Localism Bill

Executive Mayor : Tony Egginton Managing Director : Ruth Marlow

Localism Bill

An Overview

Select Commission 3

22 March 2011


What the government says:• Potential to achieve a substantial and lasting

shift in power away from central Government and towards local people– New freedoms and flexibilities for local Government– New rights and powers for communities and

individuals– Reforms to make the planning system more

democratic and more effective– Reforms to ensure decisions about housing are taken

locally


New freedoms and flexibilities for local Government

• What the Government says:– Government committed to passing new powers

and freedoms to town halls– Powers should be exercised at the lowest

practical level – close to the people affected by the decisions

– LA’s can do their jobs best when they have genuine freedom to respond to what local people want


What the Localism Bill contains:

• General Power of Competence– The capacity for LA’s to do anything that an

individual can do that is not specifically banned by other laws

• Abolition of the Standards Board– Introduction of a criminal offence for

councillors who deliberately withhold or misrepresent a personal interest


• Clarification of rules of predetermination– Make it clearer that it is proper for councillors to

play an active part in local discussions– People can elect a councillor confident in the

knowledge that they can act on issues they care about and have campaigned on

• Directly Elected Mayors– Give more cities the opportunity to decide

whether they want a mayor– Make council leaders of 12 cities “Shadow

Mayors”


New rights and powers for communities

• What the Government says:– Government alone doesn’t make great places

to live, people do– Voluntary and community groups often find

their potential contribution neglected– The Government wants to pass new rights

direct to communities and individuals to make it easier to get things done


What the Localism Bill contains• Community right to challenge

– The right of voluntary and community groups to express an interest in taking over the running of local services

• Community right to bid– Duty requiring LA’s to maintain a list of assets of

community value– When listed assets come up for sale or change

ownership groups will have time to develop a bid and raise money to buy the asset on the open market


• Local referendum– Right to local people to suggest votes on any local

issue that they think important– LA and other local public bodies will be required to

take the outcome into account as they make their decisions

• Right to veto excessive Council Tax rises– The Secretary of State will set a “ceiling” for Council

Tax rises– Local people will have the right in a referendum to

approve or veto a LA’s proposals to raise taxes at a faster rate


Reform of the Planning system clearer, more democratic and more effective• What the Government says:

– A good planning system is essential for the economy, environment and society

– There are flaws in the current system– Planning does not give members of the public

enough influence over decisions– Too often power is exercised by people not

effected by the decision


What the Localism Bill contains• Abolition of regional strategies• Neighbourhood planning

– Right for communities to draw up “neighbourhood development plans”

– Subject to the plans meeting certain criteria, local people will be able to vote on them – if approved by a majority the LA will bring it into force

– LA’s will be required to provide technical advice and support as neighbourhoods draw up their plans


• Community right to build– Gives powers to groups of local people to

bring forward small developments

• Requirement to consult communities before submitting very large planning applications

• Strengthening enforcement rules


• Reforming the Community Infrastructure levy– Changes to the infrastructure levy to make it

more flexible to enable money to be raised to maintain infrastructure as well as build new

– Greater freedom to LA’s to set different rates in different areas

– Powers of the Secretary of State to require some money to go directly to neighbourhoods where the development is taking place


• Reform of the way local plans are made– Limit the discretion of planning inspectors to insert

their wording into plans– Focus on reporting progress to communities

• Duty to Cooperate– Requires LA and other public bodies to work together

on planning issues

• Nationally significant infrastructure projects– Abolition of the Infrastructure Planning Commission –

restoration of responsibilities to Government Ministers


Reform to ensure that decisions about Housing are taken Locally

• What the Government says:– Social Housing provides 8 million people in

England with a decent home at an affordable rent

– However rules are too rigidly set by central Government making it hard for Councils to adapt to meet local needs

– Some rule actually trap people in difficult circumstances


What the Localism Bill contains:• Social Housing tenure reform

– LA’s will be able to grant tenancies for a fixed term (min 2 years) for new tenants

• Social Housing allocation reforms– Greater freedom to LA’s to set policies about

who should qualify to go on the waiting list

• Reform of Council Housing Finance– Reform of the housing subsidy system


LGA Response to the Bill• Welcome the thrust of the Bill and the

ideas behind it• However, despite rhetoric about

decentralisation on which the Bill is based there is too much control about exactly how localism will work on the ground

• 100’s of new powers for the Secretary of State


• Forcing local areas to have elected mayors not in the spirit of local choice

• Concerns that areas that chose not to have a mayor will have less powers over local services

• Secretary of State’s powers to determine what is a “local issue” and an “asset of community value” amongst many other things is the complete opposite to true localism


• The Government must put its money where it’s mouth is on financial freedoms – whilst dismantling the housing finance system is welcome – the cap on capital borrowing is a threat to future housing stock

• The Government must allow Councils to keep 100% of RTB receipts

• LGA completely oppose Secretary of State powers to order LA’s to contribute to EU fines imposed on UK Government


LGA support amendments to the Bill which will:

• Delete Secretary of State powers to force an area to have a mayor

• Delete the post of “shadow mayor”• Delete order making powers of Secretary of

State to determine how local referendum are conducted

• Delete Secretary of State powers to prescribe exactly how localism should work


• Planning – ensure neighbourhood forums are representative and

democratic giving ward councillors a stronger role– Delete the requirement for a referendum where there

is agreement on the neighbourhood plan– Delete further prescriptive powers of the Secretary of

State– Delete powers of Secretary of State to force Councils

to pass community infrastructure levy to any other person


• Housing– Allow Councils to keep 100% of RTB receipts– Prevent the Secretary of State from forcing

Councils to pay money to Government after they have “bought out” of the HRA subsidy system

– Remove the cap on Council’s borrowing to invest in social housing


What next?

• Awaiting House of Commons report stage due imminently

• Minister made no concessions on the concerns of Local Government at the Committee stage

• LGA urging Councils to write to MP’s to highlight the changes that must be made to the Bill

• Full Bill and explanatory notes on; http://services.parliament.uk/bills/2010-11/localism.html

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Localism Bill

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