Local Democracy, Economic Development and Construction Bill [HL]

My Lords, I declare my interest as president of the Local Government Association and I extend my thanks to the LGA not only for helpful briefings but for co-ordinating and expressing the local government perspective in its influential discussions on this Bill with central government. I know that the LGA welcomes this Bill, which it sees as a step along the path of devolution from central to local government. At first sight, the Bill’s measures for promoting local democracy appear paradoxically to be a lengthy list of additional duties and requirements imposed on local councils by central government. But the dilemma of how greater local devolution can be achieved by central government directive is resolved if one recognises that the Bill will give local government the central role in increasing democratic participation and citizen engagement. A statutory basis for this role for local authorities not only underpins and emboldens their efforts, but justifies the time and money that needs to be spent, sometimes against hostile sniping locally. As we have heard from several Members of this House today, some fears remain that central government will be unable to resist trying to control local initiatives and will impose rigid centralised and bureaucratic constraints on how each council interprets its new duties. It would help if the Minister could be reassuring that, having devised a sensible statutory framework, the Government see their task as standing back and encouraging varied and imaginative local action to increase democratic and participative engagement at the local level. I should like to pick up on a new duty under Clause 1(1) and (2), which relates to a requirement on local authorities, "““to promote understanding of the””," role of councillors—that is, how to become one—and the support available to them to carry out their role. As always, there are already some great examples of councils taking seriously the need for renewal among their council membership, recruiting people of all kinds to become elected members, as so ably advocated by Dame Jane Roberts in her recent commission on this theme. I was pleased to sit on an inquiry by the All-Party Parliamentary Local Government Group, organised by the Local Government Information Unit, which has produced first-class guidance for councils on this theme. One of our witnesses was a really good woman councillor from south London who, despite disability and family responsibilities, was clearly an excellent representative for her community. It is not always necessary for councillors to regard their task as a full-time job, as a very long-term commitment or as a stepping stone to some other position, although all those are sometimes the case: rather, acting as a good neighbour for a whole community, giving authentic voice to local needs through the local democratic process, can be the very best form of citizen involvement and engagement. I commend this ingredient in the Bill and I hope that it will reinforce and extend the efforts of all local authorities to draw in more of the latent talent in their areas. As you might expect from someone on these Benches, I add that people with no political affiliations—after all, more than 98 per cent of the population do not belong to a political party—also need encouragement to seek election as council members. I speak as one whose father served as an independent councillor for 40 very fulfilling years, although I suspect that Lord Nolan’s commission would have suggested that a rather shorter term should be the norm. I turn to those parts of the Bill concerned with regional strategy. Here, the LGA can claim to have achieved an important change from the current arrangements, with the Bill now proposing a key role for local government through the local authority leaders’ boards working jointly with the regional development agencies. This measure, as the LGA says, plugs a democratic deficit in the Government’s original proposals and ensures that directly elected authorities are fully involved in decisions about regional strategy. My hesitation here, as with the economic prosperity boards, concerns the degree of real autonomy and unfettered decision-making that gets passed down the line, together with worries about the extent to which funding is actually going to be devolved. I know that noble Lords will want to explore these issues further as the Bill progresses. I want to add a word on multi-area agreements, the voluntary agreements between neighbouring local authorities which enter into a contract with central government. These products of the Government’s sub-national review, now being piloted in seven places, look set to be popular and effective in tackling the issues that cross council boundaries. They get the seal of approval in principle from such bodies as RICS and the CBI, and I note the headline in the Local Government Chronicle of 4 December: ““Zest for Sub-Regional Powers—LGC survey reveals unanimous support for statutory city regions””. With new measures for economic development becoming vital as recession hangs over us, these partnerships could make a big difference. This is already the outcome emerging from sub-regions as diverse as Greater Manchester, about which we may hear more later, and South Hampshire. Perhaps I may make two further brief points. First, I refer to the creation of the so-called national tenants’ voice to enhance the support for and representation of tenants in social housing. Now that the new Tenant Services Authority has got off to a good start, this is an important additional measure for all those in council and housing association accommodation. However, it is not a national tenants’ voice because it excludes the large, expanding private rented sector and further widens the gap between tenants in social housing and the tenants of private landlords. The latter pay higher rents, perhaps three or four times as much in places like London, but compared with tenants in social housing enjoy very limited security of tenure. The new Rugg review calls for measures to regulate landlords and, echoing key recommendations from Sir Bryan Carsberg in his report for RICS, for redress and an ombudsman scheme to protect private tenants. I declare an interest as deputy chairman of the Ombudsman Scheme for Estate Agents, which covers some lettings agents in the private rented sector, but relatively few since the scheme, unlike that for those buying and selling properties, is not mandatory. I ask the Minister whether this Bill, one that already embraces a mixed bag of different concerns, might not incorporate some first steps on the road to giving a voice and some protection to private as well as social housing tenants. Secondly, in terms of possible additions to the Bill—here I declare my interest as a member of the NCVO Advisory Council—this Bill could be the moment to put on a statutory basis the role of the Compact Commissioner, who handles relationships between statutory bodies, including very prominently local authorities, and the voluntary sector. I understand that the Government are considering a new clause to give the commissioner powers to enhance this important role. Any further news on developments from the Minister, whose stamina, courtesy and skill I cannot praise enough, would be gratefully received.