Make devolution legal right and extend it to 85% of England: Institute for Government

The next government should extend devolution to at least 85% of England's population in order to complete a "job half done", the Institute for Government (IfG) has said.

It has also called for the legal right for all parts of England to take on devolved powers.

In a report setting out how the government should complete the roll-out of devolution in England, the think tank criticised the current approach to devolution, warning of a "patchwork of mismatched deals" and inadequate powers and funding.

As of the May 2024 local elections, there are 12 metro mayors in England, with four more due to be elected in 2025. 

However, the report claimed that despite progress, the "job of English devolution is far from complete", as large parts of the country still lack devolution deals.

"Where deals are in operation, the powers devolved are inadequate, funding is often fragmented and short-termist, and the structure and capacity of many MCAs is in need of reform," the report said. 

"In addition, the constitutional status of English devolution is uncertain. In short, this is not a settlement for the long term."

The IfG made 30 recommendations to the government in total to tackle these issues. 

It called for an extension of devolution to at least 85% of England's population, with devolution to England's remaining large urban areas – such as Leicester, Stoke and Southampton – prioritised in the first half of the parliament.

It also called for the publication of a complete map of the boundaries for English devolution, with boundaries determined by reference to a clear decision-making framework.

Other recommendations included legislating to put devolution "on a firmer statutory footing", with a legal right for all parts of England to take on devolved powers and a defined set of devolved functions in which government will not intervene without seeking local agreement.

In addition, the report called for a scheme to allow interchange of staff between Whitehall departments and MCAs, including short-term placements and longer-term secondments, "to encourage mutual learning and strengthen relationships between these tiers of government".

On top of this, it recommended further expansion of the so-called "trailblazer" devolution offers in Greater Manchester and the West Midlands to include more powers. 

Expanded powers for these two regions should include strategic spatial planning, employment support, apprenticeships levy funding and R&D budgets, alongside greater spending flexibility than currently allowed, the report said. 

This should be followed by a "new wave" of trailblazer deals across England, incorporating 'single departmental settlement' funding, in places like Liverpool City Region, West and South Yorkshire, the North East and Tees Valley, the think tank added. 

The report also said that mayoral combined authority (MCA) constitutions should be reformed in order to streamline decision-making. This would entail MCAs moving to 'simple majority' rules for key decisions over budgets, investment, transport and spatial plans.

Spending at MCAs should also be subject to greater scrutiny, via the creation of 'Devolved Public Accounts Committees' at least for MCAs with the most expansive powers, the report said.

"These should have full-time chairs, a remit to scrutinise MCA spending, and powers modelled on the House of Commons Public Accounts Committee," it recommended.

The report's author and IfG programme director, Akash Paun, said: "Metro mayors are now well-established leaders of place in England's biggest urban regions – but we are still in the early stages of the devolution journey. Whoever is prime minister a year from now will have a historic opportunity to move beyond the current patchwork of deals and put in place a more coherent and durable settlement for England as a whole."

Adam Carey