Local Democracy, Economic Development and Construction Bill [HL]

My Lords, the noble Baroness, Lady Warsi, and the noble Lord, Lord Hanningfield, have tabled Amendment 148, which would remove the requirement for local authorities to consult named partner authorities in preparing their local economic assessment. Amendment 149 is a consequential amendment, while Amendment 157 would remove Clause 66, which lists those partner authorities. We discussed these provisions at some length in Committee. We explained that we have included these provisions in the Bill because we believe that there are partners that local authorities should be required to consult in carrying out their assessments. The authorities that are listed are already working closely with local authorities in local strategic partnerships. We believe that it is important that these partners should be given the opportunity to engage with the principal local authorities in assessing the economic conditions of the area. The list of partner authorities takes as its starting point the list of partner authorities which are set out in Part 5 of the Local Government and Public Involvement in Health Act 2007 for the purpose of agreeing local area agreements and which responsible authorities must consult when developing their sustainable community strategies. We have taken this approach because local economic assessments are expected to form part of the evidence base for the sustainable community strategy and for the local area agreement negotiations. All the partners listed have a duty to co-operate with local authorities in determining local area agreement targets and must have regard to these targets in the exercise of their functions. In view of this, we believe that it is only fair that these partner authorities should have an opportunity to contribute to the local economic assessment. Involving these partners at an early stage in identifying the economic strengths and weaknesses of the local economy will help to strengthen the impact and effectiveness of targets agreed through local area agreements further down the line. Also, we should not lose sight of the fact that local economic assessments will inform the preparation of the regional strategy. It is important that the regional strategy should be informed by the best possible advice and knowledge. Many of the partner authorities listed in Clause 66 will play an important part in that process as well. However, as I explained, our intention has been to ensure that local authorities at the very least consult those public bodies that are working closely with local authorities in determining local area agreement targets and delivering them. We are keen to keep prescription to a minimum and to allow space for local flexibility. In Committee, we heard the arguments put forward by the noble Baroness and the noble Lord against the inclusion of partner authorities. I undertake to table appropriate amendments at Third Reading to deal with those concerns. With that reassurance, I am sure that the noble Baroness will be happy to withdraw the amendment.