(1 day, 6 hours ago)
Grand CommitteeThat the Grand Committee do consider the Sussex and Brighton Combined County Authority Regulations 2026.
Relevant document: 52nd Report from the Secondary Legislation Scrutiny Committee
My Lords, these regulations were laid on 11 February 2026. Before I proceed, I draw the Committee’s attention to a correction slip that has been issued for these regulations. It corrects the name of the appropriate administering authority for pension purposes from East Sussex to West Sussex. This change was requested by, and agreed with, the constituent councils. When referring to the Sussex and Brighton Combined County Authority, I will use the term “strategic authority” hereafter unless there is a reason to be specific.
Devolution is a critical lever for delivering growth and prosperity, with mayors and local leaders being best placed to take the decisions that benefit local communities. This Government were elected on a manifesto commitment to widen and deepen devolution across England. The English Devolution White Paper set out our plans to achieve that. Much of that White Paper is now being taken through Parliament via the English Devolution and Community Empowerment Bill.
The White Paper also launched the devolution priority programme to provide a fast track to establish a new wave of mayoral strategic authorities. Following an expressions of interest process, in February 2025 we announced six places on the programme, including Sussex and Brighton. This statutory instrument will establish their strategic authority and provide for mayoral elections. In doing so, it represents substantial progress towards fulfilling our commitment to move power out of Whitehall and back to those who know their areas best.
The Government have worked closely with the constituent councils in Sussex and Brighton on the instrument. The constituent councils are West Sussex County Council, East Sussex County Council and Brighton and Hove City Council. All the constituent councils have consented to the making of this instrument, and I thank local leaders and their councils for their support in getting us to this point.
The instrument will, if Parliament approves, be made under the enabling provisions in the Levelling-up and Regeneration Act 2023. The strategic authority will be established on the day after the day on which the instrument is made. The inaugural mayoral election is due to take place on 4 May 2028, and the elected mayor will take office on 8 May 2028 for a four-year term.
The instrument makes provision for the governance arrangements of the strategic authority. Each constituent council will appoint two of its elected members to be a member of the strategic authority, with the mayor also a member once in office. The strategic authority can also appoint non-constituent and associate members to support its work. Each voting member is to have one vote, and the vast majority of decisions are to be determined by a simple majority of the members present and voting. Once the mayor takes office, that majority must include the mayor, or the deputy mayor when acting in place of the mayor.
The instrument provides some functions in relation to transport and economic development, but there is a strong link here with the English Devolution and Community Empowerment Bill. Subject to Royal Assent, the Sussex and Brighton strategic authority will be classed as a mayoral strategic authority and the functions reserved for that tier will automatically be conferred. Even before the mayor is in office, the strategic authority will be able to exercise mayoral strategic authority functions, with the exception of those that are specifically reserved for the mayor. That is why this instrument confers fewer functions than previous instruments establishing strategic authorities. The functions that it confers, focused around local transport and economic development, are designed to support the work of the strategic authority before the Bill is in force and enable it to deliver the benefits of devolution from day one.
MHCLG consulted on a proposal to establish the strategic authority between 17 February and 13 April 2025. The purpose of the consultation was to gather evidence and information on the effects of establishing the strategic authority. The consultation was promoted using social media, a communications campaign, a dedicated website, online and in-person events and distribution of consultation materials. Responses could be made online, by email or by post. They were received from a wide range of stakeholder groups, including members of the public, businesses, councils, universities, the third sector and other bodies. A summary has been published on GOV.UK. The Government carefully considered the responses and on 17 July confirmed to Parliament that the statutory tests to establish a strategic authority had been met.
Subject to the making of this instrument, the strategic authority will receive devolved funding. This will include devolved funding for transport and adult skills, capacity funding and a 30-year mayoral investment fund to support key local priorities.
To conclude, this instrument represents clear progress in our mission to widen and deepen devolution in England and will make this a reality in Sussex and Brighton. It will empower local leaders to deliver for their communities, improving the lives and opportunities of their residents. I hope noble Lords will join me in supporting the draft regulations, which I commend to the Committee. I beg to move.
