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My Lords, as the Minister knows, this is an issue that the people of Teesside take very strongly. When I was working in the Tees Valley across a number of constituencies during the election, they really wanted transparency. They want to know what has happened to the money that the public, via the Government and other agencies, have put in and whether the arrangement, which gives 90% of the benefit to two individuals and only 10% to the public, can stand up. I appreciate that the Minister will bring the report, but will he also ask his department to look at an overall system of audit and accountability, because that disappeared when the Audit Commission disappeared, and there is no coherent across-the-board system for the devolved mayors. We want to give them more power, but if they get more power there must be transparency and proper accountability.
My Lords, as the Minister knows, this is an issue that the people of Teesside take very strongly. When I was working in the Tees Valley across a number of constituencies during the election, they really wanted transparency. They want to know what has happened to the money that the public, via the Government and other agencies, have put in and whether the arrangement, which gives 90% of the benefit to two individuals and only 10% to the public, can stand up. I appreciate that the Minister will bring the report, but will he also ask his department to look at an overall system of audit and accountability, because that disappeared when the Audit Commission disappeared, and there is no coherent across-the-board system for the devolved mayors. We want to give them more power, but if they get more power there must be transparency and proper accountability.
I thank my noble friend for raising those important issues. It is true that the previous Government scrapped the Audit Commission and replaced it with a fragmented, locally led audit regime that is failing. This Government are committed to overhauling local audit and restoring better value for money for taxpayers. We are looking closely at all the evidence, and we will set out our plans, including legislation, shortly. I must remind the House that until we get the response of the Mayor of Tees Valley we cannot explore the options. We will wait for the response to the 26 recommendations which the mayor was asked to look at and then take further action.
My Lords, I am disappointed by the Minister’s response. In the debate, I thought that we had established that the mayor was dealing with only a limited number of the recommendations, particularly on governance. There is a whole raft of others that he did not address in his letter. Neither we nor the public in Tees Valley have heard from the Government on what they will do to ensure that proper procedures, which have been undertaken by other local authorities for generations, are adhered to in Tees Valley. Can the Minister reassure us that there will now be a tendering and procurement process that is understandable in the public sector, even though this is a public/private arrangement? Will that take place, particularly given that the Secretary of State just last week transferred to two of the development corporations set up within the Tees Valley money from the local authorities without consulting them?
My Lords, I am disappointed by the Minister’s response. In the debate, I thought that we had established that the mayor was dealing with only a limited number of the recommendations, particularly on governance. There is a whole raft of others that he did not address in his letter. Neither we nor the public in Tees Valley have heard from the Government on what they will do to ensure that proper procedures, which have been undertaken by other local authorities for generations, are adhered to in Tees Valley. Can the Minister reassure us that there will now be a tendering and procurement process that is understandable in the public sector, even though this is a public/private arrangement? Will that take place, particularly given that the Secretary of State just last week transferred to two of the development corporations set up within the Tees Valley money from the local authorities without consulting them?
I assure the House that all procedures are being followed and, where necessary, they are being tightened as a result of the review. Therefore, where the recommendations need changes to be made, they will be made. Indeed, one of the recommendations affects DLUHC and another, more broadly, affects departments in central government. We are dealing with those now, including one for new systems of governance.
To ask His Majesty's Government what assessment they have made of the auditing arrangements for combined authorities.
To ask His Majesty's Government what assessment they have made of the auditing arrangements for combined authorities.
All combined authorities are legally required to have an audit committee. The Cities and Local Government Devolution Act 2016, and the Combined Authorities (Overview and Scrutiny Committees, Access to Information Audit Committees) Order 2017, set the requirements for audit committees in combined authorities. These arrangements ensure that there is independent assurance of combined authorities governance, internal control and risk management arrangements, as well as the statutory financial reporting process.
Separately, combined authorities, in line with the requirements on all local authorities, are required to publish audited annual financial accounts. Combined authorities are not immune to the cross-system challenges currently facing the local audit market. The government working with system partners has developed proposals to tackle the exceptional circumstance of the current backlog and ensure a return to timely delivery of high-quality financial reporting and external audit in local bodies. We will consult on these imminently.
Local Government Bill. Debate on allocation of time motion. Agreed to on division (332 to 162). Report stage second day. Bill reported with amendments. Third reading. Agreed to on division (319 to 170). Passed.
Local Government Bill. Debate on allocation of time motion. Agreed to on division (332 to 162). Report stage second day. Bill reported with amendments. Third reading. Agreed to on division (319 to 170). Passed.
Local Government Bill. Queen's recommendation having been signified, debate on money resolution (no 2). Agreed to on division (345 to 39). Report stage first day. Debate on motion that further consideration of the Bill be now adjourned. Motion that Question be now put agreed to on division (314 to 140). Main Question agreed to on division (314 to 132).
Local Government Bill. Queen's recommendation having been signified, debate on money resolution (no 2). Agreed to on division (345 to 39). Report stage first day. Debate on motion that further consideration of the Bill be now adjourned. Motion that Question be now put agreed to on division (314 to 140)....
Local Government Bill. Committee stage fourteenth sitting (morning). Schedule 1, discussed with new clause 4 (Approval of capping principles by affirmative order), and other amendments, agreed to. Clause 24 under consideration.
Local Government Bill. Committee stage fourteenth sitting (morning). Schedule 1, discussed with new clause 4 (Approval of capping principles by affirmative order), and other amendments, agreed to. Clause 24 under consideration.
