With this it will be convenient to discuss the following:
New clause 2—Local Government Constitutional Convention: terms of reference—
“The convention must consider the following terms of reference—
(a) the devolution of legislative and fiscal competence to local authorities within the United Kingdom;
(b) the reform of the electoral system for local government;
(c) constitutional matters relating to local government to be considered in further conventions; and
(d) procedures to govern the consideration and implementation of any future constitutional reforms in relation to local government.”
This new clause creates the means by which every UK citizen can engage in a national public discussion of devolution local government, governance and electoral systems and make recommendations and receive a response from government and parliament to that national debate.
New clause 3—Local Government Constitutional Convention: recommendations—
“(1) The Local Government Constitutional Convention must publish recommendations within the period of one year beginning with the day appointed under section (Local Government Constitutional Convention).
(2) The Secretary of State must lay responses to each of the recommendations before each House of Parliament within six months beginning with the day on which the recommendations are published.”
This new clause creates the means by which every UK citizen can engage in a national public discussion of devolution local government, governance and electoral systems and make recommendations and receive a response from government and parliament to that national debate.
New clause 4—Local Government Constitutional Convention: composition—
“(1) The Local Government Constitutional Convention must be composed of representatives of the following—
(a) registered political parties within the United Kingdom,
(b) local authorities, and
(c) the nations and regions of the United Kingdom.
(2) At least 50% of the members of the convention must not be employed in a role which can reasonably be considered to be political.”
This new clause creates the means by which every UK citizen can engage in a national public discussion of devolution local government, governance and electoral systems and make recommendations and receive a response from government and parliament to that national debate.
New clause 5—Commission on devolution of fiscal powers and taxation—
“(1) The Secretary of State shall appoint a commission on devolution of fiscal powers and taxation to local authorities.
(2) The Commission shall consider the following issues—
(a) the desirability, impact and process necessary to implement an Income Tax rate of 10p in the pound on English tax payers;
(b) the desirability, impact and process necessary to give English Councils the same fiscal and taxation powers as those devolved to the Scottish Parliament in the 2012 Scotland Act, and
(c) any other issues that the Commission considers relevant.
(3) The Commission shall produce a report covering the issues listed in subsection (2) no later than 31 December 2017, and shall make such recommendations to the Secretary of State as it deems necessary.”
This new Clause would establish a Commission to consider the possibility of England local authorities being granted the same fiscal and taxation powers already devolved to Scotland in the Scotland Act 2012.
New clause 8—Combined authority functions: cool off period—
“(1) The Secretary of State shall amend any order made under a provision of this Act which transfers a power to exercise of a function from a constituent part of a combined authority to a combined authority, to devolve responsibility for that function back to a constituent part of that authority, if the following conditions are met—
(a) A constituent part of a combined authority requests that the Secretary of State amend an order to return responsibility for the exercise of a function to the constituent part of the combined authority from the combined authority, and
(b) Such a request is made within one year of the first local government election held in the constituent part of the combined authority since the original order was made.”
The intention of this amendment is to create a cooling off period for the transfer of any power to the level of a combined authority. If a constituent part of a combined authority requests that a power is returned to it within one year of next elections held in the constituent part, then the Secretary of State must amend the relevant order to return power to the constituent part.
New clause 10—Governance arrangements for local government: entitlement to vote—
“In section 2 of the Representation of the People Act 1983 (local government electors), in subsection (1)(d) for “18” substitute “16””
This Clause would re-instate the provision in the Bill, as brought from the Lords, allowing votes for 16- and 17-year olds in local government elections.
New clause 11—Review of fire and rescue services in combined authorities—
“(1) The Secretary of State must, within 15 months of this Act being passed, publish a review of the fire and rescue services affected by the provisions of this Act.
(2) The review must make an assessment of the extent to which the provisions of this Act affecting fire and rescue services have worked safely and efficiently for the protection of the public over the first 12 months from this Act being passed.”
This Clause would require a review, after 12 months of the Bill being passed, of the fire and rescue services to make sure the new system is working safely and efficiently for the protection of the public.
New clause 13—Fiscal and financial powers—
“Within six months of the passing of this Act, the Secretary of State must publish plans for further devolution of fiscal powers to local authorities in England, including—
(a) an equalisation model related to the retention of business rates, to ensure local authorities with lower business rate income are not negatively impacted;
(b) greater local authority control over local tax rates and discounts;
(c) provision for combined authorities to set multi-year finance settlements.”
This new clause allows the Secretary of State to ensure devolution continues beyond current devolution deals by setting out plans for further fiscal devolution and greater local freedom and stability in relation to budgets and tax rates. The clause also ensures a model is put in place to ensure authorities with lower business rate income do not lose out from the phasing out of central government grants.
