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Amendment proposed: 2, page 2, line 13, at end insert—
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“(2A) An order under subsection (1) may not be made unless the proposition that the combined authority have a mayor is approved by a referendum of the electorate of that combined authority.
(2B) The Secretary of State shall, by regulations, establish the procedures to be followed in conducting a referendum under subsection 2A.
(2C) Before making a regulation under subsection 2B, the Secretary of State must consult the Electoral Commission.”—(William Wragg.)
The intention of this amendment is that elected mayors will be introduced only if that proposal has been approved by a referendum of the residents of the combined authority. The rule for the conduct for such a referendum shall be made by the Secretary of State, in consultation with the Electoral Commission.
Question put, That the amendment be made.
Amendments made: 7, page 3, line 1, leave out from “authority,” to end of line 3 and insert
“there are one or more non-consenting constituent councils but the combined authority and at least two constituent councils consent.”
This amendment enables an order to be made providing for there to be a mayor for the area of a combined authority if, in the case of an existing combined authority where there are one or more non-consenting constituent councils, at least two constituent councils consent.
Amendment 8, page 3, line 6, leave out second “the” and insert “each”.
This amendment is consequential on amendment 7 and enables more than one non-consenting constituent council to be removed from the existing area of the combined authority.
Amendment 9, page 3, line 8, leave out subsection (5). —(Alistair Burt.)
This amendment is consequential on amendment 27 (see in particular the new section 106(3D) that is inserted by that amendment).
Functions
Amendments made: 10, page 4, line 20, leave out “PCC mayor” and insert
“mayor for policing and crime”.
This amendment is consequential on amendment 37.
Amendment 11, page 5, line 7, at end insert—
“() include provision for general functions to be exercisable by the mayor subject to conditions or limitations specified in the order (including, for example, a condition for general functions to be exercisable only with the consent of the appropriate authorities (as defined by section 107B(6)));”.
This amendment provides that an order making provision for a function of a mayoral combined authority to be a general function exercisable only by the mayor may include conditions or limitations, such as the consent of members of the combined authority.
Amendment 12, page 5, line 29, at end insert “, and
() in the case of an order made in relation to an existing mayoral combined authority, the mayor of the authority.”
This amendment provides that an order under section 107D of the Local Democracy, Economic Development and Construction Act 2009 (inserted by clause 4 of the Bill), making provision for a function of an existing mayoral combined authority to be a function exercisable only by the mayor, requires the consent of the mayor of the authority.
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Amendment 13, page 5, line 31, leave out “the” and insert “a”.
This amendment is consequential on amendment 7 and enables more than one non-consenting constituent council to be removed from the existing area of the combined authority.
Amendment 14, page 6, line 31, at end insert “, and
() in the case of an order made in relation to an existing mayoral combined authority, the mayor of the authority.”
This amendment provides that an order providing for the mayor for the area of an existing mayoral combined authority to exercise functions of a police and crime commissioner in relation to that area must have the consent of the mayor of the authority.
Amendment 15, page 7, line 12, leave out “the” and insert “a”.—(Alistair Burt.)
This amendment is consequential on amendment 7 and enables more than one non-consenting constituent council to be removed from the existing area of the combined authority.
Other public authority functions
Amendments made: 16, page 10, line 6, after “liabilities” insert “(including criminal liabilities)”.
This amendment clarifies that criminal liabilities of a public authority can be transferred to a combined authority on the same basis as other liabilities when functions of a public authority are conferred on a combined authority.
Amendment 17, page 10, line 15, at end insert—
“(5A) Subsection (5B) applies where an order under subsection (1) contains a reference to a document specified or described in the order (for example, in imposing a condition by virtue of subsection (2)(a) for an authority to have regard to, or to comply with, a statement of policy or standards set out in the document).
(5B) If it appears to the Secretary of State necessary or expedient for the reference to the document to be construed—
(a) as a reference to that document as amended from time to time, or
(b) as including a reference to a subsequent document that replaces that document,
the order may make express provision to that effect.”
This amendment allows a transfer order conferring public authority functions on a combined authority to include provision referring to a document as amended from time to time, or replaced. This may be necessary when imposing conditions referring to standards or policies which may be updated in light of technological or scientific developments (for example).
Amendment 18, page 10, line 38, leave out from beginning to “and” in line 39 and insert
“the appropriate consent is given”.
This amendment provides that the consent requirement for an order under new section 105A is subject to the definition of “the appropriate consent” in new section 105B(1A) inserted by amendment 19.
Amendment 19, page 10, line 41, at end insert—
‘(1A) For the purposes of subsection (1)(b), the appropriate consent is given to the making of an order under section 105A only if—
(a) in the case of an order in relation to an existing combined authority, each appropriate authority consents;
(b) in any other case, each constituent council consents.
Paragraph (a) is subject to subsections (1B) and (1C).
(1B) Subsection (1C) applies where—
(a) an order under section 105A in relation to an existing combined authority is the first such order to be made in relation to that authority,
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(b) the authority is not a mayoral combined authority, and
(c) there are one or more constituent councils who do not consent to the making of the order.
(1C) For the purposes of subsection (1)(b), the appropriate consent is given to the making of the order if the combined authority and at least two constituent councils consent to the making of the order.
(1D) Where an order under section 105A is made by virtue of subsection (1C) of this section, the Secretary of State must make an order under section 106 to remove the area of each non-consenting constituent council from the existing area of the combined authority.
(1E) The requirement in subsection (1)(b) for the appropriate consent to be given to the making of an order under section 105A does not apply where—
(a) the order revokes (in whole or in part), or otherwise amends, a previous order under that section, and
(b) the only purpose of the order is to provide for a health service function of a combined authority to cease to be exercisable by the authority.
(1F) In subsection (1E)(b), “health service function of a combined authority” means a function which—
(a) relates to the health service, as defined by section 275(1) of the National Health Service Act 2006, and
(b) is exercisable by the combined authority by virtue of an order under section 105A.
(1G) The requirement in subsection (1)(b) for the appropriate consent to be given is subject to section 106A.”
This amendment requires each constituent council and the combined authority to consent to orders under new section 105A which do not revoke the transfer of a health service function, and, for non-mayoral combined authorities, enables the removal of constituent councils which do not consent to powers being conferred under section 105A.
Amendment 20, page 11, line 16, at end insert—
“and a “constituent council” is a council within paragraph (a) or (b).”—(Alistair Burt.)
This amendment is consequential on amendment 19 and provides for a definition of “constituent council” for the purposes of new section 105B.
Other public authority functions
Amendments made: 21, page 11, line 34, leave out
“so far as the constituent councils consent,”
and insert “subject to subsection (10A),”.
This amendment removes the consent requirements in section 74(10) of the Local Government Finance Act 1988 (as inserted by clause 9(1) of the Bill), as they are remodelled by the provisions in amendment 22.
Amendment 22, page 11, line 36, at end insert—
“(10A) Regulations under this section by virtue of subsection (8) that include provision within subsection (10)(b) may be made only with the consent of—
(a) the constituent councils, and
(b) in the case of regulations in relation to an existing combined authority, the combined authority.
(10B) Subsection (10A) is subject to section 106A of the Local Democracy, Economic Development and Construction Act 2009 (which enables regulations to be made without the consent of all the constituent councils in certain circumstances).”
This amendment provides that regulations made by virtue of section 74(8) of the Local Government Finance Act 1988, enabling a combined authority to levy in respect of functions other than transport functions, can only be made with the consent of the constituent councils and the authority, where there is an existing combined authority.
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Amendment 23, page 11, line 40, leave out “(10) and” and insert “(8) to”.
This amendment is consequential to the changes made by amendments 21 and 22 and provides for a definition of “constituent council”.
Amendment 24, page 12, line 16, at end insert “, and
() in the case of regulations in relation to an existing combined authority, the combined authority.”
This amendment provides that regulations under section 23(5) of the Local Government Act 2003 require the consent of the combined authority, as well as the constituent authorities.