My Lords, I thank the Minister for her introduction to this statutory instrument, one in a series of statutory instruments creating county combined authorities that we have discussed over several months.
I start with what the Minister said about the purpose of this statutory instrument: that the Government wish to “widen and deepen devolution”. We Liberal Democrats support devolution and have long advocated for it. However, the Secondary Legislation Scrutiny Committee noted in its report on this SI that of the more than 6,000 responses received from the public,
“71% disagreed that it would support … local communities”.
The SLSC asked, given that local opposition—the overwhelming majority of those 6,000 responses not in favour—how the Government will ensure that the mayor has a “firm democratic mandate” and that local residents are able to “engage” with the system. That seems to be fundamental for any devolution proposal—that it takes people with them. Clearly, from the response to the consultation, that is not the case. I hope that the Minister has some responses to that committee’s report.
The Government have given a formal response to the committee’s report, which included a commitment to future strengthening of scrutiny. As the Minister will know, every time we discuss this, I criticise the scrutiny arrangements in mayoral authorities as being totally inadequate for the range and depth of functions that the mayor will have. One of the easy ways to improve scrutiny would be by ensuring that pre-decision scrutiny is the norm. I wonder whether the Minister can give us any hope that this will be the case.
I have a couple of other points to make. The financing of the mayoral model—if I have read it right—is to be from the constituent councils until the mayoral elections. If that is the case, can the Minister quantify the financial call on the constituent local councils until that time?
The main concern I have is that the Government are proceeding with mayoral devolution alongside very significant local government reorganisation. Two major reorganisations in local government are taking place in that area, which will inevitably cause increased expenditure in the first instance. Establishing the different and new authorities will inevitably be a call on the constituent authorities’ finances. It will not all be funded by grants—it never is—and that will inevitably mean a call on financing of basic public services. Does the Minister agree with that?
Finally, the Government and the previous Government are very keen on the mayoral model, but at no point have we had an assessment or a review of its achievements and its failures. Looking across the metro mayors that have been established, there have been some notable successes. The bus transport system in Greater Manchester has been a success, but there are other parts of the country—looking towards the north-east of the country—where it has not been such an overwhelming success and great question marks have been raised about the way that the mayor and the authority have fulfilled their statutory requirements. It is important that the Government do a review and an assessment of the various mayoral models that have been instituted across the country.
I commend the Government on getting on with doing something on this agenda. I am a massive fan of mayoral authorities. If that is the price to pay to take power away from Whitehall and Westminster, it is a price worth paying. It could have been a bit cheaper, but nothing is cheap when you get it off the Government if the Treasury is involved with it.
I will ask a couple of questions. It will not start until 2028. That is unfortunate because 2027 is closer, so it would have been better if the department got its act together quicker, got the necessary work done and concentrated on those areas where it was doable. Sussex and Brighton are in a DPP area and are expecting an announcement on Wednesday this week about which of the six are likely to go ahead. There is money being laid now that it might be that five or fewer get announced. Do we know whether this is one area that will be announced? If it is going to be announced, do we know whether the constituent members are going to go from three to five? Does that mean that the council holding the ring on the pension pot will still be in existence after that process? If the constituent council is broken into more than one piece, where will the pension pot then sit?
Lord Jamieson (Con)
My Lords, I also thank the Minister for her introduction to these regulations. We on these Benches support the principle of devolution. As the Minister outlined, these regulations will establish a new combined county authority for Brighton, Hove, East Sussex and West Sussex under the framework set up in the previous Conservative Government’s Levelling-up and Regeneration Act 2023. However, there are some issues that merit closer scrutiny.
The noble Baroness, Lady Pinnock, has already raised the Secondary Legislation Scrutiny Committee’s comment on the consultation underpinning these proposals, which revealed significant public concern, particularly around the implementation of a mayoral model. A clear majority of respondents did not believe that such a structure would reflect local identities or deliver meaningful benefits. That raises an important question about how devolution is being delivered. If it is to succeed, it must carry public confidence. Does the Minister agree?
