English Devolution and Community Empowerment Bill

Lord Wilson of Sedgefield Excerpts

Committee stage
Thursday 29th January 2026 Grand Committee

[Lord in Waiting/Government Whip (Lord Wilson of Sedgefield) (Lab)]

My Lords, I thank all of the noble Lords and noble Baronesses who have taken part in this debate. I especially thank the noble Baronesses, Lady Scott of Bybrook and Lady Pinnock, and the noble Lords, Lord Norton and Lord Shipley, for their amendments on the subject of reviews.

Taken together, Amendments 93, 251, 253 and 255 seek to expand the requirements on the Secretary of State to report on the effect of the Act and the outcomes in various policy areas; and to undertake reviews of regional public spending and the effectiveness of community empowerment measures. The duty to produce an annual report on English devolution already exists to update Parliament on the progress made by the Government on devolution in England. We are already amending these reporting requirements to include which powers, functions and funding have been devolved to strategic authorities from central government. The reporting of outcomes in policy areas such as housebuilding, economic growth and social care already takes place. Social care is not going to strategic authorities; it will remain with local authorities. These policy outcomes are dependent on myriad factors, and a report on English devolution would not be the appropriate place to cover them.

On tax and public spending, the requirements for the annual report on English devolution, as amended by Clause 19, already cover any new powers to impose new taxes, as well as the funding devolved to strategic authorities. Combined authorities must also publish upcoming decisions that will have a significant effect on their citizens. These amendments would place an unnecessary, duplicative burden on the Secretary of State; in the case of social care, they would create new reporting requirements in areas where local authorities, rather than strategic authorities, have responsibility. I therefore ask noble Lords to withdraw them.

Amendment 94 in the name of the noble Baroness, Lady Pinnock, seeks to expand the requirements on the Secretary of State to report where a power in this Bill is used without the consent of “local officials”. The amendment does not define “local officials”, so it is not clear who would be in scope of the reporting. Where appropriate, the use of certain powers in the Bill already has requirements to consult local leaders; for example, constituent councils must be consulted where a function is conferred through Schedule 25 or where a strategic authority is established. It is not reasonable to expect that there will always be unanimous support for the use of any given Secretary of State power, and it would be disproportionate to require reporting where a power has been used with widespread, but not unanimous, local support.

The Government greatly value the role that parish and town councils play in bringing forward the priorities of their communities and delivering effective local services. Although I understand the intention behind Amendment 197, I cannot accept it, I am afraid. We do not believe that a national, top town review is the right approach. Existing legislation already provides clear routes for establishing new parish and town councils through community governance reviews. These reviews are led locally, are responsive to community identity and ensure that new councils emerge where there is genuine local support. Imposing a duty to maximise geographical coverage would risk forcing parish and town councils on to areas where other neighbourhood governance arrangements may be more appropriate—in urban settings, for example. The Government value the role of parish and town councils; we want to continue working with the sector to support strong, effective, community-led governance, but that does not mean mandating a single model across the country.

It is only fair to point out at this stage that there are about 10,000 parish councils in England and about 100,000 local parish councillors. The sector varies hugely in size from city or town councils to hamlet-sized parish meetings. According to analysis from the National Association of Local Councils and the Democracy Club, in the 2025 parish council elections, 21.4% of seats were left vacant. Sample data suggests that around 55% of these vacant seats were filled by co-option, which would suggest that 11.7% of seats were co-opted. Of the remainder, 65%, or on the way to two-thirds of seats, were elected uncontested, and 12.8% were elected through a contested poll; this is consistent with the rate of contested elections in previous years, which is why we value the work of town and parish councillors. We have to take into consideration the variety of those authorities and their capacity to fulfil some of the duties with which we want to provide them, so in our view a top-down single model across the country would not work.

[Baroness Bennett of Manor Castle (GP)]

To go back to the Minister’s comments before he sits down. It is interesting that the Government seem to want one model across the country at higher levels, but not here. Will the Minister acknowledge that it is generally the parish areas and town councils that tend to be wealthier, older communities and it is the most vulnerable communities with less social and financial capital in them that may not be able to prepare themselves for this? However, the Government might identify that there is gap and put in resources to help them.

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[Lord Wilson of Sedgefield (Lab)]

There is a duty to provide that kind of governance in the Bill. All I am trying to say is that there are various kinds of capacity in the 10,000 parish councils and they are not all the same. We cannot approach them in the same way. We know some of them have problems. I come from a shire county in the north-east of England so I know the capacity of parish councils and town councils to do certain jobs. We are well aware of that, and it is something that we obviously want to try and improve, and work with these parish and town councils into the future.

