West of England Devolution September 2016

Contents Brief background and how this emerged Summary of the deal The Governance Proposals Next Steps

BACKGROUND TO THE DEAL Scoping work in Autumn 2014 Leaders met with Lord Kerslake March 2015 21 July 2015, HMT released Spending Review guidance ‘City regions that want to agree a devolution deal in return for a mayor by the Spending Review will need to submit formal, fiscally-neutral proposals and an agreed geography to the Treasury by 4 September 2015.’ WoE Proposal submitted 4 Sep 2015 was an ambitious deal asking for an Investment Fund of £1bn over ten years. Deal Announced in March 2016 Budget Deal Ratified by 3 Councils 29 June 2016 – NSC Withdrew

Directly Elected Mayor DEAL SUMMARY Control of a new additional £900m Investment Fund Entry into further rounds of devolution Protects the integrity of the 3 individual UAs Transport budget, bus and key route network powers Powers over strategic planning and Government engagement on 5-year land supply and viability Responsibility for the 19+ Adult Education Budget, which will be devolved from academic year 2018/19. Enhanced inward investment and localised business support Protection of the existing City Deal Public commitment to future joint-working through CA Government Price: Directly Elected Mayor

SCALE OF THE DEAL

FINANCE – THE INVESTMENT FUND £900m over 30 years. The largest deal per head of population in the country. 50% Capital and 50% Revenue - Subject to 5-yearly gateways Option to borrow up front and deliver projects to drive economic growth / deliver housing numbers / deliver necessary transport infrastructure Option to manage Investment fund as 30 x 30 Combined Authority will procure an Economic Model to assess schemes against economic uplift, access to employment, environment etc. (pending procurement)

FINANCE – OTHER FUNDING STREAMS Mayoral Business Rate On Business Rates (with agreement of business via LEP), max 2p = £19m for WoE Single Pot (Transport, PBR, LGF) Current and future LGF including Local Transport Majors and Capital funding. Integrated Transport Block, Highways Maintenance Fund to Mayor. Funding known for 4 years. Would be assessed as highest maintenance Authority (£4m gain on £77m across WoE) Existing and round 3 Local Growth Fund (LGF) Adult Education Budget Post 18 Area Review completed

TRADE & INVESTMENT Co-working with Government/UKTI Portion of GREAT campaign budget for overseas activity and marketing (International Trade Shows) Regional co-ordinating function for FDI Realise the economic potential of the Science Park as a Flagship Centre for South Gloucestershire and for the West of England Support the Growth Hub and Rollout of Superfast Broadband

SKILLS, EMPLOYMENT, BUSINESS SUPPORT Adult Education Budget (19+): Local Commissioning 2017/18, Fully devolved budget 2018/19 BIS engagement on Advanced Learner Loans Control over Apprenticeship Grant for Employers Local priorities fed into 16-18 careers advice Co-design and co-commission the Work and Health Programme with DWP Develop a Pilot to extend HYPE (support those furthest from the job market)

PLANNING - ‘Accelerating the unlocking of barriers to growth’ JSP The WoE housing target will be confirmed by the JSP Still requires unanimous sign-off from the UAs to be adopted UAs commit to updated, ‘streamlined’ Local Plans to follow Supplementary Planning Documents Single Viability Assessment reduces the cost of argument and challenge and protects policy provision for affordable housing 5-year Housing Land Supply Protecting the plan-led approach by incentivising the delivery of the strategic sites – Discussions ongoing

STRATEGIC PLANNING Call-in Cross-boundary infrastructure schemes can be subject to call-in by the Mayor, reducing the bureaucracy, cost and risk of multiple challenge to process Mayoral Development Corporation Concentrate on expedited delivery of strategically important sites Combine with other powers (SPD Masterplanning, CPO etc.) Compulsory Purchase Enhanced powers (Planning & Housing Bill) (HCA powers)

TRANSPORT Share of the £900m Investment Fund (additional) Devolved Local Transport Budget Ability to Franchise Buses (Buses Bill) and enhance partnerships - introduce smart ticketing, local branding, influence over routes etc. Mayor will take responsibility for a key route network (defined and agreed by the 4 UAs) (Includes the appropriate highway and traffic management powers) (Moving Traffic Offences subject to ongoing discussion) Opportunity to make a business case for rail station management Clean Air Zones Joint-working (formalised in MoU) with Network Rail and Highways England (operation, maintenance and local investment)

GOVERNANCE Combined Authority and a Mayor (WECA) Only model on offer with a ‘fiscal’ and ‘powers’ package Agreed with all 8 other comparable deals at the time Government insistence on individual focus for discussion and accountability Structure and votes Mayor will Chair the Combined Authority which comprises of the constituent UAs Voting on strategies and spending plans requires a 2/3 majority Other decision-making requires a majority of those present (3/4 but including the Mayor) The Councils No change to UA Governance – No change to Parish / Town Councils Councils retain independence and responsibility for delivering services

ROLE OF THE MAYOR Consolidated transport budget. multi-year settlement. (2/3rds majority) Business Rates Precept (In agreement with Business Sector – LEP) Take control of the Key Route Network – management & maintenance Ability to franchise bus services (BSOG funding) Adopt the JSP (only with unanimous support of 4 UAs) Call-in cross-boundary strategic infrastructure Simplified CPO powers and establishment of Mayoral Development Corporation (both subject to agreement of host UA) First point of contact for discussions with Ministers Full democratic accountability

ROLE OF THE MAYORAL COMBINED AUTHORITY Control of the £900m Investment Fund Responsibility for the Adult Education Budget and the ‘Skills’ and ‘Employment’ packages Agree to adoption of the JSP Supplementary Planning Documents to support the JSP (e.g. viability, place-making, retail) Administration of Call-in planning power Exercise CPO powers (with agreement of host UA) Low Emission Zones and Clean Air Zones (with agreement of host UA)

GOVERNANCE Combined Authority Staff and Operation To be developed through to April 2017 Combined Authority could be established with minimal staff Individual UA likely to act as Accountable Body – currently B&NES Continue to work with North Somerset Scrutiny ‘West of England Overview and Scrutiny and Audit Committee(s)’ to be established

NEXT STEPS Consultation Consultation on the Governance Review and Scheme closed on 15 August 2016 with overall positive support for the MCA – Copy of the Survey Summary available on the website – 55% Agree that ‘on balance’ the WoE Mayoral Combined Authority would benefit the region. 34% disagree. Adoption Decision to adopt the ‘Order’ rests with Councils and SoS in October 2016 MCA Work to establish the MCA through to April 2016 Mayoral elections May 2017