English Devolution and Community Empowerment Bill: LGA Briefing

This briefing includes LGA views and key messages ahead of the second reading of the Bill in the House of Commons on 2 September 2025.

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About the Local Government Association (LGA)

The Local Government Association (LGA) is the national voice of local government. We are a politically-led, cross-party organisation that works on behalf of councils to ensure local government has a strong, credible voice with national government. 

We aim to influence and set the political agenda on the issues that matter to councils, so they are able to deliver local solutions to national problems. 

Introduction

The Local Government Association (LGA) welcomes further devolution to England. This is a core ask of our sector, and the LGA has long championed the genuine devolution of powers to local places. The English Devolution and Community Empowerment Bill (EDCEB) presents a rare and important opportunity to embed that ambition into legislation. However, the legislation as currently drafted, is in danger of not delivering on its own core ambition through lack of clarity around how strategic authorities (SAs) will work with councils.  

As devolution moves ahead in a more consistent and widespread way, we must ensure the model is not narrowly focused on mayors alone. The success of SAs relies on councils, communities, and public services working together with mayors in true partnership. Councils are central to how devolution works in practice and the Bill should do more to recognise this. 

This briefing outlines the LGA’s position on the Bill’s provisions, highlighting areas of support, concern, and opportunities for improvement, following extensive consultation and engagement with councils across England.  

If you are interested in working with us to ensure the Bill better serves councils and their communities – or if you have a particular interest in any of the areas where we are seeking amendments – please contact [email protected]. 

The LGA has worked extensively to ensure that this briefing reflects the wide range of views held across local government, including in consultation with our members through policy boards and the creation of a member-led task and finish group to explore the Government’s White Paper in detail.  

Due to the timing of the second reading of the Bill, it has not yet been possible to confirm the position of the new LGA Reform UK political group. The LGA will therefore update and reissue this briefing ahead of the Bill’s committee stage if necessary.  

Key messages

Role of councils

The Bill should enshrine the role of councils in shaping and delivering devolution. This means clearly defining the role for councils in delivering each of the competencies, clear expectations for how councils will be involved in regional strategies and strengthening the role of council leaders in the governance structures of SAs. We would also welcome clarity through guidance on the delivery of the health duty to set out roles and responsibilities of SAs and local government, recognising the statutory leadership of local government in promoting health and wellbeing.

Governance

To ensure that consensus is at the heart of English devolution, we are advocating for councils to have a stronger voice in formal governance arrangements. This includes the removal of the mayor’s casting vote in instances where decision-making is tied for spatial development strategies and local transport plans; a review of simple majority voting after 12 months, with a view to amending voting thresholds where needed; and the option for local places to adopt weighted voting, where there is local need due to large population disparities between constituent councils, and local support.

Fiscal devolution

A statutory power within the Bill for local areas to impose a levy on overnight stays in accommodation within their area, to be known as a “local tourism levy”. A levy would provide revenue to support sustainability and development of the local visitor economy. Genuine devolution means giving local areas the powers and tools to shape their own futures. This includes the ability to raise and control resources, define local priorities, and lead integrated public services in ways that reflect local needs.

Strategic competencies

Expansion of the devolution framework to include more detail on the competency surrounding environment and climate change, inclusion of a competency on culture, tourism and creative industries and a continued role for local government within the transport competency.

Pensions

Councillors and mayors should be permitted to join the Local Government Pension Scheme (LGPS) again.

Ministerial directive

Support for additional statutory tests and parliamentary oversight to limit the use of the ministerial powers included in the Bill to establish, expand and impose mayors on SAs without local consent. These powers should only be used as a last resort, to avoid devolution islands, where local agreement cannot be achieved. 

Additional messages 

Operational Clarity

The Government now needs to come forward with a clear timetable for those areas not part of the Devolution Priority Programme (DPP) or home to an existing combined authority. This timetable should provide a framework for the wider integration of public services, including Integrated Care Boards (ICBs), which risk being reorganised twice due to a misalignment of Departmental processes.  

As it currently stands there is insufficient financial detail in the Bill, specifically the financial arrangements relating to mayoral SAs. Clarity is needed over how SAs will be funded over the long term. Over reliance on mayoral precepts and levies risks sustainability of SAs and is predicated on whether mayors choose to enact these revenue raising powers. New powers and responsibilities must be backed by sufficient resources, but these cannot be at the expense of existing, hard-pressed council budgets.

Committee governance system

Currently, 38 councils operate under a committee governance system, with several having held democratic referenda to arrive at this position in recent years. These democratic decisions should be respected. Councils using the committee system should be allowed to retain their governance system until they or their communities choose to move to a leader/cabinet model.

A fair settlement for London

We welcome the recent confirmation of an integrated settlement for London. A combined board model, as proposed by London local authorities, would build on this important step by ensuring that councils have a formal decision-making role within the Greater London Authority (GLA). This would bring London in line with other devolution deals and enable better collaboration, better outcomes, and better value for money in public services across the region.

Member standards and conditions

The current standards regime is not fit for purpose. The Government has committed to reforming the system, but these reforms should align with the EDCEB and clearly apply to directly elected Mayors, deputy mayors and commissioners. If not, newly formed authorities may need to revise their standards processes shortly after being established.

Similarly, the Government has committed to introducing remote attendance for councillors and legislating to protect councillors’ home addresses from publication. These reforms should also be incorporated into the EDCEB to ensure that new authorities are established with these protections and powers in place from the outset.

Audit

The provision requiring local authorities to have an audit committee, and for that committee to have at least one independent member, must be handled carefully. Government must issue formal guidance on what constitutes “independent”, the appropriate skill requirements, renumeration levels and a solution for those authorities who are unable to recruit suitable local capacity, potentially through a national pool.

Neighbourhood governance

The LGA is committed to the principle that local areas are best placed to decide what form of community engagement is appropriate for their context. It is vital that neighbourhood-level committees are designed in a way which empowers communities to engage with wider public services, such as the NHS and police, and the voluntary and community sector. The LGA wants a requirement for the involvement of health, police and fire services in neighbourhood committees.  

 

Part 1: Strategic authorities

The strategic authorities 

Clause 1: Strategic authorities 

This clause provides the definitions for a new category of authority in England, known as the 'strategic authority' (SA).  

Subsections (3) to (6) set out the different categories of SA under which a local authority, combined authority (CA) or combined county authority (CCA) may be designated.  

Subsection (6) designates the Greater London Authority (GLA) as an established mayoral strategic authority.  

LGA view

The LGA supports this clause which formalises devolution arrangements through statute.  

But, if the EDCEB is to fully realise its ambitions, it must enshrine councils’ role in shaping and delivering devolution. This means:

  • A strong role for councils in delivering each of the competencies of SAs, which builds on each partners’ respective strengths, experience, and powers. This should be enshrined in law, alongside clear expectations for how councils will be involved in shaping and delivering regional strategies.
  • Ensuring that council leaders have a clearly defined and meaningful role in the governance structures of SAs, which reflects their key role in local leadership.  
  • Ensuring that devolution aligns with wider reforms to planning, the NHS, the police, and fire services, and probation services, so that services’ boundaries are aligned and regional authorities are well-placed to collaborate with one another.
  • Implementing a broad and flexible approach to the list of SA competencies, to allow SAs to request additional powers tailored to local needs.
  • Meaningful fiscal devolution, so that authorities have the tools and resources to match their responsibilities and respond to local challenges. This should include a tourism levy which enables councils to invest in the local services, infrastructure, and amenities that support the UK’s valuable tourist economy.
  • A commitment to local choice on how communities can engage with their local governments. 

The areas of competence 

Clause 2: Areas of competence 

This clause lists the areas of competence which strategic authorities will have: 

  • skills and employment support
  • housing and strategic planning
  • economic development and regeneration
  • the environment and climate change
  • health, wellbeing and public service reform
  • public safety. 

