English Devolution and Community Empowerment Bill (Tenth sitting)

Manuela Perteghella Excerpts

Committee stage
Thursday 23rd October 2025 Public Bill Committees

[Manuela Perteghella (Stratford-on-Avon) (LD)]

I beg to move amendment 5, in schedule 24, page 246, line 27, after “government” insert —

“having particular regard to the need for the new single tier of local government, or new unitary council, to—

(a) be of an appropriate geographical size, giving consideration to—

(i) economic zones,

(ii) physical geography,

(iii) public service provision, including health, transport, and emergency services; and

(b) preserve community identity, cohesion and pride.”

This amendment mandates that the Secretary of State must have particular regard to certain criteria when creating or merging SAs to ensure their suitability in terms of economic, geographical, service, and community considerations.

In an earlier sitting, the Committee discussed amendment 25, which would have required the Secretary of State, when preparing a proposal for a new combined authority—something we oppose—to follow such a proposal with a statement explaining how it would affect the physical geography, community identity and the boundaries of other public services. Amendment 5 focuses on the need, when we look at local government reorganisation into a single tier of local government or unitary council, to bring communities together by preserving or creating a sense of space.

It is our view that, when merging tiers of local government to create a new unitary council, as part of the strategic authority process, particular regard should be given to the size of the area covered by the new authority, which we have obviously debated in depth, as well as the merger’s impact on community identity, heritage, cohesion and pride. After the passionate intervention of the hon. Member for Sittingbourne and Sheppey about the need to focus on the socioeconomic requirements of the geographical landscape and the connection of communities within his constituency, perhaps he will support the amendment.

Obviously, from a central Government perspective, we accept that reorganising an area may improve clarity, but it is crucial that the Bill delivers clear devolution benefits for communities. To do so, areas merged or otherwise must remain responsive to their communities, and they must continue to engage with those communities by carrying forward a shared identity or a sense of place in some form. It goes to what the hon. Member for Broxbourne said this morning about unifying communities in his area and reinforcing a sense of place. That is why the population figure of 500,000 must be just a benchmark—it must be flexible—and I know the Minister has already confirmed that.

We have already spoken about the existing boundaries of public service provision, including integrated care boards, local NHS areas and police and crime commissioner areas. To reiterate, however the reorganisation takes place, it must be responsive to the particularities of the area, not purely directive. It is that direction from Government that we oppose, and the amendment would mandate that, when deciding mergers, the Secretary of State considers these very important local characteristics that other Committee members have raised.

There is an intrinsic logic to the way in which those public service areas evolved to intersect and connect, and chopping them up just for the sake of numbers, without due regard to all these characteristics, is taking a significant risk with our public service delivery. For example, to narrow it down to one specific question, will our local NHS trusts and ICBs be brought along with plans to merge levels of local government, so that the staff in both the health services and the new unitary authority can keep effective working relationships and continue to provide high-quality services and care for their local populations? In conclusion, we think the amendment is important, especially in relation to the merger of authorities to form single-tier unitary councils, and we are minded to press it to a vote.

[Lewis Cocking (Broxbourne) (Con)]

I rise in support of amendment 5, spoken to by the hon. Member for Stratford-on-Avon. This is where the Government should have started. The amendment seeks to put place at the very heart of local government reorganisation, which the Government have missed. In coming up with the arbitrary target of half a million people or thereabouts, they have not thought about place and how communities connect with shared identities.

I have spoken in Committee before about Hertfordshire. Hertfordshire has a number of significant towns, all of relatively the same size and population, but there is very little interconnectivity between the towns, particularly on rail and road. Not many people move between those towns, and I fear the consequences of an arbitrary target of around half a million. I appreciate what the Minister has said about the flexibility of that target, but even setting a target of 300,000 people is not looking at what best serves communities; it is sitting in Whitehall, coming up with a figure, and saying, “This is what we want to push top-down throughout the country. This is what we need to do,” rather than saying to places, “We want to reorganise you. Please come up with appropriate examples of how you might best do that within your communities.” That is what the amendment speaks to.

We really need to think about place. If we want these new councils to be successful, they must have buy-in from local communities. Local communities must have a shared sense of identity and a shared sense of vision. We cannot lump places together that have hardly any connectivity—places that people do not travel between—because we would be setting up those councils to fail, and to have competing priorities for the towns they want and do not want to invest in. The amendment is logical, and it is disappointing that the Government did not start off in this place and give more flexibility to the top-down reorganisation they are forcing on large parts of England. If the hon. Member for Stratford-on-Avon wishes to push the amendment to a vote, the official Opposition shall support it.

[The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Miatta Fahnbulleh)]

It is a privilege to serve under your chairpersonship, Ms Vaz. I have a lot of sympathy for the sentiment behind the amendment, but we are already building in provisions to reflect the issues that the hon. Member for Stratford-on-Avon has raised.

The Local Government and Public Involvement in Health Act 2007 already provides that a direction for local government reorganisation can be issued only if the Secretary of State deems the proposal to be in the interests of effective and convenient local government. Having regard, therefore, to size, geography, public services and local identity is fundamentally embedded in the decision-making process. That is demonstrated by the statutory guidance and criteria shared with areas currently preparing for reorganisation. The hon. Lady is right to highlight those factors that matter for the sense of place, and therefore the boundaries of councils, and we think that the statutory guidance and safeguards fundamentally lock them into the process that we are going into.

On whether this process is top down or bottom up, let us look at it: we have invited places to go through a process of reform, and those places are now having conversations among themselves to come up with proposals. Those are not Government proposals; they are proposals from local areas. We are already allowing conversations to be had about what makes sense for those areas and how we take into account the specifics of identity and other issues in those proposals. Whatever proposal is chosen must be consulted on before it is implemented, which, again, is an opportunity for local people to have a conversation, and to have some say and voice in the process.

