Localism Bill

My Lords, this has been a short but very useful debate on a very important aspect of local government policy. I assure noble Lords that the guidance which will be issued will take note of issues raised in this debate. While we may not agree on all aspects, there appears to be a good deal of consensus that the Government’s approach on senior pay is to be welcomed as, indeed, are the requirements of our amendments for a pay policy statement. I am grateful to the noble Lord for lending his support to that concept. Our amendments build on that approach and will increase accountability for local decisions about the lowest paid in the local government workforce. I say local decisions deliberately. The Government are quite clear that these decisions on pay and reward must remain ones for local determination. I hope that noble Lords opposite will acknowledge that the Government have fulfilled our commitment to reflect on discussions around low pay in the other place and brought forward appropriate amendments, as, indeed, we do today. The Government did not undertake at that time to consider measures to increase duties on local authorities with regard to their relationship with bodies with whom they can contract. We believe such proposals would be burdensome. Charities, the voluntary sector and business have called for regulation around contracting to be reduced. There is general consensus that in order to achieve greater participation of the voluntary sector and small businesses in local government contracting, we need to make the process of contracting as simple as possible. I have to say to the noble Lord, Lord Beecham, that procurement policy is governed by legislation. There are procedures for procurement, which has to be done on an open and transparent basis. There is no suggestion in our amendments that we are seeking to interfere with that process, nor would we do so in any immediate guidance that we might issue. It remains open to local authorities individually to develop policies in relation to the staff of contractors, if they wish to do so. I have undertaken to make it clear in guidance that, where authorities have local practices on any matter they deem appropriate to include in a pay policy statement, there is nothing in the Bill to prevent them including them. I cannot comment on the living wage, other than to say that I do not think it is a matter for this Bill. We would wish to be much more specific about what the noble Lord means by a living wage before any legislation could include any such reference. I am grateful for the participation of noble Lords—