Amendment 12

Skills and Post-16 Education Bill [HL] - Committee (2nd Day) – in the House of Lords at 3:00 pm on 15 July 2021.

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Lord Watson of Invergowrie:

Moved by Lord Watson of Invergowrie

12: Clause 1, page 2, line 20, at end insert—“(5A) Guidance issued by the Secretary of State under subsection (5) is to be made by statutory instrument subject to annulment in pursuance of a resolution of either House of Parliament.” Member’s explanatory statementThis amendment requires guidance to be laid before Parliament as a negative instrument.

Photo of Lord Watson of Invergowrie Lord Watson of Invergowrie Shadow Spokesperson (Education)

My Lords, it gives me pleasure to welcome the noble Baroness, Lady Penn, to the Dispatch Box for the first time in a Bill Committee. May I say how well she is looking? If we do indeed sit until midnight on two evenings next week, as has been suggested, that will be useful practice for her because, in a few weeks’ time, she will discover that you take sleep where and when you can get it.

I will speak to Amendments 12 and 24 in my name; my noble friend Lord Rooker added his name to Amendment 12. The former would simply ensure that the Government’s local skills improvement plan guidance could be scrutinised by Parliament in the lowest form of scrutiny we have: the negative procedure. This guidance, which relates to co-operation with an employer representative body and, crucially, the matters to which the Secretary of State might have regard in deciding whether to approve and publish a plan, would take immediate effect but would allow the House to debate it if it were so minded. That is especially important because, as many noble Lords have said, this is a skeleton Bill so the detail of much of what we are debating at this point is vague or subject to ongoing or forthcoming consultations. I understand that that is why Ministers are unable to circulate a draft of the guidance, which would have been very helpful for all of us. I hope that the Minister will be able to assure your Lordships that the draft will appear well in advance of Report and that those directly impacted will be able to develop and shape it. However, in the meantime, I suggest that this amendment is entirely reasonable and appropriate given that there has been no opportunity for parliamentary scrutiny.

Amendment 24 is a probing amendment regarding the criteria for determining the boundaries of a local skills improvement plan area. Every area in the UK needs a mix of provisions specific to its local context, community and sub-economy, as well as reflecting national strategies. However, the Bill is not explicit in certain features of the LSIP, including what constitutes “local”. On day one of Committee, my noble friend Lord Knight used his personal experience in the west of England to point out issues associated with living, studying or working near a county boundary or, as in my noble friend’s case, in an area where three counties meet. English local administration is bedevilled by inconsistent boundaries. A cynic would say, probably rightly, that this is one way in which Whitehall prevents localities and regions building up any real local autonomy. Divide and rule is a long-standing tactic.

The Bill does not specify what constitutes a local area in terms of the geographic footprints of the new LSIPS. Indeed, employer representative bodies are being invited to define their own localities for the purpose of skills planning, and, even in places where a local authority or metropolitan combined authority forms a well-recognised functional economic area with a long history of collaboration, there is no suggestion, far less a guarantee, that new local skills improvement plan proposals will follow existing economic footprints.

We have all seen the confusion that different interpretations of what constitutes a local area have caused in relation to coronavirus “stay local” advice. To some extent, the Minister addressed the issue in her response to group one on day one, but I hope that her colleague will be able to confirm how this will be determined for a local skills improvement plan. Is it a local, city or county definition, or something else? Will all metropolitan combined authorities be classified automatically as an area for local skills improvement plan purposes? Will the local areas align with democratic accountabilities? What about existing regional strategies or those yet to be developed? Will directly elected mayors or their communities have a say in the demarcation of their LSIP area? Will they be able to challenge the Secretary of State if they disagree or believe that they would be better served by a different definition of an area? I am fairly confident that I know the answer to the last two of those questions, but I look forward to the Minister’s response to the various points that I have highlighted. I beg to move.

Photo of Lord Rogan Lord Rogan Deputy Chairman of Committees, Deputy Speaker (Lords) 3:15, 15 July 2021

The noble Lord, Lord Adonis, is not in the Chamber so I call the noble Lord, Lord Liddle.