Although I appreciate the intent behind the amendment, we have legal provisions and, critically, have set out a process that fundamentally addresses the issues that the hon. Lady has raised. I therefore ask her to withdraw the amendment.

[Manuela Perteghella]

I would like to press the amendment to a vote, because it is important to mandate that the Secretary of State consider these criteria. They will have many proposals from the same area, so these criteria would give guidance on how we can keep the cohesion of communities that hon. Members have discussed before.

Question put, That the amendment be made.

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[Siân Berry]

I implore the hon. Member to listen to the rest of my speech and further points I shall make on other amendments. In Sheffield, at the same time, the council resolved unanimously that

“Sheffield benefits from fairer, more representative governance arrangements, and that people expect the Councillors they elect to have a vote on the decisions that affect them”.

Bristol also has a committee system, and Bristol Green councillors have told me how their cross-party committees have had a series of task and finish groups, where policy is developed with the input of councillors from all parties. They say that, while everyone does not always agree, this process allows for much more rounded development of policy ahead of implementation, not just scrutiny afterwards or divisive call-ins. There is rich debate, with more voices taking part in it.

Those councillors also say that the committee system also allows for back benchers to have more influence and input, with a positive effective on equalities as well, so that more councillors with a variety of different characteristics have space to input, and that, in turn, has a positive effect on policy development. New councillors also have more of a chance to develop their skills and interests than under a cabinet model, where only a handful of councillors have proper influence and are hand-picked by the leader or mayor in many cases. Sheffield councillors also say:

“The critical budget-setting process has worked better in Sheffield since the committee system was introduced, avoiding last minute wrangling and hasty deals between the parties. This is because the detail of the budget process is worked through each Committee in the months leading up to the budget, so all councillors are involved. This contrasts with the last budget brought under our Cabinet system where the budget proposal was voted down as the council meeting descended into chaos.”

I also urge the Committee to note that none of the councils that have issued section 114 notices in recent years have been run under a committee system. Worcestershire city council has had a committee system since 2017, implemented after a council motion that was proposed by Conservatives and seconded by Greens. Councillors there tell me that they see scrutiny within the committee system working really well to improve policy before any decisions are made, and it has improved cross-party working relationships and helped to build consensus.

The council has also been independently praised for its collaborative approach, and was commended in the Local Government Association’s corporate peer challenge in April, which said:

“The peer team found evidence of good governance across the organisation. The peer team found there was positive Member collaboration across political groups which makes the most of the opportunities in this type of governance and there was comprehensive coverage of council business at Policy Committees”.

I can speak on cabinet governance from my previous experience as a councillor in a Labour council, as it is currently the choice of the Labour administration in Brighton and Hove, where my constituency sits. Cabinets can obviously be quicker to act through a rapid decision-making process, but that has risks too. For good reason, the saying is not “Measure once, cut once”. I have noticed a disturbing trend of scrutiny committee time being squeezed by leaders and cabinets, with some councils having just one broad scrutiny committee—I did not experience that and I honestly cannot even imagine it working in agenda terms.

A single scrutiny committee has, by definition, only a limited time to examine a wide range of upcoming decisions in any detail, and surely has no space on the agenda for the kind of through pre-decision scrutiny or issue-based evidence gathering to generate ideas or feedback on services that good scrutiny committees also do, and which I have seen. There are further risks; along with maintaining first past the post, the leader and cabinet model preferred by the Government is a recipe for seeing purely one-party decision making in more places, overriding all opposition voices when key decisions have to be made. One-party states are not more efficient or effective.

[Manuela Perteghella]

Does the hon. Lady agree that the heart of the issue is actually choice? In this brave new world of unitary councils, local councils should have the ability to choose and shape their own future governance model.

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[Manuela Perteghella]

I want to support the hon. Lady. The national Government should not force structures of local governance on local councils. We saw written evidence from Councillor Martin Smith, the leader of the Liberal Democrats in Sheffield city council, showing how the committee system has made the governance of the city council more transparent. Abolishing the committee system in Sheffield and Bristol, and in other areas where local people wanted a change from the leader and cabinet system, would go against the will of the people in those areas. For that reason, if the hon. Member for Brighton Pavilion were to press amendments 326 and 327 to a vote, I would support them.

[Miatta Fahnbulleh]

I thank the hon. Member for Brighton Pavilion for talking us through some of the specifics, particularly in the context of Sheffield. My hon. Friends the Members for Sheffield Central (Abtisam Mohamed) and for Sheffield Hallam (Olivia Blake) have been very effective in explaining the specifics of Sheffield to the Government, including the history of how the council got there and how the democratic process has played out. We are very mindful of that, and we will reflect on that and on the question of legacy.

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[Siân Berry]

I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

[Manuela Perteghella]

I beg to move amendment 250, in schedule 25, page 254, leave out lines 3 to 12.

This amendment retains the statutory requirement for public notices to be published in printed local newspapers.

[The Chair]

With this it will be convenient to discuss the following:

Amendment 251, in schedule 25, page 254, line 6, at end insert—

“(aa) after subsection (2)(b), insert—

“(2A) For the purposes of subsection (2)(b), at least one of the newspapers must—

(a) have paid-for of free distribution in the relevant local area, and

(b) be published at regular intervals.””

This amendment ensures that at least one of the newspapers in which a public notice is printed is a local newspaper.

New clause 55—Consultation on publication of local authority resolutions and referendum proposals—

“(1) The Secretary of State must undertake a consultation on updating requirements about the publication of notices under the following sections of the Local Government Act 2000—

(a) subsection (2) of section 9KC (resolution of local authority), and

(b) subsection (7) of section 9MA (referendum: proposals by local authority).

