(1 week ago)
General CommitteesIt is a pleasure to serve under your chairmanship today, Ms Hobhouse. I draw Members’ attention to my entry in the Register of Members’ Financial Interests as a local councillor.
I have just a few comments. The delay in elections for these local authorities was not really a choice for them; it was a mandate from Government. The Government’s White Paper set out their expectation for all two-tier areas, regardless of their personal views, to move to unitary structures. The Minister said that 21 areas have replied to the Government’s letter in support of that move, but the Government’s letter was intended to make them come forward with proposals. The Government have quite clearly said, “If you do not come forward with proposals for your area, we are going to do this to you.” They will introduce a managerial direction within the White Paper.
I think it is important that the record reflects the actual situation. First, there was no mandating, because this is about postponing elections to allow reorganisation; it is not about the reorganisation process itself. To be clear, 18 councils applied to have their elections postponed and we agreed to nine, because not all met the high bar that we have set. Also, to be clear, 24 of the 33 elections that were due to take place in May 2025 are going ahead as normal.
I thank the Minister for his intervention. However, if the Government’s White Paper sets out their expectation for two-tier areas to reorganise, those two-tier areas do not have a choice. They either get on that train and do what the Government are telling them, or they wait by the sidelines and get forced to do it by the Government. This is definitely a top-down approach, not bottom-up.
The decision to delay elections should not be taken lightly. Other Members have touched on this, but nine councils have asked for delays in elections because the Government are making them reorganise. What happens if they are delayed for longer than 12 months? When we were last in government, three areas were done over three years, so the Government are very ambitious in doing nine.
If we are to believe what is in the news about a 15% reduction in the civil service, how will the MHCLG cope and get those nine councils done within a year? As has been alluded to already, how will the MHCLG get consensus within the local area, and how will it take those councils through that process of reorganisation? The process should be thought about over a longer period of time, rather than rushed through over 12 months. I have concerns that some of these elections, which we may agree today should happen in a year, will actually need longer.
I also have concerns about what the Boundary Commission will do with these delayed elections, and its capacity to draw up new boundaries for whatever authorities come forward. We have touched on the half a million population figure; but I have seen very little evidence to show that that is an appropriate figure for a new authority. The Minister’s own authority is well below half a million people, so I do not understand where the Government have got that number from—I think they have just plucked it out of thin air.
Lastly, it has been suggested that, when we go through this process, there will be loads of money for local government, as local government will save millions of pounds. I ask the Minister to comment on this: Somerset council has gone through reorganisation to a unitary structure; it has asked the Government to increase council tax bills by 7.5%, which was accepted, yet it is still in financial difficulty. So if reorganisation is the answer to all of local government’s problems, why do we have a council that has just gone through the process still asking for extra money, and still in financial difficulty?
(2 months, 1 week ago)
General CommitteesIt is a pleasure to serve under your chairmanship this morning, Mr Mundell. Regulations were laid before Parliament on 26 November 2024 for Lancashire and for Devon and Torbay. The Hull and East Yorkshire Combined Authority Order 2025 was laid before Parliament on 4 December 2024, and the Greater Lincolnshire regulations on 11 December 2024. Although I recognise that combined authorities and combined county authorities are distinct legal bodies with different enabling statutory instruments, I hope Members will be content for me simply to use the term “the combined authorities” hereafter, unless there is a specific reason to separate them out.
To deliver on our manifesto commitment, in December 2024 the Government published the “English Devolution” White Paper, which sets out how the Government will widen and deepen devolution across England as part of our central mission to drive economic growth and improve living standards. These instruments are part of fulfilling the mission to move power out of Westminster and back to those who know their areas best. They are significant milestones in the devolution journeys of these four areas. The instruments provide for the implementation of the devolution agreements confirmed on 19 September 2024 between the Government and upper-tier councils in each of the areas concerned. On 18 November 2024, all the respective constituent councils consented to the making of these instruments.