These provide the broad thematic areas which functions of SAs are categorised under, as well as the areas from which Government can provide new functions for SAs in the future. They also define the matters on which mayors can convene meetings with local partners. 

LGA view

The LGA seeks to amend this clause to see culture (arts, heritage and libraries), tourism and creative industries (as defined in the Industrial Strategy) recognised on a national footing as drivers of the local economy, of place-based development and of wellbeing through the form of an additional competency. These sectors contribute to national and regional growth, and this should be formally reflected within the devolution framework.

This additional competency would empower mayors, working in partnership with constituent authorities, to identify strategic collaborations at a regional level, taking account of any sub-sector regional specialisms or strengths (such as screen industries or tourism). It is crucial that this competency complements, not duplicates, the existing duties and responsibilities held by local government. It would assist those six mayoral SAs to invest the devolved £150 million Creative Places Growth Fund, and the Tees Valley Creative Investment Zone funding, as announced in the Industrial Strategy. Constituent authorities would remain responsible for place-based cultural strategy and delivery, tailored to local needs and opportunities.  

A mayoral competency on culture, tourism and creative industries would provide: 

  • Strategic leadership and convening power.  
  • Integrated place-based planning linking culture, tourism and creative industries with transport, housing, health, and regeneration 
  • Enhanced coordination of funding and investment strategies 
  • Improved evidence for decision-making and data for impact measurement.  

The English Devolution White Paper (EDWP) set out commitments to empower SAs to act on climate change and the environment, including in helping deliver the Warm Homes Plan, the Local Power Plan and Local Nature Recovery Strategies.  

It is disappointing that the Bill does not include further detail on how devolution will empower local action on climate change and the environment, beyond mention of environment and climate change as an area of competence in this clause. This is a priority for local government, and an area where local approaches can achieve significantly better outcomes for less cost, as has been demonstrated by Government-funded research. As a starting point, the LGA seeks to amend the EDCEB to transpose commitments set out in the EDWP on environment, energy generation and energy systems, and Warm Homes into the Bill with similar levels of detail that are included for other competencies.  

The LGA also seeks statutory duties and powers for local authorities, along with sufficient funding, and robust support to lead on climate action. Over the coming months the LGA will undertake further analysis on the findings and set out our next steps for developing detailed, evidenced, and costed proposals for this.   
 

As stated above, the LGA seeks to amend this Bill to set out a statutory role for councils in delivering each of the areas of competence, which builds on each partners’ respective strengths, experience, and powers. This should be supported by guidance for the delivery of strategic competencies to provide clear expectations for how councils will be involved in shaping and delivering regional strategies. The guidance on developing Local Growth Plans, should be amended to include a mandatory duty for this to be co-produced with local government.  

Combined authorities and CCAs 

Clause 4: Combined authorities and CCAs – establishment, expansion and functions 

Clause 4 introduces Schedule 1 of this Bill. Schedule 1 amends provision in the Local Democracy, Economic Development and Construction Act 2009 and the Levelling-up and Regeneration Act 2023 concerning the establishment, expansion and conferral of functions on combined county authorities (CCAs), streamlining the process for establishing and expanding CAs and CCAs, with the number of consent points and consultation requirements being reduced, and the statutory test simplified. 

CAs and CCAs will be able to be established, and existing CAs or CCAs changed (including providing for a mayor) through ‘locally-led’ and ‘Secretary of State-led’ routes. There will also be new enabling provisions for the Secretary of State to carry out these processes without local consents. 

LGA view

It is right that areas come together and agree to form new SAs. The LGA is concerned by the breadth of this clause. We need commitment to ensure that the Ministerial powers to establish, expand, and impose a mayor on SAs, without local consent, will be used as a last resort to limit top-down reorganisation.  

To limit the use of this power before it is absolutely necessary to avoid devolution islands, the LGA wishes to see further safeguards included in the Bill, in the form of an additional statutory test and parliamentary oversight.  

The principles included in the EDWP to determine appropriate geographies for any new SAs should be formalised in the Bill as a statutory test: 
 

  • Scale: Have a comparable size to existing institutions, enabling effective delivery of devolved functions.  
  • Economies: Reflect functional economic areas, including local labour markets and current and potential travel-to-work patterns. This should include consideration of rural economies, and where travel to work areas are small and fragmented. SAs must be capable of supporting coherent economic strategies, including Local Growth Plans and Spatial Development Strategies. 
  • Identity: Reflect a coherent local identity that supports public engagement and democratic accountability. Demonstrate how residents will be able to recognise, engage with, and hold to account their devolved institutions.  
  • Contiguity: Contiguous across current and potential constituent councils. Where contiguity is not currently met, there must be a clear and agreed plan for achieving it through local government reorganisation.  
  • No ‘devolution islands’: Must not create devolution ‘islands’ i.e. areas left too small to form viable authorities or lacking natural partners. Demonstrate how surrounding areas will be integrated or supported to ensure inclusive devolution. 
  • Delivery: Be capable of delivering key strategic functions, including, Spatial Development Strategies, Local Transport Plans and Get Britain Working Plans. Show evidence of institutional capacity and readiness to implement devolved responsibilities.
  • Alignment: Promote alignment between devolution boundaries and other public sector boundaries, including health, policing, transport and fire. Minimise administrative complexity and duplication. 

The LGA also seeks consideration of additional parliamentary oversight through affirmative resolution procedure, requiring publication of a geography assessment demonstrating how the proposal for establishment or expansion of a SA meets this statutory test.   

Clause 6: Combined authorities and CCAs: decision-making and validity of proceedings 

This clause introduces general decision-making arrangements for CA and CCA functions, whilst still providing the Secretary of the State with the power to provide specific decision-making arrangements for a function in a specific CA or CCA where appropriate.  

Subsection (2) amends the 2023 Act by inserting new sections 13A and 13B which sets out the default provision for how decisions should be made in a CCA.  

The new section 13A(2) of the 2023 Act provides that any decision of a non-mayoral CCA is to be decided by a simple majority of the voting members present and voting on that question at a meeting of the CCA, with section 13A(3) providing that any decision of a mayoral CCA is to be made by a simple majority of the voting members present and voting on that question at a meeting of the CCA, which must include the mayor, or the deputy mayor acting in place of the mayor.  

Section 13A(4) of the 2023 Act provides that if there is no mayor of a mayoral CCA and either no deputy mayor or the deputy mayor cannot vote, then a decision must be made by a simple majority.  

Section 13A(5) of the 2023 Act sets out that each voting member as defined by section 13A(8) has one vote and that tied votes do not pass.  

Section 13A(6) makes sections 13A(1) to (5) subject to provision made by any other legislation, with section 13A(7) making particular reference to the provision in Chapter 1 of Part 2 of the 2023 Act and to Schedule 23 of this Bill.  

Section 13B provides that vacancies or defective appointments of members do not invalidate the proceedings of the CCA.  

Subsection (5) amends the 2009 Act by inserting new sections 104CA and 104CB.  

The new section 104CA of the 2009 Act provides that any decision of a non-mayoral CA is to be decided by a simple majority of the voting members present and voting on that question at a meeting of the CA, with section 104CA(3) providing that any decision of a mayoral CA is to be made by a simple majority of the voting members present and voting on that question at a meeting of the CA, which must include the mayor, or the deputy mayor acting in place of the mayor.  

Section 104CA(4) provides that if there is no mayor of a mayoral CCA and either no deputy mayor or the deputy mayor cannot vote, then a decision must be made by a simple majority.  

LGA view

Whilst the LGA recognises the need for effective decision-making, we are concerned at the prospect of moving to simple majority voting in MSAs. We believe that there is a need for safeguards in decision-making. 

