North Yorkshire’s devolution deal: What’s in it and how will it work?

The historic devolution deal struck between North Yorkshire and the government on Monday will bring millions of pounds into the county — but it could have been more.

Signed off by Greg Clark, secretary of state for levelling up, housing and communities, the 32-page document promises £540 million over 30 years.

It will also see North Yorkshire and York join other major counties and cities in getting its own mayor and a combined authority to oversee the funding.

Local leaders have lauded the deal as an opportunity not to be missed, but analysis of the document shows it could have offered more.

Guaranteed funding

In 2020, officials at North Yorkshire County Council started discussions with government over the potential for a devolution deal for the county and City of York Council.

This culminated in a 140-page document being drawn up listing the requests for new powers and funding from Whitehall.

It was formally submitted in January 2021 and included proposals such as a £750 million mayoral funding pot over 25 years and more powers over skills, transport and energy.

The funding pot, known as “gainshare”, is guaranteed annual funding from central government.

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Fast-forward 18 months and the fruits of the negotiations between ministers and council bosses have produced something slightly different.

Instead of the requested £750 million funding pot over 25 years, £540 million over 30 years has been agreed.

The initial proposal tabled by council bosses would have seen £25 million a year come into North Yorkshire and York – instead it will be £18 million.

North Yorkshire County Council's offices in Northallerton.

North Yorkshire County Council’s offices in Northallerton.

However, more power over skills and transport will be devolved.

It will see whoever is elected mayor and the new combined authority have control over the adult education budget and the ability to draw up its own transport strategy.

Control over bus franchising has also been granted to the county and the power to set up Mayoral Development Corporations, which have the power to buy land for housing or employment to regenerate a defined area.

Much of the deal echoes what was given to Tees Valley in 2015, whose Conservative mayor Ben Houchen has since exercised his economic development powers to buy Teesside International Airport and Redcar Steelworks.

Extra funding for homes 

Aside from the £540 million over three decades, funding has also been allocated for specific areas.

For example, ministers have awarded £12.7 million towards building homes on brownfield sites over the first two financial years of its existence.

A further £2.65 million has been allocated specifically for low carbon and affordable housing.

It suggests that ministers were more happy to part with cash on housing schemes under the deal than in other areas.

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The only other area in the deal awarded specific funding was £7 million to “drive green economic growth” towards the ambition of creating a carbon negative county.

However, this cash is subject to a business case being submitted to government.

No Harrogate Convention Centre money

While the deal offers funding for the wider county, much of the detail on specific towns and areas amounts to “commitments to engage” or mentions already announced cash for schemes.

Harrogate itself is mentioned four times in the document. Three of those mentions are for the A59 Kex Gill realignment and Station Gateway projects, which are underway. Ripon, Knaresborough, Pateley Bridge, Boroughbridge and Masham are not mentioned.

The fourth time Harrogate is mentioned is for Harrogate Convention Centre.

As previously reported, funding for a £47 million upgrade of the centre was requested. But although the centre is mentioned in the devolution document, funding was not pledged.

However, the deal is a provisional agreement and it remains to be seen where the funding will go when the mayor and combined authority is established.

‘Very relieved’

Much of the deal is years in the making for those who have sat around the negotiating table with ministers.

Cllr Carl Les, leader of North Yorkshire County Council, said he was relieved to have signed off on the provisional agreement with ministers.

He told the Stray Ferret:

“I’m very relieved that we have got to this point. We have now got to explain it to the public.”

Cllr Carl Les, leader of North Yorkshire County Council.

Cllr Carl Les, leader of North Yorkshire County Council.

A glance at the main points of the deal shows the government willing to part with millions of pounds worth of funding on the condition that a new layer of governance is set up to oversee it.

For the IPPR North think tank, the new money is welcomed and “should be seized”.

However, Rosie Lockwood, head of advocacy at the think tank, pointed out that cuts due to austerity meant North Yorkshire still faced a difficult future.

