Who guards the LEP guards? Owl has the answer!

As part of the government’s assurance framework, each local enterprise partnership has a nominated local authority that acts as its accountable body, and

Somerset County Council

(the Council) is the accountable body for the Heart of the South West LEP.

Alternatively you may bring any matter concerning the LEP to the attention of the Somerset County Council’s external auditor.

For this Council, the appointed auditor is

Grant Thornton UK LLP.

The engagement lead for the audit is

Peter Barber
peter.a.berber@uk.gt.com
0117 305 7897.

For Local Authorities, some rules are in this government publication:

Accounting Officer Accountability System Statement for Local Government and for Fire and Rescue Authorities”

Click to access 150320_-_LG_and_Fire_Accountability_System_Statement_-_2015__final_.pdf

For the Local Growth Fund, this government publication covers some of the rules:

Accounting Officer: Accountability System Statement for the Local Growth Fund”

Click to access bis-15-183-Accountability-systems-statement.pdf

Should you as an elector wish to examine the accounts of ANY local authority, the National Audit Office has produced a very helpful guide abour your rights:

Council accounts: A guide to your rights

Click to access Council-accounts-a-guide-to-your-rights.pdf

Next scrutiny committee agenda published – rural broadband down the pan

Really worth a full read but here are some highlights:

Broadband (or lack of):

I regret that our application was unsuccessful as you will see from the two letters that are appended to this update.” (Twiss quote)

The exchange of correspondence between EDDC and the grant funders who turned down the application is VERY enlightening and should be a major embarrassment to lead councillor Phil Twiss.

Having pulled out of the Devon-wide consortium that has just been granted extra funding we are – precisely nowhere, in fact worse than that, much further back with rural broadband provision than ever before.

Public engagement (or lack of):

A risible attempt to produce a (very brief) report that pretends that EDDC consults appropriately and widely – but listing examples where the public has the exact opposite opinion!

Website (or lack of)

Boasting that more and more forms are going online and how wonderful the industry insiders think it is (so it’s a pity you can rarely find what you are looking for as an outsider and with many documents missing. But how you can get gold stars from your colleagues when your search function is described only as “fairly good” beats Owl!

and the committee’s draft report for the council’s own annual report all up for scrutiny.

Click to access 140416-scrutiny-agenda-combined.pdf

“Bluffer’s Guide to Devolution”

… was how the EDDC Chief Executive, Mark Williams, described the document he presented to Cabinet members at Knowle this evening. Well, he should know … .

Reminder: Who cares what you think? conference

“One year on from the May 2015 elections, East Devon’s Independents are giving feedback to the general public on what they’ve been doing, and on the wider picture of big changes coming to the South West.

An open conference is being held at the Knowle (Sidmouth) on Saturday 23rd April 2016, in the Council Chamber, with speakers from the East Devon Alliance of Independents and colleagues from across the South West.

The morning session (11:00 – 12:30) will focus on East Devon issues such as flooding, rural broadband, and inappropriate development, with reports from some of the Independent Councillors now serving on EDDC.

The first afternoon session (13:30-14:15) is ‘Local Policing in crisis?’, with guest speaker Bob Spencer, the Police and Crime Commissioner candidate standing as an Independent in this May’s election.

The final session (14:30-16:15), looks at ‘Devolution- a democratic deficit?’, with guest speakers from across Devon, Cornwall, Somerset and Dorset.

Admission is free, but places limited, so please reserve by e-mail to conference@eastdevonalliance.org.uk. indicating if you’d like the light buffet lunch. (Small charge for the refreshments.)”

Hinkley C: China sets up 7 London-based companies

Hinkley Point: China incorporates seven London-based firms:

Beijing’s growing confidence in its plans to help build new reactors at Hinkley in Somerset and Bradwell in Essex has been underlined by the recent incorporation of seven new Chinese nuclear-related firms in London.

It appears, however, that an agreement between China and its partner EDF of France to develop the first new reactors in Britain for 20 years has still not been signed.

Beijing’s creation of so many new businesses could further alarm those concerned at the degree of complexity surrounding the £18bn Hinkley scheme.

“Documents from Companies House show the recent listing of General Nuclear System Limited and Bradwell Power Holding Company alongside more opaque entities such as Libra International and Sagittarius International.

All seven companies use the same Stratton Street address in Mayfair, west London used by the state-owned China General Nuclear Power Corporation. They also have the same director, Zhu Minhong, the public face of China’s nuclear power business in Britain.

Zhu appeared with Vincent de Rivaz, the chief executive of EDF Energy, before parliament’s energy and climate change committee 10 days ago, and stressed China’s optimism about building nuclear power plants in Britain.

A spokesman for China General Nuclear Power Corporation, where Zhu is a general director for the UK, said he could not immediately explain why so many new UK-based businesses had been established or their exact purpose.

The Chinese company announced at a highly publicised signing ceremony in London last October that it would be taking a one-third share in Hinkley Point C alongside EDF, and that it also planned to construct and operate its own locally designed reactors at Bradwell.

Despite heads of agreement being signed off during the visit of the Chinese president, Xi Jinping, EDF and China Nuclear had still not completed the final legal documents in February as the wider Hinkley go-ahead remained stalled while the French power company demanded more financial support from Paris.

EDF declined to spell out exactly what the current situation was, but referred to the statements Zhu made at the select committee when he said: “We have agreed the package deal in terms of the heads of terms. We then spent our time to translate the heads of terms into long-form. What I can say today is that our discussions [are] practically completed.”

Peter Atherton, a utility analyst at Jefferies investment bank in London, expressed concern about the complexities of the wider Hinkley programme, noting that EDF had spoken of having “thousands and thousands” of pages of legal documents to be signed off with it Chinese counterparts.

Complexity is itself a warning that this project is likely to run into some kind of problem. Often when you have a major infrastructure project that runs into problems, say the [London] tube PFI, complex contracts have added to the risk and uncertainty over who bears the responsibility for which costs.

