Local areas could get more powers and cash from central government – but face government pressure to adopt unitary models, following this week’s Conservative Party conference.
Speaking this week at the conference in Manchester, chancellor Sajid Javid announced that the government was rebooting its devolution drive, promising a new white paper on the issue.
He said the move would give “more local areas more local powers to drive investments in the infrastructure and services they know they need”.
The English devolution white paper will set out how further powers and funding would be devolved across England, the Treasury said in a statement.
Director of the Northern Powerhouse Partnership, Henri Murison, welcomed the announcement, “particularly if it extends to taking more control of existing local spending from Whitehall, as well as retaining taxes raised locally and allowing areas to capture the additional revenues their investments generate.”
He said that passing investment directly to mayors and combined authorities was the best way of funding local transport services.
Martin Hill, devolution spokesman for the County Councils Network, and leader of Lincolnshire County Council said the announcement could help local government deliver on housing, care and economic growth.
However, he said that the government needs to move away from a city-centric approach to devolution.
He said: “The major sticking point for many counties under the previous government was the requirement for a metro mayor in return for a full suite of devolved powers. Whilst this model can work in some areas, there is little evidence it is suitable for large and diverse county areas.”
However, there were hints from local government secretary Robert Jenrick that the new government is set to push more councils towards unitary status.
Quoted in Planning magazine, Jenrick told an event organised by think tank Institute of Economic Affairs think tank: “I appreciate the fact that people want to have a sense of identity and the small scale brings with it a closer connection with local communities. But it doesn’t feel to me as it that’s got a long-term future.
“I appreciate the upheaval but I do think we need to move towards a model that provides a better value for money for taxpayers, and you’re able to look much more strategically at these challenges like housing and transport.
“I will certainly be encouraging local councils to move in that direction.”
In another announcement set to affect local government finances, Javid said that the government wanted to raise the National Living Wage to £10.50 by 2024.
Earlier this week, in a House of Commons briefing, the Local Government Association said: “Unless significant new money is invested into the system, it will not be possible to meet demographic, inflationary and National Living Wage pressures, and stabilise the provider market.”
