English Devolution and Community Empowerment Act 2026

(6G) (1) This section applies in relation to a relevant authority other than a health service body. (2) The Local Audit Office must, in relation to each financial year— (a) decide that it is to audit the accounts of the authority, or (b) appoint a registered local audit provider to audit those accounts. (3) A decision under subsection (2)(a) is to be treated for the purposes of this Act as the appointment of the Office as a local auditor under this section. (4) In the following provisions of this Part, references to an appointment are to an appointment under this section. (6H) (1) A single appointment may be made for multiple financial years. (2) An appointment must be made before the beginning of the financial year (or the first of the financial years) to which it relates. (3) The appointment of a registered local audit provider is to be on terms agreed in writing between the Local Audit Office and the provider. (4) Two or more local auditors may be appointed— (a) to act jointly in relation to some or all parts of the accounts; (b) to act separately in relation to different parts of the accounts; (c) to carry out different functions in relation to the audit. (5) If, as a result of an appointment made in accordance with subsection (4), a function under this Act may be exercised by two or more local auditors— (a) it may be exercised by both or all of them acting jointly or by such one or more of them as they may determine, and (b) references (however expressed) to the local auditor by whom the function is or has been exercised are to the auditors by whom it is or has been exercised. (6) The Local Audit Office must not appoint a person whom it has reason to think will be unable to act because of section 32B (independence requirement). (6I) (1) Before making an appointment, the Local Audit Office must inform the relevant authority of the person it proposes to appoint and give the authority a reasonable opportunity to make representations. (2) As soon as practicable after making an appointment, the Office must send to the relevant authority concerned a notice that— (a) states that it has made the appointment, (b) identifies the local auditor that has been appointed, and (c) specifies the financial year or years for which the local auditor has been appointed. (3) A relevant authority must publish a notice under subsection (2) within the period of 28 days beginning with the day on which it receives it. (4) The notice must be published— (a) if the relevant authority has a website, on its website; (b) otherwise, in such manner as the relevant authority thinks is likely to bring the notice to the attention of persons who live in its area. (6J) (1) If the Local Audit Office is appointed, it may resign from the appointment by giving written notice to the relevant authority concerned. (2) If a registered local audit provider is appointed, the terms of the appointment must include— (a) provision for the resignation of the provider, and (b) provision for the removal of the provider by the Local Audit Office. (3) If the appointed local auditor resigns or is removed, section 6G(2) applies again in relation to the relevant authority concerned. (4) But if the timing of the resignation or removal makes it impracticable for section 6H(2) to be complied with, the new appointment must instead be made as soon as practicable. (6K) (1) The Local Audit Office must charge a relevant authority a fee in respect of the carrying out of an audit by a local auditor appointed by the Office. (2) The amount of the fee may be revised (even after it has been paid or the audit concerned has been completed). (3) The payment terms are to be determined by the Office and notified in writing to the relevant authority. (4) The Office must publish a table of indicative fees, from which each relevant authority (other than a health service body) can, in respect of each financial year, ascertain the amount the Office would ordinarily expect to charge it for that year. (5) The Office must give reasons if it— (a) revises a fee upwards, or (b) charges a relevant authority a higher amount than that indicated in the table of indicative fees.

Audit providers to nominate lead partner

92

In the Local Audit and Accountability Act 2014, before section 20 insert—

(19A) (1) Subsections (2) and (3) apply where a firm is appointed as a local auditor. (2) The firm must ensure that— (a) an individual working for the firm acts as the lead partner for the audit in question, and (b) the name of that individual is known to— (i) the Local Audit Office, and (ii) the relevant authority whose accounts are being audited. (3) The individual must appear in a list kept in relation to the firm in accordance with paragraph 6 of Schedule 1C (list of eligible lead partners in firm’s register entry). (4) Subsections (5) and (6) apply where the Local Audit Office is appointed as a local auditor. (5) The Office must ensure that— (a) an individual working for the Office acts as the lead partner for the audit in question, and (b) the name of that individual is known to the relevant authority whose accounts are being audited. (6) The individual must appear in a public list kept by the Office of individuals who may act as the lead partner for an audit carried out by the Office. (7) The Office must make arrangements designed to secure that an individual appears in its list only if the individual would be able to appear in a list kept in relation to a firm in accordance with paragraph 6 of Schedule 1C. (8) For the purposes of this Act, an individual acts as the lead partner for an audit if the individual is primarily responsible for the local auditor’s decisions as to— (a) the opinion to be given under section 20(2)(b) or 21(5)(a), (b) the making of any public interest report or recommendation, and (c) the issuing of any advisory notice.

Code of audit practice

93

• (1) In the Local Audit and Accountability Act 2014, paragraph 1 of Schedule 6 (preparation of code of audit practice) is amended as follows.

• (2) For sub-paragraph (1) substitute—

(1) The Local Audit Office must prepare one or more codes of audit practice. (1A) A code— (a) must prescribe the auditing standards that are to be applied in the carrying out of audits under this Act, and (b) may impose other requirements as to the way in which local auditors carry out their functions under this Act.

• (3) In sub-paragraph (2), for “Comptroller and Auditor General” substitute “Office”.

• (4) For sub-paragraph (4) substitute—

(4) A code may prescribe auditing standards or impose other requirements by— (a) setting out, or referring to, standards or requirements formulated by the Office, or (b) adopting, with or without modification, standards or requirements formulated by another body; and any reference in a code to a standard or requirement set out elsewhere may be to that standard or requirement as amended or replaced in the future.

• (5) For sub-paragraph (5) substitute—

(5) Before preparing a code, the Office must consult— (a) the Comptroller and Auditor General, (b) such associations or representatives of relevant authorities as the Office considers appropriate, (c) registered local audit providers, (d) the Secretary of State, (e) the Treasury, (f) any external registration body, and (g) such other persons as the Office considers appropriate.

• (6) A code that has effect as a code of audit practice under the Local Audit and Accountability Act 2014 when this section comes into force continues to have effect until (and except so far as) superseded by a code of audit practice prepared in accordance with Schedule 6 to that Act as amended by this Act.

