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

2. 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

3. 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

4. The National picture
The ‘done deals’

5. Advanced discussions with Government
The National picture
Advanced discussions with Government

6. The National picture
Early stages

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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

15. 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

16. 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

17. 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

18. 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

19. 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

20. 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

21. 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

22. 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…”

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

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

25. Questions and Answers