English Devolution and Community Empowerment Bill (Twelfth sitting)

Committee stage
Tuesday 28th October 2025 Public Bill Committees

The Committee consisted of the following Members:

Chairs: Sir John Hayes, † Dame Siobhain McDonagh, Graham Stuart, Valerie Vaz

† Berry, Siân (Brighton Pavilion) (Green)

† Blundell, Mrs Elsie (Heywood and Middleton North) (Lab)

† Carling, Sam (North West Cambridgeshire) (Lab)

† Cocking, Lewis (Broxbourne) (Con)

† Cooper, Andrew (Mid Cheshire) (Lab)

† Costigan, Deirdre (Ealing Southall) (Lab)

† Ellis, Maya (Ribble Valley) (Lab)

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

† Holmes, Paul (Hamble Valley) (Con)

† McKenna, Kevin (Sittingbourne and Sheppey) (Lab)

† Moon, Perran (Camborne and Redruth) (Lab)

† Perteghella, Manuela (Stratford-on-Avon) (LD)

† Reader, Mike (Northampton South) (Lab)

† Simmonds, David (Ruislip, Northwood and Pinner) (Con)

† Slade, Vikki (Mid Dorset and North Poole) (LD)

† Uppal, Harpreet (Huddersfield) (Lab)

† Woodcock, Sean (Banbury) (Lab)

Sanjana Balakrishnan, Kevin Maddison, Dominic Stockbridge, Committee Clerks

† attended the Committee

Public Bill Committee

Tuesday 28 October 2025

(Afternoon)

[Dame Siobhain McDonagh in the Chair]

English Devolution and Community Empowerment Bill

Clause 71

Rent reviews and “put options”: prohibited terms

Amendment proposed (this day): 375, in clause 71, page 72, leave out lines 22 to 25 and insert—

“54A Rent reviews and arrangements for new tenancies

(1) Schedule 7A makes provision about rent reviews.

(2) Schedule 7B makes provision about terms relating to rent in arrangements which require a new tenancy to be granted or taken.”—(Miatta Fahnbulleh.)

This is consequential on the amendments of Schedule 31 in my name.

14:00

Question again proposed, That the amendment be made.

[The Chair]

I remind the Committee that with this we are discussing the following:

Clause stand part.

Government amendments 376 to 381, 384 to 386 and 391.

Amendment 303, in clause 78, page 78, line 7, at end insert—

“(5A) Section 71 will not come into force until the Secretary of State has—

(a) completed a consultation about the impact of section 71 on businesses, and

(b) laid a report summarising the consultation before both Houses of Parliament.”

This amendment would prevent section 71 from coming into force until a consultation on its impact on businesses has been completed and a report summarising the consultation has been laid before both Houses of Parliament.

[Mike Reader (Northampton South) (Lab)]

As the Committee will remember, I had just covered Ireland. I will now take Committee members across the world to Australia, where a ban on upward-only rent reviews was relatively successfully deployed, as the Minister rightly said. As with Ireland, it is a very different model to what the Government are proposing. In Australia, the responsibility for setting how the model works lies with districts, so there is no Australian model that the UK can copy. In some states, the measure applies by size and sector, and the legislation is very specific to require an upward-only rent review on a size of property and a sector. In others, it applies to sectors. In at least one state, the legislation applies it to the type of business: it applies to landlords that are multinationals but small businesses can be exempt, as I understand it.

The Minister rightly says that the schemes have been applied around the world, but the scheme the Government are proposing has not. It is important that we avoid the unintended consequences of a broad, cover-all scheme. Investment in warehousing logistics, which employs one in five people in my constituency, or in the development of schemes at the Northampton Gateway, at the Daventry international rail freight terminal and right up the M1 corridor, could be hindered by an unintended consequence of our trying to deal with the issue that the Minister talked about—the unfair management of rent on the high street, particularly for small businesses.

I encourage the Minister to go further than the amendment that has been tabled to stop those unintended consequences. The measure could be applied by class of use or by rental value. In evidence, the British Property Federation suggested a £50,000 rental value cap, which would protect small businesses. That could also be specifically allocated in other ways. There are further things we can do if we want to fulfil the aim in the White Paper, which is to protect high streets, while ensuring that we do not impact the future development of health, data centres, logistics, commercial offices and all the other things we need to deliver growth in our country.

[David Simmonds (Ruislip, Northwood and Pinner) (Con)]

We have some concerns, which are reflected in the amendments I have tabled. As we just heard, countries approach this issue in different ways. Broadly speaking, it sounds like one of the reasons why Ireland did not see an impact on the market was that what was implemented was the end of upward-only rent reviews almost in name only; there were still many other mechanisms that achieved the same outcome, even if that specific one ceased to exist.

Our concern is that we risk creating a number of complex structures for rental agreements that in practice have the same consequence, but without the benefit of upward-only rent reviews, which is that landlords’ certainty about their position in turn encourages investment in our high streets, the availability of the units we want to see, and those units not being turned into residences or repurposed for things other than business. The loss of upward-only rent reviews as part of the toolkit of available options undermines the confidence to invest in our high streets, and in turn undermines the objective, which we all share, of ensuring that they remain vibrant and successful. That is the purpose of the amendments, which I am sure we will come on to in due course. The Minister may have something to say about that, but that is the Opposition’s clear position.

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

I thank my hon. Friend the Member for Northampton South for his thoughtful contribution. He is well versed, and has both reached out to business in his constituency and advocated his case persuasively.

We are very mindful of unintended consequences. We are also very mindful of designing this system in a way that strikes the balance between the investment that we absolutely want to unlock on our high streets and in our local communities, and the protections that we want to provide for tenants and to ensure that our high streets continue to thrive. I will take away my hon. Friend’s thoughts and challenges, and reflect on them as we go into the details of how we design this system in the best possible way.

I know that we will go into Opposition amendments in greater detail. However, the key point I want to emphasise at the start of this debate is that this is not a new debate and this issue is not a new one. We have known that we need to do something about this issue for well over a decade now. Huge amounts of work have gone into considering how we reform the system and there have been huge amounts of consultation over the years. So, we are very clear that something must be done, because the status quo is not fair and is not working for tenants, particularly the small and medium-sized enterprises on our high streets.

We need to respond and to reform, but we will make sure that we do so in a way that strikes the right balance between the protections that we must provide for tenants and the investment that we obviously want to see in our commercial premises.

Amendment 375 agreed to.

Clause 71, as amended, ordered to stand part of the Bill.

Schedule 31

BUSINESS TENANCIES: PROHIBITED TERMS RELATING TO RENT

Amendments made: 376, in schedule 31, page 322, line 24, leave out from beginning to end of line 24 on page 323 and insert—

“Part 1

Key terms

“Business tenancy”

1 (1) A tenancy is a “business tenancy” at a particular time if, at that time, Part 2 of this Act—

(a) applies to the tenancy, or

(b) has the potential to apply to the tenancy.

(2) For that purpose, Part 2 has the potential to apply to the tenancy at a particular time if, at that time—

(a) Part 2 cannot apply to the tenancy because—

(i) none of the property comprised in the tenancy is or includes premises which are occupied by the tenant, or

(ii) property comprised in the tenancy is or includes premises which are occupied by the tenant, but none of those premises are so occupied for the purposes of a business carried on by the tenant or for those and other purposes,

(b) the terms of the tenancy include terms (the “permitted business use terms”) which would permit the tenant to occupy the premises for the purposes of a business carried on by the tenant (whether the terms permit occupation for the purposes of business generally, a specific business or a specific kind of business) or for those and other purposes, and

(c) if the tenant were to occupy the premises in accordance with the permitted business use terms (and taking into account all other circumstances), Part 2 of this Act would apply to the tenancy.

(3) For the purposes of sub-paragraph (2)(b), terms of the tenancy which—

(a) would prohibit the tenant from occupying the premises for some purposes, but

(b) would not prohibit the tenant from occupying the premises for other purposes,

are to be regarded as terms which would permit the tenant to occupy the premises for the purposes which are not prohibited.

(4) Sub-paragraph (2) must be construed as one with section 23(1).

“Business tenancy with a rent review”

2 (1) A tenancy is a “business tenancy with a rent review” at a particular time if, at that time—

(a) it is a business tenancy, and

(b) it is subject to rent review terms (whether contained in the instrument creating the tenancy or not).

(2) In this Schedule “rent review terms” means terms under which an amount of rent payable under the tenancy will or may change during the terms of the tenancy (“rent under review”).

Part 2

Triggering and operation of rent reviews

Application of this Part

3 (1) This Part of this Schedule applies to a tenancy at a particular time if, at that time, it is a business tenancy with a rent review.

(2) But this Part applies to such a tenancy only if—

(a) the tenancy is—

(i) granted, or

(ii) varied so that it includes rent review terms,

after this Schedule comes into force, and

(b) the grant or variation is not made under a contract entered into before this Schedule comes into force.

Tenant to have power to trigger a rent review

4 (1) This paragraph applies if—

(a) an action is necessary for a particular rent review to be initiated (a “trigger action”), and

(b) the rent review terms, or any other terms (whether contained in the instrument creating the tenancy or not), do not allow the tenant to take the trigger action.

(2) The tenant may initiate the particular rent review by giving the landlord notice in writing.

(3) Notice under sub-paragraph (2) may not be given after the time when trigger action may be taken.

Tenant to have power to take action to enable rent review to operate effectively

5 (1) This paragraph applies if—

(a) an action is necessary for a particular rent review to operate effectively (an “operational action”), and

(b) the rent review terms, or any other terms (whether contained in the instrument creating the tenancy or not), do not allow the tenant to take the operational action.

(2) The tenant may take the operational action.

(3) If the tenant takes the operational action, the tenant must give the landlord notice in writing of the action within the period of seven days beginning with the day on which the action was taken.

Part 3

Rent review terms that are of no effect

Application of this Part

5A (1) This Part of this Schedule applies to a tenancy at a particular time if, at that time—

(a) it is a business tenancy with a rent review, and

(b) the rent review terms—

(i) do not specify new passing rent, and

(ii) include elements 1 and 2.

(2) But this Part applies to such a tenancy only if—

(a) the tenancy is—

(i) granted, or

(ii) varied so that it includes rent review terms that do not specify new passing rent and include elements 1 and 2,

after this Schedule comes into force, and

(b) the grant or variation is not made under a contract entered into before this Schedule comes into force.

Rent review terms that “do not specify new passing rent”

5B Rent review terms “do not specify new passing rent” if they are such that an amount of rent under review that will be payable at a time during the term of the tenancy (the “new passing rent”)—

(a) is not known, and

(b) cannot be determined,

at the time when the tenancy is granted or varied so that it includes the terms.

Elements 1 and 2

5C (1) This paragraph sets out elements 1 and 2.”

This would provide for various definitions; for application of provisions to tenancies that are varied; and for the provision about the triggering and operation of rent reviews to apply to any business tenancy with a rent review (regardless of the particular terms of the rent review).

Amendment 377, in schedule 31, page 323, line 38, leave out “relevant”.

This is consequential on Amendment 376.

Amendment 378, in schedule 31, page 324, line 3, leave out “relevant”.

Amendment 379, in schedule 31, page 324, line 13, leave out “relevant”.

This is consequential on Amendment 376.

Amendment 380, in schedule 31, page 324, line 19, leave out “relevant”.

This is consequential on Amendment 376.

Amendment 381, in schedule 31, page 324, line 35, leave out from beginning to end of line 19 on page 325.

This is consequential on Amendment 376, by which the new paragraphs 4 and 5 would replace the existing paragraphs 8 and 9.

Amendment 382, in schedule 31, page 325, line 19, at end insert—

“Part 4

Sub-tenancy required to include rent review terms that would be of no effect

Application of this Part

7A (1) This Part of this Schedule applies to a tenancy (the “superior tenancy”) at a particular time if, at that time—

(a) the superior tenancy is a business tenancy,

(b) the superior tenancy requires or permits the grant of a sub-tenancy (the “authorised sub-tenancy”),

(c) the authorised sub-tenancy would, at the time of its grant, be a business tenancy with a rent review, and

(d) either—

(i) the superior tenancy requires the authorised sub-tenancy to include rent review terms, and that requirement can only be complied with by the inclusion of rent review terms which (on one or more particular rent reviews) would produce, or would be capable of producing, the result that is prohibited by paragraph 6(3), or

(ii) the superior tenancy permits the authorised sub-tenancy to include rent review terms, but rent review terms can only be within that permission if (on one or more particular rent reviews) they would produce, or would be capable of producing, the result that is prohibited by paragraph 6(3).

(2) But this Part applies to the superior tenancy only—

(a) if the superior tenancy was—

(i) granted, or

(ii) varied so that it includes rent review terms that do not specify new passing rent and include elements 1 and 2,

before this Schedule comes into force, or

(b) if the superior tenancy is—

(i) granted, or

(ii) varied so that it includes rent review terms that do not specify new passing rent and include elements 1 and 2,

after this Schedule comes into force and the grant or variation is made under a contract entered into before then.

Modification of terms of superior tenancy

7B (1) The superior tenancy has effect after this Schedule comes into force as if it requires, or as the case may be permits, the authorised sub-tenancy to include rent review terms of any kind which (on each particular rent review) would not produce, and would not be capable of producing, the result that is prohibited by paragraph 6(3).

(2) The actual rent review terms that are to be included in a particular authorised sub-tenancy are to be—

(a) agreed by the persons who are to be the landlord and tenant under that sub-tenancy, or

(b) determined in such other manner as they may agree.

(3) Accordingly, the landlord under the superior tenancy may not require the inclusion of particular rent review terms in the authorised sub-tenancy (unless that is what is agreed by the persons who are to be the landlord and tenant under the sub-tenancy).

(4) This paragraph does not prevent a superior tenancy from being varied or modified by the parties to it (and accordingly sub-paragraphs (1) to (3) are subject to any such variation or modification).

Interpretation

7C (1) The following provision applies for the purposes of this Part of this Schedule.

(2) The superior tenancy permits the grant of a sub-tenancy, or the inclusion of particular rent review terms in a sub-tenancy, if granting the sub-tenancy, or including those terms, would not breach the terms of the superior tenancy.

(3) References to the superior tenancy, and references to the terms of the superior tenancy, include references to—

(a) the terms of any agreement relating to the superior tenancy, and

(b) any document or communication from a party to the superior tenancy which gives or refuses consent for the grant of a category or description of sub-tenancy.

(4) “Superior tenancy” has the meaning given in paragraph 7A(1).

(5) “Sub-tenancy” means a tenancy that is inferior to the superior tenancy (whether or not it is immediately inferior to that tenancy).

(6) The “result that is prohibited by paragraph 6(3)” means the result that the new passing rent is larger than the reference amount.

Part 5

General provision”

This would apply to pre-commencement tenancies that require any sub-tenancy to include terms that would be of no effect by virtue of paragraph 6(3) (as they could result in the new passing rent being larger than the reference amount). It would enable a sub-tenancy to be granted without including such terms.

Amendment 383, in schedule 31, page 325, line 24, leave out “new passing”.

This is consequential on Amendment 382.

Amendment 384, in schedule 31, page 325, line 27, leave out “, in relation to a tenancy” and insert—

““business tenancy” has the meaning given in paragraph 1;

“business tenancy with a rent review” has the meaning given in paragraph 2.

(2) In this Schedule, in relation to a business tenancy with a rent review—

“elements 1 and 2” means element 1 and element 2 set out in paragraph 5C;”.

This is consequential on Amendment 376.

Amendment 385, in schedule 31, page 325, line 33, leave out “4(2)(b)” and insert “5B”.

This is consequential on Amendment 376.

Amendment 386, in schedule 31, page 325, line 37, leave out from beginning to end of line 2 on page 326 and insert—

““rent review terms” has the meaning given in paragraph 2(2);

“rent under review” has the meaning given in paragraph 2(2).

(3) A reference in this Schedule to rent review terms that do not specify new passing rent has the meaning given in paragraph 5B.”—(Miatta Fahnbulleh.)

This is consequential on Amendment 376.

[Miatta Fahnbulleh]

I beg to move amendment 387, in schedule 31, page 326, line 4, leave out “Put options:” and insert—

“Arrangements for renewal of tenancies:”.

This is consequential on Amendment 393.

[The Chair]

With this it will be convenient to discuss the following:

Government amendments 388, 390, 389, and 392 to 404.

[Miatta Fahnbulleh]

This group of amendments expands the scope of schedule 7B so that arrangements such as options and rights of first refusal are also within the scope of the ban. Arrangements of this type may allow the tenant to enter into a new lease on pre-specified terms, which could include upwards-only rent review provisions. Permitting such arrangements could therefore be used to avoid the ban’s effect. As a result, we cannot permit new leases such as those to be excluded from scope, as this would likely encourage gaming of the system and prevent businesses from being protected in the way that the Bill intends.

