1. Introduction
Combined authorities represent a significant change in the local governance landscape, offering new opportunities for regional development, strategic planning, stakeholder engagement and delivery at scale. However, new opportunities also bring new challenges, particularly in establishing and maintaining robust governance structures.
1.1 What are combined authorities (CAs)
CAs are corporate bodies formed of two or more council areas, established with or without an elected mayor. They enable groups of councils to take decisions across boundaries on issues that extend beyond the interests of any individual local authority. They are legal bodies set up using secondary legislation and must be initiated by the councils involved.
For this guide, we use CA as a collective term for all types of combined authorities, including combined county authorities (CCAs). CCAs are made of upper-tier councils only, and any district or borough councils in the proposed area are not able to be members (or constituent councils, as they are known).
1.2 Who should read this guide?
Governance does not follow a one-size-fits-all approach.
Each CA faces a unique set of objectives and challenges that demand specific governance solutions. This guide explores the nuances of good governance for CAs, underscoring the subtle differences that distinguish them from other authorities and considers how governance arrangements should adapt as organisations grow and mature.
This guide is a tool for public sector practitioners and their associated stakeholders in their commitment to good governance. It provides a reference point for those beginning their journey and seeking to establish their CA and offers a detailed checklist for pre-existing CAs aiming to improve their leadership, governance, and corporate structures.
This guide provides clear, practical advice and insights to help CAs successfully navigate governance-related topics.
In this guide, we:
- define what good governance looks like in the CA context
- outline the essential components for establishing and maintaining effective governance
- provide practical tips and examples from existing CAs, illustrating successful strategies
- offer a resource library for further exploration and continuous learning.
1.3 Role of the Local Government Association (LGA)
The LGA supports CAs in developing and implementing best practice and helps identify the resources and strategies needed to foster effective governance.
This partnership aims to enhance the capabilities of CAs, ensuring they are well-equipped to meet the needs of their communities. The LGA's support extends to facilitating knowledge sharing, offering guidance, and providing tools essential for improving governance within CAs. This guide is part of the LGA’s commitment to meeting this need, enabling emerging authorities to benefit from established practices without "reinventing the wheel".
2. How the legal and regulatory framework contributes to good governance
England's local governance landscape has undergone a significant change with the arrival of CAs.
- The Government’s objective in introducing CAs was to increase cooperation among LAs, enhance local services and support economic growth. Their creation reflects a view that some matters, such as transportation, economic revival, and housing, require a joined-up approach that goes beyond the borders of single local authorities.
- CAs are established through legal agreements under the Local Democracy, Economic Development and Construction Act 2009 and, more recently, the Levelling-up and Regeneration Act 2023. This legal foundation provides the framework within which these bodies operate, granting them powers and responsibilities that vary depending on the specific agreements and orders establishing each CA.
- In March 2023, the Government introduced the English Devolution Accountability Framework, marking another milestone in the governance of CAs. The introduction of this framework underlines the need for CAs to establish good governance from the outset and then continually refine these arrangements as they take on new responsibilities. The framework states that it aims to safeguard against unethical behaviour, inadequate performance, and poor value for money. By stipulating the Government’s standards and expectations, the framework guides CAs in achieving their objectives while maintaining public trust and accountability.
- For English institutions with devolved powers, the Scrutiny Protocol lays out the main principles and practices for effective oversight and accountability. It explains how robust scrutiny methods can ensure devolved powers and resources are used transparently and responsibly. It stresses the need for a strategic, informed, balanced approach in overview and scrutiny committees to effectively hold mayors, directly elected leaders, and institutions accountable.
- The Level 4 Devolution Framework outlines the current approach to decentralising powers. It specifies the powers and functions that could be transferred as part of a devolution deal, noting that some powers may be restricted to certain types of authorities or specific geographies. The framework has four levels, each with a different degree of devolution depending on how the authority is set up and whether it has a mayor (Directly Elected Leader or DEL) and meets certain standards of eligibility and accountability:
- Level 1 involves local authorities collaborating across a Functional Economic Area (FEA) or whole county area, for example, through a joint committee, representing the initial stage of devolution.
- Level 2 is for a single institution or county council without a DEL but still covers an FEA or an entire county area, offering a basic level of devolution.
- Level 3 applies to a single institution or county council with a DEL, covering a FEA or the entirety of a county area, indicating a moderate level of devolution.
- Level 4 represents the deepest level of devolution, applicable to an established single institution or county council with a DEL in a position that meets specific eligibility and accountability criteria. This level signifies a significant transfer of powers and autonomy.
The Government has committed to constantly reviewing the framework to ensure that it remains relevant and responsive to the needs and opportunities of local governance, with the objective of facilitating tailored and effective devolution arrangements.
