Localism Bill

My Lords, the Localism Bill marks a turning point. For generations, different Governments have concentrated power in Whitehall. They have done so with good intentions, but as centrally dictated measures have accumulated, the result has been to tie councillors’ hands over what policies they can implement, to make public services everywhere similar and to limit the ability of local communities to influence what happens in their area. This Bill is designed to achieve an historic shift in power. It will devolve authority from Whitehall to town halls, create new rights for local communities to become more involved in local affairs, and free professionals on the front line of public services to do things in response to what communities need rather than to government demands. The Bill was first introduced in the other place in December, but most of its measures have been the topic of debate for years. There has, I am glad to say, been widespread welcome for the Bill. The Local Government Association called it a ““long-awaited and much-needed measure””. In the other place there was a strong majority in favour of its principles. During House of Commons considerations, parts of the Bill of course raised considerable debate—I appreciate that we will return to them again—such as aspects of the provisions on mayors, particularly shadow mayors, the impact of social housing reforms and the fine detail of some of the planning provisions. The Government consistently sought to build on common ground and consensus. In keeping with this, we will seek to make amendments, where they will improve the Bill, that arise from the discussion at each stage. Already in response to concerns raised in the other place, the Government have brought forward a number of amendments—in particular, to strengthen strategic planning by bolstering the duty to co-operate and to widen provisions on neighbourhood planning to make neighbourhood forums more inclusive of both local people and local businesses. As we start our considerations, I can assure noble Lords that the Government will continue to listen and, where possible, make amendments that are justified and supported across the House. There will be parts of the Bill on which we may not be able to reach agreement, but I hope that they will be few. My colleagues and noble friends Lord Taylor of Holbeach and Lord Attlee and I will want to take account of what is said and to develop consensus where possible. I shall now turn to the main provisions of the Bill. Noble Lords will know well the importance of local government in providing leadership and essential services to their local communities. The Bill seeks to give local government wider discretion to get on with that vital job. At the heart of the Bill is the general power of competence. Currently, councils can do only what legislation explicitly says they may do. With the general power of competence, they will be able to do anything that an individual can legally do. Concerns have been raised that the Bill means that local authorities will be able, for example, to stop providing valuable services. That is not so. Just as individuals have to obey the law, so councils will continue to be bound by their legislative duties. What the general power of competence will do is give councils freedom to formulate new ideas and to do things in different ways in response to what local people want without having to look over their shoulder for permission from the centre to do so. Under the Bill, the Secretary of State will have delegated powers to remove legislative barriers that prevent local authorities exercising the general power. There was debate in the other place about the extent of these delegated powers, and amendments were made there to ensure that robust safeguards are in place. The Bill will abolish the unpopular standards board regime, provide stronger sanctions against serious unethical behaviour by councillors and clarify the predetermination rules. It will lay the ground for a new generation of mayors in England’s largest cities. I am aware that this measure has generated a good deal of interest and some controversy. It is our view, however, that directly elected mayors have the potential to provide stronger leadership and enhance the prestige of their cities. It would, of course, ultimately be for local people to decide, via a referendum, whether they wanted an elected mayor for their city. The Bill will devolve to the Mayor of London greater powers over London’s housing, regeneration and economic development. With central direction having been rolled back, it will also be necessary to ensure that local authorities are accountable for all the decisions they take. For example, where authorities fail to act in accordance with EU directives, and where this results in the EU taking infraction proceedings against the United Kingdom, it will be important that culpable local authorities take responsibility for their actions. Localism does not mean simply that all power should rest in the hands of local authorities. Although the town hall plays a crucial role in local life, it is often local people—conscientious neighbours, responsible residents, volunteers and social entrepreneurs—who undertake the responsibility of making communities stronger. As a general rule, however, they can get involved in local decision-making only to the extent that their council welcomes and encourages their involvement, so the Bill creates new rights for local people and local community