English Devolution and Community Empowerment Bill (Twelfth sitting)

Manuela Perteghella Excerpts

Committee stage
Tuesday 28th October 2025 Public Bill Committees

[Manuela Perteghella (Stratford-on-Avon) (LD)]

I beg to move, That the clause be read a Second time.

[The Chair]

With this it will be convenient to discuss new clause 15—Independent review of the adequacy of scrutiny and accountability of combined authorities and proposed strategic authorities—

“(1) Within six months of the passing of this Act, the Secretary of State must appoint an independent panel to review the adequacy of scrutiny and accountability of—

(a) mayoral combined authorities designated under section 106B of LDEDCA 2009,

(b) mayoral combined county authorities designated under section 25A of LURA 2023, and

(c) the Greater London Authority.

(2) The independent panel may request information from existing combined authorities and the Greater London Authority on the operation of their scrutiny and accountability arrangements.

(3) The independent panel must make a report to the Secretary of State on—

(a) the independence and effectiveness of scrutiny arrangements of combined authorities and the Greater London Authority;

(b) best and worst practice in scrutiny and accountability in combined authorities and the Greater London Authority;

(c) lessons for the future development of scrutiny and accountability for those bodies designated as strategic authorities; and

(d) lessons for the future development of strategic authorities under this Act.

(4) A Report under subsection (3) must be made within one year beginning on the day on which this Act is passed.”

This new clause would provide for a review on the adequacy of strategic authorities’ scrutiny and accountability arrangements and to report within one year of Royal Assent.

[Manuela Perteghella]

It is a pleasure to serve under your chairship, Dame Siobhain. The new clause would place a legal duty on mayors of combined authorities and combined county authorities to be transparent about how public money is spent. It is a simple but powerful measure designed to build public trust in the devolved government that the Bill creates. The mayor would have a legal duty to ensure that their financial information is not just published, but accessible, clear and understandable to the public. The new clause would also require mayors to publish a policy explaining how their authority will engage with local communities on spending priorities and major financial decisions, and to review the policy regularly. That engagement could include citizens budget forums, public consultations, participatory budgeting sessions or even budget roadshows travelling around the authority area.

Lack of transparency in local finance can erode public trust and allow serious problems to build up unnoticed. In recent years, several councils and combined authorities have faced financial distress or even bankruptcy. Across the country, there is a sense that combined authorities are powerful but distant. They make big spending decisions, yet few people understand how the decisions are made. Transparency is the foundation of public confidence in local leadership. The new clause also aligns with the wider principle of good public finance management by supporting the work of all the committees and local auditors who depend on accessible financial information, while enforcing public sector accountability and ensuring that mayors and chief executives know that they must communicate clearly.

Some may argue that the new clause would place another duty on already busy mayors and combined authorities, but this is not about extra bureaucracy; it is about basic democratic accountability. Frankly, if a mayor’s office can manage hundreds of millions of pounds in its budgets, it can surely manage to explain where the money goes. Devolution should bring power closer to the people, and that must include the power to see, question and understand how public money is being used.

[Siân Berry (Brighton Pavilion) (Green)]

It is a pleasure to have you back in the Chair, Dame Siobhain. I will speak to my new clause 15, which proposes an independent review of the adequacy of scrutiny and accountability arrangements within six months of commencement. We have had plenty of debate in Committee about scrutiny and accountability of new strategic authorities and the larger new unitary authorities, but new clause 15 is solely about the mayoral combined authorities.

Given the scale of the powers on offer, the Bill is relatively light on scrutiny and consultation requirements. There are duties carried over from existing legislation relating to strategic authorities taking on the functions of, for example, fire and rescue authorities, and to the appointment of commissioners to whom strategic mayors would delegate functions, but quite honestly, only one new measure in the Bill adds to scrutiny over the carried over measures. That is clause 9 and schedule 3, about the termination of the commissioner role and a role for the overview and scrutiny committee to recommend dismissal. In the rest of the Bill, the underpinning of the scrutiny arrangements for these powerful new combined authorities will be derived from local councils, as established by the Local Government Act 2000, but I am yet to be convinced that such an underpinning will provide enough scrutiny and challenge of these powerful new bodies.