(2) The consultation must consider the impact of requirements for the publication of notices, and of proposed changes to arrangements for the publication of notices, on the following matters—

(a) the economic viability of local newspapers,

(b) access to information for local authority residents, and

(c) local democracy and accountability.

(3) The consultation must be opened within six months of the passage of this Act.”

Amendment 405, in clause 78, page 78, line 3, leave out “1 to 6” and insert—

“1 to 5, 6(1), 6(2)(b) and 6(4)”

This amendment is consequential on Amendment 406.

Amendment 406, in clause 78, page 78, line 4, at end insert—

“(4A) Paragraphs 6(2)(a) and 6(3) of Schedule 25 come into force on such day or days as the Secretary of State may by regulations appoint, but such regulations cannot be made until the Government has responded to the consultation provided for by virtue of section [Consultation on publication of local authority resolutions and referendum proposals].”

This amendment is consequential on N55 and would prevent subparagraphs 6(2(a) and 6(3) of Schedule 25 coming into force until the consultation provided for in NC55 has been carried out and responded to.

Amendment 407, in clause 78, page 78, line 17, at end insert—

“(11) Regulations under subsection (4A) are subject to the affirmative resolution procedure.”

This amendment is consequential on Amendment 406 and would require such regulations to be subject to Parliamentary approval.

[Manuela Perteghella]

Amendments 250 and 251 would protect the right of local residents to be properly informed about decisions that affect them by retaining the statutory requirement for public notices to be published in printed local newspapers.

Amendment 251 would ensure that the newspaper in which notices are printed is truly local, relevant and published at regular intervals. The legal requirement to print notices in local newspapers must remain to protect transparency and local accountability. That is the baseline. Printed notices are still one of the main ways in which residents, including hundreds of my constituents, find out about planning applications, road closures, licensing changes and other council decisions. We cannot restrict the dissemination of important public notices that directly affect the lives of residents just to the online world and social media.

In my rural constituency of Stratford-on-Avon not everyone is online, and we have discussed the challenges for rural and isolated communities to even have broadband or wi-fi connectivity. I told the Minister that this week I had students who had to go to cafés in town to revise for their GCSEs, because they could not get a signal in their homes. Older rural residents are often digitally excluded, and many struggle with internet access.

In those areas lucky enough to still have them, local newspapers have a very important role to play in holding local government to account. On top of publishing statutory notices, they report on local democracy and help to keep communities informed and engaged. The amendments will also help local journalism, which relies in part on statutory advertising income, to survive.

Amendment 251 is important because it adds a definition to make it clear that at least one of the newspapers used must actually be local, published regularly and distributed, whether paid-for or free, in the local area.

The amendments will guarantee that public notices reach the people affected, and reinforce the principle that information should be accessible, inclusive, local, useful and timely. A person who is not online will not know that, for example, the road between their house and their GP will be closed on a day they have to attend an appointment. There will be unintended consequences. Together, the amendments keep community engagement open to everyone, not just those who have broadband connectivity. I was very surprised to see the removal of public notices in print newspapers in the Bill.

[Paul Holmes]

I am delighted to speak to amendments 250 and 251, and to new clause 55 and amendments 405 to 407, which stand in my name and that of my hon. Friend the Member for Ruislip, Northwood and Pinner. I am sure that pleases everybody— I remind the hon. Member for Banbury that I have been seated for quite a while now, and I do not want him to miss out on my dulcet tones.

This is slightly complicated, but I will not spend too long on it. New clause 55 will require a consultation on the publication of local authority resolutions and referendum proposals. Amendments 405 to 407 would essentially act as a block to the regulations set out in the Bill until the proposal is consulted on and an assessment undertaken of the consultation responses on

“the economic viability of local newspapers…access to information for local authority residents, and…local democracy and accountability…. The consultation must be opened within six months of the passage of this Act.”

We believe that it is crucial to consult on the different aspects and different geographical situations of our local newspapers. Local newspapers are essentially the beating heart of various sections of our society who are not online and who rely on or may be interested in such information. It is not a novel thing for people to be interested in what is going on in their local area. As we have seen, with the reduction in regional TV broadcast news and the restructuring of our national broadcaster and other local news providers on television and radio, local newspapers can be the only channel for local people to see what is going on in their local authority area.

I am sure that many people on this Committee have been lobbied by various trade bodies and organisations on behalf of local newspapers. With the advance of digital technology and the internet, the circulation of physical copies of local newspapers is declining. When I was a councillor in 2008, the amazing and historic Daily Echo, which covers Hampshire and Portsmouth news, had a circulation of around 200,000 hard copies sold; it has fallen to around 40,000 now. Local newspapers rely heavily on the income stream from statutory notices and local government notices; it is a lifeline for local newspapers.

Such notices allow people to read about what is going on with their planning applications and some of the changes that local authorities are putting forward. In my local authority, as in local authorities across the country, these statutory notices and planning notices sometimes act as a safeguard when—I hate to say this— a local authority does not act on its statutory duty to alert relevant people to a planning application or a statutory notice. I would hate to guess how many times we have had an email from a constituent that says, “I didn’t know that this planning application was going to go ahead, and I’ve missed the consultation and can’t do anything about it,” either because the postman did not deliver the letter, or the local authority did not deliver to everybody in a restricted cul-de-sac some information about a block of flats going up next door. If they miss that information, they lose their chance to be consulted.

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[The Chair]

Order. We have not debated new clause 4, but since the selection and grouping of amendments is always provisional and at the discretion of the Chair, there will instead be a chance to debate it at a future sitting of the Committee. This is, effectively, a conscious decoupling of the new clause from the group.

