Greater London Authority Act 2007

Written submission from the London Councils (GLA 03)

Overview

1. London Councils represents all 32 London boroughs and the City of London. We are committed to fighting for more resources for the Capital and getting the best possible deal for London's 33 councils. We develop policy, lobby government and others, and run a range of services designed to make life better for Londoners.

2. We welcome the Select Committee's Inquiry into the Greater London Authority Act 2007 and are pleased to submit written evidence for consideration.

3. Our general view is that the 2007 Act represents an important step on the road towards greater local decentralisation and partnership between London boroughs and the Mayor. Over the last 12 years the governance of London has developed significantly and recently the London boroughs and the Mayor have developed joint arrangements to tackle issues at the strategic level.

4. In July 2010 we wrote jointly with the Mayor of London and the London Assembly to the Secretary of State for Communities and Local Government proposing a devolution package for London. Subsequently, through robust partnerships such as the Homes for London Board, the London Waste and Recycling Board and the London Crime Reduction Board, we have delivered better results for the public and developed solutions that reach across the Capital.

5. However, London government may need further formal underpinning if we are to secure the powers and financial flexibilities necessary for continued growth and competitiveness.

6. With this in mind our submission offers evidence on the following questions:

1. Planning, infrastructure and growth - we feel that planning and infrastructure investment requires a re-energised and devolved approach to drive growth.

2. The London Waste and Recycling Board - we support the Board and believe there is good evidence of its impact on London's waste management systems and performance.

3. Governance arrangements in London - we feel that the continued development and enhancement of a robust framework for joint action between the Mayor and the boroughs offers the best practical solution to London's challenges.

Introduction

7. In 2001, London had a population of just over 7.1 million people. In the last ten years this has grown by 14 per cent to nearly 8.2 million. Over the next decade London's population is forecast to grow by a further 14 per cent. By 2021 London will be home to nearly 9.2 million people. As a city with a young, diverse population London will see growth in the number of young children unmatched across England. As a city with a global reputation for business, research and culture, London will need to harness the energy and creativity of its residents and leaders if it is to meet emerging challenges from across the globe.

8. The architecture of London governance, like the city itself, continues to develop and evolve. The passage of the GLA Act 1999 redefined London's institutional landscape. The GLA Act 2007, the Localism Act 2011 and the Police Reform and Social Responsibility Act 2011 made further alterations. In each Act the tendency has been to channel powers towards the regional tier, but devolve very little to London's boroughs.

9. The reluctance of national government to devolve powers below the regional tier risks London's ability to grow and meet the demands of governing a global city. This risks frustrating London boroughs who feel increasingly excluded from powers and freedoms available to local authorities outside the Capital.

10. Reflecting on the 2007 Act and the questions raised by this Select Committee Inquiry, we are struck by how rapidly events have outpaced the best intentions of five years ago. The powers conferred by Act have functioned well-enough in their own right, yet were clearly drafted in a less uncertain context.

11. London needs an effective Mayor, a regional tier of government able to provide strategic direction, but an effective Mayor alone is not sufficient. Indeed, with each new challenge the solutions that sustain are invariably the result of London's boroughs and the Mayor working in partnership, often in spite rather than because of London's legislative framework.

12. The joint letter between London Councils, the Mayor and the London Assembly to the Secretary of State for Communities and Local Government in July 2010 (attached as Appendix A) provides wide-ranging evidence of this ambitious partnership and frames much of the commentary set out below. It contained a number of proposals, including: the transfer of the Homes and Communities Agency London to the Greater London Authority, discretion not to produce Mayoral strategies that do not have associated implantation powers; and, a strengthening of the London Waste and Recycling Board.

13. This devolution package built on the 2007 Act at a time when institutions were still developing. Now, three years later, we call for an exploration of how these partnerships can be strengthened and deepened. It may be that national government can support this process in using more formal underpinning to make devolution permanent and lock in the collaborative model we have developed.

Planning, infrastructure and growth

14. In submitting evidence to the Mayor's Vision for 2020, London Councils highlighted boroughs' eagerness to build on their critical role in shaping and developing the social and physical infrastructure of our city to meet the aspirations of our communities. We went on call for:

I. Devolution of power and influence over:

· The commissioning of adult skills training alongside the Mayor and the LEP;

· The commissioning of personalised programmes to tackle worklessness and unemployment.

II. Devolved commissioning powers for boroughs to promote economic growth, including:

· Empowering boroughs to deliver directly on transport infrastructure, to improve connectivity and unlock development sites;

· Flexibilities to maximise borrowing against housing revenue;

· Measures to ensure developers use local labour and suppliers.

III. An expanded role for boroughs in the leadership and coordination of public services in their area:

· Pooling of budgets and responsibilities under local leadership will be key to joining up the multitude of public interventions in an efficient and responsive package to tackle ingrained problems, such as persistent re-offending.

15. The submission also outlined a number of medium-sized infrastructure projects that would help unlock growth across the Capital. We went on to identify a critical shortage in commissioning capacity that slows these projects getting off the ground and would potentially see them grind to a halt if a major project such as a new aviation hub for London were agreed. We also noted that boroughs would welcome an open conversation on future use of the Community Infrastructure Levy [1] (CIL), after Crossrail 1, to avoid crowding out local development opportunities.

