English Devolution and Community Empowerment Bill

Public Bill Committee, 21 October 2025.

John Hayes (Conservative, South Holland and The Deepings)

We are now sitting in public and the proceedings are being broadcast. I remind Members to switch off electronic devices. I have lots of people here who can help me do that, but you do not. The usual courtesies prevail. If you want to speak, make sure that you have caught my eye. My job is to make sure that the Minister gets ample time to take her legislation through the House and that other Members have ample time to scrutinise her during that process. We will proceed on that basis.

Any Member can contribute during the line-by-line consideration. I will typically ask the Member who has tabled an amendment to introduce it and the Minister will sum up. As a matter of courtesy, it is better if the Minister does not have to rise several times. The Minister needs ample opportunity to sum up the debate. I do not want a perpetual exchange. I know that is sometimes unavoidable, but I want to be as courteous as possible to our Minister of the Crown.

Schedule 12 - Development orders

John Hayes (Conservative, South Holland and The Deepings)

With this it will be convenient to discuss schedule 13.

Miatta Fahnbulleh (Labour/Co-operative, Peckham)

Schedule 12 expands on existing powers in relation to the mayoral development orders in the Town and Country Planning Act 1990 to all mayors of strategic authorities. MDOs grant planning permission for development as an alternative to granting permission through a planning application. They are similar to local development orders, which Members will be familiar with and are used across the country.

Development orders are designed to enable up-front planning certainty for developers and communities. For example, the Gravity LDO in Somerset granted permission for advanced manufacturing facilities and a giga-battery factory is now under construction. We want to give mayors and strategic authorities the same opportunities so that they can support development, which will make a difference to growth and economic opportunities in their areas.

At the moment, only the Mayor of London can make an MDO; schedule 12 would expand that to all mayors. It also streamlines the MDO process. Currently, an MDO needs to be requested by each relevant local planning authority, and their consent is needed before the mayor can consult on the draft order. Schedule 12 removes those limitations. That does not mean that local planning authorities are cut out of the process; they will still be consulted and their approval will be sought for making the order.

In practice, we expect to see local planning authorities and mayors working closely in partnership. However, we recognise that there may be instances where a mayor and a local planning authority cannot agree. Proposed new section 61DCA of the Town and Country Planning Act allows a mayor to request that the Secretary of State consider an order where local planning authority approval is not given. These provisions set the framework; the detailed process for making an order will be set out in secondary legislation, which we will consult on.

Schedule 13 contains consequential amendments to other legislation, which are necessary for the provisions under clauses 31 and 32. I hope that Members will agree that this measure will be an important tool for mayors in delivering the housing and the economic growth and development that we want to see across the country. I commend schedules 12 and 13 to the Committee.

John Hayes (Conservative, South Holland and The Deepings)

In the absence of Mr Simmonds, I call Mr Holmes.

Paul Holmes (Conservative, Hamble Valley)

I will do my best not to disappoint you, Sir John, or the Minister or Government Back Benchers. I welcome the Minister to her place and hope that she feels refreshed after last night’s late sitting; we will try to make this as easy as possible.

In relation to schedules 12 and 13, this is a standard procedure used by the Mayor of London. We see this as a perfectly sensible proposal that unifies the regulations with those existing in London. I will just say this to the Minister, if I can without disappointing her. On proposed new section 61DCA, the Minister outlined that the Secretary of State could direct or issue an order, should local authorities not agree to a mayoral development order. I understand that details will come out in secondary legislation, which is perfectly acceptable, but could she outline to the Committee the balance of power? As I think the Minister respectfully acknowledges, we have been consistently worried that, if this is supposed to be a true devolution Bill, giving power to the Secretary of State to order or issue kind of breaks the spirit of that devolution.

Could the Minister give the Committee some reassurance that the views and objections of local authorities would be taken into proper consideration? What would that balance of power be, should the Secretary of State have to use that order? We do, however, see this as a perfectly reasonable schedule, and will not seek to divide the Committee on it.

Miatta Fahnbulleh (Labour/Co-operative, Peckham)

I thank the hon. Member for supporting the measure. In the event that there is not consensus between a constituent authority and the mayoral strategic authority, it would go up to the Secretary of State in the way that planning applications do currently. The Planning Inspectorate will review it based on its planning merits, in the light of issues and objections that have been raised locally, and the full suite of evidence. It is consistent with the current process for planning applications that are called in. We think this will essentially standardise what we do for individual local authorities currently.

Clause 33 - Power to charge community infrastructure levy

John Hayes (Conservative, South Holland and The Deepings)

With this it will be convenient to discuss the following:

Amendment 289, in schedule 14, page 170, line 15, at end insert—

“, and

(b) must, as far as it relates to the exercise of the mayor’s functions as a charging authority, publish details of—

(i) each instance in which CIL has been charged,

(ii) how much has been raised by the charging of CIL, and

(iii) the impact on delivery of housing infrastructure development.”

This amendment would ensure that mayors charging CIL reported on the effect that this has on housing development.

Schedule 14.

Miatta Fahnbulleh (Labour/Co-operative, Peckham)

Clause 33 and schedule 14 will give mayors of strategic authorities the ability to raise a mayoral community infrastructure levy, or MCIL. I am sure Members will be aware that the Mayor of London’s ability to charge MCIL in London was critical to funding delivery of the fantastic Elizabeth Line. We want to extend the same power to other regional mayors so that they too can fund vital infrastructure that will drive growth and create opportunities in their areas.

The power will not be unconstrained. Mayors will need to have a spatial development strategy in place, meaning that they will have to have a clear plan for meeting overall housing and development targets in their area. Mayors will also need to develop and introduce a CIL charging schedule, which will undergo public consultation, examination and approval. That means that the levy rates that apply to MCIL will strike an appropriate balance between supporting development through infrastructure provision and the potential effect on viability of development. We will provide further detail on what MCIL can be spent on through regulations.

Siân Berry (Green, Brighton Pavilion)

It is a pleasure to have you back in the Chair today, Sir John. I support the clause and schedule 14. It is really important that we have devolved fundraising powers, and this is one of the ways in which that can be done.

I have a question for the Minister about the rules for what mayoral CIL in different areas can be levied to fund. In London, the current regulations restrict spending by the mayor to funding roads or other transport facilities. Is the Minister making changes in the Bill, or will she do so through regulations?

Vikki Slade (Liberal Democrat, Mid Dorset and North Poole)

It is a pleasure to have you back in the Chair, Sir John. I welcome the introduction of MCIL. We have spoken before about how these authorities will be funded, and this is another tool in the toolbox. I am slightly concerned about how it will sit alongside strategic CIL and neighbourhood CIL. I would be really concerned if this took away the portion of money that is available for local neighbourhoods through neighbourhood forums or town and county councils to spend on hyper-local infrastructure, which can otherwise never be funded. I am also interested in the pieces of infrastructure that currently are funded through strategic CIL by an upper-tier authority. Will those responsibilities pass in full across to the mayor, so that we do not end up with a situation where the mayor gets the CIL, but the council gets the responsibility?

That is one of the reasons why we have tabled new clause 1, although the Minister may say we do not need part of it. The first part of the new clause states that the Secretary of State must, within six months of the passing of the Act, prepare and publish guidance on the implementation and administration of community infrastructure levy charges—tt may be that that is going to happen anyway. More importantly, there is the issue of error and incorrect charging. I have been speaking to my hon. Friend the Member for Newbury (Mr Dillon), who has been involved with the CIL Injustice Group, where there have been miscalculated charges, with councils charging up to £100,000 for the community infrastructure levy completely incorrectly. We know that CIL is supposed to be charged on additional dwellings for commercial use, not on self-builds or extensions, but that has happened in a number of councils around the country. There are a couple of councils in Surrey—Waverley in particular has a huge problem. The new Liberal Democrat council in West Berkshire had to pay back £300,000 in total to 18 different constituents who had all been incorrectly charged. In my own county of Dorset, there are cases where people have been incorrectly charged.

In some instances, people have been building their own home and suddenly had a notice put on the path outside. Some have been chased down for huge amounts of money, and some for tiny amounts of money, and have had court charges applied to them. It is a problem that needs solving. Last Monday in the Chamber—I believe you were present, Sir John—two Conservative Members raised cases from their own constituencies. A previous Minister said that a series of households had been badly hit. It is clear that the CIL regulations are not intended to operate in this way. We do not believe our new clause would create a significant new burden on the Secretary of State; it is there to assist, and we would be grateful for a commitment that its provisions will be rolled into the legislation.

Paul Holmes (Conservative, Hamble Valley)

I will speak to amendment 289, in the name of my hon. Friend the Member for Ruislip, Northwood and Pinner, on behalf of the official Opposition. I will also briefly speak to new clause 1. The hon. Lady has just very expertly outlined why the Government should accept it, and the official Opposition agree with her. She is absolutely correct that CIL, although a very good thing, is—not always intentionally, but sometimes negligently—being used in inappropriate ways. Just last week, my right hon. Friend the Member for Godalming and Ash (Sir Jeremy Hunt) mentioned a case in his constituency with his local authority, where somebody was being charged £70,000. That is clearly unacceptable.

Any measure that could improve the regulation and guidance to local authorities, not necessarily to restrict them but to give them clarity—it would also slightly pull on the tail of their coat, so they do not act irresponsibly to people who are responsibly improving their homes—is a good thing. We will therefore be supporting new clause 1 if the hon. Lady chooses to press that to a vote. It clearly does not place an undue burden on the Secretary of State, and it would mean that the system would become more streamlined and transparent. It would give protection to people who are doing the right thing and ensuring that they are following the rules, but the rules are clearly being interpreted in different ways.

Amendment 289, in my name and that of my hon. Friend the Member for Ruislip, Northwood and Pinner, would ensure that the mayors charging CIL report on the effect that this has on housing development. Similarly to new clause 1, we do not think that that would place an undue burden on the legislation or on the necessary parties because, where the community infrastructure levy is being used at the moment, there clearly is a lack of transparency on what it is delivering for local people. The amendment will improve the transparency that mayors and local authorities would be bringing to the table.

CIL is meant to improve infrastructure and make sure that housing is delivered. We have seen across the country places where existing mayors are not necessarily delivering on their housing commitment, particularly in London. We argue that this amendment would bring transparency because a mayor has to account for how they are using CIL and the effect that that would have on housing development in a city region that they control. We think that is a perfectly reasonable amendment.

For that reason, we will press amendment 289 to a vote, and if the hon. Lady the Member for Mid Dorset and North Poole chooses to press new clause 1 to a vote, we will certainly support that today.

Miatta Fahnbulleh (Labour/Co-operative, Peckham)

I will start by addressing some of the questions that were raised, and then move to amendment 289 and new clause 1. There is a key question of how to ensure that the mayoral strategic CIL does not undercut local CILs. The mayor will have to have regard to local CILs that are already being issued, to ensure that there is a balance. The CIL proposal will need to be done in the context of viability assessments, so the mayor will need to think about what is happening at the parish, town and local authority levels in terms of CIL before a strategic CIL is put in place. It is also worth noting that the charging schedule will be subject to statutory consultation. Again, that is another provision to ensure that the right balance is being struck.

The hon. Member for Mid Dorset and North Poole asked what the CIL will be used for. That will be set out in regulations, but we are clear, up front, that it will be for vital infrastructure that can unlock growth and economic development. Therefore, there will be broader permissiveness within that, but we will set that out in further regulations.

On amendment 289, while I fully support the need for transparency in the use of developer contributions to ensure accountability, the amendment is unnecessary because it duplicates existing regulatory requirements. All contribution-receiving authorities are already required to publish an infrastructure funding statement each year. This annual statement must include details on the amount of CIL collected and spent, and information on infrastructure projects funded, or intended to be funded, by CIL.

The CIL regulations are already very prescriptive about what must be included within an infrastructure funding statement. Introducing further reporting obligations is not necessary and potentially risks confusing things and increasing the administrative burdens on strategic authorities.

Finally, we have an additional safeguarding provision: the Planning Act 2008 provides a power for the Secretary of State to make regulations to amend existing reporting requirements, or create new requirements, if it is determined that existing arrangements are not necessary. We think that we already have sufficient provisions within existing legislation, which means that amendment 289 is not required.

Lewis Cocking (Conservative, Broxbourne)

We are talking about a mayoral CIL reset, but some local authorities will not introduce a CIL because they get far more out of section 106 negotiations. Will mayors be able to take part in 106 negotiations if they do not bring in their own CIL? If not, why not?

Miatta Fahnbulleh (Labour/Co-operative, Peckham)

Ultimately section 106 will remain with local authorities. I hope that the process of developing a strategic spatial plan means that the mayor and constituent authorities have already had the conversation about housing development and critical infrastructure that needs to sit alongside it, and how that will be well funded. The CIL is a complementary tool that will sit alongside section 106 and other tools that sit with the local authority but, critically, all should be working toward a collective plan for the area that they have all fed into and engaged with. If that plan is done well, there will be consensus across the piece.

Although I completely appreciate the intentions behind new clause 1—to promote consistency and best practice in how the CIL is administered—they are already achieved under existing legislation and statutory guidance. Regulation already includes provisions for correcting errors in CIL charges, including by issuing revised liability notices and demand notices. There are also clear routes of review and appeal, initially to the local authority itself, but also to the Valuation Office Agency in certain cases, and to the Planning Inspectorate. Those are well established, effective safeguards that are used where developers believe that an error has been made. In addition, the Planning Act 2008 allows a Secretary of State to give guidance to charging authorities or other public authorities about any matter connected with CIL, and the authority must have regard to that guidance. For those reasons, I hope that the hon. Member will feel able to withdraw the amendment.

Paul Holmes (Conservative, Hamble Valley)

I apologise for what I hope the Minister does not think is a discourtesy—it is due to my rustiness on Bill Committee procedure; I last served on the Planning and Infrastructure Bill Committee—but I wish to speak briefly to new clause 28, tabled by my hon. Friend the Member for Ruislip, Northwood and Pinner.

New clause 28 is designed to do exactly what I argue the Liberal Democrat spokesperson, the hon. Member for Mid Dorset and North Poole, wishes to achieve. In her response to new clause 1, the Minister outlined that the Planning Act 2008 gives guidance on the two charging and reporting mechanisms, and if there is a problem with the amount of CIL that has been charged, it gives applicants the right to try to rectify that through an appeal. That is clearly not working; otherwise we would not be talking about the situations that many constituents have faced over the past years, including the cases that the hon. Lady mentioned and the one that I mentioned in which £70,000 is being charged to someone and they are now, I think, a couple of years down the road and cannot get rectification.

New clause 28 is very simply worded and makes it absolutely clear that

“the Secretary of State may not charge CIL on householders’ property extensions that are for their own use.”

I believe that last week in oral questions, the Secretary of State outlined clearly that he thinks there is a problem here, and that the system is currently not working, particularly for people who are doing property extensions for their own use. The new clause clearly aims to mitigate that problem.

Vikki Slade (Liberal Democrat, Mid Dorset and North Poole)

Will the hon. Member comment on the fact that, according to the CIL Injustice Group, £1.65 million has been incorrectly charged. The Minister for Housing and Planning said:

“It is very clear to us that the CIL regulations in question are not intended to operate in this way. We are giving very serious consideration to amending them to ensure that no one else is affected in this manner.”

