Charter88 Commentary Summary

The regional government White Paper 'Your region, Your Choice - revitalising the English Regions' (CM5511) sets out the governments intentions to "introduce legislation during this Parliament to give the people of each region the opportunity, over time, to opt for an elected regional assembly" [3.3].

The government declares that its main aims (p11) regarding regional devolution are:

• "Decentralising power from central government and bringing decision-making closer to the people
• Giving the regions the freedom and flexibility to meet their own priorities, within a national framework.
• Making government more accountable to people in the regions.
• Providing democratic representation in the regions and a new political voice.
• Improving delivery by ensuring better co-ordinated government at regional level.
• Giving regional stakeholders a clearer decision-making framework to engage with.
• Promoting sustainable development and improving quality of life."

The main points contained in the White Paper are:

• The regional boundaries currently used for Regional Development Agencies and European Elections will be those used for the purposes of Regional Assemblies.
• Regions will have to hold referendums before an elected assembly is established. The timing the referendums will be decided by the Secretary of State. The first referendum(s) should take place this Parliament.
• Where a Regional Assembly is established, the local government structure will become unitary. The Boundary Commission will be asked to review local government structures in areas where a referendum is to be held to recommend the most effective wholly unitary arrangements in the region.
• Regional Assemblies would have 25-30 members elected by the Additional Member System of proportional representation. The Assembly will be divided into an executive of around 6 members, and a legislature. All members will be paid a salary with executive members being envisaged as full time, and other members as three days a week. Payment to members will be on a pro-rata basis. There will be no bar on members holding dual mandates.
• Elected Assemblies will be responsible for Regional Strategies dealing with the following issues: sustainable development; regional development; skills and employment; spatial planning; transport waste; housing; health improvement; culture (including tourism); and bio-diversity.
• Regional Development Agencies will become directly accountable to the relevant elected assembly.
• Regional Assemblies will be funded through a single body grant.
• Assemblies will set agreed targets with central government. Financial rewards will be given for assemblies who meet targets.
• Assemblies will have the power to put a precept on Council Tax (averaging 5p weekly).

The White Paper advocates wide, although not deep, devolution from central government. A number of strategic policy areas will be moved from central to regional control. However, despite a being financed by means of a non-prescriptive block grant, regional assemblies will not assume full responsibility for many policy areas as they will have to work to centrally agreed targets. Further funding will be available to regional assemblies if they meet or exceed these targets. This provides a government held hoop for regional assemblies to jump through. Regional assemblies will, however, be able to raise revenue through a precept on Council Tax of up to 5p a week for Band D taxpayers, and will have powers to borrow. A direct grant will be made from central government to meet most of their running costs.

The only area for consultation in the White Paper is on how stakeholders should be involved in policy formation and decision making. The White Paper asks:

Possible options flagged up include co-option onto scrutiny committees, CO-option as policy advisors, the creation of consultative forums, and period statements and question sessions.

Key Events And Publicatons

March 2000 Launch of Campaign for the English Regions

November 2000 White Paper: Our Towns and Cities: the Future.

"Demand for directly elected regional government so varies across England that it would be wrong to impose a uniform system. In time we will introduce legislation to allow the people, region by region, to decide in a referendum whether they want directly elected regional government. Only where clear popular consent is established will arrangements be made for elected regional assemblies. This would require a predominantly unitary system of local government, as presently exists in Scotland and Wales, and confirmation by independent auditors that no additional public expenditure overall would be involved. Our plans will not mean adding a new tier of government to the existing system."