• (7) Guidance that has effect under paragraph 9 of Schedule 6 to that Act when this section comes into force continues to have effect until (and except so far as)—

• (a) superseded by guidance prepared in accordance with that paragraph as amended by this Act, or

• (b) revoked by the Office.

Audit committees

94

In the Local Audit and Accountability Act 2014, before section 34 insert—

(33A) (1) A relevant authority other than a health service body must— (a) have an audit committee, and (b) arrange for its audit committee to exercise the functions set out in subsection (3). (2) The audit committee is to be— (a) in the case of a relevant authority that has a general power under an enactment to appoint committees, a committee of the authority designated by the authority as its audit committee, or (b) in any other case, a group of individuals appointed by the relevant authority. (3) The functions referred to in subsection (1)(b) are— (a) reviewing and scrutinising the authority’s financial affairs, (b) reviewing and assessing the authority’s risk management, internal control and governance arrangements, (c) reviewing and assessing the economy, efficiency and effectiveness with which resources have been used in discharging the authority’s functions, and (d) making reports and recommendations to the authority in relation to reviews conducted under paragraphs (a), (b) and (c). (4) The Secretary of State may by regulations provide for an enactment that applies in relation to a relevant authority, or a committee of a relevant authority, to apply, with or without modification, in relation to a group of individuals appointed under subsection (2)(b). (5) The Secretary of State may by regulations make provision about— (a) the membership of an audit committee; (b) the appointment of the members; (c) payment to the members of allowances, expenses, gratuities or pensions. (6) Provision must be made under subsection (5) so as to ensure that at least one member of an audit committee is an independent person, as defined by the regulations. (7) Regulations under subsection (5)(c) may, in particular, make provision applying provision made, or corresponding to any provision that could be made, under section 18 of the Local Government and Housing Act 1989 or section 100 of the Local Government Act 2000. (8) Subsection (5)(c) does not affect the application of the enactments referred to in subsection (7), or provision made under them, in relation to members of an audit committee. (9) In the case of a relevant authority within subsection (2)(a), the powers of the authority in relation to its committees are to be taken to include (so far as they would otherwise not)— (a) the powers necessary to give effect to regulations under subsection (5), and (b) the power to appoint to its audit committee persons who are not members of the authority (even where not required by regulations under subsection (5)). (10) A relevant authority must have regard to any guidance issued by the Secretary of State in relation to audit committees. (11) References in this section to a committee of a relevant authority include a sub-committee of such a committee.

Review of audit and reporting arrangements at Secretary of State’s request

95

In the Local Audit and Accountability Act 2014, after section 33A (inserted by section 94) insert—

(33B) (1) If requested to do so by the Secretary of State, the Local Audit Office must— (a) carry out a review of a relevant authority’s audit and reporting arrangements, and (b) report the findings of the review to the authority and the Secretary of State. (2) An authority’s “audit and reporting arrangements” are the arrangements it has (or recently had) in place for the purposes of— (a) enabling it to discharge its functions under this Act, or (b) enabling a local auditor to discharge its functions in relation to the authority. (3) A request by the Secretary of State under this section— (a) may require or permit the review to be limited to certain aspects of the authority’s audit and reporting arrangements; (b) must specify the time by which the Office is to submit its report; (c) may be varied or withdrawn by notice to the Office. (4) Section 22 (right to documents and information) applies in relation to the Office and its functions under this section as it applies in relation to a local auditor and its functions under this Act. (5) But section 23 (offences of obstruction and non-compliance) does not apply in relation to section 22 as applied by subsection (4) (“the applied section 22”). (6) If the High Court is satisfied, on an application by the Office, that any person has— (a) obstructed the exercise of any power conferred by the applied section 22, or (b) failed to comply with any requirement of the applied section 22, it may order the person to take such steps as it considers will remedy the obstruction or non-compliance. (7) The Secretary of State must publish a summary of any findings reported under this section.

Smaller authorities: change of terminology

96

• (1) In sections 5 and 6 of the Local Audit and Accountability Act 2014 (smaller authorities), for “smaller”, in each place it occurs except section 5(6)(b), substitute “category 2”.

• (2) In any regulations, guidance or other instrument made or issued under that Act before this section comes into force, any reference to a smaller authority is to be read, in relation to matters arising after this section comes into force, as a reference to a category 2 authority.

Power to provide for smaller authority treatment in previous years where audit outstanding

97

• (1) The Secretary of State may by regulations make provision applying in a case set out in subsection (2) and having the effect set out in subsection (3).

• (2) The case is one in which an audit has not been completed in relation to the accounts of a relevant authority other than a smaller authority for any of the following financial years—

• (a) that ending with 31 March 2023,

• (b) that ending with 31 March 2024, and

• (c) that ending with 31 March 2025.

• (3) The effect is that of enabling an audit to be carried out or completed, or anything in relation to the audit to be done, as if the relevant authority had been a smaller authority for the financial year or years in question.

• (4) Subsections (2) and (3) are to be read as if they were contained in the Local Audit and Accountability Act 2014 (as it has or had effect in relation to the financial years concerned).

• (5) Regulations under this section may modify any time limit (whether or not it has already been reached).

• (6) Regulations under this section are subject to negative resolution procedure.

Amendment paving way for separation of LGPS accounts

98

In section 20 of the Local Audit and Accountability Act 2014 (general duties of auditors), for subsection (3) substitute—

(3) If a statement of accounts prepared by a relevant authority under this Act includes both— (a) accounts of a pension fund maintained by the authority under regulations under section 1 of the Public Service Pensions Act 2013 as they relate to local government workers (within the meaning of that Act), and (b) other accounts of the authority, the authority’s local auditor must give a separate opinion on the part of the statement that relates to the accounts of the pension fund.

Minor and consequential amendments

99

Schedule 36 makes further amendments in connection with local audit.