Secondly—I would welcome further clarification from the Minister here—there are questions about timing, funding and democratic accountability. The Government have been clear that they intend to establish mayoral strategic authorities in devolution priority programme areas as quickly as possible. Indeed, we are told that the legislation for Sussex and Brighton is already being progressed and that institutions will be set up with the consent of constituent councils. However, as my noble friend Lord Porter pointed out, at the same time the Government have confirmed that the inaugural mayoral elections in these areas have been delayed until May 2028. That is much later than originally planned and is accompanied with a delay to the full powers, such as strategic planning, CPO and, importantly, full mayoral funding, which will be only 40% of that originally promised in the interim. Parties had already selected their candidates and were preparing for an election, so why is the mayoral election being delayed? Why can the full funding not be implemented now? It was on that basis that the councils involved embarked on the devolution programme, but the Government are not fulfilling their end of the programme.
The justification offered for this delay is that it allows time for local government reorganisation and the establishment of robust institutions. That is a weak excuse. Having experienced devolution first hand, I know that previous programmes have been delivered to a tighter, clearer timetable without the need for constant postponement of elections or, more recently, their reinstatement. It creates an unusual and uncomfortable position. We are being asked to approve the creation of a new strategic authority, the transfer of powers to it and the establishment of an institutional framework without a directly elected mayor in place for another two years. In effect, structures of devolution are being put in place while the democratic leadership is deferred until later. Can the Minister clarify the interim governance arrangements and, in particular, who is ultimately accountable to the public during this interim period for the exercise of these new powers? We appreciate that this instrument does not in itself determine the timing of elections, but it is inseparable from that broader context, and it is entirely reasonable for this Committee to probe how these arrangements will operate in practice.
To be clear, we are supportive of the creation of the Sussex and Brighton combined county authority in principle, but we are aware that devolution must be locally supported and democratically grounded from the outset. Also, the terms of the deal with the residents of Sussex should not be changed half way through the process. On that basis, I hope that the Minister can provide some reassurance on how accountability will be maintained in the period before May 2028 and whether any consideration has been given to shortening that timetable. I also commend my noble friend Lord Porter on his important question regarding pensions and look forward to the Minister’s response on that.
My Lords, I thank noble Lords for their contributions and their broad support for the Sussex and Brighton authority, which I think is broadly welcomed in the local area.
The noble Baroness, Lady Pinnock, asked me about the 6,000 responses. The purpose of the consultation was to gather evidence and information on the effect of establishing a mayoral combined authority over that proposed geography. Unsurprisingly, respondents provided a range of views, including evidence setting out the potential benefits, as well as some concerns. The Government carefully considered the responses received. The results of the consultation formed part of the assessment made by the Secretary of State on the relevant statutory tests, as set out in Section 46 of the Levelling-up and Regeneration Act 2023. The Secretary of State’s decision was that those tests were met. It is not surprising that knowing how exactly this will work might have been a concern for some people, but I have looked at the evidence that came back and there was a pretty equal balance between the concerns and the things that people thought were a plus.
The noble Baroness mentioned scrutiny arrangements. I am not sure whether she was here the other day when we debated this on the English devolution Bill. The Government are bringing forward arrangements in that Bill to introduce local scrutiny committees with powers to scrutinise what the mayor is doing. Her noble friend Lord Shipley has raised this with me on a number of occasions, as he was concerned that those bodies should have powers to undertake pre-scrutiny. They will have those powers. This will be a powerful body to make sure that the mayor’s work gets scrutinised properly.
The noble Baroness and the noble Lord, Lord Jamieson, raised LGR and asked why the mayoral arrangements are not being put in place until the foundation strategic authorities have been set up. The Government’s carefully considered decision is that we need resilient and sustainable authorities in place, and then the mayors will be elected. That is how we are taking that forward.