“I would be staggered if anyone in government could tell you where exactly the risk lay [with regard to Hinkley].”

The Department of Energy and Climate Change said: “Hinkley Point C is a major infrastructure project which will boost our energy supply and our economy, bringing in billions of pounds of investment into the UK and creating 25,000 jobs during construction.

“A deal of this scale is by its nature complex, but we are clear on the construction and financing risks, which fall firmly on the developer rather than bill payers.”

http://gu.com/p/4t2m5

Dept for International Development audit firm awarded contracts at the same time!

KPMG led a consortium that received £10 million to ensure overseas aid was spent effectively.

At the same time they were awarded contracts worth more than £25 million to scrutinise departmental spending.

KPMG and the Government insist there is no conflict of interest, KPMG insisting that most of the aid money was channelled through its office to groups abroad.

Sunday Times, page 17

Well, that’s ok then.

No wonder our LEP has no qualms about its board members who have nuclear interests!

Thousands of council workers gagged

“Figures showed 17,571 settlement deals had been signed between 2010 and 2015, many including confidentiality clauses.

Cardiff Council has issued the most settlement agreements, with nearly 3,000 employees signing one since 2010. …

… The 5 live Investigates programme made a Freedom of Information request to all 433 district, city, county and regional councils in the UK. 70% responded. The responses revealed that 17,571 workers had signed a settlement agreement between 2010 and 2015.

Staff often received an enhanced pay-out for signing such an agreement. But it is unclear how much these enhanced arrangements are costing the public purse because the figures include money that staff would have been entitled to under their normal terms and conditions.

But the 17,571 settlement agreements resulted in pay-outs totalling £226.7m. …”

http://www.bbc.co.uk/news/uk-35946263

East Devon Alliance on “devolution”

“When the Conservatives won last year’s election most voters had no clue that George Osborne was about to unleash an anti-local democracy, unelected regional quango genii from the bottle.

Having been trusted with more than 30,000 votes, the East Devon Alliance has done all we can to flush this out into the open. Most recently we discovered that the National Audit Office (NAO), the respected Government Watchdog, were conducting a study, this spring, into accountability and value for money in the ever more powerful “Local Enterprise Partnerships’.

As the NAO web site invited comment, we thought it would be helpful if we put forward a view on how Devolution was perceived to be proceeding from a local perspective rather than from Whitehall or the Establishment.

We feel that at present, flying a false flag of devolving more power to the regions, the LEPs are proceeding in a way that is unaccountable, lacks transparency and is likely to have a negative impact on democracy.

Realising our input might arrive in the final stages of compiling the report we also copied it to the Chair of the Public Accounts Committee (PAC), Meg Hillier MP. NAO reports are reviewed by the PAC.

In the event the NAO have come to similar conclusions to us.

If Mr Osborne is hell-bent on his ill-conceived scheme and Parliament is unwilling to trim his sails it is now up to local councillors to do the thinking for him.”

Asset Management Forum – no papers available for any agenda item

7 April 2016, Knowle, 9.30 am
Asset Management Forum

Agenda published with four items to be discussed – the only document provided – minutes of last meeting.

Part A Matters for Decision:

7 Rent support grant scheme – launch details – draft Cabinet report to follow
8 Data – Verbal update by Donna Best, Principal Estates Surveyor
9 Asset Devolution – draft Cabinet report to follow
10 Green Space Strategy – Update on progress.

Click to access 070416amfcombinedagenda.pdf

SO NOT ONE SINGLE DOCUMENT AVAILABLE FOR THE PUBLIC TO SEE IN ADVANCE OF THIS MEETING.

WHY?

What’s that smell? Oh, fish!

LEP Conflict of interest? Not when you all share the same interest it seems!

We reported that LEP member Nicholas Ames (Supacat) used to work for Serco which has been handed a lucrative LEP contract:

https://eastdevonwatch.org/2016/03/12/lep-conflict-of-interest/

We also reported that Supacat is moving into the nuclear industry:

https://www.nsan.co.uk/news/supacat-ltd-expand-nuclear

Now we hear that Serco is also involved in the nuclear industry:

“A consortium including government outsourcing specialist Serco has won a new framework contract from the Ministry of Defence (MoD) to manage the UK’s nuclear warheads via the Atomic Weapons Establishment through to 2025.”

http://www.hl.co.uk/shares/stock-market-news/company–news/serco-consortium-extends-uk-nuclear-deterrent-contract

Devolution and LEPs – more worrying insights

” … So what is wrong with it?

That question takes us to the first problem that we would want to talk about. Who decides what will happen? Well everything is decided at central government level. In particular, and I just mentioned George Osbourne, it’s quite odd that the whole thing is being driven by the Treasury rather than the Department for Communities and Local Government (DCLG). So it’s Osbourne’s particular baby.

The way it works is that officials from the Treasury, certainly with people from DCLG too, enter into secret bespoke discussions with whoever approaches them and say “please may I have a slice of your devolution pizza?” They say “well, OK, we’ll come and talk to you.”

These discussions have all been held behind closed doors so at best it’s a discussion between the Treasury, the Department of Communities and Local Government, the leaders of the local councils who will probably be statutorily constituted as a combined authority and the Local Enterprise Partnerships, the LEPs.

The first problem with that is where does it leave the citizens? The citizen has no say, has no seat round the table and is not party to any of these discussions, which is an odd thing because you might think in principle devolution is at least in good part about devolving power to the local citizenry. Yet here are deals being hatched that exclude the citizen’s voice. I think that’s our first problem, discussions taken in private.

So, what are Local Enterprise Partnerships and how have they become so powerful in such a short time?

LEPs were the substitutes for the Regional Development Agencies or RDAs. RDAs were abolished once the coalition took off in 2010, they were abolished over a timespan of a year or two. So LEPs are the replacement.

LEPs are not statutory bodies, so in that sense there’s no clear channels of public accountability. They are basically a group of self-selecting business people who come together on a local basis and have the power to bid to Regional Growth Funds to get money for local enterprise development. They do have governing bodies and essentially the government’s arrangement is a mix of local business people again, as I said, pretty much self-selected because it’s done on a voluntary basis and members of the combined authority. So it’s a mix of politicians and local business people who sit on the LEP governing body.

