Local Government Bill [H.L.]

Part of the debate – in the House of Lords at 3:10 pm on 6 December 1999.

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Photo of Lord Whitty Lord Whitty Parliamentary Under-Secretary, Department of the Environment, Transport and the Regions, Parliamentary Under-Secretary (Department for Environment, Transport and the Regions) 3:10, 6 December 1999

My Lords, I beg to move that this Bill be now read a second time.

The Local Government Bill is intended to revitalise local democracy, to change the way in which local communities govern themselves and how they shape their future. The Bill gives new powers to local authorities to promote the economic, social and environmental well-being of their communities. It creates new executive arrangements for councils, involving separate executive and scrutiny structures with powerful roles for all councils. It introduces a new ethical framework for councillors and for council offices. It provides for more frequent local elections to improve councils' accountability to their electorates. It enables local authorities to fund support services for vulnerable groups via a new single budget, and it repeals what is commonly known as Section 28.

Your Lordships will be aware that Parts II and III of the Bill were scrutinised in draft during the summer by a Joint Committee of both Houses. The Government published their formal response to the committee's report last week. We have considered the committee's recommendations and accepted a significant number of them. I take the opportunity to apologise to noble Lords for the relative lateness of that response. Nevertheless, I thought it important to ensure that that response was put before your Lordships before we moved to Second Reading of the Bill.

The draft Bill was published as part of the policy document, Local Leadership, Local Choice, for debate and discussion in local authorities and local communities, as well as for consideration by the Joint Committee. We have found the exercise of publishing a draft Bill and having informed dialogue early in the parliamentary process extremely valuable, particularly when considering the proposals for the new constitutions of local authorities and for the new ethical framework. Indeed, it is one from which I believe this House and another place can learn.

I am particularly grateful to the noble Lord, Lord Bowness, for chairing the Joint Committee. I regret that the noble Lord is unable to be here today and I know how much he regrets that. However, I pay tribute to his role in the Joint Committee. I also pay tribute to all the other noble Lords, particularly the noble Baroness, Lady Hamwee, and Members of the other place who played a full part in the committee. I recognise that their report was produced to a tight timetable. Yet it sets out a coherent and valuable set of recommendations for improvements to the draft Bill. I welcome the interest demonstrated by all members of the committee in ensuring that we have an effective, modern system of local government for the 21st century.

As I said, last week the Government published their response to the report of the Joint Committee. That response sets out how the Government propose to improve the Bill to deliver their policies most effectively in the light of the committee's recommendations. It also sets out how we plan to proceed in this House. Among other things, that means that we intend to bring forward amendments to the Bill. Most of them are in response to the significant number of committee recommendations with which we largely agree. We shall do so in time for debate in Committee in this House. By Committee stage we shall also bring forward further amendments to better reflect the policy set out in Local Leadership, Local Choice, and we shall produce as early as possible drafts of key regulations and guidance which we intend to make under the Bill. We hope and believe that by proceeding in this way we shall assist the House in its consideration of the legislation now before us.

In that context in particular, we shall bring forward amendments to the new executive arrangements to develop and clarify the following important policy issues: first, the options available should there be a defeat for a referendum on the establishment of a mayor; secondly, on access to information; thirdly, on payment of allowances and pensionable remuneration to councillors; and, fourthly, more flexible structures such as area committees and joint arrangements with other authorities.

In order to reflect some of the Joint Committee's other recommendations, a number of changes are also required to the provisions which establish the new ethical framework. Therefore, we plan to introduce amendments which will, among other things, clarify the role of the monitoring officer in relation to conduct issues, set out arrangements for handling misconduct in parish councils, and refine the requirements for standards committees and their functions. We also intend to amend the Bill to provide more detail of how the new ethical framework will be implemented in Wales. Those amendments will reinforce the basic approach to council decision-making already set out in the Bill and ensure that it will be more accountable, efficient and transparent.

The Bill will give local authorities the powers they need to respond to community concerns. It will give them the ability to work in partnership with other bodies and opportunities to build broad coalitions within the community and with local service providers to improve the quality of people's lives. At the same time, it will also provide for local diversity in the way in which councils function; it will reform the way in which local government makes decisions and is held accountable for them; and it will give local people more of a say in how their council is run, as well as what it delivers. Therefore, the Local Government Bill means that local communities will have more choice and a bigger say in their communities.

Part I of the Bill deals with the issue of well-being in community planning. The Bill gives local authorities a broad new power to promote or improve the economic, social or environmental well-being of their area and its inhabitants. It will enable them to take new action to support their communities and to build new partnerships with other local bodies to deliver real improvements in local conditions. And, crucially, it will provide the certainty that those other bodies may need in order to be incentivised to participate in joint initiatives.