Amendment 252 concerns the powers available to local and combined authorities to promote local economic growth through banking and credit provision. Banking regulation is of systemic national interest. Its implementation must be consistent in applying technical standards, ensuring financial stability and protecting taxpayers. As such, it remains important that banking regulation continues to be considered at the national level as a reserved matter. Local and community banking is already possible within the existing framework, and the UK has a strong record of enabling new entrants to support access to finance. Mutuals, including building societies and credit unions, play a key role in supporting local economic growth. The Government are committed to doubling the size of the mutuals sector, with reforms already under way to help mutuals grow and raise capital. Further, through our financial inclusion strategy, the Government are improving access to affordable credit and strengthening community finance partnerships to support people and local economies. As such, the objectives of the proposed review are already addressed by existing initiatives, and I ask noble Baroness to withdraw her amendment.

[Baroness Scott of Bybrook (Con)]

My Lords, Amendment 93 in my name is about understanding whether devolution is delivering what it promises, and I thank the noble Lord, Lord Wallace of Saltaire, for his support. The Bill places significant powers in the hands of devolved authorities, which is welcome, but with these powers must come clear and transparent assessment of their impact, not only on governance structures but on outcomes that matter to people’s daily lives.

The amendment seeks to expand the Secretary of State’s reporting requirements to cover four key areas, as I have said: housebuilding, economic growth, fiscal change and social care. These are central tests of success. Are housing targets being met? Are the right homes being delivered in the right places? Is devolution driving growth, et cetera? These are not unreasonable questions; they are essential if Parliament is to judge whether devolution is improving outcomes or delivering value for money and reducing inequalities between different places across our country.

This amendment would not prescribe policy but simply ask the Government to measure, report and be transparent about the consequences of their choice. I have listened to the Minister’s response, but he will not be surprised that I am disappointed. I do not think that using the existing reporting system will necessarily cover things and give us answers on whether these very major changes to local government are a success or whether they need some change. We need to look at this further before Report.

I have not done as much work as I should on parish and town councils, because I know that they will come up in future groupings. However, the one thing that came out of this debate for me, and from one or two of the Government’s responses on different groupings, is that town and parish councils are enshrined in legislation; they have rules. I cannot see anything further in this Bill that would put another type of very local responsible organisation in primary legislation. I would be very worried if there were. These neighbourhood arrangements are not going to be legislative arrangements; they will just be local groupings.

I have seen a lot of how this works in Wiltshire. When we went unitary, we were totally parished; we set up the city of Salisbury as a parish council. However, we also had area boards, which were within our council’s gift. They were where local councillors, police and fire representatives and local council officers got together to discuss local issues. Those boards had small budgets as well. They are very different things, however. I would also suggest that parish councils would work in cities and towns—they do work in some. They work very well in neighbourhoods and, in new developments where there are a large number of houses, they can work, but they want the support of government to work, and some small changes in government policy to make them work. I am not sure that having a parallel neighbourhood arrangement is the correct way to go.

The detail of that is for another debate before this Bill finishes Committee. For the moment, I beg leave to withdraw my amendment and, as I said, we will consider this further and possibly bring something back on Report.

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[Baroness Scott of Bybrook (Con)]

My Lords, I thank the noble Baroness, Lady Janke, for her Amendment 95A, which is modest but important. It does not seek to block devolution or slow it down unnecessarily. Instead, it asks for two simple safeguards when new strategic authorities are created or altered: transparency and consent. The amendment seeks to strengthen rather than weaken the devolution framework in the Bill and attempt to ensure that strategic authorities are rooted in local identity, coherent service delivery and democratic agreement. For those reasons, I hope the Government will give it serious consideration.

[Lord Wilson of Sedgefield (Lab)]

My Lords, I thank the noble Baroness, Lady Janke, for her amendment and noble Lords for their contributions to the debate. This amendment concerns the powers in this Bill for the Secretary of State to direct the establishment or expansion of a combined authority and to designate single foundational strategic authorities and established mayoral strategic authorities.

The amendment would require the publication of a statement assessing the impact on community identity and public service boundaries when these powers are used, as well as requiring consent from the affected area. I am pleased to say that the Bill already contains safeguards to address these issues. For example, before conferring functions on a single foundational strategic authority or unitary authority, the Secretary of State must consider the effective exercise of functions for a local area. In addition, local consent is required prior to designation as a single foundational strategic authority.

The Secretary of State may designate an established mayoral strategic authority only if the authority submits a written proposal asking to be so designated. The authority’s consent is an inherent part of the process, as no authority can be designated unless it actively applies. Also, the criteria outlined in the English devolution White Paper are clear about the eligibility requirements for a mayoral strategic authority seeking to be designated as established. These criteria are designed to ensure the effective exercise of functions across a local area.

Finally, on the establishment or expansion of combined authorities, the Government have been clear that it is our strong preference and practice to work in partnership with local areas to develop proposals for devolution that carry the broad support of local leaders and the local area. The power to direct the establishment or expansion of a combined authority would only ever be used as a last resort where a local area has not brought forward its own viable proposal. This will ensure that all areas across England are able to benefit from devolution and that no area is left behind.

