Councils warn on “significant” intervention powers contained in Levelling Up and Regeneration Bill

The Local Government Association (LGA) has voiced ”deep concern” about intervention powers the Government intends to hand to the Secretary of State for Levelling Up, Housing and Communities.

It said in a briefing for the House of Lords report stage of the Levelling Up and Regeneration Bill that it was “deeply concerned that the proposed risk-mitigation measures in clause 74 of the Bill potentially give the Secretary of State significant powers to intervene in a local authority”.

The LGA felt the Bill took a formula-based approach intervention – rather than examining individual circumstances – that could affect councils more widely than intended.

“It is vital that the Government undertakes full engagement with the sector, including full consultation before enacting the regulations arising from the Bill,” the LGA said.

It last month argued that Whitehall should take a transparent, consistent, timely and proportionate approach to dealing with “the small number” of councils at risk of not meeting their Best Value duty.

The Association said then that when significant issues of concern arose at a council “it will always be essential to enter into dialogue – with no preconceptions – with that council’s leadership (political and managerial) to understand the local context and risk, level of self-awareness and ownership of the challenge and current direction of travel before proceeding with any form of intervention”.

It said advice from local authorities could assist the Government to preserve the concept of prudential borrowing “while ensuring the new arrangements address genuine government concerns” about the indebtedness of some councils after borrowing to invest.

The LGA though welcomed the Bill’s provision for all of England to have the opportunity of a devolution deal by 2030.

While “broadly supportive” of the Bill’s planning reforms, the LGA had “significant concerns that the proposed Infrastructure Levy will deliver fewer affordable homes and expose councils to excessive levels of financial risk”.

It called on the Government to scrap the proposed levy and work with councils and other stakeholders to improve the current system of developer contributions.  

Councils, housing associations and property developers made a joint protest in June about the infrastructure levy, which they said would result in fewer "new social and affordable homes, mixed and balanced developments and less of the infrastructure they need".

Mark Smulian