English Devolution and Community Empowerment Bill

Lord Jamieson Excerpts

Tuesday 24th March 2026 Lords Chamber

Moved by

[Lord Jamieson]

77: Clause 11, page 14, line 33, leave out subsection (1)
Member’s explanatory statement
This amendment seeks to remove amendments to the precept arrangements set out in section 40 of the Local Government Finance Act 1992.

[Lord Jamieson (Con)]

My Lords, I will speak to the amendments in my name and that of my noble friend Lady Scott of Bybrook regarding the changes proposed in this Bill to the mayoral precept arrangements. As we raised in Committee, it is important to ensure value for money and that a mayoral precept is used not to compensate for cuts in government funding but to support delivery for an area. Additional responsibilities should not be placed on local authorities without adequate funding.

On Amendment 77, as was said in Committee, these precept arrangements were only recently and carefully set out in the Levelling-up and Regeneration Act 2023 as a result of many long hours of debate in this House. The Minister has explained that these changes will allow mayors to precept for all an authority’s functions. However, stability is important to long-term confidence in local government finance, so we oppose revisiting this framework before the recent changes have had a chance to bed in.

Amendment 78 seeks to bring the precept arrangements in line with the amounts permitted for county councils and unitary authorities. While we accept that a mayoral authority is different from other authorities, this in itself does not justify an exemption from well-understood precept arrangements. In Committee, the Minister said the limit would make the value of a precept insignificant. Does that mean that the Government envisage yet more tax increases?

This brings me to Amendment 79, requiring mayors to explain to the public their reasons for any increases to the precept. This would apply whenever the mayor of a strategic authority sets a precept higher than the one set for the previous financial year. When people are asked to pay more, they deserve to know why, particularly given the current cost of living. To ensure full transparency and that this information is accessible, our amendment requires that a statement be published on the authority’s website, detailing the amount of the increase and explaining the purposes for which the additional revenue is to be used. This cannot be done in hindsight. The statement must be published before or at the same time as the precept is set. Again, engagement with the local community should not be treated as an afterthought. Unless we hear convincing arguments against this amendment, I am minded to test the opinion of the House on Amendment 79.

There is a broader concern that this Bill would enable, intentionally or not, excessive tax increases on local people at a time when they can least afford them. I beg to move.

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

My Lords, I thank the noble Lord, Lord Jamieson, for the amendments on precepts. The precept reforms which Amendment 77 seeks to prevent will enable mayors to levy a precept across the full range of an authority’s functions, giving them greater freedom in how they resource and deliver their priorities. I remind noble Lords that mayors have had the statutory ability to issue a precept since 2017, when it was introduced by the then Government. Importantly, it remains entirely for each mayor to decide whether to make use of it.

Under the current framework, any precept that is raised can be spent only on designated mayoral functions, rather than on the full suite of an authority’s responsibilities. This restriction is both arbitrary and unhelpful in practice. It could, for instance, allow investment in transport but not in skills related initiatives. Our intention is to equip mayors with the means to address barriers to growth and improve outcomes for their communities. To do this effectively, they must be able to allocate resources across all functions of the authority, not just a narrow subset.

Amendment 78 would automatically apply council tax referendum principles to strategic authorities. This would unnecessarily restrict mayors’ ability to determine how best to deliver for their residents and local economies. The Secretary of State already has the power to set referendum principles for strategic authorities, if needed. In practice, mayoral precepts are relatively small. If their increases were capped in the same way as council tax, the sums involved would be minimal in most areas, limiting their usefulness for supporting local priorities.

The Government have been clear that any rises in the mayoral precept should remain fair and proportionate. However, imposing the same limits as on councils would reduce local flexibility. This approach cuts across the spirit of the Bill and of devolution more broadly. Our aim is to empower mayors to invest in their communities, strengthen public services and support economic growth. The Government already consult annually on the local government finance settlement, which is the proper mechanism for considering these issues for authorities and taxpayers.

Turning to Amendment 79, as I have noted, the ability to issue a mayoral precept has existed in law since 2017, when it was introduced by the then Government. Whether to introduce a precept is a local decision and would need to be approved through the budget voting process within each combined authority or combined county authority. This includes setting out the precept amount and what it is intended to fund.

It is also worth pointing to the council tax billing requirements. Under the Council Tax (Demand Notices) (England) Regulations 2011, the information supplied with bills must include details of each local authority’s gross expenditure and its council tax requirement. It must also include an explanation of the reasons for the difference between the amounts. Where a mayoral combined or combined county authority issues a precept, it is covered by these provisions. This ensures residents can see both the amount of the mayoral precept and what it is funding. This information is also published on websites and if the taxpayer requires it, they can have it in a hard copy. As such, the system already builds in a statutory requirement for transparency and justification.

For the reasons I have set out, the Government cannot support the amendments in this group, and I ask noble Lords not to press them.

[Lord Jamieson (Con)]

I thank the Minister for his response. However, we believe that there needs to be greater transparency in the approach to local taxation, to encourage not just accountability for financial decisions but also public trust. Therefore, if the Government do not wish to press ahead with their changes to their precept arrangements, I will focus on Amendment 79. This amendment is not asking for much. It reflects the simple expectation that any increases to taxation by the mayor are explained transparently and are accessible to the members of the public they serve. This requirement will support, not obstruct, good decision-making and management of local government finance. Therefore, on this amendment I will test the opinion of the House. Meanwhile, I beg leave to withdraw Amendment 77.