3. Essential components
A set of protocols, principles, codes, guidance, and frameworks outline the actions, rules, and expectations required to create and sustain good governance. These documents emphasise the importance of ethical behaviour, transparency, and responsibility and outline the actions needed for CAs to set and maintain a high level of governance, which is essential for gaining and keeping public trust.
- The English Devolution Accountability Framework explains how devolved bodies in England are held accountable. It talks about the importance of – and outlines the Government's key expectations for – checks and balances, being answerable to the public and the national government, ensuring money is well spent, and listening to local businesses in decision-making.
- The Scrutiny Protocol is the Government’s guidance for devolved institutions on overseeing and being accountable for their actions, emphasising the need for clear, ethical leadership and regular checks on performance.
- The Seven Principles of Public Life (also known as the Nolan Principles) set out ethical standards for those working in the public sector in the UK, covering values like selflessness, integrity, and honesty. These principles are meant to guide public officials in behaving ethically.
- The LGA's Model Councillor Code of Conduct 2020 provides advice for members on behaving ethically and maintaining the public's trust. It covers treating people respectfully, avoiding conflicts of interest, and being transparent about gifts and hospitality.
- Finally, the Government’s Best Value Guidance outlines the standards expected of local authorities when delivering the best possible public services. It focuses on the leadership, governance, and resource management necessary to ensure effective, efficient services that offer good value for money.
We have distilled the key themes from these documents, alongside direct feedback and input from CAs, into eight essential components that CA can use to support a culture of ethics and trust and ensure members' and officers' actions follow regulatory requirements and meet the highest standards.
When viewed alongside broader organisational objectives and values, these components create a robust framework that can steer daily operations, decision-making processes and stakeholder interactions. Actively communicating and embedding these components throughout the organisation, from strategic planning to everyday tasks, is essential for fostering a cohesive and unified approach to governance.
Case Study: West Yorkshire Combined Authority Corporate Governance Code and Framework
Like many CAs, WYCA has adopted a Corporate Governance Code and Framework that aligns with best practice guidelines. This local code outlines a commitment to seven core principles: integrity, openness, economic, social, and environmental benefits, achieving intended outcomes, capacity and capability, risk and performance management, transparency, audit, and accountability. The code outlines specific policies, codes of conduct, and procedures for regular audits to uphold ethical values, stakeholder involvement, and efficient governance.
Undertaking annual reviews of the effectiveness of governance mechanisms and controls (as described in the local code) helps the CA to outline areas for improvement, demonstrate its organisational responsibility, and foster a culture of transparency and continuous improvement within its governance framework.
3.1 Transparency and openness
Transparency and openness go beyond merely publishing and sharing information.
CAs must proactively make information accessible and understandable to the public. Being open facilitates active dialogue and scrutiny and requires CAs to embrace feedback and critique, thus promoting accountability and public trust.
Although there will be instances where CAs might need to withhold some information for commercial or legal reasons, a culture of transparency means that CAs embody openness in their daily operations and interactions.
Key requirements
- Adopting and maintaining a Publication Scheme: The Freedom of Information Act requires every public authority to have a publication scheme approved by the Information Commissioner’s Office (ICO) and to publish information covered by the scheme. The ICO has created a model publication scheme that all public authorities must use. The scheme covers the following types of information:
- Who we are and what we do: Organisational information, locations and contacts, constitutional and legal governance.
- What we spend and how we spend it: Financial information relating to projected and actual income and expenditure, tendering, procurement and contracts.
- What our priorities are and how we are doing: Strategy and performance information, plans, assessments, inspections and reviews.
- How we make decisions: Policy proposals and decisions. Decision-making processes, internal criteria and procedures, consultations.
- Our policies and procedures: Current written protocols for delivering our functions and responsibilities.
- Lists and registers: Information held in registers required by law and other lists and registers relating to the functions of the authority.
- The services we offer: Advice and guidance, booklets and leaflets, transactions and media releases. A description of the services offered.
- Example Publication Scheme: Liverpool City Region Combined Authority
- Proactively disclosing data in line with The Local Government Transparency Code. This includes financial transactions, asset utilisation, decision-making processes, and matters of local interest.
- CAs are required to publish a forward plan detailing key decisions they intend to make. This plan must be made available at least 28 days before the start of the period covered in the plan. The forward plan informs the public and stakeholders about upcoming decisions and allows for transparency and accountability in the decision-making process. Where the CA intends to make a key decision, it must publish a notice detailing how the decision relates to the CA’s functions, the specifics of the decision, the decision-makers name and title, when the decision will be made and how to request more information on these documents.
- Holding public meetings with openly accessible agendas and publishing the minutes and decisions online in an easy-to-read format and timely way encourages transparency in decision-making by allowing the public to scrutinise and understand the processes involved.
