I wish to speak broadly to amendments 23 to 32 to clause 55 in part 4 of the Bill, and to the “highly likely” test on judicial review. I also wish to share my thoughts on the specific proposals for judicial review, based on the recent experiences of the Liverpool City and South Yorkshire regions, which directly affects my constituents. As a precursor, I should say that I accept that the number of judicial review cases has risen in recent years, but I am not certain that the proposed revision of judicial review would give a fair outcome to those parties seeking review, or tackle the reasons why instances of judicial review have increased.
In particular, I wish to address the idea that the likely outcome would be assessed as part of the process leading to the granting of a judicial review, rather than the legality of the process leading to the said outcome. On 7 February the South Yorkshire and Liverpool regions won a joint High Court action that ruled that cuts in European funding were unlawful. Lawyers bringing that action argued that the significant reduction in funding of 65% was disproportionate compared with other areas.
Evidence presented to the Court at the time showed that Ministers allocated €150 million less to Liverpool City region, and almost €90 million less to South Yorkshire, than they had estimated their share to be. Obviously, that could not be fair. It meant that over the next seven years, funding to Liverpool City region worked out at €147 per head, compared with €380 in the previous funding round from 2007 to 2013. A judicial review case was filed in September 2013, and the process, rather than the outcome, was deemed out of order. The judge requested the High Court to order the Government to adjust their allocation of funding from Europe because of the flawed calculation method used to distribute €10 billion from the European regional development
and European social funds. Had that decision not been challenged, the funding that would have been allocated to Liverpool City region and South Yorkshire would have been spread across other regions.
Under the judicial review process as it stands, South Yorkshire and Liverpool were right to file for judicial review, as they believed that the process by which the decision was made was flawed. Logic would suggest that if the process behind the decision was flawed, the likelihood is that the decision itself would be flawed. Unsurprisingly, the judge ordered the Government to reconsider the funding arrangement.
The difficulty is that we will never know what would have happened if the Government’s proposals on judicial review had been in place at the time of that specific case. I suspect that the Government, already having a series of funding arrangements in mind, would have granted the same levels of funding to South Yorkshire and Liverpool, regardless of the process under which the funding allocation was decided. If, at the application stage, it was deemed that South Yorkshire and Liverpool would have been likely to receive the same amount of funding, their application would have been taken no further. To be clear: in South Yorkshire and Liverpool, I suspect that the likely outcome would have been assessed as the same in this case, regardless of the flawed process. Therefore, at the beginning of this process, the case may have been unable to proceed—a case in which 3.6 million people living in those regions would have not been able to access €10 billion-worth of funding.
Such considerations—those predictions of likely outcomes—will now become law under the Government’s plans. I have no doubt that in some areas judicial reviews may be seen as wasteful, but at the same time I strongly believe that the case I have referred to would not have made it to court under the new proposals.
Was the process flawed? Yes. Is the outcome likely to be similar? Perhaps, yes. Does that mean that the people of the Liverpool City and South Yorkshire regions should not have been afforded the opportunity to challenge? No. On the slim chance that the outcome would change for them, taking the case to the courts would have seen the two regions immeasurably better off. It is only right that the people of those regions be allowed to challenge that decision.
A faulty process often leads to a flawed decision, and even if the outcome might be the same, we need to consider those rare cases in which the outcome is predicted to stay the same so judicial review is not granted, but the outcome is then prevented from being different. In their current form, these plans would prevent case law from forming based on the one in 100 cases in which the outcome might have been predicted to stay the same but in fact did not stay the same. We are taking the power of the formation of case law away from judges, and we are instead putting the power of decision making into the hands of people less experienced in making such decisions.
I implore the Minister to look at the case of the Liverpool City and South Yorkshire regions as an example of why judicial review should be granted not on the basis of the likely outcome, but on the basis of the process of decision-making. We must allow flawed processes to be challenged, so that for the cases in which an
outcome is different, the people involved are granted that outcome, rather than having it snatched away from them before it goes to court.