Policy background
Devolution
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At the time of passing of this Act, there has already been devolution in the form of City Deals, Growth Deals and the more recent devolution agreements between the Government and Greater Manchester, Liverpool City Region, Sheffield City Region, West Midlands, the North East, Tees Valley and Cornwall. The Government's first devolution agreement with Greater Manchester made on 3 November 2014 provided for an offer of powers and budgets from Government on the basis that Greater Manchester would deliver certain reforms and measures. Central to this agreement is a reformed governance system for the Greater Manchester Combined Authority which will involve adopting a model of a directly elected mayor covering the whole of the Greater Manchester Combined Authority area, and the combined authority receiving a number of new powers from local authorities, other local public services and devolved powers from government departments and agencies.
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In its manifesto the Government committed to devolve powers over budgets to boost local growth in England. The Government is ready to have conversations with any area about the powers that area wishes to be devolved to it and about their proposals for the governance to support these powers if devolved. The Government's intention is to conclude bespoke devolution deals with areas. Such deals may involve functions being conferred on county councils, district councils and combined authorities. This Act allows functions of public authorities to be conferred on county councils, district councils and combined authorities, including broadening the scope of powers that it is possible to confer on a combined authority.
Combined Authorities
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Part 6 of the Local Democracy, Economic Development and Construction Act 2009 contains powers which enable the Secretary of State to make an order establishing a combined authority for an area which meets certain specified conditions. A combined authority is a corporate body which, under Part 6 of the Local Democracy, Economic Development and Construction Act 2009 as originally enacted, enables local authorities to work jointly to deliver improvements in economic development, regeneration and transport across a functional economic area. Before making an order the Secretary of State must be satisfied that its creation will improve the efficiency and effectiveness of transport and economic development in the area; and Parliament must approve the order. Five combined authorities have so far been established.
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The Government considers that combined authorities are suitable governance structures to undertake a greater set of functions within their local area. This Act broadens the scope of powers that it is possible to confer on a combined authority and on all other local authorities including those in non-metropolitan areas.
Elected Mayors
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As stated in the manifesto commitment, "we will devolve far-reaching powers over economic development, transport and social care to large cities which choose to have elected mayors". With the devolution of powers from the centre to cities to give them greater control over powers currently exercised by ministers over transport, housing, skills and healthcare, the Government considers that it is necessary for the people of the area to have a single point of direct accountability. The Government's view is that for cities, elected mayors for combined authority areas will achieve this and ensure the continuation of strong democracy.
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The Government will consider on a case by case basis the merit of transferring functions of a police and crime commissioner to the mayor of a combined authority area.
Sub-national Transport Bodies
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To support local growth, such as the Northern Powerhouse, Government is putting Sub-national Transport Bodies on a statutory footing. This will enable decisions to be taken at sub-national level on transport matters with the aim of furthering economic growth in the areas concerned.
