Clause 15 - Guidance
Local Government Bill
11:00 am
Mr Christopher Leslie (Parliamentary Secretary, Cabinet Office; Shipley, Labour)
The amendment would significantly change the clause, which first requires local authorities to have regard to any guidance issued by the Secretary of State. We are thinking of using that power to give clear and simple guidance on prudent investment practice. Secondly, it requires authorities to have regard to guidance issued by other bodies and specified in regulations under the clause. Regulation 18 of the draft regulations indicates that we intend to specify the treasury management code published by CIPFA, which is already widely adopted by local authorities.
Unfortunately, the amendment would require all guidance to be specified in regulations, including any issued by the Secretary of State. That would be an extremely unusual approach. Guidance is one thing, but it is not the same as a direction. It simply requires authorities to have regard to a particular policy. To have that aspect always enshrined formally in regulations would be excessive. The Housing Act 1996, which was brought in by the previous Administration, contained powers to issue guidance by regulation. This is not abnormal. I hope that, in those circumstances, the hon. Gentleman will reconsider and withdraw the amendment.