One Year Of Labour: Full-Fat or Semi-Skimmed Devolution?
Either way, devolution is the agency of change
One year on and the English Devolution and Community Empowerment bill landed in my in box.
With full-fat devolution now on the table, I wonder if this bill will define Starmerism? AND Will this Prime Minister be remembered for rewiring the country OR simply renaming the plugs?
Sir Keir Starmer promised change and told the nation on the steps of Downing Street on 5th July 2024: "our work is urgent... and we begin it today."
For millions of voters, the ‘change’ they hoped for would help restore fairness and pride in their communities and country. The change they expected would not be just sloganeering and piecemeal levelling up gimmicks, but a genuine powering up of the regions, where opportunity matches the true potential of every part of the country.
Full-Fat?
The English Devolution and Community Empowerment bill could be a gamechanger for Starmer and provide some urgency into his plan for change. Let’s see if devolution will be the agency of change:
Combined and county authorities “Strategic Authorities” will be created with clearer control over transport, housing, skills and net-zero retrofit funding.
Standardised rules for budgets and transport levies are technocratic but crucial steps that free local leaders from annual tin-rattling.
AND they’ve built some new institutional plumbing to drive a much-needed culture change at the heart of our centralised system. The Council of the Nations and Regions is a statutory forum with a legal “solidarity clause” binding the centre to cooperate with Scotland, Wales and England’s mayors. A “potentially landmark innovation”, the council could bring about a culture change in how the state works. Meanwhile, the Mayoral Council for England, launched by Angela Rayner ahead of last October’s investment summit, has brought mayors to the table with ministers. All this and stronger relationships between Ministers and Mayors sounds good BUT is it really accountability and governance? The revival of the Local Audit process is interesting but the devil is in the detail. There is definitely a feeling of cosiness between Mayors and Ministers - but what about Parliament?
AND money is on the move too. The National Wealth Fund was seeded with £27.8bn and already leveraging £1.8bn of private capital in its first six months. At the International Investment Summit, the government secured £63bn of pledges and 38,000 prospective jobs, much of it earmarked for regions outside London. And spending departments are shifting cash too. Just last week, Wes Streeting diverted £2.2bn to rural, coastal and working-class communities where waiting lists are longest.
In other urgent and more positive moves, the Government are pulling sectoral levers to unleash Britain’s potential. The Planning & Infrastructure Bill promises a 150-scheme fast-track to consent, a single national grid queue and blunt force against endless local appeals to get Britain building again. Great British Energy has been legally established with an £8.3bn pot and an early tilt towards small-modular reactors as well as renewables, headquartered in Scotland. And billions of pounds of investment in transport is to be invested by Rachel Reeves, on bus, tram and train projects across the North, Midlands and West Country.
Semi-Skimmed?
While there seems to be a lot of work in progress coming from the Government, Britain remains one of the most centralised states in the developed world. The Government’s Devolution White Paper exposed the “doom loop” of micromanagement:
DID YOU KNOW: English local government raises so little of what it spends, every extra pound still requires a Treasury permission slip.
The Office for Budget Responsibility pegs GDP growth at a limp 1% for 2025, with productivity still “structurally weak”. That fragility underscores why full-fat devolution matters more than ever. Genuine fiscal freedom, long-term capital settlements and local revenue-raising must be on the table sooner or later if devolution is to drive economic growth.
The Government must let go and empower local leaders with genuine authority to shape their regions' economic futures and deliver change.
Imagine a framework where combined “strategic” authorities retain a portion of the income tax and VAT generated within their boundaries. This would incentivise growth and ensure that proceeds are reinvested locally, addressing regional disparities.
Imagine granting authorities the ability to issue municipal bonds, backed by the National Wealth Fund, to unlock capital for infrastructure or green industry projects. Regions could pursue their own ambitious development plans without constant recourse to central government approvals.
Imagine if the Council of Nations and Regions (or similar) had power to review legislation impacting regional equity. This sounds radical, but it would simply echo Germany's Bundesrat - one of the most successful models - and give regions not just a voice, but tangible influence where national policymaking affects them.
This is not a call for a constitutional revolution but would deliver urgent and practical rebalancing. A state that trusts its places and prizes outcomes over oversight. A new political economy of empowerment, grounded in fairness and ambition.
Sounds good to me! We just need a lot more imagination and less caution from mission control at No:10.
These and so many more questions and answers will be discussed at our next Live Podcast and Soiree
DO MAYORS HAVE THE “A” FACTOR?
WHAT DOES THE NORTH NEED TO BETTER CONNECT ITS PEOPLE AND PLACES?
3.00-7.00PM • WEDNESDAY 30TH JULY • MANCHESTER • ONLINE
