Labour’s devolution Bill clears first commons stage amid power grab row

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Labour’s plans for sweeping local government reforms have cleared their first hurdle in the Commons, with Deputy Prime Minister Angela Rayner hailing the measures as the start of a “new era” for Britain. The English Devolution and Community Empowerment Bill, which aims to devolve powers over transport, planning and housing to new unitary authorities, was backed by MPs in a vote of 365 to 164. The Bill would see the current two-tier system of district and county councils replaced with single bodies, in what Ms Rayner described as an end to the “begging bowl, micro-managing culture” that has dominated relations with Whitehall.

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The legislation also proposes a “community right to buy”, giving local groups first refusal on assets such as pubs and shops, as well as banning commercial leases with “upward only” rent clauses in a bid to support small businesses and tackle empty high streets. Regional mayors would be given greater responsibility, including control over planning decisions, e-bike licensing and local economic strategies, with the ability to impose “development orders” to accelerate projects. Ms Rayner argued that the Bill represents the largest transfer of power from central government to local communities in a generation.

Opposition parties, however, voiced concerns over the scope of the reforms. Shadow communities secretary Sir James Cleverly claimed the Bill amounted to a “power grab”, concentrating authority in Whitehall rather than empowering local councils. He suggested that it risked creating “puppet mayors” beholden to central government, while Labour MP Jonathan Brash warned that devolution via metro mayors could end up pushing power further away from neighbourhoods. Liberal Democrat spokeswoman Vikki Slade also criticised the legislation, arguing that it allowed ministers to merge councils without sufficient oversight, threatening local identity and civic pride.

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Supporters countered that the changes are designed to improve accountability and deliver stronger outcomes for residents. Ms Rayner insisted that the reforms would give communities genuine control over decisions that affect their daily lives, while also providing councils with tools to revitalise high streets and attract investment. The Bill will now move to committee stage, where its provisions are expected to undergo detailed scrutiny and debate.

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