Navigating the devolution revolution: A guide for local authorities

February 26, 2025

Since the English Devolution White Paper was published in December 2024, the first tranche of councils have taken initial steps towards local government reorganisation. Laura Hughes explains what has happened so far and what all local authorities need to be considering.

England stands on the cusp of the most significant transformation of local government in three decades. The publication of the English Devolution White Paper, Power and Partnership: Foundations for Growth, signals a wholesale reworking of governance across England, with a pronounced shift from national to regional and local control.

This transformation encompasses both widespread local government reorganisation and the establishment of strategic authorities across England.

For local authority senior leadership teams, this presents both challenges and opportunities.

This article explores the key elements of the white paper, the legislative framework underpinning these changes, developments to date, and critical considerations for authorities at different stages of this journey.

Government's vision: Universal coverage of strategic authorities

At the heart of the white paper is the government's ambition for universal coverage of so-called strategic authorities (SAs) across England. These may take the form of either combined authorities (CAs) or combined county authorities (CCAs), and will eventually all become mayoral strategic authorities (MSAs).

The proposed structure aims to create a consistent two-tier system throughout England comprising strategic authorities with principal authorities (unitary authorities) sitting underneath, similar to arrangements already established in London and Greater Manchester. While non-mayoral “foundation” SAs can serve as stepping stones, the ultimate goal is clear – mayoral leadership across all SAs.

The white paper establishes a hierarchy of devolved powers, with established mayoral SAs receiving the most significant powers and integrated settlements first. These settlements are designed to remove funding ring-fencing, provide additional resources, and operate within a mutually agreed outcomes framework monitored over a spending review period.

Local government reorganisation: The end of two-tier systems

Running parallel to the devolution agenda is a comprehensive programme of local government reorganisation. The white paper proposes:

Reorganisation for all two-tier areas, and smaller or failing unitary areas
A general expectation that unitary councils will have populations of 500,000 or more (with possible exceptions)
An accelerated timetable for implementation.

The government's announcement on 5 February 2025 revealed six areas selected for the devolution priority programme, with four of these areas undertaking both the creation of new CCAs and local government reorganisation. Additionally, Surrey was announced for accelerated local government reorganisation outside the priority programme.

For areas in the priority programme, reorganisation proposals are required by 26 September 2025 (9 May for Surrey), with shadow elections for new unitary councils scheduled for May 2026 and vesting day in April 2027. Elections scheduled for May 2025 have been postponed in all priority programme areas to facilitate this transition.

For the remaining two-tier areas, reorganisation proposals are due by 28 November 2025, with shadow elections anticipated in May 2027 and vesting in April 2028.

All areas must submit interim plans by 21 March 2025, detailing their progress towards agreement on new local government arrangements.

Legislative framework for local government reorganisation

The legal foundation for unitarisation is provided by the Local Government and Public Involvement in Health Act 2007.

Under this legislation, the Secretary of State may invite a principal authority to propose single-tier local government arrangements, which can take several forms:

Type A: A single tier for the whole county
Type B: A single tier for one or more districts within the county
Type C: A single tier that includes adjoining areas
A combination of Types B or C.

While the 2007 Act previously allowed the Secretary of State to direct councils to bring forward proposals, this power expired in January 2008.

The white paper indicates the government's intention to reintroduce this power through the upcoming English Devolution Bill, expected to be introduced later in 2025 and passed in 2026.

The key point for local authority leaders to note is that proposals do not require consensus from every affected authority.

Following receipt of a proposal, the Secretary of State has broad discretion to implement it with or without modifications, potentially after consulting the Local Government Boundary Commission.

Legislative framework for strategic authorities

For CAs, the relevant legislation is the Local Democracy, Economy and Construction Act 2009, while CCAs are established under the Levelling Up and Regeneration Act 2023.

The key distinction between CAs and CCAs lies in the areas they can cover:

CAs can be established for areas consisting of two or more local government areas
CCAs can be established for areas consisting of one two-tier county council area and at least one other county council or unitary area.

The white paper clarifies that CCAs will be the preferred model in two-tier areas, with CCAs ceasing to exist once all two-tier areas have been unitarised.

For both types of SA, constituent councils must consent to the submission of proposals and to the establishment order or regulations. However, for CCAs, "constituent councils" only include upper-tier authorities, not district councils.

Progress to date: Priority programme areas and beyond

On 5 February 2025, the government announced the six areas included in the devolution priority programme:

Cheshire and Warrington (Combined Authority)
Cumbria (Combined Authority)
Hampshire and the Solent (Combined County Authority)
Greater Essex (Combined County Authority)
Norfolk and Suffolk (Combined County Authority)
Sussex and Brighton (Combined County Authority).

All areas except Cheshire and Warrington, and Cumbria, will initially be CCAs before transitioning to CAs following local government reorganisation. These priority areas will have mayoral elections in May 2026, with the new SAs created in early 2026.

The government has already initiated consultations on these new strategic authorities, running until 13 April 2025, with establishment regulations expected to be laid later in the spring.

In addition, the areas that will be CCAs are also undertaking local government reorganisation, aiming for shadow authority elections in May 2026 and new unitary authorities vesting in April 2027.

Elections have been postponed in these areas to enable this accelerated timetable.

