I do not think it is sticking up for the food industry to suggest that people have agency over what they eat. I will give an example. I saw a very small patient—about five years old—who was very obese. I asked the mum what sort of things the child was being fed, and the answer was, “Well, Doctor, he eats lots of crisps all the time.” But there is a simple point there: where was he getting those crisps from? He was getting the crisps from the cupboard without asking, but the crisps did not get in the cupboard because the five-year-old put them there. It is a question of making sure that what is available is healthy and what is being fed to children is healthy.
I have seen even in the last few weeks patients who have low vitamin D levels, critically low vitamin B12 levels and critically low iron levels as a result of the diet that they are getting. It is not just a case of, “It’s all the Government’s fault. The state must make sure that everyone eats healthily.” People have a responsibility of their own as well. This is about working together.
There are wider policy impacts as well. The hon. Member for Chelsea and Fulham (Ben Coleman) talked about food pricing and food security. This Government want to cover Lincolnshire—the breadbasket of the UK, where a third of the country’s fruit and vegetables are produced—in glass solar panels. That is what his Government want to do, so there is a wider policy framework about food affordability. Food inflation is going up hugely under this Government, so they need to look in the mirror and see what they are doing to reduce food prices for people. We need to work together: it is a combination of what the Government can do and what the individual can do.
It is a pleasure to serve under your chairmanship, Ms Vaz. I congratulate the hon. Member for Twickenham (Munira Wilson) on securing this important debate.
Strokes are life-threatening medical emergencies that affect more than 100,000 people in the UK every year, taking over 38,000 lives and leaving many survivors with life-changing disabilities. A study in The Lancet Healthy Longevity estimated their annual cost to be £8 billion, comprising public spending on care and lost economic productivity. The number of cases is rising—in England, stroke admissions increased by 28% from 2005 to 2024—and, as the Stroke Association has said, demographic reality makes it all the more urgent for the Government to take action today to improve stroke care and reduce modifiable risk factors. As we have heard, when stroke care is delayed, the typical victim loses 1.9 million neurones for each minute they are untreated. Of course, delay is measured not just in brain cells, but in lost independence, lost potential and, all too often, lost lives.
The Government cannot just acknowledge the challenge; they must act. The previous Government designated stroke as a national priority area in the 2019 NHS long-term plan, with several commitments to improve prevention, treatment and care. We set out to increase the proportion of people receiving clot-removing thrombectomy to end their stroke, improve post-hospital stroke rehab models for patients, and enhance the Sentinel Stroke National Audit Programme. That important work was led by a network of 20 integrated stroke delivery networks, which were established in 2021, with a national service model setting out best practice. The previous Government also invested more than £57 million in mechanical thrombectomy, and by the end of 2023, 24 centres were open and delivering mechanical thrombectomy across England. Do the Government have a delivery plan to create more of those centres, or do they think there are enough?
Prior to the general election, the previous Government began work on a major conditions strategy to improve the prevention, diagnosis and treatment of six major conditions, including stroke, but rather than see it through, this Labour Government chose to take an axe to progress, pausing the scheme in August 2024 and, a year later, announcing a service framework for cardiovascular diseases in the 10-year plan. Have the Government incorporated the strategy’s findings in the 10-year plan? The plan mentions stroke just twice, and only in the context of smoking and obesity.
I am pleased that the Government have shown an interest in reducing modifiable risk factors. Prevention is always better than cure. Those categorised as obese face an elevated risk of stroke—64% higher than those of healthy weight—and one in five children leaves primary school obese. We spoke about obesity in this morning’s debate, but I did not get answers to most of my questions. I appreciate that the Minister is covering for someone this afternoon, but will he undertake to get answers not just to the questions asked in this debate, but to those asked in this morning’s?
I am encouraged to see Ministers showing an interest in furthering the previous Government’s work to tackle smoking, a habit to which one in four strokes is directly attributable, but it seems to be taking quite a long time. Just yesterday, health leaders warned that more than 120,000 young people have started smoking since the Tobacco and Vapes Bill was introduced. Will the Minister assure us that the Government will prioritise the Bill and pass it without delay?
High blood pressure remains the single biggest risk factor for strokes, and it is generally asymptomatic, which is why it is so important that tests are carried out in locations that are convenient for people. Last year, community pharmacies in England delivered more than 140,000 blood pressure checks and diagnosed nearly 11,000 cases of hypertension. As the Government complete the latest round of pharmacy negotiations, will the Minister commit to expanding that service further, so that pharmacies can detect more cases and prevent more strokes?
