Agenda item

Report attached.

Members considered a report of Councillor Steven Smithson, Deputy Leader and Portfolio Holder for Environmental Services, which provided an opportunity for the Council to debate the proposed establishment of a Lancashire Combined County Authority (CCA) and to respond to the consultation.

 

In February 2022, the Government had published its White Paper on Levelling Up, a significant set of proposals which sought to address geographical disparities in funding, productivity and growth across England.  The resulting legislation, the Levelling-up and Regeneration Act 2023, allowed for the creation of new CCAs that required the agreement of upper-tier Local Authorities in the area.

 

Securing a devolution deal had been a long-standing ambition for Leaders across Lancashire to address years of historically low investment in the area whilst providing a platform for accelerated growth.

 

Following the publication of the White Paper, the three upper tier councils had agreed to cooperate at pace on the creation of a new devolution deal that would cover the Lancashire area by establishing a CCA.  The Leaders of the three Councils had overseen negotiations with Government to agree the basis of a proposed devolution deal.  The Deal document set out the basis for the deal, including the key powers to be devolved, main objectives of the proposed CCA and the governance principles.

 

The Deal document had been further developed into a Proposal document, full details of which could be found by following this link:

 

http://www.gov.uk/government/publications/lancashire-devolution-deal

 

The Proposal document was subject to a consultation process across the area in accordance with the statutory requirements.

 

The proposed devolution deal for Lancashire did not include the creation of a directly elected mayor.  Instead, the CCA would be made up of existing elected councillors to provide overall vision and leadership.

 

The Combined County Authority

 

The main elements of the Proposal (if approved) were as follows:

 

a)    Lancashire County Council, Blackburn with Darwen Council and Blackpool Council would form a Combined County Authority (CCA), to provide overall vision and leadership, seek the best value for taxpayer’s money and be accountable to local residents.

b)    The arrangements would include the integration of the relevant functions of the Lancashire Local Enterprise Partnership (LEP) into the CCA, ensuring that there continued to be a strong and independent local business voice in the form of a Lancashire Business Board which would inform local decision making and strategic economic planning.  In absorbing the role and functions of the Growth Lancashire Company, LEP Growth and Skills and Employment Hubs, LEP Investment Team, and destination management/visitor economy, the Lancashire CCA would deliver a number of functions on behalf of the central government departments.

c)    The CCA would have new powers to better shape local skills provision to ensure these met the needs of the local economy.  This would include devolution of adult education functions and the core Adult Education Budget, and the opportunity to further refine the Local Skills Improvement Plan.

d)    There would also be new powers to improve and better integrate local transport, including the ability to develop the Bus Service Improvement Plan (BSIP) partnership and strengthen co-ordination of local transport functions.

e)    Subject to funding, policy and delivery considerations at the next Spending Review, Government’s expectation was that delivery responsibility for the UK Shared Prosperity Fund (UKSPF), a flexible funding pot, would be aligned with devolution deal responsibilities.  This would mean that the proposed CCA could have such responsibilities from 2025/26.

f)     The CCA would have the ability to exercise compulsory purchase powers to help drive the regeneration of the area and to build more affordable homes, subject to the agreement of the constituent council and the local planning authority where the relevant land was located.

g)    The area would receive up to £20 million capital funding in the current Spending Review period to support innovation led growth (including assets to maximise the benefits of National Cyber Force) and net zero ambitions across Lancashire.  This investment was subject to agreement of the relevant business cases.

h)    The CCA would form a Local Visitor Economy Partnership to help further develop the region's visitor economy.  It would also deliver innovation-led growth, including working with Government to capitalise on Lancashire’s economic potential in growing the Energy and Low Carbon sector.

 

Additional funding for Lancashire

 

The Deal included up to £20 million capital funding in the current Spending Review period to support innovation led growth and net zero ambitions across Lancashire.  This investment was subject to agreement of the relevant business cases.  The portfolio of capital regeneration projects would drive growth and levelling up across Lancashire and included:

 

a)    Assets to maximise the benefits of the National Cyber Force and a proposed Innovation Hub in Lancashire;

b)    Blackburn Tech Innovation Quarter (TIQ);

c)    Silicon Sands, Low Carbon Data Centre Demonstrator, Blackpool Airport Enterprise Zone;

d)    Cosy Homes in Lancashire (CHiL) - additional capital investment for extending an existing domestic retrofit scheme.

