Devolution Update

Purpose of report

For information.

Summary

Update for the People and Places Board members on the policy work around Devolution and local government reform.

Recommendations Members are asked to consider and agree the draft principles set out at paragraph 8 Consider the range of public affairs activity set out at paragraph 10 – 12 Note the proposed approach to responding to the White Paper Note that a range of resources in support of devolution Action Officers to take forward comments from members for future policy work.

Contact officer:	Philip Clifford

Position:	Senior Adviser

Phone no:	0207 187 7383

Email:	Philip.Clifford@local.gov.uk

Devolution Update

Background

The Local Government Association has consistently made the case for greater powers, funding and responsibility to flow to democratically elected local leaders.

In our 2018 Annual Conference publication we called for an English Devolution Bill to enhance the devolved powers of all areas across England. In the December 2019 Queen’s Speech the Government announced an English Devolution White Paper proposing to set out further detail on our plans for full devolution across England, levelling up powers between Mayoral Combined Authorities, increasing the number of mayors and doing more devolution deals.

Following this announcement, the LGA began a programme of work, guided by member councils, to refresh and strengthen our policy position on devolution, built around four elements: establishing an English devolution baseline; expanding the focus of devolution beyond economic growth to encompass wider priorities for public service reform; making the case for greater fiscal devolution; and, asserting the constitutional position of English councils within the context of a strengthened United Kingdom.

While the emergence of the Coronavirus pandemic in March disrupted much of this work, the role of councils leading their communities through the crisis and towards recovery has been a consistent theme over the last six months. This was highlighted in the LGA’s 2020 Conference Publication, which called on the Government to deliver a devolution white paper for England that enables recovery in its broadest sense, to be led locally.

In July Simon Clarke, the Minister of State for Regional Growth and Local Government announced that the Devolution and Local Recovery White Paper would be published in September and contain proposals that will: “redefine the way in which local government serves its communities by establishing the unitarization of councils as a vital first step for negotiating [these] mayoral devolution deals in future.”

Since this announcement the question of local government reorganisation has rapidly gone up the agenda, albeit with little clarity from national government on details of the likely scale, process and timetable. Consequently, there is now a risk that a core argument in favour of devolution, to bring powers and resources closer to communities and businesses, could be lost amidst a welter of competing proposals relating to structure and governance.

With the White Paper expected within the next month this paper sets out a range of issues and proposed activity for the People and Places Board to consider with a view to ensuring a continued focus on devolution as a process to strengthen place leadership and improve local outcomes.

Discussion

Policy Principles

To date, the LGA’s work on devolution has been informed by a set of broad principles. Reflecting on the developments of the last 12 months the following are proposed as a guide to shape our response to the White Paper in the coming weeks:

Devolution deals should be locally led: there should be no one-size-fits all approach on governance, no standardised deals crafted in Whitehall and those areas able go furthest, fastest should be able to do so.

Devolution deals should leave nothing off the table: councils should be able to access the widest possible set of powers including fiscal devolution and the ability to ‘defragment’ national agencies at a local level to tackle issues such as skills and unemployment.

Devolution must be backed by adequate resources: any newly devolved powers and responsibilities must be fully funded and sit alongside a long-term sustainable funding settlement for local government.

Individual devolution deals must form part of a new push towards localisation: Whitehall must become more joined up in working with places, powers returning from the EU such as freedoms and flexibility on state aid and procurement should be passed down to the local level, grants and funding from national government should be consolidated around local areas and their needs.

English councils must have a stronger voice on the national stage: commitment to replicating the functions of the EU Committee of the Regions must be delivered, arrangements such as brexit delivery board and ministerial working groups should form basis of new partnership approach which works for all.

Members of the People and Places Board are asked to consider and agree these draft principles as a guide for the LGA’s upcoming policy and lobbying work around the devolution and local recovery white paper and to support a lobbying focus on improving outcomes through local devolution.

