Liverpool City Region Combined Authority (Functions and Amendment) Order 2017 — House of Lords, 2017-03-16
Topic: Government Operations
George Young (Conservative, Centre-right): Well, let us see if we have less trouble over this one The draft orders, if approved and made, will confer important new powers on the mayors and the combined authorities for the Liverpool City Region and the Tees Valley. The Government have of course already made significant progress in delivering their manifesto commitment to devolve far-reaching powers and budgets to large cities in England which choose to have directly elected mayors. In this House, we have now debated and approved a number of orders devolving powers to places including Greater Manchester, the West of England and more recently Cambridgeshire and Peterborough. We have also considered and approved an order enabling the Tees Valley mayor to take steps necessary to establish a mayoral development corporation; that is to be complemented by the order we are considering on Tees Valley today. We are grateful to the House for the attention it has given to these matters. Following our last debates, my colleague the noble Lord, Lord Bourne, has written to noble Lords, as he undertook to do. I hope that we are now drawing to the end of this first devolution journey, with possibly just a few more orders after those we are considering today The draft Liverpool City Region Combined Authority (Functions and Amendment) Order 2017 brings to life the devolution deal which the Government agreed with the Liverpool City Region constituent councils in November 2015. We are taking that deal forward with the combined authority and its six constituent councils: Halton, Knowsley, Liverpool, St Helens, Sefton and Wirral. The deal agreed between the Government and the Liverpool City Region means that the area will receive: a devolved transport budget and transport powers to help provide a more modern, better-connected network; new planning and housing powers to manage planning across the region; and control over an investment fund of £30 million a year for 30 years Noble Lords will want to know that the basis of the draft order is the governance review and scheme prepared by the combined authority and the six constituent councils of the Liverpool City Region in accordance with the requirement in the Local Democracy, Economic Development and Construction Act 2009. The combined authority and the six constituent councils published that scheme in June 2016 and, as provided for by the 2009 Act, consulted on the proposals in the scheme. That was a public consultation entirely undertaken by the authorities concerned. They decided the approach, which was a matter for them. The consultation ran for six weeks and was undertaken through a variety of methods and media, including engagement with regional and local media, web content, social media, workshops with elected members, targeted letters to key stakeholders, as well as material available in libraries and local council town halls. As statute requires, the combined authority provided the Secretary of State with a summary of the responses to the consultation. Before laying the draft order before Parliament, the Secretary of State considered the statutory requirements in the 2009 Act, and considers that they have been met in relation to proposals to confer functions on the Liverpool City Region Combined Authority In short, having regard to the summary of consultation responses, which had been submitted to him, the Secretary of State concluded that no further consultation was needed. He considered that conferring the functions on the Liverpool City Region Combined Authority would be likely to lead to an improvement in the exercise of the statutory functions across the Liverpool City Region. In this consideration, he has had regard to the impact on local government and communities. Most significantly, the combined authority and six constituent councils have consented to the making of the order—that is, the democratically elected representatives of the area have agreed to the making of the order, if Parliament approves As required by the 2016 Act, we have in parallel with the draft order laid a report before Parliament which sets out the details of the public authority functions that we are conferring on the Liverpool City Region through the order. Noble Lords may recall that the requirement for this report was one of the additions that this House made to the 2016 Act during its passage. If approved by Parliament, the draft order will come into effect the day after it is made, except for the functions which are to be exercised by the mayor. The mayoral provisions will take effect on 8 May this year when the first mayor takes office The draft order gives effect to many of the proposals in the combined authority’s June 2016 scheme, which reflects the agreed devolution deal. If approved and made, it will confer the following powers and functions on the combined authority to be exercised by the mayor: a duty to prepare a Liverpool City Region Combined Authority spatial development strategy, enabling an integrated approach to spatial planning; powers on land acquisition, disposal and housing, including a compulsory purchase power—the same powers as the Homes and Communities Agency and councils; power to call in planning applications of potential strategic importance; power to designate mayoral development areas, leading to the creation of mayoral development corporations; powers to work with the combined authority to draw up a local transport plan, leading to a joined-up approach to transport across the area, recognising that efficient transport is fundamental to securing economic, social and environmental objectives; and powers to enter into agreements with constituent authorities, to establish and manage a key route network of strategic roads in the combined authority’s area. In addition to their existing transport and economic development powers, the combined authority will exercise powers and functions of: having the final say on the mayor’s spatial development strategy and local transport plan; promoting road safety; and regulation of traffic These new powers will enable the Liverpool City Region to take a strategic approach to driving development and regeneration and stimulating economic growth, supporting effective use of the £900 million devolved budget. The draft order also provides for the necessary constitutional and funding arrangements to support the mayor and the combined authority I now turn to the draft Tees Valley Combined Authority (Functions and Amendment) Order 2017. This draft order will be another important step to bring to life the devolution deal that the Government agreed with the Tees Valley in October 2015. The deal agreed means that the area will receive: a devolved transport budget and transport powers to help provide a more modern, better-connected network; control over an investment fund of £15 million a year for 30 years; and new housing and regeneration powers for growth across the region. Noble Lords will recall that the implementation of the Tees Valley devolution deal agreed between local leaders and the Government has already seen three orders made in relation to the Tees Valley. The most recent of these was about devolving powers for a mayoral development corporation. We brought this last order forward in advance of today’s order, as the area is eager to establish a mayoral development corporation in South Tees on which an 11-week consultation had already been undertaken This draft order has been prepared on the same basis as I have described for the Liverpool City Region order. If approved and made, the order will come into effect on 8 May when the first Tees Valley mayor takes office, with the exception of the provision relating to the establishment of an independent remuneration panel, which will come into force on the day after the order is made to enable the combined authority to make any necessary arrangements Let me turn briefly to the detail. The draft order will confer the following powers, to be exercised by the mayor, on the combined authority: powers to pay grants to the five constituent councils of the Tees Valley Combined Authority, with the condition that the mayor has regard to the desirability of ensuring that the councils have sufficient funds effectively to discharge their highways functions; and powers to produce a local transport plan for the area. The draft order also provides that the functional power of competence, already exercisable by the combined authority, is also exercisable by the mayor. Finally, the draft order confers various powers on the combined authority: powers to provide local passenger transport services—these powers were already delegated to the combined authority by the Tees Valley Combined Authority Order 2016; the duty to review housing need in the area; and funding and constitutional provisions to support the powers and functions conferred, including the establishment of an independent remuneration panel to recommend the allowances of the mayor In conclusion, the two draft orders devolve new, far-ranging powers to the Liverpool City Region Combined Authority and to the Tees Valley Combined Authority, giving effect to the bespoke devolution deal of each area, putting decision-making into the hands of local people, and helping the two areas fulfil their long-term economic and social ambitions. The draft orders are significant milestones contributing to greater prosperity in the Liverpool City Region and the Tees Valley and paving the way for a more balanced and successful economy and improving housing supply across the country. I commend the two draft orders to the House.