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How will Labour's plans for devolution actually work?

The Independent

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December 17, 2024

Angela Rayner, deputy prime minister and still the darling of her party, is a restless woman.

- SEAN O'GRADY

How will Labour's plans for devolution actually work?

Having only last week launched a set of radical reforms to England’s planning rules, she is now announcing the biggest shake-up of local government since at least the 1990s. It will force many smaller district councils into larger units, and encourage existing historic counties such as Essex, Kent and Norfolk to combine and create larger territories overseen by powerful “metro mayors”.

The idea is to have a system of “devolution by default”, and in particular, to devolve planning decisions to this more regional and “strategic” level of decision-making. Rayner says: “Our English Devolution white paper will be a turning point when we finally see communities, people and places across England begin to take back control over the things that matter to them; when our proud towns and cities are once again given the powers they need to drive growth and raise living standards as part of our plan for change.”

At a time when many local councils fear bankruptcy, it’s fair to say there’s some doubt about that...

What’s the idea?

As the government’s briefing paper puts it: “Greater devolution is a key way to kickstart economic growth, put more money in people’s pockets, and put politics back in the service of working people.”

Will it?

It’s by no means obvious. Successive governments have reformed the structures of local government every couple of decades, and there’s no evidence, via serious econometric studies, of any impact on “regional gross value added”.

Why is it happening?

There’s some sense that governments can’t resist the urge to meddle, born of a suspicion, justified or not, that local government can’t be trusted. Either way it’s disruptive.

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