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Question accordingly negatived.
Clause 21 ordered to stand part of the Bill.
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Sub-national transport bodies
After Part 5 of the Local Transport Act 2008 insert—
“Part 5A
Sub-national transport bodies
“Establishment and constitution of STBs
(1) The Secretary of State may by regulations establish a sub-national transport body for any area in England outside Greater London.
(a) “STB” means a sub-national transport body established under this section, and
(b) references to the area of an STB are to the area in England for which the STB is established.
(3) Regulations under this section must specify—
(a) the name by which the STB is to be known, and
(4) The area of an STB must consist of the whole of the area of two or more relevant authorities (whether or not of the same kind).
(5) Each of the following is a “relevant authority” for the purposes of this Part—
(c) a county council that comes within subsection (6);
(d) a unitary district council that comes within that subsection;
(e) the Council of the Isles of Scilly.
(6) A council comes within this subsection if no part of its area forms part of—
(a) the area of a combined authority, or
(b) an integrated transport area.
(7) An STB is to be established as a body corporate.
102F Requirements in connection with regulations under section 102E
(1) Regulations under section 102E may be made establishing an STB for an area only if the Secretary of State considers that—
(a) its establishment would facilitate the development and implementation of transport strategies for the area, and
(b) the objective of economic growth in the area would be furthered by the development and implementation of such strategies.
(2) The reference in subsection (1)(a) to “transport strategies”, in relation to the area of an STB, is a reference to strategies for improving—
(a) the exercise of transport functions in the area (whether or not exercisable by the STB), and
(b) the effectiveness and efficiency of transport to, from or within the area.
(3) Regulations under section 102E establishing an STB for an area may be made only if—
(a) the constituent authorities have together made a proposal to the Secretary of State for there to be an STB for the area, and
(b) those authorities consent to the making of the regulations.
(4) For the purposes of this Part, the constituent authorities of an STB are every relevant authority whose area is within the area, or proposed area, of the STB.
(5) Before making a proposal under this section the constituent authorities must consult—
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(a) each appropriate authority (if it is not a constituent authority), and
(b) any other persons whom the constituent authorities consider it is appropriate to consult.
(6) The Secretary of State may require the constituent authorities to consult any other persons (not already consulted under subsection (5)(b)) whom the Secretary of State considers should be consulted in connection with a proposal under this section.
(7) For the purposes of subsection (5), each of the following is an “appropriate authority” if any part of the authority’s area adjoins the area of the proposed STB—
(e) a unitary district council;
(1) The Secretary of State may by regulations make provision about the constitutional arrangements in relation to an STB.
(2) “Constitutional arrangements”, in relation to an STB, include arrangements in respect of—
(a) the membership of the STB (including the number and appointment of members of the STB),
(b) the voting powers of members of the STB (including provision for different weight to be given to the vote of different descriptions of member),
(c) the executive arrangements of the STB, and
(d) the functions of any executive body of the STB.
(3) Regulations made by virtue of subsection (2)(a) which include provision about the number and appointment of members of the STB must provide—
(a) for the members of the STB to be appointed by the STB’s constituent authorities, and
(b) for those members to be appointed from among the elected members of the constituent authorities.
(4) Regulations made by virtue of subsection (2)(a) may provide for persons, who are not elected members of the constituent authorities, to be appointed as co-opted members of an STB; but such regulations must provide (by virtue of subsection (2)(b)) for those co-opted members to be non-voting members of the STB.
(5) The voting members of an STB may resolve that provision made in accordance with subsection (4) is not to apply (generally or in relation to particular matters) in the case of the STB.
(6) In subsection (2)(c) “executive arrangements” means—
(a) the appointment of an executive;
(b) the functions of the STB which are the responsibility of an executive;
(c) the functions of the STB which are the responsibility of an executive and which may be discharged by a committee of the STB, by an officer of the STB or by a body other than the STB;
(d) arrangements relating to the review and scrutiny of the discharge of functions;
(e) access to information on the proceedings of an executive of the STB;
(f) the keeping of a record of any arrangements relating to the STB and falling within any of paragraphs (a) to (e).
(7) The provision which may be made by regulations by virtue of subsection (2)(d) includes—
(a) provision setting up or dissolving an executive body of an STB, or merging two or more executive bodies of an STB;
(b) provision conferring functions on, or removing functions from, an executive body of an STB;
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(c) provision transferring functions of an STB to an executive body of the STB, and transferring functions of an executive body of an STB to the STB.
(8) Regulations under this section may authorise an STB to delegate any of its functions to one or more of its constituent authorities (and any such delegation may be made subject to conditions or limitations).
(9) Regulations under this section may not provide for the budget of an STB to be agreed otherwise than by the STB.
(10) For the purposes of subsections (3) and (4), the “elected members” of a constituent authority—
(a) in the case of a combined authority, are the mayor for the area of the combined authority (if there is one) and those members of the authority who are appointed from among the elected members of the authority’s constituent councils (see section 85(1)(b) above as applied by section 104(2) of the Local Democracy, Economic Development and Construction Act 2009);
(b) in the case of an ITA, are those members of the ITA who are appointed from among the elected members of the ITA’s constituent councils (see section 85(1)(b) above);
(c) in the case of a county council, a unitary district council or the Council of the Isles of Scilly, are the elected members of the council.
(1) The Secretary of State may by regulations provide for an STB to have any of the following functions in relation to its area—
(a) to prepare a transport strategy for the area (see section 102I);
(b) to provide advice to the Secretary of State about the exercise of transport functions in relation to the area (whether exercisable by the Secretary of State or others);
(c) to co-ordinate the carrying out of transport functions in relation to the area that are exercisable by different constituent authorities, with a view to improving the effectiveness and efficiency in the carrying out of those functions;
(d) if the STB considers that a transport function in relation to the area would more effectively and efficiently be carried out by the STB, to make proposals to the Secretary of State for the transfer of that function to the STB;
(e) to make other proposals to the Secretary of State about the role and functions of the STB.
(2) The Secretary of State may by regulations provide for an STB to have other functions of a description set out in the regulations.
(3) Regulations under subsection (2) may be made only for functions to be exercisable in relation to the area of the STB that—
(b) the Secretary of State considers can appropriately be exercised by the STB, and
(c) are not already exercisable in relation to that area by a local authority or a public authority (see instead sections 102J and 102K respectively for a power to transfer such functions to an STB).
(4) The Secretary of State may by regulations make further provision about how an STB is to carry out functions that it has under or by virtue of this Part.
(5) Regulations under this section in relation to an existing STB may be made only with the consent of the STB.
(6) Nothing in this section limits the power of the Secretary of State to confer other functions on an STB under this Part.
102I Transport strategy of an STB
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(1) The transport strategy of an STB is a document containing the STB’s proposals for the promotion and encouragement of sustainable, safe, integrated, efficient and economic transport facilities and services to, from and within the area of the STB.
(2) The transport facilities and services mentioned in subsection (1) are—
(a) those required to meet the needs of persons (including pedestrians) living or working in, or visiting, the area of the STB, and
(b) those required for the transportation of freight.
(3) An STB may include in its transport strategy any other proposals it considers appropriate that relate to transport to, from or within its area.
(4) An STB must publish its transport strategy.
(5) If an STB revises its transport strategy, the STB must publish the strategy as revised.
(6) In preparing or revising its transport strategy an STB must carry out a public consultation.
(7) In carrying out a public consultation under subsection (6), the STB must ensure that such of the following persons as the STB considers appropriate (taking into account the proposals to be contained in the strategy) have a reasonable opportunity to respond to the consultation—
(e) a Passenger Transport Executive;
(g) a person to whom a licence is granted under section 8 of the Railways Act 1993 (licences authorising persons to be operator of railway assets);
(h) Highways England Company Limited;
(i) a local highway authority (within the meaning of the Highways Act 1980);
(j) a county council in England;
(k) a unitary district council;
(8) In preparing or revising its transport strategy an STB must (among other matters) have regard to—
(a) the promotion of economic growth in its area,
(b) the social and environmental impacts in connection with the implementation of the proposals contained in the strategy,
(c) any current national policy relating to transport that has been published by or on behalf of Her Majesty’s Government, and
(d) the results of the public consultation mentioned in subsection (6).
(9) The Secretary of State must have regard to proposals contained in the transport strategy of an STB that appear to the Secretary of State to further the objective of economic growth in the area of the STB in determining—
(a) national policies relating to transport (so far as relevant in relation to such proposals), and
(b) how such policies are to be implemented in relation to the area of the STB.
(10) The constituent authorities of an STB must exercise transport functions with a view to securing the implementation of the proposals contained in the STB’s transport strategy.
(11) In this Part “transport strategy”, in relation to an STB, means the transport strategy prepared or revised by an STB under this section by virtue of the function in section 102H(1)(a).
102J Exercise of local transport functions
(1) The Secretary of State may by regulations provide for functions that are exercisable by a local authority in an area that is, or is to become, the area of an STB to be exercisable by the STB.
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(2) Regulations under this section may be made—
(a) only in relation to functions that relate to transport, and
(b) only if the Secretary of State considers that the function can appropriately be exercised by the STB.
(3) For the purposes of subsection (2)(a), regulations under this section may be made in respect of a function that relates both to transport and to other matters only so far as the function is exercisable in relation to transport.
(4) Regulations under this section may make provision for a function to be exercisable by the STB either generally or subject to such conditions or limitations as may be specified in the regulations.
(5) Regulations under this section may make provision—
(a) for a function to be exercisable by the STB instead of by the local authority, or
(b) for a function to be exercisable by the STB jointly with the local authority.
(6) Regulations under this section may be made only with the consent of—
(a) the local authority concerned, and
(b) in the case of regulations made in relation to an existing STB, the STB.
(7) In this section “local authority” means—
(c) a Passenger Transport Executive;
(d) a county council in England;
(e) a unitary district council;
(f) the Council of the Isles of Scilly.
102K Other public authority functions
(1) The Secretary of State may by regulations provide for functions that are exercisable by a public authority in relation to an area that is, or is to become, the area of an STB to be exercisable by the STB.
(2) Regulations under this section may be made—
(a) only in relation to functions that relate to transport, and
(b) only if the Secretary of State considers that the function can appropriately be exercised by the STB.
(3) For the purposes of subsection (2)(a), regulations under this section may be made in respect of a function that relates both to transport and to other matters only so far as the function is exercisable in relation to transport.
(4) Regulations under this section may make provision for a function to be exercisable by the STB either generally or subject to such conditions or limitations as may be specified in the regulations.
(5) Regulations under this section may make provision—
(a) for a function to be exercisable by the STB instead of by the public authority, or
(b) for a function to be exercisable by the STB jointly with the public authority.
(6) Regulations under this section in relation to an existing STB may be made only with the consent of the STB.
“function” does not include a power to make regulations or other instruments of a legislative character;
“Minister of the Crown” has the same meaning as in the Ministers of the Crown Act 1975;
(a) includes a Minister of the Crown or a government department;(b) does not include a local authority as defined by section 102J.
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(1) The Secretary of State may pay grants to STBs to cover expenditure incurred in the carrying out of their functions.
(2) Grants may be paid under this section subject to any conditions the Secretary of State thinks appropriate (including conditions as to repayment).