Government amendment 389 makes a minor change to clarify that the application of schedule 7B to an arrangement can vary over time depending on the circumstances, therefore allowing for arrangements to move in and out of scope. By doing so, this amendment ensures that different types of arrangements, such as options and rights of first refusal, are caught by the ban if they meet the stated criteria at the relevant point. I commend the amendments to the Committee.

[David Simmonds]

I want to make the same point again, but I will not go back and repeat it. We remain very concerned about the loss of freedom of contract that this represents. Clearly, this is consistent with the Government’s direction of travel. The Minister refers to protecting businesses, some businesses will benefit from this and others will lose out, including property investors who are critical to the success of our high streets and commercial sectors. They are facing rapidly rising business rates and increases in national insurance, all of which are hammering our commercial sector and resulting in a very large number of job losses. We see this as part of that picture. We encourage the Minister to think again, reflect and perhaps change direction on this matter.

[Miatta Fahnbulleh]

My summing up will be very short. There is clearly a problem. That problem has been around for decades. Upwards-only rent reviews are an outlier internationally, and it is putting huge pressure on our high street. I absolutely recognise that we have to strike a balance between the investment that we want to see in our local economies and commercial property sector, but we also need to protect tenants. It cannot make sense to have a system whereby rents can only go up, irrespective of what is happening in the market, and cannot go down if the market goes down. That is an illogical system and one that is putting huge pressures on businesses, particularly small and medium-sized ones. There is a reason why all other advanced countries do not apply this system. Those countries all function well and have vibrant property markets. Critically, there are specifics around individual places and the reforms that they have been through, but the lesson across the piece—whether in Ireland or Australia—is that reforms are possible, and in the end we can still have both a vibrant sector and a property market that is far more rational from the perspective of tenants. I commend these amendments to the Committee.

Amendment 387 agreed to.

Amendments made: 388, in schedule 31, page 326, leave out line 5 and insert “Application of this Schedule”.

This is consequential on Amendment 393.

Amendment 390, in schedule 31, page 326, line 6, leave out “to an arrangement”.

This is consequential on Amendment 393.

Amendment 389, in schedule 31, page 326, line 6, leave out “if” and insert—

“at a particular time if, at that time,”.

This would make clear that the application of Schedule 7B to an arrangement can vary over time depending on the circumstances.

Amendment 391, in schedule 31, page 326, line 9, leave out paragraph 2 and insert—

“2 (1) Condition A is met if Part 2 of this Act—

(a) applies to the tenancy, or

(b) has the potential to apply to the tenancy.

(2) In the following paragraphs of this Schedule—

(a) the tenancy to which Part 2 applies, or has the potential to apply, is referred to as the ‘existing tenancy’;

(b) the premises let under the existing tenancy are referred to as the ‘relevant premises’.

(3) For the purposes of this paragraph, Part 2 has the potential to apply to the existing tenancy if—

(a) Part 2 cannot apply to the existing tenancy because—

(i) none of the relevant premises are occupied by the tenant, or

(ii) the relevant premises are or include premises which are occupied by the tenant, but none of those premises are so occupied for the purposes of a business carried on by the tenant or for those and other purposes,

(b) the terms of the tenancy include terms (the ‘permitted use terms’) which would permit the tenant to occupy relevant premises for the purposes of a business carried on by the tenant (whether the terms permit occupation for the purposes of business generally, a specific business or a specific kind of business) or for those and other purposes, and

(c) if the tenant were to occupy relevant premises in accordance with the permitted use terms (and taking into account all other circumstances), Part 2 of this Act would apply to the tenancy.

(4) For the purposes of sub-paragraph (3)(b), terms of the existing tenancy which—

(a) would prohibit the tenant from occupying relevant premises for some purposes, but

(b) would not prohibit the tenant from occupying relevant premises for other purposes,

are to be regarded as terms which would permit the tenant to occupy relevant premises for the purposes which are not prohibited.

(5) Sub-paragraph (3) must be construed as one with section 23(1).”

This would replicate the new paragraph 1 of new Schedule 7A that is contained in Amendment 376.

Amendment 392, in schedule 31, page 326, line 17, leave out “put option” and insert “tenancy renewal arrangement”.

This is consequential on Amendment 393.

Amendment 393, in schedule 31, page 326, line 19, leave out from “to” to end of line 25 and insert—

“a tenancy renewal arrangement.

(2) In this Schedule—

‘new tenancy’ means a new tenancy of the whole or a part of the relevant premises;

‘tenancy renewal arrangement’ means an arrangement under which the tenant under the existing tenancy—

(a) can require the landlord or another person to grant a new tenancy, or

(b) can be required by the landlord or another person to take a new tenancy.”

This expands the scope of new Schedule 7B to cover any arrangement under which the grant of a new tenancy can be required, whether it is the landlord or tenant that can impose the requirement.

Amendment 394, in schedule 31, page 326, line 26, leave out “put option” and insert “tenancy renewal arrangement”.

This is consequential on Amendment 393.

Amendment 395, in schedule 31, page 326, line 27, leave out “put option” and insert “tenancy renewal arrangement”.

This is consequential on Amendment 393.

Amendment 396, in schedule 31, page 326, line 31, leave out “lease” and insert “tenancy”.

This would ensure the defined term “new tenancy” is used.

Amendment 397, in schedule 31, page 327, line 1, leave out “put option” and insert “tenancy renewal arrangement”.

This is consequential on Amendment 393.

Amendment 398, in schedule 31, page 327, line 3, leave out “put option” and insert “tenancy renewal arrangement”.

This is consequential on Amendment 393.

Amendment 399, in schedule 31, page 327, line 6, leave out “put option” and insert “tenancy renewal arrangement”.

This is consequential on Amendment 393.

Amendment 400, in schedule 31, page 327, line 14, leave out “lease” and insert “tenancy”.

This would ensure the defined term “existing tenancy” is used.

Amendment 401, in schedule 31, page 328, line 22, leave out “put option” and insert “tenancy renewal arrangement”.

This is consequential on Amendment 393.

Amendment 402, in schedule 31, page 328, line 35, leave out “(2)” and insert “(2)”.

This is consequential on Amendment 393.

Amendment 403, in schedule 31, page 328, leave out line 36.

This is consequential on Amendment 393.

Amendment 404, in schedule 31, page 329, line 2, at end insert—

“‘tenancy renewal arrangement’ has the meaning given in paragraph 3(2);”.—(Miatta Fahnbulleh.)

This is consequential on Amendment 393.

Schedule 31, as amended, agreed to.

14:15

New Clause 9

Review of audit and reporting arrangements at Secretary of State’s request

“In the Local Audit and Accountability Act 2014, after section 33A (inserted by section 66) insert—

‘33B Review of audit and reporting arrangements at Secretary of State’s request

(1) If requested to do so by the Secretary of State, the Local Audit Office must—

(a) carry out a review of a relevant authority’s audit and reporting arrangements, and

(b) report the findings of the review to the authority and the Secretary of State.

(2) An authority’s “audit and reporting arrangements” are the arrangements it has (or recently had) in place for the purposes of—

(a) enabling it to discharge its functions under this Act, or

(b) enabling a local auditor to discharge its functions in relation to the authority.

(3) A request by the Secretary of State under this section—

(a) may require or permit the review to be limited to certain aspects of the authority’s audit and reporting arrangements;

(b) must specify the time by which the Office is to submit its report;

(c) may be varied or withdrawn by notice to the Office.

(4) Section 22 (right to documents and information) applies in relation to the Office and its functions under this section as it applies in relation to a local auditor and its functions under this Act.

(5) But section 23 (offences of obstruction and non-compliance) does not apply in relation to section 22 as applied by subsection (4) (“the applied section 22”).

(6) If the High Court is satisfied, on an application by the Office, that any person has—

(a) obstructed the exercise of any power conferred by the applied section 22, or

(b) failed to comply with any requirement of the applied section 22,

it may order the person to take such steps as it considers will remedy the obstruction or non-compliance.

(7) The Secretary of State must publish a summary of any findings reported under this section.’”—(Miatta Fahnbulleh.)

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

New Clause 1

Community infrastructure levy charges: guidance

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

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

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

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

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

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

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

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

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

(3) In this section—

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

“technical error” means an error in the calculation, notification, or administration of a Community Infrastructure Levy charge that is not related to a material change in the development to which the charge applies.”—(Vikki Slade.)

Brought up, and read the First time.

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

Division 64

Ayes: 6

Noes: 11

New Clause 2

Policy delivery in areas of competence

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

(a) relates to an area of competence, and

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

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

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

(a) the relevant strategic authority, or

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

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

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

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

(b) any person acting in the place of a person appointed under paragraph (a).”—(Vikki Slade.)

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

Brought up, and read the First time.

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

Division 65

Ayes: 3

Noes: 11

New Clause 3

Duty to ensure public trust and financial transparency

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

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

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

Brought up, and read the First time.

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

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

[The Chair]

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

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

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

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

(c) the Greater London Authority.

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

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

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

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

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

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

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

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

[Manuela Perteghella]

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

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

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

[Siân Berry (Brighton Pavilion) (Green)]

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

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

[Paul Holmes]

I want to drill down into the perceived lack of scrutiny of the new combined authorities. The hon. Lady just said that they would essentially follow the current arrangements in local authorities. Is she saying that she is unhappy with the existing level of scrutiny in local authorities, or does she just want the added safety her new clause offers?

[Siân Berry]

I will cover some of those issues, but yes, I am not completely happy with how many local councils work. Some carry out the bare minimum. I think we need more minimum guarantees built into this new process, and the Bill is the right place to introduce them.

As I said, the current model is basically an expanded local authority model, based on the idea, I think, that a combined authority is a collection of local authorities so the underlying scrutiny arrangements are sufficient. However, that has already been stretched by the more powerful mayors, and it will be stretched further when the new authorities are set up.

The new powers in particular need more scrutiny. For example, public bodies in every area will need to have regard to the growth plan. Growth plan objectives will be decided by the central authority, but how will they be developed and scrutinised? A strategic authority will be the local transport authority for its region, so it will gain a key route network of roads and can instruct the traffic authorities in its area on the management of the network. These are additional powers, so there is a role for additional scrutiny. Local plans and planning decisions will need to conform to the strategic authority’s plan—that is set out in the Planning and Infrastructure Bill—but how the powers are used deserves scrutiny, challenge, questions and accountability. These authorities are also taking on land assembly and housing powers. They can make mayoral development orders, and set up many huge budgets within mayoral development corporations. I do not think the local authority scrutiny model can cover the questions that might need to be asked in those circumstances.

There is a process for giving the new strategic authorities even greater powers in the future, but there is no associated process in the Bill for reviewing the scrutiny arrangements as those powers increase. New clause 15 would require a review of the scrutiny arrangements to match the new powers given to strategic authorities, which they may request as the Government devolve further. A safety net for scrutiny is needed somewhere in the Bill. I am aiming to fix a genuine problem.

Many existing strategic authorities have struggled to establish a truly collaborative approach between the local authorities and the members of the committees that exist to scrutinise those authorities. Quite often, the members feel that they should represent their own local authority and do not necessarily take a collective approach to scrutiny in the committee. I believe that problem will increase, particularly where we establish authorities that may lack a strong collective identity like that Greater London or Greater Manchester, where people automatically feel that they will be standing up for that area. In these new invented areas, we need legislation to ensure that scrutiny will reflect a common identity and collective approach.

This issue is a reflection of quite a lot of existing problems with scrutiny in councils. I will cite some of the conclusions in the Housing, Communities and Local Government Committee’s 2017 report. It looked at the effectiveness of local authority scrutiny committees and concluded that scrutiny was marginalised in too many authorities, which could contribute to service failures. The Committee also found evidence that scrutiny committee chairs often did not challenge their leaders, picking instead safe, less controversial topics, and that the fact that the committee chairs are appointed meant that they were more likely to keep quiet and use their role as a way to prepare for a future cabinet position. In the local authority model, the leaders can choose their cabinet, and we have already discussed many times in this Committee how the new mayors will be able to choose their commissioners. I am sure that Members can see how the same dynamic might occur.

16:41

Neither the current model of overview and scrutiny committees in local councils nor the arrangements in combined authorities really encourages public input. I will not labour that point right now, because I have more to say on that under new clauses 30 and 45. The proposed review of scrutiny could look at the extent of public involvement.

We also need to consider the resourcing of scrutiny in the new strategic authorities. The Select Committee heard evidence of combined authority scrutiny committees being under-resourced, and that problem has not gone away. We know how pressed local authorities are; what priority will scrutiny resourcing take in the new combined authorities if there is a budget squeeze? We need some safeguards and a safety net.

I will try not to go on about this too much, but I cannot help but think that lessons could be drawn from London and the directly elected London Assembly. Members from the same party as the elected Mayor nevertheless take part in independent and collective scrutiny of the Mayor, and often make sure that the right questions are asked. Members from different parties often work together and they all take part in investigations in subject-specific committees, which is valuable.

Members bring in the voices of people who are under-represented in the city. The voices of renters, estate residents, older people with concerns about toilet provision and young people concerned about youth services have all been heard by the cross-party committees on the assembly, and pressure has been put on the Mayor to improve policies.

New clause 15 would mandate an independent review that could usefully speak to people in London and the London Assembly about lessons that could be learned, particularly about structure and resourcing. The question is, why legislate, rather than just leave these matters to guidance or for mayors to decide, to go along with very broad goals around scrutiny and accountability?

A real safety net should be put into the Bill. I do not think that we can pass the Bill without adding scrutiny and accountability provisions. The new clause is a very friendly way of ensuring that Ministers look again at scrutiny. I would hate the Bill to leave Committee without an assurance from the Minister that that will be looked at again and that something will be put into the Bill to match the increase in powers with an increase in scrutiny in the future.

[Miatta Fahnbulleh]

I acknowledge the intent behind new clauses 3 and 15. We all agree that transparency, accountability and greater scrutiny are needed, and that there is room for improvement in our system.

On the specifics of new clause 3, all local authorities must publish annual accounts along with an annual governance statement. The local government transparency code 2015 requires local authorities and combined authorities to publish regularly on their websites information about spending and assets, including, as a minimum, all spending over £500, which must be published quarterly, and all land and building assets held.

All mayoral strategic authorities are expected to follow the principles and processes described in the English devolution accountability framework. That sets out how mayors will be held to account by central Government, at local level, and by the public. As part of the local assurance framework, mayoral strategic authorities must describe their arrangements for enabling effective and meaningful engagement with local partners and the public. My argument is that we have the legislative framework, and that this is now a question of practice.

Everyone wants information about public spending and Government accounts to be as accessible as possible. It is as much a problem for central Government as it is for local government and lots of bodies and institutions. I would argue it is a question of practice and of improving the way we do things. Through digital technology and the ability to use different methods, we can make this information far more accessible. I do not think we need further legislation. We need to improve our practice and innovate and modernise so the public can better hold all of us to account. That is an endeavour across all levels of government and all public institutions, so the new clauses duplicate existing arrangements and do not really get to the heart of the issue that we all recognise we need to resolve.

I absolutely agree with the intent behind new clause 15. We have stated on the record that we understand the need to strengthen the accountability and the scrutiny mechanism for strategic authorities. We said this in the English devolution White Paper, my colleague said it in the House, and we are committed to that. I assure the Cttee we will consider how to strengthen the scrutiny of strategic authorities, because I completely agree that as they acquire more powers, it is right we have accountability and scrutiny frameworks that are robust and fit for purpose, to ensure they are held to account for how they use the powers we confer on them.

The challenge I have with the new clause from the hon. Member for Brighton Pavilion is that the independent panel she is recommending would mean we have to wait over a year after Royal Assent to respond to this critical issue, because we would not want to pre-empt the recommendations of the panel. In some respects, the very thing that the hon. Lady is trying to force us to do may well end up slowing our ability to do.

[Siân Berry]

Is the Minister honestly saying that if there was a call from Parliament to review scrutiny within one year of Royal Assent, she would not be telling us that was too soon? The reason one year is written into the new clause is that is a very reasonable deadline.

[Miatta Fahnbulleh]

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

[Manuela Perteghella]

I beg to ask leave to withdraw the clause.

Clause, by leave, withdrawn.

New Clause 4

Funding for Local Authority governance reorganisation

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

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

Brought up, and read the First time.

