Agenda item

Recommendations: To approve:

(a)   The Devolution Deal subject to the consultation identified in the report;

(b)   The Governance Review as identified in Appendix 1;

(c)   Publication of the Scheme at Appendix 2 for consultation and to delegate to the Assistant Chief Executive (Legal and Democratic Services) any changes and actions needed to ensure that a full consultation exercise is conducted for the area;

(d)   Delegation to the S151 Officer, in consultation with the Executive Members for Finance and Open for Business, to approve with the City of York to work up the details of, and implement, the financial arrangements including a risk share mechanism and funding source;

(e)   To cashflow initial implementation costs of £600k (ahead of the funding being available to be drawn down) and agree to receive a further report once the full implementation costs are known;

(f)   The creation of Joint Devolution Committee with the City of York Council and delegating to the Assistant Chief Executive (Legal and Democratic Services) in consultation with the Leader the final terms of reference as agreed with the City of York Council

Considered: A report of the Assistant Chief Executive, Legal and Democratic Services, with details of the steps needed to be taken following the announcement of “minded to” Devolution Deal for York and North Yorkshire on 1 August 2022 and seek permission to approve the governance review, commence the consultation on the Scheme, create a joint committee, agree to cashflow up to £600k of implementation costs and delegate to the S151 Officers to develop the financial arrangements to deliver the Deal.

County Councillor Carl Les introduced the report, looking at the background to reaching the Devolution Deal for York and North Yorkshire that the Government was minded to enter into. He congratulated North Yorkshire County Council, City of York Council and York & North Yorkshire Local Enterprise Partnership officers on the work they had undertaken to achieve what he regarded as a good deal.

The Chief Executive (RF) summarised the key elements of the proposed Devolution Deal, marking a new relationship with central government for North Yorkshire and York which compares well with other Devolution Deals across the country. The report includes a published Scheme setting out the proposals for the creation and governance arrangements for a York and North Yorkshire Combined Authority, along with a Governance Review, which concluded that the statutory criteria are met in creating a Mayoral Combined Authority for York and North Yorkshire, as it will improve the exercise of statutory functions in the area. To move forward, a two month consultation period is recommended in the report, before further consideration and final submission to the Government. It is also recommended in the report to establish a Joint Devolution Committee between North Yorkshire County Council and City of York Council in the interim period, to have joint political oversight of the arrangements in working together. The report also recommends agreement of initial implementation costs of £600k, to cover the consultation exercise and the setup of the Joint Devolution Committee. It was highlighted that there is risk around the initial implementation costs before a Deal is secured, but if that occurs then these costs can be reclaimed from the capacity funding that comes with the Devolution Deal itself.

The Chief Operating Officer of the York & North Yorkshire Local Enterprise Partnership (JF) spoke about the key elements of the Deal, including:

·       A 30 year Mayoral Investment Fund that would be set up, with funding of £18 million per year, totalling £540 million

·       A further £22.65m to be spent in this Comprehensive Spending Review period by March 2025, comprising of £13 million for the building of new homes on brownfield land, £7 million to deliver net zero projects and up to £2.65 million investment to develop affordable, low carbon homes.

·       For York, the Deal provides investment of up to £50 million to support and deliver the York Central brownfield regeneration scheme, which would generate additional GVA and associated benefits for the whole York and North Yorkshire region

·       The Mayoral Combined Authority (MCA) would become the Statutory Strategic Transport Authority, with the Unitary Authority retaining the responsibility as the statutory Highways Authority

·       A commitment to innovation in the bioeconomy and in cyber security

·       DEFRA funding for Natural Capital Investment Plan

·       A commitment to bringing together Government arms length bodies to produce an investment plan for arts and culture in the region

·       LEP integration into the Mayoral Combined Authority, whilst continuing to provide a voice for businesses.

The Assistant Chief Executive, Legal and Democratic Services (BK), then set out the process undertaken, with the minded to Deal conditional on the creation of a Mayoral Combined Authority for York and North Yorkshire. The Governance Review has been undertaken and it is recommended that an eight week consultation begins in mid-October. The consultation is an important way for the public to understand what is on offer and seek their views on the proposal and the Mayoral Combined Authority.

County Councillor Carl Les highlighted the fundamental principle of decision making moving from Whitehall to County Hall, with the key task to explain the Deal to the public as part of the consultation process.

County Councillor David Chance commented that it would be important to be very clear as part of the public consultation what is being proposed as part of the Devolution Deal.

County Councillor Gareth Dadd was very supportive of the proposed Deal, feeling that it would be a strengthening of democracy rather than the other way around, with a Mayoral election giving the residents of York and North Yorkshire the ability to make a choice of how the extra money proposed in the Devolution Deal is spent.

County Councillor Greg White reiterated that although the money proposed to York and North Yorkshire as part of the Deal was to be welcomed, the real prize is an elected Mayor to give a strong voice for the area.

Resolved –

To approve:

(a)   The Devolution Deal subject to the consultation identified in the report;

(b)   The Governance Review as identified in Appendix 1; and

(c)   Publication of the Scheme at Appendix 2 for consultation and to delegate to the Assistant Chief Executive (Legal and Democratic Services) any changes and actions needed to ensure that a full consultation exercise is conducted for the area.

(d)   Delegation to the S151 Officer, in consultation with the Executive Members for Finance and Open for Business, to approve with the City of York to work up the details of, and implement, the financial arrangements including a risk share mechanism and funding source

(e)   To cashflow initial implementation costs of £600k (ahead of the funding being available to be drawn down) and agree to receive a further report once the full implementation costs are known.

(f)    The creation of Joint Devolution Committee with the City of York Council and delegating to the Assistant Chief Executive (Legal and Democratic Services) in consultation with the Leader the final terms of reference as agreed with the City of York Council.