The Ministry of Housing, Communities and Local Government published The Devolution White Paper (the White Paper) on 16th December 2024.  

Various methods of deepening devolution are proposed by the government  and represent matters which, subject to consultation, the government plans to incorporate within an English Devolution Bill, which is expected in 2025.  

In this insight, we detail the fundamental underlying strategic and reorganisation proposals made in the White Paper, along with some of the general proposals made by government  

The government asserts that in general terms, the English Devolution Bill will enshrine the new “Devolution Framework” in statute, will move to systematic devolution by making it easier to grant new powers (including adding new functions for Mayoral Strategic Authorities),will create more simple devolution processes, will unlock local decision-making and will empower communities.   

The substance of the proposals to support those outcomes is summarised in the following sections of this article. First, a summary of the newly proposed “Strategic Authorities” and reorganisation of local government, and new arrangements to support Mayors. Second, we provide a summary of general proposals relevant to local authorities.   

Section 1 - Strategic Authorities and Local Government Reorganisation 

Strategic Authorities 

The Government is proposing to create the concept of “a Strategic Authority” by law, with deepening levels of duties and powers.  The other devolution proposals detailed in the White Paper are predominantly by reference to the “Strategic Authority” so it is important to understand this new concept.  The lower level will be “Foundation Strategic Authorities” which will include non-mayoral combined authorities and combined county authorities automatically and any local authority designated as a Strategic Authority without a Mayor. The mid-tier will be “Mayoral Strategic Authorities”, which will be designated as “Established Mayoral Strategic Authorities” if certain strict eligibility criteria is met, including a published Local Assurance Framework and no evidence of accounting concerns. 

The ambition is for full devolution coverage across all parts of England but with all parts of England eventually having an Established Mayoral Strategic Authority. The government considers that certain Mayoral Combined Authorities are already “Established” but proposes to engage with other authorities which it considers to be “Mayoral Strategic Authorities” with a view to becoming Established Mayoral Strategic Authorities. Only Established Mayoral Strategic Authorities will have access to the Integrated Settlement.  

In general terms, future devolution will be set against certain criteria including: 

• Geography; no “devolution islands”;  

• Effective delivery of functions (including newly created ones);  

• Alignment with other boundaries and public sector boundaries and local identity.  

The government has invited places without devolution agreements to come forward with proposals by September 2024 and intends to group areas at similar stages of progress, prioritising those minded to work towards mayoral models of devolution and, ahead of the English Devolution Bill, the government will bring forward areas ready to move quickly through a new Devolution Priority Programme. This will be for places that are able to come together under sensible geographies which meet the criteria and where they are ready to achieve mayoral devolution at a pace. Those fast tracked areas will be announced in due course.  

The government will legislate for a ministerial directive to enable the creation of Strategic Authorities in any remaining places where local leaders have not been able to agree how to access devolved powers. The government will conclude the process where there is majority support or where formation is essential in completing the roll out of Strategic Authorities in England. 

Strategic Authorities will have a defined list of competencies, which are to be the subject of consultation but may include Transport and Local Infrastructure; Skills and Employment Support; Housing and Strategic planning; Economic development and regeneration; Environment and climate change; Health well-being and public service reform; and public safety. In addition, specific functions will be exercisable only by the Mayor. Established Mayoral Strategic Authorities will be also able to propose additional functions for consideration.  

This proposal is accompanied by extensive proposals to expand and strengthen the duties and powers of elected Mayors which will include adjustments to voting powers.  In Mayoral Strategic Authorities, a majority votes which includes the Mayor will be required to approve decisions on the use of most functions. 

There is a proposal to remove the power of veto of constituent councils. 

Local Government Reorganisation 

The government will facilitate a programme of local reorganisation for two-tier areas and for unitary councils where there is evidence of failure or where their size or boundaries may be hindering their ability to deliver sustainable and high quality services for their residents. The government commit to deliver this process as soon as possible, including through legislation where it becomes necessary to ensure progress.   

The government expect all two tier areas and smaller or failing authorities to develop proposals for reorganisation, and commit to taking a phased approach to delivery, taking into account where reorganisation can unlock devolution, where areas are keen to proceed at pace or where it can help to address wider failings. 

New unitary councils need to be the right size to deliver efficiencies, improve capacity and withstand financial shocks. For most areas, this will mean creating councils with a population of 500,000 or more but there may be exceptions on a case-by-case basis.  Government intent is clear: 

 “We will prioritise the delivery of high quality and sustainable public services to citizens and communities above all other issues. We will sequence these reforms alongside our devolution ambitions for each area”… “all levels of local government have a part to play in bringing improved structures to their area through reorganisation”… “ We expect all councils in an area to work together to develop unitary proposals that are in the best interest of the whole area, rather than developing competing proposals. We will also expect all councils in an area to work with us to bring about these changes as swiftly as possible”.

A robust approach by government in this context should be anticipated and it has committed to working with local leaders to explore support they may need to develop robust proposals and to implement new structures, including taking decisions to postpone local elections. The government also promise to consider which governance models would best support their decision making!  

The government proposes to write to council leaders as soon as possible to formally invite proposals, setting out information on the criteria for sustainable unitary structures, how and when to submit proposals and how the government intends to respond to those proposals.  

“We are clear that reorganisation should not delay devolution so we will work closely with areas on complementary plans and we will deliver an ambitious first wave of reorganisation in this Parliament”.  

