Levelling-up and Regeneration Bill

Dehenna Davison Excerpts

Report stage
Wednesday 23rd November 2022 Commons Chamber

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Dehenna Davison)]

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

[Madam Deputy Speaker (Dame Rosie Winterton)]

With this it will be convenient to discuss the following:

Government new clause 62—Functions in respect of key route network roads.

Government new clause 65—Participation of police and crime commissioners at certain local authority committees.

New clause 1—Power to provide for an elected mayor—

(1) Part 1A of the Local Government Act 2000 is amended as follows.

(2) After section 9K insert—

“9KA Power to provide for an elected mayor

(1) The Secretary of State may by regulations provide for there to be a mayor of a local authority.

(2) Before making regulations under subsection (1), the Secretary of State must publish a report which contains—

(a) an assessment of why it is in the interests of economy, efficiency, effectiveness or public safety for the regulations to be made, and

(b) a description of any public consultation the Secretary of State has carried out on the proposal for the regulations to be made.””

This new clause would allow the Secretary of State to provide for there to be a mayor of any local authority if they deem appropriate.

New clause 2—Resignation requirements for MPs serving as elected mayors—

“(1) The Police Reform and Social Responsibility Act 2011 is amended in accordance with subsection.

(2) In section 67 (Disqualification of person holding office as police and crime commissioner), leave out paragraph (a).

(3) Schedule 1 to the House of Commons Disqualification Act 1975 is amended as follows.

(4) In Part 3 (Other Disqualifying Offices), at the appropriate place insert—

‘Mayor who is to exercise the functions of police and crime commissioner’”.

This new clause would allow an MP who is elected as a mayor who is to exercise the functions of a police and crime commissioner to remain as an MP until the next parliamentary election.

New clause 4—Housing Act 1985—

“In section 618 of the Housing Act 1985 (The Common Council of the City of London), omit subsections (3) and (4).”

This new clause would correct a disparity which applies uniquely to Members of the City of London’s Common Council in relation to their ability to discuss or vote on local authority matters relating to land, for example housing, by removing a prohibition on participating on such matters.

New clause 7—Council tax: properties of multiple occupancy—

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

(2) In section 3 (meaning of “dwelling”), after subsection (4A), insert—

‘(4B) Subject to subsection (6) below, the following property is not a dwelling—

(a) a room or bedroom subject to a tenancy agreement that does not contain bathroom and cooking facilities within its physical curtilage;

(b) a room or bedroom subject to a tenancy agreement which includes bathroom facilities but does not include cooking facilities within its physical curtilage;

(c) any rooms or bedrooms within a licensed House of Multiple Occupancy; and

(d) any room which is not in law a self-contained unit regardless of any clause, term or condition of any contract, license of agreement conferring a right to occupy that room.’”

This new clause is intended to prevent the imposition of Council Tax individually on tenants of a room in a house with shared facilities, or in a licensed House of Multiple Occupancy.

New clause 41—Duty to provide sufficient resources to Combined Authorities and Combined County Authorities—

“(1) This section applies where the Government has committed funding to a Combined Authority or a Combined County Authority in order to deliver a specific project.

(2) The Secretary of State must provide commensurate financial resources to a Combined Authority or a Combined County Authority to enable the delivery of the project mentioned in subsection (1) as agreed in full.

(3) The Secretary of States must, by regulations, amend the value of this funding to reflect inflation.”

This new clause would commit the Government to fully funding combined authority and combined county authority projects they have committed to in the case that costs rise due to inflation.

New clause 45—Local authorities to be allowed to choose their own voting system—

“(1) The Secretary of State must by regulations provide that local authorities may choose the voting system used for local elections in their areas.

(2) When determining whether to seek to introduce a new voting system a local authority must have regard to the benefits of reinvigorating local democracy in its area.

(3) Regulations under this section must provide that local authorities may choose to elect councillors—

(a) by thirds, or

(b) on an all-out basis.

(4) Regulations under this section must provide that local authorities may choose to elect councillors using—

(a) first-past-the-post;

(b) alternative vote;

(c) supplementary vote;

(d) single transferable vote;

(e) the additional member system;

(f) any other system that may be prescribed in the regulations.

(5) Regulations under this section may make provision about—

(a) how a local authority may go about seeking to change its voting system,

(b) the decision-making process for such a change,

(c) consultation, and

(d) requirements relating to approval by the local electorate.”

This new clause would enable local authorities to choose what voting system they use for local elections.

New clause 46—Review into business rates system—

“(1) The Chancellor of the Exchequer must undertake a review of the business rates system.

(2) The review must consider the extent to which the business rates system—

(a) is achieving its objectives,

(b) is conducive to the achievement of the levelling-up and regeneration objectives of this Act.

(3) The review must consider whether alternatives of local business taxation would be more likely to achieve the objectives in subsections (2)(a) and (b).

(4) The review must in particular consider the effects of business rates and alternative local business taxation systems on—

(a) high streets, and

(b) rural areas.

(5) The review must consider the merits of devolving more control over local business taxation to local authorities.

(6) The Chancellor of the Exchequer must lay a report of the review before parliament before the end of the period of one year beginning with the day on which this Act is passed.”

This new clause would require the Secretary of State to review the business rates system.

New clause 70—Duties in connection with the European Framework Convention for the Protection of National Minorities—

“(1) The Cities and Local Government Devolution Act 2016 is amended in accordance with subsection (2).

(2) In section 16 (Power to transfer etc public authority functions to certain local authorities), after subsection (1) insert—

‘(1A) In deciding how and whether to exercise his power under section 16(1), the Secretary of State must have regard to the existence, within a local authority area, of a national minority as defined by the European Framework Convention for the Protection of National Minorities.’”

New clause 71—Extending level 3 devolution deals—

“(1) The Secretary of State must, by regulations, make provision for local authorities to be granted a Level 3 devolution deal, without the requirement for a directly-elected leader across the entire authority.