It’s not a mix that always works well. LEPs have crept into a powerful position and sometimes central government will say certain things may be permissible at local level, for example increasing the business rate by 2%, but only if the LEP agrees. So LEPs are accreting little bits of power here and there even though they have no statutory basis for exercising their powers.

I guess most people will not have heard of LEPs. They are fairly shadowy and it would be fair to argue that if they’re going to exercise an increasing range of powers, they should be put on a statutory basis and there should be proper accountability to local people.

I thought it was fascinating in your article when you mentioned that Local Enterprise Partnerships resisted any examination of what they were doing on the grounds that it might “scare business”. That’s just extraordinary.

I would guess any self-respecting LEP is feeling a little bit awkward itself about all of this. LEPs are not statutory. They’re not accountable in any way to people living in a local area. They’re run on a shoestring, yet here they are having quite a significant voice round the table. That will be one of their concerns, that we need to talk about these things privately. This is part of what I’ve been calling the ‘democratic deficit’.

The second thing that perturbs me a lot about this is that as well as having private discussions that exclude the people, the government then goes on to require a form of governance that they prefer and which people have no choice over. I’m referring here to the requirement in the Act of Parliament now, that in order to get a deal, most places (the South West might be an exception because of its geography) must have a directly elected Mayor.

Take where I live: I’m up here in the North East. We will have one person whose remit will run from the Scottish Borders right down to the Tees Valley. It’s a vast area. One person running a swathe of important public affairs, and no-one’s been asked if they would like that model. It’s completely unclear where it leaves thousands and thousands of local councillors whose services will probably no longer be required.

What does this tell us about localism and the Big Society and all of that stuff that was very much heralded at the beginning of this government?

It was going to give all this power back to local people and so on and so on. Now that we’re a few years into it and we’re starting to be able to see what it actually looks like, what do you think it tells us about the motivation behind it? Who are they doing it for?

My view of the Big Society is that it was simply an attempt to cut costs and transfer services out to the third sector but without the necessary funding to accompany that transfer. You don’t hear a lot of talk these days about the Big Society, do you? So where are we left with this?

We’re left with councils cut to the bone and the suspicion through the whole devolution policy that what the government wants to do is transfer responsibility for funding and public spending cuts to a more local level. Regional, sub-regional, currently it’s with the local councils. That’s probably best not described as devolution. It’s best described as delegation of responsibility for funding. It can even apply to the NHS, in particular in Greater Manchester, which so far is the only devolution deal which has involved fairly clear agreement to take on responsibility for NHS services.

There are some very important and worrying questions being raised by all of this. What we’re slowly doing is taking the national out of a lot of services that have been national and making them local. In principle it has some attractions but in the current economic and political climate, I’d be very worried about taking responsibilities on when the funding was disappearing.

A lot of this stuff is being justified on the grounds of economic growth. What do you think we run the risk of sacrificing in our desperate attempt to achieve economic growth?

If there’s one implicit objective of the devolution deal, it’s the idea that it will spur economic growth. This is George Osborne’s real focus. You devolve to core cities and through devolving some powers over transport and regeneration you get the benefit of agglomeration. That may well work in certain geographies but even if you did get more growth – I think it’s a bit unclear exactly why you would – but even if you did, more regional growth is one thing. How you use the proceeds of that is another.

If you take the Northern Powerhouse as the most frequently cited example, it may well be good for Manchester, maybe even for Leeds, but once you get out into the rural areas and the older industrial areas, it’s not easy to see how this will be of benefit in these wider geographies. It’s a question about the type of growth and the proceeds of growth as well as whether you get the growth at all.

If people read your article and feel like something very valuable, something very precious is either slipping through their fingers or being wrenched from their grasp depending on which way they look at it, what can they do about it?

That’s a good question, isn’t it? We’re looking at a whole range of different ‘devo deals’. What the Chancellor did late last year was to invite local areas, regions and sub regions to put in a bid for a deal, and they were given seven weeks to do it. Seven weeks. Thirty eight such bids were received. Most of them were not considered strong enough to take forward, so we only have about half a dozen that are currently going forward.

I guess you could stop these deals in their tracks if one or more local councils who were in the combined authority said “we don’t think this is a good deal, sorry, we’re pulling out. We just don’t want to go ahead with it.” You would then suffer a loss of course, because you would be seen as a poor team player. There are more powers coming along, even if these are delegated powers, and there’s a bit of money at stake. Always follow the money! Council spending is being crucified.

But as part of the devo deals, the Treasury comes along and says “if you sign a deal on our terms, we will give you x amount of money.” My own area, the North East is pretty typical. The deal up here with the North East Combined Authority is £30 million per year for 30 years. Incidentally, I have never known a political pledge that was ever honoured over 30 years! But that’s the deal on offer.”

https://www.transitionnetwork.org/blogs/rob-hopkins/2016-03/bob-hudson-devolution-there-are-some-very-worrying-questions-being-raised-

“Police and Crime Panels must be better equipped to hold PCCs to account: MPs”

Police and Crime Panels must be better equipped to hold Police and Crime Commissioners (PCCS) to account, MPs have said.

In a report the Home Affairs Select Committee (HASC) noted that the panels were the only mechanism for accountability of PCCs outside of elections every four years. The MPs said the panels and PCCs should meet a minimum of once every two months.

The report, Police and Crime Commissioners: here to stay, also said that – in order to improve transparency and accountability – there should be a a central register of PCCs’ interests and a centrally maintained list of PCC office costs.

The MPs added that:

Those Commissioners who will be elected in May must prioritise consolidating the work of their predecessors before considering further expansions of their role and powers.

It was “deeply concerning” that there had been so few applicants for recent Chief Constable vacancies. Many of these roles had been awarded to the incumbent Deputy Chief Constables, who often shared a close relationship with the relevant Police and Crime Commissioner.

