Agenda item

8.1

The Chief Executive submitted a report referring to proposals to establish a Sheffield City Region Combined Authority (the SCR Authority) which would combine or bring together the Integrated Transport Authority (ITA) powers and strategic economic development powers in order to align political decision making around strategic Economic Development and Transport.

8.2

RESOLVED: That Cabinet recommends to the City Council at its meeting on 3^rd April, 2013 that it :-

(a)

endorses the findings of the Governance Review document referred to in Appendix 1, specifically that, establishing a SCR Authority would improve the exercise of statutory functions in relation to economic development, regeneration and transport in the SCR leading to an enhancement of the economic conditions and performance of the SCR;

(b)

endorses the submission to Government of a Scheme for the establishment of a Sheffield City Region Combined Authority on the basis of the draft annexed at Appendix 2 (the Scheme);

(c)

agrees that the City Council will formally become a constituent member of the SCR Authority, sharing appropriate economic development and transport powers with the SCR Authority, in accordance with the provisions of the Local Democracy, Economic Development and Construction Act 2009 (LDEDCA) and the Local Transport Act 2008(LTA); and

(d)

authorises the Director of Legal and Governance to agree the terms of and enter into any documentation required to enable the City Council to become a constituent member of the SCR Authority.

8.3

Reasons for Recommendation to Council

8.3.1

Following the robust Governance Review commissioned by the Leaders of Sheffield City Region, it is recommended that Sheffield should agree to formally become a constituent member of a combined authority for Sheffield City Region (‘SCR Authority’) because of the significant opportunities presents to the City and the City Region.  These include:

·        Establishing an economic area that is ready for growth, with Sheffield and the wider City Region in the strongest possible position to compete economically both nationally and internationally;

·        Emphasising Sheffield role as the engine of growth in a economically powerful city region;

·        Creating a shared decision-making structure for the functioning economic geography of the city region where binding decisions can be made once by elected Leaders for the whole of the area;

·        Uniting strategic economic and strategic transport decision-making, ensuring that such decisions provide maximum economic benefit for communities across Sheffield City Region (business growth and jobs);

·        Delivering a dynamic SCR Authority which will lead the way

·        Gaining and using influence by establishing a robust and accountable leadership structure, recognised by Government, which puts SCR at the front of the queue for access to future devolved powers and resources from Whitehall;

·        Providing a statutory structure to deliver the existing City Deal and access future economic funding allocations, building on the recent allocation of the £25m Regional Growth Fund to SCR so that the City doesn’t miss out; and

·        Maximising opportunities for groundbreaking inter-city region collaboration across the north of England with Manchester and Leeds City Regions (e.g. over the devolution of the Northern Rail franchise);

8.4

Alternatives Considered and Rejected

8.4.1

The SCR Leaders considered the range of different options available as part of the Governance Review (see p13 of Appendix 1) and concluded that the Combined Authority model was the only solution which addressed the challenges and put SCR in a position to access new opportunities.  Other options are considered below:

8.4.2

Do nothing

Failure to strengthen SCR governance will compromise the medium to long-term ambitions of the area and therefore be detrimental to the future economic performance of the city region. Specifically, failure to formalise SCR’s governance will mean that the city region will not be able access ~£10 million of devolved transport funding per annum or manage ~£29 million of devolved skills funding agreed as part of our City Region Deal. The “do nothing” option would also be a missed opportunity to better align decision making around strategic economic development, transport and regeneration.

8.4.3

Informal restructure

Like Manchester City Region prior to the development of the Greater Manchester Combined Authority, it was felt that SCR is already stretching the boundaries of which can be achieved through an informal non-statutory partnership. Under this model, Leaders would still have to re-agree decisions at a local level – a process which is cumbersome and sometimes unclear. A legal, corporate body will allow the SCR to make a shared binding decision once, rather than one decision nine times.

8.4.4

Economic Prosperity Board (EPB) only

Whilst this option would give SCR a statutory city region level board for economic decision-making, the model does not involve the incorporation of transport, thus preventing Sheffield City Region from achieving accessing the overwhelming benefits of aligning decision making in relation to strategic economic development and transport under one strategic body.

8.5

Any Interest Declared or Dispensation Granted

None

8.6

Reason for Exemption if Public/Press Excluded During Consideration

None

8.7

Respective Director Responsible for Implementation

John Mothersole, Chief Executive.

