The English Devolution and Community and Empowerment Bill marks a genuine change in how the country is governed. The Bill comes in at a hefty 338 pages, owing to the complexity of the current system and the need to account for differences between combined authorities, county combined authorities and the Greater London Authority.
Three key issues emerge from reading the Bill and associated guidance, building on last year's White Paper.
Firstly, there is a clear intention to create a new tier of ‘strategic authorities' across the country, allowing a transfer of power from Whitehall to places within a defined framework.
A new ‘right to request' for additional powers for mayors will be enshrined in primary legislation. This will allow the top tier of ‘established' mayors to request changes to the law, funding or other issues which mayors think would contribute to achieving their role. The government will, by law, have to respond to these requests within six months, stating the reason for any yes/no decision.
The Bill establishes a devolution framework in primary legislation ranging from non-mayoral foundation authorities to established mayoral authorities. Gone is the need for the bespoke deals of the past. Instead, a clear menu of powers for areas to choose from is on offer. There is also a formalised process to pilot future changes to the framework with specific geographic areas. And whilst changes to increase powers for places can be made by ministers in future, any reduction of powers would need to go through parliament. This will be matched by a unitary system of local authorities with provision in the Bill to organise this process.
Secondly, the powers of authorities are being extended. A general power of competence for strategic authorities will give them legal parity with local authorities in this regard. At the same time, defined areas of competence for mayoral authorities are also being formalised into seven areas to indicate where the government thinks they should focus. These cover classic areas like transport, skills and housing but are also joined by more recent ones like employment support and public service reform. These areas will also align with the pillars of integrated funding settlements being rolled out to the established mayoral authorities.
This new focus towards public service reform is a very welcome change to the role of mayors and strategic authorities. Labour Together has called for this change, including publishing a report on devolution and public service reform by Sam Freedman in 2024. Examples of how working at this level can support better outcomes from services or new innovations include Greater Manchester's Project Skyline or South Yorkshire's Bed for Babies scheme.
Thirdly, it is clear that there is an ambition from central government to go much further. A new ‘right to request' for additional powers for mayors will be enshrined in primary legislation. This will allow the top tier of ‘established' mayors to request changes to the law, funding or other issues which mayors think would contribute to achieving their role. The government will, by law, have to respond to these requests within six months, stating the reason for any yes/no decision.
This ratchet mechanism built into the legislation ensures that the process to devolve power will continue. Not one, not twice, but three times, the Devolution White Paper said that the proposed framework was a floor, not a ceiling on the government's ambition.
Looking to the future, we can imagine a world in five to 10 years in which the whole of England is covered by strategic authorities making genuinely important decisions that improve their economies and public services. Evidence suggests that bringing power closer to people can lead to better decisions, promoting a better society and improving the lives of millions of people.
This is a huge moment in the constitutional life of our country, with the expectation of more to come. So where might this focus turn to in the future?
Alongside mayors wanting more control over the spending in their area, they also want a greater say over how that money is raised. Calls for a levy on visitors comparable to other countries are gaining traction. But in terms of scale, it is logical that revenue powers will need to extend beyond this if they are to match the scale of spending that mayors will have. The alternative is that mayors will always be almost completely reliant on grants from central government. This is a complicated issue requiring considerations of incentives and distribution that will require further work over the coming years.
Another area that will require further work is constitutional. The Labour manifesto said that the Government would be ‘committed to replacing the House of Lords with an alternative second chamber that is more representative of the regions and nations.' This too will require further consultation and could bring us into a comparable position to countries like France or Germany, both of whom have some form of place-based territorial representation in their second chambers.
Devolution is a process, not a destination – but this is a genuine milestone to celebrate with the promise of more to come.
JP Spencer is director of devolution policy at Labour Together and a former head of the Green Book in the Treasury
