English Devolution and Community Empowerment Bill

David Simmonds Excerpts

Tuesday 25th November 2025 Commons Chamber

[Miatta Fahnbulleh]

I will make some progress.

Finally, we have built on the amendments made in Committee to the local audit provisions. Our further amendments contain technical provisions that broaden the existing regulation-making powers relating to the payment of allowances to audit committee members to include expenses, gratuities or pensions to members of audit committees across all local bodies within the audit framework. Broadening this power will give clarity to the sector that remuneration can apply to all audit committee members, whether they are independent or not, across all relevant authorities, including the Greater London Authority.

The Bill originally required that the Mayor of London and the Assembly jointly appointed an audit committee. However, following discussions on its particular governance arrangements, it has become clear that it would be more appropriate for this power to rest solely with the Mayor of London, consistent with other audit provisions in the Local Audit and Accountability Act 2014. This change will enable the mayor to appoint an audit committee that includes at least one independent member, in line with the requirements set out in the Bill. I thank the GLA for its constructive engagement with my officials on these important audit measures in the Bill. It is vital that our reforms work in practice for all authorities within the local audit framework.

The Bill will help to build and rebuild local government, fix our broken local audit system and truly empower communities. Our amendments build on these ambitions and ensure that the Bill works as we intended. I commend them to the House.

[David Simmonds (Ruislip, Northwood and Pinner) (Con)]

On a point of order, Madam Deputy Speaker. May I seek your guidance? I know that this issue has been exercising Mr Speaker. Yesterday, at topical questions to the Ministry of Housing, Communities and Local Government, in response to a question asked by the hon. Member for South Shields (Emma Lewell) about a tourism tax, we were told by the Secretary of State:

“My hon. Friend tempts me to venture into terrain that is properly within the decision-making jurisdiction of the Chancellor of the Exchequer. She only has to wait 48 hours to find out what the Chancellor has decided. I suggest that she ask the Chancellor on Wednesday, rather than me this afternoon.”—[Official Report, 24 November 2025; Vol. 776, c. 19.]

During debate on the Bill yesterday, when asked the same question by the hon. Members for Vauxhall and Camberwell Green (Florence Eshalomi) and for Uxbridge and South Ruislip (Danny Beales), the Under-Secretary of State for Housing, Communities and Local Government, the hon. Member for Peckham (Miatta Fahnbulleh), replied:

“They have made an impassioned and effective case, but as I said in my opening remarks, I will not pre-empt the Chancellor. Tax decisions are for the Chancellor, and we will have a Budget in 48 hours.”—[Official Report, 24 November 2025; Vol. 776, c. 155.]

Madam Deputy Speaker, I know that you and Mr Speaker have been very exercised by the number of leaks, which the former chief economist at the Bank of England described as

“the single biggest reason why growth has flatlined”.

You will therefore be concerned, as the Conservatives are, that a short while ago the Government put out a press release on their website saying that mayors will be given these new powers, before that was briefed to the House and after repeated comments to the House that Ministers would not answer that question. What further measures are open to you, Madam Deputy Speaker, and to Mr Speaker to ensure that these kinds of damaging leaks, which are undermining our economy and particularly hitting our tourism and hospitality businesses hard, can stop?

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[Madam Deputy Speaker (Ms Nusrat Ghani)]

Colleagues who have contributed to the debate should be here for the wind-ups. That is a notice. I call the shadow Minister.

[David Simmonds]

I open by drawing the attention of the House to my entry in the Register of Members’ Financial Interests. I hold some voluntary roles in local government. I place on record my particular thanks to my hon. Friends the Members for Hamble Valley (Paul Holmes) and for Broxbourne (Lewis Cocking), who served with such distinction on the Bill Committee.

Local government is the most efficient part of the public sector. It is uniquely democratically accountable among our public services. It is also uniquely financial constrained by the requirement for council budgets to balance in-year. We know that the average local authority delivers over 800 different services, which range from public health and child protection to housing the most vulnerable, trading standards, markets, parking and road maintenance. Councils empty the bins, recycle the waste, lend books and care for the elderly, but Governments rarely rise or fall based on what happens in the local government sector. It is not the most dramatic or glamorous part of our state, but day to day, as contributions from right hon. and hon. Members across the Chamber have reflected, it probably has the most important impact in our constituents’ lives.

As we heard in Committee, and as we have heard in the amendments and in this debate, our local government is under unprecedented pressure due to this Government’s poor decisions. On the track record of my party in office, we saw local authorities using their discretion but for the most part seeking to keep council tax low, with the additional revenue from projects such as the new homes bonus, council tax freeze grant and the approach to business rate grant being implemented to support local businesses and local communities.

Today, with few exceptions across the sector, we see local authorities facing the maximum possible council tax rises, the maximum possible business rate increases and the maximum possible increases in fees and charges, against a backdrop where housing delivery, supposedly the Government’s top priority, has collapsed, despite a legacy of 1.5 million new homes—their target for the whole of the Parliament—with planning permission already granted. All this green belt-grey belt nonsense, which has caused such concern and anxiety to Members and our constituents, is entirely irrelevant. They already have an entire Parliament’s supply of homes with planning consent ready to build. The jobs tax has left our local authorities worse off by £1.5 billion net. It has driven up the cost of almost every local government service, from the care of the elderly and vulnerable children to the day-to-day maintenance of our roads and our environment.