The Government’s delay to the NHS workforce plan is particularly concerning. We need enough doctors to train to perform thrombectomy and care for patients, and enough physios, occupational therapists, nurses, speech therapists and so on to support rehabilitation. After the Government cancelled the major conditions strategy last summer, their 10-year plan promised a service framework, as I said. Given that they have now delayed the workforce plan, the cancer plan, the neonatal and maternity plan and the HIV plan, will the Minister assure the House that they will not also delay the service framework for cardiovascular disease? We need action and not just words, so will the Minister explain what the Government have done materially to improve early stroke diagnosis since they came to office?
Stroke care is not only about medical interventions. For many survivors, recovery starts when they return home and have to re-learn to walk, speak and carry out daily tasks, so access to physiotherapy, occupational therapy, speech and language therapy and other support is vital. How do the Government plan to improve that provision, and what are they doing to provide psychological support to the families of stroke victims and victims themselves, especially in cases where there is a change of personality or emotional disturbance?
Prevention is better than cure. Work on smoking, obesity and high blood pressure are important. In the event of a stroke, every minute counts. Every minute the Government spend perfecting plans instead of putting things into action is a minute of suffering that could have been spared.
I am grateful to the Minister for answering the question and talking about universal services being available from next year. Can he confirm whether they will be 24/7 and what he means by “universal”? If someone is living in a rural area, what is the greatest distance or time they should expect to travel to get to their local thrombectomy centre?
My right hon. Friend is making an excellent speech. Does he agree that stamp duty also gums up mobility, so that people are unable to move, and if they lose their job under this Labour Government it will be more expensive for them to move to another house?
Does my right hon. Friend agree that we also see hypocrisy? An example would be Cabinet Ministers who say “Build, baby, build” while at the same time writing letters to the Mayor of London trying to block homes in their constituency.
I will be interested to hear what the Minister intends to do to un-gum the housing market. I think he will accept that it is an important part of our economy and he says that he is very keen on growth, so what will he do to un-gum it? And what does he say to those legions of tradespeople—electricians, plumbers and kitchen fitters—who are all looking to the Government to provide them with some relief in the months ahead?
The average price of a property in St Albans is £642,000 a year. Under the proposals of the hon. Lady’s party, how does she think her constituents would face paying ever more taxes, either through stamp duty land tax or the council tax reforms that she and her colleagues propose?
The National Security Adviser has spent a great deal of time visiting various Chinese entities before and after his appointment. One appointment that he does not appear very keen on taking up is with the Joint Committee on the National Security Strategy, which has requested—quite legitimately, under the Osmotherly rules—that he appears before it, but Ministers appear to be blocking that. Why does my hon. Friend think that is?
English Devolution and Community Empowerment Bill (Eleventh sitting)
It is a pleasure to serve with you in the Chair, Sir John. My hon. Friend the Member for Hamble Valley set out the view of the official Opposition during the debate last week, so I will not relitigate that in its entirety, although I am sure he will be keen for me to emphasise the sheer cross-party commitment on assets of community value.
We know about the risk to assets that are at the heart of a community, from a village pub or cricket field through to community centres and business premises. We need a means laid out in the law whereby the value they add to the local community can be retained where necessary. That was enshrined in legislation by our party when we were in government, and in general we support the direction of the current Government in taking up those principles. We will listen carefully to the debate.
English Devolution and Community Empowerment Bill (Eleventh sitting)
I sympathise with the Minister’s argument, but does she agree that there is a general weakness in the Bill in that the opportunity has not been taken to tidy up the legislation, particularly the role of parish councils and parish meetings in this context? The point has been well made that it is often through those vehicles that we see districts and others going through reorganisation already looking to enshrine the community value of these assets. It is a missed opportunity if we leave it hanging so that the convoluted but robust powers that the Minister outlined, which can take years to put into effect, remain the only available route, when there is an opportunity for an alternative structure to deal with that now.
English Devolution and Community Empowerment Bill (Eleventh sitting)
Again, the Opposition are broadly sympathetic to the Government’s direction of travel, but I will put a couple of questions to the Minister. I previously raised the issue that, in respect of local audit, there are a number of accredited accounting bodies to which professionals may belong. I have not seen a response, but I know that at the time there was some discussion about the Chartered Institute of Public Finance and Accountancy being the identifying body. I seek an assurance that the Government have given due consideration to what will happen where that qualified individual of an appropriate status belongs to another professional body that sets accounting standards, rather than CIPFA, not least because accounting is often as much an art as a science, and there are differences of opinion as to how different accounting provisions might be made.
