The announcement that the Greater Manchester Combined Authority (GMCA) is to be handed new powers over housing, transport and planning has seriously raised the bar in the devolution debate.

Devolution to City Regions such as Greater Manchester will be important to ensuring the long term financial sustainability of local government. Greater local control over decision making should allow local leaders to better respond to local needs.

But the focus on devolution to new, more localised governance structures risks obscuring the real issue facing local government - a funding crisis brought about by rising demand, increased expectations and falling resource. If spending projections are accurate, statutory services and social care costs will swallow up most local council spending leaving very little for anything else.