English Devolution and Community Empowerment Bill

Miatta Fahnbulleh Excerpts

Report stage
Tuesday 25th November 2025 Commons Chamber

[The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Miatta Fahnbulleh)]

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

[Madam Deputy Speaker (Caroline Nokes)]

With this it will be convenient to discuss the following:

Government new clause 46—Extension of general power of competence to English National Park authorities and the Broads Authority.

Government new clause 49—“National minimum standard” and “regulated licence”.

Government new clause 50—Standards relating to the grant of a regulated licence.

Government new clause 51—Standards relating to the suspension or revocation of a regulated licence.

Government new clause 52—Standards relating to the renewal of a regulated licence.

Government new clause 53—Further provision about standards.

Government new clause 54—Guidance.

Government new clause 55—Relationship with existing licensing legislation.

Government new clause 56—Regulations.

Government new clause 57—Interpretation.

New clause 1—Consent for local government restructuring—

‘(1) The Secretary of State may only make an order or regulations to create, change, or dissolve a strategic authority with the consent of all 6 constituent councils.

(2) The “constituent councils” are any county council, district council, town council or parish council.’

This new clause would mean local government restructuring could not take place without the consent of the constituent councils.

New clause 6—Local authority oversight over management of land of community value—

‘(1) A local authority is responsible for overseeing the management of land of community value in their area.

(2) If the relevant local authority identifies deliberate neglect or mismanagement of land of community value by its owner, the authority may—

(a) exercise compulsory purchase powers, or

(b) refuse planning changes in relation to the land.’

This new clause would require local authorities to oversee the management of land of community value in their area and enable them to exercise compulsory purchase powers in instances of mismanagement.

New clause 10—Community ownership fund—

‘(1) The Secretary of State must make regulations which establish a community ownership fund within six months of the passage of this Act.

(2) Regulations under subsection (1) are subject to the negative procedure.

(3) Regulations under subsection (1) must make provision for any strategic authority to apply for funding of up to £2 million to support any—

(a) voluntary and community organisation, or

(b) parish or town council,

to purchase of an assets of community value they determine is at risk in their area.’

This new clause would require the Secretary of State to establish a Community Ownership Fund to which strategic authorities may apply for funding.

Amendment (a) to new clause 10, at end insert—

‘(4) On the day on which regulations are first made under this section, the Secretary of State must lay before Parliament a report setting out—

(a) how a strategic authority can apply to the community ownership fund;

(b) how the community ownership fund is governed and administered;

(c) any other information which in the opinion of the Secretary of State assists strategic authorities and other persons in understanding the purposes of and application process for the community ownership fund; and

(d) a timetable for when applications to the fund may be submitted, and by when they should be responded to.’

New clause 11—Local public accounts committees—

‘(1) Within one year beginning on the day on which this Act is passed, the Secretary of State must by regulations make provision for the establishment of a public accounts committee in each mayoral strategic authority area (“a local public accounts committee”).

(2) Regulations made under this section must—

(a) make provision relating to the membership of local public accounts committees, including appointment; tenure; and arrangements for chairing of committees;

(b) make provision about support for local public accounts committees by the relevant local audit services;

(c) empower local public accounts committees to require the provision of information from all providers of public services in the mayoral strategic authority area;

(d) make provision about the functions of local public accounts committees, including the power of the committees to report on—

(i) the effectiveness with which mayoral strategic authorities exercise any of their functions;

(ii) the effectiveness with which any local partners exercise functions on behalf of the strategic mayoral authority.

(iii) the effectiveness with which any local partners collaborate with the mayoral strategic authority.

(3) For the purposes of this section, “local partner” has the meaning given in section 17B of the Levelling-up and Regeneration Act 2023 (as inserted by section 21 of this Act).”’

This new clause would require the introduction of Local Public Accounts Committees within one year of this Act coming into force. LPACs would ensure scrutiny and accountability across the whole of the local public service spending and activity.

New clause 12—Assets of negative community value—

‘In the Localism Act 2011, after section 92 insert—

“92A Assets of negative community value

(1) A building or other land in a local authority’s area is of negative community value if, in the opinion of the authority, the asset—

(a) has been the subject of a measurable and sustained increase in anti-social behaviour in the locality,

(b) has caused material disruption or harm to the amenity, cohesion, or wellbeing of the local community, or

(c) has been vacant or derelict for a continuous period of not less than three years, and during that period no meaningful attempt has been made by the owner of the asset to restore it to use.

(2) A local authority may maintain and publish a list of assets of negative community value in its area.

(3) Where a local authority has listed an asset of negative community value, the authority may—

(a) take such steps as may be prescribed by regulations to secure temporary management or community stewardship of the asset;

(b) invite community groups, charities, or other qualifying organisations to bring forward proposals for its use or stewardship;

(c) exercise such enforcement or compulsory acquisition powers as may be made available by regulations made pursuant to subsection (5).

(4) The Secretary of State may by regulations—

(a) make provision as to the procedure for listing an asset of negative community value;

(b) confer rights of appeal on owners or occupiers of listed assets;

(c) provide for safeguards to ensure proportionality and fairness in the designation and management of such assets;

(d) make further provision for the disposal, management, or transfer of listed assets to qualifying community groups.

(5) For the purposes of this paragraph “community group” has the same meaning as in section 86D of this Act (as inserted by schedule 19 of the English Devolution and Community Empowerment Act 2025).”’

This new clause would create a parallel category to “assets of community value” by enabling local authorities to designate “assets of negative community value” (ANCVs). Designation would trigger a framework for temporary community stewardship or pathways to transfer into community use. Further provision would be made via secondary legislation.

New clause 13—Duty relating to community empowerment—

‘(1) Within one year beginning on the date on which this Act is passed, and each year thereafter, the Secretary of State must publish and lay before Parliament a report assessing the effectiveness of Part 5 of the Localism Act 2011 (Community empowerment).

(2) The report must—

(a) consider the effectiveness of the provisions in Part 5 of the Localism Act 2011 against the criteria in subsection (3), and

(b) set out a plan for better meeting those criteria, including potential legislative provision.

(3) The criteria are, in relation to people in England—

(a) access to a clean and healthy environment;

(b) access to land or space to play, roam, and swim;

(c) access to land for food growing;

(d) the ability to contribute to and challenge decisions made at a local level;

(e) access to, use of, and ability to propose acquisition of assets of community value.

(4) Within the period of 21 days beginning on the day in which a Report under this section, a Minister of the Crown must move a motion in the House of Commons that the House has considered the Report.

(5) In reckoning any period of 21 days under subsection (4), no account is taken of any time during which Parliament is dissolved or prorogued, or during which the House of Commons is adjourned for more than four days.’

This new clause would require the Government to report annually on the effectiveness of community empowerment measures under the Localism Act 2011. It requires that Ministers assess how well communities can access land, green space, and local decision-making mechanisms. The report must include plans to strengthen these rights, including potential new legislation.

New clause 16—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.’

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

New clause 17—Resource and support for local authority implementation of the Act—

‘(1) The Secretary of State has a duty to ensure that relevant authorities are provided with the resources and support necessary in order to carry out any functions conferred on, or required of, them by virtue of this Act.

(2) Any resources and support provided by the Secretary of State must be sufficient to ensure that there is no delay to the holding of any future local elections resulting from the implementation of, or delay to the implementation of, this Act.’

This new clause would ensure local authorities are provided with the resources and support they need to deliver the content of this legislation with specific regard to preventing any further delays to future local elections.

New clause 18—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.’

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

New clause 19—Mayors and Police and Crime Commissioners: alternative vote system—

‘(1) Within three months beginning on the day on which this Act is passed, the Secretary of State must by regulations make provision for the use of the alternative vote system in elections of mayors and police and crime commissioners.

(2) Regulations under this section are subject to the affirmative resolution procedure.’

This new clause would require the introduction of the Alternative Vote system for elections of mayoral and Police and Crime Commissioner elections within three months.

New clause 20—Training for councillors—

‘(1) The Secretary of State must make regulations which require a strategic authority to provide training for councillors following the designation, creation, or merger of any class of strategic authority.

(2) Regulations under this section must—

(a) make provision for training within six months of any designation, creation or merger, and every four years thereafter.

(b) make provision for training to apply to all levels of local government within the area of the newly designated strategic authority,

(c) provide that training under addresses any changes to the strategic authority’s governance practice, and

(d) specify a period during which councillors must complete the training under subsection (2)(a).

(3) The Secretary of State may create guidance for strategic authorities regarding the content of the training in subsection (2)(a).’

This new clause would create a requirement for councillors to receive training following the designation, creation or merging of any class of strategic authority. It allows the Secretary of State to issue guidance about the content of this training.

New clause 26—Local authority acquisition of dormant assets—

‘(1) The Secretary of State must by regulations made by statutory instrument enable a local authority to carry out functions relating to compulsory acquisition of land under section 226A of the Town and Country Planning Act 1990 (inserted by Schedule 15 of this Act) where the local authority is satisfied that any land of community value to be purchased within the authority area is dormant.

(2) Land of community value is considered dormant if—

(a) the land has been included in the authority’s list of assets of community value under section 86A for five years continuously,

(b) a notice of relevant disposal under section 86M was issued at least once during the five year period under sub-paragraph (a),

(c) there has been a preferred community buyer whose offer was rejected despite the buyer offering the value price determined under section 86T or an agreed price with the owner by the end of the negotiation period (see section 86S(4)), and

(d) the owner has not entered into a relevant disposal of the land with any other buyer during the permitted sale period under section 86M(6).

(3) Regulations made under this section are subject to affirmative resolution procedure.’

This new clause would allow the Secretary of State to authorise a local authority to engage the compulsory acquisition function under Schedule 15 of this Act if the land is considered dormant.

New clause 27—Community right to challenge: duty to undertake joint reviews—

‘(1) In Part 5 of the Localism Act 2011, omit Chapter 2 and insert—

“80A Duty to undertake joint reviews

(1) A relevant authority must conduct a joint review if a request is submitted by a relevant body.

(2) A joint review under subsection (1) must—

(a) enable the relevant body to shape the provision, commissioning, or design of the service through a set period of consultation with the relevant authority;

(b) be concluded within a reasonable timeframe, as prescribed in statutory guidance to be issued by the Secretary of State following consultation with community organisations and public bodies;

(c) produce outcomes that, following the conclusion of the review, should be enacted by the relevant authority through any necessary changes to the provision, commissioning or design of the service.

(3) The Secretary of State must issue guidance about the form and conduct of consultation under paragraph (2)(a), which must include measures to ensure that a relevant body can participate meaningfully in the decision-making process.

(4) For the purposes of this section—

“relevant authority” means any public body responsible for delivering a local service;

“relevant body” means—

(a) a voluntary or community body;

(b) a body, person, or trust which is established solely for a charitable purpose;

(c) a parish council;

(d) a group of at least ten users of a local service;

(e) two or more persons who are employed by a relevant authority;

(f) such other persons as the Secretary of State may by regulations specify.”

(2) The Secretary of State may by regulations make provision that is consequential on this section.

(3) Regulations under this section are subject to the affirmative resolution procedure.’

This new clause replaces the duty to consider an expression of interest in the Localism Act 2011 with a duty triggering a joint review and requiring local authorities to work collaboratively with communities and service users to shape local services.

New clause 34—Councillor standards—

‘(1) Within six months of the passage of this Act, the Secretary of State must make regulations to establish a recall process for councillors who have been found to have breached their council’s code of conduct.

(2) Regulations under this section are subject to the affirmative resolution procedure.’

This new clause would require the Secretary of State to make regulations to establish a recall process for Councillors who have been found to have breached their council’s code of conduct.

New clause 35—Consideration of impact on local elections—

‘(1) The Secretary of State must take steps to ensure a relevant activity does not—

(a) delay,

(b) postpone, or

(c) lead to the cancellation of,

any election of members to any local authority affected by the relevant activity.

(2) For the purposes of this section, “relevant activity” means the making of an order or regulations, or any other exercise of power, relating to the reorganisation or restructuring of one or more local authorities under this Act.’

New clause 38—Land quality assessments—

‘(1) Within six months of the passage of this Act, the Secretary of State must make regulations to enable a local authority to facilitate an assessment of the quality of an area of land within its area where the conditions in subsection (2) apply.

(2) The conditions are that—

(a) an application has been made to a local planning authority for planning permission for development on the area of land,

(b) the area of land has not been allocated for development in a local plan or any Land Use Framework,

(c) the area of land has been used for agricultural purposes,

(d) two or more Agricultural Land Classification assessments have been undertaken in the last 10 years, and

(e) the planning applicant and the current owner of the area of land are in disagreement regarding the quality of the area of land.

(3) An assessment under subsection (1) must—

(a) be conducted by an independent surveying organisation, and

(b) determine the area of land’s suitability for development.

(4) The costs of an assessment under subsection (1) must be divided equally between the planning applicant and current owner of the area of land.

(5) Regulations under subsection (1) are subject to the affirmative resolution procedure.’

New clause 42—Procedure relating to postponement of elections—

‘(1) Section 105 (Orders and regulations) of the Local Government Act 2000 is amended as follows.

(2) In subsection (6), after “9N” insert “87”.’.

This new clause would require any order postponing a local election to be subject to affirmative resolution procedure.

New clause 47—Rutland: status as ceremonial county—

(1) The Lieutenancies Act 1997 is amended as follows.

(2) In paragraph 3 of Schedule 1, in the Table, after “Nottingham” insert as a new row—

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[Miatta Fahnbulleh]

It is my pleasure to open the debate on day two of Report on the English Devolution and Community Empowerment Bill. Today we are concerned with parts 3, 4 and 5 of the Bill, which cover provisions relating to local government, community right to buy, local audit and the ending of upward-only rent review clauses in commercial leases. As with yesterday’s debate, I will focus on the substantive changes made in Committee and those we have brought forward on Report.

Before I turn to the amendments, I would like to address some of the comments made in yesterday’s debate. Opposition Members suggested that this Government have not taken on board any of their suggestions. Today I am delighted to demonstrate that the Government have been listening to the points raised by Members in the House and by our mayors. We have today announced the next big step in our path to devolution. Mayors will be given the power to raise revenue locally through a new overnight visitor levy. We are consulting on whether to also grant this power to leaders of foundation strategic authorities. This is a groundbreaking step for the future of devolution, with transformative investment potential for England’s tourism sector and the wider economy.

Mayors have already proven what is possible when they are given the tools to deliver, from the Mayor of London using business rate supplements to deliver the Elizabeth line to the Mayor of Greater Manchester using his mayoral precept on council tax to provide far improved bus services. Making places more attractive to visit, live and work in will attract further investment and improve the visitor experience, so I am proposing that constituent authorities within a strategic authority that implement a levy should be eligible for a share of the revenue raised for growth-related spending. Tomorrow, the Exchequer Secretary to the Treasury and the Secretary of State of State for Housing, Communities and Local Government will publish a consultation with the details of the proposed levy. We recognise that businesses and potential visitors may have concerns about the effects of a new levy, and we will take those concerns seriously. I expect mayors to engage constructively with businesses and their communities to hear those concerns throughout the consultation period and beyond

[Caroline Voaden (South Devon) (LD)]

I am interested in this proposal, but I wonder whether it will be applicable to council areas that do not yet have a mayor and may not have a mayor for some time. Will they still have the power to impose an overnight visitor levy?

[Miatta Fahnbulleh]

We will consult on whether that power should be extended to foundational strategic authorities that do not have a mayor, and we will see the responses to that consultation.

I said yesterday that the Bill is the floor, not the ceiling, of this Government’s ambition. Today’s announcement shows just how seriously we take the mayor’s right to request new powers, and our commitment to give them the tools they need to drive growth for the area. I thank my hon. Friends the Members for Liverpool Wavertree (Paula Barker) and for Vauxhall and Camberwell Green (Florence Eshalomi) for raising that issue, and my hon. Friend the Member for Uxbridge and South Ruislip (Danny Beales) for his contribution to yesterday’s debate.

I turn now to the changes made in Committee. The Government recognise how much communities value their local sports grounds as spaces that foster local pride, belonging and identity. The Bill will automatically designate grounds across England as sporting assets of community value, ensuring that those essential local spaces are protected. We have introduced a new 16-week review period for communities seeking to purchase a sporting asset of community value accommodating more than 10,000 spectators. That amendment is about putting processes in place to safeguard the long-term sustainability of larger sports grounds, ensuring communities have the capability and readiness to manage them effectively.

The Bill delivers fully on our commitment to fix the broken local audit system that we inherited, and will set local government on a firmer financial footing. In Committee, we inserted new provisions relating to financial penalties, sanctions and criminal offences. They will ensure that the local audit system has the right levers in place to deter and sanction improper behaviour. The new local audit office will be established as the regulatory authority for that system, and will be given further powers to conduct assurance reviews.

The Bill will ban upwards-only rent review clauses in new and renewed commercial leases. Such reviews create an imbalance of supply and demand, contributing to the blight of empty properties, from high street shops to empty office floors. Our amendment will close loopholes in the ban, ensuring that tenants who vacate or have not occupied properties are still caught by the ban. It will allow tenants to trigger a rent review in all leases, preventing landlords from avoiding rent reviews during times of rental decline

I turn now to the amendments tabled on Report. New clause 46 will confer the general power of competence on England’s national park authorities and the Broads Authority. The legislation underpinning our national parks currently limits their powers to activities directly related to their statutory functions, creating uncertainty and stifling their ability to innovate. Providing them with the general power of competence will enable them to be more innovative and agile in delivering their statutory functions, and to contribute towards the Government’s wider agenda.

[Martin Wrigley (Newton Abbot) (LD)]

In addition to that very welcome general power of competence for the national park authorities, will the Minister consider tabling amendments to ensure that the new unitary authorities surrounding those park authorities do not dominate the membership of the board with a majority?

[Miatta Fahnbulleh]

I thank the hon. Member for raising that point and for advocating for our national park authorities. We are clear that, as we go through the process of reforming local government, we want strong and effective collaboration between all the institutions that need to drive services for local people. We will look to ensure that we are strengthening those partnerships and collaborations as local government reforms and the general power of competence for those authorities bed in.

I turn to taxi and private hire vehicles. Let me be clear: the current legislative framework for regulating the taxi and private hire vehicle trades across England is complex, fragmented and archaic; some legislation dates back to Victorian times. The Government recognise the challenges that the current licensing framework can cause, including the inconsistency of licensing standards throughout the country and the practice of out-of-area working, where drivers choose to license in one authority area but work wholly or predominantly in a different authority area.

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[Sarah Olney (Richmond Park) (LD)]

My constituency covers two local authorities: the Royal borough of Kingston upon Thames and the London borough of Richmond upon Thames. For a number of years, they have both operated a committee system that works extremely well; it is well accepted by the local community and both local authorities function extremely well. Why are the Government proposing to put in place additional hurdles for both my local authorities to continue to operate effectively and efficiently in this way?

[Miatta Fahnbulleh]

We are clear that our strong preference remains for executive models of government, because we believe that that model provides clearer and more easily understood governance structures, and leads to more efficient decision making. However, we recognise the genuine concerns held in particular constituencies where committee systems have been adopted recently, particularly where public referendums have been held. That is why we are moving forward with this amendment.

We believe that we are striking the right balance between encouraging a more consistent local authority governance model across England that will ensure better decision making, while also respecting recent local democratic mandates and voter expectations, as well as reducing disruptions where councils are operating a committee system and are within their moratorium periods. If a council is within its moratorium period, we will allow the transition, but our strong preference is to move towards the cabinet system.

[Sarah Olney]

On that point, will the Minister give way?

[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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[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.

[Alison Bennett]

Will the Minister give way?

[Miatta Fahnbulleh]

I will make progress, as we are almost out of time.

On the key question of funding our strategic authorities, we absolutely recognise the vital role that strategic authorities and mayors can play. We are seeing this across the country—that is why we support devolution to mayors and strategic authorities.

On the point about Surrey made by the hon. Member for Runnymede and Weybridge (Dr Spencer), we want to see strategic authorities and mayors across the country, including in Surrey. However, we are also clear that if we want them to drive the change that we believe they can drive, we must equip them with the resources and powers to do the job that is required of them.

I have a lot of sympathy for the intention behind new clause 17. However, as I said yesterday, there is a new burdens assessment, which will always apply. When new responsibilities are placed on strategic authorities and mayors, the new burdens assessment will be applied to ensure that they are funded appropriately. Indeed, for the priority areas in which we are moving forward with devolution, we are providing capacity funding up front to make sure that they have the capability and resources to do the job at hand. This basic principle will always hold: when we give out responsibility, we will ensure that the resources are there to take on that responsibility well.

Members spoke eloquently about the need to ensure that we are providing strong neighbourhood governance, and we share that ambition. Some Members talked about town and parish councils, and others talked about neighbourhood committees. We are clear that it is down to communities to decide the form and function of neighbourhood governance. We want to see neighbourhood governance in every part of the country, and we will provide regulations that set out the principle of neighbourhood governance and what it should look like. In addition, we will provide non-statutory guidance to support communities as they embark on neighbourhood guidance.

[James Naish (Rushcliffe) (Lab)]

Will the Minister give way?

[Miatta Fahnbulleh]

I will make progress.

The point made by my hon. Friend the Member for Ribble Valley (Maya Ellis) and the hon. Member for Brighton Pavilion (Siân Berry) that we must have strong community engagement is one that we absolutely believe in. We will continue to learn from what we see on the ground and draw on insights as to how we can strengthen community engagement as we move forward.

My hon. Friends the Members for Worthing West (Dr Cooper) and for Stroud (Dr Opher) raised points about assets of community value and the environment. I thank them for speaking so knowledgably and eloquently about the value that environmental assets can provide. I can reassure them that environmental assets will be captured within assets of community value. Green spaces, parks, woodlands and community parks will all be captured within assets of community value. We will set this out in guidance, as we share the determination that environmental assets are captured within the provision.

More broadly, in terms of community right to buy, we have heard the argument that it is an absolute right. There is a huge opportunity with it, and we will continue to learn from insights on the ground about how it is working and how well communities are able to exercise the power. We will look to strengthen it as we move forward.

Let me address the points raised about local media. We completely agree with Opposition parties that we need transparency and public engagement when it comes to local governance changes, and we are committed to the cornerstone role that the local press plays in our democracy. The Bill makes a small, proportionate change to the publication of local authority governance changes, which is to be communicated to give local authorities flexibility and to allow them to use a range of different mechanisms. The change does not apply to wider publications on subjects such as planning. It is a very specific change to bring about greater flexibility.

Finally, I turn to the point that was made over and over again by Members across the House, including my right hon. Friend the Member for Hayes and Harlington (John McDonnell) and my hon. Friends the Members for Heywood and Middleton North (Mrs Blundell), for Crawley (Peter Lamb), for North West Cambridgeshire (Sam Carling) and for Brentford and Isleworth (Ruth Cadbury). I recognise their contribution to the debate and their advocacy on the important issue of how we regulate our taxi and private hire vehicle system. I am glad to see that Members welcome the steps we are taking to put in place minimum standards. The minimum standards are an important first step, and we will build on them. We will consult on licensing becoming the responsibility of local transport authorities in order to improve regulation, and we are committed to engaging with our unions, including Unite, and with local authorities and operators to discuss how we can build on this step. We absolutely hear the point that this is urgent and we need to act.

I urge the House to support the Government’s amendments so that we can drive forward the biggest transfer of power in a generation. This is an exciting moment for the Government. We believe that we need to drive change, but in order to do that we must equip every level—from our regions to our local authorities and communities—to drive the change that they want to see in their places. We believe that this Bill is an important first step. We will continue to engage with Members from across the House to ensure that the regulations and provisions in the Bill are matched by tangible change on the ground. I know that hon. Members across the House support our endeavour. We must drive the change that we want to see in our places. [Interruption.] I will keep going. We will continue to engage constructively to ensure that we are playing our part. I hope hon. Members can see that we have engaged with the Bill constructively.

[Anna Dixon (Shipley) (Lab)]

I commend the Minister on her fantastic closing remarks. I emphasise the points made by my hon. Friends—[Interruption.]

[Miatta Fahnbulleh]

I thank my hon. Friend—

--- Later in debate ---

[Miatta Fahnbulleh]

I beg to move, That the Bill be now read the Third time.

I am privileged to be able to open this Third Reading debate following constructive debates on Report. Let me first reiterate my thanks to Members on both sides of the House for their thoughtful contributions during the Bill’s passage.

The Bill cements the Government’s commitment to powering up our regions, rebuilding local government and empowering our communities, which is fundamental to achieving the changes that our constituents expect and deserve: better living standards, improved public services and politics being done with communities, not to them. This Government’s ambition is to bring power and decision making closer to the people who know their areas best. The Bill will truly empower residents to shape the places where they live and work, and from fixing our broken local audit system to empowering mayors to unlock the economic potential of their places, it will set local government on a firmer footing and enable local leaders to deliver a decade of national renewal. These changes are long overdue, and we are now taking ambitious action where previous Governments have failed.

I extend my thanks to everyone who has played a role in getting the Bill to this stage. I am particularly grateful to my right hon. Friend the Secretary of State for Housing, Communities and Local Government for his dedication and commitment to this agenda. I am also grateful to my hon. Friend the Member for Oldham West, Chadderton and Royton (Jim McMahon) for his leadership, and for the huge amount of work that he put into developing this impressive piece of legislation. I thank the Members on both sides of the House who scrutinised the Bill in such detail in Committee, and I thank the shadow Minister, the hon. Member for Ruislip, Northwood and Pinner (David Simmonds), for his constructive and, for the most part, collaborative approach.

Let me also put on record my thanks to representatives of the wider local government sector, especially those who gave evidence earlier this year. They are critical actors in providing the frontline services that residents need and deserve, and, whether they are councillors, mayors, police and crime commissioners or third sector representatives, the House thanks them for their service. I hope that colleagues in the other place continue to take the same collaborative approach that has been taken in this House, and I wish Baroness Taylor of Stevenage the best with moving the Bill forward. I commend it to the House.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call the shadow Minister.

English Devolution and Community Empowerment Bill

Miatta Fahnbulleh Excerpts

Report stage
Monday 24th November 2025 Commons Chamber

[The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Miatta Fahnbulleh)]

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

[Madam Deputy Speaker (Ms Nusrat Ghani)]

With this it will be convenient to discuss the following:

Government new clause 44—Licensing functions of the Mayor of London.

New clause 2—Council tax: CAs and CCAs to be subject to same increase as most county and unitary councils—

“(1) The Local Government Finance Act 1992 is amended as follows.

(2) In section 52ZC, after subsection (4) insert—

‘(4A) Where, for the purposes of this section, the Secretary of State determines categories of authority for the year under consideration, one of the categories determined by the Secretary of State must include all mayoral combined authorities and CCAs (‘the CA and CCA category’).

(4B) Where the Secretary of State has determined a category that includes the majority of county and unitary councils (“a county and unitary category”), a principle that must be applied to the CA and CAA category is that the means of determining whether the relevant basic amount of council tax is excessive is the same as any means set out in a principle applied to the county and unitary category (but for the purposes of the determination references to any referendum principle for county and unitary councils that specifically relates to expenditure on adult social care should be discounted).’”

This new clause would limit increases in the mayoral precept according to similar principles limiting council tax increases.

New clause 4—Application of CIL to householders—

“(1) The Planning Act 2008 is amended as follows.

(2) In section 205 (The levy) after subsection (2) insert—

‘(2A) In making the regulations, the Secretary of State may not charge CIL on householders’ property extensions that are for their own use.

(2B) The Secretary of State must amend the Community Infrastructure Regulations 2010 so that they are in accordance with the requirements of subsection (2A).’”

This new clause disapplies CIL from householders extending property for their own use.

New clause 5—Power of mayors to convene meetings with local public service providers and government—

“(1) After section 17B of LURA 2023 (inserted by section 21 of this Act) insert—

‘17C Mayoral duty to convene meetings with local public service providers and government

(1) The mayor for the area of a CCA must convene regular meetings with—

(a) principal local authorities within their area,

(b) public service providers in their area, and

(c) town and parish councils within their area.

(2) A meeting under subsection (1) must occur at least every 12 months.’

(2) After section 103B of LDEDCA 2009 (inserted by section 21 of this Act) insert—

‘103C Mayoral duty to convene meetings with local public service providers and government

(1) The mayor for the area of a combined authority must convene regular meetings with—

(a) principal local authorities within their area,

(b) public service providers in their area, and

(c) town and parish councils within their area.

(2) A meeting under subsection (1) must occur at least every 12 months.’

(3) After section 40B of GLAA 1999 (inserted by section 21 of this Act) insert—

‘40C Mayoral duty to convene meetings with local public service providers and government

(1) The Mayor must convene regular meetings with—

(a) principal local authorities within their area,

(b) public service providers in their area, and

(c) town and parish councils within their area.

(2) A meeting under subsection (1) must occur at least every 12 months.’”

This new clause would require mayors of combined authorities, mayors of CCAs, and the Mayor of London to regularly convene meetings with local government actors within their area.

New clause 7—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 8—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.

New clause 9—Authority involvement in local skills improvement plans—

“(1) Section 1 of the Skills and Post-16 Education Act 2022 is amended as follows.

(2) In subsection (7), after ‘relevant authority’ insert ‘and, where the specified area covers any of the area of a strategic authority, the strategic authority’.

(3) After subsection (7) insert—

‘(7A) Where a specified area covers any of the area of a strategic authority, the Secretary of State may approve and publish a local skills improvement plan for the specified area only if satisfied that—

(a) the strategic authority and the employer representative body for the area have exercised joint leadership in developing the plan,

(b) the plan has been agreed by both the strategic authority and the employer representative body, and

(c) the boundaries of the plan align with the strategic authority boundaries.

(7B) For the purposes of subsection (7A), ‘joint leadership’ means that—

(a) strategic priorities for skills development in the area are agreed by both the strategic authority and the employer representative body, and

(b) spending priorities relating to devolved adult education funding are jointly determined.

(7C) A local skills improvement plan may only be altered if both the strategic authority and the employer representative body agree to any proposed alterations.

(7D) Where there is disagreement between a Strategic Authority and an employer representative body exercising joint leadership under subsection (7A), either party may refer the matter to the Secretary of State, who may—

(a) issue guidance to resolve the disagreement;

(b) give directions to either or both parties to ensure effective coordination;

(c) require the parties to adopt alternative arrangements for decision-making;

(d) approve and publish a plan that addresses the disagreement.

(7E) In exercising functions under subsection (7D), the Secretary of State must have regard to—

(a) the effective delivery of post-16 technical education and training in the area,

(b) employer engagement in identifying local skills needs,

(c) value for money in delivery of services by Strategic Authorities, and

(d) democratic accountability of Strategic Authorities in delivering such services.’

(4) Section 4 of the Skills and Post-16 Education Act 2022 is amended as follows.

(5) In subsection (1), at the appropriate place insert—

‘“strategic authority” has the meaning given by section 1(2) of the English Devolution and Community Empowerment Act 2025;’”.

This new clause would require Strategic Authorities to exercise joint leadership with employer representative bodies in developing Local Skills Improvement Plans. The amendment also requires Local Skills Improvement Plan boundaries to align with Strategic Authority boundaries to enable effective coordination and provides dispute resolution mechanisms where joint leadership arrangements encounter difficulties.

New clause 14—Policy delivery in areas of competence—

“(1) Any function of a mayoral combined authority or mayoral combined county authority which—

(a) relates to an area of competence, and

(b) is not a mayoral function exercisable solely by the mayor

must be exercised by or under the direct authority of the constituent members of that authority.

(2) No person may be appointed to exercise any function that relates to making or delivering policy relating to an area of competence unless that person is an elected member of—

(a) the relevant strategic authority, or

(b) a constituent council within the relevant strategic authority.

(3) Nothing in this section is to be taken as preventing the appointment of staff by the strategic authority or its elected members for the purposes of administrative, advisory or technical support for the exercise of its functions.

(4) For the purposes of this section, “a constituent member” means any elected representative who is—

(a) appointed by a constituent council to be a member of the mayoral combined authority or mayoral combined county authority;

(b) acting in the place of a person appointed under paragraph (a).”

This new clause provides that any policy delivery or development relating to an area of competence in a strategic authority is carried out by an elected representative.

New clause 15—Duty to ensure public trust and financial transparency—

“(1) The mayor for the area of a combined authority or combined county authority must take reasonable steps to ensure that information regarding the authority’s financial affairs, including its annual budget, significant expenditure, and financial performance, is made accessible to local communities in a clear and understandable manner.

(2) The mayor must publish a policy setting out how the combined authority or combined county authority will engage with local communities on its financial priorities and major spending decisions, and review this policy periodically.”

This new clause requires mayors of CAs and CCAs to ensure that financial information is accessible and understandable to local communities.

New clause 23—Transport authority functions: funding and support—

“(1) The Secretary of State must ensure that relevant authorities have sufficient financial resources and adequate administrative support to discharge effectively any functions relating to transport conferred on them by this Act.

(2) In discharging the duty under subsection (1), the Secretary of State must regularly review the financial and administrative needs of those authorities in relation to their transport functions, taking into account the scale and complexity of those functions.

(3) For the purposes of this section, ‘functions relating to transport conferred on them by this Act’ means—

(a) functions of a local transport authority as described in Schedule 9, and

(b) any other functions reasonably connected with the transport.”

This new clause creates a requirement for regular reviews of the financial and administrative needs of authorities to carry out their transport functions.

New clause 24—Duty to publish and implement a forward devolution strategy—

“(1) The Secretary of State must, within two years beginning on the day on which this Act is passed, prepare and publish a forward devolution strategy (‘the strategy’).

(2) The purpose of the strategy is to set out the proposed timeline for the establishment of new strategic authorities, or the expansion of existing strategic authorities, in areas of England that are not currently within the area of an established mayoral strategic authority.

(3) The timeline set out in the strategy must include a period within which the Secretary of State intends to issue invitations or directions for proposals for the establishment or expansion of such new strategic authorities for those identified areas.

(4) Any annual report required under section 1 of the Cities and Local Government Devolution Act 2016 (inserted by section 19 of this Act) must include a statement on the progress made in implementing the strategy, including information on any revision of or replacement for the strategy.

(5) Before preparing, publishing, or revising the strategy, the Secretary of State must consult—

(a) the mayors for the areas of established mayoral strategic authorities; and

(b) the constituent councils of combined authorities and combined county authorities.”

This new clause would introduce a commitment to publish a strategy and timeline for further devolution.

New clause 25—Community infrastructure levy charges: guidance—

“(1) The Secretary of State must, within six months of the passing of this Act, prepare and publish guidance for charging authorities on—

(a) the implementation and administration of community infrastructure levy charges;

(b) appropriate procedures for handling technical errors in the calculation, notification, or collection of community infrastructure levy charges; and

(c) best practice for resolving disputes relating to community infrastructure levy charges where technical errors have occurred.

(2) The guidance under subsection (1) must include—

(a) guidance on what constitutes a technical error in the context of community infrastructure levy charges;

(b) recommended procedures for reviewing and, where appropriate, waiving or reducing community infrastructure levy charges where a technical error has occurred;

(c) principles to guide the proportionate collection of community infrastructure levy payments when technical errors have been identified; and

(d) time limits for the rectification of technical errors.

(3) In this section—

‘charging authority’ has the meaning given in section 106 of the Planning Act 2008, as amended by Schedule 14 of this Act;

‘technical error’ means an error in the calculation, notification, or administration of a Community Infrastructure Levy charge that is not related to a material change in the development to which the charge applies.”

New clause 28—Regional governance—

“(1) The Secretary of State may by regulations provide for the establishment of a regional governance body in any part of England, where in the opinion of the Secretary of State there is demonstrable local support for such a body.

(2) Regulations made under this section must—

(a) provide that—

(i) a regional governance body is a body corporate,

(ii) the name of any such body is determined locally, and

(iii) the structure and membership of any such body is determined following consultation with people who live in the relevant part of England;

(b) confer functions upon a regional governance body in relation to—

(i) education and skills,

(ii) transport,

(iii) health and social care,

(iv) housing and planning, and

(v) such other matters as the Secretary of State considers appropriate.

(3) in making regulations under this section, the Secretary of State must have regard to—

(a) the promotion of effective and accountable regional governance,

(b) the identity and aspirations of the region concerned, and

(c) the principle of subsidiarity.

(4) Regulations under this section are subject to the affirmative resolution procedure.”

This new clause would enable the establishment of regional governance bodies in parts of England, such as a Yorkshire Parliament or Cornish Assembly, with locally determined names and structures, and allow them to be conferred with responsibilities in areas including education, transport, health and housing, where there is local support.

New clause 29—Duty to contribute to delivery of nature, clean air and climate targets—

“(1) When exercising their functions, a strategic authority, mayor, or local authority must contribute to—

(a) meeting the targets and carbon budgets set under Part 1 of the Climate Change Act 2008;

(b) meeting the targets and interim targets set under Part 1 of the Environment Act 2021;

(c) meeting the limit values set under Schedule 2 of the Air Quality Standards Regulations 2010; and

(d) the delivery of the programme for adaptation to climate change under section 58 of the Climate Change Act 2008.

(2) A strategic authority, mayor or local authority must not make any decision that is incompatible with the duty described in subsection (1).

(3) Within one year beginning on the day on which this Act is passed, the Secretary of State must publish guidance describing the contribution that each strategic authority should make toward meeting the targets listed in subsection (1).

(4) Guidance under subsection (3) must include clear metrics and measurable terms for strategic authorities, mayors and local authorities to meet.”

This new clause requires strategic authorities, mayors, and local authorities to act in accordance with the statutory Climate Change Act and Environmental Act targets, carbon budgets, Air Quality Standards Regulations, and climate adaptation programme across their functions. The Secretary of State must publish guidance for defining authorities’ contributions towards these objectives.

New clause 30—Visitor levies—

“(1) The Secretary of State must conduct a review into giving local authorities powers to introduce visitor levies within their area.

(2) The review in subsection (1) may only consider a visitor levy which directs receipts from the levy into the relevant authority’s general fund.

(3) The Secretary of State must lay a report on the review in subsection (1) before both Houses of Parliament within 12 months of the passage of this Act.”

New clause 31—Overnight accommodation levy—

“(1) An EMSA may impose a levy on any overnight accommodation provided within the EMSA’s area (‘the OAL’).

(2) The levy is payable by persons staying for one or more night in exchange for payment in any—

(a) hotel;

(b) guest house, or bed and breakfast;

(c) self-catering accommodation;

(d) short-term let;

(e) campsite or caravan park;

(f) any other premises that the mayor of an EMSA may designate.

(3) Before introducing or modifying an OAL the mayor of an EMSA must consult such as persons as they consider necessary, which must include communities, business and organisations working in or affected by the tourism industry.

(4) The mayor of an EMSA may determine the rate and structure of an OAL, including concessionary rates and exemptions where they consider it appropriate.

(5) The mayor of than EMSA may specify arrangement relating to—

(a) the collection of the OAL,

(b) the administration of the OAL, and

(c) arrangements for circumstances in which the OAL is not complied with.

(6) Receipts from the OAL are to be paid into the general fund of the EMSA.

(7) Monies received under subsection (6) may be used by the mayor of the EMSA for the purposes of—

(a) promoting, developing and managing tourism within the EMSA area;

(b) enhancing infrastructure for the purposes of benefiting tourism in the area;

(c) supporting cultural, sporting and business activity;

(d) preserving or improving heritage assets;

(e) supporting economic growth in the EMSA area

provided that, in the view of the mayor of the EMSA, such use is consistent with the EMSA’s local growth plan.”

New clause 32—Greater London Authority: decision-making—

“(1) The Greater London Authority Act 1999 is amended in accordance with this section.

(2) In section 42B (Assembly’s power to reject draft strategies), in subsection (5)(b), leave out ‘at least two-thirds’ and insert ‘a simple majority’.

(3) In schedule 4A (Confirmation hearings etc)—

(a) in paragraph 10(5) leave out ‘at least two-thirds’ and insert ‘a simple majority’;

(b) in paragraph 11(5) leave out ‘at least two-thirds’ and insert ‘a simple majority’.

(4) In schedule 6 (Procedure for determining the authority’s consolidated council tax requirement)—

(a) in paragraph 8(4) leave out ‘at least two-thirds’ and insert ‘a simple majority’;

(b) In paragraph 8C(4) leave out ‘at least two-thirds’ and insert ‘a simple majority’.

(5) In schedule 7 (Procedure for making of substitute calculations by the authority), in paragraph 7(4), leave out ‘at least two thirds’ and insert ‘a simple majority’.”

New clause 33—Joint planning committees—

“(1) Within six months of the passage of this Act, the Secretary of State must make regulations which make provision for local authorities which share a border to establish a joint planning committee.

(2) Joint planning committees under subsection (1) may only consider planning applications which are within 0.5 miles of the adjacent authorities’ border.

(3) Regulations under subsection (1) are subject to the affirmative resolution procedure.”

This new clause would require the Secretary of State to make regulations to establish joint planning committees for adjacent authorities to jointly consider planning applications which are within 0.5 miles of their adjoining border.

New clause 39—Regulation of waterborne transport services by regional mayors—

“(1) A mayor for the area of a combined authority, combined county authority, or other mayoral strategic authority may exercise functions relating to waterborne transport services operating wholly within the authority’s area.

(2) Functions exercisable by a mayor may include—

(a) making regulations concerning the provision, operation, safety, accessibility, affordability, and reliability of waterborne transport services;

(b) requiring operators of waterborne transport services to provide such information as the mayor considers necessary for the purposes of monitoring or enforcing compliance with regulations made under paragraph 2(a);

(c) imposing and enforcing conditions relating to a requirement or duty imposed under this section;

(d) imposing and enforcing any penalties resulting from non-compliance with conditions set out under paragraph (2)(c);

(e) regulation of fares and fare structures for waterborne transport services, including imposing a fare cap;

(f) functions relating to accountability of waterborne transport services providers for the delivery and performance of services, including by holding public hearings or inquiries;

(g) any such additional functions as a mayor considers necessary for the purpose of ensuring effective regulation of waterborne transport services within an authority’s area.

(3) Before making regulations under this section, the mayor must consult—

(a) the constituent councils of the combined authority (or equivalent local authorities),

(b) any local transport authorities affected,

(c) operators of waterborne transport services within the area, and

(d) other such persons as the mayor considers appropriate.

(4) Regulations under this section may include provision for appeals against any enforcement action taken by the mayor.

(5) In this section ‘waterborne transport services’ has such meaning as the Secretary of State may by regulations specify, provided that such specification must include—

(a) ferry services, and

(b) water taxi and private hire transport services,

which carry passengers by water between two or more places within the area of the authority.”

This new clause gives mayors of combined and other strategic authorities powers to regulate waterborne transport services in their areas, including the ability to cap fares.

New clause 41—Mayoral CAs and CCAs: any increase in council tax to be subject to referendum—

“(1) The Local Government Finance Act 1992 is amended as follows.

(2) In section 52ZC, before subsection (1) insert—

‘(A1) A mayoral combined authority or mayoral CCA’s relevant basic amount of council tax for a financial year must be determined to be excessive if the financial year is the first financial year in which the authority has charged a relevant basic amount of council tax.’

(3) At the beginning of subsection (1), for ‘The’ substitute ‘In any other case, the’.”

New clause 48—Regulation of ferry services by regional mayors—

“(1) A mayor for the area of a combined authority, combined county authority, or other mayoral strategic authority may exercise functions relating to ferry services operating wholly within the authority’s area.

(2) Functions exercisable by a mayor may include—

(a) making regulations concerning the provision, operation, safety, accessibility, affordability, and reliability of ferry services;

(b) requiring operators of ferry services to provide such information as the mayor considers necessary for the purposes of monitoring or enforcing compliance with regulations made under paragraph 2(a);

(c) imposing and enforcing conditions relating to a requirement or duty imposed under this section;

(d) imposing and enforcing any penalties resulting from non-compliance with conditions set out under paragraph (2)(c);

(e) regulation of fares and fare structures for ferry services, including imposing a fare cap;

(f) functions relating to accountability of ferry service providers for the delivery and performance of services, including by holding public hearings or inquiries;

(g) any such additional functions as a mayor considers necessary for the purpose of ensuring effective regulation of ferry services within an authority’s area.

(3) Before making regulations under this section, the mayor must consult—

(a) the constituent councils of the combined authority (or equivalent local authorities),

(b) any local transport authorities affected,

(c) operators of ferry services within the area, and

(d) other such persons as the mayor considers appropriate.

(4) Regulations under this section may include provision for appeals against any enforcement action taken by the mayor.

(5) In this section ‘ferry services’ means services for the carriage of passengers or vehicles by water between two or more places, all of which are within the area of the authority.”

This new clause gives mayors of combined and other strategic authorities powers to regulate ferry services in their areas, including the ability to cap fares.

New clause 58—Obligation to align decision-making with nature, air quality, and climate targets—

“(1) When exercising their functions, a strategic authority, mayor, or local authority shall refrain from taking any action or decision that would contradict—

(a) the fulfilment of the carbon budgets and targets established under Part 1 of the Climate Change Act 2008;

(b) the achievement of the environmental targets and interim targets set under Part 1 of the Environment Act 2021;

(c) compliance with the limit values provided for in Schedule 2 to the Air Quality Standards Regulations 2010; and

(d) implementation of the programme for adapting to climate change prepared under section 58 of the Climate Change Act 2008.

(2) Within one year beginning on the day on which this Act is passed, the Secretary of State must publish guidance describing the contribution that each strategic authority should make toward meeting the requirements in subsection (1).

(3) Guidance under subsection (2) must include clear metrics and measurable terms for strategic authorities, mayors and local authorities to meet.”

This new clause places a duty on strategic authorities, mayors and local authorities to operate consistently with the targets and requirements in the Climate Change Act, the Environment Act, the Air Quality Standards Regulations, and the statutory climate adaptation programme. The Secretary of State must publish guidance for defining authorities’ contributions towards these objectives.

New clause 60—Power to provide for an elected mayor to appoint a deputy mayor—

“(1) The Local Democracy, Economic Development and Construction Act 2009 (section 107C) is amended as follows:

(2) In subsection (1), leave out “one of the members of the authority to be the mayor's deputy” and substitute ‘a deputy mayor’.

(3) In subsection (3)(c), leave out ‘the person ceases to be a member of the combined authority’ and insert ‘the person ceases to be a councillor of a constituent council of the authority’

(4) In subsection (4), leave out ‘another member of the combined authority’ and substitute ‘another councillor of a constituent council’.”

This new clause would amend section 107C of the Local Democracy, Economic Development and Construction Act 2009 so that a mayor is no longer restricted to appointing a deputy mayor from among the leaders of the constituent local authority members of the Combined Authority.

New clause 61—Mayoral special advisers—

“(1) The Constitutional Reform and Governance Act 2010 (section 15) is amended as follows.

(2) After section 15 (Definition of ‘special adviser’) insert—

‘15A Mayoral special advisers

(1) A mayor may appoint one mayoral special adviser

(2) A ‘mayoral special adviser’ is a person (‘P’) who holds a position within a mayoral strategic authority and whose appointment to that position meets the requirements in subsection (3).

(3) The requirements are—

(a) P is appointed to assist the Mayor after being selected by the Mayor personally;

(b) the appointment will end not later than—

(i) the day on which the Mayor ceases to hold office, or

(ii) if earlier, the end of the day after the day of the poll at the election following the appointment.

(4) The Secretary of State must publish a code of conduct for mayoral special advisers (‘the code’).

(5) Before publishing the code (or any revision of it) the Secretary of State must consult the Council of Nations and Regions.

(6) The code must provide that a mayoral special adviser may not—

(a) authorise the expenditure of public funds; or

(b) exercise any power in relation to the management of any part of the mayoral or strategic authority.

(7) The code must provide that a mayoral special adviser may—

(a) engage in political activity; and

(b) provide party-political advice to the Mayor.

(8) The code must form part of the terms and conditions of service of any mayoral special adviser.

(9) A person appointed under this section is not to be regarded, for the purposes of Part I of the Local Government and Housing Act 1989 (political restriction of officers and staff), as holding a politically restricted post under a local authority.’”

This new clause would insert a new section into the Constitutional Reform and Governance Act 2010 to establish a statutory framework for the appointment of “mayoral special advisers”. It makes provision about appointment, function, code of conduct, and exemption from political restrictions.

New clause 62—Business Rates Supplement: mayoral authority—

“(1) The Business Rate Supplements Act 2009 (‘the 2009 Act’) is amended as follows.

(2) In section 2(1) (levying authorities), for the definition substitute—

‘In this Act, ‘levying authority’ means—

(a) the Greater London Authority;

(b) an established mayoral authority in England;

(c) a county council or county borough council in Wales.

(3) Omit section 4(c).

(4) Omit section 7.

(5) Omit section 8.

(6) Omit section 9.

(7) In section 10, omit paragraph (2)(c) and subsections (10) and (11).

(8) In Schedule 1, omit paragraphs 19 and 20.”

This new clause would allow an established mayoral authority in England to levy a Business Rates Supplement. It would remove the ability of county and district councils in England to do so, and would remove the existing requirement for such a supplement to be approved by referendum.

New clause 64—Decisions on GLA strategy and budget: simple majority requirement—

“(1) The Greater London Authority Act 1999 is amended as follows.

(2) In section 42B (Assembly’s power to reject draft strategies), in subsection (5)(b) for ‘at least two thirds’ substitute ‘a simple majority’.

(3) In Schedule 6—

(a) in paragraph 8(4), leave out ‘at least two-thirds’ and insert ‘a simple majority; and

(b) in paragraph 8C(4), leave out ‘at least two-thirds’ and insert ‘a simple majority.’”

This new clause would require certain decisions of the London Assembly in relation to the mayor’s strategy and GLA budget to be taken by a simple majority rather than a two-thirds majority.

New clause 65—Power of the London Assembly in relation to mayoral decisions—

“(1) The Greater London Authority Act 1999 is amended as follows.

(2) After section 59 (review and investigation) insert—

‘59A Power of the Assembly in relation to proposed mayoral decisions

(1) The powers of the assembly under this Act include—

(a) power to direct that any decision that the Mayor proposes to take is not to be taken while it is under review and scrutiny by the Assembly, and

(b) power to recommend that any decision that the Mayor proposes to take be reconsidered.

(2) The Assembly must publish details of how it proposes to exercise its powers in relation to the review and scrutiny of proposed decisions and its arrangements in connection with the exercise of those powers.

(3) Before complying subsection (2), the Assembly must obtain the consent of the Mayor to the proposals and arrangements.

(4) In the proposals and arrangements published under subsection (2), the Assembly may make provision to require the Mayor to submit to the Assembly details of any decision the Mayor proposes to take.

(5) Provision under subsection (4) may include provision for deadlines by which any such details should be submitted to the Assembly.’”

This new clause would give the London Assembly the power to direct that proposed decisions of the Mayor are not taken while under the Assembly’s review and scrutiny. It would also give the Assembly power to recommend that the Mayor reconsider a proposed decision.

New clause 66—Consultation on GLA reform—

“(1) The Secretary of State must, within six months of this Act being passed, carry out a consultation on potential reforms to the Greater London Authority.

(2) The report must examine as a potential reform the scope for greater direct engagement with elected representatives of the London Borough Councils in decisions made by the Greater London Authority.

(3) The Secretary of State must, within nine months of this Act being passed, lay before each House of Parliament a report setting out the findings of the consultation.”

This new clause would require the Secretary of State to consult on proposed reforms to the London Assembly, including proposals for greater involvement of London Borough representatives in GLA decisions.

New clause 70—Duty to confer ESMA powers on Cornwall Council—

“(1) This section applies where Cornwall Council has applied to the Secretary of State for a power available to an established mayoral strategic authority in or under any Act of Parliament (a “relevant power”) to be conferred upon it.

(2) On receipt of an application, the Secretary of State must make regulations to confer the relevant power upon Cornwall Council.

(3) Where a relevant power has been conferred, any reference in or under any Act of Parliament to the exercise of the power by the mayor of an established strategic authority should be read to allow the exercise of the power by the leader of Cornwall Council.

(4) Regulations under this section are subject to the negative procedure.”

This new clause would allow Cornwall Council to apply to the Secretary of State to be conferred ESMA powers and requires the Secretary of State to make regulations to that end upon receipt of such an application.

New clause 71—Requirement to establish and consult neighbourhood area committees—

“(1) The Secretary of State may not make an order or regulations under any Act of Parliament to establish, expand or confer functions on any strategic authority until the Secretary of State is satisfied that the strategic authority will, at the moment of establishment, expansion or conferral of functions, have in place—

(a) neighbourhood area committees which collectively cover the whole area of the strategic authority,

(b) mechanisms to ensure that the neighbourhood area committees are consulted on any decision the strategic authority may take that might affect the area covered by the neighbourhood area committee.

(2) A neighbourhood area committee must ensure that, when consulted by a strategic authority under subsection (1)(b), it responds to the consultation in accordance with any reasonable deadline set by the strategic authority.”

New clause 72—Visitor levies (No. 2)—

“(1) Within one year beginning with the day on which this Act is passed, the Secretary of State must by regulations make provision enabling established mayoral strategic authorities to impose a levy charged on the purchase of overnight accommodation.

(2) Following consultation, regulations under this section must—

(a) define the basis on which the levy is to be calculated;

(b) specify the process and consultation requirements for an area seeking to impose a scheme;

(c) set out reporting requirements for relevant businesses and mayoral strategic authorities; and

(d) specify the investigatory powers and penalties available to mayoral strategic authorities for the enforcement of a scheme.

(3) Regulations under this section are subject to the affirmative resolution procedure.”

This new clause would require the Secretary of State to consult on, and subsequently make, regulations enabling established mayoral strategic authorities to impose a tourism levy on overnight accommodation.

New clause 74—Power of mayors and local authorities to regulate advertising—

“(1) Within six months beginning on the day on which this Act is passed, the Secretary of State must make regulations to enable mayors and local authorities to carry out functions relating to the display of advertising.

(2) Such regulations must—

(a) transfer or otherwise provide for the exercise of powers under section 220 of the Town and Country Planning Act 1990 to mayors and local authorities; and

(b) provide that such functions include—

(i) a duty to consider the impact of advertisements on public health, and

(ii) the regulation of content of advertisements deemed to have an adverse impact on local health or likely to exacerbate inequalities in health outcomes.

(3) Regulations under this section may amend provision made by or under an Act passed—

(a) before this Act, or

(b) later in the same session of Parliament as this Act.

(4) Regulations under this section are subject to the affirmative resolution procedure.”

This new clause would provide mayors and local authorities with the power to regulate advertising, and include duties on their use of that power in relation to public health and health inequalities.

New clause 76—Duty to establish a London Combined Board—

“(1) Within six months beginning on the day on which this Act is passed, the Secretary of State must by regulations establish a London Combined Board (“the Board”).

(2) Regulations under this section must—

(a) specify the Membership of the Board as—

(i) the Mayor of London, and

(ii) the membership of the Executive Committee of London Councils;

(b) make provision about joint decision-making between the GLA and the Board, including in relation to—

(i) powers exercised by the GLA on behalf of any London borough;

(ii) funding devolved to the GLA;

(iii) governance of any integrated settlement for London.

(3) In making regulations under this section, the Secretary of State must consider—

(a) existing best practice cooperation within other combined authorities in England, and

(b) existing cooperation between the GLA and London boroughs.

(4) Regulations under this section are subject to affirmative resolution procedure.”

This new clause would require the Secretary of State to establish a London Combined Board to ensure cooperation and joint decision-making between the GLA and representatives from London borough councils.

New clause 77—Proposals for alternative models for devolution—

“(1) One or more leaders of any strategic authority may notify the Secretary of State of—

(a) any changes to the boundaries and structures of a strategic authority;

(b) any changes to the governance of strategic authorities, including the relationship between a strategic authority and any local authority within its area; and

(c) any other changes to the structure of local devolution in its area

which the leaders believe would contribute to securing the effective exercise of functions either by the strategic authority, or by any local authority within its area.

(2) Before making any notification under subsection (1), the relevant strategic authority must consult—

(a) local authorities within its area;

(b) representatives of the community within its area, including businesses, education providers, health providers, and civil society, and

(c) any other persons that the strategic authority considers expedient.

(3) The Secretary of State must respond to a notification given under this section within three months beginning on the day on which it is submitted to the Secretary of State.

(4) A strategic authority may publish a notification made under this section, and the Secretary of State may publish a response to any such published notification.”

New clause 78—Abolition of PCCs—

“(1) In any mayoral combined authority or mayoral CCA, within six months of the passage of this Act, the Secretary of State must make regulations to transfer all PCC functions to the mayor and abolish the PCC.

(2) Regulations under subsection (1) are subject to the affirmative procedure.”.

This new clause would require the Secretary of State to make regulations to abolish the PCC and transfer their functions to the mayor in authorities which already have a mayor.

Amendment 175, in clause 1, page 1, line 12, at end insert—

“(d) Cornwall Council.”

Amendment 176, page 2, line 6, at end insert—

“(d) Cornwall Council, notwithstanding any requirement for the authority to have a mayor.”

Amendment 91, in clause 2, page 2, line 21, after “economic development” insert “, poverty and socio-economic inequality,”.

This amendment would make poverty and socio-economic inequality an area of competence for devolved authorities, ensuring they can take action to address the root causes of disadvantage in their areas.

Amendment 37, in clause 3, page 2, line 27, leave out subsections (1) to (3) and insert—

“(1) A unitary district council or a county council may submit a proposal to the Secretary of State for designation as a single foundation strategic authority.

(2) A proposal under subsection (1) must be prepared in such form and contain such information as the Secretary of State may by regulations prescribe.

(3) The Secretary of State may by regulations designate a unitary district council as a single foundation strategic authority if—

(a) a proposal has been submitted in accordance with subsection (1), and

(b) the Secretary of State is satisfied that the designation is appropriate having regard to the need to secure effective and convenient local government in relation to the areas of competence.”

This amendment would restrict the Secretary of State's power to designate a single foundation Strategic Authority. Instead, a local authority would initiate the request by submitting a proposal to the Secretary of State.

Amendment 104, page 2, line 31, leave out from “unless” to the end of line 32 and insert

“a referendum has been held in which residents of the council have consented to the designation.”

This amendment would create a requirement for a referendum to be held prior to the Secretary of State designating a council as a strategic authority.

Amendment 53, page 2, line 32, at end insert—

“(3A) Before making a designation under this section, the Secretary of State must consult town and parish councils within the area of the proposed single foundation strategic authority.”

This amendment would require the Secretary of State to consult town and parish councils prior to the unitary district council or county council within which they are situated being designated as a single foundation strategic authority.

Amendment 61, page 2, line 32, at end insert—

“(3A) The Secretary of State must make provision to ensure councils designated as a single foundation strategic authority receives adequate funding to facilitate their transition.”

This amendment would require the Secretary of State to ensure that councils designated as a single foundation strategic authority receive funding to facilitate their transition.

Amendment 165, page 2, line 33, at end insert—

“(3A) The Secretary of State may not designate a council if the council’s area is within, or is, the area of a National Park unless the Secretary of State has consulted with the authority for that National Park.”

This amendment would require the Secretary of State to consult a National Park authority, if the area of a council which the Secretary of State is designating is within, or is, the area of that National Park.

Amendment 85, page 11, line 1, leave out clause 9.

This amendment would remove the Bill’s provision to grant mayors of CAs and CCAs the power to appoint commissioners to deliver policy.

Amendment 161, in clause 9, page 11, line 4, leave out “not more than 7”.

This amendment would remove the statutory cap on the number of commissioners that may be appointed by a mayoral authority.

Amendment 162, page 11, line 29, leave out “not more than 7”.

See explanatory statement for 161.

Amendment 77, in clause 19, page 23, line 6, at end insert—

“(f) funding which has been allocated to support the establishment of new strategic authorities.”

This amendment would require the annual report on devolution to include an account of funding provided to support the establishment of new strategic authorities.

Amendment 79, page 23, line 6, at end insert—

“(f) progress with the implementation of the strategy provided for in section [Duty to publish and implement a forward devolution strategy].”

This amendment is consequential on NC24.

Amendment 39, in clause 21, page 24, line 4, leave out subsection (b) and insert—

“(b) one or more of the following—

(i) health and social care;

(ii) planning;

(iii) environmental concerns;

(iv) funding;

(v) sustainability measures;

(vi) education;

(vii) transport provision and

(viii) green and community spaces.”

This amendment ensures that mayors must consider specific community matters when consulting with local partners.

Amendment 27, in clause 40, page 41, line 11 , at end insert—

“(2A) In section 144, after subsection (1) insert—

‘(1A) In exercising powers under subsection (1) the relevant authority must engage with town and parish council within its area.

(1B) Engagement under subsection (1A) must include—

(a) consulting town and parish councils on tourism strategies, policies, and investment priorities; and

(b) creating opportunities for town and parish councils to contribute to activities relating to the exercising powers under subsection (1).

(1C) In exercising powers under subsection (1) the relevant authority must publish a report summarising the authority’s engagement with town and parish councils which includes—

(a) form of engagement used;

(b) the views of town and parish councils on the authority’s exercise of powers under subsection (1); and

(c) the role of town and parish councils in exercising powers under subsection (1).

(1D) The Secretary of State may issue guidance regarding requirements for engagement under subsection (1A).’”

This amendment would require local and/or strategic authorities exercising powers to encourage visitors to their area to engage with town and parish councils.

Amendment 75, in clause 43, page 44, line 21, at end insert—

“(2A) The Secretary of State has a duty to ensure that a combined authority has sufficient financial resources and adequate administrative support the duties in subsections (1) and (2).

(2B) In discharging the duty under subsection (2A), the Secretary of State must regularly review the financial and administrative needs of a combined authority insofar as they relate to the needs described in subsection (1).”

This amendment would require the Secretary of State to review the financial and administrative needs of combined authorities with regard to reducing health inequalities in their areas.

Government amendment 116.

Amendment 92, in clause 43, page 44, line 31, leave out “prosperity” and insert “poverty and socio-economic inequality”.

This amendment is linked to Amendment 93 which would ensure that the health improvement and health inequalities duty focuses explicitly on tackling poverty and socio-economic inequality, rather than using the broader term “prosperity”.

Amendment 72, page 44, line 36 , at end insert—

“(e) nitrogen dioxide level and general air quality,”.

This amendment would include air quality as a general health determinant which combined authorities must consider in their duty to reduce health inequalities.

Amendment 87, page 44, line 36, at end insert—

“(e) access to green space and nature,

(f) exposure to environmental harms, including air pollution, water pollution, land pollution, and any other form of environmental pollution,”.

This amendment would expand the list of general health determinants for the purposes of the new health improvement and health inequalities duty as it applies to CCAs, so it includes access to green space; and exposure to environmental harm.

Amendment 88, page 45, line 3, at end insert—

“(5A) In subsection (5)(e), the reference to “green space and nature” includes—

(a) any multifunctional green and blue space, and

(b) any urban or rural natural feature,

that is considered to deliver any environmental, economic, health and wellbeing benefits for communities and nature.”

This amendment is consequential on Amendment 87 and describes “green space and nature” for the purpose of this section.

Amendment 172, page 45, line 11, at end insert—

“107ZBA health inequalities strategy

(1) Each strategic authority must prepare and publish a health inequalities strategy setting out how it will operationalise the duty under section 107ZB.

(2) The strategy may be a standalone document or incorporated within another statutory or strategic plan of the authority.

(3) The strategy must promote health improvement and the reduction of health inequalities between persons living in the strategic authority area.

(4) In preparing the strategy, an authority must have regard to relevant national and local strategies relating to health improvement and the reduction of health inequalities.

(5) The strategy must set locally appropriate targets and policies designed to meet them, set for the end of a 10- year period beginning on the day on which the strategy is published.

