Category Archives: Local Enterprise Partnership

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27 Jul 2016

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Accountability, Devolution, Hinkley C, Local Enterprise Partnership

Hinkley C doesn’t make sense

And yet our Local Enterprise Partnership and its devolution deal puts it at the heart of their plans – not surprising given the nuclear interests of several LEP members:

” … Hinkley C had been described as “the most expensive object on Earth” many months before the National Audit Office (NAO) revealed that subsidies would be nearly five times as big as had been previously advertised. The avalanche of subsidies has produced an ongoing state aid dispute with the UK launched by Austria, a new state aid investigation by the European commission into the reactor builder Areva, and a potential state aid dispute over France’s plans to make up EDF’s credit shortfall on the project.

Hinkley C has now become so uneconomic that it has been condemned in editorials in the normally pro-nuclear Times, Telegraph and Mail, and many EDF executives and employees think it might be a bad enough plan to completely destroy the state-owned utility.

On Thursday EDF’s board will make a widely trailed decision on whether to proceed with this “investment”. After years of delay, this unseemly hurry looks a bit like panic.

The tide has been turning against Hinkley ever since the problems at Olkiluoto in Finland and Flammanville in France, Hinkley’s elder siblings, became horribly apparent. Now, with a new UK government not so publicly committed to the project, EDF may be feeling that its chances of getting Hinkley built are likely to diminish even more quickly. Osborne seemed willing to countenance almost anything in his desperation to get his legacy built, but Philip Hammond might look at thte figures and the alternatives, and start looking for a way out.

To be clear, the Hinkley subsidies are not bungs to power brokers or inexplicable government largesse; Hinkley’s problems are so severe and so numerous that it requires potentially illegally high levels of state support in order for it to be built. Listing them all – the legal risks, the engineering risks, the liability risks, the credit risks, the safety risks – would take so long there would probably be some new ones before I’d finished. But they all spring from a reactor design, which has so far proved impossible to make work, and has even been described as “unconstructable” by an engineering professor.”

http://www.theguardian.com/environment/2016/jul/27/hinkley-point-c-no-more-than-doomed-attempt-face-saving?CMP=Share_iOSApp_Other

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25 Jul 2016

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Accountability, Devolution, Economy, Local Enterprise Partnership, Post-Brexit Adjustments, Transparency

South-West MPs much more worried about devolution deal than councillors or LEP

“Devon and Somerset councils are reaching a critical stage in their bid for devolved powers, as they decide whether or not to accept a new combined authority model.

All 17 councils involved in the joint devolution bid are required to vote on the proposals, before leaders can progress with negotiations over the summer. It is hoped this could see a deal announced in time for the Autumn statement – but there are concerns among MPs that the current bid lacks clarity.

South West Devon MP Gary Streeter, said he and fellow MPs “greatly recognise and applaud” the work that Devon and Somerset councils have put in so far. But at the moment they have “more questions than answers”. “I think over the next two to three months, when we sit down with the new secretary of state and council leaders, we’re looking for those questions to be answered,” he said. “This is not the fault of the councils, it’s the fault of Government [that] it is still slightly vague and up in the air. “We’re not hostile, we’re just cautious at this stage, and want these questions to be answered. “We want more information about what the benefits will be to our constituents.”

To date, the Conservative Government has awarded 12 devolution deals to cities and regions across the UK. These have passed down greater control over a range of local services, including public health, transport and education.

Devon and Somerset councils collaborated with local national parks, CCGs and the Heart of the South West (HotSW) LEP to submit a joint bid in February. And following their most recent meeting with former local government secretary Greg Clark, they seem optimistic they will secure a deal. However, any progress rests on the individual district, unitary and county councils supporting the creation of a new combined authority (CA) for the region.

The proposal has already been voted through by a number of local authorities – including Exeter, Plymouth and Somerset – with Devon County Council due to vote on Thursday.

Somerset County Council leader John Osman believes the CA model present a far more suitable option than the alternative of a directly elected mayor. And he wants to clarify that it “will not take any powers or responsibilities” from the existing councils. “There is no appetite for a directly elected mayor in the Devon and Somerset area, so the Government have asked for an alternative,” he said.

“What [the combined authority] means is a board with one representative from every one of the 17 councils, the NHS and national parks, who will decide on the new powers and new responsibilities given. “It wont be a new bureaucracy or anything like that, [and] it wont be a massive committee of everybody. It will be 23 people around the room, one from each authority.”

If the proposals are accepted, Devon and Somerset will become the first region to receive devolved powers through a non-mayoral CA model. However, any progress rests on the individual district, unitary and county councils supporting the creation of a new combined authority (CA) for the region.

The proposal has already been voted through by a number of local authorities – including Exeter, Plymouth and Somerset – with Devon County Council due to vote on Thursday.

