Draft Cornwall Council (Adult Education Functions) Regulations 2025 Draft East Midlands Combined County Authority (Adult Education Functions) Regulations 2025 Draft York and North Yorkshire Combined Authority (Adult Education Functions) Order 2025

Neil O'Brien Excerpts

Tuesday 1st April 2025 General Committees

[Neil O’Brien (Harborough, Oadby and Wigston) (Con)]

It is a pleasure to serve under your chairmanship, Ms McVey, and to have the draft statutory instruments being put into effect. The agreements were struck under previous Conservative Governments; as we agreed the devolution of powers, we will not pray against them.

I want to put the draft regulations and order into a little context, however, because the Government have just cut the adult skills budget by 6%—something that Ministers previously condemned the previous Government for, only to do exactly the same. We need to see devolution in that context and in that of the wider uncertainty created by Government about skills funding. For example, providers are crying out for certainty about the 10% uplift for T-levels. They want to know whether that will continue this year, but Ministers seem unable to tell them. Also, in the main Chamber yesterday, I quoted the British Chambers of Commerce and other employer organisations’ warning about the funding uncertainty for apprenticeships, with the Government’s plans to allow 50% of the money to be taken away to spend on other things. That is already causing real damage and leading to a reduction in hiring decisions, yet the uncertainty continues and the damage from the Budget likewise.

That is the context of the skills devolution. Earlier in the House, the Minister announced ongoing funding for special guardianship, after the money had gone out. When Ministers were dragged before the House was the point at which they made the decision—when they were literally a day overdue. I hope that we will not see the same thing in skills policy, because that would lead to real damage to skills in this country.

I want to ask the Minister a couple of specific questions, even though we agreed these devolution deals and welcome them. Firstly, what share of the budget will be devolved once all the already agreed devolution of adult skills spending is complete? The explanatory memorandum says that 62% of the ASF is already devolved. What share will that be once the devolution is complete, and what sum in total will be devolved to the delegated authorities once complete?

Secondly, obviously a very large part of the ASF is already bound up with statutory entitlements, which are listed at paragraph 5.6 of the policy context in the explanatory memorandum. Those who work in the mayoral combined authorities have said to me, “Look, you get this budget devolved to you, but you find that a lot of it is gone once you’ve funded those statutory entitlements, so you have less real flexibility than you might think.” What is the Department’s assessment of what proportion of the devolved budget, for those authorities where it is already devolved, goes on things outside those four statutory entitlements that are listed at paragraph 5.6? In a sense, what proportion of the budget is really devolved versus just going to a local level to be spent on nationally set statutory entitlements? How much of the money is really devolved?

With those questions in mind, I will not pray against these regulations, but I hope that the Minister will be able to tell me what devolution will really mean in practice.

--- Later in debate ---

[Janet Daby]

I thank the Committee members for their contributions to the debate, and I will endeavour to answer their questions. In response to the hon. Member for Harborough, Oadby and Wigston, currently 62% of the ASF is devolved to nine mayoral combined authorities and the Greater London Authority. If the statutory instruments are approved, they will receive devolved ASF from 1 August 2025. A total of 67.5% of the ASF will then be devolved nationally. The percentage change represented by each of the three areas is as follows: York and North Yorkshire 0.8%; east midlands 3.98% and Cornwall 0.76%.

I welcome what the hon. Member said. Devolution is about giving freedom to those who understand local needs best so that resources can be managed more effectively and deliver greater positive impacts for local people. The Government inherited a very challenging fiscal context, and we have had to make a small reduction to the overall adult skills budget for next year. However, we will still be investing £1.4 billion in the adult skills fund next year. It is in the region of 3% across the academic year, which equates to around £40 million.

Let me reiterate the important strategic role that devolution has to play in the growth of our economy. I recognise what the hon. Member for North Cornwall said, and I invite him to have further conversations with the Government on that.

[Neil O’Brien]

Could the Minister find out what proportion of the devolved ASF goes on statutory entitlements at the moment? That is the measure of whether this is really devolved. We all agree on the importance of devolution and so on, but is it real devolution or, in fact, are these devolved authorities ultimately having to spend money on things that we have decided? What proportion of the devolved budget is currently being spent on those four statutory entitlements?

[Janet Daby]

I outlined the areas that will be devolved, and I explained how much funding will be given for those devolved areas. The national statutory entitlement is to get the equivalent of GCSE level in maths and English, so that young people aged 19 to 23 have a second chance to get qualifications. Consultation has taken place in those three areas, and overwhelmingly, over 60% have confidence that the devolved money will be used for those local areas.

[Neil O’Brien]

It is entirely my fault that I did not explain clearly what I meant. We are in complete agreement about the policy, but what I am keen to understand from the Department—the Minister may need to write to me on this point—is: how much of the money that has already been devolved is being spent on statutory entitlements, and what proportion of it can, therefore, be spent on things that are not statutory entitlements? It is a question of fact rather than of great policy disagreement.

[Janet Daby]

I thank the hon. Member for clarifying that he is after the detail. I will endeavour to write to him with that information.

As the country responds to an increasing number of internal and external challenges, there can be no doubt about how reliant we are on a skilled and flexible workforce, and how important it is that we support all adults to become an active part of that workforce, to deliver our growth agenda. Devolving adult skills, functions and funding to the east midlands, York and North Yorkshire and Cornwall’s local areas will help to ensure that adult education provision is tailored to meet local needs and create the best conditions in which we can collectively deliver on these aims. I commend the order and the regulations to the Committee.

Question put and agreed to.

DRAFT EAST MIDLANDS COMBINED COUNTY AUTHORITY (ADULT EDUCATION FUNCTIONS) REGULATIONS 2025

Resolved,

That the Committee has considered the draft East Midlands Combined County Authority (Adult Education Functions) Regulations 2025.—(Janet Daby.)

Draft YORK AND NORTH YORKSHIRE COMBINED AUTHORITY (ADULT EDUCATION FUNCTIONS) ORDER 2025

Resolved,

That the Committee has considered the draft York and North Yorkshire Combined Authority (Adult Education Functions) Order 2025.—(Janet Daby.)