On the noble Baroness’s point about the review of mayoral arrangements, there are a huge number of advantages to them. Mayors can use their mandate for change to take the difficult decisions needed to drive economic growth. They have standing and soft power to convene local partners to tackle shared problems, directly exercise devolved powers and attract inward investment. They also have a platform for tackling the obstacles to growth that need a regional approach. Mayors are accountable directly to their citizens and have the profile to stand up for them on the national stage. They are able to both partner with and challenge central government where needed. That partnering on the national stage is critical. We now have the mayoral council to enable the regions represented by mayors to sit around the table and represent them to national government, which is really powerful. We are seeing that voice being amplified for local people in many areas that already have mayors, including Manchester, which the noble Baroness mentioned, London and the West Midlands, as well as other areas that are still developing but nevertheless are exercising their mayoral role powerfully.
The noble Baroness also asked whether councils and taxpayers will fund the CCA. The Government will support with the costs associated with the new authority through capacity funding, and the authority will also receive its investment fund as well as devolved funding for specific functions such as transport and adult skills. Beyond the support provided by the Government, the budgets of strategic authorities and how any costs are funded will be a local decision. The extent to which the constituent councils need to contribute at all to the running of the authority will therefore be decided locally.
I thank the noble Lord, Lord Porter, for his comment about this being a price worth paying to get power out of Westminster. That has long been my view, and we have had many discussions about it over the years. First, on the pensions pot, we are still making decisions on how the LGR will be taken forward, but that has not yet been announced. The Government are considering those questions and will respond in due course, so the foundation strategic authorities will hold the ring on pension provision for now, until the mayors come into post.
The noble Lord, Lord Jamieson, asked why we cannot have mayoral authorities now. I think I have explained that we want to make sure that these foundation strategic authorities are on a firm footing before we bring in the mayoral arrangement. He spoke about democratic arrangements. Once they come into post, the mayors will be directly elected across the whole area. Nevertheless, representatives on the foundation strategic authorities have their own democratic mandate, because they will be nominated from the councils concerned.
On the funding that the strategic authorities will receive, we will support with the costs associated with the new authorities. Sussex and Brighton have received £1.5 million this year in capacity funding to help towards establishment, and will receive a further £7.5 million over the next three years to help with core running costs. They will also receive the 30-year mayoral investment fund once the mayor is in post, as I have said. That will be £38 million a year, £1.14 billion over the 30 years. They will receive a portion of this in the two years prior to the mayor being elected to support the early delivery of growth priorities, and will also receive other devolved funding such as for transport and adult skills.
It is essential that the benefits of devolution are not delayed, and that is why, in the interim period between the establishment of the mayoral strategic authority and the inaugural mayoral elections, we will provide the authorities with a proportion of their investment funds, so that they can start delivering on key local priorities and deliver some benefits ahead of the mayor taking office. The strategic authority will have a number of functions available in the interim period to enable and encourage investment in the area, subject to Royal Assent to the Bill. These include: the general power of competence, with the duty to develop a local growth plan and the power to borrow to an agreed cap; a health improvement and health inequalities duty; functions to acquire land, provide housing and build infrastructure, enabling it to make strategic interventions and support local growth ambitions; and responsibility for public transport and local transport planning, joining up the transport network across the region and helping people get to work, education and leisure activities.
In conclusion, this instrument delivers the commitment made with Sussex and Brighton to establish a combined county authority. I hope the Committee will welcome the regulations.
Lord Jamieson (Con)
When we have requested a timetable for devolution elsewhere, the Minister has said that elections in May 2028 would be held not only in the six priority areas but in a number of other authorities, as part of this devolution. I am slightly confused as, if there is a need for the six priority areas to have this period of time, having already started the process towards May 2028, how will those that have not even started the process be able to do it by then? By inference, if the others can do it more quickly, why can these not do it more quickly, so that we could have those elections earlier? My noble friend Lord Porter suggested possibly May 2027.
The time periods are quite compressed, as the next tranche of 14 areas will be decided before the Summer Recess. The decision-making is quite close together and it is up to us to make sure that we get these SIs through, so that the foundation strategic authorities are in place before the mayoral elections all take place in 2028.