UK Parliament / Open data

Localism Bill

Proceeding contribution from Lord Stunell (Liberal Democrat) in the House of Commons on Monday, 7 November 2011. It occurred during Debate on bills on Localism Bill.
The amendments focus on the community right to challenge, on assets of community value, and on council tax referendums. As the Minister of State, my right hon. Friend Member for Tunbridge Wells (Greg Clark), said at the beginning of our debates, the fundamental aim of the Bill is to shift power away from central Government and back to local communities. This part of the Bill enables decentralisation to be taken beyond the town hall, so that we can empower communities and enable them to play a bigger part in local life, whether their aim is to improve local services or to save treasured assets. Community rights will give communities more opportunities to do exactly that. When it is successful, it will give them a chance to compete to deliver those services themselves, using local knowledge, expertise and innovation to improve local services. Assets of community value will hand communities the initiative so that they can identify important local assets such as the old town halls, village shops and pubs that are of value to community life. There are already many good examples across the country of communities coming together to take over local pubs, shops, libraries and community centres. I think that all of us will have seen examples—if not in our constituencies, during visits to other areas. However, there are many more cases in which communities have missed out because they were not aware that a building was up for sale, or because when they discovered that, they lacked the time to make a viable bid. The new right will make it easier for communities to save local assets that are important to them, and will give them the time that they need to prepare a bid to take them when they come up for sale. We are also replacing central Government capping with council tax referendums. I had intended to say more about that, but I think that I covered it adequately in the last debate. A wide range of bodies have said that the powers and opportunities that we are providing are long overdue and very welcome. The National Association for Voluntary and Community Action, the Association of Chief Executives of Voluntary Organisations, the National Council for Voluntary Organisations and Locality have all expressed the view that we are doing the right thing, and during the Bill's passage Members on both sides of the House have expressed broad support for the principles of our reforms. However, Members wanted us to go further in some respects, and expressed concern about the details of a number of other aspects of our proposals. As my right hon. Friend said, we have been in listening mode throughout. We have considered the points that have been made not just by Members of the House of Commons, but by peers and interested parties outside. The hon. Members for Birmingham, Erdington (Jack Dromey) and for Worsley and Eccles South (Barbara Keeley) played an important role in the debates that led to the amendments, and in the other place Lord Greaves, Lord Tope, Lord Patel of Bradford and Baroness Hamwee made helpful contributions. Although we had some excellent debates here in Committee and on Report, we did not think it appropriate to amend the provisions until we had had a chance to consider all the responses to the consultation carefully. That consultation closed in May. Following consideration of the responses and the debates in the House of Lords, we tabled amendments on Report intended to improve the workability of the provisions in the Bill and strengthen their effectiveness. On the right to challenge, the consultation and debates in both Houses demonstrated that there was an appetite to extend the reforms, but also that there were concerns about the prescription in the Bill. To address the former, amendment 115 makes it clear that the right could be extended to require a Minister or Government Department to consider expressions of interest. To address the latter concern, we have removed a number of delegated powers, particularly those allowing the Secretary of State to prescribe time scales associated with the right to challenge. Instead, under amendments 118 to 121 it will be for local authorities to set their own time scales, while having regard to factors to be set out in guidance. There are also a number of minor amendments to the right to challenge. I will not detain the House by describing them in detail, but, for example, we have made it clear that the definition of community body in the provisions does not include a public or local authority, and we have ensured that if the right is extended, it would continue to apply only to services provided in England. There has also been broad support for the principle of giving communities greater opportunities to identify assets of community value and more time to raise the funds. We have also had constructive discussions about improving the practical application of the provisions and avoiding overly detailed rules. I would particularly like to thank Lord Gardiner of Kimble, Lord Cameron of Dillington, Earl Cathcart and Lord Howard of Rising for their contributions to improving these provisions. We have listened carefully, and amendments 122 to 126 define land of community value based on principal use for social well-being and social interests, including cultural, recreational and sporting interests. Amendments 127 to 130 make it clear that only a voluntary or community body with a local connection may nominate an asset to be listed by a local authority, which will safeguard against vexatious nominations by individuals. We have also improved the workability of these provisions by exempting certain types of relevant disposal: those where the community is not at risk of losing the asset. Amendments 140 and 144 exempt several types of relevant disposals from the moratorium in the Bill. As a result, the provisions will not cover situations such as where a village shop is to change hands as a going concern and the community will still get the benefit of a shop, nor will they capture a situation where a transfer is made between family members or through inheritance or gifts. Further exempt disposals will be set out in regulations. Most importantly, we have ensured that groups will have enough time to raise funds to buy assets; that was a key concern of community groups. Amendments 141 to 145 specify that the interim moratorium will be six weeks, the full moratorium will be six months, and the protected period in which a further application cannot be made will be 18 months, starting from the first date. In other words, there will, in effect, be a 12-month moratorium period. We have also reduced the amount of prescription. Amendments 131, 132, 134 and 135 give local authorities greater freedom to decide how to administer and publicise lists of assets of community value in their local area. In summary, these amendments will ensure that the provisions give communities a powerful new tool to preserve assets of community value, while ensuring that we do not create unintended consequences. These reforms were welcomed by the National Association for Voluntary and Community Action and by the Country Land and Business Association. When both those organisations claim victory, it is clear that we must be doing something right. Finally, this group also contains a number of smaller technical amendments, which include provision for ensuring that levies made on local authorities by levying bodies are not part of the calculation on whether a council tax increase is excessive, and for ensuring that only residents, and not business voters, in the City of London are entitled to vote in a council tax referendum. I hope that that gives at least a little comfort to the hon. Member for Hayes and Harlington (John McDonnell). Overall, I hope that hon. Members will agree that these amendments significantly improve the Bill and address issues of common concern, and so will agree to them unanimously.
Type
Proceeding contribution
Reference
535 c116-8 
Session
2010-12
Chamber / Committee
House of Commons chamber
Legislation
Localism Bill 2010-12
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