Correspondence from the Permanent Secretary to the ... · Melanie Dawes CB . Permanent Secretary...
2
·~ Department for Communities and Local Go vernment Meg Hillier MP Chair of the Committee of Public Accounts House of Commons 14 Tothill Street London SW1H 9NB Melanie Dawes CB Permanent Secretary Department for Communities and Local Government 2 Marsham Street London SW1 P 4DF www.gov.uk/dclg ,..it l December 2016 Re: Government' s response to the PAC's report on Cities and L ocal Growth Thank you for your letter of 1 December in which you asked for clarification of the Government's November Treasury Minute, which in cluded responses to the Public Accounts Committee's report on Cities and Local Growth. On recommendation 1, I do not think that I can add very much to the Treasury Minute response, which sets out the Government's po li cy .. The overall aim of devolution deals is to give local areas the tools they need to drive growth in their areas. However, th e Government's position is that it is for local areas to identify what matters to them, and what they hope to achieve through devolution deals. This is also why the Government has not set out a fi xed menu or off e r, although the deals that have been negotiated and implemented already illustrate where the common ground typically lies. I should add that there is an additional evaluation mechanism, with in dependent expert in put, in place for the Investment Fund element of the deals, so that the impact on economic growth can be tracked over time. Your fifth recommendation was that the Government should conduct a structured assessment of the capacity of combined authorities. The Government's vi ew is that it is for the constituent members of combined authorities themselves to ensure that they have the capacity they need to deliver any new functions that they have chosen to take on. This is in line with the approach we take to a ll local authorities, whereby we do not directly assess capacity but instead monitor risk and, where relevant, service delivery and outcomes. However, you may find it helpful to know that the L GA is develop ing a peer review model for combined authorities that will allow them to benchmark th eir leadership, governance and overall capacity. This is part of the LGA's wider peer support off e r, which my department funds. The LGA will be promoti ng this new service in the New Year to all Mayoral combined authority areas. On your seventh recommendation, you asked when we will be able to share draft accountability statements for mayoral combined authoritie s. We have started work across Departments on a set of summary guides, setting out for each deal area the new powers that will fa ll to the Mayor and the combined authority, and makin g clear where acco untability sits. These guides will be
Transcript of Correspondence from the Permanent Secretary to the ... · Melanie Dawes CB . Permanent Secretary...
·~ Department for Communities and Local Government
Meg Hillier MP Chair of the Committee of Public Accounts House of Commons 14 Tothill Street London SW1H 9NB
Melanie Dawes CB Permanent Secretary
Department for Communities and Local Government 2 Marsham Street London SW1 P 4DF
www.gov.uk/dclg
,..itl~ December 2016
Re: Government's response to the PAC's report on Cities and Local Growth
Thank you for your letter of 1 December in which you asked for clarification of the Government's November Treasury Minute, which included responses to the Public Accounts Committee's report on Cities and Local Growth.
On recommendation 1, I do not think that I can add very much to the Treasury Minute response, which sets out the Government's policy.. The overall aim of devolution deals is to give local areas the tools they need to drive growth in their areas. However, the Government's position is that it is for local areas to identify what matters to them, and what they hope to achieve through devolution deals. This is also why the Government has not set out a fixed menu or offer, although the deals that have been negotiated and implemented already illustrate where the common ground typically lies. I should add that there is an additional evaluation mechanism, with independent expert input, in place for the Investment Fund element of the deals, so that the impact on economic growth can be tracked over time.
Your fifth recommendation was that the Government should conduct a structured assessment of the capacity of combined authorities. The Government's view is that it is for the constituent members of combined authorities themselves to ensure that they have the capacity they need to deliver any new functions that they have chosen to take on. This is in line with the approach we take to all local authorities, whereby we do not directly assess capacity but instead monitor risk and, where relevant, service delivery and outcomes.
However, you may find it helpful to know that the LGA is developing a peer review model for combined authorities that will allow them to benchmark their leadership, governance and overall capacity. This is part of the LGA's wider peer support offer, which my department funds. The LGA will be promoting this new service in the New Year to all Mayoral combined authority areas.
On your seventh recommendation, you asked when we will be able to share draft accountability statements for mayoral combined authorities. We have started work across Departments on a set of summary guides, setting out for each deal area the new powers that will fa ll to the Mayor and the combined authority, and making clear where accountability sits. These guides will be
descriptive documents written ill plain English. In th.e Treasury Minute response we indicated that our target date for publishing these documents is Spring 2017, after the detailed orders that will transfer powers have been finalised and ahead of the purdah period for the Mayoral elections in May. We will be sharing our progress on this with the .NAO in the New Year.
I hope that this letter clarifies the Government's position.
I am copying this letter to the Treasury Officer of Accounts and the Comptroller and Auditor General.
Yours sincerely,
MELANIE DAWES
