Part of the debate – in the House of Lords at 5:45 pm on 25 March 2024.
My Lords, I thank the Minister for introducing these regulations. It is a pleasure to follow the noble Lords, Lord Scriven and Lord Shipley, who have asked some very important questions.
The Levelling-up and Regeneration Act 2023 provides for the establishment of combined county authorities, which typically cover more rural areas; the existing combined authorities typically cover cities. The purpose of these regulation is to ensure that the same membership and proceedings provisions apply to the overview and scrutiny committees and audit committees of combined county authorities as apply to the same committees in combined authorities.
The regulations aim to create uniformity across both types of local authority in terms of committees that scrutinise the spending of public money and enable their members to be paid. We on these Benches would like to raise some specific issues. The measures mirror powers given to local authorities and the current combined authorities. We must be careful that we do not create legislation that allows combined authorities to create overview and scrutiny functions and audit functions if they do not have the specialist teams that are needed to support them properly.
This is a point my honourable friend Jim McMahon MP raised in the other place; he had no satisfactory response. We all know that when local government excels in scrutiny, it is because it has a well-resourced team that enables it to do proper, deep-dive reviews and investigations, to call in expert witnesses and to really go through things. I do not see that provision of finance in these regulations, so I would welcome a response on that.
Will overview and scrutiny committees have the power to conduct a “best value” review? Will remuneration for members of the committees reflect the type of members the committees want to attract? For instance, getting a specialised accountancy perspective may cost more than getting a residential view; will remuneration for each be the same or different? Have overview and scrutiny committees been reviewed yet? How effective have they been so far at ensuring that there are checks and balances in place on local authority spending? Who will pay for the provisions of these regulations? Will the cost come out of already-stretched local authority budgets?
To conclude, we must also recognise that the more powers we give out, the more robust the checks and balances need to be. We are concerned that 14 years of Conservative economic mismanagement, compounded by spiralling inflation and the failure to grow our economy, have hit councils hard. We are keen to ensure that local councils are supported where the Government have failed. We will not expect councils to live hand to mouth, with short-term financial settlements year on year—I think we are now on our sixth single-year financial settlement—which make it difficult for councils to plan. Labour will give councils long-term, multiyear funding settlements so that they can plan ahead, as well as the tools they need to get on with the job. I look forward to the Minister’s response.