(3) The Secretary of State may by regulations make provision—
(a) for the constituent authorities of an STB to contribute to its costs, and
(b) about the basis on which the amount payable by each constituent authority is to be determined.
(a) anything it considers appropriate for the purposes of the carrying out of any of its functions (its “functional purposes”),
(b) anything it considers appropriate for purposes incidental (whether directly or indirectly) to its functional purposes,
(c) anything it considers to be connected with—
(ii) anything it may do under paragraph (a) or (b), and
(d) for a commercial purpose, anything which it may do under any of paragraphs (a) to (c) otherwise than for a commercial purpose.
(2) Where subsection (1) confers power on an STB to do something, it confers power (subject to section 102N) to do it anywhere in the United Kingdom or elsewhere.
(3) Power conferred on an STB by subsection (1) is in addition to, and is not limited by, the other powers of the STB.
(4) Where an STB has an executive body established by virtue of section 102G, the STB may delegate to that body its function of taking action under subsection (1) (but not the function of determining what action to take).
102N Boundaries of power under section 102M
(1) Section 102M(1) does not enable an STB to do anything which it is unable to do by virtue of a post-commencement limitation which is expressed to apply—
(a) to its power under section 102M(1),
(c) to all of its powers but with exceptions that do not include its power under section 102M(1).
(2) Section 102M(1) does not authorise an STB to borrow money.
(3) Section 102M(1)(a) to (c) do not authorise an STB to charge a person for anything it does otherwise than for a commercial purpose (but see section 93 of the Local Government Act 2003 (power of STBs and other best value authorities to charge for discretionary services)).
(4) Section 102M(1)(d) does not authorise an STB to do things for a commercial purpose in relation to a person if a statutory provision requires the STB to do those things in relation to the person.
(5) Where under section 102M(1)(d) an STB does things for a commercial purpose, it must do them through—
(a) a company within the meaning given by section 1(1) of the Companies Act 2006, or
(b) a registered society within the meaning of the Co-operative and Community Benefit Societies Act 2014.
“post-commencement limitation” means a prohibition, restriction or other limitation imposed by a statutory provision that—
(a) is contained in an Act passed after the end of the Session in which the Cities and Local Government Devolution Act 2015 is passed, or
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(b) is contained in an instrument made under an Act and comes into force on or after the commencement of section (Sub-national transport bodies) of that Act;
“statutory provision” means a provision of an Act or of an instrument made under an Act.
102O Power to make provision supplemental to section 102M
(1) The Secretary of State may by regulations make provision preventing an STB from doing under section 102M(1) anything which is specified, or is of a description specified, in the regulations.
(2) The Secretary of State may by regulations provide for the exercise by STBs of the power conferred by section 102M(1) to be subject to conditions, whether generally or in relation to doing anything specified, or of a description specified, in the regulations.
(3) Before making regulations under subsection (1) or (2) the Secretary of State must consult—
(a) such representatives of STBs,
(b) such representatives of local government, and
(c) such other persons (if any),
as the Secretary of State considers appropriate.
(4) Subsection (3) does not apply to regulations under subsection (1) or (2) which are made only for the purpose of amending earlier such regulations—
(a) so as to extend the earlier regulations, or any provision of the earlier regulations, to a particular STB or to STBs of a particular description, or
(b) so that the earlier regulations, or any provision of the earlier regulations, cease to apply to a particular STB or to STBs of a particular description.
(1) The Secretary of State may by regulations confer on an STB a power to give directions to a constituent authority about the exercise of transport functions by the authority in the area of the STB.
(2) The power to give a direction by virtue of subsection (1) about the exercise of a function extends only so far as the exercise of the function is relevant to the implementation of the STB’s transport strategy.
(3) Regulations under this section conferring a power to direct may include provision—
(a) for the power to be given generally or subject to conditions or limitations;
(b) for the power to apply to all transport functions or only to those functions specified or described in the regulations;
(c) about the manner in which directions are to be given;
(d) about the consequences arising if there is a contravention of a direction.
(4) Provision under subsection (3)(d) may include provision enabling the STB—
(a) to take any steps it considers appropriate to reverse or modify the effect of a constituent authority exercising a transport function in contravention of the direction, and
(b) to recover any reasonable expenses incurred in taking those steps as a civil debt from the constituent authority.
102Q Change to boundaries of an STB’s area
(1) The Secretary of State may by regulations change the boundaries of the area of an STB by—
(a) adding the area of a relevant authority to an existing area of an STB, or
(b) removing the area of a constituent authority from an existing area of an STB.
(2) Regulations under this section may be made—
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(a) only if the constituent authorities have together made a proposal to the Secretary of State for the boundaries to be changed in the manner that would be provided for in the regulations;
(b) in the case of regulations under subsection (1)(a), only if the relevant authority whose area would be added to the area of the STB joins in the making of the proposal;
(c) in the case of regulations under subsection (1)(b), only if the resulting area of the STB meets the condition in section 102E(4).
(3) Regulations under this section changing the boundaries of the area of an STB may be made only if the Secretary of State considers that paragraphs (a) and (b) of section 102F(1) would apply in relation to the area as varied by the regulations.
(4) Regulations under this section may be made only with the consent of—
(b) in the case of regulations under subsection (1)(a), the relevant authority whose area would be added to the area of the STB.
(1) An STB may change its name by a resolution in accordance with this section.
(2) The resolution must be considered at a meeting of the STB that is specially convened for the purpose.
(3) Particulars of the resolution must be included in the notice of the meeting.
(4) The resolution must be passed at the meeting by not less than two-thirds of the members of the STB who vote on it.
(5) An STB which changes it name under this section must—
(a) send notice of the change to the Secretary of State, and
(b) publish the notice in such manner as the Secretary of State may direct.
(6) A change of name under this section does not affect the rights or obligations of the STB or any other person, or render defective any legal proceedings.
(7) Any legal proceedings may be commenced or continued as if there had been no change of name.
(1) The Secretary of State may by regulations make incidental, consequential, transitional or supplementary provision for the purposes of, or in consequence of, regulations under this Part or for giving full effect to such regulations.
(2) Regulations under this Part may make different provision for different STBs or otherwise for different purposes.
(3) The provision which may be included by virtue of this section in regulations includes provision for the transfer under the regulations of property, rights and liabilities.
(4) The provision which may be included by virtue of subsection (3) in regulations includes provision—
(a) for the creation or imposition by the Secretary of State of new rights or liabilities in respect of anything transferred under the regulations;
(b) for the management or custody of transferred property;
(c) for bodies to make agreements with respect to any property, income, rights, liabilities and expenses of, and any financial relations between, the parties to the agreement.
(5) The provision which may be included by virtue of this section in regulations includes provision amending, modifying, repealing or revoking any enactment, whenever passed or made.
(6) In this section “enactment” includes an enactment comprised in subordinate legislation (within the meaning of the Interpretation Act 1978).
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102T Procedure for regulations under this Part
(1) Regulations under this Part must be made by statutory instrument.
(2) A statutory instrument containing regulations under this Part may not be made unless a draft of the instrument has been laid before, and approved by a resolution of, each House of Parliament.
(3) At the same time as laying a draft of a statutory instrument containing regulations under this Part before Parliament, the Secretary of State must lay before Parliament a report explaining the effect of the regulations and why the Secretary of State considers it appropriate to make the regulations.
(4) Subsections (2) and (3) do not apply to a statutory instrument that contains regulations only of the following kinds—
(a) regulations under section 102J that make provision under subsection (4) of that section for a function to be exercisable by an STB for a limited period of time;
(b) regulations under section 102J that make provision under subsection (5)(b) of that section;
(c) regulations under section 102K that make provision under subsection (4) of that section for a function to be exercisable by an STB for a limited period of time;
(d) regulations under section 102K that make provision under subsection (5)(b) of that section;
(e) regulations under section 102O(1) that make provision for the purpose mentioned in section 102O(4)(b);
(f) regulations under section 102O(2) that make provision for that purpose or for imposing conditions on the doing of things for a commercial purpose.
(5) A statutory instrument to which subsections (2) and (3) do not apply is subject to annulment by resolution of either House of Parliament.
(6) If a draft of regulations under this Part would, apart from this subsection, be treated for the purposes of the standing orders of either House of Parliament as a hybrid instrument, it is to proceed in that House as if it were not a hybrid instrument.
“combined authority” means a body established as a combined authority under section 103 of the Local Democracy, Economic Development and Construction Act 2009;
“constituent authority”, in relation to an STB, has the meaning given by section 102F(4);
“ITA” means an Integrated Transport Authority for an integrated transport area in England;
“Passenger Transport Executive” means a body which is such an Executive for the purposes of Part 2 of the Transport Act 1968;
“relevant authority” has the meaning given by section 102E(5);
“STB” has the meaning given by section 102E(2);
“transport functions” means any statutory functions relating to transport;
“transport strategy” has the meaning given by section 102I(11);
“unitary district council” means a district council whose area is not part of the area of a county council.”
—
(Andrew Jones.)
This new clause inserts a new Part 5A into the Local Transport Act 2008. The new Part confers power to establish Sub-national Transport Bodies which will operate at a sub-national local government level in transport matters with the aim of furthering economic growth in their area.
Brought up, and read the First time.
The Parliamentary Under-Secretary of State for Transport (Andrew Jones): I beg to move, That the clause be read a Second time.
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The Temporary Chair (Mr David Crausby): With this it will be convenient to discuss the following:
Government amendments 62 to 66
Andrew Jones: In the summer 2015 Budget, my right hon. Friend the Chancellor reaffirmed the Government’s commitment to the development of a northern powerhouse, a key part of our plan to deliver sustainable economic growth throughout the country. The new clause and amendments, on sub-national transport bodies, or STBs, will strengthen the development of the northern powerhouse and, potentially, the midlands engine and other areas of our country too. In this House and in the other place, we are transforming northern growth and rebalancing our country’s economy. That is not to the detriment of London; it will complement its economic might and build stronger links between cities, so that hardworking people and businesses can access markets and make the most of their skills and dynamism wherever they are.
4.15 pm
One of our first challenges is to improve transport links between the great cities of the north. The Government have been very clear: we need better travel connections in the north. To give the House an example of the gulf in journey times, when travelling to London from Leeds by train it takes about two and a quarter hours to travel 170 miles at an average speed of 76 miles an hour. However, if one travels from Leeds to Liverpool on the train, it can also take just around two hours, but it is only 70 miles, at an average speed of 35 miles an hour. That is clearly too slow. These and other examples like it throughout the country are evidence of the brake on productivity and prosperity that transport can unwittingly provide.
By comparison, good connections between major urban areas can provide the catalyst for growth. We only have to look at examples like the Randstad or the Rhine-Ruhr regions to see the benefits. The Randstad region, bounded by Amsterdam, Rotterdam, The Hague and Utrecht, is linked by fast and frequent rail services, with journeys of about 30 to 50 minutes and an extensive road network. This transport network helps that area alone generate about half of the Netherlands’ GDP. Similarly, the Rhine-Ruhr region in Germany, covering five large cities and 10 smaller ones, has a network of fast inter-city, inter-urban and metro-style rail services, and a well-used system of autobahns.