Modern councils have a vital role to play if we are to meet the challenging objectives of tackling social exclusion and regenerating our most deprived neighbourhoods. The future well-being of their community should be the most important issue for councils. No one is better placed to give clear direction to their communities or to ensure that action is co-ordinated and responds to locally identified needs. That is what real community leadership is about. If local authorities are to fulfil that role, they must have the powers they need to respond to all sections of the local community and to work with them to improve local quality of life. Part I of the Bill will give local authorities the powers that they need.

Your Lordships will recognise that leading a community is a slightly different job from leading a council. Local authorities which work alone cannot tackle every problem. Community leadership means generating support for change and working with others to deliver that change; it means managing, negotiating differences, co-ordinating and facilitating action by others. In some cases, it also means giving up direct power in order to gain a wider influence.

Community strategies should play a vital part in that process and set out a shared vision for the community. We want to see local strategic partnerships bringing together councils, other public service agencies, local businesses, voluntary organisations and local communities. Those partnerships need to produce inclusive strategies that reflect local aspirations and concerns.

The powers in Part I of the Bill will make a real difference. However, we also recognise that the world does not stand still. As modernised local authorities begin to develop new approaches to tackling local problems, along with their partners, there is little doubt that some of the existing statutory regulations or limitations will be found to be inhibiting or preventing sensible initiatives to promote community well-being.

We do not want a legislative framework that cannot keep pace with best practice in local government. We need the maximum opportunity for responsiveness and for flexibility. Where experience shows that existing regulations or existing limitations are placing an unnecessary brake on the promotion of community well-being, Parliament should be able to remove or amend them. The Bill provides the powers to do so. The measures in the Bill will bring new life to local democracy and establish the vital role of councils in improving quality of life for all members of the community.

Part II deals with the new constitutions and needs to be seen together with Part IV, which deals with elections. Part II lays the foundations for more efficient, transparent and accountable government: efficient, because decisions will be taken quickly, responsively and accurately to meet the needs of the community; transparent, because it will be clear what the decisions are, who has taken them and for what reasons; accountable, because those who take decisions will have to answer for them and they will be measured against the policies and plans on which they were elected.

Many noble Lords will recall the Bill in the last Session brought forward by the noble Lord, Lord Hunt of Tanworth, who I am glad to see is to speak later in the debate. In many respects, Part II is a development of the noble Lord's Bill. Under this Bill, councils will adopt new constitutions based on either a directly-elected mayor with a cabinet, or a cabinet with a leader, or a directly-elected mayor with a council manager.

Within those broad options, there is still considerable scope for local choice and diversity and almost all the options proposed in the Bill sponsored by the noble Lord, Lord Hunt, can be achieved.

All the new forms of constitution stipulated in the Bill include a separate executive responsible for most of the council's functions and held to account by overview and scrutiny committees. If other workable forms of constitution with a separate executive emerge, the Secretary of State or the National Assembly for Wales will be able to make those available too.

Executives will be able to meet in private. Politicians need time for reflection away from the public glare. Without that, discussion will be driven back to unrecorded group meetings. But the executive must be accountable. Decisions must be recorded with the reasons for those decisions and the advice received from officers. Overview and scrutiny committees will hold the executive to account in public and may investigate any aspect of the council's policy or other matters of local interest.

All councils must bring forward the options among those set out in the Bill for a new constitution. Which option and the details will be matters for local choice. This Government are committed to giving local people a real say in the way in which they are governed. Councils must consult local people and other interested parties on their proposals.

In a situation in which a council opts for a directly-elected mayor, first, it will be necessary to obtain the consent of local people and that will be done through a binding referendum. A referendum for an elected mayor will also be triggered by a petition signed by at least 5 per cent of the local electorate. The Secretary of State will also be able to require individual authorities to hold a referendum on any of the forms of constitution under the Bill.

The Bill also includes powers for the Secretary of State to make regulations governing the timing and conduct of elections for mayor and the conduct of referendums.

Your Lordships will appreciate that modern councils need modern systems of remuneration. We shall also be bringing forward amendments to abolish attendance allowances and, behind that, the whole "attendance culture". Many members of the executive will face increasing demands on their time. We hope to attract high-quality members to councils and it is right that they should receive a fair reward in those roles.

However, I remind your Lordships that we wish to ensure that local government can be efficient, transparent and accountable. Our proposals for pensionable remuneration for some members of the executive will therefore provide for that to be based on recommendations from an independent panel.

Part III deals with the ethical framework. Effective democratic government is based upon the bond of trust between communities and those who represent them, either locally, centrally or regionally. Restoring and strengthening that bond is vital. No case of unethical behaviour in local government is acceptable. In the few cases where that does occur in our local government system, we need to make sure that strong sanctions are available. Part III provides a clear framework for setting the standards that we expect of councillors and penalising those who fall short of those standards. That is an integral part of our plans to bring new life to local democracy.

The arrangements for that new framework include introducing new statutory codes of conduct to which all members of local authorities must sign; establishing standards committees within most councils to uphold standards within them; disseminating good practice so that members are clear about their roles and responsibilities; setting up a new, independent body--a standards board--which will have the task of investigating all allegations of misconduct by councillors; and providing the ability to impose suitable penalties ranging from censure through to disqualification from standing as a councillor for up to five years where allegations are upheld.

