Cities and Local Growth Devolution Act
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| Cities and Local Growth Devolution Act | |
|---|---|
| Name | Cities and Local Growth Devolution Act |
| Enacted by | Parliament of the United Kingdom |
| Year | 2016 |
| Citation | 2016 c. ? |
| Territorial extent | England |
| Royal assent | 2016 |
| Status | Amended |
Cities and Local Growth Devolution Act is a United Kingdom statute enacted to facilitate the transfer of specific powers and funding from the Parliament of the United Kingdom to combined local authorities and elected mayors in England. The Act aimed to enable bespoke devolution deals between the Secretary of State for Communities and Local Government and city regions such as Greater Manchester Combined Authority and West Midlands Combined Authority. It was passed amid broader discussions involving figures like Theresa May, George Osborne, and local leaders including Andy Burnham and Sadiq Khan.
Background and Legislative History
The legislative genesis traces to post-2008 recovery debates led by George Osborne during the Conservative–Liberal Democrat coalition period, building on concepts developed in publications from the Local Government Association and think tanks such as the Institute for Fiscal Studies and Centre for Cities. Early pilots included the Greater Manchester devolution deal and the Northern Powerhouse initiative promoted by the Department for Transport and the Department for Communities and Local Government. The Bill was introduced to the House of Commons and scrutinised by select committees including the Communities and Local Government Select Committee and discussed in legislative stages involving peers in the House of Lords such as Baroness Williams of Trafford. Debates referenced precedents like the Localism Act 2011 and the Scotland Act 1998 while engaging stakeholders from Manchester City Council, Liverpool City Region Combined Authority, and the Tees Valley Combined Authority.
Provisions and Powers Conferred
The Act authorises the Secretary of State for Communities and Local Government to make orders conferring specified functions and funding on combined authorities and elected metro mayors. Powers contemplated include elements of transport management transferred from Transport for London analogues, oversight of adult education funding linked to Education and Skills Funding Agency practices, and delegated planning functions similar to those exercised under the Localism Act 2011. It enabled single-pot capital funding arrangements resembling the City Deal structure and allowed for the creation of a directly elected mayoral office analogous to posts held by Mayor of London and Mayor of Greater Manchester. The text interacts with statutes such as the Railways Act 1993 and the Highways Act 1980 where transport devolution was pursued, and references budgetary mechanisms familiar to the Treasury and HM Treasury spending review processes.
Devolution Agreements and Implementation
Following enactment, devolution agreements were negotiated with combined authorities including Greater Manchester Combined Authority, West Midlands Combined Authority, Cambridgeshire and Peterborough Combined Authority, and the Tees Valley Combined Authority. Deals often involved mayors like Andy Street and Ben Houchen and incorporated institutions such as the Mayoral Combined Authority model. Implementation drew on administrative arrangements with bodies like Transport for the North, Network Rail, Department for Education, and UK Government departments. Some agreements mirrored earlier City Deal and Growth Deal frameworks and interacted with regional strategies promoted by entities such as the Northern Powerhouse Partnership and the London Finance Commission.
Impact on Local Governance and Economic Development
The Act reshaped governance in participating regions by consolidating strategic planning, transport, and skills funding under combined authorities led by elected mayors, affecting councils such as Manchester City Council, Birmingham City Council, and Leeds City Council. Economic development outcomes were debated in analyses from the Institute for Fiscal Studies, the Resolution Foundation, and the Joseph Rowntree Foundation. Advocates argued the Act enabled quicker local decision-making comparable to models in Greater Manchester, while critics compared performance to devolved legislatures like the Scottish Parliament and the Welsh Senedd. Investment projects associated with devolved powers included transport schemes linking to High Speed 2, local industrial strategies reflecting Northern Powerhouse goals, and skills initiatives coordinated with the Education and Skills Funding Agency.
Controversies and Criticism
Controversies centred on democratic accountability, the concentration of power in mayoral offices, and unequal geographic coverage. Critics including the Local Government Association and members of the Labour Party raised concerns about over-centralisation in offices like those held by Sadiq Khan and Andy Burnham, and about deals negotiated behind closed doors involving the Cabinet Office. Legal scholars compared the arrangements unfavourably to devolved settlements under the Scotland Act 1998 and questions were raised in litigation referencing administrative law principles adjudicated by the Supreme Court of the United Kingdom. Fiscal critics referenced analyses by the Institute for Fiscal Studies and National Audit Office regarding funding imbalances, while civil society groups like Friends of the Earth and the RSA critiqued environmental and social implications.
Amendment, Repeal and Subsequent Legislation
Since enactment, amendments and related orders have modified scope and implementation through statutory instruments authorised by the Secretary of State for Levelling Up, Housing and Communities. Subsequent policy developments included the Levelling Up White Paper and legislation debated in the House of Commons that sought to expand or reframe devolution, touching on concepts present in the Levelling Up and Regeneration Bill. Some responsibilities were adjusted in light of evolving statutory contexts involving the Local Government Finance Act provisions and spending reviews overseen by the Treasury. Discussions about replacement models cited comparative institutions such as the Greater London Authority and international examples like the German Länder and French régions.