English Devolution White Paper confirms major local government reorganisation plans

December 16, 2024

The Government plans to deliver an "ambitious first wave" of local government reorganisation in this Parliament that will focus on two-tier areas and small or poorly performing unitary councils, according to the English Devolution White Paper published today (16 December).

The white paper also lays out proposals for new ‘Strategic Authorities’, greater powers for mayoral combined authorities, and a commitment to consult on powers to suspend members involved in code of conduct complaints and the creation of a new national body to deal with "the most serious" standards complaints.

On reorganising two-tier and unitary authorities, the white paper said: "Unitary councils can lead to better outcomes for residents, save significant money which can be reinvested in public services, and improve accountability with fewer politicians who are more able to focus on delivering for residents."

It added: "This White Paper announces that we will facilitate a programme of local government reorganisation for two-tier areas, and for unitary councils where there is evidence of failure or where their size or boundaries may be hindering their ability to deliver sustainable and high-quality public services."

To kick-start this programme, the Government plans to request proposals from such councils before taking a phased approach to delivery.

This phased approach would take into account "where reorganisation can unlock devolution, where areas are keen to move quickly or where it can help address wider failings".

Under the plans, the Government is aiming for new unitary councils to cover areas with a population of 500,000 or more, "but there may be exceptions to ensure new structures make sense for an area, including for devolution, and decisions will be on a case-by-case basis".

Elsewhere, the Government set out plans to legislate to introduce so-called strategic authorities and a statutory devolution framework.

According to the document, strategic authorities would have a "mandate to act strategically to drive growth as well as support the shaping of public services, where strategic level coordination adds value" in the following areas of competence:

Transport and local infrastructure
Skills and employment support
Housing and strategic planning
Economic development and regeneration
Environment and climate change
Health, wellbeing and public service reform
Public safety

The white paper also noted that all strategic authorities will belong to one of two levels, 'Foundation Strategic Authorities' or 'Mayoral Strategic Authorities'.

The documents described ‘Foundation Strategic Authorities’ as including "non-mayoral combined authorities and combined county authorities automatically, and any local authority designated as a ‘Strategic Authority’ without a Mayor.

It said that ‘Mayoral Strategic Authorities’ will automatically include the Greater London Authority, all mayoral combined authorities and all mayoral combined county authorities.

"Those who meet specified eligibility criteria may be designated as Established Mayoral Strategic Authorities. This unlocks further devolution, most notably an Integrated Settlement", it added.

The Government also warned that it would legislate for a ministerial directive, allowing Whitehall to create Strategic Authorities "where local leaders have, after due time has been allowed, not been able to make progress".

The white paper meanwhile pledged to "reset" the relationship with local government "to give the sector more autonomy and put councils on the road to recovery".

It added: "We will provide multi-year settlements, updating the way we provide funding to local government, end micro-management, and move to a meaningful partnership between central and local government."

As part of this, it also promised to "rebuild" local authority workforces, modernise how councils do business, and recognise the "vital role of local councillors as frontline community convenors, and executive members and leaders as partners in delivering the government's missions".

Elsewhere, the white paper promised "unprecedented powers and budgets for Mayors", which would see Mayoral Strategic Authorities moved to simple majority voting, new integrated settlements, and widened transport powers.

The Government also intends to hand new development management powers to mayors, similar to those exercised by the Mayor of London, to include the ability to call in planning applications of strategic importance.

In conjunction with these powers, Mayors will be able to charge developers a Mayoral Levy to ensure that new developments come with the necessary associated infrastructure.

In order to help boost house building, all areas will also have to produce a Spatial Development Strategy, the white paper added.

Greater efficiencies will be introduced through the introduction of integrated settlements for mayoral authorities – starting with Greater Manchester, Liverpool City Region, North East, South Yorkshire, West Midlands and West Yorkshire Combined Authorities – which will see authorities receive a consolidated budget across housing, regeneration, local growth, local transport, skills, retrofit, and employment support.

This will enable strategic authorities to move funding between policy areas and "will lead to better value for money and outcomes for citizens, because in practice these programmes should not operate in departmental silos", the document said.

The white paper meanwhile detailed plans to give local councils greater control over the activities of establishments and premises that can cause health and environmental issues.

Fundamental reform to the local audit system is also promised to "give greater clarity on the purpose of audit and accounts, and ensure they take centre stage in local scrutiny".

"In line with Sir Tony Redmond's recommendations, we will legislate to radically simplify the system, bringing as many audit functions as possible into one body which will also offer insights drawn from audits," the document noted.

The document also revealed plans to consult on reforms to the standards regime, including the introduction of a national body to deal with the most serious code of conduct complaints cases and appeals, as was the case under the former system with the Standards Board for England.

The Government intends to engage with the sector "shortly", including with key audit stakeholders, on how best to move functions into the organisation on audit, subject to legislation.

Adam Carey