She said:

“A devolution deal which unlocks funding and transfers powers from Whitehall to North Yorkshire and York is good news for communities across the area. This is an opportunity to be seized.

“But North Yorkshire and York will face challenges as it moves forward, not least because local government has already been eroded by austerity. We can’t forget that the north saw a £413 per person drop in annual council service spending over the austerity decade.”

What happens now?

Despite the secretary of state for levelling up, housing and communities, putting his signature to the deal, it will still require approval from both North Yorkshire County Council and City of York Council.

A public consultation will also be carried out on the devolution deal in the coming months.

From there, the councils can then undertake a governance review to set up the combined authority and mayor, should councillors back the deal.

If all goes ahead, a combined authority for North Yorkshire and York could be in place by autumn next year and a mayor elected in May 2024.

Council leader ‘shares disappointment’ over lack of HCC funding in devolution deal

The leader of North Yorkshire County Council has said he shares disappointment that funding for Harrogate Convention Centre has not being included in a £540 million devolution deal.

Cllr Carl Les said a bid for funding to support a £47 million HCC redevelopment was included in a request to government, but was turned down.

His comments come as Cllr Richard Cooper, leader of Harrogate Borough Council, told the Harrogate Advertiser that while he supported the deal, he felt it “fell short” due to a lack of funding for the facility.

The borough council has since had to draw up a bid to the government’s levelling up fund in an effort to support the project.

Cllr Les told the Stray Ferret that the county council would continue to work with the borough council to secure funding for the facility.

He said:

“We did put a request for the Harrogate Convention Centre in the asks which were submitted to government.

“Harrogate sent officers to present the case, but the message from civil servants was that it should not be included.

“I share Richard’s disappointment, but we were given a clear steer and we are supporting Harrogate in that.”

Cllr Les added that the county council “recognised the importance” of the convention centre.

Historic deal

A historic £540 million devolution deal for North Yorkshire and York was announced by government yesterday.

The deal includes £18 million of guaranteed government cash for 30 years and it will also mean the county gets an elected mayor and combined authority.

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The agreement has been described as “a one-in-a-generation chance to help tackle regional inequalities by not only reducing the North-South divide nationally, but also helping to resolve economic differences that are being felt between urban and rural areas”.

Speaking after signing the deal in York yesterday, chief secretary to the treasury, Simon Clarke said:

“Local leaders are best placed to know what their communities need so I’m delighted that the people of York and North Yorkshire will be able to directly elect a mayor to deliver on their priorities.

“Devolution will benefit people across the region and we are committed to boosting more local areas in the same way as we level up the whole country.”

Opposition councillors raise concern over £540m North Yorkshire devolution deal

Opposition leaders in North Yorkshire have given a mixed reaction to the announcement that a devolution deal has been agreed and have questioned whether the county’s residents will be fairly treated.

With the Tories achieving a narrow majority in May’s elections, opposition councillors say they will hold North Yorkshire County Council’s Conservative administration to account over how the gain-share or extra funding from government is divided between the county and York.

The comments come as a historic 30 year devolution deal was announced by ministers today, which will mean North Yorkshire and York will see an elected Mayor in 2024 with £540 million pounds of government cash.

Leader of the authority’s largest opposition group, the Liberal Democrats and Liberals, Cllr Bryn Griffiths said he had reservations over devolution and the combined authority and mayor that went with it.

He said: 

“The only way to get significant money from the government at the moment it seems is via combined authorities. I don’t think it’s the right way to do things, but it’s left areas without one in between the Devil and the deep blue sea.

“I don’t think mayors are very accountable, but if it gives access to funding it’s a balancing matter between accountability and funding.”

‘Not a great exercise in democracy’

A number of other authority opposition members have similar concerns that devolution has proved to be an intensely political process.

Independent group leader Cllr Stuart Parsons said: 

“It’s worrying in that it’s a political process as that means a change in government in a couple of years’ time could lead to all sorts of problems with it.

“A new government might not want things to work that way, and then the governance rules that appear to be set in place for it would be an absolute farce.”