New clause 14—Cooperation with peripheral authorities—
“No later than three months after the passing of this Act, the Secretary of State shall publish guidance to be considered by combined authorities while exercising a devolved function, in order to—
(a) have regard for any significant direct impact of decisions taken by the combined authority on neighbouring authority populations;
(b) encourage cooperation between combined authorities and their neighbouring authorities so as to encourage local growth;
(c) enable greater economic cooperation between combined authorities and their neighbours within a travel-to-work area.”
This new clause asks the Secretary of State to publish guidance to ensure neighbouring authorities are considered when devolved functions are exercised, and encourage economic cooperation between authorities within a regional economy or travel-to-work area.
Government amendments 4 to 6.
Amendment 58, in clause 2, page 2, line 10, at end insert—
“( ) The transfer of local or public authority functions to combined authorities shall not be dependent on an order being made under subsection (1).”
This amendment makes clear that devolution deals must not be dependent on a combined authority having a mayor.
Amendment 2, page 2, line 13, at end insert—
“(2A) An order under subsection (1) may not be made unless the proposition that the combined authority have a mayor is approved by a referendum of the electorate of that combined authority.
(2B) The Secretary of State shall, by regulations, establish the procedures to be followed in conducting a referendum under subsection 2A.
(2C) Before making a regulation under subsection 2B, the Secretary of State must consult the Electoral Commission.”
The intention of this amendment is that elected mayors will be introduced only if that proposal has been approved by a referendum of the residents of the combined authority. The rule for the conduct for such a referendum shall be made by the Secretary of State, in consultation with the Electoral Commission.
Amendment 57, page 2, leave out lines 21 to 26 and insert—
“(7) An order under this section providing for there to be a mayor for the area of a combined authority may be revoked or amended by making a further order under this section; this does not prevent the making of an order under section 107 abolishing the authority (together with the office of mayor) or providing for a constituent part of the combined authority to leave the combined authority and to resume its existence as a separate local authority.
(7A) An order under this section providing for a constituent part of the combined authority to leave the combined authority and to resume its existence as a separate local authority must make fair provision for a reasonable and proportionate division of resources between the former combined authority and the seceding local authority.
(7B) Where a combined authority has entered into a contractual arrangement with a third party and an order under this section is made to enable a constituent part of a combined authority to resume its existence as a separate local authority, that separate local authority shall be deemed to be a contracting party to that agreement unless an alternative agreement is reached with the third party.”
The intention of this amendment is allow for a constituent part of a combined authority to leave a combined authority without the combined authority being dissolved, with provision for “fair terms” for the leaving party (i.e. their resource is calculated on a per capita basis, or similar.) and the impact this may have on contractual arrangement with third parties.
Government amendments 7 to 25.
Amendment 59, in clause 10, page 12, line 32, at end insert—
“(1) Within 6 months of the passing of this Act, the Secretary of State must publish a report on the performance of the Localism Act 2011 and a review of the general power of competence provision in relation to its use by combined authorities.”
This amendment introduces a review of the use of the general power of competence by combined authorities.
Government amendments 26 to 29.
Amendment 1, in clause 15, page 17, line 7, at end insert—
“( ) all local authorities in a mayoral combined authority commencing a community governance review of their whole local authority area within two years of this Act coming into force.”
This amendment introduces further measures to support the creation of new local councils with mayoral and combined authorities required to conduct a community governance review within two years of the Act coming into force.
Amendment 56, page 17, line 23, at end insert—
“(4A) Regulations under this section, so far as including structural or boundary provision in relation to a non-unitary district council area, may be made if at least one relevant local authority consents.
(4B) Local authority in this case is defined as—
(a) a non-unitary district council whose area is, or forms part of, the non-unitary district council area;
(b) a county council whose area includes the whole or part of the non-unitary district council area.
(4C) Relating to 4a and 4b
(a) “non-unitary district council area” means the area or areas of one or more non-unitary district councils;
(b) “non-unitary district council” means a district council for an area for which there is also a county council;
(c) “structural or boundary provision” means provision about the structural or boundary arrangements of local authorities in regulations made by virtue of subsection (1)(c).”
The intention of this amendments is to allow the government to make changes to boundaries of local authorities if it has the consent of at least one relevant local authority.
Government manuscript amendment (a) to amendment 56, after subsection (4C), insert—
“(4D) Subsections (4A) to (4C) expire at the end of 31 March 2019 (but without affecting any regulations already made under this section by virtue of subsection (4A)).”
This amendment provides for the provisions in subsections (4A) to (4C) of clause 15, allowing structural and boundary provision in relation to a non-unitary district council area if at least one relevant local authority consents, to expire at the end of 31 March 2019.
Government amendments 30 to 33 and 36.
Amendment 3, in schedule 1, page 37, line 3, leave out paragraphs 4 and 5 and insert—
“4 (1) The mayor is to be returned under the simple majority system.”
This amendment would require the mayors of combined authorities to be elected using the simple majority system, also known as “first past the post”.
Government amendments 37 to 45, 50 and 52 to 55.