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[Miatta Fahnbulleh]

We acknowledge this is an area we want to strengthen. As I said in the last debate, we are working to make sure that we are taking in view the scrutiny models that we apply, including local public accounts committees and the models proposed by think-tanks and other organisations, in the context of the big reforms to the local audit and assurance framework we are driving through. I ask the Committee to give us time to do the work properly, so that we design something that is fit for purpose and aligned with the big reforms we are driving through. There is no resiling from the belief that we need to strengthen the arrangements. I put that on record and am happy to give those reassurances. Let us get on with the work of figuring out how we do that in the best possible way, by engaging with strategic authorities and critical stakeholders, rather than put in the Bill a requirement that may, in fact, slow the pace at which we are able to develop proposals. On that basis, I ask the hon. Member for Stratford-on-Avon to withdraw her new clause.

[Manuela Perteghella]

I beg to ask leave to withdraw the clause.

Clause, by leave, withdrawn.

New Clause 4

Funding for Local Authority governance reorganisation

“The Secretary of State has a duty to ensure that local authorities are adequately funded for any purposes relating to the reorganisation of cabinet governance structures that are required or enabled by this Act.”—(Vikki Slade.)

This new clause would require the Secretary of State to ensure funding is available for any rearranging of councils’ governance models.

Brought up, and read the First time.

[Vikki Slade]

I beg to move, That the clause be read a Second time.

New clause 4 requests funding for local authority governance reorganisation in situations where the Government are dictating that local authorities should change their governance model from a committee system to a cabinet system. I am sure that Members are tired of hearing my colleagues and me talk about the problems of funding in local government.

Funding is the fundamental challenge of local government, and I recognise that the Bill is trying to improve that by simplifying the system, but I put on record our absolute opposition to the requirement that all councils must be run on a leader and cabinet model. There is no evidence that local councils such as Sutton and Three Rivers are doing a bad job. There is no fundamental reason why they cannot carry on doing their job in the way that they are doing it, just as there is no requirement for our mayoral models to all be the same. We have already heard that the mayoralty of London is run differently from the Greater Manchester model, and that the upcoming strategic authorities will also be run differently. We are not creating a one-size-fits-all model, so why is there a need to control the committee system? It is seen to be fundamentally not working, but there is no evidence that that is the case.

We are also interested to know whether the Minister has looked into the issue—I believe she agreed to do so last week—of legacy committee systems such as those in Sheffield and Bristol, where a referendum has taken place to specifically choose that model. How will the Bill affect the decision making of people who have actively chosen that model?

The new clause relates to the situation where the Minister is going to prescribe the leader and cabinet model, yet those organisations do not have the funding to make the changes that they need to make for something that they have not selected to do and when they are not otherwise undergoing local government reorganisation. If local governments have no choice in how they administer themselves, and they are going to be required to amend to a new Government standard, it does not seem reasonable that they should shoulder the costs of a change that they have not asked for.

Some councils might also have been left off the devolution priority programme— Sutton and Richmond are not going to be involved in that—so they will not be getting the £1 million funding for capacity building that the Government promised to every local authority going through that devolution. The new clause makes a very simple request: for those areas to be funded.

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[Vikki Slade]

I completely agree with my hon. Friend—we have worked so hard together on this. I understand the situation with the finances, which is why new clause 43 is designed to impose a duty on local authorities to provide support to smaller organisations, some of which are brand new and will not exist until everyone is on this rush to provide them. I would like to press new clause 43 to a vote later, but on new clause 5, I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

New Clause 6

Councillors: proportional representation vote system

“(1) The Secretary of State may by regulations introduce a proportional representation vote system in elections of local authority councillors.

