Devolution deal: elected mayor could bring in new charges for residents
COUNTY COUNCIL DEBATE ON PROPOSAL TONIGHT
AN East Midlands elected mayor could have the power to introduce new charges to residents and businesses, as well as an additional Council Tax charge, as part of a ground-breaking £1.14 billion devolution deal. The proposed East Midlands Combined County Authority (EMCCA) would join together Derbyshire and Nottinghamshire county councils, as well as Derby and Nottingham city councils, under an elected mayor, with the promise of greater devolved powers and an income stream of £38 million a year over 30 years.
However, draft plans due to be discussed by Derbyshire County Council (DCC) in a meeting this evening show an elected mayor could also have the power to impose a supplement to business rates and levy to residents, in addition to the previously reported Council Tax precept.
A spokesman for the authority said: “In our initial bid to the Government, we have asked for everything that is potentially on offer – including the powers to raise money through precepts and levies – as we don’t want to rule anything out at this early stage.
“It is too soon to say what might be used and how, but of the nine existing mayoral combined authorities, eight have a precept raising power but only two have ever actually used it. It is a possible option, not a foregone conclusion.”
Levies imposed by other combined authorities typically cover issues such as infrastructure and transport. The East Midlands deal would include an extra £16 million for new homes on brownfield land and control over a range of budgets such as adult education.
The spokesman continued: “There is still a lot to be agreed, and this is very much the beginning of the journey. We’re determined to build on this deal over time, as other parts of the country have done.
“We believe that devolution is right for our region and will help us build a better local economy to benefit residents and businesses alike.”
Government funding has been locked down to cover the costs of the deal in 2023/24 and 2024/25, after which it is anticipated the EMCCA would be funded through continued Government support or contributions from the councils that make up the combined authority. In the meeting this week county councillors will decide whether to progress to the public consultation stage of the project, which if agreed would take place between November 14 this year and January 9, 2023.
Derbyshire Dales District Council has said it will use the consultation phase to weigh up the benefits of the deal, and then indicate whether or not they are in support.
A spokesman for the district council said: “We welcome the additional investment and opportunities promised by government in the devolution deal and the involvement of districts and boroughs as non-constituent members of the new combined authority. We now need time to study the deal in detail before responding formally as a council.
“This will happen during the scheduled consultation period in October and November.”
If the devolution deal is formally approved, the Government would pass legislation bringing a new mayoral county combined authority for the East Midlands into existence. The first election for a regional mayor for Derbyshire, Nottinghamshire, Derby, and Nottingham would be in May 2024.