Local Government Bill. Committee stage fifteenth sitting (afternoon). Clause 24 agreed to as amended. Clauses 25 to 27 agreed to. Clause 28 agreed to as amended. Clause 29 agreed to. Schedule 2 agreed to as amended. Bill, as amended, to be reported (Bill 52).
Local Government Bill. Committee stage fifteenth sitting (afternoon). Clause 24 agreed to as amended. Clauses 25 to 27 agreed to. Clause 28 agreed to as amended. Clause 29 agreed to. Schedule 2 agreed to as amended. Bill, as amended, to be reported (Bill 52).
Local Government Bill. Committee stage twelfth sitting (morning). Government new clause 5 (Fees) agreed to. Government new clause 6 (Police Act 1996) agreed to. Government new clause 7 (Guidance) agreed to. Government new clause 8 (Publication of Information), discussed with new clause 1 (Publication by best value authorities), agreed to. Government new clause 9 (Accounts) agreed to. New clause 2 (Compliance with legislation) debated and withdrawn. New clause 3 (Statements concerning best value) debated and withdrawn. Clause 23 under consideration.
Local Government Bill. Committee stage twelfth sitting (morning). Government new clause 5 (Fees) agreed to. Government new clause 6 (Police Act 1996) agreed to. Government new clause 7 (Guidance) agreed to. Government new clause 8 (Publication of Information), discussed with new clause 1 (Publication by best value authorities), agreed to....
Local Government Bill. Committee stage thirteenth sitting (afternoon). Clause 23 agreed to on division (10 votes to 6). Schedule 1 under consideration.
Local Government Bill. Committee stage thirteenth sitting (afternoon). Clause 23 agreed to on division (10 votes to 6). Schedule 1 under consideration.
Local Government Bill. Committee stage tenth sitting (morning). Clauses 15 and 16 agreed to. Clause 17 agreed to as amended. Clause 18 under consideration.
Local Government Bill. Committee stage tenth sitting (morning). Clauses 15 and 16 agreed to. Clause 17 agreed to as amended. Clause 18 under consideration.
Local Government Bill. Committee stage eleventh sitting (afternoon). Clauses 18 agreed to as amended. Clause 19, discussed with Government new clause 5 (Fees) and a Government amendment, agreed to as amended. Clauses 20 to 22 agreed to.
Local Government Bill. Committee stage eleventh sitting (afternoon). Clauses 18 agreed to as amended. Clause 19, discussed with Government new clause 5 (Fees) and a Government amendment, agreed to as amended. Clauses 20 to 22 agreed to.
Local Government Bill. Committee stage ninth sitting (afternoon). Clause 13, as amended, agreed to on division (13 votes to 8). Clause 14, as amended, agreed to on division (12 votes to 8).
Local Government Bill. Committee stage ninth sitting (afternoon). Clause 13, as amended, agreed to on division (13 votes to 8). Clause 14, as amended, agreed to on division (12 votes to 8).
Local Government Bill. Committee stage eighth sitting (morning). Clause 13 under consideration.
Local Government Bill. Committee stage eighth sitting (morning). Clause 13 under consideration.
Local Government Bill. Committee stage sixth sitting (morning). Clause 7 agreed to. Clause 8 agreed to as amended.
Local Government Bill. Committee stage sixth sitting (morning). Clause 7 agreed to. Clause 8 agreed to as amended.
Local Government Bill. Committee stage fifth sitting (afternoon). Clause 5, as amended, agreed to on division (11 votes to 8). Clause 6 agreed to as amended.
Local Government Bill. Committee stage fifth sitting (afternoon). Clause 5, as amended, agreed to on division (11 votes to 8). Clause 6 agreed to as amended.
Local Government Bill. Committee stage fourth sitting (morning). Clause 4 agreed to. Clause 5, as amended, under consideration.
Local Government Bill. Committee stage fourth sitting (morning). Clause 4 agreed to. Clause 5, as amended, under consideration.
Local Government Bill. Committee stage third sitting (afternoon). Amendment to clause 3, discussed with Government new clause 7 Guidance, debated and withdrawn. Government amendment agreed to, with clause 3 agreed to as amended. Clause 4 under consideration.
Local Government Bill. Committee stage third sitting (afternoon). Amendment to clause 3, discussed with Government new clause 7 Guidance, debated and withdrawn. Government amendment agreed to, with clause 3 agreed to as amended. Clause 4 under consideration.
Local Government Bill. Committee stage second sitting (morning). Clause 1 agreed to. Clause 2 agreed to as amended. Clause 3 under consideration.
Local Government Bill. Committee stage second sitting (morning). Clause 1 agreed to. Clause 2 agreed to as amended. Clause 3 under consideration.
Local Government Bill. Committee stage first sitting. Sittings motion agreed to. Order of Consideration motion agreed to. Clause 1 under consideration.
Local Government Bill. Committee stage first sitting. Sittings motion agreed to. Order of Consideration motion agreed to. Clause 1 under consideration.
Local Government Bill. Second reading debate. Amendment negatived on division (35 to 341). Main question agreed to on division (334 to 170). Committed to a Standing Committee. Money resolution (formal).
Local Government Bill. Second reading debate. Amendment negatived on division (35 to 341). Main question agreed to on division (334 to 170). Committed to a Standing Committee. Money resolution (formal).