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

To recap, various methods of deepening devolution have been proposed by the government. The fundamental underlying strategic and reorganisation elements of those proposals and some other general proposals made by government were detailed in our article “The Devolution White Paper explained, Part 1”.  

This insight provides a more detailed review of the proposals for devolution which the government made for specifically identified areas such as “Funding and Investment” and “Transport and Infrastructure” in the White Paper.   

Collectively, these key and far reaching proposals represent matters which, subject to consultation, the government plans to incorporate within an English Devolution Bill, which is expected in 2025.  

The government asserts that in general terms, the English Devolution Bill will enshrine the new “Devolution Framework” (summarised below) 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.

Overview of the Devolution Framework by reference to the key areas detailed in the White Paper 

There is extensive detail in the White Paper, but a summary of key proposed reforms to the following areas is set out below: 

• Funding and Investment 

There will be Integrated Settlements for Established Mayoral Strategic Authorities. The scope of the Integrated Settlements will be confirmed at each Spending Review on the basis of functional responsibilities and by a formulaic process, and with a streamlined, overarching assurance and accountability framework. 

There will be a simplified (different) funding landscape for Foundation and Mayoral Strategic Authorities, including, for Foundation Strategic Authorities dedicated local growth allocations with lighter-touch investment sign-off, and, for Mayoral Strategic Authorities, consolidated funding pots covering local growth, place, housing and regeneration, non-apprenticeship adult skills and transport. Mayoral Strategic Authorities will also continue to benefit from 30 year investment funds.  

There will be a movement away from competition and a recognition of the centrality of Strategic Authorities for economic growth.  

• Transport and Local Infrastructure 

All Strategic Authorities will be required to implement a Local Transport Plan.  

Via the Integrated Settlement Established Mayoral Strategic Authorities will benefit from local transport funding streams including City Region Sustainable Transport Settlement Funding for eligible authorities, and Foundation and Mayoral Strategy Authorities will benefit from greater funding consolidation, autonomy and flexibility for places.  

Strategic Authorities will play a key coordination role in their local road network, with extended functions and powers, although responsibility for local roads will remain with the constituent authorities. 

Local Transport Authorities will be empowered to regulate on-street micromobility schemes and there is a plan to devolve approvals for stopping-up orders. 

Mayors will have statutory role associated with the governance management and development of the rail network. There will also be engagement with Strategic Authorities in relation to the national rail planning process. Established Mayoral Strategic Authorities will have the right to request further rail devolution, in accordance with guidance to be published. 

The government intends to devolve further powers, but at the outset, The Buses Bill will empower all Local Transport Authorities to decide whether to pursue bus franchising and The Department of Transport will publish updated franchising guidance.  

• Skills and employment support 

Subject to necessary legislation, the government plans to establish joint ownership of the Local Skills Improvement Plans model involving Strategic Authorities and the designated Employer Representative Bodies to work with Skills England. Strategic Authorities will have a veto over the designation by the Secretary of State for Education’s choice of the Employer representative.  

The government proposes to align Local Skills Improvement Geographies with Strategic Authority geographies where possible.  

Mayoral Strategic Authorities will have a role in improving education and training for 16-19 year olds and in relation to employment provision. There will be associated grant funding. 

• Housing and strategic planning – Spatial Development Strategy Requirement 

Mayors in Mayoral Strategic Authorities will be empowered to develop and propose the Spatial Development Strategy for their areas, working with Strategic Authority members and those strategies will be approved with a majority of constituent members. In cases of deadlock, the Mayor will have a casting vote, and where a threshold for agreement cannot be reached, Mayors may refer the proposal to the Secretary of State for a decision. 

In Foundation Strategic Authorities, there will also be a requirement to produce a Spatial Development Strategy. There are powers of intervention available to the Secretary of State.  

Areas without Strategic Authorities will also need to produce Spatial Development Strategies (SDS) pursuant to directions to be issued through the forthcoming Planning and Infrastructure Bill. 

Mayoral Powers: Once the Spatial Development Strategy is in place, Mayors will also have powers to intervene in planning applications of potential strategic importance and to support the delivery of strategic infrastructure projects Mayors will have powers to raise a Mayoral Community Infrastructure Levy. Mayors will continue to have powers to apply compulsory purchase orders and to establish Mayoral Development Corporations. The government will review whether the relevant Local Planning Authority consent will be required. Overall, Mayors powers in relation to strategic planning and development will be strengthened.  

There are proposals to extend “Strategic Place Arrangements” with Homes England to also include Mayoral Strategic Authorities and over time the government wants to move towards full devolution of funds and delivery for affordable housing. As an interim step, Established Mayoral Strategic Authorities will be given the ability to set the strategic direction of any future affordable housing programme in their area, including shaping the tenure mix and identifying priority sites for housing development to be supported by grant. There will be a clear approach to ensuring responsibility of Homes England to the Mayors and a clear framework on specific decisions which the Mayors may take. This is a pro-active function.  

In all cases SDS will guide development for Local Planning Authorities in the area and their local plans will need to be in general conformity with the Strategic Development Strategy, but the government highlighted that LPA’s are not to delay development of Local Plans.  All SDS will include an obligation to apportion an assessment of the housing need of the Strategic Authority across its constituent members.  

