Greater Manchester Combined Authority (Election of Mayor with Police and Crime Commissioner Functions) Order 2016 — House of Lords, 2016-03-23
Topic: Government Operations
Susan Williams (Conservative, Centre-right): My Lords, I shall speak also to the draft Tees Valley Combined Authority Order 2016, which was laid before this House on 11 February. We will also be considering today the amendments to the Motions in the name of the noble Lord, Lord Beecham. I would simply say for now that the various wider local-government funding matters that these amendments touch on are wholly separate from what these orders and the devolution deals are all about. These deals are about promoting economic growth and prosperity for the area, providing investment and giving local places the powers to decide what to invest in and where. That is quite different from how local services are funded If these orders are approved and made, they will deliver significant milestones in fulfilling our manifesto commitments to implement the historic devolution deal between the Government and Greater Manchester and to devolve far-reaching powers over economic development, transport and social care to places that choose to have elected mayors. We want a shift in power from central government to local government, with decentralisation bringing power closer to local communities. We are committed to devolving powers and budgets to Tees Valley, to Greater Manchester and to other areas. We are committed to this so that places can achieve their potential and take control of their own growth, and so they can play their part in rebalancing our economy, including building the northern powerhouse: a powerhouse which has massive potential to add an extra £37 billion to our national economy by the next decade If approved and made, the Tees Valley order will establish a combined authority with functions in relation to economic development, regeneration and transport across the Tees Valley. It provides for there to be rigorous scrutiny arrangements, with the chairman of any scrutiny committee required not to be a member of the majority political party. This puts on a statutory basis the close working which already exists between the five constituent authorities and their partners, including the Tees Valley Unlimited local enterprise partnership. This close working will enable the Tees Valley to work together even more efficiently and effectively to promote economic growth, to secure investment and to create jobs The order is laid under the Local Democracy, Economic Development and Construction Act 2009, as amended by the Cities and Local Government Devolution Act 2016. As the statute requires, before laying the order, the Secretary of State has considered whether the proposal for a combined authority satisfies the statutory tests. I can confirm that they have been unambiguously met. The Secretary of State considers that establishing this combined authority is likely to improve the exercise of the statutory functions, and in reaching the decision to lay the draft order, he has had regard to the impact on local government and communities This order is the first step towards devolution in Tees Valley. Further orders will be laid later this year to create the position of mayor—to be elected in May 2017—and to confer on the combined authority and the mayor the additional responsibilities set out in the devolution deal, including powers for a mayoral development corporation I turn now to the order for Greater Manchester, where there has been a combined authority since 2011. This order takes further steps in the devolution journey by creating the position of a directly elected mayor for Greater Manchester, with the first election to be held in May 2017, and specifying that the first mayoral term will be for three years, with the next election in May 2020, with four-year terms subsequently The order also specifies that the Greater Manchester mayor will exercise the functions of a police and crime commissioner, cancels the May 2016 elections for a Greater Manchester police and crime commissioner and extends the current police and crime commissioner’s term of office until May 2017, when the mayor will be elected. To hold an election for a police and crime commissioner who would hold office for just one year would make no sense, either democratically or in terms of value for money Both orders are laid before Parliament following the statutory process specified in the 2009 Act, as amended. As required, all of the constituent councils have consented to these orders being made, and the Government have laid the draft order having considered the statutory requirements. As required, we are now seeking Parliament’s approval before making the orders The other place has approved each of these orders, and the noble Lord, Lord Beecham, has indicated publicly his support for devolution, for devolution agreements with Greater Manchester and the Tees Valley and, indeed, for the orders, which the regret Motions before the House in his name welcome I turn to the amendments. In essence, they focus on—regret—two matters. First, they assert that the devolution agreements were conditional on there being an elected mayor and that that is to be regretted, and that resources for these deals are inadequate. Secondly, they regret the Government’s policies on the broader issue of local government funding—that is, regret the measures that this Government have had to take to put right the economic chaos that the coalition faced, with a deficit of more than 10% of GDP As to mayors and the devolution agreements, there are simply two points which have been made on many occasions in this House. First, nobody has been required to have a mayor. Secondly, it would be irresponsible of any Government to put in place devolution of the scale and ambition as in Tees Valley and Greater Manchester without the clear, single point of accountability that an elected mayor can bring. As for resources for these deals, the devolution agreements provide funds for investment which the Government are absolutely committed to deliver. Devolution is an ongoing and iterative process, and we are committed to continue to discuss with places such as Tees Valley and Greater Manchester what else would help meet the needs of the place As for the funding of local government, when local authorities account for a quarter of public spending, they must carry their share of reducing the remaining deficit. To date, I must say that they have played their part in deficit reduction with great responsibility, so that public satisfaction with their services has been maintained or even improved The Government are clear that we have delivered a fair settlement to every part of the country, while giving councils greater financial independence so that they can deliver sensible savings while protecting front-line services The settlement, including the transitional grant, means that no council receives less than we announced in the provisional settlement. The settlement is broadly flat in cash terms between now and 2020. Resources are distributed fairly, taking into account the main resources available to councils. The gap in spending power between urban and rural authorities continues to reduce. We have given councils the multi-year budgets they have asked for and helped to transition from the old, centrally funded world to the new one of localised income. We have responded to their request for support for the elderly by providing £3.5 billion through the social care precept and the better care fund However, as I said, this is all a separate matter from what the orders are about. They are about delivering devolution, about giving local authorities the power to set their own policy agendas, the power to target their spending priorities to match, the power to drive growth, and power supported by investment funds, to which we are committed in the deals. I commend the orders to the House. They are a milestone on the devolution journey leading to greater prosperity, a more balanced economy, and economic success across the country. I beg to move.