Devolution questions and answers
Devolution is the transfer of powers and funding from national government to local government.
We are looking at a devolution deal to set up a combined authority in the East Midlands. If the deal is approved by central government, it would create a new East Midlands Mayoral Combined Authority. This is known as a ‘level 3 deal’. Level 1 and level 2 deals offer considerably fewer transfers of powers and budget from central government.
A combined authority is a legal body created through national legislation that enables a group of two or more councils to collaborate and take collective decisions across council boundaries.
A combined authority is more than an informal partnership or even a joint committee. It empowers member councils to be more ambitious in their joint working, taking advantage of powers and resources devolved to them from national government.
We are doing this:
- to address underfunding in the East Midlands
- to focus spending on local priorities
- to work together across services and use local knowledge to get better value for money
- to bring in new investment, better training, and job opportunities, and upgraded and more connected public transport to the area
- to be more self-sufficient and have more responsibility for the future of the local area
- so that more major decisions can be taken by locally elected politicians who better understand local issues, and can be held to account more easily
Ultimately, the reason we are doing this is to make sure that services across the region are the best they can be, for the benefit of our residents.
We are not talking about merging councils together. If the devolution deal is successful, all local councils in Nottinghamshire and Derbyshire - including Nottingham City and Derby City - will continue to exist, as they do now.
None. This is about central government devolving powers to the region, not individual councils giving up power to the region. Local councils will continue to make the decisions over local issues.
There will be no immediate changes to local council services if the devolution deal is agreed. In the longer term, some services might be delivered on a regional rather than local basis, if this is deemed more efficient or better value for money.
The Government has confirmed that a £1.14 billion devolution deal for the East Midlands.
The East Midlands has long been overlooked, in comparison to other Combined Authority areas like the West Midlands and Greater Manchester – public spending per person is lowest in the East Midlands at £12,113 – 10% below the UK average. Devolution is a big opportunity to address this.
Local decision making tends to result in better local economic performance, as policies are tailored to the needs of specific areas.
Local leaders often know and understand the areas much better than politicians and civil servants based in the capital, and their knowledge and experience can deliver what is appropriate and what will work for their region, especially when they work with nearby public and private sector partners.
We want to be ambitious for our region and make the most of this opportunity. We have a £1.14 billion deal on offer from the Government - an overview of what it would make possible is available here: www.nottinghamshire.gov.uk/devolutionbrighterfuture.
Now that we have a deal on offer, there will be opportunities to expand on and enhance it over time. This is the beginning of the journey, not the end. We’re determined to build on this deal in the future, as other areas have done. The new mayoral combined county authority (MCCA) would be considered at future national government spending reviews.
A deal means we can have better regional services and improve the lives of residents, whether that’s by better public transport, more jobs and training, more investment, or better environments for everyone who calls the East Midlands home.
One of the conditions for a level 3 deal, which offers the most local powers and funding, is having an elected mayor. The role of an elected regional mayor would be to look at major issues which affect our whole area, a prominent, accountable person who can look at the big picture and give the region more of a voice.
A mayor with a clear and direct mandate, strong accountability, and the power to make change happen, could be a powerful driving force for the East Midlands.
If approved, the mayor would work together with leaders of local councils to create a strategy for the wider area. This is a critical role, and it is essential that this person should be democratically accountable.
Local councils would still be responsible for most public services, such as waste management, schools, recreational facilities, and so forth. The mayor would focus on wider issues that span across the area, like transport, regeneration, and employment.
This isn’t about adding a layer of unnecessary bureaucracy but moving resources and decision-making powers which already exist from London to the East Midlands and making all of this democratically accountable to the people who live here.
Devolution is mainly about strengthening regional arrangements. If a combined authority deal was approved, it would come with new wide scale powers not currently available at a local level.
These new powers would be exercised across the whole region, with the consent of local councils in our area. This is because they would add value by addressing issues like transport that benefit from being planned on a wider geographical basis.
We are focussing on key areas including transport and infrastructure, business growth, inward investment, strategic regeneration, employment, employment skills, supporting young people’s journey into adulthood, and community safety.
We believe that these are areas the entire region would benefit from, in terms of greater investment and more decision making at a local level.
The East Midlands has long been overlooked, in comparison to other areas like the West Midlands and Greater Manchester, in terms of government investment. Public spending per person is lowest in the East Midlands at £12,113 – 10% below the UK average.
The government has made it clear through their Levelling Up White Paper that they believe more local decision-making leads to better outcomes for communities, and so the greatest benefits are attached to devolution deals which include more local accountability.
In our initial bid to the government, we have asked for everything that is potentially on offer, as we don’t want to rule anything out at this early stage. We have included the power to raise money through Council Tax because it might be used at some point in the future.
Of the nine existing mayoral combined authorities, eight have this power, but only two have ever actually used it. So, this is a possible option, not a foregone conclusion.
It would be a major missed opportunity. We’d miss out on the chance of getting more funding for services in our region, and the efficiency of working at scale.
We could potentially get left behind compared to other areas who are part of devolution deals, giving them a bigger voice, as well as being able to make more major decisions locally, near the people they affect.
It’s likely we would have less influence over future government investment priorities, less financial certainty, would have to compete more for national funding, and we could lose the chance for a guaranteed funding stream.
Ultimately, we’d lose a big chance to improve public transport, get more investment for business growth, bring in more jobs, skills, and training, and improve the places where we live and work, as well as potentially much more.
Devolution is all about getting a better deal for our area, and we don’t want to miss out.
Nine combined authorities with elected mayors currently exist in England:
- Cambridgeshire and Peterborough
- Greater Manchester
- Liverpool City Region
- North of Tyne
- South Yorkshire
- Tees Valley
- West Midlands
- West of England
- West Yorkshire
Other areas were invited by the government in February 2022 to start formal negotiations to agree new devolution deals, with the aim of agreeing a number of these deals by autumn 2022:
- Cornwall
- Derbyshire and Derby
- Devon
- Durham
- Hull and East Yorkshire
- Leicestershire
- Norfolk
- Nottinghamshire and Nottingham
- Plymouth and Torbay
- Suffolk
Derby City Council, Derbyshire County Council, Nottingham City Council and Nottinghamshire County Council sent the Government initial proposals to negotiate a combined devolution deal, and the Government has confirmed that a £1.14 billion deal is available.
Nottinghamshire, Nottingham, Derby, and Derbyshire were named as pathfinder areas by the Government in February 2022 and invited to apply for a devolution deal.
Nottinghamshire County Council, Nottingham City Council, Derby City Council and Derbyshire County Council sent in initial proposals to negotiate a combined devolution deal to the government.
On 30 August the Government confirmed that a £1.14 billion devolution deal is available for the East Midlands over the next 30 years. The deal covers Derby, Derbyshire, Nottingham, and Nottinghamshire. All four city and county council leaders signed up to the deal.
The deal is one of the first of a new type of combined authority, happening across a two-tier area, and requires new legislation from central government. It is a level 3 deal, which offers the most local powers and funding. It would mean a new elected regional mayor, with elections currently expected to take place in spring 2024.
Extensive discussions have been held with borough and district councils, as well as other key partners. The four councils will continue working together to develop details of the deal, and each council will take a report through their respective council meetings in autumn 2022. There will also be a public consultation later this year to ensure that the voice of residents, businesses and partners is fully heard.