 

The recent Network North announcement also suggested that the proposed CCA would receive:

 

e)    a proportion of the £2.5 billion announced as part of Network North to transform local transport in areas in the North outside of the big city regions;

f)     a proportion of the £770 million of funding for Bus Service Improvement Plans in the North;

g)    a proportion of the £3.3 billion funding to fix potholes in the North.

 

How the CCA would work

 

A Combined County Authority was a way for the three upper tier authorities in Lancashire to work more closely together, and to receive devolved powers from the Government.  It was not an additional tier of local government, it was a way for existing locally elected representatives to have more say over decisions that affected the area.  In order to deliver this, the proposed arrangements were outlined below.

 

The CCA Board would be made up of up to 8 members:

 

• four elected members, consisting of a lead/executive member for each constituent council and one further member appointed by Lancashire County Council.
• two non-constituent members, who would be nominated by the district and borough councils to represent the interests of district and borough councils on the CCA
• up to two further associate or non-constituent members, to be appointed by the CCA.

 

The voice of business would be a critical component in the future proposed CCA, given that a key area of focus would be economy, industry, and business.  The proposed CCA would appoint an Associate Member who could represent the views of business on the proposed CCA.

 

The proposed CCA would ensure that the Lancashire Police and Crime Commissioner (PCC) was invited to attend and participate in CCA meetings as an observer, or as a non-constituent member.  This would ensure close collaboration and productive joint working between the CCA and PCC.

 

Proposals for decisions by the CCA could be put forward by any constituent member.  All constituent members would have one vote.  Constituent members would work towards the principle of unanimity on all key decisions.  Other questions that were to be decided by the CCA were to be decided by a simple majority of the members present and voting, unless otherwise provided for in legislation.  Decisions requiring unanimity amongst the constituent members would include:

 

a)    Approval of the CCA’s budget, including significant financial decisions.

b)    Approval of the policy framework, which would include:

·      Corporate Strategy;

·      Economic Growth Strategy;

·      Skills and Employment Strategic Framework ; and

·      The Local Transport Plan, Bus Service Improvement Plan (BSIP) and the Local Cycling and Walking Infrastructure Plan (LCWIP);

c)    Appointment of the Chief Executive;

d)    Approval of and significant amendments to the Constitution.

 

The following decisions would require the consent of the lead member of the relevant constituent council, or substitute members acting in their place, in whose area the decision would apply:

 

a)    Compulsory purchase of land or buildings by the CCA;

b)    The exercise of compulsory purchase power would also require the consent of the relevant planning authority;

c)    Any decision by the CCA that could lead to a financial liability falling directly upon that constituent council;

d)    Such other matters as might be contained within the CCA constitution.

 

In accordance with the Levelling Up and Regeneration Act 2023, the proposed CCA would have the power to grant voting rights to the non-constituent members. The responsibility for agreeing any such rights would rest with the constituent members of the CCA and would be set out in the CCA’s constitution.  The Levelling Up and Regeneration Act 2023 did not allow associate members to vote.

 

The CCA would be responsible for agreeing its own constitution, including chairing arrangements, meeting procedures and decision-making processes.  Whilst the work to develop a constitution would not be finalised until the outcome of the consultation was known and the decision made on whether to formally proceed, some aspects had been agreed in principle, including that Lancashire County Council would Chair the CCA, and that this and the rest of the constitution would be subject to annual review.  The CCA would have a Scrutiny Committee, as well as an Audit Committee.  In addition, the CCA could establish sub-committees or advisory boards as it deemed necessary.

 

District Council involvement

 

The Combined County Authority model, as established by the Levelling-up and Regeneration Act 2023, stated that only upper tier local authorities could be constituent members.  However, it was recognised that it would be essential to ensure that the voice of the district councils in Lancashire was heard.

