Local Democracy, Economic Development and Construction Bill [HL]

Amendment 182 was inspired by the Local Government Association, whose support and efforts the Government have cited several times throughout this Bill, and so I hope that the Minister can throw her weight behind this new clause, which is also supported by noble Lords on the Liberal Democrat Front Bench. The amendment is designed to give regional development authorities power to delegate decision-making and funding to local authorities and groups of local authorities working at the sub-regional level. If the Government are serious about wanting to improve the way sub-national bodies operate, then surely allowing RDAs to loosen their grip on funds is a prime example. This will allow councils to make the necessary economic choices that will benefit their local people and of course to be held directly accountable to their electors for how that money is spent. I am quite sure that this would help to prevent the potential loss of millions of pounds, wasted or spent unnecessarily in the trickle of money through various bodies. This measure would at a stroke simplify the process, secure better value for money and empower authorities closest to the people they represent. I think that all noble Lords would be able to subscribe to those aims. I am told by the LGA that its research shows no evidence that the current boundaries, which were decided by the government offices, define regional economies. Below the national level, markets for goods and services, housing and labour operate at the sub-regional or city-region level. The LGA research has identified roughly 50 sub-national economic areas in England. It seems clear that this is where decisions should be taken—at the sub-regional, rather than the regional, level. If we are to persist with the system of RDAs, then at least allow them to function as efficiently as possible by allowing delegation where appropriate, so that decisions about the allocation of funds are taken at the most appropriate level. This is how local communities will be empowered and local authorities can take a direct and important role in the development of their communities. Surely that is precisely what we should be encouraging, given the current economic climate. I hope that we are pushing at an open door here, for the Government have shown that they are open to this idea. They stated in the 2007 sub-national review that they, "““expect the RDAs to delegate responsibility for spending to local authorities or sub-regions wherever possible, unless there is a clear case for retaining spending at the regional level””." Those are the Government’s words. However, in response to the public consultation on the SNR they issued the following statement: "““The Government has concluded that, with the proposed joint approach between the RDAs and the Leaders’ Board to producing the regional strategy and a joint approach between RDAs, local authorities and other sub-regional partners to investment planning for the strategy’s delivery, legislation is not needed to deliver the spirit of the SNR reforms. Investment planning will allow local authorities and sub-regional partners to have a determining role in planning and delivering interventions which are most effectively delivered at a sub-regional level, although formal approval and accountability will remain as now with the RDA””." That was in paragraph 2.52. It seems that at least some elements of the Government were receptive to this idea. However, an e-mail from a BERR official to key stakeholders gave a different slant. It stated that, "““our view of the restrictions on delegation within the current framework has NOT changed: RDAs cannot delegate responsibility for the spending of their budget. Under the proposals set out in the consultation response, RDAs will still have to formally approve projects proposed by sub regional partners and will be accountable for them””." If the BERR e-mail is correct then amendments to existing legislation will be required to, "““deliver the spirit of the SNR reforms””." The LGA’s proposed new clause will give RDAs the appropriate power to delegate power and funds as promised by the Government. However, should the BERR official's judgement not be correct, this amendment would still enshrine in legislation the Government's promise to deliver the spirit of the sub-national review reforms and ensure that power and funds were allocated to the most appropriate and effective level. I can only hazard a guess that on this issue the Government have become tangled in their thinking. I hope that this amendment will provide the opportunity to set the record straight and make things clearer. I beg to move.