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Clause 57

Transfer of functions relating to boundary change
Question proposed, That the clause stand part of the Bill.
The Chairman: With this it will be convenient to discuss new clause 4—Amalgamation of one or more local authorities—
‘(1) One or more principal councils may request the Local Government Boundary Commission for England to advise, no later than a date specified in the request, on proposals for the amalgamation of the relevant principal councils.
(2) The Local Government Boundary Commission for England shall provide the advice requested.
(3) Where they provide that advice, the Local Government Boundary Commission for England must also do any of the following that they think appropriate—
(a) recommend that the Secretary of State implements the proposal without modification;
(b) recommend that he does not implement it.
(4) Any principal council submitting a proposal for amalgamation must if requested by the Local Government Boundary Commission for England by such date as they may specify with any information that the Local Government Boundary Commission for England may reasonably require in connection with its functions under this Clause.
Mr. Goodman: Unlike many of the clauses being considered this afternoon, new clause 4 concerns a request to the Local Government Boundary Commission to advise on proposals for the amalgamation of relevant principal councils. The request does not flow from the Secretary of State, but comes up from the bottom, the councils themselves, which is why we thought that it was worth tabling the new clause. It is a relatively simple measure, and I commend it to the Committee.
Julia Goldsworthy: We welcome the transfer of functions relating to boundary changes from the Electoral Commission’s boundary committee to the Local Government Boundary Commission. Those are two different jobs and it is important that they are separated. New clause 4 is self-explanatory, and we wish to see a bottom-up process. We welcome variety in local government, and acknowledge that some places will have different set-ups that will be more appropriate for them than others would be. It is important that any review of the boundaries of local government, or any amalgamation of authorities, should be driven by what people want on the ground, rather than by a centralised process. If the new clause is aimed at achieving that, we will be happy to support it.
Mr. Philip Dunne (Ludlow) (Con): It is a pleasure to serve under your chairmanship, Mr. Illsley. It is the first time that I have had the opportunity to address the Committee, but I will be brief. I wish to emphasise that the new clause also stands in my name. I draw that to the Committee’s attention because I represent a constituency that has just gone through a transition from a two-tier structure to a unitary tier.
In the process of allocating the new unitary ward boundaries, in one part of my constituency we found ourselves in the extraordinary position of not having a single advocate for a particular two-member division that had been proposed. The proposal appeared from nowhere and was imposed by the Electoral Commission on the communities of Church Stretton and Craven Arms in my constituency. It is one of the relatively few two-member wards in my constituency, and within the county. Those two communities have very little in common. They are united by the A49, which is the only Highways Agency trunk road that passes through the constituency. They are seven miles apart.
I have been going on at some length and you have been very indulgent in allowing me do so, Mr. Illsley. However, that example lends emphasis and support to the purpose of the new clause: that if areas are going through the fundamental change of a reorganisation of structure, the views of the people on the ground should carry rather more weight than the views of the bureaucratic organisation many miles away, probably in London, seeking to impose some sort of arithmetic calculation to the considerable distress of the local people affected by it. So I encourage the Minister to consider accepting the new clause when she sums up.
The Chairman: The Chairman has been a little bit indulgent because he recalls doing his geography A-level field course in Church Stretton. He rises simply to explain to the Committee that we are debating new clause 4 with clause 57 because the new clause fits into that part of the Bill. We will not take a vote on new clause 4 until we take votes on the new clauses.
Sarah McCarthy-Fry: The Government broadly support the principles behind the new clause. We agree that it is right that it should be open to local authorities to initiate reviews of their boundaries and, if they consider it appropriate, mergers with neighbouring councils. However, we legislated for such a process in the Local Government and Public Involvement in Health Act 2007. Section 8 of the 2007 Act, as amended by the Bill to include reference to the new Boundary Commission, enables any local authority to make a request to the Boundary Commission to conduct a boundary review. Such a review can consider altering local government boundaries, and abolishing or creating local government areas. It therefore provides a mechanism for principal councils to request a review to consider whether two or more local authorities should be amalgamated. The 2007 Act also enables a review to be instigated by a request from the Secretary of State, or on the initiative of the boundary committee.
Clause 57 provides that those functions of the boundary committee will be transferred to the new Local Government Boundary Commission. The new clause is unnecessary as there is already provision to enable councils to make requests for such reviews. In addition, the 2007 Act sets out statutory criteria which the Boundary Commission will have to have regard to when considering any boundary change. These are the need to secure effective and convenient local government, and the need to reflect the identities and interests of local communities. Those are important requirements when any boundary change is being considered.
Question put and agreed to.
Clause 57 accordingly ordered to stand part of the Bill.
Clauses 58 to 61 ordered to stand part of the Bill.
Schedule 3 agreed to.
Clauses 62 to 64 ordered to stand part of the Bill.
Schedule 4 agreed to.
Clause 65 ordered to stand part of the Bill.

