I understand the noble Baroness’s point. I do think that I covered that in my remarks, but I will reread what I said and, to the extent that I was unclear, I will be happy to write to the noble Baroness. The broad point is that it will be up to the CCA what voting rights it allows to whom, including district councils.
Amendment 76, tabled by the noble Baroness, Lady Hayman of Ullock, seeks to allow a combined county authority to be able to request that the Secretary of State makes regulations in relation to its membership. In agreeing a devolution deal with councils in an area, we will be discussing what governance arrangements would be appropriate, including the institution to operate the devolved powers, and membership and decision-taking arrangements.
The combined county authority would be able to make such a request to the Secretary of State. Such a request would be formalised through submitting a proposal to the Secretary of State, as set out in Clause 43 for establishing a new CCA and Clause 45 for making changes to the arrangements for an existing CCA. The Secretary of State has to consider such a proposal and, if they deem the statutory tests to be met, can decide to make the regulations. Such regulations can be made only with the consent of the local area—including the combined county authority if one is already established—and with parliamentary approval.
I turn to Amendment 86, tabled by the noble Baroness, Lady Taylor of Stevenage. The Government recognise the importance of transparency with regard to allocations of funding and regular reporting on the impact of wider and deeper devolution. Section 1 of the Cities and Local Government Devolution Act 2016 requires the Government to produce an annual report on progress with devolution to combined authorities and local authorities, which covers the areas suggested by the
noble Baroness’s amendment; namely, funding and regular progress reporting on devolution of additional public functions.
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I can confirm that government Amendment 152, which we have not yet debated, brings combined county authorities into the scope of this annual report. This measure will ensure that combined county authorities operate in a transparent manner and are held to account for successful delivery in the same way that other institutions in England with devolved powers already are. The Government therefore feel that we have already provided for effective proportionate reporting mechanisms for combined county authorities that will cover what the noble Baroness is seeking to achieve.
Perhaps I could add, for the noble Baroness’s benefit and that of the noble Baroness, Lady Randerson, that alongside budgets for specific functions, such as the adult education budget and CRSTS, the Government have sought to provide long-term certainty to areas with devolution deals—including through the provision of a 30-year investment fund, and settlements around that, worth over £11 billion for deals agreed to date. The funding for individual devolution deals is negotiated on a case-by-case basis, as noble Lords would expect. Long-term investment funds will be considered only for those level 3 proposals that represent the strongest governance and opportunities for greater efficiency and economic growth.
Amendment 100, tabled by the noble Baroness, Lady Taylor, would require the Secretary of State to explain how a local government area will have access to combined county authority functions if it leaves the area of the CCA. We consider that provisions in Clause 23 already provide for the amendment’s aims. Clause 23 sets out the statutory requirements for changing the area of a combined county authority, including the removal of a local government area. Any changes to the delivery of functions because of a combined county authority’s boundary changing must of course be considered. Such changes to the delivery of functions will be set out in the regulations the Secretary of State will make to change a combined county authority’s boundary, which require the consent of the local area and parliamentary approval.
As I mentioned earlier, Parliament will be provided with a statement in the Explanatory Memorandum to the regulations explaining any changes to the combined county authority’s area or conferral of powers, the views of the consultees, and how these changes meet the statutory test of improving economic, social and environmental well-being. If a local government area wishes to leave a combined county authority, it is possible those functions will be discontinued in that area. The clause already includes provisions that, when changing an area of a CCA, the regulations can transfer functions to another public authority if that is decided to be appropriate. For some areas, a public authority will continue to undertake some of the functions in the area. For some, it may be decided that the function is no longer to be exercised in the area—a point I made earlier, in a previous debate. As such, Parliament will already have this information via the above means, and the amendments are, I consider, unnecessary.
Amendment 129, tabled by the noble Baroness, Lady Taylor, would require
“the Secretary of State to produce guidance on the establishment and operation of CCAs within 6 months of … Royal Assent.”
Clause 53 enables the Secretary of State to issue written guidance about anything that could be done under or by virtue of Chapter 1 of the Bill by a combined county authority, combined authority, county council, district council or integrated transport authority. The relevant authority must have regard to any guidance given in exercising any function under this chapter. I should explain: the reference to guidance in Clause 53 relates to requirements for an authority to have regard to this guidance in exercising a function conferred or imposed by or by virtue of Chapter 1; it does not relate to making areas familiar with the processes required to establish a combined county authority.
Any area wishing to establish a CCA will be made familiar with the required processes during their devolution deal negotiations. As we have seen with the deals announced over the past years, officials will work closely with an area’s officers to ensure the successful negotiation and subsequent implementation of deals. While the Secretary of State has no immediate plans to issue any guidance, this clause provides the maximum flexibility to do so, should it ever be suitable.
Turning to Amendment 130, tabled by the noble Baroness, Lady Taylor of Stevenage, I agree that ensuring residents understand what functions their local combined county authority has is undoubtably important. We think there are already a number of mechanisms for achieving this. First, devolution deal documents are public. Among other things, they clearly set out what functions government will confer on the relevant institution, which for many areas will be a combined county authority. Secondly, before a combined county authority is established there needs to be a public consultation, as we have been debating, in that area. It should provide residents and others with the clarity that this amendment seeks.
Furthermore, Section 1 of the Cities and Local Government Devolution Act already places a requirement on the Secretary of State to publish an annual report on devolution in England, including on where agreements have been reached and functions devolved. This section would be amended by government Amendment 152, which we have yet to debate, as I mentioned earlier, to also cover combined county authorities. Finally, the Government will publish a new devolution accountability framework to ensure that all devolution deals lead to local leaders and institutions that are transparent and accountable. This will include consideration of how devolution deals are communicated to residents.
I hope that these explanations are helpful and that the noble Baroness will feel able to withdraw her Amendment 66.