English Devolution and Community Empowerment Bill

Lord Shipley Excerpts

Committee stage
Monday 2nd February 2026 Grand Committee

[Baroness Jones of Moulsecoomb (GP)]

I will speak to Amendments 116 and 117A to 117G in the name of my noble friend Lady Bennett of Manor Castle. Amendment 116 probes the Government’s intentions around these powers, particularly in relation to key route networks and traffic regulation orders. As drafted, the Bill would allow mayors to be given a power to direct the exercise of certain road-related powers, including in relation to roads that are not part of the key route network and that therefore remain under the control of local or constituent authorities. The Secretary of State would then be able to issue guidance about how those powers are to be exercised. That raises some obvious questions. In what circumstances do the Government envisage these direction powers being used? What safeguards will exist to prevent them cutting across local decisions that have been made for reasons of safety, public health or community well-being?

Traffic regulation orders are often the mechanism by which councils introduce bus lanes, safer speed limits, low-traffic neighbourhoods or restrictions to protect residents. They are subject to consultation, legal tests and democratic accountability. There is understandable concern that new strategic powers could be used deliberately or inadvertently to undermine these local decisions. This amendment is about clarity and reassurance. Will the Minister confirm that the traffic management 2004 guidance will be revised to include guidance on key route networks? Will the Minister also ensure that such guidance prevents misuse by mayors, such as using KRN powers to undo traffic regulation orders made by local councils?

Amendments 117A to 117G seek to move the duty to report on traffic levels from the local and constituent authority level to the strategic level, on the basis that the latter has the greater responsibility and power to reduce traffic. As the Bill is currently drafted, the traffic reporting duty is tied to the use of key route network roads. This amendment would remove that limitation, so that the duty applies to all local roads within the area of the local transport authority. In doing so, it aligns the reporting duty with the full scope of the local transport plan.

The underlying issue here is one of responsibility. These amendments reflect the simple reality that strategic authorities, not individual constituent authorities, hold the main levers for reducing traffic across an area. Strategic authorities set and monitor the local transport plan. They determine the overall policy for all modes of travel. Through spatial development strategies, they decide where major development goes—decisions that fundamentally shape whether traffic is generated or avoided in the first place. They also promote and deliver the big-ticket transport schemes—trams, busways and other major public transport investments—and, increasingly, they will hold powers over enforcement and demand-management measures such as congestion charging. These are the tools that shift traffic levels at scale.

By contrast, local authorities have far fewer powers. Even where they do have powers, such as in implementing bus lanes or safer speed limits, those decisions are meant to flow from the strategic authority’s policies as set out in the local transport plan. Given that reality, it makes little sense to place on constituent authorities a fragmented traffic reporting duty that is limited to certain categories of road while the strategic authority is responsible for the policies and decisions that affect traffic across the whole network.

Of course, there is a real risk of unintended consequences. The proposed split would create a perverse incentive for constituent authorities to resist roads being designated as part of the key route network. Why agree to that designation if it means that a strategic authority acquires a traffic reduction duty for those roads but not for others? The danger is that this could lead to traffic being pushed off major routes and on to less suitable residential streets, which is exactly the opposite of what most communities want.

I am concerned that there is a coherent approach. Surely that means placing the responsibility for traffic reporting at the strategic authority level, covering all local roads in line with the scope of the local transport plan.

[Lord Shipley (LD)]

My Lords, my name appears on two of the amendments in the name of the noble Lord, Lord Moylan: Amendments 115A and 115B. However, I also subscribe to the principle of Amendment 116 in the name of the noble Baroness, Lady Bennett, which was just discussed by the noble Baroness, Lady Jones of Moulsecoomb. I do so because it is very important indeed that highways, or proposed highways, that constitute key route networks are both genuinely strategic and accepted as such by local councils and local authorities. As it stands, the Bill is unclear on where the powers around and responsibility for traffic management—and, indeed, for the allocation of resources—lie. It is important to clarify these matters in the Bill.

I want to ask the Minister two questions as clearly as I can. First, who will decide on the traffic calming measures proposed for residential roads? Will it be the local authority, the mayor or, in practice, a commissioner making recommendations to the mayor? Secondly, who will hold the budget for such measures? Will the money for the whole area of a strategic authority be transferred from Whitehall to the mayor, or will local authorities have their own budgets for such traffic management schemes? The noble Lord, Lord Moylan, said a moment ago that it is important to clarify these matters in advance. I agree with him: it is absolutely essential that these matters are clarified in advance because mayors must not undermine the powers of local authorities.

