Draft Transport Levying Bodies (Amendment) Regulations 2018

Rachael Maskell Excerpts

Tuesday 24th April 2018 General Committees

[Rachael Maskell (York Central) (Lab/Co-op)]

The Cambridgeshire and Peterborough Combined Authority was constituted in 2017, and has responsibility for some transport functions. However, it is these regulations which need to determine how these functions will be paid for.

As two upper-tier authorities are involved—Cambridgeshire County Council and Peterborough Council—the regulations seek to levy revenue from these in the proportion of the previous year’s spend for the subsequent year. This sum will then be adjusted for the following financial year based on actual spend. The funding can be drawn from council tax or Government grants, while they exist.

There are a couple of issues that strike Labour concerning these arrangements. First, there should be a strategic transport plan which sets out a detailed plan for the Combined Authority. This should be budgeted and should articulate where year-on-year spend should occur. This could be significantly different from the approach being taken where there are assumptions of equivalence to previous activity. The proposed process risks reinforcing a previous year’s pattern of expenditure, and/or could result in an end-of-year readjustment where one council will owe, possibly a significant resource, to the other council. This does not appear to be a sensible or logical mechanism through which to determine expenditure, and will increase administration at the end of each year and possibly have a significant impact on other budgets.

Could the Minister say why the combined authorities do not just create a strategic plan, budget for such a plan and then determine the year-on-year levy from each local authority on the basis of that plan? While there may still be need for minor adjustments at the end of the financial year, it would result in less significant variances, and be more in tune with real-time, actual expenditure.

Secondly, it seems that the way transport devolution is being determined is leading to further fragmentation of the transport system, not least the absence of a guiding mind over the transport system. Areas of the country now have a complete spectrum of different powers, if any, and mechanisms for funding them. This is not only creating much confusion but is not lending to an improved transport system. When will the Minister bring forward a strategic plan for the transport system, which is long overdue?

Labour believes that transport demands long-term plans, good governance requires full budgeting processes, and the people of our country need to have greater certainty as to where their taxes are being spent. Labour will not be dividing the House over these regulations, but does want the Minister to respond to the concerns raised in this debate.