(2) The regulations in subsection (1) are subject to the affirmative procedure.”—(Manuela Perteghella.)

This new clause would allow the Secretary of State to introduce a proportional representation voting system for local authority councillors.

Brought up, and read the First time.

[Manuela Perteghella]

I beg to move, That the clause be read a Second time.

New clause 6 would allow the Secretary of State, given parliamentary approval, to introduce a proportional representation vote system in elections of local authority councillors, not just mayors and police and crime commissioners. Under first past the post, as the Committee will know all too well, local people are left feeling that it makes no difference who they vote for in local elections. We mentioned this earlier with mayors, but councillors too can be elected on a minority of the overall voting public. We should be able to feel that going to the polling station and casting a vote matters, and that we get to contribute to who makes key decisions about the management of our families’ social care, our children’s schools or keeping our streets clean. That is what the majority of people really care about. We have already discussed how first past the post does not allow for that, and was disastrous when introduced for mayoral elections.

Those of us who have been councillors know that too many local people have been left feeling frustrated and not properly represented by the people elected in their areas. As the Government want to see a fairer voting system for mayors and police and crime commissioners, why not go a step further and introduce a proportional representation voting system for all councillors? I look forward to hearing the Minister’s thoughts on that. If elected councillors are supposed to be elected representatives, we must make it so that they are elected in a representative way. I hope that the Minister can accept the new clause, because I cannot see why we are treating mayors and police and crime commissioners in one way, while forgetting local councillors in changes to the electoral system. If she cannot, we will press it to a vote.

[Siân Berry]

I very much support the new clause, and put my name to it to demonstrate that. I want to say a few words about why the new clause is so appropriate for the Bill. It would allow the Secretary of State by regulations to introduce proportional representation voting for local authority councillors. Importantly, the regulations would be subject to the affirmative procedure, so that Parliament would get its say.

This measure has precedent. As we will all recall, the electoral system for mayors was changed from the supplementary vote to first past the post via an amendment tabled by the then Government during Committee stage of the Elections Act 2022—it was not part of the Bill on Second Reading, and there was no wider consultation. There is obviously no recent precedent for changing the local government system for England, but the Scottish Government—at the time a Labour Government in coalition with the Liberal Democrats—changed the local elections to the single transferable vote through the Local Governance (Scotland) Act 2004. The Welsh Government, at the time a Labour minority Government, legislated to give councils the option of switching to the single transferable vote in the Local Government and Elections (Wales) Act 2021.

Under the new clause, the Secretary of State might decide to go for different degrees of change, after talking to people about what might be more appropriate. The alternative vote and the supplementary vote are very similar; they are both preferential systems that are very suited to single member positions. I think that that is why the Government have chosen to return to the supplementary vote for mayors. I would argue that the alternative vote is better, gives voters more choices and guarantees a majority through a process of consensus, but that is one of the options. My favourite is the single transferable vote—I am waiting for the interventions—because it is a bigger change.

However, for local government, because the single transferable vote is so suitable for multi-member constituencies, and because it is so simple for voters—people just choose their favourites, and the voting system works out the right consensus and the members who have the broadest support—it is an excellent system and ought to be considered. It may be very suitable for the larger unitaries, where more members per ward could be put together to make it work in a proportional fashion. However, the new clause would not mandate any of that; it would be for the Secretary of State to decide.

In January, in a debate in the House on proportional representation for general elections, I said this about the Bill:

“We have an opportunity, presented by imminent local government reorganisation—the creation of combined authorities and potentially very large councils—to shift to a more proportional system, potentially using multi-member wards and the single transferable vote. That is the system used in Northern Ireland and in the Republic of Ireland. It is incredibly simple for voters to cast their preferences. The election counts are extremely exciting…It delivers candidates based on consensus, not division…it delivers for many people”.

