Local Democracy, Economic Development and Construction Bill [HL]

My Lords, I appreciate the way in which the noble Lord introduced the amendment, because I understand that he wants to get things done. I shall address the specific instance that he raised in the context of my general argument. I am very grateful to my noble friend for joining the debate and raising what I thought were very pertinent questions. The amendment provides for each RDA to delegate any of its functions to a local authority or group of local authorities in the region. It is an expanded version of a similar amendment tabled in Committee. I do not think that it comes as any surprise when I say that were it to be carried, it would create major and, I think, unforeseen contradictions and difficulties. For that reason, I hope that noble Lords will think very hard before supporting it. The most important point I want to reiterate is that this part is based on one fundamental principle: joint working between equal partners demonstrated across the single regional strategy, bringing together the RDAs and the elected boards and doing away with the dysfunctional notion of ““them and us”” when it comes to thinking through and planning and delivering policy. Just as the RDAs and local authorities will be working together on the regional strategies, we need them to work as part of the same team on the implementation and delivery of strategy. All that is contained in the argument that I began to develop in Committee in telling noble Lords about the principle and practice of joint investment planning, which can be done within existing frameworks. That form of joint planning will deliver the optimum outcomes at local level. The Government's response to the consultation on the SNR proposed that approach to enable local authorities to take on a large degree of responsibility for delivery of the programmes and projects in their area, but it is also right that the RDAs should retain final accountability for the funds that pass through them. First, I say again to the noble Baroness, Lady Hamwee, that that would help to ensure that the money is strongly focused on economic development that is of strategic value to region as a whole and is therefore good value for the money in relation to what the RDAs are about. Secondly, we need at this time to be swift and innovative to respond to changing and challenging situations. It is important that the RDAs can maintain flexibility in their budgets at this time. The key point is that the RDAs and local authorities will now jointly agree, as a result of this new opportunity, what programmes of intervention will be undertaken in particular areas. Any funding from RDAs to local authorities in any circumstances will have to follow the usual rules that apply to the RDAs. They will have to be used within the same overall financial framework that applies to RDAs. RDAs and local authorities will now jointly agree how projects within the programme will be appraised, monitored and evaluated. If appraisal systems are aligned, all parties work together. The requirements for the RDAs to ensure that accountability considerations are met should not be onerous. The virtues of investment-led planning are to focus on what will work, which should commend itself to the noble Lord, with flexibility but not bureaucracy. We have been working with colleagues from the LGA, local authorities and RDAs to develop guidance for joint investment planning. The principle that we are following is that it should be light-touch and partnership-based. The guidance will make it clear that Ministers want RDAs to allow projects and programmes to be planned and delivered through local authorities and other sub-regional partnerships: whatever, frankly, will be most effective. It will also enable RDAs to ensure that interventions across different areas are consistent with the agreed regional strategy and its priorities and reflect different economic scenarios. That is, as I say, very important. As I said in Committee, these amendments are unnecessary for achieving what we all want and what was at the heart of the SNR proposals—interventions at the right level that will align with and strengthen effective partnerships. The noble Lord described the situation in Jaywick; he had warned me a little that he would but not sufficiently. We did some rapid research in the extended interval before the debate, and I am very grateful to my officials for being very efficient and speedy. I understand that the specific project is part of the larger Haven Gateway programme, which forms part of the regional funding advice submitted by EEDA and the regional assembly for government consideration, so it appears that this work is already considered to be a priority. All of what the noble Lord wants can be accomplished under existing powers. He has asked how the investment planning arrangements could apply to a specific local project, but if it has been agreed as a priority for the region, funding should be made available under the investment planning process that I have described. Where this comes from the RDA’s budget, the RDA agrees the delivery arrangements and releases the money on that basis. The RDA retains ultimate accountability for the expenditure, but it would also retain it if they had the power to delegate which the noble Lord seeks in his amendment. That would not change.