English Devolution Bill IA: RPC Opinion (green-rated)
Regulatory Policy Committee opinion on MHCLG's English Devolution Bill Impact Assessment
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The department is seeking to deepen and widen devolution across England, reforming structures and accountability in local government, and empowering communities to have a more of say in the future of their local area and creating a pathway to bringing valued community assets into community ownership. Most of the measures in the bill are outside the scope of the Better Regulation Framework. The 4 measures in scope, and on which this opinion focuses, are:
• Micromobility - introducing licencing by local authorities for micromobility schemes, for example rental bikes and e-scooters. This aims to empower local leaders to better manage and integrate such schemes into transport networks,
• Community Right to Buy - strengthening the existing ‘Community Right to Buy’ by introducing a ‘Right of First Refusal’ for community groups, to purchase assets of community value at a negotiated or market price, if the owner puts it up for sale. The aim is to increase community ownership of local assets.
• Sporting Assets of Community Value (SACV) - A new category of ‘Sporting Asset of Community Value’ would be created to make it easier for communities to take ownership of local sporting grounds, as well as facilities such as training centres and car parks integral to their operation.
• Banning upwards only rent review (UORR) clauses in new commercial property leases in England and Wales. These clauses allow landlords to only increase rents at pre-agreed review points even if market rates have declined, which has led to concerns about market inefficiencies, inflated rents, and impacts on small businesses.
The IA describes long lists of options, spanning different types such as economic incentives, self-regulation, co-regulation, information provision, and regulation. The IA evaluates the shortlisted options in terms of achieving objectives. The IA provides a reasonable assessment of business and household impacts.
The IA is green-rated; fit for purpose.