The English Devolution Bill

THE

ENGLISH

DEVOLUTION BILL –

What does it mean for Greater Birmingham businesses?

JUNE 2025

WHAT IS DEVOLUTION?

Devolution refers to the transfer of power from central government functions to regional administrations. Devolution has been happening in the UK since the late 1990s, when power was devolved to the national regional assemblies in Wales, Scotland, and Northern Ireland, and the mayoralty in London was established. More recently there has been the creation of ‘Metro Mayors’ in cities and regions like Greater Manchester, South Yorkshire, and the West Midlands. The current UK government is proposing the ‘English Devolution Bill’ to share power further, creating more regional mayoralties and bringing groups of local authorities together to collaborate and take collective decisions across council boundaries. The timeline for these changes will vary dependent upon region, but it to be expected that powers will be devolved more quickly to establish Strategic Authorities if the Bill is passed. New Combined Authority Mayors were elected in early May of this year in Greater Lincolnshire and Hull and East Yorkshire, and the government hopes to extend devolution to new areas in May 2026. Given the government’s large majority and the lack of opposition to these proposals, the Bill is expected to become law, with a first reading in Parliament anticipated in June.

WHAT ARE THE PROPOSED CHANGES?

The government’s aim is that all areas across England should be covered by a Strategic Authority, with groups of local authorities working together in sensible geographies to cover at least 500,000 citizens. In certain areas, further mayoralties will be created, and Mayoral Strategic Authorities will be given additional powers.

New powers will be taken on by Strategic Authorities and Mayoral Strategic Authorities, with key areas for (further) devolution including the following:

DECISION MAKING

• Changing voting powers to majority voting rather than unanimity to help Mayoral Strategic Authorities get policies approved.

• Removing previous restrictions on how money can be spent by Mayoral Strategic authorities, so that funding can be moved between policy areas (called an ‘Integrated Settlement’).

TRANSPORT

• Making it faster and simpler for bus services to be returned to public control.

• Giving Strategic Authorities and Mayoral Strategic Authorities a role in managing, planning, and developing the rail network, as well as a right to request greater devolution of services.

• Also giving these authorities powers to coordinate the road network with less oversight from national government.

SKILLS

• Increasing the flexibility for how Strategic and Mayoral Strategic Authorities can use funding for Skills Bootcamps and Free Courses for Jobs (it should be noted that the majority of the Adult Skills Fund is already devolved in existing Mayoral Strategic Authorities).

• Giving Strategic and Mayoral Strategic Authorities joint ownership of Local Skills Improvement Plans, alongside Employer Representative Bodies, which set out the strategic direction for skills provision in an area. The GBCC worked with Coventry and Warwickshire and Black Country Chambers of Commerce to develop the Local Skills Improvement Plan for the West Midlands and Warwickshire published in 2023. This is available here. The next round of LSIP development is due to commence in Autumn 2025.

• Devolving responsibility for promoting clear pathways from education and training into employment, including to help identify local industry placements for 16–19-year-olds, as well as Co-designing any future non-Jobcentre Plus employment support and taking a substantive role in its delivery.

HOUSING AND PLANNING

• Requiring all Strategic and Mayoral Strategic Authorities to produce a Spatial Development Strategy to support the building or more homes.

• Granting Mayors new powers, such as the ability to approve applications of strategic importance and to set a Mayoral Levy to ensure that developments come with appropriate infrastructure to support them.

• Making Homes England accountable to Mayors so that the agency is more responsive to regional economic plans.

• Delivering further funding for Mayors for regeneration and housing delivery.

• Allowing established Mayoral Strategic Authorities to set the strategic direction of affordable housing programmes.

ENVIRONMENT AND CLIMATE CHANGE

• Handing control for retrofit funding to Mayors.

• Requiring Strategic and Mayoral Strategic authorities to play a central role in delivering the Net Zero transition and Local Power Plans, with the intention of Strategic Authorities being able to deploy up to 8GW of additional power regionally by 2030.

• Giving regional authorities an expanded role in leading Local Nature Recovery Strategies and wider environmental delivery by convening partnerships, helping to coordination action, providing funding, and monitoring and reporting on delivery. This could include areas such as water management, circular economy, pollution, and flood resilience.

JOINING UP PUBLIC SERVICES

• Placing Police and Crime Commissioners and Fire and Rescue Authorities under the jurisdiction of Mayors by default.

• Expecting Mayors to lead on Integrated Care Partnerships and potentially in other services such as job centres, health centres, and Local Authorities.

• Requiring Mayors to produce Local Growth Plans and giving them the opportunity to bid for more areas of responsibility in the future where appropriate.