Clause 58

Local authorities: effective neighbourhood governance

[Manuela Perteghella (Stratford-on-Avon) (LD)]

I beg to move amendment 14, in clause 58, page 60, line 11, at end insert—

“(1A) It is a duty of a local authority to specify the description of a neighbourhood area that will apply within the local authority’s area for the purposes of subsection (1).”

This amendment assigns the power to define “neighbourhood area” to the affected local authority.

[The Chair]

With this it will be convenient to discuss the following:

Amendment 61, in clause 58, page 60, line 25, at end insert—

“(3A) The Secretary of State must make provision to ensure local authorities receive adequate funding to implement the “appropriate arrangements” in subsection (1) which relate to neighbourhood planning functions.”

This amendment would require the Secretary of State to ensure that local authorities receive adequate funding to deliver neighbourhood planning functions.

Amendment 13, in clause 58, page 60, line 29, at end insert—

“(4A) But regulations may not—

(a) alter—

(i) any function exercised by, or

(ii) any power available by or under any Act of Parliament to,

a parish or town council, or

(b) make provision for the abolition of any parish or town council.”

This amendment would ensure that the Bill’s provision for effective neighbourhood governance does not alter any functions performed by a parish or town council or lead to the abolition of a parish or town council.

Amendment 15, in clause 58, page 60, line 29, at end insert—

“(4A) Regulations under this section may not include power for the Secretary of State to specify the description of any neighbourhood area.”

This amendment precludes the Secretary of State from exercising any power to define a neighbourhood area.

[Manuela Perteghella]

I will address these amendments as two separate groups. Amendments 14 and 15 are simple and, in combination, would ensure that the definition of a “neighbourhood area”, which is important in this clause, is decided by the effective local authority and not by the Secretary of State. In these amendments we are again trying to devolve powers to grassroots governance. For the sake of clarity, we drafted amendments 14 and 15 to grant that neighbourhood areas are defined in accordance with local perspectives, rather than with the view from Westminster.

Amendment 13 complements those changes. Within the locally agreed and defined neighbourhood area, the authority would be required to make appropriate arrangements to secure effective governance. This amendment specifies that those arrangements must not alter any function performed by a town or parish council, or result in the abolition of a town or parish council. As I have explained previously, it is really important to keep town and parish councils. The amendment would give important protections for our smallest and first tier of local governance. The Committee has already debated how town and parish councils perform a crucial role in effective governance and in providing services. They are to adopt many more services as well. We talked about them being consulted, and this amendment is about making sure that they do not get abolished in the definition of a “neighbourhood area” and “neighbourhood governance”.

The Liberal Democrats continue to be surprised by the lack of protection for, or even reference to, town and parish councils in the Bill. This is an excellent opportunity for the Minister to protect those tiers of governance, and put on record her support for hyper-local government, as we consider devolution more broadly.

Amendment 61 has a different purpose. Throughout the Committee debate, hon. Members have spoken about the need for authorities to be able to access support of all kinds, including financial and advisory support, while delivering local planning functions. The amendment is relevant in the light of the Government’s decision earlier this year to remove funding for localism and neighbourhood planning, which was an excellent initiative that put planning and growth plans in the hands of local people. That initiative saw more than 1,000 neighbourhood plans approved at referendum, and was a key way of securing other local involvement in planning proposals and decisions, giving the local community the power to shape their own future in development. Neighbourhood plans were also very much linked to local housing needs, such as locally how much social housing is needed in a village or town, so they were really important.

Removing funding from neighbourhood planning seems to run contrary to this Government’s aims of devolution and community-engaged house building. I urge the Minister to reinstate some form of funding. I would like to hear reassurances from her, especially in relation to the protection of town and parish council governance, which I set out in amendment 13.

[Miatta Fahnbulleh]

The key thing to say in response to this group of amendment is that provisions in the Bill are not about central Government imposing a model of neighbourhood governance without the flexibility or consideration of local places and their requirements; they are about setting a standard for smarter, more responsive decision making for our communities and, critically, ensuring that there are no black spots or gaps across the country, so that every community has the ability to shape, and have a voice, say and power in the decisions that impact their neighbourhoods.

We are not designing the regulations in isolation; we are working closely with local government and the community sector—including the Local Government Association, the National Association of Local Councils and the We’re Right Here campaign—to make sure that the provisions in this part of the Bill reflect how we get effective good community governance.

On amendment 13, throughout the debates in this Committee I have said consistently that we absolutely recognise the important role that town and parish councils play in our democracy and our community life. There is no intention to abolish parish and town councils in the Bill. It is not about duplicating them—in fact, I have consistently said that where we are building neighbourhood governance, we should rightly build on the civic institutions that are there anyway, to ensure that we have both depth and proper coverage across the country. The regulation-making powers in the clause therefore cannot be used to make regulations that amend primary legislation, which protects town and parish councils already, and there is no intent to do that.

[Manuela Perteghella]

I thank the Minister for her reassurance, but would she put what she has said about the protection of town and parish councils in writing to us?

[Miatta Fahnbulleh]

I am happy to put that in writing, but I will state again that there is already primary legislation in place that protects town and parish councils and means they cannot be abolished. There is nothing in the clause that undermines that. I will absolutely put that in writing. Again, the intention of the clause is to recognise that town and parish councils exist in some parts of the country, but not others. We want every community across the country to have effective neighbourhood governance structures, so that people can have power, agency and a voice to shape their locality and their direct neighbourhood.

Finally, on amendment 61, again, I agree that we should protect the important functions of neighbourhood planning. That is why my Department has already committed to ensuring that local planning authorities continue to be appropriately funded for their neighbourhood planning functions, including for plan examinations and referendums. Funding for those costs is provided through a claims-based system. We will make an announcement on the claims for this financial year in due course. As I said, there is nothing in the clause that undermines effective neighbourhood planning; it is quite the contrary. We think there is an opportunity, as we strengthen neighbourhood governance structures across the country, for that to enhance and build on the work that has been done through neighbourhood planning. I ask that the hon. Member for Stratford-on-Avon withdraw the amendments.

