House of Commons - Explanatory Note

Local Democracy, Economic Development And Construction Bill [HL] - continued	House of Commons

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PART 5: REGIONAL STRATEGY

Clause 67 - Regional Strategy

157. This clause provides for a regional strategy in each region other than London. A regional strategy must set out policies in relation to sustainable economic growth, development and the use of land within the region and can include different policies for different areas within the region.

158. The regional strategy is to include policies to contribute to the mitigation of, and adaptation to, climate change.

159. The regional strategy will replace the existing regional spatial strategy for the region, which sets out the Secretary of State’s policies in relation to the development and use of land within the region, and the regional economic strategy for the region, which is the strategy produced by the regional development agency for the region relating to its purposes. These include the furtherance of economic development and regeneration of the region, the promotion of employment, business efficiency and investment, and contribution to sustainable development.

160. On commencement of this clause, the existing regional spatial strategy and the existing regional economic strategy for an area will become the regional strategy.

Clause 68 - Leaders’ Boards

161. This clause provides for participating authorities to set up “Leaders’ Boards” for the purposes of this Part of the Bill. The Leaders’ Board is a means to enable local authorities to act collectively and decisively at regional level. They will enable local government representation at regional level. District and county councils and (where relevant) National Park authorities and the Broads Authority must make and consult on a scheme for establishing and operating a Leaders’ Board. The participating authorities must submit the scheme to the Secretary of State for approval before establishing the body in accordance with the approved scheme.

162. The clause gives the Secretary of State the power to fund the Leaders’ Board or a participating authority in respect of that Board. It also gives the Secretary of State power to withdraw approval for the Leaders’ Board where this is not operating effectively. The clause also requires the Secretary of State to make regulations covering access to information requirements in relation to Leaders’ Boards.

Clause 69 - Responsible regional authorities

163. This clause provides that the regional development agency (RDA) and local authorities’ Leaders’ Board for the region, are, jointly, the “responsible regional authorities” referred to throughout the remainder of this part of the Bill. If there is no Leaders’ Board, the RDA will act alone.

Clause 70 - Sustainable development

164. This clause requires the bodies responsible for regional strategy to exercise their functions with the objective of contributing to the achievement of sustainable development and having regard to the desirability of achieving good design.

Clause 71 - Review and revision by responsible regional authorities

165. This clause gives the responsible regional authorities a duty to keep the regional strategy and relevant matters under review and explains when a draft revision is to be prepared either of part or the whole of the strategy.

Clause 72 - Community involvement

166. This clause requires the responsible regional authorities to prepare, publish and comply with a statement setting out their policies for involving interested persons when preparing a draft revision of a regional strategy.

Clause 73 - Examination in public

167. The clause provides for the responsible regional authorities to arrange for an examination in public into the draft revision to be held by a person appointed by the Secretary of State. If the responsible regional authorities decide not to arrange for such an examination, the Secretary of State has the power to do so and to appoint a person to hold it. There is no automatic right for a person to be heard at an examination in public. The person holding the examination in public must report to the responsible regional authorities and send a copy to the Secretary of State.

Clause 74 - Matters to be taken into account in revision

168. This clause sets out the matters the responsible regional authorities must take into account when preparing a revision. Along with the draft revision they must prepare, publish and submit a sustainability appraisal report of the draft revision.

Clause 75 - Approval of revision by Secretary of State

169. Once the responsible regional authorities have prepared and published a draft revision of the regional strategy and the sustainability appraisal report, this clause requires them to submit these to the Secretary of State. The Secretary of State can then choose, subject to consultation, either to approve the draft revision as it stands or to modify it before approving it. In deciding whether or not to make modifications, the Secretary of State must have regard to any examination in public report and any representations made either to the responsible regional authorities or to the Secretary of State. Once the strategy has been approved, the responsible regional authorities are required to publish it.

Clause 76 - Reserve powers of Secretary of State

170. This clause sets out the Secretary of State’s reserve power to revise a regional strategy in whole or in part, where the responsible regional authorities fail to do so at the time specified in regulations or directions. It also sets out the Secretary of State’s reserve power to revoke a regional strategy where the Secretary of State thinks it, necessary or, expedient to do so.

Clause 77 - Revision: supplementary

171. Clause 74 sets out the Secretary of State’s power to make regulations for procedural matters in connection with revisions of regional strategies. It also makes a saving provision for any steps already carried out in relation to a revision of an existing regional spatial or economic strategy at the time that this Part of the Bill is commenced.

