To provide the Scrutiny Management Board with an update on the latest position on the devolution options being considered by Government.

To highlight Herefordshire Council’s response to the expression of interest regarding the devolution options being considered by Government.

The Chief Executive Officer Herefordshire Council introduced the report and explained that it set out what was currently known about devolution and that an update on the devolution process was anticipated in the government’s October 2024 budget statement.

The key points were:

o   All local authorities that didn’t have a devolution deal in place had been written to by the Deputy Prime Minister during July 2024 inviting them to work in partnership with the government to agree some form of devolution deal.

o   Herefordshire authority had submitted an expression of interest on 30 September 2024, stating its preference towards the single-county and non-mayoral approaches.

o   Herefordshire authority had explained it would be happy to explore what it might mean to work with its neighbours, subject to a new framework being put in place and a white paper on devolution being circulated.

o   The expression of interest had made clear that any further progress around a devolution deal for Herefordshire Council would be subject to the necessary discussions and approval at Cabinet and Full Council as part of the democratic process.

o   Further detail on devolution including was anticipated in the 30 October 2024 budget statement from the government, with a white paper expected by mid/later November 2024.

o   All-member briefings on the subject would continue and that it might be possible to form some kind cross-party task group approach to devolution, which would draw on the best resources across the council to obtain the best outcome for Herefordshire.

The debate was opened up to the committee, the principal points of the discussion included:

1. The committee was given clarification that there was an existing framework for devolution that had been put in place by the previous government, but that the authority was waiting for the new framework from the current Labour government.

2. The committee requested a reminder of what devolution would look like.

o   The Chief Executive Officer Herefordshire Council explained that devolution involved a single or group of councils reaching a devolution agreement with government, this gave the authorities involved greater powers and funding around: transport, adult education, skills and work to drive the local economy.

o   It was explained that devolution allowed two or more local authorities to come together and collaborate across the councils. The councils continued to exist as individual identities, but would take together key strategic decisions around areas such as adult education, transport, housing and investment in the economy,

o   Devolution was not focused on councils coming together and merging, but rather them coming together to work on key strategic issues that affected them in the sub region.

3. The committee raised concerns about whether devolution would have an adverse impact on and be incompatible with the objectives of the Marches Forward Partnership.

o   The Chief Executive Officer Herefordshire Council stated that discussions around the Marches Forward Partnership had taken place with a senior civil servant. It had been explained that the Marches Partnership wouldn’t fit well with the devolution framework because of the English-Welsh nature of the arrangement.

o   The Chief Executive believed the Marches Partnership remained a piece of work that was worth investing in and pointed out that if two English and two Welsh authorities could work together effectively on the partnership, then that would show that the English and Welsh governments what could be achieved. If necessary, the relevant authorities could use their general powers of competence to strengthen the approach.

o   The Chief Executive stated that while Herefordshire Council waited for details on the new devolution framework it would continue to work with Shropshire, Powys and Monmouthshire because they were immediate neighbours and that was the right thing to do.

4. The committee also asked how much pressure Herefordshire Council might be put under to go into a devolution agreement with larger neighbouring authorities and what level of autonomy would Herefordshire have in choosing who it wanted to partner with.

o   The Chief Executive Officer Herefordshire Council gave an assurance that there was no sense of the authority being forced or coerced into joining into an agreement, but did not want the authority to be left behind and was confident that once the framework was released conversations would flow freely around potential partnerships.

o   The Cabinet Member Finance and Corporate Services pointed out that surrounding English authorities such as Worcestershire and Shropshire were not in as strong and as comfortable a position as Herefordshire. There was a possible risk therefore that Herefordshire could be disadvantaged from accessing certain central government funding coming through a devolution agreement.

5. The committee voiced concerns that central government might not be in touch with the challenges of rural communities and questioned whether creating a new level of government at a time when the public purse was depleted represented good value for money.

o   The Chief Executive Officer Herefordshire Council discussed funding in relation to the recent history of devolution deals, but stressed that until the new devolution framework was released conversations around investment and funding would remain hypothetical.

6. The committee raised concerns that Herefordshire Council risked being left behind and marginalised if it didn’t have a seat at the table on the Council of Nations and Regions.

7. The committee asked if it would be possible to produce and circulate clear communications for the residents of the county so that they were inform and prepare in relation to what devolution might involve.

o   The Chief Executive Officer explained that he council had already made public its expression of interest and would share more information with residents once further details had been released by the government.

8. The committee asked if there was a risk involved in waiting for more clarity from the government before releasing further communications to the residents and stakeholders, as rumours and misinformation might begin to spread in the meantime.

o   The Cabinet Member Finance and Corporate Services explained that they had taken recent updates on devolution and passed them to their parish councils.

o   The Chief Executive Officer assured the committee that if devolution went ahead the council structure would remain unchanged. Ultimately the decision in terms of what to do in relation to devolution would be taken by democratically elected members at full council.

9. The committee enquired if there was a timescale for the list of things which the council needed to do next, such as briefings with local MPs about the potential impact of devolution on the council.

o   The Chief Executive Officer stated that they would be meeting local MPs in mid November (2024) to discuss devolution and other significant issues across the council.

10. The committee enquired if the council was focusing on what it could get and what might be the key benefits of a devolution deal. It was asked if the Council Plan might be bolstered by a future deal around devolution.

o   The Chief Executive Officer suggested there were two key conversations taking place around devolution One concerned devolution opportunities, which involved devolving powers for: investment infrastructure, adult education and the economy. The second was to ensure that local government was fully funded. The strategy going forward, would be ensuring that cores services were fully funded, whilst also looking at opportunities that might be available through devolving functions.

11. The committee noted that the impact of any devolution deal would not be solely confined to the council and that the potential impact on partners in health, the police and fire authorities would need to be considered. The council needed to be mindful that maintaining joined-up and clear communications with partners would be an important part of the process.

o   The Chief Executive Officer gave an assurance that regular and meaningful conversations around devolution between the council and its partners were taking place on a regular basis.

14. The committee noted that funding services in a rural county was challenging and that clarity and assurance was provided that the council would continue to receive adequate amounts of money and fund its existing services.

Resolved:

The committee noted report.