Cities and Local Government Devolution Bill [HL]

AmendmentS
to be moved
on report

Before Clause 1

LORD MCKENZIE OF LUTON

LORD BEECHAM

 

Insert the following new Clause—

“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
provisions 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 not 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 (Devolution statements) 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.

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

 

Insert the following new Clause—

“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 with the principle that powers should be devolved to combined
authorities 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.”

Clause 1

LORD MCKENZIE OF LUTON

LORD BEECHAM

 

Page 1, line 8,
at end insert—

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

Clause 2

LORD MCKENZIE OF LUTON

LORD BEECHAM

 

Page 3, line 4, at end insert “with the consent of the combined authority.”

Clause 3

LORD MCKENZIE OF LUTON

LORD BEECHAM

 

Page 3, line 32,
at end insert “provided this has the consent of the combined
authority.”

 

Page 3, line 40,
at end insert—

“( )     The mayor must consult the combined authority when any general
function of the mayor is delegated to the deputy mayor or any other
member or officer.”

 

Page 4, line 6,
at end insert—

“( )   may only be made in consultation with the combined
authority.”

Clause 4

BARONESS WILLIAMS OF TRAFFORD

 

Page 6, line 8,
at end insert—

“(1A)    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.”

 

Page 6, line 9,
leave out “Provision under subsection (1) may” and insert “The
Secretary of State may by order”

 

Page 6, line 10,

after “4” insert “or 4ZA”

 

Page 6, line 12,
at end insert—

“(2A)    
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 under 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 for the purposes of this Part.”

Clause 5

BARONESS WILLIAMS OF TRAFFORD

 

Page 7, line 13, leave out subsection (5)

 

Page 7, line 20, leave out subsection (7)

Clause 6

LORD MCKENZIE OF LUTON

LORD HUNT OF KINGS HEATH

 

Page 8, line 17,
at end insert—

“(5)     An order under subsection (1) shall not extend to the transfer to the
combined authority of any function of a public authority which is
wholly or partly of a regulatory or supervisory nature.”

 

Page 8, line 26,
insert “; and once the proposal or consent has been received by the
Secretary of State, the requirements in subsections (1A) to (1C) have been fulfilled.

“(1A)    Before laying a draft order under subsection 105A before
Parliament for approval, the Secretary of State must publish for
consultation, in such manner as he considers appropriate, a
proposal containing a draft of the instrument containing the order,
and a statement explaining why the Secretary of State wishes to
proceed with it.

(1B)    The Secretary of State must have regard to any representations
made about a proposal within a 60-day period, starting on the day
on which the proposal is published under subsection (1A).

(1C)    If after the expiry of the 60-day period the Secretary of State wishes

to proceed, the Secretary of State shall lay before Parliament—

(a)   a draft order for approval under section 105A;

(b)   a statement giving details of any representations received;
and

(c)   a statement as to whether the draft order has been revised,
including whether the revisions have been made in
response to representations or for any other reason.”

BARONESS WILLIAMS OF TRAFFORD

 

Page 8, line 26,
at end insert—

“( )     At the same time as laying a draft of a statutory instrument
containing an 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.

( )     
The report must include—

(a)   a 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

(c)   any other evidence or contextual information that the
Secretary of State considers it appropriate to include.”

After Clause 6

LORD MCKENZIE OF LUTON

LORD BEECHAM

 

Insert the following new Clause—

“Public authority functions

Within one month of the passing of this Act, the Secretary of State must
publish a list of public authority functions which may be the subject of a
transfer of functions under the provisions of this Act.”

Clause 8

LORD MCKENZIE OF LUTON

LORD BEECHAM

 

Page 10, line 2,
at end insert—

“( )     The Secretary of State may by order make provision for conferring
powers on a combined authority to set multi-year finance
settlements and retain additional business rates raised through
growing business in their region.”

Clause 9

LORD MCKENZIE OF LUTON

LORD BEECHAM

 

Page 10, line 7,
leave out “may” and insert “shall”

After Clause 9

BARONESS WILLIAMS OF TRAFFORD

 

Insert the following new Clause—

“Requirements in connection with establishment etc. of combined authority

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

(2)     In section 110 (requirements in connection with establishment of combined

authority), for subsections (1) to (3) substitute—

“(1)     The Secretary of State may make an order establishing a combined

authority for an area only if—

(a)   the Secretary of State considers that to do so is likely to
improve the exercise of statutory functions in the area or
areas to which the order relates, and

(b)   the constituent councils consent.

