Relocation and local government reorganisation – a chance to save money!

What is currently more important in local government? Saving money, saving money by merger or being profligate? These seem to be the stark choices facing our district, with its reliance on the Local Enterprise Partnership for strategy, direction and funding.

Closer examination of the agenda for the next Cabinet meeting reveals that there are two references to local government reorganisation: at the bottom of page 111 and on page 115:

“Identify opportunities for rationalising/improving existing public sector governance arrangements and make recommendations to the constituent authorities/partners”

This appears to be a clear reference, as it not only refers to reform, but also says that the recommendations will go to ‘constituent authorities’. In other words we are not talking just about the LEP. The new Joint Committee clearly has mergers in mind. Add “Greater Exeter” into the mix and we come out with even more likelihood of massive changes. THEN add a mooted “Golden Triangle LEP” and we have a truly chaotic situation.

Owl wonders if these are circumstances in which to pursue a new HQ for EDDC at Honiton. Any proposal involving EDDC and avoiding building at Honiton can immediately claim to have made a minimum saving of £10 million plus interest payments, plus many associated costs – savings now being the mantra nowadays.

The relocation from Knowle could, in the above circumstances prove to be most expensive suicide note in the history of our district. And those EDDC members who waved through the move to Honiton, without the slightest idea of the cost, could in these circumstances be likened to turkeys voting for Christmas.

We have seen with the reorganisation in Dorset, that the reform and merger of local government authorities is very much in the air, and Dorset has been suggesting that the creation of two unitaries will lead to annual savings of many millions of pounds.

So it’s not surprising that things have gone very quiet with EDDC relocation. Firstly, there is local government reorganisation all around us and within our nearby city and the county. Secondly, the Pegasus deal for Knowle has seemingly gone very much on the back burner.

We have recently seen the formal separation – ‘decoupling’ – of the Exmouth Town Hall work from the Honiton proposal which seems to have had more to do with mothballing Honiton than it had to do with allowing Exmouth to proceed more quickly.

Work to refurbish Knowle is almost certainly millions of pounds cheaper than relocating. Plus, a new building in Honiton would immediately depreciate enormously on day one of occupation – 50% plus has been suggested.

Of course, PegasusLife could always put in a planning application for the Honiton site!

EDDC Cabinet to discuss devolution and LEP on 8 February … councils only “influence” LEP

From Cabinet agenda – Owl summary: it has taken 5+ years for the participating councils to realise that the business people on the LEP are running rings round them and still the only thing councils can do is “influence” those same business people:

“Risk implications will continue to be addressed at all stages of these proposals.

The Secretary of State is yet to formally clarify his position on the HotSW devolution proposal although the overall policy direction seems to be becoming clearer.

In the circumstances the Leader feel that the partnership needs to move forward with the priority development of the HotSW Productivity Plan and that this can best be achieved through the establishment of a formal Joint Committee in place of the current informal governance arrangements. This will put a formal governance structure around the Productivity Plan preparation, approval and delivery so minimising risk to the County Council and the other partner authorities. It will give partners the ability to negotiate with Government at pace, particularly on the emerging Industrial Strategy but without the statutory commitment required to establish a Combined Authority.

Without a Productivity Plan and Joint Committee in place the Council and its partners will be at a disadvantage in negotiating and lobbying Government on a range or policy initiatives including the growth agenda and are likely to miss out on potential funding streams.

…..

The HotSW Joint Committee will provide a formal strategic partnership to complement and maximise the ability of local sub- regional arrangements to deliver their aspirations. It will allow the partners to collaborate to agree and deliver the Productivity Plan as well as engage effectively with the Government, other deal areas and other LEPs on a range of policy agendas. It will allow the partnership to test and improve its ability to work together as a potential precursor to the establishment of a Combined Authority at some point in the future. It will also provide a mechanism to work alongside and influence the LEP on strategic investment decisions affecting the HotSW area and to secure improvements to LEP governance and accountability.”

Click to access combinedcabagenda080217final.pdf

(topic begins on page 107)

Another problem for our Local Enterprise Partnership?

Perhaps partnering with Somerset, with its massive reliance on Hinkley C is not such a good idea.

“Forging a trade deal with the European Union must be Britain’s top priority in negotiations, because the bloc is the largest export market for 61 of 62 of the nation’s cities, a think-tank has said. …

…”The West of England is disproportionately reliant on exports to the EU, with the great majority of total exports from cities in the region destined for the bloc. Out of all cities in the UK, the top three cities in terms of their dependence on EU exports are Exeter (70%), Plymouth (68%) and Bristol (66%).

