One of the key pledges in Labour’s manifesto was to ‘widen devolution to more areas, encouraging local authorities to come together and take on new powers’. With 50% of the total working-age population and 49% of businesses in England covered by devolution, there is significant scope for widening.
Encouragingly, in its first weeks in power, the Labour government has acted quickly on this manifesto pledge, underlining the significance they see in terms of the role devolution can play in achieving their wider mission around economic prosperity and opportunity. The Deputy Prime Minister, Angela Rayner, has written a letter to all leaders of county and unitary councils without existing devolution deals, encouraging them to “partner with the government to deliver the most ambitious programme of devolution this country has ever seen”. The emphasis is being placed on these so-called “devolution deserts” to work together to take on powers in areas such as transport, adult education and skills, housing and planning, and employment support. Alongside this, Labour has committed to bring forward a new Devolution Bill called the Take Back Control Act which will set out the framework for devolution.
While this will be welcomed across much of local government, challenges such as complex negotiations over geography and lack of clarity on powers and accountability are expected. Having worked with a number of the existing mayoral combined authorities alongside extensive work with the County Councils Network on County Devolution, there are some key considerations for local leaders as they work through whether being part of the 'devolution revolution' is worth the investment of time and resource.
The letter makes clear that new devolution settlements should continue to be tailored to ‘sensible economic geographies’ and suggests that, in many cases, local authorities will need to collaborate to form new combined or combined county authorities. Considering geography is therefore a crucial first step for establishing effective and equitable devolution arrangements. When contemplating a suitable geography, we would recommend that local leaders consider the following four factors:
Identifying the most appropriate governance model for an individual place will also be critical to the success of a new devolution deal. While the letter to local leaders indicates a preference for Mayors as being the most effective, it does not specify this as a requirement. We know that the requirement for a Mayor has been a barrier for many places so it will be important for the Government to provide further clarity on this as part of the promised new devolution framework. Ahead of this (and even in the absence of) further clarity a valuable starting point is the three different levels of devolution deals set out in the 2022 Levelling up White Paper:
Given the differing levels of powers and functions across the levels it will be important for local leaders to carefully consider the suitability of each, for example, Level 3 provides additional powers around transport, investment spending, skills and employment and local infrastructure. Through our work with the County Council Network, we have established a robust method of evaluating different governance models. This model helps local leaders consider the most appropriate governance structure against three key factors: strength of governance, deliverability and powers.
Consider the capacity to manage multiple competing priorities, while also providing clear leadership. Key considerations would be:
Vision – will you be able to establish a single strategic vision?
Legitimacy – will you have a clear public political mandate?
Consensus – will you have the ability to align strategy and balance interests
Identity – will you be able to establish a single public identity, profile and message
Linked to the above, it will be important to undertake stakeholder engagement with local government, community leaders, and residents within the geographical area to understand their needs, priorities, and concerns regarding devolution.
Another key consideration is how complicated the model is to deliver. Drawing on our experience of working with devolved areas we would recommend considering:
Complexity – what is the legislative complexity and timing
Opposition – what is the likelihood of opposition from the public/stakeholders
Resistance – what is the likelihood of resistance from partners
Politics – what is the likelihood of a veto from local politicians
Cost – what are additional costs and bureaucracy
The choice of governance model is intricately linked with the powers and flexibilities available. Angela Rayner’s letter indicates that in due course a new devolution framework will be published, detailing the new powers and flexibilities that will be made available. However, it is already clear that the most expansive powers will be offered to places that adopt mayoral leadership. While a mayor might not be the initial preference, it does offer more power and funding, therefore the core question is whether the introduction of a mayor would compromise your authority’s ability to deliver the existing core services and priorities it has.
With proposals for new devolution settlements expected by the end of September, there are a number of key considerations that local government need to start thinking about immediately:
Alongside these local considerations, the new Labour government will need to start thinking about what more they can do to enable local places to reach their full potential and maximise the benefits of devolution. In particular, how can the Government learn from recent efforts, both in terms of removing sticking points, and how to make devolution more appealing. These include:
We have worked closely with devolved administrations, from deal-making and establishing robust governance structures, to detailed work on individual powers (such as Bus Franchising or use of the Adult Education Budget). We would be happy to discuss and share our experience further in supporting you through the devolution lifecycle