(2) When making regulations under subsection (1), the Secretary of State must have regard to the benefits of such a devolution arrangement given any existence, within a local authority area, of a national minority, as defined by the European Framework Convention for the Protection of National Minorities.”

New clause 34—Review of compulsory purchase powers—

“(1) The Secretary of State must undertake a review of whether the powers of compulsory purchase available to—

(a) local authorities, and

(b) the Secretary of State

are adequate to meet the objectives of this Act.

(2) In undertaking the review the Secretary of State must, in particular, consider—

(a) whether existing statutory time limits for compulsory purchase action are appropriate,

(b) other means of accelerating compulsory purchase action with particular reference to properties to which subsection (3) applies, and

(c) the adequacy of compulsory purchase powers in relation to properties to which subsection (3) applies.

(3) This subsection applies to—

(a) properties that have been unoccupied for a prolonged period (with reference to the vacancy condition in section 152), and

(b) buildings of local public importance such as hotels and high street properties.”

This new clause would require the Government to review powers of compulsory purchase and whether they are adequate to meet its levelling-up and regeneration objectives.

New clause 74—Commencement of Section 81 of the Police Crime Sentencing and Courts Act—

“The Secretary of State must, by regulations, bring into force the provisions in Section 81 of the Police, Crime, Sentencing and Courts Act 2022 no later than 31st December 2022”

New clause 75—Review of the effectiveness of the Housing First Scheme—

(1) The Secretary of State must establish an annual review of His Majesty’s Government’s progress on reducing homelessness.

(2) The review must include an assessment of—

(a) whether the Housing First scheme is achieving its objectives,

(b) the support provided to local authorities to meet their homelessness duties,

(c) the merits of ensuring that local authorities have at least one provider of the Housing First model, and

(d) the Government’s progress towards ending rough sleeping.

(3) The Secretary of State must prepare reports on these reviews in accordance with this section.

(4) The first report under subsection (3) must be laid before each House of Parliament before the end of a period of one year beginning on the day when this Act was passed.

(5) After a report has been laid before Parliament under subsection (4), the Secretary of State must publish it as soon as is reasonably practicable.”

New clause 76—Publication of the Consultation on the Vagrancy Act—

“(1) The Secretary of State must, before the end of 2022, publish a report setting out the results of the Review of the Vagrancy Act: consultation on effective replacement.

(2) he report under subsection (1) must, in particular, set out—

(a) how to replace the offences in the Vagrancy Act which prohibit begging and rough sleeping in an appropriate way that prioritises getting individuals into support, and

(b) the Government’s legislative plan to support these changes.

(3) The Secretary of State must lay a copy of the report in subsection (1) before both Houses of Parliament.”

New clause 82—Standards Board for England—

“(1) There is to be a body corporate known as the Standards Board for England (“the Standards Board”).

(2) The Standards Board is to consist of not less than three members appointed by the Secretary of State.

(3) In exercising its functions the Standards Board must have regard to the need to promote and maintain high standards of conduct by members and co-opted members of local authorities in England.

(4) The Secretary of State must by regulations make further provision about the Standards Board.

(5) Regulations under this section must provide for—

(a) a code of conduct of behaviour for members and co-opted members of local authorities in England,

(b) the making of complaints to the Standards Board a member or co-opted member has failed to comply with that code of conduct,

(c) the independent handling of such complaints in the first instance by the Standards Board,

(d) the functions of ethical standards officers,

(e) investigations and reports by such officers,

(f) the role of monitoring officers of local authorities in such complaints,

(g) the referral of cases to the adjudication panel for England for determination,

(h) about independent determination by the adjudication panel its issuing of sanctions,

(i) appeal by the complainant to the Local Government and Social Care Ombudsman,

(j) appeal by the member or co-opted member subject to the complaint to the Local Government and Social Care Ombudsman, and

(k) the governance of the Standards Board.

(6) In making regulations under this section the Secretary of State must have regard to the content of Chapter II (investigations etc: England) of Part III (conduct of local government members and employees) of the Local Government Act 2000, prior to the repeal of that Chapter.

(7) The Standards Board—

(a) must appoint employees known as ethical standards officers,

(b) may issue guidance to local authorities in England on matters relating to the conduct of members and co-opted members of such authorities,

(c) may issue guidance to local authorities in England in relation to the qualifications or experience which monitoring officers should possess, and

(d) may arrange for any such guidance to be made public.”

This new clause seeks to reinstate the Standards Board for England, which was abolished by the Localism Act 2011, but with the removal of referral to standards committees and the addition of appeal to the Local Government Ombudsman.

New clause 84—Levelling-up mission: adult literacy—

“(1) Each statement of levelling-up missions must include an objective relating to reducing geographical disparities in adult literacy.

(2) In pursuance of the objective in subsection (1), the Secretary of State must, during each mission period, review adult literacy levels in the UK, to inform measures with the purpose of reducing geographical disparities in adult literacy and eradicating illiteracy in adults.

(3) The findings of any review under this section must be published in a report, which must be laid before Parliament.

(4) When a report under this section is laid before Parliament, the government must also publish a strategy setting out steps it intends to take to improve levels of adult literacy and eradicate illiteracy in the UK.”

This new clause would require the government to include the reducing of geographical disparities in adult literacy as one of its levelling up missions, and it would require them, during each mission period, to review levels of adult literacy in the UK, publish the findings of that review and set out a strategy to improve levels of adult literacy and eradicate illiteracy in the UK.

Amendment 8, in clause 1, page 1, line 14, at end insert—

“(c) the independent body that His Majesty’s Government proposes to use to evaluate progress in delivering those levelling-up missions (‘the independent evaluating body’).”

This amendment would place a responsibility on the Government to commission an independent body to scrutinise their progress against levelling-up missions.