On the establishment or expansion of combined authorities more generally, the Bill already includes the necessary safeguards, including a statutory test to ensure effective and convenient local government across the areas of competence. Furthermore, where the geographical expansion of a combined authority area could affect the exercise of its functions, the Secretary of State must consider this before making an order to expand the authority.

I hope that, with this response, the noble Baroness is able to withdraw her amendment.

[Baroness Janke (LD)]

I thank the Minister for the response, but I feel that the safeguards he has outlined do not address the potential risks in this Bill. The message that seems to be going out at the moment is that the Government are determined to deliver at any cost. Local communities are very mistrustful that they will listen to them. We have heard a lot about a bonfire of the rules and red tape that many local people see as safeguards and protections for themselves. I am afraid that the safeguards in the Bill are not adequate to reassure people: parish councils are barely mentioned and there does not seem to be much in the Bill about joint vision, mutual self-interest and shared benefits.

This modest amendment would be much more reassuring, particularly for areas that will be amalgamated into large tracts and counties which did not necessarily work well without district councils. For many areas, the loss of district councils is enormous. I do not believe that the safeguards outlined in the Bill address those concerns. I beg leave to withdraw the amendment, but may come back to it in future.

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[Lord Wilson of Sedgefield (Lab)]

My Lords, I thank noble Lords who took part in this debate. My noble friend Lord Bassam’s Amendment 97 would amend Section 8 of the Localism Act 2011 so that all parish councils could make full use of the general power of competence. That is a broad enabling power which empowers an authority to do anything that individuals generally may do unless specifically prohibited. Authorities have used the general power of competence in a wide variety of ways. For example, Hertfordshire County Council has used the power to provide the basis for its participation in the local authority mortgage scheme, which supports the local housing market by supporting first-time buyers.

Given the breadth of the general power of competence, it is important that any authority exercising it has appropriate arrangements in place for effective oversight and scrutiny. In particular, where a parish council is to be conferred the general power of competence, it must have the means and capacity to oversee its use responsibly. This is one of the reasons why Section 8 of the Localism Act 2011 empowers the Secretary of State to set conditions that must be present before the general power of competence can be conferred on a parish council. I pay tribute to the work of parish and town councils. Coming from a shire county in the north-east of England, I understand the importance of what they do. But, as I said earlier—my noble friend Lord Bassam might not have been here at the time—21% of seats are left vacant on parish and town councils. We have to be careful, if the capacity is not there, about giving the general power of competence over to a parish council. The capacity has to be there for them to use it.

Amendment 241C from the noble Lord, Lord Shipley, would place a duty on national park authorities to consult neighbouring communities when taking decisions to use their general power of competence. This Bill is providing national park authorities with the general power of competence to ensure that our national parks are able to operate more effectively and deliver our national priorities in our most iconic landscapes. Providing national park authorities with the general power of competence brings national parks in line with local authorities. It is not a requirement for local authorities to consult on their use of powers with neighbouring communities, although they may choose to consult on certain decisions if they want to. Imposing such a duty on national park authorities could introduce unnecessary bureaucracy for national parks. The general power of competence is well established and widely understood across the sector, and reduces the need for the Government to issue legal clarifications on new legislative instruments. The national park authorities will remain subject to these same constraints and we see no reason for any divergence from the arrangements already in place for local authorities. I hope that, after these explanations and comments, my noble friend Lord Bassam and the noble Lord, Lord Shipley, will feel able not to press their amendments.

[Lord Bassam of Brighton (Lab)]

My Lords, I will withdraw my amendment. I think the noble Lord’s primary argument was about a potential lack of capacity at local level and the need to have proper oversight and regulation. I entirely accept that. That is a reasonable point to make, but I do not see why we cannot pursue it further, because those measures can fairly easily be put in place, not least through the more senior level of local government at a unitary or strategic authority level.

I was always very impressed by what town councils deliver. Some deliver quite big services; others get involved in the business of markets and so on. They are not just about park benches and streetlights. They are much more than that. Noble Lords from all parties have made the case that they are at a level of government which is very close to the people. That has great value and they deliver a lot. We should now look, with this larger tier of local governance across the country, including unitaries and so on, to further empower them. This would be a very sensible and practical way of doing it.

In response to the noble Lord’s point about there being vacancies on parish councils, a lot of people who would like to get involved simply think: “Well, what’s the point? It’s just a talking shop”. If we encourage and enable them to develop further, people will come forward. I have always been pretty impressed by the calibre of people who operate on parish and town councils.

I am happy to withdraw my amendment, but we should have some more debate on this and try to dream up a framework that would enable them to thrive and develop. If we do not do so now, we will need to come back to this tier of governance in the future, to make local government genuinely local.

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Clause 21 agreed.

[Lord Wilson of Sedgefield (Lab)]

I just want to say at this point that we have one more group to go. I hope that we can finish by 5 pm; otherwise, we will have to split the group and start it half way through next week, which I do not think we want to do.

Clause 22: Duty of mayors to collaborate

Amendment 100

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