The Bill defines three categories of “strategic authority” (single foundation, combined foundation and mayoral strategic authorities) and establishes a legal framework for the Secretary of State to designate councils and combined bodies into those categories and to transfer or modify functions by regulation or order. It lists seven “areas of competence” — from transport and housing to health, environment and public safety — and creates mechanisms for conferring additional powers and financial arrangements on strategic authorities, including mayoral authority to adopt police and fire functions where conditions are met.
Practically, the Bill remaps who can do what across England: it tightens combined-authority decision rules, creates a route for mayors to appoint commissioners, gives combined bodies new transport, planning and housing tools (including micromobility licensing and key-route network powers), requires an expanded annual devolution report to Parliament, and builds a new Local Audit Office and registration regime for auditors. The changes matter to constituent councils, mayors, private sector operators (transport, property, micromobility), community groups and anyone who manages or funds devolved services because they alter responsibilities, funding levers and legal routes for challenge and oversight.
At a Glance
What It Does
It creates statutory categories of strategic authorities and a menu of devolvable “areas of competence”; gives the Secretary of State powers to designate councils and combined bodies and to confer functions via orders or regulations; and adds sectoral powers (transport, planning, housing, policing, fire and local audit) to combined authorities and mayors with new decision and oversight rules.
Who It Affects
Unitary and county councils eligible for ‘single foundation’ status; existing and prospective combined authorities and combined county authorities (mayoral and non-mayoral); elected mayors (including the GLA); constituent councils; auditors and regulated local audit providers; micromobility and taxi/PHV operators; community groups with interest in assets of community value.
Why It Matters
The Bill materially shifts legal responsibility for major local systems — transport, planning and public safety — from a mix of councils and national bodies into new or expanded sub‑national institutions. That changes financing lines, procurement and regulatory exposure and creates new national routes (Secretary of State orders and regulations) to tailor, protect or remove devolved powers.
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What This Bill Actually Does
The Bill builds a single statutory architecture for devolved government in England by defining three categories of “strategic authority”: single foundation strategic authorities (designated unitary or county councils), combined foundation strategic authorities (non-mayoral combined authorities or combined county authorities), and mayoral strategic authorities (mayoral combined authorities, mayoral combined county authorities and the GLA). It also sets out seven policy “areas of competence” — from transport and housing to health and public safety — that form the scope for conferral of functions.
Designation and the transfer of functions sit with the Secretary of State. The Bill gives the Secretary of State broad powers in Schedule 25 to transfer or modify functions by regulation or order, including the use of pilot schemes.
Designation of single foundation authorities requires consent from the council; designation of mayoral authorities as “established” requires a written proposal from the authority and protections against secondary legislation removing that status. Where functions are transferred, the Bill provides for incidental, consequential and property-transfer schemes so assets, rights and liabilities can move cleanly.For combined authorities and CCAs the Bill standardises governance and decision-making: most decisions are by simple majority of voting members, with mayoral votes required to include the mayor (or deputy acting for the mayor); tied votes are treated as disagreement (no casting vote, except in a few planning contexts).
It inserts detailed rules on substitutes, validity of proceedings and the role of constituent council consent for financial decisions — for example non-mayoral combined authorities need unanimous constituent-council consent to adopt/amend budgets or set certain transport levies, and regulations can set levy mechanics under the Local Government Finance Act.Mayoral powers get a major package: mayors may be designated to exercise police and crime commissioner functions and to be the fire and rescue authority for areas where eligibility and transfer conditions are met; mayors can appoint up to seven commissioners to work on discrete “areas of competence” (subject to limits on delegation and scrutiny by overview and scrutiny committees); and mayors have statutory convening and collaboration powers to request other mayors work together on cross-boundary competence issues. The GLA retains bespoke arrangements but the same templates reappear for mayoral combined authorities.The Bill also tackles sectoral regulation and institutions.
It creates an English micromobility licensing regime (licensing authorities are combined authorities, CCAs, relevant local councils and Transport for London), criminalises unlicensed provision, and allows local standards for taxis/PHVs. It adds powers for combined authorities and CCAs over local transport (including key route network designation and civil enforcement), planning (mayoral planning functions and mayoral development corporations), housing and acquisition/development powers, community infrastructure levy powers, and local growth plans which public bodies must have regard to.
Finally, it establishes a Local Audit Office to replace current arrangements: the Office will run a national local-audit register, designate external registration bodies, appoint auditors where needed, prepare codes and oversee supplier quality — a reorganisation intended to stabilise the market for local-authority audit.
The Five Things You Need to Know
The Bill defines three statutory categories of ‘strategic authority’ and gives the Secretary of State power by regulation or order to designate councils and combined bodies into them.