Amendment 25, page 12, line 16, at end insert—
‘(6A) Subsection (6) is subject to section 106A of the Local Democracy, Economic Development and Construction Act 2009 (which enables regulations to be made without the consent of every authority within paragraph (a) and (b) of that subsection in certain circumstances).”—(Alistair Burt.)
This amendment is consequential on amendment 27 (see in particular the new section 106A inserted by that amendment).
General power of competence
Amendment made: 26, page 12, line 43, leave out “the” and insert “a”.—(Alistair Burt.)
This amendment is consequential on amendment 7 and enables more than one non-consenting constituent council to be removed from the existing area of the combined authority.
Requirements in connection with establishment etc. of combined authority
Amendments made: 27, page 15, line 33, at end insert—
“( ) In section 104 (constitution and functions of combined authorities: transport), after subsection (9) (inserted by section 8(1) above) insert—
(10) An order under this section may be made in relation to a combined authority only with the consent of—
(a) the constituent councils, and
(b) in the case of an order in relation to an existing combined authority, the combined authority.
(11) In subsection (10) “constituent council” means—
(a) a county council the whole or any part of whose area is within the area or proposed area of the combined authority, or
(b) a district council whose area is within the area or proposed area of the combined authority.
(12) Subsection (10) is subject to section 106A.”
( ) In section 105 (constitution and functions of combined authorities: economic development and regeneration), after subsection (3) insert—
“(3A) An order under this section may be made in relation to a combined authority only with the consent of—
(a) the constituent councils (as defined by section 104(11)), and
(b) in the case of an order in relation to an existing combined authority, the combined authority.
(3B) Subsection (3A) is subject to section 106A.”
( ) In section 106 (changes to boundaries of a combined authority’s area)—
(a) in subsection (2), omit paragraph (b);
(c) after subsection (3) insert—
“(3A) An order under this section adding or removing a local government area to or from an existing area of a combined authority may be made only if—
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(a) the relevant council in relation to the local government area consents,
(b) the combined authority consents, and
(c) the mayor for the area of the combined authority (if it is a mayoral combined authority) also consents.
(3B) For the purposes of subsection (3A)(a), the “relevant council” in relation to a local government area is—
(a) if the local government area is the area of a county council, the county council;
(b) if the local government area is the area of a district council whose area does not form part of the area of a county council, the district council;
(c) if the local government area is the area of a district council whose area forms part of the area of a county council, the district council or the county council.
(3C) If there are two relevant councils in relation to a local government area by virtue of subsection (3B)(c), the condition in subsection (3A)(a) for the relevant council to consent is met if—
(a) in the case of an order under subsection (1)(a), either or both of the relevant councils consent;
(b) in the case of an order under subsection (1)(b), both of the relevant councils consent.
(3D) Subsections (2) and (3A) do not apply to an order under subsection (1)(b) that is made as a result of the duty in section 105B(1D) or 107B(4).”
“106A Section 106(1)(a) orders: consent requirements under other powers
(1) Subsection (2) applies where—
(a) the area of a district council is added to the area of a combined authority by an order under section 106(1)(a),
(b) the area of the district council forms part of the area of a county council,
(c) the Secretary of State proposes to exercise a relevant power as a result of, or otherwise in connection with, the making of the order, and
(d) (apart from subsection (2)) the relevant power is exercisable only with the consent of (among other authorities) the county council mentioned in paragraph (b).
(2) The relevant power is exercisable whether or not the county council consents.
(3) Subsection (4) applies where—
(a) the area of a county council is added to the area of a combined authority by an order under section 106(1)(a),
(b) the area of the county council includes the areas of district councils,
(c) the Secretary of State proposes to exercise a relevant power as a result of, or otherwise in connection with, the making of the order, and
(d) (apart from subsection (4)) the relevant power is exercisable only with the consent of (among other authorities) a district council within paragraph (b).
(4) The relevant power is exercisable whether or not the district council consents.
(5) In this section, “relevant power” means a power—
(a) to make an order under section 104, 105 or 105A, or
(b) to make regulations under—
(i) section 74 of the Local Government Finance Act 1988 (by virtue of subsection (8) of that section), or
(ii) section 23(5) of the Local Government Act 2003.””
This amendment requires the consent of the constituent councils and the combined authority to orders made under sections 104 and 105 of the Local Democracy, Economic Development and Construction Act 2009. It also provides that section 106 orders require the consent of the “relevant council”, the combined authority and the mayor (in the case of a mayoral combined authority). The consent requirements are subject to the new section 106A inserted by the amendment.
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Amendment 28, page 16, leave out line 25.
This amendment is consequential on amendment 27 and removes the consent requirement in relation to orders made under sections 104, 105, 106 and 107 of the Local Democracy, Economic Development and Construction Act 2009 in the proposed amendment to section 113(1)(b) of that Act (as inserted by clause 14(4) of the Bill). The consent requirements are instead dealt with within each section.
Amendment 29, page 16, leave out lines 38 to 42. —(Alistair Burt.)
This amendment is consequential to amendment 28 and removes the definition of “constituent council” at section 113(2A) of the Local Democracy, Economic Development and Construction Act 2009 (as inserted by clause 14(4) of the Bill).
Governance arrangements etc of local authorities in England
Amendment proposed: 56, page 17, line 23, at end insert—
“(4A) Regulations under this section, so far as including structural or boundary provision in relation to a non-unitary district council area, may be made if at least one relevant local authority consents.
(4B) Local authority in this case is defined as—
(a) a non-unitary district council whose area is, or forms part of, the non-unitary district council area;
(b) a county council whose area includes the whole or part of the non-unitary district council area.
(a) “non-unitary district council area” means the area or areas of one or more non-unitary district councils;
(b) “non-unitary district council” means a district council for an area for which there is also a county council;
(c) “structural or boundary provision” means provision about the structural or boundary arrangements of local authorities in regulations made by virtue of subsection (1)(c).”—(Martin Vickers.)
The intention of this amendments is to allow the government to make changes to boundaries of local authorities if it has the consent of at least one relevant local authority.
Manuscript amendment madeto amendment 56: (a), after subsection (4C), insert—
“(4D) Subsections (4A) to (4C) expire at the end of 31 March 2019 (but without affecting any regulations already made under this section by virtue of subsection (4A)).”—(Alistair Burt.)
This amendment provides for the provisions in subsections (4A) to (4C) of clause 15, allowing structural and boundary provision in relation to a non-unitary district council area if at least one relevant local authority consents, to expire at the end of 31 March 2019.
Amendment 56, as amended, agreed to.
Power to transfer etc. public authority functions to certain local authorities
Amendments made: 30, page 18, line 39, after “liabilities”, insert “(including criminal liabilities)”.
This amendment clarifies that criminal liabilities of a public authority can be transferred to a local authority on the same basis as other liabilities when functions of a public authority are conferred on a local authority.
Amendment 31, page 19, line 2, at end insert—
“(5A) Subsection (5B) applies where regulations under subsection (1) contain a reference to a document specified or described in the regulations (for example, in imposing a condition by virtue of subsection (2)(a) for an authority to have regard to, or to comply with, a statement of policy or standards set out in the document).
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(5B) If it appears to the Secretary of State necessary or expedient for the reference to the document to be construed—
(a) as a reference to that document as amended from time to time, or
(b) as including a reference to a subsequent document that replaces that document,
the regulations may make express provision to that effect.”—(Alistair Burt.)
This amendment allows regulations conferring public authority functions on a local authority to include provision referring to a document as amended from time to time, or replaced. This may be necessary when imposing conditions referring to standards or policies which may be updated in light of technological or scientific developments (for example).
Section 16: procedure etc.
Amendments made: 32, page 19, line 20, after “authority” insert
“by whom a function becomes exercisable by virtue of the regulations”.
This amendment clarifies that the reference to “relevant local authority” in clause 17(1)(a) is to the relevant local authority that would exercise a function as a result of regulations under clause 16(1).
Amendment 33, page 19, line 22, after second “the” insert “relevant”.