3.2 Accountability and responsibility
When a CA is established, the Government transfers specific powers to it, thus making the CA responsible for those areas. This transfer of power enables decisions to be made closer to the communities they affect, enhancing responsiveness and efficiency. Accountability means that those who have power must answer for and explain their choices and actions to the public. When accountability works well, it also enables and enhances the feedback and trust between the CA and the public it serves.
Clarity of responsibility is crucial; it involves defining specific roles and expectations – this includes understanding the difference between member and officer roles and avoiding ambiguity in who is responsible for what. While specific responsibilities can be delegated within the CA, the ultimate accountability for those decisions and actions cannot be transferred, ensuring that members remain answerable for the outcomes of delegated tasks.
Key requirements
- Establishing explicit reporting structures, including schemes of delegation with well-defined roles and responsibilities. For example, the Government's guidance on "The Role of the Senior Responsible Owner (SRO)" outlines the responsibilities and expectations for SROs overseeing significant projects. This is crucial for ensuring effective leadership and accountability in project management.
- Implementing a regular mayoral or directly elected leader’s Question Time, as outlined in the Scrutiny Protocol, to facilitate direct public engagement and provide a means for those responsible to be held accountable.
- Investment in developing a robust constitution that captures the key structures and boundaries for accountability, responsibility, and the delegation of authority to make decisions. This will be a key reference point in the event of a dispute between partners
- Regularly reviewing key documents, including the constitution. Governance protocols and guidance should be live documents that reflect evolving practice and law and should periodically be strengthened and refined (as whole documents) to ensure they stay relevant and consistent.
- Developing targets and utilising performance indicators to measure and communicate the outcomes of actions and decisions. This provides clear quantitative information that the CA and stakeholders can use to track and measure progress on delivering strategic objectives and enables members and other stakeholders to hold the CA to account.
- Incorporating regular and comprehensive evaluations of programmes and initiatives to assess their effectiveness, impact on the community, and efficiency of resource utilisation. This can be achieved by formally adopting a structured approach to benefits realisation, such as the Assurance Review Toolkit from the Infrastructure and Projects Authority, which details methodologies for categorising, planning, and evaluating benefits to ensure projects deliver their intended outcomes effectively.
- Implementing a system for addressing and learning from complaints and feedback from the public and other stakeholders, fostering trust and continuous improvement.
Case Study: West Midlands Combined Authority: The Single Assurance Framework & Project Lifecycle Process
The WMCA SAF is a guidance tool that aids sponsors through four project stages: initiation, development, approvals, and delivery. It ensures consistency in assurance, independent appraisal, and decision-making across all funding sources. The SAF aims to achieve accountability and value for money in project and programme management by setting high standards for project development, approval, delivery, and oversight.
Guidance: Reviewing Schemes of Delegation for English Authorities by the Centre for Governance and Scrutiny (CfGS)
CfGS has produced technical advice for local authorities in England. It addresses the principles of delegated decision-making, clarifying the distinction between member and officer roles and emphasising political accountability. It discusses the importance of consistent financial thresholds, political clarity, the cascade principle, accurate recording and reporting and adherence to the law.
3.3 Participation
From a governance perspective, participation is more than procedural requirements – it is about shaping the effectiveness, transparency, and accountability of decision-making processes.
The English Devolution Accountability Framework also sets an expectation that CAs ensure that decisions benefit from the input of wide-ranging views and underlines the importance of CAs communicating their roles, achievements, and decision-making processes, fostering an informed, engaged community through regular updates and direct interactions. This includes detailing these roles in local council tax bills or the requirement for CAs to organise a mayor or directly elected leader’s Question Time every three months to facilitate accountability and public engagement.
Embracing participation requires a CA to ensure that mechanisms, such as community engagement strategies, enable diverse voices, especially those less heard, to inform local priorities and the decision-making processes. Done well, participation should build public trust, support more informed and robust policies, foster community engagement, and enable more effective and inclusive service delivery.
Key Stakeholders
Different actors and organisations play a vital role in the management and functioning of CAs, from councils, including district and borough councils, residents, businesses and other elected officials such as the Police and Crime Commissioner.
- Constituent Councils: Councils that are part of the CA.
- Members: Appointed by constituent councils as voting members of the CA.
- Non-constituent Members: Those nominated as members by a body designated by the CAs. Non-constituent members are non-voting unless the voting members resolve otherwise.
- Businesses: Local and regional businesses contributing to economic development and employment.
- Residents: The local population impacted by CA policies and services.
- Other Elected and Public Sector Representatives (e.g. Police and Crime Commissioner): representing additional layers of governance and public service within the CA's area.
The impact of culture on participation in scrutiny
Statutory guidance on overview and scrutiny highlights the crucial role of organisational culture, behaviours, and attitudes in determining the success or failure of a CA scrutiny function. It emphasises the importance of creating a strong culture that supports effective scrutiny, which in turn can improve policymaking and public service delivery.