To ensure that consensus is at the heart of English devolution, we are advocating for:   

  • The removal of the mayor’s casting vote in instances where decision-making is tied for Spatial Development Strategies and Local Transport Plans  
  • The English Devolution and Community Empowerment Bill to include a review of simple majority voting after 12 months, and additional reviews at five-year intervals thereafter, with a view to amending voting thresholds where needed.  
  • The Mayoral Capacity Fund to be at least doubled and secured as a long-term government commitment, to enable the effective delivery of overview and scrutiny functions.  
  • Local places to have the option to adopt weighted voting, where there is local need due to large population disparities between constituent councils, and local support. In areas which are expected to undertake local government reorganisation, there would be review points to possibly phase out this arrangement as population disparities are addressed.  
  • In line with their constituent local authorities, it should be left to individual combined authorities to identify an appropriate level of quoracy for Overview and Scrutiny, rather than the current prescription of two-thirds in legislation. 
  • The language contained within existing and future devolution legislation should reflect political groups rather than political parties to recognise the vital role of independent politicians. This should reflect the language contained in the Local Government and Housing Act 1989. 

Clause 8: Combined authorities and CCAs: designation as established mayoral strategic authorities 

This clause inserts new sections into the Local Democracy, Economic Development and Construction Act 2009 (the 2009 Act) and the Levelling-up and Regeneration Act 2023 (the 2023 Act) to provide the Secretary of State with the power to designate a mayoral strategic authority as an established mayoral strategic authority.  

LGA view

Many of our members within existing SAs are keen to harness further devolution and funding through being designated as ‘established’ and securing the integrated settlement. We seek clarity from government through policy and guidance on how SAs will be determined to have met the eligibility criteria set out in the EDWP to be designated established mayoral SAs (EMSAs).

We welcome the clarity provided in the supplementary Integrated Settlement policy document setting out the approach to determining the quantum of integrated settlements ahead of future Spending Reviews, principles for funding formulae, and that both the formulae and future integrated settlement agreements will be made public.

While enabling 10 per cent flexibility to direct funding between integrated settlement pillars is a positive step forward, this is still restrictive. The LGA is keen to see all areas have the flexibility and freedom to fully invest funding according to local need and the pursuit of better outcomes for business and communities. 

Clause 9: Appointment of commissioners by mayors 

This clause inserts provisions into the Local Democracy, Economic Development and Construction Act 2009 (the 2009 Act) and the Levelling-up and Regeneration Act 2023 (the 2023 Act), enabling the mayor of a combined authority (CA) or combined county authority (CCA) to appoint commissioners to assist on one of the “areas of competence” as defined in clause 2 of this Bill.  

This clause provides that a mayor may appoint up to seven “commissioners” to act as leads in relation to the seven “areas of competence” as listed in clause 2 of this Bill. The mayor of a CA or CCA may arrange for a commissioner to assist the mayor in the exercise of either the mayor’s general functions, or to otherwise assist the mayor in relation to the exercise by the CA or CCA of its functions. 

LGA view

We recognise that the appointment of commissioners could add sector-specific value to SAs’ vision-setting. We welcome the safeguards set out in the Bill to enable removal of commissioners.  

Commissioners will fulfil a significant role in new strategic authorities and should be held to the same high standards as others in public life. Commissioners should be explicitly in scope of anticipated reforms to the standards regime for local authorities, creating a common standard of conduct and behaviour for all those in public life in local and regional government.

However, SAs should operate a ‘local first’ approach. This means in principle, SAs should draw on the wealth of experience and expertise that is present across local government on a range of place-based services, local knowledge and understanding, and the needs and priorities of communities within the region before any commissioners. The role of a commissioner should not seek to duplicate, nor replace local council experts as constituent members to shape investment into and delivery for places.  

Clause 10: Combined authorities and CCAs – allowances for members with special responsibilities 

This clause inserts sections into the 2009 and 2023 Acts to provide CAs and CCAs the ability to pay allowances to members who have special responsibilities, for work done in service of statutory instrument that prevent CAs and CCAs from paying their members other than for travel and subsistence.  

LGA view

The LGA supports this clause and welcomes the change in legislation to enable remuneration for members for work done in service of the CA or CCA, above and beyond travel and subsistence. 

Clause 11: Mayoral combined authorities and CCAs – precepts 

This clause enables the mayoral precept to be used as a source of revenue which can be spent across all functions of MCAs and MCCAs. 

LGA view

The LGA welcomes expansion of the precept to enable MSAs to utilise their precept as a source of revenue across all functions. However, it is important for government to remain alive to different mayors’ decisions as to whether to utilise the precept, and to its full extent, and how this will affect financial positions and capabilities of SAs. Precepts should not be relied upon to ensure the financial sustainability of authorities.  

In regard to the power of the Directly Elected Mayor (DEM), the mayoral precept is set to cover spend on MSA functions. Currently, the precept is only for mayoral functions. In this context, it is felt that decision-making on the precept should reflect the decision-makers for the functions it will cover. 

The Greater London Authority 

Clause 15: Additional functions of the Greater London Authority 

This clause provides the Secretary of State with the power to confer additional powers on the GLA and its functional bodies without the need for primary legislation in specific circumstances.  

LGA view

The LGA welcomes the commitment from government to examine the Greater London Authority Act 1999 to remove any unnecessary or dated provisions and ensure the Act is fit to support the capital’s continued growth and prosperity. We also welcome the confirmation of an integrated settlement for London, as announced at the spending review, for 2026/27.  

However, the legislation, as currently drafted, does not provide significant new powers or responsibilities for the GLA nor London boroughs to evolve devolution in the capital. The LGA is keen to work with government to enable further devolution to the capital, in partnership with London Councils and our London members.  

It is positive to see included in the Bill guidance that before devolving or piloting a power to the GLA or a functional body, the government or the GLA will need to consult London borough councils, the City of London and the London Assembly, in line with existing arrangements for when the government designates a power to the mayor.  

A Combined Board model, as proposed by London local authorities, would build on this important step by ensuring that councils have a formal decision-making role within the GLA. This would bring London in line with other devolution areas and enable better collaboration, better outcomes, and better value for money in public services across the region. The LGA supports amending the Bill to include this governance arrangement for the GLA and London boroughs. 

Annual report on devolution  

Clause 19: Report under section 1 of the Cities and Local Government Devolution Act 2016 

New section 1(1) of the 2016 Act now requires that the annual report covers actions under Parts 1 and 2 of this Bill and any other enactments from other relevant legislation, as well as actions covered by previous legislation.  

LGA view

The LGA welcomes this provision and the expansion of requirements under the 2016 Act to include provisions included in the EDCEB.  

Part 2: Functions of strategic authorities and mayors

Mayoral powers of competence 

Clause 21: Power of mayors to convene meetings with local partners  

This clause provides the mayors of strategic authorities (SAs) with the power to convene stakeholders who operate within the SA’s geographical area on matters relating to their areas of competence. The clause places a corresponding duty on those stakeholders to respond to a request when a mayor notifies them of their intention to convene such a meeting. 

LGA view

The LGA supports a place-based approach to services, and the success of SAs relies on councils, communities and public services working together with mayors in true partnership. However, on many of the issues that matter most it is local government which is best placed to make the biggest and fastest difference to the prosperity and wellbeing of citizens, as providers and convenors of key public service.

The LGA seeks clarity through guidance to clearly set out roles and responsibilities of the mayor and local authorities within the areas of competence to ensure the convening power of the mayor does not duplicate nor replace that of local government, and ensure alignment of neighbourhood, local and regional action.   

Clause 22: Duty of mayors to collaborate 

This clause provides a formal process by which the mayors of neighbouring SAs can make and respond to requests for collaboration. 

