New “neighbourhood governance” obligations and plans for strategic authorities detailed in English Devolution and Community Empowerment Bill

An explainer document published alongside the Bill on Thursday (10 July), said: "[The bill] will support the Government's ambition to rebalance power away from central government so that local leaders can take back control and increase prosperity for local people by creating a default framework available in law which includes new powers to enhance the offer for devolved areas across England."

On neighbourhood governance, the explainer said the goal of the new approach is "to move decision-making closer to residents, so decisions are made by people who understand local needs".

It added: "Additionally, developing neighbourhood-based approaches will provide opportunities to organise public services to meet local needs better."

Details of the obligations on councils will be set out in regulations that will be made after the Bill is in force, the Government said.

The Government said it will carry out a review on the best way to achieve its aims, including speaking to the sector to ensure they have the opportunity to contribute and share existing good practice.

It noted that councils can still set up town and parish councils, and it will issue guidance on how neighbourhood governance structures can work well with town and parish councils.

"We want to make sure that all local authorities have a way of working with people in their neighbourhoods, so they are not relying on town and parish councils to do it," it added.

Elsewhere, the long-awaited bill sets out provisions for a new "Strategic Authority" (SA), which will have the ability to perform functions in the following areas:

• transport and local infrastructure
• skills and employment support
• housing and strategic planning
• economic development and regeneration
• environment and net zero
• health, wellbeing and public service reform
• public safety

The Government aims to introduce a strategic authority for each area in England.

In much of the country, institutions already exist that will be classified as Strategic Authorities by the Bill, including combined authorities, combined county authorities, and the Greater London Authority.

Strategic authorities (SAs) will belong to one of three levels of devolution, according to the document: Foundation, Mayoral and Established Mayoral.

Foundation SAs will be available to those authorities without an elected mayor, and will have limited devolution and include non-mayoral Combined and Combined County Authorities, as well as single councils that have been specially designated as a Strategic Authority.

Mayoral will be available to areas with an elected Mayor. Mayoral Strategic Authorities will have greater devolution and include Mayoral Combined and Combined County Authorities.

Established Mayoral SAs meanwhile will have access to the broadest range of devolved powers and functions and will be available to Mayoral Strategic Authorities who are able to satisfy additional governance requirements.

The explainer added: "Strategic Authorities will not replace councils.

"Strategic Authorities have been created to tackle regional issues and capitalise on the opportunities that exist over a significant geographical area, such as pursuing a more integrated transport network.

"Councils will continue the important work of representing local communities and delivering key public services like adult social care."

On strategic planning powers, the bill will give mayors of Combined Authorities and Combined County Authorities new planning powers, similar to those exercised by the Mayor of London.

This will include the ability to direct refusal of planning applications of potential strategic importance and the ability to call in these applications.

Elsewhere, the Bill sets out provisions that will expand the devolution framework using secondary legislation, and create the ability for specific strategic authorities to pilot devolved powers before those powers may or may not be expanded to all SAs.

The bill will also provide Established Mayoral Strategic Authorities a 'right to request' which allows them to propose further powers, funding and partnerships to expand the devolution framework.

To further enable development, the Bill will also give Mayors of Strategic Authorities the ability to grant planning permission for a particular development instead of relying on an application to be submitted by giving them the power to issue Mayoral Development Orders (MDOs).

The Bill also introduces powers to enable the Secretary of State to establish new Strategic Authorities or expand existing institutions without the consent of local areas.

"Our commitment to working in partnership holds firm, and so the government will limit its use of this power to instances when other routes to establishing a Strategic Authority have been exhausted," the explainer document said.

On governance, the bill will set out provisions to abolish the committee system of governance and prevent the creation of any new local authority mayors.

Councils operating a committee system of governance – which accounts for around 20% of all local authorities – will move to operate a leader and cabinet model, whilst the remaining councils with existing mayors will have the option to continue with an elected mayor, or transition to a leader (and therefore the leader and cabinet model) should they wish.