Part 5 — Business tenancies: rent reviews and arrangements for new tenancies

Rent reviews and arrangements for new tenancies

100

• (1) After section 54 of the Landlord and Tenant Act 1954 insert—

(54A) (1) Schedule 7A makes provision about rent reviews. (2) Schedule 7B makes provision about terms relating to rent in arrangements which require a new tenancy to be granted or taken.

• (2) Schedule 37 inserts the new Schedules 7A and 7B into the Landlord and Tenant Act 1954 and otherwise amends that Act.

Part 6 — Final provisions

Interpretation

101

• (1) In this Act—

• “area of competence” has the meaning given in section 2;

• “category of strategic authorities” means each of the following— the single foundation strategic authorities; the combined foundation strategic authorities; the mayoral strategic authorities except the established mayoral strategic authorities; the established mayoral strategic authorities;

• “CCA” means a combined county authority established under section 9(1) of LURA 2023;

• “combined authority” means a combined authority established under section 103 of LDEDCA 2009;

• “county council” means a county council in England;

• “established”, in relation to a mayoral strategic authority, has the meaning given in section 1;

• “foundation strategic authority” means— a single foundation strategic authority, or a combined foundation strategic authority;

• “FRSA 2004” means the Fire and Rescue Services Act 2004;

• “GLA” means the Greater London Authority;

• “GLA functional body” means a functional body within the meaning of the GLAA 1999 (see section 424 of that Act);

• “GLAA 1999” means the Greater London Authority Act 1999;

• “LDEDCA 2009” means the Local Democracy, Economic Development and Construction Act 2009;

• “legislation” means— an Act of Parliament, or secondary legislation;

• “LGA 1972” means the Local Government Act 1972;

• “LGA 1985” means the Local Government Act 1985;

• “LGA 2000” means the Local Government Act 2000;

• “LGFA 1988” means the Local Government Finance Act 1988;

• “LGPIHA 2007” means the Local Government and Public Involvement in Health Act 2007;

• “LURA 2023” means the Levelling-up and Regeneration Act 2023;

• “mayor for an EMSA” means— the mayor for the area of a mayoral combined authority, or mayoral CCA, that is an established mayoral strategic authority, or the Mayor of London;

• “mayoral CCA” or “mayoral combined county authority” means a CCA for an area for which provision is made in regulations under section 27(1) of the Levelling-up and Regeneration Act 2023 for there to be a mayor;

• “mayoral combined authority” means a combined authority for an area for which provision is made in an order under section 107A of LDEDCA 2009 for there to be a mayor;

• “mayoral strategic authority” has the meaning given in section 1;

• “Minister of the Crown” has the same meaning as in the Ministers of the Crown Act 1975;

• “non-mayoral CCA” or “non-mayoral combined county authority” means a CCA which is not a mayoral CCA;

• “non-mayoral combined authority” means a combined authority which is not a mayoral combined authority;

• “PRSRA 2011” means the Police Reform and Social Responsibility Act 2011;

• “secondary legislation” means any instrument under an Act of Parliament;

• “strategic authority”, in relation to a mayoral strategic authority, has the meaning given in section 1;

• “unitary district council” means a district council (in England) whose area does not form part of the area of a county council.

Saving of orders and regulations relating to combined authorities and CCAs

102

• (1) This section applies to any provision of any subordinate legislation made under—

• (a) Part 6 of LDEDCA 2009, or

• (b) Chapter 1 of Part 2 of LURA 2023,

before this section comes into force (the “subordinate legislation”).

• (2) The provision made by Part 1 or 2 of this Act (the “primary legislation”) does not impliedly amend, modify or revoke the subordinate legislation.

• (3) Accordingly—

• (a) the primary legislation does not affect any contrary subordinate legislation; and

• (b) the primary legislation has effect subject to the contrary subordinate legislation.

• (4) For that purpose “contrary subordinate legislation” means any of the subordinate legislation that—

• (a) makes provision which is to continue to apply instead of the primary legislation by virtue of subsection (2), or

• (b) makes modifications or other contrary provision to which the primary legislation is to continue to be subject by virtue of subsection (2).

• (5) For provision about the relationship between—

• (a) the powers under which the subordinate legislation is made, and

• (b) the primary legislation,

see section 104CC of LDEDCA 2009 or section 24C of LURA 2023 (inserted by section 7 of this Act).

• (6) This section does not prevent the exercise of the power conferred by section 103 to make amendments, modifications or revocations of the subordinate legislation that are consequential on the primary legislation.

• (7) A reference in this section to the provision made by Part 1 or 2 of this Act includes any legislation as amended by that provision.

Power to make consequential provision

103

• (1) The Secretary of State may by regulations make provision that is consequential on this Act.

• (2) Regulations under this section may amend or repeal provision made by an Act of Parliament passed before, or in the same Session as, this Act.

• (3) Regulations under this section which amend or repeal provision made by an Act of Parliament (whether or not they also contain other provision) are subject to affirmative resolution procedure.

• (4) Any other regulations under this section are subject to negative resolution procedure.

Certain orders and regulations provided for by Parts 1 and 2

104

• (1) Section 117 of LDEDCA 2009 (orders and regulations) is amended in accordance with subsections (2) to (5).

• (2) In subsection (2) for “An order to which subsection (2A) applies” substitute “Subject to subsections (2A) and (3), an order under this Part”.

• (3) In subsection (2A)—

• (a) for “This subsection applies to an order under this Part other than—” substitute “Subsection (2) does not apply to—”;

• (b) before paragraph (a) insert—

(za) an order under section 107FA,

• (c) in paragraph (b), omit the second “or”;

• (d) after paragraph (b) insert—

(ba) an order under section 113E,

• (e) at the end of paragraph (c) insert

, or” (d) an order under Schedule 5BA.

• (4) In subsection (3A), after “107K(1)” insert “or Schedule 5AA”.

• (5) In subsection (5), for “(2A)(a) or (b)” substitute “(2A)(za) to (ba) or (2A)(d)”.

• (6) Section 252 of LURA 2023 (regulations) is amended in accordance with subsections (7) to (9).

• (7) In subsection (2)—

• (a) for “(8)(a)” substitute “(8)(aa)”;

• (b) before “, includes” insert “or (8)(l), or regulations under Schedule 1A”.