PCCs should consolidate their profile in the communities they represent. Turnout at the next elections would be one measure of success in engagement.
Any expansion of the PCC role needed to be incremental and carefully judged. “The additional responsibilities for PCCs detailed in the Policing and Crime Bill in relation to fire and rescue, and in police complaints provide sufficient additional challenges for now, and PCCs should concentrate on the issues raised in this report, wider public engagement and their core role before broader expansion of their role is considered.”

Progress on the new Police Funding Formula must be brought forward, “as damaging delays are making it impossible for PCCs to fulfil their role of setting Force budgets. PCCs hands are tied by the stalled review which must be restarted urgently, with the establishment of the independent panel HASC called for in its December report.”

Keith Vaz MP, chair of the committee, said: “PCCs are here to stay. A series of measures would consolidate their role and effectiveness in local communities. This must begin with a central register of PCCs interests and a centrally maintained list of PCC office costs, so they can be better scrutinised by their electorate.

“We did not anticipate that the creation of PCCs would have such a dramatic effect on the appointment of Chief Constables. The pool of talent in policing is in danger of drying up, with so few applications for the most senior jobs in policing. PCCs must ensure applicants for Chief Constable roles have served at least two years in another Police Force at a senior rank, and not allow close working relationships with their Deputy Chief Constables to deter external applicants.”

Vaz added that newly elected office holders in May should not be burdened with too many additional responsibilities. “They are already due to be given more powers for Fire and Rescue Services and Police Complaints, and an even broader remit on top of this may prove overwhelming and these proposals should be paused.”

http://localgovernmentlawyer.co.uk/index.php?option=com_content&view=article&id=26447%3Apolice-and-crime-panels-must-be-better-equipped-to-hold-pccs-to-account-mps&catid=55&Itemid=23

Is our LEP already in the doggie dirt?

The more Owl reads about what our Local Enterprise Partnership should be doing and what it does do, the more it seems that the LEP inhabits a totally different universe to us where its own rules don’t apply

Check out this publication from December 2014: Her Majesty’s Government LEP Framework. And then contrast it with what has happened in the two plus years since it was published.

Click to access bis-14-1241-local-enterprise-partnership-LEP-national-assurance-framework.pdf

Here are a few choice highlights – let’s start with one that appears on the very last page of the document (page 17):

Business cases must be published (and publicised) before funding approval decision is made so that external comment is possible. Opinions expressed by the public and stakeholders must be available to LTB members when decisions are being take.”

Does anyone recall being consulted about ANYTHING by our LEP? Has anyone SEEN a business case for anything?

And there is more:

“… 3.1 It is important that LEPs have clear arrangements in place which enable effective and meaningful engagement of local partners and the public. They should operate transparently giving people confidence that decisions made are proper, based on evidence, and capable of being independently scrutinised.
3.2 We expect LEPs to take a proportionate approach to sharing and publishing information, using the prompts set out below as the basis for determining what they release. We fully expect that there will be information which is not appropriate for publication – including information that is commercially confidential, and expect LEPs to use their own discretion in determining what shouldn’t be published. Our expectation however, is that the public should see that the LEP is applying similar standards of transparency as other public sector organisations over decisions it makes over public funding. Within reason we would therefore expect LEPs to:
• have a dedicated website through which local partners and the public can keep in touch with progress on implementing the Growth Deal, access key documents etc;
• publish their arrangements for making, and recording decisions, and for ensuring that papers, decisions, minutes, agendas etc are published in line with existing local authority rules and regulations [access to information, Schedule 12A of the LGA 1972, as amended by the FOI 2000];
• through their accountable local authority, ensure that Freedom of Information and Environmental Information Regulation requests are dealt with in line with relevant legislation;
• have a published conflicts of interest policy, register of interests covering any decision makers, and published complaints policy;
• ensure that there is appropriate local engagement – both with public and private stakeholders to inform key decisions and with the general public around future LEP strategy development, and progress against delivery of the SEP, including key projects and spend against those;
• publish arrangements for developing, prioritising, appraising and approving projects, with a view to ensuring that a wide range of delivery partners can be involved (see also Part 5 on value for money below);
• clearly set out the LEP’s priorities and mechanisms for maximising the social value of its investment funding and activities so that partners and beneficiaries can play an active role in the programme. …

… 4.2 The lead local authority, working with relevant officers will need to put in place appropriate arrangements for the proper use and administration of funding, building on the existing local government systems, and which fall under the annual audit of the local authorities accounts. The accountable local authority would also be responsible for ensuring that decisions are made in accordance with the local LGF assurance framework. …

… 5.4 Across both of these aspects, LEPs should ensure that they have robust processes in place which ensure all funding decisions are based on impartial advice. The arrangements set out in the local assurance framework will need to ensure a clear separation between those acting as scheme promoters and those advising decision makers will be maintained, so that the LEP is acting on impartial advice on the merits of (potentially competing) business cases.

5.5 LEPs should also ensure that arrangements are in place which support the active management of risk across all matters for which the LEP is responsible, including but not limited to propriety and value for money issues. This should include having a named individual of appropriate seniority who is responsible for the identification and management of risk.”

ANYONE SEEN THE IMPARTIAL ADVICE? Until recently, we had no published agendas or minutes, and even now we get only notes not full minutes.

But what can we do? Who do we tell? The government doesn’t want to know, it just wants an annual report. Our councils? No, they have gone into this with little or no consultation.

It is left to us, the public to attempt to hold these people to account. And how do they respond?

Listen to the deafening silence.

Billions of pounds being given to a few businessmen and even fewer career politicians, some of whom have heavily vested interests.

And the blame for this cannot now be left at the door of Labour or coalition politicians.

It is a national scandal that no-one powerful enough is prepared to call out. And who suffers – us.

Gateshead asks sensible questions before committing to devolution

“Town hall leaders in the North East are making a series of demands on George Osborne on a number of key issues as talks to devolve powers to the region continue after councillors in Gateshead failed to endorse the latest deal.