The guidance outlines strategies for establishing such a culture, including recognising the legal and democratic legitimacy of scrutiny, ensuring clear roles and focus, promoting early engagement between the executive and scrutiny functions, managing disagreements constructively, and providing necessary support and resources. It suggests that a supportive culture can lead to better scrutiny outcomes, enhancing public accountability and governance, especially in systems with a directly elected mayor.
Key requirements
- Establishing effective partnerships with businesses, educational institutions, and other public sector organisations.
- Including external stakeholder input in the scrutiny process. CAs should engage with a wide range of stakeholders, including residents, businesses, and community groups, to gather diverse perspectives and insights. This approach aims to enhance the scrutiny function's effectiveness and relevance by ensuring it reflects the needs and concerns of the wider community.
- Monitoring committee attendance and mayoral engagement. To be effective, committees require sufficient engagement and support. Holding meetings in different localities makes governance more accessible and encourages participation.
- Establishing a culture that values participation, collaboration, and feedback across various stakeholders—adopting local engagement protocols or guidelines can support this culture.
Case Study: West Yorkshire Combined Authority (WYCA): Consultation and engagement protocols
WYCA has established a consultation and engagement protocol to guide its stakeholder interactions. This protocol emphasises the importance of dialogue, aiming to influence decisions, policies, or action programs through a genuine exchange of views.
The approach is designed to be dynamic, inclusive, and GDPR compliant, ensuring that consultations are effective, accessible, and high-quality and that feedback is meaningfully incorporated into decision-making processes. The protocol encompasses six key components to ensure effective stakeholder involvement:
- Awareness and duty: Ensuring stakeholders are informed about consultation approaches and recognised statutory duties to consult.
- Formative stage engagement: Allowing stakeholder input while proposals are still developing.in development.
- Accessibility: Making consultation open, transparent, and easy to participate in.
- Planning and value: Ensuring consultations are well-managed, coordinated, and cost-effective.
- Consistent high quality: Maintaining high standards through staff training and quality control processes.
- Feedback consideration: Ensuring consultation feedback is objectively considered and outcomes communicated promptly.
Case Study: Greater Manchester Combined Authority (GMCA): Greater than its constituent parts…
GMCA comprises the Mayor of Greater Manchester, the leaders of the ten Greater Manchester councils including the Salford City Mayor, and a Deputy Mayor for Policing, Crime, Criminal Justice, and Fire. Each member is assigned a policy brief by the Mayor to lead on specific areas such as Policy & Reform, Transport, Economy, Green City-Region, and more, aiming to address the diverse needs of the region collaboratively. Assigning cross-cutting thematic portfolios to the leader/mayor of each member Council encourages them to consider the wider regional impact and needs rather than focusing solely on their local authority's immediate boundaries.
This approach fosters a collaborative mindset, ensuring that policies and initiatives are developed with a holistic view of Greater Manchester's challenges and opportunities. It also promotes regional cohesion and mutual progress.
3.4 Rule of Law
The rule of law is a crucial component, highlighting the importance of operating in an environment where the rules are known, clear, and applied equally, ensuring that no individual or entity is above the law. In practice, this means ensuring that operational activities, policy decisions, and governance practices are conducted within established and evolving legislation.
Adhering to the rule of law supports CAs in upholding democratic values, maintaining public trust, and providing a stable and predictable environment for governance. This accountability loop is vital for governance as it ensures that public officials act in the community's best interest, adhering to principles of transparency and ethical conduct. Legislation creates a stable, predictable governance environment, ensuring actions are transparent and fair and treat everyone equally under the law, which can contribute to reinforcing the integrity and legitimacy of CAs in the public eye.
Key legislation
The legislation covering combined authorities is:
- the Local Democracy, Economic Development and Construction Act 2009 : and,
- the Cities and Local Government Devolution Act 2016.
- Further provisions can also be found in the Levelling Up and Regeneration Bill 2022-23.
There is also a range of related legislative provisions for CAs' governance arrangements. These include:
- The Combined Authorities (Overview and Scrutiny, Access to Information and Audit Committees) Order 2017 (SI 67);
- Overview and scrutiny: statutory guidance for councils and combined authorities (HMG, 2019)
The role of Statutory Officers
Like many other public sector organisations, CAs are required to appoint or designate several statutory officers. These officers play a vital role in ensuring the lawful and effective operation of the authority. They have personal duties to discharge and exercise these when their authorities are experiencing particularly difficult situations or pressure on resources. The three most senior roles cover:
- The Head of Paid Service (Chief Executive) is responsible for ensuring the authority’s functions are properly coordinated, organising staff, and appointing appropriate management.
- The Monitoring Officer is responsible for monitoring the lawfulness of their authorities' actions and, if necessary, complying with their duty under section 5 of the Local Government and Housing Act 1989 to report unlawfulness or maladministration to their authorities.
- The Section 73 Chief Finance Officer is responsible for administering the combined authority's financial affairs in accordance with Section 73 of the Local Government Act 1985.