• (8) In subsection (5)(a)—

• (a) after “subsection” insert “(8)(ac) or”;

• (b) after “(c)” insert “or (8)(l)”.

• (9) In subsection (8), before paragraph (a) insert—

(ac) under section 33A;

Regulations

105

• (1) Regulations under this Act are to be made by statutory instrument.

• (2) Any power to make regulations under this Act includes power to make—

• (a) different provision for different purposes;

• (b) incidental, supplementary or consequential provision;

• (c) transitional or saving provision.

• (3) Where this Act provides that regulations are “subject to affirmative resolution procedure”, a statutory instrument containing the regulations may not be made unless a draft of it has been laid before, and approved by, each House of Parliament.

• (4) Where this Act provides that regulations are “subject to negative resolution procedure”, a statutory instrument containing the regulations is subject to annulment in pursuance of a resolution of either House of Parliament.

• (5) Any provision that may be made by regulations under this Act that are subject to negative procedure may be made by regulations that are subject to affirmative procedure.

• (6) If a draft of a statutory instrument containing regulations under this Act would, apart from this subsection, be treated for the purposes of the standing orders of either House of Parliament as a hybrid instrument, it is to proceed in that House as if it were not a hybrid instrument.

• (7) This section does not apply to regulations under section 108.

Financial provision

106

There is to be paid out of money provided by Parliament—

• (a) any expenditure incurred under or by virtue of the Act by the Secretary of State, and

• (b) any increase attributable to the Act in the sums payable under or by virtue of any other Act out of money so provided.

Extent

107

• (1) This Act extends to England and Wales only.

• (2) That is subject to the following provisions of this section.

• (3) Any amendment or repeal has the same extent as the provision amended or repealed.

• (4) But section 24 and Schedule 7 extend to England and Wales only.

Commencement

108

• (1) On the day on which this Act is passed—

• (a) this Part comes into force;

• (b) the provisions referred to in subsection (3) come into force;

• (c) any other provision of this Act comes into force (including provision modifying other legislation) so far as it confers power to make secondary legislation or is otherwise necessary for enabling the exercise of such a power on or after the day on which this Act is passed.

• (2) But none of the following provisions comes into force in accordance with subsection (1)(c)—

• (a) section 11 (and Schedules 4 and 5) (mayoral combined authorities & CCAs: overview and scrutiny committees);

• (b) section 26 (and Schedule 9) (charges payable by undertakers executing works in maintainable highways);

• (c) Chapter 6 of Part 3 (licensing of taxis and private hire vehicles);

• (3) The provisions that come into force in accordance with subsection (1)(b) are—

• (a) section 1 (strategic authorities);

• (b) section 2 (areas of competence);

• (c) section 4 (and Schedule 1) (combined authorities and CCAs: establishment, expansion and functions), apart from paragraphs 18 and 39 of Schedule 1 and any provision of that Schedule so far as relating to any of those paragraphs;

• (d) section 5 (combined authorities and CCAs: functions generally);

• (e) section 6 (and Schedule 2) (combined authorities and CCAs: decision-making and validity of proceedings);

• (f) section 7 (combined authorities and CCAs: powers not limited by other provision or powers);

• (g) section 9 (and Schedule 3) (appointment of commissioners by mayors);

• (h) section 14 (levies);

• (i) section 15 (combined authorities and CCAs: minor amendments);

• (j) section 18 (functions of mayors of combined authorities or CCAs);

• (k) section 19 (the “general functions” of mayors);

• (l) section 21 (and Schedule 6) (extension of general power of competence to strategic authorities) so far as they relate to mayoral combined authorities and mayoral CCAs;

• (m) section 25 (and Schedule 8) (arrangements to carry out works on highways);

• (n) section 27 (and Schedule 10) (civil enforcement of traffic contraventions);

• (o) section 29 (and Schedule 11) (key route network roads);

• (p) section 30 (constituent councils to act in accordance with local transport plans etc);

• (q) section 31 (and Schedule 12) (local transport authorities and other transport functions);

• (r) section 32 (and Schedule 13) (education);

• (s) section 36 (and Schedule 18) (acquisition and development of land);

• (t) section 37 (and Schedule 19) (housing accommodation);

• (u) section 38 (and Schedule 20) (mayoral development corporations);

• (v) section 40 (and Schedule 21) (assessment of economic conditions);

• (w) section 42 (Local Government Act 2003: expenditure grant);

• (x) section 44 (and Schedule 23) (miscellaneous local authority functions);

• (y) section 45 (health improvement and health inequalities duty);

• (z) section 50 (sharing of information);

• (z1) section 52 (encouragement of visitors and promotion of visitors).

• (4) The provisions of this Act come into force in accordance with subsection (5) or (6) (if, or to the extent that, they do not come into force in accordance with subsection (1)).

• (5) The following provisions come into force at the end of the period of two months beginning with the day on which this Act is passed—

• (a) section 3 (single foundation strategic authorities);

• (b) section 8 (combined authorities and CCAs: designation as established mayoral strategic authorities);

• (c) section 10 (combined authorities and CCAs: allowances for members with special responsibilities);

• (d) section 13 (power to borrow);

• (e) section 16 (additional functions of the GLA);

• (f) section 17 (members of legislatures disqualified for being a mayor of strategic authority);

• (g) section 20 (report under section 1 of the Cities and Local Government Devolution Act 2016);

• (h) section 21 (and Schedule 6) (extension of general power of competence to strategic authorities), except so far as they relate to mayoral combined authorities and mayoral CCAs;

• (i) section 22 (power of mayors to convene meetings with local partners);

• (j) section 23 (duty of mayors to collaborate);

• (k) section 28 (restrictions on disposal of land by Transport for London);

• (l) section 41 (and Schedule 22) (local growth plans);

• (m) section 46 (functions of police and crime commissioners);

• (n) section 47 (and Schedule 24) (PCCs and police areas);

• (o) section 48 (and Schedule 25) (functions of fire and rescue authorities);

