ITEM CMDL3
LEADER OF THE COUNCIL – 23 MARCH 2009
REGIONAL GOVERNANCE ARRANGEMENTS: CHANGES TO THE REGIONAL AND SUB-REGIONAL LANDSCAPE
Report by Head of Strategy
Introduction
1. In July 2007 the Government published the Review of Sub-National Economic Development and Regeneration. This was a consultation document setting out options for future regional arrangements, and plans for an enhanced role for local authorities in promoting economic development and regeneration.
2. In November 2008 the Government responded to the consultation with the publication of Prosperous Places: Taking forward the Review of Sub National Economic Development and Regeneration. This announced that there will be significant changes to the way that functions are delivered at a regional level.
3. Legislation, in the form of the Local Democracy, Economic Development and Construction Bill is now going through Parliament to put these changes on a statutory footing where required.
The Changes
4. While some of the detail of the proposals continues to be worked through we are now clear about many elements of the new regional arrangements.
5. The key issues to note are:
· the production of a new single integrated regional strategy and reformed regional governance structures; · the creation of an economic assessment duty on upper tier and unitary local authorities; and · a new mechanism for local authorities to set-up formal collaborative arrangements on economic development.
6. More detail on each of these issues is set out below.
Development of a Single Regional Strategy
7. In future and subject to enabling legislation, a single integrated strategy will be developed for each region. This will set out how and where sustainable development and economic growth will be delivered in the region, identifying:
· An overview of the key regional and sub-regional opportunities and challenges; · Targets on economic growth, housing and CO2 emissions; · How sustainable growth can be best delivered; · How the region will meet its housing targets and create sustainable communities; · How policies will contribute to tackling climate change; · Priorities for regeneration.
8. Although ultimately approved and issued by the Secretary of State, this strategy will first be signed off by both the Regional Development Agency and a new body consisting of Local Authority leaders from across the Region. (See Annex for detail of governance arrangements) (download as .doc file)
9. The Government were originally proposing that the Regional Development Agency alone should be responsible for signing off the strategy and have given significant ground to Local Authorities in subsequently determining that this should be a joint responsibility.
10. The development of a single strategy is a significant change compared to the current system where the Regional Development Agency is responsible for developing a regional economic strategy, with a consultative role for Local Authorities; and the Regional Assembly (consisting of Local Authorities and Stakeholders) develops the regional spatial strategy.
11. Under the new arrangements Regional Assemblies are being abolished and the new arrangements must be in place by 2010. As a result of the success South East England Leaders have demonstrated in responding to the new agenda, it is anticipated that a resolution for the winding up of the South East England Regional Assembly will be presented to its next Plenary meeting on 4 March 2009. The SEERA Constitution requires a 75% majority of elected members and of unelected stakeholders voting separately for it to be passed..
Economic Assessment Duty
12. Upper tier authorities are being given a new duty to conduct an economic assessment for their area, underpinned by statutory guidance. The county council will be expected to work closely with district councils in completing the assessment and there will be a corresponding duty on district councils to co-operate with the upper tier. We will also be expected to engage with a broad cross-section of partners. Guidance has not yet been issued on the content of the assessment and officers are at an early stage of considering the options. The assessment will be used to provide an analytical basis for development of the Sustainable Community Strategy, Local Development Framework, Local and Multi-Area Agreement targets and the integrated Regional Strategy. Costs of implementation are estimated to be in the region of £80,000 per upper tier authority.
13. Timing of implementation will depend on the outcome of legislation but it is understood that the duty is expected to become statutory in 2010/11.
Options for Formal Collaborative Arrangements on Economic Development
14. The Government is seeking to strengthen existing sub-regional working and the creation of new partnerships to drive economic growth. In particular they are legislating for the creation of Economic Prosperity Boards that will enable further integration at the sub-regional level on transport, skills provision and community regeneration. These Boards will be created on a voluntary, 'opt-In' basis.
15. Evidence from the Local Government Association and others suggest that the boundaries of the county fit well with the boundaries of the functional economy in Oxfordshire. The County Council is therefore of the view that there is no need for Oxfordshire to enter into any formal arrangements with local authorities outside the Oxfordshire boundary. Of course, this will not pre-empt practical day to day work with our neighbours in any geographic direction around the county, which will continue to happen as currently.
