The noble Lord is right to say that I had omitted to respond to him on that important point. We are absolutely clear that levies should be included in the regime for the consideration of council tax levels. Levies will therefore be caught by the council tax referendum policy. We are absolutely clear that local people should be able to have their say on any proposed excessive increase in council tax, whether caused through a levy on the council or by any other reason. Certainly in Leeds,
where this has been a particular debate, we are confident that the measures proposed in that area would be possible without an increase above 2%. If a combined authority wanted to propose an increase above 2%, it would be open to it to conduct a referendum.
5 pm
The noble Lord asked specific questions about borrowing. There is no intention or plan to extend the powers of the combined authority to borrow beyond those powers that already exist for the ITA and will be transferred to the combined authorities. The funding of combined authorities outside of transport will be provided by the membership local authorities. The level at which each local authority makes its contribution will be decided by the members of that combined authority, with the default position being that the level of funding would reflect the size of the local authority.
I hope that I have been able to address all the points that have been raised today. I think we are in general agreement that establishing these combined authorities will support these councils in driving their commitment to deliver growth and prosperity for their area. That is a priority which should be at the heart of everything councils across the country do, and I commend these orders to the Grand Committee.