
Andrew Stunell: Perhaps we need to discuss this in some other place, but my understanding is that the Audit Commission is clear that when it looks at its ratings and comprehensive performance assessments, it cannot detect any difference in the performances of authorities based on their existing leadership model. That includes those with the alternative arrangements. They are neither noticeably worse nor noticeably better, and the same can be said for each of the categories. If the Minister wants to say that the Audit Commission has got that wrong or that I am misinterpreting what its data show, perhaps he will have another opportunity to put his point.
Alistair Burt: Does the hon. Gentleman agree that the debate has been characterised by the Minister’s giving good reasons why he does not prefer that particular model? He would prefer a choice of others. However, he has not given a good reason why the choice should not be there for authorities to take if they wish.
Andrew Stunell: Absolutely. I thought that having given the Minister, in my big-hearted way, three possible options to pick, he might at least indicate that one or another might be slightly preferable to him. However, he has not chosen to do so. I do not intend to detain the Committee a great deal longer, but I want to press amendment No. 34 to a Division.
The Chairman: Let us deal first with amendment No. 33.
Amendment negatived..
Amendment proposed: No. 34, in clause 41, page 24, leave out lines 19 to 31 and insert—
‘(2) Notwithstanding the provisions of sections 33A and 33B, any principal council may submit a scheme of internal governance appropriate to its circumstances which shall stand deferred until the next election to the council.
(3) Where no recognised group has overall control, it shall be competent for the council to implement other arrangements as it may determine.’. —[Andrew Stunell.]
Question put, That the amendment be made:—
The Committee divided: Ayes 7, Noes 11.
Division No. 4 ]
AYES
Burrowes, Mr. David
Burt, Alistair
Dunne, Mr. Philip
Neill, Robert
Pugh, Dr. John
Stunell, Andrew
Syms, Mr. Robert
NOES
Blackman-Woods, Dr. Roberta
Brown, Lyn
Gwynne, Andrew
Hall, Patrick
Levitt, Tom
Seabeck, Alison
Shaw, Jonathan
Smith, Angela E. (Basildon)
Soulsby, Sir Peter
Waltho, Lynda
Woolas, Mr. Phil
Question accordingly negatived.
Andrew Stunell: I beg to move amendment No. 37, in clause 41, page 25, line 12, leave out from ‘must’ to end of line 14 and insert
‘hold a referendum of local government electors in the authority’s area.’.
The Chairman: With this it will be convenient to discuss the following amendments: No. 42, in clause 41, page 27, line 32, leave out from beginning to end of line 9 on page 28.
No. 44, in clause 41, page 28, leave out lines 16 to 26.
No. 46, in clause 42, page 30, line 30, leave out subsection (3).
Andrew Stunell: I seem to be having a good innings this afternoon, but I will leave you in peace later on, Mr. Benton.
The amendment gives the Minister his second opportunity to come out of his centralist mindset in relation to the requirement for a referendum before a mayoral system can be introduced. The clause removes that requirement, but the intention of the amendment is to restore it. Again, the debate was rehearsed to some extent on Second Reading. There have been 32 mayoral referendums, but only 12 of those have been successful, in the sense that they have approved a mayor, while 20 have been unsuccessful. In the cases of four of the 12 successful referendums, there are vigorous campaigns to get rid of the mayor. The Minister said on Second Reading that it is of course possible to get rid of a mayor, which led me to have a careful look at the wording. It is indeed possible to do that, but only provided that the mayor agrees, because the council has to sign off any such change.
That is the current situation. Whatever the merits of the mayoral system, at least this completely novel form of local government required endorsement by the public before it was put in place. As the Library note states, Lord Hattersley has said:
“Originally the idea of switching from a proper council to an elected mayor had to be endorsed by the local people...But the rules have been revised. If a local authority wants to hand over its responsibilities to one individual supported by anonymous councillors with emasculated powers, it is now free to do so. The obligation to organise a referendum has been scrapped. Too many referendums produce the wrong result. That decision was, we must hope, the death throes of New Labour’s novel definition of local democracy—the right of the people to choose as long as they make the choice that the government wants.”
I could hardly have put it better myself.
It is extremely difficult to see any decentralising or empowering tendency at work. Local people, who have so far said by two to one that they do not want mayoral systems, will not be given the chance to choose, as it will be for councils to decide. I want to hear the Government’s answer to the criticism that they are proceeding simply in order to force through more mayors in the face of popular dissent. The facts are very clear. There is no need for me to go on any longer, but if the Minister would like to comment in passing on the way in which proposed new section 33N would be used to get rid of a mayor under the present system, I would be interested to hear his explanation.
Mr. Woolas: Thank you, Mr. Benton. I am grateful to the hon. Member for Hazel Grove for tabling the amendment and giving us the opportunity to debate this issue. The first premise of his speech, and of the amendment, is that the Government want more local authorities to take up the mayoral model, but that is not our policy. Our policy is that local authorities should have strong executive arrangements and that it should be up to them to decide whether they are within the boundaries that we have debated today.
Neither the Government nor I see what the hon. Gentleman described as the loss of a referendum as a defeat. It is good that some local authorities have taken up referendums. When the result has been against the mayoral model, it has helped to enhance the democratic process and to reconnect the local authority with the people. To think that that is the Government’s objective is to misunderstand what we are trying to achieve in prompting the debate about executive arrangements. We do not prompt the debate about mayors in order to impose—via the front door, back door or a side door—a mayoral model. It is evident from our policy decisions and debates that that is not the case. We are saying to local authorities, “We want you to have more power, but we want you to have in place the arrangements that would best suit that purpose.”
