Police Reform and Social Responsibility Bill (Programme) (No. 2)

New clause 6 deals with the police and crime panel and, specifically, the powers that it may or may not have in respect of assessing and setting the precept. Ever since I first considered the issue of elected commissioners and their proper role, I have found the issue of budget setting particularly knotty and difficult. As a strong proponent of elected commissioners, I see a good argument for giving them the power to set the precept and the budget, and just letting them get on with that. I can see the argument that they have the mandate, so surely they should make the decision. However, I have at least a slight concern about giving such significant budget-setting power over a whole electoral term to one individual. That is why I am attracted to some of the ideas we have heard, including from colleagues on the Liberal Democrat Benches, about the police and crime panel. There has been a very positive, highest common factor rather than a lowest common denominator approach, and the Bill has been improved through the interchange of ideas between Conservative and Liberal Democrat Members. We have heard about the capping arrangements of the Labour party in recent years. There was capping under previous Conservative Governments but it seemed to become almost standard in Labour's 13 years in government for Ministers to set a number—it was never quite clear how they determined that number—over which anything, regardless of the circumstances and however low the council tax base, was capped by central Government. That approach seems wrong to me and we have a proposal to deal with it in relation to local government: instead of having a Secretary of State—I assume for Communities and Local Government—capping a council above a certain level, that Secretary of State would have reserve powers to require a local referendum in an area where he considered an increase to be excessive. That strikes me as a reasonably sensible balance, and certainly an improvement on the status quo and the current capping power.