This amendment clarifies that the local authority mentioned in clause 17(1)(b) is the relevant local authority.
Amendment 34, page 19, line 30, at end insert—
“(2A) The requirement in subsection (1)(a) for the relevant local authority to consent to the making of regulations under section 16 does not apply where—
(a) the regulations revoke (in whole or in part), or otherwise amend, previous regulations under that section, and
(b) the only purpose of the regulations is to provide for a health service function of the relevant local authority to cease to be exercisable by the authority (which may include provision under subsection (2)(b) in relation to that purpose).
(2B) In subsection (2A)(b), “health service function of a relevant local authority” means a function which—
(a) relates to the health service, as defined by section 275(1) of the National Health Service Act 2006, and
(b) is exercisable by the authority by virtue of regulations under section16.”—(Alistair Burt.)
This amendment removes the requirement for local authority consent to regulations revoking a transfer of functions to that local authority where the revocation relates only to health service functions. Incidental, supplementary, consequential, transitional, transitory or saving provision may be included in the revoking regulations.
Devolving health service functions
Amendment made: 35, page 20, line 43, leave out from “under” to “are” in line 44 and insert
“Chapter A2 of Part 2 of the NHSA 2006 (clinical commissioning groups)”.—(Alistair Burt.)
This amendment ensures that all the functions of the NHS Commissioning Board in relation to clinical commissioning groups under Chapter A2 of Part 2 of the National Health Service Act 2006 (which includes Schedule 1A to that Act) cannot be transferred to local or combined authorities under clause 16 or section 105A of the Local Democracy, Economic Development and Construction Act 2009.
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Sub-national transport bodies
Amendment made: 36, page 27, line 42, leave out “jointly” and insert “concurrently”.—(Alistair Burt.)
This amendment would allow regulations under section 102J of the Local Transport Act 2008 (as inserted by clause 21 of the Bill) to provide for local transport functions to be exercised by a sub-national transport body concurrently with a local authority instead of jointly.
Mayors for combined authority areas: police and crime commissioner functions
Amendments made: 37, page 42, line 29, leave out “PCC mayor” and insert
“mayor for policing and crime”.
This amendment, together with amendments 10, 38 to 43 and 45 make minor drafting changes so that a deputy mayor appointed in respect of police and crime commissioner functions under paragraph 3 of new Schedule 5C is to be known as the “deputy mayor for policing and crime” (rather than “deputy PCC mayor”).
Amendment 38, page 42, line 30, leave out “PCC mayor” and insert
“mayor for policing and crime”.
Amendment 39, page 42, line 36, leave out “PCC mayor” and insert
“mayor for policing and crime”.
Amendment 40, page 42, line 43, leave out “PCC mayor” and insert
“mayor for policing and crime”.
Amendment 41, page 43, line 9, leave out “PCC mayor” and insert
“mayor for policing and crime”.
Amendment 42, page 43, line 11, leave out “PCC mayor” and insert
“mayor for policing and crime”.
Amendment 43, page 43, line 14, leave out “PCC mayor” and insert
“mayor for policing and crime”.
Amendment 44, page 43, line 28, at end insert—
“4A (1) The Secretary of State may by order provide for a police and crime panel to have oversight functions in relation to any general functions of the mayor that are the subject of arrangements under section 107D(3)(c)(i) (power to arrange for general functions to be exercisable by deputy mayor for policing and crime).
(2) If it appears to the Secretary of State expedient for the police and crime panel also to have oversight functions in relation to other general functions of the mayor that are related to general functions in respect of which an order is made under sub-paragraph (1), the Secretary of State may by order provide for the panel to have oversight functions in relation to those other general functions.
(3) An order under this paragraph may disapply, or otherwise modify, the application of paragraph 1(3) of Schedule 5A so far as relating to general functions of the mayor in respect of which a police and crime panel has oversight functions.
“oversight functions”, in relation to general functions of the mayor, are functions that are of a corresponding or similar kind to those that a police and crime panel has in relation to PCC functions of the mayor;
“police and crime panel” means a panel established by virtue of an order under paragraph 4.”
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This amendment enables the Secretary of State by order to give a police and crime panel (established under paragraph 4 of new Schedule 5C) scrutiny functions over any general functions of the mayor where those functions are ones that the mayor has arranged for the deputy mayor for policing and crime to exercise under new section 107D(3)(c)(i) and also related functions.
Amendment 45, page 44, line 2, leave out from “mayor” to end of line 3 and insert
“and the deputy mayor for policing and crime”.—(Alistair Burt.)
Amendments of the National Health Service Act 2006
Amendments made: 46, page 50, line 3, leave out “a function” and insert “one or more functions”.
This amendment makes a minor and technical revision to subsection (1) in section 13ZA to be inserted into the National Health Service Act 2006, to ensure it is clear that “devolved arrangements” as provided for in that section may relate to one or more functions.
Amendment 47, page 50, line 14, after “arrangements” insert
“in relation to any functions”.
This amendment makes a minor and technical revision to subsection (3) in section 13ZA to ensure consistent language in this subsection with subsection (1).
Amendment 48, page 50, line 14, leave out “the function” and insert “such functions”.
This amendment makes a further minor and technical revision to subsection (3) in section 13ZA to ensure consistent language in this subsection with subsection (1).
Amendment 49, page 50, line 35, leave out “each eligible body” and insert
“at least one clinical commissioning group”.—(Alistair Burt.)
This amends the requirements for membership of a joint committee exercising functions under devolved arrangements as provided for in section 13ZA to be inserted into the National Health Service Act 2006, so that the requirement in subsection (7)(b) in section 13ZA is met if at least one clinical commissioning group is a member.
Minor and consequential amendments
Amendments made: 50, page 55, line 34, at end insert—
“8A The Local Government Finance Act 1988 is amended as follows.8B In section 74 (levies), omit subsection (9).”
This amendment is consequential on amendment 23.
Amendment 51, page 56, line 29, at end insert—
“Environment Act 1995
11A (1) Section 65 of the Environment Act 1995 (National Park authorities: general purposes and powers) is amended as follows.
(2) In subsection (5), after paragraph (b) insert—
“Paragraph (b) is subject to subsection (6A).”
(3) After subsection (6) insert—
“(6A) Subsection (5)(b) does not apply in relation to a National Park authority for a National Park in England (see instead section 65A for general powers of such authorities).””
This amendment contains consequential amendments of section 65 of the Environment Act 1995 as a result of NC7.
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Amendment 52, page 57, line 16, leave out lines 16 to 18 and insert—
“(2A) But section 85 of that Act, in its application to a combined authority by virtue of subsection (2), is subject to subsections (2AA) and (2AB).
(2AA) If the area of the combined authority includes the area of the whole of a county that comprises the areas of one or more district councils, the representative councils for the purposes of section 85(1)(c) of that Act (as applied to a combined authority) are either the county council or the council for each of the districts (as determined by or in accordance with the order).
(2AB) In relation to a mayoral combined authority, section 85(4) of that Act is not to be taken as preventing the mayor from being a voting member of the authority.”
This amendment identifies representative councils which are required to appoint elected members as a member of the combined authority for the purposes of section 85(1)(c) of the Local Transport Act 2008, as applied by section 104 of the Local Democracy, Economic Development and Construction Act 2009.
Amendment 53, page 57, line 27, leave out paragraph (b).
This amendment is consequential on amendment 27.
Amendment 54, page 58, line 9, at end insert—
“20A In section 113 (requirements in connection with changes to existing combined arrangements), after subsection (3) insert—
(4) This section does not apply to an order under section 106(1)(b) that is made as a result of the duty in section 105B(1D) or 107B(4).”
This amendment disapplies the requirements imposed by section 113 of the Local Democracy, Economic Development and Construction Act 2009 in relation to orders under section 106(1)(b) of that Act, removing a local government area from an existing area of a combined authority, if made as a result of the duty to make such an order under section 105B(1D) or section 107B(4) of that Act.