LGA view

A power to convene stakeholders across regions is important to ensure coordination across public services and regional priorities.  

The LGA is calling for clearer statutory roles for councils in delivering the broad 
range of SA statutory functions. This could be delivered through the expansion of the proposed duty to collaborate, such that all local partners are required to 
engage constructively, actively, and on an ongoing basis in the exercise of the 
Strategic Authority’s functions. 

This is in line with our response to clause 21, and would help to embed best practice around cooperation. 

Transport and local infrastructure 

Clause 23: Regulation of provision of micromobility vehicles 

This clause introduces Schedule 5 of this Bill, which inserts new provisions into the Road Traffic Regulations Act 1984 (the 1984 Act) at Part 2A and Schedule 3A.

Schedule 5 provides that combined foundation SAs, mayoral SAs or the highest tier of local authority for an area, will be licensing authorities for micromobility vehicles. Licences will be mandatory for anyone providing passenger or non-passenger micromobility vehicles for use on a public road or place (unless expressly exempted in some limited circumstances). In respect to passenger vehicles, such as bikes and e-bikes, these are vehicles which are taken possession of, from the street or other public place. Operating these businesses without a licence would be a criminal offence.  

LGA view

Councils, where there are shared bike schemes, would like to see greater powers to manage them, especially to deal with dangerous obstruction of the footway and street clutter. 

Clause 24: Arrangements to carry out works on highways 

This clause introduces Schedule 6 of this Bill, which amends the 1980 Act to provide that CAs and CCAs can have functions regarding trunk roads, and the power to enter into agreements with strategic highways companies delegated to them, subject to the consent of the relevant constituent local highway authorities. 

LGA view

The LGA accepts this clause as it includes a veto for the relevant local highways authority. 

Clause 25: Civil enforcement of traffic contraventions 

This clause introduces Schedule 7 of this Bill, which allows a combined authority (CA) or combined county authority (CCA) to take on the same civil enforcement powers within the geographic scope of existing designated civil enforcement areas of its constituent councils. In order to be able to take on these enforcement powers, the CA or CCA must have the written consent of the constituent local authority in whose area it is proposed that the enforcement functions are to be exercised. These changes are being introduced to enable a more cohesive enforcement system across the CA or CCA area.  

LGA view

The LGA accepts this clause as it includes a veto for the relevant local authority. 

Clause 26: Restrictions on disposal of land by Transport for London 

This clause devolves the power of the Secretary of State to consent to disposals of operational land under section 163 of the 1999 Act to the Mayor of London.  

LGA view

Whilst not directly affecting constituent local authorities, this is devolution of power and therefore is welcomed by the LGA 

Clause 27: Key route network roads 

This clause introduces Schedule 8 of this Bill, which amends the 2009 Act and the 2023 Act to require mayors of combined authorities and combined county authorities to prepare a proposed designation of a key route network in their area, and to publish and maintain a record of such a network. 

Schedule 8 also provides mayors of mayoral CAs and mayoral CCAs with the power to direct constituent highway authorities in the use of their highway, traffic, street and permit authority powers on key route network roads. There will also be a duty on mayoral CAs and mayoral CCAs to be responsible for making reports on levels of road traffic on key route network roads for the Secretary of State.  

LGA view

Preparation of a proposed designation of a key route network by CAs and CCAs should be a last resort, and its use should be as limited as possible. 

Clause 28: Constituent councils to act in accordance with local transport plans etc 

This clause replaces section 113 of the 2000 Act with a new provision which places a duty on all constituent councils to implement the CA’s or CCA’s local transport plan when carrying out their transport functions, as well as restating the existing duty on metropolitan district councils.  

LGA view

Preparation of a Local Transport Plan that cannot gain unanimous support by CAs and CCAs should be a last resort, and their use should be as limited as possible.  

Clause 29: Local transport authorities and other transport functions 

This clause introduces Schedule 9 of this Bill, which amends the 2000 Act and 1985 Act to provide that CAs and CCAs, where they exist, are the sole local transport authority for their area, with the relevant powers and duties including over local transport planning, securing public passenger transport services, bus partnerships, bus franchising, and concessionary travel.  

In line with CAs and CCAs being the strategic decision-making authority for the area, some transport functions are held solely by the CA or CCA, and not also by constituent local authorities. This does not extend to highways authority and traffic authority functions which remain with the relevant constituent councils.  

LGA view

Standardised transport functions and powers should not be mandated onto areas. There should be a clear and continued role for local government within the transport competency, retaining current duties and responsibilities. SA responsibilities should not seek to replicate this.

There was a commitment in the EDWP to progress local rail control over services and stations, but this is missing from the Bill. The LGA would like to see this commitment transposed into the legislation.  

Skills and employment support 

Clause 30: Adult education 

This clause introduces Schedule 10 of this Bill, which amends the 2009 Act to confer a range of duties and provisions relating to the education and training of adults on strategic authorities (SAs). This includes the conferral of powers on the Mayor of London, who exercises these functions on behalf of the GLA.  

Some duties that are conferred will be solely exercisable by the SA in relation to its area. These include:  

  • A duty to secure the provision of appropriate facilities for the education and training for persons aged 19 or over (other than those aged under 25 who are subject to an education, health and care plan). 
  • A duty to secure the provision of appropriate facilities for education and training to enable adults who lack particular skills to obtain relevant qualifications.
  • A duty to ensure certain eligible individuals are not required to pay tuition fees for statutory entitlements to specified qualifications.  

Other duties and funding powers will be exercisable concurrently by the SA and the Secretary of State in relation to the SA area. These include:  

  • A duty to encourage participation in education and training by persons aged 19 or over (other than those aged under 25 who have a maintained education, health and care plan).
  • Powers to fund other persons for the purpose of fulfilling the duties and exercising the powers under these provisions.
  • The power to place conditions on such funding and carry out means testing.  

LGA view

Local government is best placed to deliver adult and community learning. It has a wealth of experience in adult skills. Across England, councils and their partners deliver adult and community learning to 500,000 people through 10,000 community venues including libraries, community centres and village halls. 

This further underlines the importance of the LGA’s suggested amendment to clause 1, to include a statutory role for local government in the delivery of strategic areas of competence, including employment and skills. Local government is at the forefront of delivery of adult education and community learning. Any guidance which is being considered alongside the Bill on adult education should reflect a robust role for local government, recognise existing delivery and expertise, and interconnection with Local Skills Improvement Plans. 

Housing and strategic planning 

Clause 31: Planning applications of potential strategic importance 

This clause introduces Schedule 11 of this Bill, which provides that the powers which are currently afforded to the Mayor of London in relation to applications of potential strategic importance may also be exercised by mayors of CAs and CCAs, where the mayors exercise the power on behalf of their CA or CCA. 

This is subject to other requirements outlined in section 2A and the Secretary of State, by an order, defining the scope of applications of potential strategic importance and any other relevant criteria set out in a development order. This Schedule also omits section 2A (1A) of the 1990 Act, allowing mayors to use these powers if the local planning authority is a mayoral development corporation.  

LGA view

Local authorities are best placed to work collaboratively together and tackle cross-boundary challenges such as housebuilding, delivering infrastructure and climate resilience. Any Mayoral power to determine an application of potential strategic importance should not override the role, knowledge and leadership of democratically accountable elected local councillors and their communities. 

This further underlines the importance of the LGA’s suggested amendments to clause 6, which would preserve the important role of constituent councils in decision-making. 

Clause 32: Development orders 

Subsection (1) introduces Schedule 12 of this Bill, which extends the mayoral development order powers provided to the Mayor of London by permitting mayors of combined authorities (CAs) and combined county authorities (CCAs) to make mayoral development orders, where mayors would exercise these powers on behalf of their CA or CCA. 

