Lords Recast Devolution: Rural Affairs Added, Local Consent Bolstered

High-Level Summary

The House of Lords took Oral Questions on court readiness for the Renters’ Rights Act, private parking regulation, public transport accessibility, and fiscal policy before turning to Report on the English Devolution and Community Empowerment Bill. Peers agreed government amendments to add “culture” as a strategic competence and later voted to add “rural affairs”, strengthened local consent requirements for creating or altering combined authorities, and required transparency around mayoral commissioner appointments. The Government introduced a new local scrutiny regime for mayoral authorities; proposals to devolve powers further down (e.g. to parish and town councils) and to mandate published explanations for mayoral precept rises were defeated. A Youth Unemployment Statement outlined hiring and apprenticeship bonuses, new short training courses, and an extension of the jobs guarantee, with implementation timetables set out.

Detailed Summary

Renters’ Rights Act: definition of “court readiness”

Baroness Taylor of Stevenage defined court readiness as ensuring “courts and tribunals can operate effectively and maintain swift access to justice under the new tenancy system”. She resisted calls to delay the Act’s implementation: “It certainly would not help tenants to delay implementation of the Act”. She cited Ministry of Justice statistics that the median time from claim to order is 7.3 weeks and from claim to repossession is 27 weeks, with only 28% of 2024 claims requiring bailiff enforcement. On capacity, she said there is “an additional 115 court staff” and refreshed processes and judicial training ahead of the reforms. On rent appeals and tribunal workload, she said data are published and a safeguard enables “the backdating of rent increases” by regulation if the tribunal risks being overwhelmed. She also confirmed work on “a non-judicial alternative body or mechanism to make initial rent determinations”.

Private parking regulation and the Parking (Code of Practice) Act 2019

Ministers intend to lay the private parking code “in autumn 2026” following analysis of over 4,500 consultation responses. Baroness Taylor said the previous code was withdrawn after an industry legal challenge that claimed the charge caps lacked a sufficient impact assessment and robust evidence. A dedicated parking regulator was considered but “dismissed as disproportionate” due to cost, complexity and duplication. On appeals, she said outcomes must be fair and “made independently from the private parking industry”. Related issues included unadopted estate roads (to be addressed in a forthcoming leasehold and commonhold Bill) and managing e‑bike parking, with reference to new local authority powers in legislation debated later that day.

Public transport accessibility

Lord Hendy of Richmond Hill said the Government wants disabled people to travel “safely, confidently and with dignity,” with measures in the Bus Services Act 2025, the Railways Bill and an accessible travel charter. He said more Access for All schemes would be funded in future spending reviews with clearer criteria; confirmed “we paused [floating bus stops]” and will balance the safety of cyclists and bus users, including disabled people; and said a long‑term rolling stock and infrastructure strategy will “embed level boarding in all future train orders,” while older fleets will remain for decades. On taxis and private hire, he said provision must be suitable nationwide and that current legislation is “woefully out of date”.

Reducing Government spending and fiscal outlook

Lord Livermore reiterated the convention against commenting on specific market moves but said that, due to the Government’s plan, “this year the deficit will fall by £20 billion, from 5.2% to 4.3% of GDP—its lowest level for six years”. He argued the inherited welfare system “abandoned too many people to a life on benefits” and said it is being reformed, while rejecting a return to austerity. On gilt issuance, he said the Debt Management Office continues to see “strong demand, with efficient pricing”. Citing the OBR, he said unemployment will peak this year then fall, ending the Parliament lower than at the election.

Sussex and Brighton Combined County Authority Regulations 2026

The House approved the draft regulations: “Motions agreed”.

English Devolution and Community Empowerment Bill – culture competence and tourism

Peers welcomed the Government’s amendment adding culture to the list of strategic competences. Baroness Taylor said this “is a clear signal of this Government’s commitment to the cultural life of our nation”. Clause 41 on promotion of visitors was moved under a new culture heading. She said culture is a broad term and guidance will clarify its scope. A probing amendment to locate tourism under economic development was withdrawn.