An agreement would see the North East handed a raft of new powers and an extra £30m in regional funding in return for establishing an elected mayor as part of the Chancellor’s Northern Powerhouse agenda.

But Gateshead Council’s cabinet voted last week to reject the proposals, sparking doubts about whether the deal could be made.

The region’s six remaining local authorities are now looking to press ahead, but are calling for “clarification and commitment” from the Government on a number of “outstanding issues” from the Government before deciding whether to give their seal of approval to the multi-billion pound covenant.

The North East Combined Authority has set out a list of these issues ahead of further talks with the Government and has delayed making a final decision until May.

Newcastle Council’s leader Nick Forbes, whose council has endorsed the deal, said at a meeting of the authority’s leadership board: “None of us would have had this deal as a starting point, but it is important that we take this first step.”

Helen Golightly, North East Local Enterprise Partnership’s chief operating officer, said the meeting “underlined the region’s continued support for devolution”.

She said: “There are still matters where the local authorities feel they need more clarification from Government. The North East LEP remains fully supportive of the devolution process.”

She added: “Devolving powers will give us more opportunity to help drive the economic growth our region needs to contribute our full worth to the UK economy.”

Outstanding issues include a lack of certainty over £30m a year funding over 30 years and the need to “rural proof” investment to ensure rural areas are not left behind. The councils are also awaiting confirmation on how the Government plans to devolve funding for sustainable transport. Leaders also want further commitments to ensure the North East is not put at a financial disadvantage in relation to Scotland.

Jeremy Middleton, North East LEP board member and a mayoral candidate for the region, said the North East Combined Authority’s politicians were “holding the region back”.

He said: “This delay means there is a very real risk that the North East will be left behind again.”

A Government spokesman said: “The Government is making huge progress towards rebalancing Britain’s economy and empowering local areas through the devolution of powers and resources away from Whitehall.

“This is a bottom up process and if any local authority in the end decides it no longer wants to be part of it, then we will continue to work with those local partners who do, in order to make this historic opportunity in for the North East a reality.”

http://www.independent.co.uk/news/uk/politics/devolution-northern-powerhouse-gateshead-knocks-back-george-osborne-over-devolution-deal-for-north-a6957206.html

Cabinet Agenda – 5.30 p.m. Knowle, 6 April 2016 – a meaty mix of relocation and devolution WITH NO MEANINGFUL COSTINGS WHATSOEVER

144 pages

Minutes take up the first 31 pages

Relocation – pages 32-49
This update is to advise on progress of the relocation plans and seek Cabinet agreement to further key actions”.
Appendix 1 – Floor plans Honiton HQ and Exmouth Town Hall refurbishment
Appendix 2 – Pegasus Life plan for Knowle Site buildings footprint
Appendix 3 – Service Delivery and Office Relocation Survey results summary

RECOMENDATIONS
;
Knowle Site:
1. Note that Pegasus Life Ltd following public consultation exercises will be submitting its application for development of the Knowle site . The projected likely date of consideration of the application is July 2016
2.Note that Sidmouth Town Council has responded positively to the Deputy Chief Executive ‘s formal proposal to transfer the remaining Knowle Park to Town Council ownership together with a commuted sum and negotiations continue Honiton Heathpark
3. Note that preparations are underway by the design team to submit a planning application for new build Council offices at
Heathpark with a view to Planning Committee consideration in September 2016
4. Note that the new HQ design is moving from concept to detailed design of space allocations for desks, meeting spaces, storage, reception area, Chamber, member area, services and external works
5. Note that construction is planned to commence in November 2016 for a period of up to 12 months, followed by Client Fit Out
Works with occupation of the new HQ targeted for February 2018
6. Note that the Deputy Chief Executive has again met with businesses and staff at the East Devon Business Centre to discuss and advise on project progress Exmouth Town Hall
7. Note that the Deputy Chief Executive and design team have met with tenants of Exmouth Town Hall to discuss their needs,
concerns and expectations regarding the refurbishment of the building and its impact on their operations including any disruption or temporary displacement
8. Note that the Council has issued Section 25 notices to end the tenancies of Town Hall tenants to be followed by negotiation of
new tenancies
9. Note that refurbishment is planned to commence in Autumn 2016 and last between 8 – 10 months, followed by Client Fit Out
Works.

Other
10. That Cabinet approve the use of £47,040 of transformation funds for the additional scope required within the Electronic
Document Management System.
11. Note that the Council has appointed Interserve to provide the Pre Construction Advisory role through a two stage
competitive tender process based upon the CFSW Framework. As part of the second stage tender process, Interserve will be
asked to provide their firm fixed price tender for the Project Works later this Year. If in the event the received tender is not
acceptable a further tendering process will be carried out.
12. Note that there continues to be ongoing detailed engagement with staff and tenants regarding space allocation, twin site
facilities, team locations, internal design, fit out and operational requirements
13. Note that Members have received a presentation on new offices design and layout. Further presentations and discussion will be arranged as the project moves forward
14. Agree SMT’s decision to locate Housing Services in the main as well as availability of other front facing provision (Benefits,
Environmental Health, Planning) on the basis of the findings of the Service Delivery and Office Relocation Survey with
residents (attached at Appendix 3)
15. Note the successful recruitment of a Relocation Facilities Manager post to prepare and oversee the physical relocation of staff and resources”
FOLLOWED BY LOTS AND LOTS OF BUMPH ABOUT WHAT AN EXCELLENT IDEA RELOCATION IS – BUT WITH ALMOST NO NUMBERS …


Devolution – pages 50 – 92

Click to access 060416-combined-cabinet-agendasm.pdf

“To update members on progress of the Devolution Prospectus”
Appendix 1 – Governance Workshop Notes
Appendix 2 – Governance Workshop slides
Appendix 3 – Briefing key messages
Appendix 4 – HoSW Prospectus for Productivity presentation
Appendix 5 – HoSW Productivity Plan Workshop Meeting notes
FOLLOWED BY LOTS AND LOTS OF SLIDES ALL SHOWING WHAT A WONDERFUL THING DEVOLUTION IS – BUT WITH ALMOST NO NUMBERS …
AND ENDING WITH THIS WONDERFUL EXAMPLE OF ALMOST TOTALLY MEANINGLESS LEP JARGON:

“Conclusions and next steps
The key step was felt to be the development of a vision and criteria to drive the development of the productivity plan and the
work streams within the devolution prospectus. Building on the 6 golden opportunities exploring
a) what will move us forward rapidly
b) what will stop us moving backwards

Need this vision to be developed and agreed by our Leaders before we do too much more work within the theme areas.
Recognise that we need to keep the pace.