Amendment 77 withdrawn.

--- Later in debate ---

Moved by

[Lord Jamieson]

79: After Clause 11, insert the following new Clause—
“Duty to publish statement on increase of mayoral precept(1) Where the mayor of a strategic authority sets a precept which is higher than the precept set for the previous financial year, the mayor must publish a statement explaining the reasons for the increase.(2) A statement under subsection (1) must—(a) be published on the authority’s website,(b) set out the amount of the increase, and(c) explain the purposes for which the additional revenue is to be used.(3) The statement must be published before, or at the same time as, the precept is set.”Member’s explanatory statement
This amendment requires mayors to explain to the public their reasons for any increases to the precept.

[Lord Jamieson (Con)]

I beg leave to test the opinion of the House.

--- Later in debate ---

Moved by

[Lord Jamieson]

80: After Clause 12, insert the following new Clause—
“Report on the exercise of powers to borrow(1) The Secretary of State must publish an annual report on the exercise of powers to borrow money by strategic authorities.(2) This report must include an assessment of the ability of specific authorities to meet the debts incurred.(3) Copies of that report must be laid before both Houses of Parliament.”Member’s explanatory statement
This new clause would require the Secretary of State to report on the exercise of powers to borrow money by strategic authorities and their ability to repay the debts incurred.

[Lord Jamieson (Con)]

My Lords, this new clause would require the Secretary of State to report on the exercise of powers to borrow money by strategic authorities and their ability to repay the debts incurred. I thank the Minister for her correspondence on powers to borrow after this was debated in Committee. As the previous group focused on precepts, we felt it worth discussing powers to borrow in isolation.

In Committee, we asked one key question: who, in effect, is the guarantor in the event that an authority cannot pay back its borrowing? I appreciate the Minister’s clarification that constituent councils will not be held liable for debts incurred by the authority. However, this is an important area that requires thorough oversight, which is why we tabled Amendment 80 to require the Secretary of State to report on the exercise of powers to borrow money by the strategic authorities and their ability to repay debts incurred. Surely one of the aims of the Government’s plans is to put local government on a stable and sustainable financial footing.

To be clear, we do not object to the ability of authorities to borrow money, but we do think that the Secretary of State and, crucially, Parliament should be aware of the facts. This report would be published, copies would be placed before both Houses of Parliament annually, and it would include an assessment of the ability of specific authorities to meet the debts incurred. This would give Parliament oversight of how much debt has been incurred by specific authorities across the country, as well as their ability to repay that debt. The information could then inform future debates and decision-making about the health of local government finances, and it would no doubt be of use to Secretaries of State themselves. I hope the Government will give this amendment their consideration.

[Lord Shipley (LD)]

My Lords, I agree with the noble Lord, Lord Jamieson, on this matter, which I have raised on a number of occasions in your Lordships’ House because I have never been clear about who will actually pick up an overspend when one exists. So this partly about the ability to repay debts incurred and partly about who is actually responsible. In other words, are council tax payers of the constituent authorities liable to help to repay debt?

My understanding is that the scrutiny function can now stop this happening in the first place. In other words, one of my concerns about the failure of the scrutiny system has been that it would not be certain that a scrutiny committee would prevent bad financial investment decisions. But what the Government have done by introducing further amendments makes it possible for the overview and scrutiny function to work effectively in that respect.

So I hope the Minister will clarify those matters. I am worried about who is liable for debt and about who is able to authorise substantial expenditure without certainty that a debt can be repaid. But, in the end, will the scrutiny function the Government have now introduced actually prevent the problems the noble Lord, Lord Jamieson, has identified?

[Baroness Taylor of Stevenage (Lab)]

My Lords, I thank the noble Lord, Lord Jamieson, for this amendment, requiring the Secretary of State to report on strategic authorities’ exercise of powers to borrow money. I recognise that this is a well-intentioned and well-reasoned amendment, but I do not believe the provision is necessary. Like the rest of local government, combined authorities and combined county authorities must operate within the prudential framework. This comprises statutory duties and codes intended to ensure that all borrowing and investment is prudent, affordable and sustainable. The framework already provides robust oversight and accountability. I agree with the noble Lord, Lord Shipley, that pre-scrutiny of key decisions by local accounts committees will also help.

In addition, this amendment contradicts the Bill’s aim of furthering devolution and increasing financial autonomy for these authorities, because it would shift reporting requirements up to central government. For these reasons, the proposed amendment is burdensome and duplicative, and I ask that it be withdrawn.

[Lord Jamieson (Con)]

I just have a quick question before I make my closing speech. Local authorities are required to have a Section 151 officer. Will the strategic authority be required to have one?

[Baroness Taylor of Stevenage (Lab)]

I do not want to give a definitive answer to that from the Dispatch Box, but I think the answer is yes—it would certainly be in accordance with local government accounting procedures and practice for anybody involved in spending local government finance to have the professional assistance of a Section 151 officer. I will reply in further detail to the noble Lord.

[Lord Jamieson (Con)]

My Lords, I am very grateful for the Minister’s response on this matter and her continued engagement since Committee. I also thank the noble Lord, Lord Shipley, for his comments.

We will not push this further beyond reminding the House that this is an aspect of local government finance that deserves continued scrutiny and oversight to ensure that authorities can repay the debts incurred through their powers to borrow. I thank noble Lords for their valuable contributions on this first day on Report and thank the Minister for her responses. With that, I beg leave to withdraw the amendment.

Amendment 80 withdrawn.