Miatta Fahnbulleh
MP for Peckham · Labour (Co-op) · United Kingdom
“I am pleased to speak once again on the English Devolution and Community Empowerment Bill. I thank Members from across the House for their constructive engagement in getting the Bill to this point.”
“I hope this Bill represents the start of a journey that will fundamentally change the way that Government works and how we, in this place, serve the communities that we are here to represent; where the principle of devolution by default, underpinned by a clear framework, is locked in; where local leaders are empowered to drive economic ch…”
“However, we have heard concerns expressed in the other place and in this House that requiring a council to move to the leader and cabinet model within a year could create challenges for some councils, their members and officers—for example, where an authority has submitted a proposal for a boundary change or merger in response to the Secr…”
“We have listened carefully to the concerns raised in both Houses on the remaining issues: the ministerial power of direction in schedule 1, the prioritisation of development on brownfield land, and the models of governance in local authorities. That is why the Government have today tabled three amendments, which I will now outline.”
“To that end, and in the interests of not delaying the progress of the Bill and of showing that communities can benefit from the powers that we all wish to see enacted at the earliest opportunity, the Government are content to remove all powers in schedule 1 that would allow the Secretary of State to direct the establishment of a strategic…”
“As I have said consistently throughout the passage of the Bill, our policy and our practice are very clear. We are working with local leaders and we will continue to work with them to develop devolution proposals that command broad support across their area. That collaborative approach will always be our clear preference.”
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“I heard both the point that the hon. Member has just made and the point he made during the debate. The model we have in London has been a successful one for 25 years. We will continue to work with the mayor and the constituent councils to build that partnership, and to look at ways in which we can strengthen not only the powers and responsibilities of the mayor, but their accountability. Moving beyond London, I thank my hon. Friends the Members for Northampton South (Mike Reader), for Stoke-on-Trent South (Dr Gardner) and for Uxbridge and South Ruislip for highlighting the opportunities of devolution. It was great to hear that from Government Members—what we heard from Opposition Members on this topic was pretty disappointing—because we recognise the need to create strong institutions within a functional geography.”
“We are already seeing on the ground that our mayors and our strategic authorities are in the vanguard and are pushing, and I imagine they will continue to build on this area as they accumulate powers and more levers over this area. We support the intention behind the poverty and equality duty, as I said in Committee. We think it is a thread that runs through the Bill. Any mayor and any strategic authority will fundamentally care about poverty and reducing inequality, and the functions within the Bill are the enablers of that.”
“I thank my right hon. Friend for raising new clause 29, which I was just coming to, and I thank my hon. Friend the Member for Stroud (Dr Opher) and other hon. Friends for championing the issue. We are clear that mayors and strategic authorities have an important role to play in the fight against the climate and ecological crisis. That is why climate and environment are included in the competences that will sit with strategic authorities under the Bill. We already have mayoral strategic authorities that are subject to the biodiversity duty. They are required to work with their constituent authorities to deliver air quality action plans.”
“I will not give way, because I think Members are getting rather irate and everyone wants to go home. I will finish with Cornwall and the points made by my hon. Friend the Member for Camborne and Redruth (Perran Moon). He has been a passionate and consistent advocate for Cornwall. We recognise Cornwall’s minority status and we will continue to safeguard that. We cannot accept the amendment, because it cuts across the powers that we want to put with mayors. I reassure him and other Members from Cornwall that we are committed to working to strengthen the devolution deal that we have already done with Cornwall to ensure that we are unlocking opportunity in the area.”
“(4B) Where the Secretary of State has determined a category that includes the majority of county and unitary councils (“a county and unitary category”), a principle that must be applied to the CA and CAA category is that the means of determining whether the relevant basic amount of council tax is excessive is the same as any means set out in a principle applied to the county and unitary category (but for the purposes of the determination references to any referendum principle for county and unitary councils that specifically relates to expenditure on adult social care should be discounted).’”— ( Paul Holmes .) This new clause would limit increases in the mayoral precept according to similar principles limiting council tax increases. Brought up, and read the First time. Question put, That the clause be read a Second time.”
