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Devolution and LGR: A Guide for Local Authorities

Photograph outside Downing Street

 

Big changes are coming over the next couple of years for local authorities. These new measures have been positioned as essential to rebuilding and reforming, with the government saying these changes are needed. However, it’s important to note that the English Devolution bill is not the same thing as Local Government Reorganisation (LGR), but rather they are both catalysts for greater governmental change to come.  

In this guide, we can help you navigate these new changes and understand the various considerations necessary. Whether you are curious about the timelines or the history of these frameworks, we have it all covered here with the most current information on developments. 

Contents


What is devolution? 

The ‘English Devolution Bill’ is the creation of Strategic Combined Authorities, a new model for local governance combining several local authorities. The main goal of devolution is to achieve universal coverage of Strategic Authorities, involving several councils working together to cover areas that people both recognise and are familiar with.  

In short, devolution is giving more powers and more money to local governments and communities, devolving power from the central government, which has, in recent years, been slow, ineffective and not connected to local communities. For many local authorities, devolution has been the most democratic answer to this challenge. 

However, devolution is not a new concept and has been discussed for decades and more, even in other countries. 

The English Devolution bill: History and timelines 

History 

English devolution has been a suggestion in our government for some time, with it being first proposed in England over a century ago. 

English Devolution Timeline

Since then, and despite austerity and insufficient funding for local government over the past 14 years, devolution has been discussed to be the catalyst of positive change the country needs. 

Now, with the English Devolution Bill, we know when this will come into enforcement, whilst the specifics on which councils will become Strategic Authorities are still under consultation and debate over the coming months. 

Timelines 

English Devolution – live on 1 April 2027 

  • Where councils are being merged from district and boroughs/2nd tier councils into new “super councils” - Unitary Authorities. Devolution is about merging districts and boroughs into a unitary 
  • Each new council has 500,000 residential properties 
  • 320 second-tier councils turning into 48 – (not affecting London or Metropolitan councils) 

We are still in the proposal and redesign period, and the government still need to decide which councils to merge with the proposals by December to March 2026, as well as which to implement. 

 Current Parliament Goal – ending 2029 

  • To achieve “universal coverage” of Strategic Authorities and complete the first wave of Local Government Reorganisation into unitary authorities. 
  • They believe a “devolution priority programme” will help fast-track progress and help see more new mayors elected in May 2026 for several areas that will become new Strategic Authorities. 

Recent developments in 2025 onwards: 

  • Surrey to go live – April 2027 – with other councils following April 2028, with proposal deadline at the end of September 2025. 
  • Consultations could be launched in November, with decisions on which proposals to implement to be made by March 2026. 
  • Non-Mayoral Combined Authority Agreements – for Devon, Torbay and Lancashire (which are set to take effect in 2025). 
  • New devolution deals in progress: with areas like Greater Lincolnshire, Hull & East Yorkshire, Kent & Medway and Cornwall. 

English Devolution: Advantages and Considerations 

Advantages 

Considerations 

  • Raising standards and modernising government decision-making. 
  • Resetting the sector framework to remain democratic. 
  • More regional representation. 
  • Decentralisation from the central government. 
  • More freedom to experiment with alternative policies and priorities. 
  • More mayoral power will allow more action on houses and infrastructure. 
  • Redistributing power will help the government reach its full potential. 
  • Leaders are held more accountable to deliver on their promises to the public. 
  • Devolution may cause operations to fluctuate in efficiency upon first implementation. 
  • Potential for disagreements between regional and central governments. 
  • Devolution can lead to inefficiency issues in governance. 
  • Devolution has the potential to cause political instability.  
  • Devolution has the potential to be costly. 

What is Local Government Reorganisation (LGR)? 

'Local Government Reorganisation' is the creation of unitary authorities from two-tier areas. The new unitary council population of 500,000 or more, and we expect to see stronger community arrangements in the way councils engage, especially with town and parish councils. The LGR has a long-term aim to align public service boundaries and improve the current way local governments operate. 