Opinion Polling

A poll commissioned by the BBC published on 21 March showed overwhelming support for regional devolution. Nationally, 63 per cent favoured regional government, with 23 per cent opposed. Support was highest in the West Midlands (73 per cent). However, 48 per cent believed the 'a regional assembly would just become a talking shop for politicians and a waste of money'. Full details of the poll can be found on the BBC website at http://news.bbc.co.uk/hi/english/uk_politics/
newsid_1884000/1884073.stm

Chapter 1: Understanding the regional dimension

Chapter summary:

• "The English regions are all different. Their rich diversity - which includes substantial disparities between and within the regions - demands a diversity of responses at local, regional, and national levels.
• In a range of contexts, the regions themselves are best placed to determine the most effective actions to realise their potential.
• Improving the competitiveness of all our regions is important for delivering economic prosperity for the UK as a whole.
• Regional policy needs to take a sustainable, long-term view. Since 1997 we have given regions the chance to reach their own judgements about their needs and priorities, within a national framework."

Regional diversity is explained in predominantly economic rather than social terms. For instance, growth in GDP per head has been significantly higher in the South East and East of England than in the North East and the North West. It is recognised by the Government that a balance must be struck between providing "the flexibility for regions to choose different approaches and providing solutions which work in the best interests of the country as a whole". However, regional government should not just be sold for its economic consequences, but for its democratic consequences also.

Chapter 2: Strengthening the English regions

Chapter summary:

• "The Government has pursued an active regional policy since 1997 - particularly through the Government Offices for the Regions, Regional Development Agencies and regional chambers.
• We are proposing to enhance the existing arrangements in all the English regions and will take further steps to ensure that regional variations in priorities are recognised.
• Regional Development Agencies are the drivers of economic performance in the regions. The Government is giving them extra resources and greater flexibility in allocating them.
• Regional chambers will be the regional planning bodies, help to integrate regional strategies, scrutinise the work of Regional Development Agencies, and work closely with Government Offices and other government-funded bodies in the region.
• The Government Offices will bring together key government bodies in their regions to ensure that work is joined up. They will be given extra responsibilities to strengthen regional decision-making."

The White Paper outlines changes which will take place in the regions whether or not the region opts for an elected regional assembly. Government Offices will be given extra responsibilities in areas such as crime reduction and drugs, working with the Department of Health's regional public health teams, and will take a greater role in monitoring and working with the Regional Development Agency.

Charter88 believes that giving central government a greater presence in the regions by giving more power to Government Offices must not be a substitution for decentralisation.

Chapter 3: A vision for regional democracy

Chapter Summary:

• "The next step in our programme of constitutional change is to give people the opportunity to choose whether they want to have an elected assembly for their region.
• We will decentralise power to elected regional assemblies and bring decision-making closer to people.
• Assemblies will add value by providing more effective and accountable regional decision-making.
• These proposals for decentralisation to the English regions build on experience of successful devolution to Scotland, Wales and Northern Ireland and of London-wide governance."

The Government sees elected Regional Assemblies as adding value by being both more effective and more accountable, and also recognises that these two qualities are linked.

Chapter 4: The functions of elected regional assemblies

Chapter summary:

• "Elected assemblies will improve the quality of life for people in their regions, particularly by improving regional economic performance.
• Assemblies will be given the lead role in developing strategies to achieve this. They will drive the implementation of their strategies, monitor progress and revise strategies. These will include executive functions such as responsibility for resources and influence to promote results that will benefit the region.
• Specific responsibilities include economic development and regeneration, spatial development, housing, transport, skills and culture.
• Regional Development Agencies will be accountable to their elected assembly which will appoint the Chair and Board members."

Elected Assemblies will be responsible for Regional Strategies dealing with the following issues:

• sustainable development;
• regional development;
• skills and employment;
• spatial planning;
• transport;
• waste;
• housing;
• health improvement;
• culture (including tourism); and,
• bio-diversity.

Economic Development [4.19-4.31]:

• The Government specifically expects elected assemblies to work in partnership with business, trade unions, the voluntary and community sectors, local authorities and other key partners in the public sector to steer the formulation of the overarching strategy and its implementation.
• Implementation of regional strategies will be through both executive functions and an influencing role.
• RDAs will become directly accountable to the relevant elected assembly.
• Central government will retain powers to ensure that elected assemblies and their RDAs continue to address national priorities. For example, the assembly will consult the Government on the draft regional economic strategy and on individual board appointments. RDAs will receive funding from the Regional Assembly by way of the block grant.
• Elected Assemblies will assume responsibility for drawing up and organising Frameworks for Regional Employment and Skills Action. The assembly will appoint two members to each of the local learning and skills councils (LSCs) in its region, one of whom will have a business background, and will be consulted on other appointments.

