My Lords, I move the amendment in the name of my noble friend Lady Hughes—who has asked me to speak on her behalf—and will also speak to Amendment 57F. These amendments seek to address the need for clarification and accountability in the exercise of the Secretary of State’s powers to intervene in the delivery of children’s services by local authorities.
Clause 82 amends the Education Act 1996 and the Local Government Act 1999 to the effect that when a Secretary of State intervenes in a local authority, usually in response to poor performance, any legislative provision applying to the local authority can be read as passing to a third party which has taken over the local authority’s functions and service delivery. Subsection (2) of Clause 82 applies these provisions to children’s services and subsection (3) to any best-value services across a local authority. I have to say at the outset that there is no disagreement with the need for intervention powers. It is absolutely necessary to protect services for local people.
In Grand Committee, we sought to clarify the effect of the Government’s intentions here and the Minister assured us then, and subsequently in letters to my noble friend, that the intention was simply a helpful clarification of the effect of a direction under the Secretary of State’s last-resort power and did not expand those powers. She gave the example of clarifying for a family court in the case of a care order or adoption that the court can legally recognise the decisions and arrangements of a third party which has taken over the local authority’s functions, even though that third party will be exercising legal responsibilities and powers vested in local authorities.
I am also grateful to the Minister that her officials met with my noble friend to discuss the clause in more detail. However, the Government’s clause still leaves
some uncertainties about where the accountabilities lie following interventions. I apologise if this all gets rather technical, but it requires some further clarification. In essence, the clause as it stands leaves open the question as to where the statutory roles of the director of children’s services and lead member will reside after intervention and whether they, or the third party, are accountable for the way in which local authority functions are executed. Taken at face value, Clause 82(2), underpinning the roles of director of children’s services and lead member, could be read as transferring accountability to a third party. If so, the local authority would no longer be required to appoint to these positions and accountability would no longer rest with the local authority. The local authority would then effectively be severed from delivery of children’s services and accountability would reside with the Secretary of State and the third party.
These amendments do two things. First, they insert a process in which a specific decision is taken about whether the roles of the director of children’s services and lead member transfer to a third party following a direction. Secondly, they allow a local authority to make representations to the Secretary of State as to which functions are transferred to that third party and which remain with the local authority. This is a belt-and-braces amendment to ensure there will be no loose ends or lack of clarity as to where accountability resides, and for what functions, following a direction. It is necessary because while the Minister in her examples has sought to reassure us that the clause is very limited in effect, in fact the wording is very wide in scope and potentially goes far beyond the specific cases of family courts considering care orders and adoptions.
If the Minister is not minded to accept my amendment, perhaps she can explain why not and put on record the practical process that will take place, including discussion with a local authority, when a direction of this sort is under consideration. I look forward to hearing her response.