When it comes to the relationship between central and local government in England, it's fair to say that we live in interesting times. Which is why the National Audit Office (NAO) has just published its value for money report on Devolution in England: funding and accountability.
Currently, seven ‘Established' Mayoral Strategic Authorities (MSAs) – in Greater London, Greater Manchester, Liverpool City Region, North East, South Yorkshire, West Midlands and West Yorkshire – receive central government funding via an ‘Integrated Settlement'. This consolidates money from multiple policy areas and departments into a single allocation, organised under six themes which include housing and transport. These MSAs have full spending flexibility within each theme, and some flexibility across themes, between financial years, and in the split between revenue and capital expenditure. Integrated Settlements are supported by a single funding assurance framework, coordinated by the Ministry of Housing, Communities and Local Government (MHCLG). Our report examines how well this new funding arrangement, and the accountability system that runs alongside it, is working.