This Schedule also omits sections 61DC (3) and (4) of the 1990 Act, removing the requirement for local planning authority consent before preparing and consulting on a mayoral development order (see paragraph 1 (4) (a) and (b)). 

This Schedule also inserts section 61DCA into the 1990 Act, enabling the mayor to seek the consent of the Secretary of State to approve the mayoral development order where the relevant planning authority has not approved the order before the end of the specified period (see paragraph 1(5)).  

LGA view

Whilst we remain supportive of tools which may help to speed up housebuilding and infrastructure delivery, omitting section 61DC(3) and (4) of the 1990 Act, which requires local planning authority consent before the preparation and consultation on a mayoral development order, removes an important layer of democratic and local accountability and knowledge. Local authorities remain best placed to make decisions related to development of their area.  

This further underlines the importance of the LGA’s suggested amendments to clause 6, which would preserve the important role of constituent councils in decision-making. 

Clause 33: Power to charge community infrastructure levy 

This clause introduces Schedule 14 of this Bill, which amends sections 206, 213 and 214 of the 2008 Act to enable mayors of CAs and CCAs to be community infrastructure levy 'charging authorities' in addition to local planning authorities. 

The provisions in this Schedule will allow mayors to charge a community infrastructure levy in their area, on behalf of their CA or CCA, subject both to the approval of a community infrastructure levy charging schedule by a simple majority of the members of that authority who vote on it, and to the relevant conditions or requirements set out in the community infrastructure levy regulations.  

LGA view

In principle the mayoral community infrastructure levy could be useful to aid in the development of strategic infrastructure project. In utilising this levy there should always be consideration of the viability of affordable housing and local infrastructure to ensure these are optimal for local places.  

The LGA has expressed concerns about the move to simple majority voting, as outlined in our response to clause 6 of this Bill. Local authorities, as democratically elected leaders of local places and deliverers of local planning strategy, should continue to have a robust role in decision-making which affects their areas and local communities.

This further underlines the importance of the LGA’s suggested amendments to clause 6, which would preserve the important role of constituent councils in decision-making. 

Clause 34: Acquisition and development of land 

This clause introduces Schedule 15 of this Bill, which amends the 2008 Act and the 1990 Act. The effect is to confer and housing and land functions, including compulsory purchase powers, of both Homes England and local authorities onto strategic authorities to acquire, develop, appropriate, and dispose of land. 

LGA view

Whilst we remain supportive of tools which may help to speed up housebuilding and infrastructure delivery, such as Compulsory Purchase Orders (CPOs), local authorities must have a mechanism by which their voice can be heard in relation to the use of these powers through SAs. That is because local authorities know their area best and are democratically accountable to their local communities.

This further underlines the importance of the LGA’s suggested amendments to clause 6, which would preserve the important role of constituent councils in decision-making. 

Clause 35: Housing accommodation 

This clause introduces Schedule 16 of this Bill, which amends the 1985 Act. The effect is to confer housing and land functions of local authorities in relation to housing accommodation, acquiring housing or land in connections with the provision of housing by agreement and compulsorily, and duties to make buildings suitable for housing, onto strategic authorities outside London.  

LGA view

Whilst we remain supportive of tools which may help to speed up housebuilding and infrastructure delivery local authorities must have a mechanism by which their voice can be heard in relation to the use of these powers through SAs. That is because local authorities know their area best and are democratically accountable to their local communities. 

This further underlines the importance of the LGA’s suggested amendments to clause 6, which would preserve the important role of constituent councils in decision-making. 

Clause 36: Mayoral Development Corporations 

  • This clause introduces Schedule 17 of this Bill, which primarily amends the 2011 Act to confer mayoral development corporation functions on all mayoral strategic authorities (SAs). It ensures that provisions originally designed for application to the Mayor of London and the GLA are suitably modified for mayors of SAs, and the mayoral development corporations they establish. The powers are to be exercised solely by the relevant mayor.  
  • Measures in the Planning and Infrastructure Bill seek to expand this to include development, so mayoral development corporations can deliver new settlements, including on greenfield sites, in addition to urban regeneration.  

LGA view

The LGA supports giving greater flexibilities to mayoral SA development corporations to deliver as appropriate.  

Economic development & regeneration 

Clause 38: Local Growth Plans 

This clause introduces Schedule 19 of this Bill, which inserts new sections into the Local Democracy, Economic Development and Construction Act 2009 (the 2009 Act) and the Levelling-up and Regeneration Act 2023 (the 2023 Act) to require mayoral strategic authorities except the GLA to produce and publish a local growth plan. 

This clause also inserts new sections into those acts and the Greater London Authority Act 1999 (the 1999 Act) to require non-departmental public bodies to have regard to shared local growth priorities agreed between mayoral strategic authorities and the Government. 

LGA view

The LGA supports this clause, recognising the value of a regional strategy encapsulating SAs’ ambitions for driving inclusive and sustainable growth. It is sensible to ensure alignment between Local Growth Plans and other regional and local plans and strategies for a coordinated approach for action and investment across the region.  

However, as outlined in our response to the Planning & Infrastructure Bill, in seeking alignment from other plans and strategies, government must remain mindful of resourcing and capacity implications as well as transitional arrangements for the development of local plans and SDS in light of wider local government reorganisation and devolution over the coming years. Timing and resource constraints should be considered for all other regional and local plans and strategies which must adhere and align to Local Growth Plans.    

To ensure Local Growth Plans progress inclusive and sustainable growth, the guidance issued by government for development of Local Growth Plans should include integration of clause 43 in this Bill.  

As outlined in our view on clause 2, it is crucial that councils have a strong role in delivering this SA competency. This should include a duty on the Mayor to co-produce the Local Growth Plan in partnership with constituent members and local government within the region, and a statutory role for councils in shaping and delivering the plan. This partnership will be a necessary part of achieving successful outcomes from statutory local growth plans.  

As a starting point, the Bill should be amended to include a mandatory duty for the guidance issued by government for development of Local Growth Plans to be co-produced with local government. Members in areas without devolution deals are increasingly concerned about their ability to participate in the development of Local Growth Plans. The guidance should set out how all councils, regardless of their current devolution status, will be supported to contribute to and benefit from national priorities. 

Clause 40: Encouragement of visitors and promotion of visitors 

This clause amends sections 144 and 145 of the 1972 Act, by extending all the powers of local authorities under sections 144 and 145 of the Local Government Act 1972 (the 1972 Act) regarding encouragement of visitors and promotion of visitors, and powers to facilitate provision of entertainment, facilities for dancing and other cultural offers, to CAs and CCAs. These powers will be exercised concurrently by the CAs and CCAs and their constituent councils.  

LGA view

It is positive to see the powers surrounding encouragement and promotion of visitors extended to SAs, to enable investment in, and promotion of tourism across and between places. In exercising these powers, it is important that responsibility for the visitor economy remains locally led. Mayors should seek to add value to existing locally led services surrounding tourism, to ensure coordination on a regional and local level.  

The LGA argues for a continued role for Local Visitor Economy Partnerships (LVEPs) which have been established to support local leadership of tourism and collaboration between neighbouring destinations. LVEPS provide a national network that can work together on shared priorities, whilst providing strong local leadership, ensuring robust destination management, strong stakeholder relationships, and clear planning designed to drive economic growth for local areas. It is important that LVEPS can act strategically and support councils with the data and evidence needed to inform investment and service decisions.  Inclusion in relevant strategic decision making, developing their research and analytical capabilities and being resourced to deliver will enable them to be more effective. 

