Localism Bill

My Lords, I have tabled the amendment in order to discuss the role of local authorities and other public bodies—but particularly the role of local authorities—in assisting with community purchases as a result of this legislation. The amendment states that the local authority may acquire and make fit for community use any property which is the subject of these proposals; that an acquisition could be by a compulsory purchase order, with the approval of the Secretary of State in the usual way; and that the local authority could sell or let a property or a business to a community interest group, and could do so by not charging the full market value—in other words, by subsidising the purchase or the maintenance of the community asset. I think the definition of a local authority should include a parish, although I have not included it. I am not suggesting that this proposal should lead to a large-scale acquisition by local authorities of new community assets. Given the present financial circumstances of local authorities, that is unlikely to happen anyway in most places. However, this will change. In the very nature of things there is a cycle, which many of us have seen more than once, in which local authorities, for various reasons, are more flush with money at one time than they are at others for this kind of purpose. However, being practical, in many areas the only way in which the purchase or the running of community assets that are being disposed of is going to work is through some kind of subsidy from the local authority. It may be from some other public body but it is most likely to be from the local authority. In many areas, it simply will not happen and simply will not work unless that happens. The subsidy might be relatively modest or it might be quite substantial—or it might be a big subsidy to purchase the asset and then no subsidy, or a small one, towards the maintenance of it, or the other way round. It all depends on the circumstances. But in practice, unless there is an active interventionist policy by local authorities in areas that are not as prosperous as a few places appear to be, it is simply not going to happen. It may happen on a small scale. The noble Lord, Lord Patel of Bradford, said earlier that communities can raise money. I agree with him. They can. But very often they will raise money as targets and as matching funding as against other grants, and so on. Therefore, it seems to me that local authorities ought to have those powers. I may be told that, at least in the areas that do not involve subsidising a purchase or passing it on at a lower price than cost, the local authority has these powers anyway—and if they have not, they will have them under the general power of competence, and therefore this amendment is not needed. A short debate is needed on the role of local authorities in this matter and the absolutely central role that they will have to have if this is going to work in a lot of areas, and certainly the areas that I am familiar with. I beg to move.