English Devolution and Community Empowerment Bill

Lord Freyberg Excerpts
Lord Ravensdale Portrait Lord Ravensdale (CB)
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My Lords, I declare my interest as a chief engineer working for AtkinsRéalis. My Amendment 3 would make a simple change but it highlights something fundamental to the Bill, so I want to spend a bit more time going through it than that single-word change would imply.

In looking through the areas of competence, energy is conspicuous by its absence, given that it will be a central challenge for the country—and, indeed, the mission of the Government—in the coming years. I shall use the Midlands region, where I live, as an example; of course, the first energy transition really started in the Midlands. I recently visited the Science Museum down the road, where there is an excellent example of the Boulton and Watt steam engine, which was brought into use in Birmingham and started to turbocharge the demand for coal and the first energy transition from biomass to fossil fuels.

That was a locally led transition, of course, but today, the Midlands remains the industrial heartland of the UK. We have so many energy-intensive users and heavy manufacturing, ranging from nuclear reactors and aero engines to trains, excavators and cars. As a region, we want to help lead the latest energy transition, as articulated in the recent Midlands Engine’s White Paper on energy security; I chaired the task force to produce that.

For a number of years, I have been making the case that, to date, the energy transition has been delivered in a top-down fashion. We have had many welcome developments, such as the formation of the NESO—the National Energy System Operator—but there is still a sense that this is something being done to communities, rather than bringing them along on the journey. No doubt progress is being made on the regional planning for the local power plant through Great British Energy, but we are not yet in a place where we have a fully joined-up governance system that marries up the necessary top-down view of the energy system and the critical bottom-up view that informs it.

Why is it important to drive the transition locally? First, I have already mentioned bringing local communities along on the journey. We are talking about significant changes to buildings, including changes in how we heat and insulate them, and changes to both grid architecture and next-generation charging. All this will be much more effective if communities are helping to drive this themselves and seeing those benefits.

Secondly, local areas have the knowledge of how best to implement the energy transition. For example, they know their local housing stock best. They know which technologies are best for future heating solutions, whether that means district heating or heat pumps. They know where the grid, the charging and the local generation is.

That feeds into my final point, on costs. The cost of the energy transition is getting significant attention at the moment, but the benefits for the Government here are the cost savings possible with a locally led approach. Billions in savings are possible if the most appropriate solution is brought forward for local areas, using local knowledge rather than one-size-fits-all. Regions and authorities are recognising this and taking action, but the Government need to drive this approach forward and avoid the patchwork nature referred to in our debate on the previous group.

What is needed is proper energy planning, at a local level, which then feeds up into regional plans and, ultimately, into the spatial strategic energy plan for the UK that the NESO is producing. That is when we will have a transition where we bring in all the expertise at a local level, which means the most efficient solutions at the lowest cost. There is an opportunity here for the Government to recognise, in the areas of competence, the centrality of energy to what strategic authorities need to deliver; this would ensure that strategic authorities are delivering on energy for their regions. The Government could use that to define how a bottom-up governance system for energy could work, how that might flow up into the spatial strategic energy plan, how that will interface with GBE and NESO, and so on.

I was grateful to meet the Minister last week. We discussed how paragraph (a) refers to “transport and local infrastructure” and how that is slightly misleading, in that it may give the impression of a focus on transport. The other benefit of this amendment is that it would clarify that first part of Clause 2 and provide clarity in the language on what strategic authorities are trying to deliver. With that, I look forward to hearing from the Minister.

Lord Freyberg Portrait Lord Freyberg (CB)
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My Lords, I declare my interest as a visual artist. Amendment 4 in my name is a small but important clarifying amendment. It simply adds the words “including through tourism” to paragraph (d) of Clause 2, which already defines “economic development and regeneration” as a core “area of competence” for strategic authorities. This reflects the Local Government Association’s view that tourism should be explicitly recognised in the Bill rather than left implicit.

Tourism is not a marginal activity; it is one of the principal ways in which economic development and regeneration happen in practice. It supports local jobs, sustains town centres, underpins cultural and heritage assets and brings external spending directly into communities. In many places, particularly outside the large cities, it is the economic driver.