Will the hon. Member join me in asking why the Minister would not take the opportunity to put that provision in the Bill, when it has a clause specifically about community infrastructure levy?

Paul Holmes (Conservative, Hamble Valley)

I cannot comment on the motivations of the Minister, who I believe is an hon. Lady of utmost integrity, but I suspect that the Government want to amend the Bill on their own terms. The hon. Member for Mid Dorset and North Poole and I both speak for Opposition parties, but we would not make hay if the Minister chose to accept these new clauses. The Government have a position, stated on the Floor of the House of Commons, that CIL is not working for people who tried to follow the rules but are being persecuted and in many cases prosecuted by local authorities, through the wrong charging mechanisms being applied. The Minister outlined the mitigation and the appeal infrastructure that people can currently use, but they are not working either. New clause 1—an admirable new clause—and new clause 28 would make it very clear that people in that situation cannot be charged the CIL.

Miatta Fahnbulleh (Labour/Co-operative, Peckham)

First, I thank hon. Members for tabling these amendments and for raising the issue. I assure the Committee that we know there is a problem here. We are alive to the cases that have arisen, which demonstrate that the CIL, as it should apply, is not working in practice. Although exemptions exist, they are not being applied in the way that they ought to be.

We are giving careful consideration to this matter as part of our commitment to develop a far clearer and more effective contribution system. As I said, I completely appreciate that the intention behind the amendments is to protect a segment of the market that we want to protect; it ought to exempted. I can clearly confirm that we are looking seriously at this matter and we will revert to it at a later stage, so I ask hon. Members not to press their amendments to allow the Government time to consider it properly.

John Hayes (Conservative, South Holland and The Deepings)

I sense that the hon. Members for Mid Dorset and North Poole and for Hamble Valley will want to press their new clauses, but that will come later in our consideration of the Bill.

Clause 34 - Acquisition and development of land

Miatta Fahnbulleh (Labour/Co-operative, Peckham)

Clause 34 introduces schedule 15, which contains provisions to enable strategic authorities outside London to undertake their housing and strategic planning competences. These standardise the extension of powers relating to the acquisition and use of land currently held by Homes England and local authorities to strategic authorities outside London.

Paul Holmes (Conservative, Hamble Valley)

The Minister has outlined the clause and set out the responsibilities and changes she wants to make in a very reasonable manner. This seems a perfectly sensible solution; it encourages more transparency and accountability in some of the actions that Homes England undertakes. People in my constituency feel that some of the money allocated to development through the current channels of scrutiny and planning is not necessarily in lockstep with what they want for their local areas. As I have said throughout, a devolution Bill should mean true devolution, so I think these responsibilities coming under the remit of the new authorities is a good thing. I welcome this addition to the legislation.

Schedule 15 - Acquisition and development of land

Miatta Fahnbulleh (Labour/Co-operative, Peckham)

I beg to move amendment 109, in schedule 15, page 173, line 7, leave out paragraph (a) and insert—

“(a) in subsection (1), after ‘HCA’ insert ‘or a strategic authority outside London’;

(aa) in subsection (2), after ‘HCA’ insert ‘or a strategic authority outside London’;”

This would alter the amendment of section 9(2) so that the function there would not be conferred on the GLA (only on strategic authorities outside London).

John Hayes (Conservative, South Holland and The Deepings)

With this it will be convenient to discuss the following:

Government amendments 110, 111, 127 and 128.

Miatta Fahnbulleh (Labour/Co-operative, Peckham)

The Bill gives the Greater London Authority, as well as other strategic authorities, the powers of Homes England to acquire land both by agreement and by compulsory purchase. Government amendments 109 to 111 change that, ensuring that the power is conferred only on strategic authorities outside London. This is because the Greater London Authority already has similar powers under the Greater London Authority Act 1999, and so does not need the additional powers, and duplicating powers could create legal uncertainty and confusion. We are providing greater certainty by clarifying these provisions.

Similarly, the Bill provides that part 1 of the Compulsory Purchase Act 1965 applies to all strategic authorities, as well as Homes England. Government amendment 127 clarifies that this should be applied only to strategic authorities outside London, as functions of Homes England are to be conferred only on those authorities. Again, The Greater London Authority already has similar powers to acquire land by agreement through the Greater London Authority Act.

Government amendment 128 would place conditions on how strategic authorities outside London use land that is not consecrated or a burial ground and that at the time it was acquired had a building being used or previously used for religious worship. The use of this type of land is subject to prescribed requirements about the disposal of monuments. This is in addition to the requirement extended in relation to land that contains burial grounds or consecrated land, which is already extended by schedule 15(10).

At present, this provision applies only to land acquired by Homes England, and the amendment would extend it to strategic authorities. This change ensures consistency in how land powers are applied across different public bodies. This is a small change, but it is necessary to ensure that the legislation works properly and longstanding protections are not lost.

Miatta Fahnbulleh (Labour/Co-operative, Peckham)

I beg to move amendment 112, in schedule 15, page 173, line 30, leave out “authorities” and insert “councils”.

This would change the provision to use the correct term “constituent council”.

John Hayes (Conservative, South Holland and The Deepings)

With this it will be convenient to discuss Government amendments 114, 115, 117, 119, 120, 131, 133, 134, 136, 138, 139, 159, 161, 162, 164, 166 and 167.

Miatta Fahnbulleh (Labour/Co-operative, Peckham)

These amendments make a series of technical corrections to ensure that the Bill uses the correct terminology. They replace the word “authority” or “authorities” with “council” or “councils” in several places in schedules 15 and 16. The change is important because the term “constituent council” or “councils” is the defined and accurate term used elsewhere in the legislation for the local authorities that form part of the combined authority or the combined county authority.

Using consistent language helps to ensure that the Bill is clear, legally precise and easy to interpret, and avoids confusion about which bodies are being referred to. The amendments do not change the substance of, or intent behind, any of the provisions; they simply improve their clarity and consistency, and hopefully result in a lack of confusion—although I am not clear that they do—in the drafting. I encourage the Committee to support the amendments, to help to maintain the accuracy and integrity of the Bill.

Miatta Fahnbulleh (Labour/Co-operative, Peckham)

I beg to move amendment 113, in schedule 15, page 173, line 31, at end insert—

“(c) the Broads Authority.”

This would make the Broads Authority a consultee if any of the land proposed for compulsory acquisition is in its area.

John Hayes (Conservative, South Holland and The Deepings)

With this it will be convenient to discuss Government amendments 116, 118, 121, 123, 125, 132, 135, 137, 140, 160, 163, 165, 168 and 169.

Miatta Fahnbulleh (Labour/Co-operative, Peckham)

These amendments add the Broads Authority to the list of bodies that must be consulted by mayoral strategic authorities or provide their consent to non-mayoral strategic authorities before land in its area is compulsorily acquired using powers devolved by the Bill. The broads are a nationally important landscape with equivalent status to a national park, and the Broads Authority is best placed to advise on the potential impact of land acquisition in its area. This is about ensuring proper engagement with the right bodies when decisions affecting sensitive and protected areas are made. That reflects the approach already used by existing authorities and ensures that all constituent councils have a clear and accountable role in the decision-making process.

John Hayes (Conservative, South Holland and The Deepings)

We are moving ahead with alacrity, are we not?

Miatta Fahnbulleh (Labour/Co-operative, Peckham)

I beg to move amendment 122, in schedule 15, page 174, line 15, after “council” insert

“that is a strategic authority”.

This would clarify that subsection (8) applies to a county council only if it is a strategic authority (in line with the application provision in subsection (1) of the new section 9A).

John Hayes (Conservative, South Holland and The Deepings)

With this it will be convenient to discuss Government amendment 124.

Miatta Fahnbulleh (Labour/Co-operative, Peckham)

These amendments are, again, about making the legislation clearer and more consistent. They confirm that only councils that are strategic authorities are subject to the additional consent requirements when using the compulsory purchase powers in the Housing and Regeneration Act 2008. This matches what was already set out in subsection (1) of proposed new section 9A of that Act.

Without those changes, there would be confusion about whether all county and district councils are included. That is not the intention: these provisions are meant to apply only where councils are designated as strategic authorities. The amendment is helpful to avoid misinterpretation and ensure that the Bill is applied as intended.

Miatta Fahnbulleh (Labour/Co-operative, Peckham)

I beg to move amendment 126, in schedule 15, page 174, line 29, at end insert—

“Main powers in relation to acquired land

6A In section 11, omit ‘by the HCA’.”

This would reflect the effect of the Bill on Schedule 3 to the Housing and Regeneration Act 2008.

This technical amendment again ensures consistency in how the Bill amends existing legislation. It removes the words “by the HCA” from a reference in section 11 of the Housing and Regeneration Act 2008 to schedule 3 to that Act. In paragraph 10 of schedule 15 to the Bill, “by the HCA” is already being removed from the heading of schedule 3 to the 2008 Act. This change aligns with that. The original wording refers specifically to Homes England, and no longer reflects the full range of bodies that may exercise those powers under the Bill.

This amendment ensures the legislation is clear and accurate, and I encourage the Committee to support it to ensure that we have clarity and consistency across our legislation.

Miatta Fahnbulleh (Labour/Co-operative, Peckham)

I beg to move amendment 129, in schedule 15, page 179, line 34, leave out from “(6)” to end of line 4 on page 180 and insert—

“(a) in paragraph (bb), omit ‘and’;

(b) after paragraph (c) insert—

‘(d) if the land is in the area of a strategic authority to whom this section applies, consult with that strategic authority (in addition to any other consultation required by this subsection).’”

This would require the Secretary of State to consult a strategic authority (as well as the local authority) before authorising a compulsory acquisition

John Hayes (Conservative, South Holland and The Deepings)

With this it will be convenient to discuss Government amendments 130, 143 and 152 to 154.

Miatta Fahnbulleh (Labour/Co-operative, Peckham)

Amendment 129 revises the consultation process when the Secretary of State is authorising the compulsory acquisition of land. It removes a provision that would have required consultation with a strategic authority instead of the relevant local councils, and adds instead a requirement to consult the strategic authority as well as the councils where the land is located. This ensures that both local and strategic authorities are involved in decisions affecting land in their area. It is a practical and balanced amendment.

Amendment 130 removes the provision that makes the mayor the person responsible for exercising the compulsory acquisition of land function in the Town and Country Planning Act 1990. Instead, the powers will be exercised by the mayoral combined authority or mayoral combined county authority. This is consistent with how the function is currently exercised in most existing mayoral strategic authorities, where decisions about how to use the function are taken collectively. The amendment does not affect the ability of authorities to make timely and effective decisions on land acquisition; it simply ensures that there is collective buy-in behind the decision.

Amendments 143, 153 and 154 ensure that all local authorities, non-mayoral combined authorities and non-mayoral combined county authorities have access to the same powers and restrictions in relation to acquiring and using land under the Town and Country Planning Act. At present, only mayoral combined authorities and mayoral combined county authorities are covered by these provisions, because they are included in the Act’s definition of local authorities. This creates an unnecessary gap in the legislation, which the amendments seek to close. These are technical but important changes that support fairness, consistency and effective delivery across all areas with devolved powers.

Finally, amendment 152 is again technical, but is an important clarification to ensure that the Bill works as intended. It updates the wording to confirm that the proposed new subsection (4) contained in paragraph 21 of schedule 15 applies to both section 238 and section 239 of the Town and Country Planning Act. These sections deal with the use and development of consecrated land and burial grounds. This is a technical amendment that ensures consistency and accuracy across all our legislation.

Miatta Fahnbulleh (Labour/Co-operative, Peckham)

I beg to move amendment 141, in schedule 15, page 181, line 10, leave out “combined authority or” and insert

“non-mayoral combined authority or non-mayoral”.

Mayoral combined authorities and CCAs do not need to be added to this section as they are already within the definition of “local authority” in section 336 of the Town and Country Planning Act 1990 (as precepting authorities).

John Hayes (Conservative, South Holland and The Deepings)

With this it will be convenient to discuss Government amendments 142 and 144 to 151.

Miatta Fahnbulleh (Labour/Co-operative, Peckham)

These amendments make a small but important clarification to part 2 of schedule 15. They ensure that the provisions explicitly insert only references to non-mayoral combined authorities and non-mayoral combined county authorities. This is because mayoral combined authorities and mayoral combined county authorities already have these powers conferred upon them by the Town and Country Planning Act 1990. Specifically, they fall within the definition of “local authorities”, so including them is unnecessary. These amendments do not remove any powers from mayoral combined authorities or mayoral combined county authorities; instead, they are small, technical amendments that simplify and clarify, and they are important for the consistency and coherence of the Bill.

Clause 35 - Housing accommodation

John Hayes (Conservative, South Holland and The Deepings)

With this it will be convenient to discuss the following:

Government amendments 155 to 158 and 170.

Schedule 16.

Miatta Fahnbulleh (Labour/Co-operative, Peckham)

Housing is a national priority for this Government, and these provisions play an important role in enabling strategic authorities to contribute meaningfully to this core mission. This is particularly true where regional leadership is needed to unlock delivery. These provisions enable strategic authorities to assess housing demand, provide amenities and acquire land. Land may be acquired compulsorily, subject to consultation in the case of mayoral strategic authorities, and via consent, in the case of non-mayoral strategic authorities. I believe this drives cohesive regional solutions.

Some may argue that local councils have sufficient powers, but the clause grants strategic authorities the scope for the transformational, region-wide impact that I know Members across the House want to see. Clause 35 and schedule 16 harness proven powers to meet regional housing goals, and I commend them to the Committee.

Amendment 156 would ensure that combined authorities, combined county authorities, and two-tier county councils designated as strategic authorities can provide housing accommodation, not just local housing authorities. These bodies are playing a growing role in housing delivery and strategic planning, and the amendment enables them to take a more active role in housing provision if they choose to. The change supports a more flexible and joined-up approach to housing delivery across an area.

Amendments 157 and 178 give the relevant authorities more flexibility to support housing provision in their areas. They allow local housing authorities, combined authorities, combined county authorities, and two-tier county councils designated as strategic authorities to provide and maintain facilities such as shops and other amenities linked to housing accommodation. That will enable housing and related services to be delivered in partnership across different tiers of government where appropriate.

Finally, amendment 170 is a straightforward technical amendment to correct a reference in the Bill to the Housing Act 1985. The change ensures that it is clear that both duties in relation to buildings suitable for housing apply to combined authorities, combined county authorities and two-tier county councils.

Paul Holmes (Conservative, Hamble Valley)

We know that these powers are used by existing authorities, so we are not going to rock the boat on this one, but I will briefly respond to the Minister. She stated that housing is, quite rightly, the Government’s top priority, and that these provisions enables that priority to be delivered, but where these powers already exist we see mayors not delivering on housing commitments. I think of London, where the mayor who has these powers is not delivering houses; in fact, building in London is at an all-time low, and houses are not being delivered for the people who genuinely need them in our capital city.

Mike Reader (Labour, Northampton South)

A big reason we have a problem with housing numbers is the Building Safety Regulator. There will be a Back-Bench debate on it on Thursday, which I am sure the Minister will attend in order to give the Opposition’s views. It is critical that we get that sorted to get house building going.

