Greater Manchester Combined Authority (Functions and Amendment) Order 2019

Lord Stunell Excerpts

Tuesday 2nd April 2019 Lords Chamber

In short, when the order is approved and made—it has already been approved in the other place—it will drive real improvement in how the residents of Greater Manchester move around the region using buses, trams and trains in a truly integrated way. This integrated transport system, fit for the 21st century, will help drive growth across not only Greater Manchester but the whole of the northern powerhouse. I therefore commend this draft order to the House.

[Lord Stunell (LD)]

My Lords, I am very pleased to contribute to this debate. I represented one of the constituencies in Greater Manchester for 18 years, and served on one of its councils—Stockport—for eight years. Although I will make comments, ask questions and seek reassurances from the Minister, my view is that this Motion should be agreed. I am grateful to Transport for Greater Manchester for the briefing it has supplied to me and, I am sure, to other Members of the House.

It might be helpful, however, to remind noble Lords how we got here. The 10 local authorities have a history of vigorous rivalry stretching back more than 100 years: in sports, obviously, but also in civic matters—which is why we have an outstanding collection of amazing town halls, of which Manchester’s, which most closely resembles this building, is the one that your Lordships will be familiar with.

A less positive side of that history is that for many years, and in many places, zero-sum politics has been played between the different authorities. It is very much to the credit of the leadership of the local authorities in Greater Manchester that, over the past 15 or so years, zero-sum politics has been replaced by co-operation and joint working on an increasing scale.

The new working arrangements which have been developed, first in the local democracy Act 2009 and then in the moves by the coalition to start the combined authority on its current route, have been very much in response to co-operative working, rather than being pushed upon those councils. It is extremely important in implementing this order to retain that bottom-up push for devolution, rather than imposing a solution on any or all of the local authorities and civic societies. That requires the careful balance of different interests which is in place at the moment. This is very much admired, not just in the UK but around the world. Greater Manchester has a constant stream of visitors from other cities and regions asking how it was done and how they can emulate it.

I regret that in 2016 the new Conservative Government imposed a mayoral model, which makes some of this consensus working more difficult. However, in the policy framework we have at the moment, we have to get on with it and make the best we can of it. When the combined authority was set up, the 10 local authority leaders were unanimous in rejecting the mayoral model, which is why it did not come in in 2011, during the coalition period. The current Government, as well as imposing the mayoral model, has not always had a consistent view about what the outcomes should be. I was pleased to hear the Minister mention the northern powerhouse, but he skipped over the fact that the attempt by Greater Manchester Combined Authority to have a handle on the allocation of the Northern Rail franchise was not accepted; indeed, Transport for the North has also found it difficult to get the leverage it believes is important to make sure that transport investment goes to the right place.

The order gives important expanded powers—not just expanded functions but expanded powers of taxation. My questions, and the reassurances I seek, are very much focused on how the mechanics will work and how the admirable pattern of co-operation, joint working and decision-making that we have in Greater Manchester at the moment will be entrenched, emphasised and enhanced in the new order. Crucial to this will be, first, the operation of the mayor’s powers to appoint members of the new joint transport committee and, secondly, his capacity to delegate those decisions. There are two big issues there at the moment, and probably others as well: the whole bus franchising issue, and smart ticketing.

The joint transport committee clearly has to have broad geographical representation. It needs to have expertise and be representative of the various strands of political opinion and thought in Greater Manchester. It is important to look at that, but also at the actual delegation of decisions which are going to be handed to it. You clearly need people on the committee with local knowledge, and people who are able to evaluate—and possibly have a hand in agreeing—what the tax and precept-setting power should be and how it should be exercised.

That brings me to my first question on the big issue of the taxation trap. The £86.7 million is currently raised on a per head basis. Any additional precept will be raised on the basis of house value, through the council tax system. To quote from the brief provided to me by Transport for Greater Manchester:

“One of the effects of the above is that councils with a high council tax base relative to their population benefit from expenditure being financed through a levy or statutory contribution, whereas councils (and their council tax-payers) with a low council tax base relative to their population benefit from expenditure being funded through a mayoral precept. The effect of switching from a levy to a precept produces significant winners (e.g. Manchester) and significant losers (e.g. Trafford)”.


It might just as well have also added: “e.g. (Stockport)”. In other words, the power to raise the precept will have a differential impact on the different boroughs within Greater Manchester.

The formula is described in the paper as requiring the “unanimous approval” of the 10 councils for it to be varied. What is the mechanism for actually raising the precept as opposed to changing the formula? Will it be via the mayor’s decision-making? Will it be via the new joint committee by majority? Will it be via the new joint committee by unanimity? Or will it require all the councils to reach a unanimous decision? Who will call the shots in the decision-making that lies ahead?

Linked to this is a consideration of the make-up of the committee itself. The present oversight committee—the Transport for Greater Manchester Committee—has 33 members. Under the new order, a committee with the same name but extra powers will be reduced from 33 members to 23. They will consist of: a representative of each council, except for Manchester, which will have two; an appointment by the Greater Manchester Combined Authority, which sounds as though it would be a council leader chosen collectively; an appointment by the mayor, which could mean that the mayor himself or an appointee of his will chair it; and 10 appointments from a pool of councillors who would be from the 10 authorities and representative of the political opinion across Greater Manchester. To quote again from the briefing of TfGM:

“Such appointments must ensure that the political balance on the joint committee reflects the political balance of councillors across GM and will be made in accordance with the preferences proposed by the three main political parties. This will be reflected in the Operating Agreement which will be agreed by each District”.


The Minister mentioned the parallel change in the rules whereby in future a number of decisions which can be taken simply by a majority of councils will be subject to the seven out of 10 rules. I certainly welcome that as making sure that there is a broad consensus, but does he understand and agree with the importance of delivering the same element in this order as far as that committee is concerned? What consideration was given to making that process easier to deliver by retaining the membership at its existing size of 33, rather than 23, which would allow two councillors from each authority to be appointed and make the questions of proportionality and representation easier to meet?

The joint working and co-operation of local authorities across Greater Manchester has been hard won and is now a model which many others seek to copy and which some, such as those just across the Pennines, have sadly failed to achieve. In giving assent to this order, I hope that noble Lords will share in our belief on these Benches that its operation must enhance that joint working and in no way become a lever to return to the bad old days of zero-sum politics.