Blog: Friday 24 January 2025 - Capsticks, Corporate Partner

Devolution Plans - The introduction of new Strategic Authorities and Reorganisation

On 16 December 2024, Government published the English Devolution White Paper introducing ambitious new government reorganisation plans to shift power from Westminster to Local Authorities by giving Councils the choice to replace their existing two-tier local authority with unitary authorities and to deepen devolution including through the introduction of a new Strategic Authority.  

On the same day, Jim McMahon, the Minister of State for Local Government and English Devolution wrote to all local authorities in England setting set out that: “At its core, this White Paper sets out how the Government will strengthen and widen the mayoral model of devolution across England. It will shift power, decision making and money away from Westminster as part of a completely new way of governing, equipping more mayors working hand in glove with confident and stable local councils with a stronger set of levers to drive growth in their communities.”

In doing so, Councils were given the opportunity to decide, by 10 January 2025, whether they wished to defer the planned May 2025 elections. If deferred, they must provide interim plans for a Unitary Authority combining County, District and Borough Councils by March 2025.

In order to bring forward some of these plans, the Government will need to publish its English Devolution Bill which will then need to be debated and take through the parliamentary process. The White Paper suggested this would come out in the first parliamentary session of 2025.

What are Strategic Authorities?

The Government proposed introducing a new concept

• Foundation Strategic Authorities: these include non-mayoral combined authorities and combined county authorities automatically, and any local authority designated as a Strategic Authority without a Mayor.

• Mayoral Strategic Authorities: the Greater London Authority, all Mayoral Combined Authorities and all Mayoral Combined County Authorities will automatically begin as Mayoral Strategic Authorities. Those who meet specified eligibility criteria may be designated as Established Mayoral Strategic Authorities. This unlocks further devolution, most notably an Integrated Settlement. This is the Government’s preferred option.

They will be given a "mandate to act strategically to drive growth as well as support the shaping of public services, where strategic level coordination adds value".

This includes new powers in terms of housing, strategic planning, transport and infrastructure, economic development, environment and climate change, health, wellbeing and public service reform, and public safety

Government’s intention is for all Strategic Authorities to be led by mayors allowing them to make strategic decisions benefitting their constituency. The plan is to give Mayors the tools they need to drive growth.

Reorganisation

In addition to devolution, the Government wants to work with the remaining two-tier areas and those unitary councils where there is evidence of failure or their size or boundaries may be hindering their ability to deliver sustainable and high-quality services to their residents.

Government have said they will take a phased approach to delivery, taking into account where reorganisation can unlock devolution, where areas are keen to move quickly or where it can help address wider failings. Reorganisation should not delay devolution with plans for both being complementary.

New unitary councils are to be the right size to achieve efficiencies, improve capacity and withstand financial shocks. Current proposals are that for most areas this will mean creating councils with a population of 500,000 or more, but there may be some exceptions to this.

A number of county and unitary councils submitted an expression of interest to Government by the deadline to join the devolution priority programme and to request the postponement of their election from 2025 to 2026. These included the following Counties: Derbyshire, Devon East Sussex, West Sussex, Essex, Gloucestershire, Hampshire, Kent, Leicestershire, Lincolnshire, Norfolk, Oxfordshire, Suffolk, Surrey, Warwickshire, Worcestershire and the following two Unitaries Thurrock and Isle of Wight.

Government has since commented that they will consider each of these requests and will only postpone elections where there is a clear commitment to delivering both reorganisation and devolution to the most ambitious timeframe. They have noted that not all areas that have put forward proposals will become part of the devolution priority programme.

Conclusion

On the whole councils have welcomed Jim McMahon MP’s letter and have responded positively to the so-called ‘devolution revolution’. They hope the plans to simplify local authority structure will allow mayors to make a real difference to their communities with enhanced powers, access to devolved funding and clarity as to who is responsible for services.

Concerns do remain among some that these decisions have come too quickly and decisions are rushed and some have decided against being part of the initial priority programme to consult further on their proposals.

 

For more information please contact:

Tiffany Cloynes, Partner or Chantal Davison, Associate