Planning [4.32-4.34]:

Elected regional assemblies will:

• be responsible for preparing regional spatial strategies, taking over this role from the existing regional planning bodies;
• take over responsibility for issuing the spatial strategies (which regain the responsibility of the Secretary of State in regions without a regional assembly); and,
• have the power to request the Secretary of State to call in for his or her determination strategic planning applications which were not consistent with the regional spatial strategy.

Housing [4.35-4.36]:

An elected regional assembly will take a strategic lead on housing issues. Specifically, an elected regional assembly will:

• Prepare and publish a regional housing strategy
• Allocate support for housing capital investment between councils and housing associations

Transport [4.37-4.38]:

Elected regional assemblies will be responsible for a regional transport strategy. They will have responsibility for advising central government on the allocation of funding for local transport. They will have powers to make proposals to the Highways Agency and the Strategic Rail Authority for schemes of regional importance.

Arts, tourism and sports [4.39-4.44]:

An elected assembly will fund, sponsor, and lead the regional cultural consortium. This will draw up a regional cultural strategy for agreement with and publication by the assembly. There will be new regional offices of the Arts Council are being established as a result of the Government review of the Arts Council.

Public Health [4.45-4.48]:

The role of elected regional assemblies on public health will reflect that of the GLA in London. For example, an assembly will appoint the Regional Director of Public Health as the assembly's health advisor in order to form a co-ordinated regional public health group and strengthen the public health function in the region.

Rural Policy [4.49-4.50]:

An elected assembly will:

• be responsible for delivering rural regeneration programmes
• actively engage with the regional Rural Affairs forum
• be the lead partner in implementing the regional elements of the England Rural Development Programme
• Have a responsibility to ensure that countryside, landscape, recreation and rural issues are addressed in other regional strategies.

Environment [4.51-4.53]:

An elected assembly will:

• make appointments to the Environment Agency's regional committee;
• prepare and implement a regional strategy for biodiversity in conjunction with other relevant regional strategies;
• prepare and oversee the implementation of the waste element of the regional spatial strategy;
• Be consulted by the Environment Agency etc on their strategies, and in turn, consult them.

Other:

The White Paper recognises that a number of elected assembly responsibilities will have a bearing on other issues for which they have no executive role, for instance crime reduction and drug misuse.

Charter88 questions the ability Regional Assemblies will have to make a real impact on areas such as transport where they will have strategic responsibility with no responsibility for spending. Central government targets, with financial gains for meeting them, may also compromise the ability of regional assemblies to respond to the needs and wishes of their electorate.

Chapter 5: Funding of elected regional assemblies

Chapter summary:

• "Regional assemblies will be funded primarily by central government grant.
• Assemblies will have complete freedom to spend their grant as they judge best, subject to their helping to achieve in their region certain specific targets agreed with central government. Some additional funds will be available if an assembly meets or exceeds these targets.
• Assemblies will be able to raise additional funds from a precept on the council tax. Their precept will be expected to make a small contribution to the direct running costs of an assembly. But costs to council tax-payers will be subject to a capping regime to prevent excessive increases.
• Assemblies will have no power to alter the domestic business rates.
• Regional assemblies will have powers to borrow money, subject to certain limits."

Based on figures for 2001/2002, and elected assembly in the North-East would be responsible for around £350 million, and an assembly in the North-West would be responsible for around £730m. However, through their "influencing" role assemblies will have an important say on further sums. For instance, the North-East will have a say on a further £500m of public expenditure. [5.1]

Allocation of funds will be, as they are currently, formula based. The government states that "fairness and consistency of treatment between the English regions can be most simply demonstrated if the level of resources for the region(s) with an assembly is determined on broadly the same basis as for other English regions " [5.4].