16. In parallel to the development of the 2020 vision, which will be published in the coming months, the London Finance Commission, chaired by Professor Tony Travers, is considering the funding issues facing London in detail and is due to report in April. London Councils and London local government generally are strongly represented on the Commission. Without wishing to pre-empt the recommendations of the Commission there is an emerging sense that a clear framework for long term strategic investment would support a more coherent approach to infrastructure planning at all levels.

17. The Mayor's approach to the strategic planning powers conferred by the 2007 Act has broadly recognised the tension between local and citywide priorities. Since the Act's planning powers commenced, six schemes have been called-in for consideration. Of these, five have been discussed at public hearings and in each instance the Mayor has decided that planning permission be granted. While we accept that the exercise of this power has so far been limited we continue to believe that the thresholds for referral of plans to the Mayor should be reviewed.

London Waste and Recycling Board

18. Managing waste in a city such as London is a complex and expensive business. London boroughs are forecast to spend over £800 million in 2012/13 on environmental and regulatory services. Of this, approximately £400 million will be spent on waste management alone. Already the third largest area of local government expenditure, by 2020 London Councils estimates these figures will have grown by almost ten per cent.

19. The London Waste and Recycling Board provides a substantial financial and organisational resource for London boroughs and the Mayor to engage in partnership on these issues. New Board members were appointed in 2012 [2] and there is strong borough representation from across the Capital. The Board stands as an example of London Councils, the London Assembly and the Mayor working together in robust partnership to tackle a critical challenge for London.

20. Since its establishment in August 2008 the Board has committed almost £54 million to a wide range of projects across the Capital. These include: one of the UK's first large scale advanced gasification plants; a plastic reprocessing plant; and, £14m to re-use and recycling initiatives, including a highly successful flats recycling programme which saved over £200,000 through joint procurement. These initiatives are estimated to have diverted 80,000 tonnes from landfill so far.

21. The Board will have helped to create 330 jobs, as well as around 3,000 trainee roles and 1,600 work placements. It has attracted around £226 million of external investment by funding schemes such as London Green Fund, where £18 million has been matched by the London European Regional Development Fund and a further £35 million from the private sector. Planned projects are expected to divert over 465,000 tonnes of waste from landfill each year and displace almost 3 million tonnes of CO2.

22. The London Waste and Recycling Board has become fully embedded as part of London's strategic decision-making and investment architecture. Its role as a broker and co-ordinator of best practice will prove essential in meeting the challenges of the coming years. London Councils recognises the Board's role in driving forward new approaches capable of achieving significant cost savings and providing dedicated support for borough and community infrastructure projects.

London Governance

23. In our publication 'Governing London towards 2016', (attached as Appendix B) we outlined a framework for joint action, within which the Mayor and the boroughs can deliver practical answers to London's challenges:

1. Speaking up for fair resources for London;

2. Acting as a voice for London, ensuring that one-size-fits-all national policies do not disadvantage Londoners;

3. Where we have joint arrangements, using them as real partnerships ;

4. Where we have a problem in common, aligning our resources to maximise the impact;

5. Where real benefits can be obtained through further devolution from the centre, using our proven partnership model.

24. Building on this framework, London boroughs and the current Mayor have put in place a number of partnerships that provide an increasingly substantial part of London's governance architecture.

25. Through the Homes for London Board, the Capital's desperate need for new affordable housing is being tackled through a strategic and shared approach to housing investment decision-making. Similarly, the London Crime Reduction Board provides a forum for the boroughs and the Mayor to agree a co-ordinated approach to crime reduction, local policing and community safety. The London Waste and Recycling Board provides a significant resource for the Mayor and London boroughs to work in partnership. The London Enterprise Panel is driving the creation of jobs and growth as a key influence on transport, housing and inward investment. Furthermore, the developing plans for a London Health Board will provide a valuable new mechanism for joining up political and health sector leadership to tackle the Capital's health challenges.

26. These arrangements shape the delivery of services and investment. Crucially, these partnerships allow different parts of London's governance to mediate their interest to make the case for the City and serve Londoners.

27. As the London Finance Commission proceeds and we move to greater collaboration within the context of a devolution and City Deal agenda, we recognise that this evolving governance framework may need more formal underpinning, so that we can jointly deliver a sustainable approach to effective devolved governance in London.

28. Whilst these joint arrangements have become a feature of London's governance, it is also important that further devolution from the centre is, in each case, thought through carefully in terms of the right spatial level for such devolution. In some cases, it will be at a London wide level and in some others the sort of joint arrangement we have described will be an effective solution. Equally, London boroughs - both individually and in groups - should on their own be able in many cases to enjoy the same sort of devolution as other upper tier councils across the country in order to secure better outcomes for local people.

Conclusion

29. In considering the Greater London Authority Act 2007 London Councils is conscious of how much the Capital has changed and how partnership has emerged as a key ingredient to meeting the strategic challenges posed by this change. In looking backward, we are also minded to look forward, to a decade characterised by increased infrastructure and service demands; demands that will need to be addressed against the backdrop of an increasingly stark fiscal climate.

30. London government is going to need new powers to join up local services and commission programmes that expand the Capital's social and physical infrastructure. It is going to need financial settlements that properly reflect demographic change and the flexibility to work with a streamlined pot for investment across the capital. The 2007 Act may have reflected the issues of the time, but its lasting legacy is to underline the importance of legislation that frees London's leaders to achieve their ambitions and supports sustainable partnerships able to face the future challenges of governing a global city.

February 2013