• (p) section 49 (mayor with PCC and fire and rescue functions);

• (q) section 51 (and Schedule 26) (licensing functions of the GLA and the Mayor of London);

• (r) section 53 (requests by mayors of EMSAs for changes);

• (s) section 54 (and Schedule 27) (regulations relating to functions of strategic authorities and mayors);

• (t) section 55 (health service functions: application of existing limitations on devolution);

• (u) section 56 (incidental etc provision);

• (v) section 57 (transfer of property, rights and liabilities);

• (w) section 58 (prohibition of secondary legislation removing functions);

• (x) section 59 (and Schedule 28) (single tiers of local government);

• (y) section 60 (certain functions of shadow authorities for single tiers of local government);

• (z) section 61 (and Schedule 29) (local authority governance and executives);

• (z1) section 64 (limit on delay of election in connection with local government reorganisation);

• (z2) section 65 (publication of addresses of members etc in authority registers);

• (z3) section 88 (and Schedule 33) (extension of general power of competence to English National Park authorities and the Broads Authority).

• (6) This Act comes into force on such day or days as the Secretary of State may by regulations appoint (if, and to the extent that, it does not come into force in accordance with subsection (1) or (5)).

• (7) Any reference in this Act to the coming into force of a provision is to its coming into force other than for the purpose of making secondary legislation.

• (8) A power under this section to appoint a day may be exercised to appoint different days for different purposes or areas.

• (9) The Secretary of State may, by regulations, make transitional or saving provision in connection with the coming into force of any provision of this Act.

• (10) The power to make regulations under this section includes power to make different provision for different purposes or areas.

• (11) Regulations under this section are to be made by statutory instrument.

Short title

109

This Act may be cited as the English Devolution and Community Empowerment Act 2026.

Schedule 1 — Establishment, expansion and functions of combined authorities and CCAs

Part 1 — Combined authorities

1

LDEDCA 2009 is amended as follows.

2

In section 104 (constitution and functions: transport)—

• (a) in subsection (10)—

• (i) in the opening words, for “section 107ZA(7)” substitute “subsections (10A), (11B) and (12)”;

• (ii) in the opening words, for “a combined authority” substitute “an existing combined authority”;

• (iii) in paragraph (b), omit “in the case of an order in relation to an existing combined authority,”;

• (b) after subsection (10) insert—

(10A) Subsection (10) does not apply where a proposal for the making of the order has been submitted to the Secretary of State in accordance with section 112A (proposal for changes to existing combined arrangements - locally led).

• (c) in subsection (11), for the opening words substitute “In this Part “constituent council”, in relation to a combined authority, means—”;

• (d) omit subsection (11A).

3

In section 104A (non-constituent members of a combined authority), omit subsection (7).

4

In section 105 (constitution and functions: local authority functions generally)—

• (a) in subsection (3A)—

• (i) in the opening words, for “a combined authority” substitute “an existing combined authority”;

• (ii) in paragraph (a), omit “(as defined by section 104(11))”;

• (iii) in paragraph (b), omit “in the case of an order in relation to an existing combined authority,”;

• (b) after subsection (3A) insert—

(3AA) Subsection (3A) does not apply where a proposal for the making of the order has been submitted to the Secretary of State in accordance with section 112A (proposal for changes to existing combined arrangements - locally led).

• (c) in subsection (3B), after “is” insert “also”.

5

In section 105B (section 105A orders: procedure)—

• (a) for subsection (1) substitute—

(1) The Secretary of State may make an order under section 105A in relation to an existing combined authority’s area only if— (a) a proposal for the making of the order in relation to the combined authority has been submitted to the Secretary of State in accordance with section 112A, or (b) the appropriate consent is given.

• (b) for subsection (2) substitute—

(2) For the purposes of subsection (1)(b), the appropriate consent is given to the making of an order under section 105A only if— (a) each constituent council consents, and (b) the combined authority consents.

• (c) omit subsections (3) to (5);

• (d) omit subsection (12).

6

After section 105B insert—

(105C) (1) A non-mayoral combined authority may only exercise the following functions with the consent of each constituent council— (a) adopt or amend the authority’s budget; (b) where it is not part of the budget, approve the total sum of the transport levy. (2) In this section a reference to the “transport levy” is a reference to any levy issued by the combined authority relating to the exercise of its functions relating to transport in accordance with any regulations made from time to time under section 74(2) of the Local Government Finance Act 1988.

7

After section 105C (inserted by paragraph 6 of this Schedule) insert—

(105D) (1) This section applies where a non-mayoral combined authority considers that the exercise of a function by the authority may result in a financial liability being incurred by one or more constituent councils (each such council being a “relevant constituent council”). (2) The function may only be exercised with the consent of each relevant constituent council. (3) When deciding whether subsection (1) applies, the authority must have regard to the “Code of Practice on Local Authority Accounting in the United Kingdom” published by the Chartered Institute of Public Finance and Accountancy, as amended or reissued from time to time.

8

In section 106 (changes to boundaries of a combined authority’s area), omit subsections (3A) to (3D).

9

In section 107 (dissolution of a combined authority’s area), omit subsections (2) and (3).

10

In section 107ZA (designation of key route network roads)—

• (a) omit subsections (7) and (8);

• (b) in subsection (9), omit the definitions of “constituent council” and “eligible power”.

11

For section 107B substitute—

(107B) (1) The Secretary of State may make an order under section 107A for there to be a mayor for the area of an existing combined authority only if the requirements under subsection (2), (3) or (4) are met (and for any further requirements in relation to such order see section 113 (requirements in connection with changes to existing combined arrangements)). (2) The requirement under this subsection is that a proposal for there to be a mayor for the authority’s area has been submitted to the Secretary of State in accordance with section 112A (proposal for changes to existing combined arrangements - locally led). (3) The requirements under this subsection are that— (a) the order does not confer any additional functions on the authority, and (b) the order has been consented to in writing by each constituent council and the combined authority. (4) The requirements under this subsection are that the order implements a proposal that the Secretary of State is satisfied that the constituent councils and the combined authority have consented to in principle.

