Local Government: Combined Authority Orders

Debate between Julian Smith and Brandon Lewis

Tuesday 18th March 2014 Commons Chamber

[Brandon Lewis]

The right hon. Gentleman’s question gets to the heart of the Localism Act 2011, which was about devolving power not only to local authorities but to local communities to empower people to get things done. If local authorities have further ideas about things that they want to do, I encourage them to come and talk to us. The Minister of State, Cabinet Office, my right hon. Friend the Member for Tunbridge Wells (Greg Clark) and I will be interested to talk to local authorities about what more we can do to empower them to develop economic growth and take their communities forward.

In each of the draft orders, we have considered the circumstances of the combined authority proposal that the councils have made, as the law requires, and we have concluded that it is right for us to pursue our localist policy in those cases. We have considered each proposal for a combined authority in the light of the statutory conditions set out in the Local Democracy, Economic Development and Construction Act 2009, under which any combined authority is established. Those conditions are that my right hon. Friend the Secretary of State must consider that establishing the combined authority is likely to improve the exercise of statutory functions relating to transport in the area; improve the effectiveness and efficiency of transport in the area; improve the exercise of statutory functions relating to economic development and regeneration in the area; and improve the economic conditions in the area. We consider that those tests are unambiguously met in each case.

In short, each combined authority will bring together decision making on the closely interrelated issues of transport and economic development, and will provide for more efficient, effective, and transparent decision making by councils, with their partners, across the whole of the functional economic area they serve. We consider that it is right to establish those combined authorities, having regard, as the 2009 Act requires, to the need to reflect the identities and interests of local communities and to secure effective and convenient local government. Further, we are clear that in each of the areas, the combined authority will command wide local support.

[Julian Smith (Skipton and Ripon) (Con)]

What consideration has been given to the impact on the communities that will be left behind when a local authority decides to get into bed with one of the new combined authorities?

[Brandon Lewis]

I appreciate the point that my hon. Friend is making, but nobody will be left behind. Other areas will be able to form their own combined authorities and develop their own economic growth, and we would encourage them to do so. I think that he is referring directly to the situation in York, which does not form part of today’s discussions; that debate will follow at a later date. There will also be a consultation process, and the people and businesses in York, as well as the local enterprise partnership, the local authorities and the Members concerned, will obviously want to feed into that process their views on the effects of the proposals on York, and on the benefits or otherwise of York being part of a combined authority. I have made it clear that we will facilitate opportunities for areas such as York to join a combined authority later. We are also ensuring that a local authority will be able to step away from such an arrangement if it feels right for it to do so.

[Julian Smith]

I thank the Minister for that full response. When he and his Department consider any application by York to join the new West Yorkshire combined authority, I urge him to consider carefully the impact that that would have on constituencies such as mine in Skipton and Ripon and on other rural areas that rely on their relationship with York.

[Brandon Lewis]

I can give my hon. Friend an assurance that we will give that matter our full consideration. One reason that the arrangements in York are not part of today’s orders is that we intend, before purdah, to lay the paperwork for a legislative reform order and to have a full consultation process, and I am sure that he and others will wish to feed into that process, offering views both for and against the proposals. Their views will be given full consideration.

We are clear that in each of these areas the combined authority would command good support from local businesses, from the local enterprise partnership, from other public bodies, from institutions such as the universities in the area and from local people and their democratically elected representatives. Accordingly, on the basis of our localist approach, we are seeking the approval of the House for these draft orders today—orders to which each of the constituent councils has consented. We are doing this on the basis of the information that we have about each proposed combined authority. That includes the governance reviews undertaken by the councils in each of the areas, as required by the 2009 Act if they are to propose a combined authority.

--- Later in debate ---

[Brandon Lewis]

Not at this stage, but I will happily look into it and write to the right hon. Gentleman.

My hon. Friend the Member for York Outer (Julian Sturdy) highlighted concern that York could walk away from North Yorkshire. As the Secretary of State and I said to him when we discussed this matter recently, we appreciate the circumstances. It will be important for York to continue to maintain a constructive partnership with North Yorkshire while it pursues its ambition for calibration with the neighbouring West Yorkshire councils, its natural economic partners. I understand that York is committed to that. However, my hon. Friend also raised the interesting possibility of a combined authority of a different construction. No doubt he will be putting forward that proposal soon.