“(2) In section 52ZC, after subsection (4) insert— ‘(4A) Where, for the purposes of this section, the Secretary of State determines categories of authority for the year under consideration, one of the categories determined by the Secretary of State must include all mayoral combined authorities and CCAs (‘the CA and CCA category’).”
“New clause 43 accordingly read a Second time, and added to the Bill . New Clause 44 Licensing functions of the Mayor of London “Schedule (licensing functions of the Mayor of London) amends the Licensing Act 2003 to confer licensing functions on the Mayor of London.”— (Miatta Fahnbulleh.) This inserts new Schedule NS2 into the Bill conferring licensing functions on the Mayor of London. Brought up, read the First and Second time, and added to the Bill. New Clause 2 Council tax: CAs and CCAs to be subject to same increase as most county and unitary councils “(1) The Local Government Finance Act 1992 is amended as follows.”
“I will conclude. We are clear, despite the naysayers on the Opposition Benches, that this Bill is a fundamental step forward. It is the biggest transfer of power to our mayors, our local authorities and our communities. The driver behind the Bill is the principle that if we push power out and locate it in local people, we can drive the change that people want. I end by saying this: the Bill is a floor, not the ceiling. We are determined to continue building on the devolution journey that we have started, putting power, agency and resources in the hands of local leaders and communities, because that is how we drive local change that can drive national change. I urge the House to support the Government’s amendments to this Bill to ensure that we can unlock the potential of devolution. Question put and agreed to .”
“Only by raising household incomes and putting more money in people’s pockets can we boost the demand that our high streets need. To the Conservative party, who pretend that there is a quick fix, I say this: you crashed the economy; do not forget that. You put jobs and livelihoods at risk; do not forget that. You oversaw 14 years of decline for our high streets and our district centres; this Labour Government are dealing with the mess that you left behind. So, quite frankly, we will take no lectures from the Conservatives.”
“The shift to online and out-of-town retail left too many high streets with increased vacancy rates, and the Conservatives did absolutely nothing about it. Austerity and cuts to local government robbed our public realm of investment, and they did absolutely nothing about it. The harshest pain of all was felt because of the cost of living pressures resulting from Liz Truss—remember her?—and her catastrophic mini-Budget, which Conservative Members supported every step of the way. Where the Conservatives oversaw neglect and decline—for which they should hang their heads in shame—this Labour Government believe that the best days of the nation’s high streets are ahead of us. But to reach them, we need the full force of Government to make that a reality.”
“Member for Arundel and South Downs (Andrew Griffith). Our town and city centres are part of our identity and our sense of belonging. When they do not meet expectations—when shops are shut and footfall is down—that can dent pride in place, hold back the economy and leave our communities divided. Put simply, they are part of the nation’s barometer of whether we—all of us in this House—are doing a good job. That also means that, when our high streets prosper, the country can too. Retail and hospitality form the engine of our economy. Every pound spent on our high streets supports jobs, renewal and living standards. But, after 14 years of decimating our high streets, I think the Conservatives have some cheek in raising this debate and pretending they have solutions.”
“I beg to move an amendment, to leave out from “House” to end and insert “recognises the need to rejuvenate high streets following 14 years of decline under the previous Administration; welcomes the Government’s action to restore Pride in Place backed by £5 billion to support 339 locations to empower communities to drive meaningful change in their local area, including high streets; supports local communities being given new powers to tackle vacancies, and prevent new betting and vape shops in their areas, including the ability to auction off persistently empty premises through High Street Rental Auctions; further welcomes the English Devolution and Community Empowerment Bill that will ban upwards-only rent reviews in commercial leases, helping to create fairer rental conditions; endorses the Government’s support for property owners; also welcomes that from April 2026, eligible retail, hospitality, and leisure properties with rateable values below £500,000 will benefit from permanently lower business rates multipliers; welcomes the Plan for Small Businesses which supports high street small businesses as the backbone of local economies and which commits to cut the administrative burden of regulation for businesses by 25%; and further recognises that the Employment Rights Bill will bring employment rights legislation into the 21st century, extending the protections that many small businesses already offer their workers to all.” I will start with where I agree with the hon.”