(6) The metrics may include, but need not be limited to metrics relating to—

(a) healthy life expectancy,

(b) infant mortality rate, and

(c) poverty (including the child poverty rate).

(7) The strategic authority must, once every five years, alongside its local growth plan, produce and make publicly available a report on progress against the strategy.”

Amendment 76, page 45, line 21, at end insert—

“(2A) The Secretary of State has a duty to ensure that a CCA has sufficient financial resources and adequate administrative support to have regard to the needs described in subsection (1).

(2B) In discharging the duty under subsection (2A), the Secretary of State must regularly review the financial and administrative needs of a CCA insofar as they relate to the needs described in subsection (1).”

This amendment would require the Secretary of State to review the financial and administrative needs of CCAs with regard to reducing health inequalities in their areas.

Government amendment 117.

Amendment 93, page 45, line 31, leave out “prosperity” and insert “poverty and socio-economic inequality”.

This amendment is linked to Amendment 92 which would ensure that the health improvement and health inequalities duty focuses explicitly on tackling poverty and socio-economic inequality, rather than using the broader term “prosperity”.

Amendment 73, page 45, line 36, at end insert—

“(e) nitrogen dioxide level and general air quality,”.

This amendment would include air quality as a general health determinant which CCAs must consider in their duty to reduce health inequalities.

Amendment 89, page 45, line 36, at end insert—

“(e) access to green space and nature,

(f) exposure to environmental harms, including air pollution, water pollution, land pollution, and any other form of environmental pollution,”.

This amendment would expand the list of general health determinants for the purposes of the new health improvement and health inequalities duty as it applies to CCAs, so it includes access to green space; and exposure to environmental harm.

Amendment 90, page 45, line 39, at end insert—

“(5A) In subsection (5)(e), the reference to ‘green space and nature’ includes—

(a) any multifunctional green and blue space, and

(b) any urban or rural natural feature,

that is considered to deliver any environmental, economic, health and wellbeing benefits for communities and nature.”

This amendment is consequential on Amendment 87 and describes “green space and nature” for the purpose of this section.

Government amendment 118.

Amendment 47, in clause 45, page 50, line 31, at end insert—

“(c) a draft of any such order is subject to the affirmative procedure.”

This amendment would ensure that regulations made by the Secretary of State to alter the size of PCC areas when transferring powers of PCCs to strategic authorities receive parliamentary scrutiny.

Amendment 48, in clause 46, page 53, line 43, at end insert—

“(7) Regulations made under this section are subject to the affirmative procedure.”

This amendment would ensure that regulations made by the Secretary of State regarding the functions of fire and rescue authorities receive parliamentary scrutiny.

Amendment 40, in clause 49, page 55, line 15, leave out subsection (3) and insert—

“(3) Where a notification under subsection (1) is given, the Secretary of State must, within the period of six months beginning with the day on which the notification is given, give effect to the change or changes proposed by the mayor or mayors.

(4) Effect may be given under subsection (3) by means of regulations made by statutory instrument.

(5) A statutory instrument made under subsection (4) is —

(a) subject to the affirmative procedure if it—

(i) amends an Act of Parliament, or

(ii) confers or modifies a function which relates to an area of competence;

(b) where neither of the conditions in paragraph (a) apply, subject to the negative procedure.”

This amendment creates a statutory duty on the Secretary of State to seek parliamentary approval before implementing mayoral requests for greater powers over funding or legal changes.

Amendment 36, page 55, line 21, at end insert—

“(4) No decision under subsection (3) may be implemented unless—

(a) the Secretary of State has made regulations giving effect to the decision,

(b) a statutory instrument containing the regulations has been laid before and approved by both Houses of Parliament, and

(c) save as where provided for otherwise, regulations giving effect to any decision made under section are subject to the affirmative procedure.”

This amendment would require any decision of the Secretary of State following a request from a local authority to be implemented by statutory instrument subject to the affirmative procedure.

Government new schedule 1—Charges payable by undertakers executing works in maintainable highways.

Government new schedule 2—Licensing functions of the Mayor of London.

Amendment 8, in schedule 1, page 81, line 15, leave out subparagraph (b).

This amendment, and Amendments 9 to 15, remove the ability of the Secretary of State to create, or make certain changes to the governance or composition of, combined authorities without consent of the councils involved.

Amendment 9, page 81, line 33, leave out subparagraph (b).

See explanatory statement for Amendment 8.

Amendment 10, page 82, line 18, leave out “subsections (3) to (5)” and insert “subsection (3)”.

See explanatory statement for Amendment 8.

Amendment 11, page 83, line 6, leave out paragraph 8.

See explanatory statement for Amendment 8.

Amendment 12, page 83, line 8, leave out paragraph 9.

See explanatory statement for Amendment 8.

Amendment 13, page 84, line 36, leave out paragraph 16.

See explanatory statement for Amendment 8.

Amendment 169, page 85, line 10, at end insert—

“(3A) The proposal does not include Cornwall Council, or any area under the authority of Cornwall Council.”.

This amendment would prevent the Secretary of State from making a proposal to establish a combined authority which includes Cornwall or any area under the authority of Cornwall Council.

Amendment 54, page 85, line 27, at end insert—

“(6A) The Secretary of State must consult town and parish councils within the proposed new combined authority area.”

This amendment would require the Secretary of State to consult town and parish councils prior to proposing a new combined authority in the area in which they are situated.

Amendment 166, page 85, line 27, at end insert—

“(6A) If the proposed area is within, or is, the area of a National Park the Secretary of State must consult with the authority for that National Park.”

This amendment would require the Secretary of State to consult a National Park authority, if the proposed area for a new combined authority is within, or is, the area of that National Park.

Amendment 170, page 85, line 40, at end insert—

“(1A) The order does not include Cornwall Council, or any area under the authority of Cornwall Council”.

This amendment would prevent the Secretary of State from making an order to establish a combined authority which includes Cornwall or any area under the authority of Cornwall Council.

Amendment 105, page 86, line 28, at end insert—

“(7A) A referendum has been held in which residents of the proposed combined authority have consented to the area being established as a combined authority.”

This amendment would create a requirement for a referendum to be held prior to the Secretary of State making an order to establish a combined authority.

Amendment 62, page 86, line 37, at end insert—

“(8A) The Secretary of State must make provision to ensure the combined authority receives adequate funding to facilitate its establishment.”

This amendment would require the Secretary of State to ensure that combined authorities receive adequate funding to facilitate their establishment.

Amendment 14, page 88, line 14, leave out paragraph 19.

See explanatory statement for Amendment 8.

Amendment 50, page 88, line 20, at end insert—

“(1A) The Secretary of State has obtained consent for the proposal from any affected local government area.”

This amendment would require the Secretary of State to obtain consent from all affected areas in preparing a proposal to add a local government area to an existing area of a combined county authority.

Amendment 171, page 88, line 20, at end insert—

“(1A) The proposal does not include Cornwall Council, or any area under the authority of Cornwall Council”.

This amendment would prevent the Secretary of State from making a proposal to add a local government area to an existing area of a combined authority if the area in the proposal includes Cornwall or any area under the authority of Cornwall Council.

Amendment 167, page 88, line 41, at end insert—

“(5A) If the proposed local government area or existing area is within, or is, the area of a National Park the Secretary of State must consult with the authority for that National Park.”

This amendment would require the Secretary of State to consult a National Park authority, if the local government area or existing area the Secretary of State proposes to merge is within, or is, the area of that National Park.

Amendment 55, page 89, line 2, after “to” insert “and thereafter consult with”.

This amendment would require the Secretary of State to consult with any of the relevant councils and persons given notice that an area is being proposed to be added to an existing combined authority.

Amendment 56, page 89, line 9, at end insert—

“(da) any town and parish councils whose area would be added to the area of the combined authority, and”.

This amendment would require the Secretary of State to consult local councils prior to proposing the area in which they are situated is added to an existing combined authority.

Amendment 51, page 89, leave out from beginning of line 25 to end of line 12 on page 90.

This amendment would remove the Bill’s provision for the Secretary of State to have powers to prepare a proposal for there to be a mayor for the area of an existing combined authority.

Amendment 15, page 90, line 13, leave out paragraph 20.

See explanatory statement for Amendment 8.

Amendment 16, page 94, line 36, leave out subparagraph (b).

This amendment, and Amendments 16 to 21, remove the ability of the Secretary of State to create, or make certain changes to the governance or composition of, combined county authorities without the consent of the councils involved.

Amendment 17, page 95, line 21, leave out subparagraph (b).

See explanatory statement for Amendment 15.

Amendment 18, page 97, line 10, leave out paragraph 33.

See explanatory statement for Amendment 15.

Amendment 19, page 97, line 12, leave out paragraph 34.

See explanatory statement for Amendment 15.

Amendment 52, page 98, line 22, leave out paragraphs 37 and 38.

This amendment would remove the Bill’s provision for the Secretary of State to have powers to prepare a proposal for the establishment of a CCA without a public consultation.

Amendment 20, page 98, line 34, leave out paragraph 38.

See explanatory statement for Amendment 15.

Amendment 164, page 99, line 27, at end insert—

“(6A) If the proposed area is within, or is, the area of a National Park the Secretary of State must consult with the authority for that National Park.”

This amendment would require the Secretary of State to consult a National Park authority, if the proposed area for a CCA is within, or is, the area of that National Park.

Amendment 106, page 100, line 26, at end insert—

“(7A) A referendum has been held in which residents of the proposed CCA have consented to the area being established as a CCA.”

This amendment would create a requirement for a referendum to be held prior to the Secretary of State making regulations to establish a CCA.

Amendment 21, page 102, line 16, leave out paragraph 41.

See explanatory statement for Amendment 15.

Amendment 22, page 104, line 13, leave out paragraph 42.

See explanatory statement for Amendment 15.

Amendment 86, page 112, line 1, leave out Schedule 3.

This amendment is consequential on Amendment 85.

Amendment 163, in schedule 3, page 113, leave out lines 1 to 32.

This amendment removes restrictions limiting appointments by mayors to one commissioner per competence.

Government amendments 122 to 124.

Amendment 24, page 117, line 25, at end insert—

“(2A) The relevant remuneration panel may not recommend allowances which exceed the amount paid in salary to a person employed at director level within the relevant authority.”

This amendment ensures that Commissioners cannot be paid more than Directors working for the authority.

Amendment 151, page 120, line 32, at end insert

“or,—

(c) prevent the commissioner from operating collaboratively with other commissioners across different areas of competence, recognising that the work of commissioners will often intersect and benefit from integrated working with a spatial lens to meet the needs of, and drive positive outcomes for specific places as a whole.”

This amendment broadens the scope of paragraph 4 of this Schedule to ensure that commissioners appointed by the mayor for the area of a combined authority are not only permitted to work incidentally across areas of competence but are also encouraged to do so collaboratively and with a spatial, place-based perspective.

Government amendments 125 to 134.

Amendment 23, in schedule 5, page 136, line 11, at end insert—

“(3) The regulations must include a requirement for the license holder to maintain sufficient docking space for the micromobility vehicles for which they hold a license.

(4) The regulations must include requirements for license holders which would require them to ensure that the micromobility vehicles for which they hold a license do not obstruct any highway, cycling path, footpath, bridlepath, or subway.

(5) The regulations must stipulate that failure of license holders to comply with subsections (3) and (4) will warrant a loss of license.”

This amendment would require that regulations ensure that license holders for micromobility vehicles are responsible for maintaining sufficient docking space for their vehicle and ensuring their vehicle does not obstruct any highways or public paths, or else lose their license.

Government amendment 137.

Amendment 35, in schedule 7, page 146, line 22, at end insert—

‘3 “(1) Part 1 of Schedule 7 of the Traffic Management Act 2004 is amended as follows.

(2) After paragraph (4) insert—

4A “(1) There is a parking contravention in England if a person causes an obstruction which, without lawful authority or excuse, causes or permits a motor vehicle to stand on a pavement in such a manner as to wilfully obstruct free passage along the pavement.

(2) A parking contravention under subparagraph (1) is a civil offence which may be enforced by the local authority in which the contravention has occurred.

(3) The relevant local authority under subparagraph (2) may issue penalty charges for a civil offence under subsection (2).

(4) The amount for a penalty charge under subparagraph (3) shall be determined by regulations made by the Secretary of State.

(5) Regulations under subparagraph (4) may specify different penalty charge amounts based on—

(a) the obstructing vehicle class,

(b) the area of the local authority in which the obstruction has occurred, or

(c) any other relevant circumstantial consideration.

(6) In this paragraph—

(a) “motor vehicle” has the meaning given in section 136 of the Road Traffic Regulation Act 1984, and

(b) “pavement” has the meaning given in section 72 of the Highway Act 1835.

4B (1) Penalty charge amounts for parking contraventions under this Part may be set by the relevant local authority.

(2) Amounts under subparagraph (1) must align with provisions under section 77 of this Act.

(3) Amounts under subparagraph (1) must have regard to any regulations made under section 87 of this Act.

(4) Amounts under subparagraph (1) must be published by the local authority and may be revised from time to time.”’

This amendment would allow local authorities to enforce obstructive pavement parking within their areas as a civil offence and devolves the power to set parking penalty charge amounts for all parking penalty charge offences to local authorities.

Amendment 74, in schedule 7, page 146, line 22, insert—

‘3 “(1) After Paragraph 10 of Schedule 8 to the Traffic Management Act 2004, insert—

“Exercise of functions relating to civil enforcement

11 Any functions related to civil enforcement described by this schedule must be exercised directly by—

(a) the elected mayor for the area of an authority, or

(b) a member of an authority who is an elected member of a constituent council.”’

This amendment ensures civil enforcement powers, when exercised by CAs and CCAs, must be under the direction of elected officials.

Government amendments 138 to 144.

Amendment 25, in schedule 12, page 174, line 24, at end insert—

“61DCB Density requirement

(1) A strategic authority issuing a mayoral development order must prioritise applications which—

(a) will deliver greater density in urban areas,

(b) are located in areas with greater public transportation accessibility according to the indices established by subsection (2), or

(c) if located within the Greater London Authority, are located in areas with a Transport for London Public Transport Accessibility level equal or greater than Level 4.

(2) A strategic authority must create ‘public transport accessibility index’ to categorise areas within the authority based on their proximity to public transportation.

(3) A strategic authority must issue a mayoral development order for any land which has been previously developed.”

This amendment would require mayoral development orders (MDOs) to prioritise planning applications in areas of high urban density and public transport accessibility, and would require MDOs to be issued for previously developed land.

Government amendments 145 and 146.

Amendment 71, page 175, line 22 at end insert—

“(ba) After subsection (1BB), insert—

“(1BBA) When exercising any power under this section, the mayor of a relevant authority must ensure—

(a) any plans received comply with any Strategic Spatial Energy Plan for the area, and

(b) any plans comply with any Land Use Framework applicable to the area”.’

This amendment requires mayors to ensure that when making decisions relating to planning applications, the planning applications have regard to any Strategic Spatial Energy Plan and, or Land Use Framework in place for the area.

Government amendments 147 to 149.

Amendment 26, in schedule 17, page 207, line 27, at end insert—

“7A After section 202, insert—

‘202A: restrictions on designation of greenfield land

Where an MDC exercises any functions in relation to the designation of land for development, the MDC must not designate any development on greenfield land unless there is no available land that has not previously been developed.’”

Amendment 69, page 210, line 12, leave out from “that” to end of line 13 and insert

“the majority of members of an MDC are elected members of relevant councils”.

This amendment would require that the make-up of Mayoral Development Corporation boards must have a majority of members from constituent councils.

Amendment 65, in schedule 19, page 214, line 30, at end insert—

“(d) comply with any Land Use Framework issued by the Secretary of State, and

(e) comply with any local nature recovery strategies applicable to the area covered by the authority.

(2A) The Secretary of State must take steps to support a mayoral combined authority in complying with the provisions of paragraphs (2)(d) and (2)(e) of this section.”

This amendment requires mayoral combined authorities to ensure their local growth plans comply with any overarching Land Use Framework and relevant local nature recovery strategies.

Amendment 80, page 214, line 30, at end insert—

“(d) identify the plan’s contribution to targets set out by—

(i) sections 1 to 3 of the Environment Act 2021,

(ii) Part 1 of the Climate Change Act 2008, and

(iii) the Air Quality Standards Regulations 2010.”

This amendment would require combined authorities to have regard to targets set by the Environment Act 2021, Climate Change Act 2008, and Air Quality Standards Regulations 2010 in developing local growth plans.

Amendment 159, page 214, line 30, at end insert—

“(2A) The mayoral combined authority must include amongst the projects identified measures that will promote growth through the safeguarding and promotion of existing cultural, creative, and community infrastructure such as grassroots music venues, theatres and other live performance spaces.”

Amendment 173, page 214, line 30, at end insert—

“(d) take account of the statutory health duty and health inequalities strategy prepared by the strategic authority, and

(e) promote community wealth building, cooperatives, mutuals and the wider social economy as mechanisms to narrow health inequalities.”

Amendment 174, page 214, line 30, at end insert—

“(2A) In preparing a local growth plan, a mayoral combined authority must make specific reference to the proposed benefits of the plan on areas which are rural, remote, or coastal.”

This amendment would require local growth plans to make specific reference to the proposed benefits of the plan on rural, remote and coastal areas.

Amendment 83, page 215, line 19, at end insert—

“107MA Funding and support relating for local growth plans

‘(1) The Secretary of State has a duty to ensure that mayoral combined authorities have sufficient financial resources and adequate administrative support to discharge effectively any functions relating to the—

(a) preparation,

(b) publication, and

(c) delivery

of local growth plans.

(2) In discharging the duty under subsection (1), the Secretary of State must regularly review the financial and administrative needs of mayoral combined authorities in respect of functions relating to local growth plans, taking into account the—

(a) strategic importance, and

(b) complexity

of any such plans.’.”

This amendment creates a requirement for regular reviews of the needs of mayoral combined authorities with regard to local growth plans.

Amendment 66, page 216, line 29, at end insert—

“(d) comply with any Land Use Framework applicable to the area covered by the authority, and

(e) comply with any local nature recovery strategies applicable to the area covered by the authority.”

“(2A) The Secretary of State must make provision to support a mayoral CCA in complying with the provisions of paragraphs (2)(d) and (2)(e) of this section.”

This amendment requires mayoral CCAs to ensure their local growth plans comply with any overarching Land Use Framework and relevant local nature recovery strategies.

Amendment 81, page 216, line 29, at end insert—

“(d) identify the plan’s contribution to targets set out by—

(i) sections 1 to 3 of the Environment Act 2021,

(ii) Part 1 of the Climate Change Act 2008, and

(iii) the Air Quality Standards Regulations 2010.”

This amendment would require combined authorities to have regard to targets set by the Environment Act 2021, Climate Change Act 2008, and Air Quality Standards Regulations 2010 in developing local growth plans.

Amendment 160, page 216, line 29, at end insert—

“(2A) The mayoral CCA must include amongst the projects identified measures that will promote growth through the safeguarding and promotion of existing cultural, creative, and community infrastructure such as grassroots music venues, theatres and other live performance spaces.”

Amendment 84, page 217, line 15, at end insert—

“32BA Funding and support relating to local growth plans

(1) The Secretary of State has a duty to ensure that mayoral CCAs have sufficient financial resources and adequate administrative support to discharge effectively any functions relating to the—

(a) preparation,

(b) publication, and

(c) delivery

of local growth plans.

(2) In discharging the duty under subsection (1), the Secretary of State must regularly review the financial and administrative needs of mayoral CCAs in respect of functions relating to local growth plans, taking into account the—

(a) strategic importance, and

(b) complexity

of any such plans.”

This amendment creates a requirement for regular reviews of the needs of mayoral CCAs with regard to local growth plans.

Amendment 49, in schedule 21, page 224, leave out lines 6 to 12.

This amendment would remove the provision to allow mayors to appoint a person to manage policing and crime for their area.

Government amendments 112, 135, 136 and 113.

[Miatta Fahnbulleh]

I am delighted to bring the English Devolution and Community Empowerment Bill back to the House on Report. Before I go any further, I would like to place on the record my gratitude to Members from across the House for their continued engagement on this Bill, and in particular to the Chairs and members of the Public Bill Committee for their diligent and thoughtful contributions to line-by-line scrutiny.

This Bill will secure the biggest transfer of power out of Whitehall to our regions and communities in a generation. At its heart is the principle that if we take power out of Westminster and Whitehall and place it in the hands of local leaders and communities who know their patch, we can unlock the economic potential of places, revive communities that have been held back for too long, and deliver for people in the places where they live, raise a family and work.

We will provide mayors and their strategic authorities with new powers over planning, housing, transport and regeneration so that they can get Britain building and unleash the economic potential of their areas. We will reform and rebuild local government so that it can once again deliver good local services that people can rely on, and we will empower local communities to shape their places so that they can drive the change they want to see on their doorstep.

[Wendy Morton (Aldridge-Brownhills) (Con)]

Can the Minister assure me that the devolution of powers to our mayors—the west midlands is a really good example, because we have had a mayor for a number of years—will be accompanied by a devolution of accountability and scrutiny to local councillors and, importantly, to local communities? I fear that that is exactly what is missing and continues to be missing in this piece of legislation.

[Miatta Fahnbulleh]

Absolutely. We are very clear that with powers come responsibility and accountability. We are strengthening scrutiny powers for local government, and we will continue to look at ways in which we can strengthen scrutiny and accountability powers for mayors. We are absolutely clear that we have got to devolve power, but alongside that it is really important that local people can hold to account the institutions we are creating and building.

Since the Bill left this Chamber after Second Reading, the Government have made a modest number of amendments to ensure that it will operate as intended. To be clear, we have not introduced significant new policy; rather, we have responded to concerns raised by Members in the best traditions of parliamentary scrutiny. I am therefore confident that we are bringing a better Bill back on Report.

Today’s debate is concerned with parts 1 and 2 of the Bill, on strategic authorities and their powers, duties and functions. Many of our amendments are minor and technical, and I will therefore focus on explaining the more substantive changes we made in Committee and the further amendments we have brought forward on Report that relate to these parts of the Bill.

[Sir Bernard Jenkin (Harwich and North Essex) (Con)]

It is the Government’s clear intention to devolve powers, but in the reorganisation of local government, the Government are taking sweeping powers to determine the outcome of any reorganisation—in Essex, for example. Will the Minister undertake to listen to the consultation and to reflect the consultation responses in the decision that the Government take? Currently in the Bill, there is no obligation on them to do so.

[Miatta Fahnbulleh]

We are very clear that the process of local government reorganisation should be driven by local areas. That is why we are going through a process in which local areas are coming up with proposals, and consulting constituent authorities and their communities. We will then make a decision based on those proposals.

It is very clear that this Bill is about devolution. Yes, there is a backstop power, but it is not one that we intend to use; it will be used only in extreme cases. The process of local government reorganisation is proceeding at the moment, and all areas in that process are engaging. Proposals are coming forward, and we will make decisions based on those proposals.

At the heart of the reorganisation is an objective: to have local authorities that are more sustainable and that can deliver for their local people. That is the central purpose of reorganisation, and it is something that we are absolutely committed to delivering.

[Paul Holmes (Hamble Valley) (Con)]

I echo the point made by my hon. Friend the Member for Harwich and North Essex (Sir Bernard Jenkin). In Committee, the Minister outlined that she wants this process to be a happy one, but may I ask her to confirm one point on the Floor of the House? If local authorities do not wish to go through local government reorganisation, this Government will force them to do so, won’t they?

[Miatta Fahnbulleh]

The Opposition have some cheek to raise that point, because on their watch, local government was put under a huge amount of pressure. Reorganisation should have happened on their watch, but they ducked it; we are now gripping this issue and driving the change. We are not doing this for the fun of it, but because we are very clear that we need to deliver for local people. We need services that make sense and geographies that make sense—that can deliver the outcomes we want in places. We are going through a process, and all areas are engaging with that process in good faith. We will see their proposals, and my colleague in the Department will make a decision based on the criteria we have explicitly and transparently set out.

[Jim Shannon (Strangford) (DUP)]

Will the Minister give way?

[Miatta Fahnbulleh]

I will make some progress on the things we will be debating today. In Committee, we amended schedules 1 and 9 to the Bill to state that combined foundation strategic authorities’ decisions on adopting local transport plans and agreeing their budgets will require the unanimous agreement of all constituent councils. This recognises that budget setting and the local transport plan are key strategic decisions that all councils should agree to in the absence of a mayor with a clear democratic mandate. Further amendments to schedule 1 will also require the consent of relevant constituent councils in matters that could result in a financial liability on that council.

Moreover, we believe that strategic authorities are uniquely placed to understand the demands for education and training places in their areas. We have therefore widened duties on strategic authorities to work with their constituent councils to plan provision locally and ensure that enough education and training is provided in their areas. This will ensure that the needs of those aged 16 to 18 and those aged over 19 with an education, health and care plan are met. We have also ensured that at least one full academic year will pass between the establishment or designation of a new strategic authority and that authority being able to exercise the six adult education functions. This approach is in line with that taken for strategic authorities that already exercise those functions.

Turning to local growth plans, we have expanded the definition of relevant bodies that can be named in secondary legislation that must have regard to the shared local growth priorities that the Government agree with mayors. This reflects our original intentions as set out in the White Paper. It is essential that mayors know that their agreed priorities will be acted on, and that all parts of Government are pulling in the same direction to grow the economy.

I now turn to the more substantive amendments that the Government are making on Report to these parts of the Bill. The Bill already provides mayoral strategic authorities with the general power of competence. As currently drafted, schedule 4 allows non-mayoral combined authorities and non-mayoral combined county authorities to exercise the general power of competence only for the purposes of economic development and regeneration. Our amendments remove that restriction, ensuring that all combined authorities and combined county authorities can make full use in the same way as local authorities of the general power of competence.

[Jim Shannon]

I will not be the only MP who has received correspondence from the Country Land and Business Association. That organisation is quite clear that it fears that rural regions will be left behind, and is worried about mayors taking unprecedented control over transport, housing, planning, skills and economic development. How can the Minister assure all of us in this House that mayors will understand what uses of those powers will genuinely support rural businesses, which must not be left behind?

[Miatta Fahnbulleh]

I thank the hon. Member for raising the issue of rural areas. As we see mayors in more rural areas, it will be incumbent on them to respond to the priorities and needs of their local people. That is the beauty of the democracy we are putting in place—it is the beauty of the fact that mayors will be democratically elected. In areas where mayors cover rural areas, we are seeing that those mayors are absolutely clear about the challenges in the rural economy and are working to ensure that their economic and investment plans address those challenges. That is what I expect, because at the end of this process is a democratic lock, and if a mayor does not respond to the challenges in their local area, local people can vote them out.

[Richard Foord (Honiton and Sidmouth) (LD)]

During the debate on the Planning and Infrastructure Bill, the Minister for Housing and Planning said that the Government would use the devolution Bill to strengthen the status of assets of community value. Will the Minister confirm that this Bill will indeed strengthen that status, so that we do not see such assets being demolished in pursuit of new housing?

[Miatta Fahnbulleh]

We will be moving on to talk about community right to buy and assets of community value. We are clear that communities should be able to identify assets of community value and ensure that they are protected. We are looking to give communities greater power to take on those assets. We are clear that every community will have those assets that they value. This Bill will ensure that we give them the power and the tools to protect those assets.

I will move on to another key amendment that we are making on Report. I am sure that Members across the House would agree that London’s pubs and restaurants are the beating heart of our cultural life. They contribute to our capital’s world-class status and the growth of our economy, yet for too long hospitality businesses have been held back by a licensing regime that lacks proportionality, consistency and transparency. That is why we are bringing forward amendments to pilot a new licensing regime in London. It will give hospitality businesses greater confidence and create the conditions for London’s night-time economy to thrive.

The amendments will give the Mayor of London the power to publish a strategic licensing policy for hospitality venues within London’s night-time economy, which licensing authorities in Greater London will have a duty to “have regard to” when carrying out their licensing function. The Mayor of London will also be made a statutory consultee on licensing authority policies, and the Greater London Authority will become a responsible authority in the licensing process.

The amendments will also introduce a call-in power for the Mayor of London for borough licensing applications of strategic importance.

[Florence Eshalomi (Vauxhall and Camberwell Green) (Lab/Co-op)]

I thank the Minister for outlining the new power that the Government are looking at. I had a meeting this morning with two of my neighbouring parliamentary colleagues, my hon. Friends the Members for Dulwich and West Norwood (Helen Hayes) and for Clapham and Brixton Hill (Bell Ribeiro-Addy). In some areas, we are seeing licensing policies that are having a detrimental impact on local communities. Does the Minister agree that in the proposals she is outlining there is still a crucial role for local licensing authorities, where our hard-working councillors are working with the community to determine which licensing applications come forward?

[Miatta Fahnbulleh]

My hon. Friend is absolutely right to highlight this issue. We are clear that the local licensing authority will continue to be the key authority, and such things as licensing fees will flow to those local authorities. This measure creates the ability for the Mayor of London to call things in, in particular instances where we think that the licensing will work for areas of strategic importance. In so doing, the mayor will invariably have to work with the local licensing authority and the community, because whatever is done—the mayor is elected—must be done with the support of the local community.

I will turn to planning and empowering our mayors to unlock housing and infrastructure.

[Wera Hobhouse (Bath) (LD)]

Will the Minister give way?

[Miatta Fahnbulleh]

I will make a little more progress, and then I will give way. The Bill provides mayors of strategic authorities with the ability to intervene in planning applications of potential strategic importance and to make mayoral development orders to better support growth in their area. Those powers are currently only available to the Mayor of London. When a mayor decides that they will become a local planning authority for an application of potential strategic importance, our amendment will enable them to choose between either a written representation procedure or an oral hearing, so that applicants, local planning authorities and other parties can make representations before a final decision is made.

To be clear, we want oral hearings to continue to be an important part of mayoral decision making. Applications of potential strategic importance that a mayor is dealing with will often be significant developments with wider ramifications for the area, so it is crucial that there is an opportunity to make direct representation to the mayor. However, an oral hearing may not be necessary for certain applications where planning matters may be less substantial, such as where an application deals with a variation to an earlier permission and the planning matter has already been established. We believe that this provision, which creates options and gives flexibility to the mayor, could save up to several months, such as by avoiding an unnecessary repeated oral hearing period.

[Wendy Morton]

I am concerned that this measure will result in a railroading of planning applications, which will impact on constituencies such as mine, on the periphery of the west midlands. What specific safeguards will the Minister be putting in place to ensure that ward councillors, local planning committees and local Members of Parliament continue to have a voice? At the moment, the Mayor of the West Midlands does not even reply to my letters.

[Miatta Fahnbulleh]

We are clear that where a mayoral development order is being put in place, there will be processes and procedures that the mayor will have to set out so that people can make direct representation. Ultimately, I come back to the fact that mayors will be democratically elected. Therefore, the need to consult will be critical, whether that is with their constituent authorities in order to deliver or, importantly, with their community, who can vote them in or out. We have set out and designed this measure to allow that representation and that consultation. Ultimately, there is a democratic lock if a mayor does not abide with that engagement.

Amendments to schedule 12 remove the need for the mayor to secure the local planning authority’s approval before making, revising or revoking a mayoral development order. I reiterate, however—this is important—that this change is not an attempt to bypass local planning authorities. Mayors will still have to bring those authorities along, as they will be crucial for delivering these orders. If mayors cannot build the consent and support of the local planning authority, it will be much more difficult to deliver the development and ensure that consents and approvals go through. The Bill is about empowering mayors, because we believe that they have a democratic mandate to provide that strategic leadership. Critically, they must and will do that in lockstep with their constituent authorities.

[Simon Hoare (North Dorset) (Con)]

Can the Minister say a word or two about her expectations for this new arrangement that she is creating—it will have some plus points and some minus points, because no system is perfect—and the timeliness of decision making? Investors and others want timely decisions so that they can move things forward, and not get lost in the weeds of officialdom, strategies, papers, consultations and so on. If we are to power growth, time is of the essence.

[Miatta Fahnbulleh]

I completely agree with the hon. Member. We want pace in planning and pace in development. One of the frustrations for us on the Government Benches is that we inherited a system where the development and the house building that should have happened did not happen under the last Government. We are trying to grip that, and through these mayoral development orders, we think we can deliver pace and strategic clarity so that our mayors can designate strategically important sites that are critical for investment in infrastructure and ensure that they happen, working alongside their constituent authorities.

[Wera Hobhouse]

The Minister mentioned the hospitality sector earlier, and I briefly want to come back to that. Bath council and I are seeking the power for local authorities to introduce a modest visitor levy, alongside our proposed 5% cut in VAT for hospitality. Does she agree that a visitor levy on overnight stays would generate a new ringfenced revenue stream for the hospitality sector, which would be beneficial?

[Miatta Fahnbulleh]

Mayors across the country have been strong advocates for a visitor levy, but the hon. Lady will forgive me, because that is within the Chancellor’s remit, and I would not dare to pre-empt anything that the Chancellor may or may not say in the Budget, which is only 48 hours away. Suffice it to say, our mayors have been making the case vociferously for the benefits of such a levy and what it could do for their visitor economy while critically enabling them to unlock some of the investment that they want in their areas.

I have been clear throughout this process that the devolution framework is the floor, not the ceiling, of our ambition. Where there are sensible opportunities for us to go further and devolve more powers to mayors, we should take them. We have therefore brought forward an amendment to devolve the approval of lane rental schemes from the Secretary of State for Transport to mayors of strategic authorities, putting the decision in the hands of those with knowledge of their area.

[Ruth Cadbury (Brentford and Isleworth) (Lab)]

rose—

[Ruth Cadbury]

Yes, I will do. I welcome the lane rental measure, which the Government put in the White Paper and is now in the Bill. However, why do the Secretary of State and the Minister not trust other authorities? Why does it apply only to elected mayoral authorities? Would it not be fair for all authorities to be able to use lane rental, which is so important in improving roadworks?

[Miatta Fahnbulleh]

Lane rentals are there for all highways authorities. This is about the approval of lane rentals, which currently sits with the Secretary of State for Transport. We think that if we can devolve that to another democratic person, namely the mayor, that will be a good and quick way to do lane rental—and it will, critically, ensure that we are responsive to what is required locally. I thank my hon. Friend the Member for Northampton South (Mike Reader) for his efforts in pushing an eminently sensible amendment.

--- Later in debate ---

[Madam Deputy Speaker (Judith Cummins)]

I call the Minister to wind up.

[Miatta Fahnbulleh]

With the leave of the House, I will respond to the debate. I thank Members from across the House for their thoughtful, robust and, at times, rather lengthy contributions to the debate.

The hon. Member for Hamble Valley (Paul Holmes) asked if the Bill is ready—absolutely, the Bill is ready. What we are doing is exactly what he accuses us of not doing: we are listening, responding to the scrutiny we received in Committee in interventions on the Minister for Housing and Planning, my hon. Friend the Member for Greenwich and Woolwich (Matthew Pennycook), and making amendments where we think they make sense. That is the way in which we think that we should drive through legislation, but we are clear about the core premise of the Bill.

The hon. Members for Hamble Valley, for Broxbourne (Lewis Cocking) and for Guildford (Zöe Franklin) all played around the theme that this is a centralising Bill that is looking to impose on places. I categorically reject that. The Bill will implement the biggest transfer of power that we have seen for a generation, which is something that the Conservatives did not do in 14 years. Let us take the example of local government reorganisation, which was raised by Members from across the House. This is a bottom-up, local-led process, where places have come up with proposals—[Interruption.] The proposals have come from places where there has been consultation with constituent authorities and local people. We are then judging the proposals that have been submitted against clear, transparent criteria that we have published.

Candidly, Conservative Members have some cheek asking us to retain the status quo—[Interruption.] The hon. Member for Hamble Valley says that he has two cheeks, but this is a serious matter. Frankly, we are not doing this reorganisation for fun, but because the Conservatives failed to grip the situation for 14 years. They under-invested in local government and stripped out capacity, so we now need to do the job of reforming local government so that it is fit for purpose and can deliver the local services that people across our country want to see.

[Paul Holmes]

Will the Minister give way?

[Miatta Fahnbulleh]

No, I will make a little more progress.

We are clear that this work has to be done with consultation and engagement, and that is what we are doing. To the point raised by the hon. Member for Mid Leicestershire (Mr Bedford) on a proposed referendum, let me say that we think that is disproportionate. The approach we are taking to consultation and engagement is the right one.

On the point about a referendum, let me turn to new clause 2, on a referendum on mayoral precepts at the same time. We are really clear that the democratic lock sits at the heart of this matter. Mayors who are democratically elected by their people are no more immune to the impacts of raising taxes than we are as national politicians, so the democratic process will ensure that mayors are balancing the need to raise a precept and invest in their community against the need to protect their people from tax rises.

I completely agree with the hon. Member for Hamble Valley that devolution works best when it is predicated on strong local partnerships. The strongest mayoral combined authorities are the ones in which the constituent authorities work in lockstep with the mayor; that is the model we have seen in Greater Manchester. We are very clear that partnership must sit at the heart of this matter, and that is the approach we are looking to support and enable through this Bill.

[Paul Holmes]

This honestly feels like groundhog day. Once again, the Minister has come here and said that this Bill is doing local government reform and devolution from the ground up. Will she therefore answer my question once again? She has heard many Members tonight say that local authorities do not want to reorganise. If they do not want to go ahead with it, will this Government force them to do it? The answer is yes, isn’t it?

[Miatta Fahnbulleh]

The clear thing for authorities across the country is that they recognise the status quo is not working. Conservative Members are criticising, yet they have no alternative. The status quo is not sustainable, because we had 14 years in which the Conservatives stripped local authorities of investment and denuded their capacity, so local authorities across the piece recognise that reform is necessary. I come back to the fact that we are reforming for a purpose; we are reforming to deliver stronger services at the appropriate level so that local authorities can deliver the outcomes that their people want.

Let me take the point around devolution and resources, which the hon. Members for Glastonbury and Somerton (Sarah Dyke) and for Guildford raised. We recognise that if devolution is going to be successful, our mayors and strategic authorities absolutely need the resources to do it well. That is why a new burdens assessment will always come in place where new responsibilities are placed on devolved authorities.

Critically, where we are devolving power—for example, to our priority areas—we are providing capacity funding. The principle that we will always ensure that places have the resources they need to do the job is absolutely right, because we care as much as our mayors and the Opposition parties care that we get devolution right and that it is delivering for people across the piece.

[Wendy Morton]

Will the Minister give way?

[Miatta Fahnbulleh]

I will make progress.

The hon. Member for Guildford pushed back on commissioners, and I disagree with her amendments. I agree with my hon. Friend the Member for Dunstable and Leighton Buzzard (Alex Mayer) that mayors need to be able to bring in additional expertise to do the very hard job that we and their voters ask them to do. Commissioners will be appointed by and accountable to mayors, and they will be subject to scrutiny. They are there to bolster the capacity and expertise of the mayor. All we are doing through the Bill is allowing the flexibility for the mayor to build the right team with the right skills and expertise in order to deliver the priorities for local people.

Let me turn to the strong advocacy by my hon. Friends the Members for Vauxhall and Camberwell Green (Florence Eshalomi) and for Uxbridge and South Ruislip (Danny Beales) for the tourism levy. Our mayors are advocating strongly for this measure. 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.

Let me pick up on the issue of CIL, which my hon. Friend the Member for Vauxhall and Camberwell Green and other Members spoke very powerfully about. We recognise that there is an issue here, one that needs to be addressed. We are committed to finding a solution; we will move quickly to do so, and we will set it out in due course. A number of Members also raised the question of the GLA powers, and I reassure my hon. Friend that the GLA already has an explicit power to acquire land for housing and regeneration. Existing safeguards remain in place, and the Bill does not change the current framework.

--- Later in debate ---

[Peter Fortune]

Again, the Minister is giving an example of an area in which the Mayor of London’s powers are expanding. The point I tried to make earlier—in an objective, non-political way—was that as the powers of the mayor expand, the power of the scrutiny body needs to expand to match that. Can the Minister reassure me that she heard what I suggested earlier and will take it forward?

[Miatta Fahnbulleh]

I heard both the point that the hon. Member has just made and the point he made during the debate. The model we have in London has been a successful one for 25 years. We will continue to work with the mayor and the constituent councils to build that partnership, and to look at ways in which we can strengthen not only the powers and responsibilities of the mayor, but their accountability.

Moving beyond London, I thank my hon. Friends the Members for Northampton South (Mike Reader), for Stoke-on-Trent South (Dr Gardner) and for Uxbridge and South Ruislip for highlighting the opportunities of devolution. It was great to hear that from Government Members—what we heard from Opposition Members on this topic was pretty disappointing—because we recognise the need to create strong institutions within a functional geography. We understand the opportunities in the south midlands and Staffordshire, and we want to see devolution across the country, whether through foundation strategic authorities or through mayors.

Let me directly address the point that was made by the hon. Member for Stratford-on-Avon (Manuela Perteghella), who has been a consistent and powerful champion for town and parish councils. We are very clear in the Bill that the objective is to take power out of Whitehall and Westminster and push it to the appropriate level, and there is absolutely a role for town and parish councils in that—I said that in Committee, and I will say it again. We are clear that certain powers must sit at the functional geography layer, where the mayor of the strategic authority is the right level. There are also powers that absolutely must sit with our local authorities, and there are powers that will sit with our neighbourhoods.

Members have mentioned that neighbourhood governance provision is unspecified in the Bill. That is deliberate, because we think that neighbourhood governance should be driven locally. We will set a series of principles in statutory guidance, but ultimately we want places to come up with the neighbourhood governance structure that works for them. In some places, that will mean building on the strength of town and parish councils; in other places, it will mean building on neighbourhood committees and neighbourhood forums. It is right that we allow that process to be led locally.

I will now turn to new clause 33, which the hon. Member for Mid Leicestershire spoke to, and the subject of joint planning committees. We do not think that the new clause is necessary, because provisions already exist to ensure joint working across authorities, including the creation of joint committees for the purpose of planning.

Finally, I will pick up on the point made by the hon. Member for St Neots and Mid Cambridgeshire (Ian Sollom) about the importance of skills. Skills have a critical role in driving economic development, and our strategic authorities and our mayors should grip that. We want to ensure that they are planning adult education provision. They are already working with employers and others to develop skills improvement plans, and we will look to build on that. I come back to the fact that we are creating provision for a right to request. I already know from conversations with our mayors that they are clear that they want more purchase and agency over adult skills. I anticipate that we will build on this area.

[John McDonnell (Hayes and Harlington) (Lab)]

I heard the word “finally”, and that moved me to intervene. I offer my support and thank the Government for amendments 116, 117 and 118 on air pollution, which render redundant the Government’s announcement tomorrow on the expansion of Heathrow. Before the Minister moves on, what is the Government’s attitude to new clause 29? It seems to embody many of the Government’s policies. If she will not accept that new clause tonight, will she work on some of the issues within it for the Bill’s next stage of consideration?

[Miatta Fahnbulleh]

I thank my right hon. Friend for raising new clause 29, which I was just coming to, and I thank my hon. Friend the Member for Stroud (Dr Opher) and other hon. Friends for championing the issue. We are clear that mayors and strategic authorities have an important role to play in the fight against the climate and ecological crisis. That is why climate and environment are included in the competences that will sit with strategic authorities under the Bill. We already have mayoral strategic authorities that are subject to the biodiversity duty. They are required to work with their constituent authorities to deliver air quality action plans. We are already seeing on the ground that our mayors and our strategic authorities are in the vanguard and are pushing, and I imagine they will continue to build on this area as they accumulate powers and more levers over this area.

We support the intention behind the poverty and equality duty, as I said in Committee. We think it is a thread that runs through the Bill. Any mayor and any strategic authority will fundamentally care about poverty and reducing inequality, and the functions within the Bill are the enablers of that.

[Siân Berry]

Will the Minister give way?

[Miatta Fahnbulleh]

I will not give way, because I think Members are getting rather irate and everyone wants to go home. I will finish with Cornwall and the points made by my hon. Friend the Member for Camborne and Redruth (Perran Moon). He has been a passionate and consistent advocate for Cornwall. We recognise Cornwall’s minority status and we will continue to safeguard that. We cannot accept the amendment, because it cuts across the powers that we want to put with mayors. I reassure him and other Members from Cornwall that we are committed to working to strengthen the devolution deal that we have already done with Cornwall to ensure that we are unlocking opportunity in the area.

[Andrew George]

Will the Minister give way?

[Miatta Fahnbulleh]

I will conclude. We are clear, despite the naysayers on the Opposition Benches, that this Bill is a fundamental step forward. It is the biggest transfer of power to our mayors, our local authorities and our communities. The driver behind the Bill is the principle that if we push power out and locate it in local people, we can drive the change that people want.

I end by saying this: the Bill is a floor, not the ceiling. We are determined to continue building on the devolution journey that we have started, putting power, agency and resources in the hands of local leaders and communities, because that is how we drive local change that can drive national change. I urge the House to support the Government’s amendments to this Bill to ensure that we can unlock the potential of devolution.

Question put and agreed to.

New clause 43 accordingly read a Second time, and added to the Bill.

New Clause 44

Licensing functions of the Mayor of London

“Schedule (licensing functions of the Mayor of London) amends the Licensing Act 2003 to confer licensing functions on the Mayor of London.”—(Miatta Fahnbulleh.)

This inserts new Schedule NS2 into the Bill conferring licensing functions on the Mayor of London.

Brought up, read the First and Second time, and added to the Bill.

New Clause 2

Council tax: CAs and CCAs to be subject to same increase as most county and unitary councils

“(1) The Local Government Finance Act 1992 is amended as follows.

(2) In section 52ZC, after subsection (4) insert—

‘(4A) Where, for the purposes of this section, the Secretary of State determines categories of authority for the year under consideration, one of the categories determined by the Secretary of State must include all mayoral combined authorities and CCAs (‘the CA and CCA category’).

(4B) Where the Secretary of State has determined a category that includes the majority of county and unitary councils (“a county and unitary category”), a principle that must be applied to the CA and CAA category is that the means of determining whether the relevant basic amount of council tax is excessive is the same as any means set out in a principle applied to the county and unitary category (but for the purposes of the determination references to any referendum principle for county and unitary councils that specifically relates to expenditure on adult social care should be discounted).’”—(Paul Holmes.)

This new clause would limit increases in the mayoral precept according to similar principles limiting council tax increases.

Brought up, and read the First time.

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

Oral Answers to Questions

Miatta Fahnbulleh Excerpts

Monday 24th November 2025 Commons Chamber

[Maureen Burke (Glasgow North East) (Lab)]

5. What assessment he has made of the potential impact of Pride in Place funding on Glasgow North East constituency.

[The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Miatta Fahnbulleh)]

Glasgow city will receive £1.5 million of Pride in Place impact funding to improve high streets and invest in community spaces and assets. In addition, neighbourhoods across Scotland will receive up to £20 million through our Pride in Place funding to transform their areas. We are working with the Scotland Office to announce the specific neighbourhoods included in phase 2. This is an exciting chance to put power, money and agency in the hands of communities that have been held back for too long, to drive the change that they want to see.

[Maureen Burke]

My survey of Glasgow North East constituents shows that there is real excitement about the possibility of Pride in Place funding coming their way. From parks and shopfronts to local connectivity, I have been inundated with incredible ideas to transform our corner of Glasgow. Will the Minister commit to giving my constituency bid her full consideration, and will she visit Glasgow North East to see the difference that the investment could make?

[Miatta Fahnbulleh]

I would be delighted to visit Glasgow North East and am pleased to hear of the local enthusiasm for our Pride in Place agenda and my hon. Friend’s work in supporting this locally and championing her constituency. We are working closely with the Scotland Office on phase 2 of the Pride in Place programme to confirm the specific neighbourhoods and will be announcing that shortly.

[Ian Sollom (St Neots and Mid Cambridgeshire) (LD)]

6. What the infrastructure requirements are for supporting the proposed new town at Tempsford.

--- Later in debate ---

[Rachel Hopkins (Luton South and South Bedfordshire) (Lab)]

7. What assessment he has made of the potential impact of Pride in Place funding on the Luton South and South Bedfordshire constituency.

[The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Miatta Fahnbulleh)]

We are providing £1.5 million from the Pride in Place impact fund to enable immediate work in Luton to develop community spaces and revitalise local high streets. Work is already under way on this, and I look forward to seeing the impact it will have locally.

[Rachel Hopkins]

I really welcome the £1.5 million Pride in Place impact funding awarded to Luton, and I have launched a survey with my hon. Friend the Member for Luton North (Sarah Owen) to find out what people want to see improved in our town. Does the Minister agree that local people’s voices must be at the heart of shaping the changes they want to see, and that this Labour Government are putting power and investment back in their hands?

[Miatta Fahnbulleh]

Yes, I agree 100%. May I just thank my hon. Friend for the work that she is doing to bring the voices of her community to the very heart of this? Our Pride in Place strategy represents a new way for Government to work that puts power, agency and the voice of our communities front and centre. We expect all local authorities in receipt of Pride in Place impact funding to work with their MPs and their community to deliver the change that local people want and to focus on local people’s priorities.

[Mr Tanmanjeet Singh Dhesi (Slough) (Lab)]

8. What mechanisms his Department has put in place to ensure that communities are consulted on the use of Pride in Place funding in the Slough constituency.

[The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Miatta Fahnbulleh)]

We are providing £1.5 million from the Pride in Place impact fund to enable immediate work in Slough to develop community spaces and revitalise local high streets. Local authorities must engage with their local MP and their residents. We have made that clear and we will continue to reiterate it.

[Mr Dhesi]

I have spoken to hundreds of my Slough constituents who are tired of having a high street where they do not feel safe, that lacks essential local amenities and that is devoid of community spaces, so I am delighted that this Labour Government have given our town, which has been neglected for too long, that £1.5 million Pride in Place boost. Does the Minister agree that it is essential that the local council uses that money wisely and that it listens—not only to my good self, but to local residents about their priorities?

[Miatta Fahnbulleh]

My hon. Friend is completely right to remind us about the neglect of our high streets under the last Government, and to reiterate that it is this Government who are putting power and investment into the hands of our communities to drive change. He is also completely right: local authorities must listen to their communities and ensure that investment is focused on their priorities.

[Will Stone (Swindon North) (Lab)]

9. If he will provide additional support to local councils to help them increase levels of funding for social housing stock.

--- Later in debate ---

[Graham Leadbitter (Moray West, Nairn and Strathspey) (SNP)]

13. What assessment he has made of the adequacy of Pride in Place funding eligibility criteria in Scotland.

[The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Miatta Fahnbulleh)]

Areas across Scotland, including Elgin, will receive up to £20 million of Pride in Place programme funding to transform their areas. Phase 1 places have already been identified, and we are working with the Scotland Office and partners to confirm additional neighbourhoods, which will be announced shortly for phase 2.

[Graham Leadbitter]

The Government are encouraging towns across the UK to apply for Pride in Place funding, but with the specific exclusion that any town applying should not be located in a UK parliamentary constituency with a phase 1 neighbourhood. Does the Minister appreciate that in my constituency of Moray West, Nairn and Strathspey, this would exclude Nairn from applying because Elgin is already in receipt of funding, despite Nairn being in a different unitary authority and not even being in the same constituency prior to boundary changes? As a further example, it would also exclude Shetland from applying because Orkney already has funding. Does the Minister agree that this exclusion is nonsensical and discriminatory against large geographies, and needs to be changed?

[Miatta Fahnbulleh]

The big driver of how we are allocating funding is deprivation. We are taking a slightly different approach in Scotland, where we have also looked at other indicators, including health indicators. As I said, we are working closely with the Scotland Office and local partners to ensure we are getting the Pride in Place programme into the areas that need it, and we will be announcing that allocation in due course.

[Lloyd Hatton (South Dorset) (Lab)]

15. What steps his Department is taking to help ensure adequate levels of accountability of estate management companies.

--- Later in debate ---

[Perran Moon (Camborne and Redruth) (Lab)]

Meur ras, Mr Speaker. The whole of Cornwall, one of the most deprived regions in northern Europe, missed out on Pride in Place funding, which I can only assume was due to the “trusting your neighbour” indicator being treated as a marker of affluence rather than deprivation in the community needs index. Can the Minister confirm that Cornwall will not be disadvantaged because of that in the next tranche of Pride in Place funding?

[The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Miatta Fahnbulleh)]

My hon. Friend is always a champion for Cornwall. To confirm, there were two things that drove the allocation: indices of multiple deprivation and our community needs index. For places that did not receive Pride in Place funding, within our strategy there is a whole suite of tools and levers that communities can grip in order to drive the change that they want to see. I hope we will see that in Cornwall.

[Rishi Sunak (Richmond and Northallerton) (Con)]

The Great Ayton allotments group received funding from the community ownership fund last year. As the deadline for disbursing the funds approaches, delays in a related planning application are threatening that funding. I thank Department officials for trying to resolve the issue, and I ask Ministers to support that flexibility, because the project means a great deal to the community of Great Ayton.

[Miatta Fahnbulleh]

I thank the right hon. Member for raising the important work that has been done in his constituency. We will continue to work with that group, because we want to ensure that all communities have the ability to grip assets and drive the change that they want to see.

[Baggy Shanker (Derby South) (Lab/Co-op)]

For years, Derby residents have felt the full force of Tory austerity, with many services at breaking point. Does the Minister agree that Derby deserves better, and what can the Government do to ensure that the fair funding review delivers for communities such as Derby?

--- Later in debate ---

[Lincoln Jopp (Spelthorne) (Con)]

Is Surrey going to get a mayor?

[Miatta Fahnbulleh]

We are working with all areas to ensure that we are devolving power, whether to strategic authorities or mayors, to make sure that they can grip the economic opportunities and unlock the growth that we did not see under the last Government, but that this Government absolutely want to deliver.

[Connor Naismith (Crewe and Nantwich) (Lab)]

Cheshire East council area has pockets of severe deprivation, centred largely around my constituency. Under the previous Government, local government funding allocations never really took account of those deprivations. Will the Minister meet me to discuss how we can rebalance funding towards the deprived areas in my constituency that have been left behind for too long?

Supporting High Streets

Miatta Fahnbulleh Excerpts

Tuesday 4th November 2025 Commons Chamber

[The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Miatta Fahnbulleh)]

I beg to move an amendment, to leave out from “House” to end and insert

“recognises the need to rejuvenate high streets following 14 years of decline under the previous Administration; welcomes the Government’s action to restore Pride in Place backed by £5 billion to support 339 locations to empower communities to drive meaningful change in their local area, including high streets; supports local communities being given new powers to tackle vacancies, and prevent new betting and vape shops in their areas, including the ability to auction off persistently empty premises through High Street Rental Auctions; further welcomes the English Devolution and Community Empowerment Bill that will ban upwards-only rent reviews in commercial leases, helping to create fairer rental conditions; endorses the Government’s support for property owners; also welcomes that from April 2026, eligible retail, hospitality, and leisure properties with rateable values below £500,000 will benefit from permanently lower business rates multipliers; welcomes the Plan for Small Businesses which supports high street small businesses as the backbone of local economies and which commits to cut the administrative burden of regulation for businesses by 25%; and further recognises that the Employment Rights Bill will bring employment rights legislation into the 21st century, extending the protections that many small businesses already offer their workers to all.”

I will start with where I agree with the hon. Member for Arundel and South Downs (Andrew Griffith). Our town and city centres are part of our identity and our sense of belonging. When they do not meet expectations—when shops are shut and footfall is down—that can dent pride in place, hold back the economy and leave our communities divided. Put simply, they are part of the nation’s barometer of whether we—all of us in this House—are doing a good job. That also means that, when our high streets prosper, the country can too. Retail and hospitality form the engine of our economy. Every pound spent on our high streets supports jobs, renewal and living standards.

But, after 14 years of decimating our high streets, I think the Conservatives have some cheek in raising this debate and pretending they have solutions. The shift to online and out-of-town retail left too many high streets with increased vacancy rates, and the Conservatives did absolutely nothing about it. Austerity and cuts to local government robbed our public realm of investment, and they did absolutely nothing about it. The harshest pain of all was felt because of the cost of living pressures resulting from Liz Truss—remember her?—and her catastrophic mini-Budget, which Conservative Members supported every step of the way.

Where the Conservatives oversaw neglect and decline—for which they should hang their heads in shame—this Labour Government believe that the best days of the nation’s high streets are ahead of us. But to reach them, we need the full force of Government to make that a reality. Only by raising household incomes and putting more money in people’s pockets can we boost the demand that our high streets need.

To the Conservative party, who pretend that there is a quick fix, I say this: you crashed the economy; do not forget that. You put jobs and livelihoods at risk; do not forget that. You oversaw 14 years of decline for our high streets and our district centres; this Labour Government are dealing with the mess that you left behind. So, quite frankly, we will take no lectures from the Conservatives.

[Graham Stuart]

Does the Minister regret the fact that unemployment has gone up every single month since Labour came to power, whereas, over the 14 years of the Conservative Government, 800 more people a day—4 million in total—came into work? Surely she must recognise those facts, away from her—albeit rather brilliant and fiery—rhetoric.

[Miatta Fahnbulleh]

Any economist will tell us that there is always a lag. What we are now seeing are the consequences of the last party’s failures. We are fixing the mess; we are fixing the foundations in order to repair, and I will give examples of that.

Growth is our priority for the nation’s high streets, but we also recognise that, historically, the effects of that have not been equally felt. That is why we are giving communities greater control over their areas, so that they can drive the change that they want to see. In September, the Communities Secretary and I set out the Government’s Pride in Place programme and strategy. We will deliver up to £20 million of funding and support across the 244 places that need it the most—places that were neglected by the Conservatives. It will be up to new neighbourhood boards to decide how that is spent over the next decade, but each area will be encouraged to use the funding to build thriving public places.

[Catherine Fookes]

Does the Minister agree that the £1.5 million that my constituency of Monmouthshire will get for our five high streets will make a huge impact and help deliver the change that we so vitally need in our high streets?

[Miatta Fahnbulleh]

My hon. Friend is completely right. Through our Pride in Place impact fund, we are providing a cash injection to 95 places across the country. That will be spent by local authorities specifically to drive and improve high streets. That is a direct, tangible action that this Labour Government are taking against those 14 years of decline.

[Mark Pritchard]

I know that, as a London MP, the Minister spends a lot of time reading the Shropshire Star, so I am sure she will be aware of its recent report that, year on year, there has been a 15.5% increase in businesses in severe distress; across the west midlands, year on year, the figure is 11.9%. Does the Minister not finally get that raising taxes does not grow the economy?

[Miatta Fahnbulleh]

We absolutely understand the pressure that businesses are under, but that pressure did not happen overnight; it is the consequence of 14 years in which we have not seen productivity growth and 14 years in which the economy has not grown. We understand the economic reality and we are taking action to respond to it, but, candidly, it is pretty disingenuous for the Conservatives to pretend that the foundations that they left for the economy were not absolutely corrosive and decimated. That is the inheritance that we are building on.

[Chris Vince (Harlow) (Lab/Co-op)]

I thank the Minister for giving way; she has been very generous with her intervention time. In Harlow, we have a lot of sole traders—workmen and workwomen who are self-employed. One issue that they face is the long waits to actually get seen by the NHS, which has a huge impact on their businesses. Is it not right that we need to invest in the NHS, and that we should welcome the record investment that this Government have put into it?

[Miatta Fahnbulleh]

My hon. Friend is absolutely right. We know that there is a fundamental link between public services that work and can support people across the economy and how well the economy does. This Labour Government have made the decision that it is right for us to invest in our public services, and right for us to invest in our NHS, because it is good for people, but also good for the economy. We do not resile from that decision.

[Tim Farron (Westmorland and Lonsdale) (LD)]

I strongly empathise with the Minister’s articulate fury at the previous Government and the damage they did to our village and town centres. But will she acknowledge the fact that Cumbria Tourism, which represents the employers of 60,000 people in Cumbria, reports that the national insurance rise has seen 37% of those businesses cutting staff, 34% freezing pay and 33% halting recruitment? Is that not likely to reduce the tax take—as well as damaging businesses generally—and reduce our ability to support the public services that she says she is so passionate about?

[Miatta Fahnbulleh]

We understand that businesses across all sectors are under pressure. We are working with the tourism sector, because it is absolutely vital to the growth of the wider economy, and with all sectors. This requires a whole set of interventions, whether that is what we are talking about today, in terms of our high streets, the action we are taking to support training and skills for the workforce, or the investment we are putting into the economy.

We recognise the pressure, but I come back to the fact that that pressure did not come overnight. If you decimate and under-invest in the economy for 14 years, you end up where we are now. The choice for this Labour Government is that we can now do the job of renewal. It takes time, and we recognise that, but that is a journey that we are determined to go alongside business on.

[Gareth Snell (Stoke-on-Trent Central) (Lab/Co-op)]

In a polycentric city such as Stoke-on-Trent, we have six town centres, as well as many other areas of trade. One big thing that affected us under the last Conservative Government—we also had a Conservative council in Stoke-on-Trent—was the closure of five of the six town-centre police stations, which made those town centres feel unsafe, and the complete hollowing out of our bus network, which meant that many people could not get to the town centres to spend their hard-earned money in the shops. Could the Minister set out what this Government are doing to reverse those terrible trends under the last Government?

[Miatta Fahnbulleh]

I thank my hon. Friend for setting out all the failures and mistakes that we are now having to fix. We are very conscious of that. That is why, through our Pride in Place strategy, for example, we introduced an action plan that was fundamentally about how we build strong communities, create thriving places and allow our communities to take control. As part of that, we are taking new steps to support high streets and town centres. That includes rolling out high street rental auctions, banning unfair upward-only rent review clauses in England and Wales, supporting property owners to establish business improvement districts, reforming the compulsory purchase process and land compensation rules to allow local authorities to shape their high streets, and opening a new co-operative development unit within the Ministry of Housing, Communities and Local Government to help our communities take greater control and ownership of their high streets. The problems in our high streets so often stem from the “we know best” attitude that we saw from the last Government over 14 years, so the answer must be to hand power to communities.

[Ms Polly Billington (East Thanet) (Lab)]

I emphasise the importance of the pride in place programme for places such as Ramsgate, where the vacancy rate in the high street has been an appalling 24%. We were left with the legacy of 14 years of Tory Government, and only because of the social and community energy in Ramsgate have we been able to turn that around, with the support of the pride in place programme.

[Miatta Fahnbulleh]

My hon. Friend is completely right. We feel that we are giving places the tools and levers that they need to turn around the legacy of the last Government.

[Sir Iain Duncan Smith]

The hon. Lady is making great pace through her speech, but I want to bring her back to one point. She has made the case for all the peripheral things that the Government have done to try to help high streets, and for various other things. Does she not understand—I would like her opinion on this—that raising national insurance on small businesses, and reducing the time in which they have to pay, has damaged their ability to take people on and is really costing them, to the point that many have closed? Does she not agree that that single decision has done more damage to our high streets than anything that she talks about repairing?

[Miatta Fahnbulleh]

What has damaged the high street is 14 years of neglect. The Conservatives pretend that it was thriving for 14 years and that we did not see shops closing down, boarded-up shops and the decimation of our public realm. We will take no advice from them, because they had 14 years to respond, but they categorically failed.

[Melanie Ward (Cowdenbeath and Kirkcaldy) (Lab)]

Does the Minister agree that it will be infuriating to many of my constituents to hear the right hon. Member for Chingford and Woodford Green (Sir Iain Duncan Smith) describe what the Labour Government are doing as “peripheral”? That presumably includes the growth mission fund, which is making a multimillion-pound investment in my high street in Kirkcaldy. The high street was left in a state of decline after 14 years of Conservative government.