Tonight, what we have before us is this Government’s botched and incoherent restructuring, with no clear vision of what local government in England is even for. When we consider the matters that we will press to a Division, new clause 69 on election cancellations and new clause 80 on statutory notices are among a very extensive list of options. We have heard from one or two Members that the retention of the committee system was democratically approved locally. Although measures adopting the Opposition’s proposals on councillors’ addresses make some minor improvements to the Bill, the cancellation of local elections is a clear example of a mess of the Government’s making.We support our local colleagues in making the best of the very difficult set of decisions that they have to take. However, having been told by Ministers—as the Opposition did when in office—that elections to local authorities that were due to be abolished would be cancelled, that was not what the Government then did. They simply deferred those elections for 12 months, making the waste of taxpayers’ money and the concern of local residents even greater, while raising the prospect of a lack of accountability as this important process goes through.

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[Siân Berry]

The Minister failed to tell us how the tourist tax would be brought forward in legislation. With the announcement coming yesterday, and after all the opportunities they had in Committee and in debates on the Floor of the House, does the hon. Gentleman think that this was merely a case of failing to get the Chancellor’s attention?

[David Simmonds]

The hon. Member puts to me whether it was simply a failure to get the Chancellor’s attention, but clearly the Chancellor has been busy at every possible opportunity briefing the press about things that may or may not be in the upcoming Budget. We have seen the impact that that has had: driving up Government borrowing costs; driving down business confidence; and driving unemployment up, every single month since this Government took office. Those political briefings have real-world consequences for our constituents’ livelihoods.

For all of those businessowners in the hospitality and tourism sector who have been seeking to make decisions, relying on what they have heard Minsters tell the House, to discover in a press release that this new tax is due to be imposed on them despite the previous assurances of the Tourism Minister, is just one of the many nails in the coffin of the British economy represented by the Bill and this Government’s actions.

In conclusion, when we look at the Bill, we see legislation that makes a complete mess of local democracy: elections cancelled and then deferred; announcements of new mayors that do not make it through to the final announcements about new structures. The Bill takes powers away from communities and gives them to mayors who, as we heard earlier in the case of Surrey, may not materialise at all. It devolves nothing of any significance closer to our constituents and seeks to make our elected local councillor brethren simply the hosts of talking shops, rather than decision makers for their local community. Worst of all, despite the Government’s occasionally lofty rhetoric, the Bill abolishes 90% of the representation of shire England at the stroke of a bureaucrat’s pen. Where is the voice for our constituents in local government under this centralising Labour Government?

[Miatta Fahnbulleh]

With the leave of the House, I will respond to the thoughtful, constructive and robust interventions from hon. Members across the House.

I will start with a theme that has been raised once again by the hon. Members for Guildford (Zöe Franklin) and for Ruislip, Northwood and Pinner (David Simmonds) —that this is a centralising Bill that seeks to take power away from communities and impose on them. I completely and utterly reject that idea. I made this point yesterday, and I will labour it again today: this Bill represents the biggest transfer of power from Westminster and Whitehall to our regions, local authorities and communities. The Government believe that we change the country by putting power in the hands of people who know their patch. That is the principle behind the Bill, and that is what we are determined to deliver.

Let me address the point on local election delays, which has been raised head-on in new clause 69. We understand the democratic necessity to hold elections. People have the right to vote—a right that we absolutely support and will absolutely protect. Labour is up for elections as much as any other party, and our clear intention is to press ahead with elections next year. The decision to postpone elections is never taken lightly, and was not taken lightly when it was made. It is a decision that we will always take with great caution, as it is one that we want to avoid.

However, we cannot accept the new clause, because it is neither rational nor reasonable. It does not allow for extenuating circumstances at a national level, such as a pandemic, or for exceptional circumstances locally that create a challenge for holding elections. While we are keen and determined to press ahead with elections, we are the Government of the day, so we will always take a considered and reasonable approach to this matter.

I turn to the point raised in new clause 17 by the hon. Member for Guildford on the funding of strategic authorities. The hon. Lady was right to highlight the pressure that local government is under. However, I would point out—again, I note the complete cheek of the Opposition here—that that is a consequence of 14 years of austerity and under-investment. The hon. Member for Ruislip, Northwood and Pinner talks about the plight of local government, yet fails to recognise the terrible inheritance that his party left—the huge legacy of denuding and undermining local government that we are now trying to rectify. In 2025-26, the local government finance settlement provided £69 billion for councils—a 6.8% increase in the core spending power for local government. We are moving to multi-year budgets, consolidated funding and a fair funding review, all in order to reverse the decline and under-investment of the previous Government.

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[David Simmonds]

I will speak briefly. There is a high degree of consensus on some of the objectives that the Government have set out. We share the ambition to deliver more homes, and we share the ambition on economic growth and devolution. However, the alternative stimulants that the Government have chosen essentially involve more bureaucracy, more centralisation and new taxes, all of which will stand in the way of the delivery of those ambitions.

We, as an Opposition, are very clear about this. The things that our communities, our constituents and our local businesses want and need are not contained in the Bill. It cancels elections, it reduces local democracy, it centralises power with a swathe of new ministerial diktats, it raises taxes through an unwanted, unbriefed new tourism tax, and it opens the door to new unlimited mayoral levies that can be used at ministerial fiat, not on the say-so of local residents. It is a let-down for those who hoped to support it and a betrayal of the ambition of those who support our local democracy. We will oppose the Bill’s Third Reading.

Question put, That the Bill be now read the Third time.