Devolution, Devolution, Devolution

The Ministry of Housing, Communities & Local Government has published the long awaited English Devolution White Paper which introduces the biggest shake up to local government in decades.

This view has been reinforced by the Deputy Prime Minister, Angela Rayner, who has stated “If we are going to build an economy that works for everyone, we need nothing less than a completely new way of governing – a generational project of determined devolution…Devolution will no longer be agreed at the whim of a Minister in Whitehall, but embedded as a default into our country’s constitution”.

The Devolution White Paper lays out a vision for a more decentralised England, giving local authorities and Mayors more freedom to influence the future of their areas. Mayors will get greater powers, especially in areas like local transport, housing, and economic growth. The strategy will be delivered over the course of this parliament.

Whilst there is much to digest within the Devolution White Paper, we have outlined the key changes below.

1. Creation of Strategic Authorities

• The introduction of a new three tier devolution framework.
• Primary legislation by way of the English Devolution Bill will set out the powers to create universal coverage in England of Strategic Authorities.
• Strategic Authorities will have a defined list of areas of competence including, housing, transport, local infrastructure and skills/employment support.

Strategic Authorities will belong to one of the following levels:

• Foundation Strategic Authorities – this will automatically include existing non-mayoral combined authorities and combined county authorities, and any local authority to be designated as a Strategic Authority without a Mayor.
• Mayoral Strategic Authorities – encompassing existing Mayoral Combined Authorities and Greater London Authority. All Mayoral Combined County Authorities will automatically begin as Mayoral Strategic Authorities.
• Established Mayoral Strategic Authorities – applicable to existing Mayoral Strategic Authorities which meet specified eligibility criteria. This unlocks further devolution, most notably an Integrated Settlement.
• The default assumption is for Strategic Authority areas to have a combined population of 1.5 million or above where possible.
• The Government will consider principles such as economic geographies, current and potential travel-to-work patterns, and local labour markets when forming Strategic Authorities.

2. Additional mayoral powers and budgets

• Mayoral Strategic Authorities will opt for a simple majority voting system, which will limit the power of any single council leader to exercise a veto.

Integrated settlements

• Mayoral Strategic Authorities that are already established will receive single pot integrated settlements, akin to urban areas such as Greater Manchester and Greater London, that can be allocated in a flexible manner according to local needs.
• Recognising that not all areas may be prepared to assume this degree of responsibility, less developed Mayoral Strategic Authorities will be provided with distinct consolidated funding pots aimed at supporting local growth, community development, housing, and regeneration.
• The integrated settlement comes with a commitment to multi-year funding to help maintain financial stability and support strategic planning which will provide certainty to deliver projects and plan ahead.
• The government has also pledged to minimise competitive bidding and streamline the number of funding pots. recognising the challenges and expenses imposed on local authorities by the current framework.
• It is important to note that the Devolution White Paper does not mention fiscal devolution.

Transport and housing

• Local transport integration is getting a boost as Mayors will be granted new powers to oversee, manage, plan, and develop the rail network. Mayors will also take on powers to coordinate their road network as well as a streamlined process to take buses back into public control.
• All regions, regardless of the presence of a Strategic Authority, will be required to develop a spatial development strategy including the ability to call in strategically important planning applications.
• The Devolution White Paper emphasises that Mayors will play an integral role in achieving the government's goal of constructing 1.5 million homes.

3. Replacement of two-tier authority systems with single unitary authorities

• The aims are to streamline the diverse local government structures, promoting the transition from two-tier authority systems to single unitary authorities, especially where authorities are facing operational challenges or where existing boundaries impede effective service delivery.
• New unitary councils will be required to have populations of at least 500,000 but there may be exceptions to ensure new structures make sense for a particular area.

4. Reforming and joining up public services

• The Devolution White Paper sets out an intention to do more in respect of joining up constituent parts of public services.
• Where geographies align with Police and Crime Commissioner and Fire and Rescue Authorities, Mayors will, by default, be responsible for those services.
• The English Devolution Bill will explore the possibility of a single Mayor taking on Police and Crime Commissioner and Fire and Rescue Authority responsibilities across two or more Police Force and Fire and Rescue Authorities, where boundaries align.
• A new bespoke duty for Strategic Authorities in relation to health improvement and health inequalities.

5. Conclusion

The Devolution White Paper introduces ambition and is a big move towards giving more power to local leaders and communities throughout England.

The Devolution White Paper positions devolution as a catalyst for economic development and prosperity across all regions of England and notably, the term devolution appears in the paper over 200 times. However, the paper does not address the topic of fiscal devolution.

The establishment of Strategic Authorities serves as a fundamental aspect of devolution, and this concept will be enshrined in law to guarantee its continuance within the legislative framework.

To achieve the objectives outlined in the Devolution White Paper, the government must maintain its commitment to ongoing funding, allow for local flexibility, and effectively oversee the transfer of powers from Westminster.

The government will bring forward the English Devolution Bill which will deliver the vision within the Devolution White Paper.

6. How we can help

We will be looking into the Devolution White Paper in further detail over the coming weeks and providing further analysis.

Please do not hesitate to contact us for further advice on the Devolution White Paper or any other Local Government matters.