Other statutory roles include the Statutory Scrutiny Officer, the Data Protection Officer, the Senior Information Risk Officer, and the Combined Authority Returning Officer.
Key requirements
- CAs must operate within the legal framework established by national legislation and the articles of the CA’s constitution.
- CA decisions must comply with existing laws, regulations, and constitutional provisions. Therefore, CAs must ensure that decisions are informed by robust advice, including legal advice, that ensures compliance, mitigates risks and protects rights.
- Continually updating policies to reflect legislative changes reinforcing a culture of compliance and conducting training so that members and officers understand the policies which enable legal compliance.
- The CA's statutory officers - the Head of Paid Service (Chief Executive), Chief Finance Officer, and Monitoring Officer - have a defined role in guiding and informing the mayor or leader and members and ensuring that decisions are lawful and consistent with the constitution.
- Constituent councils also have an important role, providing advice to their member representatives in facilitating, informing and implementing CA decisions. This is generally not a formal role governed by the CA constitution. However, because they can carry a strong informal influence, it is important to ensure that any areas of disagreement can be properly governed using a protocol.
3.5 Strategic Vision
Strategic vision is a key to good governance because it provides a clear direction and purpose. It guides decision-making, aligns effort, and ensures adaptability. Visions motivate stakeholders, contribute to long-term sustainability, and guide what success looks like.
CAs must engage in a collective process from the outset, involving local leaders and stakeholders in defining priority outcomes. Successful visions create a shared narrative demonstrating the added value of devolution and focus on long-term regional benefits over short-term gains. CAs also operate in a political environment where contrasting strategic priorities and points of view can make it difficult for partners to agree. Voting arrangements, the constitution and supporting decision-making protocols provide a structure that should help mitigate this. However, the ability of the CA to function effectively is highly dependent on a good and constructive strategic relationship between the partners.
Partner representatives need to be aware that their constitutional responsibility to act in the strategic interests of the CA might, at times, diverge somewhat from the direct interests of their constituent council, and there will be an ongoing need to balance both the short and longer term objectives of both organisations.
Key requirements
- Initiating a devolution process that involves all stakeholders, setting a solid foundation for shared purpose and strategy.
- Develop a strategic vision that looks beyond immediate priorities, focusing on long-term regional development and prosperity. Use data to inform strategic decisions and measure the effectiveness of initiatives.
- Ensuring wide-ranging support from local political leaders, stakeholders, and the community, emphasising collective leadership and the importance of seeking consensus in decision-making where possible.
- Articulating the vision effectively, outlining its benefits, the powers to be devolved, and the geographical scope, ensuring alignment with regional economic realities. The vision should be articulated, achievable and prioritised for officers to follow.
- Aligning the CA’s financial strategy and delivery arrangements with the vision and responding appropriately to local needs, including the plans of partners and stakeholders.
- Underpinning the vision with an evidence-based, current, and realistic corporate plan enables the CA’s performance to be measured and held to account.
Guidance: The Corporate Narrative Toolkit
The LGA Corporate Narrative Toolkit offers guidance for authorities wanting to articulate their vision, values, and plans effectively. The toolkit emphasises the significance of a well-structured narrative that encapsulates the purpose, achievements, and future goals in a compelling and relatable manner. It advocates for simplicity, clarity, and truthfulness in storytelling to ensure the message resonates with a broad audience.
Through practical tips and case studies, the toolkit provides valuable insights into developing, finalising, and embedding a corporate narrative that effectively communicates the authority’s role and impact.
Key aspects include:
- Consensus vs clarity: balancing the need for wide-ranging input with the necessity of avoiding a narrative that feels overwrought or filled with jargon.
- Inclusive development process: involving a diverse group of stakeholders to ensure the narrative reflects a broad spectrum of perspectives and experiences.
- Unique and authentic storytelling: crafting a unique narrative, highlighting its specific purpose, vision, and the tangible impact of its work on the community.
- Evaluation and adaptation: regularly assessing how the narrative is embraced and applied.
3.6 Effective decision-making and risk management
To enable good governance, decision-making should be rigorous and transparent, grounded in a comprehensive understanding of all relevant factors, risks, and impacts associated with each decision. There must be a structured approach where decisions are informed by solid evidence and stakeholder engagement, ensuring every action aligns with both immediate objectives and broader, long-term aspirations.
Risk management should also be woven into the fabric of decision-making and not treated as a peripheral activity. Good risk management entails a systematic process of identifying, evaluating, and mitigating potential challenges and threats, safeguarding the authority’s objectives. It enhances the CA's resilience and adaptability, enabling it to confidently navigate uncertainties. By integrating risk management seamlessly into governance structures, CAs can ensure a cohesive approach that enhances overall performance and success, linking it closely with other governance dimensions for a holistic strategy.
