What can we expect from devolution and local government reorganisation?
With the English Devolution and Community Empowerment Bill expected later this year, David Atkinson, our National Head of Land and Development, reflects on the impact of devolution and local government reorganisation, highlighting the opportunities and collaboration it will require.
The Bill will bring an end to the traditional two-tier County and District local government structure in most of England. While some areas have already moved away from this model - replacing it with a patchwork of Unitary and Combined Authorities (some with elected mayors) - this Bill aims to standardise local governance with a new two-tier system.
The new structure will include:
- Combined Authorities at the top tier, covering populations of around 1.5 million (or possibly fewer in some cases). These will have strategic responsibilities such as housing, transport, planning, environment, and economic development at a regional level.
- Unitary Authorities at the lower tier, serving populations of about 500,000 (or possibly fewer in some cases). These will take on the full responsibilities currently held by District Councils (including homelessness) plus key County Council duties like adult and children’s social care.
One of the important things to note is how responsibilities will be divided. For example, Combined Authorities will set the housing strategy across a wider region, but Unitary Authorities will deliver the local housing plans and handle individual planning permissions. This model mirrors existing arrangements in places like London and Greater Manchester, where multiple layers of local governance work in tandem.
Unitary Authorities remain directly elected, but Combined Authorities are currently run by representatives of their constituent councils. The Government aims for all Combined Authorities to have elected mayors, unlocking access to devolved powers and funding.
Overall, the number of authorities will shrink - from over 330 now to roughly 200 in the future - representing a major transformation of local government in England.
What does this mean from a land and development perspective? Existing contracts will transfer to successor authorities, and transitional Shadow Authorities - made up of representatives from current councils - will manage decisions during the changeover. This period will likely bring some uncertainty, with staff and contacts moving around or potentially leaving the sector.
The reshaping of local government should increase opportunity. For instance, councils approaching reorganisation may accelerate projects to leave a positive legacy. New funding streams might flow directly to Combined Authorities, especially for brownfield developments. Mayoral Combined Authorities may also look to expand regeneration tools such as Mayoral Development Corporations - an approach that has supported flagship projects like Stockport Interchange.
It’s clear this period will require patience and adaptability. Historically, it takes around three years post-reorganisation for new authorities to fully bed in their strategies and functions. The transition period will likely extend to around 2030 before the new structures settle completely.
As local government evolves, staying connected with emerging authorities and understanding how these changes may influence land development and project delivery can help partners navigate this period of transition. The coming years will be an important time as authorities build new relationships and set their priorities.
I look forward to following this journey and continuing to support local government and partners as these reforms take shape. By this time next year, we should have a clearer picture of the new authority boundaries.