PARLIAMENTARY DEBATE
English Devolution and Local Government - 5 February 2025 (Commons/Commons Chamber)
Debate Detail
The No. 1 mission of this Government is to unlock growth in our regions and put money back in the pockets of working people. Every one of our proud towns and cities has a vital contribution to make to growth, but for all the promises of levelling up, when the rubber hits the road, Governments’ first instincts have been to hoard power and hold our economy back. Since I launched the devolution White Paper in December, I have been overwhelmed by the excitement from communities wanting to join the devolution revolution. With the measures I will announce today, if all goes to plan, over 44 million people will see the benefits of devolution, which is close to 80% of the country. That is more progress in a shorter amount of time than under any Government in Britain’s history.
Today, I am delighted to announce six new potential devolution areas that will be part of our devolution priority programme with a view to mayoral elections in May 2026. These places will get a fast-track ticket to drive real change in their area. While devolution can sound techie, the outcome is simple. It is a plan for putting more money in people’s pockets, a plan for quicker, better, cheaper transport designed with local people in mind, and a plan for putting politics back in the service of working people. Today, I can confirm to Members across the House that the places on the devolution priority programme are: Cumbria; Cheshire and Warrington; Greater Essex; Hampshire and Solent; Norfolk and Suffolk; and Sussex and Brighton. Mr Speaker, a seventh area that is somewhat familiar to both of us, Lancashire, is already deciding its mayoral devolution options, and we will look at its proposals in the autumn in parallel with the priority programme.
When I became Deputy Prime Minister, I promised that this Government would change the future of the north of England so that northerners would no longer be dictated to from Whitehall. The programme I announce today will see the north of England covered by devolution, but this programme is for all of England, as is shown by the significant progress in the east and the south. Today, legislation comes into force creating mayoral devolution in Greater Lincolnshire and in Hull and East Yorkshire, which are electing their first mayors this May, as well as foundational devolution in Lancashire and in Devon and Torbay.
Every place can see a benefit from devolution, and we want to move quickly to realise these benefits within the first term of our Government. Whether it is more regular bus services, more affordable housing or the simple fact that local people will have a local champion with regional influence, mayors have a proven track record of delivering growth and higher living standards. But we are clear that where a mayor is not using their powers to benefit their residents, the Government will have the tools to ensure delivery. We will create strong accountability measures in the English devolution Bill to ensure that mayors deliver the housing, transport and infrastructure that their residents need.
But devolution is only as strong as the foundations it is built on. Despite the funding injection from this Government, councils of all political stripes are in crisis. A decade of cuts and sticky-plaster politics has left councils in a 14-year doom loop. That is why we are fixing the foundations of local government by reforming funding and focusing on prevention. I know how vital local government is for achieving our Government missions. I also know that reforming local government means tough choices—choices that the Conservatives were simply too unwilling to take.
Councillors of all types, including district councillors, tell me that the two-tier system is not working, so alongside our wider reforms, this Government are committed to making simpler, more efficient and clearer structures so that residents can access good public services without eye-watering price tags. These kinds of reforms will not happen overnight, but we are determined to deliver fairer funding to end the postcode lottery so that everyone gets the support from public services that they deserve. That is why today I will be issuing a legal invitation to all 21 two-tier areas to submit proposals for new unitary councils. Letters and the accompanying written statement will set out the requirements for these proposals.
New unitary structures will be the right size to achieve efficiencies, improve capacity and withstand financial shocks, but I am clear about the need for flexibility when reorganisation goes hand in hand with mayoral devolution and when it is coupled with ambitious plans for housing growth, so these proposals will be developed with effective local engagement and dovetail with devolution arrangements. I want to reassure Members that this process will involve extensive engagement with local communities and Members of this House.
Turning to the timings of the local elections in May, for certain areas a significant amount of work is needed to unlock devolution and deliver reorganisation. For this reason, some areas requested to postpone their elections until May 2026. The Government’s starting point is for all elections to go ahead unless there is a strong justification for postponement. The bar is high, and rightly so. I am agreeing to only half of the requests that were made. After careful consideration, I have agreed to postpone elections only in places where this is central to our manifesto promise to deliver devolution.
