Police Reform and Social Responsibility Bill

My Lords, I have two amendments in this group: Amendments 118A and 122AA. I also support the thrust of the other amendments in this group that we have already heard about this afternoon. We are talking about a considerable sum of money. As my noble friend Lord Beecham said, it is 11 per cent of council tax in England—millions of pounds. We are giving considerable power to two people to spend this budget. We have two corporations sole in the PCC and the chief constable, and one person to set the precept—the police and crime commissioner—again, as a corporation sole. Huge power over resources is being given to two people without any recognisable corporate governance safeguards. It is a most extraordinary proposal—one for which I have yet to hear any persuasive argument at all. If this Government last their full five-year term, it is clear to me that before the end of that term another police Bill will be introduced to safeguard the public purse as this structure will undoubtedly cause problems with the budget and the way in which the money is spent. I guarantee that the Government will have to come back to this, which is why it is so disappointing that so far we have had little sense that the Government are prepared to listen and introduce amendments to secure the public purse. First, I very much agree with what my noble friend Lord Beecham said about the need for transparency. Why should the police and crime commissioners hide behind the council tax levied by the relevant local authority? Surely, this matter should be completely transparent. As my noble friend says, there should be two completely separate precepts. Secondly, he referred to the relationship between this Bill and the Localism Bill, the Second Reading of which we are to have tomorrow. It is a very large Bill indeed. Although it is entitled the Localism Bill, it seems to give enormous power to the Secretary of State for Communities and Local Government. The freedom that local authorities are being given seems to me to be freedom to act as the Secretary of State instructs them so to do. However, as my noble friend remarked, there seem to be inconsistencies in the way that issues around the precepts are dealt with. Will the Minister assure me that there has been close understanding and contact between her department and CLG to ensure that the proposals on precepts and local referendums run together? My reading is that there is a conflict between the two Bills on this matter. I turn to the role of the panel in scrutinising the precept proposal. I very much agree with my noble friend Lady Henig on this. I do not see how the panel can undertake appropriate scrutiny unless it is given full details of the budget which lies behind the precept. We deserve an answer on that. We also need to hear why local authorities are not being properly consulted about the precept. Why should business rate payers be consulted but not local authorities? What is it about local authorities that should exclude them from this process? As we have heard from my noble friend—this comes back to the Localism Bill—11 per cent of council tax is accounted for by the relevant precept. That must have an impact in relation to the total tax raised from local council tax payers. Why on earth are local authorities not to be consulted on this matter? As regards the veto power, a three-quarters proportion is too high. I can think of very few circumstances where the veto power is likely to be exercised at that level. It is not even a case of 75 per cent of those present and voting, but 75 per cent who are members of the panel, so the bar is set higher than if it were those present and voting. There are a number of suggestions: two-thirds, 50 per cent and 50 per cent plus one. The noble Baroness, Lady Hamwee, has convinced me that 50 per cent plus one is the right figure. I am sure that when we return to the matter on Report, we will have to see which proposal commands the most support. Clearly, if the panels are to have any leverage whatever, they must have the ability to veto, and the bar must be set sufficiently low to make police and crime commissioners understand that it is possible for that veto to be applied. No police and crime commissioner will think that that is the case if the 75 per cent bar stays. Finally, I come back to the remarks of the noble Lord, Lord Wallace, on the previous group. He moved the argument on. We have understood that the PCP was there to scrutinise the police and crime commissioner. The noble Lord went further today and said that the police and crime commissioner is accountable to the police and crime panel. If that is so, surely we have to give those panels the ability to hold the police and crime commissioner to account. The Bill as it stands does not do that.