Clause 78 - Implementation

172. This clause imposes duties on the responsible regional authorities to implement and monitor the regional strategy. In particular, they must publish and keep up to date an implementation plan and must make an annual report.

Clause 79 - Regional strategy as part of the development plan

173. The regional strategy will be part of the statutory development plan for an area (and applications for planning permission must be determined in accordance with the development plan unless material considerations indicate otherwise - see section 38 of the Planning and Compulsory Purchase Act 2004).

174. Until the strategy is revised the statutory development plan for an area will only consist of the policies that were previously in the regional spatial strategy.

Clause 80 - Duties of regional development agencies

175. This clause requires regional development agencies to have regard to the regional strategy in exercising their functions.

Clause 81 - Guidance and directions

176. This clause gives the Secretary of State power to give guidance and directions in relation to the exercise of functions under this Part of the Bill.

PART 6: ECONOMIC PROSPERITY BOARDS

Clause 85 - EPBs and their areas

177. Subsection (1) provides that the Secretary of State can make an order establishing an Economic Prosperity Board (“EPB”) for an area. An EPB will have functions relating to the economic development and regeneration of its area.

178. Subsections (2) to (6) specify the conditions that need to be met for an area to be capable of designation as an EPB’s area.

179. Subsection (2) specifies that the area must consist of the whole of two or more local government areas in England.

180. Subsections (3) and (4) stipulate that the area must be made up of local government areas that have contiguous boundaries. It will not be possible for the area of an EPB to completely surround an area which does not form part of it, nor for any area which does form part of it to have no common boundaries with any part of the rest of the area.

181. Subsection (5) stipulates that it is not possible for any local government area to be part of more than one area of an EPB, or part of an EPB’s area at the same time as being part of the area of a combined authority (see clause 100).

182. Subsection (6) provides that each local government area that forms part of the area of an EPB must have been included in a scheme prepared and published under clause 95.

183. Subsection (7) states that a local government area for this Part means the area of a county council or a district council. It does not therefore include Greater London or the Isles of Scilly.

184. Subsection (8) requires an order under this clause to specify the name that the EPB will be known by.

Clause 86 - Constitution

185. This clause allows the Secretary of State to make an order about the constitutional arrangements of an EPB.

186. Subsection (1) sets out what those arrangements are. An order could cover the membership of an EPB, the voting powers of members of the EPB, and the executive arrangements of the EPB. (Executive arrangements are arrangements for an EPB to set up an executive to make specific decisions, especially the day to day decisions, on its behalf. An executive would be expected to be a smaller and more stream-lined body than the EPB itself. Local authorities are required to operate executive arrangements).

187. Subsection (2) allows the order to make provision about the number of members of the EPB and how they are to be appointed. It also permits details of the remuneration of, and pensions or allowances payable to, members of the EPB to be included in such an order.

188. Subsection (3) states that the provision which may be made about the voting powers of each member includes provision about the different weight to be given to the vote of each member.

189. Subsection (4) explains what is meant by “executive arrangements” for the EPB, for instance the establishment of an executive and the arrangements by which that executive can exercise the powers of the EPB.

190. Subsection (5) provides that an order cannot provide that anyone other than the EPB has responsibility for agreeing its budget, so this function cannot be delegated to an executive of the EPB.

Clause 87 - Constitution: membership and voting

191. This clause sets out the provision which must be included in an order made under clause 86 that deals with the number and appointment of members of an EPB. The order must provide that a majority of the EPB’s members are elected members of the local authorities for the EPB’s area.

192. Subsection (5) requires that the order must state that EPB members who are not elected members of its constituent local authorities will be non-voting members.

193. Subsection (6) allows for voting members of an EPB to resolve that provision made in accordance with subsection (5) does not apply, so that the voting members can decide to allow the members who are not elected members of its constituent local authorities to vote.

Clause 88 - Exercise of local authority functions

194. Subsection (1) allows the Secretary of State to make an order that provides for functions of a county council or district council to be exercisable by the EPB. The functions must be exercisable by the council in relation to an area within the EPB’s area.

195. This power applies only if the Secretary of State thinks it appropriate for the EPB to exercise the functions in question.

196. Subsection (3) provides that an order may specify that the function be exercisable generally, or subject to conditions or limitations. Subsection (4) allows an order to make provision for functions to be exercisable by the EPB instead of the local authority, or concurrently with the local authority.