“It will be up to new neighbourhood boards to decide how that is spent over the next decade, but each area will be encouraged to use the funding to build thriving public places.”
“Any economist will tell us that there is always a lag. What we are now seeing are the consequences of the last party’s failures. We are fixing the mess; we are fixing the foundations in order to repair, and I will give examples of that. Growth is our priority for the nation’s high streets, but we also recognise that, historically, the effects of that have not been equally felt. That is why we are giving communities greater control over their areas, so that they can drive the change that they want to see. In September, the Communities Secretary and I set out the Government’s Pride in Place programme and strategy. We will deliver up to £20 million of funding and support across the 244 places that need it the most—places that were neglected by the Conservatives.”
“My hon. Friend is completely right. Through our Pride in Place impact fund, we are providing a cash injection to 95 places across the country. That will be spent by local authorities specifically to drive and improve high streets. That is a direct, tangible action that this Labour Government are taking against those 14 years of decline.”
“We absolutely understand the pressure that businesses are under, but that pressure did not happen overnight; it is the consequence of 14 years in which we have not seen productivity growth and 14 years in which the economy has not grown. We understand the economic reality and we are taking action to respond to it, but, candidly, it is pretty disingenuous for the Conservatives to pretend that the foundations that they left for the economy were not absolutely corrosive and decimated. That is the inheritance that we are building on.”
“My hon. Friend is absolutely right. We know that there is a fundamental link between public services that work and can support people across the economy and how well the economy does. This Labour Government have made the decision that it is right for us to invest in our public services, and right for us to invest in our NHS, because it is good for people, but also good for the economy. We do not resile from that decision.”
“We understand that businesses across all sectors are under pressure. We are working with the tourism sector, because it is absolutely vital to the growth of the wider economy, and with all sectors. This requires a whole set of interventions, whether that is what we are talking about today, in terms of our high streets, the action we are taking to support training and skills for the workforce, or the investment we are putting into the economy. We recognise the pressure, but I come back to the fact that that pressure did not come overnight. If you decimate and under-invest in the economy for 14 years, you end up where we are now. The choice for this Labour Government is that we can now do the job of renewal. It takes time, and we recognise that, but that is a journey that we are determined to go alongside business on.”
“That includes rolling out high street rental auctions, banning unfair upward-only rent review clauses in England and Wales, supporting property owners to establish business improvement districts, reforming the compulsory purchase process and land compensation rules to allow local authorities to shape their high streets, and opening a new co-operative development unit within the Ministry of Housing, Communities and Local Government to help our communities take greater control and ownership of their high streets. The problems in our high streets so often stem from the “we know best” attitude that we saw from the last Government over 14 years, so the answer must be to hand power to communities.”
“I thank my hon. Friend for setting out all the failures and mistakes that we are now having to fix. We are very conscious of that. That is why, through our Pride in Place strategy, for example, we introduced an action plan that was fundamentally about how we build strong communities, create thriving places and allow our communities to take control. As part of that, we are taking new steps to support high streets and town centres.”
“My hon. Friend is completely right. We feel that we are giving places the tools and levers that they need to turn around the legacy of the last Government.”
“What has damaged the high street is 14 years of neglect. The Conservatives pretend that it was thriving for 14 years and that we did not see shops closing down, boarded-up shops and the decimation of our public realm. We will take no advice from them, because they had 14 years to respond, but they categorically failed.”
“I thank my hon. Friend for mentioning that what we are doing is not peripheral—I was so incensed by that that I forgot to mention it. It is fundamental that we respond to the challenges in our high streets. The key point that I want people to take away is that we are acting, whether it is through the pride in place strategy and programme or through the action that we are taking on business rates. The hon. Member for Arundel and South Downs mentioned business rates. From April 2026, eligible retail, hospitality and leisure properties with rateable values below £500,000 will benefit from permanently lower business rate multipliers. That will, critically, level the playing field between online retailers and high streets.”