[Vikki Slade]

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

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

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

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

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

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

[Miatta Fahnbulleh]

We absolutely recognise the funding pressures that local government is under, and we have been clear and transparent about them. They are a function, obviously, of the legacy that we inherited and that we are working incredibly hard to rectify. The long-established new burdens doctrine sets out that all new burdens on local authorities must be properly assessed by the relevant Department. That includes the overall cost to local government, including any one-off implementation or transition costs.

Suffice to say, but to reassure the hon. Member, my Department is working in the usual way to assess the cost to local government of any mandated changes to local governance models. We will go through the standard process to take a judgment on that. The principle that local authorities should be adequately compensated if there are new requirements or burdens on them runs through what we will do. I hope that, with those reassurances, the hon. Member will withdraw her new clause.

14:45

[Vikki Slade]

On the basis that we now have it on record that new burdens funding has the potential to apply in this case, I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

New Clause 5

Resource and support for local authority implementation of the Act

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

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

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

Brought up, and read the First time.

[Vikki Slade]

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

[The Chair]

With this it will be convenient to discuss new clause 43—Duty to provide professional planning support—

“(1) The Secretary of State has a duty to provide appropriate professional planning support to town and parish councils in accordance with this section.

(2) Support provided under subsection (1) is for the purposes of enabling a town or parish council to—

(a) involve communities within the authority area with development of a neighbourhood plan, and

(b) engage communities with the content and delivery of the plan following its development.

(3) For the purposes of this section ‘communities’ means—

(a) any person or group of persons who live in the town or parish council area;

(b) any group who in the opinion of the town or parish council can reasonably demonstrate a connection to the area.”

This new clause requires the Secretary of State to provide professional planning support to town and parish councils for the purposes of developing, and involving communities in, neighbourhood plans.

[Vikki Slade]

New clause 5 is designed to ensure that local authorities are provided with the resources and support they need to deliver the content of the legislation, with specific regard to preventing any further delays in future local elections. New clause 43 is about the duty to provide professional planning support for neighbourhood plans in areas that do not yet have them or where they are due for re-establishment.

We are desperately concerned about local elections being delayed. In fact, one of my colleagues asked about that in Prime Minister’s questions last week and did not get a direct answer. There remains a real concern that the whole process has the potential to create more delays. As we say, an election delayed is democracy denied, so it is hugely important.

[Paul Holmes]

I hope that the hon. Lady will take a reasonable and responsible tone on this new clause. Will she tell her colleagues around the country, including those from Hampshire, to stop standing outside Parliament for mock photographs saying that the Conservatives want local elections delayed? Will she take my word and the shadow Minister’s word that, as I said last week and he will no doubt say this afternoon, the Conservatives are not calling for the delay of local elections? Will she stop putting out misleading leaflets across the country saying that we are?

[Vikki Slade]

I would like to thank the hon. Member for his intervention, but I am not sure I should—I did not expect that coming from the Opposition Benches. I am glad that the Conservatives do not want to see elections delayed either. I hope that the Government will not delay any further elections, particularly in places that experienced a delay this year. The purpose of this new clause is to guarantee that elections are not delayed because councils are overstretched and under-resourced while trying to do neighbourhood plans at the same time. We do not believe that elections should be postponed because the Government have not given councils the means to do their job.

On new clause 43, I am sure that every member of this Committee has heard from their town and parish councils—because they have not yet been mentioned this afternoon—and from communities that do not have town or parish councils yet but may wish to, that the ability to fund a neighbourhood plan relies heavily on grant money. One of the first neighbourhood plans was set up in my constituency—in fact, in my ward of Broadstone—where we set up a neighbourhood forum that allowed us to create a neighbourhood plan. I believe there was £10,000. We would not have been able to secure a neighbourhood plan in any other way because we did not have a town council at the time, although we will have one by next year.

Without a town council, where does the money come from to do that? Even with a town or parish council, £10,000 would be a significant proportion of a precept, particularly for some of the small councils. It does not seem like a very fair thing to do to local authorities.

[Paul Holmes]

Will the hon. Lady give way briefly?

[Vikki Slade]

Gladly.

[Paul Holmes]

I thank the hon. Lady; we can now resume our laughs together. We entirely agree with her on this issue. Will she comment on our debates during the Planning and Infrastructure Bill where it was clear that the Government were resisting allocating funding for drawing up neighbourhood plans? Does she agree that the protections of many of our rural village communities that are adequately and perfectly served by their parish councils will be reduced just because they want to put forward a sustainable plan about how they build in their area, meaning that fewer houses will be delivered in the long run if this funding is not reinstated?

[Vikki Slade]

There is a village in my constituency called Shapwick, which, for some reason I cannot quite understand, did not take the opportunity to do a neighbourhood plan a couple of years ago, and now has lost that opportunity. It is surrounded by green fields. There are four or five sites within this small National Trust village where there are gaps, cottages either having fallen down or burnt down over the years. We could recreate a beautiful chocolate box village that would really boost our local tourism and enable local services such as the nursery and the pub to maintain themselves in the long term by having a slightly increased population.

As Shapwick does not have a neighbourhood plan, however, it is reliant on Dorset council, which, through the Government’s desire to build 1.5 million new homes, is now expected to find 55,000 homes in the county of Dorset—not the Bournemouth, Christchurch and Poole element, just the Dorset council element. That will ruin small villages with 50 or 60 homes, as they now run the risk of having 300 or 400 homes that will change their nature forever. A neighbourhood plan would allow those villages to go, “Do you know what? We could probably get to 75 or 80 houses and still maintain everything that we love about our village.” That cannot happen now, because there is no capacity with such a small village to raise the funding required to produce a meaningful neighbourhood plan.

New clause 43 simply says that if neighbourhood plan funding is not directly restored, local authorities should be able to provide professional planning support to councils for the purposes of developing their neighbourhood plans. My preference is for the Minister to commit to restoring the independent funding, so that our town and parish councils and communities do not have to go to the local authority, but failing that, our only option is to push this approach and say, “If we can’t have our money back directly, let’s do it through this method.”

[David Simmonds]

I will try to deal with the two main issues raised by the new clauses, in reverse order.

We all recognise that last year’s Budget was a disaster for local government. The rise in national insurance alone was a £1.5 billion net cut, but the loss of funding to support neighbourhood plans, although small in the grand scheme of things, was one of the most challenging elements. As we heard from the hon. Member for Mid Dorset and North Poole, it is at that neighbourhood level—in the locality—that the buy-in of our constituents for new homes is often first secured.

The inability to support that work any longer is particularly challenging for very small local authorities. Although they do not employ many people, so they were not as hit by the national insurance rise as the big local authorities that do social care, the town and parish councils that support those neighbourhood plans—and the district councils that support such work in the local areas—have been particularly hit by the loss of funding. Ensuring that funding is there to deliver the vision that we set out when we were in government for neighbourhood planning is really important.

New clause 5 is about the ability to deliver local elections. The Government are in a bit of a mess on this issue: the messaging on devolution is that there is no point in having elections to councils that are about to be abolished, which I think we would all agree with, but the legislation simply defers the elections for one year. That is what the laws that we have passed actually do, so as far as the law stands, all the councils set to be abolished are due to have elections on their current footprint next year unless the Government return with further legislation to cancel elections under different provisions or to defer them again. The risk highlighted by the hon. Member for Mid Dorset and North Poole remains a live one.

Multiple Ministers and two different Secretaries of State have assured us at the Dispatch Box that there will be elections, but without giving any specific commitments. In many places, in the normal cycle of events, there will be district elections. If the new mayoral authorities come into being, there may be mayoral elections. If there are not, under the current legislation, those existing counties will go to the polls next year. It would be helpful if the Minister could provide a clear assurance that the existing provisions that guarantee an additional separate grant to fund elections to take place will continue to apply, as has been established practice for a long time.

Will the Minister also tell us—or at least give us a steer—whether the Government intend to introduce further legislation to defer elections again, so they will not take place as scheduled next May in councils that are set to be abolished, or do the Government have a different intention? That may well affect how we vote on these new clauses; we oppose the deferral, delay or cancellation of elections, but we need to know the Government’s intentions so that we understand what we are voting for or against.

[Miatta Fahnbulleh]

Let me address the question directly, and then I will turn to new clause 5, on the cost of local elections, and new clause 43, on support for neighbourhood planning.

We like elections, and we think it is absolutely right that voters have the opportunity to exercise their democratic mandate. We have therefore proceeded with elections. It is important to clarify that we opted to delay them where there were specific requests from the local authorities involved, because they were going through the process not only of local government reorganisation but of creating mayoral strategic authorities. The concern was that the capacity, resource and transitional arrangements would be jeopardised by early elections. All reasonable Members will understand that it is right that the Government listen to constituent authorities that are going through what we all acknowledge is a difficult reform and transition process, and that we get that balance right.

Our principle will always remain that we want elections to go ahead, because it is critical that voters have the chance to exercise their democratic rights. We are balancing that with being fair minded, rational and reasonable. When constituent authorities, including authorities of both parties, tell us that there is a genuine transitional and delivery risk that we need to take into account, we are sensible and reasonable, and take that into account. That is the balance that we will continue to hold to.

[David Simmonds]

On a point of clarification, when the process of reorganisation was embarked on, local authorities were told quite clearly, in accordance with long-established practice, “If you are due to have elections but we are going to abolish your council as a result of this process, we will not hold elections to that council again, because it is not going to exist.” However, the legislation introduced to Parliament simply delayed the elections for 12 months. All those authorities, including Surrey, which was today announced as the pathfinder, are, as a matter of law, expecting to have elections next May, but on the undertaking of Government they are not expecting to have any further elections to the existing authority again. Are the elections to the county councils that are about to be abolished going to proceed next year, or are the Government going to introduce legislation to delay them again?

[Miatta Fahnbulleh]

I think I have been very clear. The legislation is very clear, and Members of the House were all involved in agreeing it. We are proceeding with elections. The principle that has guided what we have done is that the preference is always to have elections, but if there is a reasonable, justified case that there is a risk to delivering our reforms, or that the risk to the transitional arrangements is a genuine, material consideration for those authorities, it is right, rational and sensible for the Government to listen to them.

The legislation is that legislation that we have. We are proceeding with elections, and certainly the Labour party is gearing up to speak to its voters and ensure they come out—no doubt parties across the piece are doing that. That is the mode in which most of local government is operating, and certainly we on the Government Benches are.

The cost of local elections is met locally. Again, I refer Members to the new burdens doctrine, which requires that any new responsibilities are assessed. That is how we will approach elections, which are locally funded. Broadly, we are not hearing about issues with constituent authorities that are undergoing this process at the moment, but we will continue to review the new burdens doctrine to ensure that critical elections are held with no detriment to the voters in those particular areas.

15:04

Finally, on new clause 43, it is really important I put on record that neighbourhood plans continue to play an important role in the planning system. I welcome the support for such plans provided by the hon. Member for Mid Dorset and North Poole, who has championed them over a long period. Our issue with the new clause is that neighbourhood planning groups have received over £71 million in support since 2013, which was necessary to build infrastructure around neighbourhood planning, including the capacity and capability of planning consultants and others to support neighbourhoods in performing this function well.

Our judgment is that, after over a decade of funding, there is already sufficient infrastructure. We made the decision in the spending review that we would not commission new neighbourhood planning support services beyond 2025. We recognise that particular communities are concerned about whether they will have the resources to develop neighbourhood plans well, and we will continue to engage with local authorities and the sector to ensure that there is innovation so that support can be provided more efficiently and at lower cost for neighbourhoods that want to undertake this.

[Lewis Cocking (Broxbourne) (Con)]

What does the Minister say to parishes such as my own, Hertford Heath, that do not have any more funding to support the delivery of their neighbourhood plan? They are all run by volunteers, they do not have very many houses to collect a precept from and they do not have very many staff. What does she say about that environment? They are trying to be proactive with a plan and choose where they want development, so that they are not at the mercy of developers who want to build all over the green fields. What does she say to parishes that are working really hard to do the right thing by the Government and by their local community, without any funding to go with that?

[Miatta Fahnbulleh]

Both the last Government and this Government have invested huge amounts in building the infrastructure. In the end, Governments have to make a judgment about where we put our funding and finances. We know that is difficult for particular communities, but we think there is sufficient infrastructure and sufficient people with expertise in neighbourhood planning. We will continue to work with them on how they innovate to provide a service for particular parishes.

The hon. Member for Hamble Valley is forcing me to labour the point that, because of the absolute mess that the Conservatives left us with after years of austerity, we are having to make tough judgments about what we can fund and invest in. It is not where we want to be, but that is the reality we have to confront. We had to make choices in the spending review; we are investing more in affordable housing, and in supporting our communities with homelessness. We think that those choices were right, and ultimately we had to make a judgment about prioritisation. We are committed to working with the sector to ensure that it can innovate and continue supporting neighbourhoods.

[Paul Holmes]

Will the Minister give way on that point, as she referred to me?

[Miatta Fahnbulleh]

I have finished, and I have sat down.

[The Chair]

Sorry, Mr Holmes. I call Vikki Slade.

[Vikki Slade]

I will withdraw new clause 5 as I think the Minister has made a fair comment about the way in which elections will go. However, I cannot accept her point about the capacity of planning consultants for communities that do not have a neighbourhood plan, and there are many.

[Sean Woodcock (Banbury) (Lab)]

It is a pleasure to serve under your chairship, Dame Siobhain. The hon. Lady makes a point about the importance of neighbourhood plans, and I have had parish councils contact me about this. As the Minister just said, it is about priorities. If the Liberal Democrats are serious about the Government funding local councils to continue with neighbourhood plans, should they not also put forward how that will be paid for, given that they have opposed all the tax measures that this Government have introduced in the last year?

[Vikki Slade]

I thank the hon. Gentleman for another fabulous contribution. I thought he was going to criticise my love of town and parish councils for a moment, but he did not. I have made it clear that I would rather see the Government bring this funding back, but the new clause would introduce a duty to provide professional planning support, because we recognise the chances of it not coming back.

[Paul Holmes]

Before the Minister uncharacteristically turned her guns on me, after remaining largely silent on the Committee this afternoon, I was about to say this. I believe that the hon. Member for Mid Dorset and North Poole has tabled new clause 43 not because of the funding that has been cut—even though I remember being a lead member during the previous Labour Government, when we experienced cuts—but because there are more town and parish councils being created through this reorganisation. Those new parish and town councils, which will have councillors who are unpaid volunteers, will have no infrastructure at all. The Government seek to expand and create town councils, but have taken away training and the ability to conduct their functions. What the Minister has outlined is not accurate, is it?

[Vikki Slade]

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

Clause, by leave, withdrawn.

New Clause 6

Councillors: proportional representation vote system

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

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

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

Brought up, and read the First time.

[Manuela Perteghella]

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

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

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

[Siân Berry]

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

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

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

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

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

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

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

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

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

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

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

15:14

This new clause would simply give Ministers the ability to listen to the benefits in Scotland and Northern Ireland, and to what people really want, and to act decisively, with a mandate through this Bill and with approval from Parliament later, to improve local democracy alongside devolution. That would be a real achievement.

[Paul Holmes]

It is a pleasure to see you in the chair, Dame Siobhain. I was going to resist the temptation to have another say on voting systems in local government, but I saw this new clause and could not resist it. Smoke would otherwise come out of my ears at how ridiculous a suggestion this is. I will outline briefly why, and I will declare an interest—I am against it, and I have made that clear throughout the Bill Committee.

The hon. Member for Stratford-on-Avon, speaking for her party as she has done throughout this Committee, very ably suggested, promoted and proposed this new clause. I agree with the hon. Lady that many people in my constituency, the half of my constituency in Eastleigh, do not think they are properly represented in local government. However that is not because of proportional representation. It is because of the dire decisions of the Liberal Democrat administration of Eastleigh borough council. I agree with her about my constituents in the Eastleigh side of the constituency, who just do not feel properly represented.

[Vikki Slade]

Would the hon. Member like to consider why it is that the Eastleigh side of his constituency keeps on voting Liberal Democrats in year after year, to make it almost a one-party state?

[Paul Holmes]

In part, because the Liberal Democrats put out six leaflets a year that do not tell the truth about what is actually going on, and make a mockery between the relationship between truth and non-truth. The residents of Eastleigh get those six times a year. Unfortunately the hon. Lady will know that because the Liberal Democrats are so electorally successful in Eastleigh, the association of my local party, though we do our best, are like ducks with little feet under the water trying to compete. However I guarantee to her that when local government reorganisation comes, the reign of Keith House, who is one of the longest serving local government leaders in the country—he has been in power longer than Kim Jong-Un, although I do not argue he goes to the same extremes—will come to an end, and I say thank God for that.

On proportional representation—

[The Chair]

Does he speak well of you? [Laughter.]