I have deliberately not proposed tourism as a stand-alone category nor sought to incorporate it into the important Amendment 6 tabled by the noble Earl, Lord Clancarty, to which I have added my name. His amendment rightly strengthens the strategic recognition of the arts, heritage and creative industries. My amendment is narrower and more operational. It simply makes it clear that tourism sits within economic development and regeneration, which is how local authorities already understand and deliver it in practice.

Too often, tourism is grouped alongside the arts and creative industries in local authority structures, where its scale and commercial focus can unintentionally shape priorities and funding conversations that are not directly about culture itself. Placing tourism clearly within economic development helps to maintain that distinction while allowing cultural policy to retain its own strategic clarity. This matters particularly in the context of the Government’s emerging work on a visitor or tourism levy. Even at modest levels, published estimates suggest that such a levy could raise hundreds of millions of pounds a year in England and potentially over £1 billion annually if applied more widely—sums that would exceed Arts Council England’s entire annual capital budget and be comparable in scale to a decade of lost local authority cultural investment.

In the Cultural Policy Unit’s helpful paper A City Tourism Chargethe noble Earl, Lord Clancarty, will no doubt develop this point further on Amendment 6, with which I entirely agree—there is a strong and well-evidenced case that a significant proportion of any such levy should be invested directly in cultural and heritage assets, which are often the very reason that people visit in the first place. For strategic authorities to play a meaningful role in shaping and deploying such tools, tourism needs to be clearly within scope. Without explicit inclusion, there is a risk that tourism falls between stools—assumed but not quite owned. This amendment provides clarity, not prescription, and I hope that the Minister will see it as a proportionate and helpful addition.

Lord Lansley Portrait Lord Lansley (Con)
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My Lords, I will speak on Amendment 8 in my name, which would have the effect of adding to the list of areas of competence in Clause 2 an additional paragraph (h), “community engagement and empowerment”. Noble Lords would not be surprised by the suggestion that this should be designated as one of the areas of competence of strategic authorities and mayors, as the clue is in the Title: the Bill is about community empowerment, and community engagement is instrumental to the achievement of community empowerment. It is therefore one of the areas of competence for mayors.

This led me to thinking about what the Government are trying to achieve by listing the areas of competence—let us understand that and then we can decide what it is sensible to put into the list. As it happens, the White Paper was somewhat more helpful than the Bill itself in this respect, since quite clearly what is intended, as the White Paper puts it, is that this list should comprise

“areas where Strategic Authorities should have a mandate to act strategically to drive growth as well as support the shaping of public services, where strategic level coordination adds value”.

I am looking at that and thinking that “competence” is not necessarily the right word for this; perhaps it is “responsibility”. Let us not worry about the word, but let us at least understand what the Government are trying to achieve. Then I realised that, of course, the point is that they have listed seven because subsequently there is an intention to have up to seven commissioners. Is the answer, “Well, there just has to be seven”? I do not think we need constrain ourselves in that regard.

I then thought that perhaps these are listed because they are the areas of functional responsibility where additional functions are provided by the Bill at a later stage, but when one looks at the functions of mayors, six are the subject of additional functional responsibilities and powers itemised later in the Bill. Environment and climate change is left out but is none the less an area of competence, so we are clearly not talking just about what the Bill adds to mayors by way of responsibilities; we are talking about what mayoral strategic authorities should be engaged with to drive growth, to create social cohesion and to shape public services.

It seems to me, therefore, that there are a number of additions and no problem about how many, as long as they are genuinely representative of the areas of competence—meaning, responsibility and functional powers that are available to mayoral strategic authorities. It seems to me—this will save me getting up and saying anything more on the next two groups—that both Amendments 6 and 7 have merit, in that respect, in adding arts, cultural and creative industries on the one hand and definitely adding rural affairs on the other.

The number of commissioners should be determined in their own right, rather than by reference to the number of areas of competence. If there are more areas of competence than there are commissioners, that is not a problem. Interestingly, while listing the seven areas of competence as we have them in Clause 2, the devolution White Paper said:

“We are interested in where this list could be expanded now or in the future”.


I think that we can help the Government by expanding the list. I personally think that all three that I mentioned could be added without any demerits. They would then be more comprehensively illustrative of the range of functional activities that strategic authorities should be engaged in, in order to achieve maximum growth, as the noble Lord, Lord Freyberg, quite rightly illustrated by reference to tourism—how they can promote growth, shape public services and improve the circumstances for the populations that they serve.

