Decision details

To consider a report of the Service Director, Legal and Governance in relation to the Combined Authority proposal.

On consideration of the report of the Leader of the Council, having complied with paragraph 15 of the Council’s Access to Information Procedure Rules, Cabinet agreed the following modified recommendations:

(i)  Note that a thorough 8 week consultation exercise was undertaken across the Isle of Wight, Southampton and Portsmouth council areas on the draft Governance Review and the Draft Scheme.

(ii)  Note that the consultation results (Appendix 3) confirmed support for the three authorities working together to achieve devolution from central government through a mayoral combined authority.

(iii)  Publish the Scheme and Review, and submit a request to the Secretary of State for Communities and Local Government to establish a Solent Combined Authority (such a submission will be dependent on the other two Councils also resolving to publish the final Scheme and review).

(iv)  Resolve that if a decision is made to make a submission to the Secretary of State, that Cabinet approve the Governance Review (appendix 1), revised scheme (appendix 2), and the consultation responses and the Motion presented today and include these as part of the submission to the Secretary of State.

(v)  Resolve that if a submission to the Secretary of State is made, that the Chief Executive, after consultation with the Leader of the Council, be given delegated authority to negotiate the final terms of an Order to establish a Solent Mayoral Combined Authority alongside colleagues from the Isle of Wight Council and Portsmouth City Council.

1  This report is submitted for consideration as a General Exception under paragraph 15 of the Access to Information Procedure Rules in Part 4 of the City Council’s Constitution, notice having been given to the Chair of the relevant Scrutiny Panel and the public

2  In order to comply with tight timelines to ensure the three authorities are in a position to submit a comprehensive case to the Government extraordinary meetings of both Council and Cabinet are necessary to consider this proposal. This has necessitated in the matter being treated as a Regulation 15 exception and placed on the Forward Plan as soon as possible.

3  There are significant benefits for Southampton City Council and the wider Solent area in agreeing an ambitious devolution deal with central government. To access such a deal we need to undertake a process that would enable the creation of a Mayoral Combined Authority. The recommendations would allow for Southampton City Council to fulfil this requirement. A report would be brought back to Cabinet with the results of the subsequent work with Government. The other Unitary Authorities are simply reporting.

4  The core test, that is:

Would the establishment of a combined authority be likely to improve the exercise of the powers and functions described in the Review and its accompanying documents (in this instance, the Scheme) in relation to the areas of the proposed combined authority,

is demonstrably satisfied by the findings and conclusions described in the Review (as informed by the responses to the consultation). The Review is attached as Appendix 1.

5  The Review includes an analysis of the area to be covered by the Solent Combined Authority. It confirmed that the three unitary authorities are a clear economic area and together make an internationally recognised economic hub. The review recognises that the economic and communications inter-dependencies between the cities and the Isle of Wight are critical to continued economic success. The review also recognised the role that the area of the three authorities play in terms of the marine and maritime sector and the high education research with the three universities based in their area.

6  The Review looked at the existing governance arrangements and identified that the exercise of the relevant economic development, transport and regeneration functions in relation to the combined area described above, as well as the individual local authority areas, was being impeded by a lack of connectivity in decision-making, strategy and delivery, in the functional areas of economic development, regeneration, and transport. It considered alternative options for the better performance of those functions, in the local authority areas of Portsmouth, Southampton and Isle of Wight, and the combined area, regarding:

•  The exercise of statutory functions relating to economic development, regeneration and transport in the area;

•  The effectiveness and efficiency of transport; and

•  The economic conditions in the area.

7  The alternative options considered were examined, including remaining with the status quo, establishing a joint committee, establishing an economic prosperity board and establishing a mayoral combined authority. It concluded that the mayoral combined authority was the best option. This was consistent with the consultation results.

8  The Scheme encompasses the proposals contained within the Review, and its accompanying draft scheme. In response to feedback received as a result of the consultation exercise, the description of the governance arrangements, voting rights, respective role of Mayor and Combined Authority, and powers have been developed.

9  The recommendations in this report allow a proposal to be made to the Secretary of State for him to make a decision about whether or not to progress the setting up of the Solent Combined Authority.

The Council has agreed to undertake a consultation in pursuance of developing the SMCA proposals. This reports provides the results of this. In the circumstances no other alternative has been considered or is reasonable.