English Devolution and Community Empowerment Bill – rural affairs added

Following extensive debate on rural needs, the House voted to add rural affairs as an area of competence: “Ayes 285, Noes 156”. Ministers argued rural issues are already reflected within existing broad competences such as transport, housing and the environment, and cited current initiatives, including rural housing trials in York and North Yorkshire and a “dedicated coastal and rural task force” in the North East.

English Devolution and Community Empowerment Bill – further devolution to parishes proposal defeated

A proposal to permit strategic authorities and constituent councils to devolve powers further down (for example, to parish and town councils) was defeated: “Ayes 80, Noes 166”. Ministers cautioned it could impose “a new level of bureaucracy” due to the number and variability of parish councils, and risk crowding out strategic functions.

English Devolution and Community Empowerment Bill – local consent strengthened for (re)configuring combined authorities

The House agreed to remove provisions enabling the Secretary of State to create or alter combined authorities without explicit local consent, passing Amendment 8 by “Ayes 250, Noes 158,” with consequential amendments following. Asked what a “devolution island” meant, the Minister said the powers could apply “where local areas are putting together their proposals and a small area in between those areas is left out”.

English Devolution and Community Empowerment Bill – mayoral decision‑making

Peers explored whether mayoral combined county authority decisions should require mayoral agreement. The Government said: “Directly elected mayors have a unique democratic mandate,” and requiring their agreement promotes alignment and accountability alongside majority support. No change was made.

English Devolution and Community Empowerment Bill – planning, culture and related reforms

On aligning spatial development strategies with local growth plans, Ministers noted the draft National Planning Policy Framework asks strategies to give “spatial expression to strategic elements of Local Growth Plans”. On the ‘agent of change’ principle to protect cultural venues, they preferred strengthening national policy over legislation, saying it is “clearly enshrined” as a material consideration and will be reinforced in the revised NPPF. Proposals for a statutory chief planner were not accepted; Ministers said further engagement and monitoring are needed before any decision, with draft regulations and guidance to be consulted on shortly.

English Devolution and Community Empowerment Bill – commissioners and scrutiny

Government amendments increased the cap on mayoral commissioners from seven to ten, with safeguards that remuneration must follow an independent panel’s maximum recommendation and that commissioners are subject to enhanced scrutiny. The House also required “a fair and open selection process,” publication of criteria and remuneration, and details of appointments: “Ayes 187, Noes 157”. The Government then introduced new schedules creating enhanced local scrutiny committees for mayoral authorities, with powers including requiring attendance and the ability to “impose a civil penalty” for non‑compliance; these were agreed.

English Devolution and Community Empowerment Bill – allowances, precepts and borrowing

On reporting of member allowances, Ministers said statutory guidance will be issued to balance transparency with administrative burden, rather than mandating quarterly publication. An opposition amendment to require mayors to publish reasons for any precept increase was defeated (“Ayes 70, Noes 132”), with Ministers noting existing council tax billing rules already “must include details of each local authority’s gross expenditure” and council tax requirement. A proposal for annual central reporting on combined authority borrowing was withdrawn; Ministers said authorities operate within the local government “prudential framework”.

Youth Unemployment – Statement (Lords Q&A on a Commons Statement)

Ministers announced incentives including hiring bonuses of “£3,000 per young person” unemployed for six months and “£2,000” bonuses for SMEs hiring young apprentices. They also highlighted “new foundation apprenticeships in retail and hospitality” and short courses in priority skills (e.g. AI, EV charging), and extending the jobs guarantee to ages 22–24, creating “200,000 job and apprenticeship opportunities” with “about £1 billion” new investment, totalling “about £2.5 billion”. Timings include the £3,000 hiring incentive “from June this year” and the SME apprenticeship bonus “from 1 October”. Ministers pointed to job‑matching via jobcentres, “youth hubs in 360 locations,” and cross‑government work on an AI and future of work unit.