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English Devolution and Community Empowerment Bill
Last updated: 12 February 2026 · Analysed: 15 February 2026
This bill establishes a framework for deepening English devolution by creating and empowering strategic authorities (combined authorities and combined county authorities) with enhanced competencies in transport, skills, housing, and public safety. It introduces significant reforms to local government governance, including the establishment of a Local Audit Office to oversee financial reporting, the reintroduction of the supplementary vote system for mayors, and new regulations for business tenancy rent reviews. Additionally, it strengthens community rights regarding assets of community value and standardizes licensing for taxis and micromobility vehicles.
📊 Impact Analysis
Economy
Devolution of skills and transport powers allows for regionally tailored economic strategies, likely boosting local productivity.
By granting strategic authorities control over adult education budgets and local transport plans, the bill enables regions to align infrastructure and skills training directly with local labor market needs, fostering agglomeration effects. Part 5 significantly intervenes in the commercial property market by restricting 'upwards only' rent reviews that do not reflect market value; while this protects tenant businesses from artificial cost inflation, it may temporarily reduce yields and investment attractiveness for commercial landlords.
Government Finances
The bill creates mechanisms for better financial oversight but simultaneously increases the potential for local government debt and taxation.
The establishment of the Local Audit Office (Part 4) addresses a critical systemic failure in local audit markets, potentially preventing costly council bankruptcies in the long run. However, granting mayors enhanced borrowing powers and the ability to levy precepts (Part 1) will likely increase the overall tax burden on local residents and raise public sector debt levels, albeit at a local rather than national level. The reorganization into single-tier authorities involves significant upfront transition costs, though it aims for long-term efficiency savings.
Fairness & Justice
The bill introduces measures to address systemic inequalities and enhances democratic representation through electoral reform.
Section 44 imposes a statutory duty on authorities to reduce health inequalities, forcing consideration of disadvantaged groups in policy-making. The reintroduction of the supplementary vote system for mayors and Police and Crime Commissioners (Schedule 28) ensures elected officials have broader support than under First Past the Post, enhancing democratic legitimacy. Additionally, the strengthened 'community right to buy' (Part 3) empowers local groups to retain assets, promoting equity in community infrastructure ownership.
Liberty & Autonomy
While significantly increasing the autonomy of local government from the center, the bill imposes new regulatory constraints on individuals and businesses.
The bill represents a major shift of power from Westminster to local regions, enhancing local political autonomy. However, it restricts private liberty in specific areas: Part 5 limits freedom of contract in business tenancies by banning certain rent review terms, and Part 3 places moratoriums on property owners wishing to sell assets of community value. Furthermore, new licensing regimes for micromobility vehicles and national minimum standards for taxis introduce stricter regulatory hurdles for operators in those sectors.
Welfare & Quality of Life
Integrated transport systems and a focus on health inequalities are expected to tangibly improve daily living standards.
By consolidating transport powers (similar to the Transport for London model) across more regions, the bill facilitates integrated ticketing and bus franchising, which typically improves service reliability and accessibility for commuters. The specific inclusion of a health improvement duty ensures that strategic authorities must consider the social determinants of health in their planning and housing decisions, likely leading to better long-term public health outcomes.
Environment
The bill explicitly codifies environmental competence and facilitates a modal shift toward sustainable transport.
Section 2 explicitly lists 'the environment and climate change' as a core area of competence for strategic authorities, mandating regional focus on decarbonization. The enhanced powers over local transport, including the ability to regulate micromobility vehicles (e-scooters) and franchise bus networks, provide the necessary tools to reduce reliance on private cars and encourage active travel and public transit usage.