Cllr Parsons said suggestions that two North Yorkshire and two City of York councillors would form the decision-making body on the combined authority with a mayor would be a blow for democratic representation and democratic decision-making.

He said the councillors on the combined authority would be from a council’s ruling group there would be no “serious political representation on that body”.

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Green Party group coordinator Cllr Andy Brown agreed that devolution “did not appear to be a great exercise in democracy” in the county.

He said:

“Genuine devolution would be a fantastic thing for North Yorkshire. Unfortunately it’s not what is taking place.

“At the moment we have a massive exercise in the centralisation of the district councils into one gigantic council and that council has yet to demonstrate it understands fully democratic processes.

“The critical factor will be not how much power central government delegates to Northallerton, but how much power Northallerton genuinely delegates to its communities.”

Meanwhile, Labour group leader Cllr Steve Shaw Wright said while he believed devolution would benefit North Yorkshire, he was uncertain about the timing.

He said the combination of launching a new unitary authority, starting negotiations with City of York Council and holding mayoral elections was “an awful lot all at once”.

Cllr Shaw Wright said: 

“I know there’s financial benefits, but it’ll not repay what we’ve had cut over the last 10 years.”

He added suggestions that the combined authority would feature just two York and two North Yorkshire councillors was “a recipe for disaster at the worst and deadlock at the best” and that a larger more politically representative decision-making body would be more effective.

Mayor for North Yorkshire agreed in £540m historic devolution deal

An historic agreement has been announced today that sees the biggest shake-up of local government in North Yorkshire and York for more than fifty years.

The 30 year devolution deal agreed by the government will mean North Yorkshire and York will see an elected Mayor in 2024 with £540 million pounds of government cash to focus primarily on skills, housing and transport.

The mayor will take over the role of the Police, Fire and Crime Commissioner and have an annual £18m budget to spend.

The agreement has been described as “a one-in-a-generation chance to help tackle regional inequalities by not only reducing the North-South divide nationally, but also helping to resolve economic differences that are being felt between urban and rural areas”.

The aim is that the mayor and combined authority – which would be made up of North Yorkshire and City of York councillers – will be able to have more control of strategic investment for jobs and skills and infrastructure.

Key points to the deal are:

The structure of the mayor and a combined authority will be similar that of the Tees Valley and West Yorkshire, which have already gone through the devolution process and have elected mayors.

North Yorkshire County Council’s leader, Cllr Carl Les, said:

“The chance to secure a wide range of decision-making powers as well as bringing in millions of pounds of investment for North Yorkshire is a huge opportunity for us all to shape our own future for many years to come.

“It will make a real difference to the hundreds of thousands of people who live and work in North Yorkshire, driving future prosperity and much better opportunities that are so important to everyone.

“Whether it is improving skills and education, bringing in more investment to the region or helping improve transport links and providing much-needed affordable housing, the proposed deal would enable us to take far greater control of our own destinies.

“An elected mayor representing both York and North Yorkshire would be a powerful figure to have a seat at the table for further negotiations with the Government, bringing real and tangible benefits to the region.”

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County council boss set to be appointed chief executive of new North Yorkshire Council

The chief executive of North Yorkshire County Council is set to be appointed as the head of the new unitary authority next month.

Richard Flinton, who has held his current role since 2010, was today named as the preferred candidate to take the helm at North Yorkshire Council.

Mr Flinton, who lives in Ryedale, will be paid up to £197,000 for the role,

The recommendation comes from NYCC’s cross-party chief officer appointments committee, which conducted the selection process.

The final decision will be made by councillors at a full meeting of NYCC on Wednesday, August 17.

The committee chairman, Cllr Carl Les – who is also leader of NYCC and will become leader of the new authority next year – said:

“Our new council will be one of the largest authorities in the country but we are building it around the needs of people, communities and businesses; so it will also be one of the most local.

“The successful candidate for the role of chief executive will be in charge of ensuring that the county’s 600,000 residents, and tens of thousands of businesses, get the best possible service and value for money.

