English Devolution and Community Empowerment Bill Report Stage: New Clause 2

What happened: The House of Commons voted on 24 November 2025 on New Clause 2 of the English Devolution and Community Empowerment Bill at Report Stage. The new clause, tabled by the Conservative opposition, would have amended the Local Government Finance Act 1992 to require that council tax increase limits applied to mayoral combined authorities and combined county authorities (CCAs) be set at no higher than the limit applied to the majority of county and unitary councils. The clause was defeated by 318 votes to 158.

Why it matters: The new clause sought to cap the council tax precept-raising powers of mayors and combined authorities at the same ceiling as most county and unitary councils, preventing mayoral institutions from setting higher council tax increases than other local authorities. Without this restriction, the government retains flexibility to allow mayors to raise council tax by a greater proportion than ordinary councils, which the opposition argued creates an unfair and unaccountable burden on residents in areas with mayors. The defeat means the government's original approach to council tax powers for strategic authorities remains unchanged.

The politics: The vote divided sharply along party lines. All 278 Labour MPs and all 29 Labour and Co-operative MPs who voted went against the new clause, while all 91 voting Conservatives and all 58 voting Liberal Democrats supported it. Reform UK contributed 6 votes in favour, and the Democratic Unionist Party added 3. The Greens voted with the government against the clause. This placed opposition parties across the political spectrum on the same side in opposing mayoral council tax flexibility, while the government held its parliamentary majority comfortably. The debate reflects a broader tension running through the bill between the government's devolution agenda and opposition concerns about accountability and financial pressure on residents.