Public Affairs Activity

While the precise date of the White Paper’s publication remains uncertain, there is a broad expectation that it will emerge within the next six weeks. In anticipation of this we have continued to take forward work commissioned within the previous board cycle, including: the submission to Government of research by Metro Dynamics into Subnational Governance Structures; the publication of research by Shared Intelligence into the drivers of collaboration in two-tier areas; and, hosting a meeting of the Devolution All Party Parliamentary Group on fiscal devolution drawing on research undertaken by Europe Economics and Localis.

Looking ahead, work is underway to provide members of the People and Places and City Regions Board with an opportunity to engage directly with a Government representative and to use both the HCLG Committee Inquiry and the Devolution APPG Panel Inquiry to further push the case for local devolution and a place based approach across Whitehall.

In taking forward this work, the LGA will work with the Executive Advisory Board to ensure consistency between our response to the White Paper, our Comprehensive Spending Review submission and the LGA’s ongoing #CouncilsCan campaign.

Members of the People and Places Board are asked to consider the range of public affairs activity identified above and provide officers with a steer on any additional elements they would like to see.

Responding to the White Paper’s Publication

Once the White Paper is published LGA officers will begin to pull together a draft response drawing on existing policy lines and the principles set out above. We will use our existing networks and contacts within the relevant Special Interest Groups and work with the People and Places and Cities Boards to develop the detail of our response. Working on the basis that consultation arrangements around the White Paper will follow a traditional course, we expect a period of around 12 weeks to respond to the consultation. A detailed engagement timetable will be circulated once the date for publication is known and it is proposed that the LGA’s Executive Advisory Board provides final sign-off for the LGA’s response.

While there remains a degree of uncertainty around the contents of the White Paper it is anticipated that a primary objective will be to set out how local areas will be able to access greater powers to drive economic growth. Alongside this the White Paper may also contain proposals relating to health and social care, police and crime commissioners, the repatriation of powers and functions following transition from the EU and the UK Shared Prosperity Fund. Notwithstanding any views members may already have on these matters the LGA will work to ensure that a joint position regarding these matters is agreed with the relevant LGA policy board. In support of this it is proposed that an item on health devolution is considered at the next meeting of the People and Places Board.

Members of the People and Places Board are asked to note the proposed approach to responding to the White Paper, agree that an item be taken on health devolution at the next meeting of the board and that further cross-cutting work will be developed once the detailed proposals from government emerge.

Combined Authorities Engagement and Supporting Devolution

The LGA has a programme of support for devolution deal areas and continues to commission research and facilitate a range of thematic discussion groups between senior officers from established and emerging combined authority areas. The publication of the Local Recovery and Devolution White Paper has the potential to herald a significant increase in the number of mayoral combined authorities. This will increase the demand for guidance and support on issues related to devolution and the LGA is already in the process of developing a support package made up of a refreshed online resource, a reconvened officer contact network and commissioned research, which will seek to map out the process of going from striking a devolution deal to delivery.

In the longer term the White Paper also creates an opportunity to re-engage the established combined authorities and consider how best to work together in the context of greater incidence of devolved governance. In order to ensure also this meets the needs of constituent local authorities, it is proposed that this programme of engagement will be steered by members of the People and Places and City Regions board. A paper will be brought to the next board meeting setting out the parameters and progress of this work.

Members of the People and Places Board are asked to note that a range of resources in support of devolution are being developed in parallel to the LGA’s policy and lobbying efforts and that a paper will be brought to the next board meeting setting out next steps.

Next Steps

Members of the People and Places Board are asked to:

Consider and agree the draft principles set out at paragraph 8 as a guide for the LGA’s upcoming policy and lobbying work around the devolution and local recovery white paper and to support a focus on improving outcomes through local devolution.

Consider the range of public affairs activity set out at paragraph 10 – 12 and provide officers with a steer on any additional elements they would like to see.

Note the proposed approach to responding to the White Paper and agree that an item be taken on health devolution at the next meeting of the board

Note that a range of resources in support of devolution are being developed in parallel to the LGA’s policy and lobbying efforts and that a paper will be brought to the next board meeting setting out next steps

https://www.local.gov.uk/sites/default/files/documents/5.39%20Brexit_v06WEB.pdf

https://local.gov.uk/devolution-our-offer-support