How will the Labour manifesto impact local authorities?

Following the inauguration of a new Labour government, there are expected to be many policy changes and evolutions over the coming months that will affect a diverse range of areas, and particularly much of the public sector’s infrastructure and organisational framework. An indication of these changes has been outlined in Labour’s manifesto, which is wholly extensive, and their pledges will have a profound impact on local and combined authorities. Sarah Butler, divisional director and sector lead for central and local government at Drees & Sommer UK, explores how the government’s commitments are likely to impact local government from an infrastructure perspective.

Focus on devolution and combined authorities

Under the manifesto, Labour has pledged that councils will receive multi-year funding settlements. This will provide local authorities with greater financial stability and enable planning of long-term projects more effectively. This approach aims to reduce the time and resources spent on competitive bidding for annual grants and funding rounds.

Combined and mayoral authorities will also be given responsibility for housing growth within their areas, providing for a more localised approach to addressing housing needs.

Alongside this, new planning powers will be given to combined authorities. This intends to streamline the planning process to encourage faster decision-making and more efficient use of grant funding, potentially leading to an increase in the speed of development.

There will also be larger devolution settlements for existing combined authorities, thereby creating more autonomy and greater resources to support economic development and infrastructure projects. Devolution will be widened to more regions, giving combined authorities the power to make pertinent decisions that directly affect their communities.

Overall, these commitments are intended to empower local authorities, providing them with the tools and resources needed to address local challenges and opportunities more effectively. The impact of such will likely be a more agile local government structure.

Energy and decarbonisation

With a headquarters in Scotland, a new publicly owned company named Great British Energy will be established. It will be provided with £8.3bn in funding to develop and manage clean energy projects across the UK. This is likely to create new opportunities, ensuring local authorities benefit from increased investment and job creation.

Their first major partnership will be with the Crown Estate, who are responsible for managing one of the world’s largest floating wind leasing programmes in the Celtic Sea. This partnership will deliver enough energy to power almost 20 million homes. Subsequently, local authorities may see a boost in local energy production, leading to greater energy security.

Working with the private sector, the government is aiming to double onshore wind, triple solar power, and quadruple offshore wind by 2030. It will accordingly be the job of local authorities to facilitate and support the expansion of this renewable energy.

Labour have further pledged to invest £6.6bn to retrofit five million homes, courtesy of a Warm Homes Plan which will incentivise developers with grants and low interest loans to support investment in insulation, solar panels, batteries, and low carbon heating. This initiative will likely involve local authorities in the distribution of grants and loans, as well as yielding responsibility for overseeing retrofitting programmes.

Homes within the private rented sector will also be required to meet the minimum energy efficiency standards by 2030. It will duly be the role of local authorities to enforce this, along with ensuring the compliance of local landlords in meeting such standards by the requisite deadline.

Another commitment within the manifesto is to set up a National Wealth Fund worth £3.7bn to support growth and clean energy missions, whilst aiming to attract an additional £21.9bn in private funding. This could provide local authorities with additional resources to support growth and clean energy initiatives, thereby enhancing their ability to contribute to the UK government's net zero targets.

There is also a commitment to make the UK the green finance capital of the world, through mandating that regulated financial institutions and FTSE100 firms enact a plan to align with the 1.5 degree target. Local authorities will accordingly play a key role in supporting businesses to develop and implement these plans.

These stated commitments on energy and decarbonisation will likely lead to a more proactive role for local authorities in the transition to a low-carbon economy, with increased responsibilities and opportunities in planning and regulation.

Neighbourhood developments and planning

New legislation in the form of the Planning and Infrastructure Bill will reform the current local planning system. This will hopefully expediate the planning process for councils through streamlining and increasing efficiency. Councils will need to adapt to new regulations that could change the way planning applications are processed and subsequently approved.

Proposed reforms to the National Planning Policy Framework (NPPF) include reviewing the thresholds for nationally significant infrastructure projects and broadening the definition of brownfield land to facilitate development. These reforms aim to streamline the planning process whilst ensuring it aligns with broader objectives for sustainable development and infrastructure improvement. Consequently, local authorities will likely see an increase in development opportunities, particularly on previously developed land. This could help to meet housing and infrastructure needs more effectively.

There will also be a new statutory requirement for Local Growth Plans, covering towns and cities across the country. This will require councils to take a more strategic approach to planning, covering towns and cities across the country. This could enhance coordination, whilst ensuring that local development aligns with regional and national economic objectives.

Labour has further pledged to build a new generation of towns, inspired by the legacy of the 1945 Labour government. It is expected that local authorities will be involved in planning and development processes, potentially leading to the creation of new communities with modern infrastructure and amenities.

