Greater Manchester Combined Authority (Functions and Amendment) Order 2016

Lord Beecham Excerpts

Wednesday 21st December 2016 Lords Chamber

[The Parliamentary Under-Secretary of State, Department for Communities and Local Government and Wales Office (Lord Bourne of Aberystwyth) (Con)]

My Lords, the draft order which we are considering, if approved and made, will provide Greater Manchester with new, devolved powers on: planning, land acquisition and housing; transport; education and skills; and cultural events and entertainment. It also provides for constitutional and funding arrangements.

The Government have, of course, already made significant progress in delivering their manifesto commitment to implement the historic devolution deal with Greater Manchester. Since the first devolution deal with Greater Manchester was agreed in November 2014 we have passed the Cities and Local Government Devolution Act 2016, which provides new powers for the Secretary of State, by order, to devolve to a combined authority a Secretary of State function and confer on a combined authority any function of a public authority. The 2016 Act also enables there to be strengthened accountability and governance for combined authorities, through enhanced overview and scrutiny arrangements and through new powers to establish, by order, the position of elected mayor.

In March 2015 we legislated to enable Greater Manchester to appoint an interim mayor, who is helping to provide additional leadership capacity and prepare for the further devolution of powers. Noble Lords will recall that in March this year we passed legislation to establish the position of elected mayor for Greater Manchester. The mayor will be elected in May 2017 and will also take on the role of the police and crime commissioner, with the separate elected position of PCC being abolished.

In the order we are considering today, we are for the first time conferring significant new powers on Greater Manchester. Some of these new functions are to be undertaken by the mayor individually and others will be undertaken jointly by the members of the combined authority. This is the first time that we are using the powers Parliament gave us in the Cities and Local Government Devolution Act 2016 to devolve Secretary of State and other public authority functions, and it will not be the last such order. More draft orders are already being developed to confer powers on Greater Manchester for planning, transport, policing and other issues. Implementation of the four devolution agreements made with Greater Manchester is truly under way.

For Greater Manchester, these agreements are a natural continuation of the devolution journey. Councils in Greater Manchester have been working closely together for decades, and through the combined authority established in 2011, Greater Manchester authorities have been working together formally on the interconnected issues of transport, economic development and regeneration. It was with Greater Manchester that the Government made the first devolution agreement in November 2014. The four deals now agreed between the Government and Greater Manchester mean that it will receive: a devolved transport budget and transport powers to help provide a more modern, better-connected network; new planning and housing powers, with a £300 million housing investment fund to provide up to 15,000 new homes over 10 years; new functions over skills and education, funding, incentives and support to get up to 50,000 people back into work; and an infrastructure fund of £30 million a year for 30 years.

Noble Lords will want to know that the statutory origin of the draft order before us today is in the governance review and scheme prepared by Greater Manchester in accordance with the requirement in the Local Democracy, Economic Development and Construction Act 2009. Greater Manchester published this scheme in March this year and, as provided for by the 2009 Act, the combined authority consulted on proposals in the scheme.

The combined authority ran the consultation from March 2016 to May 2016, in conjunction with the 10 local authorities. The consultation was primarily conducted digitally, including promotion through social media. In addition, of course, respondents were able to provide responses on paper, and posters and consultation leaflets were available in prime locations across Greater Manchester. As statute also requires, the combined authority provided to the Secretary of State in June a summary of the responses to the consultation.

Before laying this draft order before Parliament, the Secretary of State has considered the statutory requirements in the 2009 Act. The Secretary of State considers that conferring these functions on the Greater Manchester Combined Authority would be likely to lead to an improvement in the exercise of the statutory functions, and, in considering it appropriate to confer local authority powers on the combined authority and to make constitutional changes, the Secretary of State has had regard to the impact on local government and communities, as he is required to do. Also as required by statute, the 10 constituent councils and the combined authority have consented to the making of this order. As required by the 2016 Act, we have, in parallel with this order, laid a report before Parliament which sets out the details of the public authority powers we are conferring on Greater Manchester through this order. Noble Lords may recall that the requirement for this report was one of the additions that this House made to the 2016 Act during its passage.

This draft order now gives effect to many of the proposals in Greater Manchester’s March scheme. If approved and made, it will place a duty on the mayor to prepare a Greater Manchester spatial development strategy, enabling an integrated approach to spatial planning in the same way as in London. Councils will continue to prepare local plans and will remain responsible for local planning decisions. It will confer land acquisition, disposal and housing powers, including a compulsory purchase power for the mayor—the same powers as those held by the Homes and Communities Agency and councils. No powers are being taken away from councils. These powers will enable Greater Manchester to take a strategic approach to driving development and regeneration and stimulating economic growth, support effective use of the £300 million devolved budget and deliver up to 15,000 new homes.

The order will build on Greater Manchester’s current transport function, recognising that efficient transport is fundamental to securing economic, social and environmental objectives. The order provides powers on road safety promotion, road improvement and maintenance and for the mayor to pay grants to bus operators ahead of bus franchising as envisaged in the Bus Services Bill. It will confer new powers to reshape and restructure skills provision and support Greater Manchester to support young people to participate in education and training and to tackle its most important labour market challenge, which is youth unemployment. It will promote cultural events and entertainment and provide for constitutional and funding arrangements.

In conclusion, the Government are making great progress in implementing devolution to Greater Manchester. The draft order we are considering today is a further significant milestone that will contribute to greater prosperity in Greater Manchester and will open the door to a more balanced economy and economic success across Greater Manchester, the northern powerhouse and the country. I commend this draft order to the House.

[Lord Beecham (Lab)]

My Lords, the Minister is right to say that the Government are devolving significant new powers to Greater Manchester and perhaps to some other authorities as the process rolls forward. However, what they are not doing is accompanying the devolution of powers with anything like sufficient additional resources. The 10 local authorities in Greater Manchester will receive £30 million a year for 30 years for infrastructure projects. That is £900 million over 30 years. At the moment, these councils have suffered a loss of £1.7 billion a year in respect of their budgets. That is likely to rise to £2 billion a year across the Greater Manchester area by 2020. Far from meeting the needs of these authorities, £900 million over 30 years is really a flea bite in comparison with what those councils are having to contend with in terms of providing services.