Secondly, I would be grateful if the Minister can give some clarity to the Committee. Government amendment 237 requires that, when a penalty is imposed, the Local Audit Office must pay the sum of that penalty to the Secretary of State. Clearly, where there has been a failing in local audit, it is the specific local authority, or the general group of local authorities, that is the victim; they are the ones who have suffered a demerit or deficit as a consequence. It seems a little illogical that the penalty would be paid to the Secretary of State rather than those who have been directly affected by that failing. It would be helpful if the Minister set out how the Government will ensure that, where those failings have had an impact, and where penalties have been gathered to make some degree of remedy, it is the victims that see the benefit, rather than it essentially sitting in a Government office.
English Devolution and Community Empowerment Bill (Eleventh sitting)
Will the Minister set out the role of the section 151 officer in relation to the Local Audit Office? Primary accountability around local government finance is in the council tax fixing process. By law, it has to be balanced in-year. The audit process sits behind that, verifying that the information presented, on which that decision has been lawfully made, is true and accurate. The section 151 officer holds that legal duty in each local authority. Can she set out how the accountability that she has described, which revolves around the role of that individual, will be dealt with by the law, particularly given the role that the Secretary of State is taking on in the appointments process?
English Devolution and Community Empowerment Bill (Eleventh sitting)
I will briefly return to the question of accounting standards and how they will operate. As the Minister set out, the aim is to streamline and, broadly, to restore the Audit Commission district auditor-type system we have seen in the past, which itself had a number of issues. Clearly, when local authority councillors make their decision on fixing council tax—when local authority finance officers put that information together—they will always be mindful of the accounting standards that apply.
One of the issues is that there are a lot of different ways of approaching that. Some may use cash accounting and some will use accruals; some will use Sage and some will use Oracle. All of those have different characteristics in managing the system, and different auditors may have different views about which they prefer. Many of us will have experience of where a difference of opinion between auditors on the treatment of a transaction can have a significant impact, including by directly impacting the level of council tax that needs to be set.
I have not been able to locate a response from the Minister on the different types of accounting. Can she set out how the system will ensure sufficient flexibility to recognise legitimate professional differences between different types of accountants, authorities, businesses and systems? None of them is inherently wrong or incorrect; they just reflect different approaches to managing the finances of that local authority. Flexibility for local decision making should remain at the heart of what is supposed to be a devolution Bill.
English Devolution and Community Empowerment Bill (Eleventh sitting)
The key challenge is that, unlike any other public body, local authorities are democratically elected. They are subject to an annual process of budget fixing, where they are legally obliged to balance that budget in year. That rule does not apply to any Government Department, or NHS bodies and so on, all of which have a conversation with central Government about how overspends, capital expenditure, borrowing and so on are dealt with, in a completely different way from local authorities. Could the Minister address that, and ensure that the Committee is fully aware of how those provisions will be considered?
Local authority finance is not the most exciting subject—[Interruption.] I hear murmurs of agreement—but ensuring investment for housing, children’s social care, adult social care, education and local transport depends on us getting this right. Rather than create a system that sets local authorities up to fail, we need to have that debate and put that right straightaway. Taking into account fully the specific, unique legal and financial impositions on local authorities in this audit arrangement is critical, so that decisions can be made locally in good faith and with the relevant level of local democratic accountability.
English Devolution and Community Empowerment Bill (Eleventh sitting)
A number of these other local bodies are subject, in the Treasury’s eyes and legally, to different accounting rules. In particular, Government Departments have revenue and capital departmental expenditure limits, and the Treasury is happy to shift money between those annually: capital may be allocated to cover revenue shortfalls and so on. That is something that a local authority cannot do. Will the Minister set out how the appointment process will ensure a high degree of transparency, particularly at the local level, so that people can see the difference between bodies that are subject to the local authority regime of in-year balancing and the other local bodies that are subject to a separate regime, and why the levels of assurance and the nature of decision making may be different? I would be grateful for clarity and assurance on those points from the Minister.
