My Lords, I thank my noble friend Lord Hunt for the measured way in which he introduced his take-note Motion. I recognise his knowledge of and attachment to the City of Birmingham. I also thank my noble friend Lord Rooker for his contribution.

We on the Front Bench support the order as it stands. My noble friend Lord Rooker raised some fascinating issues—the same ones that Kerslake raised—about how Birmingham City Council used to be a leader and has lost its way. My noble friend Lord Hunt recognised that as well. The issue of the city being too big was touched on in the report but the conclusion was not to change those matters, certainly for the time being. My noble friends had a different emphasis, as I shall put it, on whether an election by thirds or an all-in, all-out election is the most appropriate. I am bound to say that we on Luton Council changed to an all-in, all-out system in 1976. We supported it then and have supported it since, even though, politically, we have always caught the bad years and ended up in opposition. Thankfully, that has changed, but it is a consequence: you cannot have all the benefits of it.

As for wards which have a different number of members, again in Luton we have two-member wards and three-member wards. Frankly, it works perfectly well and I do not know what the problem is with having that system. My noble friends Lord Rooker and Lord Hunt focused on this issue of the blurring of roles between councillors and officers, which we accept is a significant issue. I suspect it may have got worse for those councils that have an executive-type arrangement, which I think lends itself more naturally to that blurring. It is important to guard against that.

The instrument before us today moves away from councillor elections for Birmingham City Council being in thirds to all-out elections every four years. This was to commence in 2017 but, as my noble friend Lord Hunt pointed out, it has been put back one year. I join with my noble friend in seeking a proper explanation of that change. There is speculation that it was a recognition of the complexity associated with the reorganisation of the council and that longer would need to be provided for the Boundary Commission changes to be put in place. Perhaps the Minister can use this opportunity to clarify matters.

The proposed change came about of course as a consequence of the Kerslake review, which we have heard about. Sir Bob Kerslake was asked last year to lead a review of the governance and organisational capabilities of the city council. The review was conducted on the principles of an LGA peer challenge model and looked at five factors critical to council performance and improvement. These were: effective political and managerial leadership working in partnership; an understanding of the local context and a shared long-term vision for the future, with a clear set of priorities; effective governance and decision-making arrangements that respond to challenges and manage change, transformation and disinvestment; organisational capacity and resources focused in the right areas in order to deliver the agreed priorities, including a workforce that understands the priorities and supports their delivery; and a financial plan in place to ensure long-term viability.

The Kerslake report was clear in recognising the strengths and potential of Birmingham to be an economic powerhouse alongside London, but it was also clear that for the city to succeed Birmingham City Council had to change. The report listed a raft of areas where there is the need for change. I will highlight just a few of them. It said:

“The council must act now to address its significant challenges. Like all local authorities, it must rethink its role and the way it does business with its partners and those it serves, including its relationship with the city’s residents. But there are some issues that are particular to Birmingham City Council. Some of its services are not good enough, such as children’s services”— which we have heard about—

“and there is dissatisfaction with others, such as waste management. If the financial challenge is to be met the council needs to begin a different conversation with the people it represents”.

On other matters, the report says:

“Birmingham City Council’s size acts as both a badge and a barrier: it has led to a not invented here, silo based and council knows best culture. These characteristics are not an inescapable feature of Birmingham City Council’s size but they need to be acknowledged and addressed. There is much to learn here from other large authorities”.

It says that,

“there is a blurring of roles between members and officers. The relationship needs to be reset and officers given the space to manage”— an issue we have touched upon—and that,

“the council’s vision for the future of the city is neither broadly shared nor understood by the council’s officers, partners or residents”.

We accept this analysis and understand that my noble friend Lord Hunt does as well.

As for the report’s recommendations, we accept these as well, especially the focus on resetting the governance arrangements, and of course recommendation 4 concerning the electoral cycle and the Boundary Commission. These proposed changes are far-reaching but, we suggest, necessary. Recommendation 4 says:

“The Secretary of State should move Birmingham City Council to all out elections replacing the current election by thirds. In the interest of effective and convenient local government the Local Government Boundary Commission for England should conduct an Electoral Review, that reflects existing communities, to help the council produce an effective model for representative governance. It should aim to complete its work to enable elections by May 2017”— now 2018, we understand.

My noble friend Lord Hunt is right to seek assurance that the challenges identified by Kerslake and the actions required are not being distracted by electoral processes—I think that was the key argument that my noble friend made. But the recommended switch from elections in thirds to all-in, all-out elections every four years is surely an integral part of the change that is necessary. In particular, the report highlights the problem of a culture of short-termism, referring to,

“an inability to focus on longer term problems, including transforming services”,

and suggests that,

“changing the electoral cycle to all out elections can have a significant impact on a council’s ability to change and adapt, provide stability in decision making and aid long term planning and vision”.

We agree with that, as do the Government, I think. We consider that the regulations should proceed and I hope my noble friend will be comforted in this regard by the debate and the understanding of the issues that he has raised.