Support for Mayors 

The government proposes to devolve more powers and functions to Strategic Authorities, in particular to Mayoral and Established Mayoral Strategic Authorities. In recognition of increased Mayoral responsibilities, the government proposes to legislate so that Mayors may appoint and remunerate (specialist) “Commissioners” who would be able to support the delivery of key functions. They would not be members of the Strategic Authority and roles would be expected to reflect the proposed areas of competence, such as a Transport Commissioner. Mayors would determine the associated portfolios. In certain circumstances, the function itself may be fully delegated. This is to complement the current approach of mayoral appointments of political lead portfolios to local authority members.  

The government proposes to limit individuals from being an MP and a Mayor simultaneously. 

Section 2 - General proposals of interest: 

• Making the collection and distribution of local data a priority.  There is a proposal to work with local government and data experts to develop a comprehensive vision for local data to coordinate the range of initiatives under one coherent long-term plan. This includes the establishment of a new Mayoral Data Council to integrate senior data leaders from Mayoral Strategic Authorities into central decision-making. 
• The re-alignment of public authority boundaries so that over time, public services are delivered over the same areas as Strategic Authority areas. The long- term aim is for public service boundaries including those of police, probation, fire and health services to align with those of the Strategic Authorities. 
  1. The enhancement of the powers of local authorities to address challenges facing their areas including strengthening their ability to take over the management of vacant residential premises and introduce large selective licensing schemes to improve conditions in the private rental sector, without Secretary of State approval. 
  2. Giving local authorities greater control over the location of local establishments to support healthier lifestyles, improved socioeconomic outcomes and high street vitality  
  3. Funding Reform - in future the government will provide multi- year funding settlements giving local authorities the certainty they need to plan ahead 
  4. New central and local government partnership arrangements- a fundamental reset is proposed in relation to housing (reducing Right to Buy discounts)/Prevention and Reform (a more preventative approach to public service delivery) 
  5. The proposed ending of micromanagement by central government by: 
• Reforming the use of funding pots so that where possible, resource funding for service delivery is consolidated into the Local Government Finance Settlement and capital-focused growth funds will be rationalised moving away from competitions. Consolidation into Integrated Settlements will form part of these arrangements. 
  1. Streamlining and rationalising the reporting requirements relating to grants to allow focus on priority local outcomes 
• Reviewing requirements to seek Secretary of State consents to use certain powers and to remove those requirements unless absolutely necessary. This includes an intention to remove requirements for Secretary of State consent to create byelaws where possible. 
  1. The Local Audit System will be fundamentally reformed to restore government standards, ensure transparency, and to give greater clarity on the purpose of audit and accounts, to ensure that they take centre stage in local scrutiny. The Office for Local Government is to be closed. There is an intention to legislate to radically simplify the system bringing as many audit functions as possible into one body which will also offer insights drawn from audits. The government will “shortly” engage with the sector and key audit stakeholders on how best to move the related functions. 
  2. Proposals to consult in relation to amending the Localism Act 2011 to give greater powers to local authorities and to improve standards in local government including the possible creation of a mandatory code of conduct; a requirement for formal Standards Committees; the creation of a national body to deal with the most serious cases and appeals; powers of suspension of councillors; powers of disqualification of councillors (including immediate disqualification if serious misconduct); interim suspension. 
• The current accountability system is guided by the English Devolution Accountability Framework and Scrutiny Protocol. The government proposes the creation of a single streamlined accountability framework for Established Mayoral Strategic Authorities, by reference to outcomes associated with their Integrated Settlement aligned to national priorities and local economic concerns.  This is to ensure transparency. In addition, the government proposes to review other elements of accountability including a review of the Scrutiny Protocol and external scrutiny for value for money on local public spending.  
• The government wants to work with local authorities to consider the best way to provide resource funding to Strategic Authorities eg. via the Local Government Finance Settlement, in line with the Devolution Framework. 
• Mayoral –led partnerships will be supported and the working by Strategic Authorities with Arm’s Length Bodies, third party providers and government departments where necessary will be encouraged and facilitated. 
• With the aim to deliver 1.5m homes during the next 5 years, the government will support Strategic Authorities and Mayors with a range of new powers. This includes the requirement to produce Spatial Development Strategies (SDS) (akin to the London Plan) and will apply to all areas with or without a Strategic Authority. The Spatial Development Strategies will guide development for the Local Planning Authorities (LPAs) in the requisite area. The intention is to keep the contents of SDS at a high-level thus preserving detailed policy and site allocations for LPAs their local plans. This will naturally require collaboration amongst the LPAs requiring them to work together to assess and prioritise their housing need and guide development across larger geographical areas.  
• In addition to existing powers (such as powers to establish mayoral Development Corporations and apply compulsory purchase orders) Mayors will be given new development management powers (akin to the mayor of London) to call in planning applications of strategic importance. Alongside this Mayors will have the ability to set and charge a Mayoral Community Infrastructure Levy, this will help to ensure that new developments come with the necessary associated infrastructure 

Extensive consultation will now ensue on these proposals.  The government expressed its commitment to updating the Devolution Framework over time, and to consider proposals raised with it at the Mayoral Council from existing and new Mayoral Strategic Authorities ahead of the Devolution Bill getting Royal assent.  

The government anticipates publication of the English Devolution Bill in 2025.  

How can Capsticks help? 

Our second insight“The English Devolution White Paper explained, Part 2” provides further information about the specific proposals in the White Paper.  

Members of our experienced Local Government team can support and guide you with advisory related work, real estate work, employment and commercial contracts (including procurement) and assist with your ongoing legal requirements in advance of the publication of The English Devolution Bill and subsequent legislation.  

If you have any enquiries in relation to the launch of the White Paper, devolution generally or any other matters please contact Tiffany Cloynes or Rebecca Gilbert.