Somerset County Council leader John Osman believes the CA model present a far more suitable option than the alternative of a directly elected mayor. And he wants to clarify that it “will not take any powers or responsibilities” from the existing councils. “There is no appetite for a directly elected mayor in the Devon and Somerset area, so the Government have asked for an alternative,” he said. “What [the combined authority] means is a board with one representative from every one of the 17 councils, the NHS and national parks, who will decide on the new powers and new responsibilities given. “It wont be a new bureaucracy or anything like that, [and] it wont be a massive committee of everybody. It will be 23 people around the room, one from each authority.”

If the proposals are accepted, Devon and Somerset will become the first region to receive devolved powers through a non-mayoral CA model.

Leaders are hoping that all councils will be on side with the proposals by the end of July, to enable them to start further negotiations with Whitehall over the summer. Their next aim is to have a draft deal from the Government for local authorities to vote on by the end of October. They believe this could lead to an official deal being announced in November’s Autumn Statement.

Councillor Osman admits that the recent cabinet reshuffle – which saw Greg Clark replaced by Sajid Javid – has created some uncertainty. But he says it remains his ambition “to get a deal done and dusted by November time”. “We are now getting into contact with the new secretary of state and the chancellor to say we are still on track and working with civil servants,” he said. “We need to hear back from them to ensure they are still carrying on with the previous administrations line. “I can’t think why he wouldn’t to be honest, it was a conservative policy. But we’ve made contact and we’ve just got it wait for a response.”

The HotSW bid asks for a range of powers, including greater control over road and rail investment, more influence over house building and land use, and better integration of health and social care. Similar responsibilities have been devolved to other areas, including Cornwall, but only authorities with mayors have gained significant control over health budgets and business rates. The additional funding allocated to fund devolution also varies from deal to deal, starting from £15 million a year in Lincolnshire, to £36 million in the West Midlands.

At a Plymouth City Council meeting earlier this month, Labour councillor Tudor Evans called for a “serious conversation” about money. He argued the South West deal must not “set up the combined authority… for a fall”. He told the council chamber: “We’ve known for along time things like adult social care… health services… public health [are] inadequately funded. “We must use this… to unlock the bad funding formulae that have consigned us to not doing the best we can for too many years.”

Coun. Osman states that “the devil is in the detail” when it comes to finances. But he is confident that as councils take on new responsibilities from Government “funding will hopefully follow”. “If not, there is an inkling that we will be able to get some other sources of funding well,” he said. “Not council tax rises or anything like that, but money from central government or business rate rises.”

An area of underlying tension throughout the development of the bid has been geography, with Government keen for bids to focus on LEP boundaries. However, there are those who argue an authority which straddles multiple cities and counties will lack the sense of unity and identity enjoyed by somewhere like Cornwall. Other large multi-authority bids have come close to unravelling, with the East Anglia deal eventually being split into two after Cambridgeshire County Council rejected plans.

Gary Streeter points out that while the tendency in Somerset is “to look Eastwards toward Bristol and London”, in Devon the natural instinct is to look West toward Cornwall. “Most of us feel that… the region should be Devon and Cornwall, but we seem to have gone past that point,” he said. “Some people feel more strongly about it than others, particularly I think the Somerset MPs…. but is not necessarily a deal breaker. “There seems to be broad support for establishing Devon and Somerset. And there is support for a combined authority, provided we know how its going to work and its not simply adding another tier of government.”

Coun. Osman believes a break-up of the Devon and Somerset alliance is “unlikely”, adding that ministers are “pleased” that the 23 authorities have remained united. He said council leaders and staff will work hard over coming months to make the most of an opportunity to “shape the agenda for the South West”.

Mr Streeter is more reserved, suggesting that the new secretary of state may want to take a fresh look at the devolution agenda. He states that a November timetable “is a possibility” but “a lot of water has got to flow under that bridge yet”, and MPs will get a vote on the final deal. “Over the next two or three months… the detail [of the deal] is likely to change and emerge, so I think people shouldn’t get too hung up on the detail,” he added. “My own feeling is that with the new secretary of state coming in… some of the slight vagueness of the current proposal will be addressed.”

At a glance: What is a combined authority?

The 17 Devon and Somerset councils making a joint bid for devolution have been asked to support a new combined authority in order to progress to a deal.

Councillors stress this is not an attempt to merge authorities, or to take powers from lower tier councils– but there is potential for this to change.

Ministers first legislated for the creation of combined authorities in 2009, to allow councils to pool resources for the delivery of local services.

Their powers were enhanced by the passage of the recent Cities and Local Government Devolution Act, and the model has subsequently been taken up in a number of areas bidding for devolution.

In areas like Great Manchester and the Liverpool City Region, they have opted to establish CAs under the control of an elected mayor. However, the Heart of the South West (HotSW) region could be one of the first areas to secure a devolution package with a non-mayoral CA.