Currently, in our country, decision making on strategic transport schemes is centralised at the national level. The journey to greater devolution has started, however. Individually, cities across the country are already strong and are being given the tools, through more powers and funding from Westminster in city deals, allowing areas the type of local determination they deserve. I believe there is support on both sides of the House for further devolution and a desire to see all parts of the UK benefit from greater devolution of power. The Bill will deliver devolution of powers and resources so our cities, towns and counties can become their own economic powerhouses. Through devolution, Government investment and economic growth is being tailored directly to the individual challenges and opportunities that particular places and communities face.
Let us not forget, however, that much has been achieved already. As we are all aware, improving our ageing infrastructure is of fundamental importance. In recognition of that, we are already spending £13 billion on transport
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in the north of England in this Parliament. In the past five years, the Government have invested heavily in rail and road networks, committed to the northern hub and electrification programmes and are tripling road spending by 2020, improving the capacity and conditions of our motorways and major A roads. It can be seen, too, in the major benefits to come from the new trans-Pennine and northern passenger rail franchises. Building on these, and through our continuing work to develop northern powerhouse rail and roads, we will bring people and businesses closer together and strengthen connections.
John Redwood: It is excellent news that there will be more road and rail capacity between the northern cities, as it is much needed. Can the rail capacity be provided on existing track? Is it a question of more efficient signalling and better trains?
Andrew Jones: We can boost rail capacity through a mixture of new lines and work to the existing network, alongside the electrification and signalling. The combination of all those things, in conjunction with new rolling stock, will deliver the step-change we need. Our rail industry is a huge success. It has gone from carrying 750 million passenger journeys per year only 20 years ago to 1.65 billion now. The issue our industry is facing is success and how to deliver that success with its capacity. A combination of things are required to deliver the boost in capacity my right hon. Friend talks about.
Jason McCartney (Colne Valley) (Con): Like the Minister, I welcome the unpausing of the electrification of the trans-Pennine route, which my constituents will really appreciate. Will he confirm that when the new northern and trans-Pennine franchises are announced next month it will mean the end to the dreaded Pacer trains across the north?
Andrew Jones: My hon. Friend is a vigorous campaigner for rail in the north of England, especially in his constituency, and I am happy to confirm that the Pacers will disappear under the new franchises, which we expect to announce before Christmas.
Mr Clive Betts (Sheffield South East) (Lab): The Minister talks about the importance of trans-Pennine links, which currently are pretty awful. David Higgins described the links between Sheffield and Manchester as a matter of national concern. This is an important new clause—there are 12 pages of it, so it must be important. Just how will it help us to co-ordinate the delivery of HS3 with that of HS2—I have not found anyone in Government making that link—and how will it deliver a tunnel under the Pennines to replace the ridiculously slow Snake and Woodhead passes, which at present pass for road links between Sheffield and Manchester?
Andrew Jones: I caution the hon. Gentleman: the length of new clauses and amendments is not necessarily related to their importance. A sub-national transport body would provide a link between central and local government to ensure a united voice representing an area’s transport requirements and, as a result, to make more likely solutions that are tailored to local need. I agree with his basic point, however, that connections across the Pennines, especially between Sheffield and Manchester, are not good enough.
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Mr Betts: Will the Minister explain again? What role will the body play in looking at a road tunnel under the Pennines? Would it carry out the review of whether one is necessary? Would it commission the work? Or would it simply be advisory? How would it relate to HS2, given that that will need other transport links? What will its role be in that connection?
Andrew Jones: I am coming to that later, so perhaps I will address the hon. Gentleman’s points then.
Mr Andrew Turner: My right hon. Friend the Member for Wokingham (John Redwood) talked about trains and railways. Will these provisions also include ferries?
Andrew Jones: I am not the maritime Minister, so I am not in the best position to comment, but we are seeing huge growth in all our transport modes, and the capacity being injected into our ports is extremely welcome. As to what is happening to our ferries, however, I am afraid I will have to check and get back to my hon. Friend.
Our commitment to improving the road network includes upgrading motorways in the north of England to smart motorway standards; increasing capacity; improving sections of the A19 in the north-east to expressway standard; and improving access to many of our ports, including Hull and the port of Liverpool. I see the difference that projects such as the £690 million improvements to the A1—the biggest upgrade in the country—can make. It is delivering a motorway running to Newcastle for the first time in our country’s history. All over the north, there are schemes totalling £3 billion in the pipeline.
We are already working with Transport for the North on plans for east-west road and rail links to better connect the region so that northern towns and cities can pool their strengths and create a single economy. This includes work to identify the next generation of strategic road investments, building on the transformative schemes in the first road investment strategy. These could include a new road tunnel under the Peak district and major upgrades to other key east-west routes. TfN is also working closely with Highways England as it starts to develop its next programme of route strategies to inform investment decisions for the road period starting in 2020.
TfN is also exploring options to transform services between Sheffield and Manchester, to move towards a 30-minute journey time between Manchester and Leeds, to provide significant speed and capacity improvements between Liverpool and Manchester and between Leeds, Hull and Newcastle, and to bring forward integrated smart ticketing through a new Oyster card-like system of smartcards across the region, across multiple operators and across modes.
These are just a few examples of the good work being undertaken with the first body we expect to become a sub-national transport body. By working with properly established STBs across the country, we will ensure that money is spent on projects that will support growth in each area’s economy and, through that, the country as a whole. A joint interim report providing an update on progress since the first northern transport strategy will be published in the coming weeks.
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David Brown, formerly the chief executive officer of Merseytravel, has been appointed the CEO at TfN; and we expect to announce the new chair of TfN before the end of the year. While this work is progressing, the north needs a body with permanence and solidity rather than the current voluntary arrangements for TfN. That is why my right hon. Friend the Chancellor announced plans to establish TfN as a statutory body with statutory duties.
Putting TfN, and potentially others, on a statutory footing is a crucial symbol of our commitment to rebalancing the economy because it gives a clear leading role to planning and developing a programme for the north. It will provide TfN with the authority to enter into contracts and enable it to recruit staff to drive forward activity and give stakeholders and staff confidence in TfN as an organisation. Making it a statutory body, to which the Government are committed, shows long-term thinking and sends a clear message about this Government’s determination to join up transport planning to help drive economic growth.
Creating TfN as a statutory body, and others like it, means legislation is vital if we want to promote thinking about how to use transport to grow economies—not just now, but for 40 to 50 years into the future. This statutory status gives STBs the permanence and stability they need to do this crucial work. It means they will not be unduly constrained by political cycles or administrative boundaries. That is why the Government have moved quickly to develop legislation and allow TfN the certainty it needs about its future to deliver an ambitious programme. To ensure TfN is ready to look at improvements, not just now, but in the next Parliament and beyond, we are aiming to introduce the secondary legislation at the earliest opportunity, so that it will be established on a statutory footing no later than 2017.
The new clauses and amendments under discussion will not just fulfil our commitment, but help to deliver the programme to build a northern powerhouse that will be a step change for how decisions on transport policy are made across England. It will formalise local input into strategic investment so that TfN can advise on a transport strategy to boost growth and development to its areas. It will allow TfN and similar bodies to evolve with the potential to assume more strategic responsibilities over time.
This clause thus goes further than the northern powerhouse alone. It provides a way to create organisations similar to TfN across the whole of England, except London, at the request of local areas. For example, the newly strengthened Midlands Connect partnership brings together 26 local authorities and 11 local enterprise partnerships, working with national agencies and Government to drive forward improved transport links across the midlands to power the midlands engine. Midlands Connect tells us that improved transport links in the region could boost the economy by more than £1 billion a year, create 300,000 jobs and save businesses nearly £0.5 billion every year. This Government have provided £5 million to Midlands Connect to develop a transport strategy for the midlands, to set out credible long-term transport investment priorities for the region that will help build the midlands engine for growth this country needs.
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Simon Hoare (North Dorset) (Con): What my hon. Friend is saying makes sense, with transport being used as an economic growth driver. Can he confirm that the announcement he is making today in respect of this new clause will in no way either delay or undermine previous announcements about the A303, which brushes the north of my constituency? Is he able to update us on what progress is being made on the dualling of the A303—a vital artery to the south-west?
The Temporary Chair (Mrs Anne Main): It would be useful if the Minister could veer off the A303, which I am not aware is part of this Bill.
Andrew Jones: The A303 is not part of the Bill, but the A303, the A30 and the A358 are critical schemes in the Government’s first road investment strategy, which is being implemented between now and 2020-21. I can tell my hon. Friend that it is on track, and that we want to create much more resilient road access into the south-west.
Once this legislation is passed, the Midlands Connect partnership would be able to move forward in the process to become an STB alongside TfN, should that be the route its members wish to take. STBs will give localities a greater say in strategic transport planning for their region, because local people better know their economies and their development needs, and how growth can be maximised in their area.
Let me outline the detail of our proposal for the creation of these sub-national transport bodies. The new clause sets out the basic powers and responsibilities of all STBs. It will be for local areas to come to the Secretary of State with a proposal to form an STB. The Secretary of State’s role will be to consider and approve the proposal once consent from the authorities and a period of public consultation have been completed.
Graham Stringer: The section of the new clause that is headed “102M General powers” is drawn incredibly widely. Can the Minister tell us, in plain English, exactly what an STB can and cannot do? There is a generalised limitation in the next section, but given the width of the definition, it is not clear to me whether one of these bodies could turn itself into a housing or education authority.
4.30 pm
Andrew Jones: The new bodies are intended to create a link between Whitehall and Westminster and the constituent members of combined authorities. They will be able to develop transport plans for their areas, and come together to tackle issues that are currently decided here or in Whitehall rather than by local councils, relating to, for instance, longer-distance road or rail networks or systems that cross geographical areas, such as a smart ticketing system extending across the north. This is not about broadening their responsibilities to take powers away from other areas; it is about taking powers from Whitehall, increasing accountability, and ensuring that decisions are made locally.
John Redwood:
Will the Minister give us a little more detail about how the powers of the Secretary of State for Transport to improve and look after the national road network will be affected by the new
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powers providing for regional policies on roads? Presumably the Secretary of State will still be in charge of the national network.
Andrew Jones: The Secretary of State will still be in charge of the national network. He will still be the final decision-maker in relation to the overall national transport strategy, and the way in which money is allocated to different schemes and areas. At first, STBs will advise him on strategic transport priorities for their areas to help promote economic development, but over time they will be able to advise him on how they can develop their roles and take on more responsibilities for improving transport planning, or provide for other enhancements to economic development in their areas. The Secretary of State will not be made redundant by these developments.
Mr Betts: I am still not sure what role an STB will play. Will it be just an advisory body? Will it be just a planning body? Will it just help the Secretary of State to make decisions? How, in particular, will it relate to HS2 and HS3? Will it try to link those two bodies? Will it have any oversight of those developments?
Andrew Jones: STBs’ responsibilities will start with the development of plans for their areas, as the hon. Gentleman will know from the Transport for the North plan, which was published last year. As the STBs develop, I shall expect them to work with other bodies. A memorandum of understanding has already been signed by Transport for the North and Highways England so that they can inform each other’s plans. That is how we expect the arrangement to work. Decisions will be taken away from here and made on a more local basis, and the bodies will then collaborate in order to produce the right plans for their areas.