The combined authority order will be made, if Parliament approves, under the enabling provision in the Local Democracy, Economic Development and Construction Act 2009. The three sets of combined county authority regulations will be made, if they are approved, under the enabling provision in the Levelling-up and Regeneration Act 2023. All four authorities will be established on the day after these statutory instruments are made. The Greater Lincolnshire combined county authority and the Hull and East Yorkshire combined authority have chosen to adopt a mayor for their authorities, with the inaugural elections taking place on 1 May this year. The elected mayors will take up office on 6 May, with a four-year term, and will take up their seats on the Council of Nations and Regions.
The statutory instruments make provision for the Government’s arrangements for combined authorities. Each authority has specific arrangements, enabled by either the 2023 Act or the 2009 Act and set out in these establishing instruments. In each case, the constituent councils nominate one or more of their members to form the combined authority, sitting alongside the mayor where one is being adopted. District council representation and input into the combined county authorities is determined locally within the framework provide by the 2023 Act. I know from conversations with local leaders, and through commitments they have made, that district councils will play a key role in ensuring the success of devolution in those areas.
The instruments confer public authority and local authority functions on the respective combined authorities, as agreed in their devolution agreements and set out in each area’s proposals. To accompany the order, we have laid before Parliament a section 105B report, as required by the 2009 Act; and we have laid before the House a section 20(6) report for the regulations, as required by the 2023 Act. The reports provide details about the public authority functions that are being devolved to these authorities. They include powers over transport and Homes England concurrent regeneration functions, as well as mayoral development corporation functions for the mayoral combined authorities. Additional funding will be available to the areas through the adult skills fund, which will be devolved to the combined authorities from the ’26-’27 academic year, as well as education and skills functions.
The Department for Education will work with the combined authorities to support their preparations and ensure that they meet the necessary readiness criteria, and we will legislate in due course when the Secretary of State for Education is assured that they are operationally ready and is satisfied that the required statutory tests have been met in each area.
As provided for in the enabling Acts, the constituent councils consulted on the proposals to establish the combined authorities based on their devolution agreements. Those consultations took place between December 2023 and March 2024 for periods of either six or eight weeks. Councils promoted the consultations using social media, communications campaigns, dedicated websites, and online and in-person events with the public. The councils also undertook targeted stakeholder engagement with businesses, the voluntary sector and key institutions in their areas. Responses could be made online via their website or email, on paper via the post or at dedicated events or collection points such as local libraries.
I can report that the necessary statutory requirements under the 2023 and 2009 Acts have been considered, and that the authorities preparing the proposals have provided the Secretary of State with a summary of the consultation responses when submitting their proposals to the Government in spring 2024.
I draw attention to my entry in the Register of Members’ Financial Interests. Some of the areas that we are looking at are still two-tier areas. Will the Minister outline the Government’s approach? Can two-tier areas create combined authorities, or is it the Government’s ambition that new combined authorities will be created only in areas that are wholly made up of unitary councils?
The hon. Gentleman makes a good point about how we manage the transition from where we are today to the situation under the English devolution Bill when it eventually becomes law. We have broad ambitions to widen and deepen devolution, which means that we do not wish to wait for the English devolution Bill to be in place. The expressions of interest that we had had by the deadline last week showed that there is significant interest among local areas that want both reorganisation and devolution. There will be a streamlining of the process between devolution and reorganisation, in which a two-tier area could apply to become a combined county authority today and go through reorganisation, and convert to a combined authority in a single-tier system when that reorganisation has taken place. Those arrangements are transitional. Ultimately, by the time the devolution programme has finished, we expect that in most areas, if not all, the two-tier system will come to an end, with unitary councils forming that combined arrangement.
In laying the draft instruments before Parliament, the Secretary of State is satisfied that the statutory tests under the 2009 and 2023 Acts are met, namely that the constituent councils have consented to the establishment of the combined authorities, that no further consultation is necessary and that making the instruments would be likely to improve the economic, social and environmental wellbeing of some or all of the people who live or work in the area; would be appropriate, in having regard to the need to reflect the identities of local communities and to secure effective and convenient local government; and, in establishing the combined authorities, will achieve the purposes specified in the constituent councils’ proposals. The making of the draft instruments will shift money from central Government to our regions, as set out in their devolution agreements. That includes capital funding for each area and mayoral investment funds for the areas that choose to adopt a mayor.
I personally thank the local leaders and their councils for their hard work and the vital role they play in making the Government’s critical mission to widen and deepen devolution a reality in their areas. I commend the draft instruments to the Committee.