[Manuela Perteghella]

In the light of the Minister’s assurances, I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

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[Miatta Fahnbulleh]

MPs going to Parliament to work as part of a collective is very different from a single individual who needs democratic accountability to drive decisions. Those are two very different models, which is why we think the single transferable vote makes sense in the context of mayors and police and crime commissioners but the first-past-the-post system that we currently have for MPs is right for collective decision making.

Finally, mayors and police and crime commissioners are currently elected via first past the post, which we think is the wrong approach. We think that shifting to this new system will provide greater consensus for the electorate.

[Manuela Perteghella]

I will speak to new clause 7. I commend the Government for their decision to do away with the first-past-the-post system for mayoral and police and crime commissioner elections. As has been said, the decision to move mayoral elections to first past the post was a complete disaster, and this improvement will ensure better local voter representation. The Mayor of the West of England, for example, was elected with only 25% of the vote. Supplementary voting is a significant improvement, but the Liberal Democrats believe we should introduce the alternative vote system as a further advance on that.

We all want to see genuinely representative local elections to ensure that local people know that every vote counts, and so that the councils they elect are truly representative. Where the supplementary vote system allows people to vote for their first and second choices, the alternative vote system allows for a more comprehensive ranking by each voter. For example, under first past the post, a candidate with no majority backing can still win because of vote splitting. We believe that an alternative vote system will increase engagement and deliver fairer outcomes. Our new clause has the support of the Electoral Reform Society, which strongly recommends that it is incorporated into the legislation. I await the Minister’s response.

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[Miatta Fahnbulleh]

Many Members will have pubs or community centres in their constituencies that are at risk of loss or closure, despite being the heart of their community and playing a crucial role in local lives. Too many valued community spaces are being lost because communities do not have the powers they need to protect them. That has a massive impact on the vibrancy and identity of local areas. Clause 60 and the associated schedule 27 will put control back into the hands of communities, giving them real power to take ownership of cherished local assets and protect them for future community use.

The clause will strengthen the existing assets of community value scheme in England, which since its introduction in 2012 has seen only 15 in every 1,000 listed assets come into community ownership, and create a new, far more effective and far more powerful, community right to buy. This will give communities a right of first refusal on the purchase of valued community assets. It will give an extended 12-month period to raise funding to purchase the asset, as we recognise that the current six months is not long enough. It will also introduce an independent valuation process to ensure a fair price for everyone.

We know that village shops and bank branches are a lifeline to our communities. The clause will therefore extend the definition of an asset of community value to include those with an economic value and assets of historical importance, so that communities can protect and make use of them.

Finally, the clause will address the historically low uptake of sporting assets under the current regime by establishing a new sporting asset of community value designation. Sports grounds across England will be automatically and indefinitely designated as sporting assets of community value, ensuring that these cherished facilities, vital to our communities, are protected for generations to come.

Question put and agreed to.

Clause 60 accordingly ordered to stand part of the Bill.

Schedule 27

Assets of community value

[Manuela Perteghella]

I beg to move amendment 349, in schedule 27, page 265, leave out lines 1 to 8.

This amendment would remove the provision for assets of community value to be removed from the list of assets of community value after five years.

[The Chair]

With this it will be convenient to discuss the following:

Amendment 350, in schedule 27, page 265, leave out from “value” in line 10 to “the” in line 11.

This amendment is consequential on Amendment 349.

Amendment 351, in schedule 27, page 265, leave out lines 13 to 15.

This amendment is consequential on Amendment 349.

[Manuela Perteghella]

Amendments 349 to 351 concern the rules around assets of community value. The designation of a building such as a pub, community shop or village hall, or even a piece of land like a community orchard, as an asset of community value allows local people to protect the places that play an important role in their community. They are often linked to wellbeing and social cohesion. The intent behind the original legislation was to give communities a real say on places that matter deeply to them, particularly when they are at risk of being sold or redeveloped.

There is, however, a flaw in the current system. Under existing law, once an asset is listed on the register by a local authority, it automatically drops off the register after five years. This creates a huge burden not only on the local community, including local community groups and parish and town councils—as they have to jump through bureaucratic hoops to resubmit the application to the local authority—but on the local authority itself, as the application has to go through its legal department and be scrutinised once again. In the time it takes for that to happen, a cherished community asset might be sold off.

Like sporting assets of community value, these important buildings and sites must remain on the list of community assets. Amendment 349 would remove the automatic five-year expiry for assets of community value for all buildings and places on that list. It would mean that, once an asset is listed as being of community value, it will stay on the register indefinitely, unless there is a clear reason for it to be removed.

The amendment would shift the burden from communities to maintain protection for something that is still vital to local life. I had an experience in my constituency where one of the village pubs, which had been put on the register of assets of community value, dropped off the list during covid. Obviously, we were all preoccupied with the pandemic, and we only realised later that it was not protected any more.

Amendments 350 and 351 are consequential to amendment 349. In a way, these amendments would also take away the burden on local authorities that have to assess the application once again. This change matters because reapplying is not a simple process; it takes time, organisation and paperwork, and it is handled by volunteers who may have limited capacity and resources. Removing the time limit for all assets of community value would mean that we provide continuity of protection and reduce unnecessary bureaucracy for both communities and local councils. It would also recognise that community value does not just disappear after a few years. A local pub or post office that was vital to a community in 2019 is still vital in 2025.

