The foreword by the Deputy Prime Minister in the Devolution White Paper stated if “we’re going to build an economy that works for everyone, we need nothing less than a completely new way of governing.”
What the White Paper sets out is that unless you are already a unitary council covering a population of 500,000 residents, with a combined authority voting on a simple majority basis, the White Paper aims to change your current governance structure by agreement or if necessary, under direction.
The devolution model advocated in the white paper will create a Strategic Authority for every part of England. There are three levels of Strategic Authority: foundation, mayoral and established Mayoral; all established either as a Combined or Combined County Authority under the Local Democracy, Economic Development and Construction Act 2009 or the Levelling Up and Regeneration Act 2023.
Although at foundation level a Mayor is not immediately required, plans for the election of one in the following 18 months are required to unlock devolved powers and freedoms. The devolution powers relate to what is termed as ‘areas of competence’ which includes what is linked to the growth agenda relating to, amongst other things, transport, housing and skills. Additionally, it will be possible for any of the functions of a local authority to be exercised by a Strategic Authority, which the white paper says will complement local councils’ powers.
Although this has been possible with agreement from constituent authorities (since the Cities and Local Government Devolution Act 2016), with the shift in power it maybe that this time it will be without agreement from the constituent councils. The detail on this at present is not available but public health and public safety are mentioned together with a potential new power to promote economic, social and environmental aims. These powers will have to be carefully implemented to ensure that the new simplified governance structure is not then complicated by overlapping functions. Governance may become even more complex if coterminous public services like fire, heath and job centres come under the Mayor’s purview.
This new way of governing will require constituent unitary authorities to work in partnership with the strategic authority. Unanimous voting requirements from constituent authorities will be removed meaning that decisions will be decided on a simple majority changing the dynamics in some of the already established combined authorities. Although the White Paper surprisingly makes no reference to it, strong and effective scrutiny by constituent authorities will be crucial and an essential part of this new way of governing.
The reorganisation model advocated in the white paper will create unitary councils in every part of England to cover, unless excepted, a population of 500,000 residents. This will affect all areas in England that currently have a two-tier system of District and County Councils.
Depending on what is implemented for each area either:
- the existing councils will be abolished, wound up and dissolved with a new council being created (which happened in Cumbria when the districts and the county were abolished); or
- one of the existing councils will become a continuing unitary council (which happened in Somerset and North Yorkshire when all of the districts were abolished and the county became the new unitary). These details will be set out in the relevant Structural Change Order (“SCO”) for the area, in accordance with the Local Government and Public Involvement in Health Act 2007 (“the 2007 Act”).
While the terms of the SCO will be determined by the Secretary of State and ultimately subject to parliamentary approval, the Secretary for State will be looking to engage with councils about the terms of the SCO through which any proposal will be implemented. As such, there is scope for councils to bring influence to bear on the provisions of the SCO and consider the priorities and ‘must haves’ for potential inclusion. Matters for potential inclusion are listed in the 2007 Act but other incidental matters might include the leadership and composition of a shadow executive, implementation teams and the appointment of interim statutory officers, the Code of conduct that applies and the provision for a scheme of allowances.
Another part of the new way of governing included reference to the Localism Act 2011 and councils having sufficient powers to maintain high standards of conduct. The ten week consultation on making changes to the standards regime has commenced already seeking views on the introduction of a mandatory code, available sanctions and the arrangements that a council must have when dealing with complaints. All of the measures being consulted on will strengthen the current regime and support monitoring officers. If the sanctions are to have more serious consequences the Government are proposing an appeal system and are considering whether a national body would be required. Responses to the consultation are due back by 26 February 2025.
The Government invited proposals from councils wanting new ways of governing, which are currently being considered as part of a priority programme. The complexity of local government reorganisation and the huge range of matters which need to be considered and resolved in a very short period of time, will require a huge amount of work by members and officers. It is not known what changes the English Devolution Bill will make to the processes that create these new authorities and whether it will make the next stages any easier to manage.
For more information
For more information on the implications of the Devolution White Paper, contact Claire Ward.