[Miatta Fahnbulleh]

I thank my hon. Friend for mentioning that what we are doing is not peripheral—I was so incensed by that that I forgot to mention it. It is fundamental that we respond to the challenges in our high streets.

The key point that I want people to take away is that we are acting, whether it is through the pride in place strategy and programme or through the action that we are taking on business rates. The hon. Member for Arundel and South Downs mentioned business rates. From April 2026, eligible retail, hospitality and leisure properties with rateable values below £500,000 will benefit from permanently lower business rate multipliers. That will, critically, level the playing field between online retailers and high streets.

[Wendy Morton]

The hon. Lady talks a lot about footfall on high streets, and I think we all agree that more footfall benefits businesses. With that in mind, what consideration has she given to regenerating our towns and city centres by building on brownfield sites and setting proper housing targets in our city centres, rather than on the peripheries of cities?

[Miatta Fahnbulleh]

The right hon. Lady is absolutely right, and we are densifying. I return, however, to the 14 years for which the Conservatives failed on housing. Do they remember removing housing targets completely? Their carping on at us for making progress on our commitment to deliver 1.5 million homes is for the birds. We are clear that we need thriving high streets, and that requires mixed use and a range of things in our strategy.

[Helena Dollimore]

The Minister is talking about the Conservative party’s record of damaging our high streets. As I mentioned earlier, in Hastings, £150,000 of levelling-up money was given to a Conservative donor, who ran off with it and left a boarded-up shop in our town centre. I did not hear from the shadow Minister, the hon. Member for Arundel and South Downs (Andrew Griffith), whether the Conservative party will refuse to take any donations from Ms Chernukhin after she ran off with that money.

[Miatta Fahnbulleh]

I hope that when the shadow Minister stands up, he will respond to that question and say whether the Conservative party will return the money.

In the end, we need investment in our communities. That is what we are providing, whether it is by reducing business rates or through the work of my Department for Business and Trade colleagues to deliver the backing your business plan, a long-term strategy for supporting small and medium-sized enterprises and the everyday economy. As part of that, family-run businesses on the high street will benefit from new tools to unlock access to finance, action to crack down on late payments—we know that is a massive issue for SMEs—and easier access to the business growth service.

[Bradley Thomas]

Will the Minister give way?

[Miatta Fahnbulleh]

I will make progress.

Hon. Members have mentioned retail crime. We have scrapped effective immunity for low-value shoplifting, and we are taking action to protect retail workers from assault. Alongside the Employment Rights Bill, which we are proud of, that will make retail a more desirable career choice, improve retention and make recruitment clearer. We are very clear that employment rights are good for workers, but also for businesses and for the economy.

[Dr Luke Evans]

The amendment contains a bit of an oxymoron, because it says that the Government’s plan for small businesses

“commits to cut the administrative burden of regulation for businesses by 25%”,

but it then goes on to mention the Employment Rights Bill. Will the 25% cut in regulation take place before or after the Employment Rights Bill becomes law, and where will that cut come from? In all the measures that the Minister has talked about, we have not heard about that one.

[Miatta Fahnbulleh]

It is incredibly telling that the hon. Member thinks that regulation consists of things such as protecting our workers, banning exploitative zero-hours contracts and ensuring that workers have sick pay. This is a fundamental part of the social contract. We are trying to ensure that when the economy does well, the everyday person does well, and that requires them to have basic rights and protections. We are very clear about and proud of that. Quite frankly, it is tragic that the Conservatives, who governed for 14 years in which workers were hugely exploited and the economy crashed, cannot see that.

Finally, before I make progress, I will reflect on energy bills. We understand that businesses are under pressure from energy bills. That is why we are driving forward our clean power mission, because we are clear that the shift to renewables will drive down bills. Alongside that, we are giving SMEs access to the Energy Ombudsman for the first time, strengthening their ability to renegotiate contracts through blend and extend, and helping businesses to reduce their use in order to reduce energy costs.

[Dave Doogan]

Does the Minister understand the immediacy of the pressure on small businesses? She may have the best of intentions, and I am sure that prices will unwind in five or 10 years, eventually resulting in lower energy bills for commercial enterprise across the United Kingdom. That will not happen this week, however, or even this year or next, and many of them will not survive. What is her message to them about this perpetual “jam tomorrow” culture?

--- Later in debate ---

[Miatta Fahnbulleh]

We understand the pressure that businesses are under with energy, but it is driven by our dependence on global fossil fuel markets. We can do sticking-plaster or short-term fixes, or we can deal with the fundamental problem. We are pushing towards clean power, because that is how we ultimately drive down bills. That is not an offer to do so in 10 or 20 years; we are committed to driving down bills in this Parliament, and we will not resile from that.

Labour Members agree that our high streets will always be at the heart of our communities, and we welcome the cross-party agreement on that. Unless we grow the economy and put more money in people’s pockets, however, our high streets will never match local people’s ambition. That is why our high streets are front and centre of our growth mission, and why we are committed to driving their renewal.

I ask everyone in the House to remember the record and the legacy of the Conservatives, who are holding this debate pretending that they really care. For 14 years, our high streets were decimated, shops were boarded up and people in all our communities saw the impact of the Conservatives’ actions.

[Amanda Martin]

There has been a lot of talk about hospitality, with people mentioning it as a great source of first jobs. Under the last Government, however, 7,000 pubs were closed—last orders were called on those pubs. Does the Minister agree that our plans for thriving high streets mean that Labour is the only party looking to ensure that more pints are poured for our hard-working people?

[Miatta Fahnbulleh]

My hon. Friend is completely right—7,000 pubs.

Statistic after statistic speaks to the Conservatives’ failure, so rather than being smug and providing fake solutions, they should be far more humble about the state in which they have left our communities. It is now on this Labour Government to fix the mess they left behind.

[Several hon. Members rose—]

English Devolution and Community Empowerment Bill (Twelfth sitting)

Miatta Fahnbulleh Excerpts

Committee stage
Tuesday 28th October 2025 Public Bill Committees

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

We have some concerns, which are reflected in the amendments I have tabled. As we just heard, countries approach this issue in different ways. Broadly speaking, it sounds like one of the reasons why Ireland did not see an impact on the market was that what was implemented was the end of upward-only rent reviews almost in name only; there were still many other mechanisms that achieved the same outcome, even if that specific one ceased to exist.

Our concern is that we risk creating a number of complex structures for rental agreements that in practice have the same consequence, but without the benefit of upward-only rent reviews, which is that landlords’ certainty about their position in turn encourages investment in our high streets, the availability of the units we want to see, and those units not being turned into residences or repurposed for things other than business. The loss of upward-only rent reviews as part of the toolkit of available options undermines the confidence to invest in our high streets, and in turn undermines the objective, which we all share, of ensuring that they remain vibrant and successful. That is the purpose of the amendments, which I am sure we will come on to in due course. The Minister may have something to say about that, but that is the Opposition’s clear position.

[The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Miatta Fahnbulleh)]

I thank my hon. Friend the Member for Northampton South for his thoughtful contribution. He is well versed, and has both reached out to business in his constituency and advocated his case persuasively.

We are very mindful of unintended consequences. We are also very mindful of designing this system in a way that strikes the balance between the investment that we absolutely want to unlock on our high streets and in our local communities, and the protections that we want to provide for tenants and to ensure that our high streets continue to thrive. I will take away my hon. Friend’s thoughts and challenges, and reflect on them as we go into the details of how we design this system in the best possible way.

I know that we will go into Opposition amendments in greater detail. However, the key point I want to emphasise at the start of this debate is that this is not a new debate and this issue is not a new one. We have known that we need to do something about this issue for well over a decade now. Huge amounts of work have gone into considering how we reform the system and there have been huge amounts of consultation over the years. So, we are very clear that something must be done, because the status quo is not fair and is not working for tenants, particularly the small and medium-sized enterprises on our high streets.

We need to respond and to reform, but we will make sure that we do so in a way that strikes the right balance between the protections that we must provide for tenants and the investment that we obviously want to see in our commercial premises.

Amendment 375 agreed to.

Clause 71, as amended, ordered to stand part of the Bill.

Schedule 31

BUSINESS TENANCIES: PROHIBITED TERMS RELATING TO RENT

Amendments made: 376, in schedule 31, page 322, line 24, leave out from beginning to end of line 24 on page 323 and insert—

“Part 1

Key terms

“Business tenancy”

1 (1) A tenancy is a “business tenancy” at a particular time if, at that time, Part 2 of this Act—

(a) applies to the tenancy, or

(b) has the potential to apply to the tenancy.

(2) For that purpose, Part 2 has the potential to apply to the tenancy at a particular time if, at that time—

(a) Part 2 cannot apply to the tenancy because—

(i) none of the property comprised in the tenancy is or includes premises which are occupied by the tenant, or

(ii) property comprised in the tenancy is or includes premises which are occupied by the tenant, but none of those premises are so occupied for the purposes of a business carried on by the tenant or for those and other purposes,

(b) the terms of the tenancy include terms (the “permitted business use terms”) which would permit the tenant to occupy the premises for the purposes of a business carried on by the tenant (whether the terms permit occupation for the purposes of business generally, a specific business or a specific kind of business) or for those and other purposes, and

(c) if the tenant were to occupy the premises in accordance with the permitted business use terms (and taking into account all other circumstances), Part 2 of this Act would apply to the tenancy.

(3) For the purposes of sub-paragraph (2)(b), terms of the tenancy which—

(a) would prohibit the tenant from occupying the premises for some purposes, but

(b) would not prohibit the tenant from occupying the premises for other purposes,

are to be regarded as terms which would permit the tenant to occupy the premises for the purposes which are not prohibited.

(4) Sub-paragraph (2) must be construed as one with section 23(1).

“Business tenancy with a rent review”

2 (1) A tenancy is a “business tenancy with a rent review” at a particular time if, at that time—

(a) it is a business tenancy, and

(b) it is subject to rent review terms (whether contained in the instrument creating the tenancy or not).

(2) In this Schedule “rent review terms” means terms under which an amount of rent payable under the tenancy will or may change during the terms of the tenancy (“rent under review”).

Part 2

Triggering and operation of rent reviews

Application of this Part

3 (1) This Part of this Schedule applies to a tenancy at a particular time if, at that time, it is a business tenancy with a rent review.

(2) But this Part applies to such a tenancy only if—

(a) the tenancy is—

(i) granted, or

(ii) varied so that it includes rent review terms,

after this Schedule comes into force, and

(b) the grant or variation is not made under a contract entered into before this Schedule comes into force.

Tenant to have power to trigger a rent review

4 (1) This paragraph applies if—

(a) an action is necessary for a particular rent review to be initiated (a “trigger action”), and

(b) the rent review terms, or any other terms (whether contained in the instrument creating the tenancy or not), do not allow the tenant to take the trigger action.

(2) The tenant may initiate the particular rent review by giving the landlord notice in writing.

(3) Notice under sub-paragraph (2) may not be given after the time when trigger action may be taken.

Tenant to have power to take action to enable rent review to operate effectively

5 (1) This paragraph applies if—

(a) an action is necessary for a particular rent review to operate effectively (an “operational action”), and

(b) the rent review terms, or any other terms (whether contained in the instrument creating the tenancy or not), do not allow the tenant to take the operational action.

(2) The tenant may take the operational action.

(3) If the tenant takes the operational action, the tenant must give the landlord notice in writing of the action within the period of seven days beginning with the day on which the action was taken.

Part 3

Rent review terms that are of no effect

Application of this Part

5A (1) This Part of this Schedule applies to a tenancy at a particular time if, at that time—

(a) it is a business tenancy with a rent review, and

(b) the rent review terms—

(i) do not specify new passing rent, and

(ii) include elements 1 and 2.

(2) But this Part applies to such a tenancy only if—

(a) the tenancy is—

(i) granted, or

(ii) varied so that it includes rent review terms that do not specify new passing rent and include elements 1 and 2,

after this Schedule comes into force, and

(b) the grant or variation is not made under a contract entered into before this Schedule comes into force.

Rent review terms that “do not specify new passing rent”

5B Rent review terms “do not specify new passing rent” if they are such that an amount of rent under review that will be payable at a time during the term of the tenancy (the “new passing rent”)—

(a) is not known, and

(b) cannot be determined,

at the time when the tenancy is granted or varied so that it includes the terms.

Elements 1 and 2

5C (1) This paragraph sets out elements 1 and 2.”

This would provide for various definitions; for application of provisions to tenancies that are varied; and for the provision about the triggering and operation of rent reviews to apply to any business tenancy with a rent review (regardless of the particular terms of the rent review).

Amendment 377, in schedule 31, page 323, line 38, leave out “relevant”.

This is consequential on Amendment 376.

Amendment 378, in schedule 31, page 324, line 3, leave out “relevant”.

Amendment 379, in schedule 31, page 324, line 13, leave out “relevant”.

This is consequential on Amendment 376.

Amendment 380, in schedule 31, page 324, line 19, leave out “relevant”.

This is consequential on Amendment 376.

Amendment 381, in schedule 31, page 324, line 35, leave out from beginning to end of line 19 on page 325.

This is consequential on Amendment 376, by which the new paragraphs 4 and 5 would replace the existing paragraphs 8 and 9.

Amendment 382, in schedule 31, page 325, line 19, at end insert—

“Part 4

Sub-tenancy required to include rent review terms that would be of no effect

Application of this Part

7A (1) This Part of this Schedule applies to a tenancy (the “superior tenancy”) at a particular time if, at that time—

(a) the superior tenancy is a business tenancy,

(b) the superior tenancy requires or permits the grant of a sub-tenancy (the “authorised sub-tenancy”),

(c) the authorised sub-tenancy would, at the time of its grant, be a business tenancy with a rent review, and

(d) either—

(i) the superior tenancy requires the authorised sub-tenancy to include rent review terms, and that requirement can only be complied with by the inclusion of rent review terms which (on one or more particular rent reviews) would produce, or would be capable of producing, the result that is prohibited by paragraph 6(3), or

(ii) the superior tenancy permits the authorised sub-tenancy to include rent review terms, but rent review terms can only be within that permission if (on one or more particular rent reviews) they would produce, or would be capable of producing, the result that is prohibited by paragraph 6(3).

(2) But this Part applies to the superior tenancy only—

(a) if the superior tenancy was—

(i) granted, or

(ii) varied so that it includes rent review terms that do not specify new passing rent and include elements 1 and 2,

before this Schedule comes into force, or

(b) if the superior tenancy is—

(i) granted, or

(ii) varied so that it includes rent review terms that do not specify new passing rent and include elements 1 and 2,

after this Schedule comes into force and the grant or variation is made under a contract entered into before then.

Modification of terms of superior tenancy

7B (1) The superior tenancy has effect after this Schedule comes into force as if it requires, or as the case may be permits, the authorised sub-tenancy to include rent review terms of any kind which (on each particular rent review) would not produce, and would not be capable of producing, the result that is prohibited by paragraph 6(3).

(2) The actual rent review terms that are to be included in a particular authorised sub-tenancy are to be—

(a) agreed by the persons who are to be the landlord and tenant under that sub-tenancy, or

(b) determined in such other manner as they may agree.

(3) Accordingly, the landlord under the superior tenancy may not require the inclusion of particular rent review terms in the authorised sub-tenancy (unless that is what is agreed by the persons who are to be the landlord and tenant under the sub-tenancy).

(4) This paragraph does not prevent a superior tenancy from being varied or modified by the parties to it (and accordingly sub-paragraphs (1) to (3) are subject to any such variation or modification).

Interpretation

7C (1) The following provision applies for the purposes of this Part of this Schedule.

(2) The superior tenancy permits the grant of a sub-tenancy, or the inclusion of particular rent review terms in a sub-tenancy, if granting the sub-tenancy, or including those terms, would not breach the terms of the superior tenancy.

(3) References to the superior tenancy, and references to the terms of the superior tenancy, include references to—

(a) the terms of any agreement relating to the superior tenancy, and

(b) any document or communication from a party to the superior tenancy which gives or refuses consent for the grant of a category or description of sub-tenancy.

(4) “Superior tenancy” has the meaning given in paragraph 7A(1).

(5) “Sub-tenancy” means a tenancy that is inferior to the superior tenancy (whether or not it is immediately inferior to that tenancy).

(6) The “result that is prohibited by paragraph 6(3)” means the result that the new passing rent is larger than the reference amount.

Part 5

General provision”

This would apply to pre-commencement tenancies that require any sub-tenancy to include terms that would be of no effect by virtue of paragraph 6(3) (as they could result in the new passing rent being larger than the reference amount). It would enable a sub-tenancy to be granted without including such terms.

Amendment 383, in schedule 31, page 325, line 24, leave out “new passing”.

This is consequential on Amendment 382.

Amendment 384, in schedule 31, page 325, line 27, leave out “, in relation to a tenancy” and insert—

““business tenancy” has the meaning given in paragraph 1;

“business tenancy with a rent review” has the meaning given in paragraph 2.

(2) In this Schedule, in relation to a business tenancy with a rent review—

“elements 1 and 2” means element 1 and element 2 set out in paragraph 5C;”.

This is consequential on Amendment 376.

Amendment 385, in schedule 31, page 325, line 33, leave out “4(2)(b)” and insert “5B”.

This is consequential on Amendment 376.

Amendment 386, in schedule 31, page 325, line 37, leave out from beginning to end of line 2 on page 326 and insert—

““rent review terms” has the meaning given in paragraph 2(2);

“rent under review” has the meaning given in paragraph 2(2).

(3) A reference in this Schedule to rent review terms that do not specify new passing rent has the meaning given in paragraph 5B.”—(Miatta Fahnbulleh.)

This is consequential on Amendment 376.

[Miatta Fahnbulleh]

I beg to move amendment 387, in schedule 31, page 326, line 4, leave out “Put options:” and insert—

“Arrangements for renewal of tenancies:”.

This is consequential on Amendment 393.

[The Chair]

With this it will be convenient to discuss the following:

Government amendments 388, 390, 389, and 392 to 404.

[Miatta Fahnbulleh]

This group of amendments expands the scope of schedule 7B so that arrangements such as options and rights of first refusal are also within the scope of the ban. Arrangements of this type may allow the tenant to enter into a new lease on pre-specified terms, which could include upwards-only rent review provisions. Permitting such arrangements could therefore be used to avoid the ban’s effect. As a result, we cannot permit new leases such as those to be excluded from scope, as this would likely encourage gaming of the system and prevent businesses from being protected in the way that the Bill intends.

Government amendment 389 makes a minor change to clarify that the application of schedule 7B to an arrangement can vary over time depending on the circumstances, therefore allowing for arrangements to move in and out of scope. By doing so, this amendment ensures that different types of arrangements, such as options and rights of first refusal, are caught by the ban if they meet the stated criteria at the relevant point. I commend the amendments to the Committee.

[David Simmonds]

I want to make the same point again, but I will not go back and repeat it. We remain very concerned about the loss of freedom of contract that this represents. Clearly, this is consistent with the Government’s direction of travel. The Minister refers to protecting businesses, some businesses will benefit from this and others will lose out, including property investors who are critical to the success of our high streets and commercial sectors. They are facing rapidly rising business rates and increases in national insurance, all of which are hammering our commercial sector and resulting in a very large number of job losses. We see this as part of that picture. We encourage the Minister to think again, reflect and perhaps change direction on this matter.

[Miatta Fahnbulleh]

My summing up will be very short. There is clearly a problem. That problem has been around for decades. Upwards-only rent reviews are an outlier internationally, and it is putting huge pressure on our high street. I absolutely recognise that we have to strike a balance between the investment that we want to see in our local economies and commercial property sector, but we also need to protect tenants. It cannot make sense to have a system whereby rents can only go up, irrespective of what is happening in the market, and cannot go down if the market goes down. That is an illogical system and one that is putting huge pressures on businesses, particularly small and medium-sized ones. There is a reason why all other advanced countries do not apply this system. Those countries all function well and have vibrant property markets. Critically, there are specifics around individual places and the reforms that they have been through, but the lesson across the piece—whether in Ireland or Australia—is that reforms are possible, and in the end we can still have both a vibrant sector and a property market that is far more rational from the perspective of tenants. I commend these amendments to the Committee.

Amendment 387 agreed to.

Amendments made: 388, in schedule 31, page 326, leave out line 5 and insert “Application of this Schedule”.

This is consequential on Amendment 393.

Amendment 390, in schedule 31, page 326, line 6, leave out “to an arrangement”.

This is consequential on Amendment 393.

Amendment 389, in schedule 31, page 326, line 6, leave out “if” and insert—

“at a particular time if, at that time,”.

This would make clear that the application of Schedule 7B to an arrangement can vary over time depending on the circumstances.

Amendment 391, in schedule 31, page 326, line 9, leave out paragraph 2 and insert—

“2 (1) Condition A is met if Part 2 of this Act—

(a) applies to the tenancy, or

(b) has the potential to apply to the tenancy.

(2) In the following paragraphs of this Schedule—

(a) the tenancy to which Part 2 applies, or has the potential to apply, is referred to as the ‘existing tenancy’;

(b) the premises let under the existing tenancy are referred to as the ‘relevant premises’.

(3) For the purposes of this paragraph, Part 2 has the potential to apply to the existing tenancy if—

(a) Part 2 cannot apply to the existing tenancy because—

(i) none of the relevant premises are occupied by the tenant, or

(ii) the relevant premises are or include premises which are occupied by the tenant, but none of those premises are so occupied for the purposes of a business carried on by the tenant or for those and other purposes,

(b) the terms of the tenancy include terms (the ‘permitted use terms’) which would permit the tenant to occupy relevant premises for the purposes of a business carried on by the tenant (whether the terms permit occupation for the purposes of business generally, a specific business or a specific kind of business) or for those and other purposes, and

(c) if the tenant were to occupy relevant premises in accordance with the permitted use terms (and taking into account all other circumstances), Part 2 of this Act would apply to the tenancy.

(4) For the purposes of sub-paragraph (3)(b), terms of the existing tenancy which—

(a) would prohibit the tenant from occupying relevant premises for some purposes, but

(b) would not prohibit the tenant from occupying relevant premises for other purposes,

are to be regarded as terms which would permit the tenant to occupy relevant premises for the purposes which are not prohibited.

(5) Sub-paragraph (3) must be construed as one with section 23(1).”

This would replicate the new paragraph 1 of new Schedule 7A that is contained in Amendment 376.

Amendment 392, in schedule 31, page 326, line 17, leave out “put option” and insert “tenancy renewal arrangement”.

This is consequential on Amendment 393.

Amendment 393, in schedule 31, page 326, line 19, leave out from “to” to end of line 25 and insert—

“a tenancy renewal arrangement.

(2) In this Schedule—

‘new tenancy’ means a new tenancy of the whole or a part of the relevant premises;

‘tenancy renewal arrangement’ means an arrangement under which the tenant under the existing tenancy—

(a) can require the landlord or another person to grant a new tenancy, or

(b) can be required by the landlord or another person to take a new tenancy.”

This expands the scope of new Schedule 7B to cover any arrangement under which the grant of a new tenancy can be required, whether it is the landlord or tenant that can impose the requirement.

Amendment 394, in schedule 31, page 326, line 26, leave out “put option” and insert “tenancy renewal arrangement”.

This is consequential on Amendment 393.

Amendment 395, in schedule 31, page 326, line 27, leave out “put option” and insert “tenancy renewal arrangement”.

This is consequential on Amendment 393.

Amendment 396, in schedule 31, page 326, line 31, leave out “lease” and insert “tenancy”.

This would ensure the defined term “new tenancy” is used.

Amendment 397, in schedule 31, page 327, line 1, leave out “put option” and insert “tenancy renewal arrangement”.

This is consequential on Amendment 393.

Amendment 398, in schedule 31, page 327, line 3, leave out “put option” and insert “tenancy renewal arrangement”.

This is consequential on Amendment 393.

Amendment 399, in schedule 31, page 327, line 6, leave out “put option” and insert “tenancy renewal arrangement”.

This is consequential on Amendment 393.

Amendment 400, in schedule 31, page 327, line 14, leave out “lease” and insert “tenancy”.

This would ensure the defined term “existing tenancy” is used.

Amendment 401, in schedule 31, page 328, line 22, leave out “put option” and insert “tenancy renewal arrangement”.

This is consequential on Amendment 393.

Amendment 402, in schedule 31, page 328, line 35, leave out “(2)” and insert “(2)”.

This is consequential on Amendment 393.

Amendment 403, in schedule 31, page 328, leave out line 36.

This is consequential on Amendment 393.

Amendment 404, in schedule 31, page 329, line 2, at end insert—

“‘tenancy renewal arrangement’ has the meaning given in paragraph 3(2);”.—(Miatta Fahnbulleh.)

This is consequential on Amendment 393.

Schedule 31, as amended, agreed to.

--- Later in debate ---

A real safety net should be put into the Bill. I do not think that we can pass the Bill without adding scrutiny and accountability provisions. The new clause is a very friendly way of ensuring that Ministers look again at scrutiny. I would hate the Bill to leave Committee without an assurance from the Minister that that will be looked at again and that something will be put into the Bill to match the increase in powers with an increase in scrutiny in the future.

[Miatta Fahnbulleh]

I acknowledge the intent behind new clauses 3 and 15. We all agree that transparency, accountability and greater scrutiny are needed, and that there is room for improvement in our system.

On the specifics of new clause 3, all local authorities must publish annual accounts along with an annual governance statement. The local government transparency code 2015 requires local authorities and combined authorities to publish regularly on their websites information about spending and assets, including, as a minimum, all spending over £500, which must be published quarterly, and all land and building assets held.

All mayoral strategic authorities are expected to follow the principles and processes described in the English devolution accountability framework. That sets out how mayors will be held to account by central Government, at local level, and by the public. As part of the local assurance framework, mayoral strategic authorities must describe their arrangements for enabling effective and meaningful engagement with local partners and the public. My argument is that we have the legislative framework, and that this is now a question of practice.

Everyone wants information about public spending and Government accounts to be as accessible as possible. It is as much a problem for central Government as it is for local government and lots of bodies and institutions. I would argue it is a question of practice and of improving the way we do things. Through digital technology and the ability to use different methods, we can make this information far more accessible. I do not think we need further legislation. We need to improve our practice and innovate and modernise so the public can better hold all of us to account. That is an endeavour across all levels of government and all public institutions, so the new clauses duplicate existing arrangements and do not really get to the heart of the issue that we all recognise we need to resolve.

I absolutely agree with the intent behind new clause 15. We have stated on the record that we understand the need to strengthen the accountability and the scrutiny mechanism for strategic authorities. We said this in the English devolution White Paper, my colleague said it in the House, and we are committed to that. I assure the Cttee we will consider how to strengthen the scrutiny of strategic authorities, because I completely agree that as they acquire more powers, it is right we have accountability and scrutiny frameworks that are robust and fit for purpose, to ensure they are held to account for how they use the powers we confer on them.

The challenge I have with the new clause from the hon. Member for Brighton Pavilion is that the independent panel she is recommending would mean we have to wait over a year after Royal Assent to respond to this critical issue, because we would not want to pre-empt the recommendations of the panel. In some respects, the very thing that the hon. Lady is trying to force us to do may well end up slowing our ability to do.

[Siân Berry]

Is the Minister honestly saying that if there was a call from Parliament to review scrutiny within one year of Royal Assent, she would not be telling us that was too soon? The reason one year is written into the new clause is that is a very reasonable deadline.

[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.

--- Later in debate ---

[Miatta Fahnbulleh]

We absolutely recognise the funding pressures that local government is under, and we have been clear and transparent about them. They are a function, obviously, of the legacy that we inherited and that we are working incredibly hard to rectify. The long-established new burdens doctrine sets out that all new burdens on local authorities must be properly assessed by the relevant Department. That includes the overall cost to local government, including any one-off implementation or transition costs.

Suffice to say, but to reassure the hon. Member, my Department is working in the usual way to assess the cost to local government of any mandated changes to local governance models. We will go through the standard process to take a judgment on that. The principle that local authorities should be adequately compensated if there are new requirements or burdens on them runs through what we will do. I hope that, with those reassurances, the hon. Member will withdraw her new clause.

--- Later in debate ---

[David Simmonds]

I will try to deal with the two main issues raised by the new clauses, in reverse order.

We all recognise that last year’s Budget was a disaster for local government. The rise in national insurance alone was a £1.5 billion net cut, but the loss of funding to support neighbourhood plans, although small in the grand scheme of things, was one of the most challenging elements. As we heard from the hon. Member for Mid Dorset and North Poole, it is at that neighbourhood level—in the locality—that the buy-in of our constituents for new homes is often first secured.

The inability to support that work any longer is particularly challenging for very small local authorities. Although they do not employ many people, so they were not as hit by the national insurance rise as the big local authorities that do social care, the town and parish councils that support those neighbourhood plans—and the district councils that support such work in the local areas—have been particularly hit by the loss of funding. Ensuring that funding is there to deliver the vision that we set out when we were in government for neighbourhood planning is really important.

New clause 5 is about the ability to deliver local elections. The Government are in a bit of a mess on this issue: the messaging on devolution is that there is no point in having elections to councils that are about to be abolished, which I think we would all agree with, but the legislation simply defers the elections for one year. That is what the laws that we have passed actually do, so as far as the law stands, all the councils set to be abolished are due to have elections on their current footprint next year unless the Government return with further legislation to cancel elections under different provisions or to defer them again. The risk highlighted by the hon. Member for Mid Dorset and North Poole remains a live one.

Multiple Ministers and two different Secretaries of State have assured us at the Dispatch Box that there will be elections, but without giving any specific commitments. In many places, in the normal cycle of events, there will be district elections. If the new mayoral authorities come into being, there may be mayoral elections. If there are not, under the current legislation, those existing counties will go to the polls next year. It would be helpful if the Minister could provide a clear assurance that the existing provisions that guarantee an additional separate grant to fund elections to take place will continue to apply, as has been established practice for a long time.

Will the Minister also tell us—or at least give us a steer—whether the Government intend to introduce further legislation to defer elections again, so they will not take place as scheduled next May in councils that are set to be abolished, or do the Government have a different intention? That may well affect how we vote on these new clauses; we oppose the deferral, delay or cancellation of elections, but we need to know the Government’s intentions so that we understand what we are voting for or against.

[Miatta Fahnbulleh]

Let me address the question directly, and then I will turn to new clause 5, on the cost of local elections, and new clause 43, on support for neighbourhood planning.

We like elections, and we think it is absolutely right that voters have the opportunity to exercise their democratic mandate. We have therefore proceeded with elections. It is important to clarify that we opted to delay them where there were specific requests from the local authorities involved, because they were going through the process not only of local government reorganisation but of creating mayoral strategic authorities. The concern was that the capacity, resource and transitional arrangements would be jeopardised by early elections. All reasonable Members will understand that it is right that the Government listen to constituent authorities that are going through what we all acknowledge is a difficult reform and transition process, and that we get that balance right.

Our principle will always remain that we want elections to go ahead, because it is critical that voters have the chance to exercise their democratic rights. We are balancing that with being fair minded, rational and reasonable. When constituent authorities, including authorities of both parties, tell us that there is a genuine transitional and delivery risk that we need to take into account, we are sensible and reasonable, and take that into account. That is the balance that we will continue to hold to.

[David Simmonds]

On a point of clarification, when the process of reorganisation was embarked on, local authorities were told quite clearly, in accordance with long-established practice, “If you are due to have elections but we are going to abolish your council as a result of this process, we will not hold elections to that council again, because it is not going to exist.” However, the legislation introduced to Parliament simply delayed the elections for 12 months. All those authorities, including Surrey, which was today announced as the pathfinder, are, as a matter of law, expecting to have elections next May, but on the undertaking of Government they are not expecting to have any further elections to the existing authority again. Are the elections to the county councils that are about to be abolished going to proceed next year, or are the Government going to introduce legislation to delay them again?

[Miatta Fahnbulleh]

I think I have been very clear. The legislation is very clear, and Members of the House were all involved in agreeing it. We are proceeding with elections. The principle that has guided what we have done is that the preference is always to have elections, but if there is a reasonable, justified case that there is a risk to delivering our reforms, or that the risk to the transitional arrangements is a genuine, material consideration for those authorities, it is right, rational and sensible for the Government to listen to them.

The legislation is that legislation that we have. We are proceeding with elections, and certainly the Labour party is gearing up to speak to its voters and ensure they come out—no doubt parties across the piece are doing that. That is the mode in which most of local government is operating, and certainly we on the Government Benches are.

The cost of local elections is met locally. Again, I refer Members to the new burdens doctrine, which requires that any new responsibilities are assessed. That is how we will approach elections, which are locally funded. Broadly, we are not hearing about issues with constituent authorities that are undergoing this process at the moment, but we will continue to review the new burdens doctrine to ensure that critical elections are held with no detriment to the voters in those particular areas.

--- Later in debate ---

[Lewis Cocking (Broxbourne) (Con)]

What does the Minister say to parishes such as my own, Hertford Heath, that do not have any more funding to support the delivery of their neighbourhood plan? They are all run by volunteers, they do not have very many houses to collect a precept from and they do not have very many staff. What does she say about that environment? They are trying to be proactive with a plan and choose where they want development, so that they are not at the mercy of developers who want to build all over the green fields. What does she say to parishes that are working really hard to do the right thing by the Government and by their local community, without any funding to go with that?

[Miatta Fahnbulleh]

Both the last Government and this Government have invested huge amounts in building the infrastructure. In the end, Governments have to make a judgment about where we put our funding and finances. We know that is difficult for particular communities, but we think there is sufficient infrastructure and sufficient people with expertise in neighbourhood planning. We will continue to work with them on how they innovate to provide a service for particular parishes.

The hon. Member for Hamble Valley is forcing me to labour the point that, because of the absolute mess that the Conservatives left us with after years of austerity, we are having to make tough judgments about what we can fund and invest in. It is not where we want to be, but that is the reality we have to confront. We had to make choices in the spending review; we are investing more in affordable housing, and in supporting our communities with homelessness. We think that those choices were right, and ultimately we had to make a judgment about prioritisation. We are committed to working with the sector to ensure that it can innovate and continue supporting neighbourhoods.

[Paul Holmes]

Will the Minister give way on that point, as she referred to me?

[Miatta Fahnbulleh]

I have finished, and I have sat down.

--- Later in debate ---

[Paul Holmes]

No, I do not; we should keep the current system in place. I believe that, even though we are essentially going from three to two tiers, we are not actually going to one tier in this country, because mayors are being created as well. There is a direct link between the mayor and the local people, and there is a direct link between these new councils and local people. Again, I do not think the answer to simplifying the electoral system and making representation easier is to create more councillors from different parties in a ward. That is expensive and lacks democratic legitimacy, and I think the current system is perfectly acceptable. We are always going to be on the losing side on this one. Smaller parties often want to change the system to ensure that their parties have more victories and more legitimacy in democratic chambers. The Conservative party has a long and proud history of opposing proportional representation.

I remind the Liberal Democrats that they have tried and tested a change in the electoral system, and when they went to the country seeking it, they lost. Therefore, people have been asked whether they want to change the voting system in a national election. I think that the hon. Member for Mid Dorset and North Poole would find that if there were referendums—we know that the Government are against referendums in the Bill—many people across this country would choose not to change the voting system in local government too. The current local government electoral system works, and it suits its purpose. People know who their councillors are; they are linked to them and know that they often represent an area that they deeply care for and are passionate about—even Liberal Democrat ones in Eastleigh. We oppose the new clause, and will vote against it if it is pressed to a vote.

[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.

--- Later in debate ---

[Vikki Slade]

I welcome that intervention. During covid, a lovely, very elderly Conservative lady on Bournemouth, Christchurch and Poole council decided to take her laptop into the toilet with her. I think we all have such stories to tell. There are huge merits in online training and training in person.

We talked previously about audit training. There is compulsory training for our quasi-legal systems, including licensing and planning, but what about scrutiny, audit and even, “How on earth does a council work? How do I behave? What is the code of conduct?” Training on all those things is not currently required. It is not unreasonable to ask that when somebody takes on a responsibility—particularly when they receive an allowance so to do—they understand what is required of them. There should be a minimum training standard, across the board, but that is currently absent. Training is very variable from place to place.

My simple request is for the Government to agree to the new clause and produce guidance that allows local authorities to look at the relevant content.

[Miatta Fahnbulleh]

I will be brief because the Committee has discussed this question before. We absolutely recognise the importance of training, which is why the Government currently fund the sector support programme, which is delivered by the Local Government Association and open to strategic authorities and local authorities. That will continue and we will build on it.

It should be for strategic authorities and local authorities, as independent bodies that we are trying to empower, to decide the form of training for elected members. The Government will do our part to work alongside them and to give the LGA what is required, but we do not think that a one-size-fits-all requirement on strategic authorities to provide training is proportionate. The best way to do that is to build the infrastructure to enable and support training in an effective and sustainable way. For that reason, I urge the hon. Member to withdraw the new clause.

[Vikki Slade]

It is not a requirement of all local authorities to be a member of the Local Government Association. I speak as a vice-president and former board member of the Local Government Association. The new clause does not dictate what the training should be; it dictates that there should be a requirement for training. On that basis, I would like to push it to a vote.

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

--- Later in debate ---

[David Simmonds]

It is tempting to make reference to all sorts of detailed points of local government finance that we could bring up in a debate about allotments. However, I purely want to make a point about where this issue sits, which I think other Members have touched upon. The Opposition are big fans of allotments, just as everybody else is, but the local plan is the mechanism by which that should be delivered. We all know—particularly those of us, like myself, who have lots of allotments in our constituencies—that there are often waiting lists for some of the more desirable sites and also huge numbers of vacancies on others.

When allotments on their current scale were introduced in the 1950s, food was one of the biggest costs that households faced. Today, the UK has some of the cheapest food in the world, relative to household budgets. The UK and the US spend the lowest proportion of household expenditure on food in the developed world. Indeed, the proportions have reversed since the 1950s, and housing costs are now the highest factor.

One of the Opposition’s concerns about the purposes of this Bill, and about where the Planning and Infrastructure Bill was going, is that the focus on units and achieving targets will mean losing green spaces, particularly gardens and spaces outside people’s homes. When we pass this legislation, it is through the local plan that we will be able to ensure that we are not using allotments to plug a massive gap that has arisen because of those housing targets, but are instead building the types of homes that people want to live in, particularly those that include outside space. That is why, although we agree with the sentiment behind the new clause, we are not minded to support it.

[Miatta Fahnbulleh]

We understand the intention behind this provision on allotments, and we are big fans of allotments and nature-rich spaces. However, I would point out that a duty to provide allotments already exists and sits with local authorities, which is the appropriate level. In addition, the provision of nature-rich spaces is already being tackled through multiple Government initiatives, whether that is the access to nature programme or the Natural Environment and Rural Communities Act 2006, which places a duty on all public authorities operating in England to consider, from time to time, what action they can take to further the conservation and enhancement of biodiversity.

We recognise the need for green spaces and allotments for communities. We think that there is already sufficient provision in legislation, so the new clause is unnecessary. Actually, putting the duty at the strategic authority level is not appropriate; it should be at the local authority level. For that reason, I ask the hon. Member for Brighton Pavilion to withdraw the motion.

[Siân Berry]

I take those points constructively, as they were intended. I hope that this issue can be looked at during future stages in a cross-party manner, so that we can put something together. I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

New Clause 16

Duty to contribute to delivery of nature, clean air and climate targets

“(1) When exercising their functions, a strategic authority, mayor, or local authority must contribute to—

(a) meeting the targets and carbon budgets set under Part 1 of the Climate Change Act 2008;

(b) meeting the targets and interim targets set under Part 1 of the Environment Act 2021;

(c) meeting the limit values set under Schedule 2 of the Air Quality Standards Regulations 2010; and

(d) the delivery of the programme for adaptation to climate change under section 58 of the Climate Change Act 2008.

(2) A strategic authority, mayor or local authority must not make any decision that is incompatible with the duty described in subsection (1).

(3) Within one year beginning on the day on which this Act is passed, the Secretary of State must publish guidance describing the contribution that each strategic authority should make toward meeting the targets listed in subsection (1).

(4) Guidance under subsection (3) must include clear metrics and measurable terms for strategic authorities, mayors and local authorities to meet.”—(Siân Berry.)

This new clause requires strategic authorities, mayors, and local authorities to act in accordance with the statutory Climate Change Act and Environmental Act targets, carbon budgets, Air Quality Standards Regulations, and climate adaptation programme across their functions. The Secretary of State must publish guidance for defining authorities’ contributions towards these objectives.

Brought up, and read the First time.

[Siân Berry]

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

It is my pleasure to make the case for new clause 16, which would introduce a climate and nature duty into the Bill. I have been working with a tremendous group of campaigners who, like me, cannot see why the duties are not currently in the Bill. Those campaigners include the Climate Emergency Group, the Wildlife and Countryside Link, the Healthy Air Coalition and Friends of the Earth. As I have previously argued, the Bill lacks strong safeguards to ensure that the new authorities embed climate action and nature recovery, and action on deadly air pollution in their work. There is a growth duty, but not yet any equivalent duty for climate mitigation, adaptation or nature recovery.

Subsection (1) of the new clause sets out the different targets that ought to be passed down from national Government to strategic authorities. Subsection (2) would compel local authorities and strategic authorities not to make decisions incompatible with the duties—in other words, not to make things worse. Subsection (3) is a really important part of the new clause and would require the Secretary of State to publish guidance describing the fair contribution that each area must make toward meeting the national targets. That is what we currently lack. There is nothing in the Bill that helps to achieve the national targets through the actions of the strategic authorities that we are creating, and that is an important gap. I am not idly making this point; reaching our national targets requires a contribution from the authorities with these important powers, areas of competence and actions. Leaving out how we will share out the contribution to the national target—leaving it out altogether—just does not wash.

The evidence from the allies I have been working with, and from monitoring of what goes on at council level, shows that every council scoring 20% or below in the climate action scorecards that get produced is in England or Northern Ireland. That is because we have had the duties passed down by the Governments in Wales and Scotland. It is our duty to ensure that this Bill fills the gap.

Precedents exist not only in Scotland and Wales, as I have mentioned, but in London, because this is done effectively under sections 42 to 44 of the Greater London Authority Act 2007. Each of them systematically passes on a duty for the GLA—the Mayor and Assembly combined—to act to address climate change. This has led to more action in London. It has meant that the Mayor has produced results. The legislation mandates the creation of a climate change mitigation and energy strategy. The strategy, the law says, will contain proposals for the contribution to be made in Greater London towards the mitigation of climate change. These are not hard clauses to write. These are not hard things to pass down, and yet these things are missing from the Bill. That is why we have put together new clause 16, which should be adopted. It could be adopted today, and I intend to divide the Committee on this issue.

We have had discussions about these issues before. We talked about clause 2 and the different ways in which air pollution might be included in the legislation governing the new strategic authorities, and the Minister responded in a similar way each time. For example, this was a typical response:

“The principle and the intention are that we are baking our climate and environmental obligations into the way that we are thinking about how we drive the economy.” ––[Official Report, English Devolution and Community Empowerment Public Bill Committee, 21 October 2025; c. 327.]

It is no good giving these assurances—setting up a baker in a back room behind a curtain—for climate, pollution and nature action, when for so much else, the targets, accountability and duties, is clearly stated in the Bill. As I mentioned before, there is an issue of fairness. Talking to each local area about what contribution each of them will make cannot be done behind closed doors. It requires a transparent process, which the new clause provides for.

The measure has massive and wide support not only from the kinds of campaigners that I associate with on a daily basis, but from more than 100 hundred businesses, which have twice signed open letters in support of such a duty. For them, it would provide the certainty needed to unlock support and drive green investment. The Local Government Association has made it clear that councils require further statutory duties, powers and resources to lead on climate action, while 150 councils responded to a climate consultation, with the vast majority in favour of these duties in England. The District Councils’ Network in its general election prospectus, London Councils, the Association of Directors of Environment, Economy, Planning and Transport, and 88% of UK100 members all called for a climate statutory duty.

The Minister also said this in Committee:

“National Government and local government at all levels, along with business and individuals, must continue to make a contribution to tackling climate change and improving the quality of the environment around us.” ––[Official Report, English Devolution and Community Empowerment Public Bill Committee, 21 October 2025; c. 327.]

Those words need to be reflected in the Bill, and the new clause would do that very effectively. We have the opportunity right now to embed climate, clean air and nature duties for all local authorities and strategic authorities, and to make sure that they hit the ground running for our national environment targets. That would mean no delay for them to take action on clean power, warm homes, clean air and making space for nature. We know very well that there is willingness on the part of local authorities to act, so why would the Labour Government not use the Bill to codify that, and help, inspire and support them in further action?

[Miatta Fahnbulleh]

I thank the hon. Member, who has consistently talked about the challenge of tackling climate change and the important role that local government has to play in that. We absolutely recognise the imperative of climate change and nature recovery, and the vital role that all levels of government, including our strategic and local authorities, can and must play in that endeavour.

Local authorities already have a statutory duty to improve air quality in their areas. Thanks to the combined efforts of local authorities—for example, the Mayor of London—we have seen huge improvements. That is testimony to the fact that, when all tiers of government work together, we can tackle these big structural issues. My key point is that the existing tools and duties already support the things that the hon. Member is trying to achieve through her new clause. For example, we have talked before in the Committee about the local nature recovery strategies, the biodiversity duty under the Natural Environment and Rural Communities Act 2006, and the Environment Act 2021. All of that requires public authorities to consider, take account and take action to conserve and enhance nature and biodiversity.

On the point about climate adaptation, I recognise that there is both an urgency and an imperative for us to take action, and Local authorities are at the vanguard of wanting to push this already. The Government are working with a number of local authorities that have come forward with climate risk assessments, and that is something we hope and expect to see at authorities across the country. In October we launched a local authority climate service, which provides tailored data on climate change impacts to enable local authorities to do their assessments and think about adaptation strategies. We also ran the first adaptation reporting power trial for local authorities last year, providing guidance and support on how to assess climate risks to their functions and services.

That is all to say that this Government recognise the importance of this issue, and we are taking action. Acting and working in collaboration with all tiers of government to respond to the climate change and the nature recovery challenges is the way we do that. Further duties at this stage would not add to that; what we need is action and collaboration, and that is what this Government are cracking on with.

--- Later in debate ---

[David Simmonds]

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

The need for this new clause has become greater as the Committee’s consideration of the Bill has continued. The original legislation and amendments from the Government have set out that new mayors will have precepting powers that will apply to non-mayoral functions. That gives rise to a suspicion, particularly in the context of the Government’s frankly dire financial situation, that such powers will be used as a means of levying, through a mayoral precept, additional resources that will be funnelled not into the priorities of local government but—the Government having set out that they see these new authorities as the local delivery agents of central Government—into the priorities of Government.

It is a long-established principle—it has been implemented for a good, long time now—that there should be some degree of constraint, and that consent should be required before a local authority seeks to proceed with a council tax rise above a certain level: 5% is the current figure. It seems to us a reasonable principle that the new mayoral authorities should be subject to the same constraint to ensure that the tax rises, which would of course be inflationary, notwithstanding the impact they would have on household budgets, would be subject to a similar process of democratic consent, rather than being something that a mayor can simply proceed with without needing to go down that route. That is the objective of the new clause, and it will be interesting to hear what the Government have to say about it.

Our key concern is that these new authorities do not become a means of addressing shortfalls in other areas of Government spending or simply backfilling some of those costs. The Minister likes to talk about a financial mess, and it is noteworthy that the Government have borrowed over £80 billion in this financial year alone already. We heard the Chancellor talking about a £22 billion black hole, which she alleged existed after 14 years of Conservative Government. I use the term “alleged” advisedly, because the Office for Budget Responsibility, which did the calculations, swiftly came back and said that it did not stand by the figure used by the Chancellor. That is £22 billion after 14 years versus £80 billion since the start of this financial year alone.

It is clear that the country’s finances are facing an exceptionally challenging time and have deteriorated exceptionally fast. Local government, in particular, has a £1.5 billion black hole that has been created purely by last year’s Budget, as a result of the national insurance rise, notwithstanding any previous challenges that may have existed. There will naturally be a temptation to see an unlimited, uncapped and unrestricted mayoral levy as a means of tapping taxpayers’ pockets further. We need to make sure that that is constrained in a proper democratic manner.

[Miatta Fahnbulleh]

Let me respond directly to the inference by the hon. Member for Ruislip, Northwood and Pinner that, through the Bill and the devolution of power, we are essentially imposing the Government’s own agenda and requirements on strategic authorities, mayors or local authorities. Let me be very clear: that is not the intent. The intent is to enable mayors and local and strategic authorities to define and drive their own priorities. If the hon. Member spends any time with any of our brilliant mayors or our emerging strategic authorities, it will be incredibly clear that they have their own agenda, which is driven by the priorities of their local people. The idea that we can impose on them a set of things and use them essentially as a new revenue-raising mechanism is for the birds.

We do not think that the desire expressed in the new clause to impose restrictions on the ability of the mayor to raise a precept is right or proportionate. We are clear that the precept must be both proportionate and fair. Ultimately—I said this before, and I will say it again—mayors are democratically elected. They are no less immune to the requirements and the political pressure from their voters than I am or the hon. Member is. The process of democracy—of people having to account for both revenue-raising and, critically, for what they are investing in—is absolutely right. I trust our mayors to do that. Ultimately, if they do not raise revenue and, critically, invest it in things that improve the lives of their constituents, they will pay the price at the ballot box. They do not need the hon. Member to impose his requirements on them.

[David Simmonds]

Given the significance of this issue, we will push the new clause to a vote.

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

--- Later in debate ---

[David Simmonds]

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

We have spent a good deal of time debating the importance of housing and the delivery of housing targets. If we reflect on the construction industry news that came out yesterday, it is clear that there has been an absolute collapse in confidence in house building. Here in London, around 4% of the mayor’s housing target is being delivered, despite his having been allocated billions of pounds for that purpose.

[Miatta Fahnbulleh]

Can the hon. Member remind the Committee when housing stocks plummeted? Was it not in 2023, on his watch?

[David Simmonds]

I think the Minister will probably be aware that the net additional new homes target that we set ourselves in the last Parliament was 1 million new homes. While we were, frustratingly, slightly below that target, we none the less delivered, in round terms, 1 million net additional new homes in this country. The collapse, as the Minister well knows, has taken place since the change of Government. That is an unfortunate reality. We know that the Budget in prospect later in the year is a significant issue of a conspicuous lack of confidence and a desperate need to get construction activity going again.

[David Simmonds]

My hon. Friend is absolutely right: it is desperation in action, and we can see that happening, as can the whole world. We would like to see the Government succeed—we would like to see the country succeed in developing the new homes that it needs. However, it has been a continuous theme in our contributions to debates on the Planning and Infrastructure Bill that we must ensure that the 1.5 million homes that already have planning permission in England get built, rather than focusing on tearing up the green belt and on more permissions that also do not get built.

We know that in our capital city there are more than 300,000 new homes that already have planning permission, but on which work has not started. The purpose of the new clause is to ensure, just as we have sought to in the past in respect of private sector developers where there is a failure, that where a local authority or a mayor is in charge of a development, they are required to build it out in good time. That is so that we do not see a repeat of the situation where well-intentioned changes to the planning system simply result in more unbuilt permissions, while people who need homes do not have access to them, because that is not what is being delivered.

The focus of the new clause is to ensure that the system does what it is intended to and actually builds the homes, as opposed to churning out more planning permissions. Given the Government’s desperate need to move somewhere in the direction of achieving their 1.5 million target, I am sure the Minister will welcome the new clause and ensure that the Government support it.

[Miatta Fahnbulleh]

I understand the intent behind the new clause, and the Government are absolutely committed to building the homes that people across the country need. But I cannot let it pass without setting the record straight: housing delivery plummeted because of action taken by the previous Government, including the scrapping of housing targets across the country, the under-investment in social and affordable housing and, dare I mention, Liz Truss—remember her?—who saw mortgage rates skyrocket. Those are the factors that have driven down housing stock, and we, again, are having to fix the mess left by the previous Government. I will take no lectures from them on house building, given their record.

We are determined to deliver the 1.5 million homes that we know the country needs, and we will work with strategic authorities and local authorities to do that. There are already provisions that will enable mayors to accelerate housing development and drive economic growth, and we are providing further tools through the Bill, whether that is the strategic planning powers, the ability to raise the community infrastructure levy, the extension of the ability to form mayoral development corporations to all mayors outside London or, importantly, the land assembly powers given to strategic authorities to unlock development. We are very clear-sighted about what needs to be done, and we are already equipping and empowering mayors to do that.

We already have examples of where this is working, such as the Olympic legacy in Stratford and the huge progress delivered in London through that. There are provisions in the Bill. Our challenge is that we have to fix the mess that we inherited, but we are absolutely determined to do that, and we will do it in partnership with mayors.

[David Simmonds]

Many interpretations can be placed on the facts, but it is very clear if we look at the numbers that Government borrowing costs are now significantly higher even than under Liz Truss. It has been a pretty disastrous period for Government finances. If we are to see the measures to which the Minister has just referred succeed, there must be some imperative around building. We cannot simply see a tranche of mayors granting permissions, assembling sites and failing to deliver in the way that Mayor Khan has in London.

--- Later in debate ---

[David Simmonds]

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

The intent of the new clause is very much in line with the recommendations that Mr Speaker has recently made in respect of Members of Parliament. There has been a degree of concern about the intimidation and victimisation of politicians and the impact that has had on wider public debate. It has been a long-standing principle that a person needs to declare their eligibility to stand in a particular place, and in a local authority there are specific requirements connected to the local area that person is seeking to serve.

However, it has been a widespread view for some time that there needs to be a degree of confidentiality so that members who are concerned that they will be victimised are able not to have that data, that information, placed in the public domain. Once they have satisfied the local authority’s returning officer that they meet the requirements—with evidence, as is currently the case—their home address does not need to be placed in the public domain, creating risk.

We think the precedent that Mr Speaker set out in respect to Members of Parliament is absolutely right. The intent of the new clause is to achieve the same for our locally elected brethren. I am sure that to achieve that objective, the Government will be pleased to support the new clause.

[Miatta Fahnbulleh]

I thank the hon. Member for this new clause. We wholeheartedly agree with its intent. In the English devolution White Paper, the Government committed to removing altogether the requirements for local government members’ home addresses to be published. The new clause would not achieve that aim because it relies on a member requesting non-publication. We believe that the default position should be non-publication, and we intend to legislate with more robust provisions when parliamentary time allows.

In light of the reassurance that we will be legislating on this important issue, which we agree on, I ask the hon. Member to withdraw his new clause.

--- Later in debate ---

This is a poorly worded new clause that lays an additional burden on the Secretary of State—I am a fan on a personal level—as well as on the local authorities that are already going to have to establish something at a very early stage. I do not think it is going to deliver the increased engagement, I do not think it is measurable, and ultimately I do not think the new clause will lead to a better outcome, which is a better level of trust between a constituent and the mayoral combined authorities. That is why I do not support it.

[Miatta Fahnbulleh]

We all agree that we need stronger community engagement, and a big strand of what we are trying to do through the Bill is to ensure that our communities across the country have greater powers and voice. A new commission is not the answer. The answer is in the doing—us doing the job of enabling all levels of Government, including our national Government, to engage the public and our communities better.

There is a role for the LGA, supported with funding, in building local authorities’ capability to do community engagement effectively. We have discussed the neighbourhood governance structure that we are trying to build, and creating an effective locus for communities to exercise their voice and power, and to be interlocutors with local government. We are building the network for neighbourhoods, which will bring together communities and partners to share best practice, as the hon. Member for Brighton Pavilion is suggesting, and strengthen the capability of communities to exercise their voice and power.

Critically, we are already putting this into practice through pride in place. We are putting investment into communities, organising community leaders on to neighbourhood boards to make decisions about the things that matter. While I appreciate the need for greater community engagement, I think that rather than set up a long-winded commission, we should crack on with the doing. That is what the Government are committed to.

[Siân Berry]

A standing commission that offers regular advice to all the groups that are trying to innovate would be a boon to them, not a burden as the hon. Member for Hamble Valley said. I believe that reporting back from “time to time” is completely normal language in Bills that set up an independent agency or organisation and we want to receive reports back; it definitely does not mean anything in particular.

I remind the Minister that there are risks if we do not do something to ensure that we stand by the important rights that people expect to be upheld. It is not just full of opportunity and excitement, as my previous speech implied; there is genuinely a risk that the new bodies—these unfamiliar, geographically drawn strategic authorities—will rejected by the public if the Government do not get this right. Trust is a crucial metric that we cannot measure ourselves—it just happens or not in other people. We need people to genuinely trust the new bodies. We cannot tell someone to trust them—they do or they do not. The Government must ensure that they are doing that right.

I do not want the reforms to fall flat any more than Ministers do. I think this provision is an important thing that could be done to ensure that they succeed better than they otherwise would. However, I am not going to press it to a vote. I beg to ask leave to withdraw the clause.

Clause, by leave, withdrawn.

--- Later in debate ---

[Siân Berry]

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

I have been working on the new clause with the Centre for Local Economic Strategies. The new clause would require strategic authorities to prepare community wealth-building action plans and makes provision for partnerships with anchor organisations such as hospitals, colleges and employers, to support them. That would create the opportunity for organisations to come together to build collective action on things such as procurement, employment and the better use of owned assets in the local area. It would also grant mayors a right to request levies on private equity in local public services to limit extraction. The new clause is tailor-made for Labour Members, whose party outside government has long championed community wealth building.

In brief, community wealth building is the practice of creating an inclusive and democratically owned economy. It puts people before private equity profits, and champions the kind of economic development activity that is overlooked by industrial strategies, focusing instead on the everyday economy, where most people—our carers, our cleaners, our builders—work. Community wealth building is the missing piece of the puzzle to unlock growth for the benefit of everyone, everywhere. Scotland has a Community Wealth Building (Scotland) Bill passing through its Parliament. England must not be left behind.

We have all heard about Preston’s remarkable success in this field. Analysis of Preston’s programme in The Lancet Public Health found fewer mental health problems than expected during the community wealth building programme compared with similar areas, as life satisfaction and economic measures improved. The analysis found that the approach can provide an effective model for economic regeneration, potentially leading to substantial health benefits. Community wealth building is also part of the economic strategy of my city of Brighton and Hove, with a consensus to work on it over successive administrations.

To further the case, I will quote comments on the London borough of Islington’s programme made in November 2024 by its director of inclusive economy. She said:

“As I say very clearly to our team, this is not about levelling the playing field. This is about tilting the table. In an economy like Islington, we have to focus our limited resources on those who are least served by this economy…It’s about sustainability, it’s about justice, and that idea of creating prosperity for everyone. The core focus is on being locally rooted—trying to make sure that the money we spend and the efforts we make are all rooted within Islington and our wider regional economy”,

and that such programmes

“make sure that the big businesses who are in our local economies are able to engage with a local supply chain and local employment practices so that we can create that virtuous circle at a local level.”

The Islington programme director also commented on how equality is helped, saying in the interview,

“Similarly, lots of investment money typically goes to male-owned businesses. We’ve set up a series of programmes aimed at supporting underrepresented entrepreneurs.”

They reduce rents in their affordable workplaces if the operators support local people’s employment and local businesses and work on the supply chain. She also gives the example of dedicated incubation programmes

“to make sure that we ‘tilt the table’ in the favour of people who are least served by this economy.”

She says that, in short,

“It is about trying to make prosperity local”.

Who in this room could disagree with that?

I hope that the new clause is taken in the constructive spirit in which it is intended and receives a positive response from the Minister.

[Miatta Fahnbulleh]

I thank the hon. Lady for tabling this amendment. As a proud Co-operative MP and as part of a Government who are driving through changes to the economy that put people at the heart, I support the intent behind this amendment. I know of the good work CLES does to drive this agenda across local and regional government. As I have said before, for us, the purpose of devolution is to equip and enable our mayors, local authorities and communities to rewire the economy so that it works for local people and fundamentally builds the wealth of communities. That is clear.

However, a duty to create a separate community wealth building plan will not achieve the intent of the new clause. These approaches should be embedded in the local growth plans that mayors are developing. We see that in practice if we look across the country at what our Labour mayors are doing, whether that is in Greater Manchester, the Liverpool city region or the West of England combined authority. Their approach builds in the principles of building community wealth, of co-operatives and mutuals and of community power, with a strong emphasis on the everyday economy.

We can legislate as much as we like, but what is important is the doing and the practice. We are clear that our job is to empower and equip our local leaders to do this. Many of them are already at the vanguard and well ahead of national Government because of the legacy of the previous Government. We will work with our mayors and strategic authorities to embed this in their local plans.

Critically, we are making sure that there are clear levers at the community level to drive this approach, for example, through the community right to buy. We agree with the intent, but a separate plan is not the way to deliver it. It needs to be fundamentally baked into the way that mayors drive local economic growth—a way that will put their communities at the heart and not just improve living standards, but build the wealth of those communities.

[Siân Berry]

I thank the Minister for her response. I am not entirely convinced that these measures are as baked in as she said. All these issues are vulnerable to election cycles. Something more specific along these lines, potentially within the requirements of the local economic plans, would help to ensure that people consistently see this approach taken across the country. The Minister talked about Labour mayors, but is she convinced? I am not sure that other mayors will take this on board, despite the proven benefits. However, I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

New Clause 34

Local government data

“(1) LURA 2023 is amended in as follows.

(2) In Section 84, in subsection (2)(b), after “planning and development” insert “including in relation to economic conditions, transport, tourism and nature”.

(3) In Section 91 (Interpretation)—

(a) after “(g) Part 8 of GLAA 1999,” insert “(ga) Parts 2 and 3 of the Transport Act 2000”;

(b) after “(k) this Part or Part 4 or 6 of this Act” insert “ the Environment Act 2021, Part 3 of the Planning and Infrastructure Act 2025, Part 3 of the English Devolution and Community Empowerment Act 2026”.”—(Siân Berry.)

This new clause extends data standardisation powers contained in the Levelling-Up and Regeneration Act 2023 to encompass Local Growth Plans, Local Nature Recovery Strategies and Local Transport Plans. Currently, proposals in these other plans may not constitute “development”, so would be outside the scope of existing powers.

Brought up, and read the First time.

[Siân Berry]

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

New clause 34 is about something that I do not think Ministers have yet considered, but it would be of real benefit to the efficiency and transparency of these new authorities. The Levelling-up and Regeneration Act 2023 created a number of new powers to standardise planning data, including local plans, planning software and the ways in which we can get information about planning applications and policies. The new clause would make sure that other activities of the strategic authorities were, from the start, set up to provide a similar level of data. We are talking about spatial data, spending data, data for inward investments, and data for the jobs created in association with different parts of economic plans. It would be marvellous to put that level of digitalisation of public data into the Bill, for the same Department mandated the planning data reforms that are being taken up extremely well.

We must do something about this either now or at the next stage of the Bill. We have seen provisions in the Bill—I have tabled other amendments on this—say things like, “Mayors must publish in such a manner as the mayor thinks appropriate.” That kind of wording is a recipe for PDFs inaccessible to organisations such as Natural England seeking to scrutinise or interact with these different strategic authorities around the country. Ministers themselves may want to know some data about what is going on in these local authorities, as well as the public at large—civil society. If we do not make things standardised, we will end up having to go through multiple inaccessible PDFs. Sometimes, those are Excel documents that have been turned into PDFs, and yet the Excel documents are not released. It would be tremendous for standardised, accessible data in API formats—searchable, integratable and comparable—to be produced as a matter of course through the Bill.

