Agenda item

Report of Head of Transformation

Purpose of Report

The purpose of this report is to update the Executive on progress in relation to the development of a devolution deal between the Oxfordshire councils, the former Government ministers and the new Government ministers, and the associated study into options for the potential reform of local government within Oxfordshire, conducted by PricewaterhouseCoopers (PwC).

Recommendations

The meeting is recommended to:

1.1.        receive the independent study of PricewaterhouseCoopers (PwC) into options for local government reform in Oxfordshire, including the proposition of the district and city council leaders’ in respect of their preferred model arising from that study.

1.2       note that following discussions with the Department of Communities and Local Government, the leaders of the district, city and county councils have agreed to focus on identifying areas for collaborative working and the reshaping of a devolution deal that does not incorporate proposals for the reform of local government within Oxfordshire.

Resolved

(1)          That the independent study of PricewaterhouseCoopers (PwC) into options for local government reform in Oxfordshire, including the proposition of the district and city council leaders’ in respect of their preferred model arising from that study be received.

(2)          That it be noted that following discussions with the Department of Communities and Local Government, the leaders of the district and city councils have agreed to focus on identifying areas for collaborative working and the reshaping of a devolution deal.

The Head of Transformation submitted a report to update the Executive on progress in relation to the development of a devolution deal between the Oxfordshire councils, the former Government ministers and the new Government ministers, and the associated study into options for the potential reform of local government within Oxfordshire, conducted by PricewaterhouseCoopers (PwC).

At the discretion of the Chairman, County Councillor Lawrie Stratford addressed Executive on behalf of the Leader of Oxfordshire County Council.

Resolved

(1)          That the independent study of PricewaterhouseCoopers (PwC) into options for local government reform in Oxfordshire, including the proposition of the district and city council leaders’ in respect of their preferred model arising from that study be received.

(2)          That it be noted that following discussions with the Department of Communities and Local Government, the leaders of the district and city councils have agreed to focus on identifying areas for collaborative working and the reshaping of a devolution deal.

Reasons

As a consequence of the recent changes in Government, including the appointment of a new Prime Minister and a new Secretary of State for Communities and Local Government it has been made clear that local authorities should expect to see changes to Government priorities in the short term, including specifically in relation to devolution deals, local government reform and other areas of policy. DCLG officials have also confirmed that the focus and priorities of the Government will become clearer when the Autumn Statement is announced in/around December 2016, and through changes to business rates retention policy, which will be introduced through a new Bill, probably in January 2017.

In the meantime DCLG has made clear that the Government will not agree to any proposals for local government reform where those proposals do not have the agreement of the areas.

The leaders of the district and city councils have agreed that they will now focus on identifying areas for collaborative working and the reshaping of a devolution deal with the new Government. Consequently, it is not intended to seek decisions on the respective studies of the two independent consultants’, PwC and Grant Thornton, beyond formally receiving them. Discussions between the district and city councils will continue to take place over the forthcoming weeks with a view to achieving an acceptable devolution deal proposal.

Alternative options

Option 1:

To proceed with stakeholder consultation in respect of the district and city council leaders’ preferred model for a new local government structure within Oxfordshire.

This is rejected due to the advice given by DCLG that the Government and new Secretary of State for Communities and Local Government will not accept proposals for local government reform or indeed a devolution deal without the agreement of the areas, and wide support amongst key stakeholders.

To undertake stakeholder consultation on the district and city council leaders preferred model or indeed any other potential new structural model at this stage would risk wasting public funds when it is clear that the study undertaken by Grant Thornton, the county council consultants, has concluded that a county based unitary authority would be the strongest model for local government in Oxfordshire.

The county council is expected to formally receive the Grant Thornton study on 13 September (Full Council) and 20 September (Cabinet) 2016; therefore the content of their report can still only be regarded as representing the views of Grant Thornton. At this stage it is more appropriate that the focus should be upon reshaping a devolution deal and identifying areas for positive collaborative working, as agreed with DCLG.