Amendment 55, page 58, line 21, at end insert—
“22A In section 115 (transfer of property, rights and liabilities), in subsection (1) after “liabilities” insert “(including criminal liabilities)”.”
—(Alistair Burt.)
This amendment clarifies that criminal liabilities can be transferred on the same basis as other liabilities in connection with an order made under section 115 of the Local Democracy, Economic Development and Construction Act 2009.
9.27 pm
The Secretary of State for Communities and Local Government (Greg Clark): I beg to move, That the Bill be now read the Third time.
I would like to thank—[Interruption.]
Madam Deputy Speaker (Natascha Engel): Order. The Secretary of State is moving the Third Reading.
Greg Clark: I thank all hon. Members from both sides of the House who have contributed to the development of the Bill, particularly those who participated in the extensive scrutiny on the Floor of the House both in Committee and on Report. The House will observe that we have followed the principle of listening to the views of Members, both in Committee and on Report. We made several improvements to the Bill after having heard serious representations from those across the House. I want to put on the record my thanks to my officials and to the Clerks, who have guided us adroitly through every clause.
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I also want to thank councillors of every party and business leaders from across the country who have helped to give this Bill the momentum it deserves by embracing the localism agenda that began in the last Parliament. Important though the Bill is, it is worth noting that it is not the only means by which devolution is being advanced. For example, the Chancellor’s announcement that 100% of business rates would be retained by local government, rather than sent to the Treasury, is a significant step forward for the greater independence of local government.
I want the Bill to commence several things. I want it to allow the often latent potential for economic growth across all parts of the country to be better unleashed. The Bill and the process that we have introduced have brought businesses right across the country into close collaboration with their local authority leaders. The degree of enthusiasm for this has been gratifying.
The Bill allows reform where civic leaders and councillors desire it. It is a Bill that proceeds from the bottom up, rather than the top down. That makes it a novel Bill in the history of legislation concerning local government that this House has considered. It is a Bill that does something that previous Governments have baulked at, which is to transfer deliberately powers that Ministers and Governments have held and exercised in Westminster and Whitehall to authorities across the land. The insight of the Bill is that those objectives can be achieved together if local people are given their voice and allowed to set their arrangements in their own way.
The breakthrough is the recognition that not all places need to be the same. One of the glories of this House is that we know that each of our constituencies is very different from the others. No place is the same. A world in which policy is identical in every part of the country is a world in which policy is not well set for particular parts of the country. Each place has a different history, different strengths and different capacities.
In the past, proceeding at the speed of the slowest has hampered efforts to devolve. Therefore, the approach that we have taken has been to invite every part of the country to make its proposals to the Government from the bottom up and to encourage those with the most ambitious proposals to advance them, while encouraging other places to find their feet and take the powers that they want for themselves and their people.
Mr Chope: Will my right hon. Friend give the House an assurance that amendment 56 will not be used by the Government to force change on any local authority?
Greg Clark: I will indeed. My hon. Friend raises an important point. The whole process by which we have operated and negotiated with places has recognised that the best ideas come from local places themselves. Previous local government Bills have attempted, with unhappy consequences, to impose a Government view of how local government should be organised on reluctant local authorities. This Bill does not do that and the amendment that he mentions will not be used for that purpose either. Rather, it will bring local communities and local authorities into a discussion about what is best for their area.
Sir Edward Leigh:
The Secretary of State, as usual, is handling difficult issues in a consensual and careful way. As I understand it, he wants to use amendment 56
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to encourage a discussion. Discussions are fine, but, for the want of argument, if a county council wanted to use amendment 56 to drive for a unitary authority against the wishes of one or more district council, I take it that the county council could not use it to override the district councils.
Greg Clark: All of our negotiations have achieved consensus locally. That is my approach. Amendment 56 allows us to require that those conversations take place. No authority can reasonably refuse even to discuss the potential for reform. That is right. It is reasonable for neighbouring authorities to have conversations about what is the best way to proceed. As my hon. Friend the Minister said, the powers are already there.
In responding to the case that was made in Committee by my hon. Friend the Member for Carlisle (John Stevenson) and that was made again on Report, we thought that it was worth having in the Bill, as a pilot, the ability to, as it were, encourage authorities to have the conversation. Anything that is agreed needs to be agreed by the Secretary of State and by this House. My hon. Friend the Member for Gainsborough (Sir Edward Leigh) can be absolutely sure that, in exercising my authority in this area, I propose to maintain the preference for consensus that I have shown so far.
It is worth reflecting that, in the few years since we started negotiating, first with cities and then with local authorities and their businesses through the growth deals, there has been tremendous enthusiasm across the country. Members have spoken at various points during the debate about how the degree of collaboration and involvement of businesses and local authorities has been very much greater than that experienced in the past. That is absolutely the case. If we are to prosper and succeed as a nation, every part of the nation has to fire on all cylinders. This important Bill will help to drive that forward.
During the debate, many amendments have been made, resulting in the Bill’s improvement. We have accepted a need for various reports on the progress of devolution to come to this House, so they can be debated. I am grateful to my hon. Friend the Member for Altrincham and Sale West (Mr Brady) in particular, as he made a very strong case that Members should be involved in the ongoing scrutiny of agreed deals. I am only too willing to have my feet held to the fire. As the Chairman of the Select Committee, the hon. Member for Sheffield South East (Mr Betts), has observed a number of times during these proceedings, in my earlier incarnation in the Department I published a progress report of all Government Departments on whether we were living up to our commitments on devolution. I fully expect that the scrutiny of the House will be equally exacting when it comes to the receipt of the reports.
It is important that we have devolution right across the country. We started with cities, but the enthusiasm in counties and districts right across the country has been very palpable. When we issued an invitation for places to come forward, 38 places, covering almost all the country, submitted proposals. The Bill enacts some of our manifesto commitments to create a metro mayor for Greater Manchester and to create mayoral authorities for the great cities that have concluded deals with the Government.
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In response to proposals, again from the bottom up and starting with Greater Manchester, we have been able to enter into discussions about the devolution of health matters, so that the two sides of the same coin that are health and social care can be better administered locally, jointly between the NHS and local government. I am pleased we have been able to make amendments on those matters.
I am pleased that we have ended the Bill’s proceedings with a degree of consensus between all parties. That was very much our intention from the outset. We started with a degree of discord on Second Reading, but I had high hopes that we would be able to persuade those on the Opposition Front Bench to move away from that. As we have scrutinised the Bill and accepted amendments from all sides of the House, including from the Back Benches, I think we have strengthened the Bill. I am grateful to those on the Opposition Front Bench for having, I think, modified their view. I hope we might even hear a degree of enthusiasm—I will be careful on that; I had better not count my chickens—from them.
This is an important moment. The Bill was in the first Queen’s Speech and one of the first to be introduced in this Session of Parliament. On Second Reading, I said it was an historic Bill that would do something our predecessors have not done and that our successors will look back on. They will see this as a piece of legislation that changed the direction of policy and built up our cities, towns and counties across the country, so that their discretion, power and ability to set their own future becomes much greater than it has been in the past.
Julian Sturdy: Like many on the Government Benches, I praise my right hon. Friend for all his work bringing the Bill to the House, but does he accept that some areas might need more time to come to the right devolution deal, rather than rushing a bad deal? Will he assure those areas that they will not be penalised for taking their time over what might be, for certain areas, quite a difficult decision to get the right conclusion?
Greg Clark: I can certainly give that assurance to my hon. Friend, who has played an active role in talking to his local authorities and businesses to build a consensus. It is clear that different places will proceed at different paces, as they have done already, but I and my hon. Friends are completely committed to inviting every part of the country to put forward and negotiate a deal that is right for them. We invite all parts of the country to propose that which would make the biggest difference to local areas. To paraphrase Disraeli, the Bill exists to show areas their riches to themselves. We can, with the Bill, unleash the growth, the jobs, the homes and the futures that everyone across the country has a right to hope for, and because of that, I commend it to the House.
