Agenda item

(i)         Joint Report of the Assistant Chief Executive and Corporate Director of          Regeneration and Economic Development

(ii)        Presentation – Maria Antoniou, Spatial Policy Team Leader, Regeneration and Economic Development

The Chairman introduced the Spatial Policy Team Leader, Maria Antoniou who was in attendance to speak to Members in relation to improving economic governance in the North East LEP area and the findings of the North East Independent Economic Review (for copy see file of minutes).

The Spatial Policy Team Leader thanked Members for the opportunity to speak to the Committee and explained that the North East LEP was established in January 2011, a partnerships of Local Authorities, businesses, universities, colleges and the voluntary and community sector.  The Committee noted the aims of the LEP were to create growth and noted that the LEP included Northumberland, Tyne and Wear and Durham with Tees Valley represented by its own LEP, Tees Valley Unlimited.  Members noted that the key role of the North East LEP was in taking on a strategic lead, and that activities included: Enterprise Zones; Growing Places Fund; Regional Growth Fund Infrastructure Pot; and the commissioning of the North East Independent Economic Review (NEIER). 

Councillors noted that the NEIER report was published in April 2013 setting out that creating “more and better jobs” was at the heart of the agenda for the area’s economy, and that there were 14 overarching recommendations from the report focussing on access to finance, innovation; inward investment; transport, skills; apprenticeships; strengthened governance and institutional capacity.  The Spatial Policy Team Leader explained that the LA7 Leadership Board was established in 2012, to build on the successful track record of partnership working, and comprised the 7 Local Authorities Leaders and Elected Mayor (Durham; Gateshead; Newcastle; North Tyneside; Northumberland; South Tyneside; and Sunderland).  Members noted that a Governance Review had several findings that built upon the LA7 statement of intent and that it should be for constituent Local Authorities to build “from the bottom up”, with a draft scheme addressing the findings in order to strengthen current arrangements.  The Spatial Policy Team Leader noted that this set out the legal basis for a statutory body, a Combined Authority (CA), with a LA7 CA initially to focus on economic growth, transport and skills.

The Committee were asked to note what a CA was, a formal structure to lead on collaboration on activities that delivered collectively to drive growth and to combine strategic transport planning with wider economic growth objectives.  It was added that a CA was a legally independent and accountable body which enabled collaboration between Local Authorities, and it was not imposed, rather it was voluntary for Local Authorities.  Members were reminded that a Statutory Order was required to established a CA; Government’s agreement would be required should there be a wish to dissolve a CA, and the CA would be visible, accountable and transparent requiring audit and scrutiny arrangements.

The Spatial Policy Team Leader noted that it was also important to understand what a CA was not, for example it was: not a local government reorganisation, merger or takeover of Local Authorities; not about Local Authorities relinquishing powers; not replacing the LEP; and not a replacement for the roles of individual Local Authorities.

Councillors noted that the Governance Review had set out the reasons why collaborative working would be beneficial, in creating strong and increasing integration across labour and housing markets and key sectors.  The Committee noted that there was a need for “institutional capacity” across the area to be able to take on devolved powers and responsibilities and to provide “a voice” for the area.  Members noted the need for: a simplification of the skills system, strategic coordination with employers, providers and learners; coordination to unlock further untapped potential for inward investment; and coordination on integrated transport and investment, with links to the wider economic development objectives.

The Spatial Policy Team Leader explained that the CA would aim to deliver a joined up approach to funding and a coordinated structure for skills collaboration, underpinned by economic and labour market intelligence.  Members noted that employers would be placed at the centre of a simplified skills system and an Investment Gateway would be established, together with coordinated promotion of the area.  The Committee were informed that the draft scheme was the basis for forming the new statutory body and set out the constitutional and operating arrangements of the CA, areas such as scope, membership, voting and scrutiny arrangements.  It was added that the draft scheme would also set out the functions of the CA with the practical arrangements of how Local Authorities and partners work would be developed over the next few months.  Councillors noted that the next steps were for the individual Cabinets of the constituent Local Authorities to consider the CA scheme, 1.30pm, 24 June 2013, then to be considered by each Local Authorities’ meeting of Council in July, with the CA scheme to be submitted to the Secretary of State by 31 July 2013.  It was noted that this would then lead to consultation moving towards the establishment of the CA on 1 April 2014.

The Chairman thanked the Spatial Policy Team Leader and noted that mention of scrutiny arrangements for a CA was welcomed, and that the CA would add democratic legitimacy to the LEP.  It was noted that the Chair of Overview and Scrutiny, Councillor J Armstrong would be attending a Scrutiny Network meeting next week where this issue was being considered.

Members noted that the term “Combined Authority” was an unfortunate term and could lead to some confusion, however, Councillors noted that it was important that Durham made its position clear from the start, with Durham being the largest Local Authority involved and therefore should have appropriate standing within the CA.  Members also noted that it was important to appreciate that some areas of County Durham would be more economically linked to the Tees Valley LEP and that care should be taken not to overlook this.  Councillors also noted concerns with falls in applications to Further and Higher Education, albeit with rises in apprenticeships applications, and asked whether there was a danger of higher skilled people displacing others from apprenticeship opportunities, presenting a possible skills gap, for example in the manufacturing sector, should those higher skilled people choose to move on to another job sector in the future. 

It was suggested by the Chair that the committee receives as part of the refresh of the work programme further updates on the development of the CA.

Resolved:

(i)         That the report and presentation be noted.

(ii)        That as part of the refresh of the work programme for the Economy and Enterprise    Overview and Scrutiny Committee an update on the development of the Combined   Authority is provided at a future meeting.