20 December 2024

Devolution revolution: Practical next steps for local authorities

Devolution revolution: Practical next steps for local authorities image
Image: LillaSam / Shutterstock.com

After a flurry of announcements affecting local government in the build-up to Christmas, councils must ensure they’re ready to get ahead of the curve in the New Year. Laura Hughes, partner at Browne Jacobson, offers some advice on this front.

The English Devolution White Paper was published by the Government this week amid other big policy announcements affecting planning, education, standards and local auditing.

It means local authority leaders will have to give serious thought over the Christmas break about next steps so they are ready to take practical steps forward in early January.

The white paper, in particular, promises the biggest local government overhaul in a generation. Its headlines include a strategic authority for every area, with most having an elected mayor and a standardised list of enhanced powers; and the removal of two local government tiers, where these still exist, below strategic authorities.

So what should leaders in local and regional government be doing now?

Existing areas of two-tier local government

Areas with the traditional structure of counties, and districts and boroughs, must get together as a group to discuss unitarisation.

It’s likely the Government will initially progress areas where agreement exists within the system. With aspirations to take forward the first tranche of proposals in the first session, it is looking for consensus.

There are hints in the white paper of extra money for areas making the change, and we suspect there might be sweeteners for early adopters that make a compelling case to government about their needs in a unified way.

When agreement is reached on a way forward, an early approach to government is wise – we have heard of some areas already planning letters early in the New Year.

If a consensus can’t be reached on the structure of new unitary councils, we would still recommend as many neighbouring local authorities as possible to agree on a joint approach to government. Whilst these may not be included in the first wave, if proposals present the best solution for the area, the Local Government and Public Involvement in Health Act 2007 does not require total consensus for a reorganisation to progress.

Existing unitary areas with problems

Existing unitary areas subject to Section 114 notices, or otherwise struggling with aspects of delivery, should consider whether the Government is likely to view a solution to their problems by a change to their boundaries, or a merger with other areas.

If this may be the case, there’s clearly merit in approaching government with proposals for change, rather than waiting for change to happen to you.

Areas without a strategic authority

Whilst the English Devolution Bill will not be passed for some time, the legislation for creation of a combined authority or combined county authority is now well established.

Government is clear – and indeed its recent decisions to lay regulations in respect of the creation of new combined county authorities demonstrate – that it wishes to push on with its ‘devolution revolution’.

We suspect new combined authorities will be created alongside the Bill working its way through Parliament, but utilising a list of powers that will ultimately be set down in law in the new Act.

The areas not yet covered with a deal are mostly those that need to be created via a combined county authority model, which allows for a mixed county and unitary model.

Again, early discussions among areas that lead to proposals for combining multiple council areas over a functional economic area – featuring a mayor as part of the plan – will receive a positive response.

Areas that are two-tier and without a strategic authority

Given that many areas not covered by a strategic authority are two-tier, there will be a question of timing and order between which comes first between this and a unitary authority.

Our view is the processes could be run alongside one another with careful planning, particularly if upper-tier councils are aligned (as is currently needed for the establishment of strategic authorities).

We also consider that areas proposing to action both issues will be incredibly favourably viewed by the Government, as achievement of both unitarisation and establishment of a strategic authority in an area would give the Government a success story.

Again, early discussions with local colleagues and early proposals to the Government are key here.

Existing strategic authorities

In our view, sometimes a functional economic area is not fully represented in existing strategic authority boundaries. Existing strategic authorities should therefore consider whether there are other areas that ought to be included.

As the white paper states that government will force change in areas not covered by strategic authorities where proposals aren’t brought forward, it’s possible that neighbouring strategic authorities could propose to bring in areas adjacent to their boundaries. Such proposals from Mayors would likely be well received by government.

Existing strategic authorities should also begin considering impacts on governance arrangements of the promised enhanced powers, convening opportunities and removing vetoes so they are ready for change once the English Devolution Bill is passed.

Many current combined authorities’ governance arrangements don’t yet align with changes introduced in the Levelling Up and Regeneration Act 2023, so considering both issues simultaneously is wise.

Strategic authorities without a mayor should start discussions about introducing mayors to their governance arrangements – which will require amending regulations – as it is clear that strategic authorities with mayors will have enhanced powers, funding and other benefits.

Laura Hughes is head of public law at UK and Ireland law firm Browne Jacobson, and has worked on devolution deals including the East Midlands Combined County Authority.

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