Decision details

Cabinet received a report seeking consent to the making an Order by the Secretary of State for Education which would transfer certain central government functions relating to the Adult Education Budget to the North of Tyne Combined Authority (NTCA).

A key element of the NTCA’s vision and its devolution deal with central government was the devolution of the Adult Education Budget for the area.  This was likely to be in the region of £22 million per annum.  The devolution of this important budget would, over time, allow the NTCA to ensure training and skills provision respond to local needs to a much greater extent than was currently the case.

The process for Adult Education Budget devolution was dependent on the Secretary of State making a legal Order to transfer the necessary statutory functions to the NTCA. The Department for Education (DfE) had now provided a draft of the Order.  It was in similar terms to Orders which had already been made for the transfer of Adult Education Budget functions to other combined authorities.

Specifically, the draft Order provided that the following functions of the Secretary of State under the Apprenticeships Skills Children and Learning Act 2009 would be exercisable by the NTCA in relation to its area:

-       section 86 (education and training for persons aged 19 or over);

-       section 87 (learning aims for persons aged 19 or over: provision of facilities);

-       section 88 (learning aims for persons aged 19 or over: payment of tuition fees).

The Order also provided for the transfer of the Secretary of State’s functions under the 2009 Act which related to the encouragement of education and training for persons aged 19 or over, and the provision of financial resources. These functions were to be exercisable by the Combined Authority concurrently with the Secretary of State.

The draft Order was in keeping with the proposals as to the Adult Education Budget devolution which were set out in the Scheme published by the constituent authorities in December 2017 as part of the statutory process to create the NTCA.  It did not propose that any of the functions of the constituent authorities were transferred to the NTCA.

The Order would be made by the Secretary of State on the basis that it would improve the exercise of statutory functions in the NTCA’s area.  As such, the making of the Order would require the consent of the NTCA and each constituent authority.

The timetable for the implementation of the devolution of the Adult Education Budget to the NTCA for 2020/21 was relatively tight.  The DfE had indicated that they were likely to require the NTCA and each constituent authority to provide its consent at some point in June. It was therefore proposed that the Chief Executive be authorised to confirm the NTCA’s consent when requested by the DfE, providing that the final draft of the Order was satisfactory.  Each constituent authority’s Cabinet was similarly being asked to authorise its Chief Executive to confirm their consent to the Secretary of State.

Cabinet considered the following decision options: to accept the recommendations set out in paragraph 1.2 of the report, or alternatively, to not approve the recommendations.

Resolved that (1) the Authority’s consent to the making of the Order which will transfer the functions relating to the Adult Education Budget from the Secretary of State for Education to the North of Tyne Combined Authority be approved; and 

(2) the Chief Executive, in consultation with the Elected Mayor, the Cabinet Member for Children, Young People and Learning and the Head of Law and Governance, be authorised to provide written confirmation of the Authority’s consent to the making of the Order when requested by the Secretary of State.

(Reasons for decision: One of the key elements of the North of Tyne devolution was the devolution of the Adult Education Budget and was included in the Scheme that was widely consulted on across the whole of the North East Combined Authority area.  The devolution of the Adult Education Budget will ensure that training and skills provision in the North of Tyne Combined area will respond to local needs.)