From my point of view, community engagement and empowerment is central to the delivery of many of these. I have no intention that community engagement and empowerment should be the responsibility of a commissioner. It should be the responsibility of the mayor and, of course, it is a cross-cutting area of competence. I can see no reason why one would leave it out, since it is instrumental to the achievement of the objectives.

I shall finish with just one question to the Minister, which I am perfectly happy to take up with her at a later stage. If it is indeed the Government’s belief that this list may be expanded, either

“now or in the future”,

as the White Paper said, where is the power to add to this list? I cannot find such a power. It seems to me that on the face of it there should be such a power. Even if the Government are not persuaded today, clearly in the future, if, for example, using later powers, the mayors of established mayoral strategic authorities were to make proposals for changes to the Secretary of State and acquire additional functional responsibilities, this may be in a new area of competence, but where is the ability to put that into the legislation? I hope that the Minister may, at this or a later stage, agree that we should add an order-making power at that point.

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I urge my noble friend to include these important and world-renowned sectors—consider Liverpool’s film success at the Golden Globes recently—as an area of competence for strategic authorities in their own right. I know this would be welcomed and optimised by strategic authorities across England and beyond.
Lord Freyberg Portrait Lord Freyberg (CB)
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My Lords, I will speak briefly to support Amendment 6, to which I have added my name, and to express my full agreement with the case made by the noble Earl, Lord Clancarty. I also support Amendment 10 in the name of the noble Baroness, Lady Prashar. Both amendments address a clear omission in the Bill by placing the arts, culture and creative industries, cultural services and heritage explicitly within the areas of competence of strategic authorities, precisely where local government, the Local Government Association and the sector itself understand them to sit. Amendment 51, also in the noble Earl’s name, provides the necessary consequential provision to ensure that this competence can operate coherently in practice. Together, these amendments bring clarity, not complication, and I strongly support them.

Viscount Colville of Culross Portrait Viscount Colville of Culross (CB)
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My Lords, I speak in support of Amendments 6 in the name of my noble friend Lord Clancarty and Amendment 10 in the name of my noble friend Lady Prashar. I have spoken to a number of people in local government and become convinced that the new strategic authorities could benefit their regions if they had competence over the heritage and cultural sector.

Noble Lords have only to look at the catastrophic situation in the arts and cultural sector in the West Midlands to understand their importance. Birmingham has reduced the funding of arts in the city from £10 million in 2010 to a mere £1.1 million in 2024-26. In 2015, when the first big cuts were announced, they were in part because the political dysfunction of the city council persuaded the Arts Council to redirect funds, with a terrible effect on the city’s cultural and heritage life. Since then, the crisis has continued. The result of this long decline in funding was that in 2024 the city council signed off 100% reductions to funding for some of the most internationally recognised city institutions—the CBSO, Birmingham Rep, the Birmingham Royal Ballet, the Ikon Gallery, Fabric dance and dozens of community cultural organisations; the list goes on.

Some of these cuts have led to entrepreneurial responses by the city’s cultural sector. For instance, John Crabtree at the Birmingham Hippodrome Theatre has put on a more commercial and popular offer that has helped to stabilise the Birmingham Royal Ballet, which is also housed there. The Mayor of the West Midlands, who has strategic authority over the region but does not have legal competence for the cultural sector, has been able to direct some financial support through the regional authority’s cultural leadership board. It has managed to use money left over from the underspend on the Commonwealth Games and wider devolution funding to channel money to at least some of the most important cultural bodies in the city.

However, all these payments are one-off and do not replace longer-term core funding. They are not able to reach many smaller community cultural bodies, which have subsequently closed. In a city where there is huge concern about youth crime, that seems to be a retrograde and regrettable step. Imagine how much more effective the authority could have been if it had a statutory board to oversee and direct more extensive funds to the cultural sector across the region. I would hope that the establishment of a statutory heritage board in the West Midlands Combined Authority, with constituent authorities as members, would bring stability and greater funding to the sector across the region. In the process, that would allow local and national funding bodies to release money to the region and attract private philanthropy.

The acceptance of Amendment 6 would allow this competence and support for the cultural sector and the creative industries. As many other noble Lords have said, the heritage sector is so important for bringing together communities in a region, for giving them a sense of identity and for attracting tourism into the area. I ask the Minister, with her impressive career in local government, to appreciate how important such an additional competency could be in boosting regional development and cohesion.