As proposals currently stand, the Devon and Somerset CA would be made up of one member from each council, national park, Clinical Commissioning Group (CCG) and the Local Enterprise Partnership (LEP) involved with the bid. Council leaders claim it will not be a physical entity or a “new bureaucracy,” but will simply be a way to coordinate the distribution of new funds and powers throughout the region.

The aim is to improve oversight without resorting to a directly elected mayor system, which many see as unsuitable for a region as large and diverse as Devon and Somerset. However, reports state that it is possible to change to a mayoral CA at a later date, and for powers to be transferred from lower tier councils “subject to agreement”.

http://www.plymouthherald.co.uk/devon-and-somerset-on-cusp-of-devolution-deal-but-mps-want-more-clarity/story-29549453-detail/story.html

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25 Jul 2016

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Austerity cuts, Hinkley C, Local Enterprise Partnership, Post-Brexit Adjustments

Government must re-assess all high cost projects says National Audit Office

“There needs to be a “step change” in the way the civil service does business in the wake of Brexit and other challenges, the comptroller and auditor general has said.

In a speech to the Institute for Government last week, Amyas Morse said the civil service was “over-committed” and should abandon projects that are not “mission critical”.

“We need to ask ourselves, can the public sector deliver Hinckley Point C, a third runway, HS2, a northern powerhouse, nuclear decommissioning, Trident renewal and restoration and renewal of the Palace of Westminster all at the same time?” he asked.

“All these projects are drawing on the same pool of skills and many of these contain optimism bias that they will be able to meet their skills needs at an appropriate cost.”

He suggested that, if the civil service was over-committed, it should stop doing things, either by not commissioning new projects or by cancelling existing ones.

“Prioritising is about making these choices intelligently,” Morse said. “So we need to know how much scarce resource would be released by a particular decision and what consequence that decision would have elsewhere.”

Brexit, he said, was an “abnormal challenge” and brought with it “a completely new layer of unknowns and requirements”.

Existing Whitehall activities were being denuded of capability as civil servants were pulled away to work on aspects of Brexit.

Should Scotland leave the UK – something Morse dubbed “Scoxit” – the civil service would become even more stretched and could grind to a halt under its own weight.

“We will have set civil servants a Herculean task and set them up to fail. And none of us can afford that. I am calling for a step change in the way we manage the activities of government.”

In particular, every Whitehall department will need to carry out a stock take of its interactions with the European Union and new systems and operations put in place to fill the gap left by Brussels.

Brexit would have to be a priority across government and not just in the new Brexit department, he stressed.

“Let’s use this historic juncture to change the way we manage government and plan on a holistic basis so that ministers and civil servants can look across the whole of government activities and decide what is essential and what is not,” he concluded. “This is crucial for achieving value for money.”

http://www.publicfinance.co.uk/news/2016/07/whitehall-must-review-all-projects-free-capacity-eu-exit-says-morse

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23 Jul 2016

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Accountability, Devolution, EDDC, Local Enterprise Partnership, Scrutiny, Spin, Transparency

Devolution: Horses, carts, stable doors …

EDDC issues a press release on 21 July 2016 saying that on 13 July 2016 its Cabinet decided to press ahead with devolution plans:

http://www.midweekherald.co.uk/news/cabinet_agrees_to_continue_east_devon_devolution_talks_in_principle_1_4625365

THEN

the Overview Committee discusses it on 28 July:

Click to access 280616-overview-agenda-combined.pdf

And STILL we are not allowed our say!

Priceless.

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22 Jul 2016

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Hinkley C, Local Enterprise Partnership

EDF raided by French authorities

EDF raided by French authorities ahead of Hinkley greenlight

French finance authorities have raided the offices of EDF just days before the state-backed energy giant is expected to give the go-ahead to its controversial Hinkley Point new nuclear project.

The long-awaited final decision on the Hinkley project is scheduled to take place at a board meeting next Thursday, even as authorities in both the UK and France escalate concerns over the costs of the £18bn project.

French investigators from the Financial Markets Authority (AMF) swooped on EDF’s Paris headquarters on Thursday morning as part of a probe into EDF’s disclosure of information to the market. Investigators are said to be concerned about the reporting of its domestic nuclear maintenance costs as well as the plans to develop new nuclear reactors in Somerset.

Local media reports say the AMF recovered a series of documents from the EDF offices and requested a meeting with EDF general secretary Pierre Todorov.

Just hours after the raid the company said it would hold a board meeting on Thursday 28 July to agree a final decision on the project, feeding speculation that the company is preparing to push ahead with the 3.2GW project.

The company also has a scheduled extraordinary general meeting on Tuesday next week, seeking approval from shareholders for its proposed £3bn recapitalistion.

