Baroness Taylor of Stevenage (Lab)

My Lords, I will also speak to Motions F and F1. I thank the noble Lord, Lord Shipley, and the noble Baroness, Lady Scott, for their amendments in this group. Lords Amendments 36, 90 and 155 would remove from the Bill the provisions relating to local authority governance and executive arrangements. The Government cannot accept these amendments. We remain firmly of the view that executive models of governance, particularly the leader and cabinet model, provide the clearest accountability and lead to more effective decision-making in local government. As I have said before, these provisions are intended to bring greater clarity and consistency to local authority governance in England. Your Lordships will recall my previous reference on Report to my own experience as an LGA peer reviewer and the examples that I gave highlighting the difficulties with co-ordination, decision-making and clear lines of accountability that can arise in councils operating the committee system. The Government have listened carefully to concerns raised in both this House and the other House and have responded constructively. I will comment on the CIPFA governance review. In 2025, CIPFA led a sector-wide governance review and issued a framework, Delivering Good Governance in Local Government, which emphasised the importance of clear executive leadership, defined responsibility for decision-making and the ability to maintain a single coherent strategic overview. The review highlights the risks that can arise where accountability is diffuse or decision-making is spread across multiple committees. Executive models of governance are better suited to meeting these principles than committee systems, where responsibility and oversight are more dispersed, and leadership, responsibility and accountability can be less clear. On Report in the Commons, the Government brought forward their own amendments to ensure that councils that have more recently adopted the committee system, whether by council resolution or by local referendum, will be able to continue with those arrangements for the remainder of their moratorium period and, where agreed locally, beyond that point. We continue to believe that this approach strikes the right balance between encouraging a more consistent model of governance and respecting more recent local democratic mandates, while avoiding unnecessary disruption for councils that have only recently changed their arrangements. In addition, the Government have responded to concerns about changes to statutory notice requirements and their potential impact on local media by retaining the existing requirement for councils to publish notice of governance changes in at least one local newspaper. Lastly, I emphasise that the leader and cabinet model is not a uniform structure. As the independent Centre for Governance and Scrutiny has highlighted, there are many variations in the way the leader and cabinet model can operate, allowing councils to adopt an approach to decision-making that best suits their needs within the overall model. The Government stand ready to support any council required to change its governance model to ensure that it is able to operate a version of the system best suited to its local needs. For those reasons, I urge noble Lords to agree the Motion that this House do not insist on these amendments. Amendments 37 and 91 would require the Secretary of State to develop and implement a strategy for parish governance in England. We have heard noble Lords’ valid arguments about the important role that town and parish councils can play in delivering local services and representing their communities, and we agree with those comments. We have therefore proposed an amendment in lieu that helps to clarify the role that we intend parish and town councils to have within neighbourhood governance arrangements. The amendment adds an explicit provision to the clause that allows for regulations to provide for representatives of town and parish councils to be included as members on neighbourhood governance structures. Our intention here, which we will also set out when we publish our neighbourhood governance framework later this year, is that neighbourhood governance structures should include representation from town and parish councils where they exist in an area. The amendment gets the balance right. Some local authorities have hundreds of town and parish councils, so mandating the inclusion of each individual parish within structures would be impractical and inappropriate. Instead, we should ensure that we set a clear expectation of representation that retains the appropriate flexibility for places to develop the mechanisms that will work best for their communities. Noble Lords have also raised concerns about the creation of new town and parish councils. While it is right that decisions on the creation of new town and parish councils are and should remain local decisions taken by local authorities in consultation with communities through community governance reviews, we will commit to reviewing and updating the statutory guidance that supports this process. That has not been updated since 2010, so it is time for it to be refreshed with examples of good practice for establishing new town and parish councils. Clause 60 aims to complement the work of town and parish councils where they exist and to ensure that all communities, whether or not they have a town and parish council, have effective ways to address local issues. We will be setting all this out in non-statutory guidance alongside the regulations. In addition, I can confirm that we will be publishing further principles of our neighbourhood governance framework later this year. It should be evident to your Lordships that we, too, value the role of town and parish councils, and see them as important contributors to effective neighbourhood governance. In summary, there are three points here. First, our amendment in lieu allows for regulations to provide for representatives of town and parish councils to be included as members on neighbourhood governance structures. It is right that they should be included. Secondly, we have committed to review and update the statutory guidance on community governance reviews to better reflect good practice around establishing new parish councils. Thirdly, we have committed to setting out our overall intentions for how neighbourhood governance arrangements should interact with existing groups and institutions in a framework to be published later this year, ahead of laying regulations. For the reasons I have outlined, I urge noble Lords not to insist on Lords Amendments 37 and 91, and to support the Government’s amendment in lieu. I beg to move. Motion E1 (as an amendment to Motion E)