“The person will also manage a revenue budget of around £1.4 billion and an ongoing capital programme of around £350 million while driving the transformation programme to bring public services together in a way that is effective and practical. This programme is estimated to make significant financial savings, which will then be used to help finance frontline services.

“As you would expect for a job this important, the process to select a preferred candidate has been competitive and robust and involved all political parties. It is now for wider councillors to make the final decision when they meet in a few weeks’ time.”

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Mr Flinton, who was born in Scarborough, has worked for NYCC since 1987, initially in trading standards. He rose through the ranks to become corporate director of business and environmental services in 2008, before becoming chief executive two years later.

The county council said the recruitment process for his new role was open and promoted nationally.

He said:

“I am humbled to have been chosen as the preferred candidate for the role of chief executive officer of the new North Yorkshire Council. The move to the new authority represents huge challenges and opportunities, and to be able to play a part in that would be a huge honour.

“There are so many hugely talented people across all of the eight councils which will become one next year, and it would be a real privilege to work with them.”

He will take up the post on April 1, when the new North Yorkshire Council comes into effect.

At that point, the 90 councillors elected in May to NYCC will transfer to the new authority where they will serve the first four-year term before another election is held.

At the same time, North Yorkshire’s seven district councils – including Harrogate Borough Council – will be abolished.

County Council’s ambition for devolution deal on Yorkshire Day

The leader of North Yorkshire County Council has spoken of his hope that the government will agree a devolution deal this Monday on Yorkshire Day.

Councillor Carl Les said while it had been hoped devolution for the county and York would be agreed before the parliamentary summer recess started last week, work was continuing to finalise a deal after almost 20 months of negotiations.

He told a meeting of the authority that the Department for Communities and Local Government had launched a process known as a “write-round”, to get the consent from other ministries, such as the Treasury, and Department of Transport, without having to hold a cabinet meeting.

It is understood if all the government departments are happy, a devolution deal could be announced within days.

Cllr Les said he was hopeful a deal could be reached by August 1.

Cllr Les has repeatedly emphasised the county has no right to devolution and that North Yorkshire and York have had to develop a case for the government giving up some of its powers.

If there is an objection from any ministry it could delay the deal until September.

A meeting of the authority heard concerns over the potential consequences of the government missing the target date.

The concerns follow Michael Gove’s departure as communities secretary prompting fears within local government that devolution might be postponed.

However, local government analysts have reported Mr Gove’s replacement, Greg Clark, is determined to keep to his predecessor’s target of getting nine devolution deals signed before the autumn.

There have also been concerns the deal could be delayed by an unwillingness to ratify major decisions during uncertainty over who will become the next prime minister.

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It is believed the deal for York and North Yorkshire could potentially unlock around £2.4bn of investment over 30 years, with a focus on improving economic prosperity, creating more affordable housing and lead to the area becoming England’s first carbon negative economy.

Key to the asks which were put forward in December 2020 are wishes to take charge of delivering improved digital connectivity and the amount of “gain share” or extra funding from government.Gain share is being viewed as a key part of the devolution deal as it will remain the same flat rate for the next 30 years, whereas the devolvement of powers could continue to be negotiated at a later date.

Map reveals areas which could be served by a Harrogate Town Council

The areas which could pay an extra tax to fund a Harrogate Town Council have been revealed for the first time in a new map.

A consultation on whether to create the new council will be held this summer after the proposal gathered the support of politicians in Harrogate .

Harrogate and Scarborough are the only two areas in North Yorkshire not to be parished.

And although the move has been well supported by councillors, it will be residents who have the final say on whether it should go ahead.

A new map (pictured above) from North Yorkshire County Council has revealed which areas could vote in this poll and ultimately be served by the town council.

These include:

High Harrogate and Kingsley
Valley Gardens and Central Harrogate
Fairfax and Starbeck
Stray, Woodlands and Hookstone
Harlow and St Georges
Bilton Grange and New Park
Bilton and Nidd Gorge
Most of Coppice Valley and Duchy
Parts of Oatlands and Pannal
Parts of Killinghall, Hampsthwaite and Saltergate

It has been argued that creating a town council will help Harrogate keep control of its prized public buildings and some services such as parks and tourism when the existing county and borough councils are abolished next April.