Photo of Lord Liddle Lord Liddle Labour

My Lords, I support this amendment. However, I would just like to say, with great respect to the noble Baroness, that she did not answer the question I asked her on the first amendment. Nor was it a great reassurance to me to be told that Cumbria has been chosen as one of the pilot areas and responsibility placed in the hands of the chamber of commerce. I will explain that in a moment because it is relevant to this amendment.

If you are to have an effective local body that represents private sector and public sector employer interests, first, it has to have a clarity of focus on a particular labour market and, secondly, it has to be broadly representative of the businesses in the area. The chamber of commerce in Cumbria, taking this as an example, does a lot of good work with SMEs. It does a lot of training. It basically finances itself through doing local training courses for junior and middle managers, I would say. However, it has absolutely no connection with our major employers in the county: Vickers in Barrow, or the nuclear industry in west Cumbria—that is 20,000 workers to start with. In the area that I represent in Cumbria, there is a firm called Innovia, although its ownership has changed, that makes plastic films and employs about 1,000 people in a small town, but again it has very little connection with the chamber of commerce. The same would be true of the big firms in Carlisle such as Pirelli, which manufactures tyres, and Carr’s, which is now part of a wider biscuit group. I do this little bit of local storytelling because I do not think that putting skills planning in the hands of a chamber of commerce will prove to be a satisfactory solution. I want to see an employer-led approach—I agree with that—but we need to think about how we make this work more deeply than it seems to me the Government have. The areas do have to be relevant.

That is all I have to say, although I could add one point. In 2010, the coalition Government abolished the regional development agencies on the basis that they were not sufficiently employer led and that they were too bureaucratic and covered too big an area. They replaced them with something called local enterprise partnerships. These were intended to be employer led. Initially, in Cumbria everybody said, “Good idea: let’s have the chamber of commerce being the main private sector representative.” Eventually—and this is not a party-political thing at all—it was recognised all round that this body did not actually represent the proper mix of big and small employers. We have a reasonably effective local enterprise partnership running, chaired by the noble Lord, Lord Inglewood—one of the great figures of Cumbria who was a Member of the European Parliament on two separate occasions for the north-west area. He has tremendous local credibility and does a very good job. The LEP has looked at skills and done a lot of work on skills. I hear no mention of what the Government intend to do with local enterprise partnerships. They seem to be too scared to say, or too unwilling to say. I do not know quite what is going on there. I have no confidence that the Government have a grip on this. On the principle that there should be a strong, employer-led presence in determining skills policy, I totally accept that. But I just do not think the Government have thought it through.

Photo of Lord Rogan Lord Rogan Deputy Chairman of Committees, Deputy Speaker (Lords)

I call the noble Lord, Lord Young of Norwood Green. The noble Lord is not online, so I call the noble Baroness, Lady Morris of Yardley.

Photo of Baroness Morris of Yardley Baroness Morris of Yardley Labour

May I say to whoever’s job it is, it would be useful to have list of people who have withdrawn from speaking; it is really difficult to know when we are about to be called, but that is a different matter. I rise to support the amendments, particularly Amendment 24, and to agree with my noble friends Lord Watson and Lord Liddle.

I understand completely why the Minister and the Government want local voices to have a say in what the nature of the partnership should be. That absolutely makes sense. Our country is very rich in diversity, with urban areas, rural areas, clusters of villages and small towns. I can see that see that the same model for everyone might not work. If the starting point is trying to let local people feel that they have ownership of this, I can see that and I share that starting point. What I think is a recipe for disaster is not to offer any guidance and to explore with everybody exactly what the criteria might be to determine what the local partnerships are.

