Council approves additional £1m to set up North Yorkshire combined authority

A committee that focuses on North Yorkshire’s devolution deal has approved an additional £1 million to implement a new authority.

The North Yorkshire Combined Authority, which will elect a mayor in May 2024, will oversee £13 million worth of new homes, green economic growth to achieve a carbon-negative region, and further investment in digital broadband, if its setup is successful.

The combined authority is scheduled to be launched in November this year.

It will include councillors from North Yorkshire Council and City of York Council and make decisions on matters such as economic development and transport.

North Yorkshire has already spent £582,000 on the implementation of the authority, but a further £1 million was granted by the committee on July 24.

Nick Edwards from North Yorkshire Council, speaking on behalf of the chief finance officer for the devolution deal, said: 

“With regards to the request for an additional £1 million, the principles remain to the initial cash flow and that is on the basis that when the combined authority is established and it receives its grant funding that the implementation costs are repaid immediately to the council.

“If for any reason the combined authority does not proceed, the financial risks of the implementation costs rest equally with North Yorkshire and York councils.”

However, Mr Edwards asked the committee to consider the significant returns this investment would take from securing the implementation of the deal.

Mr Edwards said: 

“The combined authority will receive significant funding when it is established – funding which is on top of any specific project funding – from November 1, if that is the setup date, will include funding of around £10 million, and £19.5 million in 2024/25.

“So in a matter of months of the authority going live, there will be funds of circa £30m available to it.”

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These funds are expected to go towards the mayoral capacity fund, the transport capacity fund and the investment fund.

A request to approve an adult education budget request of almost £500,000 was also approved at the meeting.

The estimated cost of delivering the implementation stage of the adult education budget over two years is £975,748.

The bid to the Department of Education is £480,932 (49.29%), requiring a local contribution of £494,816 (50.71%).

Strayside Sunday: Is the £540m Devolution Deal good enough?

Strayside Sunday is our political opinion column. It is written by Paul Baverstock, former Director of Communications for the Conservative Party. 

This week my former colleague Greg Clark, then Director of Policy for the Conservatives, now Secretary of State for the tongue-twisting Levelling Up, Communities and Local Government signed-off and handed down North Yorkshire & York’s much anticipated devolution settlement.  The 32-page document awarded the area £540m over the next 30 years, along with devolved powers to help the region develop the skills, housing, and transport infrastructure it needs.  Whether this represents, as the government claims, “a once-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 area,” remains to be seen.

What we do know is that the money comes with the promise that we’ll get a Combined Authority, likely next year, with an elected Mayor to follow in 2024.  This must be a good thing, with the shining examples of Tees Valley’s Ben Houchen and the West Midland’s Andy Street demonstrating the positive leadership possibilities an elected Mayor can bring.  Both have used the special powers of the office to create special purpose Mayoral Development Corporations to buy land and assets to drive local economic regeneration and employment, to great effect.  Houchen famously returned Teeside Airport to public ownership and, just this week, Street announced Birmingham as the new home for a large portion of the BBC’s production capabilities, testament to investments made in vital property infrastructure. Tracy Brabin, West Yorkshire’s elected Mayor, still relatively new in post, is yet to find her feet.

Whether or not North Yorkshire’s Mayor is a success will rest on strength of personality and imagination. Will they have the vision, communication skills and drive to push the limits of their newfound powers and make the most of them?  Let’s hope so.  They’ll need to be more persuasive than North Yorkshire Council’s representatives who made the bid for devolution.  Last week’s settlement was significantly less than the “ask”.  £750m over 25 years had been requested, versus the £540m over 30 years received.  Net, the new Mayor will have £18m per year to spend on their agenda, rather than the £25m per year hoped for.  The bid also hoped for £47m to redevelop the much-maligned Harrogate Convention Centre.  Much to Harrogate Borough Council Leader Richard Cooper’s disappointment this was turned down flat – with Westminster civil servants giving a “very strong steer” it would not be funded and should not be part of the devolution settlement.  The money for that will now have to be found from other means, with an application to Boris Johnson’s Levelling Up Fund in the works.  The Convention Centre’s future remains uncertain, not least because with the coming change in Conservative Party leadership there is no guarantee that existing spending commitments will hold.

And that’s part of the problem here.  £540m sounds like a big sum but, in truth we can’t be certain it represents new money.  We have little idea how it fits with the existing local government grant and public spending commitments.  What we do know is that it seems certain that tax cuts will be on the government’s agenda following the change of Prime Minister.  That, plus the most ominous macro-economic climate in a generation (recession, soaring inflation and rising interest rates) means that coming downward pressure on public spending seems locked in.  Whoever becomes Mayor of North Yorkshire and York will have their work cut out for them.

The same of course is true for the new Prime Minister.  It now seems likely (if polls are to be believed) that Liz Truss will win comfortably the Tory Party leadership contest and assume office.  Assuming I get a non-hacked voting paper from the Harrogate & Knaresborough Conservative Association I’ll be putting a cross next to Rishi Sunak’s name.  If Liz Truss does win it will be another example of the maxim that “he who wields the dagger never yields the prize”, Sunak having led with Sajid Javed the avalanche of ministerial resignations that finally put paid to Boris Johnson.