(1A)    If a scheme for the establishment of the combined authority has
been prepared and published under section 109 the Secretary of
State must have regard to that scheme in making the order.

(2)     In a case where no such scheme has been prepared and published,
the Secretary of State must consult such persons (if any) as the
Secretary of State considers appropriate before making the order.

(3)     
In this section “constituent council” means—

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

(b)   a district council whose area is within the area for which the
combined authority is to be established.”

(3)     In section 113 (requirements in connection with changes to existing

combined arrangements), for subsections (1) and (2) substitute—

“(1)     The Secretary of State may make an order under section 104, 105,

106 or 107 in relation to an existing combined authority only if—

(a)   the Secretary of State considers that to do so is likely to
improve the exercise of statutory functions in the area or
areas to which the order relates, and

(b)   the constituent councils consent.

(1A)    If a scheme has been prepared and published under section 112 the
Secretary of State must have regard to that scheme in making the
order.

(2)     In a case where no such scheme has been prepared and published,
the Secretary of State must consult such persons (if any) as the
Secretary of State considers appropriate before making the order.

(2A)    
In this section “constituent council” means—

(a)   a county council the whole or any part of whose area is
within the area or proposed area of the combined authority,
or

(b)   a district council whose area is within the area or proposed
area of the combined authority.”

 

Insert the following new Clause—

“Removal of geographical restrictions in relation to EPBs

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

(2)     Omit subsections (3) and (4) of section 88 (EPBs and their areas).

(3)     
In section 95(2)(a) (changes to boundaries of an EPB’s area: conditions), for

“conditions A to D” substitute “conditions A and D”.

(4)     In section 98(3)(c) (preparation and publication of scheme for new EPB:

conditions) for “conditions A to C” substitute “condition A”.

(5)     In section 99 (requirements in connection with establishment of EPB), after

subsection (3) insert—

“(3A)    Subsection (3B) applies where the Secretary of State is considering

whether to make an order establishing an EPB for an area and—

(a)   part of the area is separated from the rest of it by one or
more local government areas that are not within the area, or

(b)   a local government area that is not within the area is
surrounded by local government areas that are within the
area.

(3B)    In deciding whether to make the order, the Secretary of State must
have regard to the likely effect of the creation of the proposed EPB
on economic development or regeneration in each local
government area that is next to any part of the proposed EPB area.”

(6)     In section 102 (requirements in connection with changes to existing EPB

arrangements), after subsection (2), insert—

“(2A)    Subsection (2B) applies where the Secretary of State is considering

whether to make an order under section 95 and—

(a)   part of the area to be created is separated from the rest of it
by one or more local government areas that are not within
the area, or

(b)   a local government area that is not within the area to be
created is surrounded by local government areas that are
within the area.

(2B)    In deciding whether to make the order under section 95, the
Secretary of State must have regard to the likely effect of the

proposed change to the EPB’s area on economic development or
regeneration in each local government area that is next to any part
of the area to be created by the order.””

 

Insert the following new Clause—

“Removal of geographical restrictions in relation to combined authorities

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

(2)     Omit subsections (3) and (4) of section 103 (combined authorities and their
areas).

(3)     
In section 106(2)(a) (changes to boundaries of a combined authority’s area:

conditions), for “conditions A to D” substitute “conditions A and D”.

(4)     In section 109(3)(c) (preparation and publication of scheme for new

combined authority: conditions), for “conditions A to C” substitute

“condition A”.

(5)     In section 110 (requirements in connection with establishment of combined

authority), before subsection (4) insert—

“(3A)    Subsection (3B) applies where the Secretary of State is considering
whether to make an order establishing a combined authority for an

area and—

(a)   part of the area is separated from the rest of it by one or
more local government areas that are not within the area, or

(b)   a local government area that is not within the area is
surrounded by local government areas that are within the
area.

(3B)    In deciding whether to make the order, the Secretary of State must
have regard to the likely effect of the creation of the proposed
combined authority on the exercise of functions equivalent to those

of the proposed combined authority’s functions in each local
government area that is next to any part of the proposed combined
authority area.”

