A new devolution baseline: a planning tool for councils
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Our Devolution baseline: a planning tool for councils has been designed to capture experiences from the devolution negotiation processes into a format in a way that helps councils to consider key questions and support planning for future devolution negotiations. This tool picks out and summarises key trends for each of the six public service areas – transport, employment, skills, enterprise and growth, energy and environment, and use of assets - organised to show:
experiences and lessons from the negotiation processes, summarising the kind of devolution places have achieved, where devolution has been difficult, and what has underpinned successes new negotiating baseline, identifying key wins at which places can aim to achieve or emulate questions to consider, introducing questions that councils could ask themselves and each other when embarking on devolution negotiations council ambitions and the evidence case, summarising local government ambition for change and some supporting LGA evidence
We expect the content to change over the course of further devolution negotiations and based on feedback from councils on their mixed experiences. The tool will be updated regularly. Please do let us know what is happening in your area, you can reach us through www.local.gov.uk or by contacting your local LGA Principal Adviser.
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Public service
Experiences and lessons from negotiating processes to date
New negotiating baseline
Questions to consider
Local government ambitions and evidence
Employment
> some places have gained some influence over employment services
> councils to jointly commission the next phase of the Work Programme, Greater Manchester Devolution Deal
> does your area have a unique employment challenge not being addressed, what are the major employment challenges for your different residents in your area?
> councils have called for the devolution of welfare to work services, including Jobcentre Plus and commissioning of the Work Programme and Work Choice
> devolution has largely taken the form of funding for pilots, or a commitment from government to work collaboratively locally > much of the funding for initiatives has come from underspend from national programmes, particularly the Youth Contract wage subsidies > in many cases negotiations are successful when: > focusing on supporting the most vulnerable residents towards work, and on bringing together services around them > councils and services have come together in labour market/ travel to work geographies > where local partners have committed to co-funding or sharing risks
> council and Jobcentre Plus jointly establish and run Youth Jobscentre, trialling new Youth Allowance and Youth Guarantee, Greater Ipswich Wave 2 City Deal
> what does the welfare-to-work system need to do differently in your area and do you have evidence of underperformance? > is there evidence of the added value your involvement would bring, to residents, employers and government?
> LGA evidence for the case for change includes: > hidden talents > realising talent > local authority schemes supporting employment
> how effective are your relationships with the local job centre, work programme and other welfare-to-work providers? > what role do you want in the future of employment support to residents, to what extent are you willing to share risks as well as rewards with government? > does your area have the capacity to take a leading role in employment services and the risk that involves?
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Energy and environment
> no areas have gained any genuine powers or influence over energy and environment policy and spending > deals that do include an element of energy or environment are usually limited to the award of funding for specific projects > or a commitment from a national partner to consult or positively work with local partners
> Environment Agency to share 6-year flood defence investment programme with local partners, Greater Brighton, Wave 2 City Deal > Environment Agency, Natural England and Forestry Commission will offer a single point of contact, Cumbria, Growth Deal
> what are the key energy and environment issues for your area? > to what extent do you seek reform of government’s approach and how could this be achieved? > how are your working relationships with the Environment Agency, Natural England, Forestry Commission and the government departments?
> councils want to drive, inspire and support action on carbon reduction, climate resilience and environmental management > LGA evidence for the case for change includes: > climate local > flood risk portal
> what role can the deals play in improving and developing relationships towards meeting your local ambitions? > to what extent could you build on what has been negotiated so far?
Enterprise and growth
> a few areas have achieved significant devolution to support business development and growth > a large number of deals include an award of funding for specific business support or innovation projects, rather than the devolution of funding, flexibilities or powers
> full control of EU structural funds from 2014 – 2020, Cornwall and Isle of Scilly, Growth Deal > all enterprise funding devolved to city region, Sheffield City Region, Devolution Deal > devolved business support
> to what extent does current investment in enterprise and growth respond to the needs of businesses and the local economy?
> councils have called for devolution of enterprise and business support funding through one single, longterm allocation
> how could you improve the returns on public investment in enterprise and growth?
> LGA evidence for the case for change includes: > fragmented funding
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> some deals involve small flexibilities, such as the capability to re-allocate underspends into small innovation projects
budgets, including Growth Accelerator, Manufacturing Advisory Service, and UKTI, Greater Manchester, Devolution Deal
> all growth deals also include a commitment from UKTI and the Technology Strategy Board to work with local partners to support innovation and attract investment
Finance
> how far do you prioritise reform to enterprise and growth support in your area?
> unleashing metro growth, city growth commission > how the other half grows, the future of prosperity and public services in nonmetropolitan England
> how could government work with you to improve the value from spending on enterprise and growth in your area?
> a number of places have gained various levels of experimental financial flexibilities and incentives, such as earn back, tax increment funding and business rate retention
> Control of reformed earn back deal, within current ÂŁ30 million a year for 30 years framework, Greater Manchester, Devolution Deal
> some places have had commitment from government to contribute single allocations to single pots
>Greater Birmingham and Solihull (GBS) Finance to manage, invest, recycle and leverage public and private sector funding; government pledged single financial contribution, Greater Birmingham and Solihull, Wave 1 City Deal
> a number of councils have been permitted to borrow a proportion of funds from the Public Loans Word Board at a reduced rates
> are there elements of other deals which you would like to see replicated in your area?
