Local Democracy, Economic Development and Construction Act 2009

Local Democracy, Economic Development and Construction Act 2009
Short title	Local Democracy, Economic Development and Construction Act 2009
Legislature	Parliament of the United Kingdom
Citation	2009 c. 20
Territorial extent	England and Wales
Royal assent	12 November 2009
Status	Current

Contents

Local Democracy, Economic Development and Construction Act 2009 is an Act of the Parliament of the United Kingdom enacted during the administration of the Brown ministry that reformed aspects of local governance, economic development, and construction regulation in England and Wales. The Act followed policy debates involving the Department for Communities and Local Government, the Treasury (United Kingdom), and consultations with bodies such as the Local Government Association and the Construction Industry Council. It intersects with subsequent legislation including the Localism Act 2011 and the Cities and Local Government Devolution Act 2016.

Background and Legislative History

Key statutory provisions established frameworks for Local enterprise partnerships and for statutory economic assessment duties. The Act created powers for local authorities to promote economic development and regeneration, included statutory rights related to asset disposal similar to mechanisms discussed by the National Audit Office, and introduced measures affecting construction procurement and adjudication referenced by the Construction Industry Council and the Chartered Institute of Building. It amended existing statutes including the Local Government Act 2000 and provisions related to the Planning and Compulsory Purchase Act 2004. The Act also provided for petitions and referenda mechanisms discussed in debates involving the Electoral Commission and the Centre for Policy Studies.

The Act contributed to the evolving landscape of subnational governance that also involved the Mayor of London, Greater London Authority, and emerging Local enterprise partnerships which later interacted with devolution deals negotiated with Manchester City Council, Liverpool City Region Combined Authority, and West Midlands Combined Authority. It enabled local authorities such as Birmingham City Council, Leeds City Council, and Bristol City Council to exercise enhanced economic functions while aligning with regional strategies developed by bodies like the Local Government Association and the London Development Agency. Provisions intersected with initiatives championed by political figures including David Cameron in later devolution discussions and affected relationships with institutions such as the European Regional Development Fund and the Department for Business, Innovation and Skills.

The Act provided statutory backing for measures promoted by the New Local Government Network and incorporated tools for coordinating regeneration projects akin to schemes run by the Homes and Communities Agency and the English Partnerships predecessor bodies. It created mechanisms to define and designate Local Enterprise Partnerships aligning with economic strategies in cities like Sheffield, Nottingham, Newcastle upon Tyne, and Bristol. The Act’s powers were used alongside funding instruments associated with the Regional Development Agencies and later the Local Growth Fund, influencing projects linked to institutions such as the High Speed 2 consultations and urban regeneration schemes in areas including Greater Manchester and the Tees Valley.

The Act addressed construction-sector matters resonating with recommendations from the CITB and the ConstructionSkills agenda, affecting procurement, dispute resolution, and payment practices within contracts governed by standards like those promoted by the Joint Contracts Tribunal. Housing-related elements drew on analysis from the Barker Review of Housing Supply and influenced interactions with the Homes and Communities Agency, Registered Social Landlord frameworks, and planning regimes under the Planning and Compulsory Purchase Act 2004. Provisions impacted stakeholders including the Royal Institution of Chartered Surveyors, the Federation of Master Builders, and housing associations such as Peabody Trust and Clarion Housing Group.

Implementation involved statutory instruments and regulations developed by the Department for Communities and Local Government and guidance from the Local Government Association. Subsequent legislative change interacted with the Localism Act 2011, the Wales Act 2014, and orders under the Cities and Local Government Devolution Act 2016, while secondary legislation addressed aspects of procurement, payments, and dispute adjudication influenced by rulings from the Supreme Court of the United Kingdom and cases in the Court of Appeal of England and Wales. Amendments and policy shifts were shaped by inputs from bodies such as the National Audit Office, the Public Accounts Committee, and sector groups including the Confederation of British Industry.

Reception was mixed among organisations including the Local Government Association, the Federation of Small Businesses, the Confederation of British Industry, and the Resolution Foundation; commentators in publications like the Financial Times, The Guardian, and the Times (London) debated efficacy. Academics at institutions such as the London School of Economics, the Institute for Fiscal Studies, and the University of Oxford produced critiques and evaluations, while NGOs including the Joseph Rowntree Foundation and the Shelter (charity) assessed housing impacts. Criticism focused on the Act’s capacity to deliver substantive devolved powers compared with proposals in the Calman Commission and the practical effects observed in case studies of Greater Manchester Combined Authority and Tees Valley Combined Authority initiatives.