Regional assemblies will be provided with a single block grant which they will be free to spend as they judge best. However, assemblies will be expected to "help achieve in their region a small number - perhaps six to ten - of targets agreed with the Government. These targets will be relevant to an assembly's responsibilities and will leave it open to the assembly to establish how to achieve them " [5.3]. There will be financial rewards to regions who meet these targets, in the form of additional money (i.e. not taken from the money available to regions without an elected assembly).

Regional assemblies will also receive a direct grant to meet most of their direct running costs, although those in the region should make some contribution also [5.6].

Assemblies will have power to put a precept on council tax. Assemblies will set the level of the precept, but the money will be collected by councils in the region as part of the existing arrangements for collecting council tax. In setting the level of central government grant, the government expects council tax-payers in an elected assembly to contribute the equivalent of around five pence per week for a Band D council tax-payer. The assemblies will also be allowed to set a higher precept within the region to fund additional spending. However, precepts will be limited through arrangements comparable to the local authority capping regime. This is intended as an initial situation, which will be kept under review with a look towards eventually ending the local government capping regime. [5.7-5.8]

There will be no power to vary non-domestic rates or affect business taxes. This is analogous to the arrangements concerning the Greater London Authority. Regional governments will be given borrowing powers to fund capital expenditure where they can afford to finance it from their revenue budgets, as well as temporary borrowing powers for cash management purposes. [5.10]

Running costs for a regional assembly are estimated as £25 million per annum. [5.13]

The assembly executive will be responsible for drawing up a proposed budget and presenting it to the full assembly for approval. The government does not specify the detailed procedures of budget setting, although it does intend to place minimum requirements as to the timetable, publicity and default arrangements that must apply. [5.17]

Chapter 6: Boundaries and electoral system for regional assemblies

Chapter summary:

• "We propose to use the existing regional boundaries for elected assemblies.
• Assemblies will be able to organise their business on a sub-regional basis and to develop and maintain existing cross-boundary relationships, where these arrangements add value.
• Assemblies will decide where their headquarters would be located.
• We propose to adopt the Additional Member System form of proportional representation for assembly elections. Around two-thirds of an assembly's members will be elected under the first-past-the-post system, with the remainder elected from a single 'top-up' constituency for the region. The overall composition of an assembly should therefore be broadly proportional to the votes cast for each party.
• A party will need a minimum of five per cent of the vote before it can return a 'top-up' member.
• Elections will be held every four years."

The Additional Member System is already used for elections to the Scottish Parliament, the National Assembly for Wales, and the Greater London Assembly.

The Government intends to ask the Electoral Commission to advise on the boundaries of constituencies within regions which vote for an elected assembly. This will determine the exact number seats in each assembly, and therefore the number of top-up seats also.

Constituencies will be based on existing local authority areas.

There will be no bar to dual mandates.

Chapter 7: the constitution of elected regional assemblies

Chapter summary:

• "Assemblies will have a leader and cabinet chosen by - and fully accountable to - the assembly. This will ensure a split between 'executive' and 'scrutiny' functions.
• Assemblies will have between 25 and 35 members (all of whom will be directly elected), with executives of up to six elected assembly members.
• Representatives of stakeholders and other unelected people with experience or expertise should be able to participate in all aspects of an assembly's work which do not directly involve decisions being taken. Views are sought on how such participation might be encourage and on the extent to which the Government should stipulate basic principles or requirements applicable to all regions."

The government proposes that each elected regional assembly should establish scrutiny committees, comparable to (but not duplicating the activities of) the overview and scrutiny committees being set up under local authorities' new constitutions. [7.3-7.6]

The Government proposes that the chambers should have between 25 and 35 members, with the variation reflecting differences in populations between regions. This size is favoured as a result of the scope of their functions, the need for an executive and "backbench" contingent, representation of political views and geographical areas within the region, the size is small enough to encourage the elected members to draw in unelected people with expertise or a different perspective, and would be consistent with the GLA (25 elected members). [7.7]

"There are four main ways in which stakeholders might be involved directly in the work of regional assemblies:

• As full assembly members;
• On the executive;
• In scrutiny committees; or
• In some form of consultative/ partnership forum or sounding board.