Amendment 9, page 1, line 14, at end insert—

“(c) the resources made available by His Majesty’s Government to nations, regions, sub-regions and local areas in order to level-up.”

This amendment would place a responsibility on the Government to publish the resources made available to communities in order to level-up.

Amendment 71, page 1, line 14, at end insert—

“(c) details of how His Majesty’s Government will ensure that the levelling-up missions are aligned with the United Nations Sustainable Development Goal to end hunger and ensure access by all people, in particular the poor and people in vulnerable situations, including infants, to safe, nutritious and sufficient food all year round.”

This amendment would require that levelling-up missions align with the United Nations Sustainable Development Goal to end hunger and ensure access by all people to safe and nutritious food.

Amendment 69, page 1, line 14, at end insert—

“(2A) The first statement of levelling-up missions must include a requirement that by 2030 the number of people successfully completing high-quality skills training will have significantly increased in every area of the UK.

(2B) For the purposes of subsection (2A), ‘high-quality skills training’ must include training for the purpose of proactively supporting workers in high-carbon industries wishing to transition to careers in the green energy sector, with cross-sector recognition of skills and regardless of their current contract status.”

Amendment 70, page 1, line 14, at end insert—

“(2A) The first statement of levelling-up missions must include a mission to expand public access to waterways, woodlands, Green Belt and grasslands and reduce geographical inequalities in access to open access land.

(2B) In this section, “waterways” includes any river, stream, lake, pond, canal or other waterway physically capable of navigation, and any such river banks or land adjacent as necessary for the act of navigation and for other purposes incidental to navigation or to bathe.

(2C) A levelling-up mission under this section must be accompanied by a statement of the Government’s legislative plan to support the mission, including proposals to amend the Countryside and Rights of Way Act 2000.”

Amendment 72, page 2, line 3, at end insert—

“(3A) The mission progress methodology and metrics must include the following indicators—

(a) prevalence of undernourishment in the population, and

(b) prevalence of moderate or severe food insecurity in the population, based on the Food Insecurity Experience Scale (FIES).”

This amendment would require that the mission progress methodology and metrics include the prevalence of under-nourishment and the prevalence of food insecurity in the population.

Amendment 10, page 2, line 6, at end insert—

“(4A) A statement of levelling-up missions must be accompanied by an action plan which sets out details of how His Majesty’s Government intends to deliver these missions by the target date.”

This amendment would require the Government to publish an action plan alongside a statement of levelling-up missions which sets out how they will deliver the missions.

Amendment 11, in clause 2, page 3, line 7, leave out subsections (4) and (5).

This amendment would remove the provision allowing the Secretary of State to discontinue a levelling-up mission.

Amendment 12, in clause 3, page 3, line 28, leave out “120” and insert “30”.

This amendment would reduce the period of time by which a report under section 2 must be laid before each House of Parliament to 30 days.

Amendment 13, page 3, line 32, leave out “120” and insert “30”.

See explanatory statement to Amendment 12

Amendment 14, page 4, line 2, leave out clause 4.

This amendment would remove the provision allowing a Minister to make changes to mission progress methodology and metrics or target dates.

Amendment 64, in clause 4, page 4, line 18, leave out from “which” to end of line 19 and insert—

“both conditions in subsection (4) have been met.

(4) The conditions are that—

(a) the House of Commons,

(b) the House of Lords

have passed a Motion in the form in subsection (5).

(5) The form of the Motion is—

That this House approves the revisions to the levelling-up mission progress methodology and metrics or target date made under section 4 of the Levelling-up and Regeneration Act 2022 and laid before Parliament on [date].”

Amendment 15, in clause 5, page 5, line 18, at end insert—

“(ca) state whether the independent evaluating body considers that pursuing the levelling-up missions in that statement is effectively contributing to the reduction of geographical disparities in the United Kingdom,”

This amendment would require the report on a review of statements of levelling-up missions to include the assessment of the independent evaluating body.

Amendment 16, page 6, line 5, leave out from “which” to end of subsection (11) and insert—

“both conditions in subsection (12) have been met.

(12) The conditions are that—

(a) the House of Commons, and

(b) the House of Lords

has passed a Motion of the form in subsection (13).

(13) The form of the Motion is—

That this House approves the revisions to the statement of levelling-up missions made under section 5 of the Levelling-up and Regeneration Act 2022 and laid before Parliament on [date].”

This amendment would require both Houses of Parliament to approve revisions to the statement of levelling-up missions to be approved by both Houses of Parliament before they have effect.

Amendment 17, page 12, line 24, leave out clause 16.

Government amendments 29, 45 and 46.

Amendment 18, in clause 52, page 45, line 16, leave out “may” and insert—

“must, within 6 months of the day on which this Act is passed,”.

This amendment would require the Secretary of State to produce guidance on the establishment and operation of CCAs within 6 months of this Act receiving Royal Assent.

Amendment 19, page 50, line 24, leave out clause 58.

This amendment would remove Clause 58, which allows an elected mayor to assume policing responsibilities without the consent of the combined authority.

Government amendments 47, 40 to 44, 1, 60, 51, 61 and 62.

[Dehenna Davison]

It is a pleasure to be here for the next stage of this vital Bill. My right hon. Friend the Secretary of State recently set out his guiding principles for the Bill: beauty, infrastructure, democracy, environment and neighbourhoods—or, for acronym fans, BIDEN. We want to ensure that people across the country have the opportunity to live and work in beautiful places, supported by the right infrastructure, with strong locally accountable leadership and with better access to an improved environment, all rooted in thriving neighbourhoods of which they can be proud. Regrettably, though, there are areas of the country that are long neglected and that will require a concerted effort from us all. We have to put an end to the shameful waste of potential that has held so many of our constituents and our country back for so long.