To harness the full benefits of tourism and manage the pressure placed on local infrastructure and services, the LGA calls for a statutory power within the EDCEB for local areas to impose a levy on overnight stays in accommodation within its area, to be known as a “local tourism levy”. A levy would provide revenue to support sustainability and development of the local visitor economy by: 

  • Maintaining and enhancing public services impacted by tourism 
  • Investing in cultural, heritage and environmental assets 
  • Supporting local infrastructure and transport services.  
  • This levy should be based on: 
  • Local discretion: Councils should be empowered to introduce a tourism levy if appropriate for their area; and 
  • Revenue reinvestment: funds raised should be ringfenced to support local infrastructure, cultural services, and tourism management. 

Clause 41: Cooperation with local government pension schemes 

This clause provides for duties on SAs which will be reciprocal to those requirements on administering authorities under the Pension Schemes Bill. This clause places a duty on all SAs to collaborate with the relevant administering authority of the local government pension scheme to develop investment opportunities appropriate to the scheme.  

LGA view

The LGA seeks clarity through guidance on the requirements of this duty. As a potential future investor in projects, it could create a conflict of interest for administering authorities to be too closely involved in the development of particular proposals that they (or the investment pool they participate in) will then need to consider. 

Health, wellbeing and public service reform 

Clause 43: Health improvement and health inequalities duty 

This clause inserts new sections into the Local Democracy, Economic Development and Construction Act 2009 and the Levelling-up and Regeneration Act 2023 to confer a new duty on all combined authorities (CAs) and combined county authorities (CCAs) to have regard to the need to improve the health of persons in their area and reduce health inequalities between persons in their areas, when deciding whether or how to exercise their functions. The clause also makes corresponding provision in relation to the mayor of a CA or CCA.  

LGA view

The bill rightly highlights the importance of mayors in promoting positive health outcomes and tackling health inequalities, through consideration of a wide range of determinants for health and broad scope for action. 

The introduction of a health duty provides an opportunity to broaden the scope of strategic governance to include health and wellbeing as core outcomes. This supports a more holistic approach to regional development, recognising that economic, social, and health outcomes are interdependent and mutually reinforcing. Embedding health improvement and equity within strategic planning frameworks could help ensure that public service reform delivers tangible benefits for communities. 

The health duty and associated powers of competence over the wider determinants enhance the legitimacy and practical capability of Mayors and SAs to lead coordinated efforts to improve population health and reduce health inequalities. Councils are central to this agenda, given their statutory responsibilities, local insights and connections and leadership in addressing these determinants. This strengthened mandate supports the adoption of a Health in All Policies (HiAP) approach across all functions.  

The LGA seeks clarity through guidance on the delivery of this duty and the roles and responsibilities of SAs and local government. It is essential that the health duty clearly delineates the respective roles of SAs and councils, recognising the statutory leadership of local government in public health and ensuring complementary - not overlapping - responsibilities. There should be alignment with the EDCEB and the local government outcomes framework to ensure clarity on regional and local roles and responsibilities.  

The design of this duty must be informed by lessons from existing statutory duties, ensuring it is actionable, accountable and embedded within a supportive policy environment. Without this, the duty risks being symbolic rather than transformative. 

This duty also falls short of requiring the NHS to collaborate with SAs. Without a statutory duty for engagement, it is hard to see how mayors will be able to command much attention from a vast health service operating on different boundaries. The LGA calls for join up across the system with reciprocal statutory duties to collaborate from integral partners in the health and wellbeing space. 

As outlined in our response to clause 38 of this Bill, there must be formal integration of this new duty within the fundamental building blocks of this Bill, including the duty to develop Local Growth Plans. This will be essential to ensuring this duty is not watered down in future, with formal recognition of health and wellbeing across all plans and strategies stemming from Local Growth Plans, including Spatial Development Strategies, Get Britain Working Plans and other regional strategies.   

Guidance for this new duty should include consideration of the commitments in the 10 Year Health Plan for England, to introduce a neighbourhood health service, which local government will have a critical role in shaping and delivering. Health and Wellbeing Boards (HWB) as strategic convenors – bringing together system leaders to improve the health and wellbeing of their communities is vital. Their power lies in partnership: aligning resources, breaking down silos, and driving collaborative action across sectors. As the health and care landscape evolves, HWBs remain essential to delivering sustainable, equitable, and community-led solutions. Any new governance must work with and not duplicate the work of these vital boards.  

Another key challenge is that ICBs and local government have such large commissioning roles on health and adult social care, but no formal space for this to happen with their seat at ICB table shifting to Mayors. Removal of local authority representatives from ICBs is a step backwards from a joined-up and localised approach to health services, given councils are at the forefront of both local and neighbourhood service delivery. Additionally, this risks leaving behind those areas that do not currently have a SA in place. Local government should continue to be represented on ICBs, alongside mayors, to enable join-up between strategic, local and neighbourhood planning and delivery. Inclusive growth cannot happen without local government. 

Public safety 

Clause 44: Functions of police and crime commissioners 

This clause amends section 107F of the 2009 Act and section 33 of the 2023 Act so that the mayor for the area of a mayoral CA or mayoral CCA is to exercise PCC functions in respect of that area if the CA or CCA meets the eligibility condition and the transfer condition.  

Under new section 107FA of the 2009 Act and section 33A of the 2023 Act, a CA or CCA meets the eligibility condition if the authority’s area is the same as a single English police area or the authority’s area is the same as two or more English police areas (when those areas are taken together).  

A CA or CCA meets the transfer condition if the Secretary of State has specified the time at which the mayor for that area is to begin exercising PCC functions and the transfer time has passed.  

It will still be possible for the Secretary of State to transfer PCC functions by order under section 107F (1) of the 2009 Act and section 33 (1) of the 2023 Act.  

Subsections (7) and (8) amend the four orders transferring PCC functions to the mayors of Greater Manchester, West Yorkshire, York and North Yorkshire, and South Yorkshire to provide that each mayor must appoint a person as the deputy mayor for policing and crime for the area. These mayors will retain the responsibility for the core functions set out in Section 18 (7) of the 2011 Act.  

LGA view

The LGA recognises the Government’s intention to further integrate Police and Crime Commissioner (PCC) functions within the role of mayors. Where there is clear local support and accountability arrangements are robust, this could support more joined-up decision-making across policing, community safety and wider public services. 

Areas need to retain the flexibility to shape arrangements in a way that reflects their unique geography and governance. 

We continue to emphasise the importance of: 

  • Clear accountability mechanisms, particularly where mayors cover more than one police force area. 
  • Sustainable and transparent funding, ensuring that the transfer of PCC functions does not dilute resources for core policing and community safety. 
  • And a commitment to meaningful engagement with local government in shaping future governance arrangements. 
  • A clear role for our members on Police & Crime Panels in holding PCCs to account and subsequently Mayors when they take on PCC powers. 

Clause 45: PCCs and police areas 

Subsection (1) amends section 1 of the Police Reform and Social Responsibility Act (the 2011 Act) to clarify that a police area is not required to have a police and crime commissioner (PCC) if PCC functions have been transferred under new section 107F (1A) of the Local Democracy, Economic Development and Construction Act 2009 or new section 33 (1A) of the Levelling-up and Regeneration Act 2023.  

Subsection (2) inserts section 76A into the 2011 Act, which introduces Schedule 10A, which makes provision about cases where a mayor is to exercise PCC functions in accordance with either section 107F(1A) or section 33(1A).  

Subsection (3) introduces Schedule 21 of this Bill, which inserts Schedule 10A into the 2011 Act, which makes provision about cases where a mayor is to exercise PCC functions in accordance with section 107F(1A) of the 2009 Act or section 33 (1A) of the 2023 Act.  

Subsection (4) amends sections 32 and 34 of the 1996 Act. The amendments will allow the Secretary of State to alter police areas by order in connection with the transfer of PCC functions to the mayor of a strategic authority (SA), if the Secretary of State’s purpose in making the order is to cause a SA to meet the eligibility condition and enable the Secretary of State to specify the transfer time in relation to that SA.  

