Councillors told £362k CJC “is here now and we have no choice other than to make it work”

Local councillors have officially been told although Corporate Joint Committees “might lead to ‘another layer of bureaucracy’, but it is here now and we have no choice other than to make it work“.

Last year saw four Corporate Joint Committees created in law in Wales, with the North Wales CJC formally established on 1 April 2021 and started operation more formally earlier this year.

CJC’s were controversial when created by Welsh Government, described by some as ‘back door reorganisation‘ and are regional bodies with powers such as to decide on where to build new housing developments and invest in transport across the respective areas. Locally the indirectly elected layer of government sits above all six northern authorities as well as the Snowdonia National Park.

They are full separate corporate bodies which can employ staff and hold assets, and will prepare a regional Strategic Development Plan, a Regional Transport Plan as well as doing anything which could ‘promote economic wellbeing’.

Locally Wrexham Council’s Executive Board begrudgingly accepted progress this year when the CJC began, with the Council Leader Mark Pritchard at the time saying “I don’t support them. I never have done, never will do. I don’t agree with them. I think it’s another form of bureaucracy, and that bureaucracy will come with the economy, wellbeing, planning, transport and improving education will cost us money – it will have to be funded and staffed.”

His position was echoed at the time by Cllr Hugh Jones of the Conservatives, however Welsh Labour’s Cllr Dana Davies agreed they were ‘an added layer of bureaucracy’ but said “…from an all Wales point of view is the funding is coming through centrally now from UK Government on a regional basis. It’s bypassing the devolved nations. So for us in Wales to be able to access funding for strategic planning, strategic transport, economic development, we need to be in a position to be able to access and bid for that regional funding.”

Wrexham’s councillors have now been given a briefing after the first few meetings of the North Wales CJC as four (at times brief – one clocked at just 10 minutes!) meetings have been held, a budget for 2022/23 has been agreed.

In what has become a regular theme locally with CJCs, councillors have received more official snark from Wrexham Council, with a briefing report stating: “In the past, reservations were expressed because CJCs might lead to ‘another layer of bureaucracy’, but it is here now and we have no choice other than to make it work.”

Currently the North Wales CJC has minimal staff, but will have a Chief Executive, a Monitoring Officer, and a Chief Finance Officer – with councils from North Wales putting their officers ‘a the disposal’ of the CJC for now.

As above, the council leaders are the committee members with that committee sitting above five other sub-committees – Transport, Strategic and Planning, Economic Ambition Board, Audit and Governance and Standards. Each sub committee has voting members from each council, and relevant Cabinet or Executive Board members sit on relevant committees eg. Planning / Transport.

Local councillors have been told, “In respect of the two initial duties prescribed to be discharged by the CJC, it will set the direction and priorities, and it will need some concurrent functions, while the CJC’s regional Strategic Development Plan and Regional Transport Plan will set a policy framework which the local authorities must have regard to. However, the individual local authorities will remain best placed to undertake local activity around planning and transport functions, with the CJC empowering and supporting local, regional and national delivery.”

“Planning policy managers in north Wales’ local authorities will need to work with the Strategic Planning Sub-Committee to look at delivery options and cost implications for producing the north Wales region’s Strategic Development Plan and the Strategic Planning Sub-Committee will need to make timely recommendations to the CJC in order to draft the CJC’s 2023/24 budget. ”

Those local councillors who like the oversight and scrutiny role they play will note that all member local authorities’ Scrutiny Committees can scrutinise the CJC’s work. They wont be able to ‘call in’ decisions, however councillors have been promised the CJC will “respond to scrutiny and formally consider any recommendations which stem from the process”. How that will work in practice appears yet to be decided, but again keen councillors look like they can get involved as the CJC report notes “once we’ve firmed up the options there will an opportunity for the authorities / Members to provide input.”

The cost of the CJC is outlined briefly to local councillors, with the initial levy detailed in the below table “allocated based on the relevant population”.

This appears to be a start up budget with cost implications of producing the above strategies and other work set to be firmed up for the 23-24 budget.

If Wrexham’s councillors wish to have more detailed and up to date details of the budget they can read the most current CJC meeting papers (here – and table below) that explains “….£33,330 includes the time of the Chief Executive for two days a week together with the support of the Executive Assistant for one day a week”, and points members to note there is a current “£40,000 underspend on the external consultants heading” along with an “…estimated cost of £1,500 is based on an estimate of the essential travel allowance and staff subsistence needed over the next six months, which gives an underspend of £2,500 on the Travelling heading in 2022/23”.

The local briefing document notes, “The Welsh Government have stated that their policy intention is that the CJC should be subject to the same powers and duties as principal local authorities in the way that they operate (including essentially the ability to borrow and reclaim VAT like unitary local authorities)” – with legislation set at the UK level to fix the latter issue and allow the CJC to reclaim VAT – currently something it can’t do. “Until then, the CJC will be unable to reclaim the VAT paid to local authorities or other suppliers of goods and services. Hence, it is currently 20% more expensive to receive support services from Gwynedd Council, etc. Further, as it will be more expensive to second professional staff capacity from the authorities, or to pay consultants to do that work, until this is resolved there is a disincentive to rush ahead with work on the CJC’s Planning and Transport duties.”

In the more recent details the VAT issue shows £40k has not been able to be reclaimed – and perhaps wont be ever.

The lack of progress on sorting out the legalities over the CJCs ability to borrow appears to have stalled a desire to move the Economic Ambition Board’s arrangements to the CJC “as the terms of borrowing are key to the growth deal”.

Councillors are told the desire for this to still take place is there though, “The aim is still to transfer the north Wales region’s EAB and current Growth Deal arrangements into the CJC, avoiding duplication, but this is proving to be more challenging and complex than the Welsh Government originally anticipated, and solutions to some of the issues are still a ‘work in progress’ “.

For those who wish to look deeper at the work of the CJC until a formal brand and jazzy new website is created, Gwynedd are running things via their site – you can read more here