The measure would also help to support the goals of the Aarhus convention, which is all about transparency and being able to find out information. It would also be a gift to people who want to create things like accessible apps, websites and maps for pamphlets about the services in a local area. Those are the kinds of benefits that the Government talked about at the time of introducing the requirements on planning. They need to look again at whether they want things published in multiple different ways that become hard to integrate later, or whether they want things to be organised a little better from the start. The new clause is tabled in a constructive way. I hope that Ministers will ask their teams to explore the idea and talk to the people working on planning. It would be of huge benefit not to have to unpick a mess of data for these new authorities later on.

[Miatta Fahnbulleh]

The hon. Lady has set out the Government’s ambition to move away from a document-led planning system to a data-driven one, where planning data is openly available and more easily accessible. I recognise the intention to expand the data standards provision to ensure that it covers other types of plans produced by strategic authorities, such as the local growth plan or the local transport plan.

The Levelling-up and Regeneration Act 2023 grants the Secretary of State the power to specify in regulations which planning information must meet set data standards. Given that data standards can evolve, the Secretary of State also has the power to define those standards. The definition of planning and development is already broad enough to capture the types of data that would be used for the plans sought to be covered by the hon. Member for Brighton Pavilion.

The Government are confident that existing powers in the 2023 Act are broad enough to make the new clause unnecessary. I come back to the consistent theme of many of my responses to the hon. Lady: it is now in the doing and the acting. We have the powers in statute to respond; it is about how we put those into practice. I ask the hon. Lady to withdraw the new clause.

[Siân Berry]

I implore the Minister to go away and look at this again. The courts have confirmed that transport schemes, such as the cycleway running along the Embankment, do not count as development. Therefore, the wider applicability that I think the Minister was asserting may not be in place without some kind of amendment to make sure that things such as the local economic plans, local growth plans, nature recovery strategies and local transport plans are fully covered by the Levelling-up and Regeneration Act. It may need some changes that I think the Minister is unaware of at the moment. I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

--- Later in debate ---

[Perran Moon]

I think that there is scope within the Bill to find a path forward that would be acceptable to the people of Cornwall and would adhere to the Government’s devolution plan, particularly around a single strategic authority. I implore the Minister to keep working with Cornish MPs to find a solution that allows the Cornish people access to the highest level of devolution, but without a requirement to join a mayoral combined authority. On that basis, I will not support the new clause.

[Miatta Fahnbulleh]

The new clause conflates two issues, and I will try to unpack them. On the one hand, there is the question of recognition of national minority status, which is particularly pertinent in the case of Cornwall. My hon. Friend the Member for Camborne and Redruth has been a steadfast, impassioned and persistent champion and advocate for it.

My departmental colleagues and I have put it on the record that we absolutely recognise the unique status of Cornwall. We are looking for ways both to enhance the protections that are already there and, critically, to support the Cornish local authority in responding to the challenges that it faces and unlock the potential of the area. That is all on the record. We will continue to work, not just with members of the Committee but with MPs across Cornwall and the local authority, to take that forward. However, that is distinct from the ambition to create a regional tier of government. I remind colleagues that that was roundly rejected in a referendum. I know it was a couple of decades ago, but the question was tested.

There is a fundamental question here: if we are trying to drive the economic prosperity of places, where is it best to locate that? One model proposes that the best place is large regional blocs, while another model says that functional geographies around city and county regions are better placed to drive that. The large regional blocs model was tested with the regional development agencies, and we found that the connection to the local economy was weaker. Critically, the democratic link to people in those places was weaker. That is why the model did not endure, and why, unfortunately, the Conservatives undid all the good work that we did when we were last in power. Our strong view is that strategic, functional geography—city and county regions—is the best place to make decisions around transport, housing and planning, skills and travel-to-work areas. That is why we are conferring powers at that level.

If we seek to create another regional tier that is not about the collaboration that we are seeing, for example, with Northern Powerhouse Rail or our authorities in the midlands to deal with issues, predominantly to do with rail, that cut across functional areas, I worry that we will denude the very institutions that we are trying to strengthen, confuse the system, create more complexity and bureaucracy, and undermine the one thing we all want to achieve: stronger, functional economic geographies that can drive prosperity in places.

There are two issues here. I understand what the hon. Lady’s new clause is trying to do, but it is fundamentally wrong. We have tested that model, and we believe that functional geographies at the strategic authority level are where we can make progress. I point her to the evidence of the past decade, in which we have had mayors in Greater Manchester and the Liverpool city region driving growth and prosperity. That is the right geography. We need to build the power there. We should not confuse the matter. I ask the her to withdraw the new clause.

[Vikki Slade]

No, I am not going to withdraw the new clause. If the Minister reads it, she will see that I am not conflating the issues at all. I simply gave Cornwall as an example of where it might work. The new clause does not mention the word “Cornwall”. It allows for

“a regional governance body in any part of England, where in the opinion of the Secretary of State there is demonstrable local support for such a body”,

so it does not undermine the role of the strategic authority.

Let me give the Minister another example. Whether Cornwall is or is not included is up to the people of Cornwall, but Wessex, we presume, will come forward in the next wave of devolution deals. Wessex may be a functional geography in terms of our connectivity, but the south-west of England is the place that most of us identify with far more.

[Miatta Fahnbulleh]

The hon. Lady talks about regional assemblies in the context of Cornwall. Can she explain the purpose of the local authority and the elected council in the model that she is proposing?

[Vikki Slade]

I refer the Minister to the fact that I gave Cornwall as an example of a place where people may want to set up a regional governance body. The new clause was tabled by my hon. Friend the Member for Harrogate and Knaresborough (Tom Gordon), initially in reference to Yorkshire, which has a number of mayoral authorities that want to work together. The people of Yorkshire feel that they have an identity as Yorkshire, and they want a regional assembly.

If the Minister would like me to withdraw my comment about the fact that that may work for Cornwall, she should feel free to ask, but I know for a fact that my hon. Friend the Member for North Cornwall (Ben Maguire) believes that the new clause would benefit him in Cornwall, so I will not withdraw it. It is important to give people the opportunity to have something that they feel works for them.

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

--- Later in debate ---

[Paul Holmes]

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

I am sorry to tempt the Committee with the prospect of a nice pint in the Strangers Bar, but I will not speak to this new clause for very long. It was tabled by my hon. Friend the Member for Isle of Wight East (Joe Robertson). We have spent the afternoon talking about unique circumstances elsewhere in the country, but there are unique circumstances on the Isle of Wight, because of the nature of its geography.

Before I say any more on that, Dame Siobhain, may I, as one of the shadow Ministers, thank you and the other Chairs for your chairing, because this is probably the last time that I will speak in this Bill Committee? I also thank the Minister and the Government Whip, who has been so courteous during our negotiations through the usual channels; hopefully, she will do us some more favours going forward.

Even though we are not in government, I also thank the officials, because I have seen the churn of officials coming in and going out of the Committee Room in the last couple of weeks. Without them, politics would not be able to function, so I thank them for their work on the Bill. We mostly disagree with the Bill, but they are doing a great job for all of us.

The Isle of Wight is geographically unique, because it is only really accessible by boat, including ferries. Over the last 20 years or so, the two main ferry companies for the Isle of Wight, Red Funnel and Wightlink, have been passed between and traded by private equity groups. Just last week, Red Funnel changed hands in what was believed to be a distressed sale, with banks being owed tens of millions of pounds.

The people of the Isle of Wight absolutely rely on access to the mainland, and the island relies on mainland access to it, in order to supply it and to ensure that the people of that great place are well and are looked after. Under the pricing model of the last 20 years, however, peak car return fares have skyrocketed to as much as £400 a car, just for crossing a five-mile stretch of water. Timetables have diminished, so what was once a 30-minute service is now hourly or worse, and under-investment by Red Funnel’s owners means that its car ferry fleet is so old that it entered service before the maritime Minister, the Under-Secretary of State for Transport, the hon. Member for Selby (Keir Mather), was born. Breakdowns are increasingly frequent, with some parts now so obsolete that boats are having to be withdrawn from service.

The Isle of Wight ferry service is a lifeline. There is no other way for the island’s 140,000 residents to cross the five-mile stretch of water to get on and off the island, including for key activities such as work, health appointments, education, visiting sick relatives, or being visited by relatives on whom they rely.

In the last debate on new clause 44, the Minister said that she believed that transport management structures should be run on a county basis. We agree with her; the efficiencies of scale mean that the mayor of Hampshire and the Solent should be able to run transport locally. The Government have a record of policies whereby we are seeing greater Government and regional involvement in the commissioning and running of our transport services, particularly through the bus Bill. My hon. Friend the Member for Isle of Wight East and I would argue that ferries should not be treated differently, especially when they are the sole mode of transport that people must rely on.

When my hon. Friend met the previous maritime Minister, the hon. Member for Wythenshawe and Sale East (Mike Kane), however, the Government showed a distinct lack of action in this regard. My hon. Friend was promised that there would be a number of meetings—there have been meetings with the previous Minister—and that a body would be convened to discuss the matter, but that simply has not happened.

My hon. Friend therefore tabled new clause 49, which would give mayors the authority to regulate ferry services. It would apply not only to the Isle of Wight but to any regional structure that has ferries acting within its geographical boundaries. The functions exercisable by the mayor would include

“making regulations concerning the provision, operation, safety, accessibility, affordability, and reliability of ferry services”.

Labour Members should look at me with encouragement—perhaps I have had a conversion to the centre-left of British politics—because the new clause would also provide for the regulation of fares and a fare cap. I think that is acceptable in a situation where a single provider is flagrantly breaching the good faith of the people of the Isle of Wight.

I know that the Minister will resist this new clause—that does not surprise me; she has a job to do, as do I—but there is clearly a problem. I live just up the road from the Isle of Wight and the prices are crazy. The people living on the island rely on those ferries—they are used to supply medical services, to supply businesses and shops, and for family situations on the Isle of Wight—so the Government must step up.

The new clause makes a reasonable suggestion to the Government to give a mayor the power to control transport services within their region. I am delighted that the Conservative candidate for mayor of Hampshire and the Solent, Donna Jones, has said that she is actively pushing the Government for those regulatory powers. We support her in that so that she can come down very hard on the ferry services that are taking advantage of people who live on the Isle of Wight.

If the Government genuinely believe in devolution and in the control of transport—we have seen over the last 14 months that they believe in mayors being able to commission and manage transport services—that should include all transport services. I commend the new clause to the Committee, and hope that the Minister will give some encouraging words to my hon. Friend the Member for Isle of Wight East and to me. I have not spoken to my hon. Friend about this, and I am sure he will want to move the new clause on Report, but I wish to press it to a Division in Committee.

[Miatta Fahnbulleh]

Let me start by saying that we absolutely recognise the issue that the hon. Member for Hamble Valley and hon. Members representing the Isle of Wight have raised. That is why the Department for Transport has engaged with MPs and stakeholders on the Isle of Wight to identify their local solutions to the concerns that we understand and appreciate need to be addressed.

That engagement has included a ministerial roundtable on this issue and a commitment to create a cross-Solent group. An independent chair has been appointed to take that group forward. We will continue to engage with partners locally to address the genuine issues that have been raised about the ferry service in the area. The power of a democratically elected mayor is that they can make this a core issue and use the levers that they have and the seat that they will have at the table with Government to keep making the case and delivering for their community.

[Paul Holmes]

I thank the Minister for those encouraging words. She is absolutely correct, and I hope she does not see this intervention as unfair, but can she use her good offices to speed that group along? When the then maritime Minister visited the Isle of Wight in April, he said that a DFT working group would be created, but that has not happened—there has been no meeting. My hon. Friend the Member for Isle of Wight East and the hon. Member for Isle of Wight West (Mr Quigley) have been involved in that working group on a cross-party basis but it has not met yet. Could the Minister use her good offices to push for that meeting?

[Miatta Fahnbulleh]

I will write to my counterparts in the DFT. The commitment to create the group came in recognition of a problem. We are committed to working with local stakeholders and Members representing the area to respond to that, so I am happy to write to my DFT colleagues to chivvy that along.

[Paul Holmes]

The Minister has gone further than I was expecting her to. I think it is now up to my hon. Friend the Member for Isle of Wight East to table the new clause again on Report, alongside, if necessary, the hon. Member for Isle of Wight West. Pending conversations with my hon. Friend, I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

New Clause 51

Community ownership fund

“(1) The Secretary of State must make regulations which establish a community ownership fund within six months of the passage of this Act.

(2) Regulations under subsection (1) are subject to the negative procedure.

(3) Regulations under subsection (1) must make provision for any strategic authority to apply for funding of up to £2 million to support any—

(a) voluntary and community organisation, or

(b) parish or town council,

to purchase of an assets of community value they determine is at risk in their area.”—(Vikki Slade.)

This new clause would require the Secretary of State to establish a Community Ownership Fund to which strategic authorities may apply for funding.

Brought up, and read the First time.

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

--- Later in debate ---

I hope that the Minister can either support all three new clauses, or reassure us on how we can ensure that strategic authorities and all the other partners work together to ensure that our skills strategy succeeds.

[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.

[The Chair]

With this it will be convenient to discuss the following:

Clause stand part.

Government amendment 244.

Clauses 73 to 77 stand part.

Government amendment 245.

Clauses 78 and 79 stand part.

[Miatta Fahnbulleh]

As this is, I hope, the last time that I will be standing, I thank you, Dame Siobhain, and our other Chairs for your fantastic chairing of this Committee. The pace, tone and quality of the debate are testimony to how effectively it is been chaired. I put on record my thanks to the Clerks, who have done a fantastic job facilitating the proceedings of this Committee and ensuring that we all know what we are doing.

I offer huge thanks to my hon. Friends, who have been fantastic colleagues in driving through this line-by-line process. It is the first time that I have ever taken a Bill through Committee, and I thank them for all their support. I also thank Opposition Members. The way we have conducted the Committee is a testament to the very best of Parliament. It has been done with much gusto, with spirit and with great insights, but in a very collegiate manner, and I thank all hon. Members for that.

Finally, I put on record my thanks to my fantastic officials. This is a mammoth Bill, with a huge amount of work done before my time and up to this point. We would not be here with this genuinely transformative piece of legislation, which begins to rewire the state to put power in the hands of our communities, without the fantastic work of my officials in the Department who drove it forward.

With huge thanks, great relief and slight exhaustion, I turn to part 6 of the Bill. The clauses in part 6 are standard Bill clauses, which ensure that the provisions in other parts of the Bill work as intended when it comes into force. The amendments are consequential clarifying amendments. They mean that the Bill as a whole is coherent and operates the way that we intend it to in policy. I draw the Committee’s attention to clause 79, in particular, which provides that the short title of this Bill, once enacted, will be the “English Devolution and Community Empowerment Act”. I think we will all be proud of our role in bringing it into force.

Amendment 243 agreed to.

Clause 72, as amended, ordered to stand part of the Bill.

Clause 73

Saving of orders and regulations relating to combined authorities and CCAs

Amendment made: 244, in clause 73, page 74, line 27, leave out from “which” to end of line 29 and insert

“is to continue to apply instead of the primary legislation by virtue of subsection (2), or

(b) makes modifications or other contrary provision to which the primary legislation is to continue to be subject by virtue of subsection (2).”—(Miatta Fahnbulleh.)

This would clarify the relationship between subsection (4) and subsection (2); and clarify that paragraphs (a) and (b) are alternatives.

Clause 73, as amended, ordered to stand part of the Bill.

Clauses 74 to 77 ordered to stand part of the Bill.

Clause 78

Commencement

Amendment made: 245, in clause 78, page 76, leave out lines 11 and 12 and insert—

“(c) any other provision of this Act comes into force (including provision modifying other legislation) so far as it confers power to make secondary legislation or is otherwise necessary for enabling the exercise of such a power on or after the day on which this Act is passed.”—(Miatta Fahnbulleh.)

This ensures that the powers to make secondary legislation inserted by the Bill, and any provisions necessary for enabling the exercise of such powers, come into force on the day on which the Act is passed.

Amendment proposed: 303, in clause 78, page 78, line 7, at end insert—

“(5A) Section 71 will not come into force until the Secretary of State has—

(a) completed a consultation about the impact of section 71 on businesses, and

(b) laid a report summarising the consultation before both Houses of Parliament.”—(David Simmonds.)

This amendment would prevent section 71 from coming into force until a consultation on its impact on businesses has been completed and a report summarising the consultation has been laid before both Houses of Parliament.

Question put, That the amendment be made.

English Devolution and Community Empowerment Bill (Eleventh sitting)

Miatta Fahnbulleh Excerpts

Committee stage
Tuesday 28th October 2025 Public Bill Committees

[The Chair]

With this it will be convenient to discuss the following:

New clause 12—Local authority oversight over management of land of community value—

“(1) A local authority is responsible for overseeing the management of land of community value in their area.

(2) If the relevant local authority identifies deliberate neglect or mismanagement of land of community value by its owner, the authority may—

(a) exercise compulsory purchase powers, or

(b) refuse planning changes in relation to the land.”

This New Clause would require local authorities to oversee the management of land of community value in their area and enable them to exercise compulsory purchase powers in instances of mismanagement.

New clause 20—Right to apply to purchase derelict, mismanaged or inaccessible sporting assets of community value—

“(1) A community interest group or a parish council may apply to a local authority to purchase land to which this section applies.

(2) This section applies to land that is a sporting asset of community value (as defined by section 86C of the Localism Act 2011, as inserted by Schedule 27 to this Act) and meets one or more of the conditions specified in subsection (3).

(3) The conditions are that the land—

(a) has been left derelict for a continuous period of at least 2 years;

(b) is being, or has been, mismanaged in a way that significantly impairs its sporting value or public benefit; or

(c) has been unreasonably made inaccessible to the community, where it was formerly accessible for sporting purposes.

(4) For the purposes of this section land is—

(a) derelict if it is not actively used for its primary sporting purpose, or is in a state of disrepair that renders it unfit for such use, having regard to its previous use and condition;

(b) mismanaged if its condition or use is such that it fails to realise its potential as a sporting asset, due to neglect, poor maintenance, or inappropriate development, contrary to the interests of the local community;

(c) unreasonably made inaccessible if measures have been taken to restrict public access or use for sporting purposes without a compelling public or safety justification, where such access or use was previously permitted or established.

(5) An application under subsection (1) must—

(a) be in writing,

(b) identify the land to be purchased,

(c) include evidence demonstrating that the land meets one or more of the conditions specified in subsection (3),

(d) outline the community interest group’s or parish council’s plans for the future use of the land for sporting purposes, and

(e) be accompanied by such fee (if any) as the local authority may reasonably require.

(6) On receiving an application under subsection (1), the local authority must—

(a) notify the owner of the land of the application within 14 days, and

(b) consider the application.

(7) The local authority may not reject an application under subsection (1) if it is reasonably satisfied that—

(a) the land is a sporting asset of community value and meets one or more of the conditions specified in subsection (3),

(b) the applicant is a community interest group (as defined by section 86D(2)(b)(ii) of the Localism Act 2011, as inserted by Schedule 27 to this Act) or a parish council, and

(c) the applicant’s plans for the future use of the land are viable and will in the opinion of the local authority further the social or economic well-being or social or economic interests of the local community.

(8) If the local authority decides to approve an application, it must—

(a) notify the applicant and the owner of the land of its decision, and

(b) facilitate negotiations for the sale of the land to the applicant at a price to be agreed or, failing agreement, at market value determined by an independent valuation.

(9) The Secretary of State may by regulations make further provision for, or in connection with, applications under this section, including (in particular) provision about—

(a) the form and content of applications,

(b) the evidence required to demonstrate the conditions specified in subsection (3),

(c) the procedure for considering applications,

(d) appeals against decisions of local authorities, and

(e) the process for determining the purchase price and facilitating the sale.

(10) In this section, ‘local authority’ has the meaning given by section 86Z4(1) of the Localism Act 2011, as inserted by Schedule 27 to this Act.”

This new clause creates a right for local residents and organisations to apply to a local authority to purchase sporting assets of community value that are derelict, mismanaged, or unreasonably made inaccessible.

New clause 52—Assets of negative community value—

“In the Localism Act 2011, after section 92 insert—

“92A Assets of negative community value

(1) A building or other land in a local authority’s area is of negative community value if, in the opinion of the authority, the asset—

(a) has been the subject of a measurable and sustained increase in anti-social behaviour in the locality,

(b) has caused material disruption or harm to the amenity, cohesion, or wellbeing of the local community, or

(c) has been vacant or derelict for a continuous period of not less than three years, and during that period no meaningful attempt has been made by the owner of the asset to restore it to use.

(2) A local authority may maintain and publish a list of assets of negative community value in its area.

(3) Where a local authority has listed an asset of negative community value, the authority may—

(a) take such steps as may be prescribed by regulations to secure temporary management or community stewardship of the asset;

(b) invite community groups, charities, or other qualifying organisations to bring forward proposals for its use or stewardship;

(c) exercise such enforcement or compulsory acquisition powers as may be made available by regulations made pursuant to subsection (5).

(4) The Secretary of State may by regulations—

(a) make provision as to the procedure for listing an asset of negative community value;

(b) confer rights of appeal on owners or occupiers of listed assets;

(c) provide for safeguards to ensure proportionality and fairness in the designation and management of such assets;

(d) make further provision for the disposal, management, or transfer of listed assets to qualifying community groups.

(5) For the purposes of this paragraph ‘community group’ has the same meaning as in section 86D of this Act (as inserted by schedule 19 of the English Devolution and Community Empowerment Act 2025).”

This new clause would create a parallel category to “assets of community value” by enabling local authorities to designate “assets of negative community value” (ANCVs). Designation would trigger a framework for temporary community stewardship or pathways to transfer into community use. Further provision would be made via secondary legislation.

New clause 59—Local authority acquisition of dormant assets—

“(1) The Secretary of State must by regulations made by statutory instrument enable a local authority to carry out functions relating to compulsory acquisition of land under section 226A of the Town and Country Planning Act 1990 (inserted by Schedule 15 of this Act) where the local authority is satisfied that any land of community value to be purchased within the authority area is dormant.

(2) Land of community value is considered dormant if—

(a) the land has been included in the authority’s list of assets of community value under section 86A for five years continuously,

(b) a notice of relevant disposal under section 86M was issued at least once during the five year period under sub-paragraph (a),

(c) there has been a preferred community buyer whose offer was rejected despite the buyer offering the value price determined under section 86T or an agreed price with the owner by the end of the negotiation period (see section86S(4)), and

(d) the owner has not entered into a relevant disposal of the land with anyone other buyer during the permitted sale period under section 86M(6).

(3) Regulations made under this section are subject to affirmative resolution procedure.”

This new clause would allow the Secretary of State to authorise a local authority to engage the compulsory acquisition function under Schedule 15 of this Act if the land is considered dormant.

[The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Miatta Fahnbulleh)]

When I spoke last week on why clause 60 should stand part of the Bill, I covered the provisions in the schedule, but I will restate my position. The schedule strengthens the existing assets of community value scheme in England and will give communities real power to take ownership of cherished local assets. Together with clause 60, the schedule is vital to delivering the Bill’s community empowerment goals and protecting assets at the heart of our local communities.

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

It is a pleasure to serve with you in the Chair, Sir John. My hon. Friend the Member for Hamble Valley set out the view of the official Opposition during the debate last week, so I will not relitigate that in its entirety, although I am sure he will be keen for me to emphasise the sheer cross-party commitment on assets of community value.

We know about the risk to assets that are at the heart of a community, from a village pub or cricket field through to community centres and business premises. We need a means laid out in the law whereby the value they add to the local community can be retained where necessary. That was enshrined in legislation by our party when we were in government, and in general we support the direction of the current Government in taking up those principles. We will listen carefully to the debate.

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

It is a pleasure to serve under your chairmanship, Sir John. I will speak to new clauses 12, 20, 52 and 59. New clause 12 stands in my name, new clause 20 in that of my hon. Friend the Member for Frome and East Somerset (Anna Sabine), new clause 52 in that of my hon. Friend the Member for Richmond Park (Sarah Olney) and new clause 59 in that of my hon. Friend the Member for Twickenham (Munira Wilson).

New clause 12 would give local councils a legal duty to oversee how land listed as a community asset is managed. That means that if the owner neglects or mismanages land of community value, the council can take powers to purchase compulsorily, take ownership and restore the land to community use, or to block planning changes that would further damage or undermine the land’s community value. Such powers are essential to protect local assets from being run down deliberately to justify redevelopment. By granting councils those powers, we enable them to hold absentee or speculative owners accountable and ensure that designated community assets are properly maintained and used for community benefit. We all have in our constituencies examples of land that has been mismanaged or assets left derelict. With the new clause, councils would become a genuine safeguard for assets of community value far beyond simply listing the assets. They would have real power to hold landowners and speculative developers to account.

New clause 20 would give community groups and parish or town councils a legal right to apply to buy sports facilities such as playing fields, leisure centres, gyms or pitches that have been derelict for two or more years, managed in a way that harms their sporting value, or unreasonably made inaccessible to the public. If the council agrees that those criteria have been fulfilled, it will be able to facilitate negotiations for a sale. As we spoke about in a previous debate, the abolition of district councils means that town and parish councils will be asked to take on more assets. It is therefore important that the safeguards are in place and that the unitary councils support them.

New clause 20 would save local sports facilities that have been locked up or left to decay by private owners by empowering local communities to bring them back into use. I had an example of that in my constituency a few years ago. A sports pavilion was built as part of the conditions for a new settlement, but it was locked—it was not used. When I became the councillor for the area, I asked why it was not open, and was told that the condition was to build a sports pavilion, not to manage it. The community managed to get the sports pavilion opened, and it is now a fantastic community hub and café, but it took a lot of campaigning from the community and parish councils, lots of grant applications and so on. It is important that we give councils all the tools they need. It is not fair that local sporting heritage and public access to sports facilities are lost due to neglect, speculation or profit-driven redevelopment. The new clause would put power back into the hands of communities to reclaim their pitches, courts, clubs and sports pavilions, and to keep sport where it belongs—in public hands and for the public good.

New clause 52 would create a new category complementary to assets of community value: assets of negative community value. Those would be properties or land that encourage, for example, antisocial behaviour, cause harm or disruption to community wellbeing, or have been vacant and derelict for at least three years with no attempt at restoration. I am sure we all have such assets in our constituencies. I can think of a couple in mine. Once the assets are listed, local authorities could take steps to secure temporary management or community stewardship. That would also contribute to wider community wellbeing. The councils could invite community groups to propose new uses or use compulsory purchase orders to bring the assets back into productive community use. New clause 52 would also allow local authorities to tackle eyesore or nuisance buildings that attract crime or vandalism. It is a way to contribute to the sense of place. We could speed up regeneration by giving councils and communities tools to deal with long-term neglect.

New clause 59 would give local councils greater power to protect and manage land that has been officially recognised as being of community value, such as local parks, playing fields, pubs or community halls. If a council found that such land was being mismanaged, it would have the power to compulsorily purchase it or, again, to refuse planning changes. The new clause would strengthen community protections against speculative neglect and misuse of valued local assets. For example, it would stop landowners from deliberately running down community buildings, green spaces or sports facilities so that they can later argue for redevelopment. The new clause would make councils stewards of community assets, rather than just record keepers of a list. It would give real teeth to the community right to buy, which obviously is welcome, and to the assets of community value system, which is set out in the Bill.

Overall, our new clauses would expand community rights and local authority powers from just protecting community assets by listing them to actively reclaiming and repurposing land that has been neglected or misused. We feel that the new clauses are drafted in the spirit of the community empowerment aspect of the Bill. They aim to strengthen local control and community ownership, especially where private ownership fails the public interest.

[Miatta Fahnbulleh]

I completely agree with the importance of protecting community assets from unscrupulous owners, but it is not clear that new clause 12 is wholly necessary or appropriate, and I am worried that it would place an unreasonable burden on local authorities by requiring them to monitor the management of all assets of community value in their area.

The substantive provision of the new clause gives local authorities the power to intervene and take on assets of community value, but those intervention powers already exist where land has been neglected or mismanaged. For example, under section 215 of the Town and Country Planning Act 1990, local authorities can take steps to clear up land and buildings whose condition adversely affects the amenity of the area, and we are refreshing the guidance to ensure that local authorities can make full use of those existing powers. For that reason, I do not think that new clause 12 is necessary, and I ask the hon. Member for Stratford-on-Avon not to press it to a vote.

Regarding new clause 20, it is really important to make it clear that the purpose of this policy is not to compel landowners to sell their property without first disclosing an intent to sell under proposed new section 86M of the Localism Act 2011. There are already well-established legal mechanisms for the acquisition of land without the consent of the landowner—I refer again to the existing compulsory purchase order powers. Local authorities can use those powers on behalf of community groups or parish councils to acquire sporting assets of community value that are derelict, mismanaged or inaccessible.

[Vikki Slade (Mid Dorset and North Poole) (LD)]

The Minister talks about existing compulsory purchase rights for local authorities, but that is very different from communities wishing to list assets of community value and then coming together to go through the process of purchasing them. If the Minister wants to say, “Well, this isn’t needed because we already have that,” why is the Bill even bothering with assets of community value or giving communities the right to buy? This provision is designed to put the power in the hands of the community. We know that most of the district councils will not exist anymore, and the strategic authorities will not be interested in a little block of garages or piece of land. That is why the new clause is about the assets being in the hands of the community.

[Miatta Fahnbulleh]

I completely agree that the community right to buy is about putting power into communities, but the new clauses would require local authorities to enable and facilitate. My point is that, in the instances where we need a local authority to step in, support and enable, there are existing powers to do that. We want communities to have the right of first refusal, and that is why we are including this provision. We want them to be able to designate vital local assets as being of community value, and combined with existing CPO powers, our view is that this provides the right set of provisions to ensure that the system works, and that it works in the interests of communities.

[David Simmonds]

I sympathise with the Minister’s argument, but does she agree that there is a general weakness in the Bill in that the opportunity has not been taken to tidy up the legislation, particularly the role of parish councils and parish meetings in this context? The point has been well made that it is often through those vehicles that we see districts and others going through reorganisation already looking to enshrine the community value of these assets. It is a missed opportunity if we leave it hanging so that the convoluted but robust powers that the Minister outlined, which can take years to put into effect, remain the only available route, when there is an opportunity for an alternative structure to deal with that now.

[Miatta Fahnbulleh]

I take the hon. Member’s point. I also take the point that a process of asset transfer between authorities and town and parish councils is happening. Our judgment is that the provisions we are putting in place sit well alongside that and will enable the processes to happen, but we will keep that under review, because the end goal is to ensure that communities are able to say, “This asset really matters to us, and we want it for the use of the community,” and that we enable them to do that. As we do with any legislation, we will keep this under review ,and if it is not biting in the way that we intend, we will consider how to build and strengthen the provisions. None the less, the intent is very clear.

On new clause 52, I commend and share the ambition of the hon. Member for Stratford-on-Avon to combat antisocial behaviour and eliminate vacant and derelict properties. We all have them in our constituencies; we know how much they are hated and the blight they cast on our communities. We are absolutely committed to creating thriving places and to reversing the decline seen in many of our communities. That is why, through our £5 billion pride in place programme, we are enabling communities to play a role in driving forward. Alongside that funding, we have ensured that local authorities have access to a suite of tools to meet the challenge, which we understand and we know is real. That includes powers to auction the lease of persistently vacant high street properties via our high street rental auctions and compulsory purchase powers, which we have discussed. Section 215 of the Town and Country Planning Act 1990 sets out powers to clean up land and buildings that may be affecting the amenity of the area and encouraging poor behaviour. The community right to buy will play an important role in ensuring that assets are used in a way that is appropriate and adds value to the community.

Finally, through the Crime and Policing Bill, the Government are strengthening the powers available to the police and other agencies to tackle antisocial behaviour. Every police force now has a dedicated antisocial behaviour officer to work with communities to develop an action plan and give residents a say. We recognise the problem that the hon. Member for Stratford-on-Avon has highlighted through new clause 52, and we have put in place a suite of things that will fundamentally get to the heart of that problem, which we know all our communities despair of and hate. I ask the hon. Member to withdraw the new clause.

[Manuela Perteghella]

We will not press new clauses 12, 52 and 59 to a vote, although we may reintroduce them on Report, but we will push new clause 20 to a vote.

--- Later in debate ---

[The Chair]

As you know, new clauses are debated now but decided later, so you will have the chance to test the opinion of the Committee at a later stage in our consideration.

Question put and agreed to.

Schedule 27, as amended, accordingly agreed to.

Clause 61

Establishment of Local Audit Office

[Miatta Fahnbulleh]

I beg to move amendment 237, in clause 61, page 62, line 20, at end insert—

“(8) Subsection (9) applies to any sum received by the Office by way of penalty under—

(a) paragraph 2A of Schedule 1B (penalties against external registration body), or

(b) arrangements made for the purposes of paragraph 10 of Schedule 1C (penalties against registered local audit provider),

including any interest.

(9) The Office—

(a) must pay the sum to the Secretary of State, but

(b) may deduct any costs incurred by it in connection with the imposition or enforcement of the penalty, so far as those costs are not otherwise recoverable.”

This amendment makes provision about the destination of penalties enabled by Amendments 238 and 240.

[The Chair]

With this it will be convenient to discuss Government amendments 238 to 240 and 242.

[Miatta Fahnbulleh]

These amendments contain provisions relating to criminal offences and enforcement among audit providers, lead partners and external registration bodies. It is vital that the local audit system has the right levers to deter and sanction improper behaviour and to establish beyond dispute the Local Audit Office as the regulatory authority for this system. This is about maintaining stability rather than effecting change. The amendments maintain the existing criminal offences relating to misleading statements and wrongful holding out, and set out oversight powers over professional accountancy bodies similar to existing powers. We will also retain the principle that a professional accountancy body, where recognised as an external registration body, will be responsible by default for enforcement. An external registration body will be required to investigate and impose a sanction for serious breaches committed by audit providers and lead partners.

The LAO will supervise any enforcement activity conducted by an external registration body. This could include setting guidelines on indicative sanctions, depending on the type of breaches, and monitoring live cases. The LAO will have the power to reclaim responsibility for any particular enforcement decision if it is considered to be in the public interest. This will ensure that the LAO is the final authority on all quality matters. An improvement-led approach will be central to the LAO’s regulatory work, and we expect that any enforcement action will be considered only as a last resort. However, it is vital that these levers exist to ensure that the local audit system is accountable and responsive, rather than broken, as was expressed very powerfully in our oral evidence session.

[David Simmonds]

Again, the Opposition are broadly sympathetic to the Government’s direction of travel, but I will put a couple of questions to the Minister. I previously raised the issue that, in respect of local audit, there are a number of accredited accounting bodies to which professionals may belong. I have not seen a response, but I know that at the time there was some discussion about the Chartered Institute of Public Finance and Accountancy being the identifying body. I seek an assurance that the Government have given due consideration to what will happen where that qualified individual of an appropriate status belongs to another professional body that sets accounting standards, rather than CIPFA, not least because accounting is often as much an art as a science, and there are differences of opinion as to how different accounting provisions might be made.

Secondly, I would be grateful if the Minister can give some clarity to the Committee. Government amendment 237 requires that, when a penalty is imposed, the Local Audit Office must pay the sum of that penalty to the Secretary of State. Clearly, where there has been a failing in local audit, it is the specific local authority, or the general group of local authorities, that is the victim; they are the ones who have suffered a demerit or deficit as a consequence. It seems a little illogical that the penalty would be paid to the Secretary of State rather than those who have been directly affected by that failing. It would be helpful if the Minister set out how the Government will ensure that, where those failings have had an impact, and where penalties have been gathered to make some degree of remedy, it is the victims that see the benefit, rather than it essentially sitting in a Government office.

[Miatta Fahnbulleh]

I thank the hon. Member for his questions. He raised the question of CIPFA, and I committed to clarifying that in writing. I believe we have done so, but I will make sure that we come back to confirm that. On his very good point about ensuring that the penalties are not gobbled up by the central state, we are moving towards a more centralised system, whereby the LAO reports to the Secretary of State, who is then accountable to Parliament. That is the mechanism through which this will happen. However, the principle is right: if fines are imposed, they will be used to bolster the system, which we know needs huge repairs. We know that over time, as we reform the system, we will need to ensure that we are investing in it. Whatever the collection processes for these fines, it is right and fair that they ultimately go towards bolstering the system and ensuring that it is improving.

[The Chair]

The Minister has been very courteous in saying that she will make the letter available to all members of the Committee. Will it include the guidelines she mentions? Shall we discuss that offline, rather than testing her on it now?

[Miatta Fahnbulleh]

indicated assent.

[The Chair]

I know that the Minister mentioned guidelines that will be published, and I just wondered whether they will be available during the course of our consideration, but let us think about that at the end of today’s sitting.

Question put and agreed to.

Amendment 237 agreed to.

[The Chair]

With this it will be convenient to discuss the following:

Schedule 28.

Government new clause 9—Review of audit and reporting arrangements at Secretary of State’s request.

[Miatta Fahnbulleh]

The local audit system is broken. There is consensus about that across the House and within this Committee. It is fragmented and has significant capacity and capability challenges. The problems in local government reporting and the backlog of unaudited accounts have led to the disclaimed opinion on the whole of Government accounts for the past two years. This provides no assurance to Parliament, and puts public accountability and trust in the system at risk.

The Government are leading the most transformative programme of audit reform in over a decade. Clause 61 will enable the Local Audit Office, a new statutory and independent body, to be established by autumn 2026. The LAO will have an oversight, regulatory and appointing role in the local audit sector. It will cover a wide range of public sector bodies responsible for delivering essential services and managing public funds, as well as oversight of aspects of the NHS audit system.

The LAO will be instrumental in overhauling the local audit system and will play a crucial role in ensuring that reforms are effectively implemented to provide better value for taxpayers and support economic growth. The LAO will be vital to rebuilding transparency, accountability and public trust in local government, and will restore a crucial part of the early warning system for local authorities.

Schedule 28 sets out the core elements of the LAO’s constitution and governance to enable this new organisation to be established. Part 1 establishes the requirements for the board, as proper constitution of the LAO is critical to establishing its authority, ensuring operational readiness and enabling it to deliver its objectives. Part 1 also covers other provisions that are integral to the successful set-up and operating function of the LAO.

Part 2 of the schedule allows the Secretary of State to put schemes in place to legally and properly transfer employees who are currently performing functions that the LAO will be responsible for after it is established.

[Paul Holmes (Hamble Valley) (Con)]

Good morning, Sir John. I am asking for a genuine point of clarification from the Minister. The Library briefing says:

“If an MP were appointed”

to one of these boards,

“they would be disqualified from membership of the House of Commons”.

Why have the Government chosen to do that? There is no motivation behind my question; this is just for clarification.

[Miatta Fahnbulleh]

That is a very niche question. I will have to write back to the hon. Member to clarify.

[Paul Holmes]

I do not expect the Minister to know the answer this morning, but if she could write to me before the end of our sittings this week, I would be grateful. The reason I ask the question is that these are local audit offices for local authorities. The Secretary of State is appointing these boards, and there is obviously political oversight of those appointments, but it would seem sensible to have the expertise of someone representing the area. If this is a devolution Bill, appointing MPs would seem to be perfectly fine, so I am not sure why the Government are disqualifying them. If she could come back to me on that point, I would be most grateful.

[Miatta Fahnbulleh]

I am happy to write to clarify that key point.

Everything that we are doing through these new clauses and this reform package is in order to ensure that we have a system that is fit for purpose, fair and operates so that we can build trust and accountability within public bodies at the local level. Committee members will appreciate the importance of providing certainty to the people who have worked to maintain the local audit over the years, which is why we are putting in place these two provisions.

New clause 9 will provide the Secretary of State with a new power to require the LAO to conduct a review of local bodies’ financial reporting and audit arrangements. The LAO will have the power, through contract management and quality oversight, to monitor timeliness in the sector, and will have levers to hold firm account where audits are late. Those statutory reviews will address the accountability gap by providing a way to understand whether individual local bodies have adequately supported the audit process. We believe that those reviews are vital to restoring public accountability, providing assurance at each stage of the audit process and rebuilding our early warning system. They are an integral part of a much bigger reform that we think is both necessary and long overdue. I commend the new clause to the Committee.

[David Simmonds]

Will the Minister set out the role of the section 151 officer in relation to the Local Audit Office? Primary accountability around local government finance is in the council tax fixing process. By law, it has to be balanced in-year. The audit process sits behind that, verifying that the information presented, on which that decision has been lawfully made, is true and accurate. The section 151 officer holds that legal duty in each local authority. Can she set out how the accountability that she has described, which revolves around the role of that individual, will be dealt with by the law, particularly given the role that the Secretary of State is taking on in the appointments process?

--- Later in debate ---

[Miatta Fahnbulleh]

We are trying to ensure that there is a coherent system operating across all of local government. That is the core role that the LAO will play. The system is fragmented at the moment. There are multiple bodies, whether that is the NAO or other bodies, that are in some respects duplicating functions. The consistency and clarity that we need across our local public bodies is therefore not there.

The local government accounting system will remain as it is. Through guidance, but also through practice and working with the new LAO, we will try to ensure far better alignment between the functions held by local authorities, whether that is the accounting officer role or the audit committees, and the infrastructure that we are trying to provide at a national level. We do not think that the new clause will duplicate or undermine that system; it remains a core pillar.

However, we hope that the new clause will ensure that we have a national framework that works across the piece, that we are contracting auditors of the highest standards and that local authorities can use the insights from those audits to make sure that they are managing their public accounts effectively. We think it is complementary and supports our existing institutions. At the moment, it feels like the national infrastructure is undermining the efforts at the local authority level.

[The Chair]

With the courtesy that she has shown throughout the Committee, the Minister has agreed to write a further note to clarify some of those points. I am grateful for that.

Question put and agreed to.

Clause 61, as amended, accordingly ordered to stand part of the Bill.

Schedule 28 agreed to.

Clause 62

Local audit providers: registration and public provision

--- Later in debate ---

[Miatta Fahnbulleh]

Let me first clarify that no decision has yet been made on who will deliver public provision. It is important to state that. The Bill is drafted deliberately to allow flexibility, whether through the Local Audit Office itself, through a company that it establishes or in collaboration with the private sector. That said, I fully agree that if the Local Audit Office does act as the audit provider, it must be subject to robust and independent scrutiny to maintain trust and confidence across the sector. That principle is wholly right, and I think everyone would agree with it.

Clause 66 already requires the Local Audit Office to appoint an independent entity to scrutinise its audit work. We do not consider that amending the language from “independently” to “wholly independent” would change that position, although I recognise that it is a small change and I understand the intent behind it.

The expectation that the appointed body must possess appropriate expertise is inherent in the function itself and a statutory requirement for expertise would be unnecessarily prescriptive—it is in the practice, the guidance and the strength of the infrastructure and the institution that we are creating.

The LAO will remain accountable with the Department, and there will be robust mechanisms to ensure transparency and competence. That is a big priority for us as a Department, given the state of the system that we inherited. The Secretary of State will continue to use all the available levers to ensure we have a system and an LAO that is independent when it needs to be and of the highest standard and competence. I hope the hon. Member agrees that there are sufficient safeguards in place and will withdraw the amendment.

[Vikki Slade]

I believe the public would expect it to be very clear that someone was not “acting independently”, but were in fact independent, so I will push the amendment to a vote.

Question put, That the amendment be made.

--- Later in debate ---

[The Chair]

With this it will be convenient to discuss schedule 29.

[Miatta Fahnbulleh]

Clause 62 will establish a new framework for the regulation of local auditors, which will be overseen by the Local Audit Office. Independent reviews have been consistently clear that local audit regulation is too fragmented and lacks central co-ordination. The system is failing and, at the same time, audit quality requirements designed for corporate audits have driven up work on areas of accounts of little relevance to users. That contributes to delays and increases costs.

The clause enables the LAO to hold a register and regulate the sector directly, or to designate and supervise an external registration body to oversee the registration, quality monitoring and conduct of audit providers. Designation of an external registration body would reduce potential conflicts of interest for inspectors and monitoring. The LAO would retain overall authority for the audit quality and act as the final arbiter where enforcement action is required. We expect the LAO to continue the current model under which a professional accountancy body is recognised to register and oversee audit firms, although it will not be bound to do so. The framework will facilitate high-quality, timely audits and restore the confidence of local bodies and users.

Schedule 29 sets out the detail of the new framework for the registration, oversight and quality of local audits. It replaces the existing statutory framework, which aligned local audit regulation with corporate audit regulation, and had rigid statutory safeguards and regulatory functions delivered by a range of bodies. That reflected a move to the private market provision of the local audit, with the expectation that local bodies would individually appoint their own auditors. By contrast, the LAO will restore central oversight and public accountability to the local audit system, with mandatory and independent auditor appointments to all local authorities, as well as some other local bodies. The schedule streamlines and simplifies the regulatory framework. I commend the clause and the schedule to the Committee.

[David Simmonds]

I will briefly return to the question of accounting standards and how they will operate. As the Minister set out, the aim is to streamline and, broadly, to restore the Audit Commission district auditor-type system we have seen in the past, which itself had a number of issues. Clearly, when local authority councillors make their decision on fixing council tax—when local authority finance officers put that information together—they will always be mindful of the accounting standards that apply.

One of the issues is that there are a lot of different ways of approaching that. Some may use cash accounting and some will use accruals; some will use Sage and some will use Oracle. All of those have different characteristics in managing the system, and different auditors may have different views about which they prefer. Many of us will have experience of where a difference of opinion between auditors on the treatment of a transaction can have a significant impact, including by directly impacting the level of council tax that needs to be set.

I have not been able to locate a response from the Minister on the different types of accounting. Can she set out how the system will ensure sufficient flexibility to recognise legitimate professional differences between different types of accountants, authorities, businesses and systems? None of them is inherently wrong or incorrect; they just reflect different approaches to managing the finances of that local authority. Flexibility for local decision making should remain at the heart of what is supposed to be a devolution Bill.

[Miatta Fahnbulleh]

I apologise to the hon. Member for the lack of response—I will make sure we get one to him swiftly. Inevitably, different accounting standards will be used. We will set out guidance, and we will of course look to retain flexibility within that, so that local authorities can ensure that they are using the appropriate standards. We do, however, need a far more centralised and streamlined process, whereby the appointment of auditors is done through a central function—the LAO. Across the piece, there will be uniform and consistent standards that apply both to local authorities and public bodies. That is currently sorely missing, but within the system, there will be different accounting standards and professional body accreditation that individual auditors will apply to. For us, the key is consistency and clarity across the piece on the standards and norms that all professional accountancy bodies are using.

[David Simmonds]

The key challenge is that, unlike any other public body, local authorities are democratically elected. They are subject to an annual process of budget fixing, where they are legally obliged to balance that budget in year. That rule does not apply to any Government Department, or NHS bodies and so on, all of which have a conversation with central Government about how overspends, capital expenditure, borrowing and so on are dealt with, in a completely different way from local authorities. Could the Minister address that, and ensure that the Committee is fully aware of how those provisions will be considered?

Local authority finance is not the most exciting subject—[Interruption.] I hear murmurs of agreement—but ensuring investment for housing, children’s social care, adult social care, education and local transport depends on us getting this right. Rather than create a system that sets local authorities up to fail, we need to have that debate and put that right straightaway. Taking into account fully the specific, unique legal and financial impositions on local authorities in this audit arrangement is critical, so that decisions can be made locally in good faith and with the relevant level of local democratic accountability.

[Miatta Fahnbulleh]

I misunderstood the hon. Gentleman’s original question. The accountability of the finance director, the sets of standards already locked in and the legislation they have to consider to ensure good use of public funds completely apply to this. It is their responsibility to ensure that the council’s decisions are right, that it is financially viable and that it is delivering the services required. The changes we are putting in place do not cut across that or undermine it. It remains a fundamental plank of this.

We are, however, changing the oversight. First, we are enabling an independent auditor to come in and do the function of auditing, as that is currently not happening. Secondly, it will be done with auditors who adhere to a standard code of norms consistent across the public sector. That ensures that we are raising standards across the piece. If a council gets an audit, it will know it is an audit of good quality that will drive and deliver the change that we want.

Thirdly, we already have the best value regime, where central Government can intervene when local authorities are not performing, or there are financial considerations at play. That will still apply. This takes the best of the current system but deals with the existing gap, which is that we do not have a uniform, consistent auditing regime that ensures an independent review of what individual councils are doing. The new system will also ensure that when problems are found, there is a mechanism for escalating, so that councils will be financially viable and delivering effective services. We all want to achieve that but, sadly, the audit regime is not delivering it at the moment. It beggars belief, but it is where we are now. These additional provisions will strengthen the entire infrastructure, add to the responsibilities of our finance directors as accounting officers, and deliver local authorities that are more financially secure and able to deliver the services their users require.

Question put and agreed to.

Clause 62 accordingly ordered to stand part of the Bill.

Schedule 29

Local audit: registration bodies, registered providers and qualifications

Amendments made: 238, in schedule 29, page 297, line 17, at end insert—

“Financial penalties

2A (1) If the Local Audit Office considers that an external registration body has failed to comply with a requirement under—

(a) this Act, or

(b) an agreement under section 6B(5),

the Office may impose a financial penalty on the body.

(2) A financial penalty is imposed by giving the body a written notice requiring the body to pay the Office a financial penalty of a sum specified in the notice.

(3) Such a notice must—

(a) explain the Office’s reasons for imposing the penalty, and

(b) specify the time by which, and manner in which, the penalty must be paid.

(4) An external registration body must, as soon as practicable after the end of a financial year, notify the Office of its total income in that year from fees charged under section 6A(5).

(5) The amount of a penalty imposed on a body under this paragraph may not exceed 30% of the sum last notified by the body under sub-paragraph (4).

Directions and penalties: procedure etc

2B (1) Before giving a direction under paragraph 2 or imposing a penalty under paragraph 2A, the Local Audit Office must—

(a) give the body a notice of intent, and

(b) consider any representations made by the body in response to (and in accordance with) that notice.

(2) A notice of intent is a notice that—

(a) states the Office’s intention to give the direction or impose the penalty,

(b) sets out the intended terms of the direction or of the notice imposing the penalty,

(c) explains the Office’s reasons for intending to give the direction or impose the penalty, and

(d) specifies the time by which, and manner in which, representations may be made.

(3) Where the Office has given a direction under paragraph 2 or imposed a penalty under paragraph 2A, the Office may by written notice given to that body—

(a) cancel the direction or penalty, or

(b) vary the direction, or the notice imposing the penalty, it in any way that does not make it more onerous.

(4) The Office must publish—

(a) a direction under paragraph 2,

(b) a notice imposing a penalty under paragraph 2A, and

(c) any notice cancelling or varying such a direction or notice.

(5) But it must do so only after the direction or penalty can no longer be cancelled or varied on appeal (ignoring any possibility of an appeal out of time).

(6) If a penalty imposed under paragraph 2A is not paid in time—

(a) the penalty (or the unpaid part of it) carries interest at the rate for the time being specified in section 17 of the Judgments Act 1838;

(b) the Office may recover the penalty (or the unpaid part of it), with the interest, as a debt.

Directions and penalties: appeals

2C (1) An external registration body may appeal to the High Court against a direction given to it under paragraph 2 or a penalty imposed on it under paragraph 2A.

(2) The grounds on which an appeal may be brought are—

(a) that the failure of compliance on the grounds of which the direction was given or the penalty was imposed did not occur, or

(b) that any of the following is unreasonable—

(i) the decision to give the direction or impose the penalty;

(ii) any of the terms of the direction;

(iii) the amount of the penalty, or the time or manner of its payment.

(3) If satisfied that any of those grounds is made out, the court must allow the appeal and do whichever of the following it considers appropriate—

(a) cancel the direction or penalty, or

(b) vary the direction or the notice imposing the penalty.

(4) Otherwise, the court must dismiss the appeal.

(5) The court may—

(a) make an interim order suspending the effect of a direction or penalty appealed against under this paragraph;

(b) if it allows an appeal under this paragraph against a penalty, make any order as to interest that it considers appropriate (including an order varying the effect of paragraph 4(6)(a)).

Compliance orders by the court

2D (1) This paragraph applies if the High Court is satisfied, on an application by the Local Audit Office, that an external registration body has failed to comply with a requirement under—

(a) this Act, or

(b) an agreement under section 6B(5).

(2) The court may order the body to take steps that the court considers will secure that the requirement in question is complied with.

(3) Such a step—

(a) must be one that the body has the power to take;

(b) may consist of not doing something.

(4) This court may not make an order under this paragraph in respect of the requirement to comply with a direction under paragraph 2 unless it is satisfied that the failure of compliance on the ground of which the direction was given did in fact occur.”

This amendment empowers the Local Audit Office to take enforcement action against an external registration body if it fails to comply with its duties.

Amendment 239, in schedule 29, page 301, line 28, at end insert—

“(c) arrangements for the imposition of sanctions in respect of breaches that are established, and

(d) registration rules and lead partner rules designed to secure that providers and lead partners are bound by any sanctions.”

This amendment and Amendment 240 require the body maintaining the register of local audit providers to put in place a system of sanctions, including financial penalties, against registered providers and their lead partners.

Amendment 240, in schedule 29, page 301, line 30, at end insert—

“(3) The available sanctions must include financial penalties.

(4) The arrangements and rules must allow for appeals to be made to a person who will determine the appeal independently of the maker of the decision appealed against.

(5) The arrangements and rules must allow for the Local Audit Office to be able—

(a) to determine that a particular case raises or appears to raise important issues affecting the public interest, and

(b) to assume enforcement responsibility in a case in which it has made such a determination.

(6) For the purposes of sub-paragraph (5), the Office assumes enforcement responsibility if it assumes responsibility for the final decision (subject to any appeal) as to—

(a) whether the requirement or rule in question has been breached, and

(b) if so, the sanction to be imposed.”—(Miatta Fahnbulleh.)

See the explanatory statement for Amendment 239.

Schedule 29, as amended, agreed to.

Clause 63

New appointment arrangements for non-NHS audits

Question proposed, That the clause stand part of the Bill.

[Miatta Fahnbulleh]

Clause 63 is central to our reform agenda. It will give the new Local Audit Office responsibility for appointing auditors for all local authorities, as well as some other local bodies, such as police and fire bodies. Currently, such bodies can choose to opt into an appointment scheme overseen by Public Sector Audit Appointments Ltd or appoint their own auditor. In practice, more than 99% of bodies are opted into PSAA’s scheme, demonstrating the sector-wide support for a centralised appointment regime.

Centralised appointments significantly reduce burdens on individual authorities. The LAO’s position at the heart of the audit system will make it uniquely qualified to ensure that audits provide value for money, support market sustainability and effectively manage audit contracts. The clause will also establish a proportionate framework in which the LAO will make appointments, including requirements regarding when and how appointments are made. I commend the clause to the Committee.

[David Simmonds]

A number of these other local bodies are subject, in the Treasury’s eyes and legally, to different accounting rules. In particular, Government Departments have revenue and capital departmental expenditure limits, and the Treasury is happy to shift money between those annually: capital may be allocated to cover revenue shortfalls and so on. That is something that a local authority cannot do. Will the Minister set out how the appointment process will ensure a high degree of transparency, particularly at the local level, so that people can see the difference between bodies that are subject to the local authority regime of in-year balancing and the other local bodies that are subject to a separate regime, and why the levels of assurance and the nature of decision making may be different? I would be grateful for clarity and assurance on those points from the Minister.

[Miatta Fahnbulleh]

I confess that I am not 100% clear about what the hon. Gentleman is getting at. I might partly answer his question by saying that the majority of public bodies—99%—are going through the Public Sector Audit Appointments regime anyway, because they see value in it. What we are now doing is taking that function, aligning it with the oversight of the entire regime and putting it in the Local Audit Office. That will make it streamlined and more effective. We are not fundamentally changing the decisions that individual local bodies are making.

If there was a big clamour for diversity in the market, that would be a different thing, but at the moment we hear from local public bodies that they want a centralised system. That makes their life much easier; it means there is a standard procurement process, which reduces the burden on them. It means that they get an auditor that is accredited and approved to be of a certain standard, and therefore they can be confident in that auditor. The system should make it easier for all our public bodies. At the moment, all our conversations suggest that they hugely support the direction of travel and have no concerns about it. Perhaps I have not understood the hon. Gentleman’s question. We are taking something that is happening by default anyway and making it better and standard, in a way that will work for all those public bodies.

[David Simmonds]

I am reassured to a degree by what the Minister says. I was personally involved in the setting up of the PSAA, although I do not have any direct interests in it. The market has clearly moved in that direction. My concern with bringing all these things into a central accountability stream that sits with the Secretary of State is that the legal and financial environments in which these bodies operate are quite different. If an NHS trust or a police organisation has overspent, it can ask the Secretary of State to reallocate capital for building, for example, a new police station to cover the revenue shortfall, but the local authority cannot do that.

The risk is that, if there appears to be a consistent standard, the judgments produced in respect of authorities that are operating within one legal and financial framework will be very different from those produced in respect of bodies operating within another. Given the Bill’s envisaged reorganisation of local government and the centralisation that the Minister has referred to, we need to retain a level of local clarity about what differences arise as a result of local decision making, so that council tax payers can see them, versus things that result from interactions with central Government via the Secretary of State.

[Miatta Fahnbulleh]

Decision making at the local authority level will remain. Accountability to the constituents in the local authority will remain. We are not fundamentally changing that regime, and hopefully we are making it better by, for example, moving to multi-year budgets for local authorities and consolidating budgets, so that there is far more flexibility for them to manage the challenges that we know they have to manage.

That is complementary to what we are trying to do by creating a national audit system that is coherent, of a high standard and works, which is not what we have now. These arrangements will not undermine the decision-making ability of local authorities. They will mean that a proper accountability system is in place, so that we are better able to validate when authorities are either failing or in financial distress and put in place the measures that I have talked about, such as the best value regime, to get them out of distress.

Once again, the clause is not an attempt to run counter to the accountability system that local authorities must have for their people. It is an attempt to strengthen that accountability system, so that local people have an independent basis to verify what the local authority is doing. I think that Members across the piece will support that.

Question put and agreed to.

Clause 63 accordingly ordered to stand part of the Bill.

Clause 64

Audit providers to nominate lead partner

Question proposed, That the clause stand part of the Bill.

[Miatta Fahnbulleh]

The clause will change the current requirement whereby local audits may be signed off only by a key audit partner—a senior auditor who meets specific eligibility criteria determined through statutory guidance. The current requirement for local audit sign-off is both rigid and unique to local audits. No other audit category places such a specific condition on the eligibility of senior auditors. That has restricted the pipeline of senior auditors to the sector and places a significant barrier to market entry. It can be difficult for a firm wishing to enter the market to recruit or develop individuals who can satisfy the specific criteria.

Under the clause, the requirement for key audit partners to sign off local audits will end. Instead, local audit officers will work with an external registration body to establish suitable competence requirements. The measure will empower the sector to draw on the best possible range of talent, while continuing to ensure that senior auditors are competent and understand the distinctive element of the local audit. I commend the

[David Simmonds]

The section 151 officer is the person in the local authority who has whistleblower protection; they have a legal obligation to ensure that the local authority has the information that it needs when setting its budgets, and that the information is true and correct. However, disputes about the treatment of financial decision making are also common, where a section 151 officer may have a lesser degree of comfort about a risk arising from a decision.

We talked earlier about assets of community value, and there are many MPs in this room who will have campaigned for their local authority and undertaken responsibility or an intervention to preserve an asset or local amenity. That leads to a debate about whether that is a good use of taxpayers’ money. The elected folk may be of the view that it is, but a section 151 officer may say that it does not stack up in financial terms. There needs to be a process for resolving that dispute, and that will revolve around the professional standards that the Minister has just set out. It would be helpful if she could set out what process of assurance there will be following a decision, so that we can all be clear that there is an adequate pipeline of people, as she has described, to undertake those roles, and that we do not suck out all of the expertise of section 151 officers, who are the only people who can undertake them. What consultation has the Minister undertaken with accounting bodies, such as the Association of Consulting Actuaries, CIPFA and all the others, so that they can ensure that the necessary degree of influence has been exerted to ensure that the training standards and process that will emerge from this will be sufficiently robust?

[Miatta Fahnbulleh]

We recognise that we have a challenge in bringing in sufficient audit capacity of the standard we need. That is the status quo. We are working closely with the sector to ensure that we are generating a pipeline and that there is training provision. We are working with the Local Government Association to ensure that that happens.

To be completely candid, we are in a mess. I will not play party politics by mentioning where that mess came from, but the status quo is dire. The regime is failing, and we do not have sufficient audit capacity of the quality that we want. That is why we are putting these reforms in place. I reassure the Committee that we completely understand the challenge we face. We want to keep high-quality finance directors in local authorities. We understand the risk that there might be bleed into the much bigger audit infrastructure and regime that we are creating, but the job now is to reach into the private and public sectors to train up a cadre of auditors so that the system is fit for purpose. At the moment, the system is under strain and collapsing. There is urgency, certainly on the part of the Government—that is why we are bringing forward these reforms—to address the problem.

Question put and agreed to.

Clause 64 accordingly ordered to stand part of the Bill.

Clause 65

Code of audit practice

Question proposed, That the clause stand part of the Bill.

[Miatta Fahnbulleh]

This clause will transfer responsibility for the code of audit practice from the Comptroller and Auditor General at the National Audit Office to the Local Audit Office. The clause also unequivocally sets out that, as the standard-setter for local audit, the LAO will be able to modify auditing standards to reflect the needs of local public bodies—a point that the hon. Member for Ruislip, Northwood and Pinner was making.

The LAO will review the interpretation and/or application of international standards on auditing, including where the requirements of specific standards should be interpreted for the local audit context. Currently, auditing standards are interpreted for corporate and local audit by the Financial Reporting Council. In the current system, it has not been possible to vary the interpretation of standards to better reflect the risk profile of local bodies.

It is vital that the LAO has the powers to interpret some standards differently for local audit. Otherwise, extensive work will continue to be required on areas of accounts that have little relevance to account users, contributing to timeliness and capacity issues as well as undermining value for money. Through its ownership of the code of audit practice, the LAO will be empowered to define appropriate audit requirements for different categories of body in the principal audit regime. This is central to delivering our commitment to a risk-based and proportionate approach to local audit that is focused on the needs of local bodies and account users. I commend the clause to the Committee.

[David Simmonds]

Will the Minister briefly set out some examples of things that are being undertaken but she feels are not adding value? We are all sympathetic, but it would be helpful to the Committee’s decision making if we understood what we are going to stop doing as a result of the decision we are being asked to take.

[Miatta Fahnbulleh]

It is not wild or out there to say that the new auditing body we are creating should have full flexibility to ensure that the standards being applied are appropriate. The feedback we are getting from local government and public bodies is that the status quo is not fit for purpose, that it is onerous, and that its requirements do not align with their needs or, critically, the needs of the user. Is the hon. Member suggesting that the current system is fit for purpose? Is he suggesting that we retain it or that it does not require reform? If he is, he should stand up and say so.

[David Simmonds]

The Minister is perhaps being a little mischievous in responding politically to what was essentially a technical question. We all recognise that there are challenges. Broadly, the audit system suffers not from a lack of regulation but from a lack of capacity. Measures such as Public Sector Audit Appointments were designed to address that, but they have not been sufficient, despite being implemented in consultation with the sector. We therefore agree that an alternative approach is required.

The Minister has been clear to the Committee that she feels that many of the requirements imposed by the current system are unnecessary. She has returned a number of times to the point about there being things that do not add value and are onerous. It would be helpful if she set out what those things are so that our colleagues in local authorities can understand what will be removed from the requirements upon them and the Committee can understand what risks, if any, that poses to the public.

