Parliamentary Committee Report on Devolution So Far:

House of Commons Communities and Local Government Committee
“Devolution: the next five years and beyond”
First Report of Session 2015–16

SUMMARY:

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

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

More transparency and public consultation required of LEPs

Reposted from the South Devon Watch Facebook page. Will our LEP take any notice – not on your life – the culture of secrecy is firmly embedded.

“From the Centre for Public Scrutiny Website last Tuesday:

“More transparency and public consultation needed in devolution deals says new report from CLG Committee

The (Parliamentary) Communities and Local Government Committee has today released a report highly supportive of the principle of greater devolution but is critical that the devolution negotiations to date have lacked transparency. In addition it calls for greater public engagement, before, during and following devolution agreements.

CfPS, which has been campaigning for greater openness in devolution deals submitted both written and oral evidence to the committee.

On the release of the report Jacqui McKinlay, Chief Executive said:
“We are delighted with the committee’s report – it highlights the same concerns CfPS has been raising for a number of months. We are strong supporters of devolution and believe that the process of devolution can ultimately be a positive one. It does, however, need to be open, clear and transparent. Too often, the way that bids and proposals have been designed and submitted has had the appearance of being conducted in proverbial smoke filled rooms – opaque and with no input or engagement with local communities, and very often excluding councillors outside of a handful of leaders.

This is a tone that has been set by the way that Government has sought to carry out negotiations, but sets a poor precedent for the way that devolved arrangements will work in practice.

Devolution is an ongoing process and we call on the parties involved in these negotiations be upfront and transparent about the deals that are being made, to communicate the implications of the changes and directly engage with those that will be affected.

They should do this not just because it is the right thing to do but because it will improve the implementation of devolution and lead to better outcomes for all involved.

Our suggestion to Government that combined authorities should agree a “governance framework” covering policy development and performance management, and confirming how non-executive councillors and the public will be involved in both, is we think a critical means of achieving these outcomes.”

Posted by Nicolay Sorensen, Tuesday 2nd February, 2016 CfPS

Would you bet on a one-legged horse in the Grand National?

The biggest investment our LEP is going to make is in the new Hinkley Point nuclear power station in Somerset:

“EDF has confirmed that its finance director has quit ahead of an expected final investment decision on the £18bn Hinkley Point nuclear power plant.

Thomas Piquemal stepped down because he feared the project could jeopardise EDF’s financial position, according to reports.

EDF shares opened 8.2% lower on Monday.

Last month, Chris Bakken, the director of the project that could produce 7% of UK electricity by 2025, said he was leaving to pursue other opportunities.

EDF has provisionally appointed Xavier Girre, who joined the company last year as finance director of its French business, as the group finance chief.
The company’s board is expected to finalise in April how it will fund the project after postponing the decision a number of times.

The project has been plagued by delays, but publicly the firm has insisted a decision to move forward is imminent.

In October last year, EDF agreed a deal under which China General Nuclear Power Corporation (CGN) would pay a third of the cost of the £18bn project in exchange for a 33.5% stake.

But according to reports, EDF is struggling to find the cash for its remaining 66.5% stake and is seeking help from the French government, which owns 84.5% of EDF …

… The company is also facing opposition from French union officials, who have suggested that investment in Hinkley Point C should be delayed until 2019.

The CFE-CGC Energy union said there were problems with a similar reactor design in France that needed to be solved.

The new Hinkley plant was originally due to open in 2017, and it has come under fire for both its cost and delays to the timetable for building.

The government has also been criticised for guaranteeing a price of £92.50 per megawatt hour of electricity – more than twice the current cost – for the electricity Hinkley produces.

http://www.bbc.co.uk/news/business-35741772

And all this against the background of an EU referendum.

Devolution: privatisation of public services by stealth from 2010

It is totally clear from the links on these pages:

https://www.gov.uk/government/publications/2010-to-2015-government-policy-local-enterprise-partnerships-leps-and-enterprise-zones/2010-to-2015-government-policy-local-enterprise-partnerships-leps-and-enterprise-zones

https://www.gov.uk/government/news/new-plan-for-local-growth

that the government had ” devolution” planned down to almost the last detail as early as 2010 and had absolutely no intention of involving the public in the hijacking of local authorities by Local Enterprise Partnerships.

In 2014 the agenda for our LEP was pretty much cut and dried:

Click to access 16_Heart_of_the_South_West_Growth_Deal.pdf

How many behind closed- doors meetings have taken place since 2010? And not a word to electors or “second division” councillors.