Twin track process:
The Productivity Plan being the longer term vision of transformation irrespective of what devolution deal we obtain. It will be an overarching plan that will drive ambition for the area.

Devolution – will work rapidly with government to agree a Heads of Terms similar to the East Anglia devolution
model and push for an early deal.

We could commission our universities to undertake some research to explore the options for transformational change in our area to inform the development.

Action:
The PMO will be asked to develop a Next Steps document for comment on the development of the vision, criteria, and the framework and resources required to deliver a shared plan.”

Devolution: the next 5 years – councillors should be ashamed of themselves for signing us up with no consultation

House of Commons
Communities and Local Government Committee
Devolution: the next five years and beyond. First Report of Session 2015–16 25 Jan 2016

Extracts

Devolution Objectives (Conclusion para 21)

As set out above, our witnesses gave us many important and ambitious reasons for pursuing devolution, particularly so for health devolution. However, with the exception of increasing economic growth, we are not certain whether these are intended to be the measurable objectives of devolution and are not convinced that the Government itself is any clearer. We are also not satisfied that the Government has considered and identified how to measure the success of a devolution deal once in place.”

The Approach to Devolution (from para 24 and 25)

….the current approach to devolution in England is overtly one of deal-making, which can be characterised as negotiations behind closed doors between central government and representatives of local authorities….
……Indeed, one of the consequences of deal-making is that devolution does not happen in a uniform manner; deals have so far been agreed with seven city regions and with Cornwall. Professor Pike described it as “very ad hoc” and “piecemeal”…..”

On Public Engagement (from para 51 and 52)

“We have been struck by the lack of discussion and consultation with the public in areas which have proposed, negotiated and agreed devolution deals.

At the question and answer session we held with residents during our visit to Greater Manchester, the vast majority of contributions, often made in angry tones, arose from the perceived lack of efforts by the combined authority to engage the public about the deal relating to their local area.

While many valid points were made, we note that attendees, having elected to attend the session, were not necessarily representative of all Greater Manchester residents who are likely to be less aware of devolution.

We were told that there had been a “complete, utter and total lack of democratic engagement”, “insufficient information” and that most people did not understand what Devo Manc was all about.

When we raised this with our Greater Manchester witnesses, Cllr Kieran Quinn, the Leader of Tameside Metropolitan Borough Council, said he fully accepted there could have been more transparency. Cllr Sue Jeffrey, the Leader of Redcar and Cleveland Borough Council, told us that Tees Valley had not consulted the public before signing up to a deal and Cllr Alan Rhodes, Leader of Nottinghamshire County Council, said they were talking about the deal in the media and would hold a public consultation once it was agreed.
…..Cllr Quinn reasoned that, as the deal was bringing new powers to local people, not taking them away, limited public engagement could be excused
……….

Conclusion (para 56)

“We think it is too late to engage the public only once a deal has been agreed. While it is reasonable that the actual negotiations are not open to the public, steps should be taken to inject more openness into the process by publishing on the relevant authorities’ websites:

• Devolution proposals and the Government’s counter-offers, within a reasonable time of them being made;
• An outline of what is being negotiated; and
• Drafts of the deal, and the text of the final deal.

The Government should also publish the criteria it uses to assess and agree proposals so local areas can refer to these when drawing up their devolution bid. A similar level of transparency should continue to be maintained once the deal has been agreed.”

Scrutiny (Conclusion para 77)

As the DCLG says, the overview and scrutiny requirements in the Bill are an initial framework to be used as a basis for more robust provisions, which we believe have a role in fostering public confidence in the new arrangements, as well as balancing vested interests. These should be developed to suit the characteristics of the local areas as a result of deliberate efforts to hold active discussions at local level, with residents involved in designing new and more open methods of scrutiny.

Local areas need to give active consideration to how the mayor will work with the council leaders and how s/he will be held to account. Although the elected mayor is intended to be a ‘first among equals’, s/he may soon establish, or already have, a profile and position which makes this balance difficult to achieve.”

Devolution confusion

Unfortunately, the Committee did not tackle the situation where a Local Enterprise Partnership has greater powers than the Mayor. Though, of course, it is likely that one of the politicians currently on the LEP will become the devolved Mayor and will serve himself or herself AND the LEP as well as their own councils and us the common people!

But what a spanner could be thrown in the works if an Independent stood and won!

“Potential for confusion

78. From what we have seen and heard, we are very concerned that the public will not understand who will be responsible for what in their local area.

The Devolution Bill makes a distinction between the powers of the mayor and those of the combined authority which translates into the mayor and the combined authority being responsible for different services.

For example, in Greater Manchester, the interim mayor is responsible for transport, but not health, which is within Greater Manchester Combined Authority’s remit.

Some witnesses argued that this is not a problem in London where the Mayor of London’s responsibilities differ from those of the London Boroughs. But Alexandra Jones, the Chief Executive of the Centre for Cities, said this will need to be tackled as part of the “public education programme” around devolution and Professor Copus said that “the mayor, counties and the districts have to be prepared to point people in the right direction”.

When we put our concerns to the Secretary of State for Communities and Local Government, he said that it would be “for that mayor to make very clear the platform on which they stand and the things they are doing in office”.

Click to access 369.pdf

More alarm bells on devolution – from Parliament

The Government has announced a ‘devolution revolution’, transferring powers and opportunities to local government through a series of ‘devolution deals’.

