Draft Barnsley, Doncaster, Rotherham and Sheffield Combined Authority (Functions and Amendment) Order 2020
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The Chair
Before we begin, I remind Members about social distancing rules. Spaces available to Members are clearly marked, and unmarked spaces must not be occupied. Hansard colleagues would be grateful if you could send any speaking notes to hansardnotes@parliament.uk.
The Minister of State, Ministry of Housing, Communities and Local Government (Mr Simon Clarke)
I beg to move,
That the Committee has considered the draft Barnsley, Doncaster, Rotherham and Sheffield Combined Authority (Functions and Amendment) Order 2020.
As a veteran of many such Committee sittings, I can testify that they are not always riveting. However, today’s is of genuine and lasting significance. The draft order, if approved and made, will implement the devolution deal agreed in 2015 between the Government and the Sheffield city region. Since then, the Government have been consistently committed to the deal, which will bring significant benefits to the people of South Yorkshire. In January this year, the South Yorkshire authorities decided that they wished to progress the deal’s implementation. We welcomed that decision and now, following the public consultation undertaken by those authorities, we seek parliamentary approval for the process.
The order confers significant powers on the Mayor and the combined authority as envisaged in the devolution deal. Such powers relate to transport, education, skills and training, housing, regeneration and planning. It also amends certain combined authority governance arrangements to reflect those powers and the role of the Mayor. Most importantly, the making of the order will unlock £30 million of annual investment funding for South Yorkshire for the next 30 years. It will also devolve to the area the £35 million annual adult education budget.
Together, these powers and funding will help the Mayor and local leaders to drive the city region’s economic and social recovery from the covid-19 pandemic. They also represent a significant contribution towards the Government’s commitment to level up our country and transform the growth prospects of communities and the life chances of their residents. With that in mind, I pay warm tribute to the Mayor, the hon. Member for Barnsley Central, for everything he has done to help make today possible. He has been a consistent voice of good sense of co-operation, and we thank him. I also thank local leaders and their councils for all they have done and continue to do to support the area and local people as they face the challenges of the current situation.
If the order is approved and made, it will give effect to the provisions of the devolution deal. The Mayor will have control over a consolidated and devolved transport budget, with the power to pay grants to the four constituent councils in relation to the exercise of their highways functions to improve and maintain roads. The combined authority will take on duties to promote and provide education and training which, with the devolved adult education budget from 2021-22 onwards, can be better aligned to locally determined priorities and to help boost economic growth.
In order to improve the supply and quality of housing, the combined authority will be conferred the land acquisition and disposal powers that Homes England already has. Such powers will be exercised concurrently with those of Homes England, enabling the combined authority, working closely with Homes England, to promote housing policies. The Mayor will also be given the power to establish mayoral development areas, which is a necessary step to establish mayoral development corporations in the future.
The order also provides that the general power of competence, exercisable already by the combined authority, is exercisable by the Mayor. By using that general power of competence, the Mayor will be able to prepare and publish a spatial strategy for the combined authority area, subject to the unanimous consent of the constituent councils and the combined authority.
The order also includes constitutional provisions reflecting the powers conferred and the role of the Mayor. There is provision regarding voting arrangements so that any decision of the combined authority about its new powers conferred through the order must include the Mayor among a majority of members in favour of that decision. The order also provides for the establishment of an independent remuneration panel to recommend the allowances of the Mayor and the deputy Mayor.
If Parliament approves it, the order will be made under the Local Democracy, Economic Development and Construction Act 2009, as amended by the Cities and Local Government Devolution Act 2016. As required by the 2016 Act, along with the order we have laid a report that provides details about the public authority functions that we are devolving to the combined authority, some of which are exercisable by the Mayor. The statutory origin of the order is in a governance review and scheme adopted in January 2020 by the combined authority and its four constituent councils, in accordance with the requirements of the 2009 Act. The scheme proposed additional functions to be conferred on the combined authority as envisaged in the devolution deal, and specified those that will be exercised by the Mayor and for certain amendments to governance arrangements.