[Miatta Fahnbulleh]

I dare not do the job of the Local Audit Office, or indeed trained auditors, and go into detail. This provision creates powers for the LAO to design a system that works for local bodies. As I said, the feedback that we have had from local authorities and public bodies is that the current system is onerous. It will depend on whether we are looking at a fire and rescue service or a local authority service, but it is absolutely right that we confer the powers on the LAO to look at the system and say, “We will change and adapt the standard so that it is fit for purpose.” I do not think that is controversial; I do not think it requires me to talk about it in great detail. We will issue guidance for the LAO and it will set the standards and what is appropriate. It is right that we give it the powers to do that in the Bill.

[David Simmonds]

The treatment of the dedicated schools grant, which has a huge impact on local authority budgets, is an example of an issue that comes up regularly on the Floor of the House. It is CIPFA’s view that, because it sits within a legal ringfence that has to be balanced each year, it is a budget killer for local authorities. However, ownership of that sits with a different Government Department that takes a different view about how it should be addressed. To me, that is a good example of something that is onerous and requires a lot of work, but in practice, the Government have collectively decided that they are going to deal with it in a different way and effectively ignore the rules that they imposed on local authorities to make it go away.

The Minister keeps returning to the point that she feels that there are elements of the system that are onerous and burdens that should be alleviated. It would be helpful if she briefly set out a couple of examples for the Committee so that we can understand what she thinks we should no longer look at so that we and our council taxpayers can at least understand the risk and reward associated with it.

[Miatta Fahnbulleh]

If the hon. Member wants examples, one example—I am sure that we can give others based on the conversations that we have had with local government—is that pensions do not drive local government decision making and financial resilience, so the audit reviews focus on operational assets that may not be necessary, depending on the local body that we are talking about. There are clearly examples within the system.

I come back to the fact that we are not prescribing this; we are saying it is right that a new body that will have oversight of a regime that we all agree needs to be reformed should be able to make sure that those standards are commensurate with what is required by the local authority and public bodies as well as the user. That is not controversial; that is common sense. It is right that we create the provisions for that new body to do that.

Question put and agreed to.

Clause 65 accordingly ordered to stand part of the Bill.

Clause 66

Audit committees

[Manuela Perteghella]

I beg to move amendment 18, in clause 66, page 70, after line 28 insert—

“(4A) A Local Audit Office may make arrangements about—

(a) the membership of an audit committee;

(b) the appointment of the members; and

(c) the conduct and practices of the committee.”

This amendment removes the role of the Secretary of State in appointing audit committees and provides LAOs with the ability to oversee the membership and work of audit committees.

--- Later in debate ---

[David Simmonds]

I am sympathetic to the issue behind these amendments, although I am not convinced that this is the mechanism to address it. I will briefly explain why, and where this sits in the context of the previous debate. The Minister gave the example of the pensions audit as something that we could alleviate, but my personal experience would suggest that is a very poor example, and amendments 18 and 17 connect to it.

If we think back to the last big financial crash when the last Labour Government were in office, the local government pension scheme, which is currently overfunded, saw a huge fall in the value of its assets to the extent that it was then 30% underfunded. Local authorities across the country, which have a legal obligation to make up any such shortfall, were then faced with this question: to what extent will we have to make financial cuts to public services to bridge that gap at short notice so that, if the pension fund is falling short, council tax will bail it out? That is not something about which we could say, “You don’t really need to know about it, and you can safely ignore it.” It is something that, if it goes wrong, could be critical to the finances of that local authority.

When these amendments talk about local arrangements, I think they are seeking to enable flexibility in a local authority, for example, whose pension fund profile may be slightly different from its neighbours or outwith the norm, because it has a younger or older workforce than is typical, or because it has entered outsourcing arrangements. That flexibility would allow the local authority to have people on its audit committee who have the relevant experience to ensure that the audits and information reflect that, and that the decision making properly reflects those risks and does not unduly impact on council tax payers. Does the Minister have a good view or a strong reason as to why that element of local expertise should be disregarded, given the extremely significant financial risks associated with the example that she gave the Committee of something that she envisages the Government will stop requiring councils to do?

[Miatta Fahnbulleh]

Let me deal directly with amendments 18 and 17. I reiterate to the hon. Member for Stratford-on-Avon what I have consistently said: the governance regime of local government finance is not changed by the measures in the Bill. It will still stand, including the decisions that accounting officers and the finance director need to take, and the accountability to the local community still holds. We are shoring up the system of assurance so that it is fit for purpose, and to ensure that there is independent scrutiny that then feeds back into what the local authority does. That is how the system should be operating, but it is not currently, which is why we are driving through these reforms.

On the amendments, I recognise the important role that the Local Audit Office will play in overseeing the local audit system. Amendments 18 and 17, however, would delegate important policy and legislative functions from Ministers—who are directly accountable to the House, which is the way we believe it ought to be—to an independent body.

Given the central role that audit committees play in local financial governance, it is essential that responsibility for their statutory framework remains with the Secretary of State, who is responsible for the overall integrity and effectiveness of the local government system. My Department will continue to work closely with the Local Audit Office and key stakeholders in the sector to ensure that audit committee requirements are effective, proportionate and well-functioning. We think, however, that parliamentarians would want the Secretary of State to be ultimately accountable, so that Parliament can hold them to account. For that reason, I ask the hon. Member to withdraw her amendment.

On amendment 362, I fully support the hon. Member’s view that audit committee members must demonstrate the necessary skill, understanding and competence that we are asking of them. The committees are integral to robust local governance, playing a critical role in ensuring that public resources are used efficiently, transparently and in the public interest. Clause 66, however, already provides for the Secretary of State to issue statutory guidance in relation to audit committees. It is our intention that the guidance will include a requirement for members to undertake appropriate training.

Alongside that, we will continue to work with the LGA and CIPFA to ensure that training programmes support existing and new audit committee members. There is a job to be done to make sure that we have a pipeline of members, that they are fit for purpose and that we have the right training and capacity building in place. I hope that that assures the hon. Member that we are doing everything we can to ensure that training is fit for purpose, as we need audit committee members of a high quality and standard, and that we will continue to work with the relevant bodies to ensure that that is a reality.

[Manuela Perteghella]

I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Amendment proposed: 362, in clause 66, page 70, line 31, at end insert—

“(c) the training of members newly appointed to an audit committee.”—(Manuela Perteghella.)

This amendment would require the provision of training for all new members of an audit committee.

Question put, That the amendment be made.

--- Later in debate ---

[Miatta Fahnbulleh]

Clause 66 introduces a statutory requirement for all local authorities, excluding NHS bodies, to establish an audit committee with at least one independent member. Members will be aware that audit committees are the cornerstone of good governance and financial management in local government. They provide independent oversight of financial controls, risk management and internal audits, reinforcing transparency and accountability in the use of public funds.

Although many councils have already adopted audit committees as best practice, and combined authorities are required by statute to do so, it is time to standardise this requirement across the board. Consistency in governance structures is essential to ensuring that all local bodies are held to the same high standards of scrutiny and accountability.

In addition, the clause mandates that at least one member of the audit committee must be independent. Independent members bring impartiality, technical expertise and continuity, ensuring that scrutiny is robust and well informed. Where elected members may lack specialist knowledge in audit or finance, independent members can provide the professional insight needed to effectively challenge financial reports.

Mandating audit committees is a key pillar of our local audit reform programme. It is about getting the basics right. Good governance and financial management start at the heart of local authorities. The clause is a practical, proportionate and necessary measure to strengthen local accountability and ensure that every authority is equipped to manage public money responsibly, and I commend it to the Committee.

[David Simmonds]

I have a brief question for the Minister. One challenge is that most local authorities will have an arrangement, although it is not always called the audit committee; sometimes it is the finance scrutiny committee or the overview committee—there are lots of different arrangements. Could the Minister set out briefly what specific requirements, if any, she intends to impose on local authorities about who can be a member of an audit committee and what its composition is? Will it sit within the overall political balance structure that exists in all local authorities? I ask that just so that we understand where it will fit within the new arrangements.

[Miatta Fahnbulleh]

We will issue guidance when the Bill gains Royal Assent. The broad principle, which is applied across the piece with all our reforms, is that where there is good practice, we look to build on that. However, we will set out principles that we want to see standardised across the piece, to ensure that we have mechanisms that are fit for purpose and effective. To take the example of the independent member, we think that having that expertise massively helps, whatever function it is. However, where there are existing arrangements in place, our intent is to transition those to something that adheres to a set of principles that we will set out in guidance.

[The Chair]

I call Vikki Slade to speak to new clause 45.

[David Simmonds]

The only element where I have any disagreement with the hon. Member for Mid Dorset and North Poole is over whether the legislation needs to be implemented for local public accounts committees to happen. There have been a number of measures in this regard, and I think of the Localism Act 2011, where there was a great deal of debate about the role of the local armchair auditor and the requirement for local authorities to publish all expenditure over £500—itemised—so that people can see what is being spent day to day, as a means of bringing about transparency.

In this debate about audit committees, we have already covered the fact that there are different local arrangements. Some have everything dealt with by a single, financially focused scrutiny and overview committee, while others do it as part of a wider context or in the context of individual service areas. So there are different approaches, and it is important that that local discretion continues to exist.

I am not convinced that it is necessary to have further legislation, but it is right that we bring the matter to public attention. One weakness of the Westminster-focused Public Accounts Committee is that it does not always grasp local nuance. Home-to-school transport in rural Lincolnshire or North Yorkshire is a completely different challenge from that in Greater London, where all local authorities are, effectively, levied so that public transport in the capital is free for children going to school. Such things are difficult to capture. When we hear that North Yorkshire spends £51 million over a couple of years taking kids to school, that sounds like an extraordinarily high level of expenditure, but it is driven entirely by local circumstances; it is not the result of inefficiency or negligence on the part of decision makers. The point is well made that we have to have that really clear grasp in decision making that comes from people understanding and knowing their local place.

[Miatta Fahnbulleh]

I thank the hon. Member for Mid Dorset and North Poole for tabling new clause 45, and I have a lot of sympathy with what it tries to do. She rightly quoted the English devolution White Paper, in which we committed to explore local public accounts committee models. We consulted on the initial proposal for such a model in December last year, as part of our local audit reform strategy. The Government’s response on 9 April confirmed that they would explore how any model could draw on audit findings and interact with the Local Audit Office, once established. It is important to consider how that would fit with the reformed local audit landscape.

Mayoral strategic authorities are already expected to follow the principles and processes described in the English devolution accountability framework and scrutiny protocol. That includes the requirement to have overview and scrutiny committees and an audit committee. We absolutely recognise that there is scope for further strengthening the system of accountability and scrutiny for mayoral strategic authorities, and we are carrying out engagement with the sector on what that looks like. Although I accept the principle of new clause 45, the Government intend to do further work to ensure that whatever new regime or additional arrangements to strengthen the status quo we put in place, they work well alongside not only the huge reforms we are driving through in the audit system but what already exists on the ground, to ensure that we are not duplicating or creating confusion.

We need a little time to work that through and to think about the right set of reforms to put in place. However, the principle that we absolutely need to strengthen the status quo is one we completely accept and recognise the need for. I ask the hon. Member for Mid Dorset and North Poole to allow us the time to do the work properly, so that we can come up with a system that works alongside the reforms we are driving through. I therefore ask her not to press the new clause.

[Vikki Slade]

My resistance is because I wonder how long it is likely to be before the different stages of the Bill go through. What assurance do we have that the new clause does not disappear, in the same way as other things have disappeared on the journey so far? That puts me in a difficult position, because this issue is hugely important. Allowing the Government time and then seeing the new clause disappear would not give us the chance to have anything on the record. It is because enough organisations feel that they want to have it on the record that we have pushed it. I know that the Minister wants me not to push the new clause, but I need to for the benefit of all those organisations that have worked so hard on it and that want to see it go as far as it possibly can.

--- Later in debate ---

[Miatta Fahnbulleh]

Clause 67 paves the way for greater flexibility in how audit regimes are determined, moving away from a one-size-fits-all approach that relies solely on the size of a local authority. We recognise that local authorities vary not just in scale, but in complexity, risk profile and the services they deliver for local people. This proactive measure will enable the Local Audit Office, working closely with my Department and the sector, to design and implement audit frameworks that are proportionate, targeted and fit for purpose. Although any changes to the classification of local bodies within the category 2 regime would require secondary legislation, the clause removes any ambiguity about the future basis for audit regimes. It makes it clear that size alone should not determine audit requirements; risk and complexity should also be considered. That flexibility will lay the foundations to reduce unnecessary burdens on smaller or lower-risk councils, while maintaining robust oversight where it is most needed.

On clause 68, fixing the broken local audit system for authorities is the intention behind all the measures we are debating in this part of the Bill. However, the Bill also provides an important opportunity to address specific challenges within the smaller authorities audit system. In recent years, Salisbury city council and Lindsey Marsh drainage board have surpassed the outdated financial threshold for smaller authorities—a limit that remained unchanged for more than a decade, despite significant growth in local budgets and financial activity. Public Sector Audit Appointments Ltd has been unable to secure auditors for those bodies under the principal regime, leaving them without external assurance, and contributing to the wider audit backlog.

The principal regime demands significantly more complex financial reporting, which smaller authorities may not be well equipped to deliver. There is currently no transitional support for those moving into the regime, despite limited internal capacity and capability. Overall, those circumstances mean that auditors from the principal regime are reluctant to be appointed to those bodies, particularly given the wider capacity problems.

Clause 68 lays the groundwork for regulations that will allow those two bodies to be retrospectively treated as smaller authorities, enabling them to receive a limited assurance review. That is a more proportionate and practical solution than leaving them unaudited in the principal regime. It will help ensure that public resources are used more efficiently, both within local authorities and across the audit system, while maintaining robust yet appropriate external scrutiny.

[David Simmonds]

Broadly, the Opposition agree with the Government’s direction of travel, and this seems a logical thing to do. This kind of update is periodically required. However, it would be helpful if the Minister could set out, for the benefit of transparency in Committee, what the assurance process will be around risk. To reflect on where things have gone wrong, West Somerset district council—then the smallest local authority in England—was essentially not financially viable, but it was also the planning authority for the Hinkley Point nuclear power station, so it was absolutely critical that it could do its job for the needs of national infrastructure. Its budget was essentially broken by the loss of a business rates appeal in respect of Hinkley Point, which cost its £6.5 million out of its already very small budget.

Sometimes there are risks that sit beneath what will be classified as smaller authorities, especially given our earlier debate about how reorganisation is seeing asset transfers between districts and parish and town councils as a result of the need to manage opportunities and challenges. Could the Minister therefore set out who will be accountable? Will Ministers sign this off? What is the role of the delegated legislation Committee in making these decisions? What will be the role of the Local Audit Office in deciding how risks are managed? We need to be confident that what may appear to be a low-risk environment does not produce a very nasty surprise.

[Miatta Fahnbulleh]

It will be the Local Audit Office, working closely with my Department, but we will obviously engage with the sector while doing that. As the hon. Member will understand, there is always a judgment call in this, and it is about balancing a set of factors. Our job is to ensure that the Local Audit Office has the capabilities and skills to be able to make that judgment, working with our respective authorities. Ultimately, if we get it wrong, it is for Parliament to haul up the Secretary of State and hold them to account.

Question put and agreed to.

Clause 67 accordingly ordered to stand part of the Bill.

Clause 68 ordered to stand part of the Bill.

Clause 69

Amendment paving way for separation of LGPS accounts

Question proposed, That the clause stand part of the Bill.

[Miatta Fahnbulleh]

The hon. Member for Ruislip, Northwood and Pinner was dissatisfied by my pensions example. In part, I hope the clause speaks to some of the challenges that we are trying to get at.

Clause 69 is the first step in separating pension fund accounts from the accounts of the administering authorities. It removes the implied requirement in the current legislation for the accounts to be published together. We can then make regulations to introduce the change in practice. Decoupling the accounts is widely supported by auditors and local authorities and was recommended by the Levelling Up, Housing and Communities Committee in the last Parliament. The clause implements that recommendation. It is a relatively straightforward change that will deliver real practical benefits. Pension fund audits will no longer be held up by audit delays on administering authority accounts, allowing timely assurance to be provided to scheme members and admitted bodies.

Many other organisations rely on pension fund audits to confirm pension figures in their own accounts, and their audits have been disrupted and delayed by problems around administering authorities that rarely relate to the pension fund. As well causing problems for local bodies, the issue has caused problems in completing the audits of the whole of Government accounts and at least two Government Departments. Decoupling will shorten and simplify administering authorities’ accounts. It is more logical to publish pension fund accounts separately, as those funds are ringfenced for the benefit of scheme members and not available to the administering authority for other purposes.

[David Simmonds]

In many ways, the clause reinforces the concerns that I set out earlier. The Minister said that this was an area where no value was being added and that it was the Government’s intention to reduce expectations. In fact, the clause increases expectations: it requires the publication of a separate opinion on the pension fund’s accounts. As I set out earlier, the concern we all recognise is that, where there is a shortfall, the local authority is required to make up that shortfall and, where there is potentially a surplus, it may choose to reduce the pension contributions that it makes on a regular basis, as is already the case. We have seen examples across the private sector in the past when that has been significant in both negative and sometimes positive ways.

The assumptions made about the pension fund are critical to the setting of the council tax, which is a statutory process. This is not the only set of relevant accounts that must meet that same test. Local authorities have limited but varying degrees of control over the parking revenue account, housing revenue account and dedicated schools grant, but all are ringfenced for specific purposes and all can create significant financial liabilities that fall on the council tax payer in the event that something emerges within them that had not previously been considered.

Although I understand that the Minister thinks that separating out the requirement makes life easier for some parts of the Government, it can none the less create significant issues in the council tax fixing process. Will she set out the Government’s thinking about how those risks will be managed? In particular, how will the legal requirement to set an in-year balanced budget be met, and how does imposing a requirement for an additional and separate opinion, with a separate timetable, represent a reduction of the burden on the local authority?

[Miatta Fahnbulleh]

We are having the same debate over and over again. Ultimately—I have said this before and I will say it again—it will be for the accounting officer and the finance director to make the judgment about their accounts in year and over a multi-year period. We are not changing that. Given that pensions are administered by a single body, it is bizarre that the system at the moment involves individual local authorities having to audit their pension funds.

[David Simmonds]

I invite the Minister to reflect that she may have inadvertently misled the Committee. Each local authority has a statutory duty in respect of its own pension fund. There are some pooling arrangements and common standards, but if a local authority in one place has chosen to invest in something that has gone down, it will have a shortfall that will not be replicated in the neighbouring authority that has invested in something else. It is not the case that there is one single scheme. Each of the individual schemes will have an impact on the local authority that employs those members; they are not part of some amorphous national scheme.

[Miatta Fahnbulleh]

No, they are not, but the auditing requirement at the moment is burdensome, as local authorities and, under the previous Government, the Select Committee have said. I think the hon. Gentleman is just asking a probing question, which is fine, but no one is telling us that this measure is a bad idea. No one is telling us that decoupling is not helpful. It will mean that local government auditing does not hold back pension fund auditing and vice versa. Everyone agrees that this is a simple provision.

[David Simmonds]

rose—

[Miatta Fahnbulleh]

I will not give way; I am going to have to close down this debate. Critically, none of this detracts from the core function of the finance director, nor does it detract from the core function of local authority governance or local authority financial accountability. Everyone agrees that it will make the system stronger, so I struggle to understand the hon. Gentleman’s issue with it. No one says that the status quo is fit for purpose, and he himself has conceded that it is not. We are taking the existing system and providing stronger assurance and stronger audit to fix a system that is fundamentally broken, and I come back to the fact that it was broken under the Conservatives’ watch.

[The Chair]

The Minister has been very generous in taking interventions, and I have allowed them to be quite lengthy, if I can put it that way. She has made her position clear.

Question put, That the clause stand part of the Bill.

--- Later in debate ---

[The Chair]

With this it will be convenient to discuss the following:

Government amendment 241.

Schedule 30.

[Miatta Fahnbulleh]

Clause 70 introduces schedule 30, which makes minor and consequential amendments to Acts of Parliament—primarily, the Local Audit and Accountability Act 2014. Despite the amendments being minor and consequential, this schedule is an integral part of the wider reforms that we are driving through, by ensuring consistency across legislation.

As we have said, the Bill establishes the LAO as the body responsible for appointing auditors for all local authorities, as well as certain other local public bodies. However, health service bodies will continue with their existing arrangements to appoint their own auditors. Government amendment 241 corrects a minor drafting error and omission from the Bill as introduced, by ensuring that all previous references to relevant authorities in the provision now apply only to health service bodies.

I ask that these minor and consequential amendments stand part of the Bill.

Question put and agreed to.

Clause 70 accordingly ordered to stand part of the Bill.

Schedule 30

Local audit: minor and consequential amendments

Amendments made: 241, in schedule 30, page 311, line 10, at end insert—

“(b) for “body by a relevant authority” substitute “Office or body by a health service body”.”

This amendment makes a consequential amendment that was missing from the Bill as introduced.

Amendment 242, in schedule 30, page 316, line 28, at end insert—

“Offences of deception etc

32I False or misleading information

(1) It is an offence for a person knowingly or recklessly to provide information that is false, misleading or deceptive in a material way—

(a) for the purposes of, or in connection with, an application under the local audit provisions, or

(b) in purported compliance with any requirement having effect under those provisions.

(2) In subsection (1), “the local audit provisions” means—

(a) Parts 2A to 5A of this Act (including any regulations under any of those Parts),

(b) an agreement under section 6B(5), and

(c) registration rules within the meaning of paragraph 3 of Schedule 1C.

(3) A person who commits an offence under this section is liable—

(a) on summary conviction, to imprisonment for a term not exceeding the general limit in a magistrates’ court or a fine (or both);

(b) on conviction on indictment, to imprisonment for a term not exceeding 2 years or a fine (or both).

32J Wrongful holding out

(1) It is an offence for a person who is not a registered local audit provider to—

(a) describe themselves as a registered local audit provider, or

(b) hold themselves out so as to indicate, or be reasonably understood to indicate, that they are a registered local audit provider.

(2) It is an offence for a person who is not an external registration body to—

(a) describe themselves as an external registration body, or

(b) hold themselves out so as to indicate, or be reasonably understood to indicate, that they are an external registration body.

(3) It is an offence for a person who is not a recognised qualifying body to—

(a) describe themselves as a recognised qualifying body, or

(b) hold themselves out so as to indicate, or be reasonably understood to indicate, that they are a recognised qualifying body.

(4) A person who commits an offence under this section is liable on summary conviction to imprisonment for a term not exceeding the maximum term for summary offences or a fine (or both).

(5) In subsection (4), “the maximum term for summary offences” means—

(a) if the offence is committed before the time when section 281(5) of the Criminal Justice Act 2003 comes into force, six months;

(b) if the offence is committed after that time, 51 weeks.”—(Miatta Fahnbulleh.)

This amendment creates offences, similar to those currently provided in the Companies Act, about misleading conduct in the context of the new local audit regime.

Schedule 30, as amended, agreed to.

Clause 71

Rent reviews and “put options”: prohibited terms

[Miatta Fahnbulleh]

I beg to move amendment 375, in clause 71, page 72, leave out lines 22 to 25 and insert—

“54A Rent reviews and arrangements for new tenancies

(1) Schedule 7A makes provision about rent reviews.

(2) Schedule 7B makes provision about terms relating to rent in arrangements which require a new tenancy to be granted or taken.”

This is consequential on the amendments of Schedule 31 in my name.

[The Chair]

With this it will be convenient to discuss the following:

Clause stand part.

Government amendments 376 to 381.

Government amendments 384 to 386.

Government amendment 391.

Amendment 303, in clause 78, page 78, line 7, at end insert—

“(5A) Section 71 will not come into force until the Secretary of State has—

(a) completed a consultation about the impact of section 71 on businesses, and

(b) laid a report summarising the consultation before both Houses of Parliament.”

This amendment would prevent section 71 from coming into force until a consultation on its impact on businesses has been completed and a report summarising the consultation has been laid before both Houses of Parliament.

[Miatta Fahnbulleh]

Clause 71 and schedule 31 will ban the use of upward-only rent review clauses in commercial leases in England and Wales. Those clauses put commercial tenants at a disadvantage by keeping rents artificially high even when the market declines. In no other credible market would one party be contractually bound to accept only upward price changes, with no recourse to changing conditions. We saw in covid how damaging that can be. We have also heard at first hand from stakeholders and business representatives—including UKHospitality, the Federation of Small Businesses and the British Independent Retailers Association—about the adverse effects that upward-only rent reviews have.

An efficient and dynamic market for leasing commercial property is vital for growth and for the vitality of our high streets. Upward-only rent reviews create an imbalance of supply and demand, contributing to the blight of empty properties that we have seen, ranging from high street shops to empty office floors. The UK is an outlier in continuing to permit those clauses. This ban follows the lead of countries such as Ireland and Australia. We absolutely recognise that the ban creates some initial uncertainty for investors. However, landlords will still have access to a range of lease models, such as stepped rents and inflation-linked leases, that offer predictability and flexibility; and we have committed to consulting on whether to permit the use of rent “collars” via secondary legislation.

It is important to remember that our high streets are more than retail spaces; they are the social and economic heart of our communities. The Government have set out ambitious steps to support high streets through our Pride in Place strategy. This measure is part of that. If we want new businesses to take a chance on a tenancy and if we want resilient high streets, it is essential that the leasehold market works efficiently. I urge that this clause stand part of the Bill.

Government amendment 375 is a technical amendment updating clause 71 in line with the amendments in schedule 31 tabled in my name. The amendment ensures that readers can continue to navigate the scope and effect of those provisions as intended when drafted.

I now turn to Government amendments 376 to 381, 384 to 386 and 391. These amendments work together to clarify the scope of the ban on upward-only rent reviews, ensuring that tenants are provided with protection when it is right that they receive it. Government amendment 376 brings forward a large proportion of these changes. In particular, the new part 1 sets out a new definition of “business tenancy”. It expands the scope of the ban so that a tenant who is still bound by the lease does not lose the protection of the ban simply because they have vacated the premises, have not yet taken occupation, do not intend to take occupation, or have sub-let the whole premises. It is right that tenants receive the protection of the ban in these circumstances. Without the amendment, it is likely that they would be deterred from sub-letting, which might in turn damage their ability to trade successfully.

Part 2 expands the tenant’s ability to trigger the rent review, so that it applies regardless of whether the lease contains prohibited terms. It also applies if the lease was granted in a compliant manner but was later varied to include non-compliant terms. Finally, paragraph 5A of part 3 provides for the ban to apply in circumstances where a lease is granted in a compliant manner but later varied to include non-compliant terms.

Finally, I turn to Government amendment 391 and to amendment 303. To further ensure that tenants are provided with protection when it is right they receive it, amendment 391 replicates new paragraph 1 of new schedule 7A, contained in amendment 376, in schedule 7B. Cumulatively, the amendments will ensure that the enacted ban is robust, clear and applies in the right circumstances.

Amendment 303 would require the Government to undertake a consultation on the impact of the ban on upward-only rent reviews before the provision comes into force. But that amendment is not mine, so I will speak to it later.

[Mike Reader (Northampton South) (Lab)]

It is a pleasure to speak about this issue. I thank the Minister, who has been gracious in giving me a lot of time to discuss upward-only rent reviews. I hope to use a couple of minutes to clarify a couple of points in the Minister’s statement that I do not think completely reflect the evidence that we have heard and, perhaps, the current position of the Bill. I say that in a constructive way, recognising that there is further opportunity to improve the Bill and make sure it delivers what we promised in the White Paper. As the Minister herself says, we have to protect high streets and small businesses, which can often be caught in really challenging upward-only rent reviews. She is completely right that the impact was seen particularly during the covid era.

I will talk about international evidence first and then come back to how we can improve; I recognise that the amendments start to go that way. The Minister mentioned Ireland in particular, which is often cited as one of the great examples of action on upward-only rent reviews; industry there was concerned that sectors would collapse, but actually there was a relatively minimal impact. I am sure that the Minister’s civil servants will argue that that is a great example of why the worries of the Royal Institution of Chartered Surveyors, the British Property Federation, the UK Warehousing Association and agents such as Colliers, which have all written to me in the past week or two to share their concerns, are perhaps unfounded.

The scheme in Ireland was specifically brought in with collars and a floor, which meant that there was protection—that was at the point of introduction rather than through secondary legislation, which I think is important. It was introduced in a very different market with very different interest rates, corporation tax and other factors that drive corporate rents. The challenge with the way the legislation is written at the moment is that it has unintended—

English Devolution and Community Empowerment Bill (Tenth sitting)

Miatta Fahnbulleh Excerpts

Committee stage
Thursday 23rd October 2025 Public Bill Committees

[Lewis Cocking (Broxbourne) (Con)]

I rise in support of amendment 5, spoken to by the hon. Member for Stratford-on-Avon. This is where the Government should have started. The amendment seeks to put place at the very heart of local government reorganisation, which the Government have missed. In coming up with the arbitrary target of half a million people or thereabouts, they have not thought about place and how communities connect with shared identities.

I have spoken in Committee before about Hertfordshire. Hertfordshire has a number of significant towns, all of relatively the same size and population, but there is very little interconnectivity between the towns, particularly on rail and road. Not many people move between those towns, and I fear the consequences of an arbitrary target of around half a million. I appreciate what the Minister has said about the flexibility of that target, but even setting a target of 300,000 people is not looking at what best serves communities; it is sitting in Whitehall, coming up with a figure, and saying, “This is what we want to push top-down throughout the country. This is what we need to do,” rather than saying to places, “We want to reorganise you. Please come up with appropriate examples of how you might best do that within your communities.” That is what the amendment speaks to.

We really need to think about place. If we want these new councils to be successful, they must have buy-in from local communities. Local communities must have a shared sense of identity and a shared sense of vision. We cannot lump places together that have hardly any connectivity—places that people do not travel between—because we would be setting up those councils to fail, and to have competing priorities for the towns they want and do not want to invest in. The amendment is logical, and it is disappointing that the Government did not start off in this place and give more flexibility to the top-down reorganisation they are forcing on large parts of England. If the hon. Member for Stratford-on-Avon wishes to push the amendment to a vote, the official Opposition shall support it.

[The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Miatta Fahnbulleh)]

It is a privilege to serve under your chairpersonship, Ms Vaz. I have a lot of sympathy for the sentiment behind the amendment, but we are already building in provisions to reflect the issues that the hon. Member for Stratford-on-Avon has raised.

The Local Government and Public Involvement in Health Act 2007 already provides that a direction for local government reorganisation can be issued only if the Secretary of State deems the proposal to be in the interests of effective and convenient local government. Having regard, therefore, to size, geography, public services and local identity is fundamentally embedded in the decision-making process. That is demonstrated by the statutory guidance and criteria shared with areas currently preparing for reorganisation. The hon. Lady is right to highlight those factors that matter for the sense of place, and therefore the boundaries of councils, and we think that the statutory guidance and safeguards fundamentally lock them into the process that we are going into.

On whether this process is top down or bottom up, let us look at it: we have invited places to go through a process of reform, and those places are now having conversations among themselves to come up with proposals. Those are not Government proposals; they are proposals from local areas. We are already allowing conversations to be had about what makes sense for those areas and how we take into account the specifics of identity and other issues in those proposals. Whatever proposal is chosen must be consulted on before it is implemented, which, again, is an opportunity for local people to have a conversation, and to have some say and voice in the process.

Although I appreciate the intent behind the amendment, we have legal provisions and, critically, have set out a process that fundamentally addresses the issues that the hon. Lady has raised. I therefore ask her to withdraw the amendment.

[Manuela Perteghella]

I would like to press the amendment to a vote, because it is important to mandate that the Secretary of State consider these criteria. They will have many proposals from the same area, so these criteria would give guidance on how we can keep the cohesion of communities that hon. Members have discussed before.

Question put, That the amendment be made.

--- Later in debate ---

[Miatta Fahnbulleh]

Local government reorganisation is already possible through existing legislation and does not require a referendum. In the last 20 years, we have precedents of local government reorganisation, and a referendum has never been part of that. Adding a referendum on to the process is disproportionate and will slow it down. We need to go through this process for all the reasons that we have talked about in the debate.

To be clear, however, before any local government reorganisation proposal is implemented, all affected authorities must be consulted. Residents can submit their views during those consultations, and authorities will engage with their residents through the proposal development process that is going on at the moment.

Furthermore, all implementation orders for new unitary authorities must pass through Parliament’s affirmative resolution procedure. That allows elected Members to have their say on proposals based on the feedback that they are getting from their constituents. All these provisions are proportionate, right and consistent with what we have done in the past. Therefore, this additional measure is disproportionate and unnecessary, and I hope that the hon. Member for Hamble Valley will withdraw the amendment.

[Paul Holmes]

I will respond briefly. The Minister is entitled to say that she does not want to accept the amendment, but I ask her to look not at the logistical and legal arguments of the legislation, but at what is right and what is wrong in the practice of implementing local government reorganisation. As I say, we are all democrats—we are all elected to serve here—so she should not fear asking the people whether they endorse the local government reform that she is currently implementing without the consent of the public or many local authority leaders. We will not press these amendments to a vote, but notwithstanding what I have said before about other amendments tabled by my hon. Friend the Member for Keighley and Ilkley, we will table amendments of this nature on Report. I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Question proposed, That the schedule be the Twenty Fourth schedule to the Bill.

[The Chair]

With this it will be convenient to consider:

Clause 56 stand part.

New clause 24—Impact of local government reorganisation—

“(1) Whenever the Secretary of State has made any order or regulations in pursuance of provision inserted or amended by Schedule 1 of this Act, the Secretary of State must, at the end of a period of two years beginning on the day of the making of the order or regulations, issue a report.

(2) Each report required by subsection (1) must include, but shall not be limited to, details of the following, as far as they arise from any reorganisation resulting from the order or regulations—

(a) the cost of the reorganisation;

(b) the impact on service delivery, including the quality of social care provision and quality of SEND provision;

(c) the impact on development, including the number of homes delivered against local targets;

(d) the performance of individual commissioners;

(e) the sustainability of the finances of the newly created authority;

(f) the extent to which Council Tax has increased and the extent to which any mayoral precept has increased; and

(g) satisfaction of local residents with the standard of services provided by the authority established or changed by the reorganisation.”—(David Simmonds.)

[Miatta Fahnbulleh]

Clause 55 introduces schedule 24 and I have already spoken in detail about it.

On clause 56, we must avoid a situation in which a predecessor council—one soon to be replaced by a new unitary council—could delay devolution by withholding consent to the establishment of a new strategic authority. Where a new unitary council is keen to progress devolution during the transitional period, the requirement for the predecessor councils to give consent will be disapplied.

The Bill will ensure that consent is given by the new unitaries, which will form the constituent councils of the new strategic authority. Consent should come only from those with a stake in the future strategic authority. This clause ensures access to devolved powers as quickly as possible, where the elected representatives of all shadow unitary authorities are in agreement. I therefore commend the clause to the Committee.

[Paul Holmes]

Well, there we have it: the mask has slipped—

[Miatta Fahnbulleh]

It hasn’t!

[Paul Holmes]

The Minister says it has not, but I will convince her that it has. All morning we on the Opposition side have been talking about the fact that the Government are forcing this to happen without consent. The mask has slipped because this clause disapplies the ability of a currently existing council to refuse consent for the creation of new authorities.

[Miatta Fahnbulleh]

On a point of clarification, it is consent to the creation of a new strategic authority, so this is the tier above.

[Paul Holmes]

Fine. I thank the Minister for her intervention, but the point I am about to make still applies: the people who currently serve have a stake. The people who send those people to serve have a stake. The way in which this clause is being put forward shows again that the Government are forcing change on a number of organisations and predecessor authorities that currently exist and serve their local people—so the mask has slipped. We have been saying all day that this is a proposal and local government reform that is not in the manifesto and is being forced on local authority leaders who do not want it.

The Minister said last week that she had had lots of enthusiastic conversations about people who want to go forward with devolution. I put it to her again that many local authority members do not, and the only reason they are going forward with it is because she is going to force them to do it anyway. Now that those local authorities might want to refuse to give consent to the creation of strategic authorities—something that should be within their gift anyway—she is disapplying their right to say that they do not want them. The Government are invoking a top-down reorganisation and not listening to the views of local leaders or of the people they are elected to serve.

I say to the Minister once again on this clause: throughout the Bill, she has advocated for it being a bottom-up reorganisation, but this is the sledgehammer of central Government refusing local people the voice that they should have. The mask has slipped and the Minister has just admitted that it is a centrally imposed thing, which many people do not want. The clause should be removed from the legislation, and we will oppose it.

[Miatta Fahnbulleh]

It is important to disaggregate two processes, although I appreciate the challenge because we are doing them concurrently: there is a local government reorganisation process and a devolution process. To clarify, I am the Minister for Devolution, so when I refer to the enthusiasm in my conversations with local government leaders, that was on devolution, where it absolutely is felt. It is right for devolution that the authorities that will form the constituent authorities and ultimately have a stake in the future direction of the strategic authority are the driving force behind it.

It would be wrong if one single authority that was about to be shifted in the context of local government reorganisation were able to scupper, delay or veto the creation of that strategic authority when there is consent and support for it. This is completely rational if we allow that there are two processes. This part of the Bill is about the creation of strategic authorities and about who ultimately has the ability to drive them and consent to them. It should be those constituent authorities that will form part of the strategic authority to come.

[Paul Holmes]

Forgive me, Ms Vaz; as the Committee can see, I got rather carried away and I forgot to speak to new clause 24 in the name of my hon. Friend the Member for Ruislip, Northwood and Pinner. Briefly, the new clause should be included in the legislation, because all in the House believe in transparency. In the process, subsection (1) of the new clause would require an impact assessment of the local government reorganisation to be published. Each report would be required to include things such as the cost of a reorganisation, something that the Minister has advocated will deliver more efficient services and will not be onerous.

A report will allow us to see not only whether that is true post the creation of the authority, but the impact on service delivery and development, as well as the number of homes delivered—we have seen mayors who are not able to deliver the number of homes required of them—and an assessment of the performance of individual commissioners. It would provide a clear link for the people who live in those areas where the reorganisation is to go ahead. We believe that would not be onerous on the new authorities and that new clause 24 would bring the right balance between transparency and accountability, so we ask the Minister to accept it.

[Miatta Fahnbulleh]

I am sympathetic to new clause 24, but there is no need for the Secretary of State to publish a report after the implementation of every single reorganisation proposal. Ultimately, local authorities are responsible for their own financial performance and the delivery of their local services, and they are accountable to their local electorate. As many currently do, local authorities may report on their performance each year to their electorate. That is the appropriate place for the responsibility to lie.

The Government already have mechanisms to monitor the performance of local authorities and to ensure that our councils are fit, legal and decent. As part of the process of reforming local government, we recently launched our local government outcomes framework, providing outcome-based accountability for councils. I think that there are enough mechanisms, including those that are baked into what councils need to do for their local electorate and our overall performance review and assessment process. In essence, those will deliver the intent of new clause 24.

[Paul Holmes]

I genuinely hate to detain the Committee—I do not just say that out of politeness—but I believe that we should press new clause 24 to a Division, when we come to that point.

--- Later in debate ---

Question proposed, That the clause stand part of the Bill.

[Miatta Fahnbulleh]

Clause 57 and schedule 25 will simplify and bring consistency to local authority governance arrangements. By abolishing the committee system, we will ensure that all councils operate an executive form of governance, providing clearer, more easily understood governance structures at a local level and more efficient decision making.

We will accept the continuation of the 13 legacy directly elected council mayors, while introducing measures to prevent the creation of any new ones. This will ensure a more consistent approach to governance and avoid the potential confusion caused by the establishment of new regional mayors for strategic authorities and mayors for councils. It is at this strategic level that we think the single focal point of leadership for the area and direct electoral accountability and mandate works best, and we believe this provision delivers the right powers in the right places.

[Siân Berry (Brighton Pavilion) (Green)]

It is a pleasure to see you in the Chair this afternoon, Ms Vaz.

I rise to speak against clause 57; I believe it is extreme control freakery and overreach from the Government and in no way essential to this Bill. Why impose a leader and cabinet model on all councils, even against their will, along with all these other changes? The Government can see only the benefits and, like a poorly run council, they ignore the critical risks.

Good governance benefits in many places from a deeply involved voice for principled opposition councillors to vote on policy, check the numbers, put forward good ideas and raise mission-critical questions about issues such as fire safety, service quality or big projects and contracts, even when that is uncomfortable for the administration. Places need the right to choose, democratically, a new model of governance when appropriate—especially when councils face problems and need a fresh start.

Changes of this sort are sometimes made after a crisis or a period of problems; I will talk in the next debate about changes made by referendums. I hear the claims of stagnation and indecision often levelled at committee systems, but I point out that under the current system people who see that happening have the right to change the model and try something else. A new administration can vote to switch to a leader and cabinet for a period, or to a mayor, if it wishes, or the people can make the change themselves by calling a referendum. The Government want to take away all that choice. That is very wrong and this clause is overreaching in the extreme.

Given the exceptions being made for mayors in the mandate for leader and cabinet, it seems that the committee system is the one most under attack from the Government in this Bill, so I want to provide some words and examples from cross-party local councillors about its benefits for their areas. In July 2025, Sheffield city council voted unanimously for a motion defending its democratically chosen model, stating that

“the benefits of the Committee System demonstrated in Sheffield include: greater collaboration across political groups in policy formulation and in decision making; overcoming party political tribalism and focussing on areas of agreement, not antagonism; improving the culture of the Council, with officers and Councillors focusing on what is best for the city; all Councillors being involved in the decision-making of the Council, and greater accountability to the electorate; and improved outcomes for the residents of Sheffield”.

That is a cross-party view.

--- Later in debate ---

[Miatta Fahnbulleh]

I understand hon. Members’ sentiments, but 80% of councils currently operate a leader and cabinet model. My view is that that executive model allows for greater accountability and better decision making, and that is why we are proposing these changes.

My hon. Friends the Members for North West Cambridgeshire and for Banbury eloquently set out the experience of that model and said that it leads to quicker, better decision making and efficiency. It is about spending less time in committees and meetings and more time delivering. The hon. Member for Brighton Pavilion talked about things that make that consensual, collaborative way of governing work, but critically they are more to do with the culture in the council and the quality of the councillors, as my hon. Friends the Members for North West Cambridgeshire and for Banbury pointed out.

We think the model used by the majority of councils is working. Delivering for residents is at the heart of the entire Bill, and we think that that model can lead to much stronger governance and decision making, which will deliver for residents. That is why we are keen for this provision to remain in the Bill.

On the point about consistency, there is always a place for referendums. As the hon. Member for Hamble Valley said, the last Labour Government were a great fan of them and introduced provisions to lock them in, but there was always a balance around proportionality. My issue is not about the logic of having a referendum or not; there is a judgment to be made about what is proportionate, given what we are trying to do and the urgency of the reform agenda. Local government is under pressure, and there is a need to deliver services when resources are really tight. Our constituents rightly demand good-performing public services, and that is what is driving us. We think we have the balance right in the provisions and safeguards in the Bill, which is why I ask the hon. Member for Brighton Pavilion to support the clause.

Question put, That the clause stand part of the Bill.

--- Later in debate ---

[Manuela Perteghella]

I want to support the hon. Lady. The national Government should not force structures of local governance on local councils. We saw written evidence from Councillor Martin Smith, the leader of the Liberal Democrats in Sheffield city council, showing how the committee system has made the governance of the city council more transparent. Abolishing the committee system in Sheffield and Bristol, and in other areas where local people wanted a change from the leader and cabinet system, would go against the will of the people in those areas. For that reason, if the hon. Member for Brighton Pavilion were to press amendments 326 and 327 to a vote, I would support them.

[Miatta Fahnbulleh]

I thank the hon. Member for Brighton Pavilion for talking us through some of the specifics, particularly in the context of Sheffield. My hon. Friends the Members for Sheffield Central (Abtisam Mohamed) and for Sheffield Hallam (Olivia Blake) have been very effective in explaining the specifics of Sheffield to the Government, including the history of how the council got there and how the democratic process has played out. We are very mindful of that, and we will reflect on that and on the question of legacy.

[Kevin McKenna (Sittingbourne and Sheppey) (Lab)]

I would just like to give a counter. We have heard some very interesting evidence, but my own local authority has the misfortune to operate under the committee system, which was largely brought about in a deal that created a rainbow coalition with the Greens and some other local parties. Honestly, it is a dismal failure. Contrary to the evidence that has been presented, it has made the council more siloed, and fewer councillors feel that they can engage well with the council. Frankly, it is the whim of every individual committee chair as to how they operate, often constraining meetings to an extremely short duration. That has reduced the amount of scrutiny and gummed up the business of the council. I would like to present that as evidence from someone who actually lives within a council that has a committee system.

[Miatta Fahnbulleh]

We made this proposal because we fundamentally believe that the cabinet and leader system provides more effective governance. There is a question about legacy and what the transition will look like, and we have heard representations on that from my hon. Friends the Members for Sheffield Central and for Sheffield Hallam. We will reflect on how to get the balance right, because in the end we want stronger, better governance for residents and constituents across the country, and obviously we have to ensure that the transition is done in a way that minimises disruption and has local support. We will reflect carefully on how to get that balance right.

--- Later in debate ---

[Siân Berry]

I beg to move amendment 336, in schedule 25, page 253, line 25, at end insert—

“Duty to introduce code of conduct, inductions and ongoing training (England)

4A (1) Every local authority must adopt and enforce a code of conduct for elected members that—

(a) includes provisions addressing harassment, discrimination and online abuse; and

(b) provides for independent investigation of alleged breaches, overseen by the monitoring officer.

(2) Every local authority must provide a structured induction programme for all newly elected members, which must include—

(a) professional standards and responsibilities;

(b) equality and diversity duties; and

(c) family-friendly and inclusive working practices.

(3) It is a duty for local authorities to provide further such training every two years following the election of new members to the authority.

(4) Local authorities must also make provision for continuing professional development for elected members.

4B (1) A monitoring officer’s functions shall include responsibility for—

(a) investigating breaches of the code of conduct in accordance with paragraph 4A of this schedule;

(b) promoting councillor welfare and wellbeing;

(c) ensuring compliance with equalities duties; and

(d) maintaining transparent procedures for the handling of complaints.

(2) Every local authority must publish an annual report on complaints received by the monitoring officer, including—

(a) the number of complaints received, and

(b) outcomes of those complaints.”

This amendment ensures that all local authorities are required to maintain clear and enforceable codes of conduct for councillors, tackling harassment, discrimination and online abuse and mandates induction and continuous training on equalities and conduct. It embeds and extends independent oversight by monitoring officers.

The amendment deals with a separate matter of inclusive practices. It is aimed at improving more diverse access to elected office and arises from work I have been doing with the organisation Elect Her, which aims to motivate, support and equip women in all their diversity to stand for political office in Britain, and to nurture an ecosystem of organisations reshaping the political system so that all women can thrive once elected. Its research found that weak codes of conduct, poor induction for new councillors and lack of financial recognition all deter women from entering and continuing in office. The amendment would help deal with that.

Elect Her’s report on Scotland by demonstrates how inclusion can improve when councils adopt stronger codes of conduct, structured induction and clear reporting mechanisms. The amendment would introduce a duty to have a code of conduct for elected members, which would include provisions against harassment, discrimination and online abuse. It would provide for independent investigation of alleged breaches overseen by the monitoring officer, and a structured induction programme for newly elected members.

Setting the stage for behaviour is crucial, particularly when new councillors are elected, before things start to go wrong. The programme would include important information and training on professional standards, equality and diversity duties, and family-friendly and inclusive working practices. It would also mandate that the training should be refreshed, particularly following the election of new members. Continued professional development is also covered by the amendment. It asks monitoring officers to investigate breaches of the code of conduct and gives them duties to promote councillor welfare and wellbeing, equalities duties and transparent procedures for complaints. It also asks for an annual report on complaints.

The provisions are sensible suggestions that I hope the Government will take up. Although I will not press the amendment to a vote, it speaks to the fact that while we have discussed potential problems with workload that councillors in these new authorities may have, which are also inclusion issues in some cases, the Bill could more directly address some of the issues that we know affect people’s ability to carry on in the job. We have received disturbing evidence from Elect Her on the extent to which councillors report abuse. We know that women and minorities are disproportionately likely to experience abuse, and we have a duty to do what we can in the Bill to make being a local councillor a more inclusive job. My amendment addresses some of the systemic barriers that might stand in the way of local democracy truly representing all of our communities. I hope the Government will look again at the options.

[Miatta Fahnbulleh]

The Government fully understand that greater devolution relies on local authority members embodying the highest standards of conduct, so we absolutely agree with the spirit of the amendment. We have consulted on proposals for comprehensive reform of the standards and conduct framework for local authorities in England. Our response to the consultation will be published shortly and will set out in detail the scale of our ambition for a whole-system reform of the standards and conduct framework.

Our ambitions go significantly further than the amendment in terms of introducing a clearer and consistently applied framework for standards and conduct, and ensuring misconduct is dealt with swiftly and fairly in every type and tier of local government. We will bring forward legislation as soon as parliamentary time allows, so I ask the hon. Member for Brighton Pavilion to withdraw the amendment.

[Siân Berry]

I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

--- Later in debate ---

[Paul Holmes]

As you would expect, Ms Vaz, I entirely endorse my hon. Friend’s words. I suspect that if we took the motivation of this part of the Bill and told Labour Members that they could not put out any of their “Labour in touch” communications, or whatever they call them, they would be shouting from the barriers that they could not communicate with residents who are digitally challenged or not engaged in digital communications.

It is important that there are varied and diverse ways for our punters, if I can call them that, and our voters to find information and to engage in the process. I do not understand why the Minister is proposing to actively harm our local independent newspaper sector in a Bill that has admirable intentions and will radically change the face of local government, in some cases for the better, but in the majority of cases for the worse when it comes to accountability. We all see that press is becoming much more large scale and a lot less local through TV and media restructuring. I do not understand why the Government would put in such a retrograde step for independent local newspapers.

We support the amendments tabled by the hon. Member for Stratford-on-Avon. When the Committee comes to new clause 55, we will push it to a vote. I am not sure whether we are voting on the consequential amendments to new clause 55 today, but if we are, we will push those to a vote too.

[Miatta Fahnbulleh]

I agree completely that we need varied forms of communication to engage with our residents and that local media play a vital role. We will continue to do everything we can to protect that part of our ecosystem, because it is fundamental to our democracy.

Let me be clear about what we are doing in the clause: we are shifting the focus from prescribing how information is published to ensuring that the public are effectively informed. The Bill will give councils the flexibility to publish notices of any governance change in whatever manner they consider is most appropriate for the local circumstances, because they know their residents better than we do.

In some respects, it is bizarre that we were ever prescribing exactly what councils should do, so now we are saying it is up to councils. Ultimately, it is in their interest to reach the very residents we care about, because they are their voters and residents too. To be clear: nothing in this provision stops a council from including local print newspapers, which will continue to play an important role. We are simply enabling councillors in the 21st century to think about the range of media that makes sense for the constituents, voters and residents they need to reach.

It is important to put this debate into perspective. As we have said, 80% of councils already have the leader and cabinet model. We are talking about the 20% of councils that do not that would go through some sort of process. This provision is talking just about that small proportion of councils. It is right that we give maximum flexibility to councils to make the right choice about how they communicate.

In the context of a pretty small, practical measure relating to the specifics of the decision to shift away from the committee system, the official Opposition’s proposal on consultation is completely disproportionate and overblown. We absolutely recognise the importance of local media. We recognised the need for an overall review, which is why the Department for Culture, Media and Sport is currently undertaking a review of local media and putting in place a local media strategy—to address the very issues that the hon. Members have raised. We agree that we need to do the job of making sure local media can survive and thrive in the 21st century. I hope that the amendment is not pressed.

Question put, That the amendment be made.

--- Later in debate ---

[The Chair]

I call the Minister to open the debate.

[Miatta Fahnbulleh]

As we have debated amendments to the schedule, we can deal with it formally.

Question put and agreed to.

Schedule 25 accordingly agreed to.

[The Chair]

I realise that Ms Perteghella wished to speak to new clause 4, which was grouped with schedule 25, which we have agreed to. I will suspend the Committee briefly to determine the correct way to proceed.

--- Later in debate ---

[Manuela Perteghella]

I will address these amendments as two separate groups. Amendments 14 and 15 are simple and, in combination, would ensure that the definition of a “neighbourhood area”, which is important in this clause, is decided by the effective local authority and not by the Secretary of State. In these amendments we are again trying to devolve powers to grassroots governance. For the sake of clarity, we drafted amendments 14 and 15 to grant that neighbourhood areas are defined in accordance with local perspectives, rather than with the view from Westminster.

Amendment 13 complements those changes. Within the locally agreed and defined neighbourhood area, the authority would be required to make appropriate arrangements to secure effective governance. This amendment specifies that those arrangements must not alter any function performed by a town or parish council, or result in the abolition of a town or parish council. As I have explained previously, it is really important to keep town and parish councils. The amendment would give important protections for our smallest and first tier of local governance. The Committee has already debated how town and parish councils perform a crucial role in effective governance and in providing services. They are to adopt many more services as well. We talked about them being consulted, and this amendment is about making sure that they do not get abolished in the definition of a “neighbourhood area” and “neighbourhood governance”.

The Liberal Democrats continue to be surprised by the lack of protection for, or even reference to, town and parish councils in the Bill. This is an excellent opportunity for the Minister to protect those tiers of governance, and put on record her support for hyper-local government, as we consider devolution more broadly.

Amendment 61 has a different purpose. Throughout the Committee debate, hon. Members have spoken about the need for authorities to be able to access support of all kinds, including financial and advisory support, while delivering local planning functions. The amendment is relevant in the light of the Government’s decision earlier this year to remove funding for localism and neighbourhood planning, which was an excellent initiative that put planning and growth plans in the hands of local people. That initiative saw more than 1,000 neighbourhood plans approved at referendum, and was a key way of securing other local involvement in planning proposals and decisions, giving the local community the power to shape their own future in development. Neighbourhood plans were also very much linked to local housing needs, such as locally how much social housing is needed in a village or town, so they were really important.

Removing funding from neighbourhood planning seems to run contrary to this Government’s aims of devolution and community-engaged house building. I urge the Minister to reinstate some form of funding. I would like to hear reassurances from her, especially in relation to the protection of town and parish council governance, which I set out in amendment 13.

[Miatta Fahnbulleh]

The key thing to say in response to this group of amendment is that provisions in the Bill are not about central Government imposing a model of neighbourhood governance without the flexibility or consideration of local places and their requirements; they are about setting a standard for smarter, more responsive decision making for our communities and, critically, ensuring that there are no black spots or gaps across the country, so that every community has the ability to shape, and have a voice, say and power in the decisions that impact their neighbourhoods.

We are not designing the regulations in isolation; we are working closely with local government and the community sector—including the Local Government Association, the National Association of Local Councils and the We’re Right Here campaign—to make sure that the provisions in this part of the Bill reflect how we get effective good community governance.

On amendment 13, throughout the debates in this Committee I have said consistently that we absolutely recognise the important role that town and parish councils play in our democracy and our community life. There is no intention to abolish parish and town councils in the Bill. It is not about duplicating them—in fact, I have consistently said that where we are building neighbourhood governance, we should rightly build on the civic institutions that are there anyway, to ensure that we have both depth and proper coverage across the country. The regulation-making powers in the clause therefore cannot be used to make regulations that amend primary legislation, which protects town and parish councils already, and there is no intent to do that.

[Manuela Perteghella]

I thank the Minister for her reassurance, but would she put what she has said about the protection of town and parish councils in writing to us?

[Miatta Fahnbulleh]

I am happy to put that in writing, but I will state again that there is already primary legislation in place that protects town and parish councils and means they cannot be abolished. There is nothing in the clause that undermines that. I will absolutely put that in writing. Again, the intention of the clause is to recognise that town and parish councils exist in some parts of the country, but not others. We want every community across the country to have effective neighbourhood governance structures, so that people can have power, agency and a voice to shape their locality and their direct neighbourhood.

Finally, on amendment 61, again, I agree that we should protect the important functions of neighbourhood planning. That is why my Department has already committed to ensuring that local planning authorities continue to be appropriately funded for their neighbourhood planning functions, including for plan examinations and referendums. Funding for those costs is provided through a claims-based system. We will make an announcement on the claims for this financial year in due course. As I said, there is nothing in the clause that undermines effective neighbourhood planning; it is quite the contrary. We think there is an opportunity, as we strengthen neighbourhood governance structures across the country, for that to enhance and build on the work that has been done through neighbourhood planning. I ask that the hon. Member for Stratford-on-Avon withdraw the amendments.

[Manuela Perteghella]

In the light of the Minister’s assurances, I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

[Siân Berry]

I beg to move amendment 264, in clause 58, page 60, line 25, at end insert—

“(e) requiring that local engagement activities under paragraph (d) meet minimum standards to ensure meaningful community participation, including—

(i) the use of deliberative processes such as citizens’ panels, assemblies, or community conversations;

(ii) the active inclusion of communities most likely to be impacted by the policy measures, and communities underrepresented in policy making; and

(iii) reporting, and publication of resulting reports, on how community input has influenced local plans and decisions;

(f) providing existing local democratic bodies, including parish and town councils, with appropriate powers, funding and infrastructure to support and facilitate such participation.”

This amendment requires regulations on neighbourhood governance to set minimum standards for involvement, including deliberative processes, inclusion of underrepresented groups and transparency.

This is a really important amendment. It proposes a minimum standard for meaningful community involvement be added to this part of Bill on neighbourhood governance. It aims to put people at the heart of the new local decision-making structures by setting minimum standards so that community involvement is inclusive, uses deliberative methods and clearly shows how people’s views have shaped decisions. It would also give local councils the powers and funding that they need to make that happen effectively. The problem with the Bill as it stands is that “appropriate arrangements” is left undefined. That risks weak or inconsistent community participation. The amendment would ensure that the arrangements meet minimum standards and would make engagement consistent, inclusive and transparent.

The Bill’s success depends on whether it achieves what the Minister has been assuring us of throughout these proceedings: a shifting of democratic power. It needs to ensure that decisions are made with people rather than consulting them or imposing on them. I am sure we are all aware of the ladder of engagement, where final decisions are simply waved in front of people for consultation. That is the bare minimum and, in many ways, the worst form of engagement with the public. People will often look at a big proposal and respond in great detail, only to then see that nothing has changed. That really undermines trust. We need to make sure that people can see how their voices are shaping outcomes at a local level. This amendment would enable us to rebuild public trust through the Bill.

We need to ensure that we actively facilitate and enable community participation, and it is important that it is properly funded. Doing a consultation is a very separate thing to participation. We do know that people want participation. Demos polling from 2024 found that 63% of the public would very likely accept an invitation to take part in participation exercises of this kind, but 41% said that they would be less likely to take part if they believed that the Government would not listen to what they had to say. I recognise that the Bill presents the opportunity for secondary legislation to fill these gaps, but if the Government cannot support the amendment, it would be helpful for the Minister to put clearly on the record that those regulations would include deliberative processes, real involvement and reporting back on the ways in which decisions are changed, as the amendment would require.

[Miatta Fahnbulleh]

I am pleased to see the focus on community engagement in this amendment. However, we already have powers to set standards for local engagement through regulations, and that is what we will do. We are currently working with local government and the community sector to understand what best practice looks like and what is already happening on the ground. My view is that it is right and appropriate that different principal authorities work out the best way to engage their communities, which can be very diverse and will need different approaches.

We are clear that principal authorities can and should already be working to support their communities through meaningful and robust community engagement and coproduction. The very best councils already do that, and we have examples of that across the country. It does not always happen in the way that it does with the very best, so we will work with and support councils to have meaningful community engagement. At the heart of this is giving communities and residents—people in our localities—proper voice, agency and ability to drive decision. We will ensure that we design this in a way that enables and supports that.

[Siân Berry]

I appreciate the detail of the answer that the Minister is giving me, but I would like some further reassurance that poorly performing councils will face some sort of redress under the system that she is talking about.

[Miatta Fahnbulleh]

As I said, for this to work, we need councils to enable it. We will introduce a set of measures including peer-to-peer support—so, where we have great practice, sharing it with other councils—as well as capacity building and training, in order to make sure there is meaningful community engagement, because we believe it is fundamental. If we get this right, it is fundamentally about empowering our communities and residents. Every tier of government, from national Government through to strategic authorities and local authorities, will all have to play their part to ensure we do that well.

[Siân Berry]

I am content with the Minister’s response, so I beg to ask to leave to withdraw the amendment.

Amendment, by leave, withdrawn.

[Miatta Fahnbulleh]

I beg to move amendment 222, in clause 58, page 60, leave out lines 31 and 32 and insert—

“‘local authority’ means—

(a) a county council,

(b) a district council,

(c) a London borough council;”.

This narrows the types of local authority in England that are bound by the requirement to make arrangements to secure effective neighbourhood governance.

[The Chair]

With this it will be convenient to discuss clause stand part.

[Miatta Fahnbulleh]

The Bill sets out our clear ambition to embed communities at the heart of local decision making. This is about ensuring that decisions are shaped by those who know their communities best. Our ambition is that this will result in visible improvements in every neighbourhood across the country. Neighbourhood governance moves decision making closer to residents. It empowers communities to hold leaders accountable for their decisions and ensures that local priorities are understood and considered in the decision-making process. This will improve public trust in our councils, enhance our local democracy and ensure that our governance arrangements are rooted and working in the interest of our communities.

Turning to amendment 222, the policy intention is that only county councils, district councils and London borough councils will be subject to the duty to make arrangements for effective neighbourhood governance. As currently drafted, the Bill also includes parish and town councils, the Isles of Scilly and the City of London within scope of the provision. That is not the policy intention, and our amendment seeks to rectify it. We do not consider that town and parish councils should be subject to the duty, as it would be disproportionately burdensome.

[Lewis Cocking]

Does the Minister include metropolitans and unitary councils in what she has just said?

[Miatta Fahnbulleh]

Yes. This is purely putting in exemption for parish and town councils, the Isles of Scilly and the City of London corporation. That is because, in the instance of town and parish and councils and the Isles of Scilly, it would be disproportionate and extremely burdensome. Town and parish councils are already doing effective community engagement, and we will continue to support them to do that. At the heart of this is empowering our communities and creating structures that enable effective neighbourhood governance.

Amendment 222 agreed to.

Clause 58, as amended, ordered to stand part of the Bill.

Clause 59

Mayors and Police and Crime Commissioners: supplementary vote system

Question proposed, That the clause stand part of the Bill.

[The Chair]

With this it will be convenient to discuss the following:

Amendment 312, in schedule 26, page 259, line 35, at the beginning insert “For any elections on or after 1 May 2026,”

This amendment would formally guarantee the introduction of the supplementary vote system for any elections taking place in May 2026 for mayors in local authorities.

Amendment 313, in schedule 26, page 261, line 27, at the beginning insert “For any elections on or after 1 May 2026”

This amendment would formally guarantee the introduction of the supplementary vote system for any elections taking place in May 2026 for mayors in combined authorities.

Amendment 314, in schedule 26, page 263, line 6, at the beginning insert “For any elections on or after 1 May 2026,”

This amendment would formally guarantee the introduction of the supplementary vote system for any elections taking place in May 2026 for mayors in combined county authorities.

Schedule 26.

New clause 7—Mayors and Police and Crime Commissioners: alternative vote system—

“(1) Within three months beginning on the day on which this Act is passed, the Secretary of State must by regulations make provision for the use of the alternative vote system in elections of mayors and police and crime commissioners.

(2) Regulations under this section are subject to the affirmative resolution procedure.”

This amendment would require the introduction of the Alternative Vote system for elections of mayoral and Police and Crime Commissioner elections within three months.

