Draft East Midlands Combined County Authority Regulations 2024

Jacob Young Excerpts

Wednesday 7th February 2024 General Committees

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Jacob Young)]

I beg to move,

That the Committee has considered the draft East Midlands Combined County Authority Regulations 2024.

It is a pleasure to serve under your chairmanship, Mr Robertson. The draft regulations were laid before the House on 18 December 2023 and provide for the imple-mentation of the devolution deal agreed between the Government and Derby City Council, Derbyshire County Council, Nottingham City Council and Nottinghamshire County Council on 30 August 2022. Since then, my officials have been working closely with the councils on implemen-tation, and on 15 December 2023 the four constituent councils consented to the making of the regulations.

The regulations will establish the east midlands combined county authority and the office of a mayor for the area. This will be the first of a new type of local government institution—the mayoral combined county authority—made possible by the Levelling-up and Regeneration Act 2023. The essential feature of a combined county authority is that only upper-tier authorities—that is, county councils and unitary authorities—can be constituent members of the combined authority, with a requirement that there must be at least two constituents. The central feature of the east midlands combined county authority is that there is to be a directly elected mayor for the area. The mayor will provide the single point of accountability that is essential for the powers and budgets that are to be devolved.

The regulations provide for the first mayoral election to take place on 2 May 2024. The elected mayor will then take up office on 7 May, with a four-year term ending after the next mayoral election in May 2028. Thereafter, there will be elections every fourth year on the ordinary day for elections—that is, the first Thursday in May.

The regulations also make provision for the overall governance arrangements of the combined county authority. Each constituent council will appoint two of its members to the combined county authority, making eight constituent members in total, in addition to the mayor. The mayor will be the chair of the east midlands combined county authority and will appoint a deputy mayor from one of the constituent members. The combined county authority may in addition arrange for there to be up to eight non-constituent or associate members. It is the intention of the east midlands authorities that the district councils should nominate four non-constituent members.

The combined county authority will be established on the day after the date on which the regulations are made. Until the elected mayor takes office, it will be for the constituent members to decide how they will conduct business, including the arrangements for chairing any meeting.

The regulations confer significant functions on the combined county authority, as agreed in the devolution deal, and provide that the combined county authority will become the transport authority. As required by the 2023 Act, alongside the regulations we have laid a section 20(6) report, which provides details about the public authority functions being devolved to a combined county authority. Certain functions conferred on the combined county authority are to be exercised only by the mayor.

In addition, the mayor will have powers to issue a precept, if they so choose, to cover the cost of mayoral functions that are not met by other resources available to the combined county authority. These costs must be agreed up front with the constituent council prior to any costs being incurred. The devolution deal provides for the devolution of certain education and skills functions, together with the adult education budget. As agreed with the area, further regulations for those functions will be introduced later this year with the aim, subject to Parliament’s approval, of the combined county authority being responsible for those functions from the academic year 2025-26.

The regulations will be made under the Levelling-up and Regeneration Act 2023. As provided for by the Act, the councils of Derby, Derbyshire, Nottingham and Nottinghamshire consulted on the proposal to establish the combined county authority based on the east midlands devolution deal. They promoted the consultation by a number of means, including a dedicated website, two online events in which residents and stakeholders could make their views known, and a communications campaign. The councils also undertook stakeholder engagement with businesses, the voluntary sector and key institutions in the east midlands. Responses could be made online or directly by email or paper. The public consultation ran from 14 November 2022 to 9 January 2023, with a total of 4,869 respondents.

In laying the regulations before Parliament, the Secretary of State is satisfied that the statutory tests in the 2023 Act are met. Those tests are that the constituent councils have consented to the establishment of the combined county authority; that no further consultation is necessary; that conferring the proposed powers would be likely to improve the economic, social and environmental wellbeing of some or all of the people who live or work in the area; that conferring the powers would be appropriate, having regard to the need to reflect the identities of local communities and to secure effective and convenient local government; and that establishing the combined county authority will achieve the purposes specified in the constituent councils’ consultation.