LGA view

Whilst the government’s ambition to achieve co-terminous public service boundaries has the potential to increase local democratic accountability and bring greater coherence to the governance of key public services such as health, transport, skills, economic development and planning, the LGA is concerned about the practicalities of changing boundaries on public service delivery.  

The current piecemeal process of reform across different services within the public sector risks leaving some area stuck with an indefinite period of misalignment.  

The timeline for the Devolution Priority Programme, and potential conferral of police functions and boundaries to new SAs is at odds with the timeline for ICB clustering, which is happening now. The full practicalities of changing boundaries for police, health and fire services needs to be fully understood, co-designed with local areas and coordinated, to avoid negative implications and risk continued high quality service delivery.  

We are calling for a clear, cross-government strategy to align public service boundaries in a way that supports local delivery, reduces complexity and reflects local needs. Any changes must be underpinned by sufficient time, funding and capacity to manage the transition effectively. 

Clause 46: Functions of fire and rescue authorities (FRA)

This clause adds a new category of FRA by providing that a mayoral strategic authority is the FRA for one or more fire rescue areas outside of Greater London, if the mayoral strategic authority meets the eligibility and transfer conditions outlined in new section 1A of the 2004 Act, set out at subsection (4). The fire and rescue functions of a mayoral strategic authority are exercisable by the mayor on that authority’s behalf.  

Subsection (4) inserts a new section 1A into the 2004 Act, which sets out provisions including: the eligibility (sections 1A (2) to 1A (4)) and transfer (section 1A (5)) conditions needed be met before a mayoral strategic authority can become one or more FRAs for its area. The eligibility condition is met either where the mayoral strategic authority’s area is coterminous with either the area of a single FRA (section 1A (3)) or the areas of two or more FRAs (section 1A (4)). The transfer condition is met when the Secretary of State sets out in regulations the time at which the mayoral strategic authority is to become the FRA for that area (section 1A (5)(a)) and that time has passed (section 1A (5) (b)). 

Where a mayoral strategic authority’s area is coterminous with the areas of two or more FRAs, each FRA is to have the same transfer time (section 1A (6)). Under section 1A (7) the regulations may also set out the transfer time for an FRA whose area is being altered by another order or regulations (made under any power) so as to achieve co-terminosity with a mayoral CA or mayoral CCA. In such a case the transfer time must be on the day or the day after the order or regulations altering that FRA’s area come into force.  

Within subsection (4), section 1A (8) also provides that the Secretary of State may make for the purposes of, or in consequence of the regulation made under section 1A (5) (a) provision under clause 52 of this legislation includes provision for: shadow functions of the fire rescue authority for that area to be exercisable by the mayoral CA or mayoral CCA for the year proceeding the transfer of those functions, on who is to scrutinise the mayoral CA or mayoral CCA’s exercise of fire and rescue functions and any other incidental, consequential, transitional or supplementary provision.  

LGA view

As stated in response to clause 45, the practicalities and implications of altering boundaries to achieve co-terminosity of public services needs to be fully understood and worked through with both local government and FRAs.  

The LGA advocates for amendment to the Bill to follow the North Yorkshire Combination order which gives the option of appointing a deputy mayor of fire or a fire committee to oversee decision-making.  

There must be clear, strong and appropriate scrutiny arrangements supporting the delivery of fire services with clear lines of accountability for senior officers in the service. 

Ring-fenced budgets for fire services would support the continued delivery of the emergency service.  

Clause 47: Mayor with PCC and fire and rescue functions 

This clause updates section 107EA (1) of the 2009 Act to reflect the new ways by which a mayor of a CA may exercise fire and rescue and PCC functions. It also updates section 34 of the 2023 Act to reflect the new ways by which a mayor of a CCA may exercise fire and rescue and PCC functions.  

LGA view

The LGA supports clarity in legislation regarding the governance of policing and fire and rescue services, particularly in areas moving toward greater devolution. 

It is important that any changes to how mayors exercise these functions are based on local agreement, maintain clear lines of accountability and do not lead to fragmentation or disruption of existing partnership arrangements. 

Where combined authorities are seeking to integrate fire and policing functions under a mayor, this should be underpinned by transparent and focussed governance arrangements, effective local scrutiny, clear lines of accountability for officers with appropriate and dedicated funding to support delivery and oversight.  

The LGA will continue to support areas to ensure that any transfer of functions enhances local leadership and improves outcomes for residents, whilst recognising that governance models may vary depending on local context. 

Requests by mayors for established mayoral strategic authorities 

Clause 49: Requests by mayors of EMSAs for changes 

This clause makes provision requiring the Secretary of State to respond to proposals from mayors of established mayoral strategic authorities for further powers and funding that would help them deliver against their areas of competence.  

LGA view

The LGA supports this clause and welcomes the opportunity for EMSAs to seek further devolution to their areas. The LGA has called for government departments to adopt a ‘devolution first’ principle. This would mean departments using analysis of new policy initiatives to consider the benefits of local government acquiring new policy powers and/or fiscal power to take control of the policy. It would embed a culture of ‘thinking local’ in the UK’s centralised decision-making structures. It is therefore right that there is a duty on the Secretary of State to respond to proposals for further devolution and provide reasons for their decision. 

The LGA calls for amendment to this clause to take a broader and more flexible approach, enabling EMSAs the power to request additional areas of competence to be added to the framework for devolution set out in clause 2.  

Part 3: Other measures about local government and PCCs

Reorganisation 

Clause 55: Single tiers of local government 

This clause introduces Schedule 24, which amends the 2007 Act to allow the Secretary of State to invite or direct principal authorities where there is a single tier of local government, to merge by submitting a proposal for the establishment of new unitary councils in their area. The Secretary of State will then be able to decide whether to implement the proposal after consulting affected local authorities that have not made the proposal and such other persons considered appropriate.  

Schedule 24 also reverses the provision that prevented the Secretary of State from directing principal authorities in two-tier local government areas to submit a proposal under section 2 of the 2007 Act. The effect of this provision is to create a process for mergers that is the same as the process of unitarisation.  

Schedule 24 also allows for the Secretary of State to either abolish a combined authority (CA) and combined county authority (CCA), or convert a CCA to a CA, for the purpose of implementing a proposal for the establishment of new unitary councils.  

LGA view

The LGA has called for government to consider the following principles to guide decisions about new unitaries: 

  • Decisions should be informed by robust data to ensure a reflection of local geographies and identities, footprints, and rurality. The LGA supports local areas discussing the appropriate scale of local government reorganisation with government. 
  • Any new unitary councils must be financially viable, and able to provide sustainable services for their local areas and communities in the long term. It is imperative that residents do not see a decline in the services they receive with statutory and discretionary services protected. 
  • The voice of local councillors must continue to be appropriately reflected in the governance and scrutiny functions in any devolved arrangements, with political balance and robust local democracies. 
  • The unique place-shaping role of local government must continue to be part of the fundamental corner stones of English governance.  
  • Mitigation of the very real concerns that councils have about their workforce and the impact of jobs moving to the new unitaries.    

Governance 

Clause 57: Local authority governance and executives 

This clause introduces Schedule 25 of this Bill, which changes the available governance arrangements for councils in England, requiring those currently operating the committee system to move to the leader and cabinet model, and preventing the creation of new local authority mayoralties.  

LGA view

Currently, 38 councils operate under a committee governance system, with several having held democratic referenda to arrive at this position in recent years. It isn’t right for these democratic decisions to be disregarded. Councils using the committee system should be allowed to retain their governance system until they or their communities choose to move to a leader/cabinet model. 

