Agenda item - Local Government Review Update

To consider the latest developments with respect to factors affecting the future of local government, including the Government’s Autumn Financial Statement and the potential devolution of powers to local government.

RESOLVED:

(a) That the following be noted:

(i) the update provided on the Autumn Statement 2016;

(ii) that there is no change from the Autumn Statement required of the Council’s Medium Term Financial Plan 2017 to 2020;

(iii) the recommendations taken by the County Council’s Cabinet (Appendix A to Report Item 4 considered by the Cabinet) in response to their recent consultation with residents and business across Hampshire;

(iv) the information set out within the reports produced by Price Waterhouse Cooper

(v) that there was no announcement of a devolution deal for the Solent area within the Autumn Statement; and

(vi) the information set out within the reports of Price Waterhouse Cooper’s independent assessment on “devolution and the future of local government”

(b) That the following actions be supported:

(i) to work with Councils in Hampshire on a solution that brings significant tangible benefits to residents and businesses; and

(ii) to ensure that the local voice and local choice of the New Forest is represented and reflected in any developments both now and in the future.

The meeting had been preceded by a presentation by the Chief Executive which allowed the background to the report before the Cabinet to be evaluated in greater detail.

The Cabinet was advised of the latest position with respect to the exploration of options for the potential devolution of powers from central government to local authorities in Hampshire. Following the failure to reach an agreement among all the local authorities in Hampshire to secure a Hampshire-wide bid, various other options had been considered. A bid had been submitted by the Solent authorities, but to date there had been no indication whether this had been successful. The County Council had undertaken a consultation on the possibility of establishing a Hampshire-wide Unitary Authority, which could then take on devolved powers, but there had been no appetite for such an arrangement amongst the responders. The County Council had consequently decided that there was no merit in pursuing this option, but would revisit this stance should any other bids seek to change the current structures in the County.

This Council, together with 5 other local authorities, collectively known as the “Heart of Hampshire” authorities, had commissioned independent research into potential options for the future. The executive summary of this report was set out in Appendix 2 to Report Item 4 considered by the Cabinet, and the full report, together with the Government’s Autumn Statement and the County Council’s consultation response had been made available for inspection through the Council’s website.

The Government’s Autumn Statement had made no reference to the devolution of powers. The future direction of Government policy therefore remained unclear. The Statement had however confirmed that the current financial constraints would continue, including the 4 year funding agreement that had already been agreed and incorporated into this Council’s Medium Term Financial Plan. The Government had announced initiatives that would affect local communities including a new National Productivity Investment Fund with an emphasis on increasing the overall housing supply and investment in broadband; additional Business Rate reliefs; and funding for Local Enterprise Partnerships.