English Devolution and Community Empowerment Bill (Eleventh sitting)
I am reassured to a degree by what the Minister says. I was personally involved in the setting up of the PSAA, although I do not have any direct interests in it. The market has clearly moved in that direction. My concern with bringing all these things into a central accountability stream that sits with the Secretary of State is that the legal and financial environments in which these bodies operate are quite different. If an NHS trust or a police organisation has overspent, it can ask the Secretary of State to reallocate capital for building, for example, a new police station to cover the revenue shortfall, but the local authority cannot do that.
The risk is that, if there appears to be a consistent standard, the judgments produced in respect of authorities that are operating within one legal and financial framework will be very different from those produced in respect of bodies operating within another. Given the Bill’s envisaged reorganisation of local government and the centralisation that the Minister has referred to, we need to retain a level of local clarity about what differences arise as a result of local decision making, so that council tax payers can see them, versus things that result from interactions with central Government via the Secretary of State.
English Devolution and Community Empowerment Bill (Eleventh sitting)
The section 151 officer is the person in the local authority who has whistleblower protection; they have a legal obligation to ensure that the local authority has the information that it needs when setting its budgets, and that the information is true and correct. However, disputes about the treatment of financial decision making are also common, where a section 151 officer may have a lesser degree of comfort about a risk arising from a decision.
We talked earlier about assets of community value, and there are many MPs in this room who will have campaigned for their local authority and undertaken responsibility or an intervention to preserve an asset or local amenity. That leads to a debate about whether that is a good use of taxpayers’ money. The elected folk may be of the view that it is, but a section 151 officer may say that it does not stack up in financial terms. There needs to be a process for resolving that dispute, and that will revolve around the professional standards that the Minister has just set out. It would be helpful if she could set out what process of assurance there will be following a decision, so that we can all be clear that there is an adequate pipeline of people, as she has described, to undertake those roles, and that we do not suck out all of the expertise of section 151 officers, who are the only people who can undertake them. What consultation has the Minister undertaken with accounting bodies, such as the Association of Consulting Actuaries, CIPFA and all the others, so that they can ensure that the necessary degree of influence has been exerted to ensure that the training standards and process that will emerge from this will be sufficiently robust?
English Devolution and Community Empowerment Bill (Eleventh sitting)
Will the Minister briefly set out some examples of things that are being undertaken but she feels are not adding value? We are all sympathetic, but it would be helpful to the Committee’s decision making if we understood what we are going to stop doing as a result of the decision we are being asked to take.
English Devolution and Community Empowerment Bill (Eleventh sitting)
The Minister is perhaps being a little mischievous in responding politically to what was essentially a technical question. We all recognise that there are challenges. Broadly, the audit system suffers not from a lack of regulation but from a lack of capacity. Measures such as Public Sector Audit Appointments were designed to address that, but they have not been sufficient, despite being implemented in consultation with the sector. We therefore agree that an alternative approach is required.
The Minister has been clear to the Committee that she feels that many of the requirements imposed by the current system are unnecessary. She has returned a number of times to the point about there being things that do not add value and are onerous. It would be helpful if she set out what those things are so that our colleagues in local authorities can understand what will be removed from the requirements upon them and the Committee can understand what risks, if any, that poses to the public.
English Devolution and Community Empowerment Bill (Eleventh sitting)
The treatment of the dedicated schools grant, which has a huge impact on local authority budgets, is an example of an issue that comes up regularly on the Floor of the House. It is CIPFA’s view that, because it sits within a legal ringfence that has to be balanced each year, it is a budget killer for local authorities. However, ownership of that sits with a different Government Department that takes a different view about how it should be addressed. To me, that is a good example of something that is onerous and requires a lot of work, but in practice, the Government have collectively decided that they are going to deal with it in a different way and effectively ignore the rules that they imposed on local authorities to make it go away.
The Minister keeps returning to the point that she feels that there are elements of the system that are onerous and burdens that should be alleviated. It would be helpful if she briefly set out a couple of examples for the Committee so that we can understand what she thinks we should no longer look at so that we and our council taxpayers can at least understand the risk and reward associated with it.
English Devolution and Community Empowerment Bill (Eleventh sitting)
I am sympathetic to the issue behind these amendments, although I am not convinced that this is the mechanism to address it. I will briefly explain why, and where this sits in the context of the previous debate. The Minister gave the example of the pensions audit as something that we could alleviate, but my personal experience would suggest that is a very poor example, and amendments 18 and 17 connect to it.
