1. West of England Devolution
September 2016

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

3. 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

4. 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

5. SCALE OF THE DEAL

6. 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)

7. 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

8. 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

9. 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 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)

10. 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

11. 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)

12. 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)

13. 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

14. 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

15. 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)

16. 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

17. 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