For the life of me I can’t see the logic of the aggressive tax cuts that Liz Truss proposes.  To paraphrase Maurice Saatchi’s famous “Labour isn’t working” political advertising slogan from the 1980’s, an argument can be made that “Britain isn’t working.”  The NHS has moved beyond perpetual ‘crisis’ and is now in real trouble, with waiting lists soaring for everything from cancer treatment to mental health treatment, nary an ambulance in sight when you need one and chronic staff shortages.  It takes an age to get a passport and, when you do, the airports are carnage.  The DVLA can’t get a driver’s license organised for love nor money and with a series of national train strikes and 7-hour queues to take a ferry to France, travelling in this country is becoming a Kafka-esque challenge. Planes, trains, and automobiles indeed.  I haven’t even mentioned the disaster that is immigration policy and our handling of the small boats influx on our shores.  Reform may well be part of the answer but setting all these right needs real money and competent grip.  Economists who support Ms. Truss’ plan to tax cut our way to economic growth to fund all this are thin on the ground.  Like North Yorkshire’s coming new elected Mayor, Ms. Truss’ real task is to find imaginative policy solutions to our problems, from skills to housing, from transport to health and then find a way to run them properly.  And that takes public money, gobs of it.

That’s my Strayside Sunday.

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North Yorkshire Combined Authority: What is it and how would it work?

The ball started rolling on a devolution deal worth £2 billion to North Yorkshire this week when the government announced it had opened negotiations with county council officials.

North Yorkshire devolution was included in the levelling up white paper, which included plans for a mayoral combined authority for North Yorkshire and York.

The move will be seismic for the county over the coming years as the face of local government changes with the county council and all seven district councils scrapped, and a single North Yorkshire Council set up.

York, however, will continue to be run separately by its current City of York Council.

The new era for politics in North Yorkshire will also see the county get a combined authority, headed by an elected mayor.

But what is a combined authority and what would it do? The Stray Ferret has looked in detail at the proposal.

What is a combined authority?

A combined authority is a body set up for two or more councils to make joint decisions.

In this case, the upcoming North Yorkshire Council and City of York Council would come together to make decisions on matters such as economic development and transport.

West Yorkshire Combined Authority head offices on Wellington Street, Leeds.

West Yorkshire Combined Authority head offices on Wellington Street, Leeds.

It will be a separate body to North Yorkshire Council and City of York Council.

The closest example of this is West Yorkshire Combined Authority, which recently has led on the £10.9 million Station Gateway scheme, as well as similar schemes in Skipton and Selby.

The combined authority would be headed by a mayor who is directly elected by the public.

In West Yorkshire, Labour and Co-Operative representative Tracy Brabin has been the elected mayor of the county and head of the combined authority since 2021.

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The authority, which has head offices on Wellington Street in Leeds, operates on a committee system and includes elected councillors and council leaders from Kirklees, Bradford, Calderdale, Leeds, Wakefield and York. It has more than 500 staff.

What decisions will it make?

The combined authority’s powers focus mainly on overarching matters that affect more than one place, for example transport, bus franchising and economic development.

Services such as bin collections and highways will remain with the unitary council.

Council bosses in North Yorkshire are hoping to replicate the mayoral combined authority in Tees Valley as an example of what they feel is good practice.

The Tees Valley authority is headed by Conservative mayor, Ben Houchen, and is made up of council leaders from Hartlepool, Middlesbrough, Redcar and Cleveland, Stockton-on-Tees, Darlington and a representative from Tees Valley Local Enterprise Partnership.

Conservative mayor of Tees Valley, Ben Houchen, outside Teeside International Airport. Picture: Tees Valley CA.

Conservative mayor of Tees Valley, Ben Houchen, and Kate Willard from Stobart Group outside Durham Tees Valley Airport following the purchase by the combined authority. Picture: Tees Valley CA.

Unlike West Yorkshire, Tees Valley CA operates on a cabinet system.

Mr Houchen and the council leaders make up the cabinet, which makes decisions on matters including economic development, skills and transport.

In 2019, the combined authority made a major decision to bring Durham Tees Valley Airport back into public ownership by purchasing it for £40 million.

Since then it has set out a 10-year plan for the airport with operator Stobart Group and renamed it Teeside International Airport.

Why do we need a combined authority?

Council leaders in North Yorkshire have been pushing for a devolution deal for many years in order to bring some powers and funding back from Westminster.

As part of the deal, a mayor and a combined authority must be put in place.

North Yorkshire council officials feel the move will help the county be able to make strategic decisions jointly with York.

But Richard Flinton, chief executive of North Yorkshire County Council said that the devolution deal, including the combined authority, would be about more than just funding.

He said:

“What we have seen with other combined authorities is that it’s not necessarily about the devolution deal.

“What we have seen is a strong voice for a single county. This is not just about the deal, it is about constant engagement with government.”

What happens now?

County council officials will now go into negotiations with government over a devolution deal.

As part of those discussions, a timetable set could see the combined authority come into place by next year.

Mr Flinton told a press conference this week that this could also mean that an election could be held for a mayor of North Yorkshire and York by 2024.