| My portfolio as Minister for Finance, Local
Government and Communities is a wide ranging one, with
powers delegated to me from an extensive list of statutes,
as shown in the Annex. My evidence to the Commission is
divided into four broad policy areas:
Local Government
Local government is a key partner in delivering the
Assembly’s objectives for a better Wales. The Government
of Wales Act 1998 placed specific duties on the Assembly
to set out how it would promote and sustain local government
and also to establish a Partnership Council to consider
matters of shared interest between the Assembly and
local government.
Policy development
Within the current framework of primary legislation
and the powers delegated to me I have been able to develop
distinctive policy approaches suited to Welsh circumstances.
The Wales Programme for Improvement introduced a radical
new approach to implementing the duty of continuous
improvement placed on local government. I have also
signed policy agreements with all county councils, which
set out the commitments which they share with us to
achieve better end results for local people in the key
services of education, social care, the environment
and transport.
Using Assembly legislation, I have implemented the
Local Government Act 2000 relating to political management
structures and access to information in rather different
ways from England, in order to reflect the different
structure of local government in Wales and the more
prominent commitment to open government here. I have
also used delegated powers to introduce a new formula
for the distribution of general revenue funding to local
government, ahead of England; and developed distinctive
secondary legislation on changes to local authority
investment regulations and rural rate relief [the latter
as part of the Assembly’s response to the impact
of the foot and mouth outbreak]. I have introduced regulations
and guidance on councillors’ allowances, based
on independent research and aimed at enabling a wider
cross section of the population to consider standing
as councillors as well as rewarding current service
more appropriately.
Constraints
The Welsh Assembly Government acts within the framework
of transferred powers under primary legislation . It
is of interest that all principal local authorities,
under s2 of the Local Government Act 2000, have been
given the power [ subject to certain limitations set
out in section3] "to do anything which they consider
is likely to …achieve…the promotion or improvement
of the economic …social…[or] environmental
well-being of their area". The generality of this power
available to local government exceeds anything in the
framework of powers available to the National Assembly.
There are occasions when this framework does not enable
us to undertake some of the policy initiatives which
we believe would be appropriate to the needs of Wales.
The reserved powers in the Local Government Acts 1999
and 2000 and references to non-devolved matters within
legislation conferring powers on the Assembly have created
practical as well as theoretical barriers.
For example, section 99 of the Local Government Act
2000 gives the Assembly power to make regulations enabling
local authorities to determine which members of the
council are to be entitled to pensions, allowances or
gratuities. However regulations must first be made under
the Superannuation Act 1972 which is not devolved. This
has meant that ,in order to exercise its power under
section 99, which is necessary to carry out its policy
intentions to the full, the Assembly needs the support
of the UK Government, which may or may not be forthcoming.
The Welsh Assembly Government policy statement "Freedom
and Responsibility in Local Government" gives a commitment
to rationalising the burden of requirements on authorities
to produce plans for the Assembly. Some plans are required
by primary legislation. The Local Government Act 2000
gives the Secretary of State, but not the Assembly,
power to remove or alter these requirements. This applies
even where the general functions under that legislation
have been devolved to the Assembly. The Act gives the
Assembly scope to acquire the power to remove or amend
specific requirements but this would still have to be
done by Parliamentary Order. This means that
the Assembly has no direct ability to remove requirements
to produce statutory plans, even if they concern devolved
functions and the Assembly agrees such plans are no
longer necessary.
The Welsh Assembly Government has received requests
from local government to increase its freedom to trade
in goods and services. The Assembly initially refrained
from using powers it had under the Local Authority Goods
and Services Act 1970 to add specific bodies to those
allowed to trade with Welsh local authorities, because
the then DTLR was consulting on proposals under the
Local Government Act 1999 (non devolved) to create a
more general permission. DTLR concluded that it would
be safer to introduce fresh provisions in the next local
government bill. I promoted Assembly legislation in
the absence of progress by the UK Government.
Fire Authorities
Although powers under the Fire Services Act 1947 are
listed as among the functions delegated to me, the position
on the fire authorities in Wales and their fire services
is not straightforward. The only function transferred
is that of providing revenue funding to the fire authorities.
This includes providing revenue cover for capital expenditure,
even though the capital funding is handled by ODPM and
the Assembly’s view on capital projects is only
sought when they exceed £6 million. Responsibility for
fire policy, including decisions - such as on decontamination
equipment - which have revenue consequences for the
Assembly Government, lies with ODPM.
