Letter to Jim McMahon MP on Devolution White Paper clarification

Jim McMahon OBE MP  

Minister for Local Government and English Devolution 

27/01/2025

Dear Jim,

As you know, the LGA has been closely consulting its membership since the publication of the English Devolution White Paper. We have established a task and finish group to provide political and strategic oversight of the LGA’s response, operating in parallel to the LGA’s existing Policy Boards that are thematically reviewing the various policy announcements within the White Paper. 

Both Joanna and I have been meeting with councils across the country and are in regular contact with our special interest groups, in particular the District Councils’ Network (DCN) and the County Councils Network (CCN). The LGA continues to meet with its member councils and other partners to understand the differing directions of travel that underline the diverse range of views.

Our conversations with the whole MHCLG team are welcome, particularly in how we work together to provide meaningful support and guidance to councils. Last week, alongside lead members of our Improvement and Innovation Board, I wrote to you on this point. We look forward to this continuing in the months and years to come. 

In the spirit of working with you constructively, I wanted to bring to your attention some reoccurring themes and issues that my colleagues and I have heard when engaging the sector:

Timelines

Councils have raised the critical need for clarity and reasonableness on the Government’s timelines for devolution and local government reorganisation (LGR), both in the immediate and long term. This includes if/when local elections are to be postponed, what is required from councils ahead of the March deadline, when the Government plans to bring forward legislation, and what the timeline is for Mayoral Strategic Authorities to achieve ‘Established’ status. 

All tiers of local government would welcome the Government clearly outlining reasonable and workable timelines in order to both manage resources and so as to not compromise day-to-day services. It is particularly important for those concerned with the impact on local elections. As you will know, running local elections are a resource intensive and costly undertaking for councils. Those that have requested elections to be postponed this year will already be working hard to prepare and plan for every eventuality. Quick decisions will minimise cost and disruption. 

Scale and delivery of LGR

Whilst it was helpful for the White Paper to set out the Government’s desired population benchmark, and we are grateful for subsequent comments you have since made in the Chamber, councils continue to ask for further information on how the 500,000-population benchmark for LGR was reached. We believe that decisions such as this should be made on robust data and evidence on the potential cost savings and benefits of LGR. The LGA is keen to work with your team further on this. We would also welcome a discussion on the Government’s flexibility to population benchmarking, bearing in mind local geographies, footprints, and rurality.  

It is important to understand how councils will be funded up front to deliver on LGR. Areas that have already gone through this process relied heavily on reserves to unitarise and some estimations for one-off costs for LGR range from £25 to £100 million. Due to the significant financial constraints councils are facing, many areas do not have strong reserves, and others are in worse financial positions. Therefore, it is important also to consider how debt will be managed as areas reorganise and new authorities are established to ensure new unitaries are financially viable, as well as considering the wider treatment of finance, audit, and assets during any transition or set-up process.  

Council services

There is real concern amongst our members over the impact on existing day-to-day council services as authorities pursue devolution and reorganisation, including workforce capacity and retention issues. Areas on the Devolution Priority Programme will need additional up front government funding, as well as capacity support to ensure existing services are not negatively affected. Learning lessons from recent LGR journeys and the forthcoming Spending Review will be critical to ensure councils have the long-term funding and certainty needed to provide the vital services.

Equally, much of the current and future policy agenda set out by this government will require local authorities to be empowered and resourced to deliver services for the benefit of local communities and residents. Focus on structural change could result in limited capacity to deliver on key areas of SEND, social care, housing and adoption of digital technologies, where real savings and growth can be achieved. 

Powers

It is important that the Government provides clarity on the transition from existing Combined Authorities to Strategic Authorities, and the practical distinction between the two entities. The White Paper is not clear how the more standardised powers of the new framework will be distributed within Strategic Authorities, nor on the clear need for local government to be part of the decision making as leaders of place at this level. Powers and responsibilities outlined within the framework must be adequately resourced to deliver at scale. Partnership working between constituent councils of combined authorities and mayors on shared priorities is extremely important. This model of equal partnership should be the foundation for future arrangements.

From our early analysis, there appears to be a transfer of some powers from local authorities to strategic authorities, such as on transport, Local Skills Improvement Plans, and strategic direction of affordable housing programmes. It would be welcomed if the Government could clearly define which powers belong at a local and strategic level, and how strategic authorities will work with local authorities to co-design and co-deliver services. We want to work with you to ensure that there is a system in which governance and scrutiny are transparent and effective, and that diversity of representative voices at a local level can still be heard at a strategic level.

There is a similar concern on unlocking inclusive growth. Devolution should not come at the cost of diminishing the vital role local government plays in supporting residents and communities and place-shaping. We are clear that local government has a critical and unique role in unlocking growth across all sectors and communities. Mayors and local government should work together to ensure funding decisions are made collaboratively and align with Local Growth Plans that are equally produced in partnership. It is hoped that the Government will underline the need for areas to work together to maximise growth opportunities across geographies. 

Community engagement

Given significant change to local structures, residents, communities and businesses will need to feel represented as councils embark on reorganisation. Ensuring that communities are engaged will be crucial to mitigating risk and capitalising on opportunities. 

As you know, the LGA believes that devolution is key to unlocking the further potential of local government. Members are concerned and would welcome discussions on how we attract, and indeed improve, the diversity of democratic representation as areas reorganise. Councillors are good public servants and go into local government for the right reasons. Councils across all levels of local government work hard to represent local interests. 

The LGA will continue to fulfil its role as the representative body for the local government family. I look forward to your response and seeing you at the LGA’s parliamentary reception tomorrow. 

Yours sincerely,