English devolution white paper sets plan for simpler local government system

William Hall, public policy expert at Pinsent Masons, was commenting on the government’s recently-published white paper, “Power and Partnership: Foundations for Growth”. The paper sets out the Labour government’s plans for devolution and local government, aiming to drive economic growth, raise living standards, and enhance local governance through unprecedented devolution of powers and funding.

The paper sets out to standardise and rationalise the patchwork of local government arrangements across the UK, encouraging the replacement of two-tier authority systems with single unitary authorities. The government will facilitate local government reorganisation for two-tier areas, and for unitary councils where there is evidence of failure or where boundaries are hindering ability to deliver. They will invite proposals for reorganisation from these areas with new unitary areas most likely to be larger than a population of 500,000.

Hall said: “The government, alongside the philosophical ambitions for devolution, will be hoping that the drive to reform two-tier systems creates cost savings that allow local government to increase capacity, a hugely important step for the administration of the boom in housing that the chancellor is attempting to initiate.”

The paper also sets forth a vision for a more decentralised England, where local authorities and mayors are granted significant autonomy to shape their regions’ futures. Mayors will be provided with enhanced powers, including over local transport, housing, and economic development.

There will be a push towards mayoral strategic authorities voting on a simple majority system, which will reduce the ability for an individual council leader to use veto. Additionally, a new framework will be put into legislation setting out what powers each type of strategic authority has, with the mayoral strategic authorities provided with the most “far-reaching and flexible powers”, according to the paper.

The government is also keen on increasing the number of directly elected mayors (DEMs). “While some areas of the country are not willing to go down this route, there is increasing pressure for them to do so. There are significant political dynamics at play when it comes to DEMs with political parties assessing whether or not this will hurt or hinder in their areas,” said Hall.

The document details a significant increase in funding for local government, with a focus on long-term investment in infrastructure, skills and public services. This includes a commitment to multi-year funding settlements to provide financial stability and enable strategic planning. An integrated funding settlement will give areas power to move funding between currently allocated policy areas. This will be done first with a tranche of existing mayoral areas.

To support local transport integration, new powers will be given with mayors provided with a statutory role in governing, managing, planning and developing the rail network. This will include a right to request greater devolution of services, infrastructure and station control where it would support a more integrated network. Mayors will also take on powers to coordinate their road network.

All areas will be required to produce a spatial development strategy, supported by the majority of constituent members. Mayors will have new development management powers including the ability to call in strategically important applications. Mayoral strategic authorities will also be able to set the strategic direction of any future affordable housing programme.

Planning law expert Mike Pocock of Pinsent Masons described the plans set out in the paper as “an exciting move” which “will make a real difference to how housing and development sites are brought forward through the planning system”.

“The planning pendulum is very much swinging back to local and regional power bases, where so many have advocated it should have been for some time since the abolition of regional spatial strategies in 2011,” he said.

“The stronger partnership between Homes England and established mayoral strategic authorities set out in the paper is an interesting one and sees Homes England move to a more regionalised model. Homes England has such an important role to play in unlocking challenging sites and is focussed on accelerating the building of housing in England. Its role has just taken on a renewed importance and the new leaders of the agency, to be appointed following the stepping down of current chairman Peter Freeman and chief executive Peter Denton last month, will have their work cut out once they are identified and appointed.”

However, he noted some caution, warning that “fundamental and seismic changes to the system will inevitably lead to a period of disruption”.

“It is hoped that this does not offset any gains that can be made in driving forward the positive approach to promoting development and new housing,” he said.