Fire authorities and the fire service have a considerable
contribution to make to tackling social disadvantage
and improving social, environmental and economic well
being. Action to promote community fire safety reduces
death and injury , which occurs disproportionately in
deprived areas. I have worked closely with the fire
authorities on fire safety matters. This has led to
Assembly investment to install smoke alarms in all social
housing; further action to combat arson; and the establishment
of a Community Fire Safety Trust to stimulate action
to promote fire safety.
I consulted in March 2002 on whether responsibility
for capital funding of fire authorities should lie with
the Assembly. The responses indicated support for the
transfer of capital funding and for the opening of discussions
with ODPM. This has since become caught up in the Bain
review which the UK government established in the light
of fire-fighters’ claims for substantial pay increases.
Housing
Policy Development
Within current legislation I have been able to develop
a number of policies to suit Wales. The Assembly
was able to make an early start through the first National
Housing Strategy for Wales – ‘Better Homes
for People in Wales.
A devolved administration has allowed the adoption
of a flexible policy process that has maximised grassroots
contribution and joint working. This involved four independently
chaired housing strategy task groups.
Registered Social Landlords
The performance standards required of RSLs are set out
in the Assembly publication "Regulatory Requirements
for Social Landlords registered and operating in Wales".
This booklet sets out the detailed criteria for openness,
governance, financial management and tenant services.
Regulation of the Private Rented Sector
Local Authorities already have enforcement powers to
deal with problems in the private rented sector including
registration schemes for Houses in Multiple Occupation
(HMOs). These allow them to tackle HMOs which are altering
the character of traditional residential areas. The
Assembly is committed to introducing a national licensing
scheme for HMOs, to provide safe, acceptable living
conditions without reducing the supply of private rented
accommodation. It is also proposed to introduce ‘Selective
Licensing’ of the non-HMO sector. These desirable
changes will however involve primary legislation.
Community Mutual Model for Stock Transfer
A new stock transfer model that gives far greater responsibility
and ownership to tenants has been developed for Wales
with funding from the Welsh Assembly Government. This
model, promoted by the Co-operative movement develops
the concept of mutuality. It offers a real opportunity
to create a structure for Wales that reflects the many
communities that comprise every LA area, and illustrates
how progressive policies can sometimes be taken forward
without the need for primary legislation.
Care and Repair
The Assembly already has power to develop and fund Care
and Repair (C&R) services in Wales. Care and Repair
provide help for older and disabled people to repair
and adapt their homes. The service is very successful
and well respected in Wales. I recently agreed to increase
the core funding to C&R to help secure its service
throughout Wales. That enabled C&R to use the other
resources it can access to develop and enhance its services.
This is not replicated in England. C&R now have
all Wales coverage. The structure, funding regime, and
their success along with the support they have from
the Assembly is envied by similar organisations elsewhere
in the UK. Without support from the Assembly it is unlikely
that the current service would have been as extensive
or readily available to older people in Wales.
Housing Ombudsman Service
The Assembly recognises the need for, and wants to provide
a Social Housing Ombudsman Service for Wales - indeed
the partnership agreement calls for the extension of
such an Ombudsman role to cover the private sector.
However, the introduction of such a service is dependent
on primary legislation, and thus dependent on an appropriate
Bill being promoted by ODPM.
Restructuring the Rent Officer Service
Responsibility for the provision of this service that
deals with the non-devolved DWP function of Housing
Benefit rests with the Assembly. DWP and ODPM have restructured
the service provision in England as an executive agency.
The Welsh Assembly Government is developing a structure
that better reflects the needs of Wales.
The Provision of Housing for Those
with Special Needs
Disabled facilities grants (DFGs) provide help with
the cost of adapting disabled people’s homes. DFGs
are administered by local authorities and funded from
their General Capital Funding.
The Regulatory Reform (Housing Assistance) (England
and Wales) Order 2002, which came into force in July,
increases local flexibility to adapt disabled people’s
homes. Assistance will be provided in line with an authority’s
local priorities and details will be contained within
their statutory housing renewal policy.
Persons who are not Eligible for Housing
Assistance
To ensure that available resources are used effectively,
Disabled Facilities Grants (DFG) and other renovation
grants are targeted towards those who can least afford
adaptations themselves. The arrangements for assessing
applicants’ contributions are consistent with those
for other housing-related benefits.
Under new arrangements for private sector renewal local
authorities will determine targets for renovation grants,
including setting a own locally determined means test.
The test for DFGs will continue to be prescribed centrally.
However authorities will also be able to provide alternative
forms of assistance for people who do not qualify for
grant.