[Lord Hendy of Richmond Hill (Lab)]

My Lords, I turn to Amendment 115 in the name of the noble Lord, Lord Moylan. By requiring mayors to propose at least one road to be part of a key road network, this measure would ensure that all mayoral combined authorities and combined county authorities can adopt a key route network. By establishing and agreeing these priority links across an area, authorities can work together to manage improvements and maintenance to make a difference to people’s lives. It is also important that combined authorities and combined county authorities have a consistent set of transport duties. This amendment would create an inconsistency where combined authorities had this duty but county combined authorities did not.

--- Later in debate ---

There is a package of measures here, across a range of areas, that would ensure that the Bill delivers for both social mobility and the Government’s opportunity mission. Of course, that feeds into economic growth as well, ensuring that we are making the most of all the talent that exists across the country and making sure that growth delivers for all. It is so important for societal cohesion and basic fairness that government continues to work to de-link people’s life chances from their background—either their place of birth or their family. There is a brilliant opportunity here for the Government to seize, ensuring that the Bill delivers for social mobility. I beg to move.

[Lord Shipley (LD)]

My Lords, I very strongly support the noble Lord, Lord Ravensdale, and the cosignatories of this group of amendments. The points I will make will be very similar to those for the next group, which we will reach in a moment. The issue is important. I had not thought that immediately after Covid, the rate of those not in education, employment or training would rise. It has risen since Covid. There is something right at the heart of the way in which youth unemployment is addressed that is causing us not to solve that problem and give young people aged 16 to 24 the opportunities that they ought to have.

Looking at the areas of competence in the Bill that mayors will be engaged in, this one seems to be an acid test of whether devolution works. It is one thing to transfer powers from one person or body to another person or body, but it is a different matter when an objective is set, which is, simply stated, to reduce the level of youth unemployment and get more young people into education and long-term employment. The aim of the Government in driving devolution to the mayoral strategic authority system is, I think, to drive growth. From growth, you will have more jobs, and from more jobs you will have a lower level of those who are not in education, employment or training.

The clear ambition of the noble Lord, Lord Ravensdale, and, when we get to the next group, of the noble Baroness, Lady Stedman-Scott, is to drive social mobility through the enabling parts of the Bill. It is not just a question of moving transport powers from one body to another; it has to relate to helping young people get themselves from one place to another with the right transport systems and support for travelling to enable them to engage with education, training and employment.

There are several amendments in this group and the next one. We ought to take a step aside to look at how we can deliver the ambition that the noble Lord, Lord Ravensdale, has set because if this fails and the level of those not in education, employment or training stay stable or gets worse, that would be a failure of devolution. If you were to ask me which is the most important test in the several days in Committee so far, I would say that it is driving a reduction in the number of those who are in not in education, employment or training. This is something that would make a material difference to the lives of many people.

I hope that the Minister will not reply by saying that the Government have everything under control because I fear they do not. If they had everything under control, the number of NEETs would have gone down, not up. I hope that the Government will listen very carefully to the noble Lord, Lord Ravensdale, and, when we get to the next group, to the noble Baroness, Lady Stedman-Scott. These amendments are central and material to the aim and ambition of devolution.

[Baroness Stedman-Scott (Con)]

My Lords, I thank the Benches opposite for allowing me to speak. I was trying to sort out my timing on the Statement, and I messed up there, so I thank noble Lords for their understanding.

The amendments in this group are all in the name of the noble Lord, Lord Ravensdale. I agree 100% with the noble Lord, Lord Shipley, that this is one of the most serious issues that we face. I thank the noble Lord, Lord Ravensdale, for the time, care and seriousness with which he has addressed social mobility within the Bill. Place-based solutions to social mobility are essential, and devolution gives this Government a genuine opportunity to act in a way that national policy alone never can. It allows local authorities to design policies that are properly matched to their local labour market, their economic strengths and the needs of their communities. In doing so, it offers the prospect of moving beyond one-size-fits-all interventions towards approaches that genuinely expand opportunity and improve outcomes on the ground.