Mayors can be designated to exercise police and crime commissioner functions and to become fire and rescue authorities where statutory eligibility and transfer conditions are satisfied; transfers require a specified ‘transfer time’ and Secretary of State orders.
A mayor may appoint up to seven commissioners, each limited to one ‘area of competence’; overview and scrutiny committees can recommend removal and combined authorities must adopt remuneration schemes before paying commissioner allowances.
The Bill establishes a Local Audit Office with power to keep a national register of local-audit providers, designate external registration bodies, appoint auditors where bodies fail to appoint, and set codes/fees for local audit.
For transport it creates a micromobility licensing regime (combined authorities, CCAs, relevant local councils and TfL as licensing authorities), criminal penalties for unlicensed provision, and new powers for combined bodies to designate key route network roads and levy constituent councils for transport costs.
Section-by-Section Breakdown
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Definitions, areas of competence and designation powers
The Bill opens by defining “strategic authority” (single foundation, combined foundation, mayoral strategic) and lists seven ‘areas of competence’ that form the menu for devolution: transport & local infrastructure; skills & employment; housing & strategic planning; economic development; environment & climate; health & public service reform; and public safety. It gives the Secretary of State the regulatory route to designate single foundation authorities (with council consent and affirmative SI) and the procedural route for mayoral combined authorities to seek ‘established’ status by written proposal. Practically, that establishes the legal vocabulary and the mechanism by which powers can be moved — designations matter because they trigger downstream conferral and finance provisions in the rest of the Act.
Combined authorities, CCAs and decision‑making
Schedules amend the Local Democracy, Economic Development and Construction Act 2009 and the Levelling‑up and Regeneration Act 2023 to standardise how combined authorities and CCAs are constituted, how functions are conferred, and how decisions are taken. It sets simple‑majority decision rules, defines voting members and substitutes, removes some historical casting‑vote arrangements, and clarifies that a tied vote equals disagreement. There are multiple procedural changes making constituent council consent a gating condition for certain constitutional and financial moves (e.g., budgets, transport levies, boundary changes). For practitioners this section is the rulebook for governance — it constrains how much combined bodies can act without constituent support and central sign‑off.
Mayoral functions, commissioners and cross‑mayor collaboration
The Bill expands the statutory maker’s toolbox: mayors can appoint up to seven commissioners to lead on single areas of competence (each commissioner restricted to one area; key powers — major appointments, certain fire functions — cannot be delegated). The mayor must secure CCA/combined authority consent for delegations and overview & scrutiny committees get explicit powers to recommend termination of commissioner appointments; a two‑thirds non‑mayoral member vote is required to accept such a recommendation. It also introduces formal collaboration requests between adjacent mayors (including London) with publication obligations and reasons if a request is refused — a lightweight statutory pathway for cross‑boundary working without forcing combined authority mergers.
Micromobility licensing, key route network, local transport powers
The Bill creates a micromobility licensing framework (authorities: combined authorities and CCAs, relevant local councils, and TfL for Greater London), criminalises unlicensed provision, enables financial penalties and disclosure requirements, and requires licensing authorities to co‑operate with traffic authorities. It also gives combined bodies powers on key route network designation, route‑level directions (mayoral CAs can direct constituent councils on KRN roads), and makes combined authorities local transport authorities for certain functions. These technical changes reallocate operational traffic and parking powers and create permit/licence obligations for operators — important for transport planners and micro‑mobility businesses.
Mayors as PCCs and fire & rescue authorities
The Bill provides a statutory process for mayors to take on police and crime commissioner (PCC) functions and fire & rescue authority status where eligibility and transfer conditions are satisfied (e.g., area alignment with police areas, specified transfer times). It amends the Police Reform and Social Responsibility Act and Fire and Rescue Services Act to set out transfer mechanics, transitional arrangements, separate PCC budgeting components, and requirements to appoint deputy mayors for policing and crime or deputy mayor for policing and crime roles. For police and fire chiefs, and for local scrutiny bodies, this creates a different accountability line: from an elected PCC to the mayor (with associated budget, precept and scrutiny changes).
Mayoral planning powers, mayoral development corporations and local growth plans
The Bill gives mayors and mayoral CCAs new planning tools: powers over planning applications of strategic importance, national development orders, and to create mayoral development corporations within mayoral areas. It requires mayoral combined authorities to publish local growth plans, and introduces duties on public authorities to have regard to shared local growth priorities. In housing the Bill adds powers for strategic authorities to acquire and develop land, charge CIL and deliver housing accommodation. For developers and landowners this centralises decision‑making and creates new partnership pathways (and consent/consultation requirements) in areas covered by strategic authorities.