[Paul Holmes]

Dame Siobhan, the answer to that is no and if you Google it you will see the relationship. I have a lot of respect for Councillor House. We just have very big political disagreements on the way in which he runs the council.

When I saw this proposal, I was not surprised when I saw those who had proposed and seconded the new clause. It would be a disastrous action for local government. We can use the arguments about why we should not have proportional representation at a national, general election level in the same way for local government, and particularly for councils. Councils are essentially mini Houses of Commons and mini democratic forums. It is vital that there is a link between a councillor, their ward and their voter. In local government, that is even more important because of the smaller geographical—

[Vikki Slade]

Can the hon. Member—not my hon. Friend anymore—explain to me why there is not a link? Proportional representation does not remove the link. It just allows people to have a proportional way of voting for somebody. We are not removing the link to a ward, division or constituency.

[Paul Holmes]

The Liberal Democrats and Greens want to bring in a vast array of different voting systems, in different stages of elections, but residents locally expect to have one vote, one system, to elect three, two or one councillors in a ward—one member, two member, three member ward—in a constituency in a small geographical region, so that they know the people they are electing. Those councillors across the whole of the country, Liberal, Green, Labour, Conservative, are local champions. They have a very small and bespoke role among their electorate.

The hon. Member for Mid Dorset and North Poole asked why people keep electing Liberals in Eastleigh, and I will be honest with her. In the 2021 local elections, the Liberal Democrats secured 42% of the vote in my Eastleigh borough, and the Conservatives polled 36%. We won one ward in my council, and the Liberal Democrats won 36. The hon. Lady might think I am a bit nuts, but I think that system is right. Everyone knows who they are voting for in their ward, and there are two or three candidates per party. They are electing a councillor who will then make an administration with a leader and a cabinet. My party went without, and I think it is unfair most of the time, but that is the system I back because it is the easiest, clearest and most accountable to the people who we serve.

I will make one last point and then I will let the hon. Member for Mid Dorset and North Poole intervene, if she wishes. I promise I am not being facetious, but I am having genuine difficulty understanding the speech made by the hon. Member for Brighton Pavilion. It may be my naivety; if she wants to explain it, I am perfectly accepting of that. In previous debates in this Committee, the hon. Lady said that the larger councils proposed by the Government would often mean that the link between a ward councillor and their constituents or ward would be diminished, because of the larger geographical area. If I am not wrong, in her speech on this new clause, she essentially said that would not be the case, as there would now be a diminishing of the link between that geography and the councillor under this voting system. I am not sure whether the two are mutually exclusive.

[Siân Berry]

There is confusion because I have argued that larger councils could lead to greater remoteness, certainly because the town hall may be many miles away. However, people will still be electing ward councillors, and my argument is simply that, should a person’s local ward councillors be part of the administration, they may see them very rarely. In those circumstances, it might be beneficial to have a range of local councillors from different parties, potentially with an increased number per ward, so that they represent more different points of view and can listen to constituents in different ways.

[Paul Holmes]

The hon. Lady explains perfectly; I disagree with her. We absolutely agree on the geographical link for super-councils—I have already said that I do not believe that the Government have a democratic mandate for those. However, the answer to larger councils is not changing to a voting system where we create more councillors, or saying, “Because we want to move to a different system, we will go from a three-member ward to a six-member ward with multiple parties.” I think that actually complicates the situation for many constituents and residents.

[Siân Berry]

May I add that this is a really interesting debate and one that we should continue to have under my new clause? To answer the hon. Gentleman’s question, Conservative Members have argued repeatedly that there will be a loss of representation from the abolition of the lower-tier councils. Does he not agree that this a way to mitigate that?

[Paul Holmes]

No, I do not; we should keep the current system in place. I believe that, even though we are essentially going from three to two tiers, we are not actually going to one tier in this country, because mayors are being created as well. There is a direct link between the mayor and the local people, and there is a direct link between these new councils and local people. Again, I do not think the answer to simplifying the electoral system and making representation easier is to create more councillors from different parties in a ward. That is expensive and lacks democratic legitimacy, and I think the current system is perfectly acceptable. We are always going to be on the losing side on this one. Smaller parties often want to change the system to ensure that their parties have more victories and more legitimacy in democratic chambers. The Conservative party has a long and proud history of opposing proportional representation.

I remind the Liberal Democrats that they have tried and tested a change in the electoral system, and when they went to the country seeking it, they lost. Therefore, people have been asked whether they want to change the voting system in a national election. I think that the hon. Member for Mid Dorset and North Poole would find that if there were referendums—we know that the Government are against referendums in the Bill—many people across this country would choose not to change the voting system in local government too. The current local government electoral system works, and it suits its purpose. People know who their councillors are; they are linked to them and know that they often represent an area that they deeply care for and are passionate about—even Liberal Democrat ones in Eastleigh. We oppose the new clause, and will vote against it if it is pressed to a vote.

[Miatta Fahnbulleh]

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

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

[Manuela Perteghella]

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

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

Division 66

Ayes: 3

Noes: 13

New Clause 8

Training for councillors

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

(2) Regulations under this section must—

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

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

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

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

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

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

Brought up, and read the First time.

[Vikki Slade]

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

I will be brief. A large part of our discussion in Committee has focused on structures and the people who are going to be served but, as with the amendment 336, tabled by the hon. Member for Brighton Pavilion, the new clause focuses on the needs of councillors, who will fundamentally make or break strategic authorities in rising to the challenge of being a councillor. As we know, it can be a difficult job and, depending on where in the council they are asked to serve, can involve an awful lot of information and require new skills to be learned.

15:30

The Bill, which is the biggest piece of legislation to affect local government for a long time, gives us the incredible opportunity to formalise the need for training for councillors. The new clause would require the Secretary of State to make regulations that would require a strategic authority to provide training to councillors following the designation, creation or merger of such an authority, and for that training to be repeated thereafter. It refers to the creation of

“guidance…regarding the content of the training”,

so we are not being prescriptive about what the training looks like. We recognise that it will be different at different levels and in different types of organisations.

It is vital that councillors, particularly those who take on board huge budgets and massive responsibilities, know what they are doing. I have sat in many a council meeting and looked at councillors from across the political spectrum who barely know why they are there.

[Mike Reader]

May I tell the Committee a story? There is good merit in making sure that councillors are trained, but they can be trained and still not listen. A Reform councillor in Northamptonshire chose to join a training session, forgot to turn off his camera and got into the bath naked. If we are to mandate training, we are going to have to teach councillors how to turn their cameras on and off.

[Vikki Slade]

I welcome that intervention. During covid, a lovely, very elderly Conservative lady on Bournemouth, Christchurch and Poole council decided to take her laptop into the toilet with her. I think we all have such stories to tell. There are huge merits in online training and training in person.

We talked previously about audit training. There is compulsory training for our quasi-legal systems, including licensing and planning, but what about scrutiny, audit and even, “How on earth does a council work? How do I behave? What is the code of conduct?” Training on all those things is not currently required. It is not unreasonable to ask that when somebody takes on a responsibility—particularly when they receive an allowance so to do—they understand what is required of them. There should be a minimum training standard, across the board, but that is currently absent. Training is very variable from place to place.

My simple request is for the Government to agree to the new clause and produce guidance that allows local authorities to look at the relevant content.

[Miatta Fahnbulleh]

I will be brief because the Committee has discussed this question before. We absolutely recognise the importance of training, which is why the Government currently fund the sector support programme, which is delivered by the Local Government Association and open to strategic authorities and local authorities. That will continue and we will build on it.

It should be for strategic authorities and local authorities, as independent bodies that we are trying to empower, to decide the form of training for elected members. The Government will do our part to work alongside them and to give the LGA what is required, but we do not think that a one-size-fits-all requirement on strategic authorities to provide training is proportionate. The best way to do that is to build the infrastructure to enable and support training in an effective and sustainable way. For that reason, I urge the hon. Member to withdraw the new clause.

[Vikki Slade]

It is not a requirement of all local authorities to be a member of the Local Government Association. I speak as a vice-president and former board member of the Local Government Association. The new clause does not dictate what the training should be; it dictates that there should be a requirement for training. On that basis, I would like to push it to a vote.

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

Division 67

Ayes: 3

Noes: 10

New Clause 10

Duty relating to allotments and nature rich spaces

“(1) When considering whether or how to exercise any of its functions, a combined authority or mayoral CCA must have regard to the need to increase the provision of allotments and nature rich spaces to improve the health of persons in the combined authority’s area and to reduce health inequalities.

(2) In complying with this section, a combined authority must—

(a) publish an annual report detailing—

(i) the size of the allotment waiting list for each council in its area and

(ii) the number of allotments owned and leased by each council;

(b) take reasonable steps to ensure that across its area the number of persons waiting for allotments is no more than one half of the total number of allotments owned and leased by councils;

(c) provide funding for the employment of community organisers to support the provision of allotments and nature rich spaces across all council areas.”—(Siân Berry.)

Brought up, and read the First time.

[Siân Berry]

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

It is a pleasure to move the new clause in the name of the right hon. Member for Islington North (Jeremy Corbyn), who is a well-known enthusiast for allotments. I am a keen gardener in a space similar to an allotment, and my colleague Baroness Jones of Moulsecoomb in the House of Lords is also a huge enthusiast. I hope that this issue and this kind of provision will continue to be discussed in the other place, whatever happens in the Commons. The Bill quite rightly puts health and wellbeing at the heart of a lot of the strategic functions of the new authorities. Sadly, however, it neglects the role that access to allotments and green spaces can play in boosting public health. The new clause would rectify that with some specific proposals for allotments.

Across England, demand for allotments is huge. People have really embraced the health and social benefits that they can provide. There is much more awareness of the environmental benefits that they can deliver, supporting pollinators much better than other kinds of managed land. They can be part of green corridors, linking together nature-rich spaces. The demand has led to long waiting lists, while allotments are being taken away. In 1950, there were 1.5 million allotment plots, but we have only around 250,000 today. The biggest losses have been in urban areas, where people need them the most. There are now 108,000 people on waiting lists. For example, in Portsmouth, one in every 25 adults is waiting. That is one person on every bus sitting waiting for an allotment.

At the moment we do not have many legal tools for councils to fix that. There are no reporting requirements on councils and there are no waiting time limits for councils to drive forward ambition on providing allotments, but the Bill provides an opportunity to fix that.

The new clause would create a duty to increase allotment provision and boost public health, to report on allotment and nature-rich provision in areas, and to fund community organisers to widen public access to those resources. It would also require action if allotment provision falls below a certain threshold. The new clause takes inspiration from Scotland—we have not just invented it for England here. Under the Community Empowerment (Scotland) Act 2015, the Scottish Government have mandated a 50% or less waiting-list-to-allotment ratio, a maximum wait of five years or less, as well as annual reports. That has not been an insupportable burden on local authorities there; indeed, they have taken it up with some enthusiasm. It would be brilliant to have that in England. It would provide legal direction, but also practical levers for councils and real imperatives for them to act.

[Sam Carling (North West Cambridgeshire) (Lab)]

When I was a council cabinet member, I had responsibility for allotments. We are talking about strategic authorities, and the hon. Lady is talking about powers for them. I can see a duty in the new clause; I cannot see how it would help councillors who have responsibility for allotments to improve the situation, and I fear that having a combined authority stick its nose in could create extra bureaucracy and undermine the hon. Lady’s aims.

[Siân Berry]

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

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

[Manuela Perteghella]

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

[Siân Berry]

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

[Vikki Slade]

Allotments also offer an opportunity for intergenerational activity. I wonder whether the hon. Member for Broxbourne would like to spend some time at an allotment, because it does not look like something he would like to do.

[Siân Berry]

That is a great point—allotments are intergenerational space. They do have an effect on health for no reason; they are beneficial and great. They are a tradition in this country that we are losing. Let us get this action put into the duties on authorities. I urge the Minister to look favourably on how this extension to the proposed health function could be constructively included in what happens in the new strategic authorities.

15:48

[David Simmonds]

It is tempting to make reference to all sorts of detailed points of local government finance that we could bring up in a debate about allotments. However, I purely want to make a point about where this issue sits, which I think other Members have touched upon. The Opposition are big fans of allotments, just as everybody else is, but the local plan is the mechanism by which that should be delivered. We all know—particularly those of us, like myself, who have lots of allotments in our constituencies—that there are often waiting lists for some of the more desirable sites and also huge numbers of vacancies on others.

When allotments on their current scale were introduced in the 1950s, food was one of the biggest costs that households faced. Today, the UK has some of the cheapest food in the world, relative to household budgets. The UK and the US spend the lowest proportion of household expenditure on food in the developed world. Indeed, the proportions have reversed since the 1950s, and housing costs are now the highest factor.

One of the Opposition’s concerns about the purposes of this Bill, and about where the Planning and Infrastructure Bill was going, is that the focus on units and achieving targets will mean losing green spaces, particularly gardens and spaces outside people’s homes. When we pass this legislation, it is through the local plan that we will be able to ensure that we are not using allotments to plug a massive gap that has arisen because of those housing targets, but are instead building the types of homes that people want to live in, particularly those that include outside space. That is why, although we agree with the sentiment behind the new clause, we are not minded to support it.

[Miatta Fahnbulleh]

We understand the intention behind this provision on allotments, and we are big fans of allotments and nature-rich spaces. However, I would point out that a duty to provide allotments already exists and sits with local authorities, which is the appropriate level. In addition, the provision of nature-rich spaces is already being tackled through multiple Government initiatives, whether that is the access to nature programme or the Natural Environment and Rural Communities Act 2006, which places a duty on all public authorities operating in England to consider, from time to time, what action they can take to further the conservation and enhancement of biodiversity.

We recognise the need for green spaces and allotments for communities. We think that there is already sufficient provision in legislation, so the new clause is unnecessary. Actually, putting the duty at the strategic authority level is not appropriate; it should be at the local authority level. For that reason, I ask the hon. Member for Brighton Pavilion to withdraw the motion.

[Siân Berry]

I take those points constructively, as they were intended. I hope that this issue can be looked at during future stages in a cross-party manner, so that we can put something together. I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

New Clause 16

Duty to contribute to delivery of nature, clean air and climate targets

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

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

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

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

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

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

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

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

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

Brought up, and read the First time.

[Siân Berry]

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

It is my pleasure to make the case for new clause 16, which would introduce a climate and nature duty into the Bill. I have been working with a tremendous group of campaigners who, like me, cannot see why the duties are not currently in the Bill. Those campaigners include the Climate Emergency Group, the Wildlife and Countryside Link, the Healthy Air Coalition and Friends of the Earth. As I have previously argued, the Bill lacks strong safeguards to ensure that the new authorities embed climate action and nature recovery, and action on deadly air pollution in their work. There is a growth duty, but not yet any equivalent duty for climate mitigation, adaptation or nature recovery.

Subsection (1) of the new clause sets out the different targets that ought to be passed down from national Government to strategic authorities. Subsection (2) would compel local authorities and strategic authorities not to make decisions incompatible with the duties—in other words, not to make things worse. Subsection (3) is a really important part of the new clause and would require the Secretary of State to publish guidance describing the fair contribution that each area must make toward meeting the national targets. That is what we currently lack. There is nothing in the Bill that helps to achieve the national targets through the actions of the strategic authorities that we are creating, and that is an important gap. I am not idly making this point; reaching our national targets requires a contribution from the authorities with these important powers, areas of competence and actions. Leaving out how we will share out the contribution to the national target—leaving it out altogether—just does not wash.

The evidence from the allies I have been working with, and from monitoring of what goes on at council level, shows that every council scoring 20% or below in the climate action scorecards that get produced is in England or Northern Ireland. That is because we have had the duties passed down by the Governments in Wales and Scotland. It is our duty to ensure that this Bill fills the gap.

Precedents exist not only in Scotland and Wales, as I have mentioned, but in London, because this is done effectively under sections 42 to 44 of the Greater London Authority Act 2007. Each of them systematically passes on a duty for the GLA—the Mayor and Assembly combined—to act to address climate change. This has led to more action in London. It has meant that the Mayor has produced results. The legislation mandates the creation of a climate change mitigation and energy strategy. The strategy, the law says, will contain proposals for the contribution to be made in Greater London towards the mitigation of climate change. These are not hard clauses to write. These are not hard things to pass down, and yet these things are missing from the Bill. That is why we have put together new clause 16, which should be adopted. It could be adopted today, and I intend to divide the Committee on this issue.

We have had discussions about these issues before. We talked about clause 2 and the different ways in which air pollution might be included in the legislation governing the new strategic authorities, and the Minister responded in a similar way each time. For example, this was a typical response:

“The principle and the intention are that we are baking our climate and environmental obligations into the way that we are thinking about how we drive the economy.” ––[Official Report, English Devolution and Community Empowerment Public Bill Committee, 21 October 2025; c. 327.]

