Date: 3 September 2025
On 2 September, MPs debated the Second Reading of the English Devolution and Community Empowerment Bill in the House of Commons. Deputy Prime Minister Angela Rayner described it as the “biggest transfer of power from Whitehall to our regions and communities in a generation” (Hansard, 2 Sept 2025).
Presenting the Government’s case, Deputy Prime Minister, Angela Rayner MP said the Bill would “rewire Britain” by devolving powers to local leaders and rebuilding faith that government can work for people. It creates new strategic authorities with expanded powers in planning, housing, regeneration, transport and economic development. It also introduces new duties on mayors, such as preparing growth plans and managing investment partnerships, reforms mayoral election rules, strengthens local audit and governance, and requires councils to ensure effective neighbourhood governance. In addition, the Bill includes measures to support high streets, including a ban on upwards-only rent reviews and the creation of a new community right to buy.
The Opposition, led by Sir James Cleverly, described the Bill as a “Whitehall power grab.” He argued that it reduces representation, imposes restructuring without consent, and increases costs through new mayoral precepts and debts. He also warned of weak accountability and a lack of consultation on the proposed high street measures. Other issues were also raised during the debate. MPs pointed to the risk of over-politicisation in new neighbourhood structures and called for rent control pilots and stronger protection for private renters. Concerns were expressed about fairness in how councils distribute funding within boroughs, while both Government and Opposition members cited examples of devolved success stories to support their arguments.
In the end, and as expected the Bill passed its Second Reading by 365 votes to 164. It now moves to Public Bill Committee, with scrutiny due to conclude by 12 November 2025.
The Institute of Place Management welcomes the ambition to devolve power closer to communities. Clause 58 places a new duty on every local authority to secure effective neighbourhood governance. Many town councils, community groups and local organisations already do excellent work, often with limited resources. But the challenge now is to raise standards in managing places consistently across the country. That is where the discipline of place management is key.
Over recent months, IPM members and Fellows have been actively debating what Clause 58 will mean in practice through our events, roundtables and blogs. These conversations point to a clear conclusion: neighbourhood governance can only succeed if supported by place management frameworks that combine clear accountabilities, effective partnerships, skilled leadership - and crucially, the right funding are all in place. The Government’s recent Backing Your Business report reinforced this point, acknowledging that the lack of place management capacity and expertise within councils can be a major barrier to local renewal.
Place management means building effective governance by bringing councils, businesses, civic groups and residents together in accountable partnerships, and it requires securing long-term sustainability through investment in climate resilience, culture and skills. These aims cannot be achieved without properly funded and professionalised capacity. That means transitional government support - similar to the Neighbourhood Planning model - alongside accredited training, CPD and apprenticeships to grow the workforce of place managers needed by 2028. Clause 58 provides an opportunity to embed these foundations into local systems. But without skills, funding and a clear professional framework, devolution risks granting powers without the skills and capacity to make use them.
Please get in touch with ipm@mmu.ac.uk if you would like to continue to be involved in our discussion on this issue.