My Lords, I thank the noble Lord for his introduction of this order and begin by a declaration of interest that I have entered in the register. I am a trustee of a local charity in Luton which takes people off the street, gives them a meal, gives them some training eventually and, it is to be hoped, helps them into employment. The charity engages with the local authority. It has various contracts with it and is always looking to have further such contracts.
The noble Lord will be aware of the debate in the other place and, from that, the fact that we are not looking to oppose this order. We are very happy to sign up to it and are supportive of the issue of transparency. I shall quote from the LGA briefing on the code to put the matter in context. It states:
“Local government is already one of the most transparent parts of the public sector, publishing information to inform citizens, communities and business about local authority democracy, accountability and finances, services and performance, and activities. Local authorities already publish their data based on statutory requirements and local needs and demands, which are often determined by local intelligence and Freedom of Information requests”.
It regrets the fact that this is effectively micro- managing the process and does not enable local authorities to work out their own arrangements for transparency and informing their citizens.
The Government’s position is that they espouse the cause of localism but, wherever you look, they have actually gone in the other direction—for example, with some of the planning changes that have been made, the assault on the publicity arrangements that local authorities enter into, issues around referendums and restraints on council tax levels. We recognise, too, that there has been a lot of history around this issue, culminating in the Local Government Transparency Code 2014. Therefore, I should like to make sure that I understand precisely the import of the order before us.
Part 2.1 of the code lists the areas where publication has to be quarterly. Under Part 2.2, there is a list of information to be published annually. It includes data covering local authority land, grants to voluntary, community and social enterprise organisations, organisation charts, trade union facility time, parking revenues, controlled parking spaces, senior salaries,
constitution and the pay multiple. I should like to be clear: in terms of widening the types of expenditure that the Government can require to be reported on quarterly—or certainly more frequently than annually—which of those are going to be included in that approach? Are they all going to be required to be dealt with on a quarterly basis in future? If some of them are still going to be required annually, which ones will not? I am not sure that that has been spelled out, although I may have missed it. I understand that this is a voluntary code. So far as it is going to be made mandatory, from what date is that mandation going to apply?
This approach focuses on local authority expenditure; nothing in it causes an assessment of the value of the spending that has been undertaken, its impact on the community and whether it is value for money. I shall take up just one matter: the requirement in relation to published details of trade union facilities. I am bound to say that that is a bit of a spiteful issue. There is nothing in the reporting which requires any assessment of the extent to which trade union time may have been spent validly supporting and improving health and safety in the workplace, which can have significant benefits and consequences for a local authority and its taxpayers.
Also, what has happened to the best value portfolio? This was a data series owned by the Audit Commission. We debated at some length what the future of that data set was going to be with the demise of the Audit Commission. When we left the Bill—now an Act—we did not have any clarity on that. I understand that a local authority company is going to be set up to deal with the management of the ongoing contracts, but I have not seen mention of what is going to happen to those best value portfolios. Perhaps the Minister can let us know.
The code has been around for a little while in one shape or form and it has been used more or less enthusiastically by certain authorities. However, what is our experience to date of people who are accessing the data and the use to which they are putting those data? We have a concept here and one can perhaps see the thrust of that, but what is happening here in reality? Who is getting on the internet and getting these data on a regular basis? Are great hordes of the voting public engaged in this? What evidence base do we have for that? Indeed, do we have any concrete examples of how the publication of these data has actually opened up market opportunities to particular SMEs or, indeed, the voluntary sector?
What are the enforcement arrangements to be in respect of this? Is it the Information Commissioner who will have to have oversight? Does a local authority’s auditor have to take a view on this? What is it that will ensure that the quite significant effort which is to be put into this will actually be carried out in practice?
The documentation which we have indicates that the Government have accepted that this approach should be treated as a new burden. However, that acceptance came before the impact of this order, which presumably carries with it a further increase in burden if there is to be more regular reporting of some expenditure items. What precisely is planned in terms of extra resourcing, given the impact of this order?
I note that it was the LGA, I think, which raised the question of whether the expenditure we are talking about was inclusive or exclusive of VAT. Part of the Government’s response in their Q&A was that if the VAT is recoverable, it will be net of VAT, but if it is not, it will be gross of VAT. However, that is too simplistic. The noble Lord will, I am sure, be well aware from his business experience that you can have circumstances where there is partial recovery of VAT. How is that to be encompassed within these arrangements?
Can the Minister also respond to the point that the LGA makes about parking revenues and controlled parking spaces? If I may, I will read that paragraph from its briefing. It says:
“Local authorities already make a return under the single data list for civil parking enforcement, including penalties issued, penalties cancelled and the immobilisation of cars. We see little value in publishing the number of controlled parking spaces in isolation, without a geographic reference to a town centre, because this gives no indication of the relationship between supply and demand, which will usually be affected by the availability of privately-owned car parks and the price of parking there. Moreover parking charges may only apply for part of a day and the times may not be the same at every location. As the charge for parking is determined by the demand for it, requiring publication of the number of paid for parking spaces in isolation from the detailed context affecting each location will not shed light on the quality of the parking service provided or the reasonableness of the charges. It is more likely to obscure the facts than to reveal them and will impose a pointless, unfunded burden on councils”.
The LGA calls for the requirement to be removed. How does the Minister deal in detail with the thrust of the argument that it makes there?
I have one final point to make. With thresholds of £500 and so on, what is our experience to date on whether there has been particular gaming around that amount, pitching expenditure just under it or having split invoicing arrangements? Obviously it potentially lends itself to that sort of approach? I will be grateful for the Minister’s response on all this but, as I indicated earlier, we are not minded to oppose the order.