Local Government White Paper

My Lords, I am grateful for the welcome given to the White Paper. I have sympathy with the pressures on Opposition Front Bench spokesmen who have to respond to a very detailed White Paper at short notice. I fully intend to make myself and officials widely available over the coming days and months so that we can sit down and discuss the detail as fully as possible because there is a great deal to consider and on which to take collective advice from the wisdom available around this Chamber. I am particularly pleased to see the noble Lord, Lord Bruce-Lockhart, in his place because I would like to say how much we have appreciated working with the Local Government Association. In response to the cynical voices on the Opposition Benches, I should point out that we have received a great deal of support from the LGA for what we have brought forward because it is very much in tune with what the association has been telling us would be right and proper for local authorities. The noble Lord, Lord Bruce-Lockhart, himself said this morning that these are significant changes. In the time I have available, I shall address the major issues. There is no way that we would agree that this is a missed opportunity. This is a consensual paper and I look forward very much to it growing more consensual over the coming months as we bring forward legislation because nothing is more important than that we work together in local government to make the best possible offer to citizens. The White Paper has preceded the Lyons report because we were right to say that deliberation on form and function comes first. In his interim report, Sir Michael Lyons influenced our thinking in the emphasis he placed on the shaping of powers and what that would involve, as well as on new ways of working. In turn, we will read and consider extremely carefully what he brings forward. He now has a full explanation of what we think local government can and should do in the future. This is a seamless process. When the local government Bill is brought forward it will give consideration to the things which need legislation as set out in the White Paper, and I will share those with the House as soon as possible. Obviously we have to give a lot of consideration to what Sir Michael Lyons says and therefore the form of the Bill is not yet resolved on issues of that sort. But in no way has it been kicked into touch; far from it. With regard to the impact that this Bill may have on a GLA Bill and the powers of the Mayor of London, there will be no impact. The noble Baroness asked a number of questions about the sequence in which these things will be dealt with. I have spoken about Lyons, but Barker is of course another example. We will listen hard to what Kate Barker has to say about the ways in which we can improve the planning system, building on what we have done already and addressing the culture of change in planning so as to bring land allocation, land use, housing, employment and productivity closer together—closer to the ground—and make it more effective. On the devolutionary powers in the Bill, when noble Lords read the White Paper they will see the scope of the devolution. Let me take, for example, the way the powers of the Secretary of State have been reduced. The Secretary of State will no longer be able to determine whether parishes are created; that will go to the district councils. Equally, government will no longer account for whole elections; that will now rest with a resolution of the council. The Secretary of State will not have any power to confirm by-laws. Devolution goes along with the emphasis we give in the first chapter of the White Paper to the voice of the local community and how to amplify it. We emphasise putting best value on the ability of the council to inform, involve and consult so that local people can test councils against best value and ensure that they have achieved it—as indeed many councils do to the best of their ability. I turn to city powers. This is a work in progress and I hope noble Lords will agree that it is a sensible approach when we are talking about something as radical as looking at ways of giving more powers to cities to enable them to become more efficient—powers which they have told us they want in the enormous consultations we have held not only with cities but with towns around the country as well. Over the next few months we will be looking at the joint review of economic development when considering how to develop city plans. The Department for Transport, for example, is looking to devolve more transport powers, and we will come forward with more worked-out plans when we have had an opportunity to consider the Leach review, the Barker review and the Treasury report on sub-regional economies. On the performance regime, I am glad that the noble Baroness opposite recognises what a radical step it is to strip out the 1,200 targets and reduce them to 200. They were set alongside the agreement on national outcomes, which will itself determine what all local authorities will work towards: the very top, high-level national priorities which will be determined in the 2007 Comprehensive Spending Review. These are to be 200 indicators which will be agreed between local authorities and central government. But more important again, 35 local targets—different ones for each local region to address particular problems such as economic development or the delivery of public health systems—will be set to reflect local needs. That in turn will be reflected in the local area agreement—the delivery plan—which, for the first time, will be on a statutory footing. This will be underpinned by duties which will attach to the local strategic partnership, with partners not only in local authorities but in the whole range of public services. There is a list of those named partners. There will be more power to front-line councils, which is extremely important. As to the processes for the direct election of leaders—one of the three options—I should say to the noble Baroness that we are not going to impose mayors. This is not mayors by the back door but an open and very transparent process which will depend a great deal on what the local authority itself wants to do. As to the powers of local councils, the review will look not only at the local call for action but also at training and a stronger role for them. I am glad that there is a welcome for the reformed code of conduct. I shall explain in writing how the community call for action will work. I disagree with the noble Baroness—I think it is a very clear diagram. Would that all my papers had such clear diagrams. Let me address the issue of unitary status and how it will be managed. We have made it clear that this is an invitation to shire counties which they can trigger and determine themselves. The criteria are set out. We have said quite clearly that we will look at the broad consensus—at what determines it and who supports it. No district council or even groups of councils will have a veto on it. I am very glad that the noble Baroness welcomes the additional powers for parishes and the right that districts will have to create parishes. I am grateful for the welcome. I look forward to working with the Opposition when we introduce the Bill to make it a good Bill and a good settlement for local government.