Rayner plans local council overhaul and more powers for existing Mayors

The government has promised to overhaul local government and make devolution to new Strategic Authorities the default option in a white paper published yesterday (16 December) that promises “fewer politicians and a more efficient state.”
Deputy prime minister Angela Rayner said: “Micromanaging from the centre combined with short-term, sticking-plaster politics has left England’s regions in a doom loop, unable to achieve their potential.”
She also announced a range of areas where existing Metro Mayors would have stronger powers, notably over transport, following the lead of Greater Manchester’s integrated Bee Network which has ambitions to add rail services to its public run bus network.
“We will give Mayors strong new powers over housing, planning, transport, energy, skills, employment support and more, backed up with integrated and consolidated funding,” she said.
The next settlement between government and Mayoral Combined Authorities will give mayors in Greater Manchester, Liverpool City Region, North East, South Yorkshire, West Midlands and West Yorkshire Combined Authorities a consolidated budget to choose where to spend across housing, regeneration, local growth, local transport, skills, retrofit, and employment support.
Greater Manchester Mayor Andy Burnham said: “We’re going to be a less centralised, more devolved country going forward. I think finally England has a model of devolution that is a settled and agreed cross party-consensus. So it’s really that significant.
“We’ve changed the country. It’s incredible what Greater Manchester has achieved.”
The white paper proposes the creation of larger councils serving 500,000 people and the abolition of the two-tier county system. For Lancashire, this would mean the merger of district councils like Ribble Valley, West Lancashire and Pendle into larger entities and the abolition of the top tier Lancashire County Council altogether.
The plans are opposed by the District Councils’ Network which says the “creation of mega councils” could prove “the opposite of devolution”. Hannah Dalton, vice-chair of the network, said there is “little evidence” money will be saved.
Babs Murphy
Babs Murphy, chief executive of the North and Western Lancashire Chamber of Commerce, welcomed the government’s White Paper on devolution as “a critical opportunity to empower regions like Lancashire to shape their own economic destiny”.
She said greater devolution has the potential to unlock significant investment, drive innovation, and deliver solutions that reflect the unique challenges and opportunities of our county.
“For this to be truly effective, it must be accompanied by genuine decision-making powers and sustainable, long-term funding commitments to deliver change,” she said.
“We would urge the government to engage closely with the business community during this process. Businesses are the engine of our regional economy, and their input is vital in ensuring that any new structures of governance foster growth, create jobs, and improve skills provision.
“The Chamber looks forward to working with local and national leaders to ensure Lancashire’s voice is heard and to maximise the benefits devolution could bring to our region.”
The white paper also said local authorities will have Growth Hub funding rolled into the Integrated Settlement and the Office for Investment will work with Mayors to develop and market strategic investment propositions.
The paper said: “We will work with Established Mayoral Strategic Authorities to develop a future regional innovation funding programme as part of the second phase of the Spending Review, and UK Research and Innovation will extend its regional partnerships to other Mayoral Strategic Authorities.
“Strategic Authorities will also be key partners in boosting culture, heritage and the visitor economy, supported by close integration with arm’s length bodies like Historic England.”
However, the organisation representing local councils said they were under “severe funding pressures” and sought compensation for the rise in employer national insurance contributions.
Cllr Louise Gittins, Chair of the Local Government Association, said: “Devolution is not an end in itself and cannot distract from the severe funding pressures that are pushing local services to the brink. It is vital the forthcoming provisional Local Government Finance Settlement provides councils with a significant and sustained increase in overall funding that reflects current and future demand for services. This should include compensation for the changes to employer national insurance contributions announced in the Budget.”