Gateshead and Sunderland join Durham pausing devolution deal

THE North-East’s devolution D-Day looked to have been dramatically postponed tonight (Wednesday), after two more councils refused to sign up to the Chancellor’s flagship offer.

Seven North-East councils had been expected to thrash out a final decision on Chancellor George Osborne’s Boris Johnson-style “metro mayor” package tomorrow (Thursday, March 24).

But after Gateshead threw the process into chaos by rejecting the offer outright on Tuesday (March 23), today (Wednesday) both Durham and Sunderland voted to postpone their decisions until further details are confirmed.

Now when the seven councils meet together tomorrow afternoon (Thursday), under the banner of the North East Combined Authority (Neca), they are expected to follow suit and demand more time.

That request is understood to have grudging agreement of the Government, which is focused on the EU referendum, its under-fire Budget and devolution deals for other regions.

Durham County Council leader Simon Henig said the Government had failed to deliver “fair funding” for hard-up North-East town halls or say whether the new North-East mayor would be able to levy taxes; and if the deal went ahead without safeguards it would be setting the region up to fail.

“This needs to be the right decision for the North-East. We need to take the time to get it right,” he said.

His deputy, Alan Napier, said no-one of “sane mind” would sign up until they knew what was going on.

But Newcastle, North Tyneside and Northumberland councils have already backed the deal.

The seventh and final council involved, South Tyneside, will discuss it tomorrow morning (Thursday).

Sunderland City Council leader Paul Watson said his cabinet had given its unqualified support for the principle of devolution and was “minded” to support the proposals, but added: “We will, in the extra time that has been granted by Government, be seeking further clarification on some details before a decision in the week beginning Monday 9 May.”

Conservative businessman Jeremy Middleton, the only person to publicly declare his candidacy for mayor, warned the region risked being left behind. “This delay shows the impact Labour infighting is having on the devolution process,” he added.

The package on offer would see powers over economic development, skills, transport, housing and planning, plus a £30m-a-year investment fund, handed to a North-East mayor to be elected in May 2017.

Neca will meet at Durham’s County Hall tomorrow (Thursday) at 2.30pm.

A similar devolution package for the Tees Valley, carrying a £15m-a-year investment fund, has already been backed by its five councils, Darlington, Stockton, Middlesbrough, Hartlepool and Redcar and Cleveland.

http://www.thenorthernecho.co.uk/news/14379159.Two_more_North_East_councils_refuse_to_sign_devolution_deal/?ref=rss

Grimsby not happy about devolution

Devolution revolution – is it all it’s cracked up to be?

The Chancellor confirmed last week that a deal had been agreed for Greater Lincolnshire, with a collaborative agreement in place stretching from the Humber to the Wash.

It’s already been greeted with accusations of bribery and blackmail from Caistor and Market Rasen MP Sir Edward Leigh.

But the Government was keen to push its credentials this week, with the Department for Communities and Local Government (DCLG) more than obliging when the Grimsby Telegraph asked for a chat on the topic.

Getting hold of press officers, never mind a Secretary of State, can be a problem normally, but not so when it came to the big D-word.

And I didn’t even have to call the Communities Secretary – he called me, from his mobile and everything.

Secretary Greg Clark stressed that there were “no downsides” to this devolution deal with no erosion of the current set-up – only more powers on top of it all.

The man in charge of George Osborne’s “devolution revolution” said he had been so impressed with Lincolnshire’s offer that he decided to bump the announcement up the waiting list.

But even he recognised the deal had a “uniqueness”, with the industrial engine of the Humber combined with what is principally a rural county – a combination not everyone believes sits naturally.

‘Huge moment’

The likes of Grimsby MP Melanie Onn and Scunthorpe MP Nic Dakin had pushed for a Humber Estuary devolution deal instead, linking the South Bank with Hull and the East Riding, but North East and North Lincolnshire leaders turned their attention south.

What is interesting about this yellowbelly formation, uniting a population of one million people, is what a vast area it combines.

