“My Government will bring forward legislation to promote local economic development and to create greater opportunities for community and individual involvement in local decision-making.”
This Bill underpins the policies announced in the recent White Paper ‘Communities in control: real people, real power’ and takes forward the proposals set out in the Government’s Review of Sub-National Economic Development and Regeneration (the SNR).
The Bill is the keystone of a wider programme to put people at the heart of local decision-making, giving citizens greater influence over decisions affecting their lives and making public services more transparent and accountable to all. It also builds on a continuing programme to devolve decision making to regions and local areas, ensuring that those who best understand local circumstances are those who are able to take decisions affecting the local economy. In addition, the bill will ensure a more level playing field for construction businesses, especially small, local ones, in construction contracts.
The purpose of the Bill is to:
The Bill will strengthen local democracy, promote regional and local economic development and ensure fairness in construction contracts.
The main benefits of the Bill would be:
· The transfer of greater power and influence to regions, local authorities and citizens. In times of economic hardship, it is even more important that decisions can be taken at the right level, by those who are closest to the issues affecting places and with the full involvement of local people.
· To encourage greater participation by local people in shaping their local area, including encouraging a more diverse range of people to take up civic positions, strengthening local democracy and opening up decision making.
· To bring together strategy development at a regional level and provide local authorities with tools to work across local boundaries to tackle the economic challenges facing their communities. This will be supported by a duty on local government to assess the economic conditions in their area.
· To improve current legislation on commercial contracts to provide a fairer system, and more cash flow, for construction companies. This legislation will be especially important for small and medium construction companies, who play a key role in local economies.
The main elements of the Bill are:
· A duty on local government to promote democracy - stimulate local debate, improve democratic understanding and take-up of civic roles.
· A legal duty on local authorities to respond to petitions.
· Extending the “duty to involve” so that local authorities ensure government bodies and agencies involve local people in their decision-making processes.
· Setting up a National Tenant Voice to ensure tenants’ views are central to decision-making on housing issues.
· Strengthening the powers of joint committees to enable them to look at a wider range of issues raised by local citizens.
· New powers for the Audit Commission (in England) and the Auditor General for Wales (in Wales) to appoint auditors to certain entities and provide power for the auditor to report public interest. Making the Boundary Committee for England an independent body and separate from the Electoral Commission.
· A new duty on local authorities to prepare an assessment of the economic conditions in their area.
· A joint duty on Regional Development Agencies and Local Authorities through a new Local Authority Leader’s Forum to produce a single regional strategy.
· Allow the creation of multi area agreements with statutory duties. (Statutory duties to be available for existing MAAs).
· Allow the creation of Economic Prosperity Boards.
· Improving the cash flow and adjudication of construction contracts through amending the Housing Grants, Construction and Regeneration Act 1996.
Related documents:
· Communities in Control White Paper:(PDF, Communities and Local Government website, opens new browser window)
· Sub national review of economic regeneration:(PDF, Communities and Local Government website, opens new browser window)
· The Councillors Commission: Representing the future Lord Sharman’s review: Holding to Account: The Review of Audit and Accountability for Central Government:
· CSPL Eleventh Report, “Review of the Electoral Commission”, was published in January 2007: (PDF, Electoral Commission website, opens new browser window)
Existing legislation in this area is:
· Housing Grants, Construction and Regeneration Act 1996
· Local Government and Public Involvement in Health Act 2007
Devolution:
· Different parts of the Bill apply to England, Wales, Scotland and Northern Ireland. Examples of where measures apply are below. The Government will work closely with the Devolved Administrations on the responsibilities they have in this area.
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