The Balance of Power: Central and Local Government - Communities and Local Government Committee Contents


Examination of Witnesses (Questions 480-481)

RT HON NICK RAYNSFORD MP AND BARONESS HAMWEE

8 DECEMBER 2008

  Q480  Mr Betts: Could I just comment to your colleagues because I think some of us might feel that ministers within the CLG and indeed officials are now on a path of wanting to devolve—it might be less quick than some of us would like it, and it might not always be in the right direction. There is a feeling—this goes back to your time as well—that it was the right way to go to try to create a new balance between central and local government. There is also the feeling that that commitment did not always extend beyond that department and local government clearly has a lot of interest in other central government departments. I will just give you one or two examples. We had the draft Regional Assemblies Bill and I do not think there was a power that any other central government department apart from ODPM (as it was at the time) were willing to give up to the regional assemblies. There was the issue you just mentioned about education grants, which I felt for you on because you had just given commitments about reducing the level of specific grants for local government and then the Department of Education simply went and said that the whole lot is going to be passed down to schools effectively. Local government could pass it on as a postman, but that was all the power they had, so that was changed. When we had the Health Minister before us, Anne Keen, she is almost terrified of the idea that local authorities might become commissioners for local health services instead of appointing PCTs. It appears that the commitment to devolution is almost within one department and not spread out. Is that a fair assessment?

  Mr Raynsford: I think it is an over-statement but there is an element of truth in this because unquestionably other ministers in other departments tend to see issues from the point of view of how their particular concerns are implemented and if they are the responsibility of local government to implement them they want to feel confident that that will happen. There is a degree of reluctance unless they are confident that things will happen well. In the course of my discussions with my colleagues—I had endless discussions with very large numbers—on a lot of issues we gained ground, we won support for the approach which was a devolutionary approach but it was a conditional one, it was conditional on evidence of improvement in performance. I think that is the only way to go. I think it is the way it should be resumed and sustained in the future, but I am not going to pretend that it is going to be easy.

  Baroness Hamwee: I think there is a difficulty in authorities not going forward more or less at the same rate because of being judged on council tax—I keep coming back to it, but you did as well, Nick—against what other authorities in the same area or what they are told by the press are charging. If one gets into a position where some authorities are given the opportunity to charge more unless they know that that is going to be understood as a nationwide position then I think they will have real problems in grasping that.

  Q481  Mr Betts: Coming onto the constitutional position, we had the discussion earlier about the fact that Scotland and Wales now have a constitutional settlement which will be varied and added to at various times, but it is inconceivable now that the UK Parliament would row back from that settlement by passing an Act without agreement from Scotland and Wales. Is there any way we could get some agreement on the constitutional position of local government? We have had ideas put forward about a Central-Local Concordat, which has almost disappeared without trace, being put into legislation. Or the charter of local self-government being put on the same basis as the Convention of Human Rights, on a legal footing where there could be a joint committee of both Houses to oversee and monitor the relationship between central and local government. Do any of these ideas appeal to you in trying to create a more constitutional settlement between local and central government?

  Mr Raynsford: I have to say I am a bit sceptical about constitutional approaches. You referred to the particular example of the framing of the regional assemblies legislation. When central government is required to define what it is going to delegate or devolve it will always find reasons to be cautious. I have a view that the right way forward happens to be one that tries to both incentivise and empower local authorities to do better and to win confidence that actually they are well capable of delivering services excellently. I do agree very much with the view that Lord Heseltine set out, that having powerful and effective unitary authorities is definitely part of that process. I think that a series of measures designed to create strong, powerful authorities with devolution to parish councils and other bodies to ensure that the local concerns are not ignored, coupled with a reform of finance along the lines I have described, coupled with the maintenance of a performance management framework, that that is the right way forward to build more effective, more confident local government and to make central government more confident to agree, through arrangements like LAAs (Local Areas Agreements) and MAAs (Multi Area Agreements) that local government with its partners can play a bigger role in defining the priorities for their area.

  Baroness Hamwee: I do not see a major piece of legislation trying to set out the constitutional position as likely to be as effective for local government as I would want to see it. This country tends to do things incrementally. The idea of a joint committee of both Houses does appeal to me. I would like to see the local government world, whether it is the Local Government Association (and some disappointment perhaps was expressed earlier, I share that disappointment.) I think they should be much more ambitious but I think they need to play a part in that not, as I read what happens with the Local Government Association, they are too supportive of what is going on and are not sufficiently critical either of central government or frankly themselves.

  Chair: Thank you both very much indeed.





 
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