Time is running out for people across Nottinghamshire and Derbyshire to have their say on an agreement that could see £1.14 billion being invested in the area. The agreement will see a new East Midlands Authority being set up, headed up by a newly elected Mayor for the region.
This authority will have powers over issues such as transport and housing. The agreement was signed by Nottingham City Council, Nottinghamshire County Council, Derby City Council and Derbyshire County Council.
All four of these councils have agreed to the current proposed version of the devolution deal and the public are now being invited to have their say. The consultation will run until January 9 and as the deadline looms, below is how the deal could affect you, from a potential expansion of the tram network to the building of new homes.
How will the new authority be run?
The devolution agreement will create a new body called the East Midlands Combined County Authority (CCA), headed up by a newly elected East Midlands Mayor. As well as the Mayor, the current proposal is for the authority to contain two members from each of the four councils that signed the devolution agreement: Nottingham City Council, Nottinghamshire County Council, Derby City Council and Derbyshire County Council.
The Mayor and the members from the four councils would all have voting rights on the new authority, but non-voting members could also be appointed. In particular, the devolution agreement says that members representing the 15 district and borough councils across Derbyshire and Nottinghamshire could be appointed.
The agreement also says that the CCA could feature non-voting members representing emergency services, health services and businesses. However, the devolution agreement also states that the number of non-voting members should not be higher than the number of voting ones.
Non-voting members could be given a say on certain issues if the CCA decides to. The Mayor or any voting member on the CCA can put forward a proposal at the authority, which all matters to be decided by a simple majority of the members who are present and voting, although that majority must include the vote of the Mayor.
Certain decisions will also require the consent of the lead member elected from each of the four signatory councils. This will include matters such as the compulsory purchase of land or buildings.
The Mayor and members of the authority will be scrutinised by an overview and scrutiny committee and an audit committee. These committees will be made up of at least one member nominated from each of the four signatory councils.
How will the new authority be funded?
The four councils that signed the devolution agreement will create a funding programme known as the East Midlands Investment Fund, which will be used by the CCA to deliver long-term investment. The Government will be providing some money towards this fund, specifically £38 million every year for 30 years.
That money will be subject to a review every five years to assess whether it has "contributed to economic growth and levelling up." The Government will also provide £500,000 towards establishing the CCA in 2023/24 and then £1 million in 2024/25.
The Government says that the CCA will be given powers to borrow money, subject to an agreed cap with the treasury. The CCA will also have to agree overall debt limits with the treasury and update them if it deviates from borrowing plans.
The Mayor will also have the power to ask residents to pay council tax to support the Mayor's work. However, a promise has been made that this power will not be used.
How could the new authority affect education?
The Government will give all powers over the adult education budget to the CCA from the 2025/26 academic year, with the Government to decide on the size of the grant that will be paid to the authority to help it with this role. Before that can happen, the Government will have make sure the CCA meets a number of conditions.
This will include the Education Secretary being "reassured" that the CCA is ready to administer the adult education budget. As well as adult education, the CCA will also have a role in skills.
Local Skills Improvement Plans (LSIPs) will be formulated to set out current and future skills needs in an area, with the CCA potentially receiving some extra funding to assist with this task in the future. The Department for Work and Pensions will also consider whether the CCA could be involved in future contracted employment programmes.
How could the new authority affect housing?
The CCA will be given the power to acquire and dispose of land to build houses, commercial space and infrastructure. To do this, it will be given compulsory purchase powers, but this will need the agreement of the four signatory councils, the district and borough councils where the relevant land is located and the Housing Secretary.
The new East Midlands Mayor will be able to create Mayoral Development Corporations. Such corporations in other areas of the UK have been behind projects such as the creation of a freeport in Teesside.
The Government has also agreed to give £16.8 million to the CCA in 2024/25 to support the building of new homes on brownfield land, if such projects are identified. The Government also says it will provide £918,000 of funding to the CCA across 2023/24 and 2024/25 to support the development of a "pipeline of housing sites."
Finally, the Government also says it will provide a funding pot of up to £9 million to support "the delivery of housing priorities in the East Midlands." Alongside housing, the Government says the CCA will have specific powers in terms of reducing carbon emissions.
The Government will make an investment of up to £9 million to support the East Midlands in its net zero ambitions. The CCA itself will act as a coordinator for setting up a heat network in the East Midlands, with heat networks supplying heat from a central source to consumers.
The CCA will fund the commissioning of a local energy plan and will also produce a flood alleviation strategy. The CCA will also consider the delivery of green jobs across the East Midlands.
How could the new authority affect transport?
The four councils will develop a provisional local transport plan by March 2024 and this will be finalised by the Mayor and the CCA once established. The Government will provide an additional £500,000 across 2023/24 and 2024/25 to support this.
The CCA will also seek to have integrated ticketing across all local modes of transport in its area. As part of this closer working, the Mayor will also be responsible for an East Midlands transport budget.
The authority will develop a Key Route Network, setting out some of the most important roads in the area. The CCA will also take on responsibility for moving traffic offences, such as driving in bus lanes and blocking a yellow box junction.
A strategy for buses will be developed as part of the wider transport plan and a new rail partnership will be sought with Great British Railways. Finally, the agreement says that the NET tram system could potentially be expanded.
What happens next?
Following the end of the public consultation on January 9, preparations for setting up the new East Midlands CCA will then start next April. The process of establishing a 'shadow authority' will start from that month, before it is then formally established in May 2024, the same month when the first new East Midlands Mayor is due to be elected. This is the point when the new authority will formally start delivering on its responsibilities.
