Cities and Local Government Devolution Bill (HC Bill 64)

Reports and statements about local devolution

1 Devolution: annual report

(1) The Secretary of State must lay before each House of Parliament an annual
report about devolution for all areas within England pursuant to the
5provisions of this Act.

(2) The report shall include information on—

(a) the areas of the country where agreements have been reached;

(b) the areas of the country where proposals have been received by the
Secretary of State and negotiations have taken place but agreement has
10not yet been reached;

(c) additional financial resources and public functions which have been
devolved as a result of agreements; and

(d) the extent to which consideration has been given by a Minister of the
Crown to the principle under section 2 that powers should be devolved
15to combined authorities or the most appropriate local level except
where those powers can more effectively be exercised by central
government.

(3) The annual report shall be laid before each House of Parliament as soon as
practicable after 31 March each year.

2 Devolution statements

(1) A Minister of the Crown who has introduced a Bill in either House of
Parliament must, before the second reading of the Bill, make a devolution
statement to the effect that in his view the provisions of the Bill are compatible
5with the principle that powers should be devolved to combined authorities or
the most appropriate local level except where those powers can more
effectively be exercised by central government.

(2) The statement must be in writing and be published in such a manner as the
Minister making it considers appropriate.

10Mayoral combined authorities

3 Power to provide for an elected mayor

(1) After section 107 of the Local Democracy, Economic Development and
Construction Act 2009 insert—

““Mayors for combined authority areas

107A 15 Power to provide for election of mayor

(1) The Secretary of State may by order provide for there to be a mayor for
the area of a combined authority.

(2) An order under subsection (1) shall not be used as a condition for
agreeing to the transfer of local authority or public authority functions.

(3) 20A mayor for the area of a combined authority is to be elected by the
local government electors for that area in accordance with provision
made by or under this Part.

(4) In subsection (3) “local government elector” has the meaning given by
section 270(1) of the Local Government Act 1972.

(5) 25Schedule 5B makes further provision about the election of mayors for
areas of combined authorities.

(6) A mayor for the area of a combined authority is entitled to the style of
“mayor”.

(7) A mayor for the area of a combined authority is by virtue of that office
30a member of, and the chair of, the combined authority.

(8) An order under this section providing for there to be a mayor for the
area of a combined authority may not be revoked by making a further
order under this section; but this does not prevent the making of an
order under section 107 abolishing the authority (together with the
35office of mayor).

(9) In this Part “mayoral combined authority” means a combined authority
for an area for which provision is made in an order under this section
for there to be a mayor.

107B Requirements in connection with orders under section 107A

(1) 40The Secretary of State may make an order under section 107A in
relation to a combined authority’s area if a proposal for there to be a

mayor for the authority’s area has been made to the Secretary of State
by the appropriate authorities.

(2) A proposal under subsection (1) may be included in a scheme prepared
and published under section 109 or 112.

(3) 5An order under section 107A may also be made without any such
proposal having been made if—

(a) the appropriate authorities consent, or

(b) in the case of an existing combined authority, the appropriate
authorities consent apart from one non-consenting constituent
10council.

(4) Where an order under section 107A is made by virtue of subsection
(3)(b) of this section, the Secretary of State must make an order under
section 106 to remove the area of the non-consenting constituent
council from the existing area of the combined authority.

(5) 15Subsection (2) of section 106 does not apply to an order made under
that section as a result of subsection (4) of this section.

(6) For the purposes of this section “the appropriate authorities” are—

(a) each county council the whole or any part of whose area is
within the area for which the combined authority is, or is to be,
20established,

(b) each district council whose area is within the area for which the
combined authority is, or is to be, established, and

(c) in the case of an order in relation to an existing combined
authority, the combined authority,

25and a “constituent council” is a council within paragraph (a) or (b).””

(2) After Schedule 5A to that Act (inserted by section 9 below) insert, as Schedule
5B, the Schedule set out in Schedule 1 to this Act.

4 Deputy mayors etc

After section 107B of the Local Democracy, Economic Development and
30Construction Act 2009 (inserted by section 3 above) insert—

“107C Deputy mayors etc

(1) The mayor for the area of a combined authority must appoint one of the
members of the authority to be the mayor’s deputy.

