Parliament think localism - by Sam Dowling

Earlier this week the Government introduced their long-awaited “Localism Bill” to the House of Commons for its First Reading.

The legislation is wide ranging and seeks to: empower local people; free local government from central and regional control; give local communities a real share in local growth; and develop a more efficient and local planning system. The underlying goal is to devolve power and freedoms to councils and neighbourhoods, establish powerful new rights for communities, revolutionise the planning system, and give communities much more control over housing decisions.

Empowering local people

Additional powers for councils will be accompanied by greater powers for local people to hold their local authorities to account and to shape their local area. There will be a new right to challenge to take over services; a new right to bid to buy assets of community value such as libraries, public houses and shops; a new right to veto excessive council tax rises through a referendum.

Freeing local government from central and regional control

The Bill will expand the freedom of councils to act in the interest of their local communities through a new general power of competence. This long awaited new power will mean that rather than needing to rely on specific powers, councils will have the legal reassurance and confidence to innovate and drive down costs to deliver more efficient services. Local councils will also be given greater control over allocation and tenure of social housing and the flexibility to use their social housing stock to the maximum effect and reduce waiting lists and a new National Homeswap Scheme is being introduced for social tenants who want to relocate

Giving local communities a real share in local growth

The legislation plans to set the foundations for the Big Society by devolving greater powers to councils and neighbourhoods and giving local communities control over housing and planning decisions - radically transforming the relationships between central government, local government, communities and individuals. Economic growth will be assisted by allowing local authorities to grant discretionary business rate discounts. A New Settlement for London will devolve significant power to the Greater London Authority and London Boroughs and streamline the plethora of agencies in London’s public sector landscape.

Developing a more efficient and more local planning system

The Bill also contains significant reform of the planning system. It will replace the Infrastructure Planning Commission with a democratically accountable system for major infrastructure and introduce new neighbourhood plans – giving communities the power to grant planning permission if a majority of electors are in favour.

This is the first stage of the passage of a Bill through Parliament and the next - the 'second reading' - involves a debate and a vote on whether the Bill should proceed further.  The debate will be held on 17 January 2011 and we will be following the Bill’s progress and helping opinion formers throughout the process.

If you have any comments on the Bill or are interested in participating in a working group to discuss some of the issues it addresses, please contact us at policy@thesocialinvestmentbusiness.org.