In recent years, Combined Authorities have become a key feature of local governance across the UK. Faced with increasing financial pressures and the need for strategic regional planning, councils are turning to this model as part of a broader trend towards devolution and regional empowerment.
A Combined Authority is a formal entity created when two or more local councils collaborate on regional issues such as transport, housing, and economic development. Unlike individual councils, which focus on local issues, Combined Authorities operate at a regional level, often with delegated powers from central government. Many are led by an elected mayor, who oversees regional policies and budgets, driving key initiatives like transport improvements and economic regeneration.
The rise of Combined Authorities in the UK is closely linked to the devolution agenda, which aims to transfer powers from Westminster to local regions. This trend accelerated in the mid-2010s through devolution deals between central government and regional leaders. Regions like Greater Manchester and the West Midlands were among the first to adopt this model, setting a precedent for others. Greater Manchester's 2014 devolution deal, for example, granted it powers over transport, housing, and health, encouraging other regions to follow suit.
Recent Developments in Devolution
Recent plans from the UK government have accelerated the devolution agenda. In December 2024, the publication of the English Devolution White Paper outlined a bold vision to make devolution the default across England, standardising local governance through the creation of larger, more unified authorities. Under these plans, the government aims to have every region represented by an elected mayor, extending significant powers over transport, housing, and public services.
This agenda is reinforced by proposals to consolidate local government into larger unitary authorities with populations of at least 500,000. This restructuring is intended to streamline decision-making and create capacity for effective regional strategies.
Opportunities Presented by Combined Authorities
The creation of Combined Authorities has already demonstrated potential for economic growth and regional investment. For instance, the West Midlands Combined Authority has secured over £1 billion in funding for transport infrastructure, creating a unified approach to boosting regional development. Similarly, the Greater Manchester Combined Authority plans to build 50,000 affordable homes by 2037, leveraging the benefits of pooled resources and shared strategic vision.
The government's renewed emphasis on elected mayors further underscores their role as central figures in driving regional initiatives. With clear leadership and accountability, these mayors are well-positioned to attract investment and champion the interests of their regions on the national stage.
Challenges and Considerations
While the shift towards larger governance entities offers numerous benefits, challenges remain:
Impacts on Staff and Residents
For council staff, Combined Authorities represent both challenges and opportunities. Restructuring may lead to role adjustments or transfers, but it also opens pathways for specialisation and involvement in strategic projects like economic development and transport planning.
For residents, the benefits include improved services, enhanced infrastructure, and a stronger regional identity. However, there are potential drawbacks, such as local issues being overshadowed by regional priorities. The presence of elected mayors provides a mechanism for democratic accountability, though clear public engagement strategies are essential to avoid confusion about roles and responsibilities.
Combined Authorities are reshaping local governance in the UK by fostering regional collaboration and devolving powers from central government. With recent policy developments aiming to make devolution the default across England, this trend is set to accelerate further. While the model brings opportunities for economic growth and improved service delivery, it also presents challenges that require careful management. Achieving a balance between regional and local needs will be essential to ensuring these reforms deliver on their promise.
If you would like more information on sourcing and structuring of funding, and investment management, please contact us at on treasury@aringclose.com.
Related Insights
How to Conduct Due Diligence on a Local Authority?
Public-Private Partnerships: Helping Local Authorities Exit Legacy Agreements