Encroachments on Local Government Autonomy

Part of Orders of the Day — Supply – in the House of Commons at 9:07 pm on 12 November 1981.

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Photo of Mr Bruce Millan Mr Bruce Millan , Glasgow Craigton 9:07, 12 November 1981

I should expect that from Wales.

The Secretary of State said that he had an open mind on the matter. That was a revelation. It was a change from his behaviour during the last few days. If he has an open mind and is willing to consider alternatives, we are entitled to an explanation of the alternatives. It is not enough to be offered the vague proposition that if he does not go ahead with his proposals he will introduce other measures that will result in more local democracy or more central Government intervention. We are entitled to more detail than that.

Some hon. Members have suggested that we should go for the Scottish option. Let me make the position clear. Government Members had better understand that there is no question of either my right hon. and hon. Friends or local authorities in Scotland finding the Scottish option acceptable. The Scottish local authorities are against what is being done in Scotland. If similar measures are introduced in England and Wales, there will be considerable hostility among the English and Welsh local authorities.

The Scottish option contains all the objectionable elements except the referendum. We are grateful for small mercies. All other aspects of the scheme are objectionable. There are no supplementary rate powers for Scotland. Under the 1981 Act the Secretary of State can determine local spending. He can do that on an individual basis and he does not have to justify his action. He has arbitrary powers and will not have to explain the guidelines. He does not even have to justify the choice of authorities that he singles out for penalty under the Act.

If those arguments do not appeal to Government Members, I warn them that one of the arguments in favour of the Scottish system was that it would allow the good and bad authorities, in the Government's estimation, to be dealt with differently. The good authorities were supposed to escape scot-free and only a few recalcitrant authorities were to be dealt with. However, every local authority in Scotland is being penalised this year by the Government. That is so whether they have attempted to co-operate with the Government and whether they are Tory or Labour controlled. All local authorities in Scotland are being penalised and have had their rate support grant reduced. If anybody believes that there is a solution for authorities in England and Wales in the Scottish option, they could not be more wrong and will be disillusioned.

We require neither the English nor the Scottish option. The Government's whole approach to the problem is wrong. Their attempt to push through the idea that the Government know best, that only the Government have a right to decide local authority financial matters, is at the root of the problem.

That whole idea, far from encouraging a conciliatory or helpful approach by local authorities, simply provokes local authorities into opposition. If the Government had attempted to maintain the normal harmonious relationships between themselves and local authorities with regard to total expenditure, they would have done a great deal better from their point of view than they have so far.

During the debate hon. Members on both sides of the House have said that there is a desperate need to restore confidence between the Government and local authorities and to try to recreate the harmonious relationship which by and large, although with exceptions, has existed for many years. We badly need that new relationship. The first step towards creating it would be to abandon the referendum proposals. The Secretary of State will not be able to carry through those proposals. He would do better to give in graciously now and accept the Opposition's motion.