Localism Bill

My Lords, I thank my noble friend Lord True and, indeed, all other noble Lords who have spoken on this important subject and on the innovative development of this aspect of community empowerment. We are rather constrained by the rules of debate in the sense that these amendments are primarily about the threshold, but of course the threshold needs to be taken in connection with a series of government amendments and measures in the Bill that protect the whole process of referendums. While I shall try to focus principally on the threshold, I hope that noble Lords will be mindful that when we meet again to discuss these matters we will have further opportunities to debate a complex subject that runs across several aspects. I hope that what I have to say at least places the Government’s position in some context. One of the most important aspects is the risk of populism. That was the theme of a number of speeches. To those who fear populism, I should say that leadership in institutional local government has nothing to fear from populism. If it strengthens leadership in local government, this innovation will, in itself, be important. We are quite clear that people should be able to trigger a local referendum by submitting a petition to their council containing the signatures of 5 per cent of the electorate. My noble friend Lord Cathcart and the noble Earl, Lord Lytton, mentioned the problems of this low threshold in connection with parish councils. I should emphasise that the Bill’s provisions in this area do not provide for referendums relating to parish councils, which are not part of the Bill. We will have an opportunity later to discuss parish councils. A large number of amendments have been tabled that seek to amend the figure from 5 per cent. Figures of 10 per cent, 15 per cent, 20 per cent and, indeed, 25 per cent have been suggested. As the noble Lord, Lord Beecham, said, I am thinking of turnouts and of my experience as a canvasser. I think how many households one can actually canvass and how many voters one actually speaks to. Collecting signatures is no mean task. I say that as a political activist. All noble Lords will have had experience of that and we should put the 5 per cent figure in that context. There is a question as to whether there should be a higher threshold for small electoral areas. Clause 209(2) of the Bill provides for different arrangements in different areas to be made by regulations, if there is a need. I am not persuaded that there is a need, but the Bill does provide for that if becomes evident that a higher threshold is necessary. We believe that 5 per cent is a fair threshold, building on the established precedent. It appears to us to strike the balance between setting a fair and achievable threshold for issues in which local people are seriously interested but at the same time a high enough hurdle to deter potentially frivolous campaigns. I think the whole Committee would wish to see that. I would say to my noble friend Lord Greaves that, for example, a 25 per cent threshold in Pendle would require the signatures of some 17,000 people. That is an enormous threshold for any campaign to secure. Indeed, one could argue that if one secured 17,000 votes in a referendum, the result was a foregone conclusion. I can give other examples and I hope to persuade the Committee that 5 per cent is no mean figure. Noble Lords will be aware that the figure of 5 per cent in the Bill is based on the petition threshold for binding referendums on council governance, introduced 10 years ago. In using this figure, we recognise that these referendums are far wider in scope, so we will want to monitor the threshold to see if it is the right one in practice. That is why we have included a power for the Secretary of State to amend the threshold by order if experience shows that the 5 per cent threshold is not quite right. Amendment 124C seeks to remove this power, so it leaves the Bill without that flexibility. The debate that we have had today and the various thresholds put forward in the amendments show just how difficult it is to agree an appropriate petition threshold. In this area of referendums the Government are listening to these debates and want to get it right. We want a workable system that will reinvigorate community politics without at the same time making representative government difficult and threatened in the way that some noble Lords have implied. Therefore, getting the balance right is very important. We have taken the established threshold of 5 per cent, as I have said, to provide consistency. While we do not rule out a change to the threshold in the future—that is why we have included the power to vary it in the Bill—it would appear sensible to wait and see whether a variation is necessary. Amendment 120J would allow local authorities to change the area in which a referendum is being held from the one stated in the petition. We believe that the amendment is unnecessary. If a council wants to hold a referendum throughout the area of the authority, it can resolve to do so irrespective of whether a petition has been received with the requisite number of signatures to trigger a referendum in just part of the area. Indeed, the council can resolve to hold a referendum of its own accord, separate from the issue of the petition threshold. We take the