--- Later in debate ---

[Miatta Fahnbulleh]

I will speak to clause 59 and schedule 26 now, and I will then respond to hon. Members on their amendments.

The Government recognise that the voting system used to elect our representatives sits at the heart of our democracy and is of fundamental importance. Given the large population that each regional mayor and police and crime commissioner represents, far exceeding that of Members of Parliament, the Government believe they should have a broad base of support among the electorate. We believe that a supplementary voting system, a preferential voting system, will achieve that and is appropriate for selecting single-person executive positions such as mayors and police and crime commissioners. The supplementary voting system will help to increase the local electorate’s voice, as voters may choose their first-choice and second-choice candidates, and it will require the winning candidate to receive the majority of votes counted.

[Paul Holmes]

I thank the Minister for begrudgingly giving way. She has just outlined that she believes a winning candidate should win a majority of the vote. We entirely agree with her, which is why we support first past the post. Why does she not seem to think that the supplementary vote should also be used to elect MPs, who are single executive politicians but do not necessarily always receive a majority of the vote?

[Miatta Fahnbulleh]

MPs going to Parliament to work as part of a collective is very different from a single individual who needs democratic accountability to drive decisions. Those are two very different models, which is why we think the single transferable vote makes sense in the context of mayors and police and crime commissioners but the first-past-the-post system that we currently have for MPs is right for collective decision making.

Finally, mayors and police and crime commissioners are currently elected via first past the post, which we think is the wrong approach. We think that shifting to this new system will provide greater consensus for the electorate.

[Manuela Perteghella]

I will speak to new clause 7. I commend the Government for their decision to do away with the first-past-the-post system for mayoral and police and crime commissioner elections. As has been said, the decision to move mayoral elections to first past the post was a complete disaster, and this improvement will ensure better local voter representation. The Mayor of the West of England, for example, was elected with only 25% of the vote. Supplementary voting is a significant improvement, but the Liberal Democrats believe we should introduce the alternative vote system as a further advance on that.

We all want to see genuinely representative local elections to ensure that local people know that every vote counts, and so that the councils they elect are truly representative. Where the supplementary vote system allows people to vote for their first and second choices, the alternative vote system allows for a more comprehensive ranking by each voter. For example, under first past the post, a candidate with no majority backing can still win because of vote splitting. We believe that an alternative vote system will increase engagement and deliver fairer outcomes. Our new clause has the support of the Electoral Reform Society, which strongly recommends that it is incorporated into the legislation. I await the Minister’s response.

--- Later in debate ---

[Paul Holmes]

I would argue that it is up to us as politicians and candidates in the election to advertise the position and generate excitement among the electorate, so that people vote for them. It was still 41%, I think, in the election that the hon. Lady cited; it was below half the total electorate, so this is not a panacea for improving electoral participation.

Also, I know that the hon. Lady was advocating for SV, but the Liberal Democrats have always been vehement in their approach to AV, despite the fact that they lost the national referendum that they managed to get on the AV voting system. [Hon. Members: “You gave it to them.”] We gave it to them because that is coalition, but they lost and we won, so I am quite happy with the outcome. They lost a test on the national system.

AV was used in mayoral elections and PCC elections when these positions were created, and turnouts were demonstrably low and very low in some cases—12% to 18%. They are now massively higher. Okay, they are not high enough, but they are higher now because they have become a constant and well-established institution in our voting system. That is not because of the voting system. It is because the system has been allowed to bed in and people have the choice of whether to elect a PCC or mayor or not. That is one of the bedrocks of our political systems today.

I thought I was triggered on the amendment where I saw the words “citizens’ panels”, but now I am even more triggered; we have a long history of speaking about citizens’ panels and citizens’ assemblies. As I said at the beginning, there is a clear need for local people to have a straightforward system that does what it says on the tin. The Conservative party will always believe that first past the post is the system that does that. Other parties want to gerrymander a system to try to suit their own preferred political outcomes.

The Minister said that directly elected people need to have the widest possible mandate and number of people voting for them. Her Prime Minister secured 32% of the vote in a national election and won a majority of the size that he did. [Interruption.] It is not a reason to support another system at all. I do not think that the Minister can advocate for a different voting system in one case, but then—the Government’s position is confused on voting systems—accept that a 32% vote share got well over 60% of the seats on a turnout, I think, in the high 60s. That is not exactly representative, either. The Government need to have a solid position on all kinds of elections, not just ones that suit their potential candidates.

[Miatta Fahnbulleh]

Let me address amendments 312 to 314 first. I am happy and pleased that the hon. Member for Brighton Pavilion is keen on the supplementary vote system that we want to implement. The challenge to her amendment was summed up by the hon. Member herself in the final part of her speech. We are moving at pace because we want to drive through these reforms. We want to drive through the rewiring of the state and the devolution of power. However, we do not expect the Bill to come into force in time to restore the supplementary vote system for the elections in May 2026, as much as I would love us to.

Once the Bill is enacted, we will need to bring forward secondary legislation to implement the measures updating the conduct rules for these polls. Also, returning officers will need to prepare for polls under the new voting system and we need to ensure that there is sufficient time. Therefore, with all the will in the world, with the full gusto of the Government on what we are trying to do, we do not think we will be able to hit that timetable. But for subsequent elections, the new system should be in place.

On new clause 7 and the alternative vote system, I say two things. First, I again gently remind Liberal Democrat Members that there was a referendum on AV and 67.9% of voters rejected it at the time, so it is not clear that there is a groundswell of desire for that voting system. And critically, from our perspective, it is slower, more expensive to run and more burdensome. Therefore, we think that the system that we are proposing—supplementary votes—is the right and appropriate system and I ask hon. Members to withdraw or not press their amendments.

Question put, That the clause stand part of the Bill.

--- Later in debate ---

[Miatta Fahnbulleh]

Many Members will have pubs or community centres in their constituencies that are at risk of loss or closure, despite being the heart of their community and playing a crucial role in local lives. Too many valued community spaces are being lost because communities do not have the powers they need to protect them. That has a massive impact on the vibrancy and identity of local areas. Clause 60 and the associated schedule 27 will put control back into the hands of communities, giving them real power to take ownership of cherished local assets and protect them for future community use.

The clause will strengthen the existing assets of community value scheme in England, which since its introduction in 2012 has seen only 15 in every 1,000 listed assets come into community ownership, and create a new, far more effective and far more powerful, community right to buy. This will give communities a right of first refusal on the purchase of valued community assets. It will give an extended 12-month period to raise funding to purchase the asset, as we recognise that the current six months is not long enough. It will also introduce an independent valuation process to ensure a fair price for everyone.

We know that village shops and bank branches are a lifeline to our communities. The clause will therefore extend the definition of an asset of community value to include those with an economic value and assets of historical importance, so that communities can protect and make use of them.

Finally, the clause will address the historically low uptake of sporting assets under the current regime by establishing a new sporting asset of community value designation. Sports grounds across England will be automatically and indefinitely designated as sporting assets of community value, ensuring that these cherished facilities, vital to our communities, are protected for generations to come.

Question put and agreed to.

Clause 60 accordingly ordered to stand part of the Bill.

Schedule 27

Assets of community value

[Manuela Perteghella]

I beg to move amendment 349, in schedule 27, page 265, leave out lines 1 to 8.

This amendment would remove the provision for assets of community value to be removed from the list of assets of community value after five years.

[Manuela Perteghella]

Amendments 349 to 351 concern the rules around assets of community value. The designation of a building such as a pub, community shop or village hall, or even a piece of land like a community orchard, as an asset of community value allows local people to protect the places that play an important role in their community. They are often linked to wellbeing and social cohesion. The intent behind the original legislation was to give communities a real say on places that matter deeply to them, particularly when they are at risk of being sold or redeveloped.

There is, however, a flaw in the current system. Under existing law, once an asset is listed on the register by a local authority, it automatically drops off the register after five years. This creates a huge burden not only on the local community, including local community groups and parish and town councils—as they have to jump through bureaucratic hoops to resubmit the application to the local authority—but on the local authority itself, as the application has to go through its legal department and be scrutinised once again. In the time it takes for that to happen, a cherished community asset might be sold off.

Like sporting assets of community value, these important buildings and sites must remain on the list of community assets. Amendment 349 would remove the automatic five-year expiry for assets of community value for all buildings and places on that list. It would mean that, once an asset is listed as being of community value, it will stay on the register indefinitely, unless there is a clear reason for it to be removed.

The amendment would shift the burden from communities to maintain protection for something that is still vital to local life. I had an experience in my constituency where one of the village pubs, which had been put on the register of assets of community value, dropped off the list during covid. Obviously, we were all preoccupied with the pandemic, and we only realised later that it was not protected any more.

Amendments 350 and 351 are consequential to amendment 349. In a way, these amendments would also take away the burden on local authorities that have to assess the application once again. This change matters because reapplying is not a simple process; it takes time, organisation and paperwork, and it is handled by volunteers who may have limited capacity and resources. Removing the time limit for all assets of community value would mean that we provide continuity of protection and reduce unnecessary bureaucracy for both communities and local councils. It would also recognise that community value does not just disappear after a few years. A local pub or post office that was vital to a community in 2019 is still vital in 2025.

In our view, these amendments sit entirely within the spirit of the Bill by giving communities more tools to strengthen local decision making, and not limiting them with arbitrary timeframes. I urge the Minister and the Committee to cut the red tape and strengthen local power, and I ask her to consider reviewing the time limit.

[Miatta Fahnbulleh]

I thank the hon. Lady for tabling these amendments. We absolutely want to ensure strong protections for assets of community value, and the five-year listing period recognises the need of the community in that period of time. We also recognise that the need and desire of the community may change over time. Something that is an asset of community value in year one might not be an asset of community value in year six or seven. This allows a review process to happen.

We are also trying to balance the protections that we absolutely want to give to communities with those of the asset owners, and to ensure it is proportionate. We think that five years is a fair balance between both parties. I am also mindful of the risk that if we designate assets of community value permanently, local authorities may be incentivised to take tougher judgments on requests from communities to list assets of community value. On balance, when we think about the incentives to create more assets of community value, protections that we need to give to communities and protections for the asset owners, five years feels like the right amount of time to allow the system to operate in a way that is fair for all parties. For that reason, I urge the hon. Member for Stratford-on-Avon to withdraw her amendment.

[Manuela Perteghella]

Would the Minister consider looking at extending that five years to give a bit more time to the community to—

--- Later in debate ---

[Manuela Perteghella]

These amendments are interlinked. First, I would like to speak in support of the Bill’s provisions to protect assets of community value under the new sporting category. Those are important, and we are all delighted to see them in the Bill. These are key community hubs, including for our grassroots sports clubs and particularly for our young people. They play a fundamental role in building local pride, building engagement and developing young people’s skills. I thank the Government for these welcome provisions.

In that context, the Bill’s exclusion of environmental assets of community value seems stark. Social, economic and environmental impacts are often grouped together in legislation, and yet although sporting assets have been added to the group of possible categories for an asset of community value, environmental assets have not. The environmental impact is absent. We can only assume that exclusion is a protection against environmental considerations being used as a mechanism to prevent development. Perhaps the Minister can explain that in her response. This seems needlessly reductive, because the positives outweigh the negatives, and the negatives can be mitigated if there is a concern.

There is widespread support for these amendments. We worked on them with Locality and the Community Land Trust Network, in conversation with them I heard about sites all across the country that could be protected. I am sure that Members can think of many examples in their constituencies. Given the value of environmental conservation—the value of nature for its own sake, as well as its benefits for public health and mental health—we ask the Minister to consider including provision for considering environmental impact in assets of community value. It would be of huge value to my constituents to be able to ensure that measures are in place to protect the environmental value of, for example, Meon Vale woods, which they fought to save and which has become a local nature reserve. Depending on the Minister’s response, I will press amendment 34 and consequential amendments 35 to 37 to a vote.

[Miatta Fahnbulleh]

The Government absolutely want to ensure that the community right to buy can be used to protect a wide range of assets. That already includes a wide range of environmental assets where communities can demonstrate an existing historical, social or economic purpose, including allotments, woodlands, parks and other green spaces. We know that many of those can already be found on local lists of assets of community value.

--- Later in debate ---

[Siân Berry]

I will speak briefly on new clause 51. It is really encouraging that there is a cross-party effort to reinvigorate community ownership funding, which has lapsed. Although I am excited about the pride in place funding, which is quite extensive and goes into local areas in quite an intensive way, I think the community ownership angle of that is limited to the geographic area covered. Things such as sporting assets or community assets that serve a whole town may not be within that area. I would like to hear from the Minister that, if she will not accept new clause 51, something will be done for other parts of the country to ensure a fund to support community ownership.

[Miatta Fahnbulleh]

I will try to work through all the amendments. Let me start with amendment 373. I appreciate the commitment of the hon. Member for Stratford-on-Avon to protecting historical assets. The Government are proud to support communities to celebrate heritage buildings and assets, and there are already protections in place for them to do that. Historical buildings that are valued by local communities, but do not meet the criteria to be nationally listed, can be listed by local authorities as non-designated heritage assets. That protects them through the national planning policy framework, so the protection is already there.

On amendment 40, I reassure the Committee that we already have established processes in place to ensure that local authorities are adequately funded to deliver new policies, and this is no exception. The new burdens doctrine requires that all new responsibilities placed on local authorities are properly assessed and fully funded by the relevant Department. We are assessing the cost of the process for local authorities and will provide new burdens funding accordingly.

On amendment 41, I can confirm that we are assessing the costs of independent valuation to local authorities. Where the owner and community buyer cannot agree a purchase price for an asset through negotiation, the local authority must appoint an independent valuer. We will provide new burdens funding to meet those costs accordingly, once assessments have been finalised and tested with local government. I hope that that provides some assurance.

On amendment 374, we know that some community groups may not come forward as they do not have the capability or capacity to put together a bid for an asset. The intention of the 12-month sale period is to give communities time to organise and to raise the funding required. We will continue to work with community organisations to ensure that they have the support to do so. Requiring local authorities to step in to purchase assets where there is no community buyer would put too much of a burden on local authorities, and we could end up with local authorities taking over and having to run theatres and pubs. Although those assets might have value for the community, that does not feel appropriate for a local authority.

We think we have the balance right and that this measure is proportionate. As my hon. Friend the Member for Banbury said eloquently, however much we might want a particular asset to stay in its original form, sometimes that may not be viable. We do not want buildings becoming dilapidated when they could be retained in a different way.

On amendment 42, we are already putting requirements on local authorities to enable and facilitate this process. For example, they must arrange that joint meeting between the asset owner and the community buyer at the start of the process and enable that process of negotiation and, as I have said, local authorities again need to step in to provide the independent valuer if negotiations fail. We think that is the right role for the local authority, not least because it has to be an arbiter in the process.

However, we want there to be enough capability across all our communities, irrespective of the level of social capital, to be able to take on these powers. There is a range of community organisations with the expertise and experience to provide this kind of support to communities, such as Plunkett, Power to Change and Locality, and we are working with those organisations on the additional support that they can provide to communities across the country.

Amendment 249 would restrict what an asset owner can do with their property once listed. We think that it is ultimately up to local planning authorities to consider planning applications in accordance with their development plans and other material considerations. That could include the listing of an asset of community value. The weight afforded to material considerations in making the decision will be decided on a case-by-case basis, and we think it is right that that is left to the local planning authority.

Critically, the national planning policy framework already includes important safeguards to protect against the unnecessary loss of social, recreational and cultural facilities that serve an important value for the community. We think that the balance between what already exists in the planning system and the protections that we are providing through the community right to buy is right and appropriate.

Finally, on new clause 51, let me be clear: this Government are absolutely committed to empowering our communities. We are giving communities everywhere the power to take ownership. Our pride in place programme, which the hon. Member for Brighton Pavilion talked about, is providing £5 billion over 10 years to support 244 places, to enable and support them to take on such community assets of value.

We will continue to review this area, because we are committed to communities having a stake in and ownership of their assets, and we are committed to doing our part as a Government to enable them to do that. With that, I ask the hon. Member for Stratford-on-Avon to withdraw her many amendments.

[Manuela Perteghella]

I will not press the amendments to a vote, although my hon. Friends might table them again on Report, but I will press new clause 51 to a vote later on. I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

[Miatta Fahnbulleh]

I beg to move amendment 236, in schedule 27, page 275, leave out lines 23 to 25 and insert—

“(b) the relevant local authority has determined that the preferred community buyer does not meet the progress requirements after any of the review periods (see section 86U), or”

This amendment is consequential on Amendment 223.

[The Chair]

With this it will be convenient to discuss Government amendments 234, 223 to 233 and 235.

[Miatta Fahnbulleh]

This group of amendments introduces and defines the new 16-week review period for communities seeking to purchase a sporting asset of community value accommodating more than 10,000 spectators. This will permit landowners to request evidence from the preferred community buyer no less than two weeks before the end of the new 16-week review period. The period begins on the date when a notice of intent to enter into a relevant disposal is given. At the end of the 16-week review period, the local authority will decide whether the community has met the progress requirements and will give written notice of its decision to both the owner and the buyer.

While I remain committed to empowering communities to take ownership of larger sports grounds, I also recognise the importance of ensuring that they have the capability and readiness to manage them effectively. That means putting in place processes to safeguard the long-term sustainability of those assets, ensuring that community buyers are well-prepared to take on the responsibilities of permanent ownership for an asset that will be critical to their community.

Amendment 236 agreed to.

Amendments made: 234, in schedule 27, page 281, line 39, leave out “that” and insert “the notice”.

This amendment is consequential on Amendment 223.

Amendment 223, in schedule 27, page 281, line 10, at end insert—

“(1A) Where the land that the notice relates to is a sporting asset of community value which can accommodate over 10,000 people, and the owner makes a request in writing, the relevant local authority must—

(a) determine whether at the end of the 16 week review period the preferred community buyer has met the progress requirements, and

(b) as soon as reasonably practicable give written notice of the determination to the owner and the buyer.”

This provides that where requested by the owner a preferred community buyer of a sporting asset of community value which is a large venue must show additional evidence of progress of their proposed purchase at an earlier stage in the process.

Amendment 224, in schedule 27, page 281, line 13, leave out “first” and insert “6 month”.

This amendment is consequential on Amendment 223.

Amendment 225, in schedule 27, page 281, line 18, after “subsection” insert “(1A) or”.

This amendment is consequential on Amendment 223.

Amendment 226, in schedule 27, page 281, line 19, leave out “first review period” and insert

“review period that it relates to”.

This amendment is consequential on Amendment 223.

Amendment 227, in schedule 27, page 281, line 21, leave out “second” and insert “12 month”.

This amendment is consequential on Amendment 223.

Amendment 228, in schedule 27, page 281, line 28, leave out

“the first and second review periods”

and insert “each review period”.

This amendment is consequential on Amendment 223.

Amendment 229, in schedule 27, page 281, line 34, at end insert—

“‘the 16 week review period’ is the period of 16 weeks beginning with the date on which the notice of a wish to enter into a relevant disposal was given under section 86M(1) (‘the notice date’);”.

Amendment 230, in schedule 27, page 281, line 35, leave out “first” and insert “the 6 month”.

This amendment is consequential on Amendment 223.

Amendment 231, in schedule 27, page 281, line 35, leave out “six” and insert “6”.

This amendment is consequential on Amendment 223.

Amendment 232, in schedule 27, page 281, line 36, leave out from “with the” to the end of line 37 and insert “notice date”.

Amendment 233, in schedule 27, page 281, line 38, leave out “second” and insert “the 12 month”.

This amendment is consequential on Amendment 223.

Amendment 235, in schedule 27, page 281, at end of line 39 insert—

“‘review period’ means the 16 week review period, the 6 month review period or the 12 month review period.”—(Miatta Fahnbulleh.)

This amendment is consequential on Amendment 223.

Ordered, That further consideration be now adjourned. —(Deirdre Costigan.)

English Devolution and Community Empowerment Bill (Ninth sitting)

Miatta Fahnbulleh Excerpts

Committee stage
Thursday 23rd October 2025 Public Bill Committees

[Paul Holmes]

Good morning, Dame Siobhain. It is a pleasure to see you in the Chair once again, and to see everybody on the Committee on this very sunny Thursday morning. I know everybody is delighted to be here, and I welcome the Minister too.

The amendment would allow the Secretary of State to make regulations that would allow certain functions of single foundation strategic authorities to be exercised only by the mayor of that authority. Amendment 309 would create additional boundaries for regulations that may provide for a function of a strategic authority to be transferred to the authority’s mayor. In essence, we believe that amendments 307 to 309—we will come to amendment 308 in the next grouping—would address the issue that single foundation strategic authorities such as Cornwall currently cannot access the highest level of devolution, because the Bill only allows for combined or county combined authorities with a mayor to exercise the functions that the Government are putting forward.

Amendment 307 promotes fairness and flexibility by allowing foundation strategic authorities such as Cornwall to benefit from the same level of democratic leadership as combined authorities. That would empower local areas to choose a directly elected mayor if they wish, strengthening accountability and enabling them to access greater devolved powers, which the Minister has outlined as a key priority for the Bill.

Amendment 309 would enable the Secretary of State to transfer functions to a strategic authority’s mayor, and would ensure that devolved powers can be effectively localised and exercised by accountable leadership. The amendment would complement amendments 307 and 308, by giving mayors the tools they need to deliver on local priorities, ensuring that devolution works in practice, not just in principle.

I will move amendment 308 at a later stage, but together, our amendments would effectively let foundation strategic authorities have mayors and the associated powers of delegation and function transfer, putting them on par with mayoral CAs and CCAs, and I encourage the Government to support them.

[The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Miatta Fahnbulleh)]

It is a pleasure to serve with you in the Chair, Dame Siobhain. Let me take amendment 307 first. To be clear, the single foundation strategic authority will not have a mayor. That is not the intent of the provision or of the Bill and it is not in the Government’s plans. Invariably, however, we want to be sure that at every level we are devolving power. Certain powers will be devolved to single foundation strategic authorities, such as Cornwall, in order to enable it to respond to some of its issues. We are also clear that certain powers will be reserved to mayors, because a level of democratic accountability is critical to the exercise of such powers. That is the distinction that we have made throughout the design of the policy and it is built into the Bill.

Amendment 309 is out of the step with the Bill’s objective of streamlining the process for conferring and modifying the functions of strategic authorities and mayors. The Bill already puts in place sufficient guardrails when functions are transferred to mayors. When making functions exercisable by the mayor, it is already the case that constituent authorities will be consulted before such a change. Requiring the consent of those authorities will create an unnecessary barrier to enabling mayors to take on functions and to get on with the job delivery, which is what we need of them.

Finally, many mayors can already appoint political advisers—another piece of amendment 309—as agreed through the establishment of statutory instruments. The Bill will also allow mayors to appoint commissioners to support them in the exercise of their functions. That is the right balance to be struck to ensure that the mayor has what he or she needs to do the job that their constituents or voters require of them. With that, I ask that the amendment be withdrawn.

[Paul Holmes]

I hope that the Minister understands our motivation for tabling the amendment. We are not trying to score a political point, but to strengthen the Bill. I am reassured that the Minister has given us some reassurance that she sees that every kind of authority should be devolved and that the powers should be aligned with those. We may come back to this on Report, but I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

[Paul Holmes]

I beg to move amendment 308, in schedule 23, page 237, line 30, at end insert—

“Functions moving from mayors to deputy mayors and strategic authority members

5A (1) Regulations may provide for the mayor of a strategic authority to allow any function of the mayor to be exercised by—

(a) the deputy mayor,

(b) a member of the relevant strategic authority,

(c) a committee members of the strategic authority appointed by the mayor.

(2) Regulations may create requirements for the committee in sub-paragraph (1)(c) including—

(a) requirements about the membership of the committee,

(b) requirements about the appointment of a chair of the committee,

(c) requirements about the process by which the mayor may appoint members to the committee,

(d) requirement about the committee’s voting procedures,

(e) requirements about information which must be disclosed by the strategic authority to the committee.”

This amendment would allow the Secretary of State to make regulations to allow a mayor to delegate exercise of a function to a deputy mayor, a member of the relevant strategic authority, or a committee of a members of the relevant strategic authority.

This amendment, tabled by my hon. Friend the Member for Ruislip, Northwood and Pinner, is an extension to my earlier amendments 307 and 309, as I said. In essence, it would allow the Secretary of State to make regulations to allow a mayor to delegate the exercise of a function to a deputy mayor, a member of the relevant strategic authority or a committee of members of the relevant strategic authority. Allowing mayors of strategic authorities to delegate functions would ensure consistency with existing mayoral models, making government more effective and responsive. The amendment would provide practical flexibility so that mayors can share responsibilities appropriately and ensure that local decisions are made at the right level.

I expect the Minister to resist the amendment, but I look for some reassurance on whether we can ensure that the Bill brings some standardisation, an efficient transfer of functions and efficient exercise of the functions proposed. I am interested to hear her thoughts, but at this stage we do not intend to press the amendment to a vote, depending on what the Minister comes back with.

[Miatta Fahnbulleh]

Again, I understand the intent behind the amendment. I would say that mayors are already able to delegate the majority of their functions to deputy mayors and to members of constituent authorities. In the evidence session, for example, Councillor Bev Craig from Manchester was responsible for the economic development portfolio in Greater Manchester. Such functions are already in place. In part in recognition of the fact that local councillors, in particular leaders and cabinet members, have busy paid jobs, we want to increase the mayor’s pool of support, which is why we are creating the ability for the mayor to appoint and to delegate functions to the commissioners. That will give the mayors options. We are not specifying how the mayor should do it, and ultimately each mayor will figure out what works for their area and the mix between deputy mayors, commissioners and lead members, but this provision will increase the pool and the options available to them.

[Paul Holmes]

We are content with that answer, so I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Question proposed, That the schedule be the Twenty Third schedule to the Bill.

[Miatta Fahnbulleh]

The schedule is introduced by clause 50. I have already spoken about why the clause should stand part of the Bill. As I explained previously, the schedule is essential to providing Government with the powers to add new functions to the framework. That will ensure that strategic authorities and mayors have the powers they need to deliver for their local people, which is what all this is about. I commend the schedule to the Committee.

Question put and agreed to.

Schedule 23 accordingly agreed to.

Clause 51

Health service functions: application of existing limitations on devolution

Question proposed, That the clause stand part of the Bill.

[Miatta Fahnbulleh]

This Government want to ensure we have a national health service that is fit for the future, and we are doing huge amounts to repair the damage to the national health service done by the Conservative Government. That is a core function of what we are doing. It is therefore right that certain core functions, such as the NHS constitution or university clinical training, remain the responsibility of the Secretary of State for Health and Social Care. This clause retains the existing limits on the devolution of health functions in England. Protections against devolving health functions are not new—they have been in place since the Government began the process of devolving functions to combined authorities—and the Bill maintains them. I commend the clause to the Committee.

[Paul Holmes]

I was going to stay quiet, but unfortunately for the Minister I was inspired by her speech, so I hate to disappoint the Government Whip by speaking very briefly. The Minister, quite rightly—it is her job—outlined that she wants to rectify some of the supposed damage done to the national health service over 14 years, but I gently remind her that waiting lists are increasing and that the Secretary of State for Health and Social Care is looking at possible strike action while putting forward a reorganisation that he cannot afford.

I look to the Minister for some reassurance regarding whether wider health policy, such as that reorganisation and some of the local functions of integrated care boards, which we know are changing, may affect the provisions in the clause. Could there be some effect on the ground that may create delay or necessitate some changes to the clause in the longer term?

[Miatta Fahnbulleh]

Obviously, the NHS is going through huge reform. We are working closely with the team in the Department of Health and Social Care to ensure that reforms sit alongside our plans for devolution. A big part of what we are trying to do through our health reforms is to provide community-based healthcare, and there is a big opportunity for local and regional government to work alongside the NHS to deliver integrated services that work for our communities and are user-led. We are making sure that every stage of the reforms, including the changes to the ICBs, is done in lockstep with what we are trying to do across the country.

Question put and agreed to.

Clause 51 accordingly ordered to stand part of the Bill.

Clause 52

Incidental etc provision

Question proposed, That the clause stand part of the Bill.

[Miatta Fahnbulleh]

This is a simple provision. When functions are conferred on, or modified for, strategic authorities in the future, the Government will sometimes need to make technical changes to other pieces of legislation to ensure that the functions conferred on strategic authorities work as intended. That is why the Bill includes this technical clause—it is just a technical clause—to allow the Government to have the power to make technical changes to existing legislation when necessary. The clause will ensure that strategic authorities and mayors are able to effectively exercise the functions, as intended by policy. I commend the clause to the Committee.

Question put and agreed to.

Clause 52 accordingly ordered to stand part of the Bill.

Clause 53

Transfer of property, rights and liabilities

--- Later in debate ---

[Paul Holmes]

We understand the overarching aims of this clause, and the debate does not necessarily have to revolve around whether or not it should happen, but we tabled this probing amendment because we understand that the legislation is essentially applying TUPE regulations regardless of whether they legally apply. We want to challenge that and probe why, if TUPE regulations need not legally apply in cases of transfer, the Government have insisted that TUPE regulations have to go into this regardless. Can the Minister answer that key question?

[Miatta Fahnbulleh]

TUPE regulations are there to ensure that staff are not dismissed for the sole reason that functions are being transferred from one public body to another. We believe that they are fundamental to protecting staff, which we want to make sure happens throughout this process.

In line with the Cabinet Office guidance, this clause tries to ensure that the regulations apply when we have public bodies moving to strategic authorities. The amendment, as drafted, risks creating uncertainty for staff and disrupting the smooth transfer of functions.

TUPE regulations are there for a reason—to protect the workers that are fundamental and critical to delivering any public institution. When we are going through the process of creating these strategic authorities, it is important that we embed those TUPE regulations. That is why I ask the hon. Member to withdraw the amendment.

[Paul Holmes]

I thank the Minister for her full and direct answer, and I understand it. I take it she accepts that TUPE is being put into this clause regardless of whether there is a legal necessity for it to apply. Has she had any correspondence or lobbying from the trade union movement to make sure that it is included?

[Miatta Fahnbulleh]

To answer that question directly: no, although it helps that I am a new Minister. The clause is in step with long-standing Government practice. It mirrors provisions that have been made in previous legislation by the previous Conservative Government, including in the Levelling-up and Regeneration Act 2023. It is standard practice and it is done by all parties. It is there because we need to protect staff.

[Paul Holmes]

I feel very reassured that the Government are following the excellent judgment of the last Conservative Government. On that note, I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Amendment made: 221, in clause 53, page 58, line 16, at end insert—

“(8A) Regulations under this section are subject to affirmative resolution procedure.”—(Miatta Fahnbulleh.)

This would make regulations under clause 53 subject to affirmative resolution procedure.

Clause 53, as amended, ordered to stand part of the Bill.

Clause 54

Prohibition of secondary legislation removing functions

Question proposed, That the clause stand part of the Bill.

[Miatta Fahnbulleh]

Strategic authorities will not be able to deliver for their residents if they fear that a future Government could easily remove functions that have been devolved. Parliament is sovereign, and the Government will always be able to table primary legislation to redesign how functions are delivered. However, the Bill makes sure that Governments will have to make that argument in Committee and on Report, as we are doing now. It must not be easy to take devolved powers away from strategic authorities. We want this to be locked in because we fundamentally believe that this is how to deliver for communities across the country. That is why this Bill limits the ability of this or any future Government to remove functions from strategic authorities using secondary legislation, so that they can be exercised again by central Government.

I commend clause 54 to the Committee.

[Paul Holmes]

This is a difficult one for us. I am not saying that the Minister is trying to bind the hands of future Governments, but it does feel like the Government are trying to make this increasingly difficult. We would argue that any elected Government have a mandate to make legislative changes as they see fit. I wonder whether this is using a sledgehammer to crack a nut.

Of course, we accept the need for parliamentary scrutiny, but an elected Government should be able to use any mechanism they want to use. I ask the Minister once again to consider whether she thinks this is really necessary. A Government who might want to remove some of the functions would have a democratic mandate to do so, and arguably very good reasons for doing so when future structures need to change. I would like to challenge her on whether she thinks this is absolutely necessary, which may depend on our forcing a vote on this issue.

[Miatta Fahnbulleh]

I thank the hon. Member for his question. My view is that devolution is a fundamental shift in power and a rewiring of how we govern the country. At the heart of the devolution process are a lot of democratic processes, where people vote for a mayor on the basis of what they say they will deliver for their community. To make a fundamental change, it is absolutely right that a future Government must get the consent of Parliament to rewrite it. That is the premise on which we think about the Greater London Authority Act 1999 and devolution, and it is what we have done in the context of Scotland and Wales. These are fundamental shifts in power, and it is right that there has to be a full democratic process within Parliament to reverse them.

Question put, That the clause stand part of the Bill.

--- Later in debate ---

Question proposed, That the clause stand part of the Bill.

[Miatta Fahnbulleh]

Reorganisation is a crucial part of the Government’s mission to fix the foundations of local government. I come back to the fundamental point that this is not about reorganisation for reorganisation’s sake; it is about creating better-functioning unitary councils that are more sustainable and better able to deliver the high-quality services that their residents want and fundamentally deserve.

Schedule 24 enables the Secretary of State to direct areas to submit proposals to reorganise. We are committed to working in partnership with local areas. Therefore, this will be used only where areas have failed to make progress following an invitation. It also includes new merging provisions to enable existing unitary councils that believe structural change would be beneficial to submit proposals for reorganisation. That aligns the process for reorganising single-tier areas with the current process for reorganising two-tier areas.

With devolution and local government reorganisation progressing concurrently across the country, mechanisms are needed in the Bill to ensure these reforms work in harmony. The first mechanism is the ability to convert a combined county authority into a combined authority. This is a straightforward and common-sense provision. When local government reorganisation takes place in an area covered by a combined county authority, we need a streamlined way to convert the authority into a combined authority.

The second mechanism is the ability to abolish a combined authority or combined county authority if local government reorganisation renders that authority obsolete. This mechanism would be used only in very limited circumstances: if a new unitary authority covers or includes the whole area of an existing combined authority or combined county authority. Any local government reorganisation proposal requiring the use of this abolition mechanism will need to consider how it would impact future devolution in the area, as per the Government’s reorganisation criteria. That ensures these areas will not be left without a viable pathway to devolution.

I commend clause 55 to the Committee.

[Paul Holmes]

Clause 55 essentially goes to the heart of the Bill. As we argued when we voted in the House against local government reorganisation, the thing in this Bill that most people out there—our voters—will notice, aside from the devolution aspects and the creation of mayors, is the bread-and-butter transactional services that people see on the ground. That will be the biggest impact the change will have on their daily lives.

We oppose clause 55 because we believe the Government have no democratic mandate to deliver local government reform. It was not in their manifesto, they did not ask the British people to vote for them on the basis of local government reform, and we fundamentally have—[Interruption.] The hon. Member for Camborne and Redruth looks shocked at my proposition, but if he can refer me to where this was in the Labour party’s manifesto, I will happily withdraw that point. I suspect he cannot, because it was not there. That is a key aspect of why we oppose the clause.

The other reason why we oppose the clause is because there is no overwhelming evidence showing that services or local government would be more efficient with larger organisational structures and a larger population being encapsulated into unitary authorities. I am a big fan of unitary authorities—I declare an interest in that I am a former lead member of one, and I was very happy to be so—but we have to accept that the nature of devolution means that a standardised model is not adequate for everywhere in the country. In some areas, it may not be what is best or wanted by local people. That comes back to the democratic deficit we believe the Government have in announcing these LGR proposals.

I know the Minister is relatively new in post, so she will not have had as much communication with local authority leaders as her predecessor did—that does not reflect on her or her ability; it is just the nature of her period in post. But, in previous sittings, she outlined and indicated to this Committee that there is overwhelming excitement from many local authority leaders who welcome LGR and the new mayors proposed by the Government. She will also be aware that this has caused a huge amount of disruption to local people and the working of local authorities, at a difficult time for their operational capacity and capability, with reduced budgets. This is not needed.

For example, there are now three proposals to Government in my area. One is from the 12 district councils, which absolutely do not want to be abolished. There is unified agreement on that, except from Gosport borough council, which has opposed everything completely. There is a county council recommendation, lauded previously by the Minister, which is not supported by MPs who represent the area. And there is another proposal that is contested. One of my Hampshire colleagues has just entered the room, and he takes the same view as me.

--- Later in debate ---

[Paul Holmes]

The hon. Gentleman hits the nail on the head. There were unique circumstances where everything was going bankrupt, so strict action had to be taken. This Government are proposing, unilaterally and without any consultation with those who do not want it to go ahead, to change local government structures across the whole of the United Kingdom without democratic legitimacy.

[Miatta Fahnbulleh]

Does the hon. Member recognise the state of local government—the absolute mess and the financial vulnerability of local authorities—that his party left us with? Unique circumstances, absolutely. We are having to fix the mess we inherited. We absolutely want local government to be successful and to thrive, but it is on its knees after 15 years of austerity. That is why we are having to take the action we are taking.

[Paul Holmes]

If the Minister is seriously suggesting that a complete and wholesale reorganisation across the whole United Kingdom is the one answer to making sure that local government can operate on a sustainable footing, I do not buy that at all. There are many things that this Government could do to make local government much more efficient and to deliver for people. First is an uplift in funding.

[Miatta Fahnbulleh]

We are doing that.

[Paul Holmes]

Well, the Minister should speak to the many council leaders across the country who do not agree that it is enough.

If the Minister is seriously saying that abolishing 90% of elected councillors in rural areas across this country will somehow be the miracle cure for local government, and that is what is driving these measures, then I am sorry but this Government need to go back to the drawing board.

--- Later in debate ---

[Lewis Cocking]

My hon. Friend makes an interesting point. It is interesting that the Government have moved away from that, particularly because I have not met one person who thinks that reorganisation into large unitary councils is a good idea.

If it is good for parts of the country, I hope that the Minister can explain why London and lots of the metropolitan boroughs in the north are not being compelled to reorganise. If this 500,000 figure is the sweet spot and the Government have loads of evidence to back that the claim that this will make services more efficient and put councils on a better financial footing, why is it good for only certain parts of the country, and not the whole country?

[Miatta Fahnbulleh]

I thank hon. Members for their robust contributions. I will say a few things. First, we acknowledge that any process of change or reform is difficult. The Government do not underestimate the challenge of the process, but I come to why we are doing this. I made an intervention earlier to point out the state of local government that we inherited. Any one of us will know the huge pressures that local government are under. Fifteen years of austerity and rising demand has made local government increasingly unstable. The status quo is not tenable or sustainable. We have to do something systemic, because we have a systemic issue in local government.

Reforming and reorganising local government will deliver better services, because we can locate services at a level that works for residents. This is not reorganisation for reorganisation’s sake. It will be tough for our areas, but we are doing it because we are trying to ensure that local government services can work for their residents. It is about sustainability. We need to ensure that we have a model of local government that is fit for purpose and can be sustained in the future, because they provide absolutely vital services for residents. It would be completely reckless of this Government to see the state of play that we inherited and say, “We’re going to sit on our hands and not do anything.” That may be the Conservative way, but it is not the Labour way. We are clear that we have to help drive through a process of reform, and we are doing that because we want to ensure that local governments are fit for purpose to deliver those services for their residents.

There is a fundamental point about accountability and accessibility to residents. If we talk to any of our residents, they will say that they barely understand how local government works—who is responsible for what. Creating structures and systems that work, and that our communities can interact with and cohere with, is absolutely right.

We are very clear: this is not a one bullet solution. It absolutely is not. We know that local government reform needs to sit alongside other things that we are doing. We recognise the funding pressure that local government are under. That is why we boosted local government funding last year, and why we are delivering a real-terms increase to local government funding, despite the tough fiscal inheritance from the last Government. We are moving to multi-year budgets because we think that the system of year-by-year funding for local government is madness. We are making that reform. We are also moving towards consolidated budgets. Having lots of silos and funding streams has made it hard for local government to be strategic and to drive integrated services; we are reforming all of that. We are clear that this measure sits alongside all of that.

The final bit is our funding review. We understand that there are huge pockets of deprivation across the country—I come back to the Conservative party, which had a Prime Minister who boasted about the fact that he took money away from deprived areas to give it to affluent Tunbridge Wells. We will not do that. We are trying to recalibrate funding so that we can reduce deprivation and drive improvements across the country.

On the process—just to be clear and put it on record—we have not put a gun to any heads in councils; the Secretary of State has invited councils to put forward their proposals. Areas are now going through a process. The hon. Member for Hamble Valley talked about three proposals in his area; that is because we are making it bottom-up and saying, “Have a conversation about what model works best. We have a set of criteria to ensure that it is fit for purpose. Consult your residents and your stakeholders, and put that proposal to Government.” That is the process that we are undergoing at the moment.

[Paul Holmes]

The Minister says that there is no gun being held to local authority leaders’ heads. Can she therefore outline, in a clear way, what would happen to a county or district authority that said that it did not want local government reorganisation and refused to engage? They would be forced to reorganise, would they not?

[Miatta Fahnbulleh]

They have been invited. There is a backstop power, but we do not think we will need to use it because the conversation now playing out across local government is that, yes, this is hard, but everyone recognises that the status quo—standing still—is not feasible or sustainable.

[Paul Holmes]

I thank the Minister for giving way one more time. She is being very generous, especially as I know that I have spoken for a while. [Interruption.] I am delighted to hear that Government Back Benchers are so delighted with my speaking.

I ask the Minister again, because she has not committed to this in clear language: if a county council leader or a number of district councils refused to engage with the Government’s process on local government reorganisation, they would be forced to reorganise, would they not?

[Miatta Fahnbulleh]

That is not where we want to be. That is not where we think we will end up. We have invited places and, to the credit of local government, everyone recognises that change is required. What is now happening is that places are making decisions about the best proposal to deliver the outcomes that they want for their constituents. This process has been hard—of course it has—but, throughout it, every single local authority has understood that the status quo will not deliver for their residents. That is the thing that is driving the impetus for change.

I will say a few words on the 500,000 population figure because Opposition Members have mentioned it. That is not a hard and fast number. We have said that it is a benchmark. If we think about other authorities that have gone through the process of local government reorganisation over the past 20 years—the likes of Somerset or Cornwall—500,000 is the sort of number that they have gone for, and we have seen that their reorganisations have delivered improvements in services and in the way that they operate. Places can go below or above that number. Ultimately, it is for places to figure out the best configuration of their locality to deliver for their residents. We have been clear and consistent about that point.

I want to address the specifics on London. We are open to a conversation with any part of the country that wants to talk about reorganisation. London, with its boroughs, obviously has a different configuration locked in legislation. It is distinct from our two-tier areas, which is why we are not focusing on it. But we are very open to a conversation about London, where we tend to have big authorities that are delivering some of these integrated services anyway.

--- Later in debate ---

[Paul Holmes]

I absolutely agree with the hon. Lady in that we need responsibility, bearing in mind that amendment 51 would give the Secretary of State the power in this case to enforce that flexibility. A problem in the proposed local government reorganisation is that it focuses overly on the role and consent of county authorities, but the voice of district councils has not been listened to in this approach, as I outlined earlier when quoting Councillor Sam Chapman-Allen, who was leader of the District Councils’ Network.

I know what the Minister will say to our amendments, and I respect her position in doing so, but the Conservative party believes that devolution can mean so much to so many if done with the bottom-up approach that the Minister insists is hers. We want some words of encouragement that she may look—although I know she will not—to reduce the restrictions on a single tier for larger geographical areas. I do not intend to press the amendment to a vote, as it is a probing one. However, I have it on the good authority of my hon. Friend the Member for Keighley and Ilkley that he will table similar amendments on Report. We will listen to the Minister’s response with great enthusiasm.

[Miatta Fahnbulleh]

Let me say three things in response. First, there is already flexibility in the creation of boundaries and geographies for unitaries to ensure that they are fit for purpose and that they work for the communities they need to serve.

We are clear that, on the other side of local government reorganisation, councils must be the right size to deliver the high-quality services that residents deserve and need. Judgment on proposals will be driven by that fundamental question. Splitting up existing unitaries, further fragmenting and disaggregating services, does not feel like it would be in the interests of the residents concerned in delivering better and more efficient services, or value for money for taxpayers and those residents.

Clearly, we must have a reform process that fundamentally delivers those outcomes. There is now a process to do that. We will look at the various proposals and, ultimately, the test is: will the proposal deliver local government that is fit for purpose and deliver for our communities? Voters across the country want that and respect it.

[Paul Holmes]

I thank the Minister for what she said. I absolutely knew what she was going to say—that comes as no surprise to us in the Opposition—but this is about what we discussed before. She said that it would not necessarily be to the advantage of local people were we to allow the splitting of unitary authorities, but she is missing the fact that some people want that. I think that the non-uniform approach to local government works. I still believe that this is a community empowerment and devolution Bill. One size fits all across the UK is not the way that the Government should be going. I will withdraw the amendment, but I have no doubt of further amendments of this nature on Report. I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Ordered, That further consideration be now adjourned. —(Deirdre Costigan.)

English Devolution and Community Empowerment Bill (Seventh sitting)

Miatta Fahnbulleh Excerpts

Committee stage
Tuesday 21st October 2025 Public Bill Committees

[The Chair]

With this it will be convenient to discuss schedule 13.

[The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Miatta Fahnbulleh)]

Schedule 12 expands on existing powers in relation to the mayoral development orders in the Town and Country Planning Act 1990 to all mayors of strategic authorities. MDOs grant planning permission for development as an alternative to granting permission through a planning application. They are similar to local development orders, which Members will be familiar with and are used across the country.

Development orders are designed to enable up-front planning certainty for developers and communities. For example, the Gravity LDO in Somerset granted permission for advanced manufacturing facilities and a giga-battery factory is now under construction. We want to give mayors and strategic authorities the same opportunities so that they can support development, which will make a difference to growth and economic opportunities in their areas.

At the moment, only the Mayor of London can make an MDO; schedule 12 would expand that to all mayors. It also streamlines the MDO process. Currently, an MDO needs to be requested by each relevant local planning authority, and their consent is needed before the mayor can consult on the draft order. Schedule 12 removes those limitations. That does not mean that local planning authorities are cut out of the process; they will still be consulted and their approval will be sought for making the order.

In practice, we expect to see local planning authorities and mayors working closely in partnership. However, we recognise that there may be instances where a mayor and a local planning authority cannot agree. Proposed new section 61DCA of the Town and Country Planning Act allows a mayor to request that the Secretary of State consider an order where local planning authority approval is not given. These provisions set the framework; the detailed process for making an order will be set out in secondary legislation, which we will consult on.

Schedule 13 contains consequential amendments to other legislation, which are necessary for the provisions under clauses 31 and 32. I hope that Members will agree that this measure will be an important tool for mayors in delivering the housing and the economic growth and development that we want to see across the country. I commend schedules 12 and 13 to the Committee.

[The Chair]

In the absence of Mr Simmonds, I call Mr Holmes.

[Paul Holmes (Hamble Valley) (Con)]

I will do my best not to disappoint you, Sir John, or the Minister or Government Back Benchers. I welcome the Minister to her place and hope that she feels refreshed after last night’s late sitting; we will try to make this as easy as possible.

In relation to schedules 12 and 13, this is a standard procedure used by the Mayor of London. We see this as a perfectly sensible proposal that unifies the regulations with those existing in London. I will just say this to the Minister, if I can without disappointing her. On proposed new section 61DCA, the Minister outlined that the Secretary of State could direct or issue an order, should local authorities not agree to a mayoral development order. I understand that details will come out in secondary legislation, which is perfectly acceptable, but could she outline to the Committee the balance of power? As I think the Minister respectfully acknowledges, we have been consistently worried that, if this is supposed to be a true devolution Bill, giving power to the Secretary of State to order or issue kind of breaks the spirit of that devolution.

Could the Minister give the Committee some reassurance that the views and objections of local authorities would be taken into proper consideration? What would that balance of power be, should the Secretary of State have to use that order? We do, however, see this as a perfectly reasonable schedule, and will not seek to divide the Committee on it.

[Miatta Fahnbulleh]

I thank the hon. Member for supporting the measure. In the event that there is not consensus between a constituent authority and the mayoral strategic authority, it would go up to the Secretary of State in the way that planning applications do currently. The Planning Inspectorate will review it based on its planning merits, in the light of issues and objections that have been raised locally, and the full suite of evidence. It is consistent with the current process for planning applications that are called in. We think this will essentially standardise what we do for individual local authorities currently.

Question put and agreed to.

Schedule 12 accordingly agreed to.

Schedule 13 agreed to.

Clause 33

Power to charge community infrastructure levy

Question proposed, That the clause stand part of the Bill.

[The Chair]

With this it will be convenient to discuss the following:

Amendment 289, in schedule 14, page 170, line 15, at end insert—

“, and

(b) must, as far as it relates to the exercise of the mayor’s functions as a charging authority, publish details of—

(i) each instance in which CIL has been charged,

(ii) how much has been raised by the charging of CIL, and

(iii) the impact on delivery of housing infrastructure development.”

This amendment would ensure that mayors charging CIL reported on the effect that this has on housing development.

Schedule 14.

New clause 1—Community infrastructure levy charges: guidance—

“(1) The Secretary of State must, within six months of the passing of this Act, prepare and publish guidance for charging authorities on—

(a) the implementation and administration of community infrastructure levy charges;

(b) appropriate procedures for handling technical errors in the calculation, notification, or collection of community infrastructure levy charges; and

(c) best practice for resolving disputes relating to community infrastructure levy charges where technical errors have occurred.

(2) The guidance under subsection (1) must include—

(a) guidance on what constitutes a technical error in the context of community infrastructure levy charges;

(b) recommended procedures for reviewing and, where appropriate, waiving or reducing community infrastructure levy charges where a technical error has occurred;

(c) principles to guide the proportionate collection of community infrastructure levy payments when technical errors have been identified; and

(d) time limits for the rectification of technical errors.

(3) In this section—

“charging authority” has the meaning given in section 106 of the Planning Act 2008, as amended by Schedule 14 of this Act;

“technical error” means an error in the calculation, notification, or administration of a Community Infrastructure Levy charge that is not related to a material change in the development to which the charge applies.”

New clause 28—Application of CIL to householders—

“(1) The Planning Act 2008 is amended as follows.

(2) In section 205 (The Levy) after subsection (2) insert—

“(2A) In making the regulations, the Secretary of State may not charge CIL on householders’ property extensions that are for their own use.

(2B) The Secretary of State must amend the Community Infrastructure Regulations 2010 so that they are in accordance with the requirements of subsection (2A).””

This new clause disapplies CIL from householders extending property for their own use.

[Miatta Fahnbulleh]

Clause 33 and schedule 14 will give mayors of strategic authorities the ability to raise a mayoral community infrastructure levy, or MCIL. I am sure Members will be aware that the Mayor of London’s ability to charge MCIL in London was critical to funding delivery of the fantastic Elizabeth Line. We want to extend the same power to other regional mayors so that they too can fund vital infrastructure that will drive growth and create opportunities in their areas.

The power will not be unconstrained. Mayors will need to have a spatial development strategy in place, meaning that they will have to have a clear plan for meeting overall housing and development targets in their area. Mayors will also need to develop and introduce a CIL charging schedule, which will undergo public consultation, examination and approval. That means that the levy rates that apply to MCIL will strike an appropriate balance between supporting development through infrastructure provision and the potential effect on viability of development. We will provide further detail on what MCIL can be spent on through regulations.

[Siân Berry (Brighton Pavilion) (Green)]

It is a pleasure to have you back in the Chair today, Sir John. I support the clause and schedule 14. It is really important that we have devolved fundraising powers, and this is one of the ways in which that can be done.

I have a question for the Minister about the rules for what mayoral CIL in different areas can be levied to fund. In London, the current regulations restrict spending by the mayor to funding roads or other transport facilities. Is the Minister making changes in the Bill, or will she do so through regulations?

[Paul Holmes]

I will speak to amendment 289, in the name of my hon. Friend the Member for Ruislip, Northwood and Pinner, on behalf of the official Opposition. I will also briefly speak to new clause 1. The hon. Lady has just very expertly outlined why the Government should accept it, and the official Opposition agree with her. She is absolutely correct that CIL, although a very good thing, is—not always intentionally, but sometimes negligently—being used in inappropriate ways. Just last week, my right hon. Friend the Member for Godalming and Ash (Sir Jeremy Hunt) mentioned a case in his constituency with his local authority, where somebody was being charged £70,000. That is clearly unacceptable.

Any measure that could improve the regulation and guidance to local authorities, not necessarily to restrict them but to give them clarity—it would also slightly pull on the tail of their coat, so they do not act irresponsibly to people who are responsibly improving their homes—is a good thing. We will therefore be supporting new clause 1 if the hon. Lady chooses to press that to a vote. It clearly does not place an undue burden on the Secretary of State, and it would mean that the system would become more streamlined and transparent. It would give protection to people who are doing the right thing and ensuring that they are following the rules, but the rules are clearly being interpreted in different ways.

Amendment 289, in my name and that of my hon. Friend the Member for Ruislip, Northwood and Pinner, would ensure that the mayors charging CIL report on the effect that this has on housing development. Similarly to new clause 1, we do not think that that would place an undue burden on the legislation or on the necessary parties because, where the community infrastructure levy is being used at the moment, there clearly is a lack of transparency on what it is delivering for local people. The amendment will improve the transparency that mayors and local authorities would be bringing to the table.

CIL is meant to improve infrastructure and make sure that housing is delivered. We have seen across the country places where existing mayors are not necessarily delivering on their housing commitment, particularly in London. We argue that this amendment would bring transparency because a mayor has to account for how they are using CIL and the effect that that would have on housing development in a city region that they control. We think that is a perfectly reasonable amendment.

For that reason, we will press amendment 289 to a vote, and if the hon. Lady the Member for Mid Dorset and North Poole chooses to press new clause 1 to a vote, we will certainly support that today.

[Miatta Fahnbulleh]

I will start by addressing some of the questions that were raised, and then move to amendment 289 and new clause 1. There is a key question of how to ensure that the mayoral strategic CIL does not undercut local CILs. The mayor will have to have regard to local CILs that are already being issued, to ensure that there is a balance. The CIL proposal will need to be done in the context of viability assessments, so the mayor will need to think about what is happening at the parish, town and local authority levels in terms of CIL before a strategic CIL is put in place. It is also worth noting that the charging schedule will be subject to statutory consultation. Again, that is another provision to ensure that the right balance is being struck.

The hon. Member for Mid Dorset and North Poole asked what the CIL will be used for. That will be set out in regulations, but we are clear, up front, that it will be for vital infrastructure that can unlock growth and economic development. Therefore, there will be broader permissiveness within that, but we will set that out in further regulations.

On amendment 289, while I fully support the need for transparency in the use of developer contributions to ensure accountability, the amendment is unnecessary because it duplicates existing regulatory requirements. All contribution-receiving authorities are already required to publish an infrastructure funding statement each year. This annual statement must include details on the amount of CIL collected and spent, and information on infrastructure projects funded, or intended to be funded, by CIL.

The CIL regulations are already very prescriptive about what must be included within an infrastructure funding statement. Introducing further reporting obligations is not necessary and potentially risks confusing things and increasing the administrative burdens on strategic authorities.

Finally, we have an additional safeguarding provision: the Planning Act 2008 provides a power for the Secretary of State to make regulations to amend existing reporting requirements, or create new requirements, if it is determined that existing arrangements are not necessary. We think that we already have sufficient provisions within existing legislation, which means that amendment 289 is not required.

[Lewis Cocking (Broxbourne) (Con)]

We are talking about a mayoral CIL reset, but some local authorities will not introduce a CIL because they get far more out of section 106 negotiations. Will mayors be able to take part in 106 negotiations if they do not bring in their own CIL? If not, why not?

[Miatta Fahnbulleh]

Ultimately section 106 will remain with local authorities. I hope that the process of developing a strategic spatial plan means that the mayor and constituent authorities have already had the conversation about housing development and critical infrastructure that needs to sit alongside it, and how that will be well funded. The CIL is a complementary tool that will sit alongside section 106 and other tools that sit with the local authority but, critically, all should be working toward a collective plan for the area that they have all fed into and engaged with. If that plan is done well, there will be consensus across the piece.

Although I completely appreciate the intentions behind new clause 1—to promote consistency and best practice in how the CIL is administered—they are already achieved under existing legislation and statutory guidance. Regulation already includes provisions for correcting errors in CIL charges, including by issuing revised liability notices and demand notices. There are also clear routes of review and appeal, initially to the local authority itself, but also to the Valuation Office Agency in certain cases, and to the Planning Inspectorate. Those are well established, effective safeguards that are used where developers believe that an error has been made. In addition, the Planning Act 2008 allows a Secretary of State to give guidance to charging authorities or other public authorities about any matter connected with CIL, and the authority must have regard to that guidance. For those reasons, I hope that the hon. Member will feel able to withdraw the amendment.

--- Later in debate ---

[Paul Holmes]

I cannot comment on the motivations of the Minister, who I believe is an hon. Lady of utmost integrity, but I suspect that the Government want to amend the Bill on their own terms. The hon. Member for Mid Dorset and North Poole and I both speak for Opposition parties, but we would not make hay if the Minister chose to accept these new clauses. The Government have a position, stated on the Floor of the House of Commons, that CIL is not working for people who tried to follow the rules but are being persecuted and in many cases prosecuted by local authorities, through the wrong charging mechanisms being applied. The Minister outlined the mitigation and the appeal infrastructure that people can currently use, but they are not working either. New clause 1—an admirable new clause—and new clause 28 would make it very clear that people in that situation cannot be charged the CIL.

The Minister is in charge. She has the power to accept the new clauses and improve the legislation to change the lives of people who face injustice every day in the current system. I absolutely accept that the last Government did not do it, but she has a simple choice today: accept these new clauses, change the situation, and make sure that people do not have to go through what these people have been going through. I encourage her to accept these new clauses in the spirit of co-operation and tripartisanship—[Interruption.] Quadripartisanship! We would genuinely support her in doing that.

[Miatta Fahnbulleh]

First, I thank hon. Members for tabling these amendments and for raising the issue. I assure the Committee that we know there is a problem here. We are alive to the cases that have arisen, which demonstrate that the CIL, as it should apply, is not working in practice. Although exemptions exist, they are not being applied in the way that they ought to be.

We are giving careful consideration to this matter as part of our commitment to develop a far clearer and more effective contribution system. As I said, I completely appreciate that the intention behind the amendments is to protect a segment of the market that we want to protect; it ought to exempted. I can clearly confirm that we are looking seriously at this matter and we will revert to it at a later stage, so I ask hon. Members not to press their amendments to allow the Government time to consider it properly.

--- Later in debate ---

Question proposed, That the clause stand part of the Bill.

[Miatta Fahnbulleh]

Clause 34 introduces schedule 15, which contains provisions to enable strategic authorities outside London to undertake their housing and strategic planning competences. These standardise the extension of powers relating to the acquisition and use of land currently held by Homes England and local authorities to strategic authorities outside London.

[Paul Holmes]

The Minister has outlined the clause and set out the responsibilities and changes she wants to make in a very reasonable manner. This seems a perfectly sensible solution; it encourages more transparency and accountability in some of the actions that Homes England undertakes. People in my constituency feel that some of the money allocated to development through the current channels of scrutiny and planning is not necessarily in lockstep with what they want for their local areas. As I have said throughout, a devolution Bill should mean true devolution, so I think these responsibilities coming under the remit of the new authorities is a good thing. I welcome this addition to the legislation.

Question put and agreed to.

Clause 34 accordingly ordered to stand part of the Bill.

Schedule 15

Acquisition and development of land

[Miatta Fahnbulleh]

I beg to move amendment 109, in schedule 15, page 173, line 7, leave out paragraph (a) and insert—

“(a) in subsection (1), after ‘HCA’ insert ‘or a strategic authority outside London’;

(aa) in subsection (2), after ‘HCA’ insert ‘or a strategic authority outside London’;”

This would alter the amendment of section 9(2) so that the function there would not be conferred on the GLA (only on strategic authorities outside London).

[The Chair]

With this it will be convenient to discuss the following:

Government amendments 110, 111, 127 and 128.

[Miatta Fahnbulleh]

The Bill gives the Greater London Authority, as well as other strategic authorities, the powers of Homes England to acquire land both by agreement and by compulsory purchase. Government amendments 109 to 111 change that, ensuring that the power is conferred only on strategic authorities outside London. This is because the Greater London Authority already has similar powers under the Greater London Authority Act 1999, and so does not need the additional powers, and duplicating powers could create legal uncertainty and confusion. We are providing greater certainty by clarifying these provisions.

Similarly, the Bill provides that part 1 of the Compulsory Purchase Act 1965 applies to all strategic authorities, as well as Homes England. Government amendment 127 clarifies that this should be applied only to strategic authorities outside London, as functions of Homes England are to be conferred only on those authorities. Again, The Greater London Authority already has similar powers to acquire land by agreement through the Greater London Authority Act.

Government amendment 128 would place conditions on how strategic authorities outside London use land that is not consecrated or a burial ground and that at the time it was acquired had a building being used or previously used for religious worship. The use of this type of land is subject to prescribed requirements about the disposal of monuments. This is in addition to the requirement extended in relation to land that contains burial grounds or consecrated land, which is already extended by schedule 15(10).

At present, this provision applies only to land acquired by Homes England, and the amendment would extend it to strategic authorities. This change ensures consistency in how land powers are applied across different public bodies. This is a small change, but it is necessary to ensure that the legislation works properly and longstanding protections are not lost.

Amendment 109 agreed to.

Amendments made: 110, in schedule 15, page 173, lineusb 11, leave out from “on” to end of line 12 and insert “strategic authorities outside London.”

This would be consequential on Amendment 109.

Amendment 111, in schedule 15, page 173, leave out lines 19 to 21.—(Miatta Fahnbulleh.)

This would be consequential on Amendment 109.

[Miatta Fahnbulleh]

I beg to move amendment 112, in schedule 15, page 173, line 30, leave out “authorities” and insert “councils”.

This would change the provision to use the correct term “constituent council”.

[The Chair]

With this it will be convenient to discuss Government amendments 114, 115, 117, 119, 120, 131, 133, 134, 136, 138, 139, 159, 161, 162, 164, 166 and 167.

[Miatta Fahnbulleh]

These amendments make a series of technical corrections to ensure that the Bill uses the correct terminology. They replace the word “authority” or “authorities” with “council” or “councils” in several places in schedules 15 and 16. The change is important because the term “constituent council” or “councils” is the defined and accurate term used elsewhere in the legislation for the local authorities that form part of the combined authority or the combined county authority.

Using consistent language helps to ensure that the Bill is clear, legally precise and easy to interpret, and avoids confusion about which bodies are being referred to. The amendments do not change the substance of, or intent behind, any of the provisions; they simply improve their clarity and consistency, and hopefully result in a lack of confusion—although I am not clear that they do—in the drafting. I encourage the Committee to support the amendments, to help to maintain the accuracy and integrity of the Bill.

Amendment 112 agreed to.

[Miatta Fahnbulleh]

I beg to move amendment 113, in schedule 15, page 173, line 31, at end insert—

“(c) the Broads Authority.”

This would make the Broads Authority a consultee if any of the land proposed for compulsory acquisition is in its area.

[The Chair]

With this it will be convenient to discuss Government amendments 116, 118, 121, 123, 125, 132, 135, 137, 140, 160, 163, 165, 168 and 169.

[Miatta Fahnbulleh]

These amendments add the Broads Authority to the list of bodies that must be consulted by mayoral strategic authorities or provide their consent to non-mayoral strategic authorities before land in its area is compulsorily acquired using powers devolved by the Bill. The broads are a nationally important landscape with equivalent status to a national park, and the Broads Authority is best placed to advise on the potential impact of land acquisition in its area. This is about ensuring proper engagement with the right bodies when decisions affecting sensitive and protected areas are made. That reflects the approach already used by existing authorities and ensures that all constituent councils have a clear and accountable role in the decision-making process.