The building regulations have not been devolved to
the Assembly. We provide advice to the general public,
Assembly Members and consultants on queries in relation
to the building regulations although on specialist matters
we rely on advice from our English counterparts. We
do have responsibility for exemption of certain class
of building regulations, appeals and determinations
but this does not provide any scope for the Assembly
to pursue differentiated policies in Wales.
Social Housing Grant
Policies for allocation/distribution of Social Housing
Grant [SHG] in Wales are significantly different from
those adopted by the Housing Corporation and the ODPM.
Policies and procedures for, and conditions related
to, the payment of grant have also evolved to suit Welsh
circumstances. Examples include more flexible use of
low cost home ownership schemes and the development
of "tenure neutral" social housing.
Homelessness
The main development in regard to homelessness has been
the passage of primary and secondary legislation, i.e.
the Homelessness Act 2002, and the Homelessness (Priority
Need) (Wales) Order 2001. The Order is an example of
how the Assembly has used its existing powers to adopt
a measure designed to meet Assembly objectives to tackle
homelessness in Wales ahead of England and Scotland.
Anti Fuel poverty policies
Anti Fuel poverty policies through the home energy efficiency
scheme is an example of policy development using available
powers available to implement new policies.
Constraints
Licensing of Privately Rented Housing
Following a manifesto commitment the Government is developing
licensing arrangements for the private rented sector.
This includes Houses in Multiple Occupation (HMOs) and
selective licensing of landlords. The changes need primary
legislation and although the new arrangements have been
in prospect for 5 years, it has not yet been possible
to secure parliamentary time for a Bill. ODPM ministers
have agreed arrangements, that, although not ideal,
will enable the Assembly to introduce licensing arrangements,
which best meet the needs of Wales. This will largely
be achieved by including much of the detail in the secondary
legislation. Mandatory HMO licensing will be restricted
to "high risk" properties. "lower risk" houses will
be subject to discretionary licensing. This will enable
local authorities in Wales to address the problems they
face with HMOs, albeit using a mixture of mandatory
and discretionary powers alongside HMO licensing there
will be arrangements for the selective licensing of
unscrupulous landlords. In England this will be restricted
to low demand areas. The Assembly did not consider that
such a narrow approach was suitable in Wales and secured
agreement to its proposals for a wider approach. As
a result the licensing criteria will now be in the secondary
rather than the primary legislation.
Although the arrangements eventually agreed with Whitehall
are acceptable and will enable the Assembly to largely
develop separate arrangements for Wales I would ideally.
have preferred to have the flexibility to develop a
more comprehensive inclusive licensing regime for Wales,
and to move at a faster pace.
Lifetime Homes
The principle of Lifetime Homes has been incorporated
as a mandatory design requirement into all new social
housing. Wales is the only UK administration to introduce
this as obligatory. However the objective of extending
this principle to the private sector cannot be achieved
unless responsibility for Building Regulation is devolved.
Social Inclusion & Community
Regeneration
Policy Development
Social inclusion is one of the Welsh Assembly Government's
key themes. The particular responsibility for a focused
approach to social inclusion rests with me, and is an
example of an area where formal statutory powers have
not necessarily had to be deployed for progress to be
made. I exercise this responsibility in a number of
ways. First, I present an Annual Report on Social Inclusion
in Wales to the National Assembly. This Report details
how the Government is taking forward the agenda of tackling
poverty and social disadvantage across all appropriate
transferred functions. It also sets out what has been
achieved and sets out plans for future development.
Secondly, I chair a Community Regeneration and Social
Inclusion Policy Board which brings together key decision
makers in Wales, including those responsible for non
devolved functions such as policing and employment,
to consider strategic issues in relation to regenerating
communities in Wales and addressing poverty and social
disadvantage, particularly in our most deprived areas.
Third, the Assembly contributes to social inclusion
developments at UK and European levels through its contributions
to the "Opportunity for all" report and the UK National
Action Plan on Social Inclusion. Finally, I keep abreast
of policy in related non-devolved areas such as Post
Offices, benefit payments and regulation of the financial
services industries through meetings and correspondence
with relevant parties and involvement in the work of
the British Irish Council which is currently considering
financial exclusion issues.
The Assembly has set up a number of regeneration programmes
under the powers of the Housing Grants, Construction
and Regeneration Act 1996. Communities First has been
developed as the Assembly's flagship programme for tackling
poverty and social disadvantage in Wales's most deprived
communities and is about devolving power to local people.