This is why the ambitions set out in the levelling up White Paper are so crucial. If we are going to achieve our ambitions, we have to be focused. That is why the first part of the Bill creates a self-renewing national focus on this endeavour, through the setting of and reporting on missions to level up. These missions, with their clear, measurable objectives, will drive the action needed to reduce geographic disparities. One such mission is our vision for devolution across England. This is why the Bill creates a new model for devolution: the combined county authority. It also improves existing models thought the combined authority and county deal models, making devolution easier to achieve, extend and deepen.

[Mr Clive Betts (Sheffield South East) (Lab)]

One of the disappointments with this Bill is that, although it extends the principle of combined authorities to county areas, it does not actually transfer any new powers to local government as a whole that are not currently available in some authorities. Could the Minister point out one place in the Bill where a new power that is currently not devolved to local government will be devolved after the Bill is passed?

[Dehenna Davison]

The Chair of the Select Committee is a passionate campaigner on these issues. He will know that the Government are incredibly keen on empowering local areas to take on their own devolution deals, and that is why we are in the process of negotiating a large number of deals, including trailblazer deals with Greater Manchester and with the West Midlands, which I know Members right across the House are incredibly passionate about. We are looking at new powers and new funding to ensure that those devolution deals deliver for local people.

We are making it easier to achieve, to extend and to deepen devolution. At the same time, the Bill is making it easier for local authorities to regenerate their areas by providing them with new and improved tools for that purpose, including a new locally led model for urban development corporations, changes to ensure that any former development corporation can have conferred on it the functions most useful to its purpose, and improvement to the compulsory system to remove barriers so that authorities can assemble land, including brownfield land.

[Mr Betts]

Often, when compulsory purchase powers are used by local authorities, the value of the site they are purchasing is enhanced because they are using those powers and the owner of the site gets a “hope value” addition to what they receive. Would the Minister consider ensuring that, where a CPO has been put in place, no extra value is generated for the owner because the CPO itself is operated or because it is part of a regeneration site as a whole?

[Dehenna Davison]

I am happy to discuss that with the hon. Member in further detail following the debate today. It is certainly something that we are exploring behind the scenes with a view to taking action at a later date.

We are also looking at introducing discretion for local authorities to increase council tax on second homes and long-term empty homes, together with innovative high street rental auctions to tackle the damage that the gradual erosion of high street occupancy can cause.

Hon. Members will recall that the Government have already made provision for the full repeal of the Vagrancy Act 1824. As the Secretary of State has said, the Vagrancy Act is outdated and has to go. This Bill was introduced initially with a placeholder clause, allowing for a replacement to the Act to be added. During the passage of the Bill, however, we have listened to the depth of feeling from Members across the House, and particularly from my hon. Friend the Member for Cities of London and Westminster (Nickie Aiken), who has campaigned passionately on this issue. After working with Members across the House and having reflected on the right approach to the replacement legislation, I have tabled amendments to remove the placeholder clause. I can commit to the House that the Government will not bring forward any amendments to the Bill on this subject. We will, though, be working with the Home Office to make sure that the police and others have the tools they need to protect communities and ensure that people feel safe.

[Nickie Aiken (Cities of London and Westminster) (Con)]

I absolutely welcome the Government’s action on this. Does the Minister agree that the best way to deal with the street population is through proper outreach and not through criminalising their behaviour?

[Dehenna Davison]

I completely agree with that sentiment. Any new legislation that may be introduced at a future date will not be looking to criminalise anyone for just being homeless. That is a firm commitment that I can make here today. My hon. Friend is absolutely right. Let us look at the Government’s rough sleeping strategy as an example, and at the other ways we can outreach to ensure that those who find themselves homeless, often through no fault of their own, find the support they need to get back on their feet.

On vagrancy, my colleagues and I look forward to continuing to work with Members across the House on our goal of ending rough sleeping and ensuring that people in need receive appropriate support to help them move away from life on the streets for good.

Strengthening our communities also means strengthening local leadership. We all know from our constituencies that Whitehall, however well intentioned, cannot always understand a community as well as the local people who live and work within it, so our ambition is for local areas to determine their own futures, allowing local leaders to take charge and enable their communities to thrive. We therefore want to offer the option of a devolution deal with a directly elected leader to every part of England that wants one by 2030, creating clear local leadership and greater accountability for any new powers conferred on them.

Members will recall that the Bill puts in place a framework to achieve this by creating a new model of combined authority—a combined county authority—which is more suitable for areas outside urban centres. This means that areas and communities everywhere, not just in major cities, can benefit from bespoke devolution deals that work for them. Providing these opportunities for all communities across England will increase innovation and enhance local accountability. This in turn will lead to more co-ordinated decision making with greater flexibility over funding, all of which will empower areas to attract more inward investment.

My right hon. Friend the Secretary of State and I have been grateful for the support that our reforms have attracted in our discussions with hon. Members and local areas, and Members will be aware that our devolution negotiations and conversations are continuing at pace. In the summer, we announced new devolution deals with York and North Yorkshire, and with parts of the east midlands: Derby, Derbyshire, Nottingham and Nottinghamshire. There are more deals to be signed soon. Implementation of the east midlands deal is dependent on provisions in this Bill gaining Royal Assent and coming into effect, but they will of course be subject to statutory processes, including parliamentary approval of secondary legislation on creating new institutions with the devolved powers. The invaluable feedback from our discussions so far has allowed us to table three amendments today to put some matters beyond doubt.

[John Stevenson (Carlisle) (Con)]

The Minister is talking a lot about those areas where there is devolution already or where there is the potential for devolution, but what about those areas where there seems to be an absence of any discussions?

[Dehenna Davison]

As I say, we have discussions under way at the moment and we are looking ahead to which new devolution deals we can start exploring. I am certainly happy to work with my hon. Friend to see if this is something we can deliver in his local area in Cumbria, too.

