English Devolution & Local Government Reorganisation

Local government in England has long been a complicated patchwork of varying systems, reflecting the intermittent enthusiasm of successive governments towards the process of devolution. As a result, England remains by far one of the most politically centralised countries as compared to its European peers. The government’s determination to change this through comprehensive legislation promises to be one of the most radical constitutional shakeups since the last reorganisation of local governance decades ago in the 1970s.

Presently, most local government in England is conducted through what is known as a“council”, which usually operates under one of two possible structures. “County” councils are responsible for far-reaching functions, such as the administration of education in localities under their jurisdiction or policies pertaining to public transport and roads. “District” councils have a narrower but nonetheless important scope, typically overseeing the delivery of vital local services such as reviewing planning applications or handling waste management. The former can cover a population size of up to half a million, while the latter could be responsible for around 100,000 residents. England’s councils possess a very limited ability to deviate from the fiscal and policy framework dictated by the central authorities in Westminster, which many argue has fostered an unhealthy culture of dependence as well as cultivated an exposure to the unpredictability of national politics, thereby hindering long term thinking. Conversely, strong and autonomous regional government is a well-establishedtradition in European countries. By way of example, in Germany, the “Länder” exerts significant control over a broad horizon of consequential public policy domains, often setting a tailored direction of travel based on the circumstances of their region.

With the English Devolution and Community Empowerment Bill going through Parliament, devolution is set to deepen across England, and more power will depart from Westminster and into the hands of local people.

A Reconfiguration of Local Government: LGR

A preliminary step towards a more streamlined framework for local government is the process of “Local Government Reorganisation” (LGR). The government wants the existing two-tier division between councils to be supplanted by larger merged “Unitary” ones. In practice, this means fewer but bigger councils, grander responsibilities, and the regionalisation of decision-making. The underlying rationale for this comprises of both economic and political calculations. On the one hand, combining authorities in areas with geographic overlap can enhance economies of scale and bolster much needed cost efficiency. The unification of councils in North Yorkshire (which was converted into a unitary authority in 2023) is projected to save £40 million by 2026. In Cumbria, seven council leaders were replaced by two. Proponents argue that consolidation not only cuts administrative overhead but also promotes a more visible leadership who have a better understanding of their area’s distinct peculiarities. Arguably, the core feature (and perceived game changer) of the government’s bill is its emphasis on multiplying the number of directly elected mayors. This executive post is the political leadership for the currently combined authorities in England, which supporters believe enable a dynamism at odds with the otherwise mundane reputation of local government. For example, initiatives spearheaded by figures like Ben Houchen or Andy Burnham have earned them commendation with their electorate whilst demonstrating that the office itself can generate tangible results. Although some warn against the risk of bureaucratic bloat, eventually almost 80% of England (approximately 44 million people) will in some way shape or form fall into the orbit of an enlarged local authority with a more expansive range of powers.

What’s next?

Going forward, crucial Mayoral elections will be held in 2026 and 2027 throughout England. From Greater Essex to Cheshire and Warrington, freshly created Mayors leading newly constituted authorities will command not just larger budgets but greater powers over transport, infrastructure, economic planning, and much more.

Businesses with a focus on sectors which are policy intensive should be on notice that decision-making will no longer sit squarely in Westminster but will be in the hands of local leaders. The dynamics of influence, funding, and delivery will change. Almost every organisation will need to re-think future advocacy efforts. Building up an entirely new set of relationships will be essential to navigating this changing political landscape.

Navigating these changes will be challenging, if you would like to discuss how this impacts your organisation, do get in touch.