(6)     In section 113 (requirements in connection with changes to existing
combined authorities), after subsection (2A) (inserted by section
(Requirements in connection with establishment etc. of combined authority)

above) insert—

“(2B)    Subsection (2C) applies where the Secretary of State is considering

whether to make an order under section 106 and—

(a)   part of the area to be created is separated from the rest of it
by one or more local government areas that are not within
the area, or

(b)   a local government area that is not within the area to be
created is surrounded by local government areas that are
within the area.

(2C)    In deciding whether to make the order under section 106, the
Secretary of State must have regard to the likely effect of the change

to the combined authority’s area on the exercise of functions

equivalent to those of the combined authority’s functions in each
local government area that is next to any part of the area to be
created by the order.””

 

Insert the following new Clause—

“Changes to existing EPB

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

(2)     
In section 100 (review by authorities: existing EPB)—

(a)   
in subsection (1), for “a review of one or more EPB matters.”

substitute “a review of—

(a)   a matter in relation to which an order may be made
under section 95 or 96;

(b)   a matter concerning the EPB that the EPB has power
to determine.”;

(b)   omit subsection (3).

(3)     
In section 101 (preparation and publication of scheme: existing EPB—

(a)   
in subsection (1), for “any one or more of sections 89, 91, 92, 95 and

96” substitute “section 95 or 96”;

(b)   
in subsection (2), omit “or powers”.

(4)     
After section 101, insert—

“101A           Application in respect of change to constitution, functions or
funding: existing EPB

(1)     Any one or more of the authorities to whom this section applies
may, in relation to an existing EPB, apply to the Secretary of State in
respect of one or more EPB matters.

(2)     
This section applies to—

(a)   the EPB;

(b)   a county council whose area, or part of whose area, is within
the area of the EPB;

(c)   a district council whose area is within the area of the EPB.

(3)     
For the purposes of this section an “EPB matter” is a matter in
relation to which an order may be made under any of sections 89,
91 and 92.

(4)     
An application to the Secretary of State under subsection (1) must—

(a)   be made in writing;

(b)   specify how the exercise of the power to make an order
under any one or more of sections 89, 91 and 92 would be

likely to improve—

(i)   the exercise of statutory functions relating to
economic development and regeneration in the area
of the EPB, or

(ii)   economic conditions in the area of the EPB.

(5)     An application may be made under this section only if every
authority to whom this section applies consents to the making of
the application.”

(5)     In section 102 (requirements in connection with changes to existing EPB

arrangements)—

(a)   
in subsection (1), after “section 101” insert “or to an application
made under section 101A”;

(b)   
in subsection (2)(a), after “section 100(2)” insert “or section
101A(2)”.”

LORD WARNER

 

Insert the following new Clause—

“Devolving NHS responsibilities

(1)     The Secretary of State may only exercise the powers in section 105A of the
Local Democracy, Economic Development and Construction Act 2009 to
transfer to a combined authority, or other designated body working in
association with a combined authority, responsibilities of any health

service body, if he considers that—

(a)   it is in the best interests of the population served by the authority in
terms of their health outcomes;

(b)   it will facilitate the discharge of his duties in sections 2 and 4 of the
Health and Social Care Act 2012 (duties to improve the quality of
health services and reduce inequalities); and

(c)   it will improve the effectiveness and sustainability of local health
and care services.

(2)     
Under subsection 1 an “other designated body” must be a body corporate
with a governing body and a chief accounting officer that are able to
produce annual audited public accounts and be accountable annually to
the combined authority for its performance.

(3)     Where there is no other designated authority the combined authority must
have a designated chief accounting officer for the NHS responsibilities
transferred to it and must account separately in its accounts for the monies
spent on those transferred responsibilities.

(4)     In making a transfer of responsibilities and resources in accordance with
subsection (1) the Secretary of State shall require a memorandum of
understanding on future service intentions, models of service delivery and
use of resources to be agreed between NHS England and the combined
authority or the other designated body working in association with the
combined authority.

(5)     
A memorandum of understanding under subsection (4) shall—

(a)   be for a period of at least five years;

(b)   
be consistent with the Secretary of State’s responsibilities under the
2012 Act, including his Mandates to NHS England;

(c)   ensure compliance with the regulatory and national service and
information standards required of NHS commissioners and service
providers; and

(d)   specify the key health outcomes and improvements to be achieved
for the period of the memorandum.

(6)     The provisions of an agreed memorandum of understanding under
subsection (5) shall be incorporated in an order made by the Secretary of
State.

