My Lords, I wish to speak briefly to this very good and interesting probing amendment from the noble Lord, Lord Scriven, and it is a pleasure to follow my noble friend Lord Young, who I know has great expertise in local government. We represented different parts of the London Borough of Ealing in different capacities over many years.
The noble Lord, Lord Scriven, has not compared apples with apples but apples with pears. We are a unitary state—we are not a federal state like Australia, Canada, Germany, Italy or France, where they have regional government and a culture of accretion of power to the local level. Therefore, we have to have some central sanction and control of the disbursal of funds. So I do not think that the noble Lord is necessarily comparing the situation that we are in wholly accurately.
However, the noble Lord makes a very astute point about the hoarding of power, particularly financial power, by the Treasury. Any Minister will tell you that, over the years, the Treasury has not wanted to give power away and has wanted to bring in power. The noble Lord is absolutely right that far too much of the funding of core local services is in effect subject to the begging-bowl approach, as enunciated by Andy Street, the executive mayor of the West Midlands.
The problem with the situation that we now have—the disparity of local councils being responsible to their electorate for decisions, in effect, taken centrally—is
that central government of whatever party is in power gets the income in and can make those judgments based on its manifesto, but it is local councillors and officers who are accountable and often take the brickbats for failures. For instance, many people have argued for many years about residential real estate investment trusts leveraging private sector money to provide new, good-quality housing for young people in particular. The Treasury has never really advanced that properly, and local government could be very much involved in it. Social care is another area. All Governments should look at tax breaks for providing extra care facilities—in terms of nutrition, housing, exercise and so on—for old people from the age of 60 all the way through to death, as many countries have across the world. That is an example of a central government policy that could also help local government.
I have great sympathy for the amendment from the noble Lord, Lord Scriven. I hope there is further debate on it. It cannot be right that we cannot follow other modern liberal democracies such as the United States where local authorities and mayors have the capacity, for instance, to raise funds for the issuance of bonds, local infrastructure and capital projects. We have very restrictive financial and legal rules in this country that prevent us doing the same. On that basis, we have begun a good debate and I look to my noble friends on the Front Bench to run with it and, as my noble friend Lord Young of Cookham said, show some ankle, as it is long overdue.