Subject to the Secretary of State’s agreement, affirmative secondary legislation will designate an area as an STB area. Consistent with enabling legislation, there will be no “one size fits all” approach. The governance for STBs will not be standardised across all of them, and the detail relating to each one will be set out in secondary legislation. Combined authorities and local transport authorities will make up the membership of each body. To ensure that STBs are accountable to the people whom they represent, each one will be overseen by a political-level board consisting of either metro mayors—where they have been established as part of the Government’s devolution programme—or the political leaders of the relevant constituent authorities. The Bill also specifies that the STBs will have a chair, and will enable, but not mandate, the Secretary of State to make regulations for their constitutional arrangements.
To ensure that each STB is established in a way that is right for the area for which it is working, the exact detail—such as the make-up of the board, quorums, the presence of any non-executives, and the appointment of a chair—will be left to individual pieces of secondary legislation, reflecting local plans and local need. The board will then be able to co-opt other members, such as representatives of local enterprise partnerships, to give local businesses a voice, or representatives of neighbouring authorities, to cover cross-border interests.
Initially each STB will advise the Secretary of State for Transport on strategic transport schemes and investment priorities for its own area. STBs will develop a long-term
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transport strategy which will set out with one voice the area’s view on transport’s role in its economic development. Within the lifetime of this strategy, the STB will then need to create shorter-term transport plans that will prioritise transport interventions to be delivered in given time periods, likely to be mapped on to road and rail investment cycles. This process is already under way within Transport for the North.
Over time, the Secretary of State may grant individual STBs additional responsibilities, through further secondary legislation, around the decision-making and delivery of transport schemes and significant cross-regional schemes, such as smart ticketing. The Secretary of State, and other public authorities including local and combined authorities, will not be able to overlook an STB’s transport strategy when developing their own transport strategies and plans. In return, this legislation requires STBs to consult with local government bodies, the Secretary of State for Transport and other interested parties within or without the STB, thereby ensuring it meets the expectations of all parties.
STBs will take a strategic-level view across an area to improve transport infrastructure and services, and address how that can support the economy. This involves assessing which transport schemes deliver most benefit from their investment, and how best to improve regional connectivity.
In creating STBs, the Government are demonstrating their commitment to work together with local areas to tackle those transport issues that cut across administrative boundaries, such as longer-distance road and rail, and find joint solutions that benefit people travelling across the region, such as smart ticketing. It is important to stress that this legislation gives all areas the opportunity to benefit from the establishment of STBs so their economies can grow. This is a key part of the work to help rebalance the economy outside London. Accordingly, I believe it is necessary for TfN, Midlands Connect and all future STBs to be enshrined as statutory bodies with appropriate statutory powers, and I commend this new clause to the House.
Mr Steve Reed: It is welcome to hear the consensus for devolution from all parts of the House this afternoon, and welcome, too, to hear the Minister tell us he is in listening mode. I hope so, because there is an awful lot still to work out across the Bill, including in the new clauses before us now. It will be important if we can build consensus around them so we have a solid foundation on which to build in the Bills that I am sure will follow this devolution Bill.
Labour wants to see the devolution of control over local transport so that trains, buses, trams and cycling can be properly integrated. I welcome the Government new clause. It is undoubtedly a step forward, but, like other parts of the Bill, it is limited by three factors: first, it does not go far enough; secondly, the funding and resourcing are not clear; and thirdly, it still keeps too much control in Whitehall. We would welcome further Government thinking on all those areas before we come to a final decision on the Bill.
Mr Andrew Turner: The hon. Gentleman listed three or four ways of getting around, but did not mention ferries. Where do they fit?
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Mr Reed: I am happy to add in any mode of transport that I inadvertently excluded from my list, and I am grateful to the hon. Gentleman for making that point.
Mr Reed: Has my hon. Friend thought of another mode of transport that I missed?
Graham Stringer: No. My hon. Friend mentioned buses. Does he share my surprise that we are discussing this Bill when the Government have still not produced the Bill that will allow these devolved authorities to reregulate the buses?
Mr Reed: I thank my hon. Friend for making that point. I hope that the Government will hear it while they are in listening mode, and that they will make the appropriate changes so that we can get maximum devolution and give local authorities back maximum control over their bus services.
New clause 34 will allow other regions to set up their own Transport for London-style models. TfL was an excellent Labour initiative but it was delivered 15 years ago. Helping other regions to catch up with London is the right thing to do, but it is a missed opportunity not to go significantly beyond that.
John Redwood: If the STB in a given area were to promote a road improvement that covered two different council areas, does the hon. Gentleman think that the STB should have the power to make one of the councils co-operate in the scheme if it did not wish to do so?
Mr Reed: That is a matter for the Government, but my view is that this should all be done through co-operation and negotiation, not through imposition. I hope that the right hon. Gentleman would not advocate any such imposition; I suspect that he would not.
The London Assembly has made the case that cities such as London need further devolved powers to integrate rail services with their surrounding commuter regions. That will apply to other regions across the country as well. It is not quite clear, however, what will be in scope in that regard. Perhaps this relates to the right hon. Gentleman’s question. It would be helpful to have clarification on that point, as we do not have long to go before the Bill reaches its Report stage. It would be helpful to have clarity before we reach the final vote on the Bill.
There is also the question of how new transport initiatives will be funded. Since 2010, local authorities have had their funding for bus services cut by 70%. The Department for Transport has recently signed up to a further 32% cut, which is likely to affect sustainable transport programmes for cycling and buses, once we see the full detail. All of this undermines the upgrades necessary to deliver effective transport integration, which is critical to making the system work efficiently and effectively for local people. Those decisions should not be taken centrally without involving the areas affected by them, and I hope that the Government will come forward with proposals to ensure that resourcing is also part of the negotiations with localities, along with the additional powers that they may or may not be able to acquire.
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Significant control over STBs is to be retained, in some cases quite unnecessarily. The new clause mentions the Secretary of State 39 times, but it mentions mayors just twice. Will mayors have a significant role within these organisations or not? We would welcome further clarification from the Government on what the precise role of the mayors will be. The Government are forcing mayors on to localities whether they want them or not, as a condition of devolution deals in the metropolitan areas, but they also seem to be denying the mayors certain powers. Either they are a central point of local accountability or they are not. We would like to see their powers over transport matters extended.
Under the provisions, authorities will still have to have their proposals approved by the Secretary of State, from whom they will also still get their funding. The Secretary of State will also be able to make provisions about how an STB is to carry out various functions. That does not seem radically different from where the ultimate authority lies now. We have seen what happens when this Government try to deliver transport projects with too much centralised control. We have seen the pausing, and the un-pausing, of the electrification of the TransPennine route, and we have seen airport expansion kicked into the long grass for decades. The Great Western main line electrification announced by Labour has also been delayed by the Tories, with its costs spiralling from under £550 million in 2011 to £2.8 billion today.
Despite the Minister’s fine words and the undoubted good intentions of the Secretary of State, it appears that the Government are still too timid to really let go. I hope that the listening mode they have declared they are in today means they will think about how they can go further with these proposals by the time we reach Report.
Mr Graham Allen: Mrs Main, I understand that it is in order to talk about the other clauses remaining to the House to discuss, including new clause 29, at this point, but I am happy to stand corrected.
The Temporary Chair (Mrs Anne Main): I am reliably informed that new clause 29 is in the next group.
Mr Allen: In which case I sit corrected.
The Temporary Chair: Does the Minister wish to come back in at this point?
Andrew Jones indicated dissent.
New clause 34 accordingly read a Second time, and added to the Bill.
4.45 pm
National framework for devolution of fiscal powers
“Within twelve months of the passing of this Act, the Secretary of State must publish a framework for further devolution of fiscal powers, including but not limited to, setting and revaluating local tax rates, banding and discounts.”—(Mr Reed.)
This new Clause would require the Secretary of State to set out a framework for further devolution of fiscal powers.
Brought up, and read the First time.
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Mr Steve Reed: I beg to move, That the clause be read a Second time.
The Temporary Chair: With this it will be convenient to discuss the following:
New clause 29—The Local Government Independence Code—
‘(1) There shall be a Code, to be known as “the Local Government Independence Code”, the principal purpose of which shall be to define and regulate the relationship between central and local government.
(2) A court or tribunal determining a question which has arisen in connection with the functions of a local authority, or of the Secretary of State or other public authority in relation to any local authority, must take into account the provisions of the Code.
(3) Schedule (The Local Government Independence Code) which—
(a) sets out the terms of the Code,
(b) makes provision about the application of the Code, and requires public authorities, including central and local government, to comply with the Code,
(c) makes provision for amending the Code,
(d) requires that, where it is possible to do so, primary legislation and subordinate legislation must be read and given effect in a way which ensures compliance with the Code, and makes provision for the amending of legislation where it is found not to be compatible with the Code,
(e) makes provision about remedial orders to amend legislation,
(f) makes provision for Ministers to make, or refuse to make, a statement that a Bill is compatible with the Code,
(g) amends the Parliament Act 1911 so as to exclude any Bill seeking to amend this Act from the provisions of the Parliament Act 1911,
(h) provides for amendments which are consequential on the making of the Code to certain enactments relating to local authorities, and
(i) requires the Secretary of State to provide for the review of provisions in pre-commencement legislation to assess their compatibility with the provisions of the Code,
The intention of this new Clause is to define the independence of local government and to regulate the relationship between local and central government in England by means of a statutory Code.
New clause 30—Reduction in petition threshold—
‘(1) The Local Government Act 2000 is amended as follows.
(2) In section 34(4) (minimum number of local government electors for a local authority’s area who must support any petition presented to the authority), for “5 per cent” substitute “1 per cent”.’
This amendment would reduce the minimum number of local government electors for a local authority’s area who must support any petition presented to the authority from 5 per cent to 1 per cent.
New clause 31—Mayors of combined authorities: Further functions—
‘(1) After section 107E of the Local Democracy, Economic Development and Construction Act 2009 (inserted by section 6 above) insert—
“107F Functions of mayors: alcohol pricing
(1) The Secretary of State may by order make provision for a mayor of a mayoral combined authority to have the power to set a minimum unit price for alcohol that is sold within that combined authority area.
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(2) An order made under subsection (1) above must include a provision that such a power may be exercised by a mayor only following a consultation which includes local residents on the proposed level of the minimum unit price for alcohol.”’
New clause 32—Devolution to combined authorities: the family test—
‘(1) As soon as practicable after 31 March each year a mayoral combined authority in England shall produce and publish a report setting out its performance in applying the family test headings set out in subsection (3) over the most recent year to 31 March.
(2) In applying the family test, the mayoral combined authority must consider the impact of its policies and performance under each of the family test headings set out in subsection (3) and consider any guidance issued by the Secretary of State.
(3) The family test headings are—
(b) families going through key transitions such as becoming parents, getting married, fostering or adopting, bereavement, redundancy, new caring responsibilities or the onset of a long-term health condition;
(c) all family members’ ability to play a full role in family life, including with respect to parenting and other caring responsibilities;
(d) families before, during and after couple separation; and
(e) those families most at risk of deterioration of relationship quality and breakdown.
(4) An overview and scrutiny committee of the mayoral combined authority shall review the report within four months of its publication.
(5) The Secretary of State may issue guidance to mayoral combined authorities on applying the family test and on reporting on the test.”
This new Clause would require mayoral combined authorities in England to report annually on their performance in relation to the DWP’s Family Test (October 2014) and for an overview and scrutiny committee to examine the contents of the report.