In our view, these amendments sit entirely within the spirit of the Bill by giving communities more tools to strengthen local decision making, and not limiting them with arbitrary timeframes. I urge the Minister and the Committee to cut the red tape and strengthen local power, and I ask her to consider reviewing the time limit.

[Miatta Fahnbulleh]

I thank the hon. Lady for tabling these amendments. We absolutely want to ensure strong protections for assets of community value, and the five-year listing period recognises the need of the community in that period of time. We also recognise that the need and desire of the community may change over time. Something that is an asset of community value in year one might not be an asset of community value in year six or seven. This allows a review process to happen.

We are also trying to balance the protections that we absolutely want to give to communities with those of the asset owners, and to ensure it is proportionate. We think that five years is a fair balance between both parties. I am also mindful of the risk that if we designate assets of community value permanently, local authorities may be incentivised to take tougher judgments on requests from communities to list assets of community value. On balance, when we think about the incentives to create more assets of community value, protections that we need to give to communities and protections for the asset owners, five years feels like the right amount of time to allow the system to operate in a way that is fair for all parties. For that reason, I urge the hon. Member for Stratford-on-Avon to withdraw her amendment.

[Manuela Perteghella]

Would the Minister consider looking at extending that five years to give a bit more time to the community to—

[The Chair]

Order. The Minister has already spoken. You are just winding up.

[Manuela Perteghella]

Okay. I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

[Manuela Perteghella]

I beg to move amendment 34, in schedule 27, page 265, line 41, after “economic,” insert “, environmental,”.

This amendment would require environmental interests to be considered as a criterion for establishing a local authority’s area as land of community value.

[The Chair]

With this it will be convenient to discuss the following:

Amendment 35, in schedule 27, page 266, line 4, after “economic,” insert “, environmental,”.

See explanatory statement to Amendment 34.

Amendment 36, in schedule 27, page 266, line 12, after “economic,” insert “, environmental,”.

See explanatory statement to Amendment 34.

Amendment 37, in schedule 27, page 266, line 18, after “economic,” insert “, environmental,”.

See explanatory statement to Amendment 34.

[Manuela Perteghella]

These amendments are interlinked. First, I would like to speak in support of the Bill’s provisions to protect assets of community value under the new sporting category. Those are important, and we are all delighted to see them in the Bill. These are key community hubs, including for our grassroots sports clubs and particularly for our young people. They play a fundamental role in building local pride, building engagement and developing young people’s skills. I thank the Government for these welcome provisions.

In that context, the Bill’s exclusion of environmental assets of community value seems stark. Social, economic and environmental impacts are often grouped together in legislation, and yet although sporting assets have been added to the group of possible categories for an asset of community value, environmental assets have not. The environmental impact is absent. We can only assume that exclusion is a protection against environmental considerations being used as a mechanism to prevent development. Perhaps the Minister can explain that in her response. This seems needlessly reductive, because the positives outweigh the negatives, and the negatives can be mitigated if there is a concern.

There is widespread support for these amendments. We worked on them with Locality and the Community Land Trust Network, in conversation with them I heard about sites all across the country that could be protected. I am sure that Members can think of many examples in their constituencies. Given the value of environmental conservation—the value of nature for its own sake, as well as its benefits for public health and mental health—we ask the Minister to consider including provision for considering environmental impact in assets of community value. It would be of huge value to my constituents to be able to ensure that measures are in place to protect the environmental value of, for example, Meon Vale woods, which they fought to save and which has become a local nature reserve. Depending on the Minister’s response, I will press amendment 34 and consequential amendments 35 to 37 to a vote.

[Miatta Fahnbulleh]

The Government absolutely want to ensure that the community right to buy can be used to protect a wide range of assets. That already includes a wide range of environmental assets where communities can demonstrate an existing historical, social or economic purpose, including allotments, woodlands, parks and other green spaces. We know that many of those can already be found on local lists of assets of community value.

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Division 60

Ayes: 2

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Green Party: 1
Liberal Democrat: 1

Noes: 9

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Labour: 9

[Manuela Perteghella]

I beg to move amendment 373, in schedule 27, page 266, line 5, at end insert—

“(c) it is land of on which there are buildings of historical significance.”

This amendment would expand the criteria for a local authority classifying land as of community value to include land on which there are buildings of historical significance.

[The Chair]

With this it will be convenient to discuss the following:

Amendment 40, in schedule 27, page 267, line 23, at end insert—

“(1A) Where a local authority is responsible for assessing whether land in its area is a sporting asset of community value, the Secretary of State must ensure the authority receives adequate funding to make the assessment.”

This amendment would require the Secretary of State to ensure that local authorities receive adequate funding to assess whether land in their area is a sporting asset of community value.

Amendment 374, in schedule 27, page 276, line 18, at end insert—

“(2A) If there is no preferred community buyer, the Secretary of State must ensure the relevant local authority receives financial support to buy the land of community value.”

Amendment 42, in schedule 27, page 279, line 17, at end insert—

“(2A) The relevant local authority must as far as reasonably practicable support the preferred community buyer in securing the purchase land of community value.”

This amendment would require local authorities to provide support for the preferred community buyer in agreeing and meeting an offer to buy land of community value.

Amendment 41, in schedule 27, page 280, line 28, at end insert—

“(9A) The Secretary of State must ensure local authorities are adequately funded to meet the expenses of a valuation under this section.”

This amendment would require the Secretary of State to ensure that local authorities receive adequate funding to meet the expense of land valuations in their area.

Amendment 249, in schedule 27, page 283, line 8, at end insert—

“(f) matters relating to requirements about special consideration for land of community value in planning applications affecting an area of land of community value.”

This amendment would allow the Secretary of State to create guidance about special consideration for land of community value in planning applications affecting an area of land of community value.

