Greater London Authority Act 2007

Written submission from the Department for Communities and Local Government (GLA 00)

Thank you for your letter of 20 December regarding the Committee's decision to carry out post-legislative scrutiny of the Greater London Authority Act 2007. I am pleased to hear that you found the Department's memorandum useful.

You requested the Government's views on the financial impact of the 2007 Act, specifically:

· How much did the Act cost to implement?

· What are the estimated costs of its operation?

· How do these compare to any impact assessment made at the time the legislation was passed?

When considering the Greater London Authority 2007 Act, it is important to view it in the context of much greater change and devolution that both preceded and succeeded it. You will be aware that the GLA 1999 Act was a far more significant Act that created the current system of London governance in its entirety. The 2011 Localism Act also made significant changes to the responsibilities of the GLA, that went far beyond the 2007 Act, including the devolution of responsibility for housing, economic development and Olympic Legacy.

In addition to the cost associated with the passage of the Bill through Parliament, the GLA Act 2007 only had marginal resource implications for the GLA. In almost all cases, the new responsibilities were subsumed into existing work programmes and resources; for example in the areas of planning, housing and skills & employment only marginal increases were made to staffing levels and budgets.

The Government provided additional, and distinct, grant funding to the London Waste and Recycling Board (LWARB). The Department of Food and Rural Affairs (Defra) confirmed that LWARB would receive El8million for the Spending Review period (2011-15). This E18million was added to £6.3million which remained available from the previous funding round, plus an estimated £2million of loan income coming in from previously funded projects. This brings the total available funds over 2011-15 to £26.3million. In terms of the benefits of the Waste and Recycling Board, which you raise in your broader call for evidence, it has heavily invested in infrastructure projects designed to deliver significant landfill diversion, boost recycling and generate renewable energy from the reprocessing of waste. The Board has also provided opportunities for boroughs to act collectively, for example, enabling joint procurement.

Similarly, the governance reforms brought in through the Act did not place additional burdens on the UK public purse as they did not require intensive staffing resources or substantial programme budgets; for example in the areas of the Assembly's own budget, board appointments and new statutory strategies the GLA modified existing processes and initiatives to ensure that it complied

With the Act in an efficient and effective manner. This was anticipated in the Regulatory Impact Assessment of the GLA Bill which concluded that the changes introduced through this act were minor and involved minimal cost.

It is worth noting that the Greater London Authority Act 2007 did not establish the London Skills and Employment Board, which was established by the Further Education and Training Act 2007. The London Housing Board, which is also mentioned in the call for evidence, was also not established through the GLA Act 2007, nor is it a statutory body.

February 2013