Document 12926131

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Agenda Item No______3______

Report on Devolution - Update

Summary:

Conclusions:

This report provides Members with an updated position on the shape of the devolution proposal and the priorities which form the proposition

Detailed proposals and agreement to a deal will require each organisation to take decisions through their appropriate governance arrangements over a longer timescale. Council will continue to be updated as the process develops.

Recommendations:

Cabinet Member(s)

Tom FitzPatrick a. b.

Endorse the proposal at Appendix 1 (subject to the refinements and enhancements as agreed by Leaders at their meeting on 14th

October) as the basis for the Challenge

Session Team to use at the Challenge

Session; and

To give delegation to the Leader of the

Council to continue to enter into a dialogue on devolution and develop the proposition into a formal Devolution Deal.

Ward(s) affected

All

Contact Officer, telephone number and email:

Sheila Oxtoby, Chief Executive, 01263 516000, Sheila.oxtoby@north-norfolk.gov.uk

1. Introduction

1.1. This report provides Members with an updated position on the shape of the devolution proposal and the priorities which form the proposition. Following the submission of a Norfolk and Suffolk offer letter, the framework for a Norfolk/Suffolk proposal was agreed on 22 September and officers have split the work into a number of worksteams:

1.2. These are outlined under the following headings as at Appendix 1. a. Governance and Principles b. Productivity, Business support and inward investment c. Coherent Housing and Planning d. Assets and infrastructure (Including Flooding) e. Education, Employment & Skills f. Health and Social Care g. Blue light services h. Finance

1.3 Each workstream lead is working with officers & partners from across the 2 counties and meeting with advisors and experts from central government to develop a

Norfolk/Suffolk Devolution proposal for discussion at the Challenge Session. The latest version is attached at Appendix 1. This Council has been involved in detailed discussions on finance, governance, housing and planning and assets and infrastructure.

1.4. On 4 November there will be a ‘Challenge Session’ with government Ministers which will be led by a Norfolk Challenge Session Team comprising of 6 Leaders and

Chairman of the New Anglia LEP, Mark Pendlington. The purpose of this session is to take forward the conversation with the Government Minister based upon the document at Appendix 1. However it is important to note that the Leaders are not being asked, at this stage, for an agreement to enter into a deal simply to take forward the proposal and enter into a dialogue.

There is still some further refinement and enhancement required to the content of the document at Appendix 1 following a meeting of all Norfolk and Suffolk Leaders on

14th October 2015. These will need to be incorporated ahead of the Challenge

Session on the 4th November as they require ‘sign off’ by all Leaders.

1.5 Depending on the outcome of the Challenge Session with Government, we will then be negotiating the headlines of a deal. Detailed proposals and agreement to a deal will require each organisation to take decisions through their appropriate governance arrangements and will be over a much longer timescale. Council will continue to be updated as the process develops.

2. Background

2.1 Both Norfolk and Suffolk submitted individual Devolution ‘bids’ to Central

Government in September in response to the request to feed into the Spending

Review. The Government indicated that the individual bids from each County contained many interesting and attractive proposals, with many areas of common interest. However, they also indicated that the bids were on too small a population base to be considered and were looking for bids covering closer to a 2million population. However, there has been no formal feedback on either of the bids.

2.2 This is typical of the approach taken by Government officials to Devolution which does not follow a pre-set process, meaning there is little traditional structure and guidance. At each discussion, new information comes to light about expectations and it is clear that, whilst there is clearly an appetite amongst ministers for devolution and localism, each area has been encouraged to develop proposals without a template.

3. Timetable

3.1 Three meetings have been held (9 & 22 September and 14 October) involving

Leaders, New Anglia LEP and representatives from Central Government to discuss the possibility of a joint Suffolk-Norfolk Devolution proposal. At the meeting on the 22

September, a provisional framework was agreed and officers have been working to develop more detail against this framework.

3.2 As a result of agreeing the provisional joint framework, Norfolk and Suffolk are engaged in intensive work to prepare for the Ministerial Challenge Session. Whilst a challenging timetable, it offers the opportunity to: showcase Norfolk’s and Suffolk’s

assets as well as to challenge and influence Government thinking on the Spending

Review (prior to the 25th November Autumn Statement) and particularly, its approaches to devolution.

3.3 As yet, no non-metropolitan, two tier devolution deal has been agreed and the current work provides the opportunity to influence the content, process and thinking and ensure that such a devolution deal would work to the greatest benefit for local people. This ‘early mover advantage’ enables greater influence to ensure that proposals bring the greatest benefit for people, places and partners in Norfolk and

Suffolk rather than waiting for a less locally sensitive central model to be imposed. It also sets a more balanced and open ongoing relationship between central government and local partners in Norfolk and Suffolk.

3.4. Whilst Government describes all deals as needing to be fiscally neutral, experience has shown through City Deals and other similar negotiated settlements, more funding and flexibility is available to the early deals. Deals agreed in Manchester and

Sheffield for example include funding from Government which is unlikely to be available for later deals.

4. Conclusion

Key Principles which have been established and agreed by all Leaders

• There can be no agreement to a Norfolk and Suffolk devolution ‘deal’ unless it is clearly demonstrably beneficial to Norfolk and Suffolk.

• Every individual Council and New Anglia LEP has to sign up to any agreement and hence we can only move forward on the basis of consensus.

Double devolution to Districts and/or clusters of Districts and the principle of subsidiarity are integral and pave the way for devolution and hence must form a key element in a Norfolk and Suffolk Combined Authority arrangement.

New governance arrangements must add value in terms of this government ’s priorities, particularly those of housing growth, employment growth and increased prosperity.

4.1 Ultimately, if the Challenge Session indicates that Norfolk and Suffolk’s ideas can be developed into a formal Devolution Deal, then we will be expected to work with

Government to produce something similar to the Cornwall Devolution Deal or the more recent Sheffield City Region Devolution Deal. There therefore remains a significant amount of detail to be developed.

5.

Recommendations

Council is asked to: a. Endorse the proposal at Appendix 1 (subject to the refinements and enhancements as agreed by Leaders at their meeting on 14th October) as the basis for the Challenge Session Team to use at the Challenge Session; and

b. To give delegation to the Leader of the Council to continue to enter into a dialogue on devolution and develop the proposition into a formal Devolution

Deal.

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