The existing councils will be replaced by a new North Yorkshire Council which could filter down some powers to all town and parish councils in what has been hailed as a “double devolution”.

Those were the words of councillor Carl Les, leader of North Yorkshire County Council, who also previously said more than one town or parish council could be created in Harrogate – if that’s what voters wanted.

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A decision to hold the upcoming consultation was agreed at a meeting of the county council’s executive today when the next steps of the legal process known as a community governance review were set out.

Councillor David Chance, executive member for corporate services, said:

“In the first set of consultations we will consult with the relevant people in the affected areas to gain their views.
“We will then take those views and make recommendations for approval.
“If it was considered appropriate to create town councils, we would then be looking to make such recommendations within a 12-month period.
“And then new town councils could potentially be created in 2024.”

Other services which could come under the control of a Harrogate Town Council include events, markets, play areas, community centres and allotments.

These arrangements are already in place at the likes of Knaresborough Town Council and Ripon City Council which charge £25.27 and £70.77 respectively for their annual parish precepts.

The idea of a Harrogate Town Council has already won the support of members of the outgoing Harrogate Borough Council who made calls for the process to be sped up.

County council leader Carl Les also said he believed Harrogate and Scarborough would both be “well served” by a lower tier of local government.

He previously said:

“I’m a great advocate of parish and town councils.
“That said, it is for the people to decide whether they want them or not.
“I’m very keen that we start the process as soon as possible and we will go to the public in Harrogate and Scarborough at the earliest opportunity.”

North Yorkshire devolution deal announcement ‘imminent’

A devolution deal for North Yorkshire and York looks set to be announced by the government in just over a week.

There were fears recent ministerial resignations and sackings could have derailed the process.

But details of the deal are now expected to be revealed before the summer Parliamentary recess starts on July 21.

It follows almost 20 months of negotiations between North Yorkshire and York council leaders and officers, government ministers and Whitehall officials.

The deal could potentially unlock around £2.4 billion of investment over 30 years.

It would be targeted on improving economic prosperity, creating more affordable housing and lead to the area becoming England’s first carbon negative economy.

Every first and second tier council in the area, except Hambleton, put forward some ‘asks’ to the government in December 2020 about what they’d like in a devolution deal.

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Concerns were raised that following Michael Gove being fired from his role as the Levelling Up, Housing and Communities Secretary by Boris Johnson, it would mean the new minister, Greg Clark, would want to spend time fully digesting the complex deal before signing it off.

Political commentators have highlighted how during his first stint at the Department for Communities Mr Clark negotiated devolution deals and served as minister for decentralisation, but his economic preference was for city-led growth rather than the levelling-up approach focusing on non-metropolitan Britain.

Following news of his appointment and entering his second stint at the department, Clark tweeted that he had a “duty to ensure that the country has a functioning government in the weeks ahead”.

We have a duty to ensure that the country has a functioning government in the weeks ahead. Having been Secretary of State at the Communities department before, I will do my best to provide stability, good governance and accountability to Parliament at this important time.

— Greg Clark (@GregClarkMP) July 7, 2022

When asked if he was confident about a deal remaining on track following Mr Clark’s appointment, North Yorkshire County Council leader Cllr Carl Les said he was optimistic the transfer of power and funding would be in time to form a Mayoral Combined Authority next year, with Mayoral elections in 2024.

He said the negotiations were at a very advanced stage.

Cllr Les said: 

“I do hope this will not derail the negotiations and having worked with Greg Clark before as secretary of state I have every confidence that he will treat this matter with the urgency it requires.

“We are at not only the 11th hour, but at the 59th minute of the 11th hour.”

Cllr Les said he felt the county council and City of York Council had been listened to during the negotiations, which he described as having been “fruitful”.