(7)     An order may not be made under subsection (6) unless a draft of the order
has been laid before, and approved by a resolution of, each House of
Parliament.

(8)     Once an order is approved, the Secretary of State may not use his powers
of intervention in the actions of the combined authority or other designated
body unless they have demonstrated, after due warning, a consistent

inability to meet their population’s health needs or to do so within the
agreed funding provisions made available to the authority or other
designated body.

(9)     A combined authority or other designated body working in association
with it under the provisions of this section shall publish an annual report
on how responsibilities in the memorandum of understanding in
subsection (4) have been discharged alongside the published annual
accounts.

(10)     
In this section, “health service body” has the same meaning as in the
National Health Service Act 2006.”

Clause 10

LORD MCKENZIE OF LUTON

LORD BEECHAM

 

Page 10, line 25,
at end insert—

“( )     In making regulations under subsection (1), the Secretary of State must
have regard to the need to reflect the identities and interests of local
communities and to secure effective and convenient local government.”

BARONESS WILLIAMS OF TRAFFORD

 

Page 10, line 39,
at end insert—

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

( )     
The report must include—

(a)   a 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 regulations, and

(c)   any other evidence or contextual information that the Secretary of
State considers it appropriate to include.”

After Clause 10

BARONESS WILLIAMS OF TRAFFORD

 

Insert the following new Clause—

“Power to transfer etc. public authority functions to certain local authorities

(1)     
The Secretary of State may by regulations—

(a)   make provision for a function of a public authority that is

exercisable in relation to a relevant local authority’s area to be a
function of the local authority;

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

(2)     Regulations under subsection (1) may include further provision about the

exercise of the function including—

(a)   provision for the function to be exercisable by the public authority
or relevant local authority subject to conditions or limitations
specified in the regulations;

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

(3)     The provision that may be included in regulations under subsection (1)(a)

includes, in particular, provision—

(a)   for the relevant local authority to have the function instead of the
public authority,

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

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

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

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

(a)   provision for the making of a scheme to transfer property, rights
and liabilities from the public authority to the relevant local
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 result
of the regulations, it will no longer have any functions.

(5)     
In this section—


“function” (except in subsection (4)(b)) does not include a power to
make regulations or other instruments of a legislative character;


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


“public authority” includes a Minister of the Crown or a government
department;


“relevant local authority” means a county council in England or a
district council.”

 

Insert the following new Clause—

“Section (Power to transfer etc. public authority functions to certain local
authorities
): procedure etc.

(1)     The Secretary of State may make regulations under section (Power to
transfer etc. public authority functions to certain local authorities

) only if—

(a)   the relevant local authority consents, and

(b)   the Secretary of State considers that the making of the regulations is
likely to improve the exercise of statutory functions in the local
authority’s area.

(2)     The power to make regulations under section (Power to transfer etc. public
authority functions to certain local authorities

)—

(a)   is exercisable by statutory instrument;

(b)   includes power to make transitional, transitory or saving provision;

(c)   may, in particular, be exercised by amending, repealing, revoking
or otherwise modifying any provision made by or under an Act
whenever passed or made.

(3)     A statutory instrument containing regulations under section (Power to
transfer etc. public authority functions to certain local authorities
) may be made
only if a draft of the instrument has been laid before each House of
Parliament and approved by a resolution of each House.

(4)     At the same time as laying a draft of a statutory instrument containing
regulations under section (Power to transfer etc. public authority functions to
certain local authorities
) before Parliament, the Secretary of State must lay
before Parliament a report explaining the effect of the regulations and why
the Secretary of State considers it appropriate to make the regulations.

(5)     
The report must include—

(a)   a 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 regulations, and

(c)   any other evidence or contextual information that the Secretary of
State considers it appropriate to include.

(6)     If a draft of regulations under section (Power to transfer etc. public authority
functions to certain local authorities
) would, apart from this subsection, be
treated for the purposes of the standing orders of either House of
Parliament as a hybrid instrument, it is to proceed in that House as if it
were not a hybrid instrument.”

Schedule 1

BARONESS WILLIAMS OF TRAFFORD

 

Page 13, line 12,
at end insert—

“(1)     The term of office of a mayor is to be four years.

(2)     The first election for the return of a mayor is to take place on the
first day of ordinary elections of councillors of a constituent
council to take place after the end of the period 6 months
beginning with the day on which the order under section 107A
comes into force.