9.40 pm
Jon Trickett: The Bill is clearly a milestone in the direction of devolution, and we welcome the spirit in which the House has debated it—it was good to take the Committee stage on the Floor of the House. We also thank the civil servants, the staff of the House, the Speaker and Deputy Speakers, who presided over our hearings, and the councillors and Members who participated in our debates.
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It is true that Ministers have sought to be consensual—mainly with their own Back Benchers, rather than with us, but we will draw a veil over that—and we have tried to be positive, but, despite the Bill being a milestone, we feel it has been scarred by timidity, and we are frustrated by the lack of ambition. It appears that much of the Bill was shaped by No. 11, rather than being created in the great cities, counties and villages of England, and it simply does not match up to our devolution achievements in Scotland, Wales and London.
I am sure we all agree that the UK is one of the most centralised countries in the world: 72% of all public expenditure is controlled directly by the Prime Minister and his Ministers, whereas Chancellor Merkel controls less than one fifth of Germany’s total budget. There is a long way to go, yet the Bill does little to challenge this major problem, which we are all trying to grapple with. I think the Minister knows that. Does anyone really think that the Government’s cuts to flood defences would have happened had the budget and decision-making powers for flood control been devolved locally? Of course not. The case for a proper, far-reaching political settlement for the devolution of power is overwhelming. It is a case based on economic and social justice as well as the more equitable distribution of political power. The case against over-centralisation is not made by the Bill, but none the less it remains a milestone in the direction we want to travel.
We have sought to engage with the Government and to improve the Bill by tabling amendments. Our amendments—for example, those decoupling a mayor from the ability to secure devolution, as well as those on finance offering stability to local councils, on multi-year funding and on the provision of greater fiscal autonomy—would have helped make local government more autonomous, more powerful and more relevant to local communities. We pressed the Government more than once on extending the franchise to 16 and 17-year-olds—no doubt, we will return to that in future years—and on Report we sought a debate on the general power of competence. After all, if local government is to govern, it has to have the competence to take action in any area relevant to its community.
We supported the Government on the amendment that gave local district councils the right to become associated with metro mayors in adjacent metropolitan areas. The truth is, however, that every single one of our amendments, which were designed to extend powers to local communities, was rejected by the Government. Not one was accepted—and that is the truth of it.
May I gently inquire—I do not suppose I will get an answer—whatever happened to the Chancellor’s plans to scrap the national Sunday trading laws? They seem to have disappeared. Will we get some kind of assurance that that is the end of it for this Parliament? It is looking that way; there is simply not a majority for such a proposal in the House.
Looking forward, as the Bill becomes an Act after consideration in the other place, it poses a dilemma for councillors and councils across the land. Should they sign up to devolution deals with the Chancellor? Should they seek the limited new powers on offer while being simultaneously aware that part of what is on offer is in effect the delegation of cuts rather than the devolution of real fiscal independence?
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The Opposition will not second-guess councillors’ decisions. We will support them as they struggle to preserve vital public services at the same time as regenerating their local economies. The Bill represents one limited, top-down model of devolution because it insists on imposing a form of governance, metro mayors, on cities, even where the electorates have so recently rejected them. The fiscal/economic model on offer—the Bill seeks to encourage it—is one of cash-strapped local authorities competing with adjacent cash-strapped local authorities, probably by reducing business rates to try to attract investment. It allows for only a limited vision. In its place we would like to see a well-resourced, innovative, dynamic local state, working in partnership with business, civil society and all its citizens for the betterment of all. The Bill is silent on what has been described as double devolution, which involves empowering individuals in their often unequal struggle with state bureaucracy.
We are supporting and will support the Bill because it offers a faltering step forward, but I do not think the Chancellor’s model of devolution as outlined in it will endure in the end. Indeed, I predict it will not long outlast the right hon. Gentleman’s limited leadership ambitions. This is a view we have taken from the beginning and it was reflected in our reasoned amendment on Second Reading.
If this Parliament is serious about tackling inequality and creating a more balanced economy and society, I believe it should propose a radically different distribution of power and authority in our country, perhaps even moving towards a federal settlement. The very future of our Union may depend on such a proposal, so we will now begin our conversation with the British people about the right way forward. We will be immensely strengthened in this task by the arrival on these Benches of my hon. Friend the Member for Oldham West and Royton (Jim McMahon). His common sense and practical socialism in action, rooted in his own community and in the best that local government has to offer, points the way forward for Britain. I very much hope that before too much time elapses, the Labour party will be in a position to legislate for real and substantial devolution in England, just as it once did for London, Scotland and Wales.
9.48 pm
Mr Betts: I said on Second Reading that I supported the general principles of the Bill and its underlying intentions—and I still do. I have reservations about the pace and the extent of the change—I would like to go faster and further—and about certain details such as elected mayors and their imposition. I think imposition is the right word, despite Ministers’ denials. Nevertheless, the Bill is important for its symbolism and its direction of travel. On that direction, when I was first elected in 1992 I never thought I would see this happening in this House of Commons. What we have here is a revelation in comparison with where thinking was in those days.
I thank the Secretary of State and Ministers for the way in which they have dealt with the debate in Committee and on Report. They have listened to the constructive comments made on both sides. Equally, I would like to place on record my thanks to local government leaders, particularly those on the Labour side who control most of the major cities. The reality is, as I am sure Ministers recognise, that while those leaders’ budgets are being
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cut to shreds by the Government, they are still prepared to sit down and work pragmatically with the very same Ministers to negotiate deals on devolution that will be to the benefit of the communities they represent. That says an awful lot for council leaders, and the way in which they have approached the offer that the Government have made to them.
I thank the Secretary of State and Ministers for recognising the concerns that I raised and tabling amendment 27. I shall not go into the details of the Sheffield city region again, but I think that the amendment demonstrates Ministers’ understanding of a wider issue. If more growth, better economic performance and new jobs are to result from these deals, the bodies that we are creating must reflect the real economies of their areas rather than having regard to the old administrative boundaries of regions that existed for many years but did not necessarily reflect those local economies. The fact that Ministers were prepared to recognise that, and to help with the construction of bodies that will indeed reflect the economies of their areas, demonstrates a very important principle.
I think that, at some point, we shall have to return to the House and discuss what we have achieved with devolution, and I think that we shall have to discuss three issues. First, we shall have to discuss the deals that have been agreed, how successful they have been, and what lessons can be learned. Deals in one area can throw up either problems or successes from which other areas will want to learn. We shall need to subject the deals to scrutiny, on the Floor of the House or in the Select Committee, to establish how well they have worked in practice, whether they have achieved the success that we wanted them to achieve, and whether such success can be extended to other areas.
Secondly, I think that the House will want to examine the performance of different Departments—and I noted the Secretary of State’s reference to his previous reports on performance. I suspect that there is still more enthusiasm in some parts of the Government than in others about the whole devolution idea. I am sure that the Secretary of State could not possibly say anything, but he knows exactly what the realities are from his experience of negotiating with his colleagues.
Finally, I think that after, say, two years of the workings of what are rightly disparate deals that reflect the particular needs of particular areas—for that is what the construction of these deals is all about—we shall want to examine the overall constitutional position of central and local government. We shall want to think about what the next stage should be, and about whether general principles that we have learnt from the deals need to be applied more widely. I am thinking particularly of fiscal devolution. If Members look at any of the local government systems in western Europe, they will find that those local authorities have the power not just to spend money that central Governments give them, but much greater power to raise their own revenues. I recognise that the Government have taken an initial step forward with the full localisation of business rates.
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We shall obviously want to scrutinise the way in which that is done, but I hope that it is merely the first stage of fiscal devolution, as well as the spending devolution with which this Bill is mainly concerned.
9.52 pm
Mr Christopher Chope (Christchurch) (Con): I thank my right hon. Friend the Secretary of State for the thoughtful way in which he responded to the concerns that were expressed about amendment 56. I think that what he said will be very helpful in ensuring that the Bill is not just about devolution but evolution, and that changes happen gradually and work with the grain of what the people want locally, rather than being imposed top-down and from the centre.