(2) The deputy mayor holds office until the end of the term of office of the
35mayor, subject to subsection (3).

(3) A person ceases to be the deputy mayor if at any time—

(a) the mayor removes the person from office;

(b) the person resigns as deputy mayor;

(c) the person ceases to be a member of the combined authority.

(4) 40If a vacancy occurs in the office of deputy mayor, the mayor must
appoint another member of the combined authority to be deputy
mayor.

(5) The deputy mayor must act in place of the mayor if for any reason—

(a) the mayor is unable to act, or

(b) the office of mayor is vacant.

(6) If for any reason—

(a) the mayor is unable to act or the office of mayor is vacant, and

(b) 5the deputy mayor is unable to act or the office of deputy mayor
is vacant,

the other members of the combined authority must act together in place
of the mayor, taking decisions by a simple majority.

(7) In this Part “deputy mayor”, in relation to a mayoral combined
10authority, means the person appointed under this section by the mayor
for the authority’s area.””

5 Functions

(1) After section 107C of the Local Democracy, Economic Development and
Construction Act 2009 (inserted by section 4 above) insert—

“107D 15 Functions of mayors: general

(1) The Secretary of State may by order make provision for any function of
a mayoral combined authority to be a function exercisable only by the
mayor.

(2) In this Part references to “general functions”, in relation to a mayor for
20the area of a combined authority, are to any functions exercisable by the
mayor other than PCC functions.

(3) The mayor may arrange for—

(a) the deputy mayor to exercise any general function of the mayor,
or

(b) 25for another member or officer of the combined authority to
exercise any such function.

(4) Provision in an order under subsection (1) for a function to be
exercisable only by the mayor is subject to subsection (3); but the
Secretary of State may by order provide that arrangements under
30subsection (3)—

(a) may authorise the exercise of general functions only of a
description specified in the order, or

(b) may not authorise the exercise of general functions of a
description so specified.

(5) 35Any general function exercisable by the mayor for the area of a
combined authority by virtue of this Act is to be taken to be a function
of the combined authority exercisable—

(a) by the mayor individually, or

(b) by a person acting under arrangements with the mayor made in
40accordance with subsection (3).

(6) An order under this section may—

(a) provide for members or officers of a mayoral combined
authority to assist the mayor in the exercise of general functions;

(b) confer ancillary powers on the mayor for the purposes of the
45exercise of general functions;

(c) authorise the mayor to appoint one person as the mayor’s
political adviser;

(d) provide for the terms and conditions of any such appointment.

(7) Provision under subsection (6)(b) may include provision conferring
5power on the mayor that is similar to any power exercisable by the
mayoral combined authority—

(a) under section 113A, or

(b) under an order made under section 113D,

but the power conferred on the mayor may not include a power to
10borrow money.

(8) An order under this section may be made only with the consent of the
appropriate authorities (as defined by section 107B(6)).

(9) Where an order under this section is contained in the same instrument
as an order made by virtue of section 107B(3)(b), the non-consenting
15constituent council is not to be treated as an appropriate authority for
the purposes of subsection (8) above.

107E Functions of mayors: policing

(1) The Secretary of State may by order provide for the mayor for the area
of a combined authority to exercise functions of a police and crime
20commissioner in relation to that area.

(2) The reference in subsection (1) to functions of a police and crime
commissioner is to any functions conferred on police and crime
commissioners by or under—

(a) Part 1 of the Police Reform and Social Responsibility Act 2011,
25or

(b) any other Act (whenever passed).

(3) In this Part references to “PCC functions”, in relation to a mayor for the
area of a combined authority, are to the functions of a police and crime
commissioner that are exercisable by the mayor by virtue of subsection
30(1).

(4) An order under subsection (1) may be made only with the consent of
the appropriate authorities (as defined by section 107B(6)).

(5) If an order is made under subsection (1) in relation to a combined
authority’s area—

(a) 35the Secretary of State must by order provide that there is to be
no police and crime commissioner for that area as from a
specified date;

(b) the Secretary of State may by order provide that any election of
a police and crime commissioner for that area that would
40otherwise take place (whether before or after the specified date)
by virtue of section 50(1)(b) of the Police Reform and Social
Responsibility Act 2011 is not to take place.

