Devolution Deal for East Midlands Parish & Town Council Liaison Forum 2023

Devolution Deal for the East Midlands Parish and Town Council Liaison Forum 18 September 2023

Background o The Government published the Levelling Up White Paper in February 2022 o Focusing on twelve national levelling up missions to be achieved by 2030, the White Paper sets out plans to transform the UK by spreading opportunity and prosperity to all o Nine county areas wereinvited to develop County Deals with aim to agree a number of these by Autumn 2022 o Both Derbyshire and Derby and Nottinghamshire and Nottingham were included in this first round and subsequently agreed to work together to develop proposals o The White Paper also introduced a new devolution framework designed to create a set of clear and consistent devolution pathways for places o The Levelling-Up and Regeneration Bill will establish a new form of combined county authority model and is now currently working its way through the legislative process 2

Securing the Deal Following a period of negotiation, Government announced the deal on 30th August 2022, with funding consisting of: 18m 38m p/a Additional in-year capital funding Capital funding 17m Investment funding For the next 30 years To support building of new homes on brownfield land Devolved capital funding 3

Summary of the Deal The deal document sets out the powers that will be devolved to the East Midlands MCCA and also how the combined authority will work. The main headlines from the deal are: An elected Mayor for the Derbyshire, Derby, Nottinghamshire and Nottingham advocating for the region and held accountable by the electorate. Devolved packages of funding for spending on local priorities, including importantly certainty over a five year local transport programme and devolved Adult Education Budget New devolved powers from government including powers related to Skills & Education, Transport, Housing & Land, Net Zero, Innovation, Trade & Investment, Public Service Reform and Financing. Protection of powers currently held by top-tier authorities (with the exception of transport) and the District & Borough councils. No powers to be taken away from Districts & Boroughs Potential for more devolution of powers in the future. 4

Key opportunities the Deal provides Local voices playing a greater role in decision making and the region s priorities, with more opportunities for private, public, and voluntary sector organisations to contribute and have their voices heard. One of the largest investment fund in the country, with a total guaranteed funding stream of 1.14 billion to help level up the area ( 38 million per year over the next 30 years). Control over a range of budgets like the Adult Education Budget, which means spend is not constrained by nationally set rules and can be tailored to the needs of people in our communities. Through a new Mayor a bigger voice, more influence, and a higher profile across the country, helping us make a strong case to the Government for more investment in the area. Working more effectively on a larger scale across council boundaries, further strengthening our partnership working in our counties and cities. Local powers to tackle challenges specific to our area and harness its true economic potential, for the benefit of everyone who lives and works here. 5

Governance proposals for the Combined County Authority A detailed constitutional and governance framework for the EMCCA has been developed with a number of locally determined principles, broadly as follows: The four upper tier authorities will be constituent authorities who will each appoint two members to the proposed EMCCA alongside the elected Mayor Additionally, there can be up to eight other members (non-constituent members/associate members), of which up to four will be drawn from district and borough councils Each member of the upper tier authorities on the EMCCA will have one vote each. The Mayor will have one vote The EMCCA has the discretion to allow other members to vote Specific requirement to establish an Overview and Scrutiny Committee and Audit Committee 6

Latest Position Formal devolution consultation ran from 14 November 2022 9 January 2023. Overall consultation findings were largely positive indicating broad support for the proposals with many respondents giving positive responses for areas such as improving skills training, transport, housing, the environment, and other areas. Whilst the majority of respondents agreed with the plans, the only aspect where slightly more disagreed than agreed (3% difference) was governance. At their respective Full Council meetings at the end of March 2023 all four upper tier councils discussed and formally considered the consultation results and the updated proposal and approved the final proposal for submission to Government and agreeing to move forward with devolution. Submission of final version of proposal to the Government is dependent on legislation being passed (now expected after the summer). The next major milestone will be in this autumn, when the four councils will need to make a decision on whether to approve a draft statutory instrument, which would form the legal basis for the creation of the East Midlands Combined County Authority. 7

Phase 2 Work now underway as part of Phase 2 of the programme to design and develop interim arrangements to ensure that the EMCCA can be fully operational from May 2024 onwards Programme of work between now and May 2024 is significant - resources being secured and recruitment to key roles now complete to ensure sufficient capacity and capability is in place to progress plans Workstreams, which align with the key themes of the agreed Devolution Deal, have been created, involving district and borough Chief Executives and other officers. Work is now progressing at pace to ensure the area is ready to maximise opportunities and implement proposals as follows: o Housing and Land with Homes England develop a pipeline of projects that can benefit from investment in site improvement o Skills with DfE undertake work to fully meet the readiness conditions in relation to the devolved Adult Education Budget 8

