Agenda item

Allen Graham, Chief Executive of Rushcliffe Borough Council

Allen Graham, Chief Executive of Rushcliffe Borough Council presented the item on Combined Authorities which outlined the steps required to establish a combined authority and sought the approval of the Committee to develop further proposals. The following information was highlighted:

(a)  following an informal presentation from Derbyshire colleagues in July 2014, further work was requested on the potential benefits of a combined authority. Representatives from all constituent authorities have since come together to discuss progress on plans to form a combined authority;

(b)  discussions have taken place with D2 partners, the Department for Communities and Local Government (DCLG), the Department for Business, Innovation and Skills (BIS), the Cabinet Office and N2 chief executives. It is clear from the advice received from civil servants that the Government expects a combined authority proposal to set out a clear ambition for the area which goes beyond simply delivering current priorities;

(c)  the formation of a combined authority is dependent upon carrying out a governance review, including consultation, which demonstrates that a combined authority would add value. Following this process, constituent members would be required to draft a scheme which sets out the terms of reference for a combined authority prior to submitting it to the Secretary of State. If satisfied, an order would then be laid before Parliament;

(d)  partners from constituent authorities have created early drafts of a governance review and a scheme outlining the draft terms of reference. A draft memorandum of understanding has been produced following advice from DCLG and BIS;

(e)  a clear narrative and evidence is needed for why the separate D2 and N2 configuration is right for the D2N2 area and the LEP. Further clarification is needed to define how two combined authorities will interact with the LEP whilst not creating more complexity than is necessary;

(f)  a clear commitment is needed from constituent members to pool or share some powers and resources. The powers which are identified in the draft scheme will need to reflect the vision for N2 but remain compatible with the D2 area in respect of the entire LEP area;

(g)  the next step will require blue sky thinking to establish a more ambitious vision in the long term, including more specific powers and responsibilities. Advice from the government suggests that it would be better if N2’s submission is considered in parallel with a consistent approach to the key issues around D2N2. A possible timetable is as follows:

-  October/November 2014 – carry out the blue sky thinking, including the development of the scheme and a governance review;

-  December 2014 – Report back to the Economic Prosperity Committee;

-  January/February 2015 – each constituent authority to decide whether to form part of a combined authority. At the same time, consultation will take place stakeholders and DCLG;

-  February/March 2015 – submit proposals to the Secretary of State;

-  September 2015 – decision by the Secretary of State and a Parliamentary Order made;

(h)  the benefits of a combined authority include developing stronger influence and better governance in relation to the LEP and future growth deals, progressing collaboration outside of the LEP relationship, greater ability to argue for power and resources from Government and a better use of existing resources. The overwhelming feeling is that a combined authority will project a collective and stronger voice, especially when it comes to devolved powers and the allocation of funding;

(i)  should constituent members choose to submit a cautious, preliminary scheme to the Secretary of State and Parliamentary Order, any subsequent additional powers to the scheme will only be achieved via a statutory instrument. When developing N2’s vision for a combined authority, constituent members will have the opportunity to seek more power and influence.

RESOLVED to

(1)  undertake work to identify the benefits of a combined authority and develop a vision and aspirations for the long term economic vitality of the N2 area;

(2)  identify specific powers which could be exercised by a combined authority for the N2 area;

(3)  undertake work on a scheme and a governance review for the N2 area, working in parallel with the D2 area to cover common issues including LEP governance;

(4)  agree the timetable below in principle, subject to further guidance from the Department for Communities and Local Government (DCLG):

-  October/November 2014 – carry out the blue sky thinking, including the development of the scheme and a governance review;

-  December 2014 – Report back to the Economic Prosperity Committee;

-  January/February 2015 – each constituent authority to decide whether to form part of a combined authority. At the same time, consultation will take place stakeholders and DCLG;

-  February/March 2015 – submit proposals to the Secretary of State;

-  September 2015 – decision by the Secretary of State and a Parliamentary Order made.

Reason for decisions:

Parallel work is taking place in Derbyshire and it is therefore sensible to share approaches so that both governance reviews take a consistent approach to the cross D2N2 issues in relation to the LEP.

Other options considered:

Not to agree to the timescale to carry out the necessary work. This option was discounted as work to undertake the necessary governance review has started and Chief Executives are currently working on the development of a draft. It is sensible to coordinate work currently taking place in Derbshire.