If only we could do this with council officers and councillors …

“New rules to hold bosses responsible for wrongdoing at banks is deterring some bankers from taking on senior management roles and even prompting big-hitters to play down their own importance, say legal and compliance experts.

Public anger that so few senior bankers were punished after taxpayers bailed out the industry in the financial crisis, or for scandals such as Libor and currency-market rigging, has led to the rules which make it easier to hold them to account.

The Senior Managers Regime (SMR) from Monday replaces a system that UK lawmakers criticised for giving illusory control over individuals with little prospect of enforcement action.

A step change in banking rules, it will allow regulators to pin blame on named people rather than just firms, which lawyers said has triggered anxiety among top bankers. …”

http://feeds.reuters.com

External auditors: watchdogs or bloodhounds?

Interesting article in Sunday Times Business section with the boss of former external auditors Grant Thornton (Sacha Romanovich, who lives in Exmouth and London). EDDC were forced by new government rules to change to KPMG recently.

The reporter quizzes her about several recent alleged failings at Grant Thornton (including a very high-profile law suit taken out against the company involving alleged pressure used by the company with the Serious Fraud Office to do with a property tycoon) and reveals that the Financial Reporting Council fined the firm £1m over flaws in its auditing of a Manchester building society.

She points out that the company has more than 40,000 clients so this should be put into context.

She ends her interview by saying: ” … audit is a watchdog, not a bloodhound. If people have deliberately gone about their affairs to hide things, it won’t always be found by a statutory audit … “

which then begs the question – so how will it be found?

Grant Thornton were criticised in East Devon for producing a very superficial consultants report into whether disgraced ex-councillor Graham Brown (who chaired the first iteration of the Local Plan committee and was Chairman of the East Devon Business Forum) brought too much influence to bear on the council after he was secretly filmed telling Daily Telegraph reporters how he could influence planning but “didn’t come cheap”.

Here is an extract from the Daily Telegraph front page expose almost exactly three years ago:

“Another councillor in Devon appeared to use his position in a similar way. Graham Brown has been a Conservative councillor for Feniton and Buckerell ward on East Devon district council for more than 10 years.

He is also chairman of East Devon Business Forum, a member of the council’s overview and scrutiny committee and the business and tourism champion.

“I’m the best,” said Mr Brown at a meeting with undercover reporters in Devon last month. “If I can’t get planning, nobody will … I’m low-profile, have access to all the right people for the right clients. Don’t come cheap.” He said he was no longer involved in planning decisions and would need to be careful when talking to other councillors about projects he was involved in, but he was clear about what benefits he would bring.
“I know — without trying to be clever — I know more than most of the councillors, and I know more than most of the officers.”

When a reporter asked what his “strategy” was when it came to winning approval for a planning application, Mr Brown explained: “Where I’m good, I know all the different people to go to … Like if you came to me with a set of problems, I’d say, ‘Right the first thing we do, we need to go and talk to, say, the economic development manager’.

“So I’d pick up the phone to [name removed for legal reasons] and I’d say, ‘I’ve got a project, I want to talk to you about it.’ And it’s about almost kick-starting a dead motorbike”. Mr Brown told the undercover reporters that Devon had traditionally been one of the hardest areas in which to obtain planning permission for new developments, but that it might change because the council had not met its targets for land supply, meaning it was “quite vulnerable to any planning application that can be seen as sustainable”.
Mr Brown explained why this might be useful for the overseas developer the reporters were purporting to represent.

“What it means is — or what it could mean, and I can’t tell you definitely yet because it could get a deal worse or a deal better depending on — I’ve talked to three Government ministers about it because I’m reasonably — I sound terribly pretentious but I’m not — but you know, I’ve spoken to three individual Government ministers I know because I’ve been sort of in the Tory party for a long time and — how can I say it without sounding – I bet you go away and say, ‘that fat arrogant bastard’.”

“It sounds like you’re very well-connected?” the reporter suggested.
“Let’s take that for granted then,” Mr Brown said.

“Which means that whereas East Devon was traditionally one of the three hardest areas in the country to get planning permission, that will change … They will retain within the rules the ability to refuse things which fall down like if the design is poor, certain green belt areas, there will be certain areas so I don’t see it as the floodgates opening, but I do see a stampede coming.” His costs would vary according to the project, but he said he was normally paid £80 an hour or between £1,000 and £20,000 for a project.