Meanwhile, the head of the UK’s National Audit Office has raised further concerns over the UK’s plans to subside EDF’s plans in the face of a “tidal wave” of pressures from an impending Brexit and a pipeline of existing infrastructure projects requiring a total of £405bn.

Sir Amyas Morse, comptroller and auditor general at the NAO, told the Guardian in an interview that projects such as the Hinkley Point C nuclear plant, a third runway at Heathrow and the ambitious HS2 rail project would have to be reassessed as the government decides which can be done without, according to a report in the Guardian.

“We need to ask ourselves, can the public sector deliver Hinkley Point C, a third runway, HS2, a Northern Powerhouse, nuclear decommissioning, Trident renewal and restoration and renewal of the Palace of Westminster all at the same time?” asked Sir Amyas.

“There is a policy at the moment to have lots of infrastructure projects. I say fine, but some of them will have very big consequences in terms of your ability to deliver your other goals,” he said.

In a recent report, the NAO heaped criticism on the Hinkley Point plans saying the spiralling costs will hit consumers in the pocket, even as other low carbon energy options offer an increasingly better deal.

The subsidy bill to be paid by households and businesses for Hinkley Point has more than quadrupled since the agreement for the new nuclear plant was signed in 2013.

At the time the deal was signed, power price projections had implied a lifetime cost to consumers of £6.1bn for the subsidies. But as of March this year, that had more than quadrupled to £29.7bn due to significant cuts to official power price forecasts.

EDF declined to comment on the raid, and the AMF was unavailable.

http://www.telegraph.co.uk/business/2016/07/22/edf-raided-by-french-authorities-ahead-of-hinkley-greenlight/

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21 Jul 2016

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Axminster, Cranbrook, EDDC, Exmouth, Local Enterprise Partnership, Ottery St Mary, Regeneration, Richard Cohen, Seaton/ Colyford / Colyton, Sidmouth/ Sidford/ Sidbury

Now Exmouth seafront is up for grabs again, what of Seaton Heights?

East Devon District Council really is having problems with regeneration in Exmouth and Seaton.

In Exmouth, the relationship with preferred developer Moirai Capital Investments (see many East Devon Watch posts) has spectacularly bitten the dust. And what of the development at the old motel site in Seaton – grandly marketed as Seaton Heights:

http://lymebayleisure.co.uk/

which continues to deteriorate badly, despite promises made (many times) to either finish or start construction in June 2016 (it varies a lot depending just which press release you read) having been broken (though the company website STILL touts the off-plan £1,000 deposits it has been marketing for years).

EDDC Deputy CEO Richard Cohen was brought in specially for his regeneration expertise in London but, alas, he seems to have spent the vast majority of his time spearheading the relocation of council offices to Honiton and mopping up development issues in Cranbrook.

Now we have no less than THREE of our major towns with regeneration committees, as Axminster has joined Exmouth and Seaton as being in need of major new investment. Perhaps to be followed by Sidmouth when it is deserted by EDDC and has its replacement influx of more pensioners and Ottery as it struggles with more housing without accompanying infrastructure.

Not really a very good track record, is it?

Still, perhaps our LocalEnterprise Partnership will pump funds into these deprived areas.

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21 Jul 2016

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Accountability, Devolution, East Devon Alliance, EDDC, Independent Councillors, Local Enterprise Partnership, Transparency

EDDC votes to continue devolution deal despite absence of consultation and facts

Talks on the devolution of power from Westminster to East Devon will continue ‘in principle’ amid calls for a public consultation and more concrete facts.

If successful, the Heart of the South West (HOTSW) bid would see local authorities work with the Local Enterprise Partnership (LEP) to take on more responsibility for economic growth and infrastructure in the region.

East Devon District Council’s cabinet agreed to carry on the conversation in principle at a meeting last Wednesday (July 13) but there was a consensus that more ‘concrete facts’ are needed.

[Independent, East Devon Alliance] Councillor Cathy Gardner said: “One thing that has concerned me since the beginning of this process is the complete absence of a public consultation. It could have a huge impact. It would be remiss of us to take this forward without seeing what people want.” EDDC’s full council will need to give the final go-ahead to continue talks.”

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12 Jul 2016

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Accountability, Devolution, Hinkley C, Local Enterprise Partnership, Transparency

Nuclear south-west

“… Referring to study commissioned by the Heart of the South West LEP, he added that the next 20 years is expected to see “up to £50 billion of nuclear-related opportunity” generated in the South West. …”

http://www.plymouthherald.co.uk/booming-nuclear-industry-creating-opportunities-from-plymouth-to-gloucester/story-29504664-detail/story.html

That would be the Heart of the South West LEP where a large number of its Board members – who make the decisions about how to spend millions of pounds in Devon and Cornwall – are in the nuclear industry … and which is in charge of our devolution bid.