We are not in the business of holding elections to bodies that will not exist, and where we do not know what will replace them. This would be an expensive and irresponsible waste of taxpayers’ money, and any party calling for those elections to go ahead must explain how this waste would be justifiable. To that end, I have agreed to postpone local elections in East Sussex and West Sussex, in Essex and Thurrock, in Hampshire and the Isle of Wight, and in Norfolk and Suffolk. I have also agreed to a postponement in Surrey, given the urgency of creating sustainable new unitary structures, to unlock devolution for this area. I intend to move to elections to the new shadow unitary councils in all these areas, as is the usual arrangement for local government reorganisation.
We are postponing elections for one year, from May 2025 to May 2026. There is a well-established precedent, as the Conservative party knows all too well. North Yorkshire, Cumbria, Somerset, Buckinghamshire and Northamptonshire all had their elections rescheduled by the previous Government. I will table the relevant secondary legislation when parliamentary time allows, and local elections will take place as scheduled in all other areas. I make it clear that all two-tier areas should be making plans to move to simpler structures, regardless of election delays. The invitation will be sent to all two-tier areas, with a timetable taking into account that their election has been delayed.
I know that the devolution journey may not always be comfortable for politicians in Whitehall, but it is not supposed to be. After all, we are undergoing a generational power shift from Whitehall to the town hall. We have already seen a huge amount of good will from Labour Secretaries of State who are willing to give up newly won powers for the sake of our towns and cities. The Secretaries of State for Energy Security and Net Zero, for Transport, for Work and Pensions for Science, Innovation and Technology have led the devolution charge, and now the Prime Minister and I ask Members to do the same.
I commend this statement to the House.
Although we support the principle of devolving power to local areas, we are totally against the Secretary of State’s plans to abolish every county council and district council in England, and we are against the unprecedented mass postponement of local elections for at least one year. Today is a very worrying day for democracy in this country.
The Secretary of State is making local government less accountable to the people and more accountable to her. Contrary to her statement, she is not doing away with a two-tier system; she is simply creating a new tier of Orwellian-sounding strategic authorities that are closer to her and closer to Whitehall, for her to use as a pawn to implement this Government’s deeply unpopular socialist agenda.
The reality is that this is delegation, not devolution—not devolution but a clear centralisation. As Dr Andy Mycock of Leeds University set out in his recent paper on the Secretary of State’s plans, there are clear concerns about the potential
“power drain of back-bench local councillors if local government is seen increasingly as a delivery agent.”
Let us be clear that this announcement is a huge upheaval of local government right across the country. This was not a Government manifesto commitment, and the Secretary of State has no mandate for it. These are her choices, and she has put a gun to the head of local councils to force them into a decision with little regard for local people. This is not the invitation she claims in her statement; it is an instruction. No council should be bullied or blackmailed into local government restructuring.
Local government should be local to residents and respect local identities. We have a proud record of supporting devolution and, rather than this top-down approach, we have worked with local people to deliver devolution from the ground up. The Government have tried to claim that they are taking a bottom-up approach—indeed, the Minister for Local Government and English Devolution said exactly that on the Floor of the House on 20 January—yet the Secretary of State admits in her statement that
“all two-tier areas should be making plans to move to simpler structures”.
Imposing Whitehall diktat on local people, rather than the locally led approach we followed, is prone to problems, especially when rushed.
How exactly will this restructuring put more money into people’s pockets, as the Secretary of State claims? What evidence does she have that it will mean lower bills for taxpayers? How is this consistent with the Prime Minister’s claim in March 2023 that council tax would not increase by a “single penny” under a Labour Government?
Does the Secretary of State accept that she has no electoral mandate for this huge upheaval? Does she also accept that these changes, which will mean that every single council employee in two-tier areas has to reapply for their job, will have an impact on local services, including planning delays? How will this impact on her plans to deliver 1.5 million homes in this Parliament—a 50% increase on the 50-year record levels delivered by the previous Government?