What concerns people about local government—apart from the level of local taxes—is their wish to have some control over the way in which their own communities develop, and to control planning in particular rather than its being controlled by much more remote communities. For a short time I was a member of the Inner London Education Authority, which purported to make decisions on education matters throughout the inner-London boroughs. Most of its members had never ventured outside their own local authority areas, let alone visited all the other parts of London that were covered by ILEA. The danger with very large authorities is that they can lose touch with the sensitive issues that cause the greatest concern to our constituents and to local residents. I hope that as we evolve different administrative and representational models for local government we will bear in mind the need to retain the very powerful local involvement in planning. I speak on behalf of the people of Christchurch, an ancient borough with a priory church that goes back over 900 years where people enjoy the opportunity to elect their own local mayor. One of the downsides of some of the proposals is that they could result in people losing the power to be able to elect their own local mayor for their council—the person who could speak on behalf of the town. Councillor Spreadbury, who, sadly, died about a year ago, had the privilege of being the mayor of Christchurch in five successive decades, having welcomed Her Majesty in 1966 and then had four other successive terms. He was typical of a local person brought up in the area and truly representing what the community felt.
Why not retain the distinctions between the different parts of our country? Why try and merge and homogenise the New Forest with Christchurch or Christchurch with East Dorset? A lot of change could be achieved by allowing back office services to be worked out together and by having single chief executives instead of multiple chief executives, but we must not lose sight of the fact that ultimately local government is for most people the body to which they look to take decisions in the best interests of the local citizens.
Bill accordingly read the Third time and passed, with amendments.
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House of Commons Members’ Fund
Motion made, and Question proposed,
That Mr Richard Harrington be discharged as a Managing Trustee of the House of Commons Members’ Fund and Ian Blackford, Mrs Cheryl Gillan and Sir Alan Meale be appointed as Managing Trustees in pursuance of Section 2 of the House of Commons Members’ Fund Act 1939.—(Chris Grayling.)
9.57 pm
Mr Christopher Chope (Christchurch) (Con): This gives us an opportunity to ask the Leader of the House: whither the House of Commons Members’ Fund and the trustees whom we are appointing this evening? A number of us feel the members’ fund and the statute that set it up has slightly lost touch with today’s reality. I hope my right hon. Friend will be able to say, in a very brief response to this debate, that he is minded to have a look at the future constitution of the members’ fund and whether it might evolve into a House of Commons benevolent fund to look after the dependants of former Members of this House. At the moment, the benevolent fund aspect of the members’ fund plays too small a part and I think there is something to be said for establishing a proper benevolent fund that could then take over some of the responsibilities of the current members’ fund.
9.58 pm
The Leader of the House of Commons (Chris Grayling): My hon. Friend makes an important point, and this issue is currently being pursued by our hon. Friend the Member for Mole Valley (Sir Paul Beresford). We do have to bear it in mind that one of the reasons this support has existed over the years is that for those unfortunate enough to lose their seats in this place at a general election, there can often be an immensely difficult transition. Often it is not as easy as some outside might think for them to move into employment, and of course they may run into difficulties later on in their careers.
This place has had a long and right tradition of paying due attention to, and looking after, those who have served this country and this House but who have ultimately found themselves in need. My hon. Friend’s point about the need for this to be a benevolent fund in the future is well worth serious consideration. I understand the point he is making. We have three excellent appointments in the new trustees who are joining the fund, and they could play an active role in that.
I should also like to pay tribute to my hon. Friend the Member for Watford (Richard Harrington), who has done first-class work in this role and has now moved on, thanks to his recent appointment as the Minister with responsibility for Syrian refugees.
My hon. Friend the Member for Christchurch has made an important point, and I will make sure that his comments are drawn to the attention of the trustees. I encourage him to talk to my hon. Friend the Member for Mole Valley, but I will also ensure that the matter is
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put on to the agenda of the House of Commons Commission, to be discussed at a meeting in the near future. This is an area in which the House has always done the right thing in the past, and there is good reason for us to carry on doing so in the future.
Business without Debate
Delegated Legislation
Motion made, and Question put forthwith (Standing Order No. 9(6)),
Business of the House (8 December)
That at the sitting on Tuesday 8 December the Speaker shall put the Questions necessary to dispose of proceedings on the Motion in the name of James Brokenshire relating to Cross-Border cooperation to tackle serious and organised crime: Prüm not later than three hours after their commencement; such Questions shall include the Questions on any Amendments selected by the Speaker which may then be moved; proceedings may continue, though opposed, after the moment of interruption; and Standing Order No. 41A (Deferred divisions) shall not apply.—(Chris Grayling.)
Motion made, and Question put forthwith (Standing Order No. 118(6),
Police
That the draft Police and Criminal Evidence Act 1984 (Codes of Practice) (Revision of Code E) Order 2015, which was laid before this House on 9 November, be approved.—(George Hollingbery.)
European Union Documents
Motion made, and Question put forthwith (Standing Order No. 119(11)),
Capital Markets Union
That this House takes note of European Union Documents No. 12263/15 and Addenda 1 and 2, a Commission Communication: Action Plan on Building a Capital Markets Union, No. 12601/15 and Addenda 1 and 2, a Commission Proposal for a Regulation laying down common rules on securitisation and creating a European framework for simple, transparent and standardised securitisation and amending Directives 2009/65/EC, 2009/138/EC, 2011/61/EU and Regulations (EC) No. 1060/2009 and (EU) No. 648/2012, and No. 12603/15, a Commission Proposal for a Regulation amending Regulation (EU) No. 575/2013 on prudential requirements for credit institutions and investment firms; also notes that the Government supports the Commission’s efforts to ensure that the Capital Markets Union action plan supports jobs and growth, and in particular that the Government welcomes the focus on helping small and medium-sized enterprises (SMEs) get the funding they need to grow and succeed; and further notes that the Government welcomes the Commission’s proposals on securitisation, which provide a framework for the revitalisation of securitisation markets in a prudent and sound fashion, in order to improve access to finance across the wider economy and help to deliver on the objectives of Capital Markets Union.—(George Hollingbery.)
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Domestic Oil Purchasing Syndicates
Motion made, and Question proposed, That this House do now adjourn.—(George Hollingbery.)
10.1 pm
Mr Mark Williams (Ceredigion) (LD): I am grateful for this opportunity to raise the issue of domestic oil purchasing syndicates in my own constituency and in many rural communities throughout the United Kingdom. This is apparently not the most scintillating of titles for a debate, but I believe that the subject is of significance, certainly for my constituents.
The Minister of State, Department of Energy and Climate Change (Andrea Leadsom) indicated assent.
Mr Williams: I am pleased to see that the Minister acknowledges that.
The development of domestic oil purchasing syndicates is an important and growing trend in many areas of the UK. [Interruption.] I welcome the hon. Member for Strangford (Jim Shannon) to his place; I was wondering where he was. Those syndicates are helping many communities to save substantial amounts of money by buying their off-grid fuel collectively. This is also helping to tackle the serious issue of fuel poverty in many parts of the country. That issue is not unique to rural areas, but I want to concentrate on those areas this evening.
When communities organise to combine their orders, whether they are communities of single numbers or hundreds, they can negotiate discounts with suppliers by decreasing the number of vehicles that the supplier needs to send to an area, and guarantee the purchase of all the fuel delivered. So there is a gain not only for our constituents but for the suppliers. These arrangements can help substantially to decrease the cost to each member of the syndicate or club, and help to tackle some of the most pressing problems associated with the cost of fuel. Fuel prices represent a serious problem for many rural communities, including not only the scattered hamlets but the bigger towns of my constituency.
In Wales as a whole, 20% of all households still have no access to gas from the grid and are reliant on more expensive forms of fuel, such as oil and coal, as their main source of heating. I have the privilege of representing Ceredigion, a vast tract of rural west Wales with 700 farms and 147 communities. That gives hon. Members an idea of the kind of rurality I am talking about. In my constituency, a majority of households—69%—do not have access to mains gas, and many people are therefore reliant on the more expensive means of heating their homes. This issue is not limited to Wales. Sizeable areas of the United Kingdom, from the west country to the highlands of Scotland—and, I dare say, Northern Ireland as well—have a substantial number of households that cannot access mains gas. The choices available to those households are therefore limited.
