Chief Executive to report.

The Chief Executive provided an update to the Committee on the Team Devon Devolution discussions.

He highlighted the following:

·       The Government had recently published a Levelling Up White Paper which set out a new devolution framework for England. This White Paper made it clear that it did not relate to the re-organisation of local government.

·       This extended devolution beyond metropolitan areas and set out pathways to a devolution deal for every area of England.

·       Devon had been invited to start formal negotiations to agree a new County Deal.

·       Over the past 2-3 years, the relationship between Local Authorities and Devon County Council had built up as a result of working together to provide a community response to Covid.  During this time a substantial amount of trust and understanding of each other developed.

·       The White Paper made it clear that Mayoral arrangements were not a requirement for a County Deal to be approved.

·       The devolution framework was underpinned by four principles: effective leadership, sensible geography, flexibility and appropriate accountability.

·       Team Devon Leaders and Chief Executives had agreed to submit an expression of interest for a County Deal, which had been approved to enable further negotiations to take place.  The collaborative working had now been expanded to include Plymouth and Torbay.

·       Team Devon had agreed 8 priorities theme areas to form part of its negotiations.  Following Government approval of the expression of interest, further discussions had started to take place.

·       Two calls had been held with Ministers to date.  The Government had requested the completion of a pro-forma to detail what Team Devon would like to be included in the County Deal by 25 March 2022 which would then form the basis of further negotiations with Government.

·       The three levels set out in the devolution framework were: Level 3 – a single institution or County Council with a directly elected mayor (DEM), across a functional economic area (FEA) or whole county area; Level 2 – A single institution or County Council without a DEM, across a FEA or whole county area; and Level 1 – Local authorities working together across a FEA or whole county area e.g. through a joint committee. Level 3 represented the Government’s preferred model of devolution, but they have been clear that this will not suit all areas at present, and that the framework would instead allow areas to deepen devolution at their own pace.  

·       Unlike in some areas, the district councils would also be represented at and play an active role in those discussions.

·       Team Devon had agreed to proceed with Level 2 with Level 3 powers. This approach had been adopted in other areas.  There was now a requirement for Team Devon to formulate its governance arrangements; to demonstrate how it would meet the four principles; and to build upon its collaborative approach.

·       All parties involved have agreed that they were not interested in any discussions about local government reorganisation or the formation of a unitary council for Devon.

·       In all likelihood, the structure would take the form of a Combined Authority headed up by a Leader. That Combined Authority would be created to administer the new powers only.  District Councils, Unitary Authorities and Devon County Council would continue with its current functions. 

·       At present the Chair of the Devon District Councils Forum, Leader of Devon County Council and Leaders of Plymouth and Torbay Unitary Authorities would be appointed to the Combined Authority Joint Committee. Negotiations were taking place regarding the appointment of representatives from District Councils to the Combined Authority.

·       If Devolution arrangements were not in place, the UK Shared Prosperity Fund would be allocated to either Unitary Authorities or District Councils.  If Devolution arrangements were in place, the Prosperity Fund would be allocated to the Combined Authority to administer based upon the investment places that had been put in place.  There was a requirement for further discussions to take place across Devon as a collaborative approach would be required to deliver some projects.

In response to questions, the Chief Executive advised the following:

·       Combined Authorities that had been set up previously had the same powers as principal authorities.  However, under the Devolution deal, separate legislation would be passed setting out the legal status of the Combined Authority.  Shadow arrangements maybe put in place for a short period of time.

·       A briefing paper was in the process of being prepared on behalf of Team Devon. This would then be circulated to all Councils forming part of Team Devon.

·       The Combined Authority would only administer new powers.  The White Paper had made it clear that the Government’s preference was to deal with Unitary or Combined Authorities.

·       As Northern Devon had experienced a greater impact as a result of Covid, there was a need to continue to lobby to ensure that there was representation on the Combined Authority Joint Committee.