I am not sure whose job it is to propose what “local” means. Does it have to be negotiated locally? That could take some time. Anybody who has been to a constituency Boundary Commission review will know how tempers can rise when talking about anything that has a boundary. I am not sure who it is who comes up with the idea in the first place of what the local area is. I am not sure what the criteria are that they have been advised they should make their decision against. I am not quite sure of the process by which somebody somewhere says, “Yes, that local partnership is local and covering the right areas.” I am not sure what happens to any geographical area that no one wants and has not managed to get a place in any partnership. There are, very often, left-out areas. There will be some areas that are really popular, and everyone will want them in their area; there will be some that are really tough and challenging, and no one will want them. I am not sure how all that is to be sorted out.

What I would be looking for is to keep that idea of not forcing the same on everybody, but within a much stronger framework of guidance than we have at the moment and a clear idea of process. It puts me in mind of when, some years ago, the Government—I think it was the coalition Government actually—set out regional schools commissioners. They decided to have no regard to any existing boundaries. So, instead of following the local authority boundary or a government office boundary, they made it up as they went along. It was an utter disaster, and there were some poor people having to negotiate with more than one regional commissioner at any one time. All that happened was that bureaucracy flourished. With the number of hours that were spent by one local authority that had schools within two regional schools commissioner boundaries, it just was not a model to follow. The Government, very sensibly, got rid of it and, I think, made sure—I may be wrong about this—that it followed the government office regional boundaries. I may be wrong about that, but it certainly makes sense now, and I know we are not spending as much time trying to chase appropriate regional school commissioners.

Therefore, I cannot see any example of where this decide-it-yourself, let-us-see-what-happens, get-on-with-it model actually works. It might not be something people like but—to be honest—let us get on with the job. Let us not set up a system where we will spend hours fighting about the nature of the structure that delivers it, rather than using our resources, energy and effort on what should be delivered.

Photo of Lord Aberdare Lord Aberdare Crossbench

My Lords, the noble Baroness, Lady Berridge, has rather pre-empted some of what I intended to say in support of Amendment 24. I very much welcome the announcement of the first group of trailblazers. It is, of course, the intention that all areas of the country should, in due course, be covered by a local skills improvement plan. I very much agree with some of what the noble Baroness, Lady Morris, and the noble Lord, Lord Liddle, have said about how we make sure the whole system works.

Now that the first employer representative bodies have been designated, and the local areas for which they are responsible defined, it will surely still be necessary for the Government to provide and update guidance on the criteria against which further bids will be evaluated, as required by this amendment and as we learn about the experience of that first group. There needs to be a broad package of guidance addressing all the issues that we have discussed so far in our debates. That is not just on how local areas should be organised to ensure there are no not-spots, as mentioned by the noble Baroness, Lady Morris, but also on who should be involved in LSIPs, what their role should be, what resources are available to them, what reporting and monitoring is required and so on.

It remains rather difficult, at least for me, to assess the merits of LSIPs in the abstract. I was very taken by the suggestion from the noble Baroness, Lady Neville-Rolfe, last week that the Government might share one or two model LSIPs with us to help us in our scrutiny of the Bill. Will the Minister clarify as much as she can, in her response, what plans there are for guidance to be provided, not least in time for the next stage of our own debate?

Photo of Baroness Penn Baroness Penn Baroness in Waiting (HM Household) (Whip) 3:30, 15 July 2021

My Lords, as already discussed, local skills improvement plans will be developed by employer representative bodies working closely with employers, providers and key stakeholders. Guidance to support the publication of the plans will not expand the scope of the legislation but will provide further detail on the process and best practice to support the development and delivery of LSIPs. That guidance will be developed in discussion with key stakeholders and informed by evaluation evidence from the trailblazers announced today and running into next year.

In response to Amendment 12, moved by the noble Lord, Lord Watson, relating to whether guidance on LSIPs should be laid before Parliament and subject to the negative resolution procedure, it is common for this level of detail to be placed in guidance rather than in statutory instruments, so that it can be updated rapidly in response to emerging best practice and changing circumstances. I can also confirm that the Delegated Powers and Regulatory Reform Committee did not raise any concerns about this approach to guidance.