 

To achieve that, district councils would be invited to nominate two “non-constituent” members to serve as members of the CCA.  The Act gave the CCA the right to grant voting rights to the non-constituent members.  The responsibility for agreeing any such rights would rest with the constituent members of the CCA and would be set out in the CCA’s constitution.

 

Business Voice

 

The involvement of business would be necessary to deliver the CCA's aims and ambitions.  To achieve this, a “Business Board” would be established.  Whilst it would not be a formal part of the CCA’s own governance structure, it would link closely to the CCA on matters connected to business, economic growth, skills and investment, and its views would be sought by the CCA on these and other issues.

 

A business representative would also have a seat at the CCA table as an associate member.

 

Consultation

 

In accordance with the Levelling-up and Regeneration Act 2023, the next step towards the potential creation of the CCA was consultation on the Proposal.  During this consultation, the three authorities committed to actively seeking the views of the public and key stakeholders in order to inform the Councils’ decisions on the final proposals.  The consultation would run for 8 weeks in December 2023 and January 2024.

 

The results of the consultation would be considered by further meetings of all three Councils in March 2024.

 

The full details about the proposed consultation were included in the Proposal document.

 

Next Steps

 

The results of the consultation would be considered in March 2024 when the Councils were asked to agree the final Proposals for submission to Government.  The devolution agreement and creation of the Combined County Authority would then be subject to formal Parliamentary approval in summer and autumn 2024.

 

Councillors Smithson, Z Khan and Younis spoke in favour of the establishment of the CCA, although there was some acknowledgement that the Level 2 model had limitations and posed certain challenges.  Members commented that, overall, the deal:

 

• built upon a long history of local authorities in this sub-region working together; and
• was the best deal available under the prevailing circumstances.

 

Councillor J Allen criticised the level of engagement by the upper tier authorities with district councils about the deal, but was not against the devolution deal per se.

 

Councillors P Cox, Dad, Dawson, Booth, Fisher and Brerton spoke against the creation of the CCA.  Comments raised included the following:

 

• the proposal was not ambitious enough, in comparison with Level 3 deals already agreed in the North West;
• a lack of consensus across other Lancashire district councils;
• loss of local decision-making powers on key issues;
• lack of local accountability;
• concern that the proposal was a step towards creation of more unitary authorities;
• lack of a common vision due to different demographics across the CCA area;
• the funding available for a Level 2 deal was poor, in comparison with the deals achieved in Level 3 areas, including Greater Manchester or Liverpool City Region; and
• UKSPF monies currently provided directly to Hyndburn BC were likely to shift to the new CCA.

 

Councillor Haythornthwaite commented some councillors appeared not to have read the on-line consultation information or attended the briefings and were not in sync with the views of their political counterparts at LCC.

 

It was MOVED and SECONDED

 

“That the Council supports the draft proposal for the creation of a Lancashire Combined County Authority (CCA) for the administrative areas of Blackburn with Darwen, Blackpool and Lancashire.”

 

In accordance with Council Procedure Rule A16.5, six Members present requested a recorded vote on the motion.

 

The MOTION was then put to the VOTE.

 

For the Motion

 

Councillors Judith Addison, Peter Britcliffe,  Loraine Cox, Peter Edwards, Carole Haythornthwaite, Terry Hurn (Mayor), Zak Khan, Sajid Mahmood, Kath Pratt, Steven Smithson, and Mohammed Younis.

 

Against the Motion

 

Councillors Noordad Aziz, Mike Booth, Scott Brerton, Steve Button, Andrew Clegg, Jodi Clements, Paul Cox, Munsif Dad BEM JP, Bernard Dawson MBE, Melissa Fisher, Abdul Khan, Colin McKenzie, Caroline Montague, Dave Parkins, Paddy Short, Kate Walsh, Kimberley Whitehead.

 

Abstentions

 

Councillors Josh Allen andDanny Cassidy

 

Accordingly, the MOTION was LOST.

 

Following a question by Councillor Aziz, the Chief Executive confirmed that a response would now be made to the formal consultation, indicating that the Council had rejected the draft proposals for the creation of a Lancashire Combined County Authority.