Cities and Local Government Devolution Bill (HC Bill 97)

A

BILL

[AS AMENDED IN COMMITTEE]

TO

Make provision for the election of mayors for the areas of, and for conferring
additional functions on, combined authorities established under Part 6 of the
Local Democracy, Economic Development and Construction Act 2009; to
make other provision in relation to bodies established under that Part; to make
provision about local authority governance and functions; to confer power to
establish, and to make provision about, sub-national transport bodies; and for
connected purposes.

Be it enacted by the Queen’s most Excellent Majesty, by and with the advice and
consent of the Lords Spiritual and Temporal, and Commons, in this present
Parliament assembled, and by the authority of the same, as follows:—

Reports 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 annual report must 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 that powers should be devolved to combined
15authorities or the most appropriate local level except where those
powers can more effectively be exercised by central government.

Cities and Local Government Devolution BillPage 2

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

Mayoral combined authorities

2 Power to provide for an elected mayor

(1) 5After section 107 of the Local Democracy, Economic Development and
Construction Act 2009 insert—

“Mayors for combined authority areas

107A Power to provide for election of mayor

(1) The Secretary of State may by order provide for there to be a mayor for
10the area of a combined authority.

(2) A 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.

(3) In subsection (2) “local government elector” has the meaning given by
15section 270(1) of the Local Government Act 1972.

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

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

(6) 20A mayor for the area of a combined authority is by virtue of that office
a member of, and the chair of, the combined authority.

(7) 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
25order under section 107 abolishing the authority (together with the
office of mayor).

(8) 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 30Requirements in connection with orders under section 107A

(1) The 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) 35A proposal under subsection (1) may be included in a scheme prepared
and published under section 109 or 112.

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

(a) the appropriate authorities consent, or

Cities and Local Government Devolution BillPage 3

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

(4) Where an order under section 107A is made by virtue of subsection
5(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) Subsection (2) of section 106 does not apply to an order made under
that section as a result of subsection (4) of this section.

(6) 10For 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,
established,

(b) each district council whose area is within the area for which the
15combined 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,

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

(2) After Schedule 5A to that Act (inserted by section 8 below) insert, as Schedule
205B, the Schedule set out in Schedule 1 to this Act.

3 Deputy mayors etc

After section 107B of the Local Democracy, Economic Development and
Construction Act 2009 (inserted by section 2 above) insert—

107C Deputy mayors etc

(1) 25The 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
mayor, subject to subsection (3).

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

(a) 30the 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) If a vacancy occurs in the office of deputy mayor, the mayor must
appoint another member of the combined authority to be deputy
35mayor.

(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) 40the mayor is unable to act or the office of mayor is vacant, and

(b) the 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.

Cities and Local Government Devolution BillPage 4

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

4 Functions

(1) 5After section 107C of the Local Democracy, Economic Development and
Construction Act 2009 (inserted by section 3 above) insert—

107D 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
10mayor.

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

(3) The mayor may arrange—

(a) 15for the deputy mayor to exercise any general function of the
mayor,

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

(c) so far as authorised by an order made by the Secretary of State—

(i) 20for a person appointed as the deputy PCC mayor by
virtue of an order under paragraph 3(1) of Schedule 5C,
or

(ii) for a committee of the combined authority, consisting of
members appointed by the mayor (whether or not
25members of the authority),

to exercise any such function.

(4) An order under subsection (3)(c)(ii) may include provision—

(a) about the membership of the committee;

(b) about the member of the committee who is to be its chair;

(c) 30about the appointment of members;

(d) about the voting powers of members (including provision for
different weight to be given to the vote of different descriptions
of member);

(e) about information held by the combined authority that must, or
35must not, be disclosed to the committee for purposes connected
to the exercise of the committee’s functions;

(f) applying (with or without modifications) sections 15 to 17 of,
and Schedule 1 to, the Local Government and Housing Act 1989
(political balance on local authority committees etc).

(5) 40Provision 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
subsection (3)

(a) may authorise the exercise of general functions only of a
45description specified in the order, or

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

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(6) Any 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) 5in accordance with arrangements made by virtue of this section
or section 107E.