Key requirements
- Develop a decision-making protocol - This brings to life critical constitutional components such as who is responsible for making decisions and how decisions are made, procedural matters (set out in the ‘standing orders’) and the role of officers.
- Establishing a comprehensive evaluation of options and risks and conducting impact assessments for decisions to evaluate potential consequences and inform better choices.
- Ensuring decision-making is evidence-based, customer and citizen-focused, and considers the needs of different groups within the community.
- Develop a comprehensive risk management framework and conduct regular risk assessments and scenario planning exercises.
- Identifying and implementing risk mitigation strategies and contingency plans.
Case Study: Developing a Decision-Making Protocol
The "North East Combined Authority (NECA) Decision-Making Protocol" aims to provide a clear and accountable decision-making process that is understood and followed by both members and officers.
Importantly, it draws together the mechanisms for all decision-making alongside 12 principles that all decisions should adhere to. Establishing a decision-making protocol enables the CA to make it easy to understand the decision-making process, with use of diagrams and examples where helpful.
Case Study: Greater Manchester Combined Authority (GMCA) Corporate Risk Framework
GMCA introduced its Corporate Risk Framework in 2020, outlining an approach towards managing potential risks and opportunities affecting the Authority's strategic objectives. GMCA’s Risk Management Framework encompasses the principles on which risk management operates within GMCA, the risk appetite of the organisation, the framework (or hierarchy) of categories of risk, risk management process (identify and assess, treat, monitor and report) and risk management tools, templates and training.
The framework relates to all strategic and operational areas, focusing on proactive risk anticipation and prevention. It enables GMCA to take a consistent approach to risk identification, assessment, and management, embedding these processes throughout the organisation. The framework also defines roles and responsibilities for all staff, emphasising collective expertise in mitigating risks.
3.7 Ethics and integrity
Ethics and integrity are foundational to good governance, ensuring that actions and decisions are conducted with honesty, fairness, and respect. This is critical for maintaining public trust and accountability. Adhering to established ethical frameworks like the Nolan Principles and the LGA's Model Member Code of Conduct 2020 guides members and officers in upholding these values, emphasising the importance of respectful treatment, transparency, and impartial conduct.
Implementing these standards strengthens the ethical culture within CAs, promoting a governance environment where integrity is paramount. Integrating these guidelines into key documents, such as the constitution, code of conduct (for members and officers), conflicts of interest policy and member and officer protocols underlines the commitment to integrity and trust in public governance, fostering an environment where ethical practices are the norm.
Key requirements
- Establish a comprehensive ethics and conduct code aligned with the Nolan Principles and informed by the LGA's Model Member Code of Conduct 2020.
- Conduct regular ethical behaviour and integrity training for all members and staff, promoting a culture of openness, respect, and ethical behaviour at every level of the organisation.
Guidance: LGA Model Member Code of Conduct
The LGA developed a Model Member Code of Conduct after extensive consultation with the sector, as part of its work to support all tiers of local government to continue to aspire to high standards of leadership and performance. This initiative was developed in response to a need for clearer guidance and consistency in the ethical standards expected of councillors throughout local government, following recommendations from the Committee on Standards in Public Life. The code of conduct specifies the behaviours and obligations of councillors. It covers areas such as treating others with respect and impartiality, avoiding conflicts of interest, and ensuring the prudent use of public resources. It applies to councillors in their official capacity and includes all forms of communication and interaction, whether face-to-face, online, written, verbal, or non-verbal.
One key aspect of the code is its emphasis on respect, bullying, harassment, discrimination, and the impartiality of council officers. Councillors are expected to not only avoid these behaviours but also to promote equality and not unlawfully discriminate against any person. The code also outlines requirements regarding confidentiality and access to information, ensuring that councillors do not disclose confidential information improperly or use their position for personal gain. It stresses the importance of using council resources appropriately and not bringing the role or the local authority into disrepute.
Case Study: Officer Code of Conduct
The "Code of Conduct for Officers" document from the North of Tyne Combined Authority (NTCA) outlines standards for officer conduct. It emphasizes the need for high ethical standards, including integrity, honesty, impartiality, and objectivity in serving the community and implementing policies. The document covers various aspects such as political neutrality, managing personal relationships, equality and diversity, and handling of the authority's property and information. It also addresses conflicts of duty, whistleblowing, and the treatment of gifts and hospitality, aiming to ensure that officers work in the public interest and maintain public confidence.
3.8 Efficiency and effectiveness
Like other authorities, CAs have a duty to plan for continuous improvement in how they perform their functions, considering a combination of economy, efficiency, and effectiveness. This covers issues such as how authorities balance their budget, provide statutory services, and ensure value for money in all spending decisions.