As provided for by the 2009 Act, the combined authority and the councils consulted on the proposals in their scheme, promoting consultations through regional and local media, social media and posts in public buildings. Responses were accepted through the combined authority website, as well as by letter and email and in hard-copy form. The public consultation ran from 3 February to 15 March 2020, and 675 responses were received. As statute requires, the combined authority provided the Secretary of State with a summary of the responses to the consultation in April. The consultation results show that the proposals are strongly supported by the public and by stakeholders. The seven questions posed in the consultation all received clear majority support, and five received positive public responses of 80% or above.
In laying the draft order before Parliament, the Secretary of State is satisfied that the statutory tests in the 2009 Act are met—namely, that no further consultation is necessary; that conferring the proposed powers would be likely to improve the exercise of statutory functions in the combined authority area; that it would be appropriate, having regard to the need
“to reflect the identities and interests of local communities”
and
“to secure effective and convenient local government”;
and that where the functions are local authority functions, they can be appropriately exercised by the combined authority. As required by statute, the Mayor, the combined authority and the four constituent councils have consented to the making of the order.
In conclusion, the draft order will devolve a range of powers to the Mayor and combined authority for the benefit of the whole of South Yorkshire. It will drive growth, contribute to the city region’s economic recovery and renewal, and help deliver our agenda to level up opportunity and prosperity across the UK. I therefore warmly commend the draft order to the Committee; I hope it is the first of several establishing new mayoralties in the months ahead.
Mr Clarke
It was remiss of me not to pay tribute to you on your first occasion in the Chair, Ms Ghani. It is a great pleasure to be part of this historic first. It is also an historic first for South Yorkshire. I fully join with the Mayor, the hon. Member for Barnsley Central, in what he said about this being a collective, cross-party achievement, which has very much involved local leaders and the civil service, who have been marvellous in negotiating all the various hurdles.
The hon. Member rightly said that devolution is not an end in itself; it is about unlocking the benefits that can flow from it of better and more responsive government. The Government are clearly determined to try to roll out devolution as far as we can across the rest of England, because we are concerned about the increasing asymmetry between those parts of the country that have mayoral devolution and those that do not. It is about not just the absence of a strong, effective voice to champion those areas but the imbalance in funding that flows from that. We are keen to close that gap. The White Paper referred to by the hon. Member for Weaver Vale will come forward this autumn, and it will not lack boldness in setting out our ambition to finish the job we have started and ensure that we end those gaps in the devolution jigsaw.
It is a significant achievement that once the West Yorkshire mayoralty stands up next spring, 63% of the north of England after will be covered by mayoral combined authorities. That is something on which we are hoping to make swift progress. A number of other conversations are ongoing, including with York and North Yorkshire; Cumbria; Lincolnshire—I had meetings with Lincolnshire MP colleagues this afternoon—Hull and East Riding; and Cheshire and Warrington, to which the hon. Member for Weaver Vale referred. A lot of places are starting to come forward, and I will use this opportunity to send a clear message that we are ready and willing to begin those conversations with areas that want to engage with us.
It is clearly important that we do not just look at one tier of governance. The hon. Member for Barnsley Central rightly referred to the Yorkshire Leaders Board and the northern powerhouse. We do not seek to establish hard borders on these new mayoralties. Absolutely, that culture of collaboration needs to expand across wider geographies so that we achieve the maximum possible benefit. We will bring forward important proposals this autumn, and I hope that Members across the Committee will see the value in them. This is an area of considerable policy consensus, and it is about making sure we negotiate the right arrangements for each area. We will certainly be devoted to doing that.
Let us recognise that today is a really good news day for the Sheffield city region. We can all be pleased that we have played our part in helping to make it happen. The Lords process will follow in the next few weeks, so the arrangements will be all in place before summer recess, which is fantastic.
I should address the question asked by the hon. Member for Weaver Vale about the timeline for deals currently in negotiation. We will move at the pace we can, but we are certainly open in principle to the first of those new deals being completed by May 2022, subject to progress in those talks. We would like to see those that we cannot get over the line by that point concluded by May 2023. The objective is to maximise the number of new Mayors, with new unitaries created underneath them, so that we move forward from this period with a reformed local government structure that is better able to help us with our current crisis and, more broadly, the challenges we face as a nation in terms of levelling up and the gaps that we know exist between the wider regions and the greater south-east. We were elected to deliver on that, and we can help to achieve that if we get the right local government structures in place. Today is another stride on that journey.
Question put and agreed to.