Cities and Local Government Devolution Bill gives statutory authority to deals and enables some of the specific reforms the Government wishes to make, such as introducing directly-elected mayors for combined authorities. This inquiry set out to examine the contents of the Bill and, in particular, whether Greater Manchester’s deal is a model for other areas, but its scope quickly widened to a review of the way in which devolution in England is proceeding.

We strongly support the principle of devolution. We welcome the fact that, at the start of this new Parliament, it occupies such a prominent position on the Government’s agenda. We acknowledge the personal contribution of Greg Clark, whose support and involvement since 2010 has been key in driving devolution. We expect to see this commitment continue, and for it to be shared by an increasing number of Departments, over the next four and a half years.

We are acutely aware that all deals are at an early stage and need time to bed in, and that many devolution bids are still to be negotiated. We therefore expect to review progress by the end of this Parliament and at regular intervals thereafter. Although it was not the focus of this inquiry, in line with our predecessors, we will continue to press for fiscal devolution: our next inquiry will look at the plans to allow local authorities to retain 100 per cent of business rates, and we will review the progress made on fiscal devolution.

We have identified various aspects of the current approach that we recommend are refined and improved now. Otherwise, the policy risks being rushed and appearing driven by a purely political timetable. We see a role for scrutiny by select committees of the secondary legislation enacting deals and the Government’s annual report on devolution, required by the Bill.

We have found a significant lack of public consultation and engagement at all stages in the devolution process. People are keen to be involved; our public session in Greater Manchester highlighted residents’ strong appetite to be included and consulted. The public should be engaged in the preparation of devolution proposals, insofar as possible during the negotiations and once the results of a deal have begun to make an impact, and communicated to throughout the process. This is particularly the case for health devolution where the systems in place are complex, changes are consequently more difficult to understand and the public’s response is likely to be more emotional.

We also believe that the Government’s approach to devolution in practice has lacked rigour as to process: there are no clear, measurable objectives for devolution, the timetable is rushed and efforts are not being made to inject openness or transparency into the deal negotiations. We suggest various ways in which proper process can be ensured; for example, with an agreed timetable for the negotiation and agreement of a deal.

Once deals are up and running, there will be a complex division of responsibility – between local authorities, the combined authority and, in some places, the directly-elected mayor— which will not necessarily be apparent to the public. Responsibility needs to be determined in a way that makes sense to the public, and consideration of these issues should be a significant part of the deal-making process with the division of responsibilities clearly spelled out. We received no clear explanation as to how accountability under health devolution will work and have recommended that the Government revisits this issue. There is a need for a clear articulation of how health devolution will work.

We strongly believe that areas should be able to acquire further devolved powers over time. Where an area has asked for particular devolved powers but was refused, those powers should be available to it if they are given to other similar areas at a later date.

Our ambition is that, by the end of this Parliament, the Government and local authorities will reach the position of ‘devoylution by right’, with the Government having announced a package of powers that will be on o er to local government. is would be a starting point for even more ambitious and wide-ranging future deals and possibly a more comprehensive package of devolved measures agreed between Government and local government as a whole.”

Summary taken from:
Devolution: the next five years and beyond
First Report of Session 2015–16
Report, together with formal minutes relating to the report
Ordered by the House of Commons to be printed 25 January 2016

http://www.publications.parliament.uk/pa/cm201516/cmselect/cmcomloc/369/369.pdf

Regional newspapers pick up story on criticism of LEPs – our LEP fights back

Unfortunately, no mention of our LEP members conflicts of interest and their decision to spend much of our money on Hinkley C nuclear power plan (several board members are involved in nuclear power-related work, one (Midas) is a major player in a contract for Plymouth Docks regeneration).

“A lack of transparency and insufficient resourcing are just some of the criticisms levelled at the Government’s flagship scheme to deliver £400 million of investment in Devon and Cornwall. But at least the media is waking up.

The findings from the new report on Local Enterprise Partnerships also highlight “confusion” about their role in local devolution deals, and difficulties assessing value for money.

The critical report from spending watchdog the National Audit Office, suggests that five years on from their creation, there is still some way to go to ensure LEPs are delivering the economic growth they promised.

But organisation’s operating in South West have welcomed the report – arguing they have made strong progress in the creation of new jobs, homes and investment opportunities in the region.

“The role of LEPs has expanded rapidly.”

The Coalition Government launched the Local Enterprise Partnership programme in 2010 to replace the UK’s nine Regional Development Agencies. Since then, 39 LEPs have been established, including fone or Cornwall and Isles of Scilly (CIOS) and for Devon and South West Somerset (the Heart of the South West, or HotSW).

The aim of these bodies is to boost economic development at a local level, using funding from Local Growth deals to support business and infrastructure improvements. But over time, the NAO notes, they have taken on a “significant” number of responsibilities, including positions on local transport boards and leading roles in devolution deals.

HotSW board member, Tim Jones suggests LEPs have faced a “whirlwind” of changes in recent years. He says this has contributed to a sense of “doing business on the hoof”, as the Government devolves more and more powers.

“The NAO report marks a good time to pause, reflect and make sure we are doing it right,” he said. “Now that the questions are being asked, it’s an opportunity to make sure LEPs are fit for purpose.”

“LEPs do not possess the resources necessary.”

The Government has pledged to make a total of £12 billion available to LEPs between 2014/15 and 2019/20. So far, Cornwall has received £60 million from this fund, with a further £150 million put forward by private investors, HoTSW has been awarded £195.5 million.

LEPs also have an influential say in the allocation of European funding, in the area. This amounts to roughly £470 million for the CIOS area and £92 million for HoTSW.

However, according to the NAO report, only 5% of LEPs surveyed felt they had sufficient resources to deliver the services and projects expected of them. And as they rely heavily on partnerships with local authorities to achieve their aims, the study warns many will struggle as cuts to council budgets take their toll.

