Bold ambitions

Amardeep Gill and Paul McDermott analyse the government’s English Devolution White Paper.

The release of the government’s Devolution White Paper marks a critical moment in the effort to shift decision-making powers away from Westminster and closer to local communities. Building on the previous 25 years of devolving powers in England, the White Paper presents a bold blueprint for transferring authority over key policy areas and funding, such as economic development, housing, planning and transport.

The White Paper is more ambitious than many anticipated and brings into question whether the aspiration it sets out is deliverable within a single parliament, and even if it is, whether it will divert attention away from critical service delivery. Notwithstanding such concerns, the vision set out in the White Paper aligns with the broader policy goal of reducing regional inequalities and empowering leaders to deliver tailored solutions that reflect the priorities and needs of their communities.

A stronger case for devolution and reorganisation

At its core, devolution is about subsidiarity—the principle that decisions should be made as close to citizens as possible.

In truth, outside of London and more recently in a few other major conurbations, England has lagged behind other similar nations which tend to enjoy significant devolved regional powers and funding.  

The White Paper treats devolution as an engine for economic growth and prosperity for every part of England, rather than mere 'constitutional' reform. This is consistent with it linking the West Midlands' and Greater Manchester's economic growth to their advanced devolved arrangements. The proposals aim to support growth by empowering local leadership in new councils and combined authorities, particularly in regions willing to embrace mayoral leadership.

The introduction of Strategic Authorities—a term used to describe expanded combined authority bodies—is a key pillar of the White Paper. These bodies will be granted powers and funding to oversee large geographic regions, with responsibilities spanning economic development, climate change, skills, housing, and public transport. This approach aims to encourage collaborative working between local councils, enabling greater strategic coordination across interconnected areas. However, commentators have already suggested that such new Strategic Authorities may be too unwieldy in size and result in a reduction in local accountability. 

Criticism has been levelled at the proposal for radical local government reorganisation, with two tier and small or failing unitaries to put forward proposals for reorganisation. There is sense in the proposals, both from an administrative and financial basis, but critics have argued that reorganisation may create a democratic deficit whilst also absorbing precious resource and capacity in the sector. There is an inherent tension in the White Paper between the role of the empowered Strategic Authorities throughout England with the abolition of county and more local districts, with the latter being replaced by larger unitary councils. The White Paper demonstrates some sensitivity to community feelings by inviting local areas to bring forward their own proposals for the territory that each replacement council should cover.   

The role of Mayors in local leadership

A significant feature of the government’s vision is the emphasis on mayoral leadership. Directly elected mayors, who serve as figureheads for combined authorities, have already been established in major urban areas like Greater Manchester, Greater London and the West Midlands. The White Paper suggests a preference for expanding this model across other parts of the country, arguing that visible, accountable leadership fosters better decision-making and more effective delivery of public services.

The strong push for mayors has faced resistance from some local leaders. Critics argue that the mayoral model may not suit every region and that local councils should retain the flexibility to design governance structures that reflect their local circumstances. The White Paper encourages dialogue on this point but remains clear that areas opting for mayors are likely to receive greater powers and funding incentives – with those opting for no mayor to receive fewer freedoms when establishing a Strategic Authority.

Devolution and regional inequality

One of the central aims of the White Paper is to tackle regional disparities—a persistent issue in England where economic productivity, health outcomes, and educational attainment vary widely between regions. By giving local authorities control over economic development, skills training, and transport infrastructure, the government hopes to unlock growth and level up opportunities outside of London and the South East.

The lack of modern social and transport infrastructure has been blamed by some for the UK's poor productivity, compared to its other major economies. The White Paper proposes the solution of investment in infrastructure, such as improved rail networks and integrated public transport systems, as a top priority for devolved authorities. Similarly, greater control over housing policy will allow local leaders to address the acute housing shortages in their regions by accelerating the delivery of affordable homes.

Whilst laudable, these ambitions will require significant, sustained funding. The White Paper outlines an intent to deliver long-term financial settlements for councils and devolved authorities, allowing for greater planning certainty. Yet, many remain concerned that without a substantial increase in core funding, the devolution agenda may be undermined by the financial pressures already faced by local government.  The White Paper could have spoken more meaningfully to fiscal devolution and a fairer funding formula – key ingredients of meaningful devolution elsewhere.

Challenges and concerns: funding and capacity

While the White Paper sets out a compelling vision for devolution, its success will depend on addressing key challenges—most notably, funding and capacity. Local authorities have faced a decade of budget cuts, leaving many councils stretched thin and unable to deliver basic services effectively.

For devolution to succeed, the government must ensure that funding commitments match the scale of new responsibilities. Long-term financial settlements and additional support will be essential, particularly in regions with weaker economies. Moreover, capacity-building support will be required to equip local authorities with the skills and resources to take on devolved powers.

Another challenge is ensuring that devolution does not exacerbate existing inequalities between regions. There is a risk that areas with strong local leadership and economic assets will thrive under devolved arrangements, while more deprived areas may struggle to keep pace. To mitigate this, the government must prioritise fair funding and support mechanisms that target areas of greatest need.

Conclusion: a big step in the right direction

The Devolution White Paper represents a significant step forward in empowering local leaders and communities across England. Its proposals to transfer powers align with a broader vision for reducing regional disparities and fostering place-based innovation.

However, achieving these ambitions will require a firm commitment to sustained funding, local flexibility, and capacity-building as well as managing the consequences of the transition period the White Paper will set about. While the emphasis on mayoral governance has sparked debate, the overall direction of the White Paper is clear: local government will play a central role in delivering national priorities.

If the government follows through on its promises and supports local areas with the resources they need, devolution could transform how public services are delivered and empower communities to shape their futures. For local government leaders, the White Paper offers both an opportunity and a challenge—to seize the powers on offer and demonstrate the transformative potential of devolved governance.

Amardeep Gill and Paul McDermott are Partners at Trowers & Hamlins.