The English Devolution and Community Empowerment Act 2026 (Commencement No. 2) Regulations 2026 were made on 14 July 2026 and, according to the text published on legislation.gov.uk, bring a further group of provisions into force on 15 July 2026. This is the second commencement instrument under the 2026 Act, moving several local government and audit measures from enactment into operation. The package is tightly drawn. It covers co-operation with local government pension scheme managers, the establishment of the Local Audit Office, the first phase of audit committee duties for certain authorities, changes affecting smaller authorities and an amendment linked to the future separation of LGPS accounts.
For local audit, the most notable step is the commencement of section 89, which establishes the Local Audit Office, alongside most of Schedule 34 to the Act. The explanatory note states that the instrument also makes related amendments to the Local Audit and Accountability Act 2014, including the insertion of a new Schedule 1A. That said, the new framework is not fully switched on in one move. The Regulations expressly hold back the provisions that would insert paragraph 13(1)(b) and paragraphs 13(2) to (4), paragraph 14 and paragraph 15 into Schedule 1A. The government’s note says those deferred paragraphs concern statutory accounts, business planning and annual reporting, and will be commenced later.
The commencement order also activates section 94 on audit committees, but only in relation to a relevant authority that is a Category 1 authority for the purposes of the Accounts and Audit Regulations 2015. In policy terms, that is a selective start rather than a universal one. For authorities and advisers, the point is procedural as much as substantive. The duty now begins for the class of bodies named in the instrument, while the wider audit reform programme continues to be introduced in stages. That reduces the risk of treating this SI as a complete roll-out of the Act’s audit committee model.
Two provisions are directed at smaller authorities. Section 96, described in the Act as a change of terminology, comes into force on 15 July 2026. Section 97, which creates a power to provide for smaller authority treatment in previous years where an audit remains outstanding, also starts on that date. The distinction matters. Section 97 does not, by itself, settle the position of every delayed audit. It brings the enabling power into force so that provision can be made for earlier financial years where unresolved audits would otherwise prevent a smaller authority from being dealt with under the intended regime.
The Regulations also commence section 43 on co-operation with local government pension scheme managers and section 98, which the explanatory note describes as paving the way for the separation of LGPS accounts. Both provisions sit within the wider governance changes attached to the 2026 Act. For administering authorities and finance teams, this is a preparatory legal step rather than the end of the process. The statutory basis for closer co-operation and future accounting separation is now active, but operational detail will still depend on later commencement decisions, secondary legislation or guidance where required.
The instrument was signed on behalf of the Secretary of State by Alison McGovern, Minister of State at the Ministry of Housing, Communities and Local Government, on 14 July 2026. The explanatory note states that no separate impact assessment has been produced because no, or no significant, effect on the private, voluntary or public sector is foreseen. Instead, the department directs readers to the impact assessment prepared for the parent Act. That is typical of commencement regulations, which generally bring previously enacted provisions into force rather than setting out a wholly new policy design in their own right.
In practical terms, the immediate consequence is a new implementation date that local authorities, audit practitioners, monitoring officers, section 151 officers and LGPS administrators now need to map against existing work programmes. From 15 July 2026, some duties and institutional changes are legally live, while other elements of the same reform package remain pending. The careful phasing is the main message of this instrument. According to legislation.gov.uk and the government’s own explanatory note, the 2026 Act is not being commenced as a single block. Local audit structures, smaller authority treatment and pension governance are moving forward together, but not all reporting and accountability provisions have yet reached commencement.