‘Bold’ devolution white paper is not without risks

Published yesterday, the draft bill sets out Labour’s intention to unshackle the North’s towns and cities. While it has been widely welcomed, leaders across the North are wary of the “distraction” local government reorganisation could cause.

The English Devolution White Paper aims to “fill in the map” and ensure that councils in areas of England that are not currently part of a combined authority are not left behind.

Read more about the white paper 

By overhauling local government structures, providing integrated single settlements to combined authorities, and giving mayors a new suite of decision-making powers around housing and skills, Labour has taken steps towards making devolution the default setting for England’s regions.

Place North spoke to business leaders across the North about what it could mean in years to come.

The power of cities

Andrew Carter, chief executive of the think tank Centre for Cities, said the next two years would be “crucial” for Labour’s devolution efforts, adding that the government must not lose sight of where the power of decentralisation lies.

“The desire to widen devolution opportunities to smaller places could take up vital bandwidth in Whitehall but the biggest benefits from devolution come from the big cities, where growth potential is highest,” he said.

“To put devolution at the service of its growth mission, [the government] should back mayors in big cities to have as much decision-making power as they need to deliver on their growth plans, and that includes more fiscal power.”

Planning powers

Additional planning powers for mayors, including the ability to call in applications for additional scrutiny, form part of an “ambitious” plan, according to Becki Hinchcliffe, director at Eden Planning.

“The ambition is clear, and collaboration between government, local authorities, businesses, and communities will be critical to make this vision a reality,” she said.

“Devolution done right has the potential to transform England’s governance, strengthen regional economies, and allow every community to thrive.”

She added: “While delivering on this ambition will be the real test, this White Paper is a step in the right direction, ensuring local voices shape a stronger, more connected, and more accountable future for England.”

The devolution white paper states that every strategic authority must devise a spatial plan, similar to Places for Everyone in Greater Manchester.

Darren Muir, planning director a Pegasus sees this as a positive step forward, as long as the regions approach the plans with ambition.

“This looks like a return to regional planning, or sub-regional, to be more accurate,” he said.

“To achieve the optimistic housing delivery objectives, these spatial development strategies must not simply replicate local plans and should take a more ambitious approach to housing and economic growth, rather than planning for the minimum amount of housing in accordance with the new standard method.”

Potential distractions

Tom Stannard, current Salford City Council chief executive and soon-to-be chief executive of Manchester City Council, said the white paper holds “good promise” but warned that what Labour has described as the biggest shake-up of local government this century could become a distraction.

“The biggest opportunity for the established mayoral combined authority mayors is on enhancing housing delivery, especially social and affordable,” he said.

“The risk is two-tier reorganisation becoming a distraction and Greater Manchester losing ground. We’re ready to work with government to ensure that doesn’t happen.”

Kevin Whitmore, director at Cavendish Consulting, said the white paper has “real clout” and agreed with Stannard that an overhaul of local government could complicate things.

“Today’s English Devolution White Paper is arguably the biggest shake-up of local government since the 1970s,” he said.

“It remains to be seen how much of a distraction local government reorganisation will be just a week after planning reforms aimed at speeding up economic growth were announced.”

Deputy prime minister Angela Rayner wants devolution to be the default setting across England. Credit: Simon Walker / Deputy Prime Minister’s Office

Jonathan Carr-West, chief executive of the Local Government Information Unit also foresees a potential downside to the government’s devolution plans.

“The white paper holds promise but also creates risk,” he said.

“We need to ensure that the coming months are not just spent in fractious debate about the appropriate size for unitary councils.

“Our agenda cannot just be about shuffling existing powers and functions around between different sized units of government. This must be about genuine added value and better outcomes for communities whatever the structures we end up with.”

Jeremy Hinds, director of planning at Savills, said the steps set out in the white paper to pluck powers from the parliamentary front bench and place them in the hands of local mayors are overdue but could cause conflict between some combined authorities and the Labour government.

“The enhanced powers to mayors, particularly those in metropolitan regions, will mean that they will acquire London-style powers as has long been requested,” he said.

“The result is devolution of both power and accountability. This could lead to interesting outcomes where there are differences in political leadership between enhanced local government bodies and those in power in Westminster.”

A positive step forward

Amardeep Gill, head of public sector at Trowers & Hamlins, said the white paper delivers hope of a bright future for ailing local government.

“It sets out the basis of a root and branch overhaul of governance in England,” he said.

“Whilst articulating a bold vision for the future of devolution in England, primarily through the establishment of strategic authorities, the white paper does much more than just that.”

A desire to reset the relationship between Whitehall and local government and shift decision-making powers to mayors are two big positives, according to Gill.

“The aspiration for economic growth is an underlying theme in the paper, aimed at unleashing the potential of cities and regions,” he added.

“The white paper does much to address the strains faced by local government while delivering a cohesive vision for the future devolution aimed at delivering purposeful change locally and nationally.”