New clause 33—Parish Councils: Power of parish council to sell electricity—
‘In Section 44 (1)(b) of the Local Government (Miscellaneous Provisions) Act 1976 insert “11” between “1” and “16”.’
This amendment will allow parish councils to be able to sell electricity that it generates.
New clause 36—Regard to neighbouring authorities—
‘In exercising a devolved function, combined authorities must have regard to any significant direct impact on the population of neighbouring authorities.’
This clause raises the concerns of some authorities which neighbour devolved authorities and ensures that combined authorities which have devolved functions give regard to the possible impact on neighbouring populations, particularly over issues such as transport and health.
New clause 37—Disqualification for election and holding office as a Member of a local authority—
‘In section 80 (1)(d) of the Local Government Act 1972, omit “for a period of not less than three months without the option of a fine”.’
This New Clause would extend the current disqualification regime to councillors sentenced to any custodial sentence (including a suspended sentence), instead of applying only to councillors sentenced to a term of imprisonment of at least three months.
New clause 38—Enabling devolution to joint committees in London—
‘(1) Following a written request from either—
(a) a voluntary joint committee of London councils, or
(b) a voluntary joint committee of London councils and the Mayor of London,
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the Secretary of State may by order make arrangements for a function of a Minister of the Crown or a Government Department to be delegated to that joint committee, formed under Section 101 of the 1972 Local Government Act.
(2) The voluntary joint committee may make such provision as is necessary in relation to—
(a) voting powers required to protect minority interests;
(b) the membership and process for individual authorities to enter or leave;
(c) the executive arrangements of the joint committee;
(d) arrangements for the administration and transfer of property and other liabilities.
(3) A request made under subsection (1) above must have the agreement of all constituent members of the joint committee.
(a) London borough councils, and(b) the Common Council of the City of London;
“joint committee” has the same meaning as in the Local Government Act 1972;
“Minister of the Crown” has the same meaning as in the Ministers of the Crown Act 1975.
(5) A function is eligible for the purposes of subsection (1) above if—
(a) it does not consist of a power to make regulations or other instruments of a legislative character or a power to fix fees or charges, and
(b) the Secretary of State considers that it can be appropriately exercised by the joint committee.
(6) No delegation under subsection (1) above, and no variation of a delegation under subsection (1) above can be made without the agreement of all constituent members of the relevant voluntary joint committee.
(7) Before making or varying a delegation under subsection (1) above, the Secretary of State must consult—
(b) The Common Council of the City of London;
(c) The Mayor of London (in the case of a joint committee of London councils and the Mayor of London).
(8) The Secretary of State may make arrangements for the transfer from the Crown to the relevant joint committee of such property, rights or liabilities as the Secretary of State considers appropriate to the discharge of the function delegated under subsection (1).
(9) If an order made under this section would be treated for the purposes of the standing orders of either House of Parliament as a hybrid instrument, it is to proceed in that House as if it were not a hybrid instrument.’
This clause would support further devolution of Ministerial functions to London by providing for decision-making arrangements to enable operational delegation to groups of London local authorities and for the strategic governance of devolved responsibilities to be shared between London councils and the Mayor through an appropriately constituted joint committee.
New clause 39—Environmental consideration—
‘No later than three months after the passing of this Act, the Secretary of State shall prepare guidance on effective strategic planning for combined authorities including in the areas of—
(a) mitigation of and adaptation to impacts of climate change;
(b) natural resource use including water management;
(c) delivery of low-carbon energy sources and infrastructure;
(d) landscape-scale conservation, including green infrastructure.’
This new clause places a duty on the Secretary of State to set out guidance on how co-operation between combined authorities can be strengthened to mitigate environmental problems and develop green infrastructure.
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New schedule 2—The Local Government Independence Code—
‘1 Chapter 4ZA and Chapter 4A of Part 1 of the Local Government Finance Act 1992 are repealed.
(a) defines the relationship between central government and local authorities; and
(b) makes provision about the financial independence and conduct of local authorities.
(2) For the avoidance of doubt, nothing in this Code shall affect the rights of individuals; and individuals may continue to seek judicial review of any action by a public authority which they regard as unjust or as infringing their rights.
Local Autonomy and Local Self-Government
3 (1) Local authorities’ accountability is to their electorates.
(2) Local authorities are autonomous, democratically-elected bodies which independently decide upon, administer and regulate public affairs and deal with all matters of concern within their boundaries to the extent that such matters are not the statutory responsibility of another body.
(3) Local authorities shall continue to operate within the rule of law.
(4) Local authorities shall continue to operate with full legal personality and under a general power of competence. Subject to sub-paragraph (4), local authorities may pass measures on matters affecting the affairs and interests of their area.
Scope of Local Government
4 (1) The powers and responsibilities of local authorities will continue to be prescribed by statute.
(2) Local authorities shall have power to exercise their initiative with regard to any matter which is not statutorily excluded from their competence or assigned to another body.
(3) Central government may not propose actions which are intended to, or may reasonably be regarded as being likely to, infringe the independence of local government, as defined in this Code, or affect local government generally or any local authority, unless local government generally, or the local authority concerned, consents.
Inter-Governmental Activities
5 Central government and local authorities shall establish joint inspection regimes to set and monitor the standards of services supplied or secured by them.
Territorial Autonomy
6 The geographical boundary of a local authority can be altered only by a proposal from the local authority itself or from its electorate. Local authorities must make arrangements for their electorates to put forward such proposals for consideration. Any such locally-inspired proposal for boundary changes, whether initiated directly by the authority or by the electorate of the authority, must be developed with the involvement of the Local Government Boundary Commission for England and shall be subject to approval of the electorate of the area concerned, under arrangements made by the local authority concerned and approved by the Electoral Commission.
Council Governmental Systems
7 (1) The electorate of each local authority, through methods agreed by the local authority concerned, shall have the power to choose that authority‘s internal political decision-making systems. The systems concerned shall include a directly elected mayor and cabinet, a cabinet and leader, a committee system, or any other political decision-making arrangement which the electorate may decide is appropriate.
(2) The electorate of each local authority, through methods agreed by their local authorities, may, after a process of consultation carried out by the local authority concerned, agree to and adopt any electoral system for use in elections to that authority.
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Local Government Financial Integrity
8 (1) Local authorities shall be financially independent of central government, save as otherwise provided for in this Code.
(2) Central government may not place any restriction on decisions by local authorities about the exercise of their financial powers.
(3) The distribution of central government funds between local authorities shall continue on the basis of existing equalisation arrangements. Distribution will continue to be based on the principle of ensuring fairness and balance between local authorities. The basis on which this distribution is carried out must continue to be made public.
(4) Each local authority shall receive from central government a guaranteed share of the annual yield of income tax, as follows. Central government must in each financial year assign to the Secretary of State responsible for the distribution of central government funds between local authorities an amount of money equivalent to the yield from ten pence in the pound of income tax. The Secretary of State must make arrangements to inform each taxpayer in England of the amount of their income tax which makes up the central government funding distributed to English local authorities as a whole.
(5) The amount of the income tax yield referred to in paragraph 8(4) shall be re-negotiated between central and local government whenever service provision responsibilities are transferred between central government and local authorities.
(6) Local authorities may raise additional sources of income in their areas in any way they wish, and with the consent of their electorates as expressed through arrangements to be determined and put in place by the local authority concerned.
(7) Local authorities shall be able to raise any loans, bonds or other financial instruments which their credit rating allows and as independent entities will be exclusively responsible for their repayment. All local authorities shall operate “a balanced budget” so that in any one financial year all outgoings, including interest repayments on borrowings, shall not exceed income.
(8) Central government may not cap, or in any other way limit, local authorities’ taxation powers.
(9) The financial transparency standards that apply to central government shall apply to local authorities.
(10) Central government and local authorities may contract with each other in order to pursue their own policy objectives.
Local Authorities’ right to co-operate and associate
9 (1) Local authorities are entitled, in pursuit of any undertaking, to co-operate in any way with any other persons, including local authorities, public and private bodies, voluntary, charity or third-sector organisations, and financial, commercial or private enterprises.
(2) Where more than one local authority is responsible for services in a geographic area, those local authorities shall co-operate so as to maximise the well-being of those living or working in that area.
(3) Local authorities may join any association for the protection and promotion of their common interests and may belong to an international association of any sort.
Decision-making
10 The administration of any local referendum or other vote on proposals put forward by the electorate of any local authority, or other local decision-making processes involving a public vote, shall adhere to standards set by the Electoral Commission; and those responsible for the conduct of any such decision-making processes shall be accountable to the Electoral Commission for their performance against those standards.
Legal Protection of Local Government
11 Local authorities may seek a judicial remedy in order to secure the free exercise of their powers, and any other principles of local self-government or individual rights contained within this Code or otherwise enshrined in law.
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Application of and Compliance with the Code: acts of public authorities
12 It is unlawful for a public authority to act in a way which is not in compliance with the Code.13 Paragraph 12 does not apply to an act of a local authority if—
(a) as the result of one or more provisions of primary legislation, the authority could not have acted differently; or
(b) in the case of one or more provisions of, or made under, primary legislation which cannot be read or given effect in a way which is compatible with the Code, the authority was acting so as to give effect to or enforce those provisions.
14 In this Schedule “public authority” includes central government, local authorities and any other person certain of whose functions are functions of a public nature, but does not include either House of Parliament or persons exercising functions in connection with proceedings in Parliament; and “an act” includes a failure to act.
Proceedings
15 (1) A person who claims that a public authority has acted (or proposes to act) in a way which is made unlawful by paragraph 12 may—
(a) bring proceedings against the authority under this Act in the appropriate court or tribunal, or
(b) rely on the Code in any legal proceedings.
(2) In sub-paragraph (1)(a) “appropriate court or tribunal” means such court or tribunal as may be determined in accordance with rules; and proceedings against an authority include a counterclaim or similar proceeding.
(3) If the proceedings are brought on an application for judicial review, the applicant must have a sufficient interest in relation to the act.
(4) Proceedings under sub-paragraph (1)(a) must be brought before the end of—
(a) the period of one year beginning with the date on which the act complained of took place; or
(b) such longer period as the court or tribunal considers equitable having regard to all the circumstances, but that is subject to any rule imposing a stricter time limit in relation to the procedure in question.
(5) In sub-paragraph (1)(b) “legal proceedings” includes—
(a) proceedings brought by or at the instigation of a public authority; and
(b) an appeal against the decision of a court or tribunal.
(6) Nothing in this Act creates a criminal offence.
(7) In this paragraph “person” includes a local authority.
Judicial remedies
16 (1) In relation to any act (or proposed act) of a public authority which the court finds is (or would be) unlawful, it may grant such relief or remedy, or make such order, within its powers as it considers just and appropriate.
(2) But damages may be awarded only by a court which has power to award damages, or to order the payment of compensation, in civil proceedings.
(3) No award of damages is to be made unless, taking account of all the circumstances of the case, including—
(a) any other relief or remedy granted, or order made, in relation to the act in question (by that or any other court), and
(b) the consequences of any decision (of that or any other court) in respect of that act, the court is satisfied that the award is necessary to afford just satisfaction to the person in whose favour it is made.
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“damages” means damages for an unlawful act of a public authority; and
“unlawful” means unlawful under paragraph 15.
Amendment of the Code
17 (1) The Secretary of State may by order make such amendments to the Code as the Secretary of State considers appropriate.
