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My Lords, I thank the Minister for the opportunity to ask questions on this Statement. On these Benches, several of us have run unitary councils. We recognise the potential for improved efficiencies and better delivery for residents. However, that must be done on the basis of genuine communities and geographies, at a scale capable of delivering meaningful efficiencies and with the true consent of residents.
The Government set out clear principles at the beginning of this process: a scale of around half a million people, respect for existing boundaries and local consent. Yet looking at the proposals before us today, it is difficult to conclude that those principles have been applied in practice, with populations ranging from nearly 700,000 down to 170,000, the breaking up of existing district councils, and a lack of local support and consent.
Rather, the common thread that seems to run through the proposals is a focus on the needs of largely Labour-run city councils to the detriment of the rest of those counties. The Government have accepted the proposals of Leicester, Lincoln, Nottingham, Oxford, Plymouth and Exeter, among others, despite unanimous opposition from the remaining councils in those areas. Is this just about rescuing badly run Labour councils and facilitating cities shifting their housebuilding to the neighbouring green fields?
I highlight Devon, where the expansion of Exeter and Plymouth is necessitating the break-up of several district councils and will leave what can best be described as an orphan Devon coast and countryside council. This will be a unitary for a population of only 260,000 but spread over a vast rural area, stretching from Kingsbridge on the north coast to Sidmouth on the south coast—a journey of two hours or so by car, and a similar journey from east to west. This is setting up a council to fail. The situation is similar in Leicestershire, Lincolnshire, Oxfordshire and Nottinghamshire. As my honourable friend in the other place, the shadow Secretary of State, said, this appears to be gerrymandering for political benefit, not delivering for residents.
Ministers have repeatedly stated that councils should meet the standards of transparency, consultation, good governance and sound decision-making. Yet many communities and councils are asking themselves, have the Government applied those standards to themselves in reaching these decisions?
Having run a unitary council with a population of just under 300,000, I know that scale truly matters in key services such as adults’ and children’s social care and services such as highways, which will represent nearly 80% of the expenditure of these new unitary councils. We succeeded because we were well-run, but it was a struggle. No doubt my noble friend Lady Scott will tell Members here about the success of Wiltshire Council, which had the benefit of being substantially larger.
Breaking up counties into smaller units of 300,000 or less will cause significant dis-synergies, particularly following government funding cuts for many councils. How many more councils does the Minister expect will require exceptional financial support as a result of these changes? And that is before the impact of the disruption, as councillors and officers focus on the uphill of reorganisation, exacerbated by the break-up of district councils, rather than doing the day job of focusing on delivering for their residents.
It is particularly striking that these concerns are not confined to this side of the House. In the other place, Liberal Democrat Members have complained about things being “done to” and not “done with”. Even Labour Members themselves have objected to decisions affecting their own areas. Others have questioned why coherent communities were being split, why some selected proposals appeared not to meet the Government’s own criteria and why areas with such strong local identities are being carved up to fit the new structures.
Devolution should be about empowering local communities, not imposing structures from Whitehall. Reorganisation should be a means to an end, not an end in itself. If local government reform is to command public confidence, at the very least it should be transparent, consistent and demonstrably fair.
Can the Minister therefore explain why the Government departed from their original principles on population size, retaining boundaries and financial sustainability? What objective criteria were applied when choosing between competing local proposals? Why were proposals that split established communities or transferred areas into expanded city authorities preferred over alternatives? Have the Government truly examined the impact on the delivery and viability of those essential social care services that support some of the most vulnerable in our communities? What steps will the Government now take to reassure communities that these decisions have been taken in the interests of effective local government rather than political convenience? Can the Minister assure the House that these proposals are financially viable and will not result in the need for more exceptional financial support? Lastly, what will be the impact of the almost inevitable issuance of JRs?
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My Lords, there are some deeply worrying elements in the Statement. First, it was issued on the final day before the Commons Recess. A momentous decision of that purport should be the subject of detailed scrutiny but that has been deliberately avoided. Secondly, the announcement has been made by a Minister who then resigned from the Government—it was his final throw of the dice. So this announcement is discredited before the details are even considered.
I trust that the new Minister for Local Government will make it her first task to reconsider the implications of these decisions. It is imperative that Angela Rayner does so, because the decisions that have been announced fail to meet the test of enhancing devolution and democracy or of creating new local authorities that will be financially sustainable. The claim is that creating unitary authorities will put an end to two-tier councils, but, at the same time, the Government intend to create an additional tier of local governance in the shape of mayoral authorities, so two tiers will remain.
The decisions that the Minister made about the boundaries are controversial. Some have described them as gerrymandering, and there seems to be no other explanation in some instances. For example, Devon, which has already been referenced by the noble Lord, Lord Jamieson, has been divided into four authorities—three are relatively small councils in geographical terms, based on Plymouth, Exeter and Torbay, each with a population of around 300,000, and the fourth is the rest of rural Devon, with a scattered rural population with no obvious centre—but Gloucestershire is to have one council serving a population of 670,000 people. Can the Minister explain how this huge range of population sizes is consistent with the parameters that were set by the Government or with creating genuine local democracy?