If we think back to the last big financial crash when the last Labour Government were in office, the local government pension scheme, which is currently overfunded, saw a huge fall in the value of its assets to the extent that it was then 30% underfunded. Local authorities across the country, which have a legal obligation to make up any such shortfall, were then faced with this question: to what extent will we have to make financial cuts to public services to bridge that gap at short notice so that, if the pension fund is falling short, council tax will bail it out? That is not something about which we could say, “You don’t really need to know about it, and you can safely ignore it.” It is something that, if it goes wrong, could be critical to the finances of that local authority.
When these amendments talk about local arrangements, I think they are seeking to enable flexibility in a local authority, for example, whose pension fund profile may be slightly different from its neighbours or outwith the norm, because it has a younger or older workforce than is typical, or because it has entered outsourcing arrangements. That flexibility would allow the local authority to have people on its audit committee who have the relevant experience to ensure that the audits and information reflect that, and that the decision making properly reflects those risks and does not unduly impact on council tax payers. Does the Minister have a good view or a strong reason as to why that element of local expertise should be disregarded, given the extremely significant financial risks associated with the example that she gave the Committee of something that she envisages the Government will stop requiring councils to do?
English Devolution and Community Empowerment Bill (Eleventh sitting)
I have a brief question for the Minister. One challenge is that most local authorities will have an arrangement, although it is not always called the audit committee; sometimes it is the finance scrutiny committee or the overview committee—there are lots of different arrangements. Could the Minister set out briefly what specific requirements, if any, she intends to impose on local authorities about who can be a member of an audit committee and what its composition is? Will it sit within the overall political balance structure that exists in all local authorities? I ask that just so that we understand where it will fit within the new arrangements.
English Devolution and Community Empowerment Bill (Eleventh sitting)
The only element where I have any disagreement with the hon. Member for Mid Dorset and North Poole is over whether the legislation needs to be implemented for local public accounts committees to happen. There have been a number of measures in this regard, and I think of the Localism Act 2011, where there was a great deal of debate about the role of the local armchair auditor and the requirement for local authorities to publish all expenditure over £500—itemised—so that people can see what is being spent day to day, as a means of bringing about transparency.
In this debate about audit committees, we have already covered the fact that there are different local arrangements. Some have everything dealt with by a single, financially focused scrutiny and overview committee, while others do it as part of a wider context or in the context of individual service areas. So there are different approaches, and it is important that that local discretion continues to exist.
I am not convinced that it is necessary to have further legislation, but it is right that we bring the matter to public attention. One weakness of the Westminster-focused Public Accounts Committee is that it does not always grasp local nuance. Home-to-school transport in rural Lincolnshire or North Yorkshire is a completely different challenge from that in Greater London, where all local authorities are, effectively, levied so that public transport in the capital is free for children going to school. Such things are difficult to capture. When we hear that North Yorkshire spends £51 million over a couple of years taking kids to school, that sounds like an extraordinarily high level of expenditure, but it is driven entirely by local circumstances; it is not the result of inefficiency or negligence on the part of decision makers. The point is well made that we have to have that really clear grasp in decision making that comes from people understanding and knowing their local place.
English Devolution and Community Empowerment Bill (Eleventh sitting)
Broadly, the Opposition agree with the Government’s direction of travel, and this seems a logical thing to do. This kind of update is periodically required. However, it would be helpful if the Minister could set out, for the benefit of transparency in Committee, what the assurance process will be around risk. To reflect on where things have gone wrong, West Somerset district council—then the smallest local authority in England—was essentially not financially viable, but it was also the planning authority for the Hinkley Point nuclear power station, so it was absolutely critical that it could do its job for the needs of national infrastructure. Its budget was essentially broken by the loss of a business rates appeal in respect of Hinkley Point, which cost its £6.5 million out of its already very small budget.
Sometimes there are risks that sit beneath what will be classified as smaller authorities, especially given our earlier debate about how reorganisation is seeing asset transfers between districts and parish and town councils as a result of the need to manage opportunities and challenges. Could the Minister therefore set out who will be accountable? Will Ministers sign this off? What is the role of the delegated legislation Committee in making these decisions? What will be the role of the Local Audit Office in deciding how risks are managed? We need to be confident that what may appear to be a low-risk environment does not produce a very nasty surprise.