This approach aligns with the treatment of councils that use a directly elected mayoral system, which will be permitted to retain their existing governance arrangements under the EDCEB but may choose to transition to the leader/cabinet model if they wish. Duplicating this approach would demonstrate parity of respect for the democratic decisions made by communities in different areas and reduce the unnecessary bureaucracy of reversing these decisions. 

Additionally, with the current approach, there is a risk that committee councils undergoing LGR may be forced to reform their governance arrangements at the same time as preparing for LGR. The process and timescales of LGR can be affected by many factors, and it is not guaranteed that all areas planning to reorganise will make the deadline. Removing the requirement to transition would derisk this process. We ask the Government to work with councils using the mayoral and committee systems going forward. 

Clause 58: Local authorities: effective neighbourhood governance 

This clause introduces a duty on local authorities to make appropriate arrangements for effective governance of any neighbourhood area. It provides the Secretary of State with the power, by way of regulations, to define a neighbourhood area and to specify the parameters of what arrangements will be appropriate to meet this duty.  

LGA view

The LGA is committed to the principle that local areas are best placed to decide what form of community engagement is appropriate for their context. If the Government moves ahead with its intention to standardise the neighbourhood area committee model, then councils should receive new burdens funding to reflect that delivering this model will – in a way which truly empowers communities – requires resources. It's also vital that neighbourhood-level committees are designed in a way which empowers communities to engage with wider public services, such as the NHS and police, and the voluntary and community sector.  

The LGA would like to see at the very least, a requirement for the involvement of health, police and fire services in neighbourhood committees.  

There must be alignment between this clause and the commitments in the 10 year health plan for England, to introduce a neighbourhood health service, which local government will have a critical role in shaping and delivering.  

Assets of community value 

Clause 60: Community right to buy assets of community value and protection of sporting assets 

This clause introduces Schedule 27 of this Bill, which inserts new Chapter 2A into the 2011 Act. This Schedule amends the provisions in the 2011 Act as they apply to England to create a new community right to buy. This will provide new powers for community groups in England who wish to purchase local assets that are important to them. The provisions for Wales will remain the same.  

Schedule 27 also introduces a new sporting asset of community value category, which builds on the asset of community value provisions in the 2011 Act. This new designation provides enhanced protections for sports grounds and their supporting facilities. The amendments in this clause provide for the automatic and indefinite listing of sporting assets of community value. This clause also broadens the scope of what can be included within a listing, allowing assets that support the functioning of a sports ground, such as car parks, to be indefinitely listed as assets of community value.  

LGA view

It is important that councils and communities are able to effectively protect cherished sporting assets and grounds. It is unclear how this measure sits with the current plans to remove Sport England as a statutory consultee from the planning process, which provides a significant safeguard for these facilities without requiring the community to attempt often challenging fundraising targets. 

The indefinite listing will reduce the bureaucratic burden for communities in keeping the asset listed, but must be weighed up against the risk of undermining the owner or operator’s ability to realise capital from the asset, which could make the difference between the survival or failure of any club or activity using the asset to operate. This could have the inadvertent result of causing much-loved football or sporting teams to close, although we also acknowledge the importance of retaining these teams within their historic locations. 

Successfully supporting community asset transfer or purchase can take significant time and require capacity building support. We recommend that some funding is made available by Government to support community groups with this process.   

Part 4: Local audit

Clause 61: Establishment of Local Audit Office 

This clause inserts new Part 1A into the Local Audit and Accountability Act 2014, and introduces Schedule 28 of this Bill which inserts new Schedule 1A into the 2014 Act. These provisions will enable the establishment of a new public body, the Local Audit Office (LAO), to oversee the local audit system. These provisions set statutory objectives for the LAO and prescribe key elements of its governance processes and structures.  

The LAO will conduct its functions as set out in clauses 61-65, which include setting fees, appointment of auditors to eligible bodies, setting the code of audit practice and overseeing a regulatory framework.  

Subsection (1) inserts new Part 1A into the 2014 Act. New section 1B sets out that the main objective of the LAO is to secure the effective operation of the audit system. Section 1C provides for financial matters and how the LAO will be funded, and section 1D provides for functions in accordance with any direction or guidance issued to it by the Secretary of State.  

LGA view

The LGA has been pressing for a long time for a timetable to be set by which timely audits will be restored. There is an urgent need to restore confidence in the local audit arrangements, restore timely audits permanently, and improve financial reporting. We are committed to working with the government on the redesign of the local audit system and on the proposal to set up a new local audit body. 

Clause 66: Audit committees 

This clause inserts new Part 33A into the 2014 Act. This states that a relevant authority other than a health service body must have an audit committee and arrange for the committee to exercise specific functions.  

Subsection (6) directs that at least one member of an audit committee is an independent person.  

Subsection (7) asserts that the Secretary of State may issue regulations about the payment of members’ allowances to audit committees.  

Subsection (11) states that, for the Greater London Authority, the responsibility for audit committees is shared by the Mayor of London and the London Assembly.  

LGA view

Local authorities will already have a committee whose functions include those of an audit committee. The proposed legislation formalises this and aligns the requirements and functions of councils with those already in place for combined authorities.  

If independent members are to be mandated, this needs to handled carefully, and the LGA seeks clarity through guidance on what constitutes “independent”, the appropriate skill requirements, renumeration levels and a solution for those authorities who are unable to recruit suitable local capacity, potentially through a national pool. 

Clause 69: Amendment paving way for separation of LGPS accounts 

This clause substitutes section 20(3) of the 2014 Act to allow for future flexibility to enable the mandatory decoupling of pension fund accounts from administering authorities' accounts by removing the implied requirement in the current subsection to keep the pension fund accounts with the relevant administering authority’s other accounts.  

The amended section continues to align with requirements under the Public Service Pensions Act 2013, ensuring that local government pension schemes are audited distinctly from other accounts.  

LGA view

We are pleased to see the Government take this power to decouple LGPS fund audit from the administering authorities’ wider accounts. This should enable pension fund accounts to be signed off sooner than has been the case in recent years, where issues with the wider accounts have held them up.  

This will also make it easier to include audited data in the separate pension fund annual reports, which is important for transparency, and help those scheme employers (such as academies and further education colleges) which need to report asset and liability data from the pension fund’s accounts in their own annual accounts. 

This reform should also increase transparency by making both sets of accounts clearer and more focussed on their core purpose.  

Part 5: Business tenancies – prohibited terms relating to rent

Clause 71: Rent reviews and “put options” – prohibited terms 

This clause inserts new section 54A into the Landlord and Tenant Act 1954, to allow the 1954 Act to now define the parameters for rent review provisions in commercial leases in England and Wales. New section 54A refers to new Schedules 7A and 7B, which are inserted into the 1954 Act by Schedule 31 of this Bill.  

LGA view

The current and future viability of high streets and town centres is a priority for almost all councils. For most areas, the solutions lie in creating the conditions for a strong local economy and having the right size and blend of businesses, private and public services and residential that will create footfall to maintain vibrancy and help sustain the high street as an important economic and social asset.  

It is helpful that existing leases, including those with council landlords, will continue to operate under their existing terms, including any rent review clauses. 

However, whilst a ban on upward-only rent reviews for new leases may appear to help keep rents down and therefore more attractive to businesses; there is concern with potentially unintended consequences of the long-term viability and attractiveness to investors and developers. This includes for councils, many of which are significant landlords in their high streets. 

We therefore call on the Government, before introducing any new legislation, to consult widely and collect evidence on:  

  • What are the determinants of empty high street shops and the extent that upwards only rent reviews are a significant factor; and  
  • The impact that a ban on such reviews may have on future viability and attractiveness for investors. 

Contact

Archie Ratcliffe, Interim Head of Public Affairs and Stakeholder Engagement  

Email: [email protected] 

Mobile: 07867 189177