If the noble Lord will forgive me, and for the sake of brevity, I will focus on just a small number of these amendments. Noble Lords in the Committee will know that this area is close to my heart. I spent more than 32 years working with young people, helping them into employment and, more importantly, helping them to stay in employment. I promise noble Lords that I have seen what works and what does not.

I remember getting a young girl who never had any opportunities into the Unipart business in Oxford. We worked with her, and she got the job of booking travel for all the executives. She was so excited it was not true, and she turned up on Monday, Tuesday, Wednesday and Thursday, but on Friday she did not show up. We went round to her house. She came down in her PJs and I said, “What on earth are you up to?” She told us that she never went to school on Friday and that nobody ever talked to her about it, so she thought she would not come to work. We sent her upstairs to get dressed and took her to work. The next week, the same thing happened. Again, we went round to her house and sent her upstairs. On the third week, she turned up, and again on the fourth week and the fifth week. Sometimes it is not anything deeply interventional that works; it is just a matter of knocking on the door and saying, “Come on now, get yourself together”. There is no one size fits all; it is all about individuals. I have seen what can work, and I hope that, with this devolution Bill, we can make more things happen for people like that.

I will begin with Amendment 123, which would require strategic authorities in the delivery of their functions under the Act to work in partnership with local businesses and education providers, including further education providers, to prevent and reduce local youth unemployment. Youth unemployment is rising, and the figures are deeply concerning. In the most recent data available, 729,000 young people aged 16 to 24 were unemployed, which was an increase of 103,000 on the previous year. The youth unemployment rate stood at 15.9%, up from 14.4% the year before.

These figures are frankly scandalous. We could have a big debate about whose fault it is, but I would rather we did not do that. It is important that we agree how we are going to solve the problem and stop it happening in future. This trend cannot be reversed through centralised schemes designed in Whitehall with the political choices this Government have made. It requires local solutions and place-based approaches shaped by the realities of local labour markets. Strategic authorities are uniquely placed to bring together employers, colleges and training providers to intervene early, which is critical, align provision with demand and need and prevent young people falling into long-term worklessness. This amendment would give them both the responsibility and the impetus to do so. I completely support it.

Amendment 124 would require strategic authorities to consult further education colleges when identifying where skills challenges are most acute within key sectors. I know I speak often about skills shortages, but I do so because the evidence is overwhelming. Official figures from the Office for National Statistics show that there are almost 1 million young people in the United Kingdom who are not in education, employment or training, and this is the highest figure for more than a decade. At the same time, employers across the country are struggling to recruit and, due to some of the changes that have been made by the Government, vacancies are dropping. It is a right car crash, however you look at it.

We face shortages in some vital occupations, including biological scientists, bricklayers, care workers, carpenters, graphic designers, laboratory and pharmaceutical technicians, and roofers—what a mixture. This mismatch is economically damaging and can be socially corrosive. Further education colleges sit at the heart of any solution. They understand local demand, local learners and local barriers. Failing to involve them systemically in skills planning is a structural weakness. This amendment would help ensure that skills policy is grounded in the reality of local communities.

--- Later in debate ---

[Baroness Scott of Bybrook (Con)]

My Lords, it is a pleasure to open this group on behalf of my noble friend Lady Stedman-Scott. She apologises profusely because she has had to go into the Chamber as they are talking about possibly bringing forward dinner break business. As noble Lords have heard, this is an area close to her heart. These amendments reflect her considerable knowledge and expertise while inviting us to consider how we might improve the Bill from an adult skills, work and welfare perspective.

As we have heard already in Committee, my noble friend Lady Stedman-Scott spent more than 32 years working to help young people into employment, and I am grateful for the support and insight that she is providing for this debate. I can assure your Lordships that my noble friend would probably have spoken for another hour on everything that she has gained from working for those 32 years in the area.

This is an area about which we feel strongly, yet, in our view, the Bill as it stands lacks the framework and conditions that are required to deliver a truly meaningful impact. As we said, unemployment is rising. That is not a party-political point—it is just a fact. At the same time, we face a persistent skills mismatch in many parts of our country. If we are serious about reversing this trend, we must work together to ensure that the Bill delivers real and lasting change. That is working together at the top but locally.

I begin with Amendment 122A, tabled by my noble friend. Beyond the legal entitlements set out in the Apprenticeship, Skills, Children and Learning Act 2009, strategic authorities will enjoy significant local discretion in how they exercise these functions and deploy the adult skills fund. We understand that allocations to strategic authorities will be made on a non-ring-fenced basis, with minimal conditions attached to that funding.