197. Subsection (5) provides that an EPB must perform functions that are exercisable by the EPB with a view to promoting economic development and regeneration in its area.

Clause 89 - Funding

198. This clause allows the Secretary of State to make an order that sets out how the EPB will be funded.

199. Subsection (1) enables the Secretary of State to make provision for the costs of an EPB to be met by its constituent councils and about the basis on which the amount payable by each constituent council is to be determined.

Clause 90 - Accounts

200. This clause requires that an EPB keeps a general fund whereby all receipts of the EPB shall be carried to that fund and all liabilities falling to be discharged by the EPB shall be discharged out of that fund. Accounts shall be kept of receipts carried to and payments made out of the general fund.

Clause 91 - Change of name

201. This clause provides that an existing EPB can pass a resolution to change its name. Subsections (2), (3) and (4) set out conditions which must be followed in passing that resolution. The EPB must notify the Secretary of State that it has changed its name and must publish notice of the change. The Secretary of State can direct the EPB as to the manner of publication.

Clause 92 - Changes to boundaries of an EPB’s area

202. This clause allows the Secretary of State to make an order changing the boundary of an existing EPB’s area. Such an order could either add to or take away the whole of the area administered by a county council or district council.

203. Subsection (2) reflects the conditions in subsections (2), (3), (4) and (5) in clause 85, so that the revised area would have to meet the same conditions as have to be met for the initial designation of an area of an EPB.

204. An order changing the boundary of an EPB’s area cannot be made unless each of the councils in subsection (3) have agreed to the boundary change.

Clause 93 - Dissolution of an EPB’s area

205. This clause allows the Secretary of State to make an order to dissolve an EPB’s area and abolish the EPB.

206. An order dissolving an EPB cannot be made unless a majority of the councils whose territory is comprised in that EPB’s area have agreed to the dissolution. This applies to county councils and unitary district councils, but not district councils in a county council area.

Clause 94 - Review by authorities: new EPB

207. Subsection (1) provides that any two or more authorities referred to in subsection (2) may review the effectiveness and efficiency of arrangements to promote economic development and regeneration within the geographical area covered by the review. Where a review is conducted by the county council, the review area must include the whole of any one or more of the districts within the county or, if there are no such areas, the whole area of the county council. Where it is conducted by the council for a district, the review area must include that district.

208. Subsection (5) enables a review area to include counties or districts the councils for which are not conducting the review. There is no compulsion on the councils of those areas included in the review under subsection (5) to then be part of a clause 95 scheme, but if the conclusion of the review is to establish an EPB they can be included in the scheme if they agree to be included.

Clause 95 - Preparation and publication of scheme: new EPB

209. This clause stipulates that if two or more of the councils that have conducted a clause 94 review conclude that the establishment of an EPB for an area would be likely to improve the exercise of statutory functions relating to economic development and regeneration and economic conditions within the area, then they have the power to prepare and publish a scheme for the establishment of an EPB for the area.

210. Subsection (3) provides that the area of the proposed EPB must consist of all or part of the area covered by the review, may include one or more other local government areas, and must meet the conditions in subsections (2), (3), and (4) in clause 85.

211. Subsection (4) prevents a local government area from being included in a scheme unless each appropriate authority for that area (defined in subsection (5)) has either participated in the preparation of the scheme or consented to the inclusion of the local government area in the scheme.

Clause 96 - Requirements in connection with establishment of EPB

212. This clause specifies that the Secretary of State may make an order establishing an EPB for an area if, having had regard to a scheme prepared and published under clause 95, the Secretary of State considers that the establishment of an EPB for an area is likely to improve both the exercise of statutory functions relating to economic development and regeneration in the area and the economic conditions in the area.

213. Subsection (2) requires the Secretary of State to consult each of the local authorities for the area which is proposed to be included in the EPB’s area and any other persons the Secretary of State considers appropriate before making the order.

214. Subsection (4) requires the Secretary of State to have regard to the need to reflect the identities and interests of local communities and to secure effective and convenient local government in making the order.

Clause 97 - Review by authorities: existing arrangements

215. Clause 97 allows one or more of the authorities under subsection (2) - an existing EPB, a county council whose area or part of whose area is within an existing or proposed area of an EPB, and a district council whose area is within an existing or proposed area of an EPB — to review an “EPB matter”.

216. An EPB matter is, in relation to an existing EPB, any matter in respect of which the Secretary of State has power to make an order under clauses 86, 88, 89, 92 and 93 (relating to the constitutional arrangements, functions, funding, boundaries and dissolution of the EPB) and also includes any matter concerning the EPB that the EPB itself can decide.

