Devolution of properties from Principal Councils to Town and Parish Councils has gained traction as a means to empower local governance, enhance community engagement and preserve services which may otherwise be lost as Principal Council’s come under increasing budgetary pressures. This process allows Town and Parish to take ownership and responsibility for public assets, enabling them to tailor services and facilities to the specific needs of their communities.
Devolution – what is it?
Devolution refers to the transfer of powers, responsibilities or assets from a higher level of government, such as Principal Councils, to a lower level, such as Town or Parish Councils. Along with statutory powers, devolution can apply to various physical assets, from parks through to toilets.
Legal Framework for Devolution
- Localism Act 2011: A cornerstone of local governance reform, promoting localism and giving councils greater flexibility in decision-making. It provides the legal basis for principal councils to transfer assets and outlines processes for such transfers.
- Community Right to Bid: Under the Localism Act, community groups, including councils, have the right to bid for assets of community value. The principal council must notify the community when it is put up for sale, allowing time for a community bid.
- Power of Wellbeing: Under Local Government Act 2000, councils have the power of well-being, enabling them to take action to promote economic, social and environmental wellbeing of their communities.
The Process of Devolution
The process involves several key steps:
- Identification of Assets the Principal Council wishes to Devolve: This can include parks, monuments and other public assets that can be better managed at the local level.
- Consultation: Consultation is required with relevant stakeholders, including local councils, community groups and residents. This process is vital for assessing community needs and ensuring the proposed devolution aligns with local interests.
- Valuation and Assessment: Before transferring assets, a valuation is required to determine its market value and any associated liabilities. This step is crucial for ensuring transparency and fairness in the process.
- Legal Agreement: If the parties agree, an agreement is drafted outlining terms and conditions. This agreement typically includes the responsibilities of the town or parish council, ongoing financial arrangements and details of existing contracts or liabilities.
- Transfer of Ownership: Once the agreement is in place, the transfer of ownership is executed and completed.
- Post-Transfer Support: Principal councils may provide ongoing support to aid effective management of the properties, including training and access to resources.
Implications of Devolution
- Increased Local Control: Devolution empowers councils to make decisions that directly impact their communities, fostering a sense of ownership and accountability.
- Enhanced Community Engagement: By taking control of local assets, councils can engage more effectively with residents, ensuring services and facilities reflect community needs and preferences.
- Financial Considerations: While devolution can lead to more localised management, councils must also consider financial implications of taking on properties, including maintenance, staffing and operational costs.
- Capacity Building: Councils may require additional training and capacity-building support to manage properties effectively, ensuring they have the skills and resources to meet their responsibilities.
- Potential Challenges: The process can be complex and challenges may arise, including resistance from principal councils, disagreements over valuations and the need for ongoing collaboration between councils.
Conclusion
The devolution of properties represents a significant shift towards localism and community empowerment. By transferring assets, principal councils can create opportunities for towns and parishes to better meet the needs of their residents, enhancing service delivery and fostering community engagement. As the legal framework continues to evolve, it is essential for both principal councils and town and parish councils to navigate the devolution process carefully, ensuring that it leads to sustainable and effective community outcomes.
Please contact our Real Estate team if you require any further information regarding Devolution and it’s implications.