English Devolution and Community Empowerment Bill

Debate between Baroness Pinnock and Baroness Dacres of Lewisham

Committee stage
Monday 9th February 2026 Grand Committee

[Baroness Pinnock (LD)]

My Lords, I heard what the Minister said in her introduction to this group of amendments about it following a proposed change to the Bill in the Commons. Like the previous speaker, I understand the need, in a global city such as London, to reverse—for justifiable reasons—the direction of devolution and enable a power grab from the local boroughs in some circumstances. However, the circumstances are not defined, apart from saying that they have to be of “strategic importance” across Greater London. Yet the definition of “strategic importance” is left to regulations.

It is not at all clear how the mayor will make such decisions when they have been defined as being of strategic importance. Will they be based on the licensing priorities, which is a requirement for local borough licensing committees? How will local concerns be heard and considered? This appears to be a profound and unnecessary centralisation of power that threatens to strip local democratically elected committees of their voice in matters that affect their communities’ daily lives.

Under this proposal, which is set out in Amendment 179A—it contains a proposed new section headed “Licence applications of potential strategic importance”—local London licensing authorities, such as borough councils, would legally be required to notify the GLA of applications for the sale of alcohol, regulated entertainment or late-night refreshment. A further proposal grants the Mayor of London the power, in effect, to veto or override the decisions of these local authorities. So if a borough council decides to grant or reject a licence, that decision is suspended and has no effect until the mayor decides whether to intervene. This is allegedly the devolution Bill, but I am yet to be convinced that it has any relationship to devolution; this is the imposition of top-down command structure over local democracy.

The additional problem is that, if there is a veto and it is called in by the mayor, how quickly will the mayor decide? What is the democratic way in which that will be decided? Is it just the mayor in his or her office making a decision, or will it go to a scrutiny committee for discussion first? Will there be an open and transparent hearing where the local borough council—or several local borough councils, if it is something that affects several of them—can come and explain its decision? Will the mayor have to explain why it has been called in? A lot here is unsatisfactory, to say the least. I ask myself: who is best placed to make a judgment about licence applications, which can have significant effects on people’s daily lives? Is it those who live there and their elected representatives, or is it the mayor of 7 million or 8 million people who says, “Actually, I know best. This is important for business, so hard luck if it affects your daily life”? That is the risk in this.

In the end, this group of amendments is unsatisfactory until we know the definition of “strategic importance” and the methods that will be used for decision-making. For those reasons, I hope the Minister will think again and reconsider. I understand why, if it is a significant application that will affect large parts of London, you would want a mayoral authority to take that decision. But I would want to know how that is defined and how that decision will be taken in a public setting, with the ability for people to have their voices heard and an appeal process.

[Baroness Dacres of Lewisham (Lab)]

My Lords, I am a directly elected mayor of a London borough with a licensing authority and responsibility. I want to speak in favour of and welcome this amendment. The key word is “strategic”. It is important that we recognise that London’s nightlife and hospitality industries are essential to Britain’s economy. We need to support them; they bring more than 1.4 million jobs to the capital and generate £46 billion in economic activity.

Giving the mayor new powers over strategic licences, including the power to call in and decide strategically on those applications, could be important for the future. Different authorities will vary in how they approach their licensing. Of course, there needs to be that relationship between the local authorities and the Mayor of London—whoever that may be, now or in the future—to be able to listen and recognise, and to have that overarching strategic view of what the licensing is being applied for. We do not live within administrative boundaries, so if something is across different authorities and one side believes that a licence should be granted and another does not, there needs to be some sort of arbitrator to see the overall benefit of bringing that position forward and to say either, “Yes, it is strategically important for London” or, “No, it is not”.