The latest evolution of the Best Value Duty will require authorities to show good governance, positive organisational culture, and effective risk management across all functions. Regular reviews of governance mechanisms and controls are crucial in this process. Reviews should involve assessing decision-making processes, resource allocation and achieving specific outcomes to identify areas for improvement and provide insights into simplifying operations for more efficiency and effectiveness. Part of this review process includes openness to external challenge and awareness of how the authority compares to other comparable organisations.
Constituent members also have an important role in ensuring value for money. As a CA grows, it will need to expand its team and capacity in key areas such as corporate governance and assurance, which will require more funding. Members can have a significant influence in approving the management structure and appointments, the funding mechanism, and how services will be delivered. A balance that enables the CAs to grow these corporate functions alongside their programme delivery capability must be found.
Key requirements
- Adopting an organisation-wide commitment to continuous improvement, underscored by regular monitoring, performance assessments, and updates to both corporate and improvement strategies.
- Commissioning a peer review process at minimum intervals of five years, taking swift action on recommendations provided and disseminating the findings and progress updates publicly.
- Collaborating closely with the Audit Committee and external auditors to proactively pinpoint improvement opportunities, responding swiftly and efficaciously to their suggestions.
- Establishing mechanisms for achieving an optimal balance between cost and quality in service delivery should be put in place, mindful of the available resources.
Case Study: Using Peer Review to Facilitate Continuous Improvement
In December 2022, GMCA was the first CA to undertake the LGA’s Corporate Peer Challenge. The independent review team held over 50 meetings and interviewed 155 people over three days – from both GMCA and the wider Greater Manchester system, including senior representatives from local councils, the public sector, and business, voluntary, community, and social enterprise partners.
The GMCA peer review illustrates a sector-led approach to organisational improvement and strategic delivery across various services, including transport, economic growth, health, and more. Approximately ten months following the Corporate Peer Challenge (CPC), the GMCA underwent a Progress Review, a critical component of the CPC process.
This review provided a platform for the combined authority's senior leadership to present updates on the initial progress and garner feedback. It also allowed for reflection on new challenges or opportunities that emerged since the initial review, discussion of any support needs, and examination of the early impacts and learnings from the progress achieved thus far. This structured follow-up ensures continuous improvement and adaptation to evolving circumstances, reinforcing the commitment to effective governance and strategic development.
4. Establishing and maintaining good governance
Good governance in CAs is crucial for operational effectiveness, identifying and prioritising outcomes, and maintaining public trust.
Good governance is achieved through strong leadership underpinned by clear policies, a robust framework, and a commitment to expected standards and principles enabled by training. It also requires an understanding of the unique challenges and opportunities within the combined authority area.
4.1 How governance should evolve
At different points in their development, CAs, whether emerging authorities or with a long-established history, will encounter various issues and events that may impact their governance arrangements.
CAs must adapt as they grow, and even the most established authorities should continually evaluate their governance requirements, review effectiveness, and apply a suitable method to ensure they fulfil their current obligations and are ready for future shifts and opportunities. Depending on their stage of development, CAs will have different perspectives and different requirements for governance.
We have divided this development into three phases:
- Emerging: Councils that are in the process of, or are considering, formally establishing a CA.
- Developing: New CAs that are in the process of establishing their leadership, governance arrangements and corporate structure to support the delivery of an agreed CA deal.
- Established: Existing CAs that have established leadership, governance arrangements and corporate structures in place and have been delivering the powers transferred to them under their combined authority deal for a period.
8. Resource library for good governance
In this section, we offer a resource library to enhance governance practices within CAs. In addition to the checklist below, the following resources are recommended to support CAs in deepening their understanding and implementation of good governance practices:
Guides, toolkits and resources
Guides on governance principles, toolkits for effective administration, and best practice manuals.
- The English Devolution Accountability Framework outlines the accountability structure for institutions in England with devolved powers, like mayoral combined authorities and the Greater London Authority (GLA). It sets out three primary forms of accountability: local scrutiny and checks and balances, accountability to the public, and accountability to the UK Government. This framework emphasises the importance of maintaining standards in public life, ensuring value for money, and involving local business voices in decision-making. It also discusses the role of local scrutiny committees and the need for clear communication with the public about the roles and performances of institutions. The framework is part of the broader Local Government Accountability Framework and is expected to evolve with future devolution deals.
- The Scrutiny Protocol is a document for English institutions with devolved powers, guiding how they should conduct oversight and accountability. It emphasises the need for these institutions to have robust, transparent, and ethical leadership. The protocol outlines principles for effective scrutiny, focusing on outcomes, political and geographical balance, training, and technical expertise. It highlights the importance of regular performance monitoring, stakeholder engagement, and maintaining a strong relationship with audit committees. The protocol is designed to ensure that decisions made by these institutions are accountable and transparent to both local communities and the national government.