It is no good giving these assurances—setting up a baker in a back room behind a curtain—for climate, pollution and nature action, when for so much else, the targets, accountability and duties, is clearly stated in the Bill. As I mentioned before, there is an issue of fairness. Talking to each local area about what contribution each of them will make cannot be done behind closed doors. It requires a transparent process, which the new clause provides for.

The measure has massive and wide support not only from the kinds of campaigners that I associate with on a daily basis, but from more than 100 hundred businesses, which have twice signed open letters in support of such a duty. For them, it would provide the certainty needed to unlock support and drive green investment. The Local Government Association has made it clear that councils require further statutory duties, powers and resources to lead on climate action, while 150 councils responded to a climate consultation, with the vast majority in favour of these duties in England. The District Councils’ Network in its general election prospectus, London Councils, the Association of Directors of Environment, Economy, Planning and Transport, and 88% of UK100 members all called for a climate statutory duty.

The Minister also said this in Committee:

“National Government and local government at all levels, along with business and individuals, must continue to make a contribution to tackling climate change and improving the quality of the environment around us.” ––[Official Report, English Devolution and Community Empowerment Public Bill Committee, 21 October 2025; c. 327.]

Those words need to be reflected in the Bill, and the new clause would do that very effectively. We have the opportunity right now to embed climate, clean air and nature duties for all local authorities and strategic authorities, and to make sure that they hit the ground running for our national environment targets. That would mean no delay for them to take action on clean power, warm homes, clean air and making space for nature. We know very well that there is willingness on the part of local authorities to act, so why would the Labour Government not use the Bill to codify that, and help, inspire and support them in further action?

[Miatta Fahnbulleh]

I thank the hon. Member, who has consistently talked about the challenge of tackling climate change and the important role that local government has to play in that. We absolutely recognise the imperative of climate change and nature recovery, and the vital role that all levels of government, including our strategic and local authorities, can and must play in that endeavour.

Local authorities already have a statutory duty to improve air quality in their areas. Thanks to the combined efforts of local authorities—for example, the Mayor of London—we have seen huge improvements. That is testimony to the fact that, when all tiers of government work together, we can tackle these big structural issues. My key point is that the existing tools and duties already support the things that the hon. Member is trying to achieve through her new clause. For example, we have talked before in the Committee about the local nature recovery strategies, the biodiversity duty under the Natural Environment and Rural Communities Act 2006, and the Environment Act 2021. All of that requires public authorities to consider, take account and take action to conserve and enhance nature and biodiversity.

On the point about climate adaptation, I recognise that there is both an urgency and an imperative for us to take action, and Local authorities are at the vanguard of wanting to push this already. The Government are working with a number of local authorities that have come forward with climate risk assessments, and that is something we hope and expect to see at authorities across the country. In October we launched a local authority climate service, which provides tailored data on climate change impacts to enable local authorities to do their assessments and think about adaptation strategies. We also ran the first adaptation reporting power trial for local authorities last year, providing guidance and support on how to assess climate risks to their functions and services.

That is all to say that this Government recognise the importance of this issue, and we are taking action. Acting and working in collaboration with all tiers of government to respond to the climate change and the nature recovery challenges is the way we do that. Further duties at this stage would not add to that; what we need is action and collaboration, and that is what this Government are cracking on with.

16:00

[Siân Berry]

I hear the Minister’s words, which are very similar to previous words, but I do not believe she has really dealt with the key things this new clause does that others do not: subsection (1) specifies that local authorities and strategic authorities must contribute, and not just consider; subsection (2) requires authorities not to make things worse; and subsection (3), in particular, sets out the importance of defining fair contributions. The mirror of what happens at an international level needs to happen fairly at a local and strategic level in this country. Those points were not answered to my satisfaction, so I must push the new clause to a vote.

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

Division 68

Ayes: 3

Noes: 10

New Clause 20

Right to apply to purchase derelict, mismanaged or inaccessible sporting assets of community value

“(1) A community interest group or a parish council may apply to a local authority to purchase land to which this section applies.

(2) This section applies to land that is a sporting asset of community value (as defined by section 86C of the Localism Act 2011, as inserted by Schedule 27 to this Act) and meets one or more of the conditions specified in subsection (3).

(3) The conditions are that the land—

(a) has been left derelict for a continuous period of at least 2 years;

(b) is being, or has been, mismanaged in a way that significantly impairs its sporting value or public benefit; or

(c) has been unreasonably made inaccessible to the community, where it was formerly accessible for sporting purposes.

(4) For the purposes of this section land is—

(a) derelict if it is not actively used for its primary sporting purpose, or is in a state of disrepair that renders it unfit for such use, having regard to its previous use and condition;

(b) mismanaged if its condition or use is such that it fails to realise its potential as a sporting asset, due to neglect, poor maintenance, or inappropriate development, contrary to the interests of the local community;

(c) unreasonably made inaccessible if measures have been taken to restrict public access or use for sporting purposes without a compelling public or safety justification, where such access or use was previously permitted or established.

(5) An application under subsection (1) must—

(a) be in writing,

(b) identify the land to be purchased,

(c) include evidence demonstrating that the land meets one or more of the conditions specified in subsection (3),

(d) outline the community interest group’s or parish council’s plans for the future use of the land for sporting purposes, and

(e) be accompanied by such fee (if any) as the local authority may reasonably require.

(6) On receiving an application under subsection (1), the local authority must—

(a) notify the owner of the land of the application within 14 days, and

(b) consider the application.

(7) The local authority may not reject an application under subsection (1) if it is reasonably satisfied that—

(a) the land is a sporting asset of community value and meets one or more of the conditions specified in subsection (3),

(b) the applicant is a community interest group (as defined by section 86D(2)(b)(ii) of the Localism Act 2011, as inserted by Schedule 27 to this Act) or a parish council, and

(c) the applicant’s plans for the future use of the land are viable and will in the opinion of the local authority further the social or economic well-being or social or economic interests of the local community.

(8) If the local authority decides to approve an application, it must—

(a) notify the applicant and the owner of the land of its decision, and

(b) facilitate negotiations for the sale of the land to the applicant at a price to be agreed or, failing agreement, at market value determined by an independent valuation.

(9) The Secretary of State may by regulations make further provision for, or in connection with, applications under this section, including (in particular) provision about—

(a) the form and content of applications,

(b) the evidence required to demonstrate the conditions specified in subsection (3),

(c) the procedure for considering applications,

(d) appeals against decisions of local authorities, and

(e) the process for determining the purchase price and facilitating the sale.

(10) In this section, ‘local authority’ has the meaning given by section 86Z4(1) of the Localism Act 2011, as inserted by Schedule 27 to this Act.”—(Vikki Slade.)

This new clause creates a right for local residents and organisations to apply to a local authority to purchase sporting assets of community value that are derelict, mismanaged, or unreasonably made inaccessible.

Brought up, and read the First time.

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

Division 69

Ayes: 3

Noes: 10

New Clause 23

Consent for local government restructuring

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

(2) The ‘constituent councils’ are any county council, district council, town council or parish council.”—(David Simmonds.)

Brought up, and read the First time.

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

Division 70

Ayes: 6

Noes: 10

New Clause 25

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

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

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

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

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

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

Brought up, and read the First time.

[David Simmonds]

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

The need for this new clause has become greater as the Committee’s consideration of the Bill has continued. The original legislation and amendments from the Government have set out that new mayors will have precepting powers that will apply to non-mayoral functions. That gives rise to a suspicion, particularly in the context of the Government’s frankly dire financial situation, that such powers will be used as a means of levying, through a mayoral precept, additional resources that will be funnelled not into the priorities of local government but—the Government having set out that they see these new authorities as the local delivery agents of central Government—into the priorities of Government.

It is a long-established principle—it has been implemented for a good, long time now—that there should be some degree of constraint, and that consent should be required before a local authority seeks to proceed with a council tax rise above a certain level: 5% is the current figure. It seems to us a reasonable principle that the new mayoral authorities should be subject to the same constraint to ensure that the tax rises, which would of course be inflationary, notwithstanding the impact they would have on household budgets, would be subject to a similar process of democratic consent, rather than being something that a mayor can simply proceed with without needing to go down that route. That is the objective of the new clause, and it will be interesting to hear what the Government have to say about it.

Our key concern is that these new authorities do not become a means of addressing shortfalls in other areas of Government spending or simply backfilling some of those costs. The Minister likes to talk about a financial mess, and it is noteworthy that the Government have borrowed over £80 billion in this financial year alone already. We heard the Chancellor talking about a £22 billion black hole, which she alleged existed after 14 years of Conservative Government. I use the term “alleged” advisedly, because the Office for Budget Responsibility, which did the calculations, swiftly came back and said that it did not stand by the figure used by the Chancellor. That is £22 billion after 14 years versus £80 billion since the start of this financial year alone.

It is clear that the country’s finances are facing an exceptionally challenging time and have deteriorated exceptionally fast. Local government, in particular, has a £1.5 billion black hole that has been created purely by last year’s Budget, as a result of the national insurance rise, notwithstanding any previous challenges that may have existed. There will naturally be a temptation to see an unlimited, uncapped and unrestricted mayoral levy as a means of tapping taxpayers’ pockets further. We need to make sure that that is constrained in a proper democratic manner.

[Miatta Fahnbulleh]

Let me respond directly to the inference by the hon. Member for Ruislip, Northwood and Pinner that, through the Bill and the devolution of power, we are essentially imposing the Government’s own agenda and requirements on strategic authorities, mayors or local authorities. Let me be very clear: that is not the intent. The intent is to enable mayors and local and strategic authorities to define and drive their own priorities. If the hon. Member spends any time with any of our brilliant mayors or our emerging strategic authorities, it will be incredibly clear that they have their own agenda, which is driven by the priorities of their local people. The idea that we can impose on them a set of things and use them essentially as a new revenue-raising mechanism is for the birds.

We do not think that the desire expressed in the new clause to impose restrictions on the ability of the mayor to raise a precept is right or proportionate. We are clear that the precept must be both proportionate and fair. Ultimately—I said this before, and I will say it again—mayors are democratically elected. They are no less immune to the requirements and the political pressure from their voters than I am or the hon. Member is. The process of democracy—of people having to account for both revenue-raising and, critically, for what they are investing in—is absolutely right. I trust our mayors to do that. Ultimately, if they do not raise revenue and, critically, invest it in things that improve the lives of their constituents, they will pay the price at the ballot box. They do not need the hon. Member to impose his requirements on them.

[David Simmonds]

Given the significance of this issue, we will push the new clause to a vote.

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

Division 71

Ayes: 3

Noes: 10

New Clause 26

Build out requirement

“Where an authority is in charge of a housing development, the authority is under a duty to build out the land without unreasonable delay.”—(David Simmonds.)

This new clause mandates that where they oversee development, there is a build-out requirement.

Brought up, and read the First time.

16:15

[David Simmonds]

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

We have spent a good deal of time debating the importance of housing and the delivery of housing targets. If we reflect on the construction industry news that came out yesterday, it is clear that there has been an absolute collapse in confidence in house building. Here in London, around 4% of the mayor’s housing target is being delivered, despite his having been allocated billions of pounds for that purpose.

[Miatta Fahnbulleh]

Can the hon. Member remind the Committee when housing stocks plummeted? Was it not in 2023, on his watch?

[David Simmonds]

I think the Minister will probably be aware that the net additional new homes target that we set ourselves in the last Parliament was 1 million new homes. While we were, frustratingly, slightly below that target, we none the less delivered, in round terms, 1 million net additional new homes in this country. The collapse, as the Minister well knows, has taken place since the change of Government. That is an unfortunate reality. We know that the Budget in prospect later in the year is a significant issue of a conspicuous lack of confidence and a desperate need to get construction activity going again.

[Paul Holmes]

It is even worse than that: in the previous debate, the Minister said that she did not want the Government to be able to impose their ideals on mayors, but now they have reduced the affordable housing target for the mayor, to try to fiddle the figures and make it look as though more houses are built. That is poorer people suffering in our capital city.

[David Simmonds]

My hon. Friend is absolutely right: it is desperation in action, and we can see that happening, as can the whole world. We would like to see the Government succeed—we would like to see the country succeed in developing the new homes that it needs. However, it has been a continuous theme in our contributions to debates on the Planning and Infrastructure Bill that we must ensure that the 1.5 million homes that already have planning permission in England get built, rather than focusing on tearing up the green belt and on more permissions that also do not get built.

We know that in our capital city there are more than 300,000 new homes that already have planning permission, but on which work has not started. The purpose of the new clause is to ensure, just as we have sought to in the past in respect of private sector developers where there is a failure, that where a local authority or a mayor is in charge of a development, they are required to build it out in good time. That is so that we do not see a repeat of the situation where well-intentioned changes to the planning system simply result in more unbuilt permissions, while people who need homes do not have access to them, because that is not what is being delivered.

The focus of the new clause is to ensure that the system does what it is intended to and actually builds the homes, as opposed to churning out more planning permissions. Given the Government’s desperate need to move somewhere in the direction of achieving their 1.5 million target, I am sure the Minister will welcome the new clause and ensure that the Government support it.

[Miatta Fahnbulleh]

I understand the intent behind the new clause, and the Government are absolutely committed to building the homes that people across the country need. But I cannot let it pass without setting the record straight: housing delivery plummeted because of action taken by the previous Government, including the scrapping of housing targets across the country, the under-investment in social and affordable housing and, dare I mention, Liz Truss—remember her?—who saw mortgage rates skyrocket. Those are the factors that have driven down housing stock, and we, again, are having to fix the mess left by the previous Government. I will take no lectures from them on house building, given their record.

We are determined to deliver the 1.5 million homes that we know the country needs, and we will work with strategic authorities and local authorities to do that. There are already provisions that will enable mayors to accelerate housing development and drive economic growth, and we are providing further tools through the Bill, whether that is the strategic planning powers, the ability to raise the community infrastructure levy, the extension of the ability to form mayoral development corporations to all mayors outside London or, importantly, the land assembly powers given to strategic authorities to unlock development. We are very clear-sighted about what needs to be done, and we are already equipping and empowering mayors to do that.

We already have examples of where this is working, such as the Olympic legacy in Stratford and the huge progress delivered in London through that. There are provisions in the Bill. Our challenge is that we have to fix the mess that we inherited, but we are absolutely determined to do that, and we will do it in partnership with mayors.

[David Simmonds]

Many interpretations can be placed on the facts, but it is very clear if we look at the numbers that Government borrowing costs are now significantly higher even than under Liz Truss. It has been a pretty disastrous period for Government finances. If we are to see the measures to which the Minister has just referred succeed, there must be some imperative around building. We cannot simply see a tranche of mayors granting permissions, assembling sites and failing to deliver in the way that Mayor Khan has in London.

[Mike Reader]

The Leader of the Opposition, the right hon. Member for North West Essex, said at the Conservative party conference that she wanted to cut regulation on building, but she was silent on the Government’s consultation on speeding up building. Is this a change of policy? Are the Conservatives now supporting the Government on build-out programmes? Can we look forward to the hon. Gentleman joining us in the Lobby when the proposal comes forward?

[David Simmonds]

It is a nice try by the hon. Member, but I think we know that there have been areas of deregulation where there is a high degree of consensus. In particular, we know that one of the reasons why some of those 1.5 million homes have not been developed is that, after local authorities have granted consent, delays are created by, for example, waiting for permission from the Environment Agency to proceed. There are elements of deregulation that I think we all support, and we can see how they would be of benefit, but where we have mayors such as the Mayor of London who are just abjectly failing, we need to make sure that there is a degree of compulsion so that the homes that our capital city and our country need are delivered.

Just as we would like to see that level of compulsion apply to private sector developers, who can be as guilty of this as Government—they might be land banking or looking at those permissions not as an opportunity to create homes, but simply as a means of creating a tradeable asset—we need a degree of imperative to hold the feet of those mayors to the fire to ensure that the new homes are delivered. I hope the spirit of the Government’s response signals their support for this amendment, which I will press to a vote.

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

Division 72

Ayes: 3

Noes: 10

New Clause 27

Disclosure of councillors’ home addresses

“(1) The Localism Act 2011 is amended in accordance with this section.

(2) In Clause 32(1)(b), after ‘intimidation’ insert—

“; or the interest is a home address, that the member or co-opted member has requested to the authority, is not to be made public.””—(David Simmonds.)

This amendment would allow councillors to choose not to publicly disclose their home addresses.

Brought up, and read the First time.