The real benefit—this has obvious benefits for Northern Ireland—is that it delivers

“not only hardworking representatives in the administration but people whose job it is to listen and represent them from opposition parties.”

For larger councils, that could really help, as I said in that debate, with

“the potential remoteness of the uber councils that are being talked about.”—[Official Report, 30 January 2025; Vol. 761, c. 469-470.]

If there are multi-member wards, ward councillors whose roles in the combined authorities pull them out of local areas could leave local responsibilities to their colleagues. Having a range of people represented at the local ward level would be so beneficial and I believe that needs looking at. We need to urgently consider that change for local government.

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[Miatta Fahnbulleh]

I thank hon. Members for the lengthy and robust debate on this issue. We all recognise that there is a need to continue evolving, improving and strengthening our democracy, but we do not believe that the new clause and the electoral reform proposal are the right answer. The Government have no plans to change the electoral system for local councils in England. We believe that first past the post is a clear way of electing representatives. It is well understood by voters, and, as pointed out by the hon. Member for Hamble Valley, provides a direct link and relationship between the member of the legislature or council and the local constituency. That model works well where we have collective decision making and collective systems of governance—that is quite distinct.

We had a debate on the changes that we are proposing for mayors and police and crime commissioners—the supplementary vote system—where there is a single executive position. We think that strengthening the democratic link in that way is appropriate and right in that context. We think that through the Bill we will have the right mechanism for the right type of representation, as presented through the mayor and the police and crime commissioner on the one hand, and councillors and MPs, which operate within a collective governance model through Parliament or councils. I ask the hon. Member for Stratford-on-Avon to withdraw the new clause—I am not sure that she will, but I will put the request.

[Manuela Perteghella]

I will not withdraw the new clause. I wish to press it to a vote.

Question put, That the clause be read a Second time.

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[Siân Berry]

Putting this duty on to individual smaller councils might be burdensome, but at a strategic authority level, collecting this information would seem to be really positive. As we have been discussing throughout the Committee, on many issues—land use, planning and support for community right to buy—there are levers for them to act. At a strategic authority level, it would be great to have some co-ordination—people from different councils getting together to find out how each of them is acting on this issue.

Let us not forget our aim here. We are talking about putting this issue within the health duty somewhat, and we know that time spent on allotments and other green spaces will reduce cardiovascular risk, improve mental health and lower people’s stress. We know that in areas where green space provision is better, men live three years longer and women nearly two years. We need to extend those benefits to the 20 million people who currently lack access to green space within a 15-minute walk, and allotments are some of the healthiest and most rewarding green spaces we can provide. The new clause is a path to more nature, more access to that nature, and improved public health.

[Manuela Perteghella]

Allotments are also about producing our own food, and developing skills in doing so, which is important. They are also social spaces, so they are good for social cohesion. Because of all those benefits, does the hon. Lady agree that at a strategic level, when there is a land use framework and planning, authorities can put in place spaces for allotments?

[Siân Berry]

Those are all excellent points that I could have made. Allotments cross many different policy areas and areas of benefit. My experience of allotments and community food growing projects of this kind is that they are social, but they are also multicultural—they are about sharing people’s experiences.

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[Manuela Perteghella]

I beg to move, That the clause be read a Second time.

[The Chair]

With this it will be convenient to discuss the following:

New clause 57—Consideration of existing adult skills provision—

“(1) A strategic authority has a duty to consider—

(a) existing education and training provision for persons aged 16 to 19 in its area, and

(b) existing higher education provision in its area

when carrying out any function conferred on it by virtue of Schedule 10 to this Act.

(2) The Secretary of State may issue guidance about how a strategic authority may comply with the duty under this section.”

This new clause would require strategic authorities to consider existing provision for 16 to 19 education and higher education in their area when exercising adult education functions.

New clause 58—Annual reporting on adult education funding—

“(1) A strategic authority exercising any function conferred on it by virtue of Schedule 10 of this Act must publish an annual report on its exercise of such functions.

