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The English Devolution Bill is intended to establish devolution as the default model across England, empowering mayors and combined authorities with expanded fiscal, planning, and policy-making powers. The legislation’s key reforms are outlined in the December 2024 Power and Partnership: Foundations for Growth white paper. They include a statutory devolution framework, enhanced mayoral authority, multi-year funding settlements, and the replacement of two-tier local government structures. The bill forms part of the government’s broader “devolution revolution” to address regional inequalities, decentralise decision-making and streamline local government activity. 

Given there is so much potential change to prepare for in the planning sector and the fact that consultations are about to close, we thought it would be timely to have a look at what’s in store. 

Five key points on the devolution bill 

Kicking off with some key takeaways:  

1. Statutory devolution framework replaces ad-hoc negotiations 

The bill codifies a three-tier system for strategic authorities, ending the previous “deal-by-deal” approach.  

A “devolve or explain” principle requires ministers to respond formally to strategic authorities’ requests for additional powers.

2. Unprecedented new powers for mayors

The bill grants mayors authority to:

• Set spatial development strategies and approve major housing projects
• Control local transport budgets and infrastructure planning
• Design skills and employment support programmes
• Lead climate action plans and energy grid investments
• Reform public services through health and wellbeing partnerships

Established mayors will manage integrated settlements – consolidated budgets combining transport, skills, and growth funding from 2025/26.

3. Abolition of two-tier council framework

The legislation mandates:

• Abolition of district/county councils in favour of single-tier authorities serving ≥500k residents
• Automatic designation of existing unitary councils (e.g. Bradford) as strategic authorities
• Ministerial powers to compel council mergers where local consensus fails.

4. New funding mechanisms and fiscal flexibility

Key financial reforms include:

• 10-year integrated settlements for established mayors, beginning with £630m for Greater Manchester and £388m for West Midlands in 2025/26
• Council tax flexibility allowing exceptional rises (9.99%-14.99%) for councils receiving emergency support
• Funding allocated according to assessed needs rather than competitive bidding processes.

5. New political bodies and constitutional reforms

The bill establishes:

• Mayoral Council: Regular forum for mayors and deputy PM to shape national policy
• Council of Nations and Regions: Permanent body integrating English mayors with devolved administrations
• Legal requirement for Whitehall to consult mayors on relevant legislation.

Impact on the planning landscape

The bill is expected to reshape the planning landscape in the UK significantly through several key changes:

• Strategic planning powers for mayors and combined authorities: Mayors and combined authorities will be granted new powers to set spatial development strategies, approve major housing projects, and manage local transport budgets.

• Introduction of statutory strategic plans: The Bill mandates combined authorities, county councils, and unitary authorities to prepare spatial development strategies, ensuring better coordination across regions. This will align housing development with local infrastructure plans and address gaps in planning since the abolition of regional spatial strategies in 2010.

• Streamlining of planning decisions: To speed up planning decisions, the bill proposes two key changes:
  • Allowing local planning authorities to raise their own planning fees (up to full cost recovery), with funds ringfenced for investing in local planning services.
  • Introducing regulations to delegate certain planning decisions to planning officers rather than local planning committees, potentially speeding up decision-making processes.

• Updated development corporation powers:  The Bill expands the remit of development corporations, allowing them to manage greenfield land and urban extensions while incorporating sustainability objectives into their plans.

• Reduced opportunities for legal challenges: A reduction in the opportunities for legal challenges to major projects is also proposed, limiting them to two chances, with one opportunity for challenges deemed entirely without merit.

Impact on housing providers

There has been some discussion about the effect on housing providers, including housing associations and specialist housing for older people providers.

Here’s our take:

Impact on housing associations

1. Greater local control: Housing associations will need to adapt to a more decentralised decision-making environment, with mayors and combined authorities assuming greater control over housing strategies.
2. Strategic partnerships: Housing associations will likely engage more closely with Mayoral Strategic Authorities and Homes England through Strategic Place Partnerships, which could influence their development plans and priorities.
3. Funding changes: The move towards full devolution of funds for affordable housing may alter how housing associations access funding and deliver projects.

Specialist housing for older people

1. Increased focus: The Older People’s Housing Taskforce has recommended that one in 10 homes delivered by Homes England should be for older people, potentially increasing opportunities for specialist providers.
2. Affordability concerns: The taskforce found that current private leasehold housing options for older people are “unaffordable” for most English households aged 75 and over, suggesting a need for more affordable retirement housing.
3. Funding expansion: There are calls to expand funding for Homes England’s Older Persons Shared Ownership scheme, which could benefit specialist providers.
4. Planning changes: Recommendations include changing planning guidance to encourage the development of more affordable retirement housing, potentially easing the path for specialist providers.
5. National strategy: The task force has called for a long-term “national housing strategy” for the ageing population, which could provide more clarity and support for specialist housing providers.
6. Integrated approach: The Adult Social Care Reform White Paper emphasises an integrated approach to housing, health, and care for older people, which may require closer collaboration between specialist housing providers and health/care services.
7. Quality standards: New minimum standards for support provided to residents in supported housing are expected, which will affect providers of specialist housing for older people.

Implementation timeline

• April 2025: Consultations conclude for six priority areas

These areas are aiming to have mayoral elections in May 2026. They will receive the full backing of the government to deliver on ambitious timescales for devolution. The programme aims to provide a fast-track to mayoral devolution for areas ready to come together under sensible geographies that meet the criteria set out in the White Paper.

• May 2026: First elections for new mayors in priority areas.

• 2026/27: Integrated settlements will expand to regions such as North East, South Yorkshire, and Liverpool.