(2) Before making an order under sub-paragraph (1), the Secretary of State must consult—
(b) such representatives of local government, and
(c) such other persons (if any), as the Secretary of State considers appropriate.
(3) Any orders for amendments made by the Secretary of State are subject to the procedures set out in paragraphs 17 to 19 of this Schedule.
Limits on power of Secretary of State to amend the Code
18 (1) The Secretary of State may not make provision under paragraph 16(1) unless the Secretary of State considers that the conditions in sub-paragraph (2) are satisfied in relation to that provision.
(2) Those conditions are that—
(a) the provision does not reduce the powers or discretion of local authorities unless the Secretary of State objectively considers that the effect of the provision is proportionate to the policy objective intended to be secured by the provision;
(b) the provision does not remove any necessary protection for local government or breach the obligations arising under the European Charter of Local Self-Government; and
(c) an order under paragraph 16(1) may not make provision to abolish or vary any tax.
Procedure for orders under paragraph 1
19 (1) If, as a result of any consultation required by paragraph 16(2), it appears to the Secretary of State that it is appropriate to change all or any part of the Secretary of State‘s proposals, the Secretary of State must undertake such further consultation with respect to the changes as the Secretary of State considers appropriate.
(2) If, after the conclusion of the consultation required by paragraph 16(2), the Secretary of State considers it appropriate to proceed with the making of an order under paragraph 16(1), the Secretary of State must lay before Parliament—
(b) an explanatory document explaining the proposals and giving details of—
(i) the Secretary of State‘s reasons for considering that the conditions in paragraph 17(2) are satisfied in relation to the proposals,
(ii) any consultation undertaken under paragraph 16(2),
(iii) any representations received as a result of the consultation, and
(iv) any changes made as a result of those representations.
Super-affirmative resolution procedure
20 (1) A super-affirmative resolution procedure shall apply in relation to the making of an order pursuant to a draft order, as follows.
(2) The Minister must have regard to—
(b) any resolution of either House of Parliament, and
(c) any recommendations of a committee of either House of Parliament charged with reporting on the draft order, made during the 60-day period with regard to the draft order.
(3) If, after the expiry of the 60-day period, the Minister wishes to make an order in the terms of the draft, he must lay before Parliament a statement—
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(a) stating whether any representations were made under sub-paragraph (2)(a), and
(b) if any representations were so made, giving details of them.
(4) The Minister may, after the laying of such a statement, make an order in the terms of the draft if it is approved by a resolution of each House of Parliament.
(5) However, a committee of either House charged with reporting on the draft order may, at any time after the laying of a statement under sub-paragraph (3) and before the draft order is approved by that House under sub-paragraph (4), recommend under this subsection that no further proceedings be taken in relation to the draft order.
(6) Where a recommendation is made by a committee of either House under sub-paragraph (5) in relation to a draft order, no proceedings may be taken in relation to the draft order in that House under sub-paragraph (4) unless the recommendation is, in the same Session, rejected by resolution of that House.
(7) If, after the expiry of the 60-day period, the Minister wishes to make an order consisting of a revised version of the draft order, the Minister must lay before Parliament—
(a) a revised draft order; and
(b) a statement giving details of—
(i) any representations made under sub-paragraph (2)(a); and
(8) The Minister may, after laying a revised draft order and statement under sub-paragraph (7), make an order in the terms of the revised draft if it is approved by a resolution of each House of Parliament.
(9) However, a committee of either House charged with reporting on the revised draft order may, at any time after the revised draft order is laid under sub-paragraph (7) and before it is approved by that House under sub-paragraph (8), recommend under this subsection that no further proceedings be taken in relation to the revised draft order.
(10) Where a recommendation is made by a committee of either House under sub-paragraph (9) in relation to a revised draft order, no proceedings may, be taken in relation to the revised draft order in that House under sub-paragraph (8) unless the recommendation is, in the same Session, rejected by resolution of that House.
(11) For the purposes of sub-paragraphs (4) and (8) an order is made in the terms of a draft order if it contains no material changes to the provisions of the draft order.
(12) In this schedule the “60-day period” means the period of 60 days beginning with the day on which the draft order was laid before Parliament under sub-paragraph(4).
(13) In calculating any period of days for the purposes of this section, no account shall be taken of any time during which Parliament is dissolved or prorogued or during which either House is adjourned for more than four days.
21 A resolution of either House is valid for the purposes of this schedule if, and only if, the motion for the resolution—
(a) is agreed without a division; or
(b) is passed on a division in which the number of members who vote in favour of the motion is a number equal to or greater than two-thirds of the number of seats in the House (including vacant seats).
Interpretation of Legislation
22 (1) So far as it is possible to do so, primary legislation and subordinate legislation must be read and given effect in a way which is compatible with the Code.
(a) applies to primary legislation and subordinate legislation whenever enacted;
(b) does not affect the validity, continuing operation or enforcement of any incompatible primary legislation; and
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(c) does not affect the validity, continuing operation or enforcement of any incompatible subordinate legislation if (disregarding any possibility of revocation) primary legislation prevents removal of the incompatibility.
Declaration of Incompatibility
23 (1) Sub-paragraph (2) applies in any proceedings in which a court determines whether a provision of primary legislation is compatible with the Code.
(2) If the court is satisfied that the provision is incompatible with the Code, it may make a declaration of that incompatibility.
(3) Sub-paragraph (4) applies in any proceedings in which a court determines whether a provision of subordinate legislation, made in the exercise of a power conferred by primary legislation, is compatible with a provision of the Code.
(4) If the court is satisfied—
(a) that the provision is incompatible with the Code, and
(b) that (disregarding any possibility of revocation) the primary legislation concerned prevents removal of the incompatibility, it may make a declaration of that incompatibility.
(5) In this paragraph “court” means the Supreme Court; the Court of Appeal; and the High Court.
(6) A declaration under this paragraph (“a declaration of incompatibility”)—
(a) does not affect the validity, continuing operation or enforcement of the provision in respect of which it is given; and
(b) is not binding on the parties to the proceedings in which it is made.
Power to take remedial action
24 (1) This paragraph applies if—
(a) a provision of legislation has been declared under paragraph 22 to be incompatible with the Code and, if an appeal lies—
(i) all persons who may appeal have stated in writing that they do not intend to do so;
(ii) the time for bringing an appeal has expired and no appeal has been brought within that time; or
(iii) an appeal brought within that time has been determined or abandoned; or
(b) it appears to the Secretary of State that, having regard to any finding of his under section 5(1) of the Localism Act 2011, a provision of legislation is incompatible with the Code.
(2) If a Minister of the Crown considers that there are compelling reasons for proceeding under this section, he may by order make such amendments to the legislation as he considers necessary to remove the incompatibility.
(3) If, in the case of subordinate legislation, a Minister of the Crown considers that—
(a) it is necessary to amend the primary legislation under which the subordinate legislation in question was made, in order to enable the incompatibility to be removed, and
(b) there are compelling reasons for proceeding under this paragraph, he may by means of a remedial order make such amendments to the primary legislation as he considers necessary.
(4) This paragraph also applies where the provision in question is in subordinate legislation and has been quashed, or declared invalid, by reason of incompatibility with the Code and the Minister proposes to proceed under paragraph 25(b).
(5) If the legislation is an Order in Council, the power conferred by sub-paragraph (2) or (3) is exercisable by Her Majesty in Council.
Remedial Orders
(a) contain such incidental, supplemental, consequential or transitional provision as the person making it considers appropriate;
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(b) be made so as to have effect from a date earlier than that on which it is made;
(c) make provision for the delegation of specific functions;
(d) make different provision for different cases.
(2) The power conferred by sub-paragraph (1)(a) includes—
(a) power to amend primary legislation (including primary legislation other than that which contains the incompatible provision); and
(b) power to amend or revoke subordinate legislation (including subordinate legislation other than that which contains the incompatible provision).
(3) A remedial order may be made so as to have the same extent as the legislation which it affects.
(4) No person is to be guilty of an offence solely as a result of the retrospective effect of a remedial order.
Procedure
26 No remedial order may be made unless—
(a) a draft of the order has been approved by a resolution of each House of Parliament made after the end of the period of 60 days beginning with the day on which the draft was laid; or
(b) it is declared in the order that it appears to the person making it that, because of the urgency of the matter, it is necessary to make the order without a draft being so approved.
Orders laid in draft
27 (1) No draft may be laid under paragraph 25(a) unless—
(a) the person proposing to make the order has laid before Parliament a document which contains a draft of the proposed order and the required information; and
(b) the period of 60 days, beginning with the day on which the document required by this sub-paragraph was laid, has ended.
(2) If representations have been made during that period, the draft laid under paragraph 25(a) must be accompanied by a statement containing—
(a) a summary of the representations; and
(b) if, as a result of the representations, the proposed order has been changed, details of the changes.
Urgent cases
28 (1) If a remedial order (“the original order“) is made without being approved in draft, the person making it must lay it before Parliament, accompanied by the required information, after it is made.
(2) If representations have been made during the period of 60 days beginning with the day on which the original order was made, the person making it must (after the end of that period) lay before Parliament a statement containing—
(a) a summary of the representations; and
(b) if, as a result of the representations, he considers it appropriate to make changes to the original order, details of the changes.
(3) If sub-paragraph (2)(b) applies, the person making the statement must—
(a) make a further remedial order replacing the original order; and
(b) lay the replacement order before Parliament.
(4) If, at the end of the period of 120 days beginning with the day on which the original order was made, a resolution has not been passed by each House approving the original or replacement order, the order ceases to have effect (but without that affecting anything previously done under either order or the power to make a fresh remedial order).
Definitions
29 In this Schedule—
“representations” means representations about a remedial order (or proposed remedial order) made to the person making (or proposing to
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make) it and includes any relevant Parliamentary report or resolution; and
(a) an explanation of the incompatibility which the order (or proposed order) seeks to remove, including particulars of the relevant declaration, finding or order; and
(b) a statement of the reasons for proceeding under paragraph (23) and for making an order in those terms.
Calculating periods
30 In calculating any period for the purposes of this Schedule, no account is to be taken of any time during which—
(a) Parliament is dissolved or prorogued; or
(b) both Houses are adjourned for more than four days.
Statements of Compatibility
31 (1) A Minister of the Crown in charge of a Bill in either House of Parliament must, before Second Reading of the Bill—
(a) make a statement to the effect that in his view the provisions of the Bill are compatible with the provisions of the Code (“a statement of compatibility”); or
(b) make a statement to the effect that although he is unable to make a statement of compatibility the government nevertheless wishes the House to proceed with the Bill.
(2) The statement must be in writing and be published in such manner as the Minister making it considers appropriate.
Amendment to the Parliament Act 1911
32 In section 2(1) of the Parliament Act 1911 the words “or a Bill seeking to amend the Local Government Independence Code Act” shall be inserted after the words “maximum duration of Parliament beyond five years”.
Amendments to other Enactments
33 (6A) The general power of competence includes the power to raise revenue through any method including although not limited to local taxation, levies and duties.”
34 Schedule 6 of the Localism Act 2011 is repealed.
Duty to review provisions in primary and subordinate legislation
35 (1) The Secretary of State shall, within six months of the passing of this Act, make provision by Order to provide for the review of all provisions in pre-commencement primary and subordinate legislation to assess their compatibility with the provisions of the Code.