English Devolution and Community Empowerment Bill (Eleventh sitting)
In many ways, the clause reinforces the concerns that I set out earlier. The Minister said that this was an area where no value was being added and that it was the Government’s intention to reduce expectations. In fact, the clause increases expectations: it requires the publication of a separate opinion on the pension fund’s accounts. As I set out earlier, the concern we all recognise is that, where there is a shortfall, the local authority is required to make up that shortfall and, where there is potentially a surplus, it may choose to reduce the pension contributions that it makes on a regular basis, as is already the case. We have seen examples across the private sector in the past when that has been significant in both negative and sometimes positive ways.
The assumptions made about the pension fund are critical to the setting of the council tax, which is a statutory process. This is not the only set of relevant accounts that must meet that same test. Local authorities have limited but varying degrees of control over the parking revenue account, housing revenue account and dedicated schools grant, but all are ringfenced for specific purposes and all can create significant financial liabilities that fall on the council tax payer in the event that something emerges within them that had not previously been considered.
Although I understand that the Minister thinks that separating out the requirement makes life easier for some parts of the Government, it can none the less create significant issues in the council tax fixing process. Will she set out the Government’s thinking about how those risks will be managed? In particular, how will the legal requirement to set an in-year balanced budget be met, and how does imposing a requirement for an additional and separate opinion, with a separate timetable, represent a reduction of the burden on the local authority?
English Devolution and Community Empowerment Bill (Eleventh sitting)
I invite the Minister to reflect that she may have inadvertently misled the Committee. Each local authority has a statutory duty in respect of its own pension fund. There are some pooling arrangements and common standards, but if a local authority in one place has chosen to invest in something that has gone down, it will have a shortfall that will not be replicated in the neighbouring authority that has invested in something else. It is not the case that there is one single scheme. Each of the individual schemes will have an impact on the local authority that employs those members; they are not part of some amorphous national scheme.
English Devolution and Community Empowerment Bill (Twelfth sitting)
We have some concerns, which are reflected in the amendments I have tabled. As we just heard, countries approach this issue in different ways. Broadly speaking, it sounds like one of the reasons why Ireland did not see an impact on the market was that what was implemented was the end of upward-only rent reviews almost in name only; there were still many other mechanisms that achieved the same outcome, even if that specific one ceased to exist.
Our concern is that we risk creating a number of complex structures for rental agreements that in practice have the same consequence, but without the benefit of upward-only rent reviews, which is that landlords’ certainty about their position in turn encourages investment in our high streets, the availability of the units we want to see, and those units not being turned into residences or repurposed for things other than business. The loss of upward-only rent reviews as part of the toolkit of available options undermines the confidence to invest in our high streets, and in turn undermines the objective, which we all share, of ensuring that they remain vibrant and successful. That is the purpose of the amendments, which I am sure we will come on to in due course. The Minister may have something to say about that, but that is the Opposition’s clear position.
English Devolution and Community Empowerment Bill (Twelfth sitting)
I want to make the same point again, but I will not go back and repeat it. We remain very concerned about the loss of freedom of contract that this represents. Clearly, this is consistent with the Government’s direction of travel. The Minister refers to protecting businesses, some businesses will benefit from this and others will lose out, including property investors who are critical to the success of our high streets and commercial sectors. They are facing rapidly rising business rates and increases in national insurance, all of which are hammering our commercial sector and resulting in a very large number of job losses. We see this as part of that picture. We encourage the Minister to think again, reflect and perhaps change direction on this matter.
English Devolution and Community Empowerment Bill (Twelfth sitting)
I will try to deal with the two main issues raised by the new clauses, in reverse order.
We all recognise that last year’s Budget was a disaster for local government. The rise in national insurance alone was a £1.5 billion net cut, but the loss of funding to support neighbourhood plans, although small in the grand scheme of things, was one of the most challenging elements. As we heard from the hon. Member for Mid Dorset and North Poole, it is at that neighbourhood level—in the locality—that the buy-in of our constituents for new homes is often first secured.
The inability to support that work any longer is particularly challenging for very small local authorities. Although they do not employ many people, so they were not as hit by the national insurance rise as the big local authorities that do social care, the town and parish councils that support those neighbourhood plans—and the district councils that support such work in the local areas—have been particularly hit by the loss of funding. Ensuring that funding is there to deliver the vision that we set out when we were in government for neighbourhood planning is really important.
New clause 5 is about the ability to deliver local elections. The Government are in a bit of a mess on this issue: the messaging on devolution is that there is no point in having elections to councils that are about to be abolished, which I think we would all agree with, but the legislation simply defers the elections for one year. That is what the laws that we have passed actually do, so as far as the law stands, all the councils set to be abolished are due to have elections on their current footprint next year unless the Government return with further legislation to cancel elections under different provisions or to defer them again. The risk highlighted by the hon. Member for Mid Dorset and North Poole remains a live one.