Our first amendment relates to clause 16, which allows the conferral of local authority functions, including those of county councils, unitary councils and district councils, on to a combined county authority, or CCA.

[Richard Graham (Gloucester) (Con)]

I am grateful to the Minister for giving way, because this is of seminal importance to all second-tier councils around the country. I therefore welcome Government amendment 29. Can she confirm, for the avoidance of any doubt, that this means, as the explanatory statement suggests, that there is no question of the functions of a district council in a two-tier area being handled by a combined county authority and that, although it says

“a CCA may make provision”,

a CCA cannot make provision where there is a second-tier council?

[Dehenna Davison]

I can confirm that, and my hon. Friend pre-empts the next bit of my speech, which will hopefully provide some reassurance.

Clause 16 is essential to enable CCAs to be conferred with, for example, the economic development and regeneration functions of a council so that it can deliver them over a wider area, thus driving growth. Although it was never the Government’s intention, we have heard concerns from colleagues on both sides of the House, as well as from local authorities and the District Councils Network, that the clause could be used for the purpose of upward devolution. So there can be absolutely no doubt, we are explicitly precluding the conferral of two-tier district council functions on to a combined county authority. This amendment reflects the Government’s commitment that devolution legislation will not be used to reallocate functions between tiers of local government.

Government amendment 29 will still allow for combined county authorities to exercise functions with district councils concurrently or jointly, facilitating joint working on important issues where there is a local wish to do so. I hope that addresses the concern embodied in amendment 17, tabled in the name of the hon. Member for Wigan (Lisa Nandy), who is not currently in the Chamber.

Our second amendment provides for the effective co-ordination of highways infrastructure, to enable key route networks to operate effectively. Improving key route networks across towns and cities is a Government priority, and we want to facilitate the improvement of transport links as much as possible. The co-ordination of transport across the area of a combined authority or combined county authority is a tool that local leaders across the country have told us is valuable. We therefore propose an amendment to meet the commitment in the levelling-up White Paper to provide a new power of direction for Mayors and combined county authorities, to increase Mayors’ control over key route networks. This will enable them to better co-ordinate the delivery of highways infrastructure, which is needed for effective key route networks across the whole of their authority area.

Our third amendment is a small amendment to improve the partnership between police and crime commissioners and local leaders by clarifying legislation to ensure that PCCs can participate in local government committee meetings. Stronger partnership working between local leaders is central to the Government’s priority of ensuring that local voices are heard on important issues and that decision making is informed by a variety of perspectives in order to deliver our ambitions.

These three amendments add to the strong foundations the Bill already provides for devolution, by going further to solve the specific issues that areas face. In that spirit, I can announce that we will shortly be consulting on how houses in multiple occupation are valued for council tax purposes. The consultation, to be launched by January, will look at situations where individual tenants can, in certain circumstances, be landed with their own council tax bill and will consider whether the valuation process needs to change. Our clear intention is for HMOs to be classed as single dwellings, other than in exceptional circumstances.

[Mrs Natalie Elphicke (Dover) (Con)]

It is important to look at the balance of council tax attributions for HMOs, but will the Minister confirm that any local authority that has such HMOs will have its council tax settlements adjusted, should a decision result in it making a net loss in such a situation?

[Dehenna Davison]

We will be consulting on this as a matter of urgency, and I am happy to take this away and to work with my hon. Friend to make sure we find a settled solution that works for local authorities.

If regulation is required, the measure will allow that regulation to be in place before the Bill receives Royal Assent. I thank my hon. Friend the Member for Gosport (Dame Caroline Dinenage) and my right hon. Friend the Member for Portsmouth North (Penny Mordaunt) for their campaign highlighting this issue, which I know affects other MPs. The Secretary of State and I look forward to meeting their local businessman, Mr Brewer, in the coming days.

Separately, I can confirm that, during the Bill’s passage in the other place, we intend to table amendments addressing circumstances in which authorities have to pay hope value when they compulsorily purchase land in an effort to regenerate their area.

Finally, we have also tabled amendments to make minor corrections and clarifications in support of high street rental auctions and compulsory purchase reforms. These amendments will ensure the policy objectives of these measures can be achieved in full.

[Richard Graham]

I am grateful to the Minister for giving way a second time. I thank her and the Department for Levelling Up, Housing and Communities team for listening so carefully to the concerns of Members on both sides of the House. What she says about new clause 7, tabled by my hon. Friend the Member for Gosport (Dame Caroline Dinenage), is incredibly reassuring for people who are renting in HMOs. The ability to fine tune legislation is so precious.

[Dehenna Davison]

I am grateful to my hon. Friend for his incredibly kind words.

I thank Members on both sides of the House for the constructive way in which they have engaged with this important Bill. I look forward to hearing their contributions to today’s debate, and I commend our amendments to the House.

[Alex Norris (Nottingham North) (Lab/Co-op)]

It is a pleasure to speak for the Opposition in these proceedings.

The Public Bill Committee had 27 sittings over four months. The Government enjoyed it so much that they sent seven Ministers and three Whips to share the joy of line-by-line scrutiny. Which was my favourite? How could I choose between those 27 glorious sittings? They were very good debates, as the Minister said.

When it comes to levelling up, we have been clear from the outset that we feel the Bill is a missed opportunity. It ought to have been a chance for the Government finally to set out what their levelling-up agenda really is and what it means for the country. It was a chance to turn the rhetoric and all the press releases into reality. Instead of translating three years of promises into genuinely transformative change, we do not feel the Bill takes as much further forward. After the White Paper and now this Bill, we are still searching for the big, bold change for which the country is crying out and that the Government promised. The Bill has squandered that opportunity, and it seems those premises will be broken.