SUPPORTING STRATEGIC AND MAYORAL STRATEGIC AUTHORITIES AND THEIR COMMUNITIES

• Providing Strategic and Mayoral Strategic Authorities with multi-year funding to allow longer-term planning.

• Giving local communities the ‘right to buy’ community assets such as empty shops, pubs, and community spaces.

• Giving local leaders a bigger voice in national policy making through engagement forums, such as the Council of the Nations and Regions, the Mayoral Council, and the Leaders Council.

• Championing better creation, use and sharing of local data to improve outcomes.

BUSINESS

• Mayoral Strategic Authorities to help the Department of Business and Trade to share the Small Business Strategy’s development and implementation, and to support with using data to target small businesses with high growth potential with support and investment.

• Devolving the creation of creating R&D and innovation networks to help local economies grow, linking local authorities, businesses, and universities to target regional growth potential.

• Continuing the development of Business Boards, where Chambers of Commerce, trade unions, and businesses join together, led by regional authorities, to discuss the economic future of their area.

WHAT DOES THIS MEAN FOR GREATER BIRMINGHAM BUSINESSES?

Further devolution presents a number of opportunities for local businesses. Greater regional control may reduce bureaucracy, making tendering for business and influencing regional decision-making processes more efficient and straightforward. The ambition to improve transport networks is intended to make commuting cheaper, better connected and more reliable, as seen in Greater Manchester through the development of the Bee Network. The West Midlands Combined Authority (WMCA) announced in mid-May that the West Midlands bus network is to come back under public control. It is also intended that devolved authorities will be better placed to ensure housing and skills are better tailored to meet the needs of local people and industries, accelerating regional growth. It is hoped that local governments should also be able to build stronger, long-term partnerships with businesses, as a consequence of taking ownership of local business development funds. Greater Birmingham Chamber of Commerce also has longstanding relationships with local authorities across the region and has worked closely with the WMCA since its inception, meaning it is strategically placed to connect local businesses with more and more policy decision-making at a regional level.

However, devolution does pose some risks. Where organisations work across different local or strategic authority boundaries, it may complicate programmes of delivery, requiring new working relationships with local authorities that are undergoing a significant process of change and reorganisation. There is a need to strike a balance between the needs of rural and urban areas, as highlighted in the IPPR’s report The Shape of Devolution, ensuring that rural areas are not left behind on issues such as transport, housing and skills development. This report also highlights that the boundary lines of local authorities do not always match to citizens’ lived experiences, such as working and commuting choices, so there is a need to ensure joined-up thinking between connecting authorities.

The WMCA area is already a Mayoralty and so this region will benefit from expanded powers. The government awarded the WMCA its first Integrated Settlement on 1st April 2025, which will run until 31st March 2026.

Multiple proposals has been put forward for Staffordshire, as whatever is agreed with the government for the region will be a new iteration of local government. For example, one proposes a Mayoral Strategic Authority covering Staffordshire, abolishing existing district, borough, county, and city councils in favour of one unitary authority. Another proposes splitting the county, with Cannock Chase District Council, East Staffordshire Borough Council, Lichfield District Council, South Staffordshire District Council, Stafford Borough Council and Tamworth Borough Council working together as a unitary authority for Southern and Mid Staffordshire. Should either of these proposals be successful, new and different powers will be available to local government in this area, such as some of those listed above. Further announcements from the government on devolution are anticipated in June 2025.

WHAT IS THE GBCC’S POSITION ON THE ENGLISH DEVOLUTION WHITEPAPER?

Since 1813, the GBCC has been dedicated to connecting, supporting and growing local businesses. Thriving businesses are at the very core of economic growth—creating jobs, sparking innovation, and generating the wealth that fuels thriving communities and future opportunities.

Further devolution presents exciting opportunities, but we must continue to work collaboratively to ensure these opportunities are realised.

The Chamber has strong working relationships with existing authorities across our region and nationally who share our ambitions to drive inclusive economic growth and increase prosperity. We will continue to work with these stakeholders to ensure that this transition of power is as straightforward for businesses as possible.

As the leading voice of business across Greater Birmingham, the Chambers regularly conduct independent research produce a wealth of data – available here - that can be used to inform devolved policy decisions. In this role we will look to support authorities in shaping the contours of devolution in new areas, and in the delivery of services that are tailored to meet the needs of local organisations.

WHERE CAN I GO TO GET THE LATEST ADVICE AND INSIGHTS?

We’re here to unleash the potential of Greater Birmingham’s businesses, as unwavering champions and the leading voice for the local business community. We will continue to work with members to shape the future of Greater Birmingham - together.

The Chamber’s daily e-newsletter, Greater Birmingham Business News, provides the latest news and developments in the Greater Birmingham business community, and will provide updates on the progression of devolution across the local area. Subscribe here to receive the newsletter.