Localism bill - what does it mean for us? Briefing December 2010

POLICY BRIEFING SPECIAL
14 December 2010


Localism and Decentralisation Bill
The Bill began its journey through Parliament on 13 December. Most, if not all, of the Bill’s provisions have been heavily publicised in the months following the May election as it contains many of the flagship policies from the Coalition Agreement. The Bill has potential implications for all council services so we are sending out a brief summary, which we hope will be of use to members and officers.
 
Rights for residents to buy and run local services
•         A community right to challenge to help different groups run local services if they want to. Voluntary groups, social enterprises, parish councils and others will be able to express an interest in taking over council-run services – the local authority will have to consider it. It could prompt a bidding exercise in which the group could then compete. The challenge may trigger a procurement exercise for that service in line with the relevant procedure, which the challenging organisation could then bid in, alongside others. The right is part of the Government’s aim to create a Big Society.
 
•         A community right to buy to make it easier for pubs, shops and libraries put up for sale to be bought by a community group. Locals will be able to place certain buildings on a ‘most wanted’ list and if they are put up for sale, they would have to be given time to develop a bid and raise the money.
 
 
Power of competence
•         The Bill hands councils a general power of competence – the right to do ‘anything apart from that which is specifically prohibited’, something the Government says will let them run services ‘free from Whitehall diktat’ and help them ‘innovate and work together with others to drive down costs’.
 
 
Planning and development
•         Abolition of regional strategies and housing targets.
•         Neighbourhood plans will become the new building blocks of the planning system.
•         The idea is that ‘neighbourhood forums’ come together to decide where new shops, offices or homes should go and what green spaces to protect – which is then voted on by local people in local referendums. They will be able to define developments which should have automatic planning permission.
•         A community right to build will give local communities the power to take forward development in their area without the need to apply for planning permission, subject to meeting certain safeguards and securing 50% support of the community through a referendum.
•         The Bill will stop the Planning Inspectorate being able to make changes to local plans, which guide development in areas. Instead the inspector will assess plans and will have to judge them ‘sound’ before they can be adopted – but will only suggest changes at the request of the local authority.
•         Changes to the community infrastructure levy – including ensuring some money goes directly to the neighbourhood where developments have been built, so it can be spent on local facilities such as cycle paths or playgrounds if needed.
•         Home Information Packs will be formally scrapped. They have been suspended since 21 May. Sellers will still have to get energy performance certificates under separate legislation.
 
 
Social housing
•         Greater freedom for councils to decide who goes on their waiting lists.
•         Councils will be able to offer new social housing tenants shorter, fixed-term tenancies – ending the right to a council house for life.
•         Plans to make it easier for tenants to move to other social housing and for an internet-based ‘national home swap scheme’ allowing tenants to see properties with tenants looking to exchange homes.
•         Changes to the homelessness duty will mean councils can offer people private sector accommodation instead of being obliged to offer social housing.
•         Changes to the regulatory system for social housing – including the abolition of the Tenant Services Authority and changes to the ombudsman regime for social housing complaints.
•         The Bill also changes the financing of council housing – councils will be able to keep rental income to spend on maintaining homes.
 
Waste
•         The Bill confirms the government’s intention not to take forward ‘pay as you throw’ charges for household waste. It repeals measures in the Climate Change Act 2008 that would have allowed up to five pilot schemes in England.
 
 
Council tax and Business rates
•         Local authorities will be able to grant discretionary business rate discounts. The Bill will make small business tax breaks easier take advantage of, give affected businesses a greater say in rate supplements and cancel certain backdated business rates including port taxes.
•         Residents’ will have a right to veto council tax rises. Councils, police and fire authorities which propose an increase in council tax beyond the ceiling set by government would automatically face a referendum of all registered voters in their area.
 
 
Council management and accountability
•         Councillors will no longer be prevented from voting on campaign issues.
•         Directly elected mayors in 12 cities. Council leaders would become ‘shadow mayors’ once the Bill has become law (autumn 2011), with all the mayors’ powers. There would then be a referendum in May 2012 on whether areas want a mayor.
•         Abolition of the Standards Board.
•         People will be able to trigger referendums on any local issue. The results will not be binding – but local authorities will have to consider them when making decisions.
•         Councils will be able to revert to being run by committees – instead of by a mayor and cabinet.
•         Councils will be required to approve and publish annually at Full Council a senior pay policy statement which authorities will be required to follow when setting senior pay.
 
 
London-specific provisions
•          The Bill hands more powers over housing, economic development, regeneration and the Olympic legacy to the mayor and boroughs.
•          The London Development Agency is being abolished – instead the mayor will be directly accountable for its roles in managing EU funding and regeneration.
•          The mayor will be able to create ‘mayoral development corporations’ to ‘focus regeneration efforts’.
•          The boroughs will get more control over local planning decisions while the mayor will be limited to the largest planning applications.
•          The London Assembly will be able to reject the mayor’s policies with a two-thirds majority.
 
 
USEFUL SITES
 
LGSearch (dedicated local government search engine based on Google)
 
London Government Directory online (London Councils listings and contact details of all London councillors and senior officers)
 
Local Government Information Unit (policy briefings and responses to consultations; free but simple registration required)
 
Local Government Association (local authorities’ lobbying organisation commenting on government policy; free)
 
London Councils (A think-tank and lobbying organisation that promotes the interests of London’s 33 Councils; free)
 
New Local Government Network (think tank commenting on and reporting government news releases; free)
 
LocalGov.co.uk (information resource from the publishers of The Municipal Journal;.

Breifing note by LB Merton