Stamford in south Lincolnshire is almost as close to London as it is Grimsby, but yet now the two will be tied economically after Westminster handed the county control over a number of functions, including transport, infrastructure investment, health care and even prison services.

“This is a huge moment for Lincolnshire,” said Mr Clark, an advocate for devolution for more than a decade.

“It is the first deal we have done with a predominately rural area. It has got the important local authorities along the South Bank of the Humber and that is what makes it unique – that large rural area combined with an important industrial area.

“It deserves huge congratulations on beating many other areas who had prepared bids, as it managed to get to the head of the queue.”

The bumper £450 million devolution investment – a cash pot of £15 million annually for the next 30 years – will come on the proviso that all ten councils agree to the terms which includes an elected metro mayor for the region. Think Boris Johnson but with less panache.

Advocates for the deal say it could boost the area’s economy by £8 billion, provide 29,000 jobs and see 100,000 homes built.

Will it be enough money?

But the deal was not without its critics.

Ms Onn said, when broken down, the money equated to £15 per person every year and questioned whether it was enough to deliver the growth promised.

Infrastructure projects cost a great deal of money.

The transformation of the A160 at South Killingholme into a dual carriage superhighway comes with a £90 million price tag, and even the Immingham bypass, costing nearly £8 million, would have wiped out half the county’s new devolution budget for the year.

But yet, if the heavy infrastructure spending does have to come out of the devolution fund, that same cash pot would have to still stretch to pay for healthcare improvements, the upkeep of courts and the upgrading of flood defences, however.

The question is, will it manage to finance it all?

Mr Clark argued that the pot of cash allowed the “super authority” to be more inventive with the money.

“It allows them (the Lincolnshire councils) to leverage other money from investors,” he explained as he cut in and out of phone signal while he rode a train to his next meeting.

“This is money that wouldn’t have been available to the area. Without the deal, it simply wouldn’t be there. It can be used intelligently to encourage more investment in the area.”

Lincolnshire acted ‘shrewdly’

When the deal was announced, Conservative Cleethorpes MP Martin Vickers said it had been imperative North East Lincolnshire got in on the act sooner rather than later as the devolution packages on offer were getting “less generous” by the month. …”

http://www.grimsbytelegraph.co.uk/Devolution-revolution-8211-s-cracked/story-28969214-detail/story.html

Durham defers devolution deal

A multi-billion pound devolution deal for the North East is on the ropes after ANOTHER council raised concerns over the proposal.

Durham County Council’s cabinet on Wednesday decided to defer making a decision, following Gateshead Council’s decision on Tuesday to reject it.

The two authorities had previously signed up to the programme, which could unlock £3.4bn in job creation and skills training cash.

Both authorities have said they support “genuine devolution for the North East” – but councillors have argued that they don’t believe what is being offered matches up to that.

Durham County Council leader Simon Henig told councillors that fair funding for the region needed to be in place to make the deal work, adding that more time was needed to get the deal right.

Gateshead leader Mick Henry blamed the politicians in Westminster for the lack of a breakthrough.

He said: “Government needs to think again about how to address the issues of the North East and how they are going to be seriously and properly fair to us.

“I think it’s a real shame that they seem to want devolution to take place but aren’t prepared to be open minded.”

On Thursday, the leaders of the seven councils which make up the North East Combined Authority will meet to discuss the proposals.

They will in effect have four options – turn down the deal, agree the deal, agree the deal with conditions attached, or delay the deal.

The North East Liberal Democrats have called for the decision to be deferred to allow for further negotiations.

A spokesman said: “We recognise many of the concerns expressed about the current deal, including the requirement for an elected mayor, and the lack of say afforded to the public on this decision.

“We believe a decision should be deferred to allow for further negotiations with Government and we encourage NECA to explore this with a view to establishing whether a better deal with wider support is possible.

