General election derails Lancashire's devolution deal at the eleventh hour

The agreement was poised to clear its final hurdle in the coming weeks, with the legislation to bring it into force set to be put before Parliament - eight years after the county first started to pursue a deal.

However, last week’s snap election announcement left just two days for outstanding parliamentary business to be concluded before MPs headed back to their constituencies until after polling day on 4th July.

Had they been approved, the devolution regulations would have seen the powers secured under the deal transferred to Lancashire by the autumn - along with the creation of a new combined county authority (CCA) to implement them.

But the legislation did not make it through the brief ‘wash-up’ period before Parliament was prorogued on 24th May - and the Local Democracy Reporting Service (LDRS) understands that the Department for Levelling Up, Housing and Communities (DLUHC) regards the deal as now being solely in the hands of the next government.

At the very least, that means the new arrangements are now likely to be significantly delayed - but more profound changes could potentially be on the cards in the event of a Labour victory at the polls.

>» Click here to see what Lancashire’s devolution deal would mean for the county.

As the LDRS has documented, the deal - which was provisionally signed, pending a now-completed public consultation, at a ceremony at Lancaster Castle back in November - was done between the government and Lancashire’s three ‘top-tier’ local authorities: Tory-run Lancashire County Council and the standalone councils in Blackpool and Blackburn with Darwen, both of which are Labour controlled.

The trio agreed a so-called ‘level 2’ deal, which offers fewer powers than those that come with an elected mayor - because of longstanding divisions over that subject between all 15 of Lancashire’s councils, including its 12 districts.

However, the deal caused a split between some sections of the Labour Party in Lancashire, with the county council Labour opposition group voting against it, Labour-run districts Chorley and South Ribble rejecting it and Preston's Labour city council and West Lancashire Borough Council also expressing dismay - in spite of two of the party's authorities being signatories to it.

Concerns included the scope of the devolved powers, the absence of a vote for district authorities on the CCA and the fact that the new entity would take control of Lancashire’s £55m share of the UK Shared Prosperity Fund, which is currently distributed by the districts.

At a County Hall meeting in March - when county councillors approved the agreement by a majority - deputy Conservative leader Alan Vincent warned that if the deal on the table did not make it through Parliament on the planned timetable, it could be “three, four [or] five years” before another opportunity arose. He said such a situation would cost Lancashire “a fortune”.

Speaking to the LDRS after it became clear that the regulations had not been passed in the current session of Parliament, Lancashire County Council leader Phillippa Williamson said County Hall “remain[s] committed to forming a combined county authority for Lancashire”.

“We are continuing our planning and work with Whitehall officials so we can progress the deal following the election,” she added.

Blackburn with Darwen Council leader Phil Riley said it was “obviously disappointing” that the deal’s progress had been halted by the dissolution of Parliament.

However, he added: “Given the appetite for the deal from Lancashire businesses and institutions, we would expect the next government to move the deal on as a matter of urgency.”

Blackpool Council leader Lynn Williams was also approached for comment.

The top-tier leaders have each previously stressed that the level 2 agreement means Lancashire is at least - and at last - on the ‘devolution bus’, with the potential for a deeper arrangement to follow later.

However, recently-elected Labour opposition group leader Matthew Tominlson told the LDRS that the election was a chance for Lancashire to get a better deal than the “half-baked” one it had struck.

“There was always the danger that [it] would fail to get through Parliament. That's why Lancashire's [county] Tories - and MPs - were in such a rush to steamroller it through.

“Hopefully, a new Labour government will be willing to talk to us about a devo deal with real power and influence to change the lives of Lancastrians for the better," County Cllr Tomlinson said.

The Labour Party has said in its “Power Up Britain” plan that it will create “a new, clearer framework for English devolution” - but the document is not explicit about the relationship between the powers on offer to local areas and any requirement for an elected mayor to oversee them.

Meanwhile, a spokesperson for Lancashire County Council said of the potential delay to the current deal: “We firmly believe that a devolution deal continues to be in the best interests of both Lancashire's residents and businesses.

"Officers are now in discussion with government officials regarding the impact the calling of the general election will have on the progression of the Lancashire combined county authority regulations."

HOW DID WE GET HERE - AND WHERE ARE WE GOING?

It has already been a long road to a devolution deal for Lancashire – and it looks like the county is not at the end of it yet.