217. The review must relate to one or more existing areas or proposed areas of an EPB.

Clause 98 - Preparation and publication of scheme: existing EPB

218. If one or more of the authorities who have conducted a clause 97 review conclude that the exercise of economic development and regeneration functions, or economic conditions, in an existing or proposed area of an EPB would be likely to be improved by the making of an order under any one or more of clauses 86, 88, 89, 92 and 93 (relating to the constitutional arrangements, functions, funding, boundaries and dissolution of the EPB), then those authorities have the power to prepare and publish a scheme proposing how this should be done.

Clause 99 - Requirements in connection with changes to existing EPB arrangements

219. This clause sets out the requirements applying to the Secretary of State’s power to make orders under clauses 86, 88, 89, 92 and 93 (relating to the constitutional arrangements, functions, funding, boundaries and dissolution of the EPB) in relation to an existing EPB.

220. Specifically, an order can be made in relation to an area if the Secretary of State considers that it is likely to improve statutory functions relating to economic development and regeneration in the area, or the economic conditions in that area. Before making the order the Secretary of State must consult such of the bodies specified in clause 97(2) and such other persons as the Secretary of State considers appropriate. The Secretary of State must also have regard to the need to reflect the identities and interests of local communities and to secure effective and convenient local government.

Clause 100 - Combined authorities and their areas

221. This clause provides that the Secretary of State can make an order establishing a combined authority for an area which meets conditions specified in subsections (2) to (6). A combined authority will have functions relating to economic development and regeneration and transport.

222. Subsection (2) specifies that a combined authority’s area must consist of the whole of two or more local government areas in England.

223. Subsections (3) and (4) stipulate that a combined authority’s area must be made up of local government areas that have contiguous boundaries. It will not be possible for a combined authority’s area to completely surround an area which does not form part of it, nor for any area which does form part of it to have no common boundaries with any part of the rest of the area.

224. Subsection (5) stipulates that no part of the area may form part of another combined authority’s area, the area of an EPB or an integrated transport area.

225. Subsection (6) provides that each local government area that forms part of the combined authority’s area must have been included in a scheme prepared and published under clause 106.

226. Subsection (7) requires an order under this clause to specify the name that the combined authority will be known by.

Clause 101 - Constitution and functions: transport

227. The clause allows the Secretary of State to make an order about the constitutional arrangements and functions of an individual combined authority.

228. The clause enables the order to include any of the specified provisions in the Local Transport Act 2008 that may be made for an Integrated Transport Authority (ITA) in relation to constitutional arrangements (including provision about membership), delegation of local authority and Secretary of State functions, and a conferral of a power to direct.

229. Subsection (4) provides that the provision in the Local Transport Act 2008 relating to a change in name applies to a combined authority in the same way as it applies to an ITA.

230. Subsections (5) and (6) enable the Secretary of State by order to transfer any function of an ITA to a combined authority.

231. Subsection (7) enables the Secretary of State by order to provide for Public Transport Executive (PTE) functions to be exercisable by a combined authority, or the executive body of a combined authority.

232. Subsection (8) enables an order under subsection (7) to include any functions that have been conferred on an ITA by any enactment and relate to the functions of a PTE.

Clause 102 - Constitution and functions: economic development and regeneration

233. Subsection (1) enables the Secretary of State to make in relation to a combined authority any provision that may be made in relation to an EPB under clause 88.

234. Subsection (2) provides that clause 88(5), the duty to perform functions with a view to promoting economic development and regeneration, applies to the exercise of functions by a combined authority that are conferred on it by virtue of clause 102(1).

235. Subsections (3) and (4) allow the Secretary of State by order to make in relation to a combined authority any provision that may be made in relation to an EPB with regards to funding. The order may only make provision in relation to the costs of a combined authority that are reasonably attributable to the exercise of its functions relating to economic development and regeneration.

Clause 103 - Changes to boundaries of a combined authority’s area

236. This clause allows the Secretary of State to make an order changing the boundary of the area of an existing combined authority. Such an order could either add or take away from a combined authority’s area the whole of the area administered by a county council or district council.

237. Subsection (2) provides that an order may be made if the new area meets the conditions in subsections (2), (3), (4) and (5) in clause 100 and if each local authority specified under subsection (3) consents to the making of the order.

