About the Local Government Association (LGA)
The Local Government Association (LGA) is the national voice of local government. We are a politically-led, cross-party organisation that works on behalf of councils to ensure local government has a strong, credible voice with national government.
We aim to influence and set the political agenda on the issues that matter to councils, so they are able to deliver local solutions to national problems.
Executive summary
Role of councils
The Bill should enshrine the role of councils in shaping and delivering devolution. This means setting clear expectations for how councils will be involved in regional strategies through a new Duty to Engage, and strengthening the role of council leaders in the governance structures of SAs.
Governance
To ensure that consensus is at the heart of English devolution, we are advocating for councils to have a stronger voice in formal governance arrangements. This includes the removal of the Mayor’s casting vote in instances where decision-making is tied for Spatial Development Strategies and Local Transport Plans; a review of simple majority voting after 12 months, with a view to amending voting thresholds where needed; and the option for local places to adopt weighted voting, where there is local need due to large population disparities between constituent councils, and local support.
Fiscal devolution
A statutory power within the Bill for local areas to impose a levy on overnight stays in accommodation within their area, to be known as a 'local tourism levy'. A levy would provide revenue to support sustainability and development of the local visitor economy. Genuine devolution means giving local areas the powers and tools to shape their own futures. This includes the ability to raise and control resources, define local priorities, and lead integrated public services in ways that reflect local needs.
Strategic competencies
Expansion of the devolution framework to include more detail on the competency surrounding environment and climate change, and inclusion of a competency on culture, tourism and creative industries.
Pensions
The Government has announced its support for councillor and mayoral pensions; this legislation should be brought forward as soon as possible to support people from all walks of life running for election. The Government should also ensure there is provision for auto-enrolment.
Ministerial directive
Support for additional statutory tests and parliamentary oversight to limit the use of the ministerial powers included in the Bill to establish, expand and impose mayors on SAs without local consent. These powers should only be used as a last resort, to avoid devolution islands, where local agreement cannot be achieved.
Committee Governance System
Currently, 38 councils have chosen to operate a committee governance system, either through a referendum or council decision; these democratic decisions should not be disregarded. Further to this, all councils currently have the option to move to a committee system if they and their communities feel it would be beneficial for local decision-making. This flexibility in local governance should be preserved for future authorities.
A Fair Settlement for London
A Combined Board model, as proposed by London local authorities, would ensure that boroughs have a formal decision-making role within the Greater London Authority (GLA). This would bring London in line with other SAs and enable better collaboration, outcomes, and value for money in public services across the region.
Member Standards and Conditions
The current standards regime is not fit for purpose. The Government has committed to reforming the system, as well as other changes, such as introducing remote attendance for councillors and legislating to protect councillors’ home addresses from publication. These reforms should be incorporated into the EDCEB to ensure that new authorities are established with these protections and powers in place from the outset. In addition, commissioners should be explicitly in scope of anticipated reforms to the standards regime for local authorities, creating a common standard of conduct and behaviour for all those in public life in local and regional government.
Audit
The provision requiring local authorities to have an audit committee, and for that committee to have at least one independent member, must be handled carefully. Government must issue statutory guidance on what constitutes 'independent', the appropriate skill requirements, renumeration levels and a solution for those authorities who are unable to recruit suitable local capacity, potentially through a national pool.
Part 3: Other measures about local government and PCCs
Clause 57: Local authority governance and executives
Currently, 38 councils have chosen to operate a committee governance system, either through a referendum or council decision; these democratic decisions should not be disregarded. Further to this, all councils currently have the option to move to a committee system if they and their communities feel it would be beneficial for local decision-making. This flexibility in local governance should be preserved for future authorities. We ask the Government to work with councils using the committee system going forward.
New clause: Local Government Pension Scheme: councillors and mayors
The lack of pension provision for councillors and mayors since 2014 is a financial barrier for working-age councillors, particularly if serving as a councillor means abstaining from other pensionable work. The Government has already announced its support for councillor and mayoral pensions; the LGA would support legislation to bring this into change forwards as soon as possible.
New clause: Councillor home addresses
Under existing legislation, councils must maintain two registers that include councillors’ home addresses. Under Clause 100G of the Local Government Act 1972, councils are required to maintain a register of the names and addresses of members and co-opted members on council committees and subcommittees. This list must be available for the public to inspect. Under Clause 29 of the Localism Act 2011, monitoring officers must maintain a register of members' interests, including pecuniary interests, which will usually include home addresses of members and their spouses within the local authority area. This register must be available for the public to inspect and published on the website. There is provision for councillors' home addresses to be withheld from the public register of interests as a sensitive interest; however, the legislation does not provide for councillors to proactively withhold their address.
The Government has committed to removing the requirement for members’ home addresses to be published. The LGA would support amendments to the EDCEB to address this issue for multiple practical, safety and wellbeing reasons. This could be achieved relatively easily through amendments to the EDCE Bill to require councils not to publish the home address of members or those whom they live with in a public register.
New clause: Remote attendance at council meetings
Under the Local Government Act 1972, relevant statutory meetings must be held in person, and councillors cannot formally attend or vote if they attend remotely. The LGA has long called for councils to be able to decide for themselves whether to allow remote attendance and welcomed the Government’s announcement that councils will be given this flexibility. These reforms should be incorporated into the EDCE Bill to ensure that new authorities are established with this option available from the outset. The LGA would support amendments to bring this change into effect as soon as possible.
Part 4: Local Audit
Clause 66: Audit committees
Local authorities will already have a committee whose functions include those of an audit committee. The proposed legislation formalises this and aligns the requirements and functions of councils with those already in place for Combined Authorities.
If independent members are to be mandated, this needs to handled carefully, and the LGA seeks clarity through the legislation or statutory guidance on what constitutes 'independent', the appropriate skill requirements, renumeration levels and a solution for those authorities who are unable to recruit suitable local capacity, potentially through a national pool.
Part 5: Business tenancies: prohibited terms relating to rent
Clause 71: Rent reviews and 'put options': prohibited terms
The current and future viability of high streets and town centres is a priority for almost all councils. For most areas, the solutions lie in creating the conditions for a strong local economy and having the right size and blend of businesses, private and public services and residential that will create footfall to maintain vibrancy and help sustain the high street as an important economic and social asset. It is important that the commercial rental market supports this.
However, whilst a ban on upward-only rent reviews for new leases may appear to help keep rents down and therefore more attractive to businesses; there is concern with potentially unintended consequences of the long-term viability and attractiveness to investors and developers. This includes for councils, many of which are significant landlords in their high streets. It is helpful that existing leases, including those with council landlords, will continue to operate under their existing terms, including any rent review clauses.
We therefore call on the Government, before introducing any new legislation, to consult widely and collect evidence on:
- What are the determinants of empty high street shops and the extent that upwards only rent reviews are a significant factor; and
- The impact that a ban on such reviews may have on future viability and attractiveness for investors.
Contact
Archie Ratcliffe
Interim Head of Public Affairs and Stakeholder Engagement
07867 189177