Mayors set for departmental-style deals in spending review, Government reveals

Responses shared with Parliament’s Public Administration and Constitutional Affairs Committee (PACAC) show that the Government could provide flexible single-pot settlements for the Greater Manchester and West Midlands devolved regions as part of their “trailblazer” deals with the Government.

Details of the deals were revealed earlier this month by The Yorkshire Post and are expected to be agreed by early 2023, according to the Government.

“As part of these negotiations, the Government will explore the potential to provide single departmental-style settlements at the next Spending Review,” read a government response to the committee.

“This could give local partners more flexibility and accountability over key economic growth funds, moving away from competitive bidding processes.”

It comes after Rishi Sunak and Michael Gove were criticised by Andy Street, the Conservative mayor of the West Midlands, who said that the “begging culture” of competitive bidding for schemes such as the Levelling Up Fund must end.

The response to PACAC also confirmed that the Government will set out proposals to hold mayors to account over their new powers, after The Yorkshire Post reported concerns within Government of a lack of accountability for Labour mayors who could blame Whitehall for financial mismanagement.

“Devolution requires transparent and accountable local leaders and institutions that work closely with local businesses, seek the best value for taxpayer’s money and maintain strong ethical standards,” the Government said.

“The English Devolution Accountability Framework will set out how to make sure this is

the case.”

The reply by the Government came in response to a PACAC report which called for a cross-party Commission on the governance arrangements for England, which the Government has since rejected, along with opposition parties.

“The Committee is concerned that the Government’s refusal will mean the issue will “remain a political football”” today’s report noted.

“The Committee is very disappointed by the quality of the Government’s response and the clear lack of attention paid to and engagement with both the specific content of the Report and the serious issue at hand.

“We remain concerned that rather than seeking a long-term, cross-party solution to the increasing issues with the governance of England, the matter will remain a political football, with the result that long overdue and meaningful comprehensive reforms will fall by the wayside.

“The Committee expects the Secretary of State to make himself available to the Committee in the coming weeks to account for the Government’s response, at the very latest before the Easter Recess.”

It comes after a minister this week told MPs that any reforms to council tax will not happen in this parliament.

Lee Rowley, the local government minister, told the Levelling Up Committee that “wholesale reform” of council tax is likely to be some way off.

Mr Rowley said: “The general sense is that council tax is, as every system, an imperfect system. It’s got its good points and its bad points.”