My Lords, the two amendments in this group apparently have little in common, but they do. Their common feature is that they are all about fairness. Amendment 66 in the name of my noble friend Lord Shipley is about fair voting systems. I obviously support his remarks about the importance to our democracy of having an electoral process and system that is seen to be fair to the electorate. As he rightly said, anyone elected with a third of the vote does not have the support of the majority of the electorate in their area. Fairness in voting is very important.
Amendment 63 in the name of the noble Baroness, Lady Taylor of Stevenage, and introduced by the noble Baroness, Lady Hayman of Ullock, is about fair funding. If levelling up—the name of the Bill—means anything, one element must be fairness across the country. This means fairness in terms of our democracy and fairness in terms of the financial support given to communities across England.
One thing we know is that our communities across the country vary considerably in their levels of inequality. As I have said many times during the debate on this Bill, the levelling up White Paper is full of information about how some people in some parts of our country are at a huge disadvantage because of the inequalities that they suffer as compared with the rest of the country. We have listed these inequalities before: in health, in skills, in access to public transport, in crime levels in their areas and in the quality of the housing and green spaces available. There is a plethora of examples of where some communities and the people who live in them are at a serious disadvantage because of those inequalities. At the heart of that are the councils that serve them. If councils have inadequate funding to provide the level of services that respond to the level of need, those inequalities will persist and get wider.
This brings me back to fair funding. As the noble Baroness, Lady Hayman of Ullock, said, fair funding has been a promise of this Government—a pledge, even—for six years, and rightly so. The national audit companies that do the external audits for local authorities make regular reports about the state of the whole local government system and its financial well-being. I read those reports because they are important; they give you an independent look at the state of local government. They say clearly that a number of local authorities in England will soon not be able to fulfil even their basic statutory responsibilities because they have inadequate finance. As the external auditors say, that is not because there is profligacy in the way the councils are run; it is simply because they have inadequate funds to fulfil their responsibilities. This could be because the areas have high levels of need and deprivation to respond to but it could also mean that they have historically inadequate levels of funding; that is why fair funding is so important.
I understand why the Government have been reluctant to fulfil a fair funding review. Unless there is a bucketload of extra money for local government finance, which I doubt, it will require a re-spreading of the same amount of funding for local authorities. This means that there will be winners but there will also be losers. I
guess that is why the Government have so far failed to tackle this thorny issue. I accept that it is not easy but it is essential.
The cause of this is partly the base level of council tax that each authority can raise. Band D is supposed to be the average across the country. However, in my authority, it is band A+, if you like. In the council area that I represent, 66% of the properties are in bands A and B. They cannot raise the same levels of funding from council tax that others can. It also means that people who are living in very modest properties are paying high levels of council tax. None of that is fair. I come back to fairness and levelling up because, if levelling up is to mean anything, it must mean—I say it again—more investment in the very areas that the Government’s White Paper identifies. Those are the same areas that are underfunded in terms of their core funding with which to deliver essential public services.
I support Amendment 63 and urge the Government to put something into practice—to do something. Even if it has to be phased in, there must be a better approach to the funding of local government than we have currently. I will put the same pressure on the Labour Front Bench that my noble friend did. If Labour gets into government, will it do fair funding? It is vital because, otherwise, a number of councils will no longer be able to sustain basic services.