This amendment is deliberately simple and proportionate. It provides that any funding given to a strategic authority under the Act for adult skills, education or employment support must be used to achieve one of those two purposes—first, to support adult educational skills, and secondly, to help young adults into work, stay in work or progress in work. In doing so, it anchors the funding clearly to adult skills and employment outcomes rather than allowing resources to drift into loosely related priorities. At the same time, strategic authorities retain full discretion over programme design, commissioning and delivery. Nothing in this amendment constrains local innovation or responsiveness.

The amendment also sets out what counts as valid spending. This is a non-exhaustive list and includes adult education and training, retraining and upskilling, employment support and careers guidance, employer engagement and outreach to under-represented groups. This provides legal cover for modern preventive and locally tailored interventions.

Crucially, it also makes clear what this funding cannot be used for. It cannot be diverted into roads, highways or transport infrastructure. You often hear, “This will fund new jobs”, but they are not always long-term jobs. It cannot be used for unrelated capital projects, nor can it be absorbed into generic economic development activity that has no clear link to workforce participation. This is designed to prevent the sort of argument that employment outcomes have been improved simply by building a bypass.

Finally, the amendment would require authorities to publish statements explaining how the money has been spent and how it supports adult education and employment locally. This introduces public accountability, creates a clear paper trail for Parliament and applies gentle, but important, pressure on authorities to demonstrate outcomes. I hope noble Lords across the Committee will agree that this is a sensible, focused and necessary amendment that would materially strengthen the Bill in an area of growing national importance.

I will speak briefly to the new clause that would be introduced by Amendment 196EA. This clause would allow responsibility for delivering the youth guarantee to be devolved to strategic authorities, giving them the flexibility to tailor provision to local labour markets while preserving the youth guarantee as a national entitlement. I heard what the Minister said, but I think we will still be pushing this point. It should be underpinned by minimum standards and parliamentary oversight. I know that this Government are rightly proud of this programme, but, if they truly believe in the model, it should be delivered as close to local labour markets as possible. Local authorities are far better placed to understand employer demand, skills shortages and the specific barriers that young people face in their areas, and to align support with real jobs rather than abstract national assumptions.

The new clause that would be inserted by Amendment 196EB, along with Amendments 124A and 124B, follow the same theme. I will focus on the new clause, which in essence summarises the rationale for the expansion of Schedule 11 and is reflected in later amendments. Fundamentally, they all seek to achieve the same objective. This clause would give mayor-led strategic authorities the power, where they choose to request it, to design and run youth employment programmes or pilot schemes. It would enable mayors to work directly with employers, education providers and voluntary organisations to offer targeted support, such as training, apprenticeships, wage subsidies and work placements, for young people, particularly those at risk of long-term unemployment. The Secretary of State would be able to provide funding for this purpose, which must be used to support youth employment or labour market participation. The clause would also allow for time-limited pilots, evaluation and the sharing of learning, all subject to full parliamentary scrutiny.

During my noble friend Lady Stedman-Scott’s time at Tomorrow’s People, she ran employability programmes that addressed the challenges of young people not in education, employment or training and delivered close to local labour markets. Simply put, they worked. They drove real impact on the ground by working with colleges, schools and local businesses. Devolution can provide targeted outreach, tailored support and genuinely high-impact interventions, which is precisely what these amendments seek to enable.

As I mentioned briefly on the previous group, the challenge of young people not in education, employment or training has rarely been so acute. In the most recent data available, 729,000 young people aged 16 to 24 were unemployed. As we have said before, that is an increase of 103,000 on the previous year. Of course, tackling this problem requires the right national economic policies. I accept that, but there is also so much that cannot be changed from the centre. In the meantime, mayors can act now. They can work directly with local businesses, design and run pilot schemes and tailor support in their areas for specific labour markets that they understand far better than Whitehall ever could. I hope the Minister will take these amendments seriously. I beg to move.

[Lord Shipley (LD)]

My Lords, the noble Baroness, Lady Scott of Bybrook, has just said that she hopes the Government will pay detailed attention to the amendments in this and the previous group, because the importance of this issue is so great that Governments need to act. We cannot go on with the rising number of young people who are unemployed. I support the amendments in this group, as I did those in the previous one.