12

In section 107D (functions of mayors: general)—

• (a) for subsection (9) substitute—

(9) Except as provided for by subsections (10A) and (11), an order under this section may be made in relation to an existing combined authority only with the consent of the appropriate authorities. (9A) The “appropriate authorities” for the purposes of this section means— (a) in relation to a mayoral combined authority— (i) the constituent councils, and (ii) the mayor; (b) in relation to a non-mayoral combined authority— (i) the constituent councils, and (ii) the combined authority.

• (b) for subsection (10) substitute—

(10A) The requirement in subsection (9) does not apply where a proposal to make the order has been submitted to the Secretary of State in accordance with section 112A (proposal for changes to existing combined arrangements - locally led).

13

In section 107DA (procedure for direct conferral of general functions on mayor), omit subsection (5).

14

In section 107EB (section 107EA orders: procedure), in subsection (12), omit the definition of “constituent councils”.

15

In section 109A (proposal for new combined authority)—

• (a) in the heading, at the end insert “(locally led)”;

• (b) in subsection (4), for paragraph (a) substitute—

(a) consult the relevant consultees,

• (c) after subsection (4) insert—

(4A) The “relevant consultees” for the purposes of subsection (4)(a) are— (a) the constituent councils, and (b) any other persons that the authority or the authorities preparing the proposal consider it appropriate to consult.

• (d) omit subsection (7).

16

For section 110 substitute—

(110) (1) The Secretary of State may make an order establishing a combined authority for an area (whether or not including other provision made under this Part) only if the following requirements are met in relation to the order. (2) The Secretary of State considers that the statutory test is met. (3) The order must— (a) implement a proposal submitted to the Secretary of State in accordance with section 109A (proposal for new combined authority - locally led), with or without modifications, or (b) implement a proposal which the Secretary of State is satisfied that the constituent councils have consented to in principle. (4) If the order falls under subsection (3)(a) or (b), the consultation requirement must be met. (5) If the order falls under subsection ..., the Secretary of State must in making the order have regard to any representations received before the end of the period specified in the notice. (6) The “statutory test” is that it is appropriate to make the order in relation to the area having regard to the need to secure effective and convenient local government in relation to the areas of competence. (7) The “consultation requirement” is that the Secretary of State has consulted— (a) if the order falls under subsection (3)(a), such persons (if any) as the Secretary of State considers it necessary to consult about— (i) the proposal that the order will implement, and (ii) any modifications to that proposal; (b) if the order falls under subsection (3)(b), the relevant consultees about the proposal. (8) Subsection (9) applies where the Secretary of State is considering whether to make an order establishing a combined authority for an area and— (a) part of the area is separated from the rest of it by one or more local government areas that are not within the area, or (b) a local government area that is not within the area is surrounded by local government areas that are within the area. (9) In deciding whether to make the order, the Secretary of State must have regard to the likely effect of the creation of the proposed combined authority on the exercise of functions equivalent to those of the proposed combined authority's functions in each local government area that is next to any part of the proposed area. (10) The requirements of this section do not apply to an order to the extent that it includes provision made under section 107F (functions of mayors: policing). (11) In this section— - “areas of competence” has the meaning given by section 2 of the English Devolution and Community Empowerment Act 2026; - “proposed area” means the area for which the combined authority is proposed to be established; - the “relevant consultees”, in relation to subsection (7)(b) are— the constituent councils, and any other persons that the Secretary of State considers it appropriate to consult.

17

In section 112A (proposal for changes to existing combined arrangements)—

• (a) in the heading, at the end insert “(locally led)”;

• (b) in subsection (1)(a), for the words from “section 104” to “107F” substitute “any of the relevant sections”;

• (c) after subsection (1) insert—

(1A) The “relevant sections” are— (a) section 104 (constitution and functions: transport); (b) section 105 (constitution and functions: local authority functions generally); (c) section 105A (other public authority functions); (d) section 106 (changes to boundaries); (e) section 107 (dissolution); (f) section 107A (power to provide for election of mayor); (g) section 107D (functions of mayors: general).

• (d) in subsection (3), for paragraph (a), substitute—

(a) consult any persons that the authority or the authorities consider it appropriate to consult, and

• (e) in subsection (5), after “an order” insert “under section 104, 105, 105A or 107D”;

• (f) after subsection (5) insert—

(5A) Before a proposal under this section for the making of an order under section 106 or 107 is submitted to the Secretary of State, the relevant consenting authorities must consent to the submission of the proposal. (5B) Before a proposal under this section for the making of an order under section 107A is submitted to the Secretary of State, the constituent councils and the combined authority must consent to the submission of the proposal.

• (g) in subsection (6), after “(5)” insert “, (5A) or (5B)”;

• (h) after subsection (6) insert—

(6A) In determining for the purposes of subsection (5) who would have to consent to the making of an order under section 104, 105, 105A or 107D, the consent of an authority is taken to be required even if the requirement for their consent under that section does not apply where a proposal is made under this section.

• (i) omit subsection (8);

• (j) for subsection (9) substitute—

(9A) For the meaning of the “relevant consenting authorities” in relation to an order under section 106 or 107 see sections 113ZB and 113ZC.