Mr Jones said challenges around resources affect all LEPs. But he is not in favour of increasing staff numbers and returning to “the bad old days of big bureaucracy”.

“As an example, the demands around devolution have been huge, around half of the LEP team has been diverted to writing the devolution agenda,” he said. “But the expectations of government need to be managed against the resources that are available, rather than the other way round.”

CIOS chief executive Sandra Rothwell stressed her LEP is keen to make sure as much funding as possible goes to economic growth “not organisation”. “We are a partnership and we work with councils, chambers of commerce and businesses in developing and implementing strategies,” she explained. “Could we use more [resources]? Yes of course. But it should be proportionate to the scale of the programmes we deliver.”

“LEPs… are not as transparent to the public as we would expect.”

Management of LEPs currently consist of a mixture of private sector representatives and local councillors. The NAO report found that the proportion of private sector membership ranged from 45% to 80% across the 39 bodies.

It says the Department for Communities and Local Government has taken steps to improve LEP governance and transparency. But it suggests the department should do more “to ensure that the required standards of governance and transparency are being met”.

At the Cornwall LEP, four of the 16 board members are elected councillors, with remaining members coming from local businesses and other professions. Ms Rothwell believes that this is a fair representation of public, private and voluntary sectors.

She also stresses that the LEP reports back to local authorities on its decisions, and makes information about board members and their registered interests available online.

“Most of our resources are focussed on running an accountable process, because at the end of the day this is public money,” she added. “We were one of just seven LEPs in England interviewed in depth for this report and we received excellent feedback on our own systems and processes.”

At HotSW, six of the 20 board members are councillors – a ratio Mr Jones describes as a “healthy balance”. He also states that prospective board members face a “very rigorous” selection process.

“I think [the mix] has created an understanding about the needs of the business community, and improved their understanding of the needs of the local authority,” he said. HotSW also published information on board members and meetings on its website.

“It is not clear how LEPs fit into devolution.”

The NAO notes that ministers see LEPs as “central” to their plans for English devolution. But it claims LEPs are often “uncertain of their role within a more devolved landscape”, particularly in areas where their boundaries do not match those of the combined authority.

Ms Rothwell said CIOS, which leads on the employment and skills and business supports aspects of Cornwall’s devolution deal, is “very clear” on its involvement. “This one of the strengths that Cornwall and the Isles of Scilly has in terms of focus and geography,” she said. “So we are in a slightly different place than other LEPs].”

The Heart of the South West devolution submission is still in the bid stage. As the name suggests, it corresponds with the area covered by the LEP, but Mr Jones said their role is as “an observer and a consultee” in the process. “There is some degree of confusion around the fact that it is not a complete deal… but it is being led quite rightly by the local authorities,” he said.

“LEPs are at the heart of driving local growth”

Both the Cornwall and Isles of Scilly LEP and the HotSW LEP maintain that they are well on their way to hitting their targets for growth, but it is “too early” to accurately measure their success. They also stress that the NAO report is a “general” comment on the LEP model, and not an assessment of individual bodies.

The DCLG argues the study “misses the point”. A spokesman said: “LEPs are pivotal to driving local economic growth and have an important leadership role in devolution. That is why we have announced this week a further £1.8 billion through a new round of Growth Deals, maintaining our commitment to a £12 billion Local Growth Fund over the course of the Parliament.”

LEP targets for 2020/21

Cornwall and the Isles of Scilly LEP aims to:
Create 20,000 new jobs
See superfast broadband rolled out to 100% of homes and businesses
Build 13,000 homes
Support the creation of at least 336 new businesses
Upgrade the Night Riviera sleeper service

Heart of the South West LEP aims to:
Create 22,000 new jobs
Build 10,000 new homes a year
Reduce rail journeys between Plymouth and London to 2 hours 45 mins
See 95% superfast broadband roll out
Achieve partial dualling of A303/A30 corridor

Further analysis

Torbay MP and Public Accounts Committee member Kevin Foster: “The NAO report highlights the role our local LEPs play in economic development policy, but with this responsibility must come better accountability. It is right that LEPs can decide what reflects local priorities, rather than have them set by government or quangos across artificial regions that do not reflect our actual economic areas. Yet with the amount of money spent via them there needs to be clear measures to ensure the taxpayer gets value for money.”

Devon councillor and HotSW board member Andrew Leadbetter: “The Heart of the South West LEP has successfully enabled the private and public sectors to work together more efficiently to improve the lives of residents by creating jobs, attracting investment and in increasing the diversity of the regional economy. Together we will continue to improve productivity and growth in the region and I look forward to continuing to work with government and our regional partners Plymouth, Somerset and Torbay in the future.”

http://www.plymouthherald.co.uk/know-LEPs-New-report-raises-transparency-fears/story-28993422-detail/story.html

National Audit Office criticism of Local Enterprise Partnerships in more detail

“The National Audit Office has expressed concern at the level of transparency provided by Local Enterprise Partnerships (LEPs) and the failure to test their governance assurance frameworks.

In a report on LEPs, the spending watchdog also warned that the approach taken by the Department for Communities and Local Government to overseeing Growth Deals risked future value for money.

Amyas Morse, head of the National Audit Office, said: “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.”

The NAO report acknowledged that the DCLG had 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.

But it noted that the Department had yet to test the implementation of such assurance frameworks at the time that Growth Deals were finalised. The watchdog said it had found “considerable gaps” in LEPs’ compliance with the DCLG’s requirements in this regard, and that the availability and transparency of financial information varied across LEPs.

The NAO highlighted how, with the advent of the Local Growth Fund, the amount of central government funding received by LEPs was projected to rise to £12bn 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,” it suggested.

The report also revealed serious reservations among LEPs themselves about their capacity to deliver and the increasing complexity of the local landscape.

The NAO said: “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 report revealed that LEPs relied on their local authority partners for staff and expertise, and that private sector contributions had not yet materialised to the extent expected. In addition, there was a risk that projects being pursued would not necessarily optimise value for money, the watchdog said.

“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.”

http://localgovernmentlawyer.co.uk/