(6) An order under subsection (5) may include provision—

(a) for the term of office of a police and crime commissioner to
45continue until the date specified under subsection (5)(a) (in
spite of section 50(7)(b) of the Police Reform and Social
Responsibility Act 2011);

(b) for an election to fill a vacancy in the office of a police and crime
commissioner, which otherwise would take place under section
51 of that Act, not to take place if the vacancy occurs within a
period of six months ending with the specified date.

(7) 5Schedule 5C contains further provision in connection with orders
under this section.

(8) Any PCC function exercisable by the mayor for the area of a combined
authority by virtue of this Act is to be taken to be a function of the
combined authority exercisable—

(a) 10by the mayor acting individually, or

(b) by a person acting under arrangements with the mayor made in
accordance with provision made under Schedule 5C.

(9) Where an order under subsection (1) is contained in the same
instrument as an order made by virtue of section 107B(3)(b), the non-
15consenting constituent council is not to be treated as an appropriate
authority for the purposes of subsection (4) above.””

(2) After Schedule 5B to that Act (inserted by section 3 above) insert, as Schedule
5C, the Schedule set out in Schedule 2 to this Act.

6 Financial matters

(1) 20In section 39 of the Local Government Finance Act 1992 (precepting and
precepted authorities), in subsection (1) after paragraph (aa) insert—

“(ab) a mayoral combined authority, as defined by section 107A(9) of
the Local Democracy, Economic Development and
Construction Act 2009;”.”

(2) 25In section 40 of that Act (issue of precepts by major precepting authorities),
after subsection (10) insert—

“(11) Where the precepting authority is a mayoral combined authority—

(a) a precept may be issued under this section only in relation to
expenditure incurred by the mayor for the authority’s area in,
30or in connection with, the exercise of mayoral functions (as
defined by section 107F(7) of the Local Democracy, Economic
Development and Construction Act 2009), and

(b) the issuing and calculation of a precept under this Chapter is
subject to any provision made in an order under that section.””

(3) 35After section 107E of the Local Democracy, Economic Development and
Construction Act 2009 (inserted by section 5 above) insert—

“107F Mayors for combined authority areas: financial matters

(1) The Secretary of State may by order make provision for the costs of a
mayor for the area of a combined authority that are incurred in, or in
40connection with, the exercise of mayoral functions to be met from
precepts issued by the authority under section 40 of the Local
Government Finance Act 1992.

(2) The function of issuing precepts under Chapter 4 of Part 1 of the Local
Government Finance Act 1992 in respect of mayoral functions is to be a

function exercisable only by the mayor acting on behalf of the
combined authority.

(3) The Secretary of State may by order modify the application of Chapter
4 or 4ZA of Part 1 of the Local Government Finance Act 1992 so far as
5applying to cases where the precepting authority in question under that
Chapter is a mayoral combined authority.

(4) Where the mayoral functions of a mayor include PCC functions—

(a) the provision made by virtue of subsection (2) must include
provision to ensure that the council tax requirement calculated
10under section 42A of the Local Government Finance Act 1992
consists of separate components in respect of the mayor’s PCC
functions and the mayor’s general functions, and

(b) the function of calculating the component in respect of the
mayor’s PCC functions is itself to be treated as a PCC function
15for the purposes of this Part.

(5) The Secretary of State may by order make provision—

(a) requiring the mayor to maintain a fund in relation to receipts
arising, and liabilities incurred, in the exercise of general
functions;

(b) 20about the preparation of an annual budget in relation to the
exercise of general functions.

(For power to make corresponding provision in relation to PCC
functions, see paragraph 5 of Schedule 5C.)

(6) Provision under subsection (5)(b) may in particular include provision
25for—

(a) the mayor to prepare a draft budget;

(b) the draft to be scrutinised by—

(i) the other members of the combined authority, and

(ii) a committee of the authority appointed in accordance
30with paragraph 1(1) of Schedule 5A;

(c) the making of changes to the draft as a result of such scrutiny;

(d) the approval of the draft by the combined authority (including
a power to veto the draft in circumstances specified in the order
and the consequences of any such veto);

(e) 35the basis on which such approval is to be given.

(7) In this section “mayoral functions”, in relation to a mayor, means—

(a) the mayor’s general functions, and

(b) if the mayor exercises PCC functions, the mayor’s PCC
functions.””