18

After section 112A insert—

(112B) (1) The Secretary of State may prepare a proposal under this section for the making of an order under section 106 to add a local government area to an existing area of a combined authority only if the following requirements are met. (2) The local government area, or any part of it, is not within the area of a combined authority or combined county authority. (3) At the time the Secretary of State starts to prepare the proposal— (a) no relevant proposals have been submitted to the Secretary of State in relation to the local government area (or any part of that area), or (b) a relevant proposal has been so submitted but the Secretary of State does not consider it to be a viable proposal. (4) A “relevant proposal” is a proposal— (a) under section 109A to establish a new combined authority; (b) under section 45 of the Levelling-up and Regeneration Act 2023 to establish a new combined county authority; (c) under section 112A to add an area to the existing area of a combined authority; (d) under section 47 of the Levelling-up and Regeneration Act 2023 to add an area to the existing area of a combined county authority. (5) The Secretary of State has had regard to whether the statutory test would be met in relation to the order that the proposal would give effect to (and for that purpose the reference in the statutory test to “the area” is to the proposed area). (6) The Secretary of State must give notice of any proposal prepared under subsection (1) (including a copy of the proposal) to— (a) any district council whose area would be added to the area of the combined authority, (b) any county council any of whose area would be added to the area of the combined authority, (c) if the combined authority is a mayoral combined authority, the mayor, (d) the constituent councils of the combined authority, and (e) any other persons that the Secretary of State considers appropriate. (7) The notice under subsection (6) must specify the period before the end of which any notified person may make representations in writing to the Secretary of State. (8) In this section— - “combined county authority” means a combined county authority established under section 9(1) of the Levelling-up and Regeneration Act 2023; - “notified person” means a person notified about a proposal under this section in accordance with subsection (6); - “proposed area” means the area of a combined authority after the local government area that is proposed to be added to it has been added to the area; - “statutory test” has the meaning given by section 110(6).

19

For section 113 substitute—

(113) (1) The Secretary of State may make an order under any of the relevant sections in relation to an existing combined authority only if— (a) the Secretary of State considers that the statutory test is met, and (b) any consultation required by subsection (3) or (4) has been carried out. (2) The “relevant sections” are— (a) section 104 (constitution and functions: transport); (b) section 105 (constitution and functions: local authority functions generally); (c) section 105A (other public authority functions); (d) section 107A (power to provide for election of mayor); (e) section 107D (functions of mayors: general). (3) If the order implements a proposal submitted to the Secretary of State in accordance with section 112A, the Secretary of State must consult such persons (if any) as the Secretary of State considers it necessary to consult about the proposal. (4) In any other case, the Secretary of State must consult the relevant consultees. (5) Subsection (4) does not apply if the order is made in accordance with the requirements under section 107B(3). (6) The “relevant consultees” for the purposes of subsection (4)— (a) in relation to a mayoral combined authority means— (i) the constituent councils, and (ii) the mayor; (b) in relation a non-mayoral combined authority means— (i) the constituent councils, and (ii) the combined authority. (7) In this section, “statutory test” has the meaning given by section 110(6).

20

After section 113 (inserted by paragraph 19) insert—

(113ZA) (1) The Secretary of State may make an order under section 106 (boundary changes) or 107 (dissolution) in relation to an existing combined authority only if the following requirements are met. (2) The Secretary of State considers that the statutory test is met. (3) For the purposes of subsection (2), the reference in the statutory test to “the area”— (a) in relation to an order under section 106, means the area after the local government area in question has been added or removed, or (b) in relation to an order under section 107, means the area of the combined authority. (4) The order must— (a) implement a proposal submitted to the Secretary of State in accordance with section 112A, with or without modifications, (b) implement a proposal of which notice was given under section 112B, with or without modifications, or (c) implement a proposal which the Secretary of State is satisfied that the relevant consenting authorities have consented to in principle (see sections 113ZB and 113ZC: relevant consenting authorities). (5) If the order falls under subsection (4)(a) or (c), the consultation requirement must be met. (6) If the order falls under subsection (4)(b), the Secretary of State must in making the order have regard to any representations received before the end of the period specified in the notice. (7) The “consultation requirement” is that the Secretary of State has consulted— (a) if the order falls under subsection (4)(a), such persons (if any) as the Secretary of State considers it necessary to consult about— (i) the proposal that the order will implement, and (ii) any modifications to that proposal; (b) if the order falls under subsection (4)(c), the relevant consultees about the proposal. (8) Subsection (9) applies where the Secretary of State is considering whether to make an order under section 106 and— (a) part of the area to be created is separated from the rest of it by one or more local government areas that are not within the area, or (b) a local government area that is not within the area to be created is surrounded by local government areas that are within the area. (9) In deciding whether to make the order under section 106, the Secretary of State must have regard to the likely effect of the change to the combined authority's area on the exercise of functions equivalent to those of the combined authority's functions in each local government area that is next to any part of the area to be created by the order. (10) In this section— - “relevant consultee” — in relation to an order under section 106 means— the council of the local government area to be added to or removed from the area of the combined authority; if the local government area is to be added to or removed from a mayoral combined authority, the mayor of that authority; if the local government area is to be added to or removed from a non-mayoral combined authority, the combined authority; any other persons that the Secretary of State considers appropriate; in relation to an order under section 107 means— the constituent councils of the combined authority that is to be abolished; if the combined authority that is to be abolished is a mayoral combined authority, the mayor of that authority; if the combined authority that is to be abolished is a non-mayoral combined authority, the combined authority; any other persons that the Secretary of State considers appropriate; - “statutory test” has the meaning given by section 110(6). (113ZB) (1) The “relevant consenting authorities” in relation to an order under section 106 means— (a) the relevant council for the local government area to be added to or removed from the area of the combined authority; (b) if the local government area is to be added to or removed from a mayoral combined authority, the mayor of that authority; (c) if the local government area is to be added to or removed from a non-mayoral combined authority, the combined authority. (2) The “relevant council” in relation to a local government area for the purposes of subsection (1)(a) is— (a) if the local government area is the area of a county council, the county council; (b) if the local government area is the area of a district council whose area does not form part of the area of a county council, the district council; (c) if the local government area is the area of a district council whose area forms part of the area of a county council, the district council or the county council. (3) If there are two relevant councils in relation to a local government area by virtue of subsection (2), the condition in subsection (1)(a) is met if— (a) in the case of an order adding a local government area to an existing area of a combined authority, either or both of the relevant councils consent; (b) in the case of an order removing a local government area from an existing area of a combined authority, both of the relevant councils consent. (4) Where the combined authority is a relevant consenting authority, the question of whether to consent in principle for the purpose of section 113ZA(4)(c) is to be decided at a meeting of the combined authority by a simple majority of the voting members of the authority who are present at the meeting. (5) A reference in subsection (4) to a voting member— (a) includes a substitute member who may act in place of a voting member; (b) does not include a non-constituent member. (113ZC) (1) The “relevant consenting authorities” in relation to an order under section 107 to dissolve or abolish a combined authority means— (a) a majority of the relevant councils; (b) if the combined authority that is to be abolished is a mayoral combined authority, the mayor of that authority. (2) The “relevant councils” for the purposes of this section are— (a) a county council whose area, or part of whose area, is within the area of the combined authority; (b) a unitary district council whose area is within the area of the combined authority.

