Making Devolution Work: A Transformational Opportunity for the UK
The UK’s Devolution White Paper represents a significant milestone in the evolution of local governance. By transferring greater powers and funding to regions, devolution has the potential to rebalance the economy, drive local innovation, and improve public services in ways that reflect regional needs. However, while the policy direction is clear, ensuring that devolution delivers on its promise will require focus, leadership, and a commitment to making it work in practice.
The opportunity ahead is vast. With both new Combined Strategic Authorities (CSAs) and new Unitary Authorities (UAs) set to emerge, the challenge is not just about establishing new structures but about delivering real outcomes for people, businesses, and communities. To do this, leaders must prioritise three key areas: getting early decisions right, establishing strong partnerships, and moving beyond governance to delivery.
The First 100 Days: Setting a Clear Direction
For newly devolved regions, the early months are crucial. The way new Combined Authorities and Unitary Authorities establish themselves will determine their credibility and effectiveness in the years to come. Experience from existing devolution settlements suggests that success depends on:
- A strong, unified vision that aligns political, business, and community interests.
- Early investment in strategic priorities such as transport, skills, and business support.
- Clear governance and decision-making structures that enable action rather than bureaucracy.
For new Combined Strategic Authorities, which will bring together multiple local councils under a regional governance model, the key challenge will be to establish strong relationships between constituent authorities and ensure that devolution delivers meaningful economic and social benefits. These authorities must act as catalysts for regional growth, shaping investment strategies and infrastructure development.
Meanwhile, new Unitary Authorities, which will replace existing two-tier local government structures in some areas, face a different challenge: ensuring a smooth transition from district and county councils while maintaining service delivery. Early decisions on financial sustainability, workforce integration, and community engagement will be critical to their success.
When these new authorities get these fundamentals right, they build public confidence, attract investment, and demonstrate the real benefits of devolution. The alternative—slow decision-making, fragmented priorities, or uncertainty—risks undermining the potential benefits before they can be realised.
Beyond Structures: Delivering Growth and Public Value
For devolution to succeed, it must be measured not by the governance arrangements it creates but by the impact it delivers. At its best, devolution can:
- Support economic rebalancing – allowing regions to shape their own growth strategies and attract investment tailored to local strengths.
- Improve public services – integrating health, transport, and housing policies in ways that work for local communities.
- Drive innovation and sustainability – empowering regions to lead on green growth, digital transformation, and new models of service delivery.
However, turning these ambitions into reality requires expertise, collaboration, and a focus on delivery. It is essential to recognise that devolution is not a one-size-fits-all solution.
Challenges and Pitfalls to Avoid
Devolution must be tailored to local needs rather than driven by central government’s preferred model. As Councillor John Merry, Chair of Key Cities and Deputy Mayor of Salford, has noted, the government’s current approach to devolution, which often emphasises large unitary authorities as a prerequisite for greater powers, does not suit all areas. While a move towards larger authorities may improve efficiency in some regions, it risks overlooking the distinct economic and social needs of smaller urban areas. Local leaders must be actively involved in shaping devolution settlements to ensure they work in practice, not just on paper.
Similarly, the County Councils Network (CCN) has warned that while local government reorganisation may be necessary in some areas to unlock more ambitious devolution deals, it must be evidence-based. They have raised concerns that breaking up county councils into smaller unitary authorities could create structures that lack the scale to drive economic growth or deliver major infrastructure projects effectively. This highlights the need for carefully considered and locally led approaches to reform.
Another critical risk is funding uncertainty. Many local leaders have welcomed devolution in principle but remain concerned that new authorities will be given responsibility without the long-term financial certainty needed to deliver real change. Without multi-year funding settlements and greater fiscal autonomy, there is a danger that new authorities will find themselves constrained by short-term financial pressures rather than empowered to drive transformation.
The National Opportunity
While much of the focus has been on how local areas can use devolution to their advantage, the opportunity is equally significant for the UK as a whole. A successful devolution agenda would mean:
- A stronger, more balanced economy where growth is not concentrated in London and the South East but driven by thriving regional economies.
- A more responsive state, with policies shaped closer to the people and businesses they affect.
- Greater trust in government, as local leaders demonstrate the ability to deliver tangible improvements.
The next phase of devolution must be a shared national effort—where central government, regional leaders, businesses, and communities work together to ensure that this is not just a shift in structures but a real shift in power, funding, and impact.
The UK stands at a crossroads. If devolution is done well, it has the potential to unlock one of the most significant economic and social transformations in a generation. The question is whether we will seize this opportunity or allow it to become another layer of bureaucracy. The choice, and the challenge, lies ahead.
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