English Devolution and Community Empowerment Bill

Lord Freyberg Excerpts
Earl of Clancarty Portrait The Earl of Clancarty (CB)
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My Lords, I will be quite brief and will make a point of principle to start with. If something is important enough to be an additional area of competence, it should have a dedicated commissioner to go with it, which is in line with what the Government have done so far. I say that at the outset.

The noble Lord, Lord Bassam, has given us an intriguing, rather creative amendment in terms of flexibility, but I have a couple of concerns. I know that the noble Lord is an enlightened individual arts-wise, who I am sure would like to see—like me—the arts, culture and heritage thrive in the new strategic areas. But, as the noble Lord, Lord Parkinson of Whitley Bay, and I pointed out last week in the debate on my Amendment 6, not all councils are quite so enlightened. Even if every mayor was conscientious enough today to ensure that their strategic authority did everything it could for the arts, culture and heritage—I say this simply as an example of an area of concern rather than competence—there is no guarantee that those who follow would have the same commitment unless there was a statutory commitment. This is very much in line with what the noble Baroness, Lady Willis of Summertown, was saying earlier. I very much support Amendment 51A in her name, and the other amendments that she proposed as well.

Lord Freyberg Portrait Lord Freyberg (CB)
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My Lords, I will briefly support the amendments in this group that seek to remove the cap on the number of commissioners and the appointment of special advisers. In doing so, I restate my support for Amendments 6, 10 and 51 in the name of the noble Earl, Lord Clancarty, and the noble Baroness, Lady Prashar, to add the arts and culture as an area of competence, which would allow a modest increase in the number of commissioners from seven to eight.

I fully recognise that the Government wish to maintain a coherent and settled devolution framework, to limit additional costs that such appointments would incur and to exercise caution around unelected roles. Here I entirely take the point made by the noble Lord, Lord Shipley, and I look forward to hearing the Minister’s answers to those numerous and very important questions.

I also accept the argument that further powers may be pursued within the existing areas of competence. That said, the question here is one of governance rather than architecture. A small degree of flexibility in the commissional model, as the noble Lords, Lord Bassam and Lord Bach, have argued for, would allow mayors to organise their leadership teams and their advisers in ways that reflect local priorities and circumstances without altering the framework itself.

Different regions face very different challenges: a dense metropolitan authority and a largely rural combined county authority may reasonably require different internal arrangements. For those reasons, I generally support these amendments and the flexibility they seek to introduce.

Lord Jamieson Portrait Lord Jamieson (Con)
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My Lords, we have had an interesting debate. I thank all noble Lords who have participated. It does appear to be the first one today where we are not quite in agreement on things. I assure my noble friend Lord Trenchard that we share his concerns about appointing unelected commissioners to roles that have real political power. However, before I go on to that, this raises an important and enduring question about how leadership is accountable and the flexibility to operate within a system that is devolved.

At its heart, this debate returns to the principles of devolution. It is about not just transferring powers from the centre to the local level but about who exercises those powers. It is about how they are held to account and how clearly responsibility is understood by the public whom those institutions are designed to serve.

On the amendments, while the noble Lord, Lord Bach, made a good case, we have concerns about commissioners holding responsibility for multiple areas of confidence because there is a risk that it could reduce accountability, concentrating authority into too few hands and blurring the lines of responsibility, making it harder for the public to discern who is ultimately answerable for decisions—there may be cases that need further thought in this area. I also accept the noble Lord’s points about police authorities. With the recent announcement in the other place, can the Minister say whether that is being taken into account in the devolution Bill or, even better, whether that announcement is going to take account of the devolution Bill? That is rather important.

On the amendments tabled by the noble Lord, Lord Bassam of Brighton, devolution works best when responsibilities are clear, visible and capable of effective scrutiny. I have a real concern here, which has been shared by the noble Lord, Lord Shipley. First, I will talk about commissioners. What is the definition of a commissioner? Working in local government, when you say that the commissioners are coming in, while I personally am not used to a failing council, normally you send them in after a best value inspection when one is failing. We have had this issue several times in the devolution Bill, and definitions and consistency of definitions would be helpful.