(3)     Subsequent elections for the return of a mayor are to take place
in every fourth year thereafter on the same day as the ordinary
election of councillors of that constituent council.

(4)     But this paragraph has effect subject to any provision made
under paragraph 2.

(5)     
In this paragraph “constituent council” means—

(a)   a county council the whole or any part of whose area is
within the area of the combined authority, or

(b)   a district council whose area is within the area of the
combined authority.”

 

Page 17, line 4,
leave out “the” and insert “a”

Schedule 2

LORD MCKENZIE OF LUTON

LORD BEECHAM

 

Page 19, line 10,
at end insert—

“( )     An order under sub-paragraph (2) must include provision for an
appointment process for any other person who may exercise any
PCC functions of the mayor.”

BARONESS WILLIAMS OF TRAFFORD

 

Page 19, line 21,

leave out “or (e)” and insert “, (e) or (f)”

 

Page 21, line 10,

after “to” insert “the mayor acting on behalf of the”

 

Page 21, line 10,
at end insert “in relation to the calculation of the component of the

council tax requirement relating to the mayor’s PCC functions (see section
107F(2A)(a) above)”

Schedule 3

LORD MCKENZIE OF LUTON

LORD BEECHAM

 

Page 22, line 15,

after “taken,” insert “or under consideration,”

 

Page 22, line 22,
at end insert—

“(d)   to appoint an independent chair of a committee to
review and scrutinise the authority’s financial affairs;

(e)   
to review and assess the authority’s risk management,
internal control and corporate governance
arrangements; and

(f)   to review and assess the economy, efficiency and
effectiveness with which resources have been used in
discharging the authority’s functions.”

 

Page 22, line 28,

after “taken,” insert “or under consideration,”

 

Page 23, line 44,
at end insert—

“( )   Guidance may not be issued under sub-paragraph (9) unless it
has been subject to a public consultation.

( )   Having been subject to a public consultation, guidance under
sub-paragraph (9) must be contained in regulations made by
statutory instrument, and the regulations may not be made
unless a draft of the instrument has been laid before, and
approved by a resolution of, each House of Parliament.”

Schedule 4

BARONESS WILLIAMS OF TRAFFORD

 

Page 25, line 14,
at end insert—

“2A    In section 91 (exercise of local authority functions), in subsection (1),


after “an area” insert “all or part of which is”.”

 

Page 25, line 19,
at end insert—

“(2B)    An order under subsection (1)(c) may include provision for a
function exercisable by a local authority in relation to an area all

or part of which is comprised in the combined authority’s area to
be exercisable by the combined authority in relation to the
combined authority’s area.”

 

Page 25, line 42,
at end insert—

“5A    In section 111 (review by authorities: existing combined authority), in

subsection (3)(a), for “any of sections 104 to 107” substitute “section 104,
105, 106 or 107”.

5B     In section 112 (preparation and publication of scheme: existing

combined authority), in subsection (1), for “sections 104 to 107”

substitute “sections 104, 105, 106 and 107”.”

 

Page 26, line 26,
at end insert—

“Localism Act 2011 (c. 20)

9      The Localism Act 2011 is amended as follows.

10  (1)     Section 15 (power to transfer local public functions to permitted
authorities) is amended as follows.

(2)     
In subsection (1)—

(a)   
in paragraph (a), for “a permitted authority” substitute “an EPB”;

(b)   
in paragraph (b), for “permitted authorities” substitute ““EPBs”.

(3)     Omit subsection (4).

(4)     
In subsections (6) and (7), for “permitted authority” substitute “EPB”.

(5)     
In subsection (8), for “a permitted authority” substitute “an EPB”.

11     
In section 17 (transfer schemes), in subsection (1), for “permitted

authority” substitute “EPB”.

12  (1)     Section 18 (duty to consider proposals for exercise of powers under
sections 15 and 17) is amended as follows.

(2)     
In subsection (1)—

(a)   
for “a permitted authority” substitute “an EPB”;

(b)   
in paragraph (b), for “permitted authority” substitute “EPB”.

(3)     
In subsection (3), in paragraph (a), for “permitted authority” substitute

“EPB”.

13     
In section 20 (interpretation) at the appropriate place insert—


“EPB” means an economic prosperity board established
under section 88 of the Local Democracy, Economic
Development and Construction Act 2009;”.”

Prepared 9th July 2015