His fees would vary “depending on the viability of the scheme, if we get it, like if I turned a green field into a housing estate and I’m earning a developer two or three million, then I ain’t doing it for ­peanuts … especially if I’m the difference between winning it and losing it.”

“http://www.telegraph.co.uk/news/politics/9920971/If-I-cant-get-planning-nobody-will-says-Devon-councillor-and-planning-consultant.html

An alternative view on English devolution scenarios – kowtowing to Osborne?

Like the song: there are more questions than answers … but one thread joins the various models: some people are going to make a lot of money out of them and we end up with a totally different model of providing public services than hitherto that the public has had no say on.

Their only input will be to vote for the mega-Mayors of the new devolved areas.

https://www.opendemocracy.net/ourkingdom/laird-ryan/devolution-or-just-doing-osbornes-bidding

An interesting LEP housing conundrum

Population of Devon and Somerset combined: approx 2 million
Population of Derbyshire and Nottinghamshire combined: approx 2 million

Number of extra homes Derbyshire and Nottinghamshire LEP says they need:
77,000

Number of extra homes Devon and Somerset says they need:
179,000

Explain.

“Greater Midlands” councils not told about their devolution deals

“… Staffordshire MPs Jeremy Lefroy, Gavin Williamson and Karen Brady have called for the creation of a new Mercian combined authority, which would see the county join forces with Shropshire district, as well as Nottinghamshire and Derbyshire. Telford & Wrekin, which last week announced it would be joining the proposed West Midlands Combined Authority, would not be included under the plans.

The moves have caused some bemusement among those areas that have been linked to Shropshire.

Civic leaders in the two East Midland counties said they had received no approach from either Shropshire or Staffordshire councils, and would not be drawn on whether they would support such a move.”

http://www.shropshirestar.com/news/2015/10/12/special-feature-devolution-remains-a-puzzle/

One council has courage to pull out of Derby/Nottingham devolution deal

“At a full council meeting, South Derbyshire District Council leader Bob Wheeler proposed to reject the agreement and this was backed by the members.

He said: “Our concerns include how appropriate an elected mayor would be for an area as diverse as Derbyshire and Nottinghamshire, as well as the cost and impact the deal would have on the other authorities concerned.

“We simply don’t know in detail what the powers of an elected mayor or combined authority would be. We can’t recommend getting on a bus when we don’t know what the fare is and we don’t know where it’s going.”

http://www.nottinghampost.com/Local-council-pulls-East-Midlands-devolution-deal/story-28837942-detail/story.html

Devolution: Devon and Somerset to twin with Derbyshire and Nottinghamshire?

Why?

Because the two deals are very spookily similar! Read the press puff job for Derbyshire and Nottinghamshire and it could almost have been written by the same hand. No, no, no – surely not … but they are SO similar … no, no ….

The press release:

http://www.nottinghamcity.gov.uk/devolution

Here are two snippets almost identical in tone and (localised) content to the Devon and Somerset bid:

“The deal sets out ten key benefits devolution would deliver for the rD2N2 Local Enterprise Partnership (promoting economic growth in Derby, Derbyshire, Nottingham and Nottinghamshire) is a partner in the bid.

What could the Devo Deal deliver, if successful?

• 55,000 new jobs by 2023
• Improved quality and quantity of homes across Nottinghamshire and Derbyshire – delivering 77,000 affordable new homes
• Better connected towns and cities through the creation of combined transport authorities covering Nottinghamshire and Derbyshire
• Improved frequency, integration and joint ticketing arrangements on public transport through London-style powers, as well as directly influencing improvements to motorways and major trunk roads in the area
• Increased potential for East Midlands Airport, the second busiest freight terminal in the country after Heathrow, to increase international trade and passenger transport
• More and better quality apprenticeships, tackling the root causes of long-term unemployment, and further reduce rates of young people not in education or employment
• Greater control over further education to ensure all local learners and employers have access to the right, high-quality further education offer, matching the skills of citizens with those demanded by the employer.
• Speeded up planning process and making it more flexible to respond to the different needs of the local areas
• A smart infrastructure that future-proofs growth and prosperity with universal access to 4G and beyond, removing the digital divide facing those in vulnerable and rural communitiesesidents and businesses of Derbyshire and Nottinghamshire:

55,000 new private sector jobs
77,000 extra homes
An Investment Fund over 30 years to provide infrastructure such as roads and bridges
Adult skills provision that better meets the needs of businesses
A joint transport fund to spend on key transport improvements
A better co-ordinated public transport system with ‘Oyster’ style smart ticketing
More responsive and co-ordinated business support for growth
The creation of substantially more apprenticeship opportunities
More people entering employment through better targeted local programmes
Journey times to London of less than 90 minutes by train
19 councils across Nottinghamshire and Derbyshire together with business leaders from the D2N2 Local Enterprise Partnership which covers the two counties, are seeking to create a single Combined Authority for the region by March 2016 – the first of its kind featuring district, borough, city and county councils.”

and another:

D2N2 Local Enterprise Partnership (promoting economic growth in Derby, Derbyshire, Nottingham and Nottinghamshire) is a partner in the bid.

What could the Devo Deal deliver, if successful?

• 55,000 new jobs by 2023
• Improved quality and quantity of homes across Nottinghamshire and Derbyshire – delivering 77,000 affordable new homes
• Better connected towns and cities through the creation of combined transport authorities covering Nottinghamshire and Derbyshire
• Improved frequency, integration and joint ticketing arrangements on public transport through London-style powers, as well as directly influencing improvements to motorways and major trunk roads in the area
• Increased potential for East Midlands Airport, the second busiest freight terminal in the country after Heathrow, to increase international trade and passenger transport
• More and better quality apprenticeships, tackling the root causes of long-term unemployment, and further reduce rates of young people not in education or employment
• Greater control over further education to ensure all local learners and employers have access to the right, high-quality further education offer, matching the skills of citizens with those demanded by the employer.
• Speeded up planning process and making it more flexible to respond to the different needs of the local areas
• A smart infrastructure that future-proofs growth and prosperity with universal access to 4G and beyond, removing the digital divide facing those in vulnerable and rural communities”

Devolution deal partners … an upside down list

This is the list as provided by East Devon District Council – it appears to have been published upside-down – just an oversight, of course:

“The Heart of the South West devolution partners are:

• Somerset County Council
• Somerset’s district and borough councils: Mendip, Sedgemoor, South Somerset, Taunton Deane and West Somerset
• Devon County Council
• Devon’s district and borough councils: East Devon, Mid Devon, North Devon, South Hams, Teignbridge, Torridge and West Devon
• Plymouth City Council
• Torbay Council
• Exeter City Council
• Exmoor National Park
• Dartmoor National Park
• Northern, Eastern and Western Devon Clinical Commissioning Group
• Somerset Clinical Commissioning Group
• South Devon and Torbay Clinical Commissioning Group
Heart of the South West LEP”

Listen to the Leader of Somerset County Council attempt to defend devolution!

Radio Devon this morning:

Note that he says his council only got involved in September 2015.

Hear him try to slither over the total lack of public consultation.

Listen to a man desperately trying to defend the indefensible!

Remember that promise of a “cost neutral” new HQ?


“Many of the workspace opportunities had previously been delayed owing to the previous uncertainties around the office relocation project and the cost of finance; …

Click to access 100316amfcombinedagenda.pdf

Yet another hokey-cokey for EDDC: sell assets – no, invest in them!

From Minutes of the last Asset Management Forum:

“The recent Treasury Management review had indicated that EDDC should be looking at using some of its reserves to invest in assets to make a better return on the assets and reserves.”

Click to access 100316amfcombinedagenda.pdf

Another chance to meet your LEP helpers – this time with your EU problems

But, of course, if we do Brexit, this will not be all that useful!

Technical Assistance European Structural and Investment Funds (ESIF) Applicants

Register now for European Regional Development Fund (ERDF) Information Events

April 2016 will see the launch of a new round of ERDF funding opportunities. In the Heart of the South West, monies are expected to be available to support:

Initiatives to further innovation in the marine, environmental futures, big data and healthy ageing areas of economic activity in Devon, Plymouth and Torbay only;
Activity to support the start-up and growth of social enterprises in the Heart of the South West;
Enterprise/incubation space in the Heart of the South West where the market has failed to provide and there is evidenced unmet demand;
Activity to support SMEs to take advantage of new digital technologies in the Heart of the South West.

To aid potential applicants in preparing for and engaging with these ERDF funding opportunities, the Heart of the South West Local Enterprise Partnership is holding two half-day ERDF information and networking events.

