Yesterday, Deputy Prime Minister Angela Rayner unveiled the Devolution White Paper, outlining the government’s plans to devolve more power and funding to local leaders across England. Through these changes, the government aims to create a more streamlined local government system with a greater emphasis on mayoral leadership.
The Secretary of State for Transport, Heidi Alexander, has described the proposals as “a historic shift in how our railways is run, giving local leaders the ability to shape services that meet the needs of their communities and drive local growth.”
The White Paper’s proposals will also heavily influence how skills and further education are planned and delivered.
The reforms
Central to the proposals in the White Paper is an overhaul of the existing structure of local government, which will be replaced with a three-tier structure of Strategic Authorities, each receiving varying levels of devolved powers:
- Established Mayoral Strategic Authorities (six current mayoral combined authorities). These regions will receive Integrated Funding Settlements, providing flexible control over transport, housing, skills and local growth. These authorities will be able to shift funding between policy areas.
- Mayoral Strategic Authorities: These will be new or emerging combined authorities that will have the right to request more powers.
- Foundational Strategic Authorities: Areas without devolved governance will retain ringfenced funding for key initiatives.
Impact on the rail industry
Mayors will gain statutory authority over local rail networks, allowing them to manage and develop services, infrastructure and stations to support integrated transport systems. Great British Railways (GBR) will be required to collaborate with devolved authorities to align operations with regional economic priorities. Mayors will also have the ability to request further devolution of suburban services and station management.
The White Paper paves the way for additional infrastructure powers to Mayors, including:
- Authority to intervene in planning applications of strategic importance.
- The introduction of a Mayoral Levy and Community Infrastructure Levy to fund essential infrastructure tied to new developments.
Changes to the skills landscape
The White Paper introduces significant reforms to employment and skills funding, empowering Strategic Authorities to deliver locally tailored solutions:
- Adult Skills Funding: From 2026/27 Mayoral Strategic Authorities will control non-apprenticeship adult skills funding through a single settlement, enabling greater flexibility.
- Local Skills Improvement Plans (LSIPs): Strategic Authorities will co-own LSIPs with Employer Representative Bodies, ensuring alignment between skills provision, regional priorities and economic strategies.
- 16-19 Education Pathways: While national standards remain, Mayoral Authorities will influence local provision, improve education-to-employment transitions and secure work placements with employers.
- Employment Support: Strategic Authorities will produce local ‘Get Britain working’ plans that address local needs.
- National Jobs and Careers Service: Strategic Authorities will collaborate with the government to ensure career services are locally responsive.
Timeline
The reforms will roll out in stages:
- Integrated Funding Settlements for Established Authorities will commence in 2025/26.
- Broader devolution powers are expected nationwide by 2026.
- A new Devolution Bill, anticipated next year, will provide the legal framework for implementation, supported by ongoing consultations.
Analysis
The Devolution White Paper signals a fundamental shift in how rail services and skills are managed, granting Metro Mayors unprecedented powers to shape local transport systems.
This governance model presents a significant opportunity to deliver a more integrated and locally responsive transport and skills system, but also poses challenges for the rail industry, which will need to adapt to a devolved landscape.
Ultimately, while the reforms have the potential to bring substantial improvements, their success depends on legislative progress and effective collaboration between government and Great British Railways (GBR) and local government. The full impact of these proposals will depend on how they are implemented. Still, this is certainly a positive step in the right direction.
If you have any question on the white paper, or would like to discuss it further, please get in touch with Edward Hughes – Edward.hughes@nsar.co.uk.