Neighbourhood Health Centres are also to be trialed and will bring together existing services under one roof. Local authorities will be key in co-locating existing services to help support the improvement of healthcare delivery and accessibility. They will do so by identifying suitable locations and managing the centres themselves.

The manifesto further commits to building capacity in planning and to funding an additional 300 planning officers. This will accordingly provide councils with more resources to handle the expected increase in planning activities, hopefully improving the speed of service in local planning departments.

We can see that the manifesto’s neighbourhood plans are likely to increase the responsibilities of local authorities, requiring them to manage more complex planning scenarios and engage in more extensive development projects. Councils will need to work closely with central government, private sector partners, and communities to successfully implement these changes.

Housing development

Regarding housing, the government has pledged to restore mandatory housing targets. This will require local authorities to ensure that a specific number of new homes are built within their areas. This will likely encourage more proactive planning and development strategies to meet the requisite targets.

There will also be a brownfield first approach, whereby previously used or derelict land will be prioritised for development over greenfield sites and approval of urban brownfield sites will be fast-tracked. As such, local authorities will need to focus on identifying brownfield spaces for redevelopment and increase efficiency and speed in approving such sites.

The manifesto also commits to delivering the biggest increase in social and affordable housebuilding in a generation. Consequently, this will place significant responsibility on local authorities to facilitate and support the construction of new homes. To do so will require strong partnerships, with local authorities collaborating closely with developers, housing associations, and central government.

In sum, these commitments will oblige local authorities to adapt planning and development processes, potentially leading to a more responsive approach to housing needs. It will further necessitate collaboration with various stakeholders, including registered housing providers and private sector partners, to achieve the ambitious plans advocated in the manifesto.

Transport improvements

In terms of transport infrastructure, Labour intends to roll out a ten-year infrastructure strategy aligned with industrial strategy and regional development priorities, including improving rail connectivity across the north of England. This includes powers for rail infrastructure in the Manchester area, including new stations at Manchester Picadilly and Manchester Airport. These plans will likely lead to substantial investment in local infrastructure, meaning local authorities will have a crucial role in planning and coordinating these developments. This should in turn significantly boost economic growth and connectivity, particularly in the North.

They further plan to reform the railways by bringing them into public ownership via Great British Railways, who will be responsible for investment and day-to-day operations. It is hoped this will lead to more integrated and efficient rail services. As such, local authorities may have increased involvement in decision-making processes related to rail services, ensuring that the needs of local communities are met.

There will also be support to expediate the transition to electric vehicles, through accelerating the roll out of charge points by restoring the phase-out date of 2030 for new cars with internal combustion engines. This will require local authorities to facilitate the installation of this infrastructure, involving the identification of suitable locations for charge points and working with private sector partners to implement the rollout.

Overall, these commitments will necessitate local authorities to engage in strategic planning and collaboration with various stakeholders, including central government, private sector partners, and local communities, to successfully implement these changes and maximise the opportunities afforded.

New infrastructure delivery body

Plans have been made to merge the National Infrastructure Commission (NIC) and Infrastructure and Projects Authority (IPA) into a new body named The National Infrastructure and Service Transformation Authority (NISTA).

Merging the two will consolidate responsibility for strategic planning and delivery into a single body, with the aim of better supporting the delivery of major capital projects. Via this approach, NISTA intends to provide more coherent and unified oversight of major capital projects. This could benefit local authorities by simplifying the process of coordinating with central government on infrastructure projects. Through strategic planning, local authorities may find it easier to align their local infrastructure plans with national priorities, accordingly facilitating increased access to funding and resources.

The creation of NISTA is likely to provide local authorities with a more direct and efficient route to engage with central government on infrastructure matters, which could lead to better outcomes for local communities.

Improving capacity across the prison estate

The Labour manifesto pledges to deliver 14,000 jail places and to utilise relevant powers to facilitate the building of prisons. As a result, local authorities will be involved in the planning and development process for new prison facilities. This may include identifying suitable sites, working on planning permissions, and ensuring that infrastructure supports the new developments.

Local authorities may also need to manage community relations and address any concerns from residents regarding new prison facilities within their local areas. The construction of new prisons can have an economic impact on local areas, potentially increasing employment opportunities and stimulating local economies during the building phase and through ongoing operation.

New government, new responsibilities

The government’s manifesto contains many new policies which will be legislated throughout the coming months and will accordingly impact upon the powers, roles, responsibilities, and opportunities of local authorities around the UK. These commitments will give local authorities greater potential to implement effective changes within various sectors including housing, planning, and decarbonisation. Local authorities will therefore need to be mindful and prepared to take on the new responsibilities bestowed upon them by this new government. The expansion of their remit should be considerably rewarding and hopefully lead to significant improvements to services within their local communities.