North Yorkshire Council chief executive to be paid up to £197,000

The chief executive of the new North Yorkshire Council will be paid a maximum salary of £197,000, it has been revealed.

The new council, which will employ more than 10,000 staff, will come into existence on April 1 next year.

Seven district councils, including Harrogate Borough Council, will be abolished, along with North Yorkshire County Council.

The chief executive recruitment process will be overseen by a cross-party chief officer appointment and disciplinary committee, which met today to consider the salary as well as the recruitment process and job description.

One of the committee’s roles will be to decide whether to appoint an executive search agent, at an anticipated cost of £30,000, to help the process.

A report on the recruitment process to councillors at North Yorkshire County Council said the salary package had been benchmarked against similar public sector roles nationally. The report adds:

“The sample data shows the pay for unitary councils of a similar size to North Yorkshire falls within a salary range of £188,000 to £216,000 per annum.

“However, the proposed salary limit for the new chief executive is £197,000.

“Set against the current combined packages for the eight chief executives of North Yorkshire councils, this would deliver an annual saving in excess of £1 million.”

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£30m saving a year

Ending the two-tier system of local government in North Yorkshire is expected to save about £30m a year in total.

Carl Les

County council leader Carl Les, who is chairing the chief officer appointment and disciplinary committee, said:

“Our new council will be one of the largest local authorities nationally, providing essential services to more than 600,000 people.

“The chief executive will need to manage a revenue budget of around £1.4 billion and the new council will have an ongoing capital programme of around £350 million.

“In addition to the vast array of council services and functions, this job also includes heading up the council’s commercial operations at a critical time.

The report to councillors includes details of the current salaries of council leaders in North Yorkshire. It can be seen below.

council chief executive salaries

 

Decision on Harrogate town council could take two years

A decision on whether to create a Harrogate town council is unlikely to be made until at least 2024, a meeting heard last night.

Wallace Sampson, chief executive of Harrogate Borough Council, outlined the lengthy legal process to members of Harrogate Civic Society.

Mr Sampson said North Yorkshire Council, which comes into existence on April 1 next year, would have to undertake a community governance review before any changes to Harrogate’s governance can take place.

This would involve two stages of consultation, likely to take place next year, followed by a final recommendation on whether to approve a town council.

If approved, a legal order would be made, followed by other processes before implementation.

Harrogate civic society meeting

Last night’s meeting.

Speaking at last night’s packed meeting, at which he and Councillor Graham Swift, deputy leader of Harrogate Borough Council, discussed local government reorganisation and devolution, Mr Sampson said:

“It’s really difficult to say how long that process will take but our best guess is 15 months to two years. If it happened by 2024 that would be a good timeframe.”

Mr Sampson also said elections for a mayor for the combined North Yorkshire and York regions would “probably” take place in 2024.

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Last night’s meeting discussed the implications of the momentous changes brought about by North Yorkshire devolution and local government reorganisation.

Harrogate Borough Council and six other district councils, along with North Yorkshire County Council, will be abolished next year when the new North Yorkshire Council comes into being on April 1.

8,000 council staff

Eight thousand staff will be brought together into what will be one of the largest councils in the UK, in a move estimated to save about £30m a year.

The loss of Harrogate Borough Council has led to concerns that Harrogate may lack a political voice after the changes, with most key decisions set to be made by North Yorkshire Council in Northallerton.

Last month Pat Marsh, the Liberal Democrat leader for Harrogate and Knaresborough, called for the process to create a Harrogate town council to begin “as soon as possible, within the next couple of months” but this seems unlikely to happen.

Philip Broadbank, the Liberal Democrat councillor for Harrogate Starbeck on North Yorkshire County Council, attended last night’s meeting and said afterwards the party would continue to push for the process “to be done as quickly as possible” but he accepted it would take time.

Cllr Swift told the meeting that Harrogate Borough Council’s civic centre at Knapping Mount “won’t be a white elephant” after the authority is abolished and would continue to be used by staff employed by North Yorkshire Council. He said:

“It’s going to continue to save you £1m a year forever.”