June 2016 - Lancashire forms a shadow combined authority, chaired by then Blackpool Council leader Simon Blackburn, with Chorley Council leader Alistair Bradley as vice-chair. It is seen as the first step on the road to devolution, via closer co-operation between the county’s 15 councils - but Wyre Council declines to join over disquiet about the prospect of an elected mayor, seen as a likely requirement of any deal.

February 2017 - Fylde Council walks away from the shadow combined authority, stating that there is not enough to be gained from a potential deal.

July 2017 - Ribble Valley Borough Council also withdraws over concern about an elected mayor and whether district authorities would have a veto in any future devolved arrangements.

September 2017 - Cllr Blackburn says that there is interest amongst Lancashire’s councils in a little-noticed pledge in the Conservative Party election manifesto suggesting that a mayor would no longer be a prerequisite of a devolution deal.

October 2017 - then Northern Powerhouse minister and Rossendale and Darwen MP Jake Berry says it is not up to the government to “dictate” what a devolution deal for Lancashire should look like - and confirmed that a mayor would not be demanded.

2019 - the shadow combined authority is replaced by Lancashire leaders’ group, chaired by then Lancashire County Council leader Geoff Driver. All 15 councils are at the table for monthly meetings, which are not solely focused on devolution.

June 2020 - all 15 Lancashire leaders support “the principle” of exploring the formation of a combined authority with an elected mayor, who would have only “limited powers”. It was the first time there had been a unanimous decision on those issues. They also acknowledge that Lancashire’s complex council arrangements may need to be simplified if a combined authority is formed - known as “local government reorganisation”.

July 2020 - Preston City Council proposes to the government a merger with South Ribble, Chorley and West Lancashire - but just a day later, the latter three suggest a shake-up that excludes Preston.

September 2020 - Lancashire County Council proposes to government the abolition of all 15 local authorities in the county and their replacement with three ‘standalone councils covering Central Lancashire (based on the footprints of Preston, Chorley, South Ribble and West Lancashire councils), North West Lancashire (Blackpool, Fylde, Wyre, Lancaster and Ribble Valley) and East Pennine Lancashire (Blackburn with Darwen, Burnley, Rossendale, Hyndburn and Pendle).

July 2021 - then Prime Minister Boris Johnson promises to “rewrite the rule book” on devolution, seemingly offering places like Lancashire the chance to strike bespoke devolution deals with the government.

January 2022 - all 15 councils agreed the first detailed blueprint for devolution in the county, but now once again minus an elected mayor and local government reorganisation. Proposal for a £5.6bn transfer of funding to the county’s control.

February 2022 - Lancashire not named in a list of the next nine areas with which the government intends to pursue devolution discussions. The Levelling Up White Paper sets out three ‘levels’ of devolution deal - with the most extensive ‘level 3’ agreements requiring the creation of an elected mayor.

November 2022 - launch of “Lancashire 2050” vision, setting out key priorities for the county and seen as a springboard for devolution discussions.

June 2023 - the government sets a turbocharged timetable for doing a deal with Lancashire, with the aim of forming a combined county authority (CCA) made up of the three top-tier councils: Lancashire County Council, Blackpool Council and Blackburn with Darwen Borough Council. Discontent amongst some district leaders who claimed that they had been locked out of the process.

November 2023 - government publishes level 2 devolution proposal for Lancashire and the deal is provisionally signed – pending the outcome of a public consultation and ratification by the three councils involved – at a special ceremony at Lancaster Castle.

The top-tier authorities do ratify the draft deal, but eight of Lancashire’s 12 district councils - all Labour or coalition controlled – call for a rethink of the agreement.

January 2024 - Chorley and South Ribble councils vote to refuse to support the proposed deal.

March 2024 – results of the public consultation are published showing that support for each of the deal’s eight categories exceeded 50 percent amongst the almost 1,900 respondents. Support was particularly strong from the business community.

The top-tier authorities approve a slightly-tweaked version of the deal, addressing some of the concerns expressed in the consultation – including by pledging to ensure “representation from district councils in the governance structures” of the CCA. The Labour opposition group votes against the deal after its own amendments calling for continued district control over the UK Shared Prosperity Fund are rejected.

The deal is sent back to the government to start the process of passing it through Parliament – with the aim for the CCA to be in place by the autumn.

May 2024 – a general election is called and the regulations to bring the deal into force fail to make it through the two-day ‘wash-up’ period before Parliament is prorogued.

Lancashire County Council officials say they are in discussions with Whitehall officials over the implications for the deal, as the Local Democracy Reporting Service reveals the Department for Levelling Up, Housing and Communities regards the deal as a matter for the next government.