The government anticipates that the content of the SDS will be high level with the purpose of preserving detailed policy and site allocations for LPAs through their local plans, and to enable the swift production of SDS.  

 An anticipated timetable for production of the SDS is not detailed. There will be further resourcing implications for local authorities as this applies to all local authorities. The successful overlap with the production of Local Plans will be challenging.  

• Economic Development and Regeneration 

There is to be strong partnership working between national and regional actors to support productivity and growth involving input by The Department for Business and Trade (DBT) which includes the publication of a Small Business Strategy in 2025, including more devolution and a strengthened role for Mayors.  This Small Business Strategy will also set out detail of a new Business Growth Service to work with local government.  

It is intended that the DBT will work with Mayoral Strategic Authorities and local partners to roll out a growth programme to high growth businesses in other Mayoral Strategic Authorities, and to continue to integrate Growth Hubs into Mayoral Strategic Authorities, with funding forming part of the Integrated Settlement. 

There are to be proposals surrounding innovations relating to Research & Development and innovative industries, which will include the development of a regional innovation funding programme with Established Mayoral Strategic Authorities; the publication of relevant data and greater engagement. 

There is recognition of the culture, heritage, sport and visitor economy and there will be devolution of levers of growth in these sectors to align with Local Growth Plans. There will also be a new National Youth Strategy published next year.   

• Environment and Climate Change 

The government expresses commitment to working with Strategic Authorities to drive progress on the green transition. Strategic Authorities will be crucial partners in achieving the government’s clean power mission to transform Great Britain to a low-cost, clean power energy system by 2030 and in implementing the Warm Homes Plan to save households money.  The government will ask Great British Energy to work with local government through the Local Power Plan to support the roll out of small medium renewable energy projects at local level. 

Funding for warmer homes and greener buildings will form part of the Integrated Settlement for 2025/2026. Scope will be extended to other Established Mayoral Strategic Authorities over the course of this Parliament.  

The National Energy System Operator will engage with Strategic Authorities as it develops Regional Energy Strategic Plans and will provide a route for local insight to inform energy system planning.  

Over time the government envisages Strategic Authorities will be appointed the Local Nature Recovery Strategies responsible authority (where they are not already). 

Future opportunities for devolution and partnership working will be explored with Strategic Authorities in areas such as water management, flood resilience, the circular economy and pollution. There will be exploration of Strategic Authority and Mayoral input to responding to the impacts of climate change and routes for local decision making. 

• Health, Wellbeing and Public Service Reform 

The government considers that Strategic Authorities have a key role to play in taking action, particularly on the social determinants of health through the exercise of their functions in areas such as transport, housing and planning and through working with other local leaders to move away from traditional service delivery. The government is introducing a new bespoke duty in relation to health improvement and health inequalities ensuring that Strategic Authorities have regard to the need to improve health, and the need to reduce health inequalities in the exercise of their functions and to give them a clear stake in improving local health outcomes.  

The government will engage Strategic Authorities, Local Authorities and the NHS to take this forward.  

The government expects Mayors (or a delegate) to be appointed to one or more relevant Integrated Care Partnerships in their local area, and there are proposals relating to governance. 

The government is considering the powers and levers that should be made available to Strategic Authorities to support delivery of improvements in health outcomes and maximise impact on the health and growth missions.  

Strategic Authorities will collaborate with councils to deliver reform and innovation, as they have the geographical footprint to coordinate strategic priorities and bring together disparate parts of the public sector. Strategic Authorities will also enable and support local authorities by bringing together public service providers and other stakeholders to drive people-centred services. 

To complement the convening role that Mayors will have, the government will work with the sector to identify where else Mayors can add value, including considering the devolution of any funding relating to public service reform and prevention.  

• Public Safety 

Strategic Authorities have existing roles to support the government’s “Safer Street Mission” but the government propose to further enhance Mayoral powers to complement the role of local authorities.  

Where mayoral geographies align with police force and fire and rescue geographies, Mayors will, by default (rather than by Order of The Secretary of State) be responsible for exercising Police and Crime Commissioner and Fire and Rescue Authority Functions. Alignment with public services boundaries will therefore be a key consideration when negotiating new Strategic Authorities. The government adds “Where Strategic Authorities do not currently align with these boundaries, or where alignment is not appropriate for new devolution areas, we will take steps to ensure alignment over the longer term”.  

The government will also explore extending the scope of a single Mayor across two or more police forces or Fire and Rescue Authorities where this would result in coterminous boundaries. 

There is an intention for the government to work with Mayors to explore how their skills, employment support, health and housing levers can better support rehabilitation and reintegration of offenders. There is a proposal in the longer term for a greater alignment of probation boundaries in England with Mayoral Strategic Authorities.  

Finally, there is an ongoing review of national resilience and the government may amend the Civil Contingencies Act 2004 to recognise Strategic Authorities as a categorised responder.   

Strategic Authorities will be busy! 

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? 

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 direct them to Tiffany Cloynes or Rebecca Gilbert.