The government’s English Devolution White Paper, outlining an ambitious vision to transfer power from Westminster to local regions, has been met with some concern, with fears expressed that devolution could end up centralising power rather than localising it.
Speaking to the BBC, leader of Tandridge District Council in Surrey, Catherine Sayer, said: ‘I wouldn’t want to see the close community connections and accountable local councillors that we have here in Tandridge watered down by creating mega councils where the views and the hopes of local people are drowned out. I am concerned that it’s rushed and we have to get this right.’
The plan, which aims to streamline local government structures, enhance service delivery and empower communities, marks a significant step towards the government’s stated aim to rethink governance to better reflect the needs and ambitions of England’s diverse regions. Whatever the impact, it will be a transformative redistribution of political, economic and social power.
Strategic authorities will reflect regions’ identities and address their unique challenges
The plans
The government’s ambition to establish strategic authorities (SAs) across England is designed to reflect regions’ identities and address their unique challenges. Where local progress towards establishing these authorities is insufficient, ministerial directives may be used to accelerate the process.
To ensure consistency, the government will legislate a framework defining powers and responsibilities for each authority type.
Mayors will play a key role in leading the SAs, with expanded powers and streamlined decision-making processes. Funding mechanisms will include integrated settlements, consolidating budgets for housing, transport, skills and employment support into a single fund.
England’s regions will be positioned as leaders in sustainable development
In the case of transportation and infrastructure, similar to the successful models deployed in London and Greater Manchester, mayors will be able to take greater control of bus services and rail networks, integrate transport systems for improved connectivity and coordinate road networks in partnership with councils.
In terms of economic growth and skills, SAs will lead efforts to address regional labour market needs, strengthen education-to-employment pathways and promote innovation. By aligning skills development with economic strategies, these efforts aim to foster sustainable growth.
As for housing and planning, SAs will be charged with overseeing the delivery of 1.5 million new homes, supported by new planning powers and funding mechanisms. Housing should align with broader regional development goals through collaboration with Homes England.
In areas where reorganisation is essential, local elections have been postponed to May 2026
SAs will also will be involved in advancing net-zero targets, managing local heat networks and implementing Local Nature Recovery Strategies. As such, England’s regions will be positioned as leaders in sustainable development.
Finally, the government aims to improve efficiency and accountability by aligning public services with devolved governance. Mayors will increasingly take responsibility for functions such as policing, fire services and health improvement, fostering integrated service delivery.
Next steps
In January the government invited proposals to establish unitary authorities in two-tier areas and smaller unitaries. Interim plans should be submitted by March 2025, with implementation targeted for April 2027 or April 2028.
Councils are being encouraged to collaborate to develop proposals that reflect the interests of entire areas rather than submitting competing bids. Proposals must be aligned with the principle that unitary authorities typically serve populations of 500,000 or more, with exceptions considered for local circumstances. However, there has already been resistance to what is considered by some councils to be too large a population size for the new unitary authorities
Areas deemed ready to progress are being prioritised for devolution under ‘sensible geography’ criteria. In areas where reorganisation is essential to unlock devolution, local elections scheduled for May 2025 have been postponed to May 2026 – that is, in East Sussex, West Sussex, Essex, Thurrock, Hampshire, Isle of Wight, Norfolk, Suffolk and Surrey. In addition, the government this month announced six new areas expected to elect mayors in May 2026: Cumbria, Cheshire and Warrington, Greater Essex, Hampshire and Solent, Norfolk and Suffolk, and Sussex and Brighton.
However, half of the requested areas will not have to delay elections – including councils in Cambridgeshire, Derbyshire and Nottinghamshire.
It is estimated that more than 100 councils could be abolished by 2027
The government has pledged to work closely with sector partners to minimise costs and reduce reliance on external consultants. Robust planning, evidence-based proposals and phased implementation will be prioritised, with the aim of making transition seamless and to maintain service quality.
Major challenge
The challenge of this major local government reorganisation cannot be underestimated. The last reorganisation was over 50 years ago, and took years of advanced planning and negotiations. It is estimated that more than 100 councils could be abolished by 2027. It will require the concerted efforts of all local councillors and their officials to look creatively at new unitary boundaries and to work at pace to achieve the timescales set out by the government.
Senior finance leaders will have significant roles in this reorganisation to bring together finances from legacy organisations. It is unclear how much support the government will provide to new unitary authorities for any legacy financial burdens and debts inherited from existing balance sheets.
The government is calling on councils, local leaders and stakeholders to collaborate to make the plans a success.
However, writing in the Local Government Chronicle, the chief executive of the Centre for Local Economic Strategies, Sarah Longlands, points to the unintended consequences of the plans. ‘Local government reorganisation, including the abolition of districts, sounds straightforward in principle but in practice is a highly complex and expensive process as areas such as Cornwall, Cumbria and North Yorkshire can attest,’ she says.
‘There is a tension between the government’s objective to oversee a new era of insourcing with the desire for efficiencies of scale in governance, particularly in areas such as adult and social care. Unintended consequences may include larger contracts leading to higher levels of economic extraction.’
Actions
To prepare for this transformative process, councils are encouraged to:
- assess their readiness for reorganisation and/or devolution
- collaborate with local partners, MPs and neighbouring councils to create cohesive strategies
- attend Baroness Taylor’s guidance webinar to gain further clarity – details will be released in due course.
