English Devolution and Community Empowerment Bill (Tenth sitting)

(Limited Text - Ministerial Extracts only)

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Lewis Cocking Portrait Lewis Cocking (Broxbourne) (Con)
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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.

Miatta Fahnbulleh Portrait The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Miatta Fahnbulleh)
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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 Portrait Manuela Perteghella
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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.

Division 54

Ayes: 4


Conservative: 2
Green Party: 1
Liberal Democrat: 1

Noes: 9


Labour: 9

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Miatta Fahnbulleh Portrait Miatta Fahnbulleh
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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 Portrait Paul Holmes
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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.

None Portrait The Chair
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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 Portrait Miatta Fahnbulleh
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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 Portrait Paul Holmes
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Well, there we have it: the mask has slipped—

Paul Holmes Portrait Paul Holmes
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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 Portrait Miatta Fahnbulleh
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On a point of clarification, it is consent to the creation of a new strategic authority, so this is the tier above.

Paul Holmes Portrait Paul Holmes
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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 Portrait Miatta Fahnbulleh
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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 Portrait Paul Holmes
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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 Portrait Miatta Fahnbulleh
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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 Portrait Paul Holmes
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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.

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Question proposed, That the clause stand part of the Bill.
Miatta Fahnbulleh Portrait Miatta Fahnbulleh
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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 Portrait Siân Berry (Brighton Pavilion) (Green)
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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.

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Miatta Fahnbulleh Portrait Miatta Fahnbulleh
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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.

Division 55

Ayes: 9


Labour: 9

Noes: 3


Conservative: 2
Green Party: 1

Clause 57 ordered to stand part of the Bill.
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Manuela Perteghella Portrait Manuela Perteghella
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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 Portrait Miatta Fahnbulleh
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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 Portrait Kevin McKenna (Sittingbourne and Sheppey) (Lab)
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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 Portrait Miatta Fahnbulleh
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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.

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Siân Berry Portrait Siân Berry
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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 Portrait Miatta Fahnbulleh
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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 Portrait Siân Berry
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I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

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Paul Holmes Portrait Paul Holmes
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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 Portrait Miatta Fahnbulleh
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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.

Division 56

Ayes: 4


Conservative: 2
Green Party: 1
Liberal Democrat: 1

Noes: 8


Labour: 8

Question proposed, That the schedule be the Twenty-fifth schedule to the Bill.
None Portrait The Chair
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I call the Minister to open the debate.

Miatta Fahnbulleh Portrait Miatta Fahnbulleh
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As we have debated amendments to the schedule, we can deal with it formally.

Question put and agreed to.

Schedule 25 accordingly agreed to.

None Portrait The Chair
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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.

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Manuela Perteghella Portrait Manuela Perteghella
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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 Portrait Miatta Fahnbulleh
- Hansard - - - Excerpts

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 Portrait Manuela Perteghella
- Hansard - - - Excerpts

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 Portrait Miatta Fahnbulleh
- Hansard - - - Excerpts

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 Portrait Manuela Perteghella
- Hansard - - - Excerpts

In the light of the Minister’s assurances, I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Siân Berry Portrait Siân Berry
- Hansard - - - Excerpts

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 Portrait Miatta Fahnbulleh
- Hansard - - - Excerpts

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 Portrait Siân Berry
- Hansard - - - Excerpts

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 Portrait Miatta Fahnbulleh
- Hansard - - - Excerpts

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 Portrait Siân Berry
- Hansard - - - Excerpts

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 Portrait Miatta Fahnbulleh
- Hansard - - - Excerpts

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.

None Portrait The Chair
- Hansard -

With this it will be convenient to discuss clause stand part.

Miatta Fahnbulleh Portrait Miatta Fahnbulleh
- Hansard - - - Excerpts

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 Portrait Lewis Cocking
- Hansard - - - Excerpts

Does the Minister include metropolitans and unitary councils in what she has just said?

Miatta Fahnbulleh Portrait Miatta Fahnbulleh
- Hansard - - - Excerpts

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.

None Portrait The Chair
- Hansard -

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 Portrait Miatta Fahnbulleh
- Hansard - - - Excerpts

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 Portrait Paul Holmes
- Hansard - - - Excerpts

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 Portrait Miatta Fahnbulleh
- Hansard - - - Excerpts

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 Portrait Manuela Perteghella
- Hansard - - - Excerpts

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 Portrait Paul Holmes
- Hansard - - - Excerpts

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 Portrait Miatta Fahnbulleh
- Hansard - - - Excerpts

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.

Division 58

Ayes: 9


Labour: 8
Green Party: 1

Noes: 2


Conservative: 2

Clause 59 ordered to stand part of the Bill.
--- Later in debate ---

Division 59

Ayes: 9


Labour: 8
Green Party: 1

Noes: 2


Conservative: 2

Schedule 26 agreed to.
--- Later in debate ---
Miatta Fahnbulleh Portrait Miatta Fahnbulleh
- Hansard - - - Excerpts

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 Portrait Manuela Perteghella
- Hansard - - - Excerpts

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 Portrait Manuela Perteghella
- Hansard - - - Excerpts

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 Portrait Miatta Fahnbulleh
- Hansard - - - Excerpts

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 Portrait Manuela Perteghella
- Hansard - - - Excerpts

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 Portrait Manuela Perteghella
- Hansard - - - Excerpts

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 Portrait Miatta Fahnbulleh
- Hansard - - - Excerpts

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 ---

Division 60

Ayes: 2


Green Party: 1
Liberal Democrat: 1

Noes: 9


Labour: 9

Manuela Perteghella Portrait Manuela Perteghella
- Hansard - - - Excerpts

I beg to move amendment 373, in schedule 27, page 266, line 5, at end insert—

“(c) it is land of on which there are buildings of historical significance.”

This amendment would expand the criteria for a local authority classifying land as of community value to include land on which there are buildings of historical significance.

--- Later in debate ---
Siân Berry Portrait Siân Berry
- Hansard - - - Excerpts

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 Portrait Miatta Fahnbulleh
- Hansard - - - Excerpts

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 Portrait Manuela Perteghella
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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 Portrait Miatta Fahnbulleh
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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.

None Portrait The Chair
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With this it will be convenient to discuss Government amendments 234, 223 to 233 and 235.

Miatta Fahnbulleh Portrait Miatta Fahnbulleh
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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.)