238. Subsections (4) to (7) require the order to designate one or more authorities as local transport authorities, to take over the transport functions for any areas removed from the combined authority’s area. The requirement does not apply to those areas that become part of an integrated transport area of an Integrated Transport Authority.

Clause 104 - Dissolution of a combined authority’s area

239. This clause allows the Secretary of State to make an order to dissolve a combined authority’s area and abolish its combined authority.

240. An order dissolving a combined authority’s area cannot be made unless a majority of the councils whose territory is partly or wholly within the combined authority’s area have agreed to the dissolution. This applies to county councils and unitary district councils, but not district councils in a county council area.

241. Subsections (4) to (7) require the order to designate one or more authorities as local transport authorities to take over the transport functions for the former area of the combined authority. The requirement does not apply to those areas that become part of an integrated transport area of an Integrated Transport Authority.

Clause 105 - Review by authorities: new combined authority

242. This clause provides that any two or more authorities of the types referred to in subsection (2) may review the effectiveness and efficiency of transport, and of the arrangements to promote economic development and regeneration, within the geographical area covered by the review. Where a review is conducted by a county council the review area must include the areas of one or more of the districts within the county or, where the county is a unitary authority, the area of the county council. Where it is conducted by a district council the review area must cover the area of the district council. The review can also be undertaken by an EPB or ITA but must include one or more local government areas within their existing area.

243. Subsection (7) enables a review area to include counties or districts the councils for which are not conducting the review. There is no compulsion on the councils of those areas included in the review area by virtue of subsection (7) to be part of a clause 106 scheme but, if the conclusion of the review is to establish a combined authority and they agree to be included, they can be included in the scheme.

Clause 106 - Preparation and publication of scheme: new combined authority

244. If two or more of the authorities who have conducted a clause 105 review conclude that the establishment of a combined authority for an area would be likely to improve the exercise of statutory functions relating to transport and economic development and regeneration, the effectiveness and efficiency of transport in the area, and the economic conditions in the area, the authorities may prepare and publish a scheme for the establishment of a combined authority for the scheme area.

245. Subsection (3) provides that the scheme area must consist of or include the whole or any part of the review area, may include one or more other local government areas and must meet conditions set out in clause 100(2) to (4).

246. Subsection (4) ensures that the scheme area will only include the local government areas of authorities which participate in the preparation of the scheme or consent to their inclusion in the scheme area.

247. Subsection (5) identifies the authorities who must participate in, or consent to the inclusion of their area in, the scheme.

Clause 107 - Requirements in connection with establishment of combined authority

248. This clause specifies that the Secretary of State may make an order establishing a combined authority for an area if, having regard to the prepared and published scheme, the Secretary of State considers that the establishment of a combined authority is likely to improve the exercise of statutory functions relating to transport and the effectiveness and efficiency of transport in the area as well as the exercise of statutory economic development and regeneration functions in the area and the economic conditions in the area.

249. Subsections (2) and (3) require the Secretary of State to consult each of the local authorities, any Integrated Transport Authority and any EPB for an area which, or part of which, is included within the area of the proposed combined authority, and any other persons the Secretary of State considers appropriate before making the order.

250. Subsection (4) requires the Secretary of State to have regard to the need to reflect the identities and interests of local communities and to secure effective and convenient local government in making the order.

Clause 108 - Review by authorities: existing combined authority

251. Clause 108 allows one or more of the authorities under subsection (2) — an existing combined authority, a county council whose area or part of whose area is within an existing or proposed area of a combined authority, a district council whose area is within an existing or proposed area of a combined authority — to review a “combined matter”.

252. A combined matter is, in relation to an existing combined authority, any matter in respect of which the Secretary of State has power to make an order under clauses 101, 102, 103 and 104 (relating to the constitutional arrangements, functions, funding, boundaries and dissolution of the combined authority) and also includes any matter concerning the combined authority that the combined authority itself can decide.

253. The review must relate to one or more existing areas or proposed areas of a combined authority.

Clause 109 - Preparation and publication of scheme: existing combined authority

254. Clause 109 enables authorities to prepare a scheme if one or more of the authorities who have conducted a clause 108 review conclude that the exercise of statutory transport or economic development and regeneration functions, the effectiveness and efficiency of transport, or the economic conditions in an existing or proposed area of a combined authority would be likely to be improved by the making of an order under any one or more of clauses 101, 102, 103 and 104 (relating to the constitutional arrangements, functions, funding, boundaries and dissolution of the combined authority).

Prepared: 1 May 2009