Paul Holmes (Conservative, Hamble Valley)

I thank the hon. Gentleman for promoting me to Minister; I cannot wait for that to happen one day. I suspect that I will have more grey hair, and less hair. He is correct, and I am on the record as having spoken about this: the Building Safety Regulator is a barrier to building. I know that this is slightly out of scope, but I have offered to work with Ministers on a genuine cross-party basis to try to remove some of the burdens on the Building Safety Regulator, which I think has purview over too much that is not material to the delivery of housing.

I agree with the hon. Gentleman, but in terms of the current powers, the mayor is not delivering, and the Government are not delivering on their promise of 1.5 million homes. The Secretary of State yesterday said that his job would be on the line if he did not deliver the 1.5 million homes. I suspect that we will see a sacking in the not-too-distant future, because everybody in this country who is an expert in housing—there was a documentary on it just this week—says that the Government will not achieve their stated aim of building that number of homes.

The clause in itself is not a panacea that will unlock huge housing growth in our cities. The Minister should be careful not to overpromise and underdeliver, as her mayors consistently do across the country. However, we know that this is a unification and simplification of the system. We will not divide the Committee on the clause. This is a perfectly sensible solution, but let us not pretend that it is a sledgehammer that will crack a nut, and cause the Government to achieve their aims across the country.

Miatta Fahnbulleh (Labour/Co-operative, Peckham)

It would be remiss of me not to address some of the issues in London. We recognise that we have a housing challenge in London and across the country. I suggest that the hon. Member show a little more humility, because the consequences are the legacy of the Conservative party. He did not mention that the Conservatives in government slashed housing targets across the country, which throttled development; or that they crashed the economy and caused mortgages to rise, which had an impact on demand. He did not mention their record on inflation, which increased construction costs.

Paul Holmes (Conservative, Hamble Valley)

We really should not accept this party political broadcast. One million homes were built over the lifetime of the previous Parliament. Can the Minister explain to the Committee why housing delivery is at an all-time low? Why is it that experts in the housing sector, including the Home Builders Federation, say that the 1.5 million homes that the Government have promised simply cannot be delivered, and the Chancellor’s own figures show that only 1.1 million homes will be delivered? That is a failure on the promise that she made, is it not?

Miatta Fahnbulleh (Labour/Co-operative, Peckham)

If we look at a graph, we see that housing starts plummeted in 2023. I do not know whether the hon. Member wants to remind the Committee who was in power at that time—it was the Conservative party. We are trying to accelerate housing development, and we have a 1.5 million target that we are committed to delivering. That is not to underestimate the incredible difficulty, but we believe that homes are a requirement and a necessity. We have a homelessness crisis and a temporary accommodation crisis, so we have to get to grips with this. That is why we are doing the job of accelerating housing development. The amendments, and giving strategic authorities the powers that will enable them to play a role, are critical to that endeavour.

John Hayes (Conservative, South Holland and The Deepings)

I have been generous in allowing that debate to range rather more widely than might generally be thought acceptable. After all those technical amendments, we needed a bit of debate, did we not?

Schedule 16 - Housing accommodation

Clause 36 - Mayoral development corporations

Miatta Fahnbulleh (Labour/Co-operative, Peckham)

The clause grants mayors of strategic authorities outside London the power to create mayoral development corporations. They are another tool for mayors to enable regional regeneration and economic development. Stripping away these provisions would limit regional ambition. The clause gives effect to schedule 17, allowing mayoral development corporations to spearhead land acquisition, planning and infrastructure projects. This will help to foster jobs, unlock growth, drive infrastructure development and attract investment into our regions.

Schedule 17 - Mayoral development corporations

Paul Holmes (Conservative, Hamble Valley)

I beg to move amendment 290, in schedule 17, page 193, line 2, at end insert—

“7A After section 202, insert—

‘202A: restrictions on designation of greenfield land

Where an MDC exercises any functions in relation to the designation of land for development, the MDC must not designate any development on greenfield land unless there is no available land that has not previously been developed.’”

I rise to speak to the amendment, which is in the name of my hon. Friend the Member for Ruislip, Northwood and Pinner. Although we welcome mayoral development corporations, since this Government came to office an environment has been created, if Members will forgive the pun, where it is easier to build in rural areas but harder to develop our urban centres. As we mentioned in a debate last week, the Government’s planning and building conditions are making it harder to densify urban centres. We have discussed the housing targets in rural and urban areas, and now mayoral development corporations are being created. That is perfectly acceptable, but we do not think it protects the green belt across this great green and pleasant land, and it will essentially allow mayors to build on greenfield land without the necessary checks and balances.

The amendment is simple. We tabled it because we want to make it much easier to build in areas of existing development where there is scope for densification, and we want to protect green belt and greenfield land by restricting building on it where many people to whom the mayor is accountable simply do not want that to happen. The amendment would not rule out such development completely, but it would make the MDC more streamlined and disciplined about unlocking areas where infrastructure exists and it is easier to build, rather than using green fields, where we believe development is more difficult and takes longer.

Miatta Fahnbulleh (Labour/Co-operative, Peckham)

I understand the intent behind the amendment. Mayoral development corporations are already subject to the national planning policy framework, which reflects the brownfield-first approach that the hon. Member has talked about, encourages densification where it makes sense and includes strong protections for greenfield land. We think the provisions already exist, because any mayoral development corporation must have regard to the national planning policy framework.

We believe it is important to give mayoral development corporations flexibility, however, because there will be instances, in the case of urban extensions or new towns, when the decision needs to be made to build on greenfield land. We think that the amendment would disproportionately restrict mayoral development corporations and place on them additional restrictions that do not apply to other bodies. Ultimately, it would reduce mayoral development corporations’ flexibility, slow down delivery and add unnecessary constraints on decision making. For that reason, we do not support it, and I ask the hon. Member to withdraw it.

Paul Holmes (Conservative, Hamble Valley)

I understand where the Minister is coming from, and I am inclined not to press the amendment to a Division but to treat it as probing. She is aware that I have long advocated for, and pushed her and the Government on, the incentivisation of densification. In our debate on amendment 304 last week, I think she reasonably accepted that a densification strategy was needed. She has come back to the NPPF today, but that is simply not working. We tabled amendment 304 and this amendment to solidify the position. We think that that is a perfectly reasonable approach to the guidance and regulations.

I hope for some reassurance from the Minister that she and the Government will look at further action regarding that incentivisation. If I get that reassurance, I will withdraw the amendment.

Miatta Fahnbulleh (Labour/Co-operative, Peckham)

I am happy to provide reassurance in writing.

Paul Holmes (Conservative, Hamble Valley)

I beg to ask leave to withdraw the amendment.

Vikki Slade (Liberal Democrat, Mid Dorset and North Poole)

I beg to move amendment 60, in schedule 17, page 195, line 23, leave out from “that” to end of line 24 and insert

“the majority of members of an MDC are elected members of relevant councils”.

This amendment would require that the make-up of Mayoral Development Corporation boards must have a majority of members from constituent councils.

We welcome the introduction of the mayoral development corporations across the country. Some good successes have been achieved in London; not many miles from here, the Queen Elizabeth Olympic Park continues to grow and expand, and it has some incredible facilities, including a new arts hub.

The one small thing that we would like the Minister to consider is the make-up of the corporations. It is important that people trust the organisations that are doing such large-scale development, which can potentially make enormous changes to the landscapes around them, whether on credible brownfield sites or, as others have said, through new towns or greenfield development, about which people are far more sensitive.

The Bill states that a mayoral development corporation must have at least one member from each constituent authority and that there must be no fewer than six members, but it does not give a maximum number. There is a real risk that if there is simply one member from each authority—some of these authorities are fairly large to start with—the majority of a corporation may be made up of people who are not connected to the community. It is absolutely right that there should be expertise, strategic people, and perhaps people from other sectors with skills, talents and experience from other places or sectors, but the organisation needs to be locally led. That is why my amendment 60 simply states that a majority of members of an MDC should be

“elected members of relevant councils”.

We think that that is a minor amendment that would benefit and broaden trust, and lock it in to local decision making.

Miatta Fahnbulleh (Labour/Co-operative, Peckham)

I recognise the hon. Member’s intention to strengthen the voice of local councillors in the decision making of mayoral development corporations in their areas, and I support that intent. The Bill will introduce a requirement on mayors outside London to appoint at least one elected member from each council in which the development corporation operates. That mirrors the existing requirement on the Mayor of London, which has been in place since 2011, and how this function has been conferred on mayors outside London so far. That is working; the evidence from on the ground and from practice is that this approach is the right one and strikes the right balance.

I agree with the hon. Member that membership of a mayoral development corporation should absolutely include local expertise from the relevant councils, but it is important that it should be led by people with experience and capacity in the matters that the corporation is taking forward and delivering. When they work well, the corporations bring together local and technical expertise from both the public and private sectors to address complex, long-term projects that in most cases will take longer than an election cycle to deliver.

I worry that the amendment would weaken the mayor’s ability to choose the right mix of expertise that he or she and the strategic authority need in the mayoral development corporation, and limit the corporation’s capacity to drive delivery. Although we agree that there must be council representation, we think that the amendment as drafted provides that, without binding the hands of the mayor, in a way that allows them to bring in any key technical experience that they might need from outside their area in order to deliver impact on the ground.

Miatta Fahnbulleh (Labour/Co-operative, Peckham)

Schedule 17 equips mayors with the tools they need to drive the critical function that we are asking them to. Mandatory consultation with councils where development corporations are proposed ensures transparency and collaboration. Preserving these provisions strengthens our devolution framework, enabling regions to take targeted, strategic action to boost growth, drive development and create jobs. They add no new duties, but only extend proven mechanisms.

Clause 37 - Assessment of economic conditions

John Hayes (Conservative, South Holland and The Deepings)

With this it will be convenient to discuss schedule 18.

Miatta Fahnbulleh (Labour/Co-operative, Peckham)

Strategic authorities, as we have said consistently in discussing the Bill, are a key driving force for local growth. To lead growth for its area, the authority must understand its local economy. That is why this clause will provide combined or combined county authorities with a duty to assess the economic conditions of their areas.

Local councils will continue to play a critical role in formulating the strategic authority’s understanding of the local economy. Combined and combined county authorities will be required to consult and work with the councils in their area when building their assessment of economic conditions. This requirement will ensure that the economic strategy for an area combines a strategic, regional assessment of opportunities with a ground-up understanding of local economies. The duty has been long held by strategic authorities without issue and empowers them to develop a holistic understanding of their local economies.

Paul Holmes (Conservative, Hamble Valley)

Briefly, could the Minister elaborate on some of the consultation mechanisms that the strategic authority would use with the authorities that currently have the power? We completely understand why she has introduced this, but throughout proceedings in Committee, we and the other Opposition parties have expressed concern about the erosion of existing authorities’ responsibilities with the centralisation that is going on. Will the Minister elaborate on how much weight the new authority will give local authorities’ considerations?

Miatta Fahnbulleh (Labour/Co-operative, Peckham)

We are very clear that although we want a strategic assessment of the economic opportunities and risk in an area, and a local growth plan that crosses that area, it must be informed by constituent authorities. The way it is working in practice—we hope the legislation enables this—is that constituent authorities bring into the conversation their understanding, insights, analysis and key priorities for the area, and a collective decision is made. Ultimately, I come back to the point I have made consistently: the mayor’s capacity to be effective and deliver is only as strong as their relations and collaboration with constituent authorities.

Clause 38 - Local growth plans

John Hayes (Conservative, South Holland and The Deepings)

With this it will be convenient to discuss the following:

Miatta Fahnbulleh (Labour/Co-operative, Peckham)

The clause introduces schedule 19, which requires mayoral combined authorities and county authorities to produce and publish a local growth plan—a critical tool and document for driving the developments, jobs and prosperity that we want to see in areas. We will discuss schedule 19 in more detail later in the debate.

Siân Berry (Green, Brighton Pavilion)

I rise to speak to my new clause 29 and new schedule 1, which seek to replace clause 38 and schedule 19. They would replace local growth plans with inclusive economy plans, which, following an enhanced process of consultation and approval, would have the same prominence in terms of policy priorities as the proposed growth plans. While we have adopted much of the same drafting and general process, wherever the goal of growth appears, my new version says instead that our goal would be an inclusive economy or economic inclusivity.

It is important to confront the harmful concept of growth for the sake of growth. Prioritising economic growth, wherever it may come from, above everything else is wrong. Growth may be the Government’s No. 1 mission, but what is the point if it does not serve the people? Growth alone is insufficient to address inequality and the environmental crisis. For example, gross domestic product has roughly doubled since 1980, yet the richest five households in the UK own more wealth than 13.2 million people. When it comes to jobs, growth has not delivered, with low pay and stagnant real wages the reality for most.

A test of the Bill, and indeed the Government, will be whether it succeeds in moving beyond growth alone to creating an economy where everyone can thrive. That has to begin with clear intentions for the type of economy we want to build, not growth at any cost. In the case of local government and the new strategic authorities, how this is codified in the prescribed strategies for each area is important. That is the core reason why, working with the Centre for Local Economic Strategies, I have proposed this change to the core goals in the central economic strategy that each local authority will produce.

Those comparing our new schedule with the original will see that, in paragraph (3), proposed new sections 107L of the Local Democracy, Economic Development and Construction Act 2009 and 32A of the Levelling-up and Regeneration Act 2023 add further steps to the process of developing a plan so that it can be tailored to each local area through appropriate local indicators of progress. Paragraph (4) of the new schedule would require mayors to bring the public into both setting local indicators and setting out how the plan will help to achieve the inclusive economic outcomes that cover the necessary ingredients for a good life in that area. That is because, if they are going to shape a local economy, they need to listen and deliver for the people who live and work in it.

In respect of setting goals and improving engagement beyond what is in the Government’s version of the new schedule, I can see on the amendment paper a number of excellent proposals from my Liberal Democrat colleagues that would enhance my new version of this schedule. To save time when we debate them shortly, I particularly support amendments 359, 360, 364 and 365, to which I have added my name.

Support for more inclusive economic planning under these devolution plans also comes from Reclaiming Our Regional Economies, the programme developed by the New Economics Foundation, the Centre for Local Economic Strategies, Co-operatives UK and the Centre for Thriving Places. Their report “Whose growth is it anyway?”, published earlier this year, raised the alarm about the framing of local growth plans and the industrial strategy in the Government’s Green Paper, saying that

“the question we should be asking ourselves, is who is going to benefit from this growth? The evidence suggests it certainly won’t be the majority of us.”

The report also points out the problems it will cause, adding that

“the current framing of local growth plans and the industrial strategy presents regional authorities with a dilemma. They are being asked to write economic plans that make the regional economy more productive, within an extractive economic investment model. This will at best see living standards stagnate and at worst, worsen.”

Perran Moon (Labour, Camborne and Redruth)

I am troubled by this concept. In my constituency, which is one of the most deprived in the United Kingdom, we have an opportunity to invest in a vast range of renewable energy to mine again critical minerals that will accelerate the transition away from fossil fuel use in order to transition to an economy based on green energy. I would like the hon. Lady to clarify this, but I think she is suggesting that that kind of growth is not acceptable in some way, and that we cannot have good-quality green growth that supports jobs in areas of extreme poverty and deprivation and deals with the challenges of international imports from areas of the world that do not share our values.

Siân Berry (Green, Brighton Pavilion)

That is a good question. Where there are opportunities to develop new industries and new jobs and create new economic activity, my new schedule enables local communities such as those in Cornwall to set inclusive economy indicators. In the examples given, that might mean that those new industries are owned and managed by the local people and the local community, rather than through outside investment from extractive industries that will take the profits elsewhere. Those are things for the local community to decide under the new schedule.

