English Devolution and Community Empowerment Bill

Baroness Pidgeon Excerpts

2nd reading
Monday 8th December 2025 Lords Chamber

[Baroness Pidgeon (LD)]

My Lords, I also declare that I am a vice-president of the Local Government Association. As a passionate localist, someone who strongly believes in devolving power to the lowest possible level, I was rather excited to hear that there was a devolution White Paper and subsequent Bill. But sadly, as for many of my noble friends, the excitement evaporated pretty quickly. The Bill is not about subsidiarity; it is Whitehall giving out a few goodies but with strings and budgets very much attached and controlled from the centre. This is not devolution in my book.

Compared with other OECD countries, the UK remains one of the most fiscally centralised countries. Data from the OECD’s revenue statistics shows that in recent years, no more than 6% of the UK’s total tax revenue has been raised locally. This is about half the OECD average. Whitehall needs to let go and devolve far more funding and services to local and regional government. Fiscal devolution—as we see in cities and localities around the world—alongside a fairer voting system, would allow local innovation and creativity and would help reset politics. Sadly, these are all absent from the Bill.

I will focus my concerns on a few specific areas. The Bill provides insufficient scrutiny of strategic mayors and authorities. The mayoral model is being rolled out across the country without the strong check and balance that is needed. In the Commons, the Minister said:

“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”.—[Official Report, Commons, English Devolution and Community Empowerment Bill Committee, 28/10/25; col. 521.]


Perhaps the Minister could update us on the work to strengthen the scrutiny of these new mayors.

There is also an assumption that London has had devolution through the 1999 Act and the amendment Act—tick, job done—but that is not the case. The reality is that the mayor has been given increasing areas to oversee over many years and now has a budget well over £21 billion. Yet the London Assembly, the other half of the Greater London Authority, has not seen an appropriate increase in its powers, and the Bill proposes even more powers to the mayor.

Having been an assembly member for 16 years, I know at first hand that some additional powers are needed to strengthen the scrutiny of the Mayor of London and partner agencies, and ensure that services are being delivered effectively and efficiently. I therefore ask the Minister: what engagement did the Government have with the London Assembly ahead of the Bill? It is clear that the assembly needs stronger powers, such as a wider power of summons and a change to the threshold for the budget. I will bring forward amendments in Committee to address these concerns.

The other areas to which I wish to draw attention at this stage are related to transport. Over recent years we have seen the explosion in micromobility, e-bikes and scooters, covering our pavements and streets. They are a lifeline for many who use them to get about our cities at pace and convenience but are a nightmare for those with mobility issues or visual impairments or for young families having to negotiate routes around these obstacles dumped all over the pavements. Local authorities are unable to license or manage these bikes or set safety standards for them.

While it is welcome that the Bill covers this area, neither the Bill nor the accompanying guidance includes explicit requirements on mayors or strategic authorities to engage with constituent authorities on the development of micromobility schemes. An upfront duty would ensure that engagement at all stages is robust and covers all instances. I would be interested to hear from the Minister on this matter.

My final issue, which has been raised a number of times, relates to private hire and taxi licensing and regulation. While welcome, the amendment introducing national minimum standards does not go far enough, and it feels as if this issue is being kicked into the long grass.

I have been talking to transport authorities across the country; they are all concerned about out-of-area licensing. This is a safeguarding issue. It was raised by the noble Baroness, Lady Casey, in her June 2025 report on group-based child sexual exploitation, as the Minister mentioned. The noble Baroness, Lady Casey, recommended that the Government

“should take immediate action to put a stop to ‘out of area taxis’”.

Noble Lords might be wondering why this is an issue. Different authorities have different standards in their licensing regimes, and if you want to operate in an area, you should be licensed for that area.

As we have heard several times, in Manchester 49% of drivers are currently licensed in Wolverhampton. This means that Manchester local authorities have no say over the standards of drivers and vehicles in the city, nor the resource and right to carry out inspections. This is a huge safeguarding issue and a loophole that needs closing. Will the Minister work with me and Members across the House to close this dangerous safeguarding gap?

I look forward to working to improve the Bill to ensure local empowerment, genuine devolution and safer transport for all.