Background
In December 2024, the government published the English Devolution White Paper and introduced the English Devolution and Community Empowerment Bill, setting out its framework for devolving powers from central to local government. The government’s ambition is for every area of England to be covered by a Strategic Authority with a locally elected mayor, responsible for making strategic decisions on issues such as skills, transport and planning. Some areas will have enhanced devolution arrangements that include an ‘Integrated Settlement’ – a single funding pot that can be allocated according to local priorities, replacing multiple funding streams from individual government departments.
In March 2023, the government agreed ‘trailblazer’ devolution deals with the Greater Manchester Combined Authority and the West Midlands Combined Authority. These deals set out a path to extend devolved powers and governance arrangements beyond those of other Strategic Authorities. From the start of 2025-26, both authorities began receiving an Integrated Settlement. Five further authorities are scheduled to receive an Integrated Settlement from 2026-27.
Scope
This report will examine how the Ministry of Housing, Communities & Local Government (MHCLG) is implementing its enhanced devolution framework. It will consider whether the framework is being designed in a way that is likely to achieve value for money over time and will highlight emerging lessons to support both existing trailblazer authorities and those preparing for an Integrated Settlement. The report will set out whether:
- there is evidence that devolved authorities receiving an Integrated Settlement are empowered to deliver services and programmes more efficiently and responsively
- funding, governance, and accountability arrangements are robust and transparent, enabling effective decision-making
- there are suitable arrangements in place to measure outcomes
NAO team
Director: Vicky Davis
Audit Manager: Phil Hyde