Clause 80
Local Democracy, Economic Development and Construction Bill [Lords]
6:30 pm
Stewart Jackson (Shadow Minister, Communities and Local Government; Peterborough, Conservative)
We are on the home stretch, Mr. Illsley.
The proposals could be designated as the Local Government Association new clause and amendment. They arise from the delegation of powers from RDAs to local authorities, which is important, and flow from discussion and consultation on the sub-national review, which we have mentioned. The Minister often prays in aid the panjandrums of the LGA. We are grateful for their leadership in local government, but they do not always agree with the Minister and the Government. On RDA delegation, the briefing that the LGA provided on Second Reading specifically stated:
“It is disappointing that despite the Government’s assertions that the Bill is designed to empower communities there has been no movement to allow elected councils to have increased powers and funds to effect real difference in their local areas, particularly during the recession.”
The LGA makes a number of key points in support of the new clause—I referred to this when we talked about regional government generally, but it nevertheless merits repetition. Its research showed that although there is a national economy,
“there is no evidence that the current Government office boundaries define ‘regional’ economies. Below the national level, markets for goods and services”
and so on
“operate at sub-region and city region level.”
The LGA also makes the point that there are
“roughly 50 ‘sub national’ functional economic areas in England”
alone, and states:
“Many decisions...need to be taken at sub-regional, rather than regional level...Our most recent research focuses on the differential effects that the current recession is likely to have on local economies. The research suggests that in the current economic climate it is more important, not less, to delegate decision-making and funding to the level at which it can most effectively be deployed.”
That point was also made in the Lords. The LGA specifically mentions what the Select Committee on Business and Enterprise has said about the need to delegate functions. There has been some debate and contention about whether it is necessary to be exact in specifying all the functions and responsibilities for funding that could be delegated to local authorities.