Sweet!

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12 Jul 2016

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Accountability, Community Infrastructure Levy, Devolution, Local Enterprise Partnership, Transparency

Publc being consulted on East Anglia devolution

Whereas, here, we are being allowed no say at all:

https://www.eastangliadevo.co.uk

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11 Jul 2016

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Accountability, Devolution, Local Enterprise Partnership, Transparency

“A la carte devolution” says government minister …

Anyone see a recipe for disaster in this so-called a la carte menu for devolution? Owl thinks it smacks of “make it up as you go along” and would prefer a set menu! And Owl prefers to know its destination before it starts its journeys (see last paragraph).

“Greg Clark has set out a “continuous devolution” plan to boost the role of local councils so they become equal partners with Westminster in the governance of the country.

In a speech in Manchester on Friday, the local government secretary said government was moving towards a system where local areas were able to negotiate devolution with Whitehall on a “à la carte” basis and when communities identify new opportunities.

“If you lift the lid on Whitehall, what you see is an ongoing negotiation between different departments and ministers, an open process of give-and-take, proposal and counter-proposal,” he stated.

“This is how things work within central government, and I see no reason why it shouldn’t be the same between central government and local government: each with its own role and mandate, but equal partners in the governance of the nation.”

Although the government was “not quite there yet”, the Cities and Devolution Act included three enabling mechanisms that would make this happen. …

… Clark acknowledged that “to those of an excessively tidy frame of mind, this is quite unbearable”.

He added: “It’s not that they oppose devolution, it’s just that they want it implemented in a uniform, one-speed manner from the top-down. To me, that is to miss the point completely.

“Clearly, there are common principles that must be respected – such as democratic accountability and co-operation across local boundaries – but beyond that, I believe that the flexible approach to devolution has been vindicated.”

A uniform process of devolution would lead to reform at the pace of the slowest, which would have held back cities like Manchester and Liverpool, Clark added.

“I have always been clear that each deal and each piece of decentralising legislation represents a fresh point of departure not a final destination.”

http://www.publicfinance.co.uk/news/2016/07/clark-promises-continuous-devolution-cement-central-local-partnership

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10 Jul 2016

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Accountability, Devolution, Hinkley C, Local Enterprise Partnership, Transparency

“South West to showcase the UK’s £50 billion nuclear opportunity in Westminster”

Well, easy to see why so many members of our LEP who have nuclear interests are spinning this! Anyone notice any declarations of interest here? And it seems without our ever being aware of it, our biggest industry is NOT tourism it’s nuclear energy.

“50 billion worth of business opportunities are up-for-grabs for firms who can provide services for the nuclear industry in the south west. And on Monday 11th July 2016, businesses and representatives from the Government will be able to find out more about how they can play their part at a special event in Westminster.

Taking place in the House of Commons, the event: “The South West – Powering the UK’s Nuclear Future” is being hosted by Bridgwater MP Ian Liddell-Grainger, in whose constituency Hinkley Point C is situated. It features high profile speakers Tom Greatrex, former Shadow Energy Minister and now chief executive of the Nuclear Industry Association, Andrea Leadsom MP, Minister of State for Energy, and Matt Burley, chair of the Nuclear South West Industry Network Board.

The event aims to bring together parliamentarians and south west nuclear industry leaders to set out the economic potential the region has to support the UK energy sector and ensure the Government recognises the unique opportunities that exist in the south west.

Nuclear South West is capitalising on the South West’s unparalleled strength and potential in the global nuclear industry; and generating transformational economic benefits to the UK and regional business community. The facts and figures are:

There will be at least £50billion worth of contracts available to south west companies across 15 projects over the next 20 years in new build, decommissioning and defence.

There are over 180 nuclear companies and organisations in the area, with over 8,000 highly skilled workers;

70% of the UK’s low carbon electricity comes from nuclear power stations; and two new ones are being built at Hinkley Point – creating 25,000 new jobs and £100m to the local economy;

There’s a £1.8bn nuclear defence programme at Devonport in Plymouth; and 44 colleges and training providers are working with Hinkley Point Training Agency.

Matt Burley, Chair of NSW Industry Network Board said: “The future of the nuclear industry in the south west and the scale of financial opportunity that could be unlocked for businesses of different sizes and sectors is enormous.

“We’re working hard to raise awareness and understanding of this opportunity across the region. Businesses are in a fantastic position to take advantage of the national and international nuclear programmes. There are many different services required to support the industry, from equipment suppliers to waste management, and nuclear research facilities to specialist consultancies.”

