Local Government Bill [HL]

My Lords, it is a pleasure to follow the noble and learned Baroness, Lady Butler-Sloss. If I recall, the first time that we debated this topic in this House a little over three months ago, the order was reversed, so I am particularly pleased to be able to follow on this occasion. I was rather surprised that the noble Lord chose to begin the Committee by talking about value for money. It was only a little over three months ago that he had the duty—I accept that it was his job—to move orders in this House against all the advice that they did not represent value for money, and despite an acceptance by the then Government that the orders did not meet their value-for-money criteria. There was also strong legal advice that they would certainly be challenged in the courts and that such a challenge was likely to be successful—and lo, we know now that both of those things have happened; the orders have been quashed in the courts and the costs of those legal proceedings have been awarded against the Government. When the noble Lord speaks again on this amendment, he might like to explain to us how that represents value for money and why he chooses to start by discussing value for money. It seems to be a foolish way to begin. The substance of Amendment 3 epitomises in so many ways the approach of the former Labour Government towards local government: this need always for local government to be answerable to central government—to Parliament, in this instance—and to be answerable upwards, to be telling the Government what it is doing, why it is doing it and so on. If there is to be an independent report in two or three years’ time, that report should be going to the councils concerned, particularly to the people who have elected them. It should not be going in the other direction, but that is what we in local government experienced for 13 long years from a Labour Government. I am just a little sad that already that party is showing that it learned no lessons at all from that. The other thing that worries me about this is how little understanding there seems to be on the other side of the House about the financial climate into which we have all moved and what the next few years will bring. Are we seriously saying that local authorities should spend the next two or three years—a period in which we will all be required to find at least 25 per cent and possibly 30 per cent cuts in budgets which have been continuously squeezed year-on-year anyway—worrying about structures, mergers with other authorities, and so on? These matters are always emotionally difficult and often practically difficult, and they are always expensive at least in the short term, whatever long-term benefits may eventually come. In the short term, which means this very difficult financial period, such restructuring is always expensive. It is justified on the basis of longer-term savings. Most particularly, it shows that we cannot move on from this. The election was fought by two parties, now in coalition government, which were very clear in this House and elsewhere about what would happened if they won the election. It could not have been clearer that, should the election be won, the unitary restructuring would not go ahead. I understand that the party which favoured it in the first place has not changed its mind. That is fair enough—of course it has not. That is perfectly reasonable. However, the action that the Government are taking, and were committed to taking, is very clear. What is the purpose of having a report in two or three years’ time other than to continue this argument and debate which has already been so debilitating for two or three years; and then to reopen it all again when that report is produced in three years’ time? How does that move anyone on? How does that help the people of Norfolk and Devon, Norwich and Exeter? They and we need to concentrate our efforts over the next two or three years not on restructuring but on how local authorities will work together and, where appropriate, share services. If this House should be sending any message to the counties and cities concerned, it should be: please try to put the very divisive past behind you and look forward to how you can work together in the best interests of all the people that you represent.