I will just finish the quote from the report by the New Economics Foundation and its allies:

“At a time of eroding trust in politics, this is a major problem for combined authorities elected to make the economy work better for people .”

My new clause and new schedule will help authorities to become more purposeful about developing their own unique economies and economic opportunities in a way that truly builds a better economy that serves local people, and not just more production and profits that can be extracted away from them without improving everyday lives. It will bring more people more inclusively into the local economies that we want to develop.

I will not press my proposals to a vote today, but I hope that the Minister has listened and will recognise that the current Government proposals could create the wrong incentives and the wrong measures of progress, and might risk producing the wrong outcomes for the people who live in the areas that will be governed by these economic plans. I also hope that she will make improvements similar to my proposals before the next stage of this Bill.

Paul Holmes (Conservative, Hamble Valley)

I will speak briefly not only to clause 38 but to new clause 9 and new schedule 1. Although the hon. Member for Brighton Pavilion has indicated that she does not wish to push these measures to a vote, it is important that we address her well-intentioned amendments. I absolutely agree with her about the economic situation that this country currently faces, caused by the Labour Government. However, we have a fundamental disagreement about the solution that she outlines.

That is because the Government are doing the right thing here in making sure that local growth plans are adequate and can do what they say on the tin: deliver economic growth for the people the mayor serves and the people we serve. I would argue that, if the economic situations are right, as set down in the powers that the Government are outlining, inclusivity is absolutely enshrined within those powers. If we have growth, twinned with the protections currently within legislation in this country, such as environmental protection, corporate social responsibility and some of the equality legislation that we have, inclusivity will be delivered by the new businesses created by the people being empowered to set them up, and those businesses will be able to grow because of some of the measures that the Government are introducing.

The hon. Lady mentioned consultation and inclusivity in terms of people being able to shape their futures. I believe that that is a debate that we had last week when we were considering her amendment on citizens’ assemblies—she knows my oft-stated view on those. I will not tell the Committee that view again, because my blood pressure might rise slightly if I did. Once again, however, I will argue that the point at which there is inclusivity and advocacy from people is at an election, and that the mayor will be judged at an election on whether they have been able to deliver economic growth and whether they have fundamentally made life better for their constituents over the time that they have been in office.

Siân Berry (Green, Brighton Pavilion)

Is the hon. Member really saying that that he is against asking the people of a local area what would constitute a good economy for them and making that the focus of the mayor’s economic indicators? Also, if all of these proposals are going to be put into manifestos at election time, how long does he envision the manifestos for these mayoral elections being?

Paul Holmes (Conservative, Hamble Valley)

The way that people want their economy to go is to have growth, and for them to be able to pay their bills, feed their families and have good jobs. I say to the hon. Lady that any mayor who does not put those things in their manifesto is not worth electing. An election is the point at which the mayor should be held accountable. Any mayor who says that they would not want to make their local economic situation better and improve the lives of their citizens should not be elected. The current legislation that we have enables people perfectly reasonable input into the journey that a mayor might take over their mayoral term.

I believe that over the course of the last few Governments, the House of Commons has made great strides in protecting the environment and in making sure that mayors and public authorities, as well as private businesses, are responsible in how they treat their people, but also grow with the environmental and other protections that are necessary. While I understand the hon. Lady’s argument and I genuinely have a great deal of respect for her, the unintended consequences of the new clause and the new schedule will be to restrict growth, and to restrict the power of the mayor to have a responsible attitude to enabling growth on an even basis within the system that we currently have.

The hon. Lady’s proposals would be restrictive, but they would also take us back. A mayor should be unrestricted in their ability to deliver the growth and prosperity for the people they serve. I do not believe that the new clause and new schedule would do that. I know that the hon. Member for Brighton Pavilion is not pushing those to a vote, but if she did, we would not be able to support it, and we would vote against it.

Miatta Fahnbulleh (Labour/Co-operative, Peckham)

I thank the hon. Member for Brighton Pavilion for tabling the new clause and new schedule. Let me put on record that I completely agree with the goals of an inclusive economy; they are right, and we have a lot of sympathy for that. This Government are clear that we have to get the economy to work better for people, and I am obliged to remind everyone that over the last 14 years that was not the case.

Ultimately, mayors must have a democratic mandate, and the mark of success will be not just economic growth, but the economy impacting on people’s living standards, jobs and wages—bread and butter, tangible things. We think that the aims that the hon. Lady is trying to achieve are already locked into the Bill. If we achieve growth only on a graph and people do not feel it, our residents, voters and electorate will ensure that we pay the price. Therefore, that democratic lock is already baked into the Bill.

It is also worth saying that local growth plans, as set out in the Bill and as conceived, are a manifesto commitment for this Government, and the existing, established regional mayors have already developed their plans, with many starting to publish them already. By focusing on challenges around housing, transport, skills, employment and innovation, those plans will set the framework for unlocking the growth potential of those areas. As I said, growth only matters if it has a tangible impact on people. The strategic authorities that we are working with absolutely understand that and are trying to drive through measures that will deliver it.

We have already agreed growth priorities with 12 mayors. Those priorities are underpinned by a robust evidence base and a shared understanding of the biggest cross-cutting challenges and opportunities for economic development in those areas. Inclusivity, people and the impact on communities are absolutely central to that. The Government want to see more jobs, more money in people’s pockets, higher wages and investment that touches each and every one of our communities. One of the things we think mayors can do, when we devolve, is to ensure that they rewire their local economics in a way that gives people a greater stake.

Through co-operative ways of organising things, as in Liverpool city region and Greater Manchester, we are seeing new models that put people and communities front and centre to ensure that the growth and development that happens fundamentally benefits people. I believe that we have already baked in the intent behind the hon. Lady’s new clause and new schedule within the very design of this policy, but, more importantly, the power of democracy will drive and unlock it: if mayors and this Government do not deliver for people in our communities, we have the ballot box by which people can show their discontent. I think the hon. Lady has already said that she is not pressing the new clause and new schedule to a vote.

John Hayes (Conservative, South Holland and The Deepings)

If Ms Berry wanted to test on the Committee’s view on the new clause and new schedule it would come at a later stage anyway. Members will remember that we are debating clause 38.

Schedule 19 - Local growth plans

Vikki Slade (Liberal Democrat, Mid Dorset and North Poole)

I beg to move amendment 54, in schedule 19, page 200, line 17, at end insert—

“(d) comply with any Land Use Framework issued by the Secretary of State, and

(e) comply with any local nature recovery strategies applicable to the area covered by the authority.

(2A) The Secretary of State must take steps to support a mayoral combined authority in complying with the provisions of paragraphs (2)(d) and (2)(e) of this section.”

This amendment requires mayoral combined authorities to ensure their local growth plans comply with any overarching Land Use Framework and relevant local nature recovery strategies.

John Hayes (Conservative, South Holland and The Deepings)

With this it will be convenient to discuss amendment

Amendment 55, in schedule 19, page 202, line 14, at end insert—

“(d) comply with any Land Use Framework issued by the Secretary of State, and

(e) comply with any local nature recovery strategies applicable to the area covered by the authority.

(2A) The Secretary of State must take steps to support a mayoral combined authority in complying with the provisions of paragraphs (2)(d) and (2)(e) of this section.”

This amendment requires mayoral CCAs to ensure their local growth plans comply with any overarching Land Use Framework and relevant local nature recovery strategies.

Vikki Slade (Liberal Democrat, Mid Dorset and North Poole)

The amendments would ensure that the local growth plans schedule makes reference to, and considers in some reasonable depth, the needs of nature. I have gone back through the schedule, and I cannot see any reference to nature, nature recovery, or anything that suggests that the Government understand the rural economy. It feels very much like a schedule that is written with towns in mind.

My hon. Friend the Member for Taunton and Wellington (Gideon Amos), the Liberal Democrat spokesperson for housing and planning, spoke in the Planning and Infrastructure Bill Committee—I am sure some colleagues in here were also on that Committee—about the importance of bolting in the land use framework to the planning system. I think he described it as otherwise being

“an expensive waste of time”.––[Official Report, Planning and Infrastructure Public Bill Committee, 29 April 2025; c. 94.]

Fundamentally, there is a real risk of a failure to think about the needs of rural economies such as Cornwall’s, which are reliant on the way that we use our land. Those may not be traditional uses of the land—they may be ancient industrial ones—but those need to be considered.

It is interesting that the shadow Minister, the hon. Member for Hamble Valley, referred to previous Governments making great strides in environmental protection. It is hugely important that that is actually baked in here. Without a specific reference to both the land use framework and the requirement for the growth plans to comply with local nature recovery strategies, there is a real risk that we will end up losing the very things that make these places special.

Paul Holmes (Conservative, Hamble Valley)

The hon. Lady and I are veterans of the Planning and Infrastructure Bill Committee. She is absolutely right to outline some of the comments made in that Committee, because that Bill has fundamental consequences for this legislation. Does the hon. Lady share my concerns that not only is nature not included within local growth plans, but the consequences of the Planning and Infrastructure Bill will mean that nature will not feature at all in some of the planning decisions made in the development of those local growth plans?

Vikki Slade (Liberal Democrat, Mid Dorset and North Poole)

The shadow Minister is exactly right; that is why so many people are so worried about the Planning and Infrastructure Bill. My inbox has been filled with people asking how they can block it, because of the damage it will do to so much of our nature.

The piece missing from this measure is that economic growth in rural areas is fundamentally entwined with nature recovery. In my area in Dorset, Purbeck Heaths is a new national nature park, and nature tourism is actually one of our growth industries. We have incredible charitable businesses, such as Birds of Poole Harbour, that have brought back species to Dorset—species that have been missing for generations and are now thriving—and we now have a whole industry growing around that. The National Trust is also buying land that is no longer commercially viable and restoring it for rewilding, ensuring that it is there for generations to come. Failing to think about that as part of the local economic strategy is a missed opportunity, and it risks subverting development that is already there.

Economic development is not independent of our lives. People move to places because they have nature around them. Those places may have great shops, town centres and theatres, but people will also move there because of the great quality of life. A lot of people will say that being in nature is a part of making their lives better and happier. If times are tough and people do not have a lot of money in their pocket, being close to nature is something that they can still enjoy and that restores their mental health. We underestimate the power of that at our peril.

We have huge areas of countryside where farming is becoming a marginal activity. Rather than being the driver, it is almost becoming something that people are doing because they love it—but they are losing money hand over fist. If we do not bake in that land use framework, which already pre-exists the local growth plan, it will be much easier for farmers to “get rich quick” by moving land out of its existing use and into what the economic development plan sees as the latest, greatest new thing—losing that land forever—rather than complying with a land use framework that explains why it is so important to keep that land in use, and helps to retain the value of that land for farming, or ancient industry, into the future.

I recognise that the Minister has not yet accepted any of our amendments, so I recognise that getting this one through may be a real struggle, but it is so important, particularly given how, as the shadow Minister has already explained, the Planning and Infrastructure Bill has really squeezed out nature. I say to the Minister, “Please put nature back in and recognise that the land use frameworks and nature recovery strategies matter.” In many places they already exist and already have local buy-in, and we would not want to see mayoral authorities ride roughshod over what is already there.

John Hayes (Conservative, South Holland and The Deepings)

I feared we might stray into other considerations on planning, so I am grateful to the hon. Lady for speaking specifically about land use and nature recovery, which is the subject of the amendment. I call the Minister.

Miatta Fahnbulleh (Labour/Co-operative, Peckham)

I thank the hon. Lady for the amendment. I will say three things. First, local growth plans are locally-led documents with the flexibility to consider the challenges and opportunities that matter to particular areas. Places are already taking into account whether there are green growth opportunities in their area. In rural areas they will take into account the rural economy, the farming economy, and how that has a bearing on economic development opportunities. We need a framework that allows the flexibility for plans to be locally specific. In areas where it makes sense, places are already doing that in practice and we expect them to do that going forward.

Vikki Slade (Liberal Democrat, Mid Dorset and North Poole)

Local nature recovery strategies matter not only in rural areas. If someone lives in the most urban part of the country, the local nature strategy is critical to those tiny pockets, so I would argue that it is as relevant in cities as it is in rural areas.

Miatta Fahnbulleh (Labour/Co-operative, Peckham)

The hon. Lady is absolutely right. She pre-empted the second point that I was about to make, which is that local nature recovery strategies are critical for every part of the country. Decisions that impact on land use and nature recovery will still need to consider the relevant policy framework, including the local nature recovery strategies that exist across the country. Any strategic planning decision will have to have regard to those local strategies. Thirdly and finally, we recognise that economic development sits alongside nature recovery. The two should not be and do not need to be in conflict.

Siân Berry (Green, Brighton Pavilion)

On a point of clarification, I recognise that the Minister has set out that the local nature recovery strategies will have to be regarded, and also that local growth plans will be very important. Which does the Minister see as having greater weight in local planning and strategic planning decisions?

Miatta Fahnbulleh (Labour/Co-operative, Peckham)

They are doing different things. The local plan is a strategic document. It is not the spatial development plan that will be the key driver for planning decisions. As is the case now, it is absolutely right that the relevant authority making the decision on planning has regard to local nature recovery strategies.

Lewis Cocking (Conservative, Broxbourne)

What happens if one plan says one thing and another plan says another? The Minister just said that the strategic spatial framework would take precedence, but what happens if the local plan from the local planning authority has policies that contradict or do not align with the strategic plan?

Miatta Fahnbulleh (Labour/Co-operative, Peckham)

That is why we have the planning process. We will come on to talk about the strategic spatial plan. That is a document that will have to be done in consultation with constituent authorities. It will focus on strategic infrastructure and development that is needed in the area. Ultimately, we hope that that process will be done through consensus. When it is not, and when there is a dispute between the constituent local authority and the strategic authority in the round, we have said that that will go to the Secretary of State to make a determination through the independent Planning Inspectorate. The planning process already has provisions for us to mitigate that instance.

We have discussed the land use framework in Committee before. We have consulted on it and will publish the response to the consultation in due course. Although the principle of ensuring alignment across the piece is the right one, we think that before we have a tangible framework that is live and has been tested, it is premature to put a requirement in legislation that we would need to have regard to the land use framework.

Vikki Slade (Liberal Democrat, Mid Dorset and North Poole)

I recall a similar argument being made last week to my hon. Friend the Member for Stratford-on-Avon, and a reference to “nascent” organisations. My hon. Friend pointed out that by the time the Bill comes into play some of the land use frameworks will be up and running, so they predate the legislation that will form the local growth plans. It feels completely pointless and a waste of money for local authorities to spend all that time putting in place the land use frameworks only for this legislation to come along and say, “Well, they haven’t really been tested.”

Miatta Fahnbulleh (Labour/Co-operative, Peckham)

We are developing the process of providing a land use framework, and we are taking onboard the responses that have come through the consultation. Whether that framework ends up being high level and strategic or quite granular will come out through that process, so it feels incredibly prescriptive and constraining to put that requirement on local plans at this stage.

Whether it is the local plan that is thinking about how we drive economic opportunities in the area, or it is the spatial development plan that mayors will be required to have in place, it will obviously have to take into account land use, the composition of the area, nature and all the key considerations in order to be an effective plan that works and that is supported by all the constituent members and parts that need to get onboard. I ask the hon. Member to withdraw her amendment.

