Lord in Waiting/Government Whip (Lord Wilson of Sedgefield) (Lab)

My Lords, I thank the noble Lord, Lord Jamieson, for the amendments on precepts. The precept reforms which Amendment 77 seeks to prevent will enable mayors to levy a precept across the full range of an authority’s functions, giving them greater freedom in how they resource and deliver their priorities. I remind noble Lords that mayors have had the statutory ability to issue a precept since 2017, when it was introduced by the then Government. Importantly, it remains entirely for each mayor to decide whether to make use of it. Under the current framework, any precept that is raised can be spent only on designated mayoral functions, rather than on the full suite of an authority’s responsibilities. This restriction is both arbitrary and unhelpful in practice. It could, for instance, allow investment in transport but not in skills related initiatives. Our intention is to equip mayors with the means to address barriers to growth and improve outcomes for their communities. To do this effectively, they must be able to allocate resources across all functions of the authority, not just a narrow subset. Amendment 78 would automatically apply council tax referendum principles to strategic authorities. This would unnecessarily restrict mayors’ ability to determine how best to deliver for their residents and local economies. The Secretary of State already has the power to set referendum principles for strategic authorities, if needed. In practice, mayoral precepts are relatively small. If their increases were capped in the same way as council tax, the sums involved would be minimal in most areas, limiting their usefulness for supporting local priorities. The Government have been clear that any rises in the mayoral precept should remain fair and proportionate. However, imposing the same limits as on councils would reduce local flexibility. This approach cuts across the spirit of the Bill and of devolution more broadly. Our aim is to empower mayors to invest in their communities, strengthen public services and support economic growth. The Government already consult annually on the local government finance settlement, which is the proper mechanism for considering these issues for authorities and taxpayers. Turning to Amendment 79, as I have noted, the ability to issue a mayoral precept has existed in law since 2017, when it was introduced by the then Government. Whether to introduce a precept is a local decision and would need to be approved through the budget voting process within each combined authority or combined county authority. This includes setting out the precept amount and what it is intended to fund. It is also worth pointing to the council tax billing requirements. Under the Council Tax (Demand Notices) (England) Regulations 2011, the information supplied with bills must include details of each local authority’s gross expenditure and its council tax requirement. It must also include an explanation of the reasons for the difference between the amounts. Where a mayoral combined or combined county authority issues a precept, it is covered by these provisions. This ensures residents can see both the amount of the mayoral precept and what it is funding. This information is also published on websites and if the taxpayer requires it, they can have it in a hard copy. As such, the system already builds in a statutory requirement for transparency and justification. For the reasons I have set out, the Government cannot support the amendments in this group, and I ask noble Lords not to press them.