Events will take place from 13.30 to 16.30 on:
Wednesday 16 March 2016 at the Westpoint Centre, Clyst St Mary, Exeter, EX5 1DJ;
Thursday 17 March at Taunton Rugby Football Club, Hyde Park, Hyde Lane, Taunton, TA2 8BU

Local businesses: LEP volunteers will show you how to make you more productive and successful ….

Heart of the South West Pop-Up Business Cafes

Exeter – 5 April 2016:

Fresha Limited
23 Bittern Road
Sowton
Exeter
Devon
EX2 7LW

tel : 01392 44 77 01
fax : 01392 44 77 02

18 April 2016

Organised in the lead-up to the Growth Hub, from March until the end of April, HotSW LEP will run a series of Pop-Up Business Cafés at established café venues across the area. These will be informal events co-hosted with a local business organisation offering free, one-to-one ‘no pressure, no sales pitch’ advice from volunteer business experts. The Business Cafés are for budding and experienced business leaders and entrepreneurs.

The business cafés aim to raise awareness of the benefits of business support and the range of support available to them locally to make their organisation more productive and successful.

The service is a forerunner to the main service for all element of the Growth Hub which will start very soon. The HotSW website will be regularly updated with the latest events in your area, in the meantime the following events have been arranged:

March
Tue 15 – Shaul’s Café, Bridgwater
Wed 16 – Plymouth Science Park
Thu 17 – Riverside Café, Taunton
Fri 18 – Jelly Café, Newton Abbot & Yeovil Innovation Centre
Tue 22 – Plymouth Skills Summit – Guildhall, Plymouth
Thu 24 – Rumpus Cosy – Plymouth Social Enterprise Network Focus

April
1 April – Old Church School, Frome
5 April – Wavemark, Ivybridge
6 April – Fresha Café, Exeter
12 April – Lilico’s, Barnstaple
13 April – Gerties Café, Bideford
19 April – Enterprise Hub, Tavistock

The Pop-Up Business Cafés will run from 8am to 12 mid-day.

http://us4.campaign-archive1.com/?u=4e59660292bd6b4a5c7d7b8a7&id=dae36e0b59&e=fa5cdb1f18

Devolution: pennies drop, the backlash begins …

“A bid to win fresh powers from Westminster has been submitted to the Government after every council in Devon and Somerset gave the document support.

Council chiefs and business leaders in Devon and Somerset have submitted their “prospectus for productivity” in the hope that devolved powers will boost jobs and growth.

They say they a “devolution revolution” would result in higher productivity and better-paid jobs, improved road, rail and broadband links and more homes.

However, business leaders have criticised the move as “dangerous” and likely to hike business rates and council tax bills to pay for the new responsibilities.

Tim Jones, chairman of the Devon and Cornwall Business Council, said: “The agenda has yet to clarify just what the implications are going to be for the business community.

“The business rates just don’t add up. There may be no growth or revenue may go down.

“In poor rural areas reductions could be 15 to 20% and those figures are not speculative.

“Local taxation could go up – we have already seen authorities putting up council tax and don’t want to see a never-ending spiral of increases.”

http://www.plymouthherald.co.uk/Devolution-revolution-sparks-fears-tax-business/story-28860642-detail/story.html

“Heathy” towns

A correspondent writes:

“Readers of this blog may like to know the details of the Health Initiative that the NHS and EDDC have come up with to enrol Cranbrook as one of the ten new healthy towns.

It’s this: “Cranbrook will look at how healthy lifestyles can be taught in schools”

No surprise Simon Jenkins made the comment, in the article quoted in the earlier blog, that the boss of the NHS might have lost the plot.

Makes you wonder how much time and effort went into cooking this one up?

For information the other towns are:

Darlington, Co Durham
Whitehill and Bordon, Hampshire
Whyndyke Farm, Fylde, Lancashire
Halton Lea, Runcorn, Cheshire
Northstowe, Cambridgeshire
Bicester, Oxfordshire
Barton Park, Oxfordshire
Barking Riverside, London
Ebbsfleet Garden City, Kent”

Broadband in some English villages slower than on Everest!

Dan Howdle … warned that “digital black holes” risked economic decline as businesses needed an online presence.

… “These often beautiful, scenic locations will become ghost towns,” he said.

http://www.bbc.co.uk/news/uk-england-35718107

Perhaps our new super-devolved Devon and Somerset Local Enterprise Partnership could divert some of the vast sums of our money they are pledging to the Hinkley Point power station that may never be built to this good cause that will no doubt promote “economic growth”, though perhaps not for the people they would rather it went to.