New clause 51—Community ownership fund—

“(1) The Secretary of State must make regulations which establish a community ownership fund within six months of the passage of this Act.

(2) Regulations under subsection (1) are subject to the negative procedure.

(3) Regulations under subsection (1) must make provision for any strategic authority to apply for funding of up to £2 million to support any—

(a) voluntary and community organisation, or

(b) parish or town council,

to purchase of an assets of community value they determine is at risk in their area.”

This new clause would require the Secretary of State to establish a Community Ownership Fund to which strategic authorities may apply for funding.

[Manuela Perteghella]

Amendments 40 to 42 and 249 seek to improve how the assets of community value system works in practice. Amendment 40 would require the Secretary of State to ensure that local authorities are adequately funded to carry out assessments of whether land is a sporting asset of community value. Amendment 41 makes the same point on valuations, and amendment 42 would require local authorities, as far as reasonably practicable, to support the preferred community buyer in securing the purchase of land of community value. Finally, amendment 249 would ensure that community value does not stop mattering once a planning application is lodged by allowing the Secretary of State to issue guidance requiring the planners and His Majesty’s Planning Inspectorate to give special consideration to land of community value when making decisions.

Amendment 40, which would make sure that local councils are properly funded when assessing whether land is a sporting asset of community value, is vital in identifying and assessing sporting assets. It must not be a simple tick-box exercise, because evidence has to be gathered and local groups have to be consulted, and competing claims between landowners and residents often have to be resolved.

This can be done only with time, specialist knowledge, consultants and often site visits, all of which cost money. As we know all too well, and as the Minister has reminded us today, many councils are already stretched thin. Without additional funding, there is a very real risk that this new protection for sporting assets will be inconsistent or, at worst, non-existent.

For the same reasons, amendment 41 would require adequate central funding for land valuations. If councils cannot afford them, communities face delay and uncertainty and opportunities are lost. Adequate central funding would make the process faster, fairer and more consistent across the country. With this financial support in place, more communities will be able to come together to make a bid for their grassroots sports clubs and other important cultural assets in their communities.

Amendment 42 goes to the heart of community empowerment, requiring councils as far as is reasonably possible to support the preferred community buyer by guiding them through the process and helping them to gain access to expert advice and funding. Right now communities have the right to bid, but they are left on their own; this amendment would turn that right into success.

Amendment 249 would ensure that community value is not ignored in the planning system. At present, even a listed community site can be granted planning permission for demolition or redevelopment; it is my understanding that there is nothing in regulations to ensure that consideration is given to the fact that a particular site is on a list of assets of community value. This amendment would require planning authorities to give special consideration to the community value of such land before approving development. It would not block development, but would ensure that community value is considered and that the community’s voice is properly heard. It is a modest improvement.

Without these improvements to the legislation, the right to protect community assets risks being just words on paper. When it becomes a genuine tool for local and community empowerment, which is the welcome title of this important Bill, it will live up to the spirit of devolution that we all want to deliver.

I turn now to the amendments in the name of my hon. Friend the Member for Richmond Park (Sarah Olney). Amendment 373 would include historically significant buildings as community assets, while amendment 374 would support councils to buy land if there is no community buyer; if no community group comes forward, the local authority can step in.

Amendment 373 would expand the legal definition of what can be classed as an asset of community value to include land or property with buildings of historical significance. We all have those in our constituencies: even if their current use is not community based, they are still part of our built heritage, and they shape our sense of place, so they are really important. While the current asset of community value system focuses mainly on social use, some historically important sites might not fit neatly into that community use test, even if they are locally important and of historical significance.

Historical buildings are obviously important in their own right, of course, which is why we have the listed building system, but they also connect people to the story of their place and past industries—the movements that shaped their community. When those buildings disappear, communities lose part of their collective memory and character, and once they are gone, they cannot be replaced. That is really important.

More than that, though, historical buildings are community assets in waiting. Many historical sites, such as disused chapels, mills, railway stations, schools and places that are part of our industrial heritage can be restored into vibrant hubs, cafés, arts venues and co-working spaces. They can have a community-based use, and protecting them buys time for communities to develop and put forward a viable plan to the authorities, rather than watching the bulldozers move in. With imagination, we can help these historical buildings to become community hubs.

Amendment 374 is designed to support councils to buy land if there is no community buyer, by requiring the Secretary of State to provide financial support to the local authority to purchase the land itself. This is an essential amendment, because not every community will have the resources or capacity to raise the funds, especially in disadvantaged communities; even if they want desperately to save it, there is no recourse. No community anywhere in England should lose its assets simply because local people cannot afford to buy it or act fast enough. The amendment would mean that councils could step in temporarily, for example holding the assets in trust or leasing it back to the community once funding or a long-term plan is secured.

I will move on to new clause 51 tabled by my hon. Friend the Member for South Devon (Caroline Voaden). The clause would create a statutory community ownership fund, which the Secretary of State must set up within six months of the Bill becoming law. Under this new clause, strategic authorities could apply for up to £2 million to support community groups or parish and town councils in buying assets of community value that are at risk of being lost; having been on the list for five years, they can be dropped without the community knowing.

The regulations to create and run the fund would follow the negative procedure, meaning Parliament could annul them, but not amend them. The new clause would give the community real financial teeth, turning the right to bid into a right to buy, giving the tools so that the community can act. Communities, as hon. Members will know from experience, often identify assets worth saving, but they lack the up-front capital to act. A permanent statutory fund would give councils and community organisations the power and financial support to ensure that assets of community value stay and are preserved for community use. By placing it on to a statutory footing, the clause will make community ownership funding a permanent part of local government support for community empowerment, and not just a pilot scheme.