Ian Liddell-Grainger MP said: “The South West is a global contender in the nuclear energy sector and it offers the potential to create tens of thousands of new jobs and generate billions of pounds for the local and national economy. MPs in our region are committed to supporting and championing the sector. It’s great to see nuclear industry businesses bringing the South West opportunity to Westminster and working with Government to help create the right conditions for growth in the sector – there’s never been a more important time to do this.”

Steve Hindley, Chair of the Heart of the South West Local Enterprise Partnership said: “The South West is the UK’s leading region in the global nuclear renaissance.

“We’re at the ready to claim first-mover advantage in the UK’s nuclear sector, due to the next generation of power stations being started right here at Hinkley Point C. It’s Europe’s largest engineering project, will generate 25,000 new jobs and £14billion investment.

“It’s not just about Hinkley though. There are 15 nuclear opportunities worth £50 billion in this area; so we’re very excited about our cross-LEP & business–led partnership under the banner of Nuclear South West. We urge our Right Honourable Members to join us in showcasing the South West’s unparalleled strength and potential for transformational growth; right here at the nucleus of the nuclear industry.”

West of England LEP chair, Stephen Robertson, said: “The south west is at the forefront of the UK nuclear industry and is leading the way with research and skills training. With over 180 nuclear companies and organisations already in the south west the potential growth and innovation in this sector is huge. Getting nuclear right in the south west will harness the supply chain potential for local companies of all sizes across the south west.”

Dr Diane Savory OBE, Chair of GFirst LEP, said: “The nuclear-based power generation industry has long been a feature of the Gloucestershire economy and we must ensure that the skills infrastructure supports the growth in the economy, by future proofing and meeting the skills needs of businesses affected by workforce displacement to the demands of the nuclear industry.

“Funds from our Growth Deal have been invested in a Gloucestershire centre of excellence in Renewable Energy, Engineering & Nuclear skills (GREEN) in anticipation of the unprecedented expansion of nuclear, low carbon energy, and engineering in Gloucestershire and the South West. The centre will open in September 2017.”

Nuclear South West (NSW) is a partnership between the nuclear industry network in the south west and the stakeholder alliance of the Local Enterprise Partnerships: Heart of the South West, West of England and GFirst; the academic and skills sector and business support agencies.”

http://www.heartofswlep.co.uk/news/south-west-showcase-uk%E2%80%99s-%C2%A350-billion-nuclear-opportunity-westminster

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10 Jul 2016

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Accountability, Devolution, Freedom of Information Act, Local Enterprise Partnership

LEPs must be subject to Freedom of Information Act says media

“Local Enterprise Partnerships must be covered by local government transparency rules and the Freedom of Information Act “to prevent billions of pounds of taxpayers’ money being hidden from public scrutiny”, media organisations have argued.

The News Media Association, which represents the industry, said LEPs were set to receive £12bn in funding between 2015-16 and 2010-21 to invest in local projects and businesses.

However, it claimed that most LEPs tended to make only headline information available, “making it difficult for journalists and members of the public to scrutinise how investment decisions are being made”.

The NMA added that an examination of the organisations’ websites had revealed that only 15 of the 39 LEPs in England and Wales published registers on board members’ interests and only seven of the LEPs’ full-year reports included clear, comprehensive statements of income and expenditure including salaries.

“There were 19 LEPs that appear to publish either no breakdown of money in or out in their annual reports or filed either dormant or highly abbreviated accounts at Companies House,” the NMA said in a submission to a government consultation on local government transparency rules.

Lucy Gill, NMA legal, policy and regulatory affairs advisor, said: “LEPs wield immense power, making investment decisions worth billions of pounds to local communities, yet journalists have enormous difficulty getting hold of even basic information about how this money is being spent.

“As the role and resources of LEPs expands, there can no longer be any justification for excluding them from local government transparency standards and the Freedom of Information Act.”

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7 Jul 2016

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Accountability, Devolution, Hinkley C, Local Enterprise Partnership

Hinkley C cost has risen to £37 billion

“The total lifetime cost of the planned Hinkley Point C nuclear power plant could be as high as £37bn, according to an assessment published by the UK government.

The figure was described as shocking by critics of the scheme, who said it showed just how volatile and uncertain the project had become given the same energy department’s cost figure of 12 months earlier had been £14bn.

The latest prediction comes amid increasing speculation about the future of the controversial project in Somerset, now beset by worries about whether Brexit financial jitters could further undermine it.

Hinkley has been a flagship energy project for the British government and the chancellor, George Osborne, in particular, who lobbied hard and successfully for China to take a stake in the scheme.

Officials at the Department of Energy and Climate Change (DECC) on Thursday confirmed the £37bn figure but said it was a provisional, set in September 2015 when wholesale power prices were very low and would not affect bill payers. …

“… Critics of the scheme have claimed that the fall in the value of the pound since the referendum vote will increase the costs of the scheme to EDF’s French contractors, who work in higher cost euros. …

… The fall in power prices in the UK and continental Europe that have influenced the latest lifetime cost assessment for Hinkley is also responsible for some of the financial difficulties at EDF.

