Contribution
My Lords, uncharacteristically, I support the noble Baroness, Lady Bennett, and the noble Lord, Lord Bassam.
Clause 57 and Schedule 26 should play no part in the Bill because the claim that larger units of local government are more cost-effective has been thoroughly debunked. We will just end up with larger, more expensive units that deny the pattern of life that people live. The 500,000 argument was comprehensively debunked by the Blair Government in 2006 with a seminal document that is still available on their website. More recently, the claim that this current round of unitisation will save money was initially made by the County Councils Network, citing evidence dating from 2020. Last year, the people who wrote the report said, “Actually, we made a mistake and there are no more savings to be had”. The savings that were promulgated in 2020 had already been made.
Bigger is no longer better. A forced reorganisation across the entirety of this country is likely to crystallise at least £1 billion-worth of unaccounted for pension strain costs for those who would be entitled to retire on a full pension up to 10 years early, having been forced out on grounds of efficiency. There is special meaning to those words. However, those billion pounds or so have not been taken into account, and it is local people who will pick up the tab. Through the Bill, we will end up with more expensive additional layers to have mayors who can raise taxes on things for which they are not even responsible.
I do not intend to relitigate the arguments I made on Monday, but there is no clarity on where the new town and parish councils will sit. This is unfinished business that we will need to revisit on Report. We must ask: is there even capacity in national government, let alone local government, for this reorganisation at a time when councils should be in the van of building homes, growing the economy and picking up the pieces for those who have fallen on hard times?
I ought to alight for a moment on the consequences of council tax equalisation in a territory, none of which has been considered at all. I am a veteran of several rounds of local government reorganisation over many years. In the Local Government and Public Involvement in Health Act 2007, there were some statutory tests, including on value for money, equity between areas and consistency of electoral quotient. There needs to be a broad cross-section of support, but none of this is included in the Bill. The requirement for consent has been abandoned—this is something that is going to be done to people.
Last night I was at a dinner in London and people told me how, 20 years ago, they travelled from all parts of the country to go to Norwich to celebrate their octocentenary; it was 800 years. Among them were lord mayors, honorary aldermen, the sheriffs and the reeves. The Bill is silent on how this important civic part of our nation is to be treated. In an unthinking reorganisation, the civic life of our nation will be vandalised. In future, there will be no more trips to Norwich, or anywhere else for that matter, for those people who are part of the social grease of the way our nation works.
I have heard it said that this will make local government simpler and more straightforward. As we have learned over many days in Committee, however, it will cost more, there will be plenty more expensive layers and there will be more complication. Last week we discovered for the first time that, among the 40 fire authorities in this country, there will be 10 different structural arrangements. What a missed opportunity this is. Rather than reorganising the deckchairs in local government, perhaps we could do something about simplification. But no: there will be less accountability and it will be more impenetrable.
Ultimately, families, businesses and the economy outside the M25 will suffer while London and the mets get to sit this one out. There is no equity there at all. People will be paying more for less, having powers taken further away from them. Nobody wants it.