The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government (Baroness Taylor of Stevenage) (Lab)

My Lords, I thank the noble Baroness, Lady Bennett of Manor Castle, and my noble friend Lord Bassam of Brighton for addressing the local government reorganisation measures in the Bill. I thank the noble Baroness, Lady Jones, for speaking on behalf of the noble Baroness, Lady Bennett. The noble Baroness, Lady Bennett, opposes Clause 57 and Schedule 26 standing part of the Bill. Reorganisation is a crucial part of the Government’s mission to fix the foundations of local government, creating unitary councils that can be sustainable for the future and deliver the high-quality services that all residents deserve. The Bill amends the existing legislation to enable the Secretary of State to direct areas to submit proposals to reorganise. We are committed to working in partnership with local areas and are already doing so on this current round of reorganisation. All two-tier areas that were invited in February 2025 have now submitted proposals for reorganisation, which have either been consulted on or are now subject to consultation, because they acknowledge that the status quo is not feasible or sustainable. Therefore, this power would only ever be used in the future, where areas had failed to make progress following an invitation. The new merging provisions enable existing unitary councils that believe structural change will be beneficial to submit proposals for reorganisation. This aligns the process for reorganising single-tier areas with the current process for reorganising two-tier areas. With devolution and local government reorganisation progressing concurrently across the country, mechanisms are needed to ensure that these reforms work in harmony. The ability to convert a combined county authority into a combined authority is a common-sense and necessary measure. Without it, there would be no streamlined route to ensure that the existing combined and combined county authorities remain intact once their constituent authorities implement reorganisation. The ability to abolish a combined authority or a combined county authority could be used only in very limited situations. It ensures that, if a reorganisation proposal would render a strategic authority obsolete, the proposal can be implemented and the strategic authority abolished as necessary. Any such proposal requiring the use of the abolition power would need to consider how it would impact future devolution in the area, as the Government’s reorganisation criteria set out. This ensures that these areas will not be left without a viable pathway to devolution. The noble Baroness mentioned the Government’s approach to funding. This week we publish the local government finance settlement, which has restructured local government funding to ensure that the areas that need it get the most funding. We have put more than £5.6 billion of new grant funding over the next three years into local government. We know that unitarisation can unlock significant savings. Unitary councils reduce duplication, cut waste, improve services and give better value. Of course, exact savings from each proposal will vary from place to place, depending on the proposals implemented. The noble Baroness also mentioned casework. I take her point and I know the bit about growing daffodils out in the garden—I still often get stopped when I am doing my garden and I am not even a councillor now. Casework support varies from council to council, but it is perfectly possible to provide support for casework at any level of local government. I know that many councils do this extremely well—I hope that those that are not so good will learn from the best. I turn to Amendment 196EC, tabled by my noble friend Lord Bassam. I shall correct myself, because I did not thank all noble Lords who spoke in the debate, as I should have done at the beginning, so my apologies. My noble friend’s amendment seeks to introduce criteria that the Secretary of State must consider when taking a decision on the merger of existing unitary councils. The new merging provisions set out in this Bill enable existing unitary councils that believe structural change will be beneficial to submit proposals for reorganisation. This aligns the process for reorganising single-tier areas with the current process for reorganising two-tier areas. I reassure my noble friend that having regard to the size, geography, public services and local identity of an area is already embedded in our approach and decision-making when it comes to reorganisation. This is demonstrated by the statutory guidance that we have issued to areas that have been invited to prepare proposals for local government reorganisation. My noble friend mentioned the size of areas. I point out that the invitation letter to two-tier areas in February made it very clear that the aim for new councils to have a population of 500,000 or more is a guiding principle. Instead of presenting a top-down solution for each area, our starting point is to support and empower local leaders and respect their knowledge, expertise and insight. This approach is in line with the new partnership between government and local government. In discussions with individual councils, with parliamentarians and in interviews given throughout the process, the Government have further reinforced that position to aid the local discussions. I have seen a huge variation in the proposals that have come forward in terms of size. People have taken that as guidance and taken it very seriously. Yesterday, we had a debate on the new authority that has been set up, Cumbria, which has a population of much less than 500,000, because that was appropriate for that area. Furthermore, the Local Government and Public Involvement in Health Act 2007 already requires that the Secretary of State may invite or direct a relevant principal authority to make a proposal for the merger of single tiers of local government only where it would be in “the interests of effective and convenient local government”. The 2007 Act also requires that affected local areas must be consulted before a proposal for local government reorganisation can be implemented. This gives local residents the opportunity to voice their opinions on the criteria outlined by the noble Lord in his amendment. Next to my council is a council called North Hertfordshire, which includes four towns. The noble Viscount, Lord Trenchard, will know these towns very well—Hitchin, Letchworth, Baldock and Royston. These places have not ceased to exist because their council is called North Herts. The noble Baroness mentioned Wiltshire, which I know she feels was greatly strengthened by the introduction of unitary government. Wiltshire has survived in spite of its unitary status and I am sure that Hertfordshire will equally survive long into the future, no matter what happens with local government. My noble friend’s questions can all be answered by the criteria that local authorities have been asked to respond to as part of the invitation process, including issues of local identity and cultural and historic importance. Although I appreciate the spirit in which my noble friend has tabled this amendment, it is the Government’s view that placing further legislative conditions on the merger of unitary councils would be duplicative and unnecessary. For these reasons, I hope that noble Lords feel able not to press their amendments.