Multiple Ministers and two different Secretaries of State have assured us at the Dispatch Box that there will be elections, but without giving any specific commitments. In many places, in the normal cycle of events, there will be district elections. If the new mayoral authorities come into being, there may be mayoral elections. If there are not, under the current legislation, those existing counties will go to the polls next year. It would be helpful if the Minister could provide a clear assurance that the existing provisions that guarantee an additional separate grant to fund elections to take place will continue to apply, as has been established practice for a long time.
Will the Minister also tell us—or at least give us a steer—whether the Government intend to introduce further legislation to defer elections again, so they will not take place as scheduled next May in councils that are set to be abolished, or do the Government have a different intention? That may well affect how we vote on these new clauses; we oppose the deferral, delay or cancellation of elections, but we need to know the Government’s intentions so that we understand what we are voting for or against.
English Devolution and Community Empowerment Bill (Twelfth sitting)
On a point of clarification, when the process of reorganisation was embarked on, local authorities were told quite clearly, in accordance with long-established practice, “If you are due to have elections but we are going to abolish your council as a result of this process, we will not hold elections to that council again, because it is not going to exist.” However, the legislation introduced to Parliament simply delayed the elections for 12 months. All those authorities, including Surrey, which was today announced as the pathfinder, are, as a matter of law, expecting to have elections next May, but on the undertaking of Government they are not expecting to have any further elections to the existing authority again. Are the elections to the county councils that are about to be abolished going to proceed next year, or are the Government going to introduce legislation to delay them again?
English Devolution and Community Empowerment Bill (Twelfth sitting)
It is tempting to make reference to all sorts of detailed points of local government finance that we could bring up in a debate about allotments. However, I purely want to make a point about where this issue sits, which I think other Members have touched upon. The Opposition are big fans of allotments, just as everybody else is, but the local plan is the mechanism by which that should be delivered. We all know—particularly those of us, like myself, who have lots of allotments in our constituencies—that there are often waiting lists for some of the more desirable sites and also huge numbers of vacancies on others.
When allotments on their current scale were introduced in the 1950s, food was one of the biggest costs that households faced. Today, the UK has some of the cheapest food in the world, relative to household budgets. The UK and the US spend the lowest proportion of household expenditure on food in the developed world. Indeed, the proportions have reversed since the 1950s, and housing costs are now the highest factor.
One of the Opposition’s concerns about the purposes of this Bill, and about where the Planning and Infrastructure Bill was going, is that the focus on units and achieving targets will mean losing green spaces, particularly gardens and spaces outside people’s homes. When we pass this legislation, it is through the local plan that we will be able to ensure that we are not using allotments to plug a massive gap that has arisen because of those housing targets, but are instead building the types of homes that people want to live in, particularly those that include outside space. That is why, although we agree with the sentiment behind the new clause, we are not minded to support it.
English Devolution and Community Empowerment Bill (Twelfth sitting)
I beg to move, That the clause be read a Second time.
The need for this new clause has become greater as the Committee’s consideration of the Bill has continued. The original legislation and amendments from the Government have set out that new mayors will have precepting powers that will apply to non-mayoral functions. That gives rise to a suspicion, particularly in the context of the Government’s frankly dire financial situation, that such powers will be used as a means of levying, through a mayoral precept, additional resources that will be funnelled not into the priorities of local government but—the Government having set out that they see these new authorities as the local delivery agents of central Government—into the priorities of Government.
It is a long-established principle—it has been implemented for a good, long time now—that there should be some degree of constraint, and that consent should be required before a local authority seeks to proceed with a council tax rise above a certain level: 5% is the current figure. It seems to us a reasonable principle that the new mayoral authorities should be subject to the same constraint to ensure that the tax rises, which would of course be inflationary, notwithstanding the impact they would have on household budgets, would be subject to a similar process of democratic consent, rather than being something that a mayor can simply proceed with without needing to go down that route. That is the objective of the new clause, and it will be interesting to hear what the Government have to say about it.