“The right hon. Lady is absolutely right, and we are densifying. I return, however, to the 14 years for which the Conservatives failed on housing. Do they remember removing housing targets completely? Their carping on at us for making progress on our commitment to deliver 1.5 million homes is for the birds. We are clear that we need thriving high streets, and that requires mixed use and a range of things in our strategy.”
“I hope that when the shadow Minister stands up, he will respond to that question and say whether the Conservative party will return the money. In the end, we need investment in our communities. That is what we are providing, whether it is by reducing business rates or through the work of my Department for Business and Trade colleagues to deliver the backing your business plan, a long-term strategy for supporting small and medium-sized enterprises and the everyday economy. As part of that, family-run businesses on the high street will benefit from new tools to unlock access to finance, action to crack down on late payments—we know that is a massive issue for SMEs—and easier access to the business growth service.”
“I will make progress. Hon. Members have mentioned retail crime. We have scrapped effective immunity for low-value shoplifting, and we are taking action to protect retail workers from assault. Alongside the Employment Rights Bill, which we are proud of, that will make retail a more desirable career choice, improve retention and make recruitment clearer. We are very clear that employment rights are good for workers, but also for businesses and for the economy.”
“That is why we are driving forward our clean power mission, because we are clear that the shift to renewables will drive down bills. Alongside that, we are giving SMEs access to the Energy Ombudsman for the first time, strengthening their ability to renegotiate contracts through blend and extend, and helping businesses to reduce their use in order to reduce energy costs.”
“It is incredibly telling that the hon. Member thinks that regulation consists of things such as protecting our workers, banning exploitative zero-hours contracts and ensuring that workers have sick pay. This is a fundamental part of the social contract. We are trying to ensure that when the economy does well, the everyday person does well, and that requires them to have basic rights and protections. We are very clear about and proud of that. Quite frankly, it is tragic that the Conservatives, who governed for 14 years in which workers were hugely exploited and the economy crashed, cannot see that. Finally, before I make progress, I will reflect on energy bills. We understand that businesses are under pressure from energy bills.”
“That is why our high streets are front and centre of our growth mission, and why we are committed to driving their renewal. I ask everyone in the House to remember the record and the legacy of the Conservatives, who are holding this debate pretending that they really care. For 14 years, our high streets were decimated, shops were boarded up and people in all our communities saw the impact of the Conservatives’ actions.”
“We understand the pressure that businesses are under with energy, but it is driven by our dependence on global fossil fuel markets. We can do sticking-plaster or short-term fixes, or we can deal with the fundamental problem. We are pushing towards clean power, because that is how we ultimately drive down bills. That is not an offer to do so in 10 or 20 years; we are committed to driving down bills in this Parliament, and we will not resile from that. Labour Members agree that our high streets will always be at the heart of our communities, and we welcome the cross-party agreement on that. Unless we grow the economy and put more money in people’s pockets, however, our high streets will never match local people’s ambition.”
“My hon. Friend is completely right—7,000 pubs. Statistic after statistic speaks to the Conservatives’ failure, so rather than being smug and providing fake solutions, they should be far more humble about the state in which they have left our communities. It is now on this Labour Government to fix the mess they left behind.”
“Member for Stratford-on-Avon has highlighted through new clause 52, and we have put in place a suite of things that will fundamentally get to the heart of that problem, which we know all our communities despair of and hate. I ask the hon. Member to withdraw the new clause.”
“Section 215 of the Town and Country Planning Act 1990 sets out powers to clean up land and buildings that may be affecting the amenity of the area and encouraging poor behaviour. The community right to buy will play an important role in ensuring that assets are used in a way that is appropriate and adds value to the community. Finally, through the Crime and Policing Bill, the Government are strengthening the powers available to the police and other agencies to tackle antisocial behaviour. Every police force now has a dedicated antisocial behaviour officer to work with communities to develop an action plan and give residents a say. We recognise the problem that the hon.”