Clause 66

Local authority economic assessment
2.30 pm
Mr. Goodman: I beg to move amendment 60, in clause 66, page 49, line 13, leave out ‘must’ and insert ‘may’.
To address amendment 60 I must say a word or two in introduction to part 4 of the Bill, since neither Minister has risen to her feet to do so. We are now approaching the heart of the Bill. The clause on local authority economic assessment will provide space for many of the arguments that you have already heard, Mr. Illsley, I am afraid, in relation to other parts of the Bill, in particular about the first three sets of duties.
What members of the Committee see before them is a proposal that a
“principal local authority in England must”—
note, “must”—
“prepare an assessment of the economic conditions of its area.”
In subsection (2) it may revise the assessment
“or any part of it...at any time”.
That provision was introduced presumably in case subsection (1) proves in practice to be even more inflexible than the clause looks as a whole.
Let us pause for a moment and look at the whole business of economic assessment. Obviously, any reasonably sized local authority worth its salt will have an eye to the economic conditions of its area. In our area, Wycombe district council, which is one of the larger district councils in England, has all sorts of data available to it about the economic conditions in the area as a whole and in the Thames valley—the information is easily accessible—and it makes assessments of the information that is in front of it. However, the first question that the clause and its first two subsections give rise to is, as ever, why that has to be on the statute book. We have asked the question so many times that I shall not repeat it at length. However, I will ask a variant of it. Why is it that Ministers believe that it is important to put an economic assessment—only—on the statute book?
Any local council worth its salt, such as Wycombe district council, does not only prepare economic statistics; it also prepares social, housing and education statistics and assessments. If one burrows through my local council’s website, one can find child poverty statistics. As it is a feature of this clause, I am curious to know why so much stress is placed on economic assessments of the workings of the economy and the issue of prosperity only. Far be it from any member of the Conservative party to take a view that seems sceptical of business—we are not doing that at all—but it is curious that the Government have not thought fit to put a social, environmental or sustainability assessment in the Bill, given that they have thought fit to include an economic assessment.
There are always questions about the balance between growth and the environment, between standard of living and quality of life and how the two interact. The Minister will be aware that Opposition parties have received representations arguing that in this Bill the Government have become over-focused on growth. When the Bill was drawn up, I do not know whether anyone anticipated the promotion of Lord Mandelson to First Secretary of State and his Department’s subsequent swallowing-up of whole other areas of Government, but there seems to be a case for arguing that the Government have put their eggs very strongly in the basket of economic, rather than other forms of assessment. That is a curiosity.
That is the background. If hon. Members cast their eye down the clause, they will see multiple instances of the word “must”—I have highlighted the word five times in my copy, and the clause even starts with a “must”—hence amendment 60. It is an amendment, Mr. Illsley, of a type with which you will be familiar. A moment ago I said that we have no objection to a local authority carrying out economic assessments—how could we? If this clause must be on the statute book, we would prefer to take “must” out and insert the word “may”.
I obviously cannot speak to the amendment that was tabled by a Member who was going to be on the Committee, but no longer is; perhaps the Whips got him and bound him in a dark cupboard.
Mr. Dunne: Or a lift.
Mr. Goodman: Indeed. Amendment 60, as ever, seeks to tone down the element of compulsion in this clause by inserting “may” instead of “must”. That would allow local authorities the freedom to conduct economic local area assessments if they so wish. Yet again, we cannot see why it is necessary to include such a restrictive term in the statute book.
Julia Goldsworthy: On local authority economic assessments, in part 4 of the Bill, it is understandable that during difficult economic times the priority of the Government and local authorities is to focus on understanding the nature of the problem and how it may best be resolved. I share some of the concerns raised by the hon. Member for Wycombe, in particular the reason for framing this measure as a requirement on all local authorities. Most local authorities already have a sustainability strategy, and one would hope that some information might inform that. I wonder to what extent this provision will underline work that already takes place.
The key thing about assessments is that they should inform future actions; councils should not be allowed simply to tick a box stating that they have done one. My concern is about the next stage in the process. If the Government think that the economic assessment is important, surely the next stage is just as important, but the Bill does not really contain anything about that.
I also have some concerns—the Conservatives’ amendments highlight these—about the idea that economic assessments must stick rigidly to the boundaries of a local authority, even thought they might bear no relation to the boundaries of economic experience. Some principal authorities might find that their economic circumstances are very similar to those of a neighbouring authority, but within local authorities there might be very different circumstances. It might be difficult to reflect that in a single assessment. For example, I imagine that the economic assessment of the council of the Isles of Scilly would be very similar to that of west Cornwall, but the clause would make it impossible for the council to produce a joint economic assessment with west Cornwall. It requires the whole of Cornwall to conduct one assessment and the Isles of Scilly to conduct another. There is a danger of both duplication and of missing out some of the variations within a local authority, because the clause is so prescriptive in focusing on an economic assessment across a single local authority area.
 
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