New government ‘wants Lancashire to have an Andy Burnham-style elected mayor’

That was the message one of the county’s MPs said he got after meeting with a minister to discuss the next steps for a settlement, after the provisional agreement with the previous Conservative administration was left in limbo by Labour’s victory at the general election.

Blackpool South Labour MP Chris Webb told the Local Democracy Reporting Service (LDRS) he believed a “significantly better deal” was possible for Lancashire if it agreed to an Andy Burnham-style figurehead - an arrangement that would leave the county “hundreds of millions” of pounds better off than under the one currently proposed.

He was speaking after a talk last week with local government minister Jim McMahon who will meet a group of Lancashire MPs in the coming days to discuss their devolution vision.

The creation of an elected mayor would entitle Lancashire to the highest of three 'levels' of possible devolution deal. However, the prospect of an all-powerful individual to oversee the extra cash and responsibility that would come with such an agreement has divided the county’s 15 local authorities for the eight years that they have been struggling to reach a consensus over devolution - both with each other and the government of the day.

It was for that reason that the three so-called ‘top-tier’ authorities - Lancashire County Council, Blackpool Council and Blackburn with Darwen Council - last year struck a ‘level 2’ deal with the then Tory administration. The agreement did not require a mayor - but consequently came with fewer powers and less money than would have been on the table under level 3.

Mr. Webb says it is now time to put past disagreements aside - along with the county’s provisional deal, whose implementation was halted by the snap election - and “look at what's best for Lancashire”.

“Significant powers [and] significant resources...are going to be on offer for those with metro mayors and so, for me, this is a no-brainer for Lancashire - and I’m urging all leaders to get behind this.

“We only had to look at those images [earlier this month] of the metro mayors, from all political parties, going into number 10 and meeting the Prime Minister - and what was starkly evident was that Lancashire had no voice at that table. We can't keep being left behind.”

Acknowledging the hard work that had gone into securing the level 2 deal, which included a one-off £20m boost for “innovation led growth”, he added: “We've now got an opportunity - with a new government - to get a much better deal.

“It's not going to be a few million [more] - you're going to be talking hundreds of millions difference, from what I’m hearing,” Mr. Webb told the LDRS.

In a recent letter to local leaders across the country, Deputy Prime Minister and Communities Secretary Angela Rayner said the new government would “not force places to take on a metro mayor”, but would also “not shy away from making the case for their huge advantages, with some powers continuing to be reserved for institutions with directly elected leaders, such as mayoral combined authorities”.

Since the election, the leaders of Preston and Chorley councils have said they are keen to see a mayor added to a beefed-up devolution package for Lancashire. However, the top-tier-trio of councils in the area have said they first want to see the deal they negotiated implemented - before discussing any enhancements that may be on offer.

Speaking to the LDRS before Chris Webb’s meeting with Jim McMahon, Lancashire County Council’s Conservative leader Phillippa Williamson said: "We want to work with government to get the best devolution deal possible for Lancashire.

"We have a deal on the table which is ready to be finalised, which was supported by both residents and businesses - and which myself and the leaders of Blackburn with Darwen and Blackpool councils firmly believe is in the best interests of our county.

"Businesses, particularly, view devolution as the key to unlocking years of untapped potential and are very keen we move forward.

"This would just be the start of our devolution journey and we would be looking to continue to build on these foundations with further deals, just as Manchester and Liverpool have done," County Cllr Willaimson added.

DISTRICT DILEMMA

The new government has hinted at a greater role for district councils in delivering devolution in county areas like Lancashire.

Jim McMahon told the Local Government Association’s councillors’ forum earlier this month he was “uncomfortable” with second-tier authorities - such as Preston, Wyre and Chorley - being “locked out of the picture”.

“I don't think we have resolved the issue of district councils and combined authorities,” he said.

The issue has proved a bone of contention over Lancashire’s provisional devolution deal - with eight of the county’s 12 districts writing to the last government within days of the agreement being published last November, demanding a rethink of various aspects of it.

As the LDRS has previously revealed, several Labour district leaders have called for the current deal to be scrapped in the wake of the general election and renegotiated with the new administration.