The noble Lords, Lord Watson and Lord Aberdare, and other noble Lords asked whether the draft guidance would be made available before Report. Because that guidance will be informed by the trailblazers, as announced today, which will run until 2022, I am afraid that guidance will not be available in advance of Report on the Bill. However, the point about the guidance being informed by the trailblazers brings us to the second amendment, on what is defined as local. We want to use those trailblazers—to learn from how they are working, to inform our approach to LSIPs and to address a number of the detailed questions that noble Lords asked.

Amendment 24 relates to publication of guidance setting out the criteria used to determine a specified area. The geography for local skills improvement plans will be based on functional economic areas and informed by evidence from the trailblazers. The specified area for a local skills improvement plan will be defined in the notice published by the Secretary of State on designation. In the trailblazers, we have allowed a certain amount of self-definition of “local area”. One of the things that we want to test and learn from in the process of the trailblazers is the best geography for plans, so we will be giving some flexibility in this area.

The noble Lord, Lord Liddle, asked about the role of local enterprise partnerships. The Government are working with LEPs to refine the role of business engagement in the local economic strategy, including skills, and to ensure that these structures are fit for purpose for the future, including looking at the right geographies. We will consider this work alongside evidence from the trailblazers, where flexibility has been given on geography, before making final decisions about the specified areas that local skills improvement plans will cover. I reassure noble Lords that, as they have already heard from the Minister, every area will be covered by an LSIP and no area will be left out.

I hope the noble Lord, Lord Watson, has received sufficient reassurance to allow him to withdraw his amendment and not to move his second amendment when it is reached.

Photo of Lord Watson of Invergowrie Lord Watson of Invergowrie Shadow Spokesperson (Education)

My Lords, I thank the Minister for her response. I was very taken by the comment by my noble friend Lady Morris about the ways in which local areas will be defined. She made an important point, which I confess I had not considered, about what will happen to areas she described as “tough and challenging”, which are perhaps not particularly in demand by the employer representative bodies. I hope that the Government will insist that employer representative bodies are properly representative not just of employers’ organisations but of their communities as well, to ensure that the potential problems that my noble friend Lady Morris mentioned will be headed off before they properly develop.

The noble Baroness, Lady Penn, said guidance will not expand the scope but will provide more detail, and I understand that. It is important that it can be updated, so I take the point. I have to say that she might have given a hostage to fortune by saying that the Government are not going to support the idea of a statutory footing because the Delegated Powers and Regulatory Reform Committee did not recommend it. I am pleased to see that the Government will in future be abiding by the recommendations of that committee, and no doubt we will be coming back to them on other issues in the days and months ahead.

I would like to raise another point. Both noble Baronesses mentioned trailblazers. If I caught the noble Baroness, Lady Penn, correctly, she said that they had been announced today. Since she said that, I have tried to find out about that, and the best we can do is that they have been announced this afternoon. We are in debate this afternoon. Why were they not announced at the very least this morning—or yesterday or the day before? This is becoming a pattern. Yesterday we got some of the lifelong loan entitlement amendments from the Government, just a few days before they are due to be discussed in Committee next week. I have to say that the impression being created is that the Government are not on top of all this. Certainly, if the trail-blazers are going to have the influence that the noble Baroness, Lady Penn, said—I think the trailblazers are interesting and I want them to be successful—we should have had sight of them, so that all noble Lords could perhaps have referred to them in the debate to inform the points that we all wanted to make.

So I cannot say I am pleased with the Minister’s response—I am not surprised, either—but the Government need to bear in mind the points that I and other noble Lords have made. Some of them will certainly arise in future days in Committee and perhaps even on Report. But, for the moment, I beg leave to withdraw the amendment.

Amendment 12 withdrawn.

Amendments 13 and 14 not moved.

Photo of Lord Rogan Lord Rogan Deputy Chairman of Committees, Deputy Speaker (Lords)

We now come to the group beginning with Amendment 15. Anyone wishing to press this or anything else in this group to a Division must make that clear in the debate. I must announce that we will move in this group from the noble Baroness, Lady Morris of Yardley, to the noble Lord, Lord Liddle.