Recommendations & Conclusions
23 items
1
Conclusion
Fourth Report - Progress on devolution …
There has been important progress with devolution in England since our predecessor committee’s report in 2016. But further progress can and should be made over the course of this Parliament. The remainder of this report sets out our recommended next steps for extending devolution. (Paragraph 17) The role of central …
Government response. Since the Committee’s last report in 2016, some progress towards decentralisation has recently been made. Over 40% of the English population now live in areas with directly elected city region mayors, including 63% in the North of England. Since the …
Ministry of Housing, Communities and Local Government
2
Recommendation
Fourth Report - Progress on devolution …
Devolution across the United Kingdom has been pursued for different purposes, and its scope, structure, and geography reflect this. There needs to be clarity on the most important purposes of English devolution. This can then guide discussions on the appropriate geography and institutions that are needed. The Government should clearly …
Government response. While talent is spread equally across our country, opportunity is not. Levelling up is a mission to challenge, and change, that unfairness. Levelling up means giving everyone the opportunity to flourish. It means people everywhere living longer and more fulfilling …
Ministry of Housing, Communities and Local Government
3
Conclusion
Fourth Report - Progress on devolution …
To embed devolution at the heart of central government the new Secretary of State for Levelling Up, Housing and Communities should be responsible for vigorously driving forward English devolution and this should be explicitly stated as one of his responsibilities. Our predecessor committee’s recommendation of permitting local authorities to report …
Government response. To put spatial considerations at the centre of the Government’s decision making, a new Levelling Up Cabinet Committee has recently been established. This is tasked with embedding levelling up across central government policy design and delivery. The committee will also …
Ministry of Housing, Communities and Local Government
4
Recommendation
Fourth Report - Progress on devolution …
The lack of transparency and public engagement in the negotiation of devolution deals have not been addressed since our predecessor committee’s 2016 report. Both have remained minimal. We reiterate our predecessor committee’s recommendation that there should be greater efforts to engage the public before as well as after negotiations, through …
Government response. The Government has committed to an extensive and comprehensive process of engagement and informal consultation across the whole of the UK on the proposals in this White Paper. The Government has published a devolution framework, so that local partners are …
Ministry of Housing, Communities and Local Government
5
Recommendation
Fourth Report - Progress on devolution …
We approve of the principle of a devolution framework. It will provide clarity as to what is available for devolution. The Government should work with local government and other stakeholders to produce a devolution framework. To succeed, the framework must provide flexibility and be grounded in a comprehensive consultation with …
Government response. The White Paper sets out, for the first time, a devolution framework for England. It provides a roadmap for places in England that wish to unlock the benefits of devolution, whether that is moving towards a London-style transport system to …
Ministry of Housing, Communities and Local Government
6
Conclusion
Fourth Report - Progress on devolution …
Instead of using Greater Manchester as a yardstick, all existing places with devolution deals should be offered the same powers as all others currently have. They may not choose to immediately take them up, but the option should be available. (Paragraph 50) Financial devolution
Government response. The Levelling Up White Paper sets out the Government’s mission to extend, deepen and simplify devolution across England so that by 2030, every part of England that wants a devolution deal will have one with powers at or approaching the …
Ministry of Housing, Communities and Local Government
7
Recommendation
Fourth Report - Progress on devolution …
We reiterate our recommendation from our recent report into local authority financial sustainability that the Government should allow councils to retain 75% of business rates from 2022, and that it should not impose commensurate cuts to grant funding. The additional funding should then be put towards equalisation in a separate …
Government response. In the interests of providing stability, the rates and system of business rates retention will remain as last year in 2022/23. The Government is committed to ensuring that funding allocations for councils are based on an up-to-date assessment of their …
Ministry of Housing, Communities and Local Government
8
Recommendation
Fourth Report - Progress on devolution …
Financial devolution is necessary to ensure the success of devolution through giving devolved authorities greater freedom from central government, enabling them to take longer-term decisions reflective of their strategic purpose, and enhancing their direct accountability to their electorates. It must be accompanied by redistributive measures to ensure areas with lower …
Government response. As the Committee is aware, local authorities are funded through a combination of central government grants and local taxes and charges. Council Tax and Business Rates are the primary sources of tax revenue for local government. The GLA and most …
