Devolution may not be sexy – but Labour can 'level up' England in a way the Tories never could

Angela Rayner has pledged a “devolution by default” approach to local government, promising to hand down sweeping transport, housing and infrastructure powers to local mayors and councils.

The plans – which aim to redistribute power away from central government – will see newly-created ‘unitary authorities’ take on a suite of responsibilities ranging from building reservoirs to running railways.

“Devolution will no longer be agreed at the whim of a minister in Whitehall, but embedded in the fabric of the country, becoming the default position of government,” Rayner said.

More decisions will be put in the hands of people with “skin in the game”, the deputy prime minister added.

They have been welcomed by experts as a “vital” redistribution of power – but some have questioned if the reforms go far enough.

Shifting power from Westminster to “town halls” could be the “defining legacy of this government”, said Rosie Lockwood from IPPR North.

“96p in every pound are taken by Whitehall. This is very unusual. It’s much closer to kind of 60-something per cent in Germany, where regions are less unequal,” she said.

“There’s such a high level of centralisation and this has created huge problems. So, for example, with transport, local councils will often have to go to Highways England and to central government when they have an issue with a local road, which is really ridiculous.”

“If you introduce local control, you’re empowering mayors and combined authorities to genuinely improve local services.”

New strategic authorities across England will manage planning powers over housing numbers and infrastructure like reservoirs. Smaller district councils will be demolished – plans they warn could create “mega councils”.

“[This may] prove the opposite of devolution, taking powers away from local communities, depriving tens of millions of people of genuinely localised decision-making and representation,” said Hannah Dalton, a councillor and vice-chair of the District Councils’ Network.

But you can overcome these problems with an injection of support to hyper-local authorities like parish and town councils, Lockwood said. Meanwhile, local mayors will be given serious powers: including unblocking planning delays for major building projects in England – including roads, junctions, water reservoirs, freight and logistics. They will also have the power to take control of an area’s rail services.

‘Devolution’ might not be a particularly “sexy” term, said Lockwood. But could precipitate a “genuine” levelling up.

“During the 2019 election, people really responded to the idea of leveling up. And obviously that was a different government, and the new government dropped that language. But people responded to this underlying idea: that feeling of being held back behind, feeling like their area isn’t getting its fair share.

“And so even if devolution isn’t kind of like a ‘sexy’ subject that, you know, we’ll be talking about over breakfast. But it is a big part of the solution.”

Fiscal devolution – the ability to generate and spend taxes locally – should follow, Lockwood added.

Antonia Jennings, CEO at Centre for London, echoed this claim. Financial powers are not currently very localised.

“Currently, prior to this bill entering law, England is one of the most centralised countries of all
Organisation for Economic Co-operation and Development (OECD) countries,” said Jennings. “London retains a mere 7% of the taxes it raises, significantly below New York who retain 50%.”

“London – alongside other Mayoral Combined Authorities (MCA) – still lacks the fiscal autonomy to make long-term decisions.”

Money will be key to real change, said Louise Gittins, the chair of the Local Government Association. An organisational shake-up is not enough; funding must follow.

“Devolution is not an end in itself and cannot distract from the severe funding pressures that are pushing local services to the brink.”

How unequal are England’s regions?

Britain’s regions are extremely unequal. According to Office for National Statistics (ONS) figures released last week, people in the most deprived parts of the country are now expected to die up to a decade sooner than people in wealthier areas.

The rankings are evidence of a “clear geographical divide”, the ONS said, with the 10 highest life expectancy areas for both women and men in southern England. The vast majority of areas with the lowest life expectancy were in Scotland and northern England.

“In a country where deep inequalities dictate your life expectancy, earning potential, and access to power based on where you live, devolution is a promise that must be delivered,” Lockwood said.

“Thriving regions are the engine of national prosperity. Empowering local places everywhere with the tools to drive growth and improve living standards is a no brainer.”

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