groups. Under the right to challenge, social enterprises, voluntary and community groups and parish councils will have the right to challenge the council to consider seriously their proposals for the improvement of local services. Similarly, the Bill will give community groups the right to bid to buy assets of community value. Where buildings and businesses such as local shops, pubs and community facilities are listed under the Bill’s provisions as being important to local people and come up for sale, community groups will be given time to put together a credible bid to buy the facility that will have to be taken into consideration before the vendor can continue with the sale. Local people will have the right to petition their council to hold a referendum on any local policy or issue that is contentious and important to them. Councils will be required to hold a referendum where they propose to charge a council tax in excess of an agreed percentage increase. Local people, rather than the Secretary of State, will therefore be able to veto the rise. We turn now to planning. The trend towards central control has been particularly damaging in the planning system and the Government believe that it is now time to introduce far greater democratic and local control. The regional strategies, which set housing targets for different parts of the country and then had to be implemented by local authorities, will be abolished. They did not result in more houses being built. Indeed, last year, rates of housebuilding hit their lowest point in peacetime since the 1920s. The Bill will transfer the power to make decisions on nationally significant infrastructure projects such as power stations, airports and major roads from appointees in the Infrastructure Planning Commission to democratically accountable Ministers. It will introduce a duty to co-operate, requiring local authorities to work together on strategic planning issues. At a more local level, it introduces a duty on developers to consult local communities before they put forward applications for large developments. Most radically of all, it will allow people to have a stronger say in the planning of their neighbourhoods. Under these provisions, local people will be able to come together to form a neighbourhood forum and produce a neighbourhood plan for developments in their area, such as where they consider would be most suitable for new homes, shops and businesses. As long as these plans are consistent with the national planning policy framework and the local plan, development can be granted through a neighbourhood development order so that construction can go ahead quickly. At the same time, the new homes bonus and the community infrastructure levy will benefit local communities where new development takes place. Ultimately, it is right that local responsibility and local incentives replace top-down control, creating the right conditions for communities to welcome development and growth in their areas. The Bill makes clear that the use of financial incentives, such as the community infrastructure levy, can be a material consideration in the planning process, although they do not have to be. Lastly, I turn to the Bill’s provisions on housing. Social housing will provide 8 million people in England with a home. The Bill proposes a much greater level of discretion for councils and social landlords to manage social housing more flexibly. New provisions will give social landlords more flexibility over the length of tenancy they may grant. The minimum length will be two years, although we expect that longer terms will be offered in the majority of cases. There is a clear acknowledgement that where tenants are likely to remain in need, long-term tenancies will be the norm. Vulnerable and existing tenants will not be affected by these changes. Councils will of course continue to be able to offer lifetime tenancies. We have also discussed in depth in the other place, and with practitioners, the Bill’s proposals to let local authorities meet their homelessness duty by providing applicants with good quality homes in the private rented sector. This option could provide an appropriate solution for people experiencing a homelessness crisis at the same time as freeing up social homes for people on the waiting list. The Bill will also change the way in which social housing is funded, passing more power to a local level by replacing the complex and unpopular housing revenue account subsidy. Councils will be able to keep the rent raised locally to maintain their social homes. This will give them a more predictable and stable basis to plan for the long term. Finally, the Bill will reform the way in which social housing is regulated. The Tenant Services Authority will be abolished and landlords will be expected to support tenant panels—or equivalent bodies—in order to give tenants greater opportunities to scrutinise the services that are being offered and that they are receiving. This is an important Bill, with measures that will have a great impact on every aspect of the responsibilities of local government and the rights of local people in the future. As I said at the beginning, there has been much consensus already about its provisions. I hope that, when there has been such agreement in the other place, that will guide considerations here. We have much to do, and the noble Lord, Lord Taylor, the noble Earl, Lord Attlee, and I look forward to the forthcoming debate. I commend the Bill to the House. I beg to move.