Our key concern is that these new authorities do not become a means of addressing shortfalls in other areas of Government spending or simply backfilling some of those costs. The Minister likes to talk about a financial mess, and it is noteworthy that the Government have borrowed over £80 billion in this financial year alone already. We heard the Chancellor talking about a £22 billion black hole, which she alleged existed after 14 years of Conservative Government. I use the term “alleged” advisedly, because the Office for Budget Responsibility, which did the calculations, swiftly came back and said that it did not stand by the figure used by the Chancellor. That is £22 billion after 14 years versus £80 billion since the start of this financial year alone.
It is clear that the country’s finances are facing an exceptionally challenging time and have deteriorated exceptionally fast. Local government, in particular, has a £1.5 billion black hole that has been created purely by last year’s Budget, as a result of the national insurance rise, notwithstanding any previous challenges that may have existed. There will naturally be a temptation to see an unlimited, uncapped and unrestricted mayoral levy as a means of tapping taxpayers’ pockets further. We need to make sure that that is constrained in a proper democratic manner.
English Devolution and Community Empowerment Bill (Twelfth sitting)
I beg to move, That the clause be read a Second time.
We have spent a good deal of time debating the importance of housing and the delivery of housing targets. If we reflect on the construction industry news that came out yesterday, it is clear that there has been an absolute collapse in confidence in house building. Here in London, around 4% of the mayor’s housing target is being delivered, despite his having been allocated billions of pounds for that purpose.
English Devolution and Community Empowerment Bill (Twelfth sitting)
I think the Minister will probably be aware that the net additional new homes target that we set ourselves in the last Parliament was 1 million new homes. While we were, frustratingly, slightly below that target, we none the less delivered, in round terms, 1 million net additional new homes in this country. The collapse, as the Minister well knows, has taken place since the change of Government. That is an unfortunate reality. We know that the Budget in prospect later in the year is a significant issue of a conspicuous lack of confidence and a desperate need to get construction activity going again.
English Devolution and Community Empowerment Bill (Twelfth sitting)
My hon. Friend is absolutely right: it is desperation in action, and we can see that happening, as can the whole world. We would like to see the Government succeed—we would like to see the country succeed in developing the new homes that it needs. However, it has been a continuous theme in our contributions to debates on the Planning and Infrastructure Bill that we must ensure that the 1.5 million homes that already have planning permission in England get built, rather than focusing on tearing up the green belt and on more permissions that also do not get built.
We know that in our capital city there are more than 300,000 new homes that already have planning permission, but on which work has not started. The purpose of the new clause is to ensure, just as we have sought to in the past in respect of private sector developers where there is a failure, that where a local authority or a mayor is in charge of a development, they are required to build it out in good time. That is so that we do not see a repeat of the situation where well-intentioned changes to the planning system simply result in more unbuilt permissions, while people who need homes do not have access to them, because that is not what is being delivered.
The focus of the new clause is to ensure that the system does what it is intended to and actually builds the homes, as opposed to churning out more planning permissions. Given the Government’s desperate need to move somewhere in the direction of achieving their 1.5 million target, I am sure the Minister will welcome the new clause and ensure that the Government support it.
English Devolution and Community Empowerment Bill (Twelfth sitting)
Many interpretations can be placed on the facts, but it is very clear if we look at the numbers that Government borrowing costs are now significantly higher even than under Liz Truss. It has been a pretty disastrous period for Government finances. If we are to see the measures to which the Minister has just referred succeed, there must be some imperative around building. We cannot simply see a tranche of mayors granting permissions, assembling sites and failing to deliver in the way that Mayor Khan has in London.
English Devolution and Community Empowerment Bill (Twelfth sitting)
It is a nice try by the hon. Member, but I think we know that there have been areas of deregulation where there is a high degree of consensus. In particular, we know that one of the reasons why some of those 1.5 million homes have not been developed is that, after local authorities have granted consent, delays are created by, for example, waiting for permission from the Environment Agency to proceed. There are elements of deregulation that I think we all support, and we can see how they would be of benefit, but where we have mayors such as the Mayor of London who are just abjectly failing, we need to make sure that there is a degree of compulsion so that the homes that our capital city and our country need are delivered.
Just as we would like to see that level of compulsion apply to private sector developers, who can be as guilty of this as Government—they might be land banking or looking at those permissions not as an opportunity to create homes, but simply as a means of creating a tradeable asset—we need a degree of imperative to hold the feet of those mayors to the fire to ensure that the new homes are delivered. I hope the spirit of the Government’s response signals their support for this amendment, which I will press to a vote.
Question put, That the clause be read a Second time.