(2 months, 2 weeks ago)
Commons ChamberUrgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
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When my hon. Friend said he got the Avanti train down on 5 July, I think the Chamber was half expecting him to say that he had only just arrived, but he has been here for some time.
I know there are different views in Lancashire on what a good outcome looks like, and there are certainly different views on what a good process looks like, but I think there is a shared view that the time has come for devolution in Lancashire. When people look to Greater Manchester and the Liverpool city region, and see that Cumbria and Cheshire are organising to be part of the next stage, of course they want to be part of that. Lancashire is unique, in that we were already in discussions with it about its timetable and process. The level 2 agreement that is in place of course comes with investment, funding and other powers. Lancashire has agreed that by autumn, it will submit proposals to the Government that reconcile its organisational status; it will also bring forward a plan to move forward with a mayoral combined authority. Lancashire took the view that given that the timetable was already in place, it did not need to request that the election be cancelled.
To be clear, we absolutely see Lancashire as part of our priority work. It is critical. The prize for the north of England is completing the work on Cheshire, Lancashire and Cumbria, so that the whole north of England has mayoral devolution. That will be game-changing.
I draw Members’ attention to my entry in the Register of Members’ Financial Interests.
In the devolution White Paper, the Government set half a million people as the appropriate size for these new councils. Can the Minister therefore rule out creating big super-councils that represent more than a million people? Will he meet me to discuss devolution and local government reorganisation in Hertfordshire?
It is important that the Government set out the framework. We were very directive in the White Paper about our view on reorganisation and devolution. In every conversation we had with the LGA, the County Councils Network, the District Councils Network and others, we heard that the worst outcome would be the White Paper speaking to an issue without going close to clarifying what outcome we want. The response to the priority programme has been reflective of that clear direction.
We were up front in saying that, for efficiency, new unitary authorities should have a population of around 500,000, but we also made it clear that if the reorganisation went hand in hand with devolution, a degree of flexibility would be needed to make sure we balanced strategic oversight of the combined or strategic authority with the local identity and sense of belonging that people need. I also make it clear that it does not matter whether we are talking about councils going through reorganisation, or about existing councils and metropolitan authorities, be they in London or the north of England. Wherever they are, we expect councils to organise their neighbourhoods and communities, local public services and democratic engagement so that people feel more power in the place where they live.
(3 months, 2 weeks ago)
Commons ChamberWell, I am glad somebody was listening! There are huge opportunities in Lancashire. If we think about the work that has been done to secure a mayoral combined authority in Hull and East Yorkshire, and if we think about the opportunities in Cumbria, Cheshire and Lancashire, that completes the map of the north. Our leaders there are already self-organising through the Great North project, chaired by Mayor Kim McGuinness, to lead from the front on inward investment. It would be a shame, given Lancashire’s economic success, particularly on energy and other issues, if it is not part of that agenda. On the organisation, I think most people in Lancashire accept that, after 20 years or more of talking about it, the time had probably come. But it is for local areas to come together and have a plan that is right for their place, and to make a submission to the Government. It is not for the Government to redraw the map of England and impose it on every community. But our ambition is clear and the direction is clear: we absolutely welcome areas making that submission and we want to work towards more mayoral combined authorities.
I place on record my thanks to my two district councils, which I wholeheartedly support: Broxbourne and East Herts. Page 17 of the White Paper states that the Government want to create unitary councils of “500,000 or more”. What does “or more” mean? Does that mean I could end up with a “super council” for Hertfordshire covering 1.2 million people, which is not a proposal that I would support?
In some ways we have to give direction. What we heard during the consultation stage with local government—that includes, by the way, the County Councils Network and the District Councils’ Network—is that the more clarity on a framework that can be provided by central Government upfront, the better for local government to be able to organise. We are very clear that on an efficiency level—if the drive is for efficiency—the 500,000 is roughly the population needed to draw out those efficiencies. In the example that the hon. Gentleman gave, it would not be 1.2 million. It might be two or even three councils, because in areas in discussions about a mayoral combined authority, we have accepted—it is outlined in the White Paper—that there will need to be some flexibility in terms of scale and size of the local authorities that sit under it.