“We call for urgent cross-party discussions on how the devolution deal process can be taken forward with greater consensus.”

http://www.chroniclelive.co.uk/news/north-east-news/north-east-devolution-deal-takes-11085019

Financial Times exposes devolution anxiety amongst Tories

George Osborne’s “devolution revolution” has become the latest Treasury policy to run into trouble in the face of Tory opposition, piling pressure on to the chancellor as the row over his Budget drags into a second week.
Launching the latest wave of devolution last week — which extended plans to counties and cities in the south of England — the chancellor said during his Budget speech that “the devolution revolution is taking hold”.

But just days later a Conservative-controlled council decided to reject the devolution deal that Mr Osborne claimed had been agreed.

Cambridgeshire County Council voted overwhelmingly on Wednesday not to accept the East Anglian plans proffered by the Treasury, making it the latest in a string of councils to knock back the chancellor.

Mr Osborne is understood to have postponed a planned visit to East Anglia to launch the devolution deal after the local doubts became clear. Cambridge’s city council had already demurred.

The chancellor is facing pressure from Tory MPs to revise his plans. They have urged him to send out a signal to local councils that he understands that the deal for Manchester — his flagship devolution project — does not suit all parts of the country.

Many councils and Westminster Tories are unhappy about the chancellor’s insistence that devolved areas must install elected mayors.

Another Tory-run county council, Hampshire, withdrew its support for a deal in the Solent area earlier this week, while Cumbria County Council turned down a devolution offer earlier this month.

Gateshead Council also rejected a devolution deal earlier this week, a decision which leaves a hole at the heart of the planned North-East Combined Authority and could see the wider area’s plans called off altogether.
That risk intensified on Wednesday when Durham council, whose leader Simon Henig is also chair of the Combined Authority, deferred a decision about whether it would participate in the deal.

The Sheffield city region is pressing ahead with plans for a mayor although three of the nine authorities declined to participate fully, meaning the mayor’s writ will not run there.

An aide to Mr Osborne said on Wednesday that it was up to local councils how they structured their devolution deals, but elected mayors “bring local accountability to a particular area, and is a successful model”.
“If they don’t want to go ahead with that structure, then they don’t have to,” she said.

Not all the devolution deals are in trouble: a deal with the West Midlands is expected to go ahead, while Manchester already has an interim mayor.
The councils still have time to revisit the offer from Westminster by renegotiating the deals’ terms. Steve Count, leader of Cambridgeshire County Council, said he would renegotiate and return to the council with “the best deal I can get”. The council has until the end of June to take up any further offer, he said.

One of the party’s most experienced figures, Lord Tebbit, said on Tuesday that “we do not need an elected mayor for East Anglia”. The plan would “only raise costs [and] introduce another layer of government”, he said.

Jonathan Carr-West, chief executive of the Local Government Information Unit, a think tank part-funded by local authorities, said that councils voting against the devolution deals they were meant to be part of “reveals a fragility in the process”.

The secrecy surrounding the deals and last-minute changes driven from central government “have left many councils feeling bounced into deals they are not convinced by”, he added.

Individual local authorities risked finding themselves isolated and financially exposed if they were left out of successful combined authorities, but if enough councils voted against deals “it risks derailing the whole devolution agenda which we desperately need to improve public services and grow local economies”, Mr Carr-West warned.”

http://www.ft.com/cms/s/0/3b859fec-f0f8-11e5-aff5-19b4e253664a.html

Who might be Mayor of Ply-Tor-Dev-Set?

We have Leaders of Plymouth, Torbay, Devon and Somerset all probably quite sure they should be MegaLeader. Add to those district council leaders such as Diviani, who have ideas above their station, and it becomes a heady mix!

Of course, an Independent could pop up, maybe someone already in good standing or a known campaigner with a broad appeal.

No, Owl will not be standing – sorry! Though, of corse, Owl could change its mind …

“Idiotic idea” of Mayor for East Anglia

“County councillors have sent a clear message to the Government that its current devolution deal was “not acceptable” – with a powerful new mayor for the region opposed by politicians on all sides.