“Member for Stratford-on-Avon to combat antisocial behaviour and eliminate vacant and derelict properties. We all have them in our constituencies; we know how much they are hated and the blight they cast on our communities. We are absolutely committed to creating thriving places and to reversing the decline seen in many of our communities. That is why, through our £5 billion pride in place programme, we are enabling communities to play a role in driving forward. Alongside that funding, we have ensured that local authorities have access to a suite of tools to meet the challenge, which we understand and we know is real. That includes powers to auction the lease of persistently vacant high street properties via our high street rental auctions and compulsory purchase powers, which we have discussed.”
“I take the hon. Member’s point. I also take the point that a process of asset transfer between authorities and town and parish councils is happening. Our judgment is that the provisions we are putting in place sit well alongside that and will enable the processes to happen, but we will keep that under review, because the end goal is to ensure that communities are able to say, “This asset really matters to us, and we want it for the use of the community,” and that we enable them to do that. As we do with any legislation, we will keep this under review ,and if it is not biting in the way that we intend, we will consider how to build and strengthen the provisions. None the less, the intent is very clear. On new clause 52, I commend and share the ambition of the hon.”
“I beg to move amendment 237, in clause 61, page 62, line 20, at end insert— “(8) Subsection (9) applies to any sum received by the Office by way of penalty under— (a) paragraph 2A of Schedule 1B (penalties against external registration body), or (b) arrangements made for the purposes of paragraph 10 of Schedule 1C (penalties against registered local audit provider), including any interest. (9) The Office— (a) must pay the sum to the Secretary of State, but (b) may deduct any costs incurred by it in connection with the imposition or enforcement of the penalty, so far as those costs are not otherwise recoverable.” This amendment makes provision about the destination of penalties enabled by Amendments 238 and 240.”
“However, it is vital that these levers exist to ensure that the local audit system is accountable and responsive, rather than broken, as was expressed very powerfully in our oral evidence session.”
“An external registration body will be required to investigate and impose a sanction for serious breaches committed by audit providers and lead partners. The LAO will supervise any enforcement activity conducted by an external registration body. This could include setting guidelines on indicative sanctions, depending on the type of breaches, and monitoring live cases. The LAO will have the power to reclaim responsibility for any particular enforcement decision if it is considered to be in the public interest. This will ensure that the LAO is the final authority on all quality matters. An improvement-led approach will be central to the LAO’s regulatory work, and we expect that any enforcement action will be considered only as a last resort.”
“These amendments contain provisions relating to criminal offences and enforcement among audit providers, lead partners and external registration bodies. It is vital that the local audit system has the right levers to deter and sanction improper behaviour and to establish beyond dispute the Local Audit Office as the regulatory authority for this system. This is about maintaining stability rather than effecting change. The amendments maintain the existing criminal offences relating to misleading statements and wrongful holding out, and set out oversight powers over professional accountancy bodies similar to existing powers. We will also retain the principle that a professional accountancy body, where recognised as an external registration body, will be responsible by default for enforcement.”
“Whatever the collection processes for these fines, it is right and fair that they ultimately go towards bolstering the system and ensuring that it is improving.”
“I thank the hon. Member for his questions. He raised the question of CIPFA, and I committed to clarifying that in writing. I believe we have done so, but I will make sure that we come back to confirm that. On his very good point about ensuring that the penalties are not gobbled up by the central state, we are moving towards a more centralised system, whereby the LAO reports to the Secretary of State, who is then accountable to Parliament. That is the mechanism through which this will happen. However, the principle is right: if fines are imposed, they will be used to bolster the system, which we know needs huge repairs. We know that over time, as we reform the system, we will need to ensure that we are investing in it.”