Councils in areas of the country included in this announcement are carrying very high levels of debt—Woking and Thurrock, to name but two. What support will the Secretary of State give to authorities facing eye-watering levels of debt, and will this debt be written off? What is she doing to ensure that, as a result of today’s announcement, authorities do not embark on reckless asset disposal programmes and spending sprees? Can she confirm that elections will be delayed for a maximum of a year, or is it the case, as we have heard, that elections could be delayed by up to three years?
First, this project will unlock billions of pounds to spend on frontline services, which is why councils have come forward and want to work with us to ensure that we deliver. It will be for local areas to decide whether they apply to the priority programme and respond to the statutory invitation to all two-tier areas. We have made no bones about the fact that we want to see reorganisation so that money and funding go into the public services that need it most.
Secondly, the hon. Gentleman talks about money. We have put £69 billion into local authorities, which is a 6.8% real-terms increase. In contrast, there were 23% cuts in the last decade under the Conservatives. He talks about council debt, but it was his Government who pushed councils to the brink. He talks about the impact on local services, and we are working with councils to inject the money and resources they need so that they can deliver for local people. It was his Government who brought them to the brink.
I cannot believe that the hon. Gentleman wants to talk about housing targets, because his Government failed to meet their housing targets every single year, leaving us with a housing crisis. He should be apologising for his Government’s record on housing.
We are proud of the work we are doing on devolution. We are proud that we are working with councils. We are proud that we are bigging up the work of our local authorities and, unlike the Conservatives, we will continue to support them.
On tackling regional inequality, this statement includes parts of the country that, frankly, have been failed by successive Governments. These are major structural reforms to local government, and there are concerns about disruption to services during their implementation. Councils are already seeing this, and it will have an impact on the most vulnerable. Will the Secretary of State ensure that these transition arrangements do not have an impact on the essential day-to-day services on which so many of our constituents rely?
I also welcome my hon. Friend’s comments on the mayoral model; we have seen how that model has brought positive change to local areas. I acknowledge the concerns raised about capacity and local services. We are ensuring that we work with local authorities to increase support for them, so that this exercise will deliver better public local services for people and will not be to their detriment.
A key pillar of our democracy is the right to vote, with people making a mark for the person they want to represent them. The Conservative councils that asked for and have been granted the right to cancel their elections have created crises in special educational needs and have let their residents down. The Conservatives should have been kicked out of county halls last May, as they were kicked out of government last summer, but now those councils have been given the right to help design the new authorities. The plan, which also signals the end of district councils, is completely undemocratic.
We welcome the move to mayoral authorities—it is in train and, as a former council leader, I know councils were already working on it—but there is no democratic mandate for the cancelling of councils in ancient cities such as Colchester and Winchester, the previous capital of England. That was not in the Labour manifesto. What active role will those districts have in the co-production of the new unitary authorities? When will those district councils cease to exist? For priority areas such as Surrey and Hampshire, what assurance will the Secretary of State give that the elections will not take place after May 2026? For places that have had their own authority for hundreds or even thousands of years, what support will be provided to develop meaningful town councils with statutory powers, so that the identity of places such as Winchester can be maintained forever?
On the cancelled elections, councillors in those areas are elected, and we have delayed for reorganisation only under exceptional circumstances, where councils have come forward. As I have made absolutely clear, the delay is for a year, from May 2025 to May 2026. As I stated earlier, I turned down many more councils because I believe that democracy is crucial. There is an active role for district councils. We are working with districts and local authorities to ensure that the consultation period and reorganisation are being done with them, not being done to them. It is incredibly important to stress that.
Let me be perfectly clear. We know that this Government want to build 1.5 million homes. In a place that is building more homes than almost anywhere else in the country, we could have contributed to that, but the situation I mention will put some barriers in the way of doing so. In a place with one of the most incredible economies in the country, we could have made a contribution, but we are unable to do so. Can the Secretary of State therefore let us know whether she will look again at whether the Bedfordshire, Luton and Milton Keynes offer can move forward, so that we can get the deal in place by 2026?