40Combined authorities: additional functions

7 Local authority functions

(1) The Local Democracy, Economic Development and Construction Act 2009 is
amended as follows.

(2) In section 105 (constitution and functions: economic development and
45regeneration)—

(a) for subsection (2) substitute—

“(2) Section 91(5) does not apply in relation to functions exercisable
by a combined authority by virtue of subsection (1).”;”

(b) in the heading, for “economic development and regeneration”
5substitute “local authority functions generally”.

(3) In section 108 (review by authorities: new combined authority), in subsection
(1), for paragraphs (a) and (b) substitute “the exercise of statutory functions in
relation to an area (“the review area”) with a view to deciding whether to
prepare and publish a scheme under section 109”.

(4) 10In section 109 (preparation and publication of scheme: new combined
authority), in subsection (1), for paragraphs (a) to (d) substitute “the exercise of
statutory functions in relation to the area”.

(5) In section 112 (preparation and publication of scheme: existing combined
authority), in subsection (1), for paragraphs (a) to (d) substitute “the exercise of
15statutory functions in relation to an area of a combined authority or a proposed
area of a combined authority”.

8 Other public authority functions

After section 105 of the Local Democracy, Economic Development and
Construction Act 2009 insert—

“105A 20 Other public authority functions

(1) The Secretary of State may by order —

(a) make provision for a function of a public authority that is
exercisable in relation to a combined authority’s area to be a
function of the combined authority;

(b) 25make provision for conferring on a combined authority in
relation to its area a function corresponding to a function that a
public authority has in relation to another area.

(2) An order under subsection (1) may include further provision about the
exercise of the function including—

(a) 30provision for the function to be exercisable by the public
authority or combined authority subject to conditions or
limitations specified in the order;

(b) provision as to joint working arrangements between the
combined authority and public authority in connection with the
35function (for example, provision for the function to be exercised
by a joint committee).

(3) The provision that may be included in an order under subsection (1)(a)
includes, in particular, provision—

(a) for the combined authority to have the function instead of the
40public authority,

(b) for the function to be exercisable by the combined authority
concurrently with the public authority,

(c) for the function to be exercisable by the combined authority and
the public authority jointly, or

(d) for the function to be exercisable by the combined authority
jointly with the public authority but also continue to be
exercisable by the public authority alone.

(4) An order under subsection (1)(a) may, in particular, include—

(a) 5provision for the making of a scheme to transfer property, rights
and liabilities from the public authority to the combined
authority (including provision corresponding to any provision
made by section 17(4) to (7) of the Localism Act 2011);

(b) provision to abolish the public authority in a case where, as a
10result of the order, it will no longer have any functions.

(5) An order under this section may not provide for a regulatory function
that is exercisable by a public authority in relation to the whole of
England to be exercisable by a combined authority in relation to its area
if the regulated function is itself exercisable by the combined authority
15by virtue of an order under this section.

(6) In this section—

• “function” (except in subsection (3)(b)) does not include a power
  to make regulations or other instruments of a legislative
  character;

• 20“Minister of the Crown” has the same meaning as in the Ministers
  of the Crown Act 1975;

• “public authority”—

  (a)

  includes a Minister of the Crown or a government
  department;

  (b)

  25does not include a county council or district council;

• “regulated function” means the function of carrying out an activity
  to which a regulatory function relates;

• “regulatory function” has the meaning given by section 32 of the
  Legislative and Regulatory Reform Act 2006.

105B 30Section 105A orders: procedure

(1) The Secretary of State may make an order under section 105A only if—

(a) a proposal for the making of the order in relation to the
combined authority has been made to the Secretary of State by
the appropriate authorities, or

(b) 35in the case of an existing combined authority, the combined
authority consents and the Secretary of State considers that the
making of the order is likely to improve the exercise of statutory
functions in the area or areas to which the order relates.

(2) At the same time as laying a draft of a statutory instrument containing
40an order under this section before Parliament, the Secretary of State
must lay before Parliament a report explaining the effect of the order
and why the Secretary of State considers it appropriate to make the
order.

(3) The report must include—

(a) 45a description of any consultation taken into account by the
Secretary of State,

(b) information about any representations considered by the
Secretary of State in connection with the order, and