MD2472 Mayoral Decision-Making in the GLA and GLA Financial Regulation

The “Mayoral Decision Making in the GLA” document sets out the default scheme of delegation for the exercise of Mayoral Powers within GLA Structures. The Mayor may by a Mayoral Decision form (MD) amend or give specific free-standing delegations outside that framework at any time. GLA Financial Regulations is a complementary document which sets out the GLA’s approach to financial management. The paragraphs immediately below summaries the updates made to each document. The documents were last updated two years ago.

Mayoral Decision-Making in the GLA

The following changes have been made:

• General: minor updates to improve understanding and presentation, and a refresh of job titles, organisation names and other factual references, where required;
• Part C – section 7: greater clarity provided in paragraph 7.7 as to changes to job titles for senior members of staff;
• Part E – sections 8 and 9: greater clarity provided as to planning delegations to the Statutory Deputy Mayor;
• Part F – sections 12 to 15: explanation of differences between GLA-managed and Arm’s Length Companies, and a new section covering decision-making in respect of the two recently acquired Arm’s Length companies: SME Wholesale Finance Ltd and London Treasury Limited (LTL);
• Part G – section 18: amending reporting rules on variations so that it is no longer necessary to prepare a new Decision Form where expenditure decreases, providing that the outputs, outcomes and risk are unchanged; requiring significant GLA corporate contracts to be treated as non-routine expenditure and hence requiring a decision; and clarifying approval routes for staffing costs;
• Part G: a new section setting out arrangements for decision making in respect of the Homes for Londoners Land Fund;
• Part G: a new section summarising the specific decision-making requirements for the Adult Education Budget;
• Part I: amended to reflect the new governance arrangements in place for the London Fire Brigade (LFB); and
• Appendix 1: reserved Mayoral matters – grants to functional bodies of £150,000 or more will continue to be categorised as a reserved Mayoral matter; grants to functional bodies of less than £150,000 will not be categorised as a reserved Mayoral matter (previously all such grants were).

GLA Financial Regulations

The following changes have been made:

• General: minor updates to improve understanding and presentation, and a refresh of job titles, organisation names and other factual references, where required;
• Section 7 on ‘budget transfers’ redrafted so as to provide greater clarity and improve current practices. The term ‘virement’ has been replaced by ‘budget transfer’ which is a more widely understood use of language; and
• A new Section 8 on ‘budget carry forwards’ to set out the process which should be followed across the GLA.

Both documents play a significant role in the good governance of the GLA.

There are no specific equalities issues arising.

There are no other considerations.

Financial issues are integral to the content of the two documents covered by this decision.

The Mayor may delegate the exercise of Mayoral Powers to staff of the GLA and the Statutory Deputy Mayor generally or specifically and subject to conditions under ss 38(1) and (2) of the GLA Act 1999. The “Mayoral Decision Making in the GLA” document (“MDM”) sets out the default framework of delegations in exercise of those powers.

In addition to the Mayor, certain planning powers relating to the call-in and determination of applications of Potential Strategic Importance may only be delegated to the Statutory Deputy Mayor or to one or more of the 11+2 staff appointed for that purpose. Paragraph 9.1 of the MDM sets out the Deputy Mayor posts so authorised in addition to the Statutory Deputy Mayor.

The Adult Education Budget was delegated to the Mayor by the Secretary of State for Education under s 39A of the GLA Act and precludes the Mayor further delegating decisions concerning that budget to GLA staff. This is recognised by an amendment to Category 1 of Appendix 1 to the MDM which lists matters reserved by law to the Mayor.

The MDM also satisfies good local government practice in making publicly available the list of delegations made by the Mayor.

The Financial Regulations also satisfy good local government practice in setting out the financial practices to be adopted by the organisation.