Labour’s local government reforms have passed their first Commons hurdle, with Angela Rayner hailing a “new era” for Britain.
Transport, planning and housing will be devolved to new unitary local authorities, under proposals in the English Devolution and Community Empowerment Bill.
MPs backed the reforms on Tuesday, voting 365 to 164, majority 201, to pass the Bill at second reading.
Deputy Prime Minister Ms Rayner said the Bill, which will see two-tier district and county councils replaced with one body, will end the “begging bowl, micro-managing culture”.
Shadow communities secretary Sir James Cleverly accused Ms Rayner of attempting a “power grab” as he argued the Bill will strip power from local authorities.
Labour MP Jonathan Brash also raised concerns, warning devolution through metro mayors could lead to “power hoarded, pushed further away from the very neighbourhoods they are supposed to empower”.
A Conservative attempt to block the Bill through a reasoned amendment was rejected, with MPs voting 167 to 367, majority 200.
At the start of the debate, Ms Rayner told the Commons: “I worked on the front line of local government and I saw how it changes people’s lives.
“So I know I won’t achieve our goals unless we fundamentally change the way our country is run.
“And that means handing power back to where it belongs: to local people with skin in the game so that they can make decisions on what really matters to their communities.
“This is what the Bill will do: drive the biggest transfer of power from Whitehall to our regions and communities in a generation, and ending the begging bowl, micro-managing culture.”
She added: “This Bill and our response heralds a new era for Britain. A new way of governing which puts politics in the service of working people.
“Where previous governments promised and failed the British people, this Government is keeping faith.”
Powers in the Bill include a “community right to buy” which could allow groups a first refusal on buying local assets such as pubs or shops.
Clauses in commercial leases which enforce “upward only” rent reviews will be banned in a bid to keep small businesses afloat, helping to end the “blight of vacant high streets” and anti-social behaviour.
As part of boosting the powers of regional mayors, they will be responsible for developing local economic plans and gain control over licensing for e-bikes and planning decisions to “set the direction of growth”.
Mayors will be able to impose “development orders” to speed up developments, while new “mayoral development corporations” are intended to streamline implementation and attract investment.
Sir James said the Bill is forcing authorities to restructure at a cost and without the approval of councils or voters.
In his first appearance on the front bench since his appointment to the shadow cabinet, he said: “It is clearly a power grab by her, and her department.
“And it isn’t about community empowerment at all. It is about stripping power from local authorities and concentrating it in Whitehall.”
“This Bill is not about empowering local communities, and it is definitely not about empowering local councils. It is about creating a cohort of puppet mayors controlled by (Ms Rayner’s) department,” Sir James added.
The Conservative former minister said the Bill’s title sounded like it had come from the Ministry of Truth in George Orwell’s book 1984.
Mr Brash, MP for Hartlepool, said: “This is not power in the hands of the people.
“Devolution was supposed to mean decisions made closer to communities, but too often, the reality is it’s the opposite: power hoarded, pushed further away from the very neighbourhoods they are supposed to empower.
“We must ensure accountability for mayors. They can be the vehicle for delivering for the public, but the power itself can only lie in one place – with the people.”
Liberal Democrat local government spokeswoman Vikki Slade said her party was concerned that the Secretary of State would retain sweeping powers to merge authorities without parliamentary oversight or local consent.
Ms Slade said: “What we see here is a Bill that centralises decision making, limits community influence, and because it leaves areas unsure of their future, risks deepening inequality between regions.”
She added that the loss of district councils could lead to the erosion of “our distinct history, culture and civic pride in our communities”.
The Bill will progress to committee stage where the proposals will receive further scrutiny.
