UK government sets out devolution reforms to widen local control

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UK devolution reforms

Highlights

English Devolution and Community Empowerment Act grants mayors new powers over transport, planning, housing, and regeneration, making devolution the default across England.
The Overnight Visitor Levy introduces new local revenue-raising capabilities, while all mayors now hold final authority on mass transit projects following the May round.
Nearly 300 of the poorest communities are receiving up to £20 million each for Pride in Place, with local people deciding how funds are allocated rather than central government.

Devolution agenda expands local powers

As set out in a GOV.UK speech by Communities Secretary Steve Reed at the Remaking the State Annual Conference in London, the government is advancing a reform agenda built around devolution by default, place-based delivery and stronger power for service users relative to providers.

Reed says the English Devolution and Community Empowerment Act makes devolution the default option and gives mayors new powers over transport, planning, housing and regeneration. He adds that the legislation is intended as a starting point rather than a limit, with every region that wants devolution set to receive it and further work planned on deeper fiscal devolution.

The measures include the Overnight Visitor Levy as an early step toward local revenue-raising, while the Right to Request process allows mayors to assume additional powers as capacity grows. Following the first round, concluded in May, all mayors now have the final say on mass transit projects, including trams, in their regions.

Reed also points to changes in public service governance, including Deputy Mayors for Health in Greater Manchester and South Yorkshire, alongside pilot approaches in Liverpool, South Yorkshire and the North East covering education, the arts and flood management. Integrated settlements are designed to give mayors control over a single budget spanning transport, regeneration, housing, skills, the environment, health and public service reform.

Regional inequality drives policy focus

Reed frames the reforms as a response to England's entrenched economic imbalance, arguing that over-centralisation has limited the ability of regions to shape their own growth and contributed to weak trust in politics. He contrasts the UK model with more decentralised systems in Europe and says local control can support more inclusive economic development and longer-term investment planning.

The speech links the devolution agenda to wider community empowerment, including local decision-making over spending through the Pride in Place programme. Reed says almost 300 of the poorest communities are receiving up to £20 million each, with decisions on how the money is used intended to rest with local people rather than central government.

He argues that stronger citizen influence over services and neighbourhood priorities can help improve responsiveness, support preventive public services and rebuild public trust. The broader policy aim is what he describes as double devolution, shifting power not only from Whitehall to regions, but also from institutions directly to communities.

Our earlier report on mounting pressure on Flood Re examined how more high-value homes entering the UK’s flood insurance backstop are driving up repair costs and shifting subsidies toward expensive properties. We also covered proposals to let the scheme raise premiums faster than inflation and cap payouts on costly claims, alongside warnings that rising flood risk could create broader housing-market and credit stresses as the 2039 closure date approaches.

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