Alongside those arrangements, Part V includes the necessary provisions to repeal the surcharge. That is in line with the recommendations of the Nolan Committee and, more recently, of the Joint Committee.

Part IV deals with more frequent local elections. It deals with enhancing accountability through the ballot box. It contains enabling provisions to allow local authority elections to be held more often, allowing greater accountability through the ballot box. Local democracy and service delivery will be enhanced by giving local electors greater opportunity to give their verdict on the council's policy and performance. That will encourage councils to be more open and receptive and will reinforce the link between councils and their electorates.

The provisions on welfare services in the Bill are a small but important part of delivery of local services. They recognise the vital role which support services play in the lives of many of the most vulnerable of our citizens. The measures in the Bill aim to ensure, first, that vulnerable people will be able to have the services they need to be able to live independently in the community. Secondly, such people will be given immediate low-level help, which often prevents a future situation developing where they are in more acute need.

Those provisions are good news for the support services sector because, for the first time, we are giving support services a secure, transparent and sustainable funding framework. Provisions create a new grant which will be paid out to local authorities for support services for vulnerable people. Local authorities can then have the flexibility to direct that funding to high quality services for vulnerable people.

Local authorities will be able to take an important leadership role in the planning and commissioning of services for their communities. They will be able to plan support services effectively to address the needs of the community; they will be able to plan in partnership with other agencies and in step with local strategies; and they will be able to take account of the full range of people who are dependent on those services and the full range of their needs.

Most important for those in need of support--the people at which the new arrangements are aimed--the legislation will mean that their needs and preferences will be put first. That policy promotes choice and recognises people's changing aspirations. The funding framework will help to ensure that support services are tailored to the needs of individuals. That is why 80 per cent of responses to our consultation paper Supporting People welcomed the recommendations and principles of the new framework.

That policy means that vulnerable people can live independently in the community and means that they will no longer be forced to move house. For example, funding for support will no longer be tied to a particular housing scheme or landlord. Instead, those people will be able to receive the support they need wherever they choose to live. That is particularly important for some of our older people. Research has shown that older people prefer to remain at home and receive support rather than having to move to a special scheme. Maintaining independence and control over their lives are central to the well-being of older people. This legislation provides the framework for meeting that need.

Finally, I turn to the repeal of what is known as Section 28 but which is, more strictly, Section 2A of the Local Government Act 1986. This Government are absolutely determined to tackle the reasons that certain groups of people are marginalised or excluded from society. As I said earlier, we want a society in which everyone is valued and in which everybody has the opportunity to participate, regardless of their race, their sex and also regardless of their sexual orientation. We need local authorities to help build such a society.

Yet they are in effect prevented by Section 2A of the 1986 Act from addressing the real needs of the gay and lesbian community and, in particular, from providing young people with information to deal with issues relating to their sexuality. That legislation has been seen by many sections of the community--not just the gay and lesbian community--as being less about the promotion of homosexuality than about the institutionalisation of intolerance.

In the past it effectively stopped authorities from funding support and counselling services to young gay men and lesbians and from giving advice to young people who are concerned about their sexuality. Nor, in reality, does it do anything to help protect schoolchildren, as its proponents claim that it does. It does not apply to school governors and schoolteachers. It is they, not education authorities, who are responsible for sex and relationship education. However, it has caused grave concern throughout the education field to governors, teachers and pupils who find themselves unable to turn to their mentors for information. This was an unfortunate piece of legislation. Rather than protecting children, it does exactly the reverse. It caused confusion and created a climate of fear. Many teachers feel that they cannot even discuss homosexuality with their pupils for fear of being accused of promoting it. It meant that many teachers have felt inhibited from providing the help and support needed by young people who are, or think they may be, gay at what can be a crucial and confusing time of their lives.

It has stopped local authorities and schools from addressing many of the issues which arise around what I regret to say is probably a growing phenomenon of homophobic bullying. One in five young gay people will inflict serious harm on themselves or attempt suicide. The removal of this pernicious piece of legislation will at least help to improve the atmosphere in which they grow up and come to adulthood. The Bill will therefore repeal what is in every way a very bad piece of legislation.

The Bill builds on the local government White Papers for England and Wales which we published in 1998. It is the next step along the path set out in the Local Government Act 1999 and looks forward to the next millennium for local government. This Government were elected to provide opportunity for everyone to fulfil their potential through education and employment, to create a fair and inclusive society in which communities are healthy and secure, and to create the platform for higher productivity and sustainable economic growth. This is part of a radical programme. It requires change not only to policy but also to the institutions of government at all levels and to their relationships with those they serve. Local government is absolutely central to delivering this vision. This important Bill, in turn, places local people at the heart of local government reform. I commend it to the House.

Moved, That the Bill be read a second time.--(Lord Whitty.)