Robert Syms (Shadow Minister (Local Government), Communities and Local Government; Poole, Conservative)

I would be grateful if the Under-Secretary would give an overview of the likely impact of this clause. I welcome the sensible action of taking some of the larger parishes out of the provision, although I do not intend to provoke a discussion on Lichfield or Weston-super-Mare or wherever. I would be grateful if she could briefly set the scene for this part of the Bill.

Angela Smith (Parliamentary Under-Secretary, Department for Communities and Local Government; Basildon, Labour)

It may be helpful to set the clause in the context of general devolutionary thrust of the Bill and the responsibility on local authorities to monitor their own performance. The clause amends the definition of local authorities, and therefore the definition of best value authorities for the purpose of part 1 of the Local Government Act 1999. Applying the principle of proportionality, this clause removes various smaller bodies from the scope of best value.

Subsection (1) amends both the definition of English and Welsh local authorities by removing parish councils, parish meetings and community councils from the definition of local authority in section 1 of the London Government Act 1999. Subsection (2) removes local precepting authorities from the list of  bodies to which the Secretary of State may, by order, extend the duty of best value. That ensures that the definition of best value authority cannot be amended by an order under section 2 of the 1999 Act to make parish councils and parish meetings best value authorities. Subsection (3) refers to schedule 7, which makes minor and consequential amendments.

The clause affects only those larger towns and parish councils that are currently subject to best value. That is 41 out of more than 8,500 town and parish councils. All other parish councils, including Welsh community councils, were exempted from best value by orders made in 2002 and 2003. That will give those authorities more discretion to monitor and manage their own internal performance and we consider that it will give them more room to deliver high-quality and responsive local services and to improve their internal performance.