However, the real concern about commissioners is that we seem to have an expanding strategy. The Bill talks about seven but now we have amendments that talk about political advisers, special advisers and more deputy mayors. My focus in local government is value for money. Local government and mayors should be about delivering services to residents. They should not be about creating an unelected bureaucracy that is appointed and risks political cronyism. The noble Lord, Lord Shipley, also raised a number of practical issues such as whether when the mayor resigns all the commissioners go and you lose all that knowledge and so forth. I will not go on to those again, because that would be unnecessary repetition, but we have a real concern.

A number of noble Lords raised an issue around whether we can have commissioners for specific areas. I have sympathy with that, but they do not have to be commissioners. We are talking about political leads for certain areas. There is no reason why an elected councillor cannot be a political lead, whether it is for rural affairs, the environment, culture and so forth. I do not think that we have to focus on commissioners there—that can be a political lead.

English Devolution and Community Empowerment Bill

Lord Freyberg Excerpts
Baroness Janke Portrait Baroness Janke (LD)
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My Lords, I wish to speak to Amendment 196D, which would place a duty on strategic authorities to work with local and community-based bodies when exercising their functions. Devolving powers to the level of the people whom they affect means that effective devolution depends not only on transferring powers from Whitehall but on ensuring that those powers are exercised in partnership with the communities they affect. Without an explicit duty to work with community-based bodies, there is a risk that decision-making becomes remote, technocratic and insufficiently grounded in local reality. This amendment would ensure that parish and town councils are treated not as an afterthought but as partners in governance, helping strategic authorities to understand local conditions, priorities and constraints before they are implemented.

Voluntary and community sector organisations also play a critical role in the delivery of local support and preventive services. They are often hubs of energetic volunteers—people who want both to be involved in their local communities and to bring enthusiasm, energy and drive to local life. Following on from the story of the noble Lord, Lord Bassam, when I was a member of a community council on the west coast of Scotland, volunteers and members of those communities persuaded the mighty Strathclyde Regional Council to support a town-twinning project and fund it. So you can find examples of this kind of thing all over the country.

I believe that, in all of the powers and strategic aims of this Bill, the key roles played by town and parish councils are forgotten; in fact, the Bill barely mentions them. Parish and town councils are key players in local communities. They are closest to the ground and most responsive to the day-to-day needs of communities. This Bill must contain a statutory obligation to work with the most local and community-rooted bodies—parish councils—as well as the other essential local groups and agencies that are involved in delivering services at a local level.

Lord Freyberg Portrait Lord Freyberg (CB)
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My Lords, I support Amendment 100 in the name of the noble Earl, Lord Clancarty, to which I have added my name, and Amendment 101 in the name of the noble Lord, Lord Ravensdale.

If the arts, culture and heritage are rightly recognised as an area of competence, as the noble Earl argued persuasively they should be, it follows logically that they should also be recognised as a basis for collaboration. Amendment 100 would simply make that explicit, placing culture alongside economic and social well-being as something on which mayors may work together, rather than treating it as incidental or discretionary.

I understand, of course, that the Bill currently frames collaboration as applying between neighbouring strategic authorities. I acknowledge that intention, but I would gently suggest that culture does not always conform neatly to a geography. Cultural ecosystems are interdependent in ways that often cut across administrative boundaries and sometimes beyond immediate neighbours; that is not an argument against the structure of the Bill but a reflection of how culture functions on the ground.

The noble Earl, Lord Clancarty, spoke powerfully about cultural ecosystems, and I agree with him entirely. They are both geographically and economically interdependent. Grass-roots venues feed major institutions. Studios, rehearsal spaces and local festivals sustain the pipeline of skills on which national and international success depends. As is well known, cultural infrastructure —including libraries, museums, theatres, music venues, studios and heritage sites—acts as a form of civic glue, regenerating high streets, anchoring communities and driving wider economic activity.

We already see good practice emerging. Manchester and Liverpool, for example, have used accommodation-based visitor charges through business improvement districts to reinvest in culture, the public realm and visitor services. Although these schemes are imperfect, they demonstrate how locally controlled funding can support cultural ecosystems in a way that aligns the interests of residents, visitors and the hospitality sector. In that context, I very much look forward to seeing how the tourism levy evolves and how it can best support this kind of joined-up cultural ambition.