[Julian Smith]

I welcome my hon. Friend’s commitment to ensuring that North Yorkshire does not lose out. May I urge him also to ensure that this attempt by York is transparent and open for consultation, and is not a gerrymandering deal as well as a city deal?

[Brandon Lewis]

I can assure my hon. Friend of that. There will be a full process including consultation and, as has happened today, the input of Members here in the House.

My hon. Friend the Member for York Outer also asked whether the non-constituent authorities would have to contribute to the costs of the combined authorities. I can tell him that they are not required to do that. They will have to contribute only if and when they become constituent members. Funding will be based on an agreement between the constituent authorities themselves and I stress the word “constituent”—or on a default agreement relating to the populations of the constituent authorities.

The right hon. Member for Knowsley (Mr Howarth) asked about the name of his combined authority. The names of the authorities have been agreed on and consented to by all the statutory consultees, but let me say in response to an issue that others have also raised that this is localism at its absolute purest. The authorities can choose whatever name they want, work under that name, brand it and “logo” it, and I wish them all the luck in the world.

Local Government Finance

Debate between Julian Smith and Brandon Lewis

Wednesday 12th February 2014 Commons Chamber

[Brandon Lewis]

In my experience, voters are pretty good judges of what is a good council as opposed to what is a bad council. We have already heard examples of councils that are doing really good work in transforming the way in which they deliver services and work together. I will come to that specifically in a moment.

We are continuing to encourage councils to grow their own economies. Last year’s transformation challenge award incentivised councils to rethink how they go about their business and to transform fundamentally the structure of their local services. Eighteen areas received a share of £7 million to jump-start innovative projects. Following this success, we will continue with the transformation challenge this year, and I will announce the terms and details shortly.

The expertise that councils have shared with other councils and the expertise being shared through the community budget pilots and the transformation network highlight the fact that this is the right approach. Authorities such as Staffordshire Moorlands and High Peak are showing that they can save about 18% by sharing management and working in a different way. Likewise, South Holland, Breckland and other councils around the country are working more innovatively.

[Julian Smith (Skipton and Ripon) (Con)]

Does the Minister agree that the Government’s £600 million-plus investment in rural broadband is another route for councils to make significant efficiencies?

[Brandon Lewis]

My hon. Friend makes a good point. The transformation of how we communicate, particularly through broadband, makes it possible to do many more things more efficiently and effectively, and it will no doubt continue to change how we deliver services and are able to work together across authorities.

The efficiency support grant has further incentivised transformation. The councils facing the largest spending reductions, many of which were in that position because they were abandoned by Labour’s reduction in the working neighbourhoods fund and left with a black hole in 2010, are now being given a leg-up towards making these savings through the transitional grant. I must declare my interest, as Great Yarmouth is one of the authorities that Labour left stranded. Authorities receiving the grant are protected by our safety net, which is bigger and stronger than last year. Despite some areas choosing to play politics with this—I am disappointed that Labour-run Great Yarmouth borough council refuses to follow the lead of other councils, sometimes even cross-party—councils such as Hastings and Pendle are doing some really good work on transforming things. Areas such as High Peak and Staffordshire Moorlands are working cross-party to share management and show the way to savings of about 18%. They are showing the way forward, and I hope that others will follow. Those in receipt of funding are making progress with their efficiencies, with many going a long way towards that, including many Labour-led areas. There is, however, more to do.

Oral Answers to Questions

Debate between Julian Smith and Brandon Lewis

Monday 17th September 2012 Commons Chamber

[Brandon Lewis]

None; every local authority is responsible for delivering growth in its area. With this plan, we have given local authorities the tools and the power to be part of driving economic growth, getting more people into work and ensuring that work pays.

[Julian Smith (Skipton and Ripon) (Con)]

I welcome my hon. Friend to his new position. Will he clarify in further detail the guidance to councils that have high numbers of pensioners in their communities?

[Brandon Lewis]

I thank my hon. Friend. He is right to highlight the issue of pensioners. We are protecting all their current rights.