Vikki Slade (Liberal Democrat, Mid Dorset and North Poole)

Although it may come back at a later stage, I beg to ask leave to withdraw the amendment.

Manuela Perteghella (Liberal Democrat, Stratford-on-Avon)

I beg to move amendment 352, in schedule 19, page 200, line 17, at end insert—

“(d) include an overview of the views of town and parish councils in the local authority area about the plan.”

This amendment would require information about the views of town and parish councils in the area about a mayoral combined authority’s local growth plan to be included in the plan.

John Hayes (Conservative, South Holland and The Deepings)

With this it will be convenient to discuss the following:

Amendment 353, in schedule 19, page 200, line 17, at end insert—

“(2A) A mayoral combined authority must engage town and parish councils within its area in creating a local growth plan.

(2B) Engagement under subsection (2A) must include—

(a) sharing draft proposals,

(b) sharing evidence gathered to prepare the proposal, and

(c) opportunities to provide feedback on draft proposals.”

This amendment would require mayoral combined authorities to engage with town and parish councils in creating local growth plans.

Amendment 354, in schedule 19, page 201, line 4, at end insert—

“(f) minimum engagement requirements under section 107L(2B).”

This amendment would allow the Secretary of State to create guidance about the minimum levels of engagement with town and parish councils that is required in the development of mayoral combined authorities’ local growth plans.

Amendment 355, in schedule 19, page 202, line 14, at end insert—

“(d) include an overview of the views of town and parish councils about the plan.”

This amendment would require information about the views of town and parish councils about a mayoral CCA’s local growth plan to be included in the plan.

Amendment 356, in schedule 19, page 202, line 14, at end insert—

“(2A) A mayoral CCA must engage town and parish councils within its area in creating a local growth plan.

(2B) Engagement under subsection (2A) must include—

(a) sharing draft proposals,

(b) sharing information gathered to prepare the proposal, and

(c) opportunities to provide feedback on draft proposals.”

This amendment would require mayoral CCAs to engage with town and parish councils in creating local growth plans.

Amendment 357, in schedule 19, page 202, line 37, at end insert—

“(f) minimum engagement requirements under section 32A(2B).”

This amendment would allow the Secretary of State to create guidance about the minimum levels of engagement with town and parish councils that is required in the development of mayoral CCAs’ local growth plans.

Manuela Perteghella (Liberal Democrat, Stratford-on-Avon)

Local growth plans are rightly a key part of the devolution agenda, because the plans guide inward investment and set priorities for economic growth, as we have discussed, as well as development and regeneration in combined authority areas. We have already heard from the hon. Member for Brighton Pavilion about the importance of inclusive economic and growth plans. Inclusivity is necessary. Consultation and engagement are necessary. Currently, however, there is no statutory requirement for mayoral combined authorities to formally record or engage with town and parish councils in the creation of these plans. These amendments aim to address that gap, increasing local accountability and inclusivity.

Amendments 352 and 355 would require any mayoral authority making a local growth plan to include the views of local town and parish council. Amendments 353 and 356 would go further, requiring active engagement with those councils by, for example, sharing draft proposals and the evidence behind the proposals for local growth plans, and giving councils a real opportunity to provide feedback before local growth plans are made. By requiring consultation at a parish level and genuine involvement in devolution decisions, and by valuing local voices, these provisions resist the top-down approach.

In my constituency we have brilliant parish and town councils. When the district councils are abolished and a new unitary council is made, it is likely that towns and parishes will be asked if they wish to take on more services and assets, including possible development sites.

Andrew Cooper (Labour, Mid Cheshire)

We are about to embark on a devolution deal for Cheshire and Warrington. The county of Cheshire alone has more than 330 civil parishes. Is the hon. Lady not concerned about the burden that would be placed on a mayor? Her amendment would require the views of all those parishes to be set out, so requiring the mayor in statute to report on that seems like a big ask.

Manuela Perteghella (Liberal Democrat, Stratford-on-Avon)

I am hearing a lot from the Labour Benches about there being 800 or 350 parish councils, so we cannot engage with them, but there are different ways to engage, such as online consultations or parish fora to which representatives and clerks can be invited. That the mayor cannot engage because there are so many parish councils is not a factor; I am sure that the mayor will be able to.

Sean Woodcock (Labour, Banbury)

The hon. Lady is being generous with her time. I do not think it was suggested that the mayor could or should not engage; the question is about putting mandatory engagement in the Bill. Does she accept that is very different from what she has just stated?

Manuela Perteghella (Liberal Democrat, Stratford-on-Avon)

No, I do not accept that. We are saying that there have to be minimum standards for engagement. In fact, amendment 354, reinforced by amendment 357, would allow the Secretary of State to create guidance on minimum standards for engagement. It would then be up to the mayor, but at least the engagement with our first tier of local government would be meaningful and consistent across all mayoral combined authorities.

Setting minimum standards for engagement would provide a baseline for consultation across all mayoral authorities, but that consultation can be in different formats. Let us not forget that two-tier local authorities with county councils often have lots of parish councils and they already consult them on local plans, for example, so there are ways to do it. It is not that the leader of the county has to meet all 200 parish councils individually.

Paul Holmes (Conservative, Hamble Valley)

The hon. Lady has made an excellent case, as she has done throughout the Bill Committee, for our excellent town and parish councils, which serve my constituency well. Does she agree that many district councils, in anticipation of being abolished, are already transferring assets—some of which are crucial to local growth and local planning—to parish councils, which are adequately taking them on? If the Bill goes through, however, those parish councils will have no consultation even though they have already taken on some assets that are crucial to the local growth that we are talking about.

Manuela Perteghella (Liberal Democrat, Stratford-on-Avon)

The hon. Gentleman is absolutely right. If a district council is to be abolished, parish and town councils are asked to take on assets or sites that could be development sites, so they become stakeholders in the local growth plans. They will be the landowners, so not to engage with the parish and town councils that take on those assets will be damaging in the long term.

Our amendments raise the quality and legitimacy of decisions by reflecting broader community input and inclusivity. They would, again, prevent a top-down approach. Crucially, they would set consistent standards nationwide, so that engagement is not left to the whim of individual authorities or mayors. I will press amendment 353 to a vote, because the changes are about the principle of genuine devolution and about giving real power to local communities, not concentrating it on the mayors. The amendment is essential to make the promise real, so I will press it to a vote.

Paul Holmes (Conservative, Hamble Valley)

In the brief time that I have, I want to back the hon. Lady’s excellent points. Throughout the Bill Committee so far, town and parish councils, which deliver so much for our constituents and are being asked to do more in the future, have been wilfully neglected. They are vital to the economic growth that the Minister rightly says needs to be delivered in our local areas, but the structures currently being proposed do not include them, as the hon. Lady has outlined and as I outlined in my intervention.

Assets are already being transferred in my constituency. Our country parks are currently looking at being transferred from our district council, Eastleigh borough council—I have many disagreements with it, but it is doing the right thing in this case—to our town and parish councils. In country parks specifically, there are business opportunities for raising revenue, development opportunities, and nature protection opportunities that town and parish councils simply will not be able to intervene on or to consult on with the new mayors.

Manuela Perteghella (Liberal Democrat, Stratford-on-Avon)

On country parks and forestry, charities that plant forests are providing apprenticeships because the number of our forest rangers has declined. After hearing about the post-16 education and skills strategy yesterday, it is really important to provide these apprenticeships and jobs in rural areas so that our young people can continue to thrive.

Paul Holmes (Conservative, Hamble Valley)

Is there a clearer example than that of how this issue could contribute to the local growth plans that we are discussing?

The legislation is being drafted at a time when the operational environment is changing. The Minister needs to accept that, as the hon. Lady outlined, because of the proposals, there has been a major asset transfer to our town and parish councils that means they have become quite fundamental and large-scale landowners. Some of that development opportunity—that opportunity to look strategically at where growth needs to come into our local communities—is, crucially, allocated to some of our town and parish councils, but the legislation completely and wilfully removes them from any consultation exercise with a mayor.

I think that this is a pragmatic Government, and that the legislation was drafted before they realised that the consequences of some of the proposed measures were that district councils, because of the funding situation, had started to move some of those assets. The Minister needs to realise that the operational environment has fundamentally changed because, as I have said, it is crucial that town and parish councils are included in relation to land holdings as well as some of the operational responsibilities that they now have. Otherwise, the proposed local growth plans will not deliver on the key aspiration that has been outlined.

Siân Berry (Green, Brighton Pavilion)

Apart from seeking views, there is a requirement in the amendment to share draft proposals and the evidence base. Does the hon. Member consider that to be an important part of correcting errors in the evidence base and in the assumptions of the draft proposals, which only those councils might have information about?

Paul Holmes (Conservative, Hamble Valley)

I absolutely agree, because local parish councillors are experts in the areas that they represent—sometimes more so than district councillors or county councillors, because it is a smaller area. I think that the amendments from the hon. Member for Stratford-on-Avon are perfectly acceptable—I hope that the Minister agrees—and that she is trying to rectify an unintended consequence of the legislation. In many areas, it tries to streamline some of those aspirations, but in this area it is cutting its nose off to spite its face. We will support the amendments, and I hope the Minister will also support them and come back to us on how she imagines that she will strengthen her ability to consult town and parish councils.

Miatta Fahnbulleh (Labour/Co-operative, Peckham)

First, let me thank the hon. Member for Stratford-on-Avon, who has been a consistent champion and advocate of town and parish councils throughout the Bill Committee. Let me put it on record again that town and parish councils play an important role in their communities. That is a role that we understand, that we appreciate and that we want to support. We have been clear that the—

Siobhain McDonagh (Labour, Mitcham and Morden)

Before we begin, I remind Members to switch electronic devices to silent. Tea and coffee are not allowed during sittings, but I reassure the Committee that, as we may be sitting later this evening, we will have a 20-minute break at 4 pm.

Siobhain McDonagh (Labour, Mitcham and Morden)

I remind the Committee that with this we are discussing the following:

Amendment 353, in schedule 19, page 200, line 17, at end insert—

“(2A) A mayoral combined authority must engage town and parish councils within its area in creating a local growth plan.

(2B) Engagement under subsection (2A) must include—

(a) sharing draft proposals,

(b) sharing evidence gathered to prepare the proposal, and

(c) opportunities to provide feedback on draft proposals.”

This amendment would require mayoral combined authorities to engage with town and parish councils in creating local growth plans.

Amendment 354, in schedule 19, page 201, line 4, at end insert—

“(f) minimum engagement requirements under section 107L(2B).”

This amendment would allow the Secretary of State to create guidance about the minimum levels of engagement with town and parish councils that is required in the development of mayoral combined authorities’ local growth plans.

Amendment 355, in schedule 19, page 202, line 14, at end insert—

“(d) include an overview of the views of town and parish councils about the plan.”

This amendment would require information about the views of town and parish councils about a mayoral CCA’s local growth plan to be included in the plan.

Amendment 356, in schedule 19, page 202, line 14, at end insert—

“(2A) A mayoral CCA must engage town and parish councils within its area in creating a local growth plan.

(2B) Engagement under subsection (2A) must include—

(a) sharing draft proposals,

(b) sharing information gathered to prepare the proposal, and

(c) opportunities to provide feedback on draft proposals.”

This amendment would require mayoral CCAs to engage with town and parish councils in creating local growth plans.

Amendment 357, in schedule 19, page 202, line 37, at end insert—

“(f) minimum engagement requirements under section 32A(2B).”

This amendment would allow the Secretary of State to create guidance about the minimum levels of engagement with town and parish councils that is required in the development of mayoral CCAs’ local growth plans.

Miatta Fahnbulleh (Labour/Co-operative, Peckham)

I was in the middle of thanking the hon. Member for Stratford-on-Avon for being a consistent champion of town and parish councils throughout our proceedings. We also recognise the important role they play in their communities, which is understood and should not be understated.

We have been clear that local growth plans should reflect the diverse needs and views of a range of local and regional stakeholders. Not only is this already possible, but it is actively encouraged. We have set out in the Bill that, when drafting their local growth plans, mayoral combined authorities and mayoral combined county authorities must have regard to guidance published by the Secretary of State. That guidance can already set out who the authority might consult, as well as the information to be included in the plan.

We think that specifying a minimum level of engagement for town and parish councils is disproportionate and over-prescriptive. For too long, central Government have dictated what local areas should do, who they should talk to and how they should do it, and we are calling time on that. This is about empowering mayoral strategic authorities to reach out to the key stakeholders that they know and understand best to drive the changes they want in their place. For that reason, I do not believe this cluster of amendments is necessary.

I ask the hon. Lady to withdraw her amendment.

Paul Holmes (Conservative, Hamble Valley)

It is a pleasure to see you in the Chair, Dame Siobhain. I would not usually speak at this stage, but as the Minister did not outline why she does not believe that the Government should prescribe who mayors and mayoral development corporations should be talking to, will she say why, in earlier clauses, she prescribed that organisations such as trade unions should sit around the table? Town and parish councils that are delivering services on the ground are now being asked to deliver more services because of some of the provisions she has included in the Bill. Why does she not think it is necessary to issue guidance forcing mayors or MDCs to talk to them when they are delivering?

Sam Carling (Labour, North West Cambridgeshire)

The hon. Gentleman moved an amendment specifically to rule out trade unions. The Bill does not rule them in, in any way. I am slightly concerned that he might be misleading us—inadvertently.

Paul Holmes (Conservative, Hamble Valley)

I am not sure whether it is parliamentary to say that I am attempting to mislead the Committee. He corrected himself, so I will not take offence.

Siobhain McDonagh (Labour, Mitcham and Morden)

You are made of strong stuff!

Paul Holmes (Conservative, Hamble Valley)

I know I am, Dame Siobhain. I cut my teeth against you in Mitcham and Morden in 2015, and I was required to be of strong stuff to try to beat you.

I do not believe that the hon. Member for North West Cambridgeshire is correct. What I am saying is that the Minister and the Government cannot have their cake and eat it. On various things, they are prescribing who mayors should talk to, who should be included in a strategy and who should sit around the table. But when it comes to organisations that are delivering services on the ground, and district councils that are to be abolished are transferring assets down to town and parish councils, the Minister says there is no need to prescribe that mayors need to talk to them. In many cases—including in my constituency and that of the hon. Member for Stratford-on-Avon, who so eloquently spoke to this amendment—these town and parish councils are increasing the number of services they provide, and they are taking on sections of land and businesses that are integral to the development of local growth plans. I say very gently, if the Minister wanted to completely devolve power to mayors, that would be absolutely fine with us, but let us not have a patchwork quilt approach by which she is absolutely prescribing who and to which stakeholders mayors should talk in other areas of the legislation, but she does not feel it necessary to include town and parish councils in this part. That is a shame.

Miatta Fahnbulleh (Labour/Co-operative, Peckham)

To clarify, the Bill does not specify any particular organisation that should be consulted. It says that we will set that out in guidance. That guidance will be driven by a whole host of consultation with strategic authorities and their partners around the range of organisations and bodies we think is necessary. The Conservative amendment specifically picked on trade unions and specifically said we should exclude them. That is what we were pushing back against, so we are completely consistent in this.