Under the present Lancashire agreement, representatives of the three top-tier authorities that signed the deal would make up the membership of the combined county authority (CCA) created to oversee the newly-devolved powers.

Two of the county’s districts would be given ‘non-constituent member’ status - but would not have any voting rights.

Reacting to the reservations expressed by Jim McMahon, Preston City Council’s Labour leader Matthew Brown told the LDRS the authority believed the governance arrangements, as currently constituted, were “wrong”.

“It makes little sense that the tier of local government closest to communities is currently excluded from having a vote and seat on combined authorities. It is encouraging the new Labour government are exploring changing this,” Cllr Brown added.

DEAR LANCASHIRE...

Deputy Prime Minister Angela Rayner wrote to all local council leaders earlier this month – including those in Lancashire - setting out the new government’s devolution ambitions:

I am delighted to be writing to you with the weight of a new Labour government behind me, laser focused on pushing power out of Whitehall and lighting the touch paper of growth across our regions.

In my first correspondence to you, I would like to invite you to partner with this government to deliver the most ambitious programme of devolution this country has ever seen. I know you agree that for too long, Westminster has hoarded power and held back towns, cities, and villages across the country from achieving their true potential.

Last week, the Prime Minister and I had the pleasure of meeting England’s metro Mayors, a signal of intent about our desire to bring local leaders into the heart of our government. We discussed how to deliver sustained economic growth through better housing, more tailored skills, and decent, well-paid jobs, through both national and local levers.

This government has been elected on a manifesto to widen and deepen devolution across the country. I have seen first-hand the benefits of devolution, from better integrated transport and publicly controlled buses to new skills programmes and good, affordable housing projects.

But our ambitions go further. We will devolve new powers over transport, skills, housing, planning and employment support. As we have set out to Mayors, we want more regions to benefit from integrated settlements, with access to this important financial flexibility for mayoralties with capacity, strong accountability structures and exemplary track records of financial management.

We will move away from a deal-based approach, setting out clear conditions and a clear offer in return for places seeking devolution agreement, and will enshrine a presumption towards devolution, so places can take on new powers automatically if they meet certain conditions.

Devolution underpins our national mission to deliver economic growth for everyone, everywhere, raising living standards across the UK. This government will work in partnership with local leaders to implement Local Growth Plans, and I am excited to establish a Council of Nations and Regions to bring together the Prime Minister, the leaders of the devolved administrations and metro Mayors. I want to see more places represented at that Council, with more Mayors at the table.

Together, we can drive growth in every corner of the country. That is why we are inviting more places to use these enhanced powers and play a leading role in our national renewal. Now is the time to come forward and work with this new government to deliver growth in your area.

Many of you will have struggled to get devolution settlements over the line, or were in the process of negotiating a settlement before the general election. You may have been held up by lengthy negotiations over powers, geographies, or governance. This government will begin to work with you to resolve those issues.

My Cabinet Colleagues and I also understand that all too many councils are facing financial strain and have been left balancing new obligations with higher costs and interest rates after a decade of financial mismanagement from the centre. Rest assured, we will ensure that you have the resources to deliver new devolved powers and functions.

We know we will only be able to improve public services through economic growth, and it is critical you play a leading role in delivering it. But we also recognise this must be accompanied by reforms to local government and long term funding settlements, providing you with the certainty to plan and provide the best possible value for money for residents.

In due course, the government will publish a new devolution framework, setting out the new powers and flexibilities available to you. While we will not force places to take on a metro Mayor, we will not shy away from making the case for their huge advantages, with some powers continuing to be reserved for institutions with directly elected leaders, such as Mayoral Combined Authorities.

We continue to believe that new devolution settlements should be tailored to sensible economic geographies so that local leaders can act at the scale needed to effectively deploy their powers. In the majority of cases that will require local authorities to come together in new combined or combined county authorities. I encourage you to begin discussions with your neighbouring authorities on this basis.

The Minister for Local Government and my officials stand ready to meet to discuss proposals and to support you, so you are ready to board the train of devolution as we surge along this journey to give every community a voice in the future of Britain. I would welcome proposals by the end of September to participate in a first set of devolution settlements.

Rt Hon Angela Rayner MP