Ministry of Housing, Communities and Local Government
9
Recommendation
Fourth Report - Progress on devolution …
The Government should commission research into how income tax or other national tax revenue could be allocated to local and combined authorities, or how a local income tax across a combined authority area could work, including details of tax setting, funding equalisation, and how HMRC can better identify where taxpayers …
Government response. The Government has no plans to hypothecate revenue from national taxes to local or combined authorities. Doing so would make it harder to pool and share our resources effectively. In contrast, the existing arrangement of funding local and combined authorities …
Ministry of Housing, Communities and Local Government
10
Recommendation
Fourth Report - Progress on devolution …
The Committee has persistently sought clarity from the Government about how the UK Shared Prosperity Fund will work. The Government has had over four years to design and bring forward a coherent alternative to the European Development Funds that will completely end in 2023. This delay has been unacceptable and …
Government response. Recommendation: The Committee has persistently sought clarity from the Government about how the UK Shared Prosperity Fund will work. The Government has had over four years to design and bring forward a coherent alternative to the European Development Funds that …
Ministry of Housing, Communities and Local Government
11
Recommendation
Fourth Report - Progress on devolution …
A sustainable approach to local government funding requires longer term budgetary arrangements and discretion for local authorities and combined authorities over how to spend. We therefore welcome that the 2021 spending review will be multi- year. This reflects the wider need for a long-term plan to support the finances of …
Government response. A sustainable approach to local government funding requires longer term budgetary arrangements and discretion for local authorities and combined authorities over how to spend. We therefore welcome that the 2021 spending review will be multi- year. This reflects the wider …
Ministry of Housing, Communities and Local Government
12
Recommendation
Fourth Report - Progress on devolution …
We retain our predecessor committee’s scepticism about whether health devolution accurately describes the current arrangements in Greater Manchester. It clearly does not in Cornwall and the Isles of Scilly. We support the recommendations of the Health Devolution Commission on the future of health devolution and the role that should be …
Government response. Recommendation: The devolution of the adult education budget should be part of the devolution framework, accompanied by transitional support and measures to mitigate differences in course options between areas. The same powers over adult education should be available to all …
Ministry of Housing, Communities and Local Government
13
Recommendation
Fourth Report - Progress on devolution …
The devolution of the adult education budget should be part of the devolution framework, accompanied by transitional support and measures to mitigate differences in course options between areas. The same powers over adult education should be available to all areas with devolution deals. Further education, in particular FE colleges, should …
Government response. The Devolution Framework identifies that areas which agree to Level 2 or Level 3 devolution deals will typically get Homes England compulsory purchase powers, to be held concurrently with Homes England. Level 3 (mayoral) devolution deal will also typically be …
Ministry of Housing, Communities and Local Government
14
Recommendation
Fourth Report - Progress on devolution …
The devolution framework should provide for the devolution to combined and local authorities of the spatial planning powers, call-in powers for planning applications, the powers to establish development corporations, compulsory purchase orders, consultation on strategic planning applications, and strategic infrastructure levies, currently exercised by some combined authorities. There should be …
Government response. Government has committed to introducing more mayoral and non-mayoral combined authorities which will allow more local authorities to develop strategic transport systems across local authority boundaries. The 2017 Bus Services Act gave Local Transport Authorities the potential for much greater …
Ministry of Housing, Communities and Local Government
15
Recommendation
Fourth Report - Progress on devolution …
The Government should consider the case for extending powers for Transport for London-style oversight of local buses to all transport authorities, whether combined or local authorities. Where transport services cross local authority boundaries, joint working relationships should be encouraged between the local authorities affected. Similarly, Network Rail, Highways England and …
Government response. Local authorities already have a combination of powers and responsibilities across housing, planning, transport, and procurement which gives them autonomy to deliver net zero. Most have passed local Climate Emergency motions, and many have set target dates for net zero …
Ministry of Housing, Communities and Local Government
16
Recommendation
Fourth Report - Progress on devolution …
