Localism Bill

My Lords, perhaps I can speak briefly to Amendment 105 but before doing so, I pray the indulgence of the Committee if the debate is prolonged, as I have amendments to the Education Bill in Grand Committee. I mean no offence if I have to withdraw at some point. I should also say in preamble that, having seen the news yesterday on the transparency of Transport for London and given the matters we will be considering in Clause 206, I wonder whether ““a relevant authority”” might include Transport for London within the meaning of these clauses. I am grateful for my noble friend’s remarks, but my concern is about politically inspired resolutions put to local authorities, particularly in the run-up to elections. I accept that the wording of my amendment may not be correct. I am not someone who has argued for extensive regulation but we have seen, even from such an august person as the Secretary of State, that public comment on the level of senior officers’ pay attracts the attention—often very approving attention—of the press. My fear is that, notwithstanding the niceties of employment law and the effective risk of constructive dismissal, in the approach to an election it would be unbearably tempting for a minority party in a local authority to lay a resolution calling, say, for the reduction of chief officers’ pay by 10, 15 or 20 per cent. Why stop there? ““Vote for us and we will cut senior officers’ pay””. In those circumstances it is politically quite difficult for the governing party in a local authority to resist such a proposal if put as a resolution to a council. Any member of a council can put forward a resolution just as any noble Lord can put forward a proposal here. Clause 23(4) makes it absolutely clear that, including after the beginning of the financial year in which a senior officer’s pay statement has been laid, it is perfectly in order for a local authority to seek to change that pay statement. So while I am not calling more regulation down on the heads of local authorities, I warn my noble friend that there is an extremely high risk in the six months before elections of competitive resolutions being laid to reduce the pay of members in authority, which might have pernicious effects and could, in some cases, be contrary to employment law. Having asked my noble friend to consider the matter, I am grateful for the consideration he has given so far and I am reassured by some of the things he has said on the point, but I hope that, in considering any guidance, he will take very seriously the points that have been made. It would be a great pity to see a rash of resolutions coming out of local authorities asking the impossible of senior officers, who are in most cases distinguished public servants doing their best for local people.