16. Officers are at an early stage of considering whether we might recommend support for the creation of an Economic Prosperity Board for Oxfordshire. We are particularly mindful that any proposal must not duplicate or cut across the work of the Oxfordshire Economic Partnership.
Existing sub-regional governance involving Oxfordshire
ACTVaR
17. Oxfordshire is currently a member of Association of Councils of the Thames Valley Region (ACTVaR). ACTVaR was formed in 1997 as the local sub-regional grouping of the Local Government Association. Its membership covers all 18 local authorities in the three county areas regarded as the Thames Valley administrative area (Berkshire, Oxfordshire and Buckinghamshire) and comprises 2 County Councils, 7 Unitary Authorities and 9 District Councils. The Thames Valley Police Authority (TVPA), the Royal Berkshire Fire Authority and the Buckinghamshire & Milton Keynes Fire Authority are also members.
18. ACTVaR is primarily a lobbying organisation. It 'seeks to promote the united voice of local government in the Thames Valley. It provides the means for identification and debate of issues of common interest and concern affecting communities across the Thames Valley. It works to promote joint working and collective action. It also provides a means for consultation on matters of interest to local authorities in the sub-region' (www.actvar.gov.uk).
19. The cost of membership to the county council is £11,709 per annum.
20. It is recommended that Oxfordshire County Council should give notice of its intention to withdraw from membership of the Association of Councils of the Thames Valley Region (ACTVaR), for the following reasons:
· ACTVaR spends a considerable amount of time on spatial planning and economic strategy issues. Given that evidence suggests that the Thames Valley is not a coherent economic area and the new focus on driving sustainable economic growth within functional economic areas the county council believes that in future that debate needs to go on within Oxfordshire itself rather than ACTVaR.
· Furthermore as part of the recent review of Oxfordshire partnership governance arrangements we have sought to streamline partnership working and cut out duplication of effort and partnerships that aren't outcome focussed: withdrawing from ACTVaR is consistent with that approach.
21. Twelve months notice of our withdrawal is required, and it is proposed that our membership should cease on 31 March 2010.
22. If this recommendation is agreed, the county council would instead focus resources and efforts on working with partners within Oxfordshire to drive sustainable growth within the county boundaries, working with others outside the county as required on an ad-hoc basis.
23. It is understood that Buckinghamshire County Council is also giving notice to withdraw membership from ACTVaR.
Milton Keynes, Oxfordshire and Buckinghamshire (MKOB) Improvement Partnership
24. Oxfordshire County Council is the host authority for MKOB Improvement Partnership. This partnership was established in 2006 as one of the Improvement and Efficiency South East partnerships dedicated to helping local authorities and their partners achieve efficiency and improvement objectives.
25. Oxfordshire is one of 12 authorities in the region with membership of the partnership (two counties, nine districts and one unitary). The MKOB partnership aims to deliver the following outcomes:
· Real improvements in service performance through working together across boundaries and tiers and learning from each other within local government and the broader public sector · Improved value for money through a collaborative approach to efficiency savings, economies of scale and better policy making · Increased resilience and capacity to deliver and manage change across the MKOB area · Organisations that are fit for purpose to meet the needs of our customers and communities
26. Oxfordshire County Council continues to recognise the value of working in partnership to deliver these outcomes and no changes are proposed to membership.
Financial and Staff Implications
27. The financial implications of the abolition of the South East England Regional Assembly and the creation of the new governance arrangements outlined on page 7 are currently unclear but it is understood that the financial burden is expected to be reduced.
28. As outlined above, there will resource implications arising from the statutory requirement to produce an economic assessment for Oxfordshire (understood to be in the region of £80,000).
29. The proposed withdrawal from ACTVaR would save the County Council the annual membership fee (£11,709).
RECOMMENDATION
30. The Leader of the Council is RECOMMENDED to:
(a) note the recent and ongoing changes to the regional landscape that have been brought about by the Government’s Review of Sub-National Economic Development and Regeneration; and
(b) approve the proposal for Oxfordshire County Council to give notice to withdraw from membership of the Association of Councils of the Thames Valley Region (ACTVaR) from 31 March 2010 (12 month’s notice is required).
TRACY LUCK Head of Strategy
Background Papers: Nil
Contact Officer: Maggie Scott, Corporate Policy Manager Tel: 01865 816384
March 2009
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