According to the Government, abolishing committees will simplify the governance system, provide clarity on responsibility and accountability, and improve efficiency in decision-making.

The Bill includes provisions to establish a new body – the Local Audit Office (LAO) – to oversee local audit and to simplify and streamline the currently fragmented system.

Its remit will include coordination of the local audit system, standard-setting, contracting auditors, appointing auditors to local bodies, and quality oversight and reporting.

The Bill also introduces a new 'community right to buy' which will allow community groups the first opportunity to purchase an Asset of Community Value (ACV).

Under these plans, it will also create a new Sporting Asset of Community Value (SACV) and automatically designate all eligible sports grounds as such.

The Bill meanwhile also sets out plans to change how Mayors and Police and Crime Commissioners (PCCs) are elected, with provisions to move the voting system from First Past the Post to the Supplementary Vote system.

On local government reorganisation, the Bill reinstates the ability for the Secretary of State to direct councils to submit proposals to reorganise two-tier areas into a single unitary tier.

This power has previously been held by the Secretary of State, though it expired in January 2008 due to a sunset clause in the legislation.

The explainer document said: "At the current time, invitations have been issued to all two-tier areas in England and councils across the country are working hard to produce proposals. As such, the Government will only use this power should it prove necessary to achieve stability for local Government across England and increase value for money for council taxpayers."

Responding to the publication of the Bill, Cllr Louise Gittins, Chair of the Local Government Association, which represents councils, said: “It is critical that the full breadth, diversity and capability of local government is recognised and all councils are enabled to play a meaningful role as partners and, where appropriate, as part of strategic authorities in driving growth, improving services, and improving the lives of our residents.

“Councils across the country are deeply invested in and vital to the success of English devolution. We will respond in more detail on behalf of local government when we have analysed the Bill further.”

Cllr Tim Oliver, Chairman of the County Councils Network, said publication of the Bill represented "another important step to ensuring that every single remaining county area in England has access to a devolution agreement [which the CCN] has long called for".

He added: "Whilst we recognise the Government has a clear desire for mayoral strategic authorities it is important that mayors do not diminish the role of councils and instead both should complement each other and work in partnership to drive growth, build infrastructure and deliver better local services. It is imperative that new strategic authorities in county areas have parity in the powers and funding available to urban areas; whilst also recognising not every area will be able to move to a mayoral model immediately."

Cllr Oliver also said the CCN plans to scrutinise powers laid out in the Bill that would allow ministers to establish strategic authorities without local consent and direct councils to submit local government reorganisation proposals where sufficient progress is not being made.

Cllr Sam Allen-Chapman, chair of the District Councils' Network (DCN) meanwhile said: "The Bill's 'devolution' label doesn't match the contents. Power isn't flowing downwards. Rather than empowering local leaders, there are substantial new powers for the Secretary of State to direct local government. Many of the new responsibilities for strategic authorities are existing powers being reshuffled from other local bodies."

A spokesperson for the National Association for Local Councils (NACL), said it welcomed the recognition of the role of parish and town councils, “particularly the acknowledgement of their effectiveness in delivering local services, and confirmation that the government did not intend for any neighbourhood government structures to replace parish and town councils”.

NALC said it met with Baroness Taylor of Stevenage, parliamentary under-secretary of state at the Ministry of Housing, Communities and Local Government, prior to the Bill’s publication.

Commenting on the meeting, the spokesperson said: “There was also a commitment to forge an even stronger relationship with NALC, including further work to support and encourage good partnerships between parish and town councils and principal authorities through neighbourhood governance structures, as well as addressing issues not covered in the Bill, such as hybrid meetings and reform of the standards regime.”

Adam Carey

See also: Early insights into the English Devolution and Community Empowerment Bill - David Kitson offers some initial thoughts on the English Devolution and Community Empowerment Bill.