There was an almost unanimous vote of approval at Shire Hall yesterday for a motion that said the devolution proposal for Cambridgeshire, Norfolk and Suffolk “is not acceptable to this council” in its current form.

Councillors stopped short of killing the deal dead altogether, with an amendment by Cllr John Hipkin ensuring Cambridgeshire remains at the negotiating table with Whitehall.

But the bulk of councillors who spoke on the issue in more than two hours of debate left their fellow councillors in no uncertain terms that they were against the deal.

There was a general consensus across the chamber that devolution should be welcomed in principle – but the subject of a directly elected mayor across all three counties and 23 councils gained no support.

And this looks like being the key issue in the devolution debate, with UKIP leader Cllr Paul Bullen telling councillors yesterday that council leader Cllr Steve Count had informed group leaders the mayor aspect of the deal was non-negotiable.

Labour, Lib Dem and UKIP councillors in particular all suggested a devolution deal covering Cambridgeshire and Peterborough made more sense – with Cambridge City Council willing to share its considerable lump of business rates if a deal can be agreed across this geography, Labour leader Cllr Ashley Walsh said.

“This is a shotgun wedding and George Osborne hasn’t even had the decency to take us out to dinner beforehand,” Cllr Walsh added.

“You would have more chance of finding the Fenland tiger than someone who supports a regional mayor across East Anglia.”

Lib Dem councillor Lucy Nethsingha said the deal looked as if it had been “drawn up on the back of a cigar packet in the Treasury” and had “very little to offer Cambridgeshire”; Cllr John Williams said it was an “idiotic suggestion that you can have one person running the infrastructure for this area”, while Cllr David Jenkins said the council “should be selfish and look after the interests of Cambridgeshire” rather than partnering with Norfolk and Suffolk. …”

http://www.cambridge-news.co.uk/County-councillors-parties-voice-concern-8216/story-28972131-detail/story.html

Devolution continues to cause chaos

Chesterfield Borough Council has called a second meeting to consider its devolution options, in what the local authority says is “a bid to prevent tax payers’ money being wasted on an unnecessary legal challenge”.

The move comes after Derbyshire County Council earlier this month said it had taken legal advice from a QC about legal action over Chesterfield’s plans to join the Sheffield City Region as a full member.

Chesterfield also intended to become a non-constituent member only of a potential North Midlands devolution deal, of which Derbyshire is part.
According to Chesterfield, the county council had demanded that the borough council reconsider its decision, on the basis that the report which councillors originally considered should have included an equality impact assessment.

Chesterfield said its report followed a similar format as every other district and borough council in Derbyshire which took devolution deal decisions, and no other council – including the county – had published an EIA. It noted that Derbyshire had only issued a legal challenge against Chesterfield.

The second meeting will be held at 5 pm on 6 April.

Cllr John Burrows, leader of Chesterfield, said: “The only people who benefit from judicial reviews are the barristers presenting the cases. We could have opposed this legal challenge but that would have cost Derbyshire’s tax payers a lot of money and wasted a huge amount of time and effort.

“So we have decided to look afresh at our 3 March decision but this time taking into account the full Equality Impact Assessment that we have now developed and other developments that have happened since the original decision was taken, including the decisions taken by other councils across Derbyshire.”

Cllr Burrows added: “The council will then make a fresh decision on what delivers the best outcomes for both Chesterfield and Derbyshire’s residents and businesses. This will then go to public consultation before the Government makes a final decision.”

http://localgovernmentlawyer.co.uk/index.php?option=com_content&view=article&id=26418:chesterfield-calls-second-meeting-in-bid-to-see-off-legal-action-over-devolution-plans&catid=59&Itemid=27

LEP statistics – not good news

These were in notes for Editors but are too important to languish in notes:

Notes for Editors
39
Number of Local Enterprise Partnerships (LEPs) in England

£12bn
Local Growth Fund available to LEPs between 2015-16 and 2020-21

Up to 419,500
Jobs to be created by LEPs’ Growth Deals according to LEPs

£7.3 billion
Amount of the Local Growth Fund which has been allocated as of March 2016

£2 billion
Annual funding to LEPs from the Local Growth Fund from 2015-16 to 2020-21

£627.5 million
Largest Growth Deal awarded to a single LEP: Leeds City Region

45% to 80%
Range of private sector board membership in LEPs

87%
Percentage of LEPs for which we were unable to obtain information on senior staff remuneration from publicly available accounts.

