Post-legislative scrutiny of the Greater London Authority Act 2007 and the London Assembly - Communities and Local Government Committee Contents


1  Introduction

1. The impetus for this inquiry was post-legislative scrutiny of the Greater London Authority Act 2007. In accordance with Cabinet Office guidance, five years after the Act was enacted the Department for Communities and Local Government (DCLG) submitted to us a memorandum on the operation of the legislation. It is for us then to decide on the scrutiny required.[1] Much of the legislation coming up for review was passed towards the end of the previous Government and has been overtaken by legislation enacted by the Coalition Government that came to power in 2010. The 2007 Act was a case in point. It made a limited number of changes to the governance arrangements that were enacted in the Greater London Authority Act 1999 and which subsequently were amended by the Localism Act 2011 and the Police Reform and Social Responsibility Act 2011.[2] While keeping the 2007 Act in view, we have therefore taken this opportunity to carry out a wider examination of government in London by looking at the operation of the London Assembly and the division of powers between the Assembly and the Mayor.

London-wide government

2. On 7 May 1998 Londoners voted in a referendum by two to one in favour of establishing a Greater London Authority (GLA). It was envisaged that there would be: a city-wide system of government made up of new public bodies responsible for transport, economic development, the police and fire services; an elected assembly; and for the first time in England a directly elected mayor. The legislation enacted to achieve this, the Greater London Authority Act 1999, created a hybrid system, with elements of local government from the United Kingdom and the mayoral system in the United States. Describing the political context in the 1990s, one of our witnesses, Professor Tony Travers, Visiting Professor of Government at the London School of Economics, explained:

    The then Prime Minister, Tony Blair, saw directly elected mayors […] as a way of concentrating such power as was left in local government. In a sense, mayors are a paradoxical piece of evidence of how weak local government had become, because the then Prime Minister wanted to make the power of that office, or the executive part of a council, much more obviously visible in order that it could then exercise power.[3]

He added that the model was intended to be "acceptable to the British political system but nevertheless [...] radical".[4] On 4 May 2000 Londoners returned to the polls. They elected Ken Livingstone as Mayor of London and 25 members to the London Assembly.

THE GREATER LONDON AUTHORITY

3. The Greater London Authority has administrative responsibilities across the capital, and within the GLA the Mayor of London holds and exercises the executive power. He formulates and introduces policies and makes the decisions. In contrast to the Mayor and to local councils in England, the London Assembly has limited powers. It consists of 25 members elected by the additional member system. Fourteen members are elected to represent constituencies; the remaining 11 represent the whole capital. The Assembly is able to question the Mayor 10 times a year at Mayor's Question Time. It also arranges itself into subject-based scrutiny committees, such as its Housing and Transport Committees, to hold evidence sessions and produce reports on the Mayor, his deputies and the organisations providing services to London, including the GLA's functional bodies. The Assembly has the power to scrutinise the Mayor's decisions once they have been made, but its power to change mayoral decisions is restricted to a power to amend the strategies the Mayor is required to produce and, more significantly, to amend or block his budget. But to do so requires a two-thirds majority in the Assembly.[5] This means that 17 Assembly Members (AMs) have to oppose the Mayor's proposal. The Greater London Authority Act 1999 set up these arrangements and subsequent legislation the Greater London Authority Act 2007 and the Localism Act 2011 has built on them.

4. The GLA has authority over four 'functional bodies':

  • the London Fire and Emergency Planning Authority (LFEPA),
  • Transport for London (TfL),
  • the London Legacy Development Corporation (LLDC), responsible for the long-term development of the Olympic park, and
  • the Mayor's Office for Policing and Crime (MOPAC).

The Mayor appoints members to the boards of these bodies, sets their budgets and strategy and has full authority over them.

5. In addition the GLA has some responsibilities for housing, which include creating a London housing strategy, managing a programme to deliver new affordable homes and improving existing social rented homes. London also has a capital-wide Local Enterprise Partnership (LEP) to advise the Mayor on strategic investment, innovation and competitiveness.[6] This LEP was renamed the 'London Enterprise Panel' and began work in 2012.[7] The GLA, like local authorities in England, also has a general power of competence, which may be used to promote economic and social development and environmental improvement within London.[8]

6. The Mayor is not, however, able to exercise the range of powers available to the devolved Administrations in Scotland, Wales or Northern Ireland. He cannot provide or spend money on health or education services, and he is forbidden from spending money on any service provided by a borough council or any other public body.[9] London's services in health, education, social care, arts and culture and environmental protection are all delivered by bodies other than the GLA, including London's borough councils.[10] The Mayor must produce eight strategy documents: transport, economic development, culture, spatial development (the London Plan), environment, housing, health inequalities, and skills and employment. But aside from those for transport, housing and economic development, where he has executive responsibilities and budgets, the Mayor must rely on persuasion and influence to ensure they are implemented. He has few powers to compel or override the boroughs, although, as we explain below, he was recently given more authority in relation to planning.

THE GREATER LONDON AUTHORITY ACT 2007

7. In 2006 the then Government published a consultation paper on changes to the Greater London Authority.[11] As a result of this exercise it decided to update the 1999 Act. The Greater London Authority Act 2007 devolved further powers to the Mayor and the Assembly. It gave the Mayor greater powers over housing, waste management and in regard to planning—the power to call in and take over from London's boroughs major planning applications.[12] Previously he had only a power of veto. The 2007 Act also gave the Assembly new powers, including the power to hold confirmation hearings for certain mayoral appointments and to produce its own budget.[13]

THE LOCALISM ACT 2011

8. The Coalition Government made further and more wide-ranging changes, some of which superseded the Greater London Authority Act 2007. The Localism Act 2011 empowered the Mayor to establish Mayoral Development Corporations (MDCs) in order to regenerate specified geographical areas. It has also passed to the Mayor the budget and functions of the London Board of the Homes and Communities Agency. The GLA can now acquire land for housing and regeneration purposes. As in 2007, the 2011 Act provided the Assembly with additional powers: to reject the Mayor's strategies and any proposed Mayoral Development Corporations. The exercise of both powers require a two-thirds majority.

