Local Government Bill [HL]

My Lords, I shall speak also to Amendment 3. Before addressing the detail of these amendments, I should register our concern at having reached Committee stage without having had sight of the transcript of Mr Justice Ouseley’s pronouncement at an oral hearing on 5 July. We take it from the communication that we have received from the Minister that the effect of the pronouncement was to quash the orders with effect from 5 July, nullifying from that date the full effect of the orders and, in particular, causing the term of office to come to an end of those councillors who remained in office as a result of Article 11 of the two orders. Should our understanding be changed by eventual access to the transcript, we reserve the right to return to certain matters on Report. However much we deprecate the current situation, we have to accept for the purposes of the Bill that the quashing of the two orders obviates the need for Clause 1(3) and that the proposals for unitary government for Exeter and Norwich, which were the subject of the orders, are brought to an end. Furthermore, Clause 1(1) will, if enacted, preclude the current proposals for Exeter, Norwich and Suffolk from being taken forward at all. However, as we have discussed previously, the provisions of the Local Government and Public Involvement in Health Act 2007 are being left intact by the Bill, so the opportunity for the Secretary of State to invite principal authorities, including Exeter, Norwich and Suffolk, to bring forward proposals in the future for unitary status remains. Of course, we can take no encouragement from what the noble Baroness said at Second Reading about the likelihood of that happening. She stated that, "““it would also be fair to say that the Government have no plans to issue further invitations for unitary authorities and, if there were applications, they would be viewed against the serious economic situation we are in at the moment and consideration would be given to whether they offered any value for money whatever””.—[Official Report, 30/6/10; col. 1832.]" Value for the money is, therefore, at the heart of the Government’s concerns. The impact assessment for the Bill is essentially the mirror image of the impact assessment for the original orders. We are faced with three scenarios: the status quo; the value for money arising from unitary Norwich and Exeter; and value for money from the Boundary Committee proposals. The latter two have been the subject of detailed work and independent review. I believe that the Minister now accepts that the transition period costs and savings, for example, from Norwich and Exeter unitaries were broadly equivalent and that ongoing savings could amount to £6.5 million per year. All that we have for justifying continuing with the current arrangements is the assertion that the savings achievable through restructuring could be made by the councils working more closely with each other. We do not know whether the savings that the Government have in mind reflect the level of savings that would flow from the Boundary Committee proposals or from the Exeter and Norwich proposals. The Minister might take the opportunity to say which. No detailed figures have been presented to us; no explanation of the basis on which the Government are making this judgment has been given; no independent verification of the judgment has been done; no assessment of what history tells us about the propensity of the councils to co-operate has been made—hence our amendments. Amendment 1 would simply extend the reference to the 2007 Act to the whole Bill, not that there will be much of it left. Amendment 3 gives us an opportunity to test the Government’s assertion around the savings that they believe are possible without restructuring. It would require an independent report to be prepared to determine whether value for money is being delivered for each authority whose unitary proposals are stopped by this legislation. What do we mean by ““value for money””? Value for money is about offering efficient, effective and joined-up public services, delivered through maximising collaboration and technology. It is about services that are effective, responsive and best suited to meet the needs and preferences of local and business communities. It is ultimately about services that people use because they value them, not because they have no alternative. Those services should reflect consideration of demand and other factors in the area, including areas of deprivation, transport links and travel to work, and shopping and leisure patterns. They should involve communities playing an active role in influencing and shaping both their planning and delivery. The coalition Government’s programme proposes to abolish the comprehensive area assessment and to cut local government inspections, so whatever performance framework will be left intact or will be introduced to see what progress any council is making is a matter of uncertainty. In light of this, the amendment represents an extremely modest proposal. It would give the principal authorities at least two years to make progress. It does not seek to direct the Secretary of State to any course of action should the review show the status quo not to be delivering value for money. However, it would provide an opportunity for some reflection on the decisions that prevent Exeter, Norwich and Suffolk from attaining unitary status—reflection that, regrettably, the impact assessments make clear is not otherwise to be done. I beg to move.