“Part 1 establishes the requirements for the board, as proper constitution of the LAO is critical to establishing its authority, ensuring operational readiness and enabling it to deliver its objectives. Part 1 also covers other provisions that are integral to the successful set-up and operating function of the LAO. Part 2 of the schedule allows the Secretary of State to put schemes in place to legally and properly transfer employees who are currently performing functions that the LAO will be responsible for after it is established.”
“It will cover a wide range of public sector bodies responsible for delivering essential services and managing public funds, as well as oversight of aspects of the NHS audit system. The LAO will be instrumental in overhauling the local audit system and will play a crucial role in ensuring that reforms are effectively implemented to provide better value for taxpayers and support economic growth. The LAO will be vital to rebuilding transparency, accountability and public trust in local government, and will restore a crucial part of the early warning system for local authorities. Schedule 28 sets out the core elements of the LAO’s constitution and governance to enable this new organisation to be established.”
“The local audit system is broken. There is consensus about that across the House and within this Committee. It is fragmented and has significant capacity and capability challenges. The problems in local government reporting and the backlog of unaudited accounts have led to the disclaimed opinion on the whole of Government accounts for the past two years. This provides no assurance to Parliament, and puts public accountability and trust in the system at risk. The Government are leading the most transformative programme of audit reform in over a decade. Clause 61 will enable the Local Audit Office, a new statutory and independent body, to be established by autumn 2026. The LAO will have an oversight, regulatory and appointing role in the local audit sector.”
“The LAO will have the power, through contract management and quality oversight, to monitor timeliness in the sector, and will have levers to hold firm account where audits are late. Those statutory reviews will address the accountability gap by providing a way to understand whether individual local bodies have adequately supported the audit process. We believe that those reviews are vital to restoring public accountability, providing assurance at each stage of the audit process and rebuilding our early warning system. They are an integral part of a much bigger reform that we think is both necessary and long overdue. I commend the new clause to the Committee.”
“I am happy to write to clarify that key point. Everything that we are doing through these new clauses and this reform package is in order to ensure that we have a system that is fit for purpose, fair and operates so that we can build trust and accountability within public bodies at the local level. Committee members will appreciate the importance of providing certainty to the people who have worked to maintain the local audit over the years, which is why we are putting in place these two provisions. New clause 9 will provide the Secretary of State with a new power to require the LAO to conduct a review of local bodies’ financial reporting and audit arrangements.”
“We do not think that the new clause will duplicate or undermine that system; it remains a core pillar. However, we hope that the new clause will ensure that we have a national framework that works across the piece, that we are contracting auditors of the highest standards and that local authorities can use the insights from those audits to make sure that they are managing their public accounts effectively. We think it is complementary and supports our existing institutions. At the moment, it feels like the national infrastructure is undermining the efforts at the local authority level.”
“We are trying to ensure that there is a coherent system operating across all of local government. That is the core role that the LAO will play. The system is fragmented at the moment. There are multiple bodies, whether that is the NAO or other bodies, that are in some respects duplicating functions. The consistency and clarity that we need across our local public bodies is therefore not there. The local government accounting system will remain as it is. Through guidance, but also through practice and working with the new LAO, we will try to ensure far better alignment between the functions held by local authorities, whether that is the accounting officer role or the audit committees, and the infrastructure that we are trying to provide at a national level.”
“The Secretary of State will continue to use all the available levers to ensure we have a system and an LAO that is independent when it needs to be and of the highest standard and competence. I hope the hon. Member agrees that there are sufficient safeguards in place and will withdraw the amendment.”
“We do not consider that amending the language from “independently” to “wholly independent” would change that position, although I recognise that it is a small change and I understand the intent behind it. The expectation that the appointed body must possess appropriate expertise is inherent in the function itself and a statutory requirement for expertise would be unnecessarily prescriptive—it is in the practice, the guidance and the strength of the infrastructure and the institution that we are creating. The LAO will remain accountable with the Department, and there will be robust mechanisms to ensure transparency and competence. That is a big priority for us as a Department, given the state of the system that we inherited.”