There have also been suggestions that Chinese investors are becoming more nervous about Hinkley and are demanding more concessions from EDF, so that more Chinese project managers and suppliers are involved. EDF denied this.”

http://gu.com/p/4z5ha

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7 Jul 2016

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Accountability, Consultation, Devolution, EDDC, Local Enterprise Partnership, Spin, Transparency

Cabinet to rubber-stamp devolution deal with no consultation with members or public

“Heart of the South West Formal Devolution Bid (pages 52-56)

‘This report seeks approval to sign up ‘in principle’ to the pursuit of a Devolution Deal and the creation of a Combined Authority for the Heart of the South West sub- region to administer the powers devolved through the Deal. An ‘in principle’ agreement from all of the authorities, partners and MPs involved in the Heart of the South West devolution process will open up negotiations with Treasury to work towards a deal.”

Click to access cabinet130716combinedagenda.pdf

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6 Jul 2016

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Devolution, Local Enterprise Partnership

Devolution: if one size doesn’t fit all, how can you be sure you have the right size?

“… In his speech Clark also announced the launch of an official consultation on business rates retention, and insisted that devolution deals were “very much available to all of the country”.

The Communities Secretary said: “No place is the same and no deal should be the same. The geography and powers and governance that are right for one place will not be right for another. But in every case I will look for local agreement, not central imposition.

“Now I know that in many cases it would seem easier to give a standard blueprint and compel authorities to adopt it. But if you believe in devolution as I do that is to miss the whole point. I will not compel any council to join any devolution arrangement. It needs to be locally agreed.

“But in a Britain in which the question has changed from whether to devolve to how significantly, there is a huge opportunity for leaders who are willing to work together in harmony to take powers and budgets which can be used to magnify the impact on the lives of their residents.”

http://localgovernmentlawyer.co.uk/index.php?option=com_content&view=article&id=27623%3Alocal-government-to-have-seat-at-brexit-negotiating-table-says-communities-secretary&catid=59&Itemid=27

Unfortunately, this probably means that those areas which have not built in robust scrutiny will probably not get it.

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5 Jul 2016

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Accountability, Corruption, Devolution, Local Enterprise Partnership, Scrutiny, Transparency

Local Enterprise Partnership scrutiny: Owl says “I told you”!

From Conclusions and Recommendations of Public Accounts Committee Report on Cities and Local Growth:

9. It is alarming that LEPs are not meeting basic standards of governance and transparency, such as disclosing conflicts of interest to the public.

LEPs are led by the private sector, and stakeholders have raised concerns that they are dominated by vested interests that do not properly represent their business communities.

There is a disconnect between decisions being made by local business leaders and accountability working via local authorities. It is therefore crucial that LEPs demonstrate a high standard of governance and transparency over decision making, at least equal to the minimum standards set out by government in the assurance framework.

It is of great concern that many LEPs appear not be meeting these minimum standards. The scale of LEP activity and the sums involved necessitate that LEPs and central government be pro-active in assuring the public that decisions are made with complete probity.

The fact that 42% of LEPs do not publish a register of interests is clearly a risk to ensuring that decisions are made free from any actual or perceived conflicts of interest.

The varying presentation and detail of financial information across LEPs also makes it difficult to draw meaningful conclusions or make comparisons across LEPs on how they spend public money.

Recommendation: The Department should enforce the existing standards of transparency, governance and scrutiny before allocating future funding to LEPs. LEPs themselves also need to be more transparent to the public by, for example, publishing financial information.

http://www.publications.parliament.uk/pa/cm201617/cmselect/cmpubacc/296/29605.htm

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4 Jul 2016

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Accountability, Devolution, Local Enterprise Partnership, Scrutiny, Transparency

Public Accounts Committee sees BIG problems with devolution scrutiny

FINALLY MPs WAKE UP TO MAJOR FLAWS IN DEVOLUTION PLANS! BUT IS IT TOO LITTLE, TOO LATE?

“MPs on the Public Accounts Committee have stated they have little confidence in scrutiny arrangements being put in place around the government’s flagship devolution deals, and called for these to be improved in order to protect taxpayers’ interests.

A report by the Public Accounts Committee published on 1 July, warned that, following the abolition of the Audit Commission, the existing arrangements for local scrutiny of devolved functions must be made more robust.

Examining devolution agreements in 10 areas – Greater Manchester, Cornwall, Sheffield City Region, the North East, Tees Valley, Liverpool City Region, the West Midlands, East Anglia, Greater Lincolnshire, and the West of England – the PAC said local authority scrutiny was constrained.

