Localism Bill

My Lords, I looked forward to the arrival of this Bill. It is clearly based on good intentions, some of which, as we have already heard in the debate, will be subjected to extensive scrutiny and challenge during its Committee stage. It is different from what I expected, and having read it through, it is complex and takes some navigation. It will have a huge impact on local government and people’s aspirations for their communities, localities, neighbourhoods and quality of life. But this Bill was trailed rather differently, with exaggerated claims of what it would deliver, and that is why I am hugely disappointed with it. This is a very important local government Bill, but let me give noble Lords a taster of what I had envisaged we were about to get. Back in December last year, the Secretary of State, Eric Pickles, said that the Bill signalled the start of ““a new era of people power””, and added that it would be the end of the era of big government. Andrew Stunell, at the Report stage in the House of Commons, stated that: "““The Government are committed to the radical decentralisation of power and control from Whitehall and Westminster to local government, local communities and individuals””.—[Official Report, Commons, 17/5/11; col. 204.]" That sounds laudable and supportable, but it is difficult to envisage how the Bill as it stands will enable it to happen. Whatever happened to the promise of decentralisation, devolution, enhanced citizen empowerment and local control in a radical way when, in fact, we are getting substantial reserved powers for the Secretary of State to be interventionist and directional? From my own experience of working with communities in local areas, particularly in London, I have never known a situation where the central state or local authorities have ever handed meaningful power over to local people. Power, control, decision-making and resources have always been withheld, often for good reason and particularly to intervene when things go wrong, as they do from time to time. Someone in authority has to be held responsible and accountable. An example of continuing centralist micro-management is the setting of an annual budget and council tax to be levied by the local authority. This is a local matter. The local elected members make those decisions and are answerable to their electorates. Why should the Secretary of State insist on having the power to determine what he considers to be excessive? Is that not a matter for local determination? Why should a Secretary of State be determining the circumstances for local referendums to be held, and who will be responsible for the additional costs? What of the additional bureaucracy and delays in processing and decision-making that will be created? We have to be certain, as we go through the Bill, that we are not staring at the prospect of reinforced centralist power and control, as well as increased bureaucracy, which the Government claim they want to reduce. There will be increased costs at a time of reduced resources. Another example is the imposition of shadow mayors, which again is central government determining what is best for local people. Surely locally elected and accountable councillors, along with their local citizens, are the most appropriately placed to determine what is best for their locality. Why undermine local democracy when it works well most of the time and is more about localism than what this Bill purports to be? Clause 5(1) gives the Secretary of State far-reaching powers to, "““amend, repeal, revoke or disapply," other statutory provision if he considers that it, "““prevents or restricts local authorities from exercising the general power””." This is particularly distressing in the context of all local authorities having to conduct their business with due regard to their duties and responsibilities under the current equality legislation. Given that the Government have to date shown scant regard for the public sector equality duty, and indeed have recently canvassed public opinion on restricting the functions of the Equality and Human Rights Commission, there is much concern that some local authorities will slip back into institutional discriminatory policies and practices, with encouragement from a bullish Secretary of State. We must have assurances on this matter and ask the Minister for a clear statement of commitment and compliance with the legislation. The Bill’s approach to localism in London is perplexing—I agree with the noble Lord, Lord Palmer, on this point—because it extends regionalism through the Mayor of London while at the same time it reduces localism by marginalising local councils and their communities in the process. There must be oversight and scrutiny by locally elected councillors and their communities of the operations of the proposed mayoral development corporations for this to be genuine localism. The same concerns arise with the Greater London Authority taking over the housing and regeneration functions for London from the Homes and Communities Agency. It is not genuine localism to suggest, as the Government have done, that the London Assembly, a regional body with regional representatives, can offer the local involvement and participation that is required. The retention of ministerial powers to delegate functions to the Mayor of London without local electorates and councillors having their say and some involvement, participation and engagement, is a further drift away from genuine localism. The so-called community right to challenge is limited to local authority services and facilities, but other authorities and agencies provide services locally. Those services should also be challengeable by local communities. Radical devolution cannot be administered in a piecemeal and half-hearted way. If this is to have any meaningful impact, local communities must be inspired and empowered to challenge all locally provided services. I believe that the community right to challenge should be open to all, regardless of a community’s expertise or level of social infrastructure. Expanding the right to challenge is a welcome first step, but there must be co-ordination and leadership to challenge all the different agencies operating at the local level. It should not be restricted to locally provided services. Such a co-ordinating role is best led by the local authority. The Bill should therefore enable local authorities to challenge, with and on behalf of their communities and in partnership with other agencies, the provision of services delivered by national public bodies within their area. Undoubtedly, town and country planning would benefit from the streamlining of administration and speeding up of decision making. However, close examination of the provision for neighbourhood planning suggests that there is likely to be greater complexity, more bureaucracy and risks to community cohesion if radical groups and nimbyism contribute to divisiveness, paralysis of decision-making and conflicts across communities. Let me conclude by saying that there is much in the Bill to be commended in its attempt to increase community involvement in local decision-making and local service provision. Our fundamental aim should be to strengthen local government and to seek to enhance its localism credentials. Power is vested in those people we elect to represent us and to be responsive in serving and meeting the economic, social and cultural needs of the local inhabitants. We must improve the Bill to help local government, working with local providers, to improve its performance and effectiveness and to assist local government to enable communities to feel empowered about all local services being theirs even if they are not the direct beneficiaries therefrom. The noble Baroness, Lady Bakewell, described localism perfectly as it now happens in her local community through direct action. I believe that if we are to realise genuine localism we have to do much more than this Bill will achieve. Above all, for this Bill to become a successful stepping stone for localism, we would need to have less central control, less Whitehall direction and interference, less bureaucracy and reduced costs, less regulation, less prescription and guidance and no micromanagement from the centre.