Phase 2 o Net Zero developing a varied programme of works specifically in respect of future fuels alongside proposals for retrofit o Transport - work with DfT to complete a transition plan and a single strategic transport plan o LEP Integration - agreeing plans with the LEP and the business community to bring business growth and innovation functions into the Combined Authority arena and to give business an effective voice Programme of wider stakeholder engagement currently being developed to ensure districts and borough councils, wider partners and other interested parties have opportunity to shape and develop proposals as they emerge 9

Impact of the Devolution Deal The Deal has already started to impact and make a positive difference to the Area since it was negotiated and signed in August 2022 Allocation of funding from one off funds outlined in the Devolution Deal to key projects, including: o 18 million capital funding with 9 million towards net zero projects and 9 million towards housing projects with each district and borough area to receive approx. 0.5m for retrofit projects o Agreement to draw down 250k capacity funding to enable work to progress on Phase 2 activity, with recruitment of dedicated resources to support the work o An allocation of 500k for work on the housing pipeline and 459K for work on the local transport plan Agreement that Derbyshire, Nottinghamshire Derby and Nottingham will be one of eight Investment Zones across the country Stronger and closer working relationships across the area with partners and with central Government 10

Additional in Year Capital Funded Projects - 18 million Boosting Retrofit in the EMCCA Housing and Net Zero Additional funding to resolve challenges and improve flexibility in respect of place-based retrofit with each district and borough area to receive approx. 0.5m for retrofit projects. Government funding for retrofit projects currently results in delivery gaps across neighbourhoods and households benefiting from funding as they fall outside of a schemes strict criterion. 9.9 million D2N2 Giga hubs - Net Zero Funding to Increase access to digital connectivity in the D2N2 Combined Authority area, by connecting public service buildings (such as rural schools, doctors surgeries and libraries) to gigabit broadband. Allocated funding is in addition to 6.8m from BDUK as part of the Midlands Giga hubs programme and widens the range of locations, adding up to 118 additional premises to the 235 previously identified. 1.2 million Shortage of Affordable Housing/Reducing use of B&Bs in Derby City Housing Additional funding to develop of 15 additional social houses to be let at an affordable rent in Derby City which will look to reduce placements into temporary accommodation and B&Bs and reduce waiting lists for more suitable longer-term accommodation. 1.1 million 11

Additional in Year Capital Funded Projects - 18 million (2) Addressing Homelessness. Long Term Private Rental Scheme Reducing use of B&Bs - Housing Funding to support the acquisition of 12 properties (6 per LA) for temporary accommodation use in Nottingham City and Derby City areas to reduce reliance on B&Bs for homeless families. Key outcome will be a reduction in the incidence of Councils breaching of statutory time limit. 2 million Growth Through Green Skills Net Zero Development of a flagship skills centre and demonstrator site for low carbon construction and retrofit in the D2N2 LEP region, operated by West Notts College 1.5 million Derbyshire LCWIP Net Zero Introduction of a new 3m wide 2km inter-urban off-road pedestrian and cycle route between Markham Lane (Markham Vale) and Seymour Link Road (Staveley). 750,000 Fairfield Roundabout and Link Roads Housing Construction of a roundabout on the A6 at Fairfield, Buxton to open up access to 20 ha of housing development land, 13.7 ha of which is brownfield. 1.5 million 12

Next steps: the medium and longer term Key Dates Implementation of Phase 2 which is designing/developing shadow arrangements Planning for design of operating model, transitional arrangements etc January 23 - June 23 Keen to deepen joint working with our wider colleagues and partners as we build out the design of the MCCA Implementation of MCCA processes, structures in shadow form June 23 May 24 SoS Decision made. SI shared, finalised, sent to Parliamentary Counsel Autumn 2023 Want to construct the MCCA in partnership with key stakeholders and have committed to engaging with them transparently November/ December 23 SI laid and all councils consented Mayor elected Early May 24 East Midlands MCCA established May 24 Refining governance and putting in place district and borough council representation on EMCCA Development of local arrangements at Derbyshire/Derby level to ensure area can maximise benefits of wider Deal 13