The higher cost of off-grid fuel is compounded by other factors such as the age of the housing stock and poor energy efficiency—something that is especially problematic in rural communities with large numbers of solid-wall detached houses. Beyond the image of the beautiful countryside with its thatched cottages and clotted cream, there lies a deeper problem relating to heating houses and keeping our residents warm. There is an
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attractiveness to many of those isolated rural homes during the summer months, but it belies the reality of living in such old housing stock during the winter. Finding ways to ensure that families and vulnerable people living in rural areas are able to keep warm during the winter months is a major challenge that we must tackle on a cross-party basis.
The huge potential of oil syndicates in tackling fuel poverty was first brought to my attention by the late Jane Wakeham, a constituent of mine from the famous, or infamous, village of Llanddewi Brefi. I should declare an interest, as my home on the clifftops of west Wales is oil supplied and my wife, who manages these things on behalf of our household, actively seeks out syndicates wherever they are.
Jim Shannon (Strangford) (DUP): This is an important subject, and it is always nice to speak about these matters in Adjournment debates. In my area, if a group of elderly people or syndicates come together, they can buy together, get the delivery at the same time and save up to 8p a litre. Does the hon. Gentleman feel—perhaps the Minister will also reply to this—that we should put more focus and emphasis on the elderly, because people are living longer?
Mr Williams: I very much agree with the hon. Gentleman about that. He would also recognise that elderly people and less advantaged groups in our society are looking for the lead that somebody in a syndicate can give to them so that they can get the benefits and reductions in their fuel bills to which he alludes.
Jane Wakeham got in contact with me some years ago as she was seeking my support in applying for funding from the Department of Energy and Climate Change to help set up a fuel club. Under the previous Administration and our coalition Government, there was a time when a small pot of money was available that people could apply for—it was described as a competition—so that best practice was encouraged around the country, and I will ask the Minister a little about that later. Were Jane still with us, I know that she would be greatly impressed by the work of Clwb Clyd—or Club Cosy—in my constituency. That project was funded over an 18-month period by the Welsh Government and run by Ymlaen Ceredigion—I commend the work of Rachel Lilley and her colleagues there—on behalf of Ceredigion County Council, which has brought together fuel clubs throughout the county.
It was through an attempt to tackle fuel poverty in the fuel poverty forum in my constituency that the Club Cosy project came about. With representatives from the county council, the local health board, local housing associations, the West Wales Credit Union, Age Cymru—this goes back to what the hon. Gentleman said about elderly people—Citizens Advice and others, the forum began to explore the work done by oil clubs in the county, and explore the benefits of bulk fuel purchasing and overcoming the problems of minimum purchase ordering. For people on a low income the issue of the minimum purchase order is very important, as it is very difficult for many people to purchase that minimum. There is a serious concern about the many reports of constituents filling their own containers at garages, and filling their own tanks in their yards or their gardens—we should be avoiding that at all costs.
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Before the Club Cosy project, coverage in Ceredigion was patchy, the number of co-ordinators was small, and there was very little co-ordination between clubs covering different areas of the county to maximise and co-ordinate their purchasing power. Since the project started, the number of co-ordinators has increased, coverage has improved to cover the entire county, co-ordination has improved and the number of syndicate members has more than doubled. Crucially, awareness has been raised, so that people know that if there is a challenge to household budgets, and my goodness there is, there are alternatives that can be pursued. In addition, the project has included specific work with syndicate co-ordinators to target and identify the fuel poor. Co-ordinators are going out into the community, rather than waiting to be asked. We have had targeted roadshows with housing associations, energy advice being offered directly in the home and work being done specifically with the most vulnerable households through joining a syndicate. The experience from the Club Cosy project has been used to develop a document, which I will send to the Minister, explaining how sustainable models for fuel syndicates can be established, which should be helpful to other parts of Wales and further afield.
There are thousands of fantastic schemes across the country. My right hon. Friend the Member for North Norfolk (Norman Lamb) has told me about the Thinking Fuel project in his constituency, which provides similar help to local communities to improve co-ordination, lower costs and help decrease the number of people living in fuel poverty.
One syndicate in my constituency has recorded savings of anything from £26 to £76 for every 1,000 litres ordered. That is a 10% saving over an 18-month period, making a substantial difference to many households. In many cases, this has helped people on long-term agreements with fuel suppliers to revisit and review their current arrangements, often finding that they have been paying substantially more than they should have been.
There are also other benefits to forming syndicates. A syndicate of just five households in one hamlet can reduce the number of tankers travelling to deliver their fuel from five to one—an obvious, but useful statistic—which is a fact that is not lost on the companies themselves.
We can see benefits to the local economy through the uptake in bulk-buying clubs. In Llanddewi Brefi, orders are placed via the local shop and pub, enhancing their status as real community hubs. In Siop Cletwr, Tre’r Ddol, the syndicate has added value to other services in the community shop, again helping to sustain the local economy, while in Tregaron, £1 charged per order is ploughed back into the community hall fund.
The project funding for Club Cosy has now come to an end, but the legacy is firm and rooted, and I think it will continue to prosper in the future. The principle behind oil syndicates is something that we can all endorse. I am talking about collective action on behalf of customers to realise economies and bring substantial benefits to people through lower fuel bills. These community-spirited individuals often work in disparate and isolated communities, and in the case of Club Cosy, work closely with fuel distributors as well.
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This is an issue that potentially affects huge numbers of people throughout our country. Unashamedly, I want to use this opportunity to celebrate this great scheme in my constituency in the expectation that others will look closely at what has been done, and follow in its footsteps.
As I mentioned earlier, work was undertaken under the coalition Government to push oil clubs on to the agenda, and some minimal funding was made available. I look forward to hearing from the Minister that that work is continuing, because it is important. The support needs to continue because there are still some big unanswered questions. Connecting communities to the gas network may well negate the need for oil clubs, but the issue of fracking may assist in some areas.
The gas network as we know it simply does not allow for the distribution of piped gas in many rural areas. The choice available is an issue. Quite rightly, the Government talk about switching within specific forms of energy, but we do not have the choice in many rural areas. That presents a problem to Governments both at a Westminster and a Welsh level, and to the communities that are struggling to cope with bills.
I must commend the work of third-sector organisations, which are well equipped—they are not well resourced—to advance the cause of switching. The citizens advice bureau in Ceredigion and Age Cymru have made a real difference to helping people switch. That is important. Third-sector organisations need support in advancing that cause.
There are good and bad negotiators. Some of our fellow citizens, if they are provided with the right information, will be good at arguing their case for switching and for better tariffs. What better way of seeking a cheaper fuel tariff than having someone to take a lead in the negotiations? Again, that is one of the benefits of this scheme.
When I speak to syndicate co-coordinators, one issue keeps cropping up and that is funding. Funding is available through the Department of Energy and Climate Change for those attempting to save energy and keep their homes warm. Initiatives such as big energy saving week are laudable, but many syndicates find it difficult to access even the most basic core funding. The benefit of having a group of individuals taking the lead on this issue cannot be overstated and funding is therefore important. We need to continue to consider ways of disseminating best practice. Will the Minister look into this issue and ensure that oil syndicates can apply for that support and that those who choose which projects to fund, if funding is available, are particularly aware of the needs of rural communities?
Another important point, which again relates to the issue raised by the hon. Member for Strangford (Jim Shannon), concerns about elderly people. Much of the switch agenda is advanced through the internet and through emails, and as I say in any debate that mentions Ceredigion, there are limitations in the broadband roll-out. There is also a demographic divide, as older people are less confident. Again, that points to the benefits of syndicates, as people do the work for their members. Will the Minister detail what action she can promise to help encourage and support the uptake of domestic oil purchasing syndicates more widely?