[David Simmonds]

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

The intent of the new clause is very much in line with the recommendations that Mr Speaker has recently made in respect of Members of Parliament. There has been a degree of concern about the intimidation and victimisation of politicians and the impact that has had on wider public debate. It has been a long-standing principle that a person needs to declare their eligibility to stand in a particular place, and in a local authority there are specific requirements connected to the local area that person is seeking to serve.

However, it has been a widespread view for some time that there needs to be a degree of confidentiality so that members who are concerned that they will be victimised are able not to have that data, that information, placed in the public domain. Once they have satisfied the local authority’s returning officer that they meet the requirements—with evidence, as is currently the case—their home address does not need to be placed in the public domain, creating risk.

We think the precedent that Mr Speaker set out in respect to Members of Parliament is absolutely right. The intent of the new clause is to achieve the same for our locally elected brethren. I am sure that to achieve that objective, the Government will be pleased to support the new clause.

[Miatta Fahnbulleh]

I thank the hon. Member for this new clause. We wholeheartedly agree with its intent. In the English devolution White Paper, the Government committed to removing altogether the requirements for local government members’ home addresses to be published. The new clause would not achieve that aim because it relies on a member requesting non-publication. We believe that the default position should be non-publication, and we intend to legislate with more robust provisions when parliamentary time allows.

In light of the reassurance that we will be legislating on this important issue, which we agree on, I ask the hon. Member to withdraw his new clause.

16:28

[David Simmonds]

I am afraid that I am not reassured. I am particularly concerned, because we know that “when parliamentary time allows” means this could be kicked into the long grass for a very long time. Given some of the incidents we have seen, which have affected both Members of this House and our locally elected peers, we know this has become a more pressing issue.

Some locally elected members see it—as some Members of Parliament do—as an advantage to have their home address published, and we, as Members of Parliament, are free to make that choice. At the moment, we can say, “I wish it to be known that I live at this address,” or, “I wish it to be known that I live, anonymised, in a constituency”, which is how it is listed for Members of Parliament. Broadly, the same provisions should apply, so those councillors and candidates who prefer to keep their address confidential should be able to do that, as we can. Those who choose to take advantage of that additional degree of confidentiality—perhaps because they have a young family or caring responsibilities, or whatever it may be—should be able to take advantage of that.

If we fail to include this measure in the Bill, I suspect we will see a number of local election cycles in which local council candidates will not have the same opportunity as we do. I will therefore be pressing the new clause to a vote. I encourage the Government, if they are not minded to accept it now, to consider implementing it when the Bill gets to the Lords, because we have a duty of care to our local councillors. Giving them the same opportunity that we have as Members of Parliament seems an entirely reasonable and minimal measure of protection to offer.

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

Division 73

Ayes: 6

Noes: 10

New Clause 28

Application of CIL to householders

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

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

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

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

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

Brought up, and read the First time.

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

Division 74

Ayes: 5

Noes: 11

New Clause 30

Establishment of Public Engagement Commission

“(1) Within six months of this Bill receiving Royal Assent, the Secretary of State must establish a body to be known as the Public Engagement Commission.

(2) The purposes of the Public Engagement Commission are—

(a) improving public engagement at all levels of local government in England, including in relation to—

(i) drawing up plans and strategies, and

(ii) decision-making, including those with financial implications for local government and for the public;

(b) facilitating the sharing of best practice about engagement, and

(c) innovating with regard to deepening democracy enabling public engagement.

(3) The Public Engagement Commission must issue and maintain guidance about best practice in public engagement.

(4) The Public Engagement Commission has such membership as the Secretary of State may specify, provided that it includes representatives—

(a) from all strategic authority areas,

(b) from all tiers of local government, and

(c) from civil society and the charity sector.

in England.

(5) The Secretary of State must from time to time lay before Parliament a report on—

(a) the work of the Public Engagement Commission during the period since the laying of any previous report under this section, and

(b) progress towards improving public engagement at different levels of local government.”—(Siân Berry.)

This new clause creates a Public Engagement Commission to innovate and improve public engagement with local government in England, including the sharing of best practice.

Brought up, and read the First time.

[Siân Berry]

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

I will, as briefly as I can, because this is an interesting concept, outline the proposals in new clause 30 for the establishment of a public engagement commission. I have been part of some rocky debates in Committee, and I commend the new clause as a less fraught way to consider deep public participation, to come to terms with the benefits of participatory processes in appropriate situations and to look at democratic innovation in other ways.

The key issue here is that, as additional powers are gained, the choices and challenges facing public authorities in general—particularly these new ones—are becoming harder, along with the issues they are considering and the world situation. The need for citizen participation grows with that if we are to maintain trust and confidence in our public institutions. We need these new institutions to build trust and public confidence from the start.

The new clause closely relates to our legal obligations under the Aarhus convention, of which I am quite a big fan, as conventions go. It was adopted in 1998, when the Rio process really started to bed in, in the period when I started to become very involved in politics. I am certain that some of the processes taking place within central and local government as a result of our signing up to the convention encouraged my interest in politics, and led to some of the people who I work with now becoming my colleagues, so I am a big fan. The Aarhus convention links environmental rights and human rights. It establishes that

“sustainable development can be achieved only through the involvement of all stakeholders”

and it focuses on interactions between the public and public authorities in a democratic context. It is absolutely wonderful, but we are miles behind other countries in how we do that.

There are some really good examples of engagement in Britain. However, I see Ministers in the current Government not acting in the spirit of the convention, who are not keen to hear from the public, or who are certainly not keen to engage with them in new ways. I hear a lot about how engagement with the public slows down building—they put it less politely than that. We need to think more about how we undertake this kind of democratic innovation, not just in planning applications but in the wide range of powers and services that we are devolving. It should be part of the Bill’s DNA, and the new clause would do just that.

The new clause would set up a national body to guide and spread best practice, and it would take on the task of engaging and involving the public in innovative ways on very big and difficult questions—it would be a really positive addition to the Bill. The proposed public engagement commission is modelled on the French National Commission for Public Debate, which is celebrating its 30th anniversary—we can feel the vintage this comes from. The French commission started out by looking at big schemes such as TGV lines, and it has organised consultations on 130 schemes and projects. Some of the projects have been modified, some have been significantly redesigned, and some have actually been abandoned as a result of the public engagement. It is a success story in France, and we could make use of it here.

We had the National Infrastructure Commission, which governed planning applications, and that has recently been widened to the National Infrastructure and Service Transformation Authority, so it is intended to look at services as well. I think that a similar commission looking at strategic and national-level engagement would be a positive addition in helping us to fulfil some of our rights. Obviously, the commission would not intervene on every scheme, but it might intervene on schemes at a range of levels to establish best practice. It would be an ideal place to look at some of the knottier issues that we have come across.

I will finish with a few examples. I can see that Members do not want to debate this and they are feeling a little confused about what it might actually do. We have talked about proportional representation and voting systems today. For subjects that can be difficult to discuss, such as planning issues, which can descend into name calling, we could try different methods of engagement. We could listen to how to modify projects—that is an obvious one. We could also look at local growth plans and think about how they could be scrutinised to involve the public more. There is also the neighbourhoods work that the Government are still proposing. All would benefit from the involvement of this commission.

The commission could also try out and report back on new digital approaches. It could make sure that consultations work for younger people, while also ensuring that the digitally excluded can also join engagement exercises. Getting that kind of balance right is very hard, and establishing a commission to make sure that it works well would be a good thing. On things such as community infrastructure and mayoral levies, which are raised and spent in the local area, the commission should look at participatory budgeting and establish best practice. We know that mayoral development corporations are not really designed to be directly accountable or involve the public, but the commission could look at how those bodies could engage more effectively in local areas.

It is interesting that in engagement connected with new towns, it is people in the local area who are consulted when new towns are intended mainly to attract new people to an area. How should people who might come to live in an area be consulted? Those are interesting challenges and I think that the commission would be a positive addition.

More seriously, I hope that the Minister will recognise that there is a participation gap in relation to the Aarhus convention in this Bill. I hope that she will go away and look again at how that affects environmental rights and compliance and about how that might work at a national level. She should also think about how this challenge today might affect a wide range of different participation processes at the Government level.

Apologies for again making a very long case for a new clause. I do not table them idly.

[Paul Holmes]

I hope that the hon. Member for Brighton Pavilion does not develop a complex because I speak on all of her new clauses. She is a doughty parliamentarian who has deeply held views, and I do not want her to think that I oppose them because of any personal vendetta. However, as I am sure many expected, I rise to speak against the new clause because it lets politicians off the hook. It also does what I suggested many of the hon. Lady’s previous new clauses do.

The politicians, mayors and combined authorities we are talking about must have democratic legitimacy. They are accountable to their electorate in the traditional ways, which is an election at the current engagement levels that many mayors have. It is inherent within our system that if a mayor wants to be re-elected and build up incumbency so that people in the region say they are doing a good job, they will go out and show that they are working hard for those people.

The hon. Lady mentioned that we should follow France on this. These are not usually words that come out of my mouth, but I remind her that we are nearly at the end of the collapse of the Fifth Republic. I am not sure how much the commission helped, given how they have conducted their affairs over the last few months.

Much of the new clause adds a burden to an already overstretched and inadequately funded model. This is not to knock the Government, but establishing these authorities will be an incredibly long and complicated process, and there is going to be some disruption. The new clause would add a burden to many authorities for something that I do not think will deliver the outcomes that the hon. Lady expects.

I am a fan of Parliament and of the British Government, and I want them to do well—not that the Committee could see that from today—but I also believe in the position of the Secretary of State, and I think that asking the Secretary of State from “time to time” to lay a report before Parliament on the work of the public engagement commission during the period, and progress towards improving public engagement, is both setting up the Secretary of State for a fall—I am not sure how to measure public engagement—and letting the Secretary of State off the hook. The last Conservative Government and the Labour Government before them were in office for between 12 and 14 years. I could do it twice if I managed to survive as Secretary of State for 12 years—it may happen one day.

16:45

This is a poorly worded new clause that lays an additional burden on the Secretary of State—I am a fan on a personal level—as well as on the local authorities that are already going to have to establish something at a very early stage. I do not think it is going to deliver the increased engagement, I do not think it is measurable, and ultimately I do not think the new clause will lead to a better outcome, which is a better level of trust between a constituent and the mayoral combined authorities. That is why I do not support it.

[Miatta Fahnbulleh]

We all agree that we need stronger community engagement, and a big strand of what we are trying to do through the Bill is to ensure that our communities across the country have greater powers and voice. A new commission is not the answer. The answer is in the doing—us doing the job of enabling all levels of Government, including our national Government, to engage the public and our communities better.

There is a role for the LGA, supported with funding, in building local authorities’ capability to do community engagement effectively. We have discussed the neighbourhood governance structure that we are trying to build, and creating an effective locus for communities to exercise their voice and power, and to be interlocutors with local government. We are building the network for neighbourhoods, which will bring together communities and partners to share best practice, as the hon. Member for Brighton Pavilion is suggesting, and strengthen the capability of communities to exercise their voice and power.

Critically, we are already putting this into practice through pride in place. We are putting investment into communities, organising community leaders on to neighbourhood boards to make decisions about the things that matter. While I appreciate the need for greater community engagement, I think that rather than set up a long-winded commission, we should crack on with the doing. That is what the Government are committed to.

[Siân Berry]

A standing commission that offers regular advice to all the groups that are trying to innovate would be a boon to them, not a burden as the hon. Member for Hamble Valley said. I believe that reporting back from “time to time” is completely normal language in Bills that set up an independent agency or organisation and we want to receive reports back; it definitely does not mean anything in particular.

I remind the Minister that there are risks if we do not do something to ensure that we stand by the important rights that people expect to be upheld. It is not just full of opportunity and excitement, as my previous speech implied; there is genuinely a risk that the new bodies—these unfamiliar, geographically drawn strategic authorities—will rejected by the public if the Government do not get this right. Trust is a crucial metric that we cannot measure ourselves—it just happens or not in other people. We need people to genuinely trust the new bodies. We cannot tell someone to trust them—they do or they do not. The Government must ensure that they are doing that right.

I do not want the reforms to fall flat any more than Ministers do. I think this provision is an important thing that could be done to ensure that they succeed better than they otherwise would. However, I am not going to press it to a vote. I beg to ask leave to withdraw the clause.

Clause, by leave, withdrawn.

16:50

Sitting suspended for a Division in the House.

17:05

On resuming—

New Clause 31

Community wealth building

“(1) A strategic authority has a duty to prepare and publish a Community Wealth Building Action Plan (‘a plan’).

(2) The purposes of a plan are to facilitate and support the—

(a) generation,

(b) circulation, and

(c) retention

of wealth in local and regional economies.

(3) A plan under this section must include provision about—

(a) the development of plural ownership models for the local economy, including co-operatives,

(b) the development of fair employment and labour markets,

(c) procurement practices that support local economic development, and

(d) promoting the socially productive use of land and property.

(4) Strategic authorities may convene groups of anchor institutions (‘anchor institution networks’) within the strategic authority area to support the development and implementation of a plan.

(5) Strategic authorities may make arrangements to support anchor institution networks for the purpose of delivering a plan.

(6) For the purposes of this section an ‘anchor institution’ means any organisation within the strategic authority area that the strategic authority considers relevant for the delivery of a plan, including, but not limited to—

(a) employers;

(b) landowners or purchasers;

(c) community groups;

(d) groups with another relevant connection to the area.

(7) Strategic authorities have a right to request powers to apply local levies to private equity in local public services.” —(Siân Berry.)

This new clause requires strategic authorities to develop a community wealth building plan and to take steps to support and convene local anchor networks to deliver the plan, including through public procurement, use of land and assets, finance, and social value.

Brought up, and read the First time.

[Siân Berry]

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

I have been working on the new clause with the Centre for Local Economic Strategies. The new clause would require strategic authorities to prepare community wealth-building action plans and makes provision for partnerships with anchor organisations such as hospitals, colleges and employers, to support them. That would create the opportunity for organisations to come together to build collective action on things such as procurement, employment and the better use of owned assets in the local area. It would also grant mayors a right to request levies on private equity in local public services to limit extraction. The new clause is tailor-made for Labour Members, whose party outside government has long championed community wealth building.

In brief, community wealth building is the practice of creating an inclusive and democratically owned economy. It puts people before private equity profits, and champions the kind of economic development activity that is overlooked by industrial strategies, focusing instead on the everyday economy, where most people—our carers, our cleaners, our builders—work. Community wealth building is the missing piece of the puzzle to unlock growth for the benefit of everyone, everywhere. Scotland has a Community Wealth Building (Scotland) Bill passing through its Parliament. England must not be left behind.

We have all heard about Preston’s remarkable success in this field. Analysis of Preston’s programme in The Lancet Public Health found fewer mental health problems than expected during the community wealth building programme compared with similar areas, as life satisfaction and economic measures improved. The analysis found that the approach can provide an effective model for economic regeneration, potentially leading to substantial health benefits. Community wealth building is also part of the economic strategy of my city of Brighton and Hove, with a consensus to work on it over successive administrations.

To further the case, I will quote comments on the London borough of Islington’s programme made in November 2024 by its director of inclusive economy. She said:

“As I say very clearly to our team, this is not about levelling the playing field. This is about tilting the table. In an economy like Islington, we have to focus our limited resources on those who are least served by this economy…It’s about sustainability, it’s about justice, and that idea of creating prosperity for everyone. The core focus is on being locally rooted—trying to make sure that the money we spend and the efforts we make are all rooted within Islington and our wider regional economy”,

and that such programmes

“make sure that the big businesses who are in our local economies are able to engage with a local supply chain and local employment practices so that we can create that virtuous circle at a local level.”

The Islington programme director also commented on how equality is helped, saying in the interview,

“Similarly, lots of investment money typically goes to male-owned businesses. We’ve set up a series of programmes aimed at supporting underrepresented entrepreneurs.”

They reduce rents in their affordable workplaces if the operators support local people’s employment and local businesses and work on the supply chain. She also gives the example of dedicated incubation programmes

“to make sure that we ‘tilt the table’ in the favour of people who are least served by this economy.”

She says that, in short,

“It is about trying to make prosperity local”.

Who in this room could disagree with that?

I hope that the new clause is taken in the constructive spirit in which it is intended and receives a positive response from the Minister.

[Miatta Fahnbulleh]

I thank the hon. Lady for tabling this amendment. As a proud Co-operative MP and as part of a Government who are driving through changes to the economy that put people at the heart, I support the intent behind this amendment. I know of the good work CLES does to drive this agenda across local and regional government. As I have said before, for us, the purpose of devolution is to equip and enable our mayors, local authorities and communities to rewire the economy so that it works for local people and fundamentally builds the wealth of communities. That is clear.