- The Overview and Scrutiny: Statutory Guidance for Councils and Combined Authorities published by the UK Government provides comprehensive guidance on how local and combined authorities should conduct effective overview and scrutiny. The guidance, which was updated following the Communities and Local Government Select Committee’s inquiry into Overview and Scrutiny (O&S), emphasises several key aspects:
- Culture: The guidance highlights the importance of the organisational culture in ensuring the success of the scrutiny function. It should be led and owned by members, as they play a crucial role in setting and maintaining the culture of an authority. A strong organisational culture supports effective scrutiny work, which can add real value by improving policy-making and the efficient delivery of public services.
- Legal and democratic legitimacy: All members and officers should recognise the importance and legitimacy afforded to the scrutiny function by the law. It acts as a check and balance on the executive and is a statutory requirement for all authorities operating executive arrangements and for combined authorities.
- Clear role and focus: Authorities should ensure that the scrutiny function has a clear role and focus within the organisation. It involves prioritising work that is of genuine value and relevance to the wider authority.
- Engagement and managing disagreement: The guidance advises on the need for early and regular engagement between the executive and scrutiny. Additionally, it addresses how to manage disagreement effectively, suggesting the use of an 'executive-scrutiny protocol' to define the relationship and manage differences.
- Access to information: Emphasising the rights of members to access information, the guidance states that councillors should have regular access to key sources of information, focusing on performance, finance, and risk.
- Resource allocation: While the level of resource allocated to scrutiny is for each authority to decide, the guidance suggests considering the purpose of scrutiny as set out in legislation and the specific role and remit of the authority’s own scrutiny committee(s).
- Impartial advice from officers: It is essential that all officers, especially senior ones, provide impartial advice to scrutiny committees, which is fundamental to effective scrutiny.
- Communicating the role and purpose: To gain support and recognition for the scrutiny function within an authority, it's important to communicate its role, purpose, powers, and membership to all members and officers.
- Overall, the guidance focuses on creating a culture that supports the scrutiny function, ensuring it has a clear role and focus, managing engagement and disagreement effectively, providing access to necessary information, appropriate resource allocation, and communicating the role and purpose of the scrutiny function within the authority.
- The Best Value Guidance is a comprehensive guide for local authorities in England, focusing on delivering best value in public services. It outlines principles for continuous improvement, effective leadership, governance, and resource management. The guidance emphasises the importance of transparent, ethical practices, and accountability in local government operations. It also details the process for identifying and addressing service delivery failures and the various intervention models available to the government in cases of non-compliance with best-value standards. This document serves as a statutory guide to help local authorities achieve higher standards of efficiency, effectiveness, and economic management in their services.
- The Seven Principles of Public Life outlines the ethical standards for people working in the public sector in the UK. Established by Lord Nolan in 1995, these principles are a foundation for codes of conduct in public life. They guide public officeholders in maintaining high standards of behaviour. These principles include selflessness, integrity, objectivity, accountability, openness, honesty, and leadership, ensuring ethical conduct in public governance.
- The LGA’s Model Member Code of Conduct 2020 is designed to guide councillors in maintaining high standards of behaviour and public trust. It covers respect, impartiality, confidentiality, use of position and resources, and handling gifts and hospitality. The code emphasises ethical conduct, fair treatment of others, avoidance of conflicts of interest, and upholding public confidence in local government. Councillors are expected to lead by example, adhering to these standards in their professional and public roles. The LGA have published an adaptable training pack on the LGA Model Councillor Code of Conduct. The resources include a training pack that can be adapted to your council's specific needs / code of conduct and Guidance on Complaints Handling.
- The Management of Risk in Government summary on the UK Government website provides an overview of effective risk management strategies for government bodies. It highlights the value of risk management in informing business decisions, optimising resource use, and strengthening contingency planning. The document serves as a broad framework for good practice in risk management, targeting executive and non-executive board members, senior staff, managers, and risk committees. It includes guidance on establishing a conducive environment for managing risks and offers tools and techniques for risk management across government sectors.
Case studies and reports
Real-world examples and analytical reports showcasing successful governance models and lessons learned.
- 'Devolution and Mayors: What Does It Mean?' from the UK Government provides an overview of the powers and responsibilities transferred to English regions through devolution deals. It explains the roles of newly established mayoral offices in various regions, detailing the specific powers and budgets allocated to them. The site includes information on different devolution deals across regions like Cambridgeshire, Peterborough, Greater Manchester, and others, highlighting the unique aspects of each agreement.
- The 'Devolution and Good Mayoral Governance' document provides an analysis of the role and effectiveness of directly elected Mayors (DEMs) in English governance, particularly in the context of local and combined authorities. It examines the background, powers, and impact of DEMs, explores the characteristics that define "good" mayoral leadership, and discusses the accountability systems in place to ensure their effectiveness. The paper includes insights from interviews with stakeholders in mayoral governance and reviews the challenges and opportunities presented by the mayoral system, with a focus on how it contributes to local government improvement and devolution agendas.