[Sean Woodcock]

Briefly, I want to put on the record how much I value the protection of sporting assets. I have already mentioned Chipping Norton in my constituency, and how the football club there lost its land to a rather unscrupulous developer the best part of a decade ago and ever since has not been able to play in the town itself; it has to play almost 10 miles away. The protections are very close to my heart and I very much support them.

The hon. Member for Stratford-on-Avon talked about pubs. I have numerous pubs in my constituency with active campaigns—the Fox Inn and the Bell Inn, for example—where the community is very active and keen to take on the pub to save it so that it is not lost to the community.

I rise to speak, however, because sometimes pubs close down and, with the best will in the world, are unable to reopen, despite the efforts of the community and people nearby. There is a real danger of unintended consequences if the amendment puts in too much protection and removes the flexibility that is necessary to allow historical buildings to survive.

I offer an example from my constituency, where massive efforts were put in to retain a particular pub. The brewers who owned it put it out to all sorts of people. Unfortunately, the amount of money required to bring it back up to standard made it totally unviable, not only for other brewers or people wanting to take it on, but for the community. The pub was in a historical village, and the real danger is that we wrap it up so much in protection and regulations that, in trying to save the pub, we will lose the historical building. If the landlord is not able to do anything with it, it can fall to rack and ruin, and even with the best will in the world we can end up losing that historical building. That pub ended up becoming a house; granted, it is no longer a pub or a community asset, but the building is retained and is no longer a dilapidated ruin in the middle of a village.

Although the amendment comes from a really good place, I cannot support it. I support the Government making it easier for communities to get involved, giving them more time and granting them more powers to take on historical pubs that are important parts of the community, but there is a real danger that the amendment could have an unintended consequence: a historical building being lost purely because it is so wrapped in regulation and protection that nobody is able to do anything with it. I would therefore vote against it.

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[Miatta Fahnbulleh]

I will try to work through all the amendments. Let me start with amendment 373. I appreciate the commitment of the hon. Member for Stratford-on-Avon to protecting historical assets. The Government are proud to support communities to celebrate heritage buildings and assets, and there are already protections in place for them to do that. Historical buildings that are valued by local communities, but do not meet the criteria to be nationally listed, can be listed by local authorities as non-designated heritage assets. That protects them through the national planning policy framework, so the protection is already there.

On amendment 40, I reassure the Committee that we already have established processes in place to ensure that local authorities are adequately funded to deliver new policies, and this is no exception. The new burdens doctrine requires that all new responsibilities placed on local authorities are properly assessed and fully funded by the relevant Department. We are assessing the cost of the process for local authorities and will provide new burdens funding accordingly.

On amendment 41, I can confirm that we are assessing the costs of independent valuation to local authorities. Where the owner and community buyer cannot agree a purchase price for an asset through negotiation, the local authority must appoint an independent valuer. We will provide new burdens funding to meet those costs accordingly, once assessments have been finalised and tested with local government. I hope that that provides some assurance.

On amendment 374, we know that some community groups may not come forward as they do not have the capability or capacity to put together a bid for an asset. The intention of the 12-month sale period is to give communities time to organise and to raise the funding required. We will continue to work with community organisations to ensure that they have the support to do so. Requiring local authorities to step in to purchase assets where there is no community buyer would put too much of a burden on local authorities, and we could end up with local authorities taking over and having to run theatres and pubs. Although those assets might have value for the community, that does not feel appropriate for a local authority.

We think we have the balance right and that this measure is proportionate. As my hon. Friend the Member for Banbury said eloquently, however much we might want a particular asset to stay in its original form, sometimes that may not be viable. We do not want buildings becoming dilapidated when they could be retained in a different way.

On amendment 42, we are already putting requirements on local authorities to enable and facilitate this process. For example, they must arrange that joint meeting between the asset owner and the community buyer at the start of the process and enable that process of negotiation and, as I have said, local authorities again need to step in to provide the independent valuer if negotiations fail. We think that is the right role for the local authority, not least because it has to be an arbiter in the process.

However, we want there to be enough capability across all our communities, irrespective of the level of social capital, to be able to take on these powers. There is a range of community organisations with the expertise and experience to provide this kind of support to communities, such as Plunkett, Power to Change and Locality, and we are working with those organisations on the additional support that they can provide to communities across the country.

Amendment 249 would restrict what an asset owner can do with their property once listed. We think that it is ultimately up to local planning authorities to consider planning applications in accordance with their development plans and other material considerations. That could include the listing of an asset of community value. The weight afforded to material considerations in making the decision will be decided on a case-by-case basis, and we think it is right that that is left to the local planning authority.

Critically, the national planning policy framework already includes important safeguards to protect against the unnecessary loss of social, recreational and cultural facilities that serve an important value for the community. We think that the balance between what already exists in the planning system and the protections that we are providing through the community right to buy is right and appropriate.

Finally, on new clause 51, let me be clear: this Government are absolutely committed to empowering our communities. We are giving communities everywhere the power to take ownership. Our pride in place programme, which the hon. Member for Brighton Pavilion talked about, is providing £5 billion over 10 years to support 244 places, to enable and support them to take on such community assets of value.

We will continue to review this area, because we are committed to communities having a stake in and ownership of their assets, and we are committed to doing our part as a Government to enable them to do that. With that, I ask the hon. Member for Stratford-on-Avon to withdraw her many amendments.

[Manuela Perteghella]

I will not press the amendments to a vote, although my hon. Friends might table them again on Report, but I will press new clause 51 to a vote later on. I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

[Miatta Fahnbulleh]

I beg to move amendment 236, in schedule 27, page 275, leave out lines 23 to 25 and insert—

“(b) the relevant local authority has determined that the preferred community buyer does not meet the progress requirements after any of the review periods (see section 86U), or”

This amendment is consequential on Amendment 223.