At the heart of the debate is the hon. Gentleman’s second premise, on which we differ, although it is an honourable difference. When he moved the amendment, he said that there should be a requirement to hold a referendum. In other words, were the amendment to be passed, we in central Government and Parliament would tell a council what it had to do in such circumstances. There is a similar debate on the unitary proposals. We are not saying to councils what the public test has to be. If one is a devolutionist, one has to trust the council. I imagine that if a council were to resolve to move to a mayoral model and that model was unpopular in the area, the public would have their say at the ballot box—indeed, I am certain that that would be the case. Therefore, the premise on which the hon. Gentleman has based his case is not where the Government are coming from. There may be, or may have been, people in the Government who thought that it would be a good idea to have mayors everywhere and to impose their introduction, but that is not Government policy.
Andrew Stunell: The Minister has, to some extent, pre-empted me, but the Prime Minister is not yet a former post holder. The Prime Minister seemed extremely keen on this form of government. Indeed, it has been suggested that that might be why the measure was first introduced.
Mr. Woolas: Again, I am grateful to the hon. Gentleman. There is a danger in politics that the Opposition believe their own propaganda too much. Our manifesto makes our intention very clear. The prompting of the debate about mayors is not so that the Government can impose their favourite model, but to ensure that there is debate about executive arrangements.
The hon. Gentleman has taken a perfectly consistent position, and I commend him on it. He has said that the decision should be by referendum, and it will still be possible under the Bill for the public to petition for a referendum. Also, executive arrangements that have been determined by referendum may be changed only by another referendum. The clause adds to our manifesto commitment that local authorities should be able to make that choice, which is why we reject the notion put forward in the hon. Gentleman’s amendment.
6.30 pm
The hon. Gentleman asked me specifically about proposed new section 33N to the Local Government Act 2000, which is set out in clause 41 of this Bill. It ensures that changes to the governance arrangements of mayor and cabinet executive or elected executive—he would not like to see those, but in such circumstances, this would apply—cannot be made without the specific consent of the elected mayor or the elected executive leader, both of whom have a direct mandate from the electorate of the whole council area.
The effect of the hon. Gentleman’s amendment would be to enable an authority to make changes to its constitution, such as changes to the allocation of responsibility for functions between the full council and the executive, without needing to ensure beforehand that the executive was content with that. That would undermine the accountability of the executive. Those are the reasons why I reject the point of view that the hon. Gentleman has put forward.
Mr. Dunne: Will the Minister clarify whether proposed new section 33N(2) would mean that if an elected mayor or leader lost a motion of confidence in his own performance, he could thereby prevent the change in structure and keep himself in post?
Mr. Woolas: A directly elected leader, be they a mayor or an executive under the arrangements that we were discussing, can be removed only by the electorate, unless criminal or other such activity is involved—similarly, a Member of Parliament is elected for a period of office. We are saying that an indirectly elected leader would be elected by the full council for a period of four years, unless they lose the confidence of the council, which would be expressed, as happens now, through a resolution. Our intention is minor, but it is symbolically important.
At the moment, a council leader faces re-election by the full council every year. That normally happens at the annual general meeting on the Saturday following local elections, although it sometimes occurs in the following week. In practice, where there is majority control the decision is made by the majority group. Where there is no overall control, which is the case in a significant number of councils, that is subject to the arrangements. The council leader needs re-endorsement each year.
Under this proposal, the constitution of the council would assume that the leader would stay in office for four years, unless there is a motion of no confidence in them at any council meeting, so the presumption is the other way round.
Andrew Stunell: That would move towards the old Scottish system of a four-year convenorship, as opposed to having one-year leadership. Does the Minister intend or recognise that that will simply be bypassed in real life by the way in which we do things in England? Will he be a little more explicit about why he thinks that we need this provision rather than just leaving things as they are?
Andrew Stunell: I very much appreciate the Minister’s generosity in giving way. I want to take him on to a different issue: will he confirm the point in the Library briefing that the only way to change an existing electoral mayoral system is if the existing elected mayor agrees to it under proposed new section 33N(2)(a)? That seems to be the model.
Mr. Woolas: Let me explain again the principle behind the policy that we are pursuing, as laid out in the Bill. The route by which an executive arrangement has been made is the route by which it can be undone. Of course, some stability for that must be built in and an elected mayor can resign or face other circumstances that would render him or her incapable of holding the office. In the absence of that—this is the case in Stoke-on-Trent—the elected mayor, who was elected directly by the population and whose office was created by the referendum, must stay in office until the end of the period.
Andrew Stunell: May I press the Minister on that point? Proposed new section 33N is apparently a clear statement that a proposal to change governance arrangements cannot be implemented unless the elected mayor has given written consent to the proposed change. In the event of a campaign against a mayor or popular consent against a mayor, he or she is entrenched unless they sign something according to that provision. Will the Minister tell me whether that is correct?
Mr. Woolas: The hon. Gentleman slightly misunderstands what proposed new section 33N does. It does not apply to changing the model of governance, which is not what it refers to. The hon. Gentleman has quoted proposed new section 33N(1), which is not about changing the model of governance.
Andrew Stunell: Perhaps this is a matter to take up outside the Committee. However, the fact is that according to the Library note and my reading of proposed new section 33N(2)(a), the mayor cannot be dislodged and a new system cannot be proposed by the council unless the mayor gives assent to that.
Amendment negatived.
Clause 41 ordered to stand part of the Bill.
Clauses 42 and 43 ordered to stand part of the Bill.
 
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