Levelling up is supposedly the defining mission of this Government but, after all the talk and all the promises, all they could muster was bolting a few clauses on to the front of a planning Bill. It serves no one to pretend that that is not the reality. Where is the plan to tackle entrenched regional inequalities? Where is the plan to unleash the wasted potential of our nations and regions? And where is the plan to get power out of Whitehall and into our towns, villages and communities?

Part 1 of the Bill establishes the levelling-up missions and the rules for reporting progress made against them. The missions are an area of consensus. Who in this House does not want to see a reduction in the disparities in healthy life expectancy, regional investment and educational outcomes? The problem is that, although the Government set out their supposed policy programme to deliver on these missions in their White Paper, it is in reality a mishmash of activity, much of which is already happening. We seek to improve this with amendment 10, as the missions should be accompanied by a full action plan setting out the activity taking place and how it will contribute to delivering the missions. I would hope that the Government already have such action plans, if levelling up really is such a totemic priority, but I fear they do not, because levelling up is not a priority.

--- Later in debate ---

[Dehenna Davison]

I thank right hon. and hon. Members for their contributions, and I put on record again my thanks to all the Members who served in Committee during the somewhat lengthy consideration of the Bill. I will endeavour to respond to the points that have arisen today, but before I do, I re-emphasise the importance that the Government place on the three interconnected themes from our debate: devolution, regeneration and levelling up. Local power exercised accountably is the only way that we will extend opportunity throughout our country. Too often, Governments have fallen into the trap of thinking that controlling more will make local areas more effective, but the lessons of the past 70 years are clear: that approach does not work and we must trust local areas with the tools to build their futures.

Let me turn to some of the individual matters that Members raised. My right hon. Friend the Member for Camborne and Redruth (George Eustice) is not yet back in his place, but I was grateful for his incredibly passionate contribution and his rousing speech about the wonderful, unique qualities of Cornwall. I look forward to visiting Cornwall soon and to working with him and other Cornwall colleagues on progressing a deal that works for the people of Cornwall.

My right hon. Friend spoke to amendment 70, on which I point him and other concerned Members to clause 68, which would amend the statutory test so that the Secretary of State has to consider

“the economic, social and environmental well-being of some or all of the people who live or work”

in an area. That means that the impacts of devolution on an area’s community, including those identifying as belonging to a national minority, such as the Cornish, would be duly considered under social wellbeing when deciding whether the test is met. Hopefully, that provides some reassurance.

My right hon. Friend also spoke about new clause 71, on whether the framework for a tier 3 deal is accessible without a Mayor. We in the Government are committed to that framework. We believe that directly elected Mayors with a clear path of accountability and a convening power to make change happen is really important, but the key point is that there will be no imposition from Government to have a Mayor. It is for local areas to decide what tier of deal they want to access. If they do not want to access a tier 3 deal and impose a Mayor, clearly, that option is available to them. Also, if they wish to, the framework allows them to deepen devolution later at their own pace. The Government are not imposing these measures. It is for local areas to decide what will work best for them in the framework that we have set out.

My hon. Friend the Member for Leigh (James Grundy) is a great and passionate advocate for his constituents and his constituency. I heard loud and clear his point about Leigh station and I will raise that with colleagues at the Department for Transport. He raised the point about how a one-size-fits-all approach does not necessarily always work. That is why it is so important that we negotiate deals on a local basis, so that every deal we have is negotiated with local authorities and other local stakeholders to ensure that it will work for the local area.

My hon. Friend raised a good point about engagement with Members of Parliament. Although I am relatively new to my role, I certainly want to endeavour to do that better as we progress devolution, either in existing deals or when we look at new devolution deals in the future.

I am incredibly grateful to my hon. Friend the Member for Carlisle (John Stevenson) for his support on devolution and on the importance of strong, accountable local leadership. I am pleased to see his gung-ho passion for rolling out Mayors across the country, but as my hon. Friend the Member for Leigh says, not every area wants a Mayor. I do not believe that we should be imposing Mayors without local consent, but I agree with my hon. Friend the Member for Carlisle that we do not want any areas being left behind. I am happy to engage with him and with the Northern Research Group on the question of how best to further the devolution agenda in his region and across England.

My hon. Friend the Member for Mansfield (Ben Bradley) made the crucial point that timing is vital. We need the Bill to get Royal Assent in a timely fashion to ensure that some of the devolution deals we have agreed get over the line in time for the elections in 2024. I know that my hon. Friend recognises the incredible opportunities that a devolution deal can bring to his local residents. He spoke about the need for simpler funding; the Department is exploring the issue and will publish a funding simplification strategy in due course.

[Margaret Greenwood]

I am not sure whether the Minister was in the Chamber for the remarks that the hon. Member for Mansfield (Ben Bradley) made about new clause 84, which would require the Government to make

“reducing geographical disparities in adult literacy”

one of their missions, and to set out a plan

“to improve levels of adult literacy and eradicate illiteracy”.

The hon. Member seems to think that the Bill makes provision for that. It does not. Does the Minister agree that addressing adult literacy is a core issue if we are to get the very best out of everybody and give everybody the opportunities they need?

[Dehenna Davison]

The hon. Member must have read my mind, because hers is next on my list of points to address. I am grateful for her passionate contribution on adult literacy. We all agree in this House that education is vital to levelling up, but the Bill is designed to provide a framework for the formation of missions rather than to set out the missions themselves. She will have seen in the White Paper some of the missions that we have published, which refer to educational attainment. I also point her to the Government’s work in other areas, such as funding courses for adults who do not have a level 2 English or maths qualification so that they can get those skills.

The hon. Member for Hemsworth (Jon Trickett) raised several issues relating to social mobility. I was most struck by his point about inter-village transport; I face that issue in my constituency, so I can very much relate to it. Some of the devolution deals that we have negotiated and are looking to negotiate will mean more transport powers being conveyed to local areas and Mayors. That provides an opportunity for a rethink of how local transport is operated. As we spread more devolution deals around the country, that opportunity will be brought to more local areas. The hon. Member’s point has been heard loud and clear.