I am mindful of the time—we waited for this Adjournment debate—but I want to give just one example of a constituent of mine who has benefited from Clwb Clyd,
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or Club Cosy. The Club Cosy coach visited my constituent at her home on a social housing estate in Ceredigion, an area where there is a high risk of fuel poverty. She was living in a cold and draughty house and her boiler was using excess amounts of oil due to a thermostat fault. With high bills, paying for oil was a real worry, eating up a huge amount of her limited budget. Tailored advice was given on draught proofing, joining a syndicate and applying for a credit union fuel account. Her response, other than gratitude, was to become so interested in the fuel syndicate idea that she started one on her own with her neighbours on the social housing estate. She was included in Club Cosy’s networking activities and events, and the club has gone from strength to strength. Many of her neighbours have benefited from her initiative. Yet again, that is a good example of an excellent community project making a difference for a lot of people in my constituency.
I hope that I have proved that what might have seemed at first to be a lofty subject for a debate—development of domestic oil purchasing syndicates—is an issue of great significance for a great number of people in my constituency and elsewhere. I commend the work to the Minister who, I know, is supportive. I look forward to hearing what she has to say.
10.18 pm
The Minister of State, Department of Energy and Climate Change (Andrea Leadsom): I congratulate the hon. Member for Ceredigion (Mr Williams). This is an important debate and I am interested to hear about Club Cosy and the initiatives in his constituency. As I am also off-grid, I, too, participate in an oil buying group, which has been of great personal benefit to me.
The debate is a welcome opportunity to discuss the importance of domestic oil purchasing syndicates. My priority is keeping all energy bills low for hard-working families and businesses, as well as keeping the lights on and moving towards a green energy future. Heating oil is a small but significant part of the energy sector. About 1.5 million households are dependent on heating oil to heat their homes and typically they are among the 4 million not connected to the gas grid in the UK. The Office of Fair Trading noted in its off-gas grid market study in 2011 a large variation between the four nations of the UK, with 80% of homes in Northern Ireland off the gas grid compared with 12% in England, 21% in Scotland and 19% in Wales. Proportionally, more off-gas grid households are single occupancy and/or house a person over the age of 60, so the hon. Gentleman is right to point out the effect on elderly people who are also among the fuel-poor.
Last year, nearly 4 billion litres of heating oil, which is primarily used for heating, was delivered into the UK market. As the hon. Gentleman said, heating oil is brought to consumers by a local distributor company from the refiners and importers. Some distributors have their own storage where they can keep a few days’ supply, while those that do not have storage collect oil from a wholesale terminal and deliver it directly to their customers. The price they charge is dependent on how much they had to pay for the oil, the volume required, and the cost of delivery. DECC analysis suggests that on average, at national level crude oil price changes are fully passed through into heating oil prices within a month. At times, the wholesale price for heating oil may also be influenced by local supply and demand issues.
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The average cost of heating oil is currently 34.51 pence per litre, which is down 18p from its peak in September 2014. I have been clear to the oil companies that we expect them to continue passing on any future oil price falls, bringing benefits to consumers and the wider economy.
Jim Shannon: It is always a pleasure to hear the Minister reply to a debate. How will her Department focus attention on those in fuel poverty? Many of those people are not elderly, because some people are on benefits and have a low income. How does the Minister hope to focus on those people?
Andrea Leadsom: The hon. Gentleman has raised that issue in a number of debates, and I agree that fuel poverty is a key issue for our energy support. Everything that we do to support fuel, energy efficiency and warm homes will be directed at fuel poverty.
We are keen for people to join an oil-buying group because they can benefit from reduced prices and the ability to negotiate for large volumes, meaning cheaper oil for all those in the group. Action with Communities in Rural England, Citizens Advice, and the Federation of Petroleum Suppliers have produced guidance on best practice for forming and operating oil buying clubs. ACRE is made up of 38 rural community councils across England. Those are charitable local development agencies—generally based at county level—which have a strong history of leading, supporting, and enabling community initiatives to help communities to help themselves. That includes running oil buying clubs.
Citizens Advice has produced guidance for consumers who experience difficulties with their heating oil suppliers, and set out what to do if people are struggling with their bills. It also has a website search function to find oil clubs, although that is not necessarily a comprehensive list. The sector trade association, the Federation of Petroleum Suppliers, has produced separate guidance on oil-buying groups and published a mandatory code of practice for its members, as well as a customer charter to engage with consumers on a fair and consistent basis and implement best practice to raise standards. The hon. Member for Ceredigion mentioned work by the previous coalition Government, and the Cheaper Energy Together scheme through which the Government funded three oil buying clubs. A decent amount of lessons were learned, and informed guidance allowed new clubs to form and meet to the benefit of consumers.
Some suppliers offer a means of spreading the cost, such as the option of paying by monthly direct debit with a fixed-rate payment scheme. That allows customers to know how much they will be paying for oil over the coming year, and to budget accordingly. Some suppliers offer a top-up scheme where, either through telemetry or distributor knowledge, customers’ tanks are filled as required. Through the telemetry system, suppliers are automatically informed when a tank requires filling. As well as reducing the risk of customers running out of oil, that has the advantage of providing alerts for rapid drops in level, such as those that, sadly, are occasionally caused by theft or leakage. Most companies will inform customers of the price prior to filling their tank.
Although in their infancy, pay-as-you-go schemes linked with credit unions seem to have real potential for supporting vulnerable consumers. Such schemes provide flexibility of purchase, and ensure that when customers
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need fuel they are able to purchase it. As the Federation of Petroleum Suppliers advises, it is always wise for people to check their fuel price against other retailers on a regular basis, and to ask their suppliers to confirm the price prior to delivery.
The Government are fully committed to reducing energy bills, and energy efficiency is a key part of that. The spending review announced our intentions on a long-term, better focused successor to the energy company obligation from 2017-18 which will run until 2021-22, with a maximum envelope of £640 million per annum, rising with inflation. That will support the insulation of 1 million homes over the course of this Parliament. Officials have engaged with stakeholders to design a successor to ECO, and we will consult on our proposals next year.
We are also committed to helping people move away from dependence on fossil fuels. The renewable heat incentive is the world’s first long-term financial support programme for renewable heat. It provides financial incentives to install renewable heating in place of fossil fuels. The scheme is designed to bridge the gap between the cost of fossil fuel heat sources and of renewable heat alternatives with financial support for owners of participating installations. As of 31 October 2015, over 43,000 installations have been accredited on the scheme and over 481 GWh of heat has been generated and paid for.
I want to assure the hon. Member for Strangford (Jim Shannon), who made a point about fuel poverty, and the hon. Member for Ceredigion that my priority is keeping bills low for families and businesses while meeting our climate and fuel poverty goals and continuing to keep the lights on. I should like to draw attention to the work of my hon. Friend the Member for Suffolk Coastal (Dr Coffey), who used to chair the all-party group on
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off-gas grid, and continues to raise the issue in government. I urge Members who are interested in the subject to join that all-party group. I am always keen to hear new ideas on how we can better support those who are off-gas grid.
One way in which individuals can keep their energy bills low is by joining domestic oil syndicates and, as I have said, I have personal experience of how successful such initiatives can be. I urge consumers who belong to those initiatives to buy early, particularly as winter is approaching.
Mr Mark Williams: I am grateful to the Minister for her response and the enthusiasm that she is sharing with us, because this is an important issue. She alluded to something that happened under the coalition Administration. Without wanting to be too nostalgic for those days, may I ask her to reflect on that scheme and the funding for those syndicates? A lot of work to publicise syndicates relies on the third sector. It is something that could captivate people. A lead from Government, with a little money, would go a long way.
Andrea Leadsom: I will certainly take that away and look seriously at what the hon. Gentleman says. Only recently, we conducted a small campaign in social media and in the general media to try to encourage people who are part of oil buying syndicates, and people who are not, to buy early in preparation for the winter and to try to grab prices while they are relatively low.
I hope that this debate has been helpful to the hon. Gentleman—and to the hon. Member for Strangford—and I sincerely congratulate him on raising it.