In this case, again, there will be guidance that will talk about a range of local stakeholders, but we think it is wrong to prescribe on the face of the Bill that there should be a minimum requirement in order to engage with town and parish councils. That is too onerous and is disproportionate. We should allow the mayor and the strategic authority to know their stakeholders and the people with whom they need to have a conversation, to make sure that they have consensus and the support to drive forward their local growth plan.

Manuela Perteghella (Liberal Democrat, Stratford-on-Avon)

I beg to ask leave to withdraw the amendment.

Vikki Slade (Liberal Democrat, Mid Dorset and North Poole)

I beg to move amendment 364, in schedule 19, page 200, line 17 at end insert—

“(d) identify the plan’s contribution to targets set out by—

(i) sections 1 to 3 of the Environment Act 2021,

(ii) Part 1 of the Climate Change Act 2008, and

(iii) the Air Quality Standards Regulations 2010.”

This amendment would require combined authorities to have regard to targets set by the Environment Act 2021, Climate Change Act 2008, and Air Quality Standards Regulations 2010 in developing local growth plans.

Siobhain McDonagh (Labour, Mitcham and Morden)

With this it will be convenient to discuss amendment 365, in schedule 19, page 202, line 14 at end insert—

“(d) identify the plan’s contribution to targets set out by—

(i) sections 1 to 3 of the Environment Act 2021,

(ii) Part 1 of the Climate Change Act 2008, and

(iii) the Air Quality Standards Regulations 2010.”

This amendment would require mayoral combined county authorities to have regard to targets set by the Environment Act 2021, Climate Change Act 2008, and Air Quality Standards Regulations 2010 in developing local growth plans.

Vikki Slade (Liberal Democrat, Mid Dorset and North Poole)

I am a little confused, Dame Siobhan, because amendments 352 and 353 are in the same grouping. I am assuming that you will return to 353.

I am grateful for the support of the hon. Member for Brighton Pavilion who has also signed amendment 364, along with my hon. Friend the Member for Stratford-on-Avon and my hon. Friend the Member for Guildford (Zöe Franklin). Amendments 364 and 365 are a simple pair of amendments; they are identical in wording, but one applies to a county combined authority and one to a combined authority. It really is quite straightforward: economic growth should not be off the back of public health and environmental damage. If a local authority is going to drive economic growth by, for example, creating a large industrial estate that will damage air quality or create incredible congestion, it is not paying attention to the environmental factors.

I am sure that the Minister will tell us that all those things form part of a decision on a planning application. However, if this Government are genuinely committed to their international and national obligations on climate change, and if they are committed to reducing health inequalities, in which we know air quality is a major factor, it seems a small thing to make these amendments, which would assure that mayors—who may not have the same commitment as the Government to protecting air quality and our environment—must identify the contributions.

Interestingly, schedule 19 provides that the local plan must include all the economic factors and list their impact. Adding environmental factors would be a minor change. We will press the two amendments to a vote.

Siobhain McDonagh (Labour, Mitcham and Morden)

I remind Members, and myself, that regardless of how amendments have been grouped for debate, we will take decisions on them in the order that they appear on the amendment paper. We will therefore come to a decision on amendment 353 once amendment 364 has been dealt with. I am sure that that is now clear to everybody.

Miatta Fahnbulleh (Labour/Co-operative, Peckham)

I share the hon. Lady’s concern and her view of the importance of environmental and climate change targets. The economic plans of any strategic authority must be compatible with our legal targets for those core considerations.

National Government and local government at all levels, along with business and individuals, must continue to make a contribution to tackling climate change and improving the quality of the environment around us. I refer the hon. Lady to the local growth plans that are already in place and the actions of mayors who are already in place, which show that a regard for climate change and air quality obligations is a driving force.

Vikki Slade (Liberal Democrat, Mid Dorset and North Poole)

There is a big difference between what has been done by mayors who have gone before and creating mayors across the whole country. The new mayors will have very different backgrounds and landscapes, both geographical and political, to deal with. The word “hope” has done a lot of heavy lifting today, and although I also hope that all these mayors are as great as some of the mayors who have gone before, the Minister has more confidence in them than I do. Legislation is there to ensure that we are not reliant on the good will of hard-working people in political posts, and to protect us from people who may achieve political office and then seek to create something that we will have to undo, at great cost to our economy and health.

Miatta Fahnbulleh (Labour/Co-operative, Peckham)

I have a lot of sympathy with the hon. Lady’s point. Mayoral strategic authorities are already subject to the recently strengthened biodiversity duty, which supports the delivery of legally binding biodiversity targets. We have seen that mayors have complied with the duties on local authorities around air quality and producing air quality action plans. Those have shown to be effective in London. The principle and the intention are that we are baking our climate and environmental obligations into the way that we are thinking about how we drive the economy. We will reflect on the guidance that comes alongside local growth plans to ensure that, across the piece, those national obligations are reflected in every tier of Government. The hon. Member has my assurance that we will reflect on it, and I ask her to withdraw the amendment.

Vikki Slade (Liberal Democrat, Mid Dorset and North Poole)

I am minded to press the amendment to a Division, so that our commitment to this is on record. I hope that the Minister will take onboard that this is done in good faith.

Manuela Perteghella (Liberal Democrat, Stratford-on-Avon)

I beg to move amendment 359, in schedule 19, page 200, line 17, at end insert—

“(2A) In preparing a local growth plan, a mayoral combined authority must make specific reference to the proposed benefits of the plan on areas which are rural, remote, or coastal.”

This amendment would require local growth plans to make specific reference to the proposed benefits of the plan on rural, remote and coastal areas.

Siobhain McDonagh (Labour, Mitcham and Morden)

With this it will be convenient to discuss amendment 360, in schedule 19, page 202, line 14, at end insert—

“(2A) In preparing a local growth plan, a mayoral CCA must make specific reference to the proposed benefits of the plan on areas which are rural, remote, or coastal.”

This amendment is related to Amendment 359.

Manuela Perteghella (Liberal Democrat, Stratford-on-Avon)

These amendments were tabled by my hon. Friend the Member for Glastonbury and Somerton (Sarah Dyke), and they focus on ensuring that rural, remote and coastal areas are properly considered in the Bill. At present, the Bill largely focuses on urban centres and large population areas. There is a bit about rural areas, but not about the differences between these often isolated geographical areas, and there is little specific recognition of rural or geographically isolated communities, despite their unique challenges and contributions to the economy.

Both amendments would require local growth plans to make specific reference to the proposed benefits for those areas. In that way, we would ensure that the growth strategies are inclusive, balanced and relevant to the communities within the combined authority area. Combined authority areas can be very different—there could be a very populous urban cluster of unitary councils, and there could also be rural councils, which have completely different needs.

The amendments are fair to rural communities and advantageous to urban areas, because we know that when our rural areas thrive, so does the whole country. There are opportunities across our nation as a whole. Rural and coastal areas need focused attention—for example, supporting infrastructure such as transport networks, energy infrastructure and digital connectivity. There are families in my constituency who do not get any broadband connectivity, and their children have to go to cafés in towns to revise for GCSEs. Not having that connectivity also makes it very difficult for businesses to thrive, so we face unique challenges.

Mike Reader (Labour, Northampton South)

Is there evidence that existing mayors—such as the Mayor of Cambridgeshire and Peterborough or the Mayor of North Tyneside—are not considering rural communities in their work, which would suggest that we need the amendments?

Manuela Perteghella (Liberal Democrat, Stratford-on-Avon)

That goes back to what my hon. Friend the Member for Mid Dorset and North Poole was saying. We should not rely on the kindness of mayors to care about the whole of their communities; we need to ensure that local growth plans—which is what the amendments are about—include the needs of coastal, rural and isolated communities such as mine, where we do not have buses to take elderly residents to the nearest hospital. It is important that we make provision for local growth plans to consider the needs of rural, coastal and remote communities.

Obviously, rural areas are not homogeneous. We know that they have different industries—for example, agriculture and the visitor economy—and the demographics are different. Lots of people come to my constituency to retire, for example, which tells us about the health provision that we need our area. We want those needs to be reflected in the provisions on local growth plans in the Bill. A one-size-fits-all approach will lead to not only rural deprivation but missed opportunities for our nation as a whole.

In conclusion, the amendments are about equity, opportunity and smart growth. Rural, remote and coastal communities must not be left behind. Ignoring them would be a missed opportunity for the sustainable and inclusive growth that would power the whole region. Amendments 359 and 360 would ensure that all mayoral authorities plan meaningfully and strategically for every part of their area. For that reason, I will push amendment 359 to a vote.

Paul Holmes (Conservative, Hamble Valley)

I welcome amendment 359, moved by the hon. Member for Stratford-on-Avon. She outlined a number of issues that she faces in her rural constituency—the land of Shakespeare—where many people retire. I also represent a constituency that Shakespeare regularly visited. He stayed with the Earl of Southampton in the village of Titchfield, where his creative juices flowed.

We are going through exactly the same issues, in that both our areas are diverse in their make-up and population. If I take the proposed mayoral authority that is being created for Hampshire and the Solent, that region consists of two large working-class cities on the south coast, which probably look like old industrial northern working-class cities, in what is otherwise quite an affluent area. As well as those cities of Southampton and Portsmouth, we have many affluent and also deprived coastal communities, and the farming communities in Hampshire.

Without undermining the candidates of all political parties who will be standing—I will talk about Hampshire in this case, because it adequately illustrates the problems of the current legislation—it is perfectly reasonable to assume that because the future mayor of Hampshire and the Solent, like many others, is being asked to represent 2.2 million people, those diverse areas and what the mayor needs to look at in the growth plan need to be codified.

Sean Woodcock (Labour, Banbury)

It is great to see the coalition back in action. To use the hon. Member’s phrase, does he not agree that any mayor worth their salt would naturally have consideration for remote coastal and rural areas in those growth plans, considering that those are the people they are meant to represent? If they do not, they will find out at the ballot box what people in those areas think about it.

Paul Holmes (Conservative, Hamble Valley)

I have the scars on my back from fighting Liberal Democrats in my political career, but pragmatic policies are being proposed to improve the legislation that—let us face it—could very much be improved. That is the point of the Bill Committee. I in particular have many disagreements with the Liberal Democrats, but the amendment of the hon. Member for Stratford-on-Avon could absolutely improve the legislation.

The hon. Member for Banbury said that a mayor worth their salt should be able to do that anyway, but he just spoke against an amendment that would have enabled a mayor to speak to town and parish councils and do their job better. He cannot have it both ways.

Andrew Cooper (Labour, Mid Cheshire)

Where in the legislation does it says that mayors will be prohibited from talking to town and parish councils? The way that the hon. Member phrased that implies that something in the Bill stops them from doing so, but I am not clear where that is.

Paul Holmes (Conservative, Hamble Valley)

Forgive me, I apologise to the Committee if I misspoke. I meant that the hon. Member for Banbury spoke against an amendment that would have guaranteed that mayors would have to speak to town and parish councils.

To return to amendment 359, the way that mayoral authorities are formulated means that mayors will represent diverse areas. As I said to the Minister, we want them to be able to succeed and we want to make sure that their growth plans actually work. In an earlier debate, I tried to adequately back up the Minister’s aim for mayors to deliver that and to make people in their area more prosperous. Businesses being created and economic growth should absolutely be the top priorities of the Government and the mayors that they are creating, and we fully endorse that message. I would argue, however, that mayors cannot do that if there is not guidance—or at least something in the legislation—that requires them to look at our coastal and rural communities and some of the unique challenges that the mayors will be able to face.

I will use the example of Hampshire and the Solent again. I have a friend who will probably end up being the Labour candidate for Hampshire and the Solent. She would make a very good mayor, but she has a history of representing and leading a council in an urban centre in an industrial city like Southampton—that is her expertise. She did it very well; she took over from the Conservative administration that I was part of. What she cannot do, and what she does not have strong experience in, is represent the coastal communities that go down the Solent and the farming communities outside.

The amendment would require rural and coastal communities and areas to be enshrined in the legislation. I do not think that Government Back Benchers, or the Minister, should be scared of that, because it would codify a solid strategic view for the local mayor to follow. I welcome the amendment, and we will support it if the hon. Member for Stratford-on-Avon presses it to a vote.

Miatta Fahnbulleh (Labour/Co-operative, Peckham)

I know that Opposition Members—indeed, Members on both sides of the Committee—are all too aware of the unique needs and challenges that rural, remote and coastal communities face. I want to reassure them that local growth plans provide a framework for growth for all parts of their regions. That is exactly why we are requiring local growth plans to set out an economic overview of their whole area. Whether it is urban centres, or rural or farming parts of the entire strategic authority area, a proper assessment needs to be conducted. Yes, there is no requirement to specifically reference rural, remote or coastal areas, but there is equally no requirement to specify urban or suburban areas.

Ultimately, the Government do not presume that they understand the needs and opportunities of particular strategic authority areas better than the democratically elected mayor. As my hon. Friend the Member for Banbury said, that mayor is representative, and will be voted in and out by voters within their area, so if they neglect a rural or coastal part of their constituent area, that will be to their detriment. We think it is important to create the flexibility so that the mayors who know better can specify, because otherwise we end up in a world where we are specifying all the areas and it becomes completely meaningless.

Manuela Perteghella (Liberal Democrat, Stratford-on-Avon)

For such an important Bill, I do not think that we should wait four years—my community will be left behind by then. I do not want to wait for the ballot box; I want to give the mayor the tools to have inclusive local growth plans that take areas into consideration. That means they will be empowered to lobby the Government for transport networks or broadband connectivity in isolated areas and coastal communities, which are also, by the way, vulnerable to storms and flooding because of climate change, so they have very different needs.

Miatta Fahnbulleh (Labour/Co-operative, Peckham)

I hear the passion and commitment of the hon. Lady clearly. Certainly my experience of strategic authorities and mayors who cover a combination of areas—including rural areas—is that they are mindful and clear about it; they want to have a conversation about transport connectivity and digital connectivity, and about how we drive economic growth and prosperity within our farming communities.

There is no evidence to suggest that local growth plans as defined in the Bill do not enable places to drive that. That is certainly not the experience that we are seeing at the moment. I understand the concern that a lot of our mayors have been in more urban areas, but in the north-east and increasingly with the mayors who are coming through our priority programme, they are clear about the importance of their rural communities and the fact that they will need certain powers and functions to drive that.

Although I completely understand the intent and legitimate concern behind the amendments spoken to by the hon. Member for Stratford-on-Avon, I think they are too prescriptive, and it is right that we create the flexibility for mayors to understand their patch across the piece and then respond effectively in their local growth plan. I hope that with that reassurance the hon. Lady will withdraw amendment 359—although I think she said she will press it to a vote.

Manuela Perteghella (Liberal Democrat, Stratford-on-Avon)

I would like to press amendment 359 to a vote.

Vikki Slade (Liberal Democrat, Mid Dorset and North Poole)

I beg to move amendment 52, in schedule 19, page 201, line 6, at end insert—

“107MA Funding and support relating for Local Growth plans

(1) The Secretary of State has a duty to ensure that mayoral combined authorities have sufficient financial resources and adequate administrative support to discharge effectively any functions relating to the—

(a) preparation,

(b) publication, and

(c) delivery

of local growth plans.

(2) In discharging the duty under subsection (1), the Secretary of State must regularly review the financial and administrative needs of mayoral combined authorities in respect of functions relating to local growth plans, taking into account the—

(a) strategic importance, and

(b) complexity

of any such plans.”

This amendment creates a requirement for regular reviews of the needs of mayoral combined authorities with regard to local growth plans.

Siobhain McDonagh (Labour, Mitcham and Morden)

With this it will be convenient to discuss amendment 53, in schedule 19, page 203, line 1, at end insert—

“32BA Funding and support relating to local growth plans

(1) The Secretary of State has a duty to ensure that mayoral CCAs have sufficient financial resources and adequate administrative support to discharge effectively any functions relating to the—

(a) preparation,

(b) publication, and

(c) delivery

of local growth plans.

(2) In discharging the duty under subsection (1), the Secretary of State must regularly review the financial and administrative needs of mayoral CCAs in respect of functions relating to local growth plans, taking into account the—

(a) strategic importance, and

(b) complexity

of any such plans.”

This amendment creates a requirement for regular reviews of the needs of mayoral CCAs with regard to local growth plans.

Vikki Slade (Liberal Democrat, Mid Dorset and North Poole)

Amendments 52 and 53 are about funding strategic authorities for the local growth plans. I apologise to Committee members—they are going to get bored of hearing me say the same thing—but the point I am trying to make with these amendments is that we are pushing huge amounts of responsibility, cost and activity into a space that does not yet have clarity about how that will be paid for.

As we all know, our local authorities are at breaking point, with many of them expecting to make section 114 declarations within the next 12 months. I am deeply concerned that additional responsibilities to help to fund a strategic authority above them—they will have to pay in through a levy but they will have only minimal involvement in the decision making coming back down—will put them under more pressure.

These amendments are designed to make that point, to probe the Minister and to ask for further consideration about how the Secretary of State can assure local communities, who will be paying for these authorities, that there will be sufficient financial resources and adequate administrative support to discharge the functions involved in the preparation, publication and delivery of the local growth plans. There is no point in having a fantastic plan if it cannot be delivered, or if the organisations beneath the strategic authority have just gone bust.

I have said it before: the money is coming either from levies, from precepts, or potentially from grant funding through central Government. These amendments are really about probing to ask whether these growth plans will be coming with the money attached to them so that local areas, wherever they are in the country, have a fighting chance of producing a really good growth plan that benefits every resident within their area. That is why I have tabled these amendments: to try to draw a bit more out of the Minister.

Miatta Fahnbulleh (Labour/Co-operative, Peckham)

I thank the hon. Lady for these probing amendments. Again, we had a debate about this earlier in Committee. Let me put on record that we are clear that, if we are asking strategic and mayoral strategic authorities to drive this critical function, they must have the capacity to do that job well. It does not serve them, the Government or their constituents if they do not have the capacity and capability to do that well. That is why we are, for example, providing capacity-building funding for mayoral strategic authorities, so that they can not only set up but do some of the core enabling functions, such as producing plans, well and effectively.

As I said, the principle holds that capacity-building support must be there to ensure that strategic authorities can do their functions incredibly well, but I do not think it is necessary to specify that on the face of the Bill, not least because we already have the spending review process where strategic authorities set out their demands, ambitions and resources, and have a conversation with Government about ensuring that they are adequately resourced.

The principle of capacity building is therefore absolutely clear and firm, and is designed into the way we are trying to drive the legislation forward. Putting it on the face of the Bill would be too prescriptive when there are already processes in place to enable it to happen.

Vikki Slade (Liberal Democrat, Mid Dorset and North Poole)

For clarity, at the point of the spending review when Departments are given their spending powers, are we to expect the strategic authorities to be separately and directly given a settlement each year, or will that be over a three-year period in the way that local authorities are given that settlement? I just want clarity that it is a separate pot of money from local authority funding, because I would not want to see them have to fight like rats in a sack with the mayoral authorities above them.

Miatta Fahnbulleh (Labour/Co-operative, Peckham)

The process in practice is distinct from the local government funding settlement. Established mayoral combined authorities are all going through the integrated settlement process, which is a negotiated process where the demands and ambitions of the mayor are weighted against the funding in Government Departments that we have provided with an integrated settlement. That is being rolled out among established combined authorities.

For other mayoral combined authorities that are not established, the process in practice has been, “This is what we have tried to do in our area. These are the resources, and this is where we can use, for example, the mayoral precepting power,” and then there is a conversation with Government to enable them to do what they want. We are moving towards multi-year settlements, because we think that is a better way to run the public finances. The principle of multi-year settlements applies to local government and across Departments, and will apply in the context of mayoral combined authorities.

Vikki Slade (Liberal Democrat, Mid Dorset and North Poole)

On the basis of that assurance, I beg to ask leave to withdraw the amendment.

Miatta Fahnbulleh (Labour/Co-operative, Peckham)

I beg to move Government amendment 171.

Siobhain McDonagh (Labour, Mitcham and Morden)

With this it will be convenient to discuss the following:

Government amendments 172, 173, 175 to 177, 179 to 181, 183 to 185, 187, 189, 190, 192 to 194, and 196.

Miatta Fahnbulleh (Labour/Co-operative, Peckham)

There are quite a few amendments in this grouping, and all are broadly technical, clarifying and consequential amendments. Government amendments 172, 181 and 190 are consequential amendments that expand the definition of relevant bodies that can be named in secondary legislation that must have regard to the shared local growth priorities agreed with mayoral strategic authorities. The change reflects the original intention set out in the White Paper to apply the duty to arms-length bodies.

Government amendments 174, 182, and 191 simply clarify that public authorities that operate GB-wide or UK-wide may be specified in regulations as subject to the duty to have regard, and that the duty will apply only to their activities in England.

Miatta Fahnbulleh (Labour/Co-operative, Peckham)

I beg to move amendment 178, in schedule 19, page 201, leave out line 28.

This means that a Minister of the Crown or government department can be specified in regulations as bound by the duty to have regard to shared local growth priorities.

Siobhain McDonagh (Labour, Mitcham and Morden)

With this it will be convenient to discuss Government amendments 186 and 195.

Miatta Fahnbulleh (Labour/Co-operative, Peckham)

The Government amendments we just discussed enable the Government to specify a broader range of public bodies in secondary legislation, to reflect the original intention of clause 38 and schedule 19. To avoid inadvertently curtailing the effect of those amendments, it is necessary to remove the restrictions on specifying a Minister of the Crown or a Government Department in regulations. Government amendments 178, 186 and 195 will have the effect of allowing the Government to specify in regulations Executive agencies and non-ministerial Departments. This reflects the duty as proposed in the White Paper.

Miatta Fahnbulleh (Labour/Co-operative, Peckham)

I beg to move amendment 188, in schedule 19, page 203, line 35, at end insert—

“(4A) In section 252 of LURA 2023 (regulations)—

(a) in subsection (5)(a), after ‘subsection’ insert ‘(8)(ab) or’;

(b) in subsection (8), before paragraph (a) insert—

‘(ab) under section 32C(2);’.”

This provides that regulations made under new section 32C of the Levelling-Up and Regeneration Act 2023 (public authorities: duty to have regard to shared local growth priorities), as inserted by Schedule 19 to the Bill, are subject to the negative resolution procedure.

The amendment provides that regulations that specify the relevant public authorities that must have regard to shared local growth priorities agreed between the Government and mayoral combined county authorities are subject to the negative procedure. Use of the negative procedure provides an appropriate and proportionate level of scrutiny for these regulations. The amendment will enable us to introduce the duty on relevant public authorities in the most efficient way.

Miatta Fahnbulleh (Labour/Co-operative, Peckham)

I know that the Committee agrees on the need to boost economic prosperity—there is broad consensus on that—and to do it in a way that reflects national and, critically, local priorities. Although many places have a plan for growth, there is no consistent requirement for places with a mayor to do so. Currently, only London is required to set out a strategy for its economic development, and we can see how London’s economy has benefited over the decades. Where places have taken the initiative, their plans do not have consistent central Government backing.

Schedule 19 will change that by creating a process for all mayors to agree local growth priorities with the Government. It will provide a common approach for mayors outside London to set out their priorities and investment opportunities in their local growth plan. Mayors up and down the country have given their backing to local growth plans, and we are already seeing this in practice. We have already agreed shared local growth priorities with the 12 longest established mayoral authorities, but agreeing and publishing shared local growth priorities is not enough. Mayors need to know that these priorities will be acted upon, which is why we will require public bodies to have regard to them at key points.

The approach will ensure that everywhere with a mayor has a clear plan for growth and economic prosperity in their area, whether that is a local growth plan or the economic development strategy for London. Crucially, it will ensure that the priorities we agree with mayors have Government backing, with relevant public bodies alert to them, so that all levels of government can pull in the same direction.

Clause 39 - Local Government Act 2003: expenditure grant

Miatta Fahnbulleh (Labour/Co-operative, Peckham)

Often, funding held by combined and combined county authorities is best used by local councils to deliver their responsibilities. Consistently throughout our proceedings, I have said that the mayor is only as strong as its partnership and relationship with the constituent authorities that have to drive the delivery. That is why the clause will standardise the power already held by most existing combined and combined county authorities to pay grants to their constituent councils.

The ability of combined and combined county authorities to pay their constituent councils is vital to the smooth running of transport, for example. Constituent councils are the highways authority in their area, with the duty to manage their road network and deliver highways maintenance; the authority therefore needs a power to fund them for delivering those key functions. We understand highways authorities’ need for sufficient funding to deliver against their duties, which is why clause 39 requires combined or combined county authorities to have in mind the necessity of ensuring a council has enough to deliver its highways functions when paying grants.

Vikki Slade (Liberal Democrat, Mid Dorset and North Poole)

I welcome this provision. It is hugely important that money can flow in both directions, but there is one glaring omission, and the Committee will know what it is. The clause gives the strategic authority the power to pay a grant to a constituent council, but not to a town or parish council.

It may be that a town or parish council is fulfilling one of the areas of competence for the strategic authority. For example, under clause 2(g), public safety, a town council might be running CCTV or paying for community safety accreditation team officers. Under clause 2(e), environment and climate change, that parish or town council might be delivering solar insulation or be rewilding. I did not table an amendment on this, but might there be a drafting error in not allowing the strategic authority to pay a grant to an organisation associated with a constituent council? There is an opportunity there to use our town and parish councils in this way.

Miatta Fahnbulleh (Labour/Co-operative, Peckham)

I commend the Liberal Democrat Members for their consistent championing of town and parish councils. This power is focused on the constituent authorities, in part because the use case we have in mind is transport, where we can see the importance of highways authorities in particular.

The hon. Lady will know that town and parish councils in the round tend not to draw down Government grant or funding. In conferring on strategic authorities this power, which currently goes from the Secretary of State to constituent authorities, we are thinking in particular about grant funding. That is why we have constrained it in the way we have set out. I will take her point away and consider it to make sure we have not missed a trick, but our focus is particularly on transport and highways authorities and the ability to pass through grant funding.

Vikki Slade (Liberal Democrat, Mid Dorset and North Poole)

I thank the Minister for that assurance. I simply want the opportunity not to be denied. Town and parish councils often say, “Well, we are not allowed to access that,” but there may be an opportunity here, and to exclude them would be a shame. Perhaps use of “may” would give that opportunity for grant funding. I would welcome a tiny amendment at some point in the future. It is something to reflect on.

Clause 40 - Encouragement of visitors and promotion of visitors

Manuela Perteghella (Liberal Democrat, Stratford-on-Avon)

I beg to move amendment 358, in clause 40, page 40, line 31, at end insert—

“(2A) In section 144, after subsection (1) insert—

‘(1A) In exercising powers under subsection (1) the relevant authority must engage with town and parish council within its area.

(1B) Engagement under subsection (1A) must include—

(a) consulting town and parish councils on tourism strategies, policies, and investment priorities; and

(b) creating opportunities for town and parish councils to contribute to activities relating to the exercising powers under subsection (1).

(1C) In exercising powers under subsection (1) the relevant authority must publish a report summarising the authority’s engagement with town and parish councils which includes—

(a) form of engagement used;

(b) the views of town and parish councils on the authority’s exercise of powers under subsection (1); and

(c) the role of town and parish councils in exercising powers under subsection (1).

(1D) The Secretary of State may issue guidance regarding requirements for engagement under subsection (1A).’”

This amendment would require local and/or strategic authorities exercising powers to encourage visitors to their area to engage with town and parish councils.

Siobhain McDonagh (Labour, Mitcham and Morden)

With this it will be convenient to discuss the following:

Clause stand part.

Manuela Perteghella (Liberal Democrat, Stratford-on-Avon)

Amendment 358 would require a strategic authority to engage with town and parish councils when using its powers to encourage tourism. Tourism is a vital part of the economy for many local areas, supporting jobs, local businesses and community services. The Bill allows strategic authorities to exercise powers to encourage visitors, but with no statutory requirement to involve town and parish councils in the process, as we explained before.

As we have discussed, many town councils are being given assets that are linked to the visitor economy—we have talked about country parks, for example. In my constituency, Stratford-upon-Avon town council is involved in organising lots of events, including the world-renowned Shakespeare birthday parade, which attracts many visitors from the UK and beyond. It is an example of our soft power.

Andrew Cooper (Labour, Mid Cheshire)

I have a lot of sympathy with what the hon. Lady is saying. If she likes

“piña coladas, and gettin’ caught in the rain”,

may I suggest that she looks no further than the Piña Colada festival in Northwich, which is delivered by Northwich town council and adds £500,000 to the local economy? I completely agree with her about the contribution that town and parish councils can make with stuff like this, but she would place a duty on the mayor that they “must” consult, and not all parishes are the same. Will she comment on that?

Manuela Perteghella (Liberal Democrat, Stratford-on-Avon)

I said strategic authority—this is at the strategic authority level. Parish and town councils are different, of course, and so they have different needs. Some areas depend on the visitor economy. My town council is represented in arts and culture and in the tourism strategies for the town.

Vikki Slade (Liberal Democrat, Mid Dorset and North Poole)

Does my hon. Friend agree that it is now quite common for a town council to run the tourist information centre? The only two places in my constituency that have a tourist information centre are Wareham and Wimborne. Often, the tourist information centre might be in a museum that is run independently, but it is not the local authority that runs it any more; it is the town council.

Manuela Perteghella (Liberal Democrat, Stratford-on-Avon)

In the case of unitaries, yes. The district council in the town of Stratford-upon-Avon is still in charge of the visitor information centre, but that will probably go to the town council when our district council is abolished.

Sean Woodcock (Labour, Banbury)

The hon. Lady has been very generous in giving way many times on all her amendments. I understand the spirit in which she has tabled them—to make sure that parish and town councils are acknowledged for their work—but one of my concerns about this amendment, as with many of her others, is the amount of work that it would put not just on the strategic authority, but potentially on the parish and town councils. They will be given a blitz of things and asked to respond to them, but many will not have the capacity to do so. Does she not accept that that is a potential challenge to this being done properly?

Manuela Perteghella (Liberal Democrat, Stratford-on-Avon)

As I said, we need to ensure that the strategic authority has the tools to consult town and parish councils. In an area such as mine, which is to go through reorganisation and devolution, we do not know what will happen to many smaller parish councils.

Andrew Cooper (Labour, Mid Cheshire)

My problem with the hon. Lady’s argument is that her amendment states:

“Engagement…must include…consulting town and parish councils”—

not “can include”, but “must include”. Of 300 parish councils, some might be home to only 150 people and some to 20,000 people, so they are completely different. I do not think that “must include” is appropriate.

Manuela Perteghella (Liberal Democrat, Stratford-on-Avon)

The onus would be on the strategic authority to consult, not on the parish or town council to respond. The argument that there are 300 parish or town councils, so we will not bother to ensure that their voices are heard, really disappoints me. The amendment would require strategic authorities to consult town and parish councils when developing

“tourism strategies, policies and investment priorities”.

The amendment also asks the Secretary of State to issue guidance on minimum standards of engagement. Again, we must give the strategic authority the tools to engage with town and parish councils, which, I remind the Committee, are going to take on a lot of assets and services when district councils are abolished.

Overall, the amendment is about giving local communities representation in tourism planning. That is important, because town and parish councils know the attractions, infrastructure needs and growth opportunities of their areas best. If a theme park is proposed, the town or parish council will know exactly whether, for example, a bypass is needed. Engaging with them will ensure that tourism plans are grounded in the reality of each community. I repeat that the onus to engage should be on the strategic authority.

The amendment would also ensure inclusive planning. We talked this morning about inclusivity. Small towns, villages and rural areas are often overlooked in broader strategies, but they are vital to our economy. By considering them, we support equitable growth across both urban and rural areas. The authorities would also have to report on how councils are engaged and what input they have provided. That would promote sustainable tourism, because the authority, by consulting on the views of parishioners through parish and town councils, would be able to balance visitor growth with the needs of residents. That is very important for areas such as my constituency. In short, the amendment would empower local communities, strengthen democracy and make tourism strategies more effective and inclusive.

New clause 41, which was tabled by my hon. Friend the Member for Bath (Wera Hobhouse), would require the Secretary of State to review the idea of giving local authorities the power to introduce visitor levies in their areas. This is an important power for strategic authorities. Towns and cities across the country are proud of the role that they play in supporting the visitor economy, both domestic and international, but the system needs to be made fairer through a recognition of the costs, as well as the benefits, of such a high degree of tourism. The new clause would compel the Government to conduct a review into giving local authorities powers to introduce visitor levies.

Scotland introduced the Visitor Levy (Scotland) Act 2024, which gives councils direct powers to apply tourist taxes. Wales followed suit with the Visitor Accommodation (Register and Levy) Etc. (Wales) Act 2025, and now Manchester and Liverpool have introduced a voluntary levy. Bournemouth, Christchurch and Poole has introduced a levy.

Vikki Slade (Liberal Democrat, Mid Dorset and North Poole)

On that point, Bournemouth, Christchurch and Poole council did attempt to introduce an accommodation levy. Unfortunately it failed on a technicality, but it may well come back. The amendment asks for a review into a visitor levy, but what is important is that, if one is implemented, it does not end up going back to the Treasury. There would be no benefit to a local community whatsoever if money collected from a visitor paying £2 a night to stay in a hotel ends up going back to Government, when it is the local economy that is damaged and the local economy that can benefit—

Siobhain McDonagh (Labour, Mitcham and Morden)

Order. That was a very long intervention.

Manuela Perteghella (Liberal Democrat, Stratford-on-Avon)

I thank my hon. Friend for the example from her council. As she said, it is important that the levy is ringfenced for the strategic authority to reinvest in the local area, so that it could provide, for example, additional regional funding streams for arts and culture and for residents themselves. I hope that the Government will at least commit to conducting a review into visitor levies, so that we can safeguard our hugely valuable tourism industry.

Paul Holmes (Conservative, Hamble Valley)

I will speak to amendment 358, in the name of the hon. Member for Stratford-on-Avon, and to new clause 41. I do not want to reiterate what I said previously, Dame Siobhain—your face indicates that that would not be looked upon advantageously—but I think that the sustained efforts of the hon. Member for Stratford-on-Avon to have the rights and responsibilities of town and parish councils recognised is admirable. I believe that it needs to be repeated to the Minister, and it is now coming from two Opposition parties.

Perran Moon (Labour, Camborne and Redruth)

One coalition.

Paul Holmes (Conservative, Hamble Valley)

The hon. Member for Cornwall, somewhere—he claims to speak for the whole of Cornwall—keeps saying “coalition”. I have already explained to him my view on pragmatic and sensible amendments to legislation that is flawed in many areas, as indicated by the number of Government amendments. We should not be so proud and tribal that we do not back other parties’ amendments when they make absolute sense.

Perran Moon (Labour, Camborne and Redruth)

Will the hon. Gentleman give way?

Paul Holmes (Conservative, Hamble Valley)

I will give way to the hon. Gentleman. Perhaps he will reform his ways.

Perran Moon (Labour, Camborne and Redruth)

In Cornwall alone, there are 213 town and parish councils. The amendment suggests that all 213 of them must be consulted. The hon. Gentleman does not strike me as somebody who likes layers of bureaucracy, but the bureaucracy involved in consulting 213 different town and parish councils for Cornwall alone seems to me not very sensible.

Paul Holmes (Conservative, Hamble Valley)

I am glad that the hon. Gentleman has accepted the premise of the argument that we can back pragmatic amendments to legislation to improve it. I hope that he might look on that in his career, particularly when it comes to recognising the independence of Cornwall and having the mayoralty just for Cornwall that he is striving for.

Vikki Slade (Liberal Democrat, Mid Dorset and North Poole)

A couple of amendments have been tabled on that issue. I think they were supported as a coalition by the Opposition, but not by the hon. Member for Camborne and Redruth.

Perran Moon (Labour, Camborne and Redruth)

rose—

Paul Holmes (Conservative, Hamble Valley)

I am not giving way any more, as I would like to make some progress. I am sure Government Back Benchers would like to go home at some point. I am happy to speak all afternoon, but I would like us to make some progress.

The hon. Member for Stratford-on-Avon is absolutely correct. This comes back to a serious point: many town and parish councils across England are already taking on more assets that form an integral part of the stated aims of clause 40. I will give the Committee a brief example. In my constituency, we have Royal Victoria country park, and a proposal is being looked at to abolish the county council and have it go into a strategic authority. However, proposals are actively being considered to transfer Itchen Valley country park, which is managed by Eastleigh borough council, to the local town and parish council. Those country parks have a large number of businesses, conference centres and other things that would directly help a mayor to sell our great region and attract people into it. The circumstances are the same across the country in many regions, which will be left out of consultation.

Sean Woodcock (Labour, Banbury)

Will the hon. Gentleman give way?

Paul Holmes (Conservative, Hamble Valley)

No, not at the moment. I know that anything about town and parish councils exercises the hon. Members for Mid Cheshire and for Banbury. They may want to speak shortly, but I will first answer the hon. Member for Camborne and Redruth. I do not think he is an analogue politician in a digital age, but consulting downwards could merely mean that an email is sent to a mailing list. I am sure he has a huge mailing list, given the number of constituents who admire his work. That is one click—it does not mean his constituents have to respond to it, and it would not mean that his councils had to.

Vikki Slade (Liberal Democrat, Mid Dorset and North Poole)

I wonder whether the hon. Member has a situation in Hampshire similar to ours in Dorset, where we have the DAPTC—the Dorset Association of Parish and Town Councils. Nothing in the amendment states that the strategic authority would have to engage with each and every town and parish council; it just says,

“with town and parish councils”.

That could be through their associations and through clusters of town and parish councils, such as the DAPTC.

Paul Holmes (Conservative, Hamble Valley)

It could also be stipulated in secondary legislation, if the Government wanted to go ahead with this. A council could literally advertise to town and parish councils that a consultation was going on. There could also be a mailing list where a strategic authority could send an email to the 300 parish councils. Those town and parish councils do not have to respond. That is devolution to town and parish councils, which the Government seemingly want to achieve.

Sean Woodcock (Labour, Banbury)

I am grateful to the hon. Gentleman for finally giving way. He has been very generous, as always, with his time. Does he accept that the danger with inserting the consultations that have been proposed in so many Opposition amendments is that the only growth we will see is in the number of officers in the strategic authorities sending out consultations, and the number of people in parish councils responding to them?

Paul Holmes (Conservative, Hamble Valley)

I am sure the hon. Member uses surveys when he communicates with his constituents. When he sends them out, I am sure he is not worried about overburdening his constituents in their lives, whether they want to respond or not. The same principle applies. There are many perfectly good programmes that could be used now to send out a consultation to people who are already programmed into a mailing list. If they want to respond, they can, and if they do not, good on them—that means that they are perfectly happy with what is going on.

I do not understand the constant fear about consulting town and parish councils. That is particularly the case—I say this with all due respect and with realism about the situation out there in the country—given the stated aims of the Government and the situation in local government, where, without a manifesto promise, districts and county councils are being abolished and there is a rush to transfer assets to town and parish councils. They are taking on mainstream responsibilities because of what the Bill will do. Whether we are talking about local growth plans or attracting visitors, many will miss out on having a visitor strategy that is worth the paper it is written on.

We are now discussing several authorities that already have the responsibilities. This legislation was drafted at a point from which we have moved on, and it puts unintended consequences before local authorities. I ask the Minister, in the spirit of constructive debate, to go away and properly look at how town and parish councils can be consulted. They are doing a lot more than the Minister or the Government Back Benchers who have spoken this afternoon realise.

Miatta Fahnbulleh (Labour/Co-operative, Peckham)

I thank hon. Members for that lengthy and robust debate. I will start with clause 40, and then I will pick up on the amendments. I remind the Committee that the purpose of clause 40 is to promote tourism and cultural activities, which we think are critical to boosting regional economies. These provisions enable authorities to encourage visitors and provide facilities such as conference centres, driving job creation and investment. Authorities can add value by forging a regional brand, and by attracting business and visitors, they can make the most of their multifaceted areas and the strengths of each local authority area. That is key to creating thriving hubs for visitors and residents.

Amendment 358 and new clause 41 touch on something that has been a constant theme throughout the debate. I understand the aims behind the provisions, and I understand opposition parties’ desire to have regard to town and parish councils. I come back to the fact that we have agreed that town and parish councils have an important role. They are important local partners, and we expect authorities to work with them where appropriate.

However, we do not believe that it is proportionate or right to put that in the Bill as a legal requirement. We trust authorities to decide how best to engage with their local partners, including town and parish councils, based on what is right and appropriate for their areas. Requiring formal consultation and reporting could, as my hon. Friends the Members for Banbury and for Camborne and Redruth have so eloquently said, create unnecessary administrative pressure, burden and resources at a time when we want these strategic authorities to be focused on delivery. Of course we want to encourage collaboration, but not to prescribe it. Engagement should be flexible. It should not be dictated by central Government or indeed this Committee; it should be left to mayors and strategic authorities who know their patch and their partners best.

I recognise the type of levy that new clause 41 would introduce, and I recognise that it is supported by local authorities and mayors. The Government keep all tax policy under review, and any changes to tax policy will be announced at a fiscal event in the normal way. I do not believe that the Chancellor would be very pleased with me if I were to make tax policy now in this great Committee.

Siobhain McDonagh (Labour, Mitcham and Morden)

That would also be outside the scope of the Bill.

Miatta Fahnbulleh (Labour/Co-operative, Peckham)

It would. One thing that the Bill does create is a statutory duty for Government to respond to formal requests from mayors for new powers—the right to request. Calls for any new fiscal powers should be made through that process. The Government propose to take account of the impact of visitors on local authority areas through the fair funding review. That point has been made by local authorities and by Committee members, and we are doing so to account for the fact that visitors—

Vikki Slade (Liberal Democrat, Mid Dorset and North Poole)

I fear I am about to be told off by the Chair, but—[Interruption.] The shadow Minister has just taken an interest. I welcome the Minister’s comment that the impact of visitors will be taken into account in the fair funding review. It is really important to add that that affects the fair funding review for our police authorities, as well as our local authorities.

Miatta Fahnbulleh (Labour/Co-operative, Peckham)

There are already mechanisms to enable places to introduce overnight stay levies through the accommodation business improvement district model, as the hon. Lady mentioned. With that, and allowing that this good Committee is not the Chancellor, I ask the hon. Member for Stratford-on-Avon to withdraw the amendment.

Manuela Perteghella (Liberal Democrat, Stratford-on-Avon)

I will not press new clause 41 to a vote, but I would like to do so with amendment 358, which concerns consultation with parish and town councils on tourism strategy.

Perran Moon (Labour, Camborne and Redruth)

On a point of order, Dame Siobhain. On a point of clarification, it was suggested earlier by the hon. Member for Mid Dorset and North Poole that I am now in favour of a mayoral combined authority for Cornwall. For the record, I would like it to be known that I am not.

Siobhain McDonagh (Labour, Mitcham and Morden)

That point is now on the record.

Paul Holmes (Conservative, Hamble Valley)

Further to that point of order, Dame Siobhain. I do not mean to detain the Committee, but I like to think I am a man of integrity. On the point of order by the hon. Member for Camborne and Redruth, it was not actually the hon. Member for Mid Dorset and North Poole who said that; it was me, and I apologise.

Siobhain McDonagh (Labour, Mitcham and Morden)

I am sure the Committee would like to thank you for being so candid.

Clause 41 - Co-operation with local government pension scheme managers

Miatta Fahnbulleh (Labour/Co-operative, Peckham)

Clause 41 requires that strategic authorities work with the local government pension scheme to identify and develop suitable investment opportunities. The local government pension scheme already plays a vital role in supporting local growth, with a portion of its £400 billion in assets invested in local projects. Such investments must of course provide a suitable return to pay pensions while also contributing to local prosperity, including through affordable housing, clean energy and local regeneration.

Although some combined authorities already maintain productive relationships with their local government pension scheme funds, clause 41 ensures that that collaborative approach becomes standard practice, embedding local government pension scheme engagement into local investment planning. That will not be a one-way responsibility. The Pension Schemes Bill introduces a corresponding duty on local government pension scheme funds to work collaboratively with their strategic authorities. Those reciprocal requirements are designed to foster key partnerships between the two parties to unlock investment in local growth and deliver benefits to communities across the country.

Clause 42 - Miscellaneous local authority functions

Siobhain McDonagh (Labour, Mitcham and Morden)

With this it will be convenient to discuss schedule 20.

Miatta Fahnbulleh (Labour/Co-operative, Peckham)

These functions are essential to the effective operation of strategic authorities. We are now standardising these functions across all existing and future authorities. These powers are core functions that any local government body needs. Standardising them across strategic authorities will create consistent foundations for them to build on and thrive from. Without these functions, we risk significantly debilitating new institutions before they have a chance.

Paul Holmes (Conservative, Hamble Valley)

To bring some agreement to the Committee, the Opposition absolutely understand, as we did earlier about standardisation, such recommendations to give powers to CAs and CCAs. We are perfectly in agreement with that and we thank the Minister for bringing the issue to the Committee.

Schedule 20 - Miscellaneous local authority functions

Miatta Fahnbulleh (Labour/Co-operative, Peckham)

I beg to move amendment 197, in schedule 20, page 205, line 6, leave out—

“, a combined authority and a combined county authority”.

This removes the reference to combined authorities and combined county authorities inserted into section 113(5) of the Local Government Act 1972 as these bodies are already included in the definition of “local authority” under section 146A(1) of that Act.

This is a minor and technical amendment to prevent duplication in legislation.

The rest of the debate is in Hansard.