[Jon Trickett]

The Minister is making an interesting speech. I hope in due course she will come to the question that I raised about powers for parish and town councils.

[Dehenna Davison]

I had not planned to do so, because of the breadth of contributions that we have had today, but I am happy to write to the hon. Member on that point after the debate.

The hon. Member for South Shields (Mrs Lewell-Buck) spoke to amendments 71 and 72. She is incredibly passionate about this important matter, as she has demonstrated not only today but in Committee and in other contributions. I go back to the point that I made to the hon. Member for Wirral West (Margaret Greenwood): the Bill is designed to set out not the missions themselves, but the framework for them to exist. That is why we will not enshrine any particular missions in the Bill. [Interruption.] The hon. Member for South Shields and I had the same debate in Committee; I see her shaking her head, but I do not think that she is surprised by my response.

Let me very briefly address a point that the shadow Minister, the hon. Member for Nottingham North (Alex Norris), and the SNP spokesperson, the hon. Member for North Ayrshire and Arran (Patricia Gibson), made about the levelling-up missions. They spoke about removing the ability to amend the methodology and the matrices. I am concerned about that, not because it is some kind of cynical aim, as has been suggested, but because data will be incredibly important in assessing our success in addressing the levelling-up missions. As we get new data sources, new datasets and new ways of presenting the data, it is important that we have the flexibility to access and use the data to its maximum potential. That is why I do not agree with amendment 14.

[Patricia Gibson]

The Minister says that flexibility is important, so can she explain what the Government will do about the first successful bids, which are now falling short because of inflationary pressures on labour and materials?

[Dehenna Davison]

The hon. Member will be pleased to know that I have a note to return to that in a moment.

My right hon. Friend the Member for Chipping Barnet (Theresa Villiers) and my hon. Friend the Member for Isle of Wight (Bob Seely) raised some important points. We will come to many of their amendments on the second day of Report, when they will have an opportunity to speak on them in more detail. That will be coming soon. Both Members highlighted the passion around high streets, which, as we all know across the House, are vital to the heart and soul of any community. I am grateful to them for raising new clause 34 on compulsory purchase orders. The measures already in the Bill put it beyond doubt that local authorities have the power to use compulsory purchase for regeneration processes, but we are modernising the process to make it faster and more efficient.

As I announced in Committee, we are going even further by asking the Law Commission to undertake a review and consolidation of the law on compulsory purchase and compensation, to make it more accessible and easier to understand. As part of that work, the Law Commission will review existing CPO enabling powers to ensure that they are fit for purpose, and will make recommendations where appropriate. I do not believe that the new clause is necessary; however, I put on the record my gratitude to both Members for the incredibly constructive way that they have engaged on not just this part of the Bill but all of it, particularly regarding planning and housing matters. My hon. Friend the Member for Isle of Wight said that I promised a visit. I am very much looking forward to visiting the Isle of Wight in due course.

[Mr Betts]

On the CPO powers, the Law Commission will not look at the valuations. Who will do that review work? Also, could the Minister set out very simply how the new arrangements will be simpler and quicker for local authorities to organise?

[Dehenna Davison]

One reason that we have asked the Law Commission to undertake the review is to ensure that we deliver in the most appropriate way, but I am happy to follow up separately with the hon. Member on hope value, because it is something that we will come to in the future.

The hon. Member for Westmorland and Lonsdale (Tim Farron) and I had a great time in Committee during the few days that I was there in my role as Minister. It was always incredibly good natured, and I thank him for that. He spoke on new clause 46, as did the hon. Member for North Shropshire (Helen Morgan), which is on business rates reform. As both hon. Members are no doubt aware, the Government recently conducted a business rates review, and the report was published at the time of the 2021 autumn Budget. A package of reforms announced then was worth £7 billion over five years. In the autumn statement incredibly recently, the Government went even further and announced a broad range of business rates measures worth an estimated additional £13.6 billion over the next five years, including freezing the multiplier. The Chancellor of the Exchequer also announced the extension of the retail, hospitality and leisure relief scheme, and a transitional relief scheme for the 2023 valuation.

[Helen Morgan]

I appreciate the points that the Minister makes, but they are tinkering around the edges of the existing system. We are asking for root and branch review of how business rates are levied.

[Dehenna Davison]

While I understand the intention behind the new clause, we consider it unnecessary on the basis that a review has been concluded only recently, and we have put in place an incredibly robust support package.

[Tim Farron]

I am grateful to the Minister for what she is saying. To add to what my hon. Friend the Member for North Shropshire said, there may be much to commend that particular part of the autumn statement, but is the very package not an admission that the system is broken? Tinkering on the edges will not help. Surely it needs full reform and replacement if we are to support our town and village centres.

[Dehenna Davison]

I am grateful to the hon. Member, and indeed all colleagues who have engaged with us on business rates reform. I will not go over arguments that I have already made. We will not accept the new clause, but I hope that hon. Members recognise that we are very much committed to ensuring that business rates are not an impediment to businesses investing in and residing within our high streets.

The hon. Member for Westmorland and Lonsdale also spoke to new clause 45 on electoral system reform. It was no surprise to hear the Lib Dems talking about electoral reform, and I do not want to rehash debates from Committee. I know that he and his party are passionate about this subject, but he will not be surprised to learn that the Government will not accept the new clause.

Turning to my hon. Friend the Member for Cities of London and Westminster (Nickie Aiken), I want to put on record my sincere praise for her campaigning on the repeal of the Vagrancy Act. She is so passionate on this issue and I am grateful to her for her positive engagement. I look forward to working with her as this progresses. On her new clause 4, I have to admit that I would not want to make a commitment today, but I am keen to work with her to understand the issue of local voting rights in her constituency more fully. I would love to get a meeting in with her in due course to see whether this is something that we can review.