The English Devolution bill has created a need for LGR, which means now more than ever, government alignment is a necessary step for driving growth and improving local authorities. 

LGR: History and timelines 

History 

In recent years, there have been many proposals to reorganise local government for different areas, going back as far as the ‘60s. Removing two-tier governments is an ambition that hasn’t wavered for fifty years, so recent agreements for LGR signal a huge change to the way the government operates for the first time in history. 

Timelines 

  • 26 September 2025 – Final LGR proposals from the Devolution Priority Programme (DPP) areas. 
  • 28 November 2025 – Final LGR proposals from all other two-tier areas. 

(Final proposals due 28 November) 

  • Jan – Apr 2026 – Decision to be made on DPP proposals, as well as consultation on all other two-tier areas. 
  • May 2027 – Vesting Day for DPP areas.  

LGR: Advantages and Considerations 

Advantages 

Considerations 

  • Fewer councils will mean lower costs (less senior management, economies of scale, fewer IT systems). 
  • There is more opportunity to improve processes. 
  • There is more opportunity to work differently. 
  • Having a larger team also means better resilience. 
  • There is more opportunity to retender contracts. 
  • Maintaining performance during change. 
  • Scale can be costly. 
  • Management of stakeholders. 
  • Retaining key staff expertise. 
  • Introduction of single points of failure.  
  • Alignment with the voluntary sector and other partners. 
  • Keeping morale up during uncertainty. 
  • Cost of change capacity. 

 Will there be any downstream effects on housing? 

Whilst devolution and LGR reorganisation may impact the relationships and roles with suppliers, as some councils transition, we don’t know the full extent of what impact these changes could have. Especially for housing, whilst this remains in the consultation stages. If anything, the ‘English Devolution Whitepaper’ suggested it would only be of benefit to the country and would better address the need for affordable housing. 

For housing and planning, with the new powers and budgets for mayors and Strategic Authorities, mayors will now be able to more easily deliver on commitments (and be held accountable) to building new homes and infrastructure, which will be a boon for local authorities.  

For instance, the promise that Parliament made to deliver 1.5 million homes will now be easier to action as devolution will be hardwired into central government to prioritise housing. 

How local authorities can get ready for change 

For those who are not metropolitan-based, Local Authorities can prepare for devolution and LGR by proactively getting ready in their internal operations for this transition in government.  

In response to these new challenges, we have developed the ‘READY’ framework: a structured checklist authorities can use to navigate LGR changes successfully and transform their Revenues & Benefits operations. 

Our ‘READY’ framework stands for … 

R – Resilience – building sustainable foundations to better support residents. 

E – Engagement – rebuilding resident relationships. 

A – Automation – freeing teams up for more complex work. 

D – Diverse communications – meeting residents halfway and developing unique, multi-channel approaches. 

Y – Yes culture – overcoming innovation paralysis. 

From earlier engagement to automation on outreach, it’s clear that true resilience in LGR means rethinking your operations and building systems that become stronger under stress rather than merely surviving disruption.  

We expand further into this framework and how you can improve your operations and resident outreach overall in our latest Local Authority whitepaper, now available below. 

Download our latest Local Authority Whitepaper 

Prepare for English Devolution and LGR now with the right tools. Discover how you can integrate our READY framework into your operations effectively for engagement transformation and navigate change with solutions optimised for success.  

Voicescape is leading the way for Local Authorities and helping them adapt to changes in the UK. Ultimately, we understand that earlier preparation and intervention are vital. 

Claim your free copy of our new Local Authority Whitepaper (“Readiness is Resilience: A framework for future-proofing revenue collections in an era of change”), and uncover our research into upcoming changes in the UK and how Local Authorities can future-proof their collections. 

In addition, we share how councils can unburden themselves from unprecedented amounts of debt through the power of strategic resident engagement, with real-life case study examples of our Collections for Local Authorities solution. 

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