However, a duty to create a separate community wealth building plan will not achieve the intent of the new clause. These approaches should be embedded in the local growth plans that mayors are developing. We see that in practice if we look across the country at what our Labour mayors are doing, whether that is in Greater Manchester, the Liverpool city region or the West of England combined authority. Their approach builds in the principles of building community wealth, of co-operatives and mutuals and of community power, with a strong emphasis on the everyday economy.

We can legislate as much as we like, but what is important is the doing and the practice. We are clear that our job is to empower and equip our local leaders to do this. Many of them are already at the vanguard and well ahead of national Government because of the legacy of the previous Government. We will work with our mayors and strategic authorities to embed this in their local plans.

Critically, we are making sure that there are clear levers at the community level to drive this approach, for example, through the community right to buy. We agree with the intent, but a separate plan is not the way to deliver it. It needs to be fundamentally baked into the way that mayors drive local economic growth—a way that will put their communities at the heart and not just improve living standards, but build the wealth of those communities.

[Siân Berry]

I thank the Minister for her response. I am not entirely convinced that these measures are as baked in as she said. All these issues are vulnerable to election cycles. Something more specific along these lines, potentially within the requirements of the local economic plans, would help to ensure that people consistently see this approach taken across the country. The Minister talked about Labour mayors, but is she convinced? I am not sure that other mayors will take this on board, despite the proven benefits. However, I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

New Clause 34

Local government data

“(1) LURA 2023 is amended in as follows.

(2) In Section 84, in subsection (2)(b), after “planning and development” insert “including in relation to economic conditions, transport, tourism and nature”.

(3) In Section 91 (Interpretation)—

(a) after “(g) Part 8 of GLAA 1999,” insert “(ga) Parts 2 and 3 of the Transport Act 2000”;

(b) after “(k) this Part or Part 4 or 6 of this Act” insert “ the Environment Act 2021, Part 3 of the Planning and Infrastructure Act 2025, Part 3 of the English Devolution and Community Empowerment Act 2026”.”—(Siân Berry.)

This new clause extends data standardisation powers contained in the Levelling-Up and Regeneration Act 2023 to encompass Local Growth Plans, Local Nature Recovery Strategies and Local Transport Plans. Currently, proposals in these other plans may not constitute “development”, so would be outside the scope of existing powers.

Brought up, and read the First time.

17:15

[Siân Berry]

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

New clause 34 is about something that I do not think Ministers have yet considered, but it would be of real benefit to the efficiency and transparency of these new authorities. The Levelling-up and Regeneration Act 2023 created a number of new powers to standardise planning data, including local plans, planning software and the ways in which we can get information about planning applications and policies. The new clause would make sure that other activities of the strategic authorities were, from the start, set up to provide a similar level of data. We are talking about spatial data, spending data, data for inward investments, and data for the jobs created in association with different parts of economic plans. It would be marvellous to put that level of digitalisation of public data into the Bill, for the same Department mandated the planning data reforms that are being taken up extremely well.

We must do something about this either now or at the next stage of the Bill. We have seen provisions in the Bill—I have tabled other amendments on this—say things like, “Mayors must publish in such a manner as the mayor thinks appropriate.” That kind of wording is a recipe for PDFs inaccessible to organisations such as Natural England seeking to scrutinise or interact with these different strategic authorities around the country. Ministers themselves may want to know some data about what is going on in these local authorities, as well as the public at large—civil society. If we do not make things standardised, we will end up having to go through multiple inaccessible PDFs. Sometimes, those are Excel documents that have been turned into PDFs, and yet the Excel documents are not released. It would be tremendous for standardised, accessible data in API formats—searchable, integratable and comparable—to be produced as a matter of course through the Bill.

The measure would also help to support the goals of the Aarhus convention, which is all about transparency and being able to find out information. It would also be a gift to people who want to create things like accessible apps, websites and maps for pamphlets about the services in a local area. Those are the kinds of benefits that the Government talked about at the time of introducing the requirements on planning. They need to look again at whether they want things published in multiple different ways that become hard to integrate later, or whether they want things to be organised a little better from the start. The new clause is tabled in a constructive way. I hope that Ministers will ask their teams to explore the idea and talk to the people working on planning. It would be of huge benefit not to have to unpick a mess of data for these new authorities later on.

[Miatta Fahnbulleh]

The hon. Lady has set out the Government’s ambition to move away from a document-led planning system to a data-driven one, where planning data is openly available and more easily accessible. I recognise the intention to expand the data standards provision to ensure that it covers other types of plans produced by strategic authorities, such as the local growth plan or the local transport plan.

The Levelling-up and Regeneration Act 2023 grants the Secretary of State the power to specify in regulations which planning information must meet set data standards. Given that data standards can evolve, the Secretary of State also has the power to define those standards. The definition of planning and development is already broad enough to capture the types of data that would be used for the plans sought to be covered by the hon. Member for Brighton Pavilion.

The Government are confident that existing powers in the 2023 Act are broad enough to make the new clause unnecessary. I come back to the consistent theme of many of my responses to the hon. Lady: it is now in the doing and the acting. We have the powers in statute to respond; it is about how we put those into practice. I ask the hon. Lady to withdraw the new clause.

[Siân Berry]

I implore the Minister to go away and look at this again. The courts have confirmed that transport schemes, such as the cycleway running along the Embankment, do not count as development. Therefore, the wider applicability that I think the Minister was asserting may not be in place without some kind of amendment to make sure that things such as the local economic plans, local growth plans, nature recovery strategies and local transport plans are fully covered by the Levelling-up and Regeneration Act. It may need some changes that I think the Minister is unaware of at the moment. I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

[The Chair]

We now come to new clause 41, which was debated with amendment 358 and is in the name of the hon. Member for Bath (Wera Hobhouse), who is not a Committee member. Does anyone wish to press the new clause to a Division?

[Vikki Slade]

We will not push new clause 41 to a Division, but my hon. Friend the Member for Bath may wish to table it again on Report.

New Clause 42

Power of mayors to convene meetings with local public service providers and government

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

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

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

(a) principal local authorities within their area,

(b) public service providers in their area, and

(c) town and parish councils within their area.

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

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

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

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

(a) principal local authorities within their area,

(b) public service providers in their area, and

(c) town and parish councils within their area.

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

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

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

(1) The Mayor must convene regular meetings with—

(a) principal local authorities within their area,

(b) public service providers in their area, and

(c) town and parish councils within their area.

(2) Meeting under subsection (1) must occur at least every 12 months.’”—(Manuela Perteghella.)

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

Brought up, and read the First time.

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

Division 75

Ayes: 3

Noes: 10

New Clause 43

Duty to provide professional planning support

“(1) The Secretary of State has a duty to provide appropriate professional planning support to town and parish councils in accordance with this section.

(2) Support provided under subsection (1) is for the purposes of enabling a town or parish council to—

(a) involve communities within the authority area with development of a neighbourhood plan, and

(b) engage communities with the content and delivery of the plan following its development.

(3) For the purposes of this section ‘communities’ means—

(a) any person or group of persons who live in the town or parish council area;

(b) any group who in the opinion of the town or parish council can reasonably demonstrate a connection to the area.”—(Vikki Slade.)

This new clause requires the Secretary of State to provide professional planning support to town and parish councils for the purposes of developing, and involving communities in, neighbourhood plans.

Brought up, and read the First time.

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

Division 76

Ayes: 6

Noes: 10

New Clause 44

Regional governance

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

(2) Regulations made under this section must—

(a) provide that—

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

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

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

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

(i) education and skills,

(ii) transport,

(iii) health and social care,

(iv) housing and planning, and

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

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

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

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

(c) the principle of subsidiarity.

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

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

Brought up, and read the First time.

[Vikki Slade]

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

I will speak on behalf of my hon. Friend the Member for Harrogate and Knaresborough (Tom Gordon). I am sure that in doing so I will also speak on behalf of other Members, in areas such as Cornwall and Yorkshire—my hon. Friend the Member for North Cornwall (Ben Maguire) in particular, but I suspect there may be others, even in this room, who support the intent of the new clause. In short, the new clause would push devolution a step further.

[David Simmonds]

Does the hon. Lady share my concern that during the passage of the Bill we have heard from some Members that they have been given assurances from the Government? Ministers have clarified that no such assurances have been given. Indeed, in response to a written parliamentary question from my right hon. Friend the Member for Braintree (Sir James Cleverly), the Minister set out that there are no provisions in the Bill that would provide such identity protections. Does the hon. Member for Mid Dorset and North Poole feel that this is something to which we need to return? Despite an impression that assurances have been given, it is clear that they are not present.

[Vikki Slade]

I thank the hon. Gentleman for his intervention. I did a little research on the national minority status introduced by the former Liberal Democrat Chief Secretary to the Treasury, Danny Alexander, back in 2014. This is fundamental. Cornwall has national minority status and it is critical that no Bill, including this one, should undermine that position. Other areas with strong regional identities and commonalities could potentially benefit from the new clause, which would allow for a degree of regional governance, across a number of mayoral regions, through the creation of regional assemblies. The clause includes protections: the Secretary of State would be required to assess the local appetite and need for a body, and Parliament would have to approve the creation of such an assembly. We hope that those will be effective in securing the support of the Minister.

This new clause is hugely important in relation to the people living in these areas. It would introduce greater protections and rights for local populations in those areas, devolving more decision-making powers and granting more freedoms from decisions made in Westminster, which are less applicable to these distinct areas. It would advance on the Bill’s power for collaboration across areas by providing an assembly structure through which multiple councils and mayors—although I recognise that if it was Cornwall, it would be a single council, probably with no mayor—could work together at scale to drive coherent change for a given region.

Clearly, the measure would need to be developed through the regulations listed in the new clause. The provision is embryonic, so that it allows for a lot of work and consultation to be done in the areas where it would apply. This is an opportunity to signal a direction of travel towards genuine devolution for places with special characteristics—I would argue that the Isle of Wight might have such special characteristics—or national minority status. We hope that the Minister will take the opportunity to embrace this change.

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

Here we are, two weeks on, and it feels a bit like groundhog day. Listening to this Committee, it is interesting to hear people who come a long way from Cornwall trying to suggest what is good for Cornwall and the Cornish people.

17:30

[Vikki Slade]

Unfortunately, the two Liberal Democrats who represent Cornwall—my hon. Friends the Members for North Cornwall and for St Ives (Andrew George)—are not on this Bill Committee, but they have put their names to the new clause, as has a Yorkshire Member, my hon. Friend the Member for Harrogate and Knaresborough.

[Perran Moon]

I thank the hon. Lady, but I note that according to the amendment paper, one of the two Cornwall Members has not put their name to the new clause. The hon. Member for St Ives is not on the list.

I will make some progress. We are two weeks on, and we have come full circle on the Cornish question. I am glad that the hon. Lady mentioned national minority status, which is the crux. I have said it before and I will say it again: the Cornish people have a unique place on this island, as we are the only people with national minority status who do not currently have access to the highest level of devolution, even though the people of Cornwall want it. That can be seen very clearly across the political spectrum. Conservatives, Liberal Democrats, Labour, Green, independents and Mebyon Kernow are all in favour of greater devolution for Cornwall without the requirement of a mayor, which is the highest level of devolution. Only one party supports joining a mayoral combined authority: Reform. It would be a dereliction of duty on my part not to raise those concerns.

[David Simmonds]

It falls to me, as the shadow Minister, to be the voice for Conservatives in Cornwall, who would absolutely agree with everything that the hon. Gentleman says. There is strong cross-party consensus. The reason we tabled our amendments, which were very similar in spirit to the hon. Gentleman’s, was to seek an assurance that because of Cornwall’s unique situation, there would be provisions in the legislation that would protect it.

The hon. Gentleman said very clearly that he had received assurances on the basis of which he had decided to withdraw his amendments. Since then, the Minister has clarified, in response to a written question, that there are no provisions in the Bill that would provide that protected status. Can the hon. Gentleman share with the Committee whether he has had any further assurances since that date to give us all comfort that the unique identity of Cornwall will be protected in the changes envisaged in this legislation?

[Perran Moon]

I think that there is scope within the Bill to find a path forward that would be acceptable to the people of Cornwall and would adhere to the Government’s devolution plan, particularly around a single strategic authority. I implore the Minister to keep working with Cornish MPs to find a solution that allows the Cornish people access to the highest level of devolution, but without a requirement to join a mayoral combined authority. On that basis, I will not support the new clause.

[Miatta Fahnbulleh]

The new clause conflates two issues, and I will try to unpack them. On the one hand, there is the question of recognition of national minority status, which is particularly pertinent in the case of Cornwall. My hon. Friend the Member for Camborne and Redruth has been a steadfast, impassioned and persistent champion and advocate for it.

My departmental colleagues and I have put it on the record that we absolutely recognise the unique status of Cornwall. We are looking for ways both to enhance the protections that are already there and, critically, to support the Cornish local authority in responding to the challenges that it faces and unlock the potential of the area. That is all on the record. We will continue to work, not just with members of the Committee but with MPs across Cornwall and the local authority, to take that forward. However, that is distinct from the ambition to create a regional tier of government. I remind colleagues that that was roundly rejected in a referendum. I know it was a couple of decades ago, but the question was tested.

There is a fundamental question here: if we are trying to drive the economic prosperity of places, where is it best to locate that? One model proposes that the best place is large regional blocs, while another model says that functional geographies around city and county regions are better placed to drive that. The large regional blocs model was tested with the regional development agencies, and we found that the connection to the local economy was weaker. Critically, the democratic link to people in those places was weaker. That is why the model did not endure, and why, unfortunately, the Conservatives undid all the good work that we did when we were last in power. Our strong view is that strategic, functional geography—city and county regions—is the best place to make decisions around transport, housing and planning, skills and travel-to-work areas. That is why we are conferring powers at that level.

If we seek to create another regional tier that is not about the collaboration that we are seeing, for example, with Northern Powerhouse Rail or our authorities in the midlands to deal with issues, predominantly to do with rail, that cut across functional areas, I worry that we will denude the very institutions that we are trying to strengthen, confuse the system, create more complexity and bureaucracy, and undermine the one thing we all want to achieve: stronger, functional economic geographies that can drive prosperity in places.

There are two issues here. I understand what the hon. Lady’s new clause is trying to do, but it is fundamentally wrong. We have tested that model, and we believe that functional geographies at the strategic authority level are where we can make progress. I point her to the evidence of the past decade, in which we have had mayors in Greater Manchester and the Liverpool city region driving growth and prosperity. That is the right geography. We need to build the power there. We should not confuse the matter. I ask the her to withdraw the new clause.

[Vikki Slade]

No, I am not going to withdraw the new clause. If the Minister reads it, she will see that I am not conflating the issues at all. I simply gave Cornwall as an example of where it might work. The new clause does not mention the word “Cornwall”. It allows for

“a regional governance body in any part of England, where in the opinion of the Secretary of State there is demonstrable local support for such a body”,

so it does not undermine the role of the strategic authority.

Let me give the Minister another example. Whether Cornwall is or is not included is up to the people of Cornwall, but Wessex, we presume, will come forward in the next wave of devolution deals. Wessex may be a functional geography in terms of our connectivity, but the south-west of England is the place that most of us identify with far more.

[Miatta Fahnbulleh]

The hon. Lady talks about regional assemblies in the context of Cornwall. Can she explain the purpose of the local authority and the elected council in the model that she is proposing?

[Vikki Slade]

I refer the Minister to the fact that I gave Cornwall as an example of a place where people may want to set up a regional governance body. The new clause was tabled by my hon. Friend the Member for Harrogate and Knaresborough (Tom Gordon), initially in reference to Yorkshire, which has a number of mayoral authorities that want to work together. The people of Yorkshire feel that they have an identity as Yorkshire, and they want a regional assembly.

If the Minister would like me to withdraw my comment about the fact that that may work for Cornwall, she should feel free to ask, but I know for a fact that my hon. Friend the Member for North Cornwall (Ben Maguire) believes that the new clause would benefit him in Cornwall, so I will not withdraw it. It is important to give people the opportunity to have something that they feel works for them.

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

Division 77

Ayes: 3

Noes: 9

New Clause 45

Local public accounts committees

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

(2) Regulations made under this section must—

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

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

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

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

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

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

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

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

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

Brought up, and read the First time.

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

Division 78

Ayes: 3

Noes: 10

New Clause 46

Duty to publish and implement a forward devolution strategy

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

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

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

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

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

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

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

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

Brought up, and read the First time.

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

Division 79

Ayes: 3

Noes: 10

New Clause 48

Greater London Authority: decision-making

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

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

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

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

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

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

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

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

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

Brought up, and read the First time.

