Coalition decides against referendum on House of Lords reform

http://www.guardian.co.uk/politics/2012/jun/23/coalition-referendum-house-lords-reform

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The coalition has decided against holding a referendum on reforming the House of Lords, government sources have confirmed.

The decision will be seen as a victory for the deputy prime minister, Nick Clegg, and the Liberal Democrats after David Cameron previously hinted that he could back a national poll.

When he publishes his bill next week, Clegg will propose replacing the house with a largely elected second chamber, a move opposed by many Tories and some Labour peers.

Critics have argued that the changes should not be a priority at a time of economic crisis, and said such a major constitutional reform requires a referendum.

Both the Labour leader, Ed Miliband, and the prime minister have signalled they could support a national vote. But government sources have now confirmed that a referendum, which could have cost more than £100m, will not feature in the plans.

Clegg has insisted that a referendum is unnecessary because Lords reform featured in the election manifestos of all three main parties.

Cameron is said to have secured concessions in return, including making it clear that the new-look chamber cannot block legislation passed by the House of Commons.

The legislation is expected to propose cutting the number of lords from around 900 to 300, with at least 80% of peers being elected.

Elections would be held every five years, and appointed or hereditary peers would progressively be replaced by the new elected "senators".

Each senator would serve for a single term of 15 years and will represent a region rather than a traditional constituency, similar to the European parliament system.

Clegg said Tory rebels, who are hoping to defeat the government when the bill is debated in the Commons next month, should explain how they can defend a chamber similar to the Chinese people's congress.

Tory rebels are hoping to inflict a serious wound on Clegg next month by voting against the "programme motion" for the bill. This would mean that the government would not be able to impose any time limits on bills, which have to take place on the floor of the Commons because the bill is a constitutional measure. This could disrupt the government's entire legislative programme for two years.

Opponents claimed on Thursday that the reformed chamber would cost £484m to phase in between 2015 and 2020. The House of Lords has cost £91m over the last five years. The figures were included in a report by Lord Lipsey, a Labour peer, and Jesse Norman, a Conservative MP who is opposed to reform.

Clegg dismissed the findings as "fictional numbers cooked up on the back of an envelope". He claimed Lipsey had not seen costs because his bill had not been published.

He said his legislation would strike a balance to make the Lords legitimate, by holding elections and reducing the number of members.