(a) provision requiring the review of the compatibility of pre- commencement legislation to be completed within a five year period, commencing with the date of passing of this Act;
(b) provision for incompatible pre-commencement legislation to cease to have effect no later than the end of a seven year period, commencing with the date of passing of this Act.
(3) The provision that may be made by virtue of subsection (2)(a) includes provision requiring the person to consider whether the objectives which it was the purpose of the legislation to achieve remain appropriate and, if so, whether they could be achieved in another way.
36 (1) In this schedule, “pre-commencement legislation” means a provision that—
(a) is contained in any other Act passed no later than the end of the Session in which this Act is passed, or
(b) is contained in an instrument made under any other Act and comes into force before the commencement of section 1 of this Act.
(2) Subordinate legislation under paragraph (35)1 may make transitional, consequential, incidental or supplementary provision or savings in connection with such provision.’
This new Schedule provides details relating to implementation of the new Clause on the Local Government Independence Code.
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Mr Reed: I understand that it is appropriate briefly to mention the issue of Sunday trading when talking about this group. Last month, the Prime Minister declared at the Dispatch Box:
“we will be putting”—
“in front of the House, in the Cities and Local Government Devolution Bill”—[Official Report, 21 October 2015; Vol. 600, c. 947.]
That was despite the fact that in April he wrote that he had no plans to change the Sunday trading laws and that
“the current system provides a reasonable balance.”
That measure is not before us today; the Government clearly could not get the support that they need. Could we hear from the Minister whether the Government are now ruling it out in this Bill entirely?
The Temporary Chair: I suggest to the hon. Gentleman that the provision is not there and that we cannot debate what is not before the Committee.
Mr Reed: Absolutely, Mrs Main, although the Minister was courteous enough to respond to a point on this issue earlier in the debate and it would be helpful to know that the Government are not proposing to bring it back on Report next week.
New clause 24 stands in my name and those of my hon. Friends. Devolution without fiscal powers is not ambitious enough. As Labour said on day one of this Committee, allowing councils greater fiscal powers would allow them to build greater stability into the system. The Government should commit to providing devolved regions with the resources they need, so that they are not being set up to fail. The Bill cannot just be a means of devolving the blame for cuts made in No. 11 Downing Street; devolution is a much bigger agenda than that, and we have heard support for that view from Members in all parts of the House during this afternoon’s debate and during the passage of this Bill. There are problems with the funding of regional economic growth: local enterprise partnerships can be inefficient; and local areas need long-term commitment and resources from the Government. Regional development agencies, which LEPs replaced, were able to make single three-year funding agreements.
James Wharton: I am responsible for LEPs, and I recognise that there are some great LEPs and others that can be improved. The hon. Gentleman says that they can be inefficient, but will he say which ones he is talking about, because I will then have a look?
Mr Reed:
I am not going to name individual LEPs at this stage in the debate. If the Minister talks to LEPs, he will find that they agree with my view. I used to sit on the board of a LEP until three years ago. They have access to much smaller budgets than RDAs could have and to far too many small funding pots. The model is too fragmented and too short term. I suggest that he speaks to some of the LEPs if he does not think that there is room for improvement along those lines, because I think he will hear from them what he has been hearing from me this afternoon. What the LEPs are looking for and what they need is longer-term horizons if they are to act more strategically. The Government need to
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understand the need for more local decision making and fewer centrally imposed constraints, and making these changes to LEPs would be a step forward in allowing that to happen.
England’s local government finance settlement is one of the most centralised anywhere in the world. Councils lack the freedom they need to innovate to the maximum and to spend as much as they would like on local priorities. Even London, which is currently more devolved than anywhere else in the country, is reliant on central Government for three quarters of its funding. That compares with figures of just 30% in New York and 25% in Berlin. London is a world city and it is competing with other world cities that have much more control over their own destinies. London does not need to be kept on such a tight leash, and nor do the other cities and regions across the United Kingdom that also hope to grow their roles in the future.
The Communities and Local Government Committee concluded that local authorities in England have limited control over local taxation and, as a consequence, rely by comparison disproportionately on central Government funding. New clause 24 does not prescribe a particular settlement, but calls on the Secretary of State to publish a framework for further devolution of fiscal powers that is in keeping with the approach that the Government have taken throughout this Bill including, but not limited to, setting and re-evaluating local tax rates banding and discounts. We would like the Government at least to consider allowing councils to add additional council tax bands at the top and the bottom of the scale. That would allow for very large properties to be charged more and for smaller properties to be charged less, which is a move towards a more progressive model of taxation.
I have some experience in this area. Before I came to this House, I was leader of Lambeth council. We froze council tax for six years after taking over from a Tory-Liberal Democrat administration that had pushed up council tax by 24% in a single year. The Government need not worry about profligate Tory or Lib Dem councils behaving in that way, because they are accountable to their local electorate. However, that should not be used as an excuse to prevent more localisation together with a fair equalisation mechanism operating across the country. I hope that we will hear more about that during the autumn statement in just a few weeks’ time. The Bill strikes me as another appropriate place to be putting in some of those measures to drive forward the devolution agenda and the ability of local councils to ensure that they have the resources that they need to exercise fully the powers that they will increasingly be acquiring.
The Government can and should go further. They are devolving some of the powers, but little of the money. Devolution without the resources to make it work is not ambitious devolution; it is devolution where the Secretary of State remains the puppet master pulling all the strings, too often afraid to let go.
On new clause 34, we welcome the fact that new sub-national transport bodies must consult adjoining authorities before making a proposal. On transport, the Government have recognised that the devolution of powers to combined authorities concerns neighbouring authorities that are not part of those combined authorities, but are affected by their decisions. I am thinking about
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areas such as Plymouth in relation to Cornwall, Chesterfield in relation to Sheffield, and Warrington in relation to Greater Manchester. This is an important principle, but it extends to other areas beyond transport.
Decisions made over health, for example, could have an impact on neighbouring populations. I am thinking about proposals for hospital closures, new hospitals, and reconfiguration of regional or strategic health services. Decisions over Sunday trading could also have an effect should those plans go ahead—of course I hope that they will not.
New clause 36 would ensure that regard is given to neighbouring authorities affected by devolution deals. It would be on the same principle as the Government’s new clause 34, so I cannot imagine what objection the Government might have to it. If we want to build support for devolution and not to fuel resentment, this clause needs to be included, and we intend to test the will of the Committee on it by pressing it to a vote.
Finally, let me turn to new clause 39 on environmental considerations. This new clause places a duty on the Secretary of State to set out guidance on how co-operation between combined authorities can be strengthened to mitigate environmental problems and develop green infrastructure. The Royal Society for the Protection of Birds has carried out an assessment of the current devolution proposals and found that there is an appetite among local councils for greater co-operation on environmental priorities.
The duty to co-operate is not currently strong enough, and local planning can fail to take into consideration the ability of the community to build a positive vision for the local environment. Such changes would strengthen and improve this Bill. I am interested to hear the Government’s position on them when the Minister has an opportunity to respond.
Robert Neill (Bromley and Chislehurst) (Con): I commend the hon. Member for Croydon North (Mr Reed) on the sentiments of his speech, if not entirely on the detail, because many of us have some sympathy for the need for further fiscal devolution and will be interested to see what form that can eventually take. With no disrespect to those broader issues, I shall refer to new clause 38, which stands in my name and those of my hon. Friend the Member for Ruislip, Northwood and Pinner (Mr Hurd) and the hon. Member for Brentford and Isleworth (Ruth Cadbury) and which relates specifically to enabling devolution to joint committees in London. That might sound technical, but it is actually important. I stress that new clause 38 is signed by the three of us on a cross-party basis. In fact, it is supported by the all-party parliamentary group for London, by London Councils on a cross-party basis and by the Mayor of London. So this is a London ask to the Government.
New clause 38 essentially relates to the fact that, as certainly I and a number of right hon. and hon. Members on both sides of the House said on Second Reading, it is sometimes thought that devolution in London is a job done. Well, it is not; more remains to be done on devolution in London. The Government recognise that fact—potential means of devolution to the Mayor and to London boroughs have already been discussed—but the purpose of new clause 38 is to probe the Government’s thinking a little, and I shall be interested to hear the Minister’s response on precisely what legislative framework
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is required to achieve devolution to the Mayor and to London boroughs, either for all of London in some cases or specifically, as would be allowed under these proposals, to parts of London.
We have been talking about the various devolution deals. I was delighted to hear two of them announced today. Of course, they are important and they rightly vary from place to place. Well, the same applies to London. By its very nature and size, London is infinitely bigger than any other city and any other potential devolution deal. For that reason and because of its nature and complexity—although with the directly elected Mayor and the Greater London Authority, it was the first to have a form of devolution of the kind that the Government envisage, which we welcome being rolled out elsewhere—it has different governance arrangements. In particular, we must recognise the role of the 32 London boroughs—far more than in any other proposed combined mayoral authority—as well as that of the London Assembly.
John Howell (Henley) (Con): My hon. Friend is talking specifically about London, but as the devolution deal goes through, will it not also need to be reflected in the broader picture—for example, if there were a mayor for Oxfordshire and a number of combined authorities?
Robert Neill: My hon. Friend makes an entirely fair point, and I recognise his long experience in local government and his interest in the matter throughout his time in the House. It is perfectly true that we must look at the situation in the shire counties, particularly where two-tier arrangements apply. I very much hope that we will see county devolution deals as well, because the strategic counties of England are potentially just as much economic drivers as our great cities, but we will need tailored governance arrangements to recognise the two-tier nature, which differs in its competence from that within the London boroughs or the metropolitan authorities.
Mr Steve Reed: May I associate myself with the very welcome proposals being made by my fellow co-chair of the all-party parliamentary group for London? Given the complexity of London’s governance, it will be difficult for further devolution to happen if such proposals are not accepted by the Government. I endorse the view that is being expressed, and I hope that the Government will listen to it as a means to promote further sensible devolution in London.
Robert Neill: I am grateful to the hon. Gentleman for his support for the new clause. It is not intended to be the definitive text, but I hope the Minister will take heart from the fact that any text brought forward by the Government is likely to enjoy cross-party support and is unlikely to impede the progress of the Bill, but will enhance the opportunity for devolution deals within London as a whole.
5 pm
On the specific issues with which the new clause seeks to deal, subsection (1) provides the ability for a joint committee of London councils or of London councils and the Mayor to request in writing to the Secretary of State that arrangements be made for the delegation of a function that is currently carried out by a Minister or
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a Government Department to that committee. That illustrates that it is a voluntary ask; it is bottom-up devolution, where London government has achieved consensus in a particular area and makes a request to central Government for power to be handed down. That might include specific arrangements entered into for the discharge of particular functions, or perhaps for a particular geography.
It is worth bearing in mind that, as the Minister knows, because of its size and complexity, London has different economies in different areas and distinct sets of identities. In south-east London, where there are four London boroughs which were once part of Kent, we face different issues in relation to our labour markets, our transport infrastructure or our housing markets from those in central London, those in east London, which are dominated by the development potential of the Thames gateway, or those in west London, where there is the old Middlesex railway, the industrial complex and now Heathrow and the impact of silicon valley outside the London boundary. There will be potentially different asks from different arrangements within London, and because of the division of power between the London boroughs and the Mayor, in most cases but not necessarily all, the two tiers are likely to be involved. Subsection (1) would make arrangements for that. We think that that provides sufficient scope for such matters to be agreed.