Community regeneration activities by local authorities
and the community and voluntary sectors are also supported
under the same powers. Although responsibility for Post
Offices is a reserved matter, the Assembly Government
is concerned to maintain a viable network throughout
Wales, as Post Offices are central to community life.
Many are currently under risk of closure so I am considering
using my powers under section 126 of the Housing Grants,
Construction and Regeneration Act 1996 to support their
development as community commercial centres.
Constraints
Under the powers available, I have been able to develop
a distinctive Welsh approach to community regeneration
and social inclusion. However, the non-devolved areas
of employment policies and the benefits payment system
have a major impact on poverty and disadvantage on Welsh
communities. My officials therefore maintain close working
relationships with the Department for Work and Pensions
nationally and Job Centre Plus locally to ensure that
the Welsh perspective is taken into account in policy
development and implementation. The Assembly's Wales
New Deal Advisory Task Force plays a valuable role in
this respect.
Community Safety
Policy Development:
Policing
Tackling crime and creating safer communities requires
a broad cross cutting approach. Law and order enforcement
policies need to be complemented by policies that address
underlying causes of crime – for example a high
proportion of acquisitive crime is committed by drug
addicts seeking to fund their habit. While statutory
responsibility for law and order lies with the Home
Secretary, almost all the social policy areas which
are relevant to tackling the causes of crime - social
services, health, housing, community regeneration, education
and training - are largely devolved.
I have established strong links with the Welsh police
forces and I have regular meetings with the police authorities
and with the Chief Constables but I do not have any
statutory responsibility for the police service other
than in relation to police funding. The police currently
receive about half of their government funding from
the Assembly Government, via the local government revenue
settlement – the remainder in the form of direct
grants from the Home Office.
Crime and Disorder Reduction Partnerships
The Crime and Disorder Act 1998 placed a duty
on local authorities and Chief Constables to formulate
and implement, together with other bodies, a strategy
for the reduction of crime and disorder in each local
authority area in Wales. The partnerships thus created
are at present usually known as Crime and Disorder Reduction
Partnerships. [CDRP]. The Act designated the Assembly
as a body with which lead authorities in the partnerships
in Wales must co-operate. The Crime Reduction
Director for Wales is located in the National Assembly
and the Assembly’s Crime Reduction Unit assists
him under a service level agreement with the Home Office
in the function of supporting the Welsh Partnerships.
Substance Misuse
Substance misuse is a serious problem
in Wales, as elsewhere in the UK. I have recently acquired
ministerial responsibility for the delivery of the Welsh
Assembly Government’s Substance Misuse Strategy
– "Tackling Substance Misuse in Wales:
a partnership approach". I will soon be making an
announcement about new delivery mechanisms.
There are good links on combating the misuse of illegal
drugs between the Home Office, British Irish Council
and the Welsh Assembly Government. However the Welsh
Assembly Government’s strategy has a wider remit
than the UK strategy and includes alcohol and other
substances. I believe that the inclusion of alcohol
in our Strategy is of particular importance in view
of the severe health impact of alcohol abuse and its
strong association with violent crime, including domestic
violence.
Constraints
Policing
The finalising of the settlement for police in Wales
is complicated by transfers in and out of central budgets
held within the Home Office. This does not sit well
with the timing and operation of the Assembly’s
open budget planning process and we have no say in these
decisions which can have a significant impact on the
Assembly’s budget. The overall arrangements for
police finance are unduly complex.
Crime and Disorder Reduction Partnerships
The Home Office funding to local Partnerships
has been focused on national targets to reduce certain
types of crime rather than problems in their areas
The Home Office has a variety of different funding
streams tied to specific initiatives. This tends to
confuse the local CDRPs and reduces their ability to
respond to local circumstances. The different rules
and systems do not lend themselves to cross-partnership
working or to jointly funded Home Office/Assembly initiatives.
Finance
I recently submitted my analysis of the financial relationship
between the Welsh Assembly Government and the UK Government
to the House of Lords Select Committee; and I would
be pleased if the Commission considered that analysis
in its deliberations.
Allocation of resources to the National Assembly from
the UK Government is achieved by the mechanism of the
so-called ‘Barnett Formula’. This mechanism
pre-dated the creation of the National Assembly and
the judgement was that devolution would be best achieved
by not changing the mechanism. The arrangements for
political devolution and distribution of resources throughout
the United Kingdom are not dependent upon each other.
In my view the Commission should seek to evaluate the
arrangements for political devolution and not be distracted
by the very separate considerations of financial distribution.
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