The devolution deals for these areas, while all bespoke, share a number of elements, including devolved responsibilities in areas of local transport, business support and further education.

Committee chair Meg Hillier said English devolution represented a big change to the way large sums of taxpayers’ money is spent. “It is therefore alarming to report that, as we hurtle towards mayoral elections planned for next year [in these combined authority areas], so many questions still hang over the process,” she added.

“Parliament and the public must be assured that devolved spending is subject to effective scrutiny and there are clear lines of accountability for delivering value for money. “These vital arrangements are still very much work-in-progress and must be confirmed as a matter of urgency.”

The committee recommended that government should set out by November how it intends to ensure local scrutiny of devolved functions and funding will be well supported.

The Cities and Local Growth report highlighted that, currently, local auditors focus on individual bodies’ financial statements and arrangements for securing value for money.

“It is not yet clear whether there will be any sort of independent institutional scrutiny of devolution deals as a whole, or what form this might take,” it stated. “As more powers, funding and responsibilities are devolved to the local level, we are therefore concerned that a gap in the scrutiny of value for money might be appearing.”

The report, which the committee acknowledged was being carried out in an evolving policy context, highlighted this was an untested policy area. There were already clear tensions emerging in the deals, with evidence that some deals may disintegrate. There should be greater clarity from ministers about what they are hoping to achieve, Hillier added.

“The government has set an ambitious timetable to implement devolution deals but it must not skip over crucial details in a blinkered race to the tape. “The interests of taxpayers are paramount and we urge the government to act on our recommendations now to ensure devolution fully serves those interests.”

A DCLG spokesman said the report “misses the point of devolution, which is to end the one-size-fits-all approaches of the past and hand power from Whitehall to local people who know their areas best”.

He added: “We’ve agreed 10 landmark devolution deals covering nearly 30% of the country, with local leaders accountable to their residents including through the election of mayors to oversee the new powers.

“This is a voluntary, bottom-up process based on local proposals demonstrating strong local agreement and clear accountability.”

http://www.publicfinance.co.uk/news/2016/07/pac-raises-doubts-about-devolution-scrutiny

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4 Jul 2016

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Accountability, Developers/ Development, Devolution, Economy, Local Enterprise Partnership, Post-Brexit Adjustments

Osborne has a 5 point plan …

“Chancellor George Osborne has come up with one [plan] and his also has five points [see Johnson, Boris], key among them a proposal to cut corporation tax to below 15% – the lowest of any major economy – to encourage businesses to invest in post-Brexit Britain. The others, as revealed in an interview with the Financial Times, are:

Ensuring support for bank lending.

A push for more investment in China.

A focus on delivering the Northern Powerhouse.

Maintaining Britain’s fiscal credibility.

No word from the chancellor on the brightness of the future, though he does urge everyone to stop “moping around”.

Source: Guardian Live blog

If that’s the plan, where does it place devolution outside the “Northern Powerhouse”?

And did he mean investment IN China or FROM China?

Whatever, our LEP members – all hit hard by Brexit implications in their individual sectors (nuclear, arms dealing, housing development and universities) – must surely be taking time out from their LEP duties to spend more time with their own businesses, now in dire need of their expertise.

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1 Jul 2016

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Devolution, Local Enterprise Partnership

The latest devolution “plan”

No mayor and LEP downgraded? But what is in it for East Devon? And who creates the ” blueprint” that comes before councillors are allowed a (very small) voice?

Heart of the South West devolution partners to consider Combined Authority

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1 Jul 2016

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Devolution, Hinkley C, Local Enterprise Partnership

“Hinkley Point C critics try to derail it amid Brexit vote turmoil”

“Britain’s flagship energy project, Hinkley Point C, is hanging by a thread as critics inside key backer EDF use the political turmoil from the Brexit vote to try to derail the already delayed £18bn scheme.

Jean Bernard Levy, the EDF group chief executive, and the French and British governments, have in recent days insisted they are as committed as ever to a positive final investment decision being taken as soon as possible.

But well-placed sources in Paris have told the Guardian that the already divided EDF board, which must make that decision, is in danger of fracturing further as former supporters of the project worry about Brexit.

“The situation for Levy was already very delicate,” said one source. “But it has become a lot more difficult because there is so little certainty around the British government,” they added. “No one could know today which way a vote [of the board on Hinkley] would go.”

Those arguing against the project say it is impossible to make any decisions when it is unclear who will be the future prime minister, chancellor of the exchequer and energy and climate change secretary.

Highly critical EDF unions in France, which have six representatives on the main board, are pressing waiverers among the five independent board members who have previously supported Levy to change their minds.

Growing concern has led to four British trade unions urging EDF to press ahead with Hinkley.

It was a first “litmus test” that major infrastructure projects will proceed as normal following the Brexit vote, they argued. …”

http://gu.com/p/4ne38