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

Division 80

Ayes: 6

Noes: 9

17:44

New Clause 49

Regulation of Ferry Services by Regional Mayors

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

(2) Functions exercisable by a mayor may include—

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

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

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

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

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

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

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

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

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

(b) any local transport authorities affected,

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

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

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

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

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

Brought up, and read the First time.

[Paul Holmes]

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

I am sorry to tempt the Committee with the prospect of a nice pint in the Strangers Bar, but I will not speak to this new clause for very long. It was tabled by my hon. Friend the Member for Isle of Wight East (Joe Robertson). We have spent the afternoon talking about unique circumstances elsewhere in the country, but there are unique circumstances on the Isle of Wight, because of the nature of its geography.

Before I say any more on that, Dame Siobhain, may I, as one of the shadow Ministers, thank you and the other Chairs for your chairing, because this is probably the last time that I will speak in this Bill Committee? I also thank the Minister and the Government Whip, who has been so courteous during our negotiations through the usual channels; hopefully, she will do us some more favours going forward.

Even though we are not in government, I also thank the officials, because I have seen the churn of officials coming in and going out of the Committee Room in the last couple of weeks. Without them, politics would not be able to function, so I thank them for their work on the Bill. We mostly disagree with the Bill, but they are doing a great job for all of us.

The Isle of Wight is geographically unique, because it is only really accessible by boat, including ferries. Over the last 20 years or so, the two main ferry companies for the Isle of Wight, Red Funnel and Wightlink, have been passed between and traded by private equity groups. Just last week, Red Funnel changed hands in what was believed to be a distressed sale, with banks being owed tens of millions of pounds.

The people of the Isle of Wight absolutely rely on access to the mainland, and the island relies on mainland access to it, in order to supply it and to ensure that the people of that great place are well and are looked after. Under the pricing model of the last 20 years, however, peak car return fares have skyrocketed to as much as £400 a car, just for crossing a five-mile stretch of water. Timetables have diminished, so what was once a 30-minute service is now hourly or worse, and under-investment by Red Funnel’s owners means that its car ferry fleet is so old that it entered service before the maritime Minister, the Under-Secretary of State for Transport, the hon. Member for Selby (Keir Mather), was born. Breakdowns are increasingly frequent, with some parts now so obsolete that boats are having to be withdrawn from service.

The Isle of Wight ferry service is a lifeline. There is no other way for the island’s 140,000 residents to cross the five-mile stretch of water to get on and off the island, including for key activities such as work, health appointments, education, visiting sick relatives, or being visited by relatives on whom they rely.

In the last debate on new clause 44, the Minister said that she believed that transport management structures should be run on a county basis. We agree with her; the efficiencies of scale mean that the mayor of Hampshire and the Solent should be able to run transport locally. The Government have a record of policies whereby we are seeing greater Government and regional involvement in the commissioning and running of our transport services, particularly through the bus Bill. My hon. Friend the Member for Isle of Wight East and I would argue that ferries should not be treated differently, especially when they are the sole mode of transport that people must rely on.

When my hon. Friend met the previous maritime Minister, the hon. Member for Wythenshawe and Sale East (Mike Kane), however, the Government showed a distinct lack of action in this regard. My hon. Friend was promised that there would be a number of meetings—there have been meetings with the previous Minister—and that a body would be convened to discuss the matter, but that simply has not happened.

My hon. Friend therefore tabled new clause 49, which would give mayors the authority to regulate ferry services. It would apply not only to the Isle of Wight but to any regional structure that has ferries acting within its geographical boundaries. The functions exercisable by the mayor would include

“making regulations concerning the provision, operation, safety, accessibility, affordability, and reliability of ferry services”.

Labour Members should look at me with encouragement—perhaps I have had a conversion to the centre-left of British politics—because the new clause would also provide for the regulation of fares and a fare cap. I think that is acceptable in a situation where a single provider is flagrantly breaching the good faith of the people of the Isle of Wight.

I know that the Minister will resist this new clause—that does not surprise me; she has a job to do, as do I—but there is clearly a problem. I live just up the road from the Isle of Wight and the prices are crazy. The people living on the island rely on those ferries—they are used to supply medical services, to supply businesses and shops, and for family situations on the Isle of Wight—so the Government must step up.

The new clause makes a reasonable suggestion to the Government to give a mayor the power to control transport services within their region. I am delighted that the Conservative candidate for mayor of Hampshire and the Solent, Donna Jones, has said that she is actively pushing the Government for those regulatory powers. We support her in that so that she can come down very hard on the ferry services that are taking advantage of people who live on the Isle of Wight.

If the Government genuinely believe in devolution and in the control of transport—we have seen over the last 14 months that they believe in mayors being able to commission and manage transport services—that should include all transport services. I commend the new clause to the Committee, and hope that the Minister will give some encouraging words to my hon. Friend the Member for Isle of Wight East and to me. I have not spoken to my hon. Friend about this, and I am sure he will want to move the new clause on Report, but I wish to press it to a Division in Committee.

[Miatta Fahnbulleh]

Let me start by saying that we absolutely recognise the issue that the hon. Member for Hamble Valley and hon. Members representing the Isle of Wight have raised. That is why the Department for Transport has engaged with MPs and stakeholders on the Isle of Wight to identify their local solutions to the concerns that we understand and appreciate need to be addressed.

That engagement has included a ministerial roundtable on this issue and a commitment to create a cross-Solent group. An independent chair has been appointed to take that group forward. We will continue to engage with partners locally to address the genuine issues that have been raised about the ferry service in the area. The power of a democratically elected mayor is that they can make this a core issue and use the levers that they have and the seat that they will have at the table with Government to keep making the case and delivering for their community.

[Paul Holmes]

I thank the Minister for those encouraging words. She is absolutely correct, and I hope she does not see this intervention as unfair, but can she use her good offices to speed that group along? When the then maritime Minister visited the Isle of Wight in April, he said that a DFT working group would be created, but that has not happened—there has been no meeting. My hon. Friend the Member for Isle of Wight East and the hon. Member for Isle of Wight West (Mr Quigley) have been involved in that working group on a cross-party basis but it has not met yet. Could the Minister use her good offices to push for that meeting?

[Miatta Fahnbulleh]

I will write to my counterparts in the DFT. The commitment to create the group came in recognition of a problem. We are committed to working with local stakeholders and Members representing the area to respond to that, so I am happy to write to my DFT colleagues to chivvy that along.

[Paul Holmes]

The Minister has gone further than I was expecting her to. I think it is now up to my hon. Friend the Member for Isle of Wight East to table the new clause again on Report, alongside, if necessary, the hon. Member for Isle of Wight West. Pending conversations with my hon. Friend, I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

New Clause 51

Community ownership fund

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

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

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

(a) voluntary and community organisation, or

(b) parish or town council,

to purchase of an assets of community value they determine is at risk in their area.”—(Vikki Slade.)

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

Brought up, and read the First time.

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

Division 81

Ayes: 3

Noes: 9

[The Chair]

We now come to new clause 53. Does anybody wish to move it?

[Siân Berry]

I do not wish to move the new clause, but my hon. Friend the Member for Bristol Central (Carla Denyer) may bring it back on Report.

New Clause 56

Authority involvement in local skills improvement plans

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

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

(3) After subsection (7) insert—

‘(7A) Where a specified area covers any of the area of a Strategic Authority within the meaning of the English Devolution and Community Empowerment Act 2025, the Secretary of State may approve and publish a local skills improvement plan for the specified area only if satisfied that—

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

(b) the plan has been agreed by both the Strategic Authority and the employer representative body, and

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

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

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

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

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

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

(a) issue guidance to resolve the disagreement;

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

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

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

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

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

(b) employer engagement in identifying local skills needs,

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

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

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

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

‘“Strategic Authority” has the meaning given by section 1(2) of the English Devolution and Community Empowerment Act 2025;’”.—(Manuela Perteghella.)

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

Brought up, and read the First time.

[Manuela Perteghella]

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

[The Chair]

With this it will be convenient to discuss the following:

New clause 57—Consideration of existing adult skills provision—

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

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

(b) existing higher education provision in its area

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

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

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

New clause 58—Annual reporting on adult education funding—

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

(2) A report under this section must include—

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

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

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

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

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

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

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

(a) any further content of, and

(b) publication of

reports under this section.”

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

[Manuela Perteghella]

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

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

18:00

New clause 56 is the most substantial. It would create joined-up leadership in the skills space. It would also reconfigure the local skills improvement plan boundaries and enable the strategic authority or the employer representative body to escalate disagreements to the Secretary of State to find a resolution, which is quite important.

In our view, the strategic authorities should have an equal voice in planning how they spend the money that they are responsible for on skills development and improvement plans. In order to do so, the strategic authority and the employer representative body should be required to work together to agree strategic and financial priorities. That is a significant improvement on the current situation, which requires only the views of the strategic authority to be considered. We are offering a model that is more like co-ordination and partnership.

The Secretary of State should therefore withhold approval until agreement is reached on a local skills plan by both parties—we would put them both on an equal footing. The boundaries of that plan must map on to the boundaries of the strategic authority to ensure effective co-ordination. We argue that providing a route of escalation to the Secretary of State for dispute resolution will ensure a focus on effective delivery and value for money. That would mean a workable joint ownership or partnership agreement for something that is so important, not just to our local, regional and national economy, but to ensuring a productive future for our young people.

New clause 57 would introduce a simple duty to ensure that planning for adult skills must also consider existing 16 to 19 and higher education provision. The Bill takes the positive step of devolving responsibility for adult skills, but it leaves 16 to 19 education centralised and higher education governance separate. Through the new clause, we are trying to address the risk of strategic authorities acting outside of the existing context and thereby fragmenting provision.

The new clause would ensure clarity of progression for learners, with the strategic authorities having due regard for how someone might progress from 16 to 19 education, through their skills provision, and into higher education and employment. As Members know, millions of our young people are not in education, employment or training, so it is really important that we get that right in the Bill so that we can improve on the already very good provision. The new clause will also prevent the duplication of offers and the wasting of public money on, for example, disjointed provision.

New clause 58 would introduce a reporting requirement. We are seeking to rectify the fact that there is almost no performance reporting framework for local skills improvement plans in the Skills and Post-16 Education Act 2022. After the Bill receives Royal Assent, strategic authorities will effectively control public budgets in this space, so we want an accountability mechanism. We would welcome reassurances from the Minister on that. It is vital that employers, the public and Parliament are able to assess the outcomes of devolving skills; as I said, that is important for our economy and the future of our country.

We would like to see an expectation of annual reports that can be scrutinised. Those reports would be required to cover, for example, how funding is deployed to meet local needs; co-ordination with employers bodies and skills providers; outcomes for learners—we want to see what progression they are making towards employment—and employer satisfaction with the skilled workforce, because at the moment we know that that is a huge challenge for employers. The Secretary of State could provide guidance on the format in which those reports should be presented. New clause 58 would improve democratic accountability of decisions and provide an evidence base for future policy, because then we would have the kind of reporting that can inform and shape future legislation.

I hope that the Minister can either support all three new clauses, or reassure us on how we can ensure that strategic authorities and all the other partners work together to ensure that our skills strategy succeeds.

[Miatta Fahnbulleh]

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

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

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

[Manuela Perteghella]

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

[Miatta Fahnbulleh]

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

[Manuela Perteghella]

I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

Clause 72

Interpretation

[Miatta Fahnbulleh]

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

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

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

[The Chair]

With this it will be convenient to discuss the following:

Clause stand part.

Government amendment 244.

Clauses 73 to 77 stand part.

Government amendment 245.

Clauses 78 and 79 stand part.

[Miatta Fahnbulleh]

As this is, I hope, the last time that I will be standing, I thank you, Dame Siobhain, and our other Chairs for your fantastic chairing of this Committee. The pace, tone and quality of the debate are testimony to how effectively it is been chaired. I put on record my thanks to the Clerks, who have done a fantastic job facilitating the proceedings of this Committee and ensuring that we all know what we are doing.

I offer huge thanks to my hon. Friends, who have been fantastic colleagues in driving through this line-by-line process. It is the first time that I have ever taken a Bill through Committee, and I thank them for all their support. I also thank Opposition Members. The way we have conducted the Committee is a testament to the very best of Parliament. It has been done with much gusto, with spirit and with great insights, but in a very collegiate manner, and I thank all hon. Members for that.

Finally, I put on record my thanks to my fantastic officials. This is a mammoth Bill, with a huge amount of work done before my time and up to this point. We would not be here with this genuinely transformative piece of legislation, which begins to rewire the state to put power in the hands of our communities, without the fantastic work of my officials in the Department who drove it forward.

With huge thanks, great relief and slight exhaustion, I turn to part 6 of the Bill. The clauses in part 6 are standard Bill clauses, which ensure that the provisions in other parts of the Bill work as intended when it comes into force. The amendments are consequential clarifying amendments. They mean that the Bill as a whole is coherent and operates the way that we intend it to in policy. I draw the Committee’s attention to clause 79, in particular, which provides that the short title of this Bill, once enacted, will be the “English Devolution and Community Empowerment Act”. I think we will all be proud of our role in bringing it into force.

Amendment 243 agreed to.

Clause 72, as amended, ordered to stand part of the Bill.

Clause 73

Saving of orders and regulations relating to combined authorities and CCAs

Amendment made: 244, in clause 73, page 74, line 27, leave out from “which” to end of line 29 and insert

“is to continue to apply instead of the primary legislation by virtue of subsection (2), or

(b) makes modifications or other contrary provision to which the primary legislation is to continue to be subject by virtue of subsection (2).”—(Miatta Fahnbulleh.)

This would clarify the relationship between subsection (4) and subsection (2); and clarify that paragraphs (a) and (b) are alternatives.

Clause 73, as amended, ordered to stand part of the Bill.

Clauses 74 to 77 ordered to stand part of the Bill.

Clause 78

Commencement

Amendment made: 245, in clause 78, page 76, leave out lines 11 and 12 and insert—

“(c) any other provision of this Act comes into force (including provision modifying other legislation) so far as it confers power to make secondary legislation or is otherwise necessary for enabling the exercise of such a power on or after the day on which this Act is passed.”—(Miatta Fahnbulleh.)

This ensures that the powers to make secondary legislation inserted by the Bill, and any provisions necessary for enabling the exercise of such powers, come into force on the day on which the Act is passed.

Amendment proposed: 303, in clause 78, page 78, line 7, at end insert—

“(5A) Section 71 will not come into force until the Secretary of State has—

(a) completed a consultation about the impact of section 71 on businesses, and

(b) laid a report summarising the consultation before both Houses of Parliament.”—(David Simmonds.)

This amendment would prevent section 71 from coming into force until a consultation on its impact on businesses has been completed and a report summarising the consultation has been laid before both Houses of Parliament.

Question put, That the amendment be made.

Division 82

Ayes: 2

Noes: 9

Clause 78, as amended, ordered to stand part of the Bill.

Clause 79 ordered to stand part of the Bill.

Question proposed, That the Chair do report the Bill, as amended, to the House.

[Vikki Slade]

I would like to thank all the Committee staff, yourself, Dame Siobhain, and all of the other Chairs, and all the Members on the Committee. I also thank the staff in our offices, who have had to work really hard and stay quite late into the evening to ensure that everything gets put into the Public Bill Office for the next stage. I pay tribute to all of them.

[David Simmonds]

I echo those comments, Dame Siobhain. The Bill may be poor, but the organisation and support have been flawless—[Interruption.] And the quality of the heckling is without parallel. I know we will be returning to many of the topics of debate later on in the parliamentary process, so we will have the opportunity to relitigate and seek to deliver the necessary improvements to the legislation. I thank all the officials, all those who contributed to the Bill, and the witnesses, whose evidence has been so helpful.

[Siân Berry]

To what everyone else has said, I want to add that, while I have spent a lot of time in the Committee complaining that scrutiny is not done well, we have done a really good job of scrutinising this Bill. My team has had the most amazing support from the Public Bill Office and the Clerks, and the Chairs have been fantastic, so thank you very much, everyone.

[The Chair]

I extend my thanks to all the Members, who made it very easy to Chair, and to all the staff for their support. I am just grateful that the microphones continued working after the first day.

Question put and agreed to.

Bill, as amended, accordingly to be reported.

18:21

Committee rose.

Written evidence reported to the House

EDCEB47 West Midlands Police and Crime Commissioner

EDCEB48 Mercury Theatre, Colchester

EDCEB49 WPI Strategy

EDCEB50 National Fire Chiefs Council

EDCEB51 Unison

EDCEB52 Institute of Place Management (IPM)