Every neighbourhood, town and city has its own distinct sense of place – something that sets it apart.

The English Devolution and Community Empowerment Act 2026 (the Act), which received Royal Assent on 29 April, aims to empower local people to preserve and enhance that sense of place.

Section 62 of the Act introduces a new statutory duty for all local authorities in England to establish appropriate arrangements to secure effective governance for designated ‘neighbourhood areas’. In making appropriate arrangements, the local authority must engage with any parish councils in the neighbourhood area about parish representation.

The details of these arrangements may be specified in regulations to follow, which may include any of the following provisions: 

• A requirement to set up and keep in place appropriate organisational structures (or use existing ones) for the governance of neighbourhood areas
• How many people are involved, who they are (including possibly representatives of parish councils), how the structures are funded, and how they are reviewed
• Functions that may, or must, be carried out by these organisational structures to ensure effective governance of neighbourhood areas – this could include carrying out functions on behalf of the local authority
• There may also be requirements to carry out certain activities to make sure local people are properly involved and engaged in their neighbourhood area.

It seems likely that much of the detail will be left to local discretion. Councils will therefore need to make deliberate choices about how governance operates at neighbourhood level.

This creates both a requirement and an opportunity: to consider suitable models, build on existing structures, align neighbourhood arrangements with wider governance frameworks, and work effectively alongside parish and town councils. In many areas, this may mean introducing additional decision-making structures.

So, what are the current options?

1. Area committees

These may be established under:

• section 9E Local Government Act 2000; and/or
• section 101 Local Government Act 1972.

In practice, this means:

• membership will typically be limited to ward members within the area (including cabinet members);
• executive and non-executive functions may be delegated (subject to the policy framework);
• co-opted members can be included, which may include representatives of local community organisations, but without voting rights unless specifically authorised.

It will be interesting to see whether future regulations address voting rights for town and parish council co-optees.

2. Consultative committees

Where formal delegation is not appropriate, authorities may instead establish consultative committees.

These provide a structured forum for:

• cross-ward discussion;
• stakeholder input; and
• formulation of recommendations to decision-makers.

The trade-off is clear: greater flexibility, but no direct decision-making power.

3. Scrutiny and citizens assemblies

Effective neighbourhood governance is not just structural – it also depends on engagement.

Authorities already use a variety of approaches, including co-option onto scrutiny committees, public participation at meetings, and citizens’ assemblies, alongside other collaborative tools.

These should form an integral part of a council’s wider governance approach. There is real scope for creativity in designing arrangements that strengthen local identity and participation.

Making it work

A key question remains: will these formal arrangements genuinely devolve authority and empower communities? 

Holding meetings in local areas moves decision-making closer to residents, and involving local members ensures that decisions are made by people who understand local needs, which should strengthen accountability. But every place is different and one size will never fit all.

Rather than adopting a uniform approach, authorities may need to draw on a combination of models, depending on the place and the issue. The legal framework provides the tools – but success will depend on how they are used.

Beyond formal structures, there is also the challenge of fostering the right mindset: building relationships, encouraging collaboration, and supporting genuinely participative democracy.

Collaborate CIC has published a case study about neighbourhood governance in Test Valley; this might be a useful starting point for transformation and/or communities teams working alongside legal teams.

We await the detail in the regulations with interest.

Key takeaways for legal advisors

• These new provisions will apply to all local authorities, not just those undergoing re-organisation, and will require demonstrable compliance
• Consider a member working party to explore and develop suitable options