Amendment 113 agreed to.

[The Chair]

We are moving ahead with alacrity, are we not?

Amendments made: 114, in schedule 15, page 173, line 36, leave out “authorities” and insert “councils”.

This would change the provision to use the correct term “constituent council”.

Amendment 115, in schedule 15, page 173, line 38, leave out “authority” and insert “council”.

This would change the provision to use the correct term “constituent council”.

Amendment 116, in schedule 15, page 173, line 39, at end insert—

“(d) the Broads Authority.”

This would make the Broads Authority a consultee if any of the land proposed for compulsory acquisition is in its area.

Amendment 117, in schedule 15, page 174, line 5, leave out “authorities” and insert “councils”.

This would change the provision to use the correct term “constituent council”.

Amendment 118, in schedule 15, page 174, line 6, at end insert—

“(c) the Broads Authority;

and consent of a constituent council must be given at a meeting of the combined authority.”

This would (i) require the consent of the Broads Authority if any of the land proposed for compulsory acquisition is in its area; and (ii) require consent of a constituent council to be given at a meeting of the combined authority.

Amendment 119, in schedule 15, page 174, line 11, leave out “authorities” and insert “councils”.

This would change the provision to use the correct term “constituent council”.

Amendment 120, in schedule 15, page 174, line 13, leave out “authority” and insert “council”.

This would change the provision to use the correct term “constituent council”.

Amendment 121, in schedule 15, page 174, line 14, at end insert—

“(d) the Broads Authority;

and consent of a constituent council must be given at a meeting of the CCA.”—(Miatta Fahnbulleh.)

This would (i) require the consent of the Broads Authority if any of the land proposed for compulsory acquisition is in its area; and (ii) require consent of a constituent council to be given at a meeting of the CCA.

[Miatta Fahnbulleh]

I beg to move amendment 122, in schedule 15, page 174, line 15, after “council” insert

“that is a strategic authority”.

This would clarify that subsection (8) applies to a county council only if it is a strategic authority (in line with the application provision in subsection (1) of the new section 9A).

[The Chair]

With this it will be convenient to discuss Government amendment 124.

[Miatta Fahnbulleh]

These amendments are, again, about making the legislation clearer and more consistent. They confirm that only councils that are strategic authorities are subject to the additional consent requirements when using the compulsory purchase powers in the Housing and Regeneration Act 2008. This matches what was already set out in subsection (1) of proposed new section 9A of that Act.

Without those changes, there would be confusion about whether all county and district councils are included. That is not the intention: these provisions are meant to apply only where councils are designated as strategic authorities. The amendment is helpful to avoid misinterpretation and ensure that the Bill is applied as intended.

Amendment 122 agreed to.

Amendments made: 123, in schedule 15, page 174, line 20, at end insert—

“(c) the Broads Authority.”

This would require the consent of the Broads Authority if any of the land proposed for compulsory acquisition is in its area.

Amendment 124, in schedule 15, page 174, line 21, after “council” insert

“that is a strategic authority”.

This would clarify that subsection (9) applies to a district council only if it is a strategic authority (in line with the application provision in subsection (1) of the new section 9A).

Amendment 125, in schedule 15, page 174, line 22, leave out from “any” to end of line 24 and insert

“of the following bodies whose area contains any part of the land subject to the proposed compulsory acquisition—

(a) any National Park authority;

(b) the Broads Authority.”—(Miatta Fahnbulleh.)

This would make the Broads Authority a consultee if any of the land proposed for compulsory acquisition is in its area.

[Miatta Fahnbulleh]

I beg to move amendment 126, in schedule 15, page 174, line 29, at end insert—

“Main powers in relation to acquired land

6A In section 11, omit ‘by the HCA’.”

This would reflect the effect of the Bill on Schedule 3 to the Housing and Regeneration Act 2008.

This technical amendment again ensures consistency in how the Bill amends existing legislation. It removes the words “by the HCA” from a reference in section 11 of the Housing and Regeneration Act 2008 to schedule 3 to that Act. In paragraph 10 of schedule 15 to the Bill, “by the HCA” is already being removed from the heading of schedule 3 to the 2008 Act. This change aligns with that. The original wording refers specifically to Homes England, and no longer reflects the full range of bodies that may exercise those powers under the Bill.

This amendment ensures the legislation is clear and accurate, and I encourage the Committee to support it to ensure that we have clarity and consistency across our legislation.

Amendment 126 agreed to.

Amendments made: 127, in schedule 15, page 177, line 2, after “authority” insert “outside London”.

This would alter the amendment of paragraph 17(1) so that the function there would not be conferred on the GLA (only on strategic authorities outside London).

Amendment 128, in schedule 15, page 177, line 22, at end insert—

“(8) In paragraph 21 (other land connected to religious worship), in sub-paragraph (1), after ‘HCA’ insert ‘or a strategic authority outside London’.”—(Miatta Fahnbulleh.)

This would provide for paragraph 21 of Schedule 3 to the Housing and Regeneration Act 2008 to apply in relation to land acquired by a strategic authority outside London. It allows for restrictions on the use of land that was connected to religious worship but was neither consecrated nor a burial ground.

[Miatta Fahnbulleh]

I beg to move amendment 129, in schedule 15, page 179, line 34, leave out from “(6)” to end of line 4 on page 180 and insert—

“(a) in paragraph (bb), omit ‘and’;

(b) after paragraph (c) insert—

‘(d) if the land is in the area of a strategic authority to whom this section applies, consult with that strategic authority (in addition to any other consultation required by this subsection).’”

This would require the Secretary of State to consult a strategic authority (as well as the local authority) before authorising a compulsory acquisition

[The Chair]

With this it will be convenient to discuss Government amendments 130, 143 and 152 to 154.

[Miatta Fahnbulleh]

Amendment 129 revises the consultation process when the Secretary of State is authorising the compulsory acquisition of land. It removes a provision that would have required consultation with a strategic authority instead of the relevant local councils, and adds instead a requirement to consult the strategic authority as well as the councils where the land is located. This ensures that both local and strategic authorities are involved in decisions affecting land in their area. It is a practical and balanced amendment.

Amendment 130 removes the provision that makes the mayor the person responsible for exercising the compulsory acquisition of land function in the Town and Country Planning Act 1990. Instead, the powers will be exercised by the mayoral combined authority or mayoral combined county authority. This is consistent with how the function is currently exercised in most existing mayoral strategic authorities, where decisions about how to use the function are taken collectively. The amendment does not affect the ability of authorities to make timely and effective decisions on land acquisition; it simply ensures that there is collective buy-in behind the decision.

Amendments 143, 153 and 154 ensure that all local authorities, non-mayoral combined authorities and non-mayoral combined county authorities have access to the same powers and restrictions in relation to acquiring and using land under the Town and Country Planning Act. At present, only mayoral combined authorities and mayoral combined county authorities are covered by these provisions, because they are included in the Act’s definition of local authorities. This creates an unnecessary gap in the legislation, which the amendments seek to close. These are technical but important changes that support fairness, consistency and effective delivery across all areas with devolved powers.

Finally, amendment 152 is again technical, but is an important clarification to ensure that the Bill works as intended. It updates the wording to confirm that the proposed new subsection (4) contained in paragraph 21 of schedule 15 applies to both section 238 and section 239 of the Town and Country Planning Act. These sections deal with the use and development of consecrated land and burial grounds. This is a technical amendment that ensures consistency and accuracy across all our legislation.

Amendment 129 agreed to.

Amendments made: 130, in schedule 15, page 180, leave out lines 10 to 13.

This would remove the provision under which the compulsory acquisition function of a mayoral combined authority or CCA is exercisable by the mayor (so that it would be exercisable by the combined authority or CCA itself).

Amendment 131, in schedule 15, page 180, line 18, leave out “authorities” and insert “councils”.

This would change the provision to use the correct term “constituent council”.

Amendment 132, in schedule 15, page 180, line 19, at end insert—

“(c) the Broads Authority.”

This would make the Broads Authority a consultee if any of the land proposed for compulsory acquisition is in its area.

Amendment 133, in schedule 15, page 180, line 24, leave out “authorities” and insert “councils”.

This would change the provision to use the correct term “constituent council”.

Amendment 134, in schedule 15, page 180, line 26, leave out “authority” and insert “council”.

This would change the provision to use the correct term “constituent council”.

Amendment 135, in schedule 15, page 180, line 27, at end insert—

“(d) the Broads Authority.”

This would make the Broads Authority a consultee if any of the land proposed for compulsory acquisition is in its area.

Amendment 136, in schedule 15, page 180, line 32, leave out “authorities” and insert “councils”.

This would change the provision to use the correct term “constituent council”.

Amendment 137, in schedule 15, page 180, line 33, at end insert—

“(c) the Broads Authority;

and consent of a constituent council must be given at a meeting of the combined authority.”

This would (i) require the consent of the Broads Authority if any of the land proposed for compulsory acquisition is in its area; and (ii) require consent of a constituent council to be given at a meeting of the combined authority.

Amendment 138, in schedule 15, page 180, line 38, leave out “authorities” and insert “councils”.

This would change the provision to use the correct term “constituent council”.

Amendment 139, in schedule 15, page 180, line 40, leave out “authority” and insert “council”.

This would change the provision to use the correct term “constituent council”.

Amendment 140, in schedule 15, page 181, line 1, at end insert—

“(d) the Broads Authority;

and consent of a constituent council must be given at a meeting of the CCA.”—(Miatta Fahnbulleh.)

This would (i) require the consent of the Broads Authority if any of the land proposed for compulsory acquisition is in its area; and (ii) require consent of a constituent council to be given at a meeting of the CCA.

[Miatta Fahnbulleh]

I beg to move amendment 141, in schedule 15, page 181, line 10, leave out “combined authority or” and insert

“non-mayoral combined authority or non-mayoral”.

Mayoral combined authorities and CCAs do not need to be added to this section as they are already within the definition of “local authority” in section 336 of the Town and Country Planning Act 1990 (as precepting authorities).

[The Chair]

With this it will be convenient to discuss Government amendments 142 and 144 to 151.

[Miatta Fahnbulleh]

These amendments make a small but important clarification to part 2 of schedule 15. They ensure that the provisions explicitly insert only references to non-mayoral combined authorities and non-mayoral combined county authorities. This is because mayoral combined authorities and mayoral combined county authorities already have these powers conferred upon them by the Town and Country Planning Act 1990. Specifically, they fall within the definition of “local authorities”, so including them is unnecessary. These amendments do not remove any powers from mayoral combined authorities or mayoral combined county authorities; instead, they are small, technical amendments that simplify and clarify, and they are important for the consistency and coherence of the Bill.

Amendment 141 agreed to.

Amendments made: 142, in schedule 15, page 181, line 13, leave out “combined authority or” and insert

“non-mayoral combined authority or non-mayoral”.

Mayoral combined authorities and CCAs do not need to be added to this section as they are already within the definition of “local authority” in section 336 of the Town and Country Planning Act 1990 (as precepting authorities).

Amendment 143, in schedule 15, page 181, line 20, at end insert—

‘Power of Secretary of State to require acquisition or development of land

17A (1) Section 231 is amended in accordance with this paragraph.

(2) In subsection (1)—

(a) after “borough” insert “, or a combined authority or CCA,”;

(b) after the second “council” insert “or combined authority or CCA”.

(3) In subsection (2), after “local authority” insert “or a non-mayoral combined authority or non-mayoral CCA”.’

This would extend the application of section 231 so that all combined authorities and CCAs are within its scope. (Mayoral combined authorities and CCAs are already within subsection (2) as “local authorities” as defined in section 336 of the TCPA 1990.)

Amendment 144, in schedule 15, page 181, line 23, leave out “combined authority or” and insert

“non-mayoral combined authority or non-mayoral”.

Mayoral combined authorities and CCAs do not need to be added to this section as they are already within the definition of “local authority” in section 336 of the Town and Country Planning Act 1990 (as precepting authorities).

Amendment 145, in schedule 15, page 181, line 27, leave out “combined authority or” and insert

“non-mayoral combined authority or non-mayoral”.

Mayoral combined authorities and CCAs do not need to be added to this section as they are already within the definition of “local authority” in section 336 of the Town and Country Planning Act 1990 (as precepting authorities).

Amendment 146, in schedule 15, page 182, line 3, leave out “combined authority or” and insert

“non-mayoral combined authority or non-mayoral”.

Mayoral combined authorities and CCAs do not need to be added to this section as they are already within the definition of “local authority” in section 336 of the Town and Country Planning Act 1990 (as precepting authorities).

Amendment 147, in schedule 15, page 182, line 5, leave out “combined authority or” and insert

“non-mayoral combined authority or non-mayoral”.

Mayoral combined authorities and CCAs do not need to be added to this section as they are already within the definition of “local authority” in section 336 of the Town and Country Planning Act 1990 (as precepting authorities).

Amendment 148, in schedule 15, page 182, line 11, leave out “combined authority or” and insert

“non-mayoral combined authority or non-mayoral”.

Mayoral combined authorities and CCAs do not need to be added to this section as they are already within the definition of “local authority” in section 336 of the Town and Country Planning Act 1990 (as precepting authorities).

Amendment 149, in schedule 15, page 182, line 13, leave out “combined authority or” and insert

“non-mayoral combined authority or non-mayoral”.

Mayoral combined authorities and CCAs do not need to be added to this section as they are already within the definition of “local authority” in section 336 of the Town and Country Planning Act 1990 (as precepting authorities).

Amendment 150, in schedule 15, page 182, line 16, leave out “combined authority or” and insert

“non-mayoral combined authority or non-mayoral”.

Mayoral combined authorities and CCAs do not need to be added to this section as they are already within the definition of “local authority” in section 336 of the Town and Country Planning Act 1990 (as precepting authorities).

Amendment 151, in schedule 15, page 182, line 18, leave out “combined authority or” and insert

“non-mayoral combined authority or non-mayoral”.

Mayoral combined authorities and CCAs do not need to be added to this section as they are already within the definition of “local authority” in section 336 of the Town and Country Planning Act 1990 (as precepting authorities).

Amendment 152, in schedule 15, page 182, line 24, leave out from “In” to “compulsorily” in line 27 and insert

“sections 238 and 239 ‘relevant acquisition or appropriation’ also includes an acquisition made by a combined authority or CCA under this Part or”.

This would provide for the new subsection (4) to apply to section 238 (as well as section 239); and would remove the reference to the Planning (Listed Buildings and Conservation Areas) Act 1990 as this does not apply to combined authorities or CCAs.

Amendment 153, in schedule 15, page 182, line 35, at end insert—

‘Overriding of rights of possession

22A In section 242, in paragraph (a), after “authority” insert “or a non-mayoral combined authority or non-mayoral CCA”.

Constitution of joint body to hold land for planning purposes

22B In section 243, in subsection (1)—

(a) for “local authorities concerned” substitute “authorities concerned”;

(b) for “local authority for planning purposes” substitute “local authority, or non-mayoral combined authority or non-mayoral CCA, for planning purposes;

(c) for “any other local authority” substitute “any other local authority, non-mayoral combined authority or non-mayoral CCA”.’

This would extend the application of sections 242 and 243 so that all combined authorities and CCAs are within their scope. (Mayoral combined authorities and CCAs are already within their scope as “local authorities” as defined in section 336 of the TCPA 1990.)

Amendment 154, in schedule 15, page 183, line 3, at end insert—

‘Extinguishment of rights of statutory undertakers: preliminary notices

23A (1) Section 271 is amended in accordance with this paragraph.

(2) In the following provisions, for “local authority” substitute “relevant authority”—

(a) subsection (1) (in both places);

(b) subsection (5) (in the words before paragraph (a)).

(3) After subsection (8) insert—

“(9) In this section ‘relevant authority’ means—

(a) a local authority, or

(b) a non-mayoral combined authority or non-mayoral CCA.”

Extinguishment of rights of electronic communications code network operators: preliminary notices

23B (1) Section 272 is amended in accordance with this paragraph.

(2) In the following provisions, for “local authority” substitute “relevant authority”—

(a) subsection (1) (in both places);

(b) subsection (5) (in the words before paragraph (a)).

(3) After subsection (8) insert—

“(9) In this section ‘relevant authority’ means—

(a) a local authority, or

(b) a non-mayoral combined authority or non-mayoral CCA.”

Orders under sections 271 and 272

23C In section 274, in subsection (3), for “local authority” substitute “relevant authority”.

Extension or modification of functions of statutory undertakers

23D (1) Section 275 is amended in accordance with this paragraph.

(2) In the following provisions, for “local authority” substitute “relevant authority”—

(a) subsection (1)(a);

(b) subsection (3) (in all three places);

(c) subsection (5)(c).

(3) After subsection (5) insert—

“(6) In this section ‘relevant authority’ means—

(a) a local authority, or

(b) a non-mayoral combined authority or non-mayoral CCA.”

Procedure in relation to orders under section 275

23E In section 276, in subsection (1), in the words before paragraph (a), for “local authority” substitute “relevant authority”.

Objections to orders under sections 275 and 277

23F In section 278, in subsection (7), for “local authority” substitute “relevant authority”.

Contributions by local authorities and statutory undertakers

23G (1) Section 306 is amended in accordance with this paragraph.

(2) In the following provisions, for “local authority” substitute “relevant authority”—

(a) the heading;

(b) subsection (1) (in the words before paragraph (a) and in paragraph (c));

(c) subsection (2) (in the words before paragraph (a));

(d) subsection (3) (in both places);

(e) subsection (4).

(3) After subsection (6) insert—

“(7) In this section ‘relevant authority’ means—

(a) a local authority, or

(b) a non-mayoral combined authority or non-mayoral CCA.”’—(Miatta Fahnbulleh.)

This would extend the application of these sections so that all combined authorities and CCAs are within their scope. (Mayoral combined authorities and CCAs are already within their scope as “local authorities” as defined in section 336 of the TCPA 1990.)

Schedule 15, as amended, agreed to.

Clause 35

Housing accommodation

Question proposed, That the clause stand part of the Bill.

[The Chair]

With this it will be convenient to discuss the following:

Government amendments 155 to 158 and 170.

Schedule 16.

[Miatta Fahnbulleh]

Housing is a national priority for this Government, and these provisions play an important role in enabling strategic authorities to contribute meaningfully to this core mission. This is particularly true where regional leadership is needed to unlock delivery. These provisions enable strategic authorities to assess housing demand, provide amenities and acquire land. Land may be acquired compulsorily, subject to consultation in the case of mayoral strategic authorities, and via consent, in the case of non-mayoral strategic authorities. I believe this drives cohesive regional solutions.

Some may argue that local councils have sufficient powers, but the clause grants strategic authorities the scope for the transformational, region-wide impact that I know Members across the House want to see. Clause 35 and schedule 16 harness proven powers to meet regional housing goals, and I commend them to the Committee.

--- Later in debate ---

[Paul Holmes]

I thank the hon. Gentleman for promoting me to Minister; I cannot wait for that to happen one day. I suspect that I will have more grey hair, and less hair. He is correct, and I am on the record as having spoken about this: the Building Safety Regulator is a barrier to building. I know that this is slightly out of scope, but I have offered to work with Ministers on a genuine cross-party basis to try to remove some of the burdens on the Building Safety Regulator, which I think has purview over too much that is not material to the delivery of housing.

I agree with the hon. Gentleman, but in terms of the current powers, the mayor is not delivering, and the Government are not delivering on their promise of 1.5 million homes. The Secretary of State yesterday said that his job would be on the line if he did not deliver the 1.5 million homes. I suspect that we will see a sacking in the not-too-distant future, because everybody in this country who is an expert in housing—there was a documentary on it just this week—says that the Government will not achieve their stated aim of building that number of homes.

The clause in itself is not a panacea that will unlock huge housing growth in our cities. The Minister should be careful not to overpromise and underdeliver, as her mayors consistently do across the country. However, we know that this is a unification and simplification of the system. We will not divide the Committee on the clause. This is a perfectly sensible solution, but let us not pretend that it is a sledgehammer that will crack a nut, and cause the Government to achieve their aims across the country.

[Miatta Fahnbulleh]

It would be remiss of me not to address some of the issues in London. We recognise that we have a housing challenge in London and across the country. I suggest that the hon. Member show a little more humility, because the consequences are the legacy of the Conservative party. He did not mention that the Conservatives in government slashed housing targets across the country, which throttled development; or that they crashed the economy and caused mortgages to rise, which had an impact on demand. He did not mention their record on inflation, which increased construction costs.

Anyone who knows housing knows that there is a lag, so the impacts of the Conservative party’s failure—[Interruption.] The hon. Member solicited this by attacking our brilliant mayor. The Conservatives’ failures are feeding through, and we are now trying to accelerate progress. That is why record investment of £39 billion is going into social housing, and it is why we are seeing housing targets across the country. We are doing our part to get the country building again. Ultimately, we will be the ones to solve the housing crisis.

[Paul Holmes]

We really should not accept this party political broadcast. One million homes were built over the lifetime of the previous Parliament. Can the Minister explain to the Committee why housing delivery is at an all-time low? Why is it that experts in the housing sector, including the Home Builders Federation, say that the 1.5 million homes that the Government have promised simply cannot be delivered, and the Chancellor’s own figures show that only 1.1 million homes will be delivered? That is a failure on the promise that she made, is it not?

[Miatta Fahnbulleh]

If we look at a graph, we see that housing starts plummeted in 2023. I do not know whether the hon. Member wants to remind the Committee who was in power at that time—it was the Conservative party. We are trying to accelerate housing development, and we have a 1.5 million target that we are committed to delivering. That is not to underestimate the incredible difficulty, but we believe that homes are a requirement and a necessity. We have a homelessness crisis and a temporary accommodation crisis, so we have to get to grips with this. That is why we are doing the job of accelerating housing development. The amendments, and giving strategic authorities the powers that will enable them to play a role, are critical to that endeavour.

[The Chair]

I have been generous in allowing that debate to range rather more widely than might generally be thought acceptable. After all those technical amendments, we needed a bit of debate, did we not?

Question put and agreed to.

Clause 35 accordingly ordered to stand part of the Bill.

Schedule 16

Housing accommodation

Amendments made: 155, in schedule 16, page 184, line 17, at end insert—

“(1B) But if a local housing authority has complied with the duty imposed by subsection (1) in relation to a part of the area of a combined authority, CCA or two-tier county council, that strategic authority—

(a) does not need to comply with the duty imposed by subsection (1A) in relation to that part of its area; and

(b) may rely on the local housing authority’s consideration of the matters referred to in subsection (1) as if it were the strategic authority’s own consideration of those matters.”

This would remove the duty imposed by the new subsection (1A) where a local housing authority has already carried out the required consideration of housing conditions and enable the strategic authority to rely on the local housing authority’s consideration of housing matters.

Amendment 156, in schedule 16, page 184, line 24, at end insert—

‘Provision of housing accommodation

2A (1) Section 9 is amended in accordance with this paragraph.

(2) In subsection (1), in the words before paragraph (a), after “local housing authority” insert “, combined authority or CCA, or two-tier county council that is a strategic authority”.

(3) In subsection (4), for “A local housing authority” substitute “An authority”.

(4) In subsection (5), for “a local housing authority” substitute “an authority”.’

This would expand the application of section 9 so that combined authorities, CCAs and two-tier county councils that are strategic authorities are within its scope.

Amendment 157, in schedule 16, page 184, line 27, leave out from beginning to end of line 5 on page 185 and insert—

‘(1A) In subsection (1), for the words before paragraph (a) substitute—

“(1) A local housing authority, combined authority or CCA, or two-tier county council that is a strategic authority may provide in connection with the provision of housing accommodation under this Part (whether it is provided by that authority or another authority)—”

(1B) In subsection (4), for “A local housing authority” substitute “An authority”.’

This would enable a local housing authority, combined authority or CCA, or two-tier county council that is a strategic authority to provide board and laundry facilities in connection with accommodation, whether the accommodation is provided by that or another authority.

Amendment 158, in schedule 16, page 185, leave out lines 8 to 22 and insert—

‘(1A) In subsection (1), for the words before paragraph (a) substitute—

“(1) A local housing authority, combined authority or CCA, or two-tier county council that is a strategic authority may, with the consent of the Secretary of State, provide and maintain in connection with housing accommodation provided under this Part (whether it is provided by that authority or another authority)—”.

(1B) In subsection (3), for “the local housing authority” substitute “the authority”.’

This would enable a local housing authority, combined authority or CCA, or two-tier county council that is a strategic authority to provide shops etc in connection with accommodation, whether the accommodation is provided by that or another authority.

Amendment 159, in schedule 16, page 186, line 16, leave out “authorities” and insert “councils”.

This would change the provision to use the correct term “constituent council”.

Amendment 160, in schedule 16, page 186, line 17, at end insert—

“(c) the Broads Authority.”

This would make the Broads Authority a consultee if any of the land proposed for compulsory acquisition is in its area.

Amendment 161, in schedule 16, page 186, line 22, leave out “authorities” and insert “councils”.

This would change the provision to use the correct term “constituent council”.

Amendment 162, in schedule 16, page 186, line 24, leave out “authority” and insert “council”.

This would change the provision to use the correct term “constituent council”.

Amendment 163, in schedule 16, page 186, line 25, at end insert—

“(d) the Broads Authority.”

This would make the Broads Authority a consultee if any of the land proposed for compulsory acquisition is in its area.

Amendment 164, in schedule 16, page 186, line 30, leave out “authorities” and insert “councils”.

This would change the provision to use the correct term “constituent council”.

Amendment 165, in schedule 16, page 186, line 31, at end insert—

“(c) the Broads Authority;

and consent of a constituent council must be given at a meeting of the combined authority.”

This would (i) require the consent of the Broads Authority if any of the land proposed for compulsory acquisition is in its area; and (ii) require consent of a constituent council to be given at a meeting of the combined authority.

Amendment 166, in schedule 16, page 186, line 36, leave out “authorities” and insert “councils”.

This would change the provision to use the correct term “constituent council”.

Amendment 167, in schedule 16, page 186, line 38, leave out “authority” and insert “council”

This would change the provision to use the correct term “constituent council”.

Amendment 168, in schedule 16, page 186, line 39, at end insert—

“(d) the Broads Authority;

and consent of a constituent council must be given at a meeting of the CCA.”

This would require the consent of the Broads Authority if any of the land proposed for compulsory acquisition is in its area.

Amendment 169, in schedule 16, page 187, line 4, at end insert—

“(c) the Broads Authority.”

This would require the consent of the Broads Authority if any of the land proposed for compulsory acquisition is in its area.

Amendment 170, in schedule 16, page 187, line 12, leave out “(1)” and insert “(2)”. —(Miatta Fahnbulleh.)

This corrects the reference to the Housing Act 1985.

Schedule 16, as amended, agreed to.

Clause 36

Mayoral development corporations

Question proposed, That the clause stand part of the Bill.

[Miatta Fahnbulleh]

The clause grants mayors of strategic authorities outside London the power to create mayoral development corporations. They are another tool for mayors to enable regional regeneration and economic development. Stripping away these provisions would limit regional ambition. The clause gives effect to schedule 17, allowing mayoral development corporations to spearhead land acquisition, planning and infrastructure projects. This will help to foster jobs, unlock growth, drive infrastructure development and attract investment into our regions.

Question put and agreed to.

Clause 36 accordingly ordered to stand part of the Bill.

Schedule 17

Mayoral development corporations

[Paul Holmes]

I beg to move amendment 290, in schedule 17, page 193, line 2, at end insert—

“7A After section 202, insert—

‘202A: restrictions on designation of greenfield land

Where an MDC exercises any functions in relation to the designation of land for development, the MDC must not designate any development on greenfield land unless there is no available land that has not previously been developed.’”

I rise to speak to the amendment, which is in the name of my hon. Friend the Member for Ruislip, Northwood and Pinner. Although we welcome mayoral development corporations, since this Government came to office an environment has been created, if Members will forgive the pun, where it is easier to build in rural areas but harder to develop our urban centres. As we mentioned in a debate last week, the Government’s planning and building conditions are making it harder to densify urban centres. We have discussed the housing targets in rural and urban areas, and now mayoral development corporations are being created. That is perfectly acceptable, but we do not think it protects the green belt across this great green and pleasant land, and it will essentially allow mayors to build on greenfield land without the necessary checks and balances.

The amendment is simple. We tabled it because we want to make it much easier to build in areas of existing development where there is scope for densification, and we want to protect green belt and greenfield land by restricting building on it where many people to whom the mayor is accountable simply do not want that to happen. The amendment would not rule out such development completely, but it would make the MDC more streamlined and disciplined about unlocking areas where infrastructure exists and it is easier to build, rather than using green fields, where we believe development is more difficult and takes longer.

[Miatta Fahnbulleh]

I understand the intent behind the amendment. Mayoral development corporations are already subject to the national planning policy framework, which reflects the brownfield-first approach that the hon. Member has talked about, encourages densification where it makes sense and includes strong protections for greenfield land. We think the provisions already exist, because any mayoral development corporation must have regard to the national planning policy framework.

We believe it is important to give mayoral development corporations flexibility, however, because there will be instances, in the case of urban extensions or new towns, when the decision needs to be made to build on greenfield land. We think that the amendment would disproportionately restrict mayoral development corporations and place on them additional restrictions that do not apply to other bodies. Ultimately, it would reduce mayoral development corporations’ flexibility, slow down delivery and add unnecessary constraints on decision making. For that reason, we do not support it, and I ask the hon. Member to withdraw it.

[Paul Holmes]

I understand where the Minister is coming from, and I am inclined not to press the amendment to a Division but to treat it as probing. She is aware that I have long advocated for, and pushed her and the Government on, the incentivisation of densification. In our debate on amendment 304 last week, I think she reasonably accepted that a densification strategy was needed. She has come back to the NPPF today, but that is simply not working. We tabled amendment 304 and this amendment to solidify the position. We think that that is a perfectly reasonable approach to the guidance and regulations.

I hope for some reassurance from the Minister that she and the Government will look at further action regarding that incentivisation. If I get that reassurance, I will withdraw the amendment.

--- Later in debate ---

[Miatta Fahnbulleh]

I am happy to provide reassurance in writing.

[Paul Holmes]

I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

[Vikki Slade]

I beg to move amendment 60, in schedule 17, page 195, line 23, leave out from “that” to end of line 24 and insert

“the majority of members of an MDC are elected members of relevant councils”.

This amendment would require that the make-up of Mayoral Development Corporation boards must have a majority of members from constituent councils.

We welcome the introduction of the mayoral development corporations across the country. Some good successes have been achieved in London; not many miles from here, the Queen Elizabeth Olympic Park continues to grow and expand, and it has some incredible facilities, including a new arts hub.

The one small thing that we would like the Minister to consider is the make-up of the corporations. It is important that people trust the organisations that are doing such large-scale development, which can potentially make enormous changes to the landscapes around them, whether on credible brownfield sites or, as others have said, through new towns or greenfield development, about which people are far more sensitive.

The Bill states that a mayoral development corporation must have at least one member from each constituent authority and that there must be no fewer than six members, but it does not give a maximum number. There is a real risk that if there is simply one member from each authority—some of these authorities are fairly large to start with—the majority of a corporation may be made up of people who are not connected to the community. It is absolutely right that there should be expertise, strategic people, and perhaps people from other sectors with skills, talents and experience from other places or sectors, but the organisation needs to be locally led. That is why my amendment 60 simply states that a majority of members of an MDC should be

“elected members of relevant councils”.

We think that that is a minor amendment that would benefit and broaden trust, and lock it in to local decision making.

[Miatta Fahnbulleh]

I recognise the hon. Member’s intention to strengthen the voice of local councillors in the decision making of mayoral development corporations in their areas, and I support that intent. The Bill will introduce a requirement on mayors outside London to appoint at least one elected member from each council in which the development corporation operates. That mirrors the existing requirement on the Mayor of London, which has been in place since 2011, and how this function has been conferred on mayors outside London so far. That is working; the evidence from on the ground and from practice is that this approach is the right one and strikes the right balance.

I agree with the hon. Member that membership of a mayoral development corporation should absolutely include local expertise from the relevant councils, but it is important that it should be led by people with experience and capacity in the matters that the corporation is taking forward and delivering. When they work well, the corporations bring together local and technical expertise from both the public and private sectors to address complex, long-term projects that in most cases will take longer than an election cycle to deliver.

I worry that the amendment would weaken the mayor’s ability to choose the right mix of expertise that he or she and the strategic authority need in the mayoral development corporation, and limit the corporation’s capacity to drive delivery. Although we agree that there must be council representation, we think that the amendment as drafted provides that, without binding the hands of the mayor, in a way that allows them to bring in any key technical experience that they might need from outside their area in order to deliver impact on the ground.

Question put, That the amendment be made.

--- Later in debate ---

Question proposed, That the schedule be the Seventeenth schedule to the Bill.

[Miatta Fahnbulleh]

Schedule 17 equips mayors with the tools they need to drive the critical function that we are asking them to. Mandatory consultation with councils where development corporations are proposed ensures transparency and collaboration. Preserving these provisions strengthens our devolution framework, enabling regions to take targeted, strategic action to boost growth, drive development and create jobs. They add no new duties, but only extend proven mechanisms.

Question put and agreed to.

Schedule 17 accordingly agreed to.

Clause 37

Assessment of economic conditions

Question proposed, That the clause stand part of the Bill.

[The Chair]

With this it will be convenient to discuss schedule 18.

[Miatta Fahnbulleh]

Strategic authorities, as we have said consistently in discussing the Bill, are a key driving force for local growth. To lead growth for its area, the authority must understand its local economy. That is why this clause will provide combined or combined county authorities with a duty to assess the economic conditions of their areas.

Local councils will continue to play a critical role in formulating the strategic authority’s understanding of the local economy. Combined and combined county authorities will be required to consult and work with the councils in their area when building their assessment of economic conditions. This requirement will ensure that the economic strategy for an area combines a strategic, regional assessment of opportunities with a ground-up understanding of local economies. The duty has been long held by strategic authorities without issue and empowers them to develop a holistic understanding of their local economies.

[Paul Holmes]

Briefly, could the Minister elaborate on some of the consultation mechanisms that the strategic authority would use with the authorities that currently have the power? We completely understand why she has introduced this, but throughout proceedings in Committee, we and the other Opposition parties have expressed concern about the erosion of existing authorities’ responsibilities with the centralisation that is going on. Will the Minister elaborate on how much weight the new authority will give local authorities’ considerations?

[Miatta Fahnbulleh]

We are very clear that although we want a strategic assessment of the economic opportunities and risk in an area, and a local growth plan that crosses that area, it must be informed by constituent authorities. The way it is working in practice—we hope the legislation enables this—is that constituent authorities bring into the conversation their understanding, insights, analysis and key priorities for the area, and a collective decision is made. Ultimately, I come back to the point I have made consistently: the mayor’s capacity to be effective and deliver is only as strong as their relations and collaboration with constituent authorities.

Question put and agreed to.

Clause 37 accordingly ordered to stand part of the Bill.

Schedule 18 agreed to.

Clause 38

Local growth plans

Question proposed, That the clause stand part of the Bill.

[The Chair]

With this it will be convenient to discuss the following:

New clause 29—Inclusive economy plans—

“Schedule [inclusive economy plans] confers on mayoral strategic authorities functions in relation to inclusive economy plans”.

This clause renames Local Growth Plans as Inclusive Economy Plans and introduces NS1.

New schedule 1—Inclusive Economy Plans—

“1 (1) After section 107K of LDEDCA 2009 insert—

“Mayoral combined authorities: inclusive economy plans

107L Inclusive economy plans

(1) A mayoral combined authority must prepare and publish an inclusive economy plan for its area.

(2) An inclusive economy plan must—

(a) include an overview of the economic conditions of the area (including the main economic characteristics which are likely to influence current and future economic inclusivity),

(b) identify priorities for the economic inclusivity of the area that are agreed with the Secretary of State (‘shared inclusive economy priorities’), and

(c) identify key projects for achieving economic inclusivity in the area through private or public investment.

(3) A mayoral combined authority must, in preparing an inclusive economy plan, develop a set of local indicators to measure inclusive economic outcomes in its area.

(4) The indicators should—

(a) be developed in collaboration with residents of the area, including by means of public participatory process convened by the mayor of the combined authority, and

(b) include the proposed effect of the plan on—

(i) inequalities between persons with and without protected characteristics as defined by the Equalities Act 2010;

(ii) health, including inequalities in health, nutrition and housing in the strategic authority area;

(iii) happiness and social connection;

(iv) access to nature and opportunities to play;

(v) increased power and control of the economy to people living in the strategic authority area.

(5) A mayoral combined authority may revise or replace an inclusive economy plan published under this section.

(6) The authority must arrange for any inclusive economy plan that is revised or replaced to be published.

(7) The requirement under subsection (1) may be met by the publication of an inclusive economy plan before this section comes into force.

107M Secretary of State guidance on inclusive economy plans

(1) The Secretary of State may issue guidance to mayoral combined authorities in relation to inclusive economy plans under section 107L.

(2) A mayoral combined authority must have regard to any such guidance in exercising their functions.

(3) The guidance may include (but is not limited to) guidance about—

(a) who the authority might consult when preparing or revising the plan;

(b) information to be included in the plan under section 107L(2) or the plan as revised;

(c) the process for agreeing priorities for the economic inclusivity of the area with the Secretary of State for the purposes of section 107L(2)(b);

(d) the circumstances in which the authority may revise or replace the plan;

(e) the ways in which the authority may have regard to the plan when exercising its other functions.”

(2) After section 107M of the LDEDCA 2009 (as inserted by sub-paragraph (1)) insert—

“107N Public bodies: duty to have regard to shared inclusive economy priorities

(1) A relevant non-departmental public body must have regard to a shared inclusive economy priority of a mayoral combined authority when—

(a) exercising, at the request of the authority, a function which could reasonably be expected to have an effect on that priority;

(b) preparing a bid for public funding for an activity the objectives of which align with that priority;

(c) preparing a statutory plan or strategy which relates to that priority.

(2) A ‘relevant non-departmental public body’ means a non-departmental public body specified in regulations made by the Secretary of State.

(3) In this section—

‘enactment’ includes an enactment comprised in subordinate legislation within the meaning of the Interpretation Act 1978;

‘Minister of the Crown’ has the same meaning as in the Ministers of the Crown Act 1975;

‘non-departmental public body’ means any public authority other than—

(a) a Minister of the Crown or government department;

(b) the Welsh Ministers;

(c) a devolved Welsh authority within the meaning of 30 section 157A of the Government of Wales Act 2006;

‘public funding’ means funding from a Minister of the Crown or government department;

‘shared inclusive economy priorities’ has the meaning given by section 107L(2)(b);

‘statutory plan or strategy’ means a plan or strategy that a non-departmental public body is required by an enactment to issue or publish.

(4) References in this section to an enactment or to provision made under an enactment are to an enactment whenever passed or (as the case may be) to provision whenever the instrument containing it is made.”

(3) After section 32 of the LURA 2023 insert—

“Mayoral CCAs: local inclusive economy plans

32A Local inclusive economy plans

(1) A mayoral CCA must prepare and publish an inclusive economy plan for its area.

(2) An inclusive economy plan must—

(a) include an overview of the economic conditions of the area (including the main economic characteristics which are likely to influence current and future economic inclusivity),

(b) identify priorities for the economic inclusivity of the area that are agreed with the Secretary of State (‘shared inclusive economy priorities’), and

(c) identify key projects for achieving economic inclusivity in the area through private or public investment.

(3) A mayoral CCA must, in preparing an inclusive economy plan, develop a set of local indicators to measure inclusive economic outcomes in its area.

(4) The indicators should—

(a) be developed in collaboration with residents of the area, including by means of public participatory process convened by the mayor of the CCA, and

(b) include the proposed effect of the plan on—

(i) inequalities between persons with and without protected characteristics as defined by the Equalities Act 2010;

(ii) health, including inequalities in health, nutrition and housing in the strategic authority area;

(iii) happiness and social connection;

(iv) access to nature and opportunities to play;

(v) increased power and control of the economy to people living in the strategic authority area.

(5) A mayoral CCA may revise or replace an inclusive economy plan published under this section.

(6) The CCA must arrange for any inclusive economy plan that is revised or replaced to be published.

(7) The requirement under subsection (1) may be met by the publication of an inclusive economy plan before this section comes into force.

32B Secretary of State guidance on inclusive economy plans

(1) The Secretary of State may issue guidance to mayoral CCAs in relation to inclusive economy plans under section 32A.

(2) A mayoral CCA must have regard to any such guidance in exercising their functions.

(3) The guidance may include (but is not limited to) guidance about—

(a) who the CCA might consult when preparing or revising the plan;

(b) information to be included in the plan under section 32A(2) or the plan as revised;

(c) the process for agreeing priorities for the economic inclusivity of the area with the Secretary of State for the purposes of section 107L(2)(b);

(d) the circumstances in which the CCA may revise or replace the plan;

(e) the ways in which the CCA may have regard to the plan when exercising its other functions.”

(4) After section 32B of LURA 2023 (as inserted by sub-paragraph (3)), insert—

“32C Public bodies: duty to have regard to shared inclusive economy priorities

(1) A relevant non-departmental public body must have regard to a shared inclusive economy priority of a mayoral CCA when—

(a) exercising, at the request of the CCA, a function which could reasonably be expected to have an effect on that priority;

(b) preparing a bid for public funding for an activity the objectives of which align with that priority;

(c) preparing a statutory plan or strategy which relates to that priority.

(2) A ‘relevant non-departmental public body’ means a non-departmental public body specified in regulations made by the Secretary of State.

(3) In this section—

‘enactment’ includes an enactment comprised in subordinate legislation within the meaning of the Interpretation Act 1978;

‘Minister of the Crown’ has the same meaning as in the Ministers of the Crown Act 1975;

‘non-departmental public body’ means any public authority other than—

(a) a Minister of the Crown or government department;

(b) the Welsh Ministers;

(c) a devolved Welsh authority within the meaning of 30 section 157A of the Government of Wales Act 2006;

‘public funding’ means funding from a Minister of the Crown or government department;

‘shared inclusive economy priorities’ has the meaning given by section 107L(2)(b);

‘statutory plan or strategy’ means a plan or strategy that a non-departmental public body is required by an enactment to issue or publish.

(4) References in this section to an enactment or to provision made under an enactment are to an enactment whenever passed or (as the case may be) to provision whenever the instrument containing it is made.”

(5) After section 333F of the Greater London Authority Act 1999 insert—

“333G Public bodies: duty to have regard to shared economic inclusivity priorities for London

(1) A relevant non-departmental public body must have regard to a shared economic inclusivity priority for Greater London when—

(a) exercising, at the request of the Mayor, a function which could reasonably be expected to have an effect on that priority;

(b) preparing a bid for public funding for an activity the objectives of which align with that priority;

(c) preparing a statutory plan or strategy which relates to the priority.

(2) A ‘shared local economic inclusivity priority for Greater London’ is an economic priority for Greater London that—

(a) is developed in collaboration with residents of Greater London, including by means of public participatory process convened by the Mayor of the London;

(b) has regard to—

(i) inequalities between persons with and without protected characteristics as defined by the Equalities Act 2010;

(ii) improving health and narrowing inequalities in health, nutrition and housing in the strategic authority area;

(iii) improving happiness and social connection;

(iv) improving access to nature and opportunities to play;

(v) promoting increased power and control of the economy to people living in Greater London;

(c) is agreed between the Mayor of London and the Secretary of State;

(d) is published by the Mayor of London.

(3) A ‘relevant non-departmental public body’ means a non-departmental public body specified in regulations made by the Secretary of State.

(4) In this section—

‘enactment’ includes an enactment comprised in subordinate legislation within the meaning of the Interpretation Act 1978;

‘Minister of the Crown’ has the same meaning as in the Ministers of the Crown Act 1975;

‘non-departmental public body’ means any public authority 20 other than—

(a) a Minister of the Crown or government department;

(b) the Welsh Ministers;

(c) a devolved Welsh authority within the meaning of section 157A of the Government of Wales Act 2006;

‘public funding’ means funding from a Minister of the Crown or government department;

‘statutory plan or strategy’ means a plan or strategy that a person is required by an enactment to issue or publish.

(5) References in this section to an enactment or to provision made 30 under an enactment are to an enactment whenever passed or (as the case may be) to provision whenever the instrument containing it is made.

(6) In section 420 (regulations and orders), in subsection (7), in the appropriate place, insert ‘section 333G;’.””

This new schedule renames Local Growth Plans as Inclusive Economy Plans and introduces NS1.

[Miatta Fahnbulleh]

The clause introduces schedule 19, which requires mayoral combined authorities and county authorities to produce and publish a local growth plan—a critical tool and document for driving the developments, jobs and prosperity that we want to see in areas. We will discuss schedule 19 in more detail later in the debate.

[Siân Berry]

I rise to speak to my new clause 29 and new schedule 1, which seek to replace clause 38 and schedule 19. They would replace local growth plans with inclusive economy plans, which, following an enhanced process of consultation and approval, would have the same prominence in terms of policy priorities as the proposed growth plans. While we have adopted much of the same drafting and general process, wherever the goal of growth appears, my new version says instead that our goal would be an inclusive economy or economic inclusivity.

It is important to confront the harmful concept of growth for the sake of growth. Prioritising economic growth, wherever it may come from, above everything else is wrong. Growth may be the Government’s No. 1 mission, but what is the point if it does not serve the people? Growth alone is insufficient to address inequality and the environmental crisis. For example, gross domestic product has roughly doubled since 1980, yet the richest five households in the UK own more wealth than 13.2 million people. When it comes to jobs, growth has not delivered, with low pay and stagnant real wages the reality for most.

A test of the Bill, and indeed the Government, will be whether it succeeds in moving beyond growth alone to creating an economy where everyone can thrive. That has to begin with clear intentions for the type of economy we want to build, not growth at any cost. In the case of local government and the new strategic authorities, how this is codified in the prescribed strategies for each area is important. That is the core reason why, working with the Centre for Local Economic Strategies, I have proposed this change to the core goals in the central economic strategy that each local authority will produce.

Those comparing our new schedule with the original will see that, in paragraph (3), proposed new sections 107L of the Local Democracy, Economic Development and Construction Act 2009 and 32A of the Levelling-up and Regeneration Act 2023 add further steps to the process of developing a plan so that it can be tailored to each local area through appropriate local indicators of progress. Paragraph (4) of the new schedule would require mayors to bring the public into both setting local indicators and setting out how the plan will help to achieve the inclusive economic outcomes that cover the necessary ingredients for a good life in that area. That is because, if they are going to shape a local economy, they need to listen and deliver for the people who live and work in it.

--- Later in debate ---

[Paul Holmes]

The way that people want their economy to go is to have growth, and for them to be able to pay their bills, feed their families and have good jobs. I say to the hon. Lady that any mayor who does not put those things in their manifesto is not worth electing. An election is the point at which the mayor should be held accountable. Any mayor who says that they would not want to make their local economic situation better and improve the lives of their citizens should not be elected. The current legislation that we have enables people perfectly reasonable input into the journey that a mayor might take over their mayoral term.

I believe that over the course of the last few Governments, the House of Commons has made great strides in protecting the environment and in making sure that mayors and public authorities, as well as private businesses, are responsible in how they treat their people, but also grow with the environmental and other protections that are necessary. While I understand the hon. Lady’s argument and I genuinely have a great deal of respect for her, the unintended consequences of the new clause and the new schedule will be to restrict growth, and to restrict the power of the mayor to have a responsible attitude to enabling growth on an even basis within the system that we currently have.

The hon. Lady’s proposals would be restrictive, but they would also take us back. A mayor should be unrestricted in their ability to deliver the growth and prosperity for the people they serve. I do not believe that the new clause and new schedule would do that. I know that the hon. Member for Brighton Pavilion is not pushing those to a vote, but if she did, we would not be able to support it, and we would vote against it.

[Miatta Fahnbulleh]

I thank the hon. Member for Brighton Pavilion for tabling the new clause and new schedule. Let me put on record that I completely agree with the goals of an inclusive economy; they are right, and we have a lot of sympathy for that. This Government are clear that we have to get the economy to work better for people, and I am obliged to remind everyone that over the last 14 years that was not the case.

Ultimately, mayors must have a democratic mandate, and the mark of success will be not just economic growth, but the economy impacting on people’s living standards, jobs and wages—bread and butter, tangible things. We think that the aims that the hon. Lady is trying to achieve are already locked into the Bill. If we achieve growth only on a graph and people do not feel it, our residents, voters and electorate will ensure that we pay the price. Therefore, that democratic lock is already baked into the Bill.

It is also worth saying that local growth plans, as set out in the Bill and as conceived, are a manifesto commitment for this Government, and the existing, established regional mayors have already developed their plans, with many starting to publish them already. By focusing on challenges around housing, transport, skills, employment and innovation, those plans will set the framework for unlocking the growth potential of those areas. As I said, growth only matters if it has a tangible impact on people. The strategic authorities that we are working with absolutely understand that and are trying to drive through measures that will deliver it.

We have already agreed growth priorities with 12 mayors. Those priorities are underpinned by a robust evidence base and a shared understanding of the biggest cross-cutting challenges and opportunities for economic development in those areas. Inclusivity, people and the impact on communities are absolutely central to that. The Government want to see more jobs, more money in people’s pockets, higher wages and investment that touches each and every one of our communities. One of the things we think mayors can do, when we devolve, is to ensure that they rewire their local economics in a way that gives people a greater stake.

Through co-operative ways of organising things, as in Liverpool city region and Greater Manchester, we are seeing new models that put people and communities front and centre to ensure that the growth and development that happens fundamentally benefits people. I believe that we have already baked in the intent behind the hon. Lady’s new clause and new schedule within the very design of this policy, but, more importantly, the power of democracy will drive and unlock it: if mayors and this Government do not deliver for people in our communities, we have the ballot box by which people can show their discontent. I think the hon. Lady has already said that she is not pressing the new clause and new schedule to a vote.

[The Chair]

If Ms Berry wanted to test on the Committee’s view on the new clause and new schedule it would come at a later stage anyway. Members will remember that we are debating clause 38.

Question put and agreed to.

Clause 38 accordingly ordered to stand part of the Bill.

Schedule 19

Local growth plans

--- Later in debate ---

[The Chair]

I feared we might stray into other considerations on planning, so I am grateful to the hon. Lady for speaking specifically about land use and nature recovery, which is the subject of the amendment. I call the Minister.

[Miatta Fahnbulleh]

I thank the hon. Lady for the amendment. I will say three things. First, local growth plans are locally-led documents with the flexibility to consider the challenges and opportunities that matter to particular areas. Places are already taking into account whether there are green growth opportunities in their area. In rural areas they will take into account the rural economy, the farming economy, and how that has a bearing on economic development opportunities. We need a framework that allows the flexibility for plans to be locally specific. In areas where it makes sense, places are already doing that in practice and we expect them to do that going forward.

[Vikki Slade]

Local nature recovery strategies matter not only in rural areas. If someone lives in the most urban part of the country, the local nature strategy is critical to those tiny pockets, so I would argue that it is as relevant in cities as it is in rural areas.

[Miatta Fahnbulleh]

The hon. Lady is absolutely right. She pre-empted the second point that I was about to make, which is that local nature recovery strategies are critical for every part of the country. Decisions that impact on land use and nature recovery will still need to consider the relevant policy framework, including the local nature recovery strategies that exist across the country. Any strategic planning decision will have to have regard to those local strategies. Thirdly and finally, we recognise that economic development sits alongside nature recovery. The two should not be and do not need to be in conflict.

[Siân Berry]

On a point of clarification, I recognise that the Minister has set out that the local nature recovery strategies will have to be regarded, and also that local growth plans will be very important. Which does the Minister see as having greater weight in local planning and strategic planning decisions?

--- Later in debate ---

[Miatta Fahnbulleh]

They are doing different things. The local plan is a strategic document. It is not the spatial development plan that will be the key driver for planning decisions. As is the case now, it is absolutely right that the relevant authority making the decision on planning has regard to local nature recovery strategies.

[Lewis Cocking]

What happens if one plan says one thing and another plan says another? The Minister just said that the strategic spatial framework would take precedence, but what happens if the local plan from the local planning authority has policies that contradict or do not align with the strategic plan?

[Miatta Fahnbulleh]

That is why we have the planning process. We will come on to talk about the strategic spatial plan. That is a document that will have to be done in consultation with constituent authorities. It will focus on strategic infrastructure and development that is needed in the area. Ultimately, we hope that that process will be done through consensus. When it is not, and when there is a dispute between the constituent local authority and the strategic authority in the round, we have said that that will go to the Secretary of State to make a determination through the independent Planning Inspectorate. The planning process already has provisions for us to mitigate that instance.

We have discussed the land use framework in Committee before. We have consulted on it and will publish the response to the consultation in due course. Although the principle of ensuring alignment across the piece is the right one, we think that before we have a tangible framework that is live and has been tested, it is premature to put a requirement in legislation that we would need to have regard to the land use framework.

[Vikki Slade]

I recall a similar argument being made last week to my hon. Friend the Member for Stratford-on-Avon, and a reference to “nascent” organisations. My hon. Friend pointed out that by the time the Bill comes into play some of the land use frameworks will be up and running, so they predate the legislation that will form the local growth plans. It feels completely pointless and a waste of money for local authorities to spend all that time putting in place the land use frameworks only for this legislation to come along and say, “Well, they haven’t really been tested.”

[Miatta Fahnbulleh]

We are developing the process of providing a land use framework, and we are taking onboard the responses that have come through the consultation. Whether that framework ends up being high level and strategic or quite granular will come out through that process, so it feels incredibly prescriptive and constraining to put that requirement on local plans at this stage.

Whether it is the local plan that is thinking about how we drive economic opportunities in the area, or it is the spatial development plan that mayors will be required to have in place, it will obviously have to take into account land use, the composition of the area, nature and all the key considerations in order to be an effective plan that works and that is supported by all the constituent members and parts that need to get onboard. I ask the hon. Member to withdraw her amendment.

--- Later in debate ---

[Paul Holmes]

I absolutely agree, because local parish councillors are experts in the areas that they represent—sometimes more so than district councillors or county councillors, because it is a smaller area. I think that the amendments from the hon. Member for Stratford-on-Avon are perfectly acceptable—I hope that the Minister agrees—and that she is trying to rectify an unintended consequence of the legislation. In many areas, it tries to streamline some of those aspirations, but in this area it is cutting its nose off to spite its face. We will support the amendments, and I hope the Minister will also support them and come back to us on how she imagines that she will strengthen her ability to consult town and parish councils.

[Miatta Fahnbulleh]

First, let me thank the hon. Member for Stratford-on-Avon, who has been a consistent champion and advocate of town and parish councils throughout the Bill Committee. Let me put it on record again that town and parish councils play an important role in their communities. That is a role that we understand, that we appreciate and that we want to support. We have been clear that the—

English Devolution and Community Empowerment Bill (Eighth sitting)

Miatta Fahnbulleh Excerpts

Committee stage
Tuesday 21st October 2025 Public Bill Committees

[The Chair]

I remind the Committee that with this we are discussing the following:

Amendment 353, in schedule 19, page 200, line 17, at end insert—

“(2A) A mayoral combined authority must engage town and parish councils within its area in creating a local growth plan.

(2B) Engagement under subsection (2A) must include—

(a) sharing draft proposals,

(b) sharing evidence gathered to prepare the proposal, and

(c) opportunities to provide feedback on draft proposals.”

This amendment would require mayoral combined authorities to engage with town and parish councils in creating local growth plans.

Amendment 354, in schedule 19, page 201, line 4, at end insert—

“(f) minimum engagement requirements under section 107L(2B).”

This amendment would allow the Secretary of State to create guidance about the minimum levels of engagement with town and parish councils that is required in the development of mayoral combined authorities’ local growth plans.

Amendment 355, in schedule 19, page 202, line 14, at end insert—

“(d) include an overview of the views of town and parish councils about the plan.”

This amendment would require information about the views of town and parish councils about a mayoral CCA’s local growth plan to be included in the plan.

Amendment 356, in schedule 19, page 202, line 14, at end insert—

“(2A) A mayoral CCA must engage town and parish councils within its area in creating a local growth plan.

(2B) Engagement under subsection (2A) must include—

(a) sharing draft proposals,

(b) sharing information gathered to prepare the proposal, and

(c) opportunities to provide feedback on draft proposals.”

This amendment would require mayoral CCAs to engage with town and parish councils in creating local growth plans.

Amendment 357, in schedule 19, page 202, line 37, at end insert—

“(f) minimum engagement requirements under section 32A(2B).”

This amendment would allow the Secretary of State to create guidance about the minimum levels of engagement with town and parish councils that is required in the development of mayoral CCAs’ local growth plans.

[The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Miatta Fahnbulleh)]

I was in the middle of thanking the hon. Member for Stratford-on-Avon for being a consistent champion of town and parish councils throughout our proceedings. We also recognise the important role they play in their communities, which is understood and should not be understated.

We have been clear that local growth plans should reflect the diverse needs and views of a range of local and regional stakeholders. Not only is this already possible, but it is actively encouraged. We have set out in the Bill that, when drafting their local growth plans, mayoral combined authorities and mayoral combined county authorities must have regard to guidance published by the Secretary of State. That guidance can already set out who the authority might consult, as well as the information to be included in the plan.

We think that specifying a minimum level of engagement for town and parish councils is disproportionate and over-prescriptive. For too long, central Government have dictated what local areas should do, who they should talk to and how they should do it, and we are calling time on that. This is about empowering mayoral strategic authorities to reach out to the key stakeholders that they know and understand best to drive the changes they want in their place. For that reason, I do not believe this cluster of amendments is necessary.

I ask the hon. Lady to withdraw her amendment.

[Paul Holmes (Hamble Valley) (Con)]

It is a pleasure to see you in the Chair, Dame Siobhain. I would not usually speak at this stage, but as the Minister did not outline why she does not believe that the Government should prescribe who mayors and mayoral development corporations should be talking to, will she say why, in earlier clauses, she prescribed that organisations such as trade unions should sit around the table? Town and parish councils that are delivering services on the ground are now being asked to deliver more services because of some of the provisions she has included in the Bill. Why does she not think it is necessary to issue guidance forcing mayors or MDCs to talk to them when they are delivering?

--- Later in debate ---

[Paul Holmes]

I know I am, Dame Siobhain. I cut my teeth against you in Mitcham and Morden in 2015, and I was required to be of strong stuff to try to beat you.

I do not believe that the hon. Member for North West Cambridgeshire is correct. What I am saying is that the Minister and the Government cannot have their cake and eat it. On various things, they are prescribing who mayors should talk to, who should be included in a strategy and who should sit around the table. But when it comes to organisations that are delivering services on the ground, and district councils that are to be abolished are transferring assets down to town and parish councils, the Minister says there is no need to prescribe that mayors need to talk to them. In many cases—including in my constituency and that of the hon. Member for Stratford-on-Avon, who so eloquently spoke to this amendment—these town and parish councils are increasing the number of services they provide, and they are taking on sections of land and businesses that are integral to the development of local growth plans. I say very gently, if the Minister wanted to completely devolve power to mayors, that would be absolutely fine with us, but let us not have a patchwork quilt approach by which she is absolutely prescribing who and to which stakeholders mayors should talk in other areas of the legislation, but she does not feel it necessary to include town and parish councils in this part. That is a shame.

[Miatta Fahnbulleh]

To clarify, the Bill does not specify any particular organisation that should be consulted. It says that we will set that out in guidance. That guidance will be driven by a whole host of consultation with strategic authorities and their partners around the range of organisations and bodies we think is necessary. The Conservative amendment specifically picked on trade unions and specifically said we should exclude them. That is what we were pushing back against, so we are completely consistent in this.

In this case, again, there will be guidance that will talk about a range of local stakeholders, but we think it is wrong to prescribe on the face of the Bill that there should be a minimum requirement in order to engage with town and parish councils. That is too onerous and is disproportionate. We should allow the mayor and the strategic authority to know their stakeholders and the people with whom they need to have a conversation, to make sure that they have consensus and the support to drive forward their local growth plan.

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

I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

--- Later in debate ---

[Miatta Fahnbulleh]

I share the hon. Lady’s concern and her view of the importance of environmental and climate change targets. The economic plans of any strategic authority must be compatible with our legal targets for those core considerations.

National Government and local government at all levels, along with business and individuals, must continue to make a contribution to tackling climate change and improving the quality of the environment around us. I refer the hon. Lady to the local growth plans that are already in place and the actions of mayors who are already in place, which show that a regard for climate change and air quality obligations is a driving force.

[Vikki Slade]

There is a big difference between what has been done by mayors who have gone before and creating mayors across the whole country. The new mayors will have very different backgrounds and landscapes, both geographical and political, to deal with. The word “hope” has done a lot of heavy lifting today, and although I also hope that all these mayors are as great as some of the mayors who have gone before, the Minister has more confidence in them than I do. Legislation is there to ensure that we are not reliant on the good will of hard-working people in political posts, and to protect us from people who may achieve political office and then seek to create something that we will have to undo, at great cost to our economy and health.

[Miatta Fahnbulleh]

I have a lot of sympathy with the hon. Lady’s point. Mayoral strategic authorities are already subject to the recently strengthened biodiversity duty, which supports the delivery of legally binding biodiversity targets. We have seen that mayors have complied with the duties on local authorities around air quality and producing air quality action plans. Those have shown to be effective in London. The principle and the intention are that we are baking our climate and environmental obligations into the way that we are thinking about how we drive the economy. We will reflect on the guidance that comes alongside local growth plans to ensure that, across the piece, those national obligations are reflected in every tier of Government. The hon. Member has my assurance that we will reflect on it, and I ask her to withdraw the amendment.

--- Later in debate ---

[Paul Holmes]

Forgive me, I apologise to the Committee if I misspoke. I meant that the hon. Member for Banbury spoke against an amendment that would have guaranteed that mayors would have to speak to town and parish councils.

To return to amendment 359, the way that mayoral authorities are formulated means that mayors will represent diverse areas. As I said to the Minister, we want them to be able to succeed and we want to make sure that their growth plans actually work. In an earlier debate, I tried to adequately back up the Minister’s aim for mayors to deliver that and to make people in their area more prosperous. Businesses being created and economic growth should absolutely be the top priorities of the Government and the mayors that they are creating, and we fully endorse that message. I would argue, however, that mayors cannot do that if there is not guidance—or at least something in the legislation—that requires them to look at our coastal and rural communities and some of the unique challenges that the mayors will be able to face.

I will use the example of Hampshire and the Solent again. I have a friend who will probably end up being the Labour candidate for Hampshire and the Solent. She would make a very good mayor, but she has a history of representing and leading a council in an urban centre in an industrial city like Southampton—that is her expertise. She did it very well; she took over from the Conservative administration that I was part of. What she cannot do, and what she does not have strong experience in, is represent the coastal communities that go down the Solent and the farming communities outside.

The amendment would require rural and coastal communities and areas to be enshrined in the legislation. I do not think that Government Back Benchers, or the Minister, should be scared of that, because it would codify a solid strategic view for the local mayor to follow. I welcome the amendment, and we will support it if the hon. Member for Stratford-on-Avon presses it to a vote.

[Miatta Fahnbulleh]

I know that Opposition Members—indeed, Members on both sides of the Committee—are all too aware of the unique needs and challenges that rural, remote and coastal communities face. I want to reassure them that local growth plans provide a framework for growth for all parts of their regions. That is exactly why we are requiring local growth plans to set out an economic overview of their whole area. Whether it is urban centres, or rural or farming parts of the entire strategic authority area, a proper assessment needs to be conducted. Yes, there is no requirement to specifically reference rural, remote or coastal areas, but there is equally no requirement to specify urban or suburban areas.

