Local authorities in “devolution deserts” are being invited to join forces to take on more responsibilities over policy areas including transport, skills and planning as part of a major transferral of powers out of Westminster.
The new devolution deals would mean local leaders will be able to make decisions directly affecting their communities, with the additional aim of boosting economic growth, through new combined authorities of the type that already cover about half the people in England.
Angela Rayner, the deputy prime minister, is writing to all council leaders without a devolution deal on Tuesday to tell them that the government’s door is open to areas that want to take on extra powers for the first time.
“For too long, Westminster government has tightly gripped control and held back opportunities and potential for towns, cities, and villages across the country,” she will write.
“I want to work with more places to help them use these enhanced powers and roles – because I want to drive growth in every part of the country. For any area considering it, now is the time to take the plunge and speak to us about how we can work with you to transform your regions.”
Keir Starmer and his deputy met every regional mayor in England on their fifth day in office, with the aim of helping to unlock economic growth – their priority in power – and tackle regional inequality.
The prime minister used the meeting to underline their desire for a new wave of deals which could see local authorities take over everything from public transport and infrastructure to skills funding and employment support.
Labour has drawn up a devolution bill – known as the “take back control” bill – to be launched as part of Wednesday’s king’s speech which contains about 35 bills, including sweeping plans on housebuilding, green energy, crime and voter registration.
There are now 12 areas with mayoral devolution in England including Greater London, the West Midlands, Tees Valley and the North East. Further powers will be devolved to Suffolk and Norfolk county councils in 2024, along with new mayors in Greater Lincolnshire and Hull and East Yorkshire.
Other non-mayoral deals are planned in Lancashire, Devon and Torbay, and Cornwall while provisional deals have also been struck with Surrey, Warwickshire and Buckinghamshire.
However, major cities such as Leicester, Portsmouth and Stoke-on-Trent, do not yet have the framework needed to take on new powers. The government plans to set up a council of nations and regions, which would include the new mayors of combined authorities.
Rayner has cited the example of Greater Manchester, which has extensive devolved powers over areas including inward investment, skills and transport, and which is forecast to grow by more than the national average in coming years.
Ministers have already pledged to bring in local growth plans under which mayors will identify local specialisms and contribute to the national industrial strategy.
Organisation for Economic Co-operation and Development research suggests that if the autonomy of UK cities was to increase to the same level as Helsinki, then productivity would increase significantly, helping the government to deliver a key manifesto ambition.
