Local Democracy, Economic Development and Construction Bill [HL]

My Lords, unfortunately it is my third sentence that says that the amendment is unnecessary. I will try to reassure the noble Baroness, who has raised some important points. She mentioned the policy statement and her concerns about ensuring that social and environmental well-being is not left off the agenda. The fact that I am reassuring her in the House will, I hope, add strength to the argument that this amendment is unnecessary. Amendment 156 would insert the provision that the duty to prepare an assessment of the economic conditions of an area shall not affect the powers and duties of a principal local authority in relation to the social or environmental well-being of the area. I assure noble Lords that nothing in Clause 65 would have an effect on any local authority’s powers or duties relating to social and environmental well-being. I understand that noble Lords are concerned that the new duty would give too great a prominence to economic issues at the expense of social and environmental matters. However, this is not the case. As the noble Baroness said, we set out in our policy statement that we believe that local economic assessments will contribute to the overall aim of delivering sustainable economic development. A primary function of the economic assessment is to inform the preparation of the sustainable community strategy, which sets out the long-term vision for the economic, social and environmental well-being of an area. The local economic assessment, however, will form only part of the evidence base for the sustainable community strategy. In preparing the strategy, local authorities will need to weigh the findings from the local economic assessment alongside all other factors that must be considered, including the need to promote social and environmental well-being. We do not expect economic assessments to be prepared without any reference to wider social and environmental concerns. Some of the main barriers to economic success are social issues such as lack of skills and poor health. Economic conditions in turn may have social consequences. We know that worklessness is often linked to worsening social outcomes such as increased crime. At the same time, it is obvious that economic development has potential environmental consequences, and all areas need to think about how well placed they are for moving towards a low-carbon economy. The noble Baroness was right: we will address all this in government guidance. In determining the long-term vision for the places that they serve, local authorities will need to bring together all the relevant issues in the sustainable community strategy. The economic assessment duty means that local authorities will have a good understanding of local economic circumstances, based on sound evidence. However, it is not the case that this evidence somehow trumps other considerations: it will be for local authorities to bring together all the evidence on economic, environmental and social issues, and balance the different considerations. The economic assessment duty will ensure that local authorities have a good understanding of the economy of the local area. There is no provision for these assessments to change existing local authority powers or duties on social or environmental matters. I hope that these reassurances will enable the noble Baroness to withdraw her amendment.