--- Later in debate ---

[Miatta Fahnbulleh]

I hear the passion and commitment of the hon. Lady clearly. Certainly my experience of strategic authorities and mayors who cover a combination of areas—including rural areas—is that they are mindful and clear about it; they want to have a conversation about transport connectivity and digital connectivity, and about how we drive economic growth and prosperity within our farming communities.

There is no evidence to suggest that local growth plans as defined in the Bill do not enable places to drive that. That is certainly not the experience that we are seeing at the moment. I understand the concern that a lot of our mayors have been in more urban areas, but in the north-east and increasingly with the mayors who are coming through our priority programme, they are clear about the importance of their rural communities and the fact that they will need certain powers and functions to drive that.

Although I completely understand the intent and legitimate concern behind the amendments spoken to by the hon. Member for Stratford-on-Avon, I think they are too prescriptive, and it is right that we create the flexibility for mayors to understand their patch across the piece and then respond effectively in their local growth plan. I hope that with that reassurance the hon. Lady will withdraw amendment 359—although I think she said she will press it to a vote.

[Manuela Perteghella]

I would like to press amendment 359 to a vote.

Question put, That the amendment be made.

--- Later in debate ---

[Vikki Slade]

Amendments 52 and 53 are about funding strategic authorities for the local growth plans. I apologise to Committee members—they are going to get bored of hearing me say the same thing—but the point I am trying to make with these amendments is that we are pushing huge amounts of responsibility, cost and activity into a space that does not yet have clarity about how that will be paid for.

As we all know, our local authorities are at breaking point, with many of them expecting to make section 114 declarations within the next 12 months. I am deeply concerned that additional responsibilities to help to fund a strategic authority above them—they will have to pay in through a levy but they will have only minimal involvement in the decision making coming back down—will put them under more pressure.

These amendments are designed to make that point, to probe the Minister and to ask for further consideration about how the Secretary of State can assure local communities, who will be paying for these authorities, that there will be sufficient financial resources and adequate administrative support to discharge the functions involved in the preparation, publication and delivery of the local growth plans. There is no point in having a fantastic plan if it cannot be delivered, or if the organisations beneath the strategic authority have just gone bust.

I have said it before: the money is coming either from levies, from precepts, or potentially from grant funding through central Government. These amendments are really about probing to ask whether these growth plans will be coming with the money attached to them so that local areas, wherever they are in the country, have a fighting chance of producing a really good growth plan that benefits every resident within their area. That is why I have tabled these amendments: to try to draw a bit more out of the Minister.

[Miatta Fahnbulleh]

I thank the hon. Lady for these probing amendments. Again, we had a debate about this earlier in Committee. Let me put on record that we are clear that, if we are asking strategic and mayoral strategic authorities to drive this critical function, they must have the capacity to do that job well. It does not serve them, the Government or their constituents if they do not have the capacity and capability to do that well. That is why we are, for example, providing capacity-building funding for mayoral strategic authorities, so that they can not only set up but do some of the core enabling functions, such as producing plans, well and effectively.

As I said, the principle holds that capacity-building support must be there to ensure that strategic authorities can do their functions incredibly well, but I do not think it is necessary to specify that on the face of the Bill, not least because we already have the spending review process where strategic authorities set out their demands, ambitions and resources, and have a conversation with Government about ensuring that they are adequately resourced.

The principle of capacity building is therefore absolutely clear and firm, and is designed into the way we are trying to drive the legislation forward. Putting it on the face of the Bill would be too prescriptive when there are already processes in place to enable it to happen.

[Vikki Slade]

For clarity, at the point of the spending review when Departments are given their spending powers, are we to expect the strategic authorities to be separately and directly given a settlement each year, or will that be over a three-year period in the way that local authorities are given that settlement? I just want clarity that it is a separate pot of money from local authority funding, because I would not want to see them have to fight like rats in a sack with the mayoral authorities above them.

[Miatta Fahnbulleh]

The process in practice is distinct from the local government funding settlement. Established mayoral combined authorities are all going through the integrated settlement process, which is a negotiated process where the demands and ambitions of the mayor are weighted against the funding in Government Departments that we have provided with an integrated settlement. That is being rolled out among established combined authorities.

For other mayoral combined authorities that are not established, the process in practice has been, “This is what we have tried to do in our area. These are the resources, and this is where we can use, for example, the mayoral precepting power,” and then there is a conversation with Government to enable them to do what they want. We are moving towards multi-year settlements, because we think that is a better way to run the public finances. The principle of multi-year settlements applies to local government and across Departments, and will apply in the context of mayoral combined authorities.

[Vikki Slade]

On the basis of that assurance, I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

[Miatta Fahnbulleh]

I beg to move Government amendment 171.

[The Chair]

With this it will be convenient to discuss the following:

Government amendments 172, 173, 175 to 177, 179 to 181, 183 to 185, 187, 189, 190, 192 to 194, and 196.

--- Later in debate ---

[Miatta Fahnbulleh]

There are quite a few amendments in this grouping, and all are broadly technical, clarifying and consequential amendments. Government amendments 172, 181 and 190 are consequential amendments that expand the definition of relevant bodies that can be named in secondary legislation that must have regard to the shared local growth priorities agreed with mayoral strategic authorities. The change reflects the original intention set out in the White Paper to apply the duty to arms-length bodies.

Government amendments 174, 182, and 191 simply clarify that public authorities that operate GB-wide or UK-wide may be specified in regulations as subject to the duty to have regard, and that the duty will apply only to their activities in England.

Amendment 171 agreed to.

Amendments made: 172, in schedule 19, page 201, line 8, leave out “non-departmental public body” and insert “public authority”.

This expands the power to require a non-departmental public body to have regard to shared local growth priorities to any relevant public authority.

Amendment 173, in schedule 19, page 201, line 11, after “of the” insert “mayoral combined”.

This amendment is consequential on Amendment 172.

Amendment 174, in schedule 19, page 201, line 17, at end insert—

“(1A) Where a relevant public authority carries out activities in England and anywhere else in the United Kingdom, the duty under subsection (1) only applies in relation to activities that the authority carries out in England.”

This ensures that where a relevant public authority carries out activities in England and anywhere else in the UK, the new duties relating to the local growth priorities of mayoral combined authorities will only apply to activities that the authority carries out in England.

Amendment 175, in schedule 19, page 201, line 18, leave out “non-departmental public body” and insert “public authority”.

This amendment is consequential on Amendment 172.

Amendment 176, in schedule 19, page 201, line 19, leave out “non-departmental public body” and insert “public authority”.

This amendment is consequential on Amendment 172.

Amendment 177, in schedule 19, page 201, line 26, leave out “non-departmental public body” and insert “public authority”.—(Miatta Fahnbulleh.)

This amendment is consequential on Amendment 172.

[Miatta Fahnbulleh]

I beg to move amendment 178, in schedule 19, page 201, leave out line 28.

This means that a Minister of the Crown or government department can be specified in regulations as bound by the duty to have regard to shared local growth priorities.

[The Chair]

With this it will be convenient to discuss Government amendments 186 and 195.

[Miatta Fahnbulleh]

The Government amendments we just discussed enable the Government to specify a broader range of public bodies in secondary legislation, to reflect the original intention of clause 38 and schedule 19. To avoid inadvertently curtailing the effect of those amendments, it is necessary to remove the restrictions on specifying a Minister of the Crown or a Government Department in regulations. Government amendments 178, 186 and 195 will have the effect of allowing the Government to specify in regulations Executive agencies and non-ministerial Departments. This reflects the duty as proposed in the White Paper.

Amendment 178 agreed to.

Amendments made: 179, in schedule 19, page 201, line 37, leave out “non-departmental public body” and insert “public authority”.

This amendment is consequential on Amendment 172.

Amendment 180, in schedule 19, page 203, line 2, leave out “bodies” and insert “authorities”.

This amendment is consequential on Amendment 181.

Amendment 181, in schedule 19, page 203, line 3, leave out “non-departmental public body” and insert “public authority”.

This expands the power to require a non-departmental public body to have regard to shared local growth priorities to any relevant public authority.

Amendment 182, in schedule 19, page 203, line 10, at end insert—

“(1A) Where a relevant public authority carries out activities in England and anywhere else in the United Kingdom, the duty under subsection (1) only applies in relation to activities that the authority carries out in England.”

This ensures that where a public authority carries out activities in England and anywhere else in the UK, the new duties relating to the shared local growth priorities of mayoral combined county authorities will only apply to activities that the authority carries out in England.

Amendment 183, in schedule 19, page 203, line 11, leave out “non-departmental public body” and insert “public authority”.

This amendment is consequential on Amendment 181.

Amendment 184, in schedule 19, page 203, line 12, leave out “non-departmental public body” and insert “public authority”.

This amendment is consequential on Amendment 181.

Amendment 185, in schedule 19, page 203, line 19, leave out “non-departmental public body” and insert “public authority”.

This amendment is consequential on Amendment 181.

Amendment 186, in schedule 19, page 203, leave out line 21.

This means that a Minister of the Crown or government department can be specified in regulations as bound by the duty to have regard to shared local growth priorities.

Amendment 187, in schedule 19, page 203, line 30, leave out “non-departmental public body” and insert “public authority”.—(Miatta Fahnbulleh.)

This amendment is consequential on Amendment 181.

[Miatta Fahnbulleh]

I beg to move amendment 188, in schedule 19, page 203, line 35, at end insert—

“(4A) In section 252 of LURA 2023 (regulations)—

(a) in subsection (5)(a), after ‘subsection’ insert ‘(8)(ab) or’;

(b) in subsection (8), before paragraph (a) insert—

‘(ab) under section 32C(2);’.”

This provides that regulations made under new section 32C of the Levelling-Up and Regeneration Act 2023 (public authorities: duty to have regard to shared local growth priorities), as inserted by Schedule 19 to the Bill, are subject to the negative resolution procedure.

The amendment provides that regulations that specify the relevant public authorities that must have regard to shared local growth priorities agreed between the Government and mayoral combined county authorities are subject to the negative procedure. Use of the negative procedure provides an appropriate and proportionate level of scrutiny for these regulations. The amendment will enable us to introduce the duty on relevant public authorities in the most efficient way.

Amendment 188 agreed to.

Amendments made: 189, in schedule 19, page 203, line 37, leave out “bodies” and insert “authorities”.

This amendment is consequential on Amendment 190.

Amendment 190, in schedule 19, page 203, line 39, leave out “non-departmental public body” and insert “public authority”.

This expands the power to require a non-departmental public body to have regard to shared local growth priorities to any relevant public authority.

Amendment 191, in schedule 19, page 204, line 7, at end insert—

“(1A) Where a relevant public authority carries out activities in England and anywhere else in the United Kingdom, the duty under subsection (1) only applies in relation to activities that the authority carries out in England.”

This ensures that where a public authority carries out activities in England and anywhere else in the UK, the new duties relating to the shared local growth priorities for Greater London will only apply to activities that the authority carries out in England.

Amendment 192, in schedule 19, page 204, line 12, leave out “non-departmental public body” and insert “public authority”.

This amendment is consequential on Amendment 190.

Amendment 193, in schedule 19, page 204, line 13, leave out “non-departmental public body” and insert “public authority”.

This amendment is consequential on Amendment 190.

Amendment 194, in schedule 19, page 204, line 20, leave out “non-departmental public body” and insert “public authority”.

This amendment is consequential on Amendment 190.

Amendment 195, in schedule 19, page 204, leave out line 22.

This means that a Minister of the Crown or government department can be specified in regulations as bound by the duty to have regard to shared local growth priorities.

Amendment 196, in schedule 19, page 204, line 29, leave out “person” and insert “public authority”.—(Miatta Fahnbulleh.)

This amendment is consequential on Amendment 190.

Question proposed, That the schedule, as amended, be the Nineteenth schedule to the Bill.

[Miatta Fahnbulleh]

I know that the Committee agrees on the need to boost economic prosperity—there is broad consensus on that—and to do it in a way that reflects national and, critically, local priorities. Although many places have a plan for growth, there is no consistent requirement for places with a mayor to do so. Currently, only London is required to set out a strategy for its economic development, and we can see how London’s economy has benefited over the decades. Where places have taken the initiative, their plans do not have consistent central Government backing.

Schedule 19 will change that by creating a process for all mayors to agree local growth priorities with the Government. It will provide a common approach for mayors outside London to set out their priorities and investment opportunities in their local growth plan. Mayors up and down the country have given their backing to local growth plans, and we are already seeing this in practice. We have already agreed shared local growth priorities with the 12 longest established mayoral authorities, but agreeing and publishing shared local growth priorities is not enough. Mayors need to know that these priorities will be acted upon, which is why we will require public bodies to have regard to them at key points.

The approach will ensure that everywhere with a mayor has a clear plan for growth and economic prosperity in their area, whether that is a local growth plan or the economic development strategy for London. Crucially, it will ensure that the priorities we agree with mayors have Government backing, with relevant public bodies alert to them, so that all levels of government can pull in the same direction.

Question put and agreed to.

Schedule 19, as amended, accordingly agreed to.

Clause 39

Local Government Act 2003: expenditure grant

Question proposed, That the clause stand part of the Bill.

[Miatta Fahnbulleh]

Often, funding held by combined and combined county authorities is best used by local councils to deliver their responsibilities. Consistently throughout our proceedings, I have said that the mayor is only as strong as its partnership and relationship with the constituent authorities that have to drive the delivery. That is why the clause will standardise the power already held by most existing combined and combined county authorities to pay grants to their constituent councils.

The ability of combined and combined county authorities to pay their constituent councils is vital to the smooth running of transport, for example. Constituent councils are the highways authority in their area, with the duty to manage their road network and deliver highways maintenance; the authority therefore needs a power to fund them for delivering those key functions. We understand highways authorities’ need for sufficient funding to deliver against their duties, which is why clause 39 requires combined or combined county authorities to have in mind the necessity of ensuring a council has enough to deliver its highways functions when paying grants.

[Vikki Slade]

I welcome this provision. It is hugely important that money can flow in both directions, but there is one glaring omission, and the Committee will know what it is. The clause gives the strategic authority the power to pay a grant to a constituent council, but not to a town or parish council.

It may be that a town or parish council is fulfilling one of the areas of competence for the strategic authority. For example, under clause 2(g), public safety, a town council might be running CCTV or paying for community safety accreditation team officers. Under clause 2(e), environment and climate change, that parish or town council might be delivering solar insulation or be rewilding. I did not table an amendment on this, but might there be a drafting error in not allowing the strategic authority to pay a grant to an organisation associated with a constituent council? There is an opportunity there to use our town and parish councils in this way.

[Miatta Fahnbulleh]

I commend the Liberal Democrat Members for their consistent championing of town and parish councils. This power is focused on the constituent authorities, in part because the use case we have in mind is transport, where we can see the importance of highways authorities in particular.

The hon. Lady will know that town and parish councils in the round tend not to draw down Government grant or funding. In conferring on strategic authorities this power, which currently goes from the Secretary of State to constituent authorities, we are thinking in particular about grant funding. That is why we have constrained it in the way we have set out. I will take her point away and consider it to make sure we have not missed a trick, but our focus is particularly on transport and highways authorities and the ability to pass through grant funding.

[Vikki Slade]

I thank the Minister for that assurance. I simply want the opportunity not to be denied. Town and parish councils often say, “Well, we are not allowed to access that,” but there may be an opportunity here, and to exclude them would be a shame. Perhaps use of “may” would give that opportunity for grant funding. I would welcome a tiny amendment at some point in the future. It is something to reflect on.

Question put and agreed to.

Clause 39 accordingly ordered to stand part of the Bill.

Clause 40

Encouragement of visitors and promotion of visitors

--- Later in debate ---

[Paul Holmes]

I am sure the hon. Member uses surveys when he communicates with his constituents. When he sends them out, I am sure he is not worried about overburdening his constituents in their lives, whether they want to respond or not. The same principle applies. There are many perfectly good programmes that could be used now to send out a consultation to people who are already programmed into a mailing list. If they want to respond, they can, and if they do not, good on them—that means that they are perfectly happy with what is going on.

I do not understand the constant fear about consulting town and parish councils. That is particularly the case—I say this with all due respect and with realism about the situation out there in the country—given the stated aims of the Government and the situation in local government, where, without a manifesto promise, districts and county councils are being abolished and there is a rush to transfer assets to town and parish councils. They are taking on mainstream responsibilities because of what the Bill will do. Whether we are talking about local growth plans or attracting visitors, many will miss out on having a visitor strategy that is worth the paper it is written on.

We are now discussing several authorities that already have the responsibilities. This legislation was drafted at a point from which we have moved on, and it puts unintended consequences before local authorities. I ask the Minister, in the spirit of constructive debate, to go away and properly look at how town and parish councils can be consulted. They are doing a lot more than the Minister or the Government Back Benchers who have spoken this afternoon realise.

[Miatta Fahnbulleh]

I thank hon. Members for that lengthy and robust debate. I will start with clause 40, and then I will pick up on the amendments. I remind the Committee that the purpose of clause 40 is to promote tourism and cultural activities, which we think are critical to boosting regional economies. These provisions enable authorities to encourage visitors and provide facilities such as conference centres, driving job creation and investment. Authorities can add value by forging a regional brand, and by attracting business and visitors, they can make the most of their multifaceted areas and the strengths of each local authority area. That is key to creating thriving hubs for visitors and residents.

Amendment 358 and new clause 41 touch on something that has been a constant theme throughout the debate. I understand the aims behind the provisions, and I understand opposition parties’ desire to have regard to town and parish councils. I come back to the fact that we have agreed that town and parish councils have an important role. They are important local partners, and we expect authorities to work with them where appropriate.

However, we do not believe that it is proportionate or right to put that in the Bill as a legal requirement. We trust authorities to decide how best to engage with their local partners, including town and parish councils, based on what is right and appropriate for their areas. Requiring formal consultation and reporting could, as my hon. Friends the Members for Banbury and for Camborne and Redruth have so eloquently said, create unnecessary administrative pressure, burden and resources at a time when we want these strategic authorities to be focused on delivery. Of course we want to encourage collaboration, but not to prescribe it. Engagement should be flexible. It should not be dictated by central Government or indeed this Committee; it should be left to mayors and strategic authorities who know their patch and their partners best.

I recognise the type of levy that new clause 41 would introduce, and I recognise that it is supported by local authorities and mayors. The Government keep all tax policy under review, and any changes to tax policy will be announced at a fiscal event in the normal way. I do not believe that the Chancellor would be very pleased with me if I were to make tax policy now in this great Committee.

[The Chair]

That would also be outside the scope of the Bill.

--- Later in debate ---

[Miatta Fahnbulleh]

It would. One thing that the Bill does create is a statutory duty for Government to respond to formal requests from mayors for new powers—the right to request. Calls for any new fiscal powers should be made through that process. The Government propose to take account of the impact of visitors on local authority areas through the fair funding review. That point has been made by local authorities and by Committee members, and we are doing so to account for the fact that visitors—

[Vikki Slade]

I fear I am about to be told off by the Chair, but—[Interruption.] The shadow Minister has just taken an interest. I welcome the Minister’s comment that the impact of visitors will be taken into account in the fair funding review. It is really important to add that that affects the fair funding review for our police authorities, as well as our local authorities.

[Miatta Fahnbulleh]

There are already mechanisms to enable places to introduce overnight stay levies through the accommodation business improvement district model, as the hon. Lady mentioned. With that, and allowing that this good Committee is not the Chancellor, I ask the hon. Member for Stratford-on-Avon to withdraw the amendment.

[Manuela Perteghella]

I will not press new clause 41 to a vote, but I would like to do so with amendment 358, which concerns consultation with parish and town councils on tourism strategy.

Question put, That the amendment be made.

--- Later in debate ---

[The Chair]

I am sure the Committee would like to thank you for being so candid.

Clause 41

Co-operation with local government pension scheme managers

Question proposed, That the clause stand part of the Bill.

[Miatta Fahnbulleh]

Clause 41 requires that strategic authorities work with the local government pension scheme to identify and develop suitable investment opportunities. The local government pension scheme already plays a vital role in supporting local growth, with a portion of its £400 billion in assets invested in local projects. Such investments must of course provide a suitable return to pay pensions while also contributing to local prosperity, including through affordable housing, clean energy and local regeneration.

Although some combined authorities already maintain productive relationships with their local government pension scheme funds, clause 41 ensures that that collaborative approach becomes standard practice, embedding local government pension scheme engagement into local investment planning. That will not be a one-way responsibility. The Pension Schemes Bill introduces a corresponding duty on local government pension scheme funds to work collaboratively with their strategic authorities. Those reciprocal requirements are designed to foster key partnerships between the two parties to unlock investment in local growth and deliver benefits to communities across the country.

Question put and agreed to.

Clause 41 accordingly ordered to stand part of the Bill.

Clause 42

Miscellaneous local authority functions

Question proposed, That the clause stand part of the Bill.

[The Chair]

With this it will be convenient to discuss schedule 20.

[Miatta Fahnbulleh]

These functions are essential to the effective operation of strategic authorities. We are now standardising these functions across all existing and future authorities. These powers are core functions that any local government body needs. Standardising them across strategic authorities will create consistent foundations for them to build on and thrive from. Without these functions, we risk significantly debilitating new institutions before they have a chance.

[Paul Holmes]

To bring some agreement to the Committee, the Opposition absolutely understand, as we did earlier about standardisation, such recommendations to give powers to CAs and CCAs. We are perfectly in agreement with that and we thank the Minister for bringing the issue to the Committee.

Question put and agreed to.

Clause 42 accordingly ordered to stand part of the Bill.

Schedule 20

Miscellaneous local authority functions

[Miatta Fahnbulleh]

I beg to move amendment 197, in schedule 20, page 205, line 6, leave out—

“, a combined authority and a combined county authority”.

This removes the reference to combined authorities and combined county authorities inserted into section 113(5) of the Local Government Act 1972 as these bodies are already included in the definition of “local authority” under section 146A(1) of that Act.

This is a minor and technical amendment to prevent duplication in legislation.

Amendment 197 agreed to.

Schedule 20, as amended, agreed to.

Clause 43

Health improvement and health inequalities duty

--- Later in debate ---

[Vikki Slade]

Amendments 247 and 248 are similar to those that we tabled on other issues. They seek the assurance that combined authorities will have “sufficient financial resources” and “adequate administrative support” to fulfil their duties on health and health inequalities. I will not repeat myself, because we have a lot to get through this afternoon, but I will add that there is a real risk that more and more responsibility is going to the strategic authorities from other Departments. The Department of Health and Social Care is under huge financial pressure, but it would be remiss if this responsibility were moved across to a strategic authority without sufficient funding. I am assured by the Minister of sufficient capacity-building funding and an integrated settlement for these organisations in future. I trust—I need some assurance—that that will include sufficient funds to take account of the health inequalities in our regions. If that happens, I will be happy not to press the amendments.

[Miatta Fahnbulleh]

I reiterate the assurances that I have given. We have a vested interest in ensuring that, where strategic authorities take on new functions and duties, they have the resource and capacity to do so. That could mean: providing capacity funding to the strategic authorities; ensuring that the budgets necessary to deliver the outcomes that they are committed to are in place through the process of devolution, or, ultimately, when they become established combined authorities, through the integrated settlements. I again put that reassurance on the record.

[Vikki Slade]

I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

--- Later in debate ---

[Siân Berry]

I will be as quick as I can—it is a very short speech.

Although the health improvement and health inequalities duty is very good, the determinants of health outlined in clause 43 are limited and lacking in consideration for the impacts on health from a wide range of activities that these new authorities will be able to influence. My amendments aim to fix that. It is positive that the Opposition parties all immediately spotted the need for improvement to this clause, and that both Liberal Democrat colleagues and I have aimed to fix it, albeit in different ways.

Amendments 262 and 263 would replace references to “prosperity” with “poverty and socio-economic inequality” in the clause. They would make clearer what causes and exacerbates ill health. I do not believe that “prosperity” on its own is sufficient. I will not repeat all my earlier arguments, but there is much supporting evidence for this from a range of organisations, including the Centre for Local Economic Strategies, the Reclaiming our Regional Economies programme, and the all-party parliamentary group on poverty and inequality, which I co-chair. This is just one of the ways that the Bill can make improvements, by focusing on reducing inequality and not simply creating growth within these new strategic authorities. I hope that the Government will accept my changes.

[Miatta Fahnbulleh]

I thank the hon. Lady for the intention behind the amendments. I completely understand her key points. I think there is consensus that tackling health inequalities and their determinants is a key priority, which is why we included this clause in the Bill. We have deliberately drawn from the well-established approach in the Greater London Authority, which names “prosperity” among the general health determinants. It is deliberately broad so as to encompass a wide range of things. Our intention is not to establish an exhaustive list here, but to ensure that we cast the definition broadly enough to cover the issues of poverty and inequality that the hon. Lady raises.

There is a gradient across society for the determinants of health inequality, and my concern is that if we were to replace “prosperity” with poverty and inequality, we would cast the definition too narrowly. The broader “prosperity” definition captures poverty and social inequality, but it also captures other critical factors. Although we absolutely agree with the intent, we have tried to craft the legislation in a way that is broad and permissive, but that critically draws on the experience and track record of the Greater London Authority. With those reassurances, I hope the hon. Lady will consider withdrawing her amendment.

[Siân Berry]

I will withdraw the amendment for now, but I hope we see some measures coming through from the Minister, particularly in regulations. I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

--- Later in debate ---

[Manuela Perteghella]

I would like to speak to amendments 253 and 254. These are simple amendments, but they can make a meaningful impact and save lives. We want to add nitrogen dioxide levels and general air quality as a factor that combined authorities and combined county authorities must consider in their work to reduce health inequalities. That would ensure that environmental health risks were treated as core determinants of health, not as an afterthought.

We have heard a moving speech by the hon. Member for Brighton Pavilion. We know that nitrogen dioxide pollution and poor general air quality are major contributors to respiratory and cardiovascular disease, and they disproportionately affect vulnerable communities. Including air quality as a health determinant would protect the most vulnerable. As we have heard, poor air quality causes thousands of premature deaths every year and leaves many others with chronic illnesses, but these are preventable. We also know that pollution hits deprived communities and those near busy roads or industrial estates the hardest, yet without action, their voices will be ignored. By explicitly including air quality, we can create healthier communities, which will translate into fewer hospital visits and a better quality of life for everyone.

By explicitly including air quality in the duty of combined county authorities and combined authorities to reduce health inequalities, amendments 253 and 254 would ensure that environmental factors are considered alongside social and economic ones. They also would encourage authorities to make evidence-based decisions across transport and planning, and also about the siting of heavy industry in an area, so we would like to hear the Minister’s views and assurances on these important issues.

[Miatta Fahnbulleh]

I thank both hon. Members for their heartfelt contributions to the debate. Let me put it on record that we absolutely recognise that air quality is one of the greatest environmental threats to our health and that its impacts are not felt equally in our society. Action by local authorities is absolutely pivotal in improving air quality locally. The Environment Act 1995 already requires combined authorities and combined county authorities to work directly with local authorities on air quality action plans for their areas. Local air quality management statutory policy guidance also sets out ways of joint working with public health professionals to ensure that plans reduce health risks and disparities in affected communities to which local authorities must have regard.

Equally, we recognise the importance of environmental factors beyond air quality to people’s health. The scope of the general health determinants in the Bill has intentionally been crafted broadly. Some examples are given, but it is not our intention to set out a definitive list, as we think that would be too constraining. Combined authorities and combined county authorities remain the experts in their local areas. They will understand how air quality or environmental issues are impacting on their local communities, and they are best placed to decide how to consider general health determinants to deliver for their communities.

[Siân Berry]

Will the Minister clarify how the list in clause 43 as it stands was put together? It is bizarre that the use of tobacco and those kind of lifestyle choices are somehow explicitly listed, when environmental factors as a whole are left out.

[Miatta Fahnbulleh]

Those are examples that we are giving based on existing precedents and drivers that we know local authorities are grappling with, but the list is not exhaustive. The intention is for it not to be exhaustive or definitive. We want to keep it broad, so that combined authorities and county authorities can decide the core determinants in their areas.

We as a Government are committed to the enhancement and protection of our environment. It is the Government’s intention to publish a revised environment improvement plan to protect and restore our natural environment with delivery information to help to meet the ambitious Environment Act 2021 targets. This will help us to restore our natural environment, improve environmental quality, create a circular economy, protect environmental security and improve people’s access to nature. That is something we want to hardwire into what the Government are doing and what we are seeing at all levels of government.

However, I come back to the point that it is important to cast this as broadly as we can, to allow constituent strategic authorities and mayors to establish the determinants that are most pertinent in their areas. While I have sympathy with and support the intent behind the amendments, there is enough provision in the Bill as drafted to ensure that what strategic authorities are doing is aligned with a host of national and local requirements already in place to drive health equality and improvements in the environment.

[Siân Berry]

I thank the Minister for her comments. I cannot accept that a detail such as tobacco use was put in, and standards of housing as a result of Awaab’s law and the things have gone on there, and yet environmental factors have not yet been included. I am determined that they should be, and I still intend to push this to a vote.

Question put, That the amendment be made.

--- Later in debate ---

[Siân Berry]

Amendments 255 and 256 would add a health and wellbeing in all policies strategy to the requirements of the Bill. Life expectancy in England has stalled since 2010, something that has not happened for well over a century. According to Professor Sir Michael Marmot, that is a sign that society has “stopped improving”.

The Government have committed to halving the gap in healthy life expectancy between the richest and poorest regions of England, but that cannot be achieved without concerted action from the strategic authorities. Good population health is the foundation of a thriving economy. The Government have committed to halving the gap, and amendments 255 and 256 would go further than the Bill does currently to achieve that, simply by requiring mayors and strategic authorities to have regard to health through adoption of a health and wellbeing in all policies strategy document. The amendments would also require consultation with relevant entities and create accountability through targets and metrics. I commend the amendment to the Committee.

[Miatta Fahnbulleh]

I go back to the core principle underlying the duty. We believe that a driving purpose of the strategic authority should be to improve health outcomes and reduce health inequalities, so we are absolutely aligned with the intent behind the amendment, and nothing in the Bill prevents local partners from agreeing to align on an area-wide approach or strategy. We are very clear that we must allow combined authorities and county authorities local discretion to decide the best way to fulfil the duty and deliver for their communities. We do not want to overprescribe or constrain local thinking and innovation—indeed, many local areas throughout the country are well ahead of the national Government in some of their thinking in this area.

--- Later in debate ---

[Vikki Slade]

Amendments 21 to 23 relate to the integration of police and crime commissioners into the strategic mayoral system. They are quite straightforward, requiring the Secretary of State to make regulations and thereby ensure more parliamentary oversight of the inclusion of the police and crime commissioners, given that this is such a fundamental change in so many areas.

I am upset that established authorities in several areas have already taken on those roles, but many of the strategic mayoral authorities are brand-new organisations that will potentially be taking on functions way beyond their scope. They will also potentially be taking on police and crime functions that run across completely different policing and crime areas with different strategies and ways of working in terms of police and crime panels and their scrutiny. We believe that to do that through the proposed process will produce a rushed system. I commend the Minister for her decisiveness, but sometimes it is better to pause and take a slower approach to bringing together those organisations, rather than rush the process.

We are already seeing huge changes to our integrated care boards, with many being abolished. Rather than alignment, we see some coming together for financial reasons or for convenience. There is a real risk that trying to do all of that in harmony ends up not with the right outcomes but ones that suit the creation of a very simplistic jigsaw. Most of the mayors will be taking on roles that they have never performed before. We feel that it is time to pause, slow the pace and ensure that this has more parliamentary oversight.

[Miatta Fahnbulleh]

The purpose of the provision in the Bill is to give the Secretary of State the power to make that transfer in a way and at a time that makes sense. Whether with regard to the electoral timetable or to issues of deliverability and the viability of the transfer, the Secretary of State’s ability to take a view and set a future date is why we have provided that power to mitigate the issues the hon. Lady is concerned about. The default should be that the police and crime commissioner function sits with the mayor where the geographies align. That is an important principle as we build up the mayoral strategic authorities across the country.

[Vikki Slade]

I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn

--- Later in debate ---

[The Chair]

Before we resume, I remind Members to switch electronic devices to silent, and that tea and coffee are not allowed during sittings.

[Miatta Fahnbulleh]

I beg to move amendment 198, in clause 44, page 46, line 29, leave out “fire and rescue” and insert “police”.

This would correct the reference in the second sentence of new section 107FA(4).

[The Chair]

With this it will be convenient to discuss Government amendments 199, 202, 200, 201, 203 and 204.

[Miatta Fahnbulleh]

This basket of amendments seeks to correct drafting errors, including inconsistencies and inaccurate references, to ensure that the Bill functions as intended. Amendments 202 and 203 are consequential to Government amendments 77 and 80, which the Committee passed when it voted on clause 11 on the mayoral precept. They ensure that mayors’ police and crime commissioner functions are ringfenced as a separate component from other functions.

[Paul Holmes]

We cannot expect the Government to get it right all the time with minor things, and these seem like sensible changes to smooth the legislation. We therefore have no problem with this group of amendments.

Amendment 198 agreed to.

Amendments made: 199, in clause 44, page 46, line 36, leave out—

“mayoral combined authority or mayoral CCA”

and insert “combined authority”.

This would correct an inconsistency.

Amendment 202, in clause 44, page 47, line 8, leave out from “there” to the end of line 11 and insert—

“is a separate component in respect of the mayor’s PCC functions,”.

This amendment is consequential on Amendment 77.

Amendment 200, in clause 44, page 47, line 34, leave out “mayoral”.

This would correct an inconsistency.

Amendment 201, in clause 44, page 48, line 8, leave out “mayoral”.

This would correct an inconsistency.

Amendment 203, in clause 44, page 48, line 19, leave out from “there” to the end of line 22 and insert—

“is a separate component in respect of the mayor’s PCC functions,”.

This amendment is consequential on Amendment 80.

Amendment 204, in clause 44, page 48, line 36, leave out paragraphs (a) to (c) and insert—

“(a) paragraph 21(a) of Schedule 5 to the West Yorkshire Combined Authority (Election of Mayor and Functions) Order 2021 (S.I. 2021/112),

(b) paragraph 21(a) of Schedule 5 to the York and North Yorkshire Combined Authority Order 2023 (S.I. 2023/1432), and

(c) paragraph 21(a) of Schedule 1 to the South Yorkshire Mayoral Combined Authority (Election of Mayor and Transfer of Police and Crime Commissioner Functions) Order 2024 (S.I. 2024/414),”.—(Miatta Fahnbulleh.)

This would remove the unnecessary word “after” from paragraphs (a) to (c), insert references to the relevant Schedules to the Orders, and correct the citation of the South Yorkshire Order.

Question proposed, That the clause, as amended, stand part of the Bill.

[Miatta Fahnbulleh]

The clause sets out the criteria for transfer by default of police and crime commissioner functions to the mayor of a strategic authority, where the mayoralty matches the geography of the police force area and a transfer date has been set. Making mayors responsible for policing governance offers a more joined-up approach to preventing crime and driving local economic improvements. It will enhance mayors’ broader ability to bring about local change by bringing together responsibility for policing and crime with mayors’ wider remit for economic development, skills and infrastructure. This delivers the ambition set out in the English devolution White Paper.

Mayors who have police and crime commissioner functions will be required to appoint a deputy mayor for policing and crime. That will ensure that the mayor has sufficient capacity to discharge their functions, while ensuring there is dedicated oversight of policing on a day-to-day basis. The clause provides for a mayor to exercise police and crime commissioner functions for either a single police force, or more than one force when the boundaries of those forces align with the mayoral area when taken together.

[Paul Holmes]

We welcome this section of the legislation. I congratulate the Minister, the Government and officials on ensuring in legislation a smooth process for transfer of responsibilities, and on including a target date. The people served by the mayors—that is, our constituents—will want to understand very simply what new powers and responsibilities are being handed to the mayor. This is a sensible solution.

We also welcome the creation of the deputy mayor for police and crime. Given the responsibilities outlined in other sections of the Bill, the mayor will quite rightly have many and multifaceted responsibilities. It is therefore perfectly reasonable to provide in statute for a deputy mayor specifically to cover the police and crime powers of the mayoralty. That will ensure that policing and crime is looked at as a top priority for the residents they serve. We welcome this sensible section of the legislation, and will not seek to oppose it.

--- Later in debate ---

[Miatta Fahnbulleh]

The clause sets out the functions of a police and crime commissioner that a mayor will exercise where they have been transferred under the Bill. The clause also amends the Secretary of State’s existing power to alter police force boundaries by order, so that orders can be made at the same time as the transfer of the police and crime commissioner functions to a mayor. These would be used where a local case had been made to change the boundaries to facilitate a transfer of the PCC function.

--- Later in debate ---

[Andrew Cooper]

I agree entirely with the principle of mayors holding responsibility for police and crime commissioners where the boundaries of the roles are coterminous, and the idea of appointing a deputy mayor to that role makes absolute sense, as does the power to align boundaries where it makes sense administratively. That all works in principle. My concern is about how this will be applied in Cheshire. Halton local authority is part of the Liverpool city region. That was a decision made when the Liverpool city region was first proposed—at the time the Minister may well have been in the Ministry of Housing, Communities and Local Government as a civil servant—and for Halton, then, it was the only game in town.

The proposed Cheshire and Warrington combined authority will cover the remainder of Cheshire—Cheshire West and Chester, Cheshire East and Warrington—and is not coterminous with Cheshire police, which covers all of Cheshire and includes Halton, as does Cheshire fire and rescue. This measure will therefore allow the Home Secretary to change the police boundaries, and there are significant concerns within Cheshire police that, were this to go ahead, their viability would be at risk, as well as practical concerns about the location of the custody suite.

This power already exists regarding fire and rescue services, but, under the Fire and Rescue Services Act 2004, the Secretary of State is required to consider whether the order is in the interests of public safety before it is made. That test is not included in this Bill. In her summing up, could the Minister provide some reassurance that this power will not be exercised in Cheshire’s case without due consideration of that public safety factor, as well as significant consultation with local stakeholders to make sure that any future alignment is right for Cheshire?

[Miatta Fahnbulleh]

I will speak to the specific amendments, then come to my hon. Friend’s important intervention about Cheshire and some of the specific challenges that we face there.

It is worth noting on amendment 26 that the Association of Police and Crime Commissioners and the deputy mayors for policing and crime are supportive of this measure. Deputy mayors for policing and crime are already making a difference in areas such as West Yorkshire and Greater Manchester. They are driving through improvements in their local police forces, fostering collaboration and doing the role that we absolutely need them to do.

On my hon. Friend the Member for Mid Cheshire’s important point, because we are not working from a blank piece of paper, and because there are complexities around the boundaries, we are trying to be sympathetic, sensitive and mindful. Obviously, the strategic intent of Government is to ensure that, when there is a transfer of police and crime commissioner functions, that is not to the detriment of the functions on the ground, because we absolutely need those to hold out. We are therefore having specific conversations with Cheshire and Warrington, and the local leaders in that area have raised the specifics of the PCC function. We will work with them to come to the best solution and resolution—one that has no detriment to the constituent authorities involved.

Question put and agreed to.

Clause 45 accordingly ordered to stand part of the Bill.

Schedule 21

Functions of police and crime commissioners

Amendments made: 205, in schedule 21, page 206, line 9, after second “the” insert “police”.

This clarifies that “the Area” means a police area. This amendment is connected with amendment 206, which deals with the case where a mayor exercises PCC functions in relation to two or more police areas.

Amendment 206, in schedule 21, page 206, line 11, after “commissioner” insert—

“; and, in a case where a combined authority or combined county authority meets the eligibility condition in relation to two or more police areas (see section 107FA(4) of the Local Democracy, Economic Development and Construction Act 2009 or section 33A(4) of the Levelling-up and Regeneration Act 2023), this Schedule applies separately in relation to each of those police areas and ‘the Area’ is to be read accordingly”.

This clarifies that where a mayor exercises PCC functions in relation to two or more police areas that together make up the area of the combined authority or CCA, “the Area” here means each of the police areas (rather than the area of the combined authority or CCA).

Amendment 207, in schedule 21, page 209, line 41, at end insert—

“(j) a person who is the deputy mayor for policing and crime for a different police area.”

This would prevent a deputy mayor for policing and crime for one police area from being appointed as the deputy mayor for policing and crime for a different police area.

Amendment 208, in schedule 21, page 213, line 4, after “if” insert “—

‘(a) after subsection (1) there were inserted—

“(1ZA) If a combined authority or combined county authority meets the eligibility condition in relation to two or more police areas (see section 107FA(4) of the Local Democracy, Economic Development and Construction Act 2009 or section 33A(4) of the Levelling-up and Regeneration Act 2023)—

(a) subsection (1)(b) does not apply; but

(b) a person is disqualified from being elected to the office of police and crime commissioner for any of those police areas at any election unless, on each relevant day, the person is a local government elector in at least one of those police areas;

and for that purpose a person is ‘a local government elector in’ a police area if the person is registered in the register of local government electors for an electoral area in respect of an address in that police area.”;

(b)’”—(Miatta Fahnbulleh.)

This provides that, where a mayor is to exercise PCC functions in relation to two or more police areas that together make up the area of the combined authority or CCA, a candidate is disqualified only if the person is not on the electoral register in any of those areas.

Question proposed, That the schedule, as amended, be the Twenty First schedule to the Bill.

[Miatta Fahnbulleh]

The schedule sets out the content of the new schedule 10A that will be inserted into the Police Reform and Social Responsibility Act 2011. It provides that once the functions of a police and crime commissioner have been transferred so that they are exercised by a mayor, there will no longer be a PCC for that police force area, which I know the hon. Member for Mid Dorset and North Poole will be delighted about. It also explains how mayors are to exercise PCC functions where functions have been transferred.

I beg to move that this schedule stand part of the Bill.

Question put and agreed to.

Schedule 21, as amended, accordingly agreed to.

Clause 46

Functions of fire and rescue authorities

[Miatta Fahnbulleh]

I beg to move amendment 209, in clause 46, page 51, line 10, leave out from “for” to end of line 14 and insert—

“the whole of its area if the Secretary of State designates it as the fire and rescue authority for that area in accordance with section 1A(1);

(g) a mayoral combined authority or mayoral CCA is the fire and rescue authority for a part of its area if the Secretary of State—

(i) specifies that part of its area, and

(ii) designates it as the fire and rescue authority for that part of its area,

in accordance with section 1A(2) and (3).”

This would enable the Secretary of State to provide for a mayoral combined authority or CCA to be the fire and rescue authority for its area or part of its area. Amendment 212 makes further provision about these powers.

[The Chair]

With this it will be convenient to discuss Government amendments 210 to 219.

[Miatta Fahnbulleh]

This cluster of amendments to clause 46 allow a mayoral combined authority or a mayoral county combined authority to take on the role of a fire and rescue authority, where appropriate.

These amendments strengthen the fire and rescue provision in clause 46. They give the Secretary of State the power to designate strategic authorities as fire and rescue authorities. They also ensure that where strategic authorities cover more than one fire and rescue area, they take on responsibility for all fire and rescue authorities in their area.

Collectively, these amendments provide consistency and prevent fragmentation of governance, by requiring mayors to cover all fire and rescue authority areas within their boundaries, creating stronger accountability across local areas.

Amendment 209 agreed to.

Amendments made: 210, in clause 46, page 51, line 17, leave out from “for” to second “a” and insert—

“an area by virtue of subsection (2)(f) or (g),”.

This is consequential on Amendment 209.

Amendment 211, in clause 46, page 51, line 23, after “the” insert “combined authority or”.

This corrects an omission.

Amendment 212, in clause 46, page 51, line 25, leave out from beginning to end of line 37 on page 52 and insert—

““1A Designation of mayoral combined authorities and mayoral CCAs

(1) The Secretary of State may by order designate a mayoral combined authority or mayoral CCA as the fire and rescue authority for the whole of its area.

(2) The Secretary of State may—

(a) by order specify a part of the area of a mayoral combined authority or mayoral CCA, and

(b) by order designate the mayoral combined authority or mayoral CCA as the fire and rescue authority for the specified part of its area.

(3) But, if the Secretary of State exercises the powers conferred by subsection (2) in relation to a particular mayoral combined authority or mayoral CCA (the “relevant mayoral authority”), the Secretary of State must ensure that those powers are exercised so as to secure that—

(a) two or more parts are specified under subsection (2)(a) which, when taken together, consist of the whole of the area of the relevant mayoral authority;

(b) the relevant mayoral authority is designated as the fire and rescue authority for each specified part;

(c) all of those designations come into effect at the same time.

(4) Accordingly, where the powers conferred by subsection (2) are exercised in relation to the relevant mayoral authority—

(a) there are separate fire and rescue authorities for each area specified under subsection (2)(a);

(b) the fire and rescue authority for each of those areas is the relevant mayoral authority.

(5) The Secretary of State may by order provide for the name by which an area specified under subsection (2)(a) is to be known.

(6) An order under subsection (1) or (2)(a) or (b) may make consequential alterations to any other—

(a) section 1A(2) area,

(b) section 2 combined area, or

(c) section 4 combined area.

(7) The alterations that may be made by virtue of subsection (6) include alterations that result in a reduction or an increase in the number of such areas.

(8) An order under subsection (1) or (2)(a) or (b) may make provision for the abolition of—

(a) a metropolitan county fire and rescue authority,

(b) a combined fire and rescue authority constituted by a scheme under section 2, or

(c) a combined fire and rescue authority constituted by a scheme to which section 4 applies.

(9) The provision that may be made by regulations under section 52 of the English Devolution and Community Empowerment Act 2025 (incidental etc provision) for the purposes of, or in consequence of, an order under subsection (1) or (2)(a) or (b) relating to a particular mayoral combined authority or mayoral CCA and particular area includes—

(a) provision for functions of a fire rescue authority to be exercisable in relation to the area by the mayoral combined authority or mayoral CCA during a shadow period (and not by any fire and rescue authority by which those functions would otherwise be exercisable),

(b) provision for those functions to be exercisable only by the mayor on behalf of the mayoral combined authority or mayoral CCA;

(c) provision about who is to scrutinise the exercise of those functions;

(d) any other incidental, consequential, transitional, transitory or supplementary provision.

(10) In this section—

“section 1A(2) area” means an area specified in an order under subsection (2)(a) (including such an area as varied from time to time);

“section 2 combined area” means an area for which a combined fire and rescue authority is, or used to be, constituted by a scheme under section 2 (including such an area as varied from time to time);

“section 4 combined area” means the area for which a combined fire and rescue authority is, used to be, constituted by a scheme to which section 4 applies (including such an area as varied from time to time);

“shadow period” , in relation to provision made in accordance with subsection (9)(a) in relation to a particular area, means a period which—

(a) ends when the designation of the mayoral combined authority or mayoral CCA as the fire and rescue authority for the area takes effect, and

(b) is no longer than one year.””

This would make further provision about the Secretary of State’s power to provide for a mayoral combined authority or CCA to be the fire and rescue authority (see Amendment 209). In particular, subsection (3) would ensure that, where the area of a mayoral combined authority or CCA is to consist of several fire and rescue areas, it must be the fire and rescue authority for all of those areas.

Amendment 213, in clause 46, page 52, line 40, leave out from beginning to end of line 9 on page 53.—(Miatta Fahnbulleh.)

This would be consequential on Amendment 209.

[Vikki Slade]

I beg to move amendment 24, in clause 46, page 53, line 15, at end insert—

“(7) Regulations made under this section are subject to the affirmative procedure.”

This amendment would ensure that regulations made by the Secretary of State regarding the functions of fire and rescue authorities receive parliamentary scrutiny.

[Vikki Slade]

I should probably declare a personal interest—my father spent his life as a London firefighter throughout his career; I was a member of the local fire authority, and I have spent a lot of time talking to and engaging with the fire and rescue services. That was not because I managed to set my bedroom on fire as a child—although I did—but because fire safety has always been a lifelong passion of mine.

I am troubled that the Bill rolls fire and rescue services into the role of a mayor. That may be a great idea; in some cases, I know that fire and rescue services have come together with police and crime. However, the amount of attention that this Bill gives to fire and rescue, and indeed the comment made last week when I asked questions about the precepting and the funding of fire, which suggested that it was outwith the scope of this Bill, makes it feel as though fire and rescue are an afterthought. It feels as though the work of the fire and rescue services is not being given enough attention and that there has not been real thought about how they can best be delivered.

Fire and rescue authorities around the country are doing a really good job in supporting our services, often on tiny precepts, and in dealing with big, and changing issues. Wildfires around my Mid Dorset and North Poole constituency have been horrific this year, and we have just put in for Bellwin funding. The proportion of energy that is used in dealing with fires that are usually human-caused and flooding, which is also related to climate resilience, has gone through the roof.

To add fire and rescue services in as a couple of pages in a large Bill feels inadequate, which is why we are looking to ensure that regulations made under clause 46 are subject to the affirmative procedure, and why we are seeking more parliamentary scrutiny and energy around bringing in the fire and rescue services, particularly where they do not align.

My area is likely to be Wessex, if we get into the next round, and it will probably cover three different fire authorities. As well as having to get two or three different police authorities together, we will now have to get two or three different fire authorities from the police authorities. Adding the clause in at this stage is complicated, and sticking it in as two and a half pages of a Bill feels inadequate. Therefore, we ask that regulations made under the clause are subject to the affirmative procedure and receive suitable parliamentary scrutiny.

[Miatta Fahnbulleh]

I want to put on record that the Government absolutely recognise the vital role the fire and rescue authorities are playing across the piece; there is a huge amount of work going on in my Department to ensure that they are fit for purpose, that they are resourced and that they can continue to evolve. The Government believe that the negative procedure is the right and proportionate route for these regulations. The powers here in the Bill are simply technical powers, enabling powers that are already conferred in legislation for the fire and rescue authority functions to be transferred. That is why they take up such a small proportion of the Bill—it is a technical change rather than a substantive one, which exists already in legislation.

It is important that there is a timely transfer of these functions so that mayors can deliver joined-up services without lengthy procedural hurdles. Subject to clause 46 standing part of the Bill, Parliament would have already approved the principle of mayors exercising fire and rescue functions. This part of the Bill makes that transfer live and real. I hope the hon. Member for Mid Dorset and North Poole appreciates the care that we certainly have around the fire and rescue service and that there is much wider work going on outside the scope of the Bill about how we ensure those services are fit for purpose, and will therefore withdraw her amendment.

[Vikki Slade]

I would have loved to do that, but I feel that this transfer needs to be a deliberate and active thing. I spoke to my chief fire officer, who seemed completely oblivious to what is going on. If our chief fire officers are not really aware of what is going on, then more needs to be done, and therefore I would like to press the amendment to a vote.

Question put, That the amendment be made.

--- Later in debate ---

This would be consequential on Amendment 209.

[Miatta Fahnbulleh]

I beg to move amendment 220, in schedule 22, page 234, line 12, at end insert—

“LDEDCA 2009

1 (1) LDEDCA 2009 is amended in accordance with this paragraph.

(2) In section 107D (delegation of functions by the mayor), after subsection (3) insert—

‘(3A) Subsection (3) is subject to section 107DZA.’

(3) After section 107D insert—

‘107DZA Limitation on delegation of mayoral functions

(1) The mayor may not make an arrangement under section 107D(3)(a) or (b) for the exercise of any fire and rescue functions of the combined authority.

(2) The power to make an arrangement under section 107D(3)(ba) is subject to paragraph 7 of Schedule 5BA.

(3) In this section “fire and rescue functions of the combined authority” means—

(a) functions of a fire and rescue authority which the combined authority has by virtue of an order under section 105A (and here “fire and rescue authority” means a fire and rescue authority under the Fire and Rescue Services Act 2004), or

(b) functions which the combined authority has as a fire and rescue authority by virtue of section 1(2)(f) or (g) of the Fire and Rescue Services Act 2004.’

LURA 2023

2 (1) LURA 2023 is amended in accordance with this paragraph.

(2) In section 30 (functions of mayors: general), after subsection (3) insert—

‘(3A) Subsection (3) is subject to section 30A.’

(3) After section 30 insert—

‘30A Limitation on delegation of mayoral functions

(1) The mayor may not make an arrangement under section 30(3)(a) or (b) for the exercise of any fire and rescue functions of the CCA.

(2) The power to make an arrangement under section 30(3)(ba) is subject to paragraph 7 of Schedule 2A.

(3) In this section “fire and rescue functions of the CCA” means—

(a) functions of a fire and rescue authority which the CCA has by virtue of regulations under section 19 (and here “fire and rescue authority” means a fire and rescue authority under the Fire and Rescue Services Act 2004), or

(b) functions which the CCA has as a fire and rescue authority by virtue of section 1(2)(f) or (g) of the Fire and Rescue Services Act 2004.’”

In new sections 107DZA and 30A, subsection (1) would prevent the mayor from delegating fire and rescue functions to a deputy mayor or another member or officer of mayoral authority; and subsection (2) would replace wording in clause 9(2) and (5) (see Amendment 68 and Amendment 69).

As the Committee has previously discussed in the context of consequential amendments 68 and 69 to clause 9 of the Bill, Government amendment 220 ensures that responsibility for fire and rescue functions sits directly with the elected mayor. The mayor can delegate those powers only to the public safety commissioner and not to deputies or officers, which strengthens accountability. I commend the amendment to the Committee.

Amendment 220 agreed to.

Schedule 22, as amended, agreed to.

Clause 47

Mayor with PCC and fire and rescue functions

Question proposed, That the clause stand part of the Bill.

[Miatta Fahnbulleh]

The clause introduces alternative ways by which a mayor or strategic authority may exercise fire and rescue and police and crime commissioner functions introduced by the Bill. The Government aim to establish mayoralties with the full range of powers and responsibilities wherever possible. The clause enables the Secretary of State to authorise a mayor of a strategic authority to delegate fire and rescue authority functions to a chief constable and to authorise that chief constable to further delegate fire and rescue authority functions to police and fire rescue personnel. I commend the clause to the Committee.

Question put and agreed to.

Clause 47 accordingly ordered to stand part of the Bill.

Clause 48

Sharing of information

Question proposed, That the clause stand part of the Bill.

[Miatta Fahnbulleh]

Strategic authorities have a number of responsibilities in relation to public safety, something that I know Members across the House care very much about. The Bill deepens those responsibilities. The clause brings combined and combined county authorities into a group of public sector organisations that can receive information in relation to crime and disorder. It also places a duty on the combined or combined county authority to share information about crime and disorder with other public sector organisations as required, and vice versa. That will empower the combined and combined county authorities and partner organisations to develop intelligence, make informed decisions and implement appropriate responses to crime and disorder issues such as crime prevention. I commend the clause to the Committee.

Question put and agreed to.

Clause 48 accordingly ordered to stand part of the Bill.

--- Later in debate ---

[Siân Berry]

I have a broad interest in this group of measures. First, I will raise some issues with the clause as a whole; then I will speak to new clause 53, and then new clauses 32 and 33 on a separate topic. I hope hon. Members will bear with me as I work through those three parts.

I support clause 49, which provides a way for mayors of strategic authorities to usefully request more powers, but the gap in the Bill highlights that we need the Government to make bolder policies in the areas of competence so that strategic authorities can request that they should be devolved to the lower levels. I will turn to the example of housing in a moment but, in general, it would be great to see strategic authorities working together to develop models of rent controls. As I understand it, however, because those powers do not currently exist centrally, strategic authorities cannot make requests for them under the clause. We need to be bolder at the centre to maximise the effectiveness of devolution on such issues.

If a Bill is not the right place to create a new power that is usable only in a local area, what is? Can the Minister explain why the Government have not taken the opportunity of the Bill to allow councils or new authorities to request those kinds of powers in areas where the Government do not currently act? It is on that principle that my hon. Friend the Member for Bristol Central (Carla Denyer) tabled new clause 53, which I will speak to now. It does not do what I just suggested, but it does allow for clear reporting of the conversations between mayors and the Government on the use of clause 49 powers. That includes where authorities have made requests for powers to be created and devolved to them, even when there is no existing national power to devolve.

If the Secretary of State’s goal is to make sure people take back control of their own destinies, it is only right that this power should be considered. Ministers need to pay serious attention to the full range of powers that mayors are already saying they need in order to make a material difference to people’s lives. As the Secretary of State for Housing said in his speech at the Labour party conference, communities have been held back because they do not have the power to make the changes they want. The new clause would at least help to keep track of the powers mayors are asking for under clause 49, as well as the additional powers they are telling Ministers to legislate for to enable them to do the best for their communities and, ultimately, to fulfil their areas of competence.

The new clause is not prescriptive as to which policies and areas need to be considered, but as I implied earlier the area of competence that inspired it is housing. That is because we are in an acute affordability and evictions crisis, and mayors have been calling for rent control powers from Ministers for some time. For example, in 2023, the Mayors of Manchester, Liverpool and London wrote to the then Secretary of State calling for a rent freeze, in order to immediately relieve the pressure on millions of people in the private rented sector in their areas. Recently, the Mayor of London said that the power to control rents was now at the top of his list in terms of devolution. His position follows many years of pressure and dialogue with politicians such as the Greens on the London Assembly—of which I used to be one—and with independent grassroots renters groups.

That is just one example of the kind of power that would be involved. Rent controls are something close to my heart, and we heard new figures today showing that 172,000 children are now in temporary accommodation in the UK. On average, people spend 36% of their income on rent—in my constituency, it is 42%. This is a classic policy for that issue.

The annual report the new clause requires would recognise the need for transparency over the discussions taking place about powers in the Bill—in the absence of the changes I have asked for in it—and also let us see what is going on in the conversations happening outside of the powers in the Bill.

New clauses 32 and 33 do what I just talked about and what clause 49 does, but at the level of the strategic authority. This is about the strategic authority having a duty to have a plan for devolving more of its powers and duties to smaller local authorities in its area. I recognise that the aims of devolution can often be in tension, particularly in terms of the balance between scale and geography. It is correct to have some powers at the level of combined authorities, so that they cover sufficiently large populations and enable authorities to exercise strategic policy making. But large authorities will not necessarily empower local people to address issues that are unique to their area; they might not represent the diversity of things going on around that area, and issues that people really care about in local communities might be better addressed using deeper local knowledge.

The new clauses do not prescribe a single model for this further local devolution. There is such diversity. We have discussed today the differences between coastal areas, rural areas, towns and larger urban areas. We have talked about areas with countryside and nature to protect, areas that need new investment, and areas with unique industries that could be developed locally.

I do not think that we should be prescriptive in our new clauses; we should just put in place a legal duty that makes some kind of move towards subsidiarity across the whole of English local government. Under the new clauses, the strategic authority would have a duty to set out how it would devolve its own responsibilities to the lowest possible level for effectiveness—including, where they exist, district, town and parish councils. I think that would be a really positive thing that would please most Opposition Members on the Committee. I hope that the Minister will take that onboard and come up with some way of codifying the need for the new strategic authorities to avoid becoming too centralised and to make a plan for listening and devolving powers down to the right level.

[Miatta Fahnbulleh]

I thank hon. Members for their amendments and new clauses. Let me say a word about clause 49, and then I will speak to those.

We are clear that devolution is a continuous process. Our intention in the Bill is therefore to create a framework to establish mayoral strategic authorities and empower them to deepen devolution. That is what the right to request, which we have been debating, does. Critically, the right to request will hardwire the process of continual extraction of power from the centre—from Whitehall and Westminster—to our local areas, which is why the clause is so important.

In my view, amendments 9 and 3 are too constraining, as not all mayoral requests will require a legal process in order to be implemented. For example, requests to change funding, or pilot schemes or partnerships, do not have any legal requirements and do not require legal clearance. My concern is that the amendments would make the process too onerous and bureaucratic and, critically, slow it down. Anyone involved in the devolution process knows that extracting power from Whitehall is slow and painful as it is. I would not want to add further hurdles to that process.

I appreciate the intent behind new clause 32, but similar mechanisms to those proposed in it already exist. Any combined authority or combined county authority can enter into a joint committee with another local authority and collaborate across boundaries to jointly discharge their powers. Also, the additional requirement proposed by the hon. Member for Brighton Pavilion for strategic authorities to publish a community empowerment plan may end up being too burdensome and, critically, risks conflating the roles of the strategic and the local authorities.

We are clear that we want to see double devolution, and that we want to extract power from Whitehall and make sure that it is pushed down to the strategic authority level, the local authority level and, critically, the community level for community empowerment. We will go on to talk about neighbourhood governance—we have talked about it before in debates. There is a vital role for local authorities to enable and enshrine that community empowerment and engagement, and there is a risk that we conflate the strategic economic role of the mayor and the combined authority with the critical enabling role of the local authority.

Earlier, Members across the Committee talked eloquently about the need for us to ensure that local authorities continue to have a vital role and are empowered. I would not want to take something that I think is a core competency of local authorities, which are well placed to drive that community engagement, and lift it from the local authority level to the strategic level.

Finally, on new clause 33, the Bill already provides adequate powers for strategic authorities to request and receive functions and duties from non-departmental public bodies. On clause 53 and the notion that the right to request should be made transparent, while the process is transparent, I think it is important that we create the space for mayors to have detailed policy conversations with the Secretary of State and with Secretaries of State across Departments, and that those conversations can be open, frank and sensitive. We do not want to create a process whereby we constrain mayors’ ability by publishing all the detail. The outcomes will be put in the public domain, but it is important that we create the space for mayors to undergo a policy process and that we allow an internal and private space for frank, robust policy conversations to happen in this context.

--- Later in debate ---

[Miatta Fahnbulleh]

I must tell the hon. Lady that I can barely hold them back. Our mayors are pretty independent-minded and robust, and they are very clear when they want a particular power. They run effective campaigns and they are very good at advocacy, so I do not think the Government need to—or indeed can—tell them what to do. They are very clear about the powers they want; they build consensus among all their partners to ensure that they apply maximum pressure on Government to respond effectively to the right to request, and rightly so. That is the case now and I suspect that, once we give them legal powers in this Bill, it will continue to be so.

[Vikki Slade]

I am content that the scope of the amendment may have been broader than intended in terms of some of the minor things that a local authority may wish to do, but I ask the Minister to keep in mind the larger-scale changes that may be required, which really should come with some form of Government statutory intervention. I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Clause 49 ordered to stand part of the Bill.

Clause 50

Powers to make regulations in relation to functions of strategic authorities and mayors

Question proposed, That the clause stand part of the Bill.

[Miatta Fahnbulleh]

I thank you, Dame Siobhain, and all hon. Members for the swift and substantial progress we have made on the Bill today. I am grateful for everyone’s patience and the constructive way they have engaged in debate.

The devolution framework delivered by this Bill is the floor, not the ceiling, of our ambition for devolving real powers to local communities. That is why we are taking the power to add new functions to the framework, which will ensure that strategic authority mayors have the powers they need to deliver for local people. The Government will not be taking those decisions in isolation; any new functions added to the framework will be subject to votes in both Houses of Parliament and to consultations with the mayor, the constituent councils and the body currently holding those functions.

It is important that the governance arrangements within strategic authorities enable local leaders to make effective decisions to deliver for their people, so the Government are taking the power to modify governance arrangements where necessary. In some cases, the best way to bring about real, substantive devolution across the country will be to test it in one or two places first. The Bill therefore allows the Government to confer or modify functions on a pilot basis, which will enable local leaders to innovate in order to deliver the best outcomes for their citizens.

Question put and agreed to.

Clause 50 accordingly ordered to stand part of the Bill.

Ordered, That further consideration be now adjourned.—(Deirdre Costigan.)