Agenda item

At the 15 June OSM Board, members gave initial consideration to the devolution proposals.  It was also agreed that consideration of this particular issue should be adjourned to this meeting (27 June), to enable the Board to discuss the 29 June Cabinet and Full Council reports on these matters.  A copy of the 29 June Cabinet and Full Council reports are attached for background / information.

The views of the OSM Board will be reported to the 29 June Cabinet and Full Council meetings.

The Board noted that the 29 June Cabinet and Full Council reports had been pre-circulated.

Presentations were made by the devolution team covering:

1.      Present review deal and financial implications

·         Appropriate functional economic market area.

·         Current governance is complex.

·         Mayoral Combined Authority (MCA) most efficient arrangement to provide transparency, efficiency and accountability.

·         Engagement with a range of key stakeholders to inform development of the review.

·         Devolution deal brings resources and powers to address evidenced issues affecting the area’s productivity and sustainability (social, economic and environmental).

·         Finance:

-          New government grants - £30m x 30 years.

-          New revenue streams – supplementary business rate

-          New powers over existing money – transport and skills; allocation by the MCA; protection for unitary authority revenue.

-          Protection for existing City Deal funds.

-          Risks identified in securing Gain Share, allocating transport budgets and viability of FE colleges; mitigations developed.

2.      Present scheme and consultation

·         Scheme sets out the logistics of how the CA and Mayor will operate.

·         Aim of more efficient delivery of economic development and transport.

·         Four CA members; mix of voting arrangements.

·         No removal of UA powers or resources, nor imposition of liabilities.

·         Robust public scrutiny.

·         If scheme is approved, consultation would start on 4 July for six weeks; online and hard copy.

·         Consultation on scheme to inform Secretary of State creation of statutory order.

3.      Decision making process

·         Executive decision with opportunity for Full Council debate.

·         Cabinet will meet to make a recommendation to Full Council.  Cabinet will adjourn to allow a Full Council debate and will re-convene to decide in light of the Full Council debate.

·         No ability to call-in the decision as this will have been debated at scrutiny and Full Council, as well as Cabinet.

OSM comments for submission to Cabinet and Full Council:

OSM noted that the recommendations set out in the Cabinet and Full Council report will be determined / voted on as a “package” of interrelated recommendations.

Full Council will also consider any amendments proposed, setting out any additional points that Cabinet are asked to consider.

Having discussed all of the above, OSM

RESOLVED -  that, in considering the Combined Authority and Devolution proposals, Cabinet and Full Council be asked to note and endorse the following comments:

a.      Robust scrutiny – it will be essential to ensure that robust scrutiny is put in place, is ongoing, and appropriately resourced by each of the authorities.  It is noted that there will be legislative backing for the scrutiny role (currently this is not the case at a West of England level).

b.      Impact of reduced EU funding – following the EU referendum result, it is important to note that there will be a potential impact resulting from reduced EU funding.

c.       Environmental protection and equalities considerations: whilst recognising the vital importance of securing ongoing economic growth, it is also essential that reducing environmental impacts and inequality are central to the devolution agreement, and are key elements within the economic model.

d.      Metro-Mayor concerns: whilst noting that the Metro-Mayor is a requirement of the deal, there are concerns and reservations about the need for this governance solution, and on the processes around the appointment and powers of the Metro-Mayor.

e.      Consultation responses: if the scheme is approved, OSM wishes to meet in early-mid August to give consideration to the public consultation responses, and in light of that further consideration, may wish to submit further comments to the Secretary of State by the closing date of 26 August.  OSM also suggested that a provisional Extraordinary Full Council could take place before final consent is given by Cabinet if necessary.