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The public spending watchdog has warned of tension between Mayoral Strategic Authorities' (MSA) expectations of autonomy and the Government's responsibility for how money is used locally.Getting the right balance will be important when scaling up the English devolution system in the future, the new report from the National Audit Office (NAO) has said.The report found that the Government is making good progress in its plan for full coverage of strategic authorities across England.MSAs that meet set criteria may be designated as ‘established' MSAs and permitted extra freedoms, most notably receiving central government funding through an integrated settlement. So far, central government has announced £15.9bn of integrated settlement funding covering the period 2025-26 to 2029-30.But the NAO said some more newly established MSAs may struggle to make the most of the benefits of their integrated settlements in the future, if they do not build experience and capacity in government programme delivery. The Ministry of Housing, Communities and Local Government (MHCLG) is taking steps to provide relevant support through holding annual conversations with MSAs, making capacity funding multi-year and more reflective of an MSA's current capacity and level of maturity, and providing extra funding for staffing and administrative costs.As MSAs take on more funding and responsibilities, strengthened local scrutiny arrangements will be vital, the report concluded. Head of the NAO Gareth Davies said: ‘MHCLG has done well so far in implementing its plans to set up Mayoral Strategic Authorities. ‘MHCLG should now ensure that the system through which Mayoral Strategic Authorities are accountable to central government is proportionate and supported by strengthened local accountability arrangements.'Writing in The MJ this week, the NAO's director for local government value for money Vicky Davis said: ‘Those joining [as MSAs] in the future may not have the same level of maturity or institutional capability – for example, on governance, financial management and delivery. ‘Put simply, there may well be tension between the scale of devolved responsibilities and the capacity of MSAs to deliver them. MHCLG's response has included making mayoral capacity funding multi-year and more reflective of MSAs' current levels of maturity.'Marcus Johns, Senior Researcher at the Fabian Society said: ‘Devolution is shifting the centre of gravity out of Whitehall to drive up living standards in every postcode. ‘The Government is making strong progress rolling out devolution across England, providing a platform to take devolution to the next phase, as Andy Burnham set out this week. ‘But Fabian Society research finds a risk that too much micromanagement from the centre will get in the way. The NAO helpfully remind us that good local governance, scrutiny, and capacity are the tools to see more proportionate accountability up to government.'Opinion: A revolution in devolution?

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MAYORAL STRATEGIC AUTHORITIES

NAO warns of tension between autonomy for MSAs and government's responsibility for money

By Ann McGauran | 01 July 2026

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