68%
Estimated real-terms reduction in local authority net expenditure on economic development between 2010-11 and 2015-16

42%
Of LEPs say that they do not publish a register of interests

49%
Of LEPs agreed or strongly agreed that there are clear lines of accountability from the LEP to the local electorate

£85 million
Estimated underspend on Local Growth Fund projects for 2015-16

5%
Percentage of LEPs agreed or strongly agreed that resources available to LEPs are enough to meet the expectations placed on them by government

8
Median number of full-time equivalent staff employed by LEPs.

https://www.nao.org.uk/press-releases/local-enterprise-partnerships/

National Audit Office raises concerns about Local Enterprise Partnerships

Nice to see that the NAO agrees with Owl!

“The role and remit of Local Enterprise Partnerships has grown significantly and rapidly since 2010, but as things stand, the approach taken by the Department of Communities and Local Government to overseeing Growth Deals risks future value for money, according to the National Audit Office.

The government encouraged the establishment of LEPs as private sector-led strategic partnerships which would determine and influence local growth priorities. With the advent of the Local Growth Fund, the amount of central government funding received by LEPs is projected to rise to £12 billion between 2015-16 and 2020-21 via locally negotiated Growth Deals. The Department, however, has not set specific quantifiable objectives for what it hopes to achieve through Growth Deals, meaning that it will be difficult to assess how they have contributed to economic growth.

Today’s report found that LEPs themselves have serious reservations about their capacity to deliver and the increasing complexity of the local landscape. To oversee and deliver Growth Deal projects effectively, LEPs need access to staff with expertise in complex areas such as forecasting, economic modelling and monitoring and evaluation. Only 5% of LEPs considered that the resources available to them were sufficient to meet the expectations placed on them by government. In addition, 69% of LEPs reported that they did not have sufficient staff and 28% did not think that their staff were sufficiently skilled. The NAO found that LEPs rely on their local authority partners for staff and expertise, and that private sector contributions have not yet materialised to the extent expected.

In addition, there is a risk that projects being pursued will not necessarily optimise value for money. Pressure on LEPs to spend their Local Growth Fund allocation in year creates a risk that LEPs will not fund those projects that are most suited to long term economic development. Some LEPs reported that they have pursued some projects over others that, in their consideration, would represent better value for money. LEPs have also found it challenging to develop a long-term pipeline of projects that can easily take the place of those that are postponed.

The Department has acted to promote standards of governance and transparency in LEPs, and all 39 LEPs had frameworks in place to ensure regularity, propriety and value for money by March 2015. The Department, however, had not tested the implementation of such assurance frameworks at the time that Growth Deals were finalised. The NAO found that there are considerable gaps in LEPs’ compliance with the Department’s requirements in this regard, and that the availability and transparency of financial information varied across LEPs.

LEPs’ role has expanded rapidly and significantly but they are not as transparent to the public as we would expect, especially given they are now responsible for significant amounts of taxpayers’ money. While the Department has adopted a ‘light touch’ approach to overseeing Growth Deals, it is important that this doesn’t become ‘no touch’. The Department needs to do more to assure itself that the mechanisms it is relying on ensure value for money are, in fact, effective.”

Amyas Morse, head of the National Audit Office, 23 March 2016″

https://www.nao.org.uk/press-releases/local-enterprise-partnerships/

Police and Crime Commissioner election – request for candidates’ manifestos

Owl has received a manifesto from the Labour candidate for Police and Crime Commissioner. It will be published along with manifestos from other candidates as soon as received so that readers can compare and contrast submissions to enable them to decide who (if anyone) to support.