view that if a referendum is to be held in just part of an authority's area, it is right that the people in that part should have a say in whether there should be a referendum. They can do this either by joining in the petition or getting the councillors for that area to request that a referendum in their area be held. Amendment 121, in the names of my noble friends Lord True and Lord Cathcart, seeks to retain the duty on authorities to provide facilities for the hosting of petitions in electronic form. In fact, the provision that the amendment seeks to omit is essentially a technical one. It attempts to deal with the situation that might arise if the referendums provisions that we are currently debating are brought into force before the petitions provisions in the Local Democracy, Economic Development and Construction Act 2009 are repealed. In practice, we intend to abolish those petition obligations as soon as possible. I think it is fair enough for us to debate the principle of whether it would be right to impose a new obligation on councils to host electronic petitions calling for referendums. However, I cannot say that from anything I have heard today I am persuaded that that is a necessary imposition. The Government’s view is that it should be up to local authorities to decide whether they provide for this, and our provision in Clause 43(4) makes that clear. There has been a lot of concern about councillor requests for referendums and how they might impact on local campaigning and perhaps be extremely disruptive. Amendments 125 and 126 would provide safeguards against inappropriate calls for referendums by councillors, and I can certainly support the intention behind those amendments. In fact, we have already provided what I believe to be an important safeguard in Clause 49. I believe that the safeguard we have in place—that, following a request from a member, a referendum may not be held unless the full council has resolved that it be held—is a better check. These amendments would make a councillor call for a referendum redundant, as, if a petition is supported by 5 per cent of local voters, there will be a referendum in any event. Finally, my noble friends propose in Amendment 129 that local authorities may recover the cost of a referendum from electors in the area in which the referendum is held. The amendment is, however, silent on how the cost would be recovered. My noble friend has voiced his concerns about the frequency of referendums—indeed, many noble Lords have thought that the numbers might be excessive—as well as the resulting cost burdens.. He is concerned that some areas within a council will, through the legislation, have all the opportunities to vote in a referendum, while the cost of the referendum will come out of the council’s overall budget, meaning that those who are not part of the referendum will bear some of the cost. Their amendment seeks to ensure that the costs of holding a referendum are spread across the area over which it is held. However, our approach already enables that to happen. It puts in place a scheme that enables referendums to be held in the relevant council area for the issue at hand. Therefore, if it is a district council matter or a matter over which the district council has influence, the referendum can be held at the district council level, whether it be across one or more wards of the district or the entire district council area. I should now like to refer to the comments of my noble friend Lord Greaves, who was concerned that the rules should be rigorous. The rules on referendum petitions relate to when a council must hold a referendum. A council has discretion to hold a referendum whenever it wishes on any subject it feels to be appropriate. Thus, if a council believes that it is right to have a referendum on any subject, it can do so, irrespective of how many people sign a petition, and indeed irrespective of whether there is a petition. The noble Lord, Lord Beecham, worried about the 1 per cent threshold, the concern having somehow been lodged that the Government had tabled amendments to change the threshold to 1 per cent. We are not reducing the threshold to 1 per cent but in the case of London, in addition to the 5 per cent requirement, each London petition should contain the signatures of 1 per cent of the electorate in each London borough to demonstrate London-wide support for the petition. This is a safeguard; it is not meant to be a lightening of the burden regarding petitions. There has been some concern that, by doing away with petitions and introducing the concept of referendums, we are destroying something positive and useful. We think that local referendums are more effective for two basic reasons. First, they have greater visibility than a petition. It is difficult to create the same impact with a petition than with a local referendum where every elector gets a chance to give their view. Petitions are essentially about one voice; referendums are about two voices, so that those who do not agree have the opportunity of voicing that. We must not assume that every referendum that is presented automatically results in a positive vote. Secondly, the effect of a referendum is almost certainly that more people will be engaged. If more people are engaged in holding a referendum the local authority will benefit as a consequence.