>Tax Increment Funding models to fund regeneration, Nottingham, Wave 1 City Deal
> what are your ambitions for securing the financial health of your authority? > what have other places achieved that you would like to replicate or build on for your authority? > are there new financial flexibilities or models that you could look to test or develop through the deals process? > what evidence do you have to demonstrate how greater financial autonomy can secure future public services?
> councils have called for place based financing as the default method of funding and delivering local public services, and multiyear settlements to offer stability for planning > LGA evidence for the case for change includes: > autumn statement submission > future funding outlook > community budgets > under pressure, how councils are planning for future cuts
> Local authorities to retain
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100% of business rates growth in Enterprise Areas, Bristol City Region, Wave 1 City Deal Health
> only one area has gained any health devolution through the deal processes as separate to wider reforms of health and social care
> local business plan for integration of health and social care based on existing health and social care budgets, Greater Manchester, Devolution Deal
> how could the devolution deal processes help contribute to the reforms of public health and social care in your area?
> councils need the power, funding and flexibilities to help their residents achieve the best possible outcomes across health and social care > health, wellbeing and social care > LGA adult social care
Housing
> no area has gained significant additional powers or flexibilities to meet local housing demand > one area has gained funding to support the development of new housing, through a devolved Housing Investment Fund > a small number of councils have had their Housing Revenue Allowance borrowing limit lifted to support the development of new homes
> devolved ÂŁ300million for Housing Investment Fund, Greater Manchester, Devolution Deal
> what are your strategic housing ambitions? > what have other places achieved that you would like to replicate or build on in your area? > are there new housing policy or funding concepts that you could look to test or develop through the deals process?
> Councils have called for the powers, resources and flexibilities to build more local ,affordable homes. > LGA housing > LGA planning > planning and growth
> what evidence do you have that demonstrates how greater devolution of flexibilities or funding over housing policy would deliver better outcomes?
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Skills
> a range of areas have gained some influence over 19+ skills, such as strategic influence or piloting new approaches > until recently, no place has been able to negotiate leverage over Further Education (16 to 19 skills), from the Department for Education > many areas have been able to gain ring-fenced Apprenticeship Grants to Employers
> power to restructure Further Education provision, Greater Manchester Devolution Deal > Adult Skills Budget devolved, Sheffield City Region Devolution Deal > devolve commissioning of Youth Contract, Leeds City Region, Newcastle City Region, Liverpool City Region Wave 1 City Deals
> some areas have been able to commission the Youth Contract > successful negotiations focus on how local areas can engage employers and work across public agencies
Transport
> some local areas have won significant devolution of transport funding, flexibilities or commitments > many deals focus on strategically joining up of transport planning and funding across places > a number of places have received a 10 year transport
> what do you want the further education, skills and apprenticeship system to do differently in your area? > to what extent are partners contributing to local ambition for skills, such as colleges, training providers, careers advice, schools, and employers? > how well placed are you to take on new responsibilities over skills, FE and apprenticeships, and do you have evidence to help demonstrate the impact you could make?
> councils want full devolution of Further Education, Adult Skills and Apprenticeships budgets to local partnerships > LGA evidence for the case for change includes: > hidden talents > realising talent > skills mismatches
> what would be a realistic negotiating win over the short, medium and long-term?
> responsibility for franchised bus services and smart ticketing across all transport modes, Greater Manchester Devolution Deal > devolved funding towards single Transport Fund, Leeds City Region Wave 1 City Deal > commitment to local Bus and
> what are the strategic priorities for transport in your area, what do you want to achieve? > to what extent are partners bought into delivering local strategic priorities? > are there any key policies, funding or projects restricting the delivery of your local strategic
> councils are calling for strategic join-up of transport modes in places and certainty and flexibility of funding to deliver longterm solutions > LGA evidence for the case for change includes: > better roads for England
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funding allocation > many areas have received funding for specific delivery projects, and some for innovation projects > all growth deal areas have a commitment from the Highways Agency and Network Rail to positively work with local partners
Integrated Transport Strategy, Cornwall and Isle of Scilly Growth Deal > roll out of ‘oyster-style’ smart ticketing across local bus services, Sheffield City Region Devolution Deal
priorities?
> seamless public transport > making the connections
> is the total investment in transport delivering good value for money in your area? > is there anything missing from the devolution deals so far which your area is well placed to make progress on? > have the Highways Agency and Network Rail met their commitment to positively work with local partners?
Use of assets
> several places have negotiated a commitments to pursue initiatives exploring joint use of assets > some areas agreed joint strategic asset management strategies with Government Property Unit and Homes and Communities Agency > some areas will benefit from a transfer of surplus government assets > successful areas have focused on mutually beneficial relationships through better joint decisions over public sector assets
> decisions on use of public service assets to be taken with the local authorities, Sheffield City Region, Devolution Deal
> to what extent do you want to develop a strategic partnerships approach to the way assets are managed across your area?
> HCA and GPU to jointly oversee use of assets with the council on a joint Public Property Board, Bristol City Region, Wave 1 City Deal
> how well placed are you to develop joint asset management arrangements with partners, how productive is your relationship with partners?
> councils want to use public assets across their areas more effectively to create local economic growth and deliver more integrated public services > one public estate > amenity assets
> what can government do to support your ambition for the future use of assets in your area?
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