Draft Combined Authorities (Borrowing) and East Midlands Combined County Authority (Borrowing and Functions) (Amendment) Regulations 2025

Luke Evans Excerpts

Wednesday 8th January 2025 General Committees

[Jim McMahon]

I do not want to say who has the largest number of mayors, but I do not think the shadow Minister needs me to remind him that there is only one Conservative mayor in the whole country, and in the smallest combined authority, as he knows. This is not particularly about rights and wrongs, and I suggest that it would be best not to stray towards the finances in the Tees valley.

As a point of principle in terms of democratic accountability, taxpayers have a right to know which elected official is spending money on their behalf and to be able to make a judgment about whether that money is used to best effect. Having that transparency is an important part of this democratic devolution project. I understand why the Opposition would want to make hay out of a precept and refer to it as a new tax; I would say the public are paying one way or the other and it is far better that it is transparent. I will leave that there.

This may be straying a bit too far from the SI, but we reject entirely any suggestion that devolution or reorganisation is top-down. Today, councils across England will meet to discuss whether they want to make their own submission ahead of the deadline this Friday for local government reorganisation and/or devolution. They will decide whether it is right for them. They will decide who they want to work with and whether they want reorganisation in some places, potentially with devolution with a mayoral combined authority. Some might decide that they are not in a position to join a mayoral combined authority but want to take the first step to a foundational agreement that begins that journey. That is not top-down; that is local areas working together to self-organise, and a Government who are facilitating that devolution. In the end, if we do not get power away from this place, we will not allow every part of our country to realise its full potential. Areas will always be at the behest of the Government, and that cannot stand.

[Dr Luke Evans (Hinckley and Bosworth) (Con)]

I declare an interest as a Leicestershire MP. Leicestershire looked at joining the East Midlands combined county authority but decided not to. Given what the Minister said about this Friday, if Leicestershire decided that it wanted to go into D2N2, would we need further legislation to change the borrowing that is set again, and a further SI to add that in, or is there a mechanism lined up so that county authorities can join mayoralties without the matter having to come back to Parliament?

[Jim McMahon]

I am not sure that I entirely understood the question, but this SI is about new member councils joining an existing combined authority. Any member council can join, but its membership would need to be confirmed by secondary legislation, not least because in some places functions are exercised by the local authority as a member of a combined authority, rather than by the combined authority directly. The whole thing needs to be reconciled taking into account its new membership. Leicestershire has huge economic and social potential, but without devolution it will not realise its full potential and will get left behind. I do not know whether Leicestershire is making a submission on Friday, but I sincerely hope that it will. I encourage the hon. Gentleman and other hon. Members present to speak to their local authorities and encourage submissions.

The regulations confirm the commitment made in devolution agreements with the York and North Yorkshire combined authority, the East Midlands combined county authority and the North East mayoral combined authority to provide them with borrowing powers against their functions. Providing borrowing powers will provide all three authorities with the opportunity to invest in their services and functions to the benefit of those who live and work in their geographies.

The regulations will also ensure that the East Midlands combined county authority can operate as its devolution deal intended, by conferring the east midlands constituent councils’ general power of competence for economic development and regeneration on the combined county authority, and by ensuring that amendments are made to allow the combined county authority to operate robustly and effectively. I am confident that the regulations will give the authorities the tools to shape their futures, driving growth and higher living standards across their geographies. I commend the regulations to the Committee.

Question put and agreed to.