English Devolution and Community Empowerment Bill (Seventh sitting)

Siân Berry Excerpts

Committee stage
Tuesday 21st October 2025 Public Bill Committees

[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?

[Vikki Slade (Mid Dorset and North Poole) (LD)]

It is a pleasure to have you back in the Chair, Sir John. I welcome the introduction of MCIL. We have spoken before about how these authorities will be funded, and this is another tool in the toolbox. I am slightly concerned about how it will sit alongside strategic CIL and neighbourhood CIL. I would be really concerned if this took away the portion of money that is available for local neighbourhoods through neighbourhood forums or town and county councils to spend on hyper-local infrastructure, which can otherwise never be funded. I am also interested in the pieces of infrastructure that currently are funded through strategic CIL by an upper-tier authority. Will those responsibilities pass in full across to the mayor, so that we do not end up with a situation where the mayor gets the CIL, but the council gets the responsibility?

That is one of the reasons why we have tabled new clause 1, although the Minister may say we do not need part of it. The first part of the new clause states that the Secretary of State must, within six months of the passing of the Act, prepare and publish guidance on the implementation and administration of community infrastructure levy charges—tt may be that that is going to happen anyway. More importantly, there is the issue of error and incorrect charging. I have been speaking to my hon. Friend the Member for Newbury (Mr Dillon), who has been involved with the CIL Injustice Group, where there have been miscalculated charges, with councils charging up to £100,000 for the community infrastructure levy completely incorrectly. We know that CIL is supposed to be charged on additional dwellings for commercial use, not on self-builds or extensions, but that has happened in a number of councils around the country. There are a couple of councils in Surrey—Waverley in particular has a huge problem. The new Liberal Democrat council in West Berkshire had to pay back £300,000 in total to 18 different constituents who had all been incorrectly charged. In my own county of Dorset, there are cases where people have been incorrectly charged.

In some instances, people have been building their own home and suddenly had a notice put on the path outside. Some have been chased down for huge amounts of money, and some for tiny amounts of money, and have had court charges applied to them. It is a problem that needs solving. Last Monday in the Chamber—I believe you were present, Sir John—two Conservative Members raised cases from their own constituencies. A previous Minister said that a series of households had been badly hit. It is clear that the CIL regulations are not intended to operate in this way. We do not believe our new clause would create a significant new burden on the Secretary of State; it is there to assist, and we would be grateful for a commitment that its provisions will be rolled into the legislation.

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[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.

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[Perran Moon (Camborne and Redruth) (Lab)]

I am troubled by this concept. In my constituency, which is one of the most deprived in the United Kingdom, we have an opportunity to invest in a vast range of renewable energy to mine again critical minerals that will accelerate the transition away from fossil fuel use in order to transition to an economy based on green energy. I would like the hon. Lady to clarify this, but I think she is suggesting that that kind of growth is not acceptable in some way, and that we cannot have good-quality green growth that supports jobs in areas of extreme poverty and deprivation and deals with the challenges of international imports from areas of the world that do not share our values.

[Siân Berry]

That is a good question. Where there are opportunities to develop new industries and new jobs and create new economic activity, my new schedule enables local communities such as those in Cornwall to set inclusive economy indicators. In the examples given, that might mean that those new industries are owned and managed by the local people and the local community, rather than through outside investment from extractive industries that will take the profits elsewhere. Those are things for the local community to decide under the new schedule.

I will just finish the quote from the report by the New Economics Foundation and its allies:

“At a time of eroding trust in politics, this is a major problem for combined authorities elected to make the economy work better for people .”

My new clause and new schedule will help authorities to become more purposeful about developing their own unique economies and economic opportunities in a way that truly builds a better economy that serves local people, and not just more production and profits that can be extracted away from them without improving everyday lives. It will bring more people more inclusively into the local economies that we want to develop.

I will not press my proposals to a vote today, but I hope that the Minister has listened and will recognise that the current Government proposals could create the wrong incentives and the wrong measures of progress, and might risk producing the wrong outcomes for the people who live in the areas that will be governed by these economic plans. I also hope that she will make improvements similar to my proposals before the next stage of this Bill.

[Paul Holmes]

I will speak briefly not only to clause 38 but to new clause 9 and new schedule 1. Although the hon. Member for Brighton Pavilion has indicated that she does not wish to push these measures to a vote, it is important that we address her well-intentioned amendments. I absolutely agree with her about the economic situation that this country currently faces, caused by the Labour Government. However, we have a fundamental disagreement about the solution that she outlines.

That is because the Government are doing the right thing here in making sure that local growth plans are adequate and can do what they say on the tin: deliver economic growth for the people the mayor serves and the people we serve. I would argue that, if the economic situations are right, as set down in the powers that the Government are outlining, inclusivity is absolutely enshrined within those powers. If we have growth, twinned with the protections currently within legislation in this country, such as environmental protection, corporate social responsibility and some of the equality legislation that we have, inclusivity will be delivered by the new businesses created by the people being empowered to set them up, and those businesses will be able to grow because of some of the measures that the Government are introducing.

The hon. Lady mentioned consultation and inclusivity in terms of people being able to shape their futures. I believe that that is a debate that we had last week when we were considering her amendment on citizens’ assemblies—she knows my oft-stated view on those. I will not tell the Committee that view again, because my blood pressure might rise slightly if I did. Once again, however, I will argue that the point at which there is inclusivity and advocacy from people is at an election, and that the mayor will be judged at an election on whether they have been able to deliver economic growth and whether they have fundamentally made life better for their constituents over the time that they have been in office.

[Siân Berry]

Is the hon. Member really saying that that he is against asking the people of a local area what would constitute a good economy for them and making that the focus of the mayor’s economic indicators? Also, if all of these proposals are going to be put into manifestos at election time, how long does he envision the manifestos for these mayoral elections being?

[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.

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[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?

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[Paul Holmes]

Is there a clearer example than that of how this issue could contribute to the local growth plans that we are discussing?

The legislation is being drafted at a time when the operational environment is changing. The Minister needs to accept that, as the hon. Lady outlined, because of the proposals, there has been a major asset transfer to our town and parish councils that means they have become quite fundamental and large-scale landowners. Some of that development opportunity—that opportunity to look strategically at where growth needs to come into our local communities—is, crucially, allocated to some of our town and parish councils, but the legislation completely and wilfully removes them from any consultation exercise with a mayor.

I think that this is a pragmatic Government, and that the legislation was drafted before they realised that the consequences of some of the proposed measures were that district councils, because of the funding situation, had started to move some of those assets. The Minister needs to realise that the operational environment has fundamentally changed because, as I have said, it is crucial that town and parish councils are included in relation to land holdings as well as some of the operational responsibilities that they now have. Otherwise, the proposed local growth plans will not deliver on the key aspiration that has been outlined.

[Siân Berry]

Apart from seeking views, there is a requirement in the amendment to share draft proposals and the evidence base. Does the hon. Member consider that to be an important part of correcting errors in the evidence base and in the assumptions of the draft proposals, which only those councils might have information about?

[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.