Localism Bill

My Lords, I shall speak on just Part 5 of the Bill, which, although it was not referred to by the Minister, is one of the most substantial and concerning aspects of it. As the House may well know, the Bill abolishes the whole standards regime that has been developed for local government over the past 20 years. It does not simply abolish the Standards Board for England, it abolishes the national code of conduct for local government, which had to be picked by local authorities who could then add clauses to it. It abolishes the obligation to have standards committees in local authorities to investigate complaints. It also appears to remove independent members as chairmen of those standards committees, and independent members. The House should be seriously concerned about these changes, for which the Government have made no clear or cogent argument, given the decisions that local authorities make. They have enormous power to create or destroy value through their planning decisions and award many large and small contracts. They are major buyers of goods and services in their areas and can award or withdraw grants affecting individuals and communities. They have extensive regulatory powers and are often the dominant employer in their community. This is a massive range of powers, which most of us welcome and support, but it is fundamental that the public have confidence that these powers are exercised with honesty, fairness and probity. For too many years, too many people in our society have not believed that that was the case, given the evidence that has emerged of occasional scandals. It is rash and foolhardy to behave in the way the Government are doing in demolishing this structure of standards, although that does not imply that there is no room for improvement and development. Over the past few years we have seen a gradual improvement in public confidence that local authorities conduct their affairs by and large with decency and honesty, and that processes exist to investigate members who are alleged to have misbehaved. The Bill will, if unamended, destroy much of this good progress. It is opposed by the Committee on Standards in Public Life. That in itself ought to be sufficient reason for this House to take its recommendations very seriously indeed. It is also opposed by SOLACE and the Association of Council Secretaries and Solicitors. Classically, unfortunately, the Local Government Association has been split on the matter. The Conservative members feel that it is not polite to oppose their Government. However, other elements in the Local Government Association regard this as a foolhardy set of measures. We ought to be even more concerned, given the hamstrung nature of the Local Government Association’s voice on this matter. The Committee on Standards in Public Life has commented: "““The lack of a national code of conduct and an independent complaints mechanism in the proposed new regime for standards in local government risks lower standards and a decline in public confidence””." No one believes that the world will suddenly collapse, but clearly understood standards with clearly understandable processes provide a basis for investigating complaints and, more importantly, have a deterrent effect on misbehaviour. It is dangerous to allow a local authority to decide whether or not to have a code of conduct, as is proposed under the Bill, and if it does to choose what process to use to investigate complaints. It can no longer have an independent member chairing it. These measures will certainly reduce public confidence over time with the inevitable misbehaviour on the part of an authority or individual councillor, as human nature will not change as a result of localism. Some councils will have codes of conduct, others will not. Some will have one code, others will have a different code, and most will have different processes. It is unclear from the Bill what sanctions are available to local authorities as it makes non-declaration of interest, or non-disclosure of a declared interest, a potential criminal offence but does not have clear sanctions or processes for addressing the vast majority of other forms of misbehaviour or alleged misconduct by members. Most of us have had experience of local authorities in one form or another and most of that experience has been good, but some authorities are captured by one particular interest group. It can be a single party where a party is dominant for years, which can lead to the suppression of other voices or views, or it can be a cabal within a party. There certainly have been masonic influences in some London boroughs in the past. I hope that these things will never recur, but let us not destroy the processes, structures and standards that act as deterrents. For all these reasons we have a national code of conduct that governs the behaviour of MPs, civil servants and others in public life. It is therefore self-evident that there should be a national code of conduct for local government as well. It is trivial of the Secretary of State to avoid this by using the localism argument. I hope that we will come back to these issues and consider them seriously. This is not, and should not be, a party political issue. The whole House, irrespective of party, should want to ensure that proper standards are put in place. To divide on party grounds in itself signals that there is something wrong with the Government’s recommendations. The Government should pause on these issues and go back and consult properly on them. There has been no consultation or pre-legislative scrutiny on these fundamental issues.