The least dependent city in the UK is Derby, which still sends almost half (48%) of its exports to the EU, followed by Hull (29%).”

http://www.publicfinance.co.uk/news/2017/01/eu-dependent-cities-need-trade-deal-after-brexit-centre-cities-says

“Musical Council Boundaries”

“When the music stops, your local council leader will be here to tell you a story [1]

First, there was “devolution” for the Heart of the South West, which wasn’t devolution at all because it would have sucked powers upwards from localities to a vast “combined authority” covering all of Devon and Somerset, including Plymouth and Torbay [2].

Then came the idea for a Greater Exeter Growth and Development Board (the GEGDB), which would be a joint strategic authority made up of Exeter, East Devon, Mid Devon and Teignbridge Councils [3]. Joint authorities are in practice run by their officers, not councillors, because the officers negotiate a common acceptable position on a given issue and then serve it up the councillors as the only available option that the four councils will agree on.

Finally (or perhaps not), proposals for a “South Devon” unitary council leaked out last week. This would be an all-purpose council covering East Devon, Exeter, Teignbridge, Torbay and Plymouth and, possibly, South Hams (sorry, Mid Devon, you’re out), discharging all existing district council functions plus those of Devon County Council within the new unitary area. Such evidence as is there is suggests the prime movers appear to be Exeter and Plymouth, if only because they refused to back further moves to support the “devolution” proposals.

The Exeter Green Party has written to the leader of Exeter City Council asking the following questions:

What mandate does the City Council have from the residents it serves to:
(a) attempt to reorganise local government decision-making structures?

(b) propose arrangements which would suck key decisions upwards from the elected representatives

of the people of Exeter to a new superior authority – the GEGDB – which would not be directly elected?

(c) propose a strategic authority – the GEGDB – which on the evidence of the 8 November paper would focus solely on economic growth to the exclusion of social and environmental considerations?

When does the City Council plan to publicise its thinking and actively consult residents and businesses on whether they actually want new local government arrangements and, if so, on the form they should take and how any new body might be fully accountable to local people?

It seems clear that the option favoured by Exeter and Plymouth is the South Devon unitary authority. Central government is believed to be offering £1 billion if the unitary is established, complete with an elected mayor. We don’t know what the money would be targeted at – improving public services, infrastructure, or grants to businesses? But a bribe’s a bribe.

A directly elected authority – which is what the unitary would be – is certainly preferable in democratic terms to the other options. But it would be a huge area, currently represented by 237 councillors elected by 105 wards (and that’s without South Hams). So a workable sized council will require a massive cull of elected members (no wonder the leaderships have been playing their cards close to their chests), leading to a weakening of the links between people and their councillors. On present ward boundaries, based on the most recent election results, 123 of the councillors would be Tories – a small majority, which gives pause for thought as to why Labour-run Exeter is so keen on the idea? Of course the new council could be a pathfinder, to be elected by proportional representation, which would change the political balance considerably. Look it’s a pig up there.

Many, many more questions. And meanwhile energy is being diverted away from service improvements into a potentially massive reorganisation. It still feels like the “old politics”. For the time being, we have to await the answers to the Green Party’s highly pertinent questions.

NOTES

[1] You have to have been an aficionado of BBC Radio Children’s Hour in the 1950s to understand the reference!

[2] See my post https://petercleasby.com/2016/09/30/devolution-is-not-control/

[3] The proposals adopted by Exeter City Council’s Executive are at http://committees.exeter.gov.uk/documents/g4903/Public%20reports%20pack%2008th-Nov-2016%2017.30%20Executive.pdf?T=10, page 73.”

https://agreeninexeter.com/2016/12/14/musical-council-boundaries/

Javid reiterates: no super-Mayor, no devolution

So that’s that – either Devon will be ruled by a Somerset super-mayor, or Somerset will be ruled by a Devon super-mayor or BOTH will be ruled by a super-dodgy-business-person with vested interests in one or both counties!

Speaking to the County Councils Network on Monday, the local government secretary said:

“… he was open to reorganisation proposals, such as that put forward by Buckinghamshire County Council to abolish its districts and form a county unitary.

This proposal was “exactly the kind of proactive, locally driven thinking I want to see”, he said.

While not committing commit himself on Buckinghamshire’s plan, he said: “Unitary status can be a great model…but I’m not for one moment saying it’s for everyone. This is not compulsory. It’s not going to be imposed.

However, he dashed hopes that he would allow devolution in county areas without the creation of elected mayoralties.

Former chancellor George Osborne had insisted on mayors as a condition of devolution deals but after his departure some county leaders hoped to change this policy.

Javid told the CCN: “I get that directly elected mayors aren’t universally popular within local government. And I know that’s especially true of the counties.”

He recognised arguments that counties were too large for one person to control but said: “I’m not going to devolve significant new powers and more taxpayers’ money without a corresponding increase in local accountability.”

Mayoralties would be “a real red line for me when it comes to negotiating devolution deals”, he added.”

http://www.publicfinance.co.uk/news/2016/11/nearly-all-councils-submit-plan-four-year-funding-deal-says-javid