8.8

Relevant Scrutiny and Policy Development Committee If Decision Called In

Overview and Scrutiny Management Committee.

8.1

The Chief Executive submitted a report referring to proposals to establish a Sheffield City Region Combined Authority (the SCR Authority) which would combine or bring together the Integrated Transport Authority (ITA) powers and strategic economic development powers in order to align political decision making around strategic Economic Development and Transport.

8.2

RESOLVED: That Cabinet recommends to the City Council at its meeting on 3^rd April, 2013 that it :-

(a)

endorses the findings of the Governance Review document referred to in Appendix 1, specifically that, establishing a SCR Authority would improve the exercise of statutory functions in relation to economic development, regeneration and transport in the SCR leading to an enhancement of the economic conditions and performance of the SCR;

(b)

endorses the submission to Government of a Scheme for the establishment of a Sheffield City Region Combined Authority on the basis of the draft annexed at Appendix 2 (the Scheme);

(c)

agrees that the City Council will formally become a constituent member of the SCR Authority, sharing appropriate economic development and transport powers with the SCR Authority, in accordance with the provisions of the Local Democracy, Economic Development and Construction Act 2009 (LDEDCA) and the Local Transport Act 2008(LTA); and

(d)

authorises the Director of Legal and Governance to agree the terms of and enter into any documentation required to enable the City Council to become a constituent member of the SCR Authority.

8.3

Reasons for Recommendation to Council

8.3.1

Following the robust Governance Review commissioned by the Leaders of Sheffield City Region, it is recommended that Sheffield should agree to formally become a constituent member of a combined authority for Sheffield City Region (‘SCR Authority’) because of the significant opportunities presents to the City and the City Region.  These include:

·        Establishing an economic area that is ready for growth, with Sheffield and the wider City Region in the strongest possible position to compete economically both nationally and internationally;

·        Emphasising Sheffield role as the engine of growth in a economically powerful city region;

·        Creating a shared decision-making structure for the functioning economic geography of the city region where binding decisions can be made once by elected Leaders for the whole of the area;

·        Uniting strategic economic and strategic transport decision-making, ensuring that such decisions provide maximum economic benefit for communities across Sheffield City Region (business growth and jobs);

·        Delivering a dynamic SCR Authority which will lead the way

·        Gaining and using influence by establishing a robust and accountable leadership structure, recognised by Government, which puts SCR at the front of the queue for access to future devolved powers and resources from Whitehall;

·        Providing a statutory structure to deliver the existing City Deal and access future economic funding allocations, building on the recent allocation of the £25m Regional Growth Fund to SCR so that the City doesn’t miss out; and

·        Maximising opportunities for groundbreaking inter-city region collaboration across the north of England with Manchester and Leeds City Regions (e.g. over the devolution of the Northern Rail franchise);

8.4

Alternatives Considered and Rejected

8.4.1

The SCR Leaders considered the range of different options available as part of the Governance Review (see p13 of Appendix 1) and concluded that the Combined Authority model was the only solution which addressed the challenges and put SCR in a position to access new opportunities.  Other options are considered below:

8.4.2

Do nothing

Failure to strengthen SCR governance will compromise the medium to long-term ambitions of the area and therefore be detrimental to the future economic performance of the city region. Specifically, failure to formalise SCR’s governance will mean that the city region will not be able access ~£10 million of devolved transport funding per annum or manage ~£29 million of devolved skills funding agreed as part of our City Region Deal. The “do nothing” option would also be a missed opportunity to better align decision making around strategic economic development, transport and regeneration.

8.4.3

Informal restructure

Like Manchester City Region prior to the development of the Greater Manchester Combined Authority, it was felt that SCR is already stretching the boundaries of which can be achieved through an informal non-statutory partnership. Under this model, Leaders would still have to re-agree decisions at a local level – a process which is cumbersome and sometimes unclear. A legal, corporate body will allow the SCR to make a shared binding decision once, rather than one decision nine times.

8.4.4

Economic Prosperity Board (EPB) only

Whilst this option would give SCR a statutory city region level board for economic decision-making, the model does not involve the incorporation of transport, thus preventing Sheffield City Region from achieving accessing the overwhelming benefits of aligning decision making in relation to strategic economic development and transport under one strategic body.

8.5

Any Interest Declared or Dispensation Granted

None

8.6

Reason for Exemption if Public/Press Excluded During Consideration

None

8.7

Respective Director Responsible for Implementation

John Mothersole, Chief Executive.