Creation of the Local Audit Office and a registered local‑audit market
The Bill overhauls local audit: it creates a Local Audit Office (LAO) with statutory duties to secure audit supply, keep a public register of eligible individuals and firms, appoint auditors where necessary, set a code of audit practice, and designate external registration bodies. The LAO can charge fees, enter the market itself, and set registration and lead‑partner rules. The Act inserts statutory regimes for registration, monitoring, inspection and enforcement of audit providers and lead partners. For finance officers and audit teams this is a market and governance reset — new accreditation, inspection cadence and an enforcement route aimed at preventing audit failures that have plagued the sector.
Community right to buy sporting assets and national minimum standards for taxi/PHV licensing
The Bill strengthens community rights: local authorities must maintain lists of assets of community value and introduce enduring protection for sporting assets of community value; it sets a moratorium and a specialist route for community interest groups to register interest and negotiate purchases. Separately, the Secretary of State may prescribe national minimum standards for taxi and PHV licensing (grant, renewal, suspension, revocation) and the Bill makes the Mayor of London a licensing actor for some functions. The package raises the bar on local licensing consistency and gives communities clearer purchase rights for valued assets.
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Explore Government in Codify Search →Who Benefits and Who Bears the Cost
Every bill creates winners and losers. Here's who stands to gain and who bears the cost.
Who Benefits
- Mayors and established combined authorities — gain new statutory powers and clearer routes to exercise transport, planning, housing, policing and fire functions and to convene cross‑boundary collaboration, enlarging local strategic levers.
- Residents in devolved areas — where functions transfer locally there is potential for more integrated place‑based strategy (transport, housing, skills and health) and faster local decision‑making tied to a single accountable mayor or authority.
- Community interest groups and sports clubs — receive stronger protections (permanent listing for sporting assets of community value), structured moratoriums and a statutory buy‑back process that can keep valued facilities in community use.
- Local audit market entrants and accredited firms — the new Local Audit Office and registration regime creates a clear pathway to become a registered local audit provider and to compete for public sector work under standardized rules.
- Transport planners and regional economic leads — new powers over micromobility, key route networks, local transport authority functions and local growth plans create tools for network and economic strategy at combined‑authority scale.
Who Bears the Cost
- Constituent councils — face new consent burdens, potential levies (combined authorities can issue levies on councils for transport costs) and may shoulder transitional and operational costs when powers move out of or into council responsibilities.
- Central government / Treasury — will have to resource the Local Audit Office establishment and may fund transfers, pilots and consequential property or liability transfers; many delegated conferrals come with unfunded implementation risk.
- Micromobility and taxi/PHV operators — must comply with a new licensing layer (local licensing areas, national minimum standards) and face criminal and financial penalties for non‑compliance.
- Audit firms and market incumbents — must adapt to registration, inspection and lead‑partner rules and may face sanctions or exclusion if they fail new independence, insurance and quality requirements.
- Mayoral administrations and combined authorities — take on complex statutory responsibilities (policing, fire, local transport) that require new organisational capability, insurance, and funding models; commissioners and remuneration obligations add recurring budget implications.
Key Issues
The Core Tension
The central dilemma is between subsidiarity and control: the Bill hands substantial functional power to sub‑national actors (mayors, combined authorities, newly designated councils) to improve local delivery, but preserves strong central levers — designation, affirmative SI traps, and statutory limits — to ensure uniformity and manage national risks. Effective devolution requires trusting local institutions with complex functions and funding; centralising the power to confer and take back functions preserves national standards but risks undercutting the autonomy the Bill seeks to create.
The Bill is a deliberately broad, modular construction: it defines categories, creates a large delegate box for the Secretary of State (Schedule 25) and then layers bespoke transfers and powers across many statute books. That design brings two practical tensions.
First, the Bill centralises the technical route for change in Westminster (designation and conferral by order/regulation) while simultaneously promising localism by enabling councils and mayors to exercise new functions. The interplay between local consent rules (constituent councils required for budgets, levies and some orders) and the Secretary of State’s power to make subordinate legislation creates potential legal complexity and political contest whenever a transfer is proposed.
Second, many provisions rest on secondary instruments and guidance — from pilot schemes to the vexed areas of public‑service finance, auditing standards and micromobility licensing. Key operational details (fee schedules, registration criteria for auditors, the precise scope of permitted delegation to commissioners, and the financial mechanics of levies and grants) are deferred to subordinate instruments.
That raises execution questions: who pays for capability uplift in combined authorities that assume PCC or fire functions? How will the Local Audit Office balance market stewardship with setting fees that allow audit to be affordable to smaller authorities?
The Bill supplies the shells and many of the hooks; successful implementation depends on the yet‑to‑be‑drafted SIs, funding allocations and administrative guidance.
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