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Friday Volume 505 5 February 2010 No. 38 HOUSE OF COMMONS OFFICIAL REPORT PARLIAMENTARY DEBATES (HANSARD) Friday 5 February 2010 £5·00 © Parliamentary Copyright House of Commons 2010 This publication may be reproduced under the terms of the Parliamentary Click-Use Licence, available online through the Office of Public Sector Information website at www.opsi.gov.uk/click-use/ Enquiries to the Office of Public Sector Information, Kew, Richmond, Surrey TW9 4DU; e-mail: [email protected] 517 5 FEBRUARY 2010 Local Authorities (Overview and 518 Scrutiny) Bill I recognise the work of the Local Government House of Commons Association in providing extremely valuable guidance on scrutiny processes and in submitting a detailed response Friday 5 February 2010 to the Bill. I express my gratitude for the assistance provided by the Centre for Public Scrutiny, both in terms of the professional expertise and advice generously The House met at half-past Nine o’clock made available to me and the wealth of excellent material available on the centre’s website. Finally, I commend the PRAYERS staff of the Library for their excellent research paper on the Bill. The Chairman of Ways and Means took the Chair as Deputy Speaker (Standing Order No. 3). Before coming to the Bill and the increase in powers that it proposes, I want to say a few words more Mr. David Chaytor (Bury, North) (Lab): I beg to generally about local democracy and the power and role move, That the House sit in private. of scrutiny. For much of the second half of the last century, local councils saw their powers to influence the Question put forthwith (Standing Order. No. 163). growth, shape and future development of the communities Question negatived. that they serve gradually weakened. Many of the services that councils had traditionally provided directly were BILL PRESENTED centralised or privatised. Councils became increasingly dependent on central Government for their financial base. They were subject to intense political and financial TERRORIST ASSET-FREEZING (TEMPORARY pressures, locally and nationally, as the demand for PROVISIONS)BILL quality public services grew, but taxpayers’ willingness Presentation and First Reading (Standing Order No. 57) to pay for them declined. As a result, the provision of Mr. Chancellor of the Exchequer, supported by the services was gradually fragmented; the quality of many Prime Minister, Secretary David Miliband, Mr. Secretary services declined; the lines of accountability and Straw, Secretary Alan Johnson, Mr. Secretary Denham, responsibility became confused; and the perception grew Mr. Liam Byrne, Mr. Stephen Timms, Ian Pearson and that the provider of the service was frequently more Sarah McCarthy-Fry, presented a Bill to make provision important than the consumer. for the temporary validity of certain Orders in Council Not surprisingly, the electorate gradually also became imposing financial restrictions on, and in relation to, confused as to who was responsible, and with that persons suspected of involvement in terrorist activity; growing confusion about the lines of accountability and for connected purposes. came increasing dissatisfaction with the quality of service. Bill read the First time; to be read a Second time Voters were unsure as to who was to blame when things tomorrow, and to be printed (Bill 62) with explanatory went wrong, and they lost confidence in the capacity of notes (Bill 62-EN). the council to put things right. Of course, as we all recognise, that was gradually reflected in declining levels Local Authorities (Overview and of interest and turnout at local elections. Scrutiny) Bill The last 10 years have given all local authorities a Second Reading much more secure financial base, a much clearer view of their role and the capacity to invest heavily to improve 9.34 am local services and infrastructure. Yet the levels of public engagement with local democracy and public support Mr. David Chaytor (Bury, North) (Lab): I beg to for local authorities are still frequently far too low. That move, That the Bill be now read a Second time. is in spite of gradual improvements in performance, as My Bill will strengthen the scrutiny powers already evidenced by the inspection reports, and the gradual available to local authorities, and extend the range of increase in the number of four-star councils that are public service providers that can be subject to the scrutiny now performing at a very high level. process. It is designed to improve accountability in There will always be differences between the main order to improve outcomes and thereby drive up the parties about the structure and financing of local standards of local public services. government. However, the good news is that there is I express my thanks to all those who have helped with now a stronger, cross-party consensus about the need the drafting and preparation of the Bill. I thank those for greater accountability, greater transparency and more local councillors and officials in both central and local decentralisation of decision making than has existed for government who have given me the benefit of their many years. That was evident in the debate on the local experience of the way in which scrutiny is working now. government finance settlement earlier this week. All the I thank all those people who have written to me about major parties now agree that if local democracy is to be the Bill with very constructive suggestions, demonstrating revived, the direction of travel has to be towards further the increasing interest of local authorities in the scrutiny decentralisation, increasing localism and increasing process and the seriousness with which they take it. personalisation of public services. There is also growing Hundreds of people from across the country have written recognition of the importance of local public service letters or sent e-mails urging me to adopt their preferred providers working in partnership on common objectives. Bill, and I hope that they will understand why it has not Isolation and fragmentation of the delivery of services been possible for me to reply to them individually. I is ineffective and highly expensive, which is where the hope that they appreciate the reasons for my choice scrutiny function of local authorities becomes of central of Bill. importance. 519 Local Authorities (Overview and 5 FEBRUARY 2010 Local Authorities (Overview and 520 Scrutiny) Bill Scrutiny) Bill [Mr. David Chaytor] Councils must be given the powers that they need to act decisively and effectively on behalf of their citizens, Today, people are used to accessing high-quality services and the powers and capacity to scrutinise, influence and from the private sector 24 hours a day, seven days a shape all public services, including those delivered by week. Expectations of high-quality services tailored to other providers, which may be in the private sector or individual need, delivered at a time convenient for the the third sector, or that may be agents of central service user, are rising continually. People also want Government. That is a new, much stronger role for local more from the public sector—from central and local government, placing it firmly at the centre of decision government. There is growing demand for more information making in the community. It is central to the long-term on local services. I must refer to an enormously important process of rebuilding public confidence in the democratic development: the launch of the data.gov.uk website, process overall. which enables everyone in Britain to access a potentially I want to say a word about the role of scrutiny and infinite amount of information on all local public services. how it has developed in recent years. Although the It is the beginning of a remarkable transformation in separation of local authorities’ powers into executive the availability of information to the public. There is and scrutiny functions has been in place for barely also demand for greater consultation on how local 10 years, enormous progress has been made in many services are provided, and for greater public involvement local authorities, where the power of scrutiny is clearly in the shape of those services. There are also demands understood. In some parts of the country, oversight and for action and proper complaints systems when the scrutiny panels have started to shape the local delivery public feel that things do not work properly. of health and crime prevention policies. In the more As almost all public services are delivered locally, the successful authorities, the panels have already led to an efficiency and effectiveness of local government is crucial, increase in public engagement and a greater recognition and in recent years much has already been done to by service providers of the need to respond to public bring that about. The past decade has seen many concerns. improvements. We now have greater financial stability, It would be naive to assume that every local authority with three-year financial settlements enabling local has fully grasped the potential of the new scrutiny authorities to plan ahead in a more stable manner. function, but I think that it is generally recognised that There is a reduction in the number of central targets understanding is increasing, and the number of people and inspection regimes, and associated greater flexibility calling for a return to the old system is dramatically locally. There is greater financial flexibility through a reducing. Now is the time to move forward and ensure more prudential