Agenda item

Report No: COU/SE/16/010

(Councillors Tony Brown, John Burns, Terry Clements, Beccy Hopfensperger, David Nettleton and Sarah Stamp declared local non-pecuniary interests as Members of Suffolk County Council and remained in the meeting for the consideration of this item.)

Council considered Report No: COU/SE/16/010, which sought endorsement of the Norfolk and Suffolk Devolution Agreement, support for the Governance Review and agreement for a Scheme of Governance to be published for public consultation, as set out in the following appendices attached to the report:

Appendix A: Norfolk and Suffolk Devolution Deal Agreement

Appendix B: Norfolk and Suffolk Governance Review

Appendix C: Norfolk and Suffolk Scheme of Governance

After extensive negotiations between Government and the Norfolk and Suffolk Leaders, a proposed Devolution Agreement had been developed.  Council was required to assess whether to endorse the Devolution Deal Agreement at Appendix A and authorise the Leader to sign it.

Council was also asked to support the Governance Review and agree the publication of the Scheme of Governance.  This would allow the Council to report to the Secretary of State such views to inform his decision on the Devolution Deal and the Scheme for the Mayoral Combined Authority. 

The Devolution Agreement attached to the report was just the start of the Devolution process. Greater Manchester, the model for a number of the Devolution Deals, had now agreed the content of its fourth Deal and in April 2016 took on responsibility for the Health budget in the area. Members noted there was significant potential to extend the range of responsibilities, powers and funding in the coming months and years and endorsement of the report and its appendices sought to put into place the mechanisms to deliver increased local leadership for public services and greater autonomy over the levers for growth in this area. 

Councillor John Griffiths, Leader of the Council, drew relevant issues to the attention of Council, including firstly drawing attention to the following two changes to the report (which would also be considered by all authorities across Norfolk and Suffolk):

(a)     As a direct consequence of the EU Referendum result and following discussions with HM Treasury, paragraph 12 of the Norfolk and Suffolk Devolution Agreement (which related to the management of EU funding) at Appendix A was no longer valid.  This would not impact the Governance Review or Scheme of Governance; and as this was a corrective change, neither would it affect the recommendations contained in Report No: COU/SE/16/010.  This paragraph would therefore be removed from the version of the document, which if endorsed, was required to be signed by the Leader of the Council.

(b)     The third bullet point at paragraph 4.4 of Report No: COU/SE/16/010, should be amended to read, ‘a guaranteed £225m annual transport budget for the next five four years’.

Councillor Griffiths added that the decisions taken at this meeting were not the final decisions and did not legally commit the Council to participating in a Combined Authority, as detailed in Section 8 of the report. The final decision about whether the Council joined the Combined Authority would be for Council to take in October 2016, following consideration of the results of the consultation that was scheduled to run between 4 July and 19 August 2016.

He then provided the main elements of the first Deal, as set out in the report, and explained that this was a very significant deal, one of the most successful negotiations between an area and Government that there had been to date.

A  detailed discussion was held on:

(a)     the implications of a small number of Norfolk councils rejecting the proposals;

(b)     the implications of Great Britain leaving the European Union on the proposals;

(c)     whether, if agreed to join in October  2016, there was a possibility of the Council leaving the Combined Authority if it felt it needed to at some stage in the future; and

(d)     the details of how the consultation would be undertaken, which would largely consist of an online survey, but would be supported with samples of telephone and business responses.

The Leader responded to matters raised and upon invitation by the Mayor, was supported by the Chief Executive. Members noted that further information regarding the queries raised in (a) to (c) above would be clarified by the time the Council made the decision to join the Combined Authority or not.

The debate continued and some concern was expressed regarding the requirement of Government to have a Directly Elected Mayor and considered this to be an unnecessary layer of government.  In addition, some Members questioned the timetable and whether the consultation should be undertaken over the summer months when the level of response was likely to be lower than other times of the year; however, Members acknowledged that these matters had been set by Government as part of the Deal and were non-negotiable. 

Having recognised the significant opportunities that existed if local authorities had greater freedom with funding and responsibility for taking decisions locally in terms of delivering jobs, more homes, better roads, rail and digital connectivity for local people, places and businesses, Council generally supported the principle of devolution and considered the process should progress to the consultation stage, as proposed.

On the motion of Councillor Griffiths, seconded by Councillor Alaric Pugh, and duly carried it was

RESOLVED: That

(1)     The signing of the Norfolk and Suffolk Devolution Agreement by the Leader, be endorsed by the Authority.

(2)     On the basis of the Governance Review, and having regard to any impact on equalities explored in the Equalities Impact Assessment (EqIA), it be concluded by the Authority that the establishment of a Mayoral Combined Authority for Norfolk and Suffolk is the option which most fully permits the effective discharge of the functions that Government is prepared to devolve to this area.

(3)     The publication of the draft Scheme for a Norfolk and Suffolk Mayoral Combined Authority as attached Report No: COU/SE/16/010 for consultation purposes, be endorsed and supported by the Authority, subject to such final revisions as may be approved by the Chief Executive in consultation with the Leader, and prior to the commencement of the formal consultation exercise. Such formal consultation, on the Scheme, to commence once all Norfolk and Suffolk Councils have considered the matters in the report and, in any event, no later than the 4 July 2016. In the event that a Constituent Authority named in the attached Scheme does not agree to endorse the Deal Agreement and/or the Scheme, the Authority authorises, through its Chief Executive the relevant changes to be made to the Deal Agreement, the Scheme and the Governance Review to reflect that Authority’s non-participation.

(4)     The outcome of the consultation exercise be submitted to the Secretary of the State by the Chief Executive, in consultation with the Leader, by early September 2016.

(5)     Council meets by no later than 28 October 2016 to consider giving consent to an Order establishing a Mayoral Combined Authority for Norfolk and Suffolk.

(6)     Insofar as any of the matters referred to in Report No: COU/SE/16/010 concern the discharge of functions ancillary to the endorsing and signing of the Norfolk and Suffolk Devolution Agreement and the publication of the Scheme, authority be delegated to the Chief Executive in consultation with the Leader, to take all necessary steps and actions to progress the recommendations detailed in the report. 

(7)     Negotiations on the Deal agreement have only recently been concluded and the Review and Scheme have been subject to last minute change.  In the event that additional powers are required by the Combined Authority to deliver the Deal Agreement, authority be delegated to the Chief Executive, in agreement with the other Chief Executives across Norfolk and Suffolk to make the necessary changes to the Scheme.

(8)     Further reports be presented to the Authority, as appropriate, as the Devolution process develops.