Understanding devolution: Key takeaways for local councils

Devolution has been a significant policy focus in the United Kingdom, particularly since 2014. The aim has been to transfer powers from central government to local authorities, allowing for more localised decision-making and enhanced public services. For local councils, understanding the nuances of devolution, the powers granted, and the impact on governance is crucial. This article provides a comprehensive overview of devolution, its evolution, and key takeaways for local councils in England.

Historical overview of devolution in England

Devolution in England has evolved significantly since the early 2010s. The Localism Act 2011 was a precursor, granting new freedoms and flexibilities to local government. However, the most substantial changes began with the coalition government’s drive towards devolution in 2014. This period saw the establishment of Mayoral Combined Authorities (MCAs) and significant devolution deals.

Key milestones:

2014: The Greater Manchester Agreement was the first substantial devolution deal, transferring a range of powers over transport, housing, planning, and policing to the Greater Manchester Combined Authority (GMCA).

2016: The Cities and Local Government Devolution Act 2016 formalised the process, enabling the creation of combined authorities with elected mayors.

2017-2023: Several other regions, including the West Midlands, Liverpool City Region, and Tees Valley, followed with their devolution deals, each tailored to the specific needs and capacities of the areas.

Powers and funding transferred

Devolution deals have varied in scope, but some common powers and funding arrangements have emerged.

Transport

Many MCAs have gained control over local transport networks, including bus franchising, transport infrastructure investment, and strategic transport planning. For instance, the GMCA gained authority over its local transport system, allowing it to integrate and improve services across the region.

Housing and planning

Devolved powers often include control over housing and planning policies. This includes the ability to develop strategic plans, manage housing investment funds, and address local housing needs more effectively. The West Midlands Combined Authority, for example, secured £350 million for housing and land remediation.

Skills and employment

Skills and employment services are critical components of devolution deals. Local authorities have gained control over adult education budgets, enabling them to tailor skills training to the local job market. The Liverpool City Region Combined Authority, for instance, has focused on aligning training programmes with local economic priorities.

Health and social care

In some cases, devolution has extended to health and social care integration. Greater Manchester’s devolution deal included control over a £6 billion health and social care budget, aiming to integrate services and improve health outcomes across the region.

Case study: Greater Manchester

Greater Manchester’s devolution journey is often cited as the most comprehensive and advanced. The GMCA, led by an elected mayor, has been a pioneer in leveraging devolved powers to drive regional growth and public service improvements.

  • Transport integration

Greater Manchester’s transport devolution has allowed for the introduction of the “Bee Network,” an integrated transport system that combines buses, trams, cycling, and walking routes. This initiative aims to create a seamless and efficient transport network, reducing congestion and improving air quality.

  • Health and social care

The integration of health and social care services under the GMCA has been transformative. The region has launched several initiatives to improve health outcomes, including programmes targeting mental health, early intervention, and preventive care. The success of these initiatives is reflected in improved health indicators across Greater Manchester.

Additional devolution proposals

The Levelling Up White Paper, published in February 2022, outlined further proposals for devolution, emphasising the need to reduce regional inequalities and empower local authorities. The paper proposed expanding devolution deals to more areas, granting additional powers, and increasing funding to support local initiatives.

  • Expansion of MCAs: Encouraging more regions to form MCAs and elect mayors to streamline governance and accountability.
  • Greater financial autonomy: Proposals for increased financial flexibility, including the ability to retain a higher proportion of local taxes and secure more long-term funding agreements.
  • Enhanced powers: Expanding the scope of devolved powers to include areas such as education, housing, and economic development.

Implications for Local Councils

For local councils, understanding devolution and its implications is essential for effective governance and service delivery. Here are some key takeaways:

Improved local decision-making

Devolution empowers local councils to make decisions that are tailored to their specific needs and priorities. This localisation of decision-making can lead to more effective and responsive governance, as councils are better positioned to understand and address the unique challenges of their communities.

Enhanced service integration

Devolved powers often come with opportunities for integrating services across different sectors. For instance, combining health and social care can lead to more holistic and efficient service delivery. Local councils can leverage these opportunities to improve outcomes for their residents.

Access to funding and resources

Devolution deals frequently include significant funding allocations. Councils can use these funds to invest in infrastructure, public services, and economic development projects. However, it’s crucial to have robust plans and governance structures to manage these resources effectively. Investing in all-inclusive software solutions can be a game-changer in this regard.

With a comprehensive solution like My Council Services, councils can streamline various business areas, enhance efficiency, reduce costs, and improve citizen satisfaction. By leveraging advanced digital processes, councils can make the most of their funding and drive transformative change in their communities.

Increased accountability and transparency

With greater powers come great responsibilities. Local councils must ensure transparency and accountability in their decision-making processes. This includes engaging with residents, businesses, and other stakeholders to build trust and ensure that devolved powers are used effectively.

While devolution presents significant opportunities, it also comes with challenges. Councils must navigate complex governance arrangements, manage increased responsibilities, and ensure they have the capacity and expertise to utilise devolved powers effectively. Collaboration with other local authorities, regional bodies, and central government will be key to overcoming these challenges.

Conclusion

Devolution represents a transformative shift in the governance landscape of England, offering local councils unprecedented opportunities to shape their regions’ futures. By understanding the powers and funding available, engaging with the devolution process, and leveraging the benefits, local councils can drive positive change, improve public services, and enhance the quality of life for their residents. As devolution continues to evolve, staying informed and proactive will be essential for local councils to maximise their potential and achieve their goals.

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