THE POLICE REFORM AND SOCIAL RESPONSIBILITY ACT 2011

9. The GLA gained further powers through the Police Reform and Social Responsibility Act 2011, which made changes to the structure of policing in London. The Mayor, through the Mayor's Office of Policing and Crime (MOPAC), was given the same powers as a Police and Crime Commissioner. He has appointed a Deputy Mayor to carry out these responsibilities. MOPAC must secure the maintenance of the Metropolitan police force, ensure its efficiency and effectiveness and publish a policing and crime plan at least annually.[14] Under the legislation, the Assembly was empowered to set up a special-purpose committee, the Policing and Crime Committee, to scrutinise the work of MOPAC. The Committee can reject, on a two-thirds majority, the appointment of any Deputy Mayor for Policing and Crime who is not an Assembly Member, but it has no power to reject the Mayor's Policing and Crime Plan.[15]

THE LONDON FINANCE COMMISSION

10. The London mayoralty has not just sat back and waited for Parliament and the Government to hand it more powers. London has had two Mayors since 2000, Ken Livingstone and Boris Johnson, who have been active in seeking new powers for their office. Most recently, in July 2012, the current Mayor, Mr Johnson, established the London Finance Commission, "to help improve the tax and public spending arrangements for London in order to promote jobs and growth."[16] It was chaired by Professor Tony Travers of the London School of Economics. After a nine-month inquiry the commission reported in May 2013. It called for London government to have full control over council tax, stamp duty and business rates and the power to introduce new levies, such as a tourism tax. At the moment the Mayor's independent sources of revenue are limited. The GLA receives funding from central Government and from a precept that it levies on Londoners' council tax bills.[17] Since 2012 the Mayor has also been able to charge a community infrastructure levy on new developments in London.[18]

Our inquiry

11. This report focuses on the functions and operation of the London Assembly and its relationship with the Mayor. It examines the role of the Assembly; the type of scrutiny it undertakes; and whether its functions and powers are consistent and clear. Our inquiry has a limited focus and may pave the way for a wider review of London government later in this Parliament. We intend to meet the Mayor of London in the autumn to discuss the report of the London Finance Commission and the future of London government. In conducting this inquiry it appears to us that the strong mayoral model operating in London is here to stay. In other parts of the country, any move to a similar form of government should be subject to a local referendum. The Mayor of London's powers have increased since 2007 and, if the pattern of recent legislation persists, they may continue to do so. In our report we therefore ask whether London's current model of governance allows the London Assembly to scrutinise him adequately now and will do so into the future. In this report conclusions are printed in bold and recommendations are in bold italics.

12. The Mayor of London holds the executive power in the Greater London Authority. We conclude that this model of government looks set to continue with the transfer of further powers to the Mayor through the Greater London Authority Act 2007, the Localism Act 2011 and the Police Reform and Social Responsibility Act 2011, and most recently in the current Mayor's call for greater tax and spending powers in London. Such a concentration of power in one person is uncharacteristic of the UK constitution, and this raises questions about the remit and functions of the London Assembly, which is charged with holding him to account.


1   Cabinet Office, Guide to Making legislation, June 2012, Part 40, p 250 Back

2   See paras 7 to 9. Back

3   Q 6 Back

4   Q 10 Back

5   Ev 42, para 5 Back

6   "The Greater London Authority", House of Commons Library Standard Note, SN 05817, p 10 Back

7   "Shaping London's economic future - Mayor of London establishes London Enterprise Panel", Greater London Authority press release, www.london.gov.uk/media/mayor-press-releases/2012/02/shaping-londons-economic-future-mayor-establishes-lep, 8 February 2012 Back

8   "The Greater London Authority", Library Standard Note, SN 05817, p 6 Back

9   Professor Vernon Bogdanor, lecture delivered to symposium on 'The future of London government', 24 May 2010, www.gresham.ac.uk/lectures-and-events/the-future-of-london-government (accessed 21/08/2013). The Mayor's powers are limited under section 31(3) of the 1999 Act. Back

10   "The Greater London Authority", Library Standard Note, SN 05817, p 5 Back

11   DCLG, "The Greater London Authority, The Government's final proposals for additional powers and responsibilities for the Mayor and Assembly", August 2006 Back

12   Ev 31, paras 4, 6 and 9 Back

13   "The Greater London Authority", Library Standard Note SN 05817, p 3; Ev 40, paras 2.1 and 2.2 Back

14   "The Greater London Authority", Library Standard Note SN 05817, p 10 Back

15   Ev 41, para 2.2, Ev 45, para 6.4 Back

16   Greater London Authority website: www.london.gov.uk/priorities/business-economy/championing-london/london-finance-commission Back

17   Greater London Authority website: www.london.gov.uk/mayor-assembly/gla/spending-money-wisely/budget-expenditure-charges/the-mayors-budget-for-2013-14 Back

18   This power was provided for under part 11 of the Planning Act 2008. Back


 
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© Parliamentary copyright 2013
Prepared 16 October 2013