21

In section 113D (general power of competence)—

• (a) in subsection (2), omit “(as defined by section 107B(5))”;

• (b) for subsection (3) substitute—

(2A) The “appropriate authorities” for the purpose of this section are— (a) the constituent councils, and (b) in the case of an order in relation to an existing combined authority, the combined authority.

Part 2 — CCAs

22

LURA 2023 is amended as follows.

23

In section 10 (constitutional arrangements)—

• (a) in subsection (8)—

• (i) in the opening words, for “a CCA” substitute “an existing CCA”;

• (ii) in paragraph (b), omit “in the case of regulations in relation to an existing CCA,”;

• (b) after subsection (8) insert—

(8A) Subsection (8) does not apply where a proposal to make the regulations has been submitted to the Secretary of State in accordance with section 47 (proposal for changes to existing arrangements relating to CCA - locally led).

• (c) omit subsection (9).

24

In section 16 (funding)—

• (a) in subsection (2)—

• (i) in the opening words, for “a CCA” substitute “an existing CCA”;

• (ii) in paragraph (b), omit “in the case of regulations in relation to an existing CCA,”;

• (b) after subsection (2) insert—

(2A) Subsection (2) does not apply where a proposal to make the regulations has been submitted to the Secretary of State in accordance with section 47 (proposal for changes to existing arrangements relating to CCA - locally led).

25

In section 18 (local authority functions)—

• (a) in subsection (6)—

• (i) in the opening words, for “a CCA” substitute “an existing CCA”;

• (ii) in paragraph (b), omit “in the case of regulations in relation to an existing CCA,”;

• (b) after subsection (6) insert—

(7) Subsection (6) does not apply where a proposal to make the regulations has been submitted to the Secretary of State in accordance with section 47 (proposal for changes to existing arrangements relating to CCA - locally led).

26

In section 20 (section 19 regulations: procedure)—

• (a) for subsection (1) substitute—

(1) The Secretary of State may make regulations under section 19(1) in relation to an existing CCA only if— (a) a proposal for the making of the regulations in relation to the CCA has been submitted to the Secretary of State in accordance with section 47, or (b) the appropriate authorities consent.

• (b) omit subsection (2);

• (c) in subsection (4), for “appropriate consent to be given” substitute “appropriate authorities to consent”;

• (d) in subsection (8)(b), omit “in the case of regulations in relation to an existing CCA,”.

27

In section 21 (integrated transport authority and passenger transport executive)—

• (a) in subsection (5)—

• (i) in the opening words, for “a CCA” substitute “an existing CCA”;

• (ii) in paragraph (b), omit “in the case of regulations in relation to an existing CCA,”;

• (b) after subsection (5) insert—

(5A) Subsection (5) does not apply where a proposal to make the regulations has been submitted to the Secretary of State in accordance with section 47 (proposal for changes to existing arrangements relating to CCA - locally led).

28

In section 22 (directions relating to highways and traffic functions)—

• (a) in subsection (11)—

• (i) for the opening words, substitute “Regulations under subsection (1) may be made in relation to an existing CCA only with the consent of—”;

• (ii) in paragraph (b), omit “in the case of regulations in relation to an existing CCA,”;

• (b) after subsection (11) insert—

(12) Subsection (11) does not apply where a proposal to make the regulations has been submitted to the Secretary of State in accordance with section 47 (proposal for changes to existing arrangements relating to CCA - locally led).

29

In section 24 (designation of key route network roads)—

• (a) omit subsections (7) and (8);

• (b) in subsection (9), omit the definition of “eligible power”.

30

After section 24C (inserted by section 7 of this Act) insert—

(24D) (1) A non-mayoral CCA may only exercise the following functions with the consent of each constituent council— (a) adopt or amend the CCA’s budget; (b) where it is not part of the budget, approve the total sum of the transport levy. (2) In this section a reference to the “transport levy” is a reference to any levy issued by the CCA relating to the exercise of its functions relating to transport in accordance with any regulations made from time to time under section 74(2) of the Local Government Finance Act 1988.

31

After section 24D (inserted by paragraph 31 of this Schedule) insert—

(24E) (1) This section applies where a non-mayoral CCA considers that the exercise of a function by the CCA may result in a financial liability being incurred by one or more constituent councils (each such council being a “relevant constituent council”). (2) The function may only be exercised with the consent of each relevant constituent council. (3) When deciding whether subsection (1) applies, the CCA must have regard to the “Code of Practice on Local Authority Accounting in the United Kingdom” published by the Chartered Institute of Public Finance and Accountancy, as amended or reissued from time to time.

32

In section 25 (changes to boundaries of a CCA’s area), omit subsections (6) to (10).

33

In section 26 (dissolution of a CCA’s area), omit subsection (4).

34

For section 28 substitute—

(28) (1) The Secretary of State may make regulations under section 27(1) for there to be a mayor for the area of an existing CCA only if the requirements under subsection (2), (3) or (4) are met (and for any further requirements in relation to such regulations see section 48 (requirements in connection with changes to existing CCA)). (2) The requirement under this subsection is that a proposal for there to be a mayor for the CCA’s area has been submitted to the Secretary of State in accordance with section 47 (proposal for changes to existing arrangements relating to CCA - locally led). (3) The requirements under this subsection are that— (a) the regulations do not confer any additional functions on the CCA, and (b) the regulations have been consented to in writing by each constituent council and the CCA. (4) The requirements under this subsection are that the regulations implement a proposal that the Secretary of State is satisfied that the constituent councils and the CCA have consented to in principle.

35

In section 30 (functions of mayors: general)—

• (a) for subsection (11) substitute—