We have heard, both in this inquiry and our inquiry into local government and the path to net-zero, that local government can play an important role in policies relating to energy efficiency. The Government should strongly consider the case for devolution of further powers in this area. It should also …
Government response. Last year the Prime Minister set out the Government’s intention to take a flexible approach to devolution, so that local leaders in our historic towns and counties, including in rural areas, are given the tools to make things happen for …
Ministry of Housing, Communities and Local Government
17
Recommendation
Fourth Report - Progress on devolution …
Devolution should not be restricted solely to urban areas. The Government must strive to ensure devolution deals are reached with rural areas. The Government must make pursuing devolution deals with non-metropolitan areas a priority. It should write to us with an update on its progress in this area no later …
Government response. Last year the Prime Minister set out the Government’s intention to take a flexible approach to devolution, so that local leaders in our historic towns and counties, including in rural areas, are given the tools to make things happen for …
Ministry of Housing, Communities and Local Government
18
Recommendation
Fourth Report - Progress on devolution …
There was a lack of consensus on the merits of moving to unitary authorities and resistance to making structural changes a condition of devolution. The combined authority model may not be appropriate in all places and should not be a condition of a deal. The Government should commission a review …
Government response. Local government reorganisation can help to simplify the patchwork of local government structures, creating institutions with both strong and accountable strategic leadership over an optimal geography for delivering high quality public services, and effective community engagement and leadership at the …
Ministry of Housing, Communities and Local Government
19
Recommendation
Fourth Report - Progress on devolution …
The devolution framework should clarify the relationship of local authorities with combined authorities. As we have noted devolution is not just about increasing the powers of combined authorities, but enhancing the powers of local government as a whole. The Government should continue to ensure Local Enterprise Partnerships 66 Progress on …
Government response. The devolution framework places a strong emphasis on joint working between local authorities across sensible and coherent economic geographies. Level 2 of the devolution framework is available to single local government institutions without a directly elected leader, such as Combined …
Ministry of Housing, Communities and Local Government
20
Recommendation
Fourth Report - Progress on devolution …
There is no consensus on the optimum structure for scrutiny in a devolved authority, including as to whether the London Assembly is superior to the existing combined authority structures. The new audit arrangements being introduced by the Government should consider the best way to conduct scrutiny and ensure greater transparency …
Government response. The Government recognises that there are significant complex challenges facing the existing local audit framework. It is committed to strengthening the local audit system so that it works more effectively for both taxpayers and local authorities, including combined authorities. The …
Ministry of Housing, Communities and Local Government
21
Recommendation
Fourth Report - Progress on devolution …
Scrutiny committees for combined authorities has been hindered by strict quorum rules. The Government should consider whether the quorum for combined authorities could be made one-half of the membership rather than the present two-thirds.
Government response. In the Levelling Up White Paper, the Government has committed to a new accountability framework that will apply to all devolved institutions in England. One of the focuses of this framework will be ensuring there are appropriate forums for local …
Ministry of Housing, Communities and Local Government
22
Conclusion
Fourth Report - Progress on devolution …
The Local Government and Social Care Ombudsman expressed concerns about its oversight of combined authorities, pointing to uncertainties over its jurisdiction and a loss of oversight when unitarisation occurred. We agree that proper complaints procedures should be in place in all combined authorities. The Local Government and Social Care Ombudsman’s …
Government response. The Local Government and Social Care Ombudsman have raised their concerns with the Department regarding their oversight of combined authorities and some town and parish councils. The Local Government and Social Care Ombudsman’s Triennial Review contained proposals intended to address …
Ministry of Housing, Communities and Local Government
23
Recommendation
Fourth Report - Progress on devolution …
There is a need for more data about combined authority and other sub-national areas. The Government, the Office for National Statistics, and the Chartered Institute of Public Finance and Accountancy should develop datasets to enable effective evaluation of combined authorities and other sub-national areas. The Government should also ensure there …
Government response. The UK Government is establishing a new body focused on local government data and transparency to enhance the Government’s understanding of place-based leadership, quality of local service delivery and organisational efficiency. Strengthening data will be the cornerstone of this body, …
Ministry of Housing, Communities and Local Government