Member Briefing 16 February 2016 Three Southern Counties (3SC) Devolution bid Leader of the Council – Councillor Mrs Gillian Brown Chief Executive – Nigel Lynn

Why devolution? The economic challenge Opportunity for growth and promoting local economies Managing public spending by service transformation Strategic planning and investment across larger areas The national position Deals done across the Country Each deal is different The constitutional position New powers New decision making All other functions stay with the current authorities

Why a devolution deal with 3SC? A nationally important economic engine More economic value than Wales or Manchester (population 2.5m) Significant contribution to national exchequer Potential to meet the growth demands from London Action needed to sustain and grow economy Infrastructure beginning to creak - £5.9bn deficit Growing demands on public services – particularly over 65’s Business facing recruitment challenges requiring action on housing and skills Parts of the area with unfulfilled economic potential

The National picture The ‘done deals’

Advanced discussions with Government The National picture Advanced discussions with Government

The National picture Early stages

The 3SC proposition The south east economic offer – growing GVA Managing and responding to London growth Demographic pressures from within and without SO - Housing – Infrastructure – Skills interdependent Full involvement of the LEP’s National Agencies (rail and road) to engage Fiscal neutrality but a transfer of controls over funds made available

A proposition with scale… ….providing: An ability to act on skills and infrastructure Scope for public service transformation An ability to test and quickly scale up The opportunity for double devolution The geography makes sense, including relationship with London and Brighton

What is the prize? Sustained economic growth, contributing to economy and exchequer Releasing unfilled economic potential Tangible benefits for local residents Making the 3SC area an even better place to do business Improvement to digital infrastructure

The “asks” of government An ability to retain the benefits of growth Pooled and devolved resources to enable local prioritisation, with a long term (30 year) commitment Greater level of influence over national skills and employment activities and budgets New relationship with key national agencies Freedoms and flexibilities to enable action on infrastructure, housing and skills and transport

The approach to date Works streams of officers and advisors from August 2015 All 26 authorities – both tiers engaged Directed by joint meetings of Leaders Supported by joint meetings of Chief Officers Fiscal Devolution and Investment Housing & Planning Infrastructure Transport Skills Governance

Fiscal devolution and Investment What are we trying to achieve? Facilitate delivery of devolved functions Focus on income generated in the area Retention of 100% business rates (including growth so far) Local discretion over other income sources – stamp duty/Council Tax Fiscal neutrality

Housing and Planning Ambitions for 3SC area 34,000 new homes to 2020 – up 26% (in Local Plans) Accelerate delivery – increased pace and certainty Public owned brownfield land developed

Infrastructure Ambitions for 3SC area Proactive planning to promote growth and unlock development sites Support growth whilst respecting constraints Develop a long term plan for impact of London’s growth Secure full engagement of national support and investment Exploit the full potential for connectivity, particularly digital

Transport What are we trying to achieve? Supporting growth within the 3SC and the wider SE Better transport infrastructure and transport service links Enhanced capacity on key links (A27, SWML, BML etc) Integration of local and strategic networks Addressing poor connectivity Supporting residents to access work

Skills What are 3SC trying to achieve? Increase GVA per head Meet business demand for skills in high growth sectors Secure more opportunities for 3SC residents An integrated skills and employment package with a single pot Local or joint commissioning of services Influence and build on Area reviews to support provider base

Skills (2) How could devolution help? In schools: incentivise employer involvement: apprenticeships, fragmentation of careers advice, more vocational pathways – employability In colleges (16-19): incentivise employer involvement to make system more responsive, reduce risk to providers through fiscal mechanisms Address low demand: Access and connectivity, business support on workforce Existing workforce: up skilling - more suitable local provision and more influence over DWP programmes Employment training for SEN/vulnerable adults to enhance employability

Governance options Combined Authority (new legal body: permanent) Joint Committee (formal but not permanent) Formal Boards for specific functions Structural options for a Combined Authority: Directly elected Mayor – issues for two tier Executive Board with appointed leader Scrutiny panels Core representative body of all partners

Also: Public Service Transformation Joint working between partners Not reliant on new powers or pooled funds Health and Social Care integration Trouble Individuals (from ‘Think Family’) Back office and shared service initiatives Blue light collaboration Redesign services to remove duplication

and…..Double Devolution Local differences – freedoms and flexibilities Opportunity to try different models and ideas in different parts of the 3SC area As Government devolves powers to 3SC, it will enable counties to devolve to Districts and Boroughs Partners to agree pace of activity area by area

Update 14 January 2016 – Challenge session held with Baroness Williams (the “Pitch”). Made by: Name Authority Cllr Louise Goldsmith Leader, West Sussex County Council Cllr Keith Glazier Leader, East Sussex County Council   Cllr David Hodge Leader, Surrey County Council Cllr Garry Wall Leader, Mid Sussex District Council Cllr John O’Reilly Leader, Elmbridge Borough Council Cllr Robert Standley Tim Waites Leader, Wealden District Council Chair, Coast to Capital LEP Board. Philip Carr Relationship Manager, BIS London and East

Update (2) 19 January 2016 – positive response from Baroness Williams of Trafford “…..look forward to seeing how this work develops going forward….” and “….continue to liaise with officials (DCLG) to work up your prioritised asks” “…that you consider the appropriate accountability structures needed…”

Update (3) Recent meetings Chief Executive’s 3SC meeting – 10 February 2016 Leaders meeting – 10 February 2016

Next steps Leaders seminar to clarify the bid Combined Leader support The governance review to be agreed Internal decisions of each authority Public engagement

Questions and Answers