The hon. Member for Brighton, Pavilion (Caroline Lucas) made an impassioned case on an issue on which I know she is very passionate. It was great to find agreement with her, as we both believe in devolving power to a local level to tackle local challenges. In the White Paper we set out a skills mission which set a target to increase the number of people completing high-quality skills training in every area of the UK by 200,000, with 80,000 more people competing skills training in the lowest skilled areas of the UK. The White Paper also highlighted the importance of the Government’s net zero target in helping to achieve that mission. The Government’s net zero strategy also makes a commitment to ensuring that the skills system is incentivised and equipped to deliver the skills necessary for the transition to net zero, as well as a commitment to growing post-16 training programmes such as green skills boot camps, apprenticeships and T-Levels. We will not be accepting the hon. Member’s amendment today, but I hope she recognises that there is a commitment from the Government, through the White Paper and other strategies, to ensure that we hit those net zero targets.

I want to make two quick final points. First, I want to say how grateful I am to my hon. Friend the Member for Gosport (Dame Caroline Dinenage) for her positive engagement on the issue of council tax for houses of multiple occupancy. We have reached a good position and I look forward to working with her and her constituent Mr Brewer throughout the consultation and beyond to ensure that we get it right.

Finally, the hon. Member for Sheffield South East (Mr Betts) raised points on the standards board and compulsory purchase orders, but I want to latch on to something he said about his belief in devolution—something that he and we in the Government absolutely share. He talked about brownfield land, and he will know about the brownfield land release fund, which has been so crucial in helping to support and regenerate brownfield areas. I would be happy to engage with him and I look forward to working with him and the Committee in my wider ministerial role.

In closing, I hope that hon. Members can see from the amendments that the Government have tabled today that we have listened to the concerns that have been raised since the Bill was introduced and that we are determined that the Bill will make a tangible difference in communities up and down the country.

Question put and agreed to.

New clause 61 accordingly read a Second time, and added to the Bill.



New Clause 62

Functions in respect of key route network roads

(1) The Local Democracy, Economic Development and Construction Act 2009 is amended as follows.

(2) In section 104, in subsection (10), for “An” substitute “Except as provided for by section 107ZA(7), an”.

(3) In section 107D, in subsection (9), for “An” substitute “Except as provided for by section 107ZA(7), an”.

(4) After section 107 insert—

“Combined authorities: key route network roads

107ZA Designation of key route network roads

(1) A combined authority may designate a highway or proposed highway in its area as a key route network road, or remove its designation as a key route network road, with the consent of—

(a) each constituent council in whose area the highway or proposed highway is, and

(b) in the case of a mayoral combined authority, the mayor.

(2) The Secretary of State may designate a highway or proposed highway in the area of a combined authority as a key route network road, or remove its designation as a key route network road, if requested to do so by—

(a) the combined authority,

(b) the mayor (if any) of the combined authority, or

(c) a constituent council.

(3) A designation or removal under this section must be in writing and must state when it comes into effect.

(4) The Secretary of State must send a copy of a designation or removal under subsection (2) to the combined authority in question at least 7 days before the date on which it comes into effect.

(5) A combined authority must publish each designation or removal under this section of a key route network road within its area before the date on which it comes into effect.

(6) A combined authority that has key route network roads in its area must keep a list or map (or both) accessible to the public showing those roads.

(7) The requirements in section 104(10) and section 107D(9)(a) do not apply to provision under section 104(1)(d) and section 107D(1) contained in the same instrument so far as that provision—

(a) confers a power of direction on an existing mayoral combined authority regarding the exercise of an eligible power in respect of key route network roads in the area of that combined authority,

(b) provides for that power of direction to be exercisable only by the mayor of the combined authority, and

(c) is made with the consent of the mayor after the mayor has consulted the constituent councils.

(8) When a mayor consents under subsection (7)(c), the mayor must give the Secretary of State—

(a) a statement by the mayor that all of the constituent councils agree to the making of the order, or

(b) if the mayor is unable to make that statement, the reasons why the mayor considers the order should be made even though not all of the constituent councils agree to it being made.

(9) In this section—

“constituent council” has the meaning given in section 104(11);

“eligible power” has the meaning given by section 88(2) of the Local Transport Act 2008;

“key route network road” means a highway or proposed highway designated for the time being under this section as a key route network road;

“proposed highway” means land on which, in accordance with plans made by a highway authority, that authority are for the time being constructing or intending to construct a highway shown in the plans.””—(Dehenna Davison.)

This new clause provides for designation of “key route network roads” in combined authorities and makes provision about consent requirements for orders that both confer a power of direction concerning such roads and make the power exercisable only by the mayor. It will be inserted after clause 58.

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

New Clause 65

Participation of police and crime commissioners at certain local authority committees

In section 102(9) of the Local Government Act 1972 (appointment of committees), for “to which the commissioner is appointed in accordance with this section”, substitute “described in subsection (6)”.”—(Dehenna Davison.)

This new clause makes clear that the restriction in section 102(9) of the Local Government Act 1972 applies only to participation at meetings of the committees described in section 102(6) of that Act. The new clause will be inserted after clause 68.

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

New Clause 41

Duty to provide sufficient resources to Combined Authorities and Combined County Authorities

“(1) This section applies where the Government has committed funding to a Combined Authority or a Combined County Authority in order to deliver a specific project.

(2) The Secretary of State must provide commensurate financial resources to a Combined Authority or a Combined County Authority to enable the delivery of the project mentioned in subsection (1) as agreed in full.

(3) The Secretary of States must, by regulations, amend the value of this funding to reflect inflation.”—(Alex Norris.)

This new clause would commit the Government to fully funding combined authority and combined county authority projects they have committed to in the case that costs rise due to inflation.

Brought up, and read the First time.

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