(2) A report under this section must include—

(a) how a strategic authority has applied adult education funding to meet local skills needs;

(b) a summary of coordination arrangements with employer representative bodies and other skills providers within the authority;

(c) a summary of outcomes for adult learners and local employers regarding—

(i) learner achievement of qualifications and progression to employment or further learning,

(ii) employer satisfaction with the skills and capabilities of adult learners, and

(iii) the alignment between skills provision and identified local labour market needs.

(3) The Secretary of State may issue guidance about—

(a) any further content of, and

(b) publication of

reports under this section.”

This new clause would require Strategic Authorities to publish annual reports on their exercise of adult education functions, demonstrating how public funding has been deployed, coordination arrangements with local skills providers, and outcomes achieved for adult learners and employers.

[Manuela Perteghella]

These new clauses were tabled in the name of the Liberal Democrat spokesperson for universities and skills, my hon. Friend the Member for St Neots and Mid Cambridgeshire (Ian Sollom). As hon. Members might expect, therefore, they relate to the Bill’s provision for skills and adult education, which we debated when we were discussing clause 30 and schedule 10.

To set out the framework for this trio of new clauses about skills, it is important to stress that the Liberal Democrats support the devolution of skills, and we seek to refine the process to make sure that the provision works effectively. When I speak to my businesses, they tell me that skills are one of the major challenges, so we need local skills improvement plans to be as effective as possible. In combination, the new clauses will ensure that, when skills policy is devolved, there is proper governance, accountability and co-ordination mechanisms among the various bodies.

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[Miatta Fahnbulleh]

The English devolution White Paper set out clearly our proposals to strengthen the role of strategic authorities in local skills improvement plans and highlights the intention to use legislation and statutory guidance as appropriate to achieve that. As a Government, we remain completely committed to that position, and we intend to bring forward legislation to do precisely that.

We are not, however, just waiting for legislation; ahead of that, updated statutory guidance will set out how we expect strategic authorities and employer representative bodies to work together on the next round of local skills improvement plans. That will include a requirement for both parties to confirm whether they are content with the plan before it is submitted to the Secretary of State for approval. Where they do not agree, Skills England, acting on behalf of the Secretary of State, will help to resolve any issues. In that context, and given the direction of travel, I ask the hon. Member for Stratford-on-Avon to withdraw new clause 56, because it is not necessary.

On new clause 57, I point the hon. Member to schedule 10 of the Bill, in which strategic authorities will be under a duty to secure appropriate adult education provision in their area. That will include considering existing provision and provision of different types in the area; but, crucially, it also allows them to consider a broader range of factors than the new clause allows for. We know that in practice strategic authorities are already considering a wide range of local factors—including where the labour market is, and where current and future demand is—as they design, develop and drive forward their adult skills strategy.

[Manuela Perteghella]

I know they are already doing it, but making it statutory ensures that it actually happens and can be scrutinised—that is why we want to do that.

[Miatta Fahnbulleh]

The current devolution framework creates the basis by which effective execution of the powers that authorities have on adult skills will be driven forward. The legislative provisions exist; it is now in the doing. As a Department, we will both enable that working between strategic authorities and employers on the ground that I have talked about and, critically, make sure that we provide the tools that they need to strengthen their capability to do that well. It matters to us because effective skills, and developing the pipeline and the workforce to drive the economic change we want, are critical to delivering on housing and our warm homes plan. We are vested in ensuring that our strategic authorities have the tools that they require to do that and to do it incredibly well.

[Manuela Perteghella]

I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

Clause 72

Interpretation

[Miatta Fahnbulleh]

I beg to move amendment 243, in clause 72, page 73, line 15, at end insert—

“‘FRSA 2004’ means the Fire and Rescue Services Act 2004;”.

This would define the abbreviation “FRSA 2004” which is used in the Bill.