Local Government Bill [HL]

My Lords, we have had an interesting and at times passionate debate. Before I go further, I will again welcome the Minister to her new role and endorse the comments made about her by my noble friend Lady Hollis of Heigham. We have heard contributions from different sides of the argument. The contributions from the noble Baroness, Lady Hanham, the noble Lords, Lord Rennard and Lord MacGregor of Pulham Market, the noble Baroness, Lady Scott of Needham Market, the noble Viscount, Lord Ullswater, the noble Lord, Lord Tope, and the noble Earl, Lord Cathcart, were in support of the Bill and of the arguments advanced by the noble Baroness, Lady Hanham. The contributions from my noble friends Lord McKenzie of Luton, Lady Hollis of Heigham and Lord Grocott were in opposition to a Bill that seeks to deny unitary authority status to Norwich and Exeter and to stop any further progress in Suffolk. We also heard an unexpected intervention by the noble Lord, Lord Burnett, which was perhaps the most passionate, as well as being the briefest. However much some might like to dress it up, this is a political issue to be determined by Parliament. The coalition Government do not like the decision made in March this year in Parliament, and in particular in the House of Commons, that Norwich and Exeter could have unitary authority status. These were decisions made by Parliament, not by the then Secretary of State under delegated powers. Nor do the coalition Government like the earlier decision that could have resulted in one or more unitary authorities separate and distinct from Suffolk County Council. The coalition Government are now seeking to go down the same parliamentary road, this time to reverse the decision with another Bill. They were a bit slap-happy on the serious question of whether the Bill was a hybrid. Your Lordships’ House made sure that further evidence on that issue was properly considered. Since Parliament made its decision, we have also had a court judgment. It said that the stance of the previous Secretary of State on Norwich and Exeter having unitary authority status was not irrational and that he was entitled to reach the view that he did on the merits of the proposals. The judgment went against him largely on the basis of process. All the issues about the stance of the previous Secretary of State, including issues about process, consultation and criteria, as well as the arguments for and against by supporters and opponents of the change to unitary authority status for Norwich and Exeter, were set out, as the noble Earl, Lord Cathcart, said, in the report of the Merits of Statutory Instruments Committee of this House. The content of that report, which could hardly have been music to the ears of the then Secretary of State, was widely quoted both in the debates in this House and in the debate in the other place. It must therefore be a matter for reflection that a court has made a ruling that could be regarded as seeking to negative not a recent decision of the previous Secretary of State but a very recent decision of Parliament on an issue of this kind, when it appears that all the arguments were before Parliament when it made its decision only a few months ago. It would suggest that, on occasions, the division of powers between the legislature and the judiciary is not quite as clear-cut as some would have us believe. There is no criticism of the coalition Government over the principle of seeking to change or rescind legislation with which they do not agree by inviting Parliament to make a different decision. That is how an issue such as this, which has been the subject of a very recent decision by Parliament, should be addressed. However, the reality is that the move by the coalition Government to deny unitary authority status to Norwich and Exeter, and to ensure that no further progress is made in Suffolk that might lead to a unitary authority, is unfair and perverse. Indeed, the decision to quash any further moves that might lead to a unitary authority in Suffolk shows that the coalition Government’s decision is not based on looking at the merits of each case but is an objection in principle, to put it at its most polite, or, to be rather nearer the mark, an objection weak on logic but strong on ideology. The Secretary of State clearly did not go through all the papers and information available with any degree of thoroughness, as he made his decisions almost before he got his feet under the table in his new office. The case for single-tier authorities is strong. The then Secretary of State for the Environment, Michael Heseltine, said in the other place in 1991 that, ""unitary authorities are more clearly responsible for the delivery of services, and more clearly accountable for the bill local people are expected to pay ... two tiers may lead to excessive bureaucracy and duplication of effort"." He added that single-tier authorities would enable the Government, ""to increase the momentum of their existing policies to enable decision-making and responsibility to be more directly in the hands of the people".—[Official Report, Commons, 23/4/91; col. 901.]" Certainly, in the case of Norwich and Exeter, value for money can hardly be a concern, as my noble friend Lady Hollis of Heigham powerfully argued. Even the then Permanent Secretary at the DCLG stated that, while the proposals would involve estimated net costs of £400,000 over the period to 2014-15, annual ongoing savings thereafter were estimated at £6.6 million. He acknowledged that, if the proposed approach of a unitary Norwich and Exeter achieved the economic gains envisaged, there might be offsetting benefits to the public purse from an increase in jobs, extra local and national tax revenues and reduced benefit payments. Between 1995 and 1998, 46 new unitary authorities came into existence covering over a quarter of the population in non-metropolitan England. Only four of the 39 former county councils disappeared entirely, which does not suggest that an efficiently run county council cannot survive and prosper where unitary authorities have been established. I do not know whether the new coalition Government have now taken a decision that unitary authorities act as a brake on progress rather than as an engine for economic progress both within their own area and the surrounding areas, and whether they now intend to abolish them. That is not an unreasonable question to ask, as it was the Conservative Government’s Local Government Act 1972 that established a two-tier structure for the whole of England and showed their then dislike, which appears to be resurfacing with this Bill this afternoon, of single-tier authorities for cities such as Norwich. The Liberal Democrats, of course, used to believe that there should be a single principal tier of local government—and I think that the noble Lord, Lord Tope, is still in favour of it in his own area—unless the local community preferred other arrangements. However, that is clearly not their policy if it is Norwich—the largest non-unitary authority in the country—or Exeter that wants unitary status. The principle of unitary authorities is not new, including in county council areas. For example, Devon already has two established unitary authorities; Wiltshire, I believe, has Swindon; and Bedfordshire had Luton. Why, then, should Norwich and Exeter not also be given the unitary authority status that they, and not the previous Government, have sought? Other county councils prosper alongside unitary city authorities, so why not Norfolk and Devon? We have had no plausible answer to that question from either wing of the coalition Government, and that is the question that the noble Earl, Lord Cathcart, should be raising not with me but with his own Front Bench.