Subsection (2) provides that that voluntary joint committee can make its own provisions, as necessary, in relation to voting powers, its executive arrangements and so on. The voting powers include the protection of minority interests among the constituent parties. We considered whether that would be adequately determined by existing provisions under the Local Government Act 1972, which I am sure everyone in the Chamber is familiar with and reads on a daily basis. Case law suggests that the courts have indicated that the 1972 Act provisions have to be construed in such a way as to provide for binding decisions to be taken on the basis of a simple majority. If that is so, we need a legislative position to entrench the position of a qualified majority to give protection to minority interests within the broader devolution arrangements.
The clause also makes arrangements for the transfer of property—for example, there may be operational assets of the function that are to be transferred and that would more sensibly be held by the joint committee than by the constituent authorities.
Subsection (3), consistent with the philosophy of a bottom-up and voluntarist approach, requires that the request under subsection (1) has the agreement of all the members of the joint committee. If there is a unanimous ask, that is one of the key things about which we must approach the Government. Subsection (4) consists of definitions. Subsection (5) imposes the usual limitations so that the clause deals with operational matters, but not the ability to impose charges or the quasi-legal powers that local authorities have in certain respects. Subsection (6) deals with potential variations, ensuring that they are made by unanimity and triggered by members of the joint committee.
Those parts of the new clause provide a triple lock on the provisions of the Bill. The request must be made on a voluntary basis, entering into the agreement must be accepted on a voluntary basis, and any variation must
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be on a voluntary basis or by unanimity. I hope that that is a sensible and practical means of taking a devolution ask forward.
Subsection (7) would require the Secretary of State, when he or she has received such a request, to consult London government and the Mayor. That is the right thing to do in terms of transparency and consensus. It also deals with an issue alluded to in some of the other amendments and new clauses—that we should consider the knock-on effects on surrounding authorities, such that if, say, four or five London boroughs wish, with the Mayor, to have a devolution ask, there should be an obligation to consult on any potential adverse impacts on their neighbours.
Subsection (8) relates to the transfer of property rights or liabilities as appropriate. The ask can include such a transfer, and then operational assets and other things can be handed over.
Subsection (9) is intended to deal with the technical legal aspect of any risk of potential hybridity in the arrangements. It has been drawn up in careful consultation with lawyers, but we are very open to discussion with the Minister and his departmental officials about exactly the best means of achieving these objectives.
When the Minister responds, I hope favourably, to the enabling of a Greater London devolution ask, will he confirm the position on the case law, which appears to make it inappropriate to use the existing 1972 Act provisions? In particular, those provisions would not be sufficient to enable a ministerial delegation to joint committees formed under section 101(5) of the Act. Moreover, London boroughs do not appear to be permitted authorities for the purposes of delegation under section 16(1) of the Localism Act 2011, and they cannot take on the functions of other public bodies. I can only blame the then Minister for having missed this very important point, but we all sometimes learn from the experience of legislation in practice. The new clause seeks to rectify these lacunae, and I hope that its objective is shared across the Committee.
Mr Graham Allen: I want to talk about the very broad amendments that I have tabled. New clause 29 and new schedule 2 get to the heart of the debate—that is, we can have all the powers we like, but if we do not have the financial capability to use them effectively, they are an empty charade. We are accompanied in this Chamber by people of great expertise, with at least three former leaders of councils and other colleagues who have great experience on local authorities. The hon. Member for Bromley and Chislehurst (Robert Neill)—my hon. Friend, if I may call him that—has great experience that he put to the service of the Political and Constitutional Reform Committee in the previous Parliament. He enhanced our reports particularly where they touched on local government. There is great expertise in the Chamber, and I defy anyone to counter the truism that without finance powers are useless.
That is why I return again to the question of what happens next on devolution. This Bill is absolutely essential. The Minister has heard me say on many occasions that it is a good Bill that makes good progress, but he has also heard me ask on many occasions, “What comes next? Once the foundations are in, what do we do to build a more secure construction on them?”
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If the Minister does not intend to accept my new clauses, I ask him to look to the future and to consider how we can expand the financial capability of local government. We can do that in a number of areas. Indeed, my Select Committee in the last Parliament inspired me to draft the Local Government (Independence) Bill, which is available from all good Vote Offices or even from me, should anyone who is viewing the debate care to read it. It laid out a number of areas where we could use existing precedent to free local government in England and enable proper devolution.
One of the key precedents was and is Scotland. The efforts of Donald Dewar, the Scottish citizens convention, the coalition’s Scotland Act 2012 and the cross-party consensus among those of us who do not wish to split up the Union and who support the current Scotland Bill, which delivers on the promise that was made before the Scottish referendum, have all contributed to enhancing the capability of the Scottish Parliament to raise and retain its own income.
What is good enough for Scotland is good enough for England. England would need a different mechanism to deliver the heart of the deal, which is income tax assignment, but it is not beyond the wit of mankind to create that capability. Drawing on the lessons of the Scottish experience, we could soon get to a position where income tax assignment, channelled through the Department for Communities and Local Government, filtered down into a clear, honest and accountable amount of income tax without having to make any changes to the rates, the method of collection or equalisation. That would provide local people with transparency and clarity with regard to where and when their income tax is spent, via central Government, by local councils and local authorities. That would be a significant step forward, just as the Scotland Act 2012 was for the Scottish people.
On equalisation, many people get anxious about income tax assignment and say, “That means you’re retaining the income tax raised in your locality,” but that is not what it means. As happens now, income tax would go to the centre and it would be reallocated through the existing formula or a slightly changed formula, depending on the consensus at the time. Equalisation would stay exactly the same as it is now, unless all players—including, above all, local government, perhaps represented by the Local Government Association—consented to any change.
The Local Government (Independence) Bill was the product of a lot of thinking involving academics, Queen’s counsel, the Public Bill Office and this House, to try to make sure that everything was defined as accurately as possible so that it could be legislated on. It outlines ways in which local government could raise additional income, but with the very strong caveat that it could not use any additional sources of income unless it involved local people in the decision and they agreed to them. The issue has been discussed before on the Floor of the House, and we raised the obvious example of charging a hotel tax—or bed tax, as it is sometimes called—if local people consent to it. The heart of devolution is represented not by the Government saying, “Everybody should do this”, but by the freedom of local areas to try, if they wish, to get the consent of people in their locality.
Members have touched repeatedly on the idea that that approach will be so much stronger if it is done voluntarily. Rather than looking for ways to get out of a
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straitjacket, people will be seeking means to join the club of local authorities that can raise money in particular ways. They would learn from each other, from the experience of colleagues down the road or from further afield and perhaps, as I have suggested in new clauses, from a best practice centre of some description—owned by local authorities, contributed to by central Government —to take devolution to the next step. Let us look at some of the good things that have happened, although not everywhere, and offer them to other authorities so that they can, if they wish, move forward.
5.15 pm
I will not repeat the arguments, but I want briefly to raise another matter. The Local Government (Independence) Bill proposed that local government’s ability to raise bonds or loans should be much clearer to ordinary people. We heard earlier about transport issues. If someone wished to raise a bond on the local government bond market, which is a multi-trillion dollar market in America, they could use their credit rating—people are more likely to be willing to take a risk on local government than on central Government—to raise bonds or loans. I argue very strongly that should happen once there has been a debate with local people, not because someone in a closed finance committee or the mayor and his or her deputy made a decision in a smoke-filled room. People should be involved so that we can ensure they have signed up to raising bonds to create a dozen children’s centres, an early intervention programme or whatever it may be, and so that they will watch such a project and take pride in its success, as people who do in so many civic arenas. The people in Nottingham are very proud of their tram system and their workplace parking levy that raises money for all sorts of transport projects in our city. Every Member of the House could reel off examples of their own.
That is at the heart of the new clauses I have tabled, but there is one last and very significant bottom line. We have so often seen central Government offer local government baubles or a few extra crumbs on this, that or the other, but when it suits central Government—of all parties—they take back what they had recently given away. If devolution is to mean anything, it has to be sustainable. It cannot be that if a Secretary of State does not like something an authority is doing—for example, re-establishing grammar schools—they can say, “I don’t like that. I’m going to take back that power.” No, the Secretary of State must win the argument about schooling. The same would apply if a local authority had ownership of the Work programme and everything to do with tackling employment, but the Secretary of State said, “No, I don’t think they’re doing it right; I wouldn’t do it like that” and sought to take back such powers.
If devolution is to mean anything, it must be permanent and entrenched. If it is entrenched, people can get on with it, build and have some certainty. At our disposal, we have number of weapons to entrench a proper settlement for English devolution. We can give local government independence and then protect that behind the Parliament Act 1911 so that any attempt to veto or to suck back powers can be refused by the second Chamber, or perhaps the device of a super-majority—it defends our right always to have a fixed-term Parliament
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of five years—could be used to defend the rights of local government. Without that protection, such powers are favours, not rights.
Finally, I want to touch on a minor but important issue—tabled as my new clause 33—that has been raised with me by the National Association of Local Councils, who represent town and parish councils. I hope that the Minister will reassure me on this point, which relates to local energy production. In Germany, local energy that comes from renewable sources accounts for 46% of all renewable energy. In the UK, it accounts for less than 1%—0.3% is produced by our localities. That is an appalling record in anybody’s book. I hope that we can liberate our parish and town councils and those who currently cannot sell their electricity that is made by renewables. That would do everybody a favour. Currently, Cambourne parish council is inhibited in doing what it would like to do.
This relatively minor change could see the development of cost-effective solar panelling on school and community centre roofs. I will not press new clause 33 to a vote and if the Minister is not prepared to respond to it today, I would be most grateful if he wrote to me. It was put to me in a spirit of consensus by the National Association of Local Councils.
I will finish with one small example of how energy impinges on what we are talking about today. I have talked of boasting about civic pride, and it is a matter of pride that Nottingham City Council has launched Robin Hood Energy. Every domestic consumer can apply to that not-for-profit organisation and get the best tariff from all the existing suppliers. That has been done in an era of massive constraint on local government. Just imagine what local government could do if it was free to be sensitive to what the delivery of local energy could mean both at the district and county level and, as under new clause 33, at the parish and town council level.
I will not ask the Committee to vote on the new clauses I have tabled. I have put them down as a marker. If the Minister wants to take forward the debate about what will come next in the English devolution arena, I will send him my personal copy of the Local Government (Independence) Bill—signed or unsigned, whatever he prefers—to give him ideas that might find the light of day the next time we legislate on devolution.
John Stevenson: I will say a few words about new clause 30. The Bill includes plenty of references to elected mayors and their powers. Indeed, much of our debate has centred on elected mayors. I have long supported the idea of elected mayors and very much welcome their introduction into legislation. However, the Bill deals with larger areas such as combined authorities, large cities and the larger counties. It does not address the possibility of elected mayors in smaller councils and communities.
I acknowledge that the Government want this change to come from the bottom up, with local authorities coming together to put forward ideas and proposals, hence all the deals that we have heard about up and down the country in recent days—I am sure that there are many more to come. I understand that process, although I do not wholly agree with it at all times. I sometimes think that there needs to be greater direction from the centre. Nevertheless, the Government are moving in the right direction.