Most importantly, the making of the regulations opens a way to providing the considerable funding for the area set out in the devolution deal. The combined county authority will have control of an investment funding allocation of £38 million a year over the next 30 years, to be invested by the combined county authority to drive growth and take forward its priorities over the long term. The combined county authority will also have access to £17 million for the building of new homes on brownfield land, which will be available in 2024-25 subject to sufficient eligible projects for funding being identified, and £18 million of capital funding to support the delivery of housing priorities and drive net zero ambitions in the east midlands area. The combined county authority will plan and deliver the east midlands allocation of the UK shared prosperity fund.

I pay tribute to the local leaders and their councils for all they have done and are continuing to do to address local priorities and support businesses, industry and communities across the east midlands. Our mission to level up and boost economic growth throughout the country reaches yet another milestone. We have agreed 10 new devolution deals in the last two years, and now more than 60% of England is covered by a devolution deal. That means more money, more powers and more investment in the hands of local people. The regulations, which are supported locally, are a significant step forward for the east midlands. They are key to the future of economic development and regeneration in the area and will enable local leaders to effectively invest in and address local priorities. I commend the regulations to the Committee.

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[Jacob Young]

I am grateful to the hon. Member for Oldham West and Royton for his support. It should be said that the spending power of the respective constituent councils within the new combined county authority area increases by 7.4% for Derby City Council, 8.3% for Derbyshire County Council, 8% for Nottinghamshire County Council and 7.3% for Nottingham City Council. We are therefore increasing local funding and giving those councils the funding they need to deliver key services. The hon. Gentleman will be aware that Nottingham City Council issued a section 114 notice. I assure the Committee that such a notice does not affect the new combined county authority as it is a separate institution.

As I said, the regulations, which are widely welcomed by the people of the east midlands, are a significant step forward for the whole area, which includes two cities, large towns and rural areas. This step makes an important contribution to the Government’s levelling-up agenda.

[Lloyd Russell-Moyle (Brighton, Kemptown) (Lab/Co-op)]

The Minister makes good points and this is a welcome devolution deal. Will his Department consider the alternative devolution offers that other counties have put forward? At the moment, it is a one-size-fits-all mayoral option only. Conservative, Liberal, Green and Labour councils in Sussex have asked for a devolution deal that would cover three counties—East Sussex, West Sussex and Surrey—but with an assembly rather than a directly elected mayor. It is what we want but the Department has rejected it a number of times. Is it not time for the Department to think about more flexible forms of devolution that work for local areas but still provide all the benefits the Minister espouses?

[Jacob Young]

I am grateful to the hon. Gentleman for his point. He allows me to draw on the example of Devon and Torbay, in the same area as my hon. Friend the Member for Totnes represents. Just two weeks ago, I signed a level 2 devolution deal there, which does not include a mayor. I grant the hon. Member for Brighton, Kemptown that that deal does not include all the same functions as the one under consideration today, but it devolves power over the adult education budget, creates a new transport authority and puts the future of economic growth in Devon and Torbay in the hands of local leaders. We are keen to promote that throughout the country.

If the hon. Gentleman has examples of where he wants to see devolution in his area, my door is open. I am always happy to discuss the potential for devolution in Sussex and elsewhere.

[Anthony Mangnall (Totnes) (Con)]

The Minister mentioned Torbay, south Devon, Devon County Council and the new devolution settlement. I welcome what he says and the bespoke agreement we have. I will also say that any Members who want to come down and see how it is done are welcome—even the hon. Member for Brighton, Kemptown. Does the Minister agree?

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[Jacob Young]

I commend to my hon. Friend and the hon. Member for Brighton, Kemptown the fish from Brixham fish market, which I sampled on my visit to Devon just two weeks ago. It is some of the best fish in the country, but perhaps not as good as in Whitby.

Returning to my previous point, the regulations and the deal they implement will make a significant contribution to the future economic development and regeneration of the east midlands. They will empower local leaders to invest in local priorities. I commend the regulations to the Committee.

Question put and agreed to.