(7) 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) 10confer ancillary powers on the mayor for the purposes of the
exercise 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;

(e) 15provide that functions that the mayoral combined authority
discharges in accordance with arrangements under section
101(1)(b) of the Local Government Act 1972 (discharge of local
authority functions by another authority) are to be treated as
general functions exercisable by the mayor (so far as authorised
20by the arrangements).

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

(a) under section 113A, or

(b) 25under an order made under section 113D,

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

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

(10) 30Where 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
constituent council is not to be treated as an appropriate authority for
the purposes of subsection (9) above.

107E Joint exercise of general functions

(1) 35The Secretary of State may by order make provision for, or in
connection with, permitting arrangements under section 101(5) of the
Local Government Act 1972 to be entered into in relation to general
functions of a mayor for the area of a combined authority.

(2) Provision under subsection (1) may include provision—

(a) 40for the mayor for the area of a combined authority to be a party
to the arrangements in place of, or jointly with, the authority;

(b) about the membership of any joint committee;

(c) about the member of the joint committee who is to be its chair;

(d) about the appointment of members to a joint committee;

(e) 45about the voting powers of members of a joint committee
(including provision for different weight to be given to the vote
of different descriptions of member).

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(3) Provision under subsection (2)(b) to (d) may include provision for the
mayor or other persons—

(a) to determine the number of members;

(b) to have the power to appoint members (whether or not
5members of the combined authority or a local authority that is a
party to the arrangements).

(4) Provision under subsection (2)(c) may include provision as to the
circumstances in which appointments to a joint committee need not be
made in accordance with sections 15 to 17 of, and Schedule 1 to, the
10Local Government and Housing Act 1989 (political balance on local
authority committees etc).

(5) In this section references to a joint committee are to a joint committee
falling within section 101(5)(a) of the Local Government Act 1972 that
is authorised to discharge, by virtue of an order under this section,
15general functions of a mayor for the area of a combined authority.

107F 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
commissioner in relation to that area.

(2) 20The 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,
or

(b) 25any 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
(1).

(4) 30An 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) the Secretary of State must by order provide that there is to be
35no 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
otherwise take place (whether before or after the specified date)
40by 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
continue until the date specified under subsection (5)(a) (in
45spite 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

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51 of that Act, not to take place if the vacancy occurs within a
period of six months ending with the specified date.

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

(8) 5Any 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) by the mayor acting individually, or

(b) by a person acting under arrangements with the mayor made in
10accordance 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-
consenting constituent council is not to be treated as an appropriate
authority for the purposes of subsection (4) above.”

(2) 15After Schedule 5B to that Act (inserted by section 2 above) insert, as Schedule
5C, the Schedule set out in Schedule 2 to this Act.

5 Financial matters

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

(ab) 20a mayoral combined authority, as defined by section 107A(8) of
the Local Democracy, Economic Development and
Construction Act 2009;”.

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

(11) 25Where 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,
or in connection with, the exercise of mayoral functions (as
defined by section 107G(7) of the Local Democracy, Economic
30Development 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) After section 107F of the Local Democracy, Economic Development and
Construction Act 2009 (inserted by section 4 above) insert—

107G 35 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
connection with, the exercise of mayoral functions to be met from
precepts issued by the authority under section 40 of the Local
40Government 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.

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(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
applying to cases where the precepting authority in question under that
Chapter is a mayoral combined authority.

(4) 5Where 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
under section 42A of the Local Government Finance Act 1992
consists of separate components in respect of the mayor’s PCC
10functions 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
for the purposes of this Part.

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

(a) 15requiring the mayor to maintain a fund in relation to receipts
arising, and liabilities incurred, in the exercise of general
functions;

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

20(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
for—

(a) the mayor to prepare a draft budget;

(b) 25the draft to be scrutinised by—

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

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

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

(d) 30the 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) the basis on which such approval is to be given.

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

(a) 35the mayor’s general functions, and

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

Combined authorities: additional functions

6 Local authority functions

(1) 40The Local Democracy, Economic Development and Construction Act 2009 is
amended as follows.

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

Cities and Local Government Devolution BillPage 9

(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”.

7 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