Good progress has been made on English devolution, a National Audit Office (NAO) report has found, but it also calls for strengthened local scrutiny arrangements and continued investment in capacity as the system scales up.

The report shows the Ministry of Housing, Communities & Local Government (MHCLG) has established 18 Mayoral Strategic Authorities (MSAs) and two Foundation Strategic Authorities by June 2026, delivering on the aims set out in the December 2024 English Devolution white paper.

Established MSAs can now access central government funding through an Integrated Settlement – a more flexible funding model that the NAO says is largely well regarded, with £15.9bn already committed between 2025-26 and 2029-30.

However, the report warns that newer MSAs may struggle to make the most of these freedoms without further support and highlights ongoing pressure on local audit capacity as scrutiny responsibilities grow.

Gareth Davies, head of the NAO, commented: ‘MHCLG has done well so far in implementing its plans to set up Mayoral Strategic Authorities. The Integrated Settlement arrangements give welcome flexibility to dedicate spending where it is needed most.

‘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.’

Responding to the findings, Cllr Richard Clewer, chair of the Local Government Association's Public Service Reform and Innovation Committee, welcomed the progress but urged Government to accelerate the pace of change.

‘Devolution is proving its value by giving local areas the powers they need to drive growth and improve outcomes for communities, however we need to make sure that no parts of the country are left behind in the process,’ he said.

‘While this report highlights positive progress, the Government must now go further and faster to deliver meaningful devolution across England. Empowering local leaders to invest in infrastructure, address skills shortages, build affordable homes and boost productivity is key to tackling the challenges facing communities and the economy.’

Cllr Clewer added that this should go ‘alongside appropriate scrutiny,’ with councils given the flexibility to shape local committee arrangements, backed by adequate resources, and stressed that partnership between national and local government would be essential to unlocking future growth and opportunity.

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