These are additional to other, less direct, ways of involving stakeholders such as business appointments to Regional Development Agencies or specific requirements for assemblies to consult other bodies on, for example, draft strategies or budgets. These proposals do not preclude elected assemblies working closely with other bodies who are active in the region, including those at local level such as local authorities and local strategic partnerships." [7.9-7.10]

Objections were raised to the first two of the four options as these would involve unelected members directly in decision making as this would undermine one of the main reasons for establishing elected assemblies: that bodies operating at the regional level should, as far as practicable, be democratically accountable to people in their region and their elected representatives.

Options left are therefore:

Co-option onto scrutiny committees, possibly with voting rights.

Co-option as policy advisors or onto policy development committees.

Consultative Forums or sounding boards of stakeholder representatives.

Periodic statements where assembly leaders could be questioned by business leaders and others.

Area For Consultation:

"We would like readers of this White Paper to give us their views on how to strike the right balance. What principles or requirements should be laid down by central government for all regional assemblies, or should assemblies be given a free hand? If there are to be basic principles or common requirements, should these be set out in legislation (which would be binding, but could be inflexible) or in statutory guidance (to which assemblies would only have to have regard, but which would be more flexible)?" [7.15]

The White Paper outlines several ways of securing involvement of under-represented groups. (E.g. applying the Sex Discrimination (Election Candidates) Act 2002, applying s.71 of the Race Relations Act 1976).

In addition, the Freedom of Information Act 2000 will be applied to the assemblies. The assemblies will be required to hold meetings in public, give public notice of meetings, keep records of meetings and other documents and allow people to inspect them. Assemblies will also be required to produce an annual 'state of the region' report, setting out the assembly's assessment of performance against its targets in a way that facilitates scrutiny and debate, both within the assembly and more widely in the region.

Being a member of an assembly executive, and chair an executive are envisaged as being full time jobs, with assembly members working for perhaps three days a week. Payment of assembly members should reflect this.

The government estimates that a regional assembly will have around 200 members of staff, excluding staff working for a regional development agency.

The government also intends to restrict the use of political advisers by parties in regional assemblies, along the lines of existing local government practice. Any assembly could have no more than three such posts and majority group could not use its position to take all three posts.

Chapter 8: Working relationships for effective English regions

Chapter summary:

• "Our proposals for the eight English regions complement those in place for Scotland, Wales, Northern Ireland and London.
• Responsibility for policy areas of national importance will not be given to regional assemblies.
• Local authorities will remain the community champion and the chief service deliverer in their area.
• We will encourage regional assemblies to take account of the potential impacts of their actions on other regions and nations within the UK and to establish effective cross-regional working arrangements.
• Most English regions already have good connections with the European Union, which could be strengthened further following the establishment of elected assemblies.

Chapter 9: Process for implementation

Chapter summary:

• "A 'yes' vote will be needed in a referendum before an elected assembly is established in any region.
• The timing of referendums will vary between regions. Following consultation with all eight English regions (outside London), the Government will decide which should hold a referendum fist. It is possible that a referendum may take place in only one, two, or three regions.
• Subject to Parliamentary approval of the necessary legislation, the first referendum(s) should take place during this Parliament. Referendums could take place in other regions later.
• Where a regional assembly is established, the Government believes that the local government structure in that region should become 100 per cent unitary.
• Where the Government decides that a referendum should be held in a region, the Boundary Committee for England will be asked to review the local government structure and recommend the most effective wholly unitary arrangements in that region, before the referendum is held, so that voters know the implication of a yes vote.
• Local government restructuring will go ahead where a region votes for an elected assembly, but not where a region votes against it.