Additionally, Surrey has been announced for local government reorganisation on an accelerated timetable, with proposals due by 9 May 2025. Shadow authority elections are also due in May 2026, with the new unitary authorities vesting in April 2027.

Key considerations: Local authorities in devolution priority programme areas

For authorities already in the priority programme, the timetable is exceptionally demanding. These areas must:

Work to tight deadlines, with reorganisation proposals required by 26 September 2025 for those areas impacted
Seek approval of SA establishment regulations/orders likely in late summer 2025
Ensure SAs are in existence by early 2026
Prepare for mayoral (for the SAs) and shadow elections (for new unitaries where relevant) in May 2026 and vesting day (for new unitaries) in April 2027
Rapidly establish joint working protocols across councils
Secure sufficient resources, whether internal or external, to deliver the programme at pace
Engage in stakeholder consultation as part of the process of establishing new unitary councils.

These areas will need to balance the dual challenges of establishing new SAs while simultaneously managing local government reorganisation.

Key considerations: Local authorities in non-devolution priority programme areas

For the remaining two-tier areas, there is still time but clear deadlines ahead:

Reorganisation proposals are due by 28 November 2025
Interim plans must be submitted by 21 March 2025 to demonstrate progress
Shadow elections are expected in May 2027, with vesting day in April 2028.

Key considerations: Local authorities in areas without a strategic authority

We anticipate a further wave of new SAs with mayoral elections in May 2027 and these areas need to:

Work with other local authorities or neighbouring SAs to come up with agreed proposals and geographies
Be ready for a call for new SA proposals early in 2026

Current two-tier areas, and areas currently without SAs, need to consider several factors:

Size and geography

The government has set clear parameters: new unitary councils should have populations exceeding 500,000, and new SAs should exceed 1.5 million – essentially comprising at least three unitaries.

Authorities proposing smaller structures will need compelling arguments related to functional economic geography, alignment with other public sector boundaries, or distinct community identity.

The geographic jigsaw is complicated by existing SAs. New proposals must "fit" with one another with "no gaps and no overlaps." This may not be entirely achievable through a bottom-up approach, suggesting that government may eventually use powers of compulsion to close remaining gaps.

Authorities should proactively agree on geography with surrounding areas to increase the likelihood of the government accepting their proposals. Some areas might consider joining existing SAs, but should approach those authorities early to ascertain their receptiveness.

Consent and consensus

While the creation of a new CCA requires the consent of all upper-tier councils in the covered area, local government reorganisation does not require consent from all councils, only that a proposal is made that the Secretary of State decides to implement.

The white paper prioritises areas where consensus has been achieved, as evidenced by the selection of the priority programme areas. Until the English Devolution Bill is enacted (anticipated in 2026), the government cannot compel areas to make proposals.

However, once a council in an area makes a reorganisation proposal, the government can progress it without needing all councils' consent.

Areas not in the priority programme should still pursue consensus-building for both reorganisation and potential future SA arrangements, as the government is likely to seek another wave of areas to become CAs or CCAs by early 2027.

Funding considerations

Transition costs for reorganisation are expected to be met from existing budgets through flexible use of capital receipts. This presents a significant financial challenge for authorities, particularly given current fiscal constraints. Areas where commissioners are appointed may have some flexibility, but this exception is limited.

What happens next?

The path ahead varies depending on an authority's current status:

For priority programme areas

These areas are already operating on a tight timeline:

Consultations on new authorities run until 13 April 2025
Establishment regulations expected in spring or summer 2025
Reorganisation proposals due by 26 September 2025 (9 May for Surrey)
Mayoral elections for new Strategic Authorities in May 2026
Shadow elections for new unitaries in May 2026
Vesting day for new unitaries in April 2027.

For two-tier areas already in CAs or CCAs

Proposals due by 28 November 2025
Shadow elections in May 2027
Vesting day for new unitaries in early 2028.

For two-tier areas also needing to become part of a CCA

Unitisation proposals due by 28 November 2025
CCA proposals expected by early to mid-2026
Creation of new CCAs by early 2027
Shadow elections for new unitaries and Mayoral elections for CCAs in May 2027
Vesting day for new unitaries in early 2028.

For unitary areas needing to join a CA

CA proposals anticipated by early to mid-2026
Creation of new CAs by early 2027
Mayoral elections in May 2027.

It is worth noting that this ambitious timetable represents a significant workload for government.

The anticipated schedule would see six new CAs or CCAs in early 2026, followed by about seven more in early 2027, unitaries covering seven current county areas coming into existence in 2027, and unitaries covering a further 13 current county areas in 2028.

Local authorities must prepare now

The English Devolution White Paper represents the most significant reshaping of local government in three decades. For senior local authority leaders, understanding the parameters, timelines, and strategic considerations is essential to navigating this complex transition successfully.

Whether your authority is part of the priority programme or still considering its options, proactive planning, consensus-building, and resource allocation will be critical.

The government has clearly signalled its commitment to both devolution and local government reorganisation, making engagement with this agenda not a question of if, but how and when.

As this process unfolds, those authorities that can develop well-reasoned, consensus-based proposals that align with the government's vision are likely to be best positioned to shape the future of local governance in their areas.

Laura Hughes is head of public law at UK and Ireland law firm Browne Jacobson, and has worked on devolution deals including the East Midlands Combined County Authority. She has authored a Practical guide to the English Devolution White Paper.