The English Devolution and Community Empowerment Bill
17th July, 2025
On 10th July 2025, the House of Commons held its first reading of the English Devolution and Community Empowerment Bill, thereby starting the Parliamentary process to implement the radical ideas set out within the English Devolution White Paper into national legislation.
Described as the “biggest overhaul to local government in 50 years” and promoted as a “new dawn of regional power”, for once the hype actually seems merited.
Introduction
In December 2024, the Labour government published the English Devolution White Paper, which argued that growing “regional inequality, slower wage growth and a relative decline in living standards compared to other developed countries” was, in part, due to England being “one of the most centralised developed countries”.
The solution presented to this problem was said to be greater devolution, whereby significant powers and funds would be transferred out of Westminster to local decision makers. In this regard, the White Paper took forward the ‘levelling up’ agenda promoted by former Prime Minister Boris Johnson, but went much further, replacing a piecemeal, deal by deal approach with a much more structured framework that would ensure all areas of England would be capable of benefiting from similar powers.
Since the White Paper was published, Ministers have been working closely with the Office of Parliamentary Counsel to translate the ideas set out into draft legislation. This process is now complete and the Bill had its first reading in July 2025. It will now be scrutinised by Parliament over the coming months, with a view to many elements coming into force later next year.
What are the main elements of the English Devolution and Community Empowerment Bill?
One third of the Bill (Parts 1 and 2) is directed towards initiatives to “to speed up, widen and deepen devolution” through “strategic authorities”. There will be three types of strategic authorities (foundation strategic authorities, mayoral strategic authorities and established mayoral strategic authorities) and the category of strategic authority will determine the extent of the decision making powers and funds available.
For example, an established mayoral strategic authority such as Greater Manchester Combined Authority will be able to benefit from powers over local economic development, regeneration, housing, strategic planning, transport, local infrastructure, skills, employment support, health services and public safety. Section 49 of the Bill, also sets out a power under which established mayoral strategic authorities will be able to request changes to the law and their funding arrangements (which are the subject of multi-year integrated funding settlements), where this will help them deliver against their areas of competence. In contrast a foundation strategic authority will have access to fewer funds and powers.
Alongside this structure, the Bill establishes a ‘devolution framework’ designed to deliver the strategic authority model to all parts of England. Measures are proposed to make it quicker and easier to establish a strategic authority. More controversially for a bill promoting regional decision making, it is anticipated that Ministers will have the power to direct the creation of a new strategic authority or the extension of an existing strategic authority where local leaders “have been unable to agree how to access devolved powers for their area”.
Part 4 of the Bill contains extensive provisions relating to the auditing of strategic authorities. This is unsurprising – it seems sensible that in return for the transfer of new powers and funds, recipient authorities will sign up to an audit regime akin to that of Central Government. A core element of this regime will be the creation of the Local Audit Office, which will oversee “the effective operation of the system of audit”.
What exactly will be audited has not yet been set out, other than that the Local Audit Office will act in line with directions and guidance issued by the Secretary of State (which have yet to be published), however the new audit regime is expected to focus upon ensuring that governance arrangements are suitably robust, as well as undertaking spot checks to ensure that Subsidy Control and Public Procurement requirements are met when public funding is used. Where non-compliance is identified, a strategic authority could be re-categorised, thereby losing funds and powers.
The English Devolution and Community Empowerment Bill also aims to simplify local government structures by replacing district councils in areas such as Essex, Kent, Surrey, Hertfordshire, Norfolk and Suffolk replaced with unitary authorities (thereby reversing the two-tier structure brought in by the Local Government Act 1974).
The Community Empowerment element of the Bill sees the introduction of a “community right to buy” which will replace the current community right to bid policy introduced in the Localism Act 2011. This will create a right of first refusal, granting community groups greater powers to purchase assets of community value at a negotiated or market value price within a 12-month moratorium period from the point of listing for sale. The Bill also defines a new type of asset of community value, the “sporting asset of community value” offering opportunities for sports clubs and communities to take on the freehold of locally important grounds and facilities, thereby protecting them from being lost.
Other changes include reverting the voting system for mayors and Police and Crime Commissioners to the supplementary vote from the first past the post system, supporting High Street businesses with a new ban on upwards only rent reviews and extending the general power of competence in the Localism Act to mayors and mayoral strategic authorities.
What has been the response to the English Devolution and Community Empowerment Bill?
As one would expect, politicians in the North and the Midlands have responded positively to the publication of the Bill.
Richard Parker, Mayor of the West Midlands, said “this Bill marks a turning point. With the right powers, we can build the homes we need, fix our infrastructure, and create better opportunities for local people”. The recently elected, Mayor of Hull and East Yorkshire, Luke Cambell, said that the Bill provides “a firm, clear and long term platform for the powers that will allow us to make big decisions locally in areas such as major transport improvements, equipping local people with the skills our businesses really need, and investing in the key industry sector that will help grow economic prosperity”.
A similar reception was received from the business community. Tom Bridges, Arup’s UK Government business leader, said the Bill would give local leaders “the powers and resources needed to unlock growth across the country”. Henri Murison, Chief Executive of the Northern Powerhouse Partnership, welcomed the introduction of the bill, saying that “the government is right to put devolution at the heart of its legislative programme, continuing the shift towards powers being held where they can be best used to tackle challenges and seize the opportunity of higher city region productivity” and Zoë Billingham, Director of IPPR North said that the “Bill tips the balance of power further into the hands our local and regional leaders” and “critical tools – from protecting progress on devolution in statute, to stronger regional planning levers through to a default right for communities to buy local assets” which “will help rebuild trust in politics and drive national growth”.
At the same time there have been some dissenting voices, including the Local Government Association which published a press release stating that “local government reorganisation should be a matter for councils and local areas to decide” whilst also recognising that the issue was “polarising” and “the Government is right to recognise that empowering local areas is key to delivering its agenda, be it boosting inclusive economic growth, building homes, creating opportunities for all and improving public services”.
Conclusion
The English Devolution and Community Empowerment Bill deserves to be described as the “biggest overhaul to local government in 50 years” and could well represent a “new dawn of regional power”. This is because the Bill builds upon the success of the Metro Mayors and Combined Authorities to embed a new dynamic within politics – one in which the majority of regeneration decisions are made by local politicians, drawing upon their detailed understanding of the issues. In terms of community empowerment, the Bill is more limited, albeit the steps to assist the community to purchase assets, including sports fields and to rein in upward only rent reviews are to be welcomed. Of course, with any draft legislation there will be changes made to the text and it will be interesting to see the legislation that emerges from the Parliamentary process in the coming months.
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Please note that this briefing is designed to be informative, not advisory and represents our understanding of English law and practice as at the date indicated. We would always recommend that you should seek specific guidance on any particular legal issue.
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