“I will be issuing a legal invitation to all 21 two-tier”
authorities. In the spirit of working with local leaders, would she accept my legal invitation to meet all the borough leaders—cross-party—the MPs and the Leicestershire county council leadership to discuss what our shape would look like when it comes to devolution?
“given the urgency of creating sustainable new unitary structures”.
Does she find it perverse that, because of financial mismanagement by Conservatives in Surrey, my constituents will lose their democratic right to vote and remove from power the Conservatives who caused that mess in the first place?
In my constituency, we are lucky enough to have a district council that is very well run and very well funded. For that reason, we have been able to preserve, for example, a theatre that is run and owned by the council, which would surely have been lost if it had been exposed to the bottomless pit of SEN budgets and adult social care. I am concerned that the loss of a two-tier system means that our wonderful institutions will be at risk unless they receive some kind of protection. Can the Secretary of State offer us anything for the future when we become a unitary?
I welcome the Deputy Prime Minister’s statement today, but I want to pull out a few points of procedural process that we will be going through over the next 12 months. First, senior officers will be spending hundreds of hours focusing on reorganisation, rather than on the challenges of delivering frontline services. In response to a previous question, the Deputy Prime Minister mentioned financial support, so will officers’ time be able to be charged back to the Government?
Secondly, we have not heard about local consultation as we go through this process. Boundary changes and boundary reviews will have to be done internally. I have been on a council where I have done those things myself, and that alone took over 12 months to achieve and included statutory provisions for consultation. Also, if we have an election in May 2026, organisations and political parties will need to know what the wards are at an early stage, so that they can do their selection and their approvals. I am sure that Reform will learn about the importance of approval processes in all-out elections.
If there are delays in the processes, what mechanism does the Deputy Prime Minister have for elections to go ahead even without a body in place to be elected to, if she is good to her word that elections will happen next May? Finally, how will she keep the House updated on progress?
We are not cancelling elections. I have been clear about the rationale, which is not unique or something that has not been done before. This delay is for reorganisation, and for further devolution so that people in local areas will get more powers from this Government. That is what we promised in our manifesto, and we will continue to deliver for people. I have strict and narrow guidance on which I allowed those areas to delay their elections, and I am confident they will be able to deliver. That is why I refused others. I am acutely aware that we want to ensure that people have a say in their local areas. That is what the devolution agenda is all about: giving local people more say and more powers.
It is fair to say that in the streets of Henley and Thame, strategic mayoral authorities were not on the lips of residents during the general election. Health was, however, with the dire situation that the Conservatives left in my constituency. There is still perhaps a crumb of opportunity in this reorganisation regarding realigning authorities with integrated care boards, so that we avoid issues where constituents cannot get services on other borders. Is that being taken into account?
I thank the Secretary of State for answering so many questions this afternoon—she has been on her feet for some time. I am dismayed by the delay to elections in West Sussex, partly because when the district recently went through a reorganisation of its boundaries, it took nearly two years to complete. Unitary authorities are large entities and this is an enormous task, especially given the scope of what has been announced today for the south and east of England. What assessment has the Secretary of State made of the capacity of the Local Government Boundary Commission for England to deliver the boundary reviews? Will she expand on the financial support that will be given to councils to ensure that they are able to merge vital public services?
On delaying elections, I have been clear about the high bar that I set. I absolutely understand the enormous task that is faced when looking at reorganisation, which is why we will put extra support in place. I cannot outline exactly what that will be for the hon. Member’s area, because it depends on what is needed on a case-by-case basis. The Government are committed to working with authorities to meet that timetable. I have been clear from the Dispatch Box that we want those elections to go ahead in May 2026. We will be working on that basis, and my Department will be working with local leaders to deliver it, on the basis that they knew the delay was happening.
Devon is a huge rural area, and there are concerns that if it becomes a unitary it could end up devolving power away from people in a sparsely populated area, and moving the centre of power away from local communities, which does not feel like devolution